Year end report 1998

Year end report 1998 18 February 1998 The profit after net financial items increased to SEK 265.2 million (SEK 133.9 m), corresponding to an EPS of SEK 0.79 (SEK 1.04) after full tax. Rental income increased to SEK 2,210.0 million (SEK 714.9 m). Equity/assets ratio increased to 22.3 percent (20.8 percent) The Board proposes that the dividend paid be raised to SEK 0.30 (SEK 0.10) per share. The profit after financial items for 1999 is forecast to exceed SEK 360 million. Results 1) The profit after net financial items was SEK 265.2 million (SEK 133.9 m) , 2) corresponding to a figure per share after full tax of SEK 0.79 (SEK 1.04) . Rental income for the year as a whole totalled SEK 2,210.0 million (SEK 714.9 m). The operating surplus before depreciation totalled SEK 1,337.4 million (SEK 440.2 m). The gross yield, based on the book value of the current property holding was 7.0% (7.3%). The operating profit was SEK 1,110.9 million (SEK 415.7 m). The profit includes the profit on the sale of properties of SEK 16.0 million (SEK 54.2 m), and interest grants totalling SEK 54.4 million (SEK 19.5 m). Wihlborgs' acquisition of Klövern Fastigheter AB (publ) is included in Wihlborgs' accounts as of 1 January 1998, whilst Fastighetsaktiebolaget Storheden i Stockholm is included as of 1 July 1998, and the 1998 and 1997 figures are hence not comparable. Correction for the part of the year when Storheden did not belong to the Group has been effected in the sum of SEK 88.6 million. Operations Wihlborgs is one of Sweden's larger property companies. Since its merger with Fastighetsaktiebolaget Storheden, the operations are concentrated on the growth regions of Stockholm and Öresund that collectively account for 87% of the company's total rental income. The property holding comprises commercial premises and residential accommodation with a total leasable floor area of 3.1 2 million m and a book value of SEK 19.7 billion. Wihlborgs' strategy is to be a significant player in the Stockholm and Öresund regions property markets, where profitability and growth will be generated by means of rational and efficient property management, proximity to the customer, improvements to existing properties and development of project properties. The market and property holdings The demand for non-residential premises remains strong in Wihlborgs' principal markets, the Stockholm and Öresund regions. The effects of the increase in demand have been felt most keenly in the Stockholm region, where in general, rental levels in connection with new lettings and renegotiations have been high, removals have declined in number and, in some market areas, the vacancy levels have been more than halved to below the 2% level. The economic letting level for the Group's property holding at the period end was approximately 94 %. Broken down by Wihlborgs' market areas, the letting levels in the Stockholm and Öresund regions are 97% and 92%, respectively, and 89% in the rest of Sweden. 46% of the overall property holding's book value derives from the Stockholm region, with 42% and 12% deriving from the Öresund region and the rest of Sweden, respectively. 1) Comparisons given in parentheses refer to 1997 as a full year for the then Wihlborgs Group. 2) For definitions, see page 9. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/18/19990218BIT00420/bit0001.doc Whole report http://www.bit.se/bitonline/1999/02/18/19990218BIT00420/bit0002.pdf Whole report