Press releaseApril 23 2008

Interim Report 1 January – 31 March 2008

Continued reallocation provides increased stability

•Net sales increased by 15 per cent to SEK 714 (620) m.

•Profit before tax was SEK 113 (266) m. Net profit was SEK 73 (176) m in the interim period, equivalent to SEK 0.50 (1.30) per share.

•As of 31 March 2008, the property holding comprises 590 (575) properties with a book value of SEK 27,223 (25,737) m.

•In the interim period, 16 (16) properties were acquired for SEK 1,337 (925) m; 1 (9) property was also divested for SEK 10 (1,053) m,
generating a profit of SEK 0 (–34) m. These divestments changed profit for calculating dividends by SEK –2 (–125)m.

•Profit for calculating dividends for the interim period was SEK 126 (9) m. The forecast for full-year 2008 profit for calculating dividends is SEK 900 m (unchanged).

•Two properties were acquired after the end of the interim period for SEK 130 m.

“The start of the year was positive for Kungsleden. Despite credit market unrest, we succeeded in doing a series of good acquisitions. These included us signing a letter of intent with the City of Vasteras, west of Stockholm, for acquisitions of over SEK 1 billion. Most of the properties involved have 20-year rental agreements. We acquired public properties for almost another SEK 1 billion from GE Real Estate Nordic. We also signed a six-year rental agreement with the Swedish Social Insurance Office with a total rental value of SEK 54 m. The tenants in these acquisitions are municipalities, schools, central government bodies and other authorities, which ensures stable cash flows.”

“I’m satisfied with the acquisitions we did in the period, which are consistent with our endeavour to increase the share of long rental contracts with stable tenants, in our public and commercial portfolios. Simultaneously, this conscious re-allocation has also resulted in our operating surplus margin increasing during the last twelve months, making us less sensitive to cost variations.”

“Yield levels were stable in the period despite the differences between different types and some geographical regions, continuing to widen. Rent levels were also stable. With a property holding spanning over 130 municipalities right across Sweden, variations in rent levels in more economically active regions exert a more limited impact on our portfolio,” commented Kungsleden’s Chief Executive Thomas Erséus.

“Kungsleden’s tried and tested business model is a strength in times of market uncertainty. We will consistently pursue the strategy we have set, because we have good reason to believe that it will work regardless of market conditions. Looking ahead, we will maintain our focus on improving risk-adjusted returns. Meanwhile, we think that the current market conditions may provide attractive deal opportunities.

For more information, please contact:
Thomas Erséus, Chief Executive, tel +46 (0)8 503 05204, mobile +46 (0)70 378 2024 Johan Risberg, Deputy Chief Executive, tel +46 (0)8 503 05206, mobile +46 (0)70 690 6565

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 23 April 2008 at 11:00 a.m.

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