Year-end Report January – December 2020 - Seite 3

In addition to the acquisition of a large project property on Park Avenue in New York which took place in early 2020, we have only carried out additional smaller, although strategically impor­tant, add-on acquisitions. Through these, we have complement­ed the portfolios in Linköping, Gothenburg and Lund among other places. At the end of the year, the value of the real estate portfolio totalled SEK 57 billion, of which the foreign portfolio in Copenhagen and New York accounted for 15 per cent.

GROWTH THROUGH PROJECT DEVELOPMENT
Klövern engages in project development in all prioritized loca­tions and thus makes an active contribution to urban develop­ment. At the end of the year, development properties accounted for 16 per cent of the total property value and investments amounted to SEK 2,376 million during the year. In all, project de­velopment, including development of building rights, contribut­ed to increases in value of properties of SEK 513 million in 2020.

The two largest ongoing projects, both in New York, are expected to be completed in the third quarter of 2021 and the beginning of 2022 respectively, after which additional tenant customizations will take place. Letting work is in process and last week the first lease contract was signed in the project 1245 Broadway. In total, the ongoing projects in New York, Sweden and Copenhagen are expected to have a large positive effect on net moving-in during the coming two years.

STRONGER FINANCIAL POSITION
During 2020, we have placed special emphasis on securing good long-term financing and enhancing our financial strength even more.

During the second quarter, SEK 5 billion in existing bank loans and secured bonds were refinanced. We also obtained new loans and credit decisions for new loans of over SEK 4 billion. In June, Klövern obtained an investment grade rating (BBB– with stable outlook) from Scope Ratings and in October SEK 2 billion of green bonds were issued.

At the end of the year, a fully guaranteed rights issue of around SEK 2 billion was completed which provides us with even greater opportunities of value creation through efficiently financed project development of commercial and residential premises.

SUSTAINABLE DEVELOPMENT AND SMART CLIMATE CHOICES
At Klövern, sustainable development is about making our prop­erties better both for the environment and for our tenants at the same time as making them more profitable. We have set up goals where we make great demands on ourselves and I can note that we have already come a good way towards achieving them. One of the goals, that at least half of our properties shall have energy consumption lower than 100 kWh/sq.m., was achieved a long time ahead of the plan which led to us raising that target an additional step.