Â鶹ӳ»­

CEO Thomas Erséus has announced he is stepping down from listed Swedish real estate company Kungsleden, saying the 4th quarter of 2012 'marked a turning-point for Kungsleden strategically and financially'.

Erséus, who has led Kungsleden for almost seven years, made the announcement as the company reported its figures for 2012. He is to step down at the company's AGM on 18 April. A successor was not named.

'After tax risks and the effects of high fixed borrowing rates in recent years compelled us to adopt a more defensive attitude, we were able to leave 2012 well positioned to execute the strategic realignment the board of directors and management had been working on in the year—a realignment focused on long-term value creation through managing and enhancing wholly owned properties,' Erséus said.

The company, he added, strengthened its property management activities in 2012 and carried out a number of transactions during the year.

'The sale of our holdings in Hemsö in the fourth quarter brought Kungsleden greater financial flexibility, as well as the security to manage a potential worst case scenario in the tax proceedings we are involved in,' the CEO said in the results filing.

Kungsleden reached an agreement to sell the remaining 50% of the shares of public property owner Hemsö to the Third Swedish National Pension Fund (AP3), including repayment of a shareholder loan, for SEK 3.3 bn. Kungsleden simultaneously purchased 11 properties from Hemsö for SEK 1.5 bn at a property yield of 7%.

In 2012, Kungsleden's net sales increased by 3% to SEK 2.1 bn (€248 mln) from SEK 1.2 bn in 2011 with a larger property portfolio.

Pre-tax profit for 2012 came to SEK 1.2 bn (SEK 693 mln in 2011). But after-tax profit was SEK 352 mln compared to SEK 638 mln in 2011. The 2012 result equates to SEK 2.60 per share compared to SEK 4.70 per share in 2011.

Kungsleden said that the decrease in profit after tax was mainly due to provisions for tax risks, while profit before tax increased due to the sale of the Hemsö shares.

Kungsleden's property portfolio consisted of 278 properties with a book value of SEK 15.8 bn at end-December 2012.