Strong income, low vacancies, large project portfolio and market value exceeding SEK 40 billion – Vasakronan Interim Report January-June 2007

• Income after tax rose to SEK 2,338 M (1,635), the best half-year result to date for Vasakronan. The increase is attributable to an unrealized increase in the value of the property portfolio and an improved operating surplus.
• The market value of the properties increased to SEK 41,243 M (35,826). The unrealized value increase for the first six months amounted to SEK 2,422 M (1,520), an increase of 6.4 (4.6)%.
• Income after financial items before realized and unrealized value changes increased to SEK 777 M (677), as a result of an improvement in the operating surplus.
• Rental revenues increased by 7% to SEK 1,432 M (1,337). The rent level for new and renegotiated leases increased by 5% (4).
• The vacancy rate continued to decline, to 5% (7) of rental revenue.
• The project portfolio continued to grow, to SEK 3,515 M (1,984), and investments rose to SEK 603 M (437).
• The outlook for 2007 is unchanged. Profit after net financial items, before changes in value, is expected to rise to approximately SEK 1,450 M (1,333).

“The first six months of 2007 were the strongest ever for Vasakronan,” comments Håkan Bryngelson, President and CEO of Vasakronan. “Rental revenues increased, vacancies continued to decline and operating costs were reduced. The market value of the property portfolio increased by 6.4 percent to SEK 41.2 billion. Vasakronan also has a strong project portfolio with low vacancies.
“The Swedish economy continues to grow and the strongest trends are being shown in the major urban regions where Vasakronan has its operations.”

The full report in english will be published later on today.

Analyst meeting
Friday, July 13, 11 a.m. at Karlavägen 108, 13th floor.
Notifications to: Bengt Möller, bengt.moller@vasakronan.se. Tel: +46-(0)8-783 21 09.