Profit for the period (after tax) amounted to SEK 32.2 m

Profit for the period (after tax) amounted to SEK 32.2 m Profit for the period (after tax) amounted to SEK 32.2 m (356.0). The profit for the preceding year included items affecting comparability totalling SEK 317.5 m. For a comparable property portfolio, the net rents from property management increased to SEK 252.9 m (225.1). Rent levels in central Stockholm and Gothenburg have continued to rise. Office rents of SEK 5,000 per square metre were noted in Stockholm. The floor space vacancy rate fell from 3.7 to 3.1 per cent. Stockholm. May 10, 2000 HUFVUDSTADEN AB (publ) Ivo Stopner President Enclosure: Interim Report, January - March 2000 Questions will be answered by Ivo Stopner and Clas Hjorth, telephone +46 8 762 90 00. HUFVUDSTADEN Interim Report, January - March 2000 Profit for the period (after tax) amounted to SEK 32.2 m (356.0). The profit for the preceding year included items affecting comparability totalling SEK 317.5 m. For a comparable property portfolio, the net rents from property management increased to SEK 252.9 m (225.1). Rent levels in central Stockholm and Gothenburg have continued to rise. Office rents of SEK 5,000 per square metre were noted in Stockholm. The floor space vacancy rate fell from 3.7 to 3.1 per cent. CONSOLIDATED RESULTS Property management Gross profit totalled SEK 93.0 m (100.7). Net sales during the period 1 totalled SEK 252.9 m (226.3) , of which the Stockholm Business Area accounted for SEK 169.3 m (121.4), the NK Business Area for SEK 59.0 m (51.4) and the Gothenburg Business Area for SEK 24.6 m (23.1). Included in the increase in net sales, SEK 26.6 m, are acquisitions totalling SEK 35.4 m and divestments totalling SEK 30.4 m. For a comparable property portfolio, the net rents from property management increased to SEK 252.9 m (225.1). 1 Operating expenses totalled SEK 159.9 m (125.6) , of which the Stockholm Business Area accounted for SEK 105.4 m (52.8), the NK Business Area for SEK 42.9 m (39.3) and the Gothenburg Business Area for SEK 11.6 m (11.6). The increase in expenses within the Stockholm Business Area is attributable primarily to acquired properties and increased maintenance costs, of which special projects accounted for SEK 16.2 m (0.0). 2 Other operations Other operations include parking operations at Parkaden in Stockholm and parking and conference operations at the World Trade Center in Stockholm. The gross profit for the period totalled SEK 5.3 m (3.2). Net sales amounted to SEK 23.3 m (40.3). Operating expenses amounted to SEK 18.0 m (37.1). 1 The 1999 figure included properties that have now been sold. 2 The 1999 figure included the results from the now divested Sheraton Göteborg Hotel and Towers. Other income statement items Central administration totalled SEK -7.4 m (-9.6) and comprises mainly salary and office expenses for the group management and group staffs. Net financial income and expense amounted to SEK -58.9 m (-56.7). 3 The profit on participations in associated companies, SEK 3.5 m (6.2) , arose from the sale of shares in FASAB Fastighetssystem AB. The Group's tax expense (both income tax and deferred tax) for the period totalled SEK -3.3 m (-5.3). ACQUISITIONS, DIVESTMENTS AND INVESTMENTS Hufvudstaden acquired the World Trade Center Building in Stockholm on January 1. The rentable space in the building is around 45,000 square metres, plus garage space. The total investments in properties and equipment during the period amounted to SEK 17.9 m (96.8) PROPERTY PORTFOLIO The book value of Hufvudstaden's property portfolio as of March 31, 2000 was SEK 8,540.9 m and the rentable space 487,438 square metres. The total vacancy rate on the same date was 3.0 per cent (4.1 at the year-end 1999) and the vacancy rate based on rental income was 3.1 per cent (3.7 at the year-end 1999). THE RENTAL MARKET Rents in Hufvudstaden's prioritized market areas, central Stockholm and central Gothenburg, continued to rise during the period. The demand for both office and retail premises in the most attractive positions exceeded supply. The increase in rents in Stockholm was influenced by an increase in demand. Annual rents in new leases for the most attractive locations in Stockholm, such as the Golden Triangle, were SEK 5,000 per square metre, excluding the property tax supplement. Within the same area, annual rents for retail 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 continued to rise, with a fall in the vacancy level. New leases for office premises in the most attractive locations carried annual rents of between SEK 1,500 and SEK 1,900 per square metre, excluding the property tax supplement. In the case of leases for prime site retailing premises, 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 March 31, 2000 amounted to SEK 4,804.9 m (3,637.9 at the year-end 1999). The average period of fixed interest was 22 months and the average interest rate was 5.1 per cent. Net liabilities amounted to SEK 4,685.2 m (3,563.2 at the year-end 1999). Capital tie-up structure, March 31, 2000 Maturit Volume, % y date SEK m 2000 857.9 18 2001 816.2 17 2002 1 130.3 24 2003 600.5 12 2004 900.0 19 2005 500.0 10 Total 4 804.9 100 Fixed interest structure, March 31, 2000 Maturit Volume %Averag y date , e APR, SEK m % 3 Refers entirely to Vasaterminalen AB. 2000 1 35 5.0 657.9 2001 816.2 17 5.8 2002 830.3 