Property Costs

Risk
There is a risk in properties with neglected maintenance of large and expensive repair costs. Energy accounts for 30 per cent of Klövern’s property costs and consumption and energy costs can rise sharply if control is poor. Weather deviations from what is regarded as normal can also affect the total outcome. Seasonal variations in weather mean that energy costs are not evenly distributed over the year. Normally, for example, around 40 per cent of the year’s heating consumption takes place during the first quarter of the year.

Management
Through its local organization, Klövern has a very good control of its properties. An ambitious maintenance programme with preventive measures reduces the number, and costs of, unanticipated repairs. A major investment has been made for energy-optimized investments. Klövern works actively to follow up energy consumption and takes steps to reduce it.

Exposure
The influence of the weather during a particular year can be measured as a deviation from a “normal year”. If a particular year deviates from the normal year by +/– 10 per cent, Klövern’s energy costs change by SEK 2 million with the present consumption. In the past two years, Klövern has placed an increasing
focus on tenants paying the actual cost of energy consumption and not a standard charge, which has also reduced the risk for Klövern.