Report on first six months of 1999

REPORT ON FIRST SIX MONTHS OF 1999 *Profit shows strong improvement *Pretax profit for the period amounted to SEK 702 M (Q1, 1998: 344), of which capital gains accounted for SEK 350 M (200). *Earnings per share SEK 5.77 (2.72) *Cash flow (excluding capital gains and nonrecurring items) amounted to SEK 4.01 per share during January-June 1999 (2.78) . *Based on an identical portfolio, rental revenues were 4% higher than in the year-earlier period. *High level of activity *Investments in acquisitions amounted to SEK 1.9 billion and running projects amounted to SEK 0.6 billion - mainly in Stockholm. *Divestments amounted to SEK 1.2 billion - all hotel properties were sold, phase-out of foreign operations is proceeding as planned. *Forecast * Full-year pretax profit for 1999 is expected to exceed SEK 1,100 M (including the capital gains of SEK 420 M reported to date). Contents *Business comments *Comments on the interim report *Income statements, balance sheets, statement of changes in financial position *Key data and definitions *The Drott share Drott AB (publ) is a pure real estate company that focuses on the Swedish market. The Company's mission is to generate a return on shareholders' equity through the management of its own real estate and the active use of the capital structure. With the support of satisfied tenants, profitable properties and a strong position in local growth markets - mainly for offices and housing - Drott aims to secure a rising operating surplus in real terms from every property, combined with growth in cash flow per share. At the end of June 1999, Drott owned 556 properties with 3.0 million square meters of rentable floor space, of which housing (about 18,500 apartments) accounted for 1.3 million square meters. Rental revenues (including vacant premises) amounted to SEK 2.7 billion, with the Stockholm area accounting for half. Drott has 300 employees, 55,000 shareholders and is the largest real estate company on the Stockholm Stock Exchange. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/08/13/19990813BIT00110/bit0001.pdf Full Report http://www.bit.se/bitonline/1999/08/13/19990813BIT00110/bit0002.doc Full Report