INTERIM REPORT JANUARY – SEPTEMBER 2014

INTERIM REPORT (JANUARY – SEPTEMBER 2014)

• Rental income amounted to SEK 326.9 million (-)

• Net operating income amounted to SEK 159.2 million (0.3)

• Earnings from management operations amountedto SEK51.6million (-0.4)

• Changes in derivative instruments affected earnings in the amount of SEK -16.7 million (-)

• Changes in values of investment properties amounted to SEK 77.5 million

• Profit after tax amounted to SEK 90.7 million (-0.4)

• Earnings per share amounted to SEK 1.28

SIGNIFICANT EVENTS DURING THE QUARTER

• On July 4 2014, D. Carnegie & Co completed the transaction with HBS II – making D. Carnegie the largest listed residential property company in Sweden

SIGNIFICANT EVENTS AFTER THE QUARTER

• On 27 October 2014, D. Carnegie & Co held in extraordinary general meeting of the shareholders at which it was resolved to acquire a property portfolio in Norrköping and at which a new board of directors was elected to serve until the next annual general meeting

Comments from the CEO

The first nine months of 2014 has been a particularly eventful for D. Carnegie & Co. Since this listing on Nasdaq OMX First North in April, the company has carried out additional acquisitions of properties valued at just over SEK 7 billion. At the time of listing, we forecasted a doubling within two years. So, we have exceeded our growth target.

On July 4 2014, we took over occupancy of 9,300 apartments from a Norwegian-Swedish fund structure, making D. Carnegie & Co the largest listed pure residential property company in Sweden. The properties are strategically located and complement our previous portfolio. The transaction also included Graflunds, an organization with 50 years of experience in property management. Commencing on one October, we have brought together all of the management and operation of the group’s properties under the Graflund organization. We believe that handling all management and operations in this way will entail great advantages both in terms of costs as well as the service provided to our tenants.

We have also taken possession of a portfolio with 450 apartments centrally located in Sollentuna, both the interior and exterior of which we will continue to renovate. On October 1, we also entered into an agreement for the acquisition of 1,900 apartments strategically located in Norrköping. Graflund’s previously handled the entire management and financial reporting for the portfolio and therefore we know that this will provide a stable contribution to the property management earnings.

Due to the many acquisitions at varying times during the year, this report does not cover three quarters with comparable earnings. In order to nonetheless provide guidance, the company therefore published on October 23 2014 an annual earnings capacity as per 30 September 2014 which showed current net operating income at that time in the amount of SEK 491 million. However, this is not a forecast for the future and does not include anticipated rental increases and cost reductions.

ULF NILSSON

CEO of D. Carnegie & Co

For more information, please contact:

Ulf Nilsson, VD +46 (0)8 121 317 25

Per-Axel Sundström, CFO +46 (0)8 121 317 25

About Us

About D. Carnegie & Co D. Carnegie & Co is a property company focusing on residential properties in the Greater Stockholm region and other growth areas. The company’s business concept is to own property portfolios slated for a gradual renovation of apartments in conjunction with the natural turnover of tenants. This can take place quickly and cost-efficiently thanks to extensive experience from the Bosystem renovation method which, among other things, means that no evacuation needs to take place. In addition to this, the company creates value through the development of building rights in existing portfolios. The market value of the company’s properties amounted to SEK 15,887 million as of September 30 2016. The total annual rental value amounted to SEK 1,366 million as of September 30 2016. The economic occupancy rate is high – vacancies are virtually non-existent. D. Carnegie & Co is listed on Nasdaq Stockholm.

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