Financial Statement, 1 January – 31 December 2007: Healthy profits and long rental agreements
• Net sales increased by 11 per cent to SEK 2,612 (2,349) m.
• Profit before tax was SEK 2,621 (3,574) m. Net profit was SEK 2,400 (3,574) m, equivalent to SEK 17.60 (26.20) per share.
• As of 31 December, the property holding comprises 575 (591) properties with a book value of SEK 25,737 (23,106) m.
• In the year, 213 properties were acquired for SEK 9,625 m; 222 properties were divested for SEK 9,475 m, generating a profit of SEK 580 m. These divestments changed profit for calculating dividends by SEK 1,465 m.
• Profit for calculating dividends for 2007 was SEK 2,019 m.
• The Board is proposing dividends of SEK 8 per share (11).
• The forecast for the financial year 2008 is a profit for calculating dividends of SEK 900 m.
Fourth quarter (October-December)
• Net sales increased by 24 per cent to SEK 681 (548) m.
• Profit before tax was SEK 1,070 (1,676) m and net profit was SEK 1,237 (1,656) m, equivalent to SEK 9.10 (12.10) per share.
“Last year was another successful one for Kungsleden, with profits of SEK 2.4 bn and profit for calculating dividends of over SEK 2 bn. In 2007, we were also able to transfer SEK 22.50 per share to shareholders through dividends and redemption.”
“By acquiring properties with higher yields than the properties we divested, we were able to improve our earnings capacity further in the fourth quarter. Our major deals included the divestment of some 80 commercial properties for over SEK 4.7 bn to Norwegian asset manager Orkla Finans. I’m very satisfied with this deal, and the profit we achieved. I view it as more corroboration of how well our business model works, even in a more uncertain market.”
“In our commercial portfolio, we took a goal-oriented approach to extending the term of our rental agreements in the year, which now average 4-5 years. With longer rental agreements and financially secure tenants, as in our public property portfolio, we can ensure healthy cash flows and sustain stable returns.”
“Our forecast profit for calculating dividends for 2008 is SEK 900 m. After several years of very good profits from property trading, we expect management profits to represent the majority of our profit for calculating dividends in 2008. Continued portfolio enhancements last year further improved our prospects of delivering healthy management profits and stable cash flows for the long term,” commented Kungsleden’s Chief Executive Thomas Erséus.
For more information, please contact:
Thomas Erséus, Chief Executive, tel +46 (0)8 503 05204, mobile +46 (0)70 378 2024
Johan Risberg, Deputy Chief Executive, tel +46 (0)8 503 05206, mobile +46 (0)70 690 6565
Kungsleden discloses the information in this press release according to the Swedish Securities Markets Act and/or the Swedish Financial Trading Act. The information was provided for public release on 19 February 2008 at 12.45 p.m.