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Year-end Report 2019

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Improved operating net and strong net leasing

  • Revenue for 2019 increased to SEK 2,423 million (2,385) despite the fact that we have net sold properties and thus lost SEK 52 million in net rental revenue.
  • Profit from property management increased by 5.4 per cent to SEK 1,185 million (1,124). The increase is due to higher rental revenue and operating net in like-for-like portfolio terms, and improved net financial items.
  • Net leasing continued to progress positively in the fourth quarter, to SEK 37 million (58). The full-year number was SEK 58 million (86).
  • Unrealized changes in value on properties amounted to SEK 1,762 million (1,619), corresponding to 5.1 per cent. The value increase is due to a higher rental revenue and a reduction in the required yield.
  • At the end of the period, property value was SEK 38,310 million (34,697 million at the beginning of the year).
  • Net profit after tax was SEK 2,245 million (2,055), or SEK 10.28 per share (9.41).
  • Current NAV increased to SEK 89.61 per share (79.66).
  • The Board of Directors proposes an increase in the dividend to SEK 2.60 per share (2.40) which corresponds to an increase of 8 per cent.

Significant events during and after the fourth quarter

  • The Stockholm City West cluster expanded through the acquisition of office property Gladan 4, which was acquired for SEK 428 million.
  • Kungsleden started its first new office development project, Eden by Kungsleden, in Hyllie, Malmö. The estimated investment is SEK 350 million including land acquisition.
  • Kungsleden’s focus on diversity won us the EPRA’s Diversity & Inclusion Award 2019.
  • Lease agreements has been signed for 7,300 square meters in the future area of Högsbo in Gothenburg, whereof 5,400 square meters for the PDL Group and 1,900 square meters for the Peab School.

CEO’s statement

“2019 was a good year for Kungsleden. Profit from property management increased to SEK 1,185 million, which is the highest result in ten years. In-like-for-like portfolio terms, rental revenues and operating net increased by 5.3 and 6.1 per cent respectively thanks to new leasing and renegotiations. We had positive net leasing both in the fourth quarter and for the full year 2019. At year-end, net leasing was SEK 58 million.

Now we’re moving into 2020. Our main markets of Stockholm, Gothenburg, Malmö and Västerås are in healthy growth, and have continued good demand on their rental- and transaction markets. Then we have our cluster strategy, our attractive customer offer, an exciting project pipeline and committed employees, I’m looking forward to 2020 with confidence,” comments Biljana Pehrsson CEO of Kungsleden.

For more information, please contact:

Biljana Pehrsson, CEO Kungsleden | +46 8 503 052 04 | biljana.pehrsson@kungsleden.se

Magnus Jacobson, CFO of Kungsleden |+46 (0)8-503 052 62| magnus.jacobson@kungsleden.se

 

Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se/pressmeddelanden

Presentation of interim report

Kungsleden presents the interim report by telephone conference and audio link on 12 February 2020 at 08.45.

The presentation will be held in English and is available on: https://www.kungsleden.se/interim-presentation

Phone number to the conference:

SE: +46 8 505 58 354

UK: +44 333 300 90 34

US: +1 83 382 30 586

After the presentation a recorded version of the webcast together with the presentation and the interim report  will be available at: https://www.kungsleden.se/en/investors/reports-and-presentations/

This information is mandatory for Kungsleden AB to publish pursuant to the EU Market Abuse Regulation. This information was submitted for publication at 7:00 a.m. CET on 12 February 2020 by the above contacts.

Kungsleden are people that create places and experiences for people. By developing and managing attractive and sustainable places, we offer people better and more inspiring work experience. We are a long-term property owner focused on commercial properties in Sweden’s growth regions. As of 31 December 2019, we owned 209 properties with total value of SEK 38,310 million.Kungsleden (KLED) is listed on the Nasdaq Stockholm Large Cap. Read more at www.kungsleden.se.

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