Kungsleden’s third quarter: Operating net remains strong

• Profit before tax was SEK 1,898 (1,057) m and net profit was SEK 1,918 (1,028) m, equivalent to SEK 14.10 (8.20) per share.
• Rental revenues and operating net increased by 43 and 28 per cent respectively to SEK 1,801 (1,258) m and SEK 1,163 (911) m respectively.
• In the interim period, 204 properties were divested for SEK 5,448 m generating profits of SEK 303 m and cash flow of SEK 965 m; 77 properties were acquired for SEK 2,510 m.
• Profit for calculating dividends for the period amounted to SEK 1,366 m. Kungsleden is retaining its forecast for the financial year 2006 of profit for calculating dividends of SEK 2,900 m.

Commenting, Kungsleden’s Chief Executive Thomas Erséus, said: “The property market remains robust. Property prices have increased so far this year, benefiting Kungsleden’s property holdings. Year to date, value changes in our existing holding are over SEK 900 m, while property trading has generated an additional net of SEK 300 m-plus, implying total value changes of approximately 5 per cent based on property values at the last year-end. Kungsleden’s strategy for risk-adjusted returns has enabled the divestment of properties yielding 5.7 per cent in terms of sales prices, while we have made acquisitions with property yields of 8.0 per cent.”