Wihlborgs Interim Report January - June 2000

Interim Report January - June 2000 The profit after financial items increased to SEK 257 million (SEK 204 m) EPS increased to SEK 0.59 (SEK 0.47) after full tax Continued focusing of operations through property sales for SEK 827 million and investments in the key regions The forecast for profits after financial items for the entire year 2000 raised from at least SEK 550 million to SEK 575 million Results The profit after financial items increased to SEK 257.2 million (SEK 203.7 1 2) m) . EPS after full tax totalled SEK 0.59 (SEK 0.47). The improvement in the profit is primarily due to an increase in profit on the sale of properties. Rental income for the period totalled SEK 1,106.0 million (SEK 1,085.8 m). The operating surplus before depreciation totalled SEK 658.5 million (SEK 646.2 m). The operating profit increased to SEK 631.4 million (SEK 554.6 m). The profit includes SEK 70.2 million (19.4 m) in profits from the sale of properties and SEK 22.2 million in refunds from the SPP pension premiums scheme, and interest grants totalling SEK 7.8 million (SEK 24.4 m). The operating surplus for comparable property holdings has during the first 6 months of 2000 increased by SEK 10 million in comparison with the corresponding period in 1999. Operations Wihlborgs is one of Sweden's larger property companies. The operations are concentrated on the growth regions of Stockholm and Öresund, which collectively account for 91 per cent of the company's total rental 3) income . The property holding comprises commercial premises and residential accommodation with an annual rental value of SEK 2.3 billion, a total leasable floor area of 2.9 million sq.m. and a book value of SEK 20.3 billion. The market and property holdings 45 per cent, 46 per cent and 9 per cent of the total property holding's rental value are to be found in the Stockholm, Öresund and other regions, respectively. 35 per cent, 41 per cent and 24 per cent of the property holding's rental value comprises Residential Premises, Offices/Shops and Industrial/Hotel Premises, respectively. At the period end, the economic letting level for the Group's property holding was 95 per cent. Broken down by Wihlborgs' market areas, the letting levels in the Stockholm and Öresund regions are 97 per cent and 94 per cent, respectively, and 85 per cent for other properties. Commercial premises Both markets were characterised by high levels of demand, falling vacancy levels and rising rental levels. Development in the Stockholm region is stronger than in the Öresund region and extensive new construction work is currently either in progress or being commenced in various parts of the Stockholm region to meet the increased demands of the market. Residential premises 1) The comparative figures for Profit & Loss Account items refer to values for the period from January to June 1999, whilst those for Balance Sheet items refer to values as of 31 December 1999. 1) For definitions, please see page 12. 3) Refers to rental values on a full year basis, which are defined as rent payable as per 30 June 2000 on a full year basis plus estimated market rental on a full year basis for vacant floor area. Demand for residential accommodation in Stockholm is exceptionally high, and is also healthy in the Öresund region. This year's rental negotiations in the Stockholm region resulted in a 1.95% increase in rents as of 1 July 2000. In Malmö, rents were increased by an average of 2.5% from 1 January 2000. Summary of the property holding as of 30 June 2000 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/10/20000810BIT00510/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/10/20000810BIT00510/bit0002.pdf The full report

10 Aug 2000 1:44 PM