Interim report 1 January – 30 September 2023

July – September

• Revenue for the quarter amounted to SEK 147.8 million (123.2), a year-on-year increase of 20 per cent.
• The Group’s net operating income amounted to SEK 97.3 million (77.7), up 25 per cent year-on-year.
• Profit from property management for the quarter amounted to SEK 45.0 million (37.4), a year-on-year increase of 20 per cent.
• Changes in the value of investment properties amounted to SEK -134.1 million (-68.7) and changes in the value of derivatives to SEK 40.5 million (24.9).
• Profit for the quarter totalled SEK -50.6 million (-5.6), corresponding to SEK -0.39 per share          (-0.04).
• The loan-to-value ratio was 52.3 per cent (48.8) on 30 September. The company is financed solely through bank borrowing.

Significant events

• A five-year lease was signed with the City of Malmö encompassing 1,600 square metres for its services within its functional support administration. The total annual rental value is SEK 1.9 million. 
• Fixed-rate term of the debt portfolio extended by just over a year. On 30 September, the fixed-rate term was 3.9 years, with a hedging ratio of 80 per cent.

From Andreas Morfiadakis’ CEO comment

The financial trend for the third quarter demonstrates that we are gradually continuing to increase our earnings despite a challenging market, particularly when it comes to financing. Our net operating income increased 25 per cent year-on-year while our surplus ratio was among our highest to date. Profit from property management increased 20 per cent during the quarter compared with the year-earlier period thanks to the year’s rent increases and a larger portfolio. With our focus on attractive locations with robust long-term demand in growth regions, we have a broad geographic presence and can act wherever business opportunities arise. In our three largest regions of Trelleborg, Visby and Östersund, which account for just over 45 per cent of the portfolio, we offer a highly competitive rent level and are continuing to experience strong demand and a high occupancy rate.

Outlook

In summary, the need for new housing remains high, while housing construction has more or less stalled. This means that existing affordable rental apartments is becoming an increasingly important part of the housing market, not least in the current economic climate, with lower disposable income for many households. With a proven business model that continually improves our portfolio and means that our annual rent increases exceed the general level, we are creating favourable conditions for increasing the value of our property portfolio and improving our cash flow per share over time. Moreover, a high proportion of our financing, which exclusively comprises bank loans, is hedged and provides us with security in the current market. 

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.

Klarabo Q3 Report 2023 (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 26 October 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.