Interim Report for January – March 2014 In the first

New Post Public Reply Private Reply Replies (0) Message Board

News Desk 2018

Apr 29, 2014 at 2:15 AM

Interim Report for January – March 2014

In the first quarter, Kungsleden took major steps in its strategic plan. RESULTS IN BRIEF First quarter (January – March) · Net sales increased by SEK 707 (487) m and gross profit increased to SEK 408 (281) m. · Profits from property management improved and were SEK 195 (88) m, which corresponds to SEK 1.43 (0.64) per share. · Net letting for the period increased by SEK 12 (–5) m. · Cash flow from operating activities was SEK 178 (131) m, which corresponds to SEK 1.30 (0.96) per share. SIGNIFICANT EVENTS DURING AND AFTER THE FIRST QUARTER · The integration of properties and personnel from the acquisition of properties from GE in December 2013 was completed during the first quarter. The GE portfolio thus contributed to operating net during the entire first quarter. · The property portfolio was further refined to bring it in line with Kungsleden’s new strategy and sales were SEK 506 m for the quarter. After the end of the quarter, a further SEK 185 m in sales were recorded. The earnings effect of all sales is estimated at SEK 58 m and will be reported in the next quarter. · Kungsleden’s average borrowing cost fell even further during the quarter, primarily due to having restructured the swap portfolio. As of 31 March 2014, the average interest rate was 5.4 per cent, compared to 5.8 per cent at the beginning of the year. · Subsequent to the end of the reporting period, the Administrative Court of Appeal notified Kungsleden that it was not entitled to a deduction for certain impairment losses in tax filings from prior years. Kungsleden intends to apply for leave to appeal at the Supreme Administrative Court. [image] COMMENTS FROM BILJANA PEHRSSON, CEO During the first quarter, Kungsleden continued to pursue the company’s strategic plan at a quick tempo. Profits from property management improved to SEK 195 (88) m due to larger property holdings and a higher operating net. Gross profit increased by 45 per cent to SEK 408 m simultaneous to a decrease in central and administrative costs, compared to the same period in 2013. Net sales increased to SEK 707 m, of which the income from modular leasing and sales was SEK 141 m. By maintaining a greater focus on our customers’ needs for premises, and supported by a cautiously optimistic rental market, we were able to sign new leases during the quarter for a total of 30,000 sq.m., thus achieving a very satisfactory net leasing result of SEK 12 m. During the quarter, the economic occupancy increased to 91.2 (90.5) per cent and the operating surplus margin increased to 63.7 (62.0) per cent. Refinement and optimisation of the property portfolio is continuing according to plan. During the quarter and after its end, agreements were signed for the sale of non-strategic properties at values totalling SEK 690 m, which exceeds the book value by 10 per cent. At the present time, there is strong demand in the property market along with an under-supply, which is a favourable situation for the sales that we still have planned. Subsequent to the end of the reporting period, the Administrative Court of Appeal ruled negatively on one of Kungsleden’s tax cases (see also page 8). Kungsleden’s strategy is not affected by the Court’s ruling, but the company continually assesses how quickly its strategy can be implemented based on its current options. The company has liquidity at its disposal of SEK 2,940 m. In addition, the profits from property management continue to strengthen the company’s balance sheet and liquidity. Kungsleden’s strategy is to create value by meeting customer needs for premises, managing and developing properties and optimising the company’s property portfolio in order to generate an attractive total return. During 2014, Kungsleden plans to divest properties for SEK 1–1.5 billion. This action is in line with the company’s strategy of refining and optimising the property portfolio to its chosen segments – office, industrial/warehouses and retail in prioritised growth regions and locations. Freed-up capital will be reinvested in strategic properties with a high expected total return in the form of higher rental revenue or lower costs, or in the form of declining yields. Over time, our aim is to grow the property portfolio to around SEK 30 billion. Biljana Pehrsson CEO For more information, please contact: Biljana Pehrsson, Chief Executive of Kungsleden | +46 (0)8 503 052 04 | biljana.pehrsson@kungsleden.se Anders Kvist, Deputy CEO and CFO of Kungsleden | +46 (0)8 503 052 11 | anders.kvist@kungsleden.se www.kungsleden.se Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se/pressmeddelanden Kungsleden AB (publ) 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 29 April 2014 at 8:00 p.m. Kungsleden’s business concept is to own, manage and improve commercial properties in growth regions in Sweden and to deliver attractive total returns. Kungsleden’s strategies to create value are based on meeting the premises requirements of customers by managing, improving and developing properties and planning consents and by optimising the company’s property portfolio. Kungsleden has been quoted on NASDAQ OMX Stockholm since 1999.

