KlaraBo Sverige (KLARA) Stockholm Corporate Finance Conference 2025 summary

Portfolio strategy and market focus

• Operates 7,500 rental apartments, with 85% of the portfolio in residential properties, focusing on acquiring older assets with renovation potential and new developments.

• Growth has been achieved by targeting mid-sized cities with strong income and infrastructure, avoiding major cities due to low yields.

• Four main hubs—Helsingborg, Östersund, Trelleborg, and Visby—account for 50% of market value, each with about 900 units and low entry rents.

• Expansion into other strong cities is ongoing, with a focus on creating additional hubs and leveraging renovation opportunities.

Financial position and value creation

• Maintains a 50% loan-to-value ratio, providing flexibility for further investments and renovations.

• Organic value creation since 2019 has generated SEK 460 million net for shareholders, with further potential of SEK 130 million in annual rent from existing assets.

• Renovation strategy can yield up to SEK 2.7 billion in new value, translating to nearly SEK 7 per share over time.

• High demand for affordable renovated apartments supports stable occupancy and ongoing value creation.

Operational performance and market trends

• Achieves a real occupancy rate of 97% after adjusting for units under renovation, indicating strong demand.

• Annual renovation pace is about 200 apartments, with continued investment as long as demand persists.

• Recent acquisition in Helsingborg aligns with the strategy, offering significant renovation potential and high yield.

• Owns fully leased properties in key hubs, with ongoing efforts to scale up for operational efficiency.