Kungsleden terminates old interest swaps and restructures its interest risk

To improve forthcoming cash flows and increase transparency in the future
property management earnings, Kungsleden has terminated old and expensive
interest swaps with a high fixed interest rate for a face value of SEK 2.8 bn.
At the same time Kungsleden has, with current interest rates, entered into new
interest swaps with a notional of SEK 3.9 bn with the aim to extend its fixed
interest term.

As a result, Kungsleden’s average interest rate (the cost for loans and interest
swaps in relation to the loan volume) will decrease to 3.2 percent*. At the end
of the first quarter of 2015 the average interest rate amounted to 5.1 percent.

As of 30 June 2015, it is expected that Kungsleden will have an average fixed
interest term, including interest rate swap portfolios, of 2.5 years. The
hedging level (the percentage of the loan which has a fixed interest rate of
more than one year, including interest swaps) will amount to approximately 50
per cent of the actual loan volume of SEK 13 bn.

Kungsleden’s plan to expand the property portfolio will not be affected. After
discharging the old interest swaps Kungsleden will have a remaining ability to
acquire properties for a value of SEK 4.5 bn.

*As of the current situation with consideration taken to the expiration of old
swaps with a notional value of SEK 1.4 bn during Q2 and Q3, 2015.
For more information, please contact:

Anders Kvist, Deputy CEO and CFO Kungsleden | +46 8 503 052 11|
anders.kvist@kungsleden.se

Fredrik Sandell, Head of funding | +46 8 503 052 95 |
fredrik.sandell@kungsleden.

www.kungsleden.se
Detta pressmeddelande finns tillgängligt på svenska på
www.kungsleden.se/pressmeddelanden

Kungsleden AB (publ) discloses the information in this press release according
to the Swedish Securities Markets Act and/or the Swedish Financial Trading Act.
The information was provided for public release on 11 June 2015 at 08:00 a.m.

Kungsleden’s business concept is to own, manage and improve commercial
properties in growth regions in Sweden and to deliver attractive total returns.
Kungsleden’s strategies to create value are based on meeting the premises
requirements of customers by managing, improving and developing properties and
planning consents and by optimising the company’s property portfolio. Kungsleden
has been quoted on NASDAQ Stockholm since 1999.