Newer

Older

Scroll down for more posts ▼

Top 10 Most Recent News Articles

UAE Pioneers eATA Carnet System Beyond Europe

Breaking Tradition with Digital Innovation Well, who would’ve thought? The UAE just leapt ahead in the trade game, becoming the first to roll out the eATA Carnet system beyond the cozy confines of Europe. This isn’t some run-of-the-mill tech rollout, folks. It’s a digital revolution in how temporary imports are handled—goodbye paper, hello efficiency! With this...

New Metrics Aim to Elevate Organ Procurement Performance

Revamping Organ Procurement: A New Approach In the tangled web of healthcare, the organ donation system stands as a lifeline that's often tangled in its metrics. The latest stride by the Association of Organ Procurement Organizations (AOPO) might put some untethered efforts in line. With an announcement on November 9, 2026, the AOPO unveiled three fresh performance...

State Grid's Green Leap at COP31: Stepping into Action

Electrification Takes Center Stage at COP31 Well, the folks over in Antalya are buzzing, and not just about their baklava. At COP31, the conversation's a whirlwind of electrification and industrial parks, and right in the thick of it is State Grid. They're not just pumping out kilowatts anymore; they're turning entire parks into green machines. This ain't just corporate...

Honeywell Faces Investor Scrutiny: Class Action Deadline Looms

Clouds Gather Over Honeywell Aerospace Sometimes the storm clouds are about as subtle as an elephant in your garden. And that's precisely what's brewing over at Honeywell Aerospace, Inc. (NASDAQ: HONA) these days. November 23, 2026, looms large as the deadline for investors to jump on board with a class action tied to alleged missteps that caught everyone off guard. The...

Trimble Unveils Bold AI Tools in Construction Push

Trimble Connect's Bold Move in AI In the relentless world of construction, where risk is as common as a hard hat, Trimble's rolling out some heavy-duty AI capabilities. Today, at the annual Trimble Dimensions bash in Las Vegas, the bigwigs at Trimble (NASDAQ:TRMB) flashed their latest trick: Trimble Connect's AI arsenal. It's not just a software upgrade; it's practically...

SOTERIA and Tempus Unite for Military Cancer Battle

The Military Faces Cancer's Grasp: A New Frontline There's a battle brewing in the healthcare world, one distinctly different from the chaos of stock tickers or quarterly earnings. It's about saving lives in a space where tactical precision is everything—cancer care for U.S. military personnel and veterans. SOTERIA Precision Medicine Foundation and Tempus (NASDAQ: TEM)...

Burger King Revives Mini-Frenzy with 2026 Advent Calendar

Nostalgia and Miniature Magic: Burger King's Holiday Ploy You ever seen a burger chain stir up more hype around the holidays than Santa in a bright red suit? Well, Burger King's back at it, logging into the nostalgia machine with their teensy-weensy-sized treats—just what frenetic mini fans and collectors clamor for. This pint-sized ploy plays right into the craze for...

NAMSA, AMS Partner to Fast-Track Tissue-Healing Tech

Streamlining the Path to Market I tell you, the medical device sector is no walk in the park these days. Between the regulators breathing down your neck and the endless red tape, getting a new product from the lab to the hospital floor can feel like running a marathon in quicksand. That's why this deal between NAMSA and Advanced Medical Solutions (AMS) has me taking a...

GCC's Path to 10 Gbps: U6GHz Revolution Unfolds

On the Journey to 10 Giga: The U6GHz Leap You know, sometimes the telco world kicks up a fuss about speed, and this time, it’s the upper 6 GHz (or U6GHz) band that’s got everyone abuzz. At the Telecom Review Leaders' Summit in Dubai, industry bigwigs gathered to discuss how this spectrum could catapult the GCC into the 10 Gbps connectivity stratosphere. Fancy-talk...

Veterinary Stories Transform Pet Care in New Docuseries

Peeling Back the Scrubs: Hidden Heroes in Vet Medicine Everyone's all-hands-on-deck when it's your furball on the line, but how much do you really know about what happens in those vet offices? Finally, National Veterinary Associates (NVA) is unzipping that mystery with a no-bones-about-it docuseries, Advancing Veterinary Medicine: Our Stories, right out of Austin, Texas....