YEAR-END REPORT 2003 VASAKRONAN AB
YEAR-END REPORT 2003 VASAKRONAN AB · Income after financial items totaled SEK 585 M (617), excluding capital gains of SEK 587 M, write-downs of properties and participations in associated companies of SEK 1,135 M. Income after financial items amounted to SEK 37 M (601). · Rental revenues amounted to SEK 2,961 M (2,899). The rental increase for new and renegotiated leases was 4% (48). · Economic downturn generated lower rent levels and increased vacancies. The vacancy rate rose to 10% (7) of rental revenues. · The market value of the properties amounted to SEK 31.4 billion (34.1). The value decline for comparable portfolios was 2%. Write-down of properties was made in an amount of SEK 712 M. · The outlook for 2004 is that income after financial items, before capital gains and possible write-downs, will amount to approximately SEK 350 M (585). · The Board of Directors is proposing a dividend of SEK 9 M (216) to the Annual General Meeting. "The forecast was surpassed despite more severe market conditions," comments Håkan Bryngelson, President of Vasakronan. "The weak economy had a negative impact on demand for premises, primarily in Stockholm, while the trend in Göteborg, Malmö, Lund and Uppsala was more stable." "The market value of the property increased in Göteborg, Malmö and Lund and declined in the Stockholm region. " "It is projected that the business climate will improve during 2004, although at a slow pace. Even if economic growth again increases, there will be a lag until 2005 at the earliest before any apparent effects impact on demand in the rental market. There are many indications that 2004 will be a weak year for the real estate industry at the operating income level." The Year-end Report is published at www.vasakronan.com. For further information, 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/2004/02/02/20040202BIT20680/wkr0006.pdf YEAR-END REPORT 2003 VASAKRONAN AB