17 4.8 2003 600.5 12 4.4 2004 900.0 19 5.3 Total 4 100 5.1 804.9 PARENT COMPANY The Parent Company reported a net loss of SEK 6.5 m (+127.0). Liquid funds as of March 31, 2000 amounted to SEK 84.6 m (73.9 at the year-end 1999). Investments in properties and equipment during the period amounted to SEK 11.3 m (88.8). MISCELLANEOUS A fter Hufvudstaden acquired a controlling interest in AB Nordiska Kompaniet - previously NK Cityfastigheter AB (publ) - and following a public offer in 1998, Hufvudstaden commenced compulsory purchase proceedings to acquire the minority shareholdings. An arbitration tribunal subsequently granted Hufvudstaden so-called advance access to all outstanding minority shareholdings in AB Nordiska Kompaniet. In accordance with a decision taken at the Annual General Meeting, Hufvudstaden AB will request permission from the District Court to transfer SEK 1,190.2 m from restricted to non-restricted equity. SPP Pursuant to a decision by SPP, company-linked surplus funds totalling SEK 90.7 m have been allocated to the Hufvudstaden Group. These surplus funds have not been reported as an asset in the balance sheet. CALENDAR Interim Report, August January-June 2000 11, 2000 Interim Report, October January-September 25, 2000 2000 Year-end Report, 2000 February 8, 2001 Annual Report 2000 March 2001 Information is also published on Hufvudstaden's website, www.hufvudstaden.se CONSOLIDATED INCOME STATEMENTS - SUMMARY January- January- January- SEK m March March December 2000 1999 1999 Net Sales Property management 252.9 226.3 865.5 Other operations 23.3 40.3 79.3 276.2 266.6 944.8 Operating expenses Maintenance, operation and -90.5 -68.9 -255.0 administration (1) Ground rents -9.4 -4.5 -17.7 Property tax -31.1 -16.8 -61.1 Depreciation -28.9 -35.4 -127.4 Property management -159.9 -125.6 -461.2 Other operations -18.0 -37.1 -65.5 -177.9 -162.7 -526.7 Gross profit 98.3 103.9 418.1 - of which Property 93.0 100.7 404.3 management - of which Other operations 5.3 3.2 13.8 Central administration -7.4 - 9.6 -33.0 Items affecting 0.0 317.5 361.7 comparability Operating profit 90.9 411.8 746.8 Result from participations 3.5 6.2 30.9 in associated companies Financial income and expense -58.9 - 56.7 -200.7 Profit before tax 35.5 361.3 577.0 Tax -3.3 - 5.3 -52.9 Profit for the period 32.2 356.0 524.1 (1) Including costs for 16.2 0.0 9.7 special projects CONSOLIDATED BALANCE SHEETS - SUMMARY March December SEK m 31, 31, 2000 1999 Properties 8 540.9 7 116.2 Other fixed assets 139.4 323.5 Other current assets 344.4 135.8 Total assets 9 024.7 7 575.5 Restricted equity 2 300.1 2 300.1 Non-restricted equity 898.4 1 009.8 Interest-bearing liabilities 4 804.9 3 637.9 Other liabilities (1) 1 627.7 021.3 Total equity and liabilities 9 024.7 7 575.5 (1) The payment decided at the Annual General Meeting, SEK 143.7 M has been entered as a liability. CONSOLIDATED CASH FLOW STATEMENTS - SUMMARY January- January- SEK m March December 2000 1999 Cash flow from current 126.8 425.6 operations Cash flow from investment -905.1 951.5 operations Cash flow from financing 823.3 -1 378.1 operations Cash flow for the period 45.0 -1.0 Liquid funds at the 74.7 75.7 beginning of the period Liquid funds at the period- 119.7 74.7 end KEY RATIOS March 31, March 31, Deember 2000 1999 31, 1999 Visible equity ratio, % 35.4 35.3 43.7 Equity per share, SEK 18.92 18.59 19.58 Book value of properties per 50.53 46.52 42.10 share, SEK Profit for the period per 0.19 2.11 3.10 share, SEK Number of shares at the 169 017 169 017 169 017 period-end 547 547 547 Stockholm, May 10, 2000 Ivo Stopner President DEFINITIONS Central administration. Costs for Group Management and Group staff functions, costs for maintaining the company's stock exchange listing and other costs common to the company. It should be noted that Central administration attributable to Other operations is included in the Other operations item. Equity per share. Equity in relation to the number of shares at the period-end. Floor space vacancy rate. Total vacant floor space in square metres in relation to the total rentable floor space. Golden Triangle. The central business district in Stockholm between Stureplan, Norrmalmstorg and Nybroplan, bordered by Birger Jarlsgatan, Norrlandsgatan and Hamngatan, is popularly known as the Golden Triangle. Investments. Expenses relating to planned maintenance and adaptation of premises are capitalized or expensed in accordance with tax legislation. Net liability. Interest-bearing liabilities less interest-bearing assets. Profit for the period. Profit after tax for the period. Profit for the period per share. Profit after tax for the period in relation to the number of shares at the period-end. Property tax supplement. Property tax reimbursed to the company by tenants. Rental vacancy rate. Vacant floor space at an estimated market rent in relation to the total annual rent. Visible equity ratio. Equity at the period-end in relation to total assets. Hufvudstaden AB (publ) NK 100, SE-111 77 Stockholm Visiting address: Regeringsgatan 38 Telephone: +46 8 762 90 00 Fax: +46 8 762 90 01 E-mail: info@hufvudstaden.se Website: www.hufvudstaden.se Company registration number: 556012-8240 Registered office: Stockholm ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/05/10/20000905BIT00560/bit0001.doc http://www.bit.se/bitonline/2000/05/10/20000905BIT00560/bit0002.pdf