Welcome to Kungsleden

2nd Quarter 2011

Kungsleden in brief

Owns and manages properties generating high and stable

long-term returns

Returns more important than property type and location

Returns can not be judged without considering the property’s risk levels

635 (592) properties, of which 298 part-owned via Hemsö,

reported at SEK 26.1 (21.5) bn as of 30 June 2011

Commercial properties 53 per cent (45)

Public properties 41 per cent (48)

Modular buildings 6 per cent (7)

21,700 shareholders. 40 per cent of shares held by private individuals

and approximately one-third by foreign shareholders.

Ten largest shareholders control 20.4 per cent of capital and votes

Profit for calculating dividends

2011 2010

SEK m Jan-Jun Jan-Jun

Gross profit 838 752

Sales and administration costs -162 -137

Net financial position -415 -364

Sub-total 261 252

Realised items

Trading net on sale 23 14

Realised value changes, properties 5 -13

Realised value changes, financial instruments -31 -4

Sub-total -3 -3

Taxes payable -35 -30

Profit for calculating dividends 223 219

Second quarter in brief

■ Stable quarter with recent acquisition NR Nordic & Russia Properties

contributing as planned

■ Net sales increase by 31 per cent to SEK 747 m and gross profit by 22

per cent to SEK 485 m

■ Module sales rise by 65 per cent to SEK 76 m

■ Profit after tax up to SEK 102 (80) m

■ 6 properties purchased for a value of SEK 362 m

■ 1 property sold for a value of SEK 25 m

SEK 4.2 bn growth first half year

Office and industrial properties

36 properties for SEK 3.6 bn

10 per cent property yield

ABB at Västerås occupies 39 per

cent of area

Office property in Kista

SEK 148 m at a property yield of

7.4 per cent

Majority let to Office Management

on a 10-year lease

SEK 4.2 bn growth first half year

Warehouse property in

Upplands Väsby

SEK 97 m at a property yield of 7.4

per cent

Jobman Workwear renting the

whole property on a five-year lease

Industrial property in Motala

SEK 52 m at a property yield of 11

per cent

Motala Verkstad is tenant on a

17-year lease

SEK 4.2 bn growth first half year

Offices and housing in Trollhättan

SEK 194 m at a property yield of

7.6 per cent

Formerly Trollhättan Hospital,

current tenants include the City of

Trollhättan, Siemens and Kone

Elevators

Possibility of housing development

rights of 10,000 sq.m.

Transactions conducted after the first half-year

Kungsleden is purchasing a senior high school in Lysekil through Hemsö

■ SEK 180 m at an initial property yield of 6.4 per cent

■ 50 per cent of revenue and costs on Kungsleden

Kungsleden is purchasing a senior high school in Norrköping through

Hemsö

■ SEK 98 m at a property yield of 7.1 per cent

■ 50 per cent of revenue and costs on Kungsleden

Kungsleden is selling two retail properties in Högdalen Municipal Centre

and Linköping

■ SEK 65 m at a property yield of 6.5 per cent

Current market conditions

Kungsleden’s lettings market

Lettings market remains positive

Vacancies confined to few properties

Slight increase in rent levels with existing tenants

Financial market

Increased financial and economic unrest in the surrounding world

Swedish government finances remain sound, domestic demand positive

Transaction market

High supply of properties

Transaction sentiment more hesitant as a result of financial unrest in the

surrounding world

The property portfolio, 2001 – Q2-2011

Kungsleden’s properties—by type

2nd Quarter 2011 in figures

Income Statement

SEK m

2011

Jan-Jun

2010

Jan-Jun

Rental revenues 1,204 1,062

Sales revenues, modular buildings 144 80

Net sales 1,348 1,142

Gross profit 838 752

Trading net 23 14

Sales and administration costs -162 -137

Net financial position -414 -364

Unrealised value changes 405 –98

Profit before tax 690 167

Tax –181 -30

Profit after tax for the period 509 137

Income Statement

SEK m

2011

Jan-Jun

2010

Jan-Jun

Rental revenues 1,204 1,062

Sales revenues, modular buildings 144 80

Net sales 1,348 1,142

Gross profit 838 752

Trading net 23 14

Sales and administration costs –162 –137

Net financial position -414 -364

Unrealised value changes 405 –98

Profit before tax 690 167

Tax –181 -30

Profit after tax for the period 509 137

Rental revenues

increase by 13 per cent.

