Interim report 1 January – 30 June 2023

Press release                   Malmo, 14 July 2023

April – June

• Revenue for the quarter amounted to SEK 149.7 million (120.3), a year-on-year increase of 24.4 per cent.

• The Group’s net operating income amounted to SEK 95.7 million (66.4), up 44.1 per cent year-on-year.

• Profit from property management for the quarter amounted to SEK 40.3 million (20.4), a year-on-year increase of 97.5 per cent.

• Changes in the value of investment properties amounted to SEK -113.7 million (21.5) and changes in the value of derivatives to SEK 35.4 million (21.7).

• Profit for the quarter totalled SEK -34.5 million (38.4), corresponding to SEK -0.26 per share (0.29).

• The loan-to-value ratio was 51.7 per cent (43.1) at 30 June. The company is financed solely through bank borrowing.

Significant events

• A five-year lease was signed with Renässans Akademin encompassing 500 square metres adapted to preschool operations. The total annual rental value is SEK 0.8 million.

• A loan agreement with a bank in the Nordic region for just over SEK 500 million was extended, maturing in the third quarter of 2027 at a margin that falls below the company’s average margin.

• Fixed-rate term of the debt portfolio extended by just over a year. On 30 June, the fixed-rate term was 4.1 years, with a hedging ratio of 80 per cent.

From Andreas Morfiadakis’ CEO comment

In the face of a turbulent and challenging business environment, KlaraBo continues to have a good return and stable profit from property management, in part as a result of the year’s rent negotiations. These negotiations led to rent increases of 4.5 per cent on average in our portfolio, with full effect essentially from 1 April. Together with significantly lower operating costs than in the seasonally difficult first quarter, our net operating income increased sequentially by over 40 per cent, and profit from property management rose from SEK 15 million to SEK 40 million during the quarter. It is gratifying to note that the occupancy rate also remained stable at a high level while we also maintained a high rate of renovation.

Outlook

The underlying need for housing in Sweden – especially rental apartments – is considerable, and demand remains high. This applies in particular to housing with reasonable rent, given a more challenging economic situation for many households. With our focus on attractive locations with robust long-term demand for housing in Swedish growth regions, we have a broad geographic presence and can act wherever business opportunities arise. I am convinced that over the long term, it will be wise to invest in – though cautiously – and to own rental properties, and by doing so to be part of the development of society on both a regional and a national level.

Teleconference and webcast presentation

KlaraBo’s CEO Andreas Morfiadakis and CFO Jonas Rosengren will present the interim report and answer questions at a webcast presentation and conference call in Swedish at 09:00 CEST today.

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

https://ir.financialhearings.com/klarabo-q2-2023

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=200825

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 CEST on 14 July 2023.

For more information:

Andreas Morfiadakis, VD KlaraBo
andreas.morfiadakis@klarabo.se
+46 76 133 16 61

About KlaraBo
KlaraBo is a real estate company that acquires, builds, owns and manages attractive residential properties. The company was founded in 2017 and operates throughout the country. The strategy is to acquire existing residential properties as well as land for new construction in regions with population growth and a strong labour market. Our newly constructed apartments are developed in-house and space efficient, which contribute to reasonable rents. Both apartments and buildings are designed in collaboration with the municipality to fit local needs. With wood as the main building material, the new construction holds a high environmental standard. KlaraBo is a long-term property owner. KlaraBo is listed on Nasdaq Stockholm and is traded under the ticker KLARA B.