Interim Report, January – June 2005

Rental revenues amounted to SEK 1,355 M (1,364). The vacancy rate rose compared to last year to 11% (10) in terms of rental revenues, primarily as a result of the acquisition of Kista Science Tower. Compared with the preceding quarter, the vacancy rate was down 2 percentage points due to a large proportion of new leasing. Income after financial items increased to SEK 543 M (473), primarily as a result of an improvement in net financial items. The market value of the properties increased to SEK 33,249 M (31,620). The realized increase in value amounted to SEK 3 M (4), while the unrealized increase in value amounted to SEK 157 M (-). Income after tax including realized and unrealized increases in value grew to SEK 500 M (342). The outlook for 2005 has improved as a result of lower interest rates on loans. The forecast is that income after financial items, before realized and unrealized increases in value of properties, will increase to approximately SEK 950 M, compared with the preceding forecast of SEK 875 M (840). ” During the first half of 2005 Vasakronan has negotiated new office contracts of more than 90 000 square meters,” comments Håkan Bryngelson, President of Vasakronan. ”Contracts corresponding to a value of SEK 143 M (255) in annual rents were negotiated and renegotiated during the first six months and average rents rose by 1% (declined: 4).” ”The largest leases were signed with the National Courts Administration in the Bremen property in Stockholm’s Gärdet district (20,355 m2), which represents Vasakronan’s single largest lease, the National Food Administration in Uppsala (12,902 m2), the Swedish Work Environment Authority in Solna (11,255 m2), the National Courts Administration in Malmö (6,652 m2), the National Courts Administration in Solna (5,668 m2), the National Federation of Swedish Insurance Companies in Östermalm in Stockholm (4,130 m2), Folksam in Malmö (3,452 m2), Nordic Museum in Östermalm in Stockholm (2,351 m2), Exel Logistics Management at InfraCity in Upplands Väsby (2,215 m2) and Aveva in Malmö (2,200 m2). ”The Swedish economy grew marginally during the first half of 2005. The commercial rental market was characterized by major vacancies and relatively little leasing. The property market is strong, due to substantial foreign interest in Swedish property.” The entire report will be available at www.vasakronan.se under the heading In English. Analyst meeting Tuesday, July 12, 2005, 11 am, Vasakronan corporate office, Karlavägen 108 13th floor, Stockholm. For further information, contact: Håkan Bryngelson, President and CEO +46 8 783 21 05 Björn Lindström, Chief Financial Officer +46 8 783 21 12 Bengt Möller, Senior VP Corporate Communications +46 8 783 21 09, +46 70 593 81 71