Interim report 1 January – 30 June 2024

April – June

• Revenue for the quarter amounted to SEK 157.5 million (149.7), a year-on-year increase of 5 per cent.
• Net operating income amounted to SEK 96.9 million (95.7), up 1 per cent year-on-year.
• Income from property management amounted to SEK 37.3 million (40.3), a year-on-year decrease of SEK 3 million.
• Changes in the value of investment properties amounted to SEK 11.3 million (-113.7) and changes in the value of derivatives to SEK -1.7 million (35.4).
• Earnings totalled SEK 28.7 million (-34.5), corresponding to SEK 0.22 per share (-0.26).
• The loan-to-value ratio was 52.8 per cent (51.7) on 30 June with an average interest rate of 3.6 per cent (3.7). The company is financed solely through bank borrowing.
• The net realizable value per share was SEK 32.1 (32.6).

Significant events

• KlaraBo and OBOS signed a land allocation agreement with the City of Malmö for a new block in Hyllie with 300 apartments in a mix of rental as well as tenant-owner apartments.
• New bank loans of SEK 100 million raised at a margin under the loan portfolio’s average margin.
• Shares were repurchased under the mandate granted by the Board of a total repurchase amount of SEK 30 million during 2024.
• All rent increases for 2024 were carried out at the end of the second quarter. Indexation averaged 5.5 per cent for homes.
• In July, KlaraBo entered into an agreement with Diös Fastigheter to acquire two residential properties in Falun and to divest two commercial properties in Borlänge.
• In July, KlaraBo signed a framework agreement regarding sustainability-linked financing with Swedbank.

From Andreas Morfiadakis’ CEO comment:

“Revenue rose just over 5 per cent during the quarter due to the year’s rent negotiations and due to continued apartment upgrades in our portfolio. Net operating income was in line with last year and was primarily driven by increased revenue and continued effective cost control. Prices stabilised and our assessment is that the higher revenue level will compensate for inflation and higher property costs over time.

Despite the somewhat lower income from property management, our financial performance remains stable. The loan-to-value ratio at the end of the second quarter was 52.8 per cent and our financing is exclusively through bank borrowing. We have already started work on refinancing of loans with maturity in 2025. The signals from the banks we partner with are good and there are indications that the loan margin could be lower than in our existing loans. Our goal is to provide more information about this as early as this autumn. Positive value changes in the property portfolio meant that earnings before and after tax improved considerably compared with the previous year.

Yesterday we entered into an agreement to acquire two residential properties in Falun and simultaneously divest two commercial properties in Borlänge. The sale of properties in Borlänge was agreed at book value. These transactions are entirely in line with KlaraBo’s overall goal is to create value on a long-term basis by owning, developing and actively managing sought-after residential properties in growth regions. We now have a transaction market with opportunities for both supplementary acquisitions in existing locations and establishing in new locations – not least when activity and positive momentum return to the Swedish transaction market. KlaraBo is, and aims to be, a growth company. Our ambition going forward is to be active and carry out additional acquisitions, assuming we find the right objects, and to gradually realise the value in our project portfolio.”

Teleconference and webcast presentation

KlaraBo’s CEO Andreas Morfiadakis and CFO Per Holmqvist 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.

KlaraBo Q2 Report 2024 (financialhearings.com)

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.

Call Access (financialhearings.com)

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 16 July 2024.

For more information:
Andreas Morfiadakis, CEO 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.