INTERIM REPORT JANUARY-SEPTEMBER 2001 SPONDA'S PERFORMANCE REMAINS POSITIVE

Sponda's result in 2001 will be better than one year earlier. Sponda's result in 2002 is expected to reach the same level as in 2001 or to be even better. Leasing activities in 2002 are expected to show the same or better performance than in 2001.Sponda Group's operating profit was 57.7 MEUR, i.e. an increase of 15.4 %, compared to the first nine months of 2000. The pre-tax profit was 30.5 MEUR, i.e. an increase of 11.7 %. Earnings per share totalled 0.30 EUR (0.26), 15.4 % higher than EPS in same period last year.

Result
Sponda Group recorded an operating profit of 57.7 MEUR (50.0) between January and September 2001. The profit before appropriations, extraordinary items, provisions and taxes was 30.5 MEUR (27.3). The profit after taxes and minority interest was 24.2 MEUR (20.2). Sponda's 1-9/2001 net sales amounted to 90.1 MEUR (78.9), an increase of 14.2 % on the same period last year.

Financing
Interest-bearing net debt totalled 690.6 MEUR (31 December 2000: 654.8 MEUR) and the equity ratio was 41.2 % (31 December 2000: 41.6 %). The average maturity of Sponda's credit lines was 3.5 years, the average interest rate was 5.1 % and the average interest period was 2.2 years.
Sponda's property portfolio had a book value of 1,182.7 MEUR. The balance sheet on 30 September 2001 totalled 1,199.3 MEUR (31.12.2000: 1,185.1 MEUR). Shareholders' equity per share was 6.03 EUR (31 December 2000: 5.97 EUR).

Tenant improvements
Sponda's expenditure on property maintenance and quality improvements during the period, as well as capitalized tenant improvements, i.e. renovations required under leasing agreements, totalled 10.5 MEUR.

Business conditions
The Finnish economy continued to slow down. Economic forecasts have deteriorated. GDP forecasts have been reduced to a current level of 0.5-1.5 %. Inflation is expected to remain at below 3 %.

Catella Real Estate Consulting Ltd's autumn market survey reports that the volume of new business premises under construction has fallen significantly. The number of new projects will decline clearly at the end of the year and early next year when current projects are complete. The vacancy rate of business premises in the Helsinki Metropolitan Area has risen but it remains extremely low.

Leasing activities
Sponda's main operating arena focuses on four business areas: Helsinki Business District (HBD), Helsinki Metropolitan Area, Itäkeskus, and Logistics Properties.

Net operating income from Sponda's properties totalled 70.3 MEUR (59.7), of which 43.3 % was derived from Helsinki CBD, 11.9 % from Helsinki Metropolitan Area, 19.7 % from the Itäkeskus Shopping Mall, 14.7 % from Logistics Properties, and 10.4 % from the rest of Finland. The economic occupancy rate of Sponda's entire property portfolio at the end of September was 95.5 % (97.6 %).
On 30 September 2001 the economic occupancy rate of Sponda's properties in Helsinki BD was 97.3 % and net operating income totalled 30.4 MEUR (1-9/2000: 25.4 MEUR). In Helsinki Metropolitan Area the economic occupancy rate was 91.6 % and net operating income was 8.3 MEUR. In the Itäkeskus Shopping Mall the economic occupancy rate was 97.6 % and net operating income was 13.9 MEUR (13.5). In Logistics Properties the economic occupancy rate was 90.0 % and net operating income was 10.4 MEUR. In Rest of Finland the economic occupancy rate was 97.2 % and net operating income was 7.3 MEUR.

Property sales
Sponda did not increase its property portfolio during the third quarter. The logistics premises in Humppila and Kauniainen and at Ormuspellontie in Helsinki were sold at the beginning of July for a total of 2.4 MEUR.

Itäkeskus shopping mall extension inaugurated on 4 October 2001

The Itäkeskus Shopping Mall's new extension and renovated commercial premises, altogether roughly 13,000 m2, were opened to the public on 4 October 2001. The extension added 40 new business enterprises to the 200 already operating in the Mall, and parking space was increased by 500 new parking slots. The entire project cost approximately 33.6 MEUR.

The new businesses in the extension were selected to supplement the Mall's existing services. They include well-known names in fashion and interior decoration. The extension is expected to increase the Mall's annual sales by 50 MEUR.

Sales by the Mall's retail outlets between January and September 2001 totalled 1,108 MEUR, or 0.4 % higher than the figure in the comparable period, which was 1,103 MEUR.

Personnel
The Sponda Group had 54 (51) employees on average between January and September 2001, which included 46 (31) employed by the parent company Sponda Plc. Personnel numbered 53 (55) on 30 September, including 46 (34) in the parent company.

Group structure
Sponda Group comprises the parent company and its subsidiaries, which are wholly owned. With the exception of Tamsoil Oy and Castrum Oyj, these are mutual property companies.
Share performance
Sponda's share price in the third quarter was lower than in the second quarter and the closing price on 30 September was 4.30 EUR. The share price was broadly similar to the trend on the HEX all-share index. The average price between January and September was 4.69 EUR, the lowest price being 3.70 EUR and the highest price 5.25 EUR. Sponda's market capitalization at the close of the period was 353 MEUR.

Purchase of own shares
In line with the Board of Director's decision on 14 December 2000, Sponda had purchased 827,400 of its own shares by 30 September 2001 for a total of 3,595,513 EUR. The average purchase price was 4.35 EUR, the highest being 5.05 EUR and the lowest being 3.80 EUR. The aggregate nominal value of the purchased shares was 827,400 EUR and they represented 1.01 % of the total number of votes.

Decisions of Sponda Plc's Annual General Meeting
The decisions taken by Sponda Plc's Annual General Meeting on 28 March 2001 are described in the company's January-March 2001 interim report.

Composition of the Board of Directors
The Board of Directors has the following members: Heikki Bergholm, MSc(Eng); Maija-Liisa Friman, President, Vattenfall Oy; Heikki Hyppönen, Director Real Estate, Nordea; Harri Pynnä, Legal Counsellor, Fortum Oyj; Anssi Soila MSc(Eng.); and Jarmo Väisänen, Financial Counsellor, Ministry of Finance. The Chairman of the Board is Anssi Soila and the Deputy Chairman is Jarmo Väisänen.

Auditors
Sponda Plc's auditors are Sixten Nyman APA and KPMG Wideri Oy Ab, and the deputy auditor is Ari Viitala APA.

Financial information in 2002
Sponda will publish the preliminary financial statements on 31 January 2002 and the annual report in week 11, 2002. The 27 March 2002 has been reserved for the AGM. In addition, the company will publish three interim reports.

Prospects
Despite the slowdown in the Finnish economy, Sponda's result in 2001 will be better than one year earlier. Sponda's result of leasing activities in 2002 is expected to reach the same level as in 2001 or to be even better.

25 October 2001
Sponda Plc
Board of Directors

The terms Sponda , the Group , or the company refer to the entire Sponda Group. The term Sponda Plc refers to the Group's parent company.


The figures in this interim report are unaudited.

The full Interim Report including tables can be downloaded from the enclosed link.