Year-End Report 1999, Vasakronan AB

YEAR-END REPORT 1999, VASAKRONAN AB * Income after financial items, excluding property sales, increased by 34% to SEK 374 M, primarily due to lower maintenance costs. * Rental revenues rose by 13% to approximately SEK 2.4 billion. The premises market was characterized by higher rents in city center areas and a low vacancy rate. * Investments in properties and maintenance totalled SEK 1.2 billion. * Properties were acquired for SEK 1.8 billion. The largest transactions were InfraCity AB in Stockholm, acquisitions from JM and NCC in Gothenburg, and the purchase of an NCC portfolio in Jönköping. * The concentration on commercial premises continued. All housing properties acquired from Gotic in 1997 have been divested. * 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. "During the year, Vasakronan signed new leases representing an annual rent of SEK 226 M. This corresponds to 9% of the lease portfolio," Håkan Bryngelson, Vasakronan's President commented. "On average, the rent level increased by 33%." "Vasakronan's extensive restructuring process has resulted in a new customer mix. The proportion of central government authorities has declined and now amounts to 47%. There has been a marked increase in the proportion of other tenant categories to 53%." "There has been some increase in vacancies, due to the purchase of InfraCity which has a high initial vacancy rate. In the long term, Vasakronan is aiming for a structural vacancy rate of 4-5%, and this can be achieved in 2001." "There is a marked increase in rents, and we forecast that income after net financial items in 2000, excluding the sale of properties, will amount to about SEK 400 M," Håkan Bryngelson says. For further information, please contact: Håkan Bryngelson, President, Vasakronan +46-(0)8-783 21 05 Björn Lindström, Senior Vice President, Chief Financial Officer +46-(0)8- 783 21 12 Bengt Möller, Senior Vice President, Corporate Communications, Vasakronan +46-(0)8-783 21 09 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/02/23/20000223BIT00050/bit0001.doc http://www.bit.se/bitonline/2000/02/23/20000223BIT00050/bit0002.pdf