Welcome to Kungsleden

First Quarter 2011

Kungsleden in brief

■ Owns and manages properties generating high and stable long-term

returns

– Returns more important than property type and location

– Returns cannot be judged without considering risk levels

■ 629 properties, of which 298 are part-owned via Hemsö, reported at

SEK 25.5 (21.5) bn as of 31 March 2011

– Commercial properties 52% (45)

– Public properties 42% (48)

– Modular buildings 6% (7)

■ 22,400 shareholders. 36% of shares held by private individuals and

approximately one-third by foreign shareholders.

– Ten largest shareholders control 19.4% of capital and votes

Profit for calculating dividends

2011 2010

SEK m Jan-Mar Jan-Mar

Gross profit 354 355

Sales and administration costs -72 -66

Net financial position -188 -176

Sub-total 94 113

Realised items

Trading net on sale 3 3

Realised value changes, properties 0 25

Realised value changes, financial instruments -9 -

Sub-total -6 28

Taxes payable -10 -15

Profit for calculating dividends 78 126

First quarter in brief

■ Net sales increase by 5% to SEK 601 m.

■ Gross profit in line with the previous year after a severe winter.

■ Positive value change on properties and financial instruments of

SEK 455 m.

■ Profit after tax increases to SEK 406 (58) m.

■ A strong quarter for transactions. Kungsleden purchased 38

properties for approximately SEK 3.8 bn at a property yield of 9.9%.

36 of these properties were purchased from Nordic & Russia

Properties, with completion on 31 March 2011.

■ Kungsleden was recognised as Sweden’s third-best workplace and

the best property company in the Great Place to Work survey.

Current market conditions

■ Kungsleden’s lettings market

– Increasing new lettings

– Vacancy levels stabilising, likely to reduce

– Slight increase in rent levels with existing tenants

■ Financial market

– Continued strong capital flows to the property sector

– New foreign mutual funds investing in properties

– Bank deal appetites increasing

■ Transaction market

– Extremely strong fourth quarter 2011, good start to 2011

– High competition over properties

Property portfolio

Our properties—by type

Kungsleden 2011 Q1 in figures

Income Statement

SEK m

2011

Jan-Mar

2010 Jan-

Mar

Rental revenues 533 537

Sales revenues, modular buildings 68 34

Net sales 601 571

Gross profit 354 355

Trading net 3 3

Sales and administration costs –72 –66

Net financial position -188 -176

Unrealised value changes 455 –80

Profit before tax 551 36

Tax –144 22

Profit after tax for the period 406 58

Income Statement

SEK m

2011

Jan-Mar

2010 Jan-

Mar

Rental revenues 533 537

Sales revenues, modular buildings 68 34

Net sales 601 571

Gross profit 354 355

Trading net 3 3

Sales and administration costs –72 –66

Net financial position -188 -176

Unrealised value changes 455 –80

Profit before tax 551 36

Tax –144 22

Profit after tax for the period 406 58

• Rental revenue

comparable to

previous year.

Income Statement

SEK m

2011

Jan-Mar

2010

Jan-Mar

Rental revenues 533 537

Sales revenues, modular buildings 68 34

Net sales 601 571

Gross profit 354 355

Trading net 3 3

Sales and administration costs –72 –66

Net financial position -188 -176

Unrealised value changes 455 –80

Profit before tax 551 36

Tax –144 22

Profit after tax for the period 406 58

• Sales revenues

double thanks to

greater interest in

modules

Income Statement

SEK m

2011

Jan-Mar

2010

Jan-Mar

Rental revenues 533 537

Sales revenues, modular buildings 68 34

Net sales 601 571

Gross profit 354 355

Trading net 3 3

Sales and administration costs –72 –66

Net financial position -188 -176

Unrealised value changes 455 –80

Profit before tax 551 36

Tax –144 22

Profit after tax for the period 406 58

• Gross profit

comparable to

previous year after

another severe

winter.

Income Statement

SEK m

2011

Jan-Mar

2010

Jan-Mar

Rental revenues 533 537

Sales revenues, modular buildings 68 34

Net sales 601 571

Gross profit 354 355

Trading net 3 3

Sales and administration costs –72 –66

Net financial position -188 -176

Unrealised value changes 455 –80

Profit before tax 551 36

Tax –144 22

Profit after tax for the period 406 58

• Few sales in the

period.

Income Statement

SEK m

2011

Jan-Mar

2010

Jan-Mar

Rental revenues 533 537

Sales revenues, modular buildings 68 34

Net sales 601 571

Gross profit 354 355

Trading net 3 3

Sales and administration costs –72 –66

Net financial position -188 -176

Unrealised value changes 455 –80

Profit before tax 551 36

Tax –144 22

Profit after tax for the period 406 58

• Higher administration costs

mainly because of the split of

Kungsleden and Hemsö into

two separate organisations.

