Kungsleden stable in times of turbulence
Due to the turbulence now prevalent in the business sector and financial markets in connection with the spread of COVID-19, Kungsleden wants to clarify the following. Kungsleden is standing stable financially and in terms of our customer base.
Kungsleden’s equity/assets ratio amounted to 44 per cent at year-end and the loan-to-value ratio was 45.8 per cent. We have no bond or bank loan maturities in 2020. At the same time, we have cash and facilities available to be able to manage all remaining maturities in the capital market in 2021.
“Kungsleden has built up a strong balance sheet and a healthy mix of properties in our four prioritised markets of Stockholm, Västerås, Gothenburg and Malmö during the past five years. We have a well-diversified customer mix of high quality. We are stable even in these times of turbulence,” says Biljana Pehrsson, CEO of Kungsleden.
Kungsleden’s tenants comprise 75 per cent offices and 15 per cent logistics, warehouses and industry. Less than 5 per cent of the rental value comprises retail and approximately 4 per cent hotels. Approximately a quarter of the share of retail comprises grocery stores.
The spread of coronavirus is currently affecting most aspects of society. Kungsleden will not be immune to any future payment difficulties among its customers. The requests for rent relief that Kungsleden has received to date are being addressed individually and at present, the impact on the total rent flow is deemed to be limited.
“We are monitoring developments closely and working systematically in both property management and our projects to support our customers in their current situation. Above all, we are taking care of our customers, employees and investors by adopting a responsible approach,” says Biljana Pehrsson.
About Kungsleden. We are people that create places and experiences for people. By developing and managing attractive and sustainable places, we offer people a 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 m. Kungsleden (KLED) is listed on the Nasdaq Stockholm Large Cap. Read more at www.kungsleden.se