Kungsleden presents the third quarter 2011

Welcome to Kungsleden

Third Quarter 2011

Kungsleden in brief

Owns and manages properties with high and stable long-term returns

Returns more important than property type and location

Returns can not be judged without considering the property’s risk levels

639 (592) properties, of which 306 part-owned via Hemsö,

reported at SEK 26.5 (21.5) bn as of 30 September 2011

Commercial properties 52 per cent (45)

Public properties 42 per cent (48)

Modular buildings 6 per cent (7)

21,133 shareholders. 39 per cent of shares held by private individuals

and just over one-third by foreign shareholders.

Ten largest shareholders control 22.2 per cent of capital and votes

Profit for calculating dividends

2011 2010

SEK m Jan-Sep Jan-Sep

Gross profit 1,386 1,160

Sales and administration costs -238 -191

Net financial position -650 -555

Sub-total 498 414

Realised items

Trading net on sale 34 12

Realised value changes, properties 11 2

Realised value changes, financial instruments -31 -4

Sub-total 14 10

Taxes payable -50 -45

Profit for calculating dividends 462 379

Third quarter in brief

■ Gross profit increases 34 per cent to SEK 548 m, which is the best quarterly

figure to date. The primary explanation is growth of the portfolio.

■ Net sales up by 36 per cent to SEK 766 m

■ Module sales rise 47 per cent to SEK 70 m

■ Loss after tax of SEK -173 (180) m, explained by negative values of

financial instruments after falling market interest rates

■ Profit for calculating dividends of SEK 239 (160) m, with the acquisition from

NRP being a strong contributor to the increase

■ Three-year lease signed with home furnishings expo Hemmamässan on

15,000 sq.m. in Slagsta Strand, south of Stockholm

■ Five properties purchased for a value of SEK 306 m

■ One property sold for a value of SEK 133 m

Transactions completed after the third quarter

Two properties acquired at the executive auction of Kefren’s properties

Commercial property in Växjö, southern Sweden

SEK 132 m at an initial property yield of 7.7 per cent

15,000 sq.m. leasable area

The two largest tenants are Växjö independent senior high school and civil

engineer Svevia AB, which together, represent over half of rental value.

Commercial property in Uddevalla, north of Gothenburg

SEK 20 m at a property yield of 8.8 per cent

3,900 sq.m. leasable area

Current market conditions

Kungsleden’s lettings market

Lettings market remains positive in a resilient portfolio

Slight decrease in vacancies

Financial market

Continued turmoil on the international debt market

Primarily difficult on new lending

Swedish transaction market

Transaction volumes increased by 16 per cent to SEK 22 bn in the third

quarter

Kefren property auction attracts high interest, indicating a liquid market

despite debt turmoil

The property asset class is an attractive investment alternative in a low

interest environment

The property portfolio, 2001 – Q3 2011

Kungsleden’s properties—by type

Third quarter 2011 in figures

Income Statement

SEK m

2011

Jan-Sep

2010

Jan-Sep

Rental revenues 1,900 1,577

Sales revenues, modular buildings 214 128

Net sales 2,114 1,705


Trading net 34 12



Unrealised value changes -77 -20

Profit before tax 455 405

Tax -120 -88

Profit after tax for the period 335 317

Income Statement

SEK m

2011

Jan-Sep

2010

Jan-Sep



Net sales 2,114 1,705


Trading net 34 12





Tax -120 -88


Rental revenues

increased by 20 per

cent.