Income Statement

SEK m

2011

Jan-Mar

2010

Jan-Mar

Rental revenues 533 537

Sales revenues, modular buildings 68 34

Net sales 601 571

Gross profit 354 355

Trading net 3 3

Sales and administration costs –72 –66

Net financial position -188 -176

Unrealised value changes 455 –80

Profit before tax 551 36

Tax –144 22

Profit after tax for the period 406 58

• Negative change

primarily explained by

newly arranged bond

loans with higher

interest margins than

bank loans and

slightly higher loan

volume.

Income Statement

SEK m

2011

Jan-Mar

2010

Jan-Mar

Rental revenues 533 537

Sales revenues, modular buildings 68 34

Net sales 601 571

Gross profit 354 355

Trading net 3 3

Sales and administration costs –72 –66

Net financial position -188 -176

Unrealised value changes 455 –80

Profit before tax 551 36

Tax –144 22

Profit after tax for the period 406 58

• Positive value change

mainly on public

properties

corresponding to 1%

of book value.

• Positive value change

on financial

instruments resulting

from rising long

yields.

Income Statement

SEK m

2011

Jan-Mar

2010

Jan-Mar

Rental revenues 533 537

Sales revenues, modular buildings 68 34

Net sales 601 571

Gross profit 354 355

Trading net 3 3

Sales and administration costs –72 –66

Net financial position -188 -176

Unrealised value changes 455 –80

Profit before tax 551 36

Tax –144 22

Profit after tax for the period 406 58

• Corresponds to

26.3% of profit before

tax.

Income Statement

SEK m

2011

Jan-Mar

2010

Jan-Mar

Rental revenues 533 537

Sales revenues, modular buildings 68 34

Net sales 601 571

Gross profit 354 355

Trading net 3 3

Sales and administration costs –72 –66

Net financial position -188 -176

Unrealised value changes 455 –80

Profit before tax 551 36

Tax –144 22

Profit after tax for the period 406 58

• The higher figure is

mainly due to

unrealised value

changes on

properties and

financial instruments.

Statement of Financial Position

SEK m 2011 2010

Assets 31 Mar 31 Dec

Goodwill 201 201

Properties 25,540 21,501

Receivables, etc. 1,762 2,045

Cash and cash equivalents 1,322 747

Total assets 28,825 24,494

Equity and liabilities

Equity 7,765 7,357

Interest-bearing liabilities 17,826 13,949

Non-interest-bearing liabilities 3,234 3,188

Total equity and liabilities 28,825 24,494

Maturity structure, interest fixings

As of 31 March 2011

Loan, SEK

m

Interest

derivatives,

SEK m

Ave.

interest, %

Average fixed interest

term, years

2011 17,853 251 3.8

2012 700 3.7

2013 3,100 4.1

2014 2,100 4.2

2015 3,600 4.2

2016 1,000 4.3

2017 300 4.5

2018 3,550 4.3

Total derivatives 14,601 3.7

Total loans 17,853 4.9

Market value of loans and

derivatives 438

Total 18,291

Maturity structure, credits (including un-utilised

credit facilities)

As of 31 March 2011

Utilised

credits, SEK

m

Un-utilised

credits, SEK m

Total

credits, SEK m

2011 2,201 454 2,655

2012 8,286 3,000 11,286

2013 2,152 0 2,152

2014 1,523 0 1,523

2015 999 0 999

2016 2,075 0 2,075

2017 0 0 0

2018 617 0 617

Total 17,853 3,454 21,307

Average conversion term, years 2.3 2.1

Equity ratio

31 Dec 10

27%

30 Jun 10

30%

31 Dec 09

30%

Mortgage ratio 70 65 66

Underlying profits, 2001- 2011 Q1

The share to the end of April

Total yield to first quarter 2011

Ten largest shareholders (% of votes & capital)

■ Nordea fonder 3.3

■ Länsförsäkringar fonder 2.9

■ Olle Florén and companies 2.3

■ SHB fonder 1.9

■ Pensioenfonds PGGM (NL) 1.7

■ Norwegian Government 1.7

■ AP4 1.5

■ SEB Fonder 1.5

■ Swedbank Robur Fonder 1.3

■ Black Rock fonder (USA) 1.3

19.4

Source: SIS Ägarservice

Outlook for 2011

■ A strong Swedish economy paves the way for favourable years for

property

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

■ Broadening the base of alternative funding sources

■ Kungsleden active on the transaction market and increased property

portfolio

■ Continued measures to reduce vacancy levels in a cluster of large

properties

■ Increasing rent levels

■ High employee commitment creates good prospects

■ Kungsleden at a new address

Any questions?

Any questions?