Profit after net financial income/expense for 2000 amounted to SEK 509,4 Mkr

Profit after net financial income/expense for 2000 amounted to SEK 509,4 Mkr ·Profit after net financial income/expense amounted to SEK 509.4 million (577.0). The profit includes items affecting comparability totalling SEK 271.2 million (361.7). ·For comparable property holdings, the net rents from property management rose by 10.5 per cent compared with the previous year. ·The Board proposes a dividend per share of SEK 0,85 (0,78). ·In line with the strategy properties were acquired for SEK 2 719,5 million in central Stockholm and the site leasehold properties in Liljeholmen were divested for SEK 900 million. ·The positive trend in rent levels in central Stockholm and central Gothenburg continued during the year. New top annual rents of between SEK 6,000 and 7,000 per square metre were noted for office space in Stockholm. Stockholm, February 16, 2001 HUFVUDSTADEN AB (publ) Ivo Stopner President Enclosure: Year-end Report, 2000. Questions will be answered by Ivo Stopner and Clas Hjorth, telephone +46 8 762 90 00.HUFVUDSTADEN Year-end Report 2000 ·Profit after net financial income/expense amounted to SEK 509.4 million (577.0). The profit includes items affecting comparability totalling SEK 271.2 million (361.7). ·For comparable property holdings, the net rents from property management rose by 10.5 per cent compared with the previous year. ·The Board proposes a dividend per share of SEK 0,85 (0,78). ·In line with the strategy properties were acquired for SEK 2 719,5 Mkr in central Stockholm and the site leasehold properties in Liljeholmen were divested for SEK 900 million. ·The positive trend in rent levels in central Stockholm and central Gothenburg continued during the year. New top annual rents of between SEK 6,000 and 7,000 per square metre were noted for office space in Stockholm. CONSOLIDATED RESULTS Property management Gross profit for the year totalled SEK 471.6 million (404.3). Excluding costs for special projects (see below), the gross profit rose by 23.2 per cent. Net rents. Net rents from property management during the year amounted to SEK 1,042.4 million (865.5), equivalent to an increase of 20.4 per cent. For comparable property holdings, the increase was SEK 95.1 million or 10.5 per cent. Of the net rents from property management, the Stockholm Business Area accounted for SEK 699.6 million (492.7), the NK Business Area for SEK 248.5 million (229.3) and the Gothenburg Business Area for SEK 94.3 million (90.5). The increase includes SEK 97.6 million net from acquisitions and divestments. Operating expenses. Property management expenses during the year totalled SEK 570.8 million (461.2). The increase in expenses of SEK 109.6 million includes increased expenses for special projects amounting to SEK 28.7 million. Divided according to business area, the Stockholm Business Area accounted for SEK 371.1 million (228.8), the NK Business Area for SEK 154.4 million (155.9) and the Gothenburg Business Area for SEK 45.3 million (42.4). The increase in expenses within the Stockholm Business Area is attributable mainly to acquisitions, increased property tax and increased maintenance costs. Of the total maintenance costs for the Stockholm Business Area, special projects accounted for SEK 38.0 million (8.8). Other operations 1) Other operations include parking operations at Parkaden, parking and conference operations at the World Trade Center and hotel operations at Citypalatset, all in Stockholm. The gross profit for the year totalled SEK 24.4 million (13.8). Net sales amounted to SEK 102.3 million (79.3). Operating expenses amounted to SEK 77.9 million (65.5). Other income statement items Central administration totalled SEK -28.7 million (-33.0) and comprises mainly salary and office expenses for the Group management and Group staffs. Items affecting comparability of SEK 271.2 million (361.7) 2) comprised mainly profits on the sale of properties, SEK 211.0 million, and a repayment from SPP of SEK 57.1 million. The profit on participations in associated companies, SEK 3.5 million (30.9) 3) , arose from the sale of shares in FASAB Fastighetssystem AB. Net financial income and expense amounted to SEK -232.6 million (-200.7). The Group's tax expense (both paid and deferred) was SEK -146.1 million (- 52.9). SPECIAL PROJECTS Special projects refer to measures taken to improve and develop properties. The costs that arise in conjunction with this are in the short term a charge on profit. In the long term, however, special projects increase the return on property holdings. The profit for the year was charged with costs amounting to SEK 38.4 million (9.7) for two projects. The first was Orgelpipan 7, Klarabergsgatan 56-64 in Stockholm, which involves the conversion of over 10,000 square metres for