KlaraBo Sverige (KLARA) Q1 2025 earnings summary

Executive summary

• Revenue increased 12% year-over-year to SEK 175 million, driven by the SEK 850 million Helsingborg portfolio acquisition and rent increases.

• Net profit reached SEK 229 million (SEK 1.49/share), mainly due to SEK 240 million in property revaluations.

• Consolidation of 740 apartments, adding SEK 76 million annual rental income and significant future value creation potential.

• 58 apartments renovated in Q1, a 50% increase from the previous quarter, mainly due to Helsingborg assets.

• Share repurchase of 2.8 million shares for SEK 45.1 million, in line with AGM mandate.

Financial highlights

• Revenue: SEK 175 million (up 12%); operating net: SEK 83 million (up 13%); management result: SEK 25 million (up 22%).

• Net profit: SEK 229 million, driven by SEK 240 million property revaluation; management result per share: SEK 0.16.

• Loan-to-value ratio: 51%; average interest rate: 3.4%; interest coverage: 1.8x.

• Cash and cash equivalents at SEK 145 million.

• Real occupancy rate at 97%; net asset value per share SEK 32.4.

Outlook and guidance

• Rent negotiations for 2025 resulted in a general rent increase averaging 5% across the portfolio.

• Management expects continued organic growth, resilience, and competitive refinancing terms despite macroeconomic uncertainty.

• The company targets at least 15% annual growth in long-term NAV per share and 12% in management result per share over a cycle.

• High demand for rentals persists due to housing shortages and low new construction.