Interim report January-September 2004
Interim report January-September 2004 "The employment trend in Sweden remains weak and is not expected to recover until the latter part of 2005", says Håkan Bryngelson, President of Vasakronan. "The rental market is affected adversely by the employment trend. At the same time, Sweden is currently in a period of economic upturn, with continued strong GDP growth of approximately 3.5% in 2004." "The rental market in Stockholm is weak, although vacancies are no longer rising. The market is showing a clear tendency toward differentiating pricing between modern and older premises. Interest in premises has risen slightly in Solna and Kista. In Uppsala, vacancies have increased." "Rents in the Göteborg market are declining slightly. Vacancies in Göteborg city center are expected to increase by about 2% during the next six months." "The rental market in Malmö and Lund was characterized by cautious optimism in 2004. The competitive situation has tightened, with rising demand and significant interest in premises in central parts of Malmö and Lund." · Rental revenues declined to SEK 2,029 M (2,247), mainly as a result of property sales. The rental decline for new and renegotiated leases was 5% (+3). The vacancy rate rose to 13% (10) of rental revenues, primarily due to the acquisition of Kista Science Tower. In August, Vasakronan acquired NCC's remaining shares in Kista Science Tower, based on a market value of SEK 1,208 M. · Income after financial items amounted to SEK 599 M (528). Excluding capital gains, writedowns and reversal of reserves for writedowns pertaining to Kista Science Tower, income amounted to SEK 402 M (508). · The outlook for 2004 remains unchanged. Income after financial items, before capital gains, writedowns and reversal of reserves for writedowns, is forecast to amount to approximately SEK 350 M (585). A complete version of the interim report is available at www.vasakronan.se For further information please contact: Håkan Bryngelson, President and CEO +46 8 783 21 05 Björn Lindström, Chief Financial Officer +46 8 783 21 12 Bengt Möller, Senior Vice President Corporate Communications +46 8 783 21 09 Real offices for real people. Vasakronan AB is one of the leading real estate companies in Sweden. Vasakronan is the largest supplier of commercial premises, primarily office properties, with locations in Stockholm, Göteborg, Malmö, Lund and Uppsala. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/10/27/20041027BIT20740/wkr0001.pdf Vasakronan Interim report January-September 2004