Postgirot Bank AB and is due for completion at the end of 2001. The second, Hästhuvudet 13, Kungsgatan 42 in Stockholm, involved extensive conversion and extension of the property and has now been completed. ACQUISITIONS, DIVESTMENTS AND INVESTMENTS The remaining two-thirds of the shares in Vasaterminalen AB, which owns the World Trade Center building 4) in Stockholm were acquired for SEK 894 million, with completion on January 1, 2000. The rentable space in the building is approximately 45,800 square metres plus garage space. The annual rent for the property, based on current contracts, is around SEK 136 million, excluding the property tax supplement. Hufvudstaden estimates the current annual market rent for the property to be SEK 170-200 million, excluding the property tax supplement. In June, the Pumpstocken 13 property, located at Biblioteksgatan 12 in Stockholm, was acquired for SEK 184 million. The completion date was September 1, 2000. The rentable space is approximately 2,800 square metres and the whole of the property has been rented out. The annual rent for the property, based on current contracts, is around SEK 8.5 million, excluding the property tax supplement. Hufvudstaden estimates the current annual market rent for the property to be SEK 15-17 million, excluding the property tax supplement. In August, all the shares were acquired in Beheer-en Beleggingsmaatschappij Gradoma B.V., which owns the Citypalatset property on Norrmalmstorg in Stockholm. The completion date was October 2, 2000. The purchase sum for the shares plus acquired liabilities was SEK 1,100 million and is based on an estimated property value of SEK 1,100 million. The rentable space is approximately 14,400 square metres. The annual rent for the property, based on current contracts, is around SEK 37 million, excluding the property tax supplement. Hufvudstaden estimates the current annual market rent for the property, excluding the effects of development projects, to be SEK 65-75 million, excluding the property tax supplement. The site leasehold properties Stubinen 2 and Stora Katrineberg 16 at Liljeholmen in Stockholm have been sold. The completion date was December 19. The purchase sum was SEK 900 million and the capital gain SEK 211 million. Total investments for the year in properties and equipment, excluding acquisitions, totalled SEK 144.5 million (69.1). The largest single item is the construction of a new building on the Skären block on Norrmalmstorg in Stockholm. PROPERTY PORTFOLIO The book value of Hufvudstaden's property portfolio as of December 31, 2000 was SEK 9,178.3 million and the rentable space was 429,542 square metres. The total floor space vacancy rate on the same date was 2.6 per cent (4.1) and the total vacancy rate was 1.9 per cent (3.7). THE RENTAL MARKET Rents in Hufvudstaden's prioritized market areas, central Stockholm and central Gothenburg, continued to rise during the year. The demand for well- situated office and retail premises was good and outstripped supply. New leases for offices in the most attractive locations in Stockholm, such as the Golden Triangle, carried annual rents on the SEK 6,000-7,000 per square metre level, excluding the property tax supplement. Within the same area, annual rents for retailing space were between SEK 10,000 and 15,000 per square metre, excluding the property tax supplement. Rents in Gothenburg for modern office and retailing premises in prime locations have also continued to rise, while the vacancy level for office space continues to fall. New leases for office premises in the most attractive locations carried annual rents of around SEK 2,000 per square metre, excluding the property tax supplement. In the case of leases for prime retailing space, annual rents varied from SEK 5,000 to SEK 8,500 per square metre, excluding the property tax supplement. FINANCING STRUCTURE Hufvudstaden's borrowing as of December 31, 2000 amounted to SEK 4,248.1 million compared with SEK 3,637.9 at the end of 1999. The average fixed interest period was 18 months (33), the average capital tie-up period was 23 months (30) and the average interest rate was 5.0 per cent (5.1). Net liabilities amounted to SEK 4,022.5 million compared with SEK 3,563.2 at the end of 1999. Capital tie-up structure, December 31, 2000 Maturity Volum Propor Date e, tion, SEK m % 2001 1,236 29 .5 2002 1,005 24 .5 2003 600.6 14 2004 905.5 21 2005 500.0 12 Total 4,248 100 .1 Fixed interest structure, December 31, 2000 Maturit Volu Propo Averag y me, rtion e APR, date SEK , % % m 2001 1,91 45 5,2 1.4 2002 830. 20 4,8 5 2003 600. 14 4,4 6 2004 905. 21 5,3 6 Total 4,24 100 5,0 8.1 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/02/16/20010216BIT00540/bit0002.doc The full year-end report http://www.bit.se/bitonline/2001/02/16/20010216BIT00540/bit0002.pdf The full year-end report