Growth mainly

explained by the

purchase of NR Nordic

& Russia Properties

Income Statement

SEK m

2011

Jan-Jun

2010

Jan-Jun

Rental revenues 1,204 1,062

Sales revenues, modular buildings 144 80

Net sales 1,348 1,142

Gross profit 838 752

Trading net 23 14

Sales and administration costs –162 –137

Net financial position -414 -364

Unrealised value changes 405 –98

Profit before tax 690 167

Tax –181 -30

Profit after tax for the period 509 137

Sales revenues up

by 80 per cent thanks to

increased demand

for modules

Income Statement

SEK m

2011

Jan-Jun

2010

Jan-Jun

Rental revenues 1,204 1,062

Sales revenues, modular buildings 144 80

Net sales 1,348 1,142

Gross profit 838 752

Trading net 23 14

Sales and administration costs –162 –137

Net financial position -414 -364

Unrealised value changes 405 –98

Profit before tax 690 167

Tax –181 -30

Profit after tax for the period 509 137

Gross profit rises 11

per cent

Income Statement

SEK m

2011

Jan-Jun

2010

Jan-Jun

Rental revenues 1,204 1,062

Sales revenues, modular buildings 144 80

Net sales 1,348 1,142

Gross profit 838 752

Trading net 23 14

Sales and administration costs –162 –137

Net financial position -414 -364

Unrealised value changes 405 –98

Profit before tax 690 167

Tax –181 -30

Profit after tax for the period 509 137

Trading net increases to

SEK 23 m. Few sales and

value changes of SEK 5

m realised through sales

Income Statement

SEK m

2011

Jan-Jun

2010

Jan-Jun

Rental revenues 1,204 1,062

Sales revenues, modular buildings 144 80

Net sales 1,348 1,142

Gross profit 838 752

Trading net 23 14

Sales and administration costs –162 –137

Net financial position -414 -364

Unrealised value changes 405 –98

Profit before tax 690 167

Tax –181 -30

Profit after tax for the period 509 137

Increased admin costs due to

Hemsö now independent

Larger property portfolio

Higher transaction activity

Relocation of Kungsleden’s

and Hemsö’s offices

Income Statement

SEK m

2011

Jan-Jun

2010

Jan-Jun

Rental revenues 1,204 1,062

Sales revenues, modular buildings 144 80

Net sales 1,348 1,142

Gross profit 838 752

Trading net 23 14

Sales and administration costs –162 –137

Net financial position -414 -364

Unrealised value changes 405 –98

Profit before tax 690 167

Tax –181 -30

Profit after tax for the period 509 137

Higher loan volume

after the year’s

acquisitions

Recently arranged bond

loans have higher

interest margin than

bank loans

Income Statement

SEK m

2011

Jan-Jun

2010

Jan-Jun

Rental revenues 1,204 1,062

Sales revenues, modular buildings 144 80

Net sales 1,348 1,142

Gross profit 838 752

Trading net 23 14

Sales and administration costs –162 –137

Net financial position -414 -364

Unrealised value changes 405 –98

Profit before tax 690 167

Tax –181 -30

Profit after tax for the period 509 137

Positive value change

corresponding to 1 per

cent of book value

Positive value change

on financial instruments

due to higher long

yields

Income Statement

SEK m

2011

Jan-Jun

2010

Jan-Jun

Rental revenues 1,204 1,062

Sales revenues, modular buildings 144 80

Net sales 1,348 1,142

Gross profit 838 752

Trading net 23 14

Sales and administration costs –162 –137

Net financial position -414 -364

Unrealised value changes 405 –98

Profit before tax 690 167

Tax –181 -30

Profit after tax for the period 509 137

Equivalent to 26.3 per

cent of profit before tax

Income Statement

SEK m

2011

Jan-Jun

2010

Jan-Jun

Rental revenues 1 204 1 062

Sales revenues, modular buildings 144 80

Net sales 1 348 1 142

Gross profit 838 752

Trading net 23 14

Sales and administration costs –162 –137

Net financial position -414 -364

Unrealised value changes 405 –98

Profit before tax 690 167

Tax –181 -30

Profit after tax for the period 509 137

Unrealised value

changes on properties

and financial

instruments make a

positive contribution

Statement of Financial Position

SEK m 2011 2010

Assets 30 Jun 31 Dec

Goodwill 201 201

Properties 26,123 21,501

Receivables, etc. 1,435 2,045

Cash and cash equivalents 911 747

Total assets 28,670 24,494

Equity and liabilities

Equity 7,604 7,357

Interest-bearing liabilities 17,644 13,949

Non-interest-bearing liabilities 3,422 3,188

Total equity and liabilities 28,670 24,494

Maturity structure, interest fixings

As of 30 June 2011

Loan, SEK

m

Interest

derivatives,

SEK m

Ave.

interest, %

Average fixed interest

term, years

2011 17,666 95 3.8

2012 700 3.7

2013 2,800 4.1

2014 2,500 4.0

2015 3,000 4.2

2016 1,000 4.3

2017 300 4.5

2018 3,550 4.3

Total derivatives 13,945 3.4

Total loans 17,666 5.0

Market value of loans and

derivatives 578

Total 18,244

Maturity structure, credits (including un-utilised

credit facilities)

As of 30 June 2011

Utilised

credits, SEK

m

Un-utilised

credits, SEK m

Total

credits, SEK m

2011 1,297 310 1,607

2012 8,420 3,000 11,420

2013 2,745 - 2,745

2014 1,640 - 1,640

2015 999 - 999

2016 2,065 - 2,065

2017 - - -

2018 324 - 324

2019 176 176

Total 17,666 3,310 20,976

Average conversion term, years 2.1 1.9

Equity ratio

30 Jun 11

27%

31 Dec 10

30%

30 Jun 10

27%

Mortgage ratio 68% 65% 65%

Underlying profits, 2001 – Q2 2011

The share 2010 to mid-August 2011

Total yield 2002 to mid-August 2011

Ten largest shareholders (percent of votes & capital)

■ Länsförsäkringar fonder 3.1

■ Nordea fonder 3.0

■ SHB fonder 2.5

■ Pensioenfonds PGGM (NL) 2.4

■ Olle Florén and companies 2.3

■ Norwegian Government 1.7

■ AP4 1.6

■ Black Rock fonder (USA) 1.4

■ Swedbank Robur Fonder 1.2

■ SEB Fonder 1.2

20.4 Source: SIS Ägarservice 30 June 2011

Outlook for 2011

■ Focus on customer care, cash flow and enhancing the portfolio

■ Working with a broad base of alternative funding sources

■ Stable government finances but somewhat increased risk of subdued

growth

■ High activity level—financial unrest creating uncertainty but also opening

up attractive transaction opportunities

■ Business Development Manager for commercial properties, Ylva Sarby

Westman, will join Kungsleden’s group management

■ Limited vacancies and stable underlying cash flows

■ Estimate of profit for calculating dividends of SEK 650 m reiterated

Any questions?