Interim report January – March 2014

First quarter (Jan–Mars 2014)*

• Rental income amounted to SEK 21.2 m (n.a.)
• Net operating income amounted to SEK 7.5 m (n.a.)
• Profit after tax amounted to SEK 26.2 m (n.a.)
• Earnings per share amounted to SEK 0.97 (n.a.)

*The properties were acquired on February 27, 2014

Significant events during the quarter

• On February 11 it was announced that Per-Axel Sundström was appointed CFO of D. Carnegie & Co
• On February 27 the acquisition of a real estate portfolio valued at approximately SEK 3 billion was completed
• Extra General Meeting was held on March 17, 2014
• Offering of B-shares ahead of listing on NASDAQ OMX First North was carried out between March 27 and April 8

Significant events after the quarter

• D. Carnegie & Co:s offering of shares was oversubscribed, the company is contributed SEK 600 m – trading on NASDAQ OMX First North began on April 9
• On April 16 it was announced that D. Carnegie & Co and hBS II has initiated negotiations regarding a merger of their property portfolios
• On April 28 D. Carnegie & Co acquired two properties from hSB Stockholm
• On May 12 it was announced that the entire over allotment option in conjunction with the company’s listing had been exercised – adding approximately SEK 90 m to the company

Comment from the CEO

D. Carnegie & Co – A focused residential property company with its aim set on continued growth

The first quarter of 2014 has been very eventful for D. Carnegie & Co. After a long period of hard work, the deal that gave the company a new operational direction was finalized and the start of an exciting new phase.

On February 27, we acquired a property portfolio valued at approximately SEK 3 billion from Stendörren. This report thus only include one month (March) with operational activities.

In connection with the acquisition, we became a company with a clear focus on housing and an attractive property portfolio. The sights are from the start set on acquisitions of new properties, but also the refinement of the existing portfolio and the development of interesting projects

– the three cornerstones of our business. The properties are strategically located in the so-called Million Programme areas, and demand for these homes has increased in step with the housing shortage. We feel a strong commitment to contribute to a favourable development of these areas, while we of course also see the commercial potential.

In March, we took the next step when the board approved a listing of the company’s shares on NASDAQ OMX First North, and on April 9 this year, trading began. The share issue completed in connection with the listing raised a total of SEK 690 million before transaction costs, including the overallotment option. Investor interest was very high and the offer was oversubscribed several times in the process giving us 2,700 new shareholders. We are of course grateful for this confidence shown, and as we have many exciting opportunities ahead, we are confident that we can give good returns to our shareholders.

Such a possibility has already appeared. On April 15, we signed a letter of intent to acquire approximately 9.000 apartments from a Norwegian-Swedish fund structure that, if the deal is realized, would make D. Carnegie & Co the largest listed purely residential real estate company in Sweden.

The first quarter was particularly eventful, and we look forward to an exciting continuation of the year.

ULF NILSSON

CEO of D. Carnegie & Co

For more information, please contact:

Ulf Nilsson, VD +46 (0)8 121 317 00

Per-Axel Sundström, CFO +46 (0)8 121 317 00 

About D. Carnegie & Co

D. Carnegie & Co is a real estate company that owns and develops properties and projects, with a focus on housing, in the Greater Stockholm area and other growth areas. The property portfolio is valued at approximately SEK 3 billion and consists of about 280,000 square meter of lettable area. The company manages the portfolio under the brand name Stendörren and has a proven model, Bosystem™, for gradual and efficient renovation of the properties. D. Carnegie & Co is, since 2014, listed on NASDAQ OMX First North. The company's Certified Adviser is G&W Fondkommission. www.dcarnegie.se