Interim Report January - June 2000

Interim Report January - June 2000, VASAKRONAN AB * Rental revenues increased by 12 % and operating surplus rose by 13 %. * Unchanged income after net financial items due to an increase in net financial items. * Income after financial items amounted to SEK 256 M (251). * Rental revenues rose by 12% to SEK 1 271 M (1 136). The demand for rented premises is very strong. * Investments amounted to SEK 1 374 M (655), of which property acquisitions accounted for SEK 826 M (236) and investments in properties represented SEK 548 M (419). Property divestments amounted to SEK 192 M (61), with a capital gain of SEK 43 M (8). * The proportion of central government authorities has declined and now amounts to 45%. There has been a marked increase in the proportion of other tenant categories to 55%." * The outlook for 2000 is that income after net financial items for the existing portfolio, prior to the gain on property sales, will amount to approximately SEK 400 M. "Vasakronan has a project portfolio of investments amounting to SEK 2,5 billion. Most of the property projects is in Stockholm, but major projects is under way also in Gothenburg, Malmö, Växjö, Linköping and Luleå," Håkan Bryngelson, Vasakronan's President commented." "Vasakronan continues expand through acquisitions of properties. During the second quarter an exchange transaction with Skanska took place in April, and Vasakronan acquired a property in Lund from Ericsson i June." "Rental revenues increased by 12 % during the first half of the year. Leases corresponding to annual rents of SEK 114 M were renegotiated during, with an increase of 42 % in rents." "The outlook for the full year is an income of SEK 400 M. The strong development of the operating surplus has been offset by higher financial costs as a result of property acquisitions, investments and dividends," Håkan Bryngelson says. For further information, please contact: Håkan Bryngelson, President, Vasakronan +46-(0)8-783 21 05 Björn Lindström, Senior Vice President, Chief +46-(0)8-783 21 12 Financial Officer Bengt Möller, Senior Vice President, Corporate Communications, Vasakronan +46-(0)8-783 21 09 +46-(0)70-593 91 71 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/07/14/20000714BIT00150/bit0001.doc http://www.bit.se/bitonline/2000/07/14/20000714BIT00150/bit0002.pdf The Full Report http://www.bit.se/bitonline/2000/07/14/20000714BIT00150/bit0003.pdf