YEAR-END REPORT, 2008

Catena’s income from property management rose 21 procent

• Rental revenue during the period totaled SEK 189.3 M (179.7).

• Income from property management amounted to SEK 89.2 M (73.8), or SEK 7.71 per share (6.38).

• Profit before tax for the period was SEK -200.2 M (279.9).

• Profit after tax for the period amounted to SEK -131.9 M (216.2), or SEK -11.41 per share (18.70).

• Realized change in value included in profit before tax amounted to SEK 4.3 M (37.7)

• Unrealized change in value amounted to losses of SEK 293.7 M (profit: 168.4), for which property accounts for a deficit of SEK 260.2 M (profit: 167.3) and derivatives for a loss SEK 33.5 M (gain: 1.1).

• Investments in existing portfolio amounted to SEK 127 M (95) during the period.

• Acquisition of land was carried out totally SEK 8 M (-).

• The Board of directors proposes a dividend of SEK 5.25 per share (5.25).

Peter Hallgren, President and CEO:

• Current property management at Catena continues to progress favorably. Earnings rose by 20.8 percent, and totaled SEK 89.2 M. Rental revenue rose by 5.3 percent to 189.3 M. We see a continuing favorable trend in our property management result, due to falling interest rates and other factors.

• Investments of SEK 127 M provide for a good return.

• Catena’s earnings were adversely impacted by the valuation of the property portfolio. The value of the property portfolio was downgraded by some 10 percent during the year.

• Catena’s strategy to avoid major property acquisitions during the 2007-2008 period – due to a low yield requirement – proved appropriate.

• During the year we noted a decline in demand for commercial premises. Despite this trend, Catena signed new leases corresponding to SEK 16.3 M annually. The signed leases have an average term of five years.


N.B. This is a translation from Swedish. The Swedish version shall always take precedence.

The Interim Report can be downloaded from www.catenafastigheter.se