Interim report 1 January - 31 March 2023

January – March

• Revenue for the quarter amounted to SEK 142.9 million (118.7), a year-on-year increase of 20.4 per cent.
• The Group’s net operating income amounted to SEK 67.4 million (59.4), up 13.5 per cent year-on-year.
• Profit from property management for the quarter amounted to SEK 15.0 million (30.2), a year-on-year decrease of 50.3 per cent that was primarily attributable to higher interest rates.
• Changes in the value of investment properties amounted to SEK -174.1 million (169.2) and changes in the value of derivatives to SEK -41.6 million (39.8).
• Profit for the quarter totalled SEK -160.6 million (188.6), corresponding to SEK -1.22 per share (1.43).
• The loan-to-value ratio was 51.2 per cent at 31 March, consisting solely of bank borrowing.

Significant events

• Jonas Rosengren recruited as the new CFO. Jonas will take up his post during the second quarter.
• Five-year contract extension signed for approximately 850 square metres with Systembolaget in central Vastervik. The rental value amounts to approximately SEK 1.8 million per year.
• Fixed-rate term of the debt portfolio extended by just over a year. On 31 March, the fixed-rate term was 4.3 years, with a hedging ratio of 80 per cent.

From Andreas Morfiadakis’ CEO comment

“We continued to limit the risks and increase the predictability and stability of our financing during the quarter. Our interest rate hedging ratio is now just under 80 per cent, while the fixed-interest period has been extended by approximately one additional year to 4.3 years as of 31 March.

In practice, the combination of our interest rate hedging ratio and fixed-interest period provides a high level of predictability for the next few years. Rising interest rates thus have a distinctly limited effect for us, compared with many other companies. If we simply continue to improve our portfolio in accordance with our strategy, we will see our earnings capacity per share gradually increase thanks to this high level of predictability.”

Outlook

After several years of challenges, including the pandemic and runaway inflation, signs of a stabilisation of inflationary factors are being seen, such as lower energy prices and a more balanced supply. With a bit of patience, this can be viewed as the first steps in adapting to new conditions, which is why we are convinced that rent levels, energy prices, etc. will eventually find a new equilibrium.

All in all, since attractive acquisition opportunities may arise in the future and with a bit of patience, I see reasons to be more optimistic than the industry in general so far. For the time being, we are continuing our efforts to – according to our proven business model – create long-term shareholder value by reinvesting in our property portfolio.

Teleconference and webcast presentation

KlaraBo’s CEO Andreas Morfiadakis, CFO Jenny Appenrodt, and Head of Sustainability Kristin Lundmark will present the interim report and answer questions at a webcast presentation and conference call at 10:00 a.m. today.

Link to webcast below. Via the webcast you can ask questions in writing.

https://ir.financialhearings.com/klarabo-q1-2023

If you wish to ask questions verbally, please register via the link below. After registration, you will be provided with phone numbers and a conference ID to access the call. https://conference.financialhearings.com/teleconference/?id=200700

The presentation and webcast will be available at www.klarabo.se after the conference call.

This information is information that KlaraBo Sverige AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 08.00 CET on 3 May 2023.