The value of the properties

Risk
A great risk and opportunity for Klövern’s properties lie in changes in value. Changes in value are affected by factors such as how well Klövern succeeds in improving and developing properties and by the contract and customer structure. External changes such as the general state of the economy, interest rates, the local balance between supply and demand, loan financing and the required yield, also have an impact. The required yield is affected to a great extent by the risk-free rate and the properties’ unique risk. Property values are less volatile for concentrated portfolios in good location.

Management
Klövern has often acquired properties with a high vacancy rate in order to develop and improve them. Klövern has a high level of expertise in property and project development. Due to Klövern’s local organization, which is close to the customer, long-term relationships have been established with tenants, which reduce the risk of new vacancies. The customer structure is well diversified with 16 per cent in the public sector, 28 per cent in listed companies and 56 per cent in private companies. Klövern has a concentrated portfolio with 99 per cent of the rental income at the ten prioritized cities.

Exposure