Vasakronan’s Interim Report January-September 2007 Strong income, low vacancy rate and SEK 43 billion in market value of properties

• Income after tax rose to SEK 3,494 M (2,037). The increase was 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 42,999 M (36,165). The unrealized value increase for the first nine months amounted to SEK 3,465 M (1,567), corresponding to 9.6% (4.7).
• Income after financial items before realized and unrealized value changes increased to SEK 1,164 M (1,110), as a result of an improvement in the operating surplus and financial net.
• Rental revenues increased to SEK 2,146 M (2,015). The rent level for new and renegotiated leases increased by 5% (2).
• The vacancy rate continued to decline, to 5% (7) of rental revenue.
• The project portfolio continued to grow, to SEK 3,049 M (1,808), and investments rose to SEK 1,054 M (687).
• 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).


“Vasakronan’s performance during the first nine months was very strong,” comments Håkan Bryngelson, President and CEO of Vasakronan. “The rental market has improved in the larger cities of Sweden. Rental revenues increased, vacancies declined and operating costs continued to be reduced. Vasakronan also has a strong project portfolio with low vacancies.”

“The yield requirements in Sweden’s larger cities remain at a low level. The market value of the property portfolio increased by 9.6 percent to SEK 43.0 billion.”


Analyst meeting
Thursday October 25th 2007 at 3 pm, Operaterassen, Stockholm
Notifications to: Bengt Möller, bengt.moller@vasakronan.se. Tel: +46-(0)8-783 21 09.