Kungsleden's first half year: major acquisitions enhance earnings capacity (SE)

Kungsleden has presented its results over the first half year 2005. In the first six months of this year, profit after financial items reached SEK 414 (188) m and net profit was SEK 764 (276) m, equivalent to SEK 20.20 (7.30) per share.

The highlights are:

  • Profit after financial items was SEK 414 (188) m and net profit was SEK 764 (276) m, equivalent to SEK 20.20 (7.30) per share.
  • Kungsleden's rental revenues increased to SEK 798 (726) m, and operating net increased by 10 per cent to SEK 560 (508) m.
  • In the interim period, 18 properties were divested for SEK 911 m generating profits of SEK 172 m and a cash flow of SEK 214 m; 211 properties were acquired for SEK 5,451 m.
  • Kungsleden upgrades its forecast profit for 2005 calculating dividends from SEK 725 m to SEK 800 m.
  • Today, Kungsleden's Board decided to consummate a rights issue to enable continued acquisitions. With an issue price of SEK 132 per share, the rights issue (offering the right to subscribe for one new share for every five shares held) would raise up to SEK 1,001 m.

Kungsleden's Chief Executive, Jens Engwall, commented: "In the first half year 2005, Kungsleden further accelerated its already high transaction tempo, particularly on the buy side, as we indicated in our Financial Statement for 2004. So far, we've made property acquisitions of SEK 5.5 bn, and divestments of nearly SEK 1 bn. The book value of our property holding had grown to SEK 18,9 bn at mid-year 2005."

"We think the bright prospects of finding attractive acquisition opportunities will sustain for the immediate future - and the stronger finances the new issue creates will enable us to maintain our successful strategy."

To create the necessary financial strength to exploit attractive acquisition opportunities ahead Kungsleden's Board has decided to consummate a SEK 1,001 m new issue with preferential rights for existing shareholders. The record date is 23 September 2005. This decision is conditional on the approval of an EGM of 20 September 2005.

Source: Kungsleden

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