Average fixed interest term extended to 5.3 years
Press Release 30 September 2010
By buying back its banks’ rights to cancel interest swaps, listed Swedish property company Kungsleden AB (publ) has extended its average fixed interest term from 2.6 years to 5.3 years. At the mid-point of the year, Kungsleden had a nominal amount of some SEK 7.3 bn of cancellable swaps, which through the repurchase of cancellation rights, were converted to standard interest swaps. After these repurchases, Kungsleden’s average interest expense increased by nine basis points to round 5.1%. Kungsleden’s interest rate maturity now consists exclusively of fixed interest, as illustrated by the following table. "These repurchases increase Kungsleden’s financial freedom to act for a very reasonable cost. Meanwhile, we are continuing to evaluate complementary credit alternatives like bonds," commented Kungsleden’s Chief Financial Officer Johan Risberg.
| As of 30 June 2010 | New maturity | |||||
| Maturity | Loan, SEK m | Interest derivatives | Share % | Ave. interest % | Interest derivatives | |
| 2010 | 14 139 | 7 350 | 47,8% | 5,9% | ||
| 2011 | - | - | ||||
| 2012 | 400 | 2,8% | 4,4% | 400 | ||
| 2013 | 2 000 | 14,1% | 4,2% | 3 800 | ||
| 2014 | 1 500 | 10,6% | 4,2% | 2 100 | ||
| 2015 | 1 800 | 12,7% | 4,3% | 3 600 | ||
| 2016 | 400 | 2,8% | 4,4% | 1 000 | ||
| 2017 | 300 | 2,1% | 4,5% | 300 | ||
| 2018 | 1 000 | 7,1% | 4,5% | 3 550 | ||
| Grand Total | 14 139 | 14 750 | 100% | 5,0% | 14 750 | |
| Ave. interest after option redemption | 5,1% | |||||
For more information, please contact:
Johan Risberg, Deputy CEO Kungsleden | phone 46 8 503 052 06 | mobile 46 70 690 65 65
Thomas Erséus, CEO Kungsleden | phone 46 8 503 052 04 | mobile 46 70 378 20 24
This press release is available in Swedish at www.kungsleden.se Kungsleden’s strategy is to ensure sustainable high and stable returns proceeding from its existing holding, and through acquisitions and divestments. As of 30 June 2010, the property portfolio comprised 559 properties with a book value of SEK 21.9 bn. The holding was located in a total of 129 municipalities, although concentrated on the Swedish provinces of Götaland and Svealand, and the Öresund region. Kungsleden has been listed on Nasdaq OMX Stockholm since 1999.
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