Robust profits, property yield continues to rise

Robust profits, property yield continues to rise

• As a result of the transaction with AP3, net sales reduced by 15 per cent to
SEK 2,602 (3,060) m and gross profit decreased by 8 per cent to SEK 1,817
(1,982) m.

• Profit before tax was SEK 351 (-1,185) m. Profit after tax was SEK 250 (-962)
m, equivalent to SEK 1.80 (-7.00) per share.

• As of 31 December 2009, the property portfolio comprised 585 (603) properties
with a book value of SEK 21,861 (28,576) m.

• In 2009, 18 (54) properties were acquired for SEK 1,307 (3,408) m; 32 (28)
properties and half the ownership of 242 properties was also divested for a
total of SEK 7,808 (1,313) m, generating a loss of SEK -135 (12) m. These
divestments affected profit for calculating dividends by SEK 895 (268) m.

• Profit for calculating dividends for 2009 was SEK 1,022 (840) m, equivalent to
SEK 7.50 (6.20) per share.

• The Board of Directors is proposing a dividend of SEK 3.75 (1.50) per share.

• The forecast for the full year 2010 profit for calculating dividends is SEK
600 m, or SEK 4.40 per share.


Fourth quarter (october-december)
• As a result of the transaction with AP3, net sales reduced by 25 per cent to
SEK 588 (784) m.

• Profit before tax was SEK 41 (-1,462) m. Profit after tax was SEK -90 (-1,311)
m, equivalent to SEK -0.70 (-9.60) per share.

“Now that we have put 2009 behind us, I can conclude that it was a good year for
Kungsleden, especially given the uncertain starting-point. We've never had such
a strong balance sheet with a high equity/assets ratio, and a property portfolio
of better quality. Our dividend yield is 7 per cent, which means that it is
basically back at year-2005 levels. In like-for-like terms, the progress of our
underlying operation was very positive. Rental revenues are up 5 per cent, our
operating net is up 9 per cent and administration costs are down by 20 per cent.

We were able to improve our earnings capacity gradually through the year, thanks
to factors including the lettings markets where Kungsleden operates being
stable. Both the commercial and public portfolios made solid progress, and we
actually had reducing vacancies overall in the commercial holding. Nordic
Modular posted its best profits ever, after the production adaptations completed
early in the year. Kungsleden's completed divestments support the valuation of
the portfolio, as do the valuations conducted by external appraisers at
year-end. Accordingly, I think that overall, our portfolio has shown itself to
be just as resilient as we expected.
In the fourth quarter, Kungsleden completed the purchase of five commercial
properties from Northern Logistic Properties for SEK 525 m. We also completed
the acquisition of five properties, operated by AWO, one of Germany's largest
public retirement home operators. Just before Christmas, we signed an agreement
with Corem Property Group on the divestment of 22 commercial properties for SEK
460 m. A number of other deals were completed in the fourth quarter, and this
marked a clear increase in activity levels compared to earlier in the year.

Late in the year, we also observed the credit market starting to head in the
right direction once again. Kungsleden arranged refinancing and drew down new
credits. Accordingly, we are well equipped financially. 

In the fourth quarter, revised tax regulations for partnerships and limited
partnerships had a SEK -139 m negative effect, implying that profit after tax
for the quarter was also negative.

Going into 2010, we may see a faint increase in vacancy levels, and somewhat
lower earnings due to a negative consumer price index for the year's rents. But
with our very stable portfolio, I think these risks are fully manageable. 

The proposed dividend for 2009 is SEK 3.75 (1.50) per share. The Board's
estimate of profit for calculating dividend for 2010 is SEK 600 m.”

Thomas Erséus
Chief Executive


For more information, please contact:
Thomas Erséus, CEO Kungsleden | phone +46 8 503 052 04 | mobile +46 70 378 20 24
Johan Risberg, Deputy CEO Kungsleden | phone +46 8 503 052 06 | mobile +46 70
690 65 65

Kungsleden 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 18 February 2010 at 13:00 p.m.


This press release is available in Swedish at www.kungsleden.se

Kungsleden's strategy is to ensure sustainable high and stable returns
proceeding from its existing holding, and through acquisitions and divestments.
As of 31 December 2009, the property portfolio comprised 585 properties with a
book value of SEK 21.9 bn. The holding was located in a total of 130
municipalities, although concentrated on the Swedish provinces of Götaland and
Svealand, and the Öresund region. Kungsleden has been listed on Nasdaq OMX
Stockholm since 1999.