Year-end report 1 January - 31 December 2023

October - December

• Revenue amounted to SEK 149.4 million (139.4), a year-on-year increase of 7 per cent.
• Net operating income amounted to SEK 76.9 million (75.5), up 2 per cent year-on-year.
• Profit from property management amounted to SEK 23.9 million (25.4), a year-on-year decrease of 6 per cent.
• Changes in the value of investment properties amounted to SEK -18.0 million (-147.7) and changes in the value of derivatives to SEK -174.1 million (9.5).
• Earnings totalled SEK -135.8 million (-96.2), corresponding to SEK -1.04 per share (-0.73).
• The loan-to-value ratio was 52.2 per cent (49.7) on 31 December. The company is financed solely through bank borrowing.

Significant events

• Per Holmqvist was recruited as the company's new CFO. Per will take up his position in March this year.
• 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.
• Loan agreements with two Nordic banks was extended, maturing in 2026 and 2027, at a margin that falls below the company's average margin.
• A five-year contract extension was signed for approximately 850 square metres with Systembolaget in central Västervik. The rental value amounts to approximately SEK 1.8 million per year.

From Andreas Morfiadakis' CEO comments

Financial development

Our financial performance during the year demonstrates our financial stability, despite the difficult market environment, and is a sign of strength and confirmation that we are doing the right things. For full-year 2023, revenue increased 18 per cent and net operating income 21 per cent. We also reported a 10 per cent increase in profit from property management compared with last year thanks to the year's rent increases and upgrades - only slightly below our long-term target of at least 12 per cent growth in profit from property management per share, measured over a business cycle. In addition, we increased our interest-rate hedging ratio in our loan portfolio to about 80 per cent, which means that only approximately 20 per cent of our interest-bearing liabilities were affected by higher short-term interest rates. This high interest-rate hedging ratio will provide stability and predictability with respect to future financing expenses since we only make use of bank loans. Demand for housing in Sweden remains high, particularly in terms of rental apartments, and demand for our homes remains favourable. During the quarter, our real occupancy rate remained at a stable and high level of 97.8 per cent.

Outlook

In summary, our performance in the fourth quarter once again confirms the strength of our business model, which focuses on long-term ownership, property management and improvements to rental properties. Our model, which involves annual rent increases above the general level, creates favourable conditions for a gradual increase in the value of our property portfolio and a gradual increase in cash flow per share over time. Another factor contributing to our stability is the high proportion of hedged financing, exclusively through bank loans.

Most analysts expect a more favourable market climate for the property industry, particularly for housing, in 2024 compared to last year. This gives us the potential to grow our property management portfolio through acquisitions and to expand through new construction. Overall, we look forward to the future with confidence. 

Teleconference and webcast presentation

KlaraBo's CEO Andreas Morfiadakis and Interim CFO Urban Ottosson will present the report and answer questions at a webcast presentation and conference call in Swedish at 09:00 CET today.

Time: 09.00 a.m. (CET) on Thursday February 15, 2024

Link to webcast below. Via the webcast you can ask questions in writing.

Klarabo Year End 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 CET on February 15, 2024.