Vasakronan Year End Report 2007

Best result so far for Vasakronan. Property portfolio increased by SEK 7 billion to over SEK 45 billion.

• Income after tax rose to SEK 4,650 M (3,409). The increase was attributable to unrealized increase in the value of the property portfolio, improved operating surplus and net financial items.
• The market value of the properties increased to SEK 45,236 M (38,122). The unrealized increase in value amounted to SEK 4,750 M (3,253), an increase of 12.5% (9.9). The increase was mainly attributable to rising market rents.
• Income after financial items before value changes increased to SEK 1,605 M (1,333) as a result of improvements in the operating surplus and net financial items.
• Income after financial items for the fourth quarter of 2007 increased to SEK 441 M, compared with SEK 223 M for the fourth quarter of 2006.
• Rental revenues increased to SEK 2,847 M (2,681). Contracted annual rent increased to SEK 3,324 M and exceeded the reported annual rent of SEK 2,874 M by 16%.
• The vacancy rate declined to 4% (7) of rental revenues.
• The project portfolio increased to SEK 3,145 M (2,841) and investments increased to SEK 1,667 M (1,074).
• The dividend is proposed in an amount of SEK 791 M (698).
• The outlook for 2008 is that profit after net financial items, before value changes and excluding gains from the sale of building rights, is expected to amount to approximately SEK 1,500 M (1,477)

- In 2007 Vasakronan generated its strongest result so far as a result of a long-term strategy to create an attractive property portfolio in Sweden’s five largest cities with satisfied customers and a strong corporate brand, comments Håkan Bryngelson, president and CEO of Vasakronan.
- Vasakronan’s rental revenues have increased, vacancies are down at 4 % and income after financial items before value changes increased by 20 % to SEK 1 605 M.
- The market value of the property portfolio has increased with SEK 7 billion to SEK 45 billion.

Analyst meeting
Thursday January 31st 2008 at 11.45 on Operaterassen with Financial Hearings. Moderator is Hans Derninger, Deutsche Bank. Register participation with; hearings@financialhearings.com. It will also be possible to follow the presentation directly on www.financialhearings.com - by teleconference, commencing at 11.45 CET
+46 (0)8 5352 6458 Sweden +44 (0)20 7806 1966 UK Toll. Questions regarding the webcast or teleconference should be addressed to Financial Hearings Per-Erik Holmström at +46 8 411 43 80 or +46 (0) 70 770 45 81.