Growth primarily

explained by the

purchase from NR

Nordic & Russia

Properties

Income Statement

SEK m

2011

Jan-Sep

2010

Jan-Sep



Net sales 2,114 1,705


Trading net 34 12





Tax -120 -88


Sales revenues

increase by 67 per cent

due to more enquiries

for modules

Income Statement

SEK m

2011

Jan-Sep

2010

Jan-Sep



Net sales 2,114 1,705


Trading net 34 12





Tax -120 -88


Gross profit up by 19

per cent due to

acquisitions

Income Statement

SEK m

2011

Jan-Sep

2010

Jan-Sep



Net sales 2,114 1,705


Trading net 34 12





Tax -120 -88


Trading net rises to SEK

34 m. There were few

sales and the value

changes of SEK 11 m

were realised through

these sales

Income Statement

SEK m

2011

Jan-Sep

2010

Jan-Sep



Net sales 2,114 1,705


Trading net 34 12





Tax -120 -88


Administration costs

increased because

Hemsö is now independent

Larger property portfolio

Higher transaction activity

Relocation of Kungsleden’s

and Hemsö’s offices

Income Statement

SEK m

2011

Jan-Sep

2010

Jan-Sep



Net sales 2,114 1,705


Trading net 34 12





Tax -120 -88


Higher loan volume

after acquisitions in the

year

Newly raised bond loan

has higher interest

margin than bank

borrowings

Income Statement

SEK m

2011

Jan-Sep

2010

Jan-Sep



Net sales 2,114 1,705


Trading net 34 12





Tax -120 -88


Negative value change

on financial instruments

due to falling long yields

Positive value change

on properties

corresponding to 2 per

cent of book value

Income Statement

SEK m

2011

Jan-Sep

2010

Jan-Sep



Net sales 2,114 1,705


Trading net 34 12





Tax -120 -88


Corresponds to 26.3

per cent of profit before

tax

Income Statement

SEK m

2011

Jan-Sep

2010

Jan-Sep



Net sales 2,114 1,705


Trading net 34 12





Tax -120 -88


Higher profits mainly

due to a larger property

portfolio

Statement of Financial Position

SEK m 2011 2010

Assets 30 Sep 31 Dec

Goodwill 201 201

Properties 26,455 21,501

Receivables, etc. 1,319 2,045

Cash and cash equivalents 872 747

Total assets 28,847 24,494

Equity and liabilities

Equity 7,426 7,357

Interest-bearing liabilities 18,048 13,949

Non-interest-bearing liabilities 3,373 3,188

Total equity and liabilities 28,847 24,494

Maturity structure, interest fixings

As of 30 September 2011

Loan, SEK

m

Interest

derivatives,

SEK m

Ave.

interest, %

Average fixed interest

term, years

2011 18,064 57 3.8

2012 400 3.7

2013 2,000 3.9

2014 2,400 3.8

2015 2,600 4.1

2016 850 3.3

2017 700 3.7

2018 3,850 4.1

2019 1,400 3.1

2020 1,200 3.4

2021 800 3.3

Total derivatives 16,257 4.8

Total loans 18,064 4.9

Market value of loans and

derivatives 1,165

Total 19,229

Maturity structure, credits (including un-utilised

credit facilities)

As of 30 September 2011

Utilised

credits, SEK

m

Un-utilised

credits, SEK m

Total

credits, SEK m

2011 738 310 1,048

2012 8,587 2,900 11,487

2013 2,741 - 2,741

2014 2,455 - 2,455

2015 999 - 999

2016 2,054 - 2,054

2017 - - -

2018 311 - 311

2019 179 179

Total 18,064 3,210 21,274

Average conversion term, years 2.0 1.7

Equity ratio

30 Sep 11

26%

31 Dec 10

30%

30 Sep 10

28%

Loan to value ratio 68% 65% 64%

Underlying profits, 2001 – Q3 2011

The share 2010 to late-October 2011

Total yield 2002 to late-October 2011

Ten largest shareholders (per cent of votes &

capital)■ Pensioenfonds PGGM (NL) 3.4

■ Nordea fonder 3.0

■ SHB fonder 2.7

■ Länsförsäkringar fonder 2.4

■ Olle Florén and companies 2.3

■ Norwegian Government 2.2

■ Danske Invest fonder (Sweden) 1.8

■ AP4 1.8

■ SEB Fonder 1.3

■ AP2 1.3

22.2Source: SIS Ägarservice 30 Sep 2011

Outlook for 2011

■ Despite debt turmoil in the surrounding world, good conditions in Sweden

with a fairly strong domestic economy

■ Limited vacancies and stable underlying cash flows

■ Focus on customer care, cash flow and enhancing the portfolio

■ Continue to investigate alternative funding sources

■ Active in the transaction market and search for attractive opportunities

■ Estimate of profit for calculating dividends of SEK 650 m reiterated

Any questions?

Kungsleden presents the third quarter 2011

Real Estate

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