STOCKHOLM, Sweden, Oct. 24, 2002 (PRIMEZONE) -- Vasakronan:
Interim report January - September 2002
"The rental premises market was adversely affected during the third quarter of 2002," commented Hakan Bryngelson, President of Vasakronan. "Nonetheless, we have a large number of inquiries for new office premises, but it takes longer to conclude an agreement."
- During the first three quarters of 2002, contracts corresponding to a value of SEK 245 M in annual rents were renegotiated, with rents increasing an average of 42%.
- Despite the prevailing weak economic conditions, Vasakronan reported strong earnings. Income before depreciation is higher than a year earlier and the forecast for full-year 2002 is income after net financial items amounting to approximately SEK 600 M (418).
Rental revenues amounted to SEK 2,162 M (2,057). The increase in rental income for new and renewed leases was 42% (47). The financial vacancy rate increased to 6% (4).
Income after financial items excluding property sales and costs for prepayment of future interest expenses amounted to SEK 553 M (496).
The rental premises market was affected adversely by the economic downturn.
The forecast for full-year 2002 is that income after net financial items, with the existing portfolio and before gains/losses on the sale of properties, will increase to approximately SEK 600 M (418).
The eight-page interim report is enclosed as an appendix. It is also available at www.vasakronan.se
For further information, contact: Hakan Bryngelson, President and CEO +46 8 783 21 05 Bjorn Lindstrom, Chief Financial Officer +46 8 783 21 12 Bengt Moller, Senior VP Corporate Communications +46 8 783 21 09
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