Kungsleden extends the fixed interest term of its borrowings and terminates old interest swaps

To secure future cash flows and profits from property management, Kungsleden has
increased the fixed interest term of its borrowings by entering into new
interest rate swaps. In parallel, Kungsleden has terminated old and expensive
interest rate swaps with a high fixed interest rate.


Kungsleden AB (publ) has, at current interest rates, entered into new interest
rate swaps with a notional amount of SEK 6.6 bn with the aim to extend the fixed
interest term of its borrowings. At the same time, old interest rate swaps with
a notional amount of SEK 1 bn have been terminated and other old swaps have been
extended. With the new interest rate swap portfolio, 70 per cent of total
borrowings will have a fixed interest term of more than one year. The average
fixed interest term for borrowings and interest rate swaps is estimated to be
approximately 3.8 years by December 31st, 2015.

Due to the hedging measures, Kungsleden´s interest rate risk has decreased. If
STIBOR 90 days were to increase by 1 percentage point on all maturities, the
anticipated impact on net financial items would currently be approximately SEK 5
million over the next 12 months.

After the hedging operations and the debt raised to finance the recent property
acquisitions in Gärdet/Frihamnen, Kungsleden´s average interest rate (the cost
for loans and interest swaps in relation to the loan volume) is expected to
decrease from 3.0 per cent as of September 30th to 2.8 per cent pro forma as of
December 31st, 2015


After having paid SEK 1.3 billion in tax in relation to the tax verdicts made
public on December 16th and the termination of old interest rate swaps for a
cash amount of SEK 282 million, Kungsleden will have cash and unutilized credit
facilities of SEK 1 bn.

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For more information, please contact:

Anders Kvist, Deputy CEO and CFO of Kungsleden | 46 (0)8 503 052 11 |
anders.kvist@kungsleden.se
Fredrik Sandell, Treasurer | +46 8 503 052 95 | fredrik.sandell@kungsleden.se

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 22 December 2015 at 12:00
p.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.