Klövern AB (publ): year-end Report January — december 2017

«» Revenue increased by 5 per cent to 3 029 million (2 876).

«» The operating surplus increased by 6 per cent to 2 006 m (1 891).

«» Profit from property management increased by 7 per cent to sek 1 263 million (1 180).

«» The result before tax increased by 17 per cent to 3 211 m (2 756) and profit after tax increased by 16 percent to sek 2,611 m (2 259), the corresponding is 2.53 sek (2,11) per share of common stock.

«» Changes in value on properties amounted to sek 1 913 million (1 709).

«» The development of the projects, including the development of the development rights, provided the

increases in the value of properties of sek 546m (603).

«» After the access of the 27 properties for 2 sek 116 million, the withdrawal of the 54 properties for 1 796 million and investments of eur 1 489 million, the value of the property portfolio to 42 961 million.

«» The interest coverage ratio was 2.9 (eur 2.9) and the adjusted equity / assets ratio increased to 38.5% (36,7).

«» EPRA NAV increased by 20% to 14,07 usd (11,70).

«» The board of directors proposes a dividend of 0.44 (0,40) per common share to be paid on four occasions, each of 0.11 and a dividend of 20,00 € (20,00) per preference share be paid on four occasions, each 5,00 €

The CEO’s comment

A strong performance, combined with strategic acquisitions and continued streamlining

Klövern is reporting a solid result for 2017. The result before tax of sek 3, 211m, representing an increase of 17 per cent. We have continued our efforts to focus the portfolio to the strongest growth regions. During the year we completed transactions, covering 81 properties and since the end of June 2016, we have sold 66 properties, at the same time that we acquired 57 properties and had a high rate of project development.

In 2017, we have continued to be very active on the transaktionsmarknaden. Klöverns total property value is today, 98 per cent is located at our twelve selected locations. In these places

the average population growth overall has been above 15 per cent in the last 10 years. In the beginning of 2017 acquired the Clover a number of additional properties in Gothenburg and during the year we have in addition completed add-on acquisitions, among others in Stockholm, Malmö, Norrköping and Uppsala.

The stockholm region (including Uppsala) now constitute 50 per cent of the total portfolio, followed by Gothenburg, which accounts for 9 per cent, sweden with 7 percent. In total we have during the year acquired 27 properties and sold 54 properties. Our sales has meant that we have completely left seven locations, including Karlskrona. During the fourth quarter included the Clover agreements to acquire an office building in Copenhagen, with an underlying property value of 620 million DKK, which was taken over in February.

The economy in Sweden is showing continued strength. The demand of the modern office while the office space is of inferior standard that become vacant are often converted to homes. Rent levels are rising which in turn drives up property values. Primarily develops rental rates and property prices strong in the stockholm region, especially in Stockholm’s inner city. We now see a clearer trend in lokalsökningar outside the more central parts of Stockholm, which is an effect of the increasingly higher rent levels. This will benefit companies with properties in the city’s surrounding areas such as the Clover with the kontorsbestånd in Söderstaden (the Globe), Solna, Kista and Täby.

The credit market is twofold. Credit institutions shows a decent appetite for financing real estate. Klöverns interest coverage ratio is high and during the year amounted to 2.9 with an average interest rate of 2.5 per cent while the fixed interest periods amounted to 2.8 years and the maturity to 3.0 years.

For 2017, we report a positive net of sek 54 m, which is clearly stronger than 2016, when it amounted to 20 million. In addition, we have in the fourth quarter of 2017 signed another lease to move into in 2018/19, including in the Chest with Novartis and Nordic Choice. At the same time, we note in many markets the new record, what it comes to rents. Our operating income landed at sek 1 263 million, representing an increase of 7 per cent. A stable net operating income was supported by a positive net, a strong growth in rents, acquisitions and low interest rates.

Klövern has a projektvolym is relatively stable, with an annual volume of around 1.5 billion. Some of the most ambitious projects is a hotel and conference facility in Gothenburg, kontorsprojekten S7 in Västerås and Kopparhusen in Norrköping, and the renovation of an office building in Solna to the EU agency, the ECDC. Klöverns ten largest projects include investments of 1.5 billion and approximately 74 000 square meters. The development of the projects, including the development of the development rights, was instrumental in 2017 with increases in the value of 546 million, which we believe that we should see as part of our operating income.

In Klövern Living, we work with a large number of housing projects where the first projektstarterna is planned during the second half of 2018. Ongoing detaljplaneprocesser includes over 5 000 apartments. Klövern intends to start production of 100-200 apartments 2018 and 300-500 apartments in 2019/2020.

Klöverns financial strength improved further during the year. The adjusted equity / assets ratio was 38.5% at the end of the fourth quarter, compared with 36.7 per cent a year earlier. At the same time, value ratio from 60 percent to 58 percent. The net asset value per share (EPRA NAV) amounted to 14,07 usd 31 december, corresponding to an increase of 20 per cent during the year.

All in all, we are pleased with both the outcome in 2017 and the structural refinement we managed to implement during the last two years. We look forward with confidence to a continued stable development during the 2018 and hope that we will manage to land a few larger leases, and hopefully also some additional acquisitions.

Rutger Arnhult, CEO of Klövern

Klövern AB (publ)

For further information, please contact:

Rutger Arnhult, CEO, 070-458 24 70, rutger.arnhult@klovern.se

Lars Norrby, IR, 076-777 38 00, lars.norrby@klovern.se

Klövern is a real estate company with presence and commitment, offers efficient premises in Swedish growth regions. Klövern is listed on Nasdaq Stockholm. Further information is available at www.klovern.se.

Klövern AB (publ), Bredgränd 4, 111 30 Stockholm, sweden. Tel: 010-482 70 00, E-mail: info@klovern.se.


This information is such information that Klövern AB is obliged to publish under the EU marknadsmissbruksförordning and the law on the securities market. The information was submitted, through the above contacts in the government, for publication on February 14, 2018 there is a 07:30 CET.


Klövern AB (publ): year-end 2017 (pdf)

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Klövern AB (publ) via Globenewswire

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