KlaraBo Sverige (KLARA) Stockholm Corporate Finance Conference 2024 summary

Portfolio overview and market position

• Manages 6,614 apartments with a 97.7% occupancy rate and SEK 9,050m total market value as of Q2 2024.

• Portfolio is geographically diversified across Central, South, North, and East regions.

• Average rent for unrenovated apartments is SEK 1,136 per sq.m per year.

• Residential segment benefits from low market vacancy and high demand, with over 50% of Swedish municipalities reporting a housing deficit.

• Rental increases have consistently outpaced inflation, supporting stable cash flows.

Value creation and business model

• Approximately 60% of the portfolio (about 4,000 apartments) has renovation potential, excluding new construction.

• Renovations are performed after tenants move out, increasing property values and cash flow.

• Land and development rights for over 900 new apartments are held, with 963 apartments in the project development pipeline.

• Acquisitions focus on higher yields in small and medium-sized districts.

• Proven track record in value-enhancing renovations, with significant rent increases post-renovation in Visby, Trelleborg, and Östersund.

Financial performance and outlook

• Rental value trend has exceeded the general market by 15.8 percentage points since 2019.

• Annual rental revenue is SEK 640m with a 59.3% surplus ratio.

• Loan-to-value ratio stands at 52.8%, with all financing from Nordic banks and a 3.3-year fixed interest term.

• Interest-rate hedging ratio is 69.2%, and the average interest rate is 3.6%.

• Net asset value per share is SEK 32.1 as of Q2 2024.