Interim report 1 January – 31 March 2024

• Revenue for the quarter amounted to SEK 156.7 million (142.9), a year-on-year increase of 10 per cent.
• Net operating income amounted to SEK 73.4 million (67.4), up 9 per cent year-on-year.
• Income from property management amounted to SEK 20.2 million (15.0), a year-on-year increase of 35 per cent.
• Changes in the value of investment properties amounted to SEK -45.3 million (-174.1) and changes in the value of derivatives to SEK 44.2 million (-41.6).
• Earnings totalled SEK 3.7 million (-160.6), corresponding to SEK 0.03 per share (-1.22).
• The loan-to-value ratio was 52.6 per cent (51.2) on 31 March with an average interest rate of 3.5 per cent (3.5). The company is financed solely through bank borrowing.
• The net realizable value per share was SEK 31.7 (33.3).

Significant events

• General rent increases for 2024 averaged 5.3 per cent for homes. All increases are expected to be implemented in the second quarter.
• New bank loans of SEK 40 million raised at a margin under the loan portfolio’s average margin.
• Shares were repurchased for a total of SEK 30 million under the framework of the authorisation granted by the Board for 2024.
• Conversion of unfinished lofts to new apartments complete in Helsingborg.

From Andreas Morfiadakis’ CEO comment:

"The year got off to a positive start for KlaraBo after a large portion of the annual rent negotiations were completed on 1 January. Income from property management rose 35 per cent as a result of rent increases and ongoing upgrades of our homes according to our proven business concept. Rent negotiations that were not concluded by the new year have now essentially been concluded and will be introduced during the second quarter, resulting in an average 5.3 per cent rent increase for our housing units for 2024. Financial expenses were on a par with the first quarter of last year thanks to our high share of hedged bank loans, 80 per cent, as well as more stable interest rates in the market.

Active work to ensure long-term value creation

We will continue to grow our property management portfolio both through acquisitions and by expanding through new construction over time. While KlaraBo is primarily to be a growth company, our base is – and will continue to be – our value-creating business model that continuously leads to a higher value for our property portfolio and growth in cash flow per share over time. The more favourable market situation we have seen in the past six months could also lead to opportunities for both supplementary acquisitions in existing locations and establishments in new locations. This depends on us finding the right object.

With that said, we are mindful to keep a sound risk profile and continuously create financial stability over time. One way we do this is through our share buyback programme, which gives us increased opportunities to adapt the company’s capital structure from time to time. Another is our high share of hedged loans, which exclusively include bank loans.

I am convinced that our business model and strategy with organic growth as well as acquisitions, in combination with secure financing, gives us the right preconditions for sustainable and profitable growth and long-term shareholder value. We will be well equipped and prepared when the market turns and attractive business opportunities arise."

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 Q1 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 3 May 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.