Year-end Report January – December 2020 - Seite 2

GOOD EARNINGS
Klövern’s earnings for 2020 are good and have, thanks to effec­tive property management, among other things, developed in a stable way despite some loss of income associated with the challenging conditions in the world. Some tenants have, of course, had a tough time but overall our diversified portfolio has provided stabiIity. Klövern has received 99 per cent of the rents invoiced for 2020.

For a comparable portfolio, both income and the operating surplus were at the same level as in 2019. Profit from property management amounted to SEK 1,269 million and after positive changes in value of properties of SEK 1,322 million, profit before tax was SEK 2,467 million.

A RECOVERING MARKET
The pandemic has had a marked negative effect on both the global and the Swedish economy. The consequences can be seen, in, for instance, reduced GDP growth and increased un­employment. However, it can be noted in the fourth quarter that some macroeconomic forecasts have been adjusted upwards and the ongoing vaccination provides hope for a good recovery during 2021. We can ourselves see clear indications that the market is gradually recovering by increasing demand in the rental and transaction market and by an increasing improve­ment in financing conditions in the capital market.

NET MOVING-IN POSITIVE AGAIN
During the fourth quarter, the external net moving-in amounted to SEK 11 million, bringing to an end the series of negative mov­ing-in figures during the first three quarters. During the last quarter of the year, we have welcomed a number of new tenants including Volvo Cars and NetOnNet and two new leases were signed in Copenhagen for a total of approximately 2,900 sq.m. with Dior and Politiforbundet.

In December/January, we have also extended three large leases for a total of approximately 52,600 sq.m. in Kista. The aggregate lease contract value for the extended periods of between three and five years, amounts to SEK 430 million.

CONTINUED STREAMLINING
We have worked for many years with the strategy of focusing the property portfolio on the growth locations and markets where we want to be long-term owners, and primarily on office properties. During the fourth quarter, we took another big step in line with our strategy through divesting 12 properties in a transaction with Mileway, mainly consisting of warehouse and logistics premises. The transaction took place at a premium of 21 per cent in relation to book value. In total, the contracts for divestment of properties signed during 2020 have exceeded book values by 20 per cent.