Welcome to Kungsleden

Chief Executive Thomas Erséus

Deputy Chief Executive Johan Risberg

17 February 2010

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 risk levels

■ 592 properties, of which 297 are part-owned via Hemsö, reported at

SEK 21.5 (21.9) bn as of 31 December 2010

– Commercial properties 45% (46)

– Public properties 48% (47)

– Modular buildings 7% (7)

■ 23,300 shareholders. 37% of shares held by private individuals and

approximately a quarter by foreign shareholders.

– Ten largest shareholders control 20.4% of capital and votes

Profit for calculating dividends

2010 2009

SEK m Jan-Dec Jan-Dec

Gross profit 1,545 1,817

Sales and administration costs -260 -286

Net financial position -749 -847

Sub-total 536 684

Realised items

Trading net at divestment 33 -135

Realised value changes, properties 21 1,189

Realised value changes, financial instruments -8 -281

Sub-total 46 773

Taxes payable -52 -435

Profit for calculating dividends 530 1,022

Fourth quarter in brief

■ Increased net sales and strong profits.

■ Pronounced upturn in transaction volume. Kungsleden completed

some SEK 7 billion of transactions including Nordic & Russia

Properties.

■ Acquisition of 52 properties for a value of SEK 1,517 m and a

property yield of 7,6%. This included six retail properties for SEK

520 m and six properties in Malmö for SEK 435 m. The transaction

with NRP, of SEK 3.6 billion, was completed in February 2011.

■ Divestment of 22 properties for SEK 1,901 m at a property yield of

9,0%. Includes six properties in Ludvika for SEK 809 m.

■ Divestment of 17 properties in Germany for SEK 1.3 billion.

■ Approved by Swedbank Robur’s sustainability funds.

Customers and lettings

■ New tenants include Isringhausen, Fraktkompaniet i Mölndal and

Mechanum.

■ New lettings in 2010 with annual rental value of SEK 84 m.

■ Vacancies mainly concentrated on six commercial premises in

Burlöv, Kungsbacka, Botkyrka, Härnösand, Gävle and Umeå.

■ Average vacancy of 8,8% - 6,8% excluding the above properties.

■ Remaining contract terms averaging 5,7 years for commercial

properties and 8,2 years for public properties.

Current market conditions

■ Kungsleden’s lettings market

– Slightly increasing new lettings

– Vacancy levels stabilising

– Slightly increasing rent levels

■ Financial market

– Continued strong capital flows to the property sector

– New foreign mutual funds investing in properties

– Bank deal appetites increasing

■ Transaction market

– Extremely strong fourth quarter

– High competition over properties

Property portfolio

Our properties—by type

Kungsleden—2010 in figures

Income Statement

SEK m

2010

Jan-Dec

2009

Jan-Dec

Rental revenues 2,120 2,394

Sales revenues, modular buildings 184 208

Net sales 2,304 2,602

Gross profit 1,545 1,817

Trading net 33 –135

Sales and administration costs –260 –286

Net financial position –749 –847

Unrealised value changes 617 –198

Profit before tax 1,186 351

Tax –345 –101

Profit after tax for the period 841 250

Income Statement

SEK m

2010

Jan-Dec

2009

Jan-Dec

Rental revenues 2,120 2,394

Sales revenues, modular buildings 184 208

Net sales 2,304 2,602

Gross profit 1,545 1,817

Trading net 33 –135

Sales and administration costs –260 –286

Net financial position –749 –847

Unrealised value changes 617 –198

Profit before tax 1,186 351

Tax –345 –101

Profit after tax for the period 841 250

• Decrease due to part-

sale of public

properties and

negative rent

indexation for 2010.

• Rental revenues

reduced by 2% in

like-for-like terms.

Income Statement

SEK m

2010

Jan-Dec

2009

Jan-Dec

Rental revenues 2,120 2,394

Sales revenues, modular buildings 184 208

Net sales 2,304 2,602

Gross profit 1,545 1,817

Trading net 33 –135

Sales and administration costs –260 –286

Net financial position –749 –847

Unrealised value changes 617 –198

Profit before tax 1,186 351

Tax –345 –101

Profit after tax for the period 841 250

• Reduced demand

due to recession

Income Statement

SEK m

2010

Jan-Dec

2009

Jan-Dec

Rental revenues 2,120 2,394

Sales revenues, modular buildings 184 208

Net sales 2,304 2,602

Gross profit 1,545 1,817

Trading net 33 –135

Sales and administration costs –260 –286

Net financial position –749 –847

Unrealised value changes 617 –198

Profit before tax 1,186 351

Tax –345 –101

Profit after tax for the period 841 250

• Down 15%, or 7%

excluding Hemsö

transaction.

• Indexation and higher

costs for snow

clearance and

heating the prime

reason

Income Statement

SEK m

2010

Jan-Dec

2009

Jan-Dec

Rental revenues 2,120 2,394

Sales revenues, modular buildings 184 208

Net sales 2,304 2,602

Gross profit 1,545 1,817

Trading net 33 –135

Sales and administration costs –260 –286

Net financial position –749 –847

Unrealised value changes 617 –198

Profit before tax 1,186 351

Tax –345 –101

Profit after tax for the period 841 250

• Sales price exceeds

book value.

Income Statement

SEK m

2010

Jan-Dec

2009

Jan-Dec

Rental revenues 2,120 2,394

Sales revenues, modular buildings 184 208

Net sales 2,304 2,602

Gross profit 1,545 1,817

Trading net 33 –135

Sales and administration costs –260 –286

Net financial position –749 –847

Unrealised value changes 617 –198

Profit before tax 1,186 351

Tax –345 –101

Profit after tax for the period 841 250

• Lower administration costs

mainly because of part-sale to

AP3

Income Statement

SEK m

2010

Jan-Dec

2009

Jan-Dec

Rental revenues 2,120 2,394

Sales revenues, modular buildings 184 208

Net sales 2,304 2,602

Gross profit 1,545 1,817

Trading net 33 –135

Sales and administration costs –260 –286

Net financial position –749 –847

Unrealised value changes 617 –198

Profit before tax 1,186 351

Tax –345 –101

Profit after tax for the period 841 250

• Includes a positive

effect of property

divestment

Income Statement

SEK m

2010

Jan-Dec

2009

Jan-Dec

Rental revenues 2,120 2,394

Sales revenues, modular buildings 184 208

Net sales 2,304 2,602

Gross profit 1,545 1,817

Trading net 33 –135

Sales and administration costs –260 –286

Net financial position –749 –847

Unrealised value changes 617 –198

Profit before tax 1,186 351

Tax –345 –101

Profit after tax for the period 841 250

• Positive change on

properties

corresponding to 1%

of book value.

• Positive value change

on financial

instruments resulting

from rising long

yields.

Income Statement

SEK m

2010

Jan-Dec

2009

Jan-Dec

Rental revenues 2,120 2,394

Sales revenues, modular buildings 184 208

Net sales 2,304 2,602

Gross profit 1,545 1,817

Trading net 33 –135

Sales and administration costs –260 –286

Net financial position –749 –847

Unrealised value changes 617 –198

Profit before tax 1,186 351

Tax –345 –101

Profit after tax for the period 841 250

• Slightly more tax than

26,3% of profit

before tax

Income Statement

SEK m

2010

Jan-Dec

2009

Jan-Dec

Rental revenues 2,120 2,394

Sales revenues, modular buildings 184 208

Net sales 2,304 2,602

Gross profit 1,545 1,817

Trading net 33 –135

Sales and administration costs –260 –286

Net financial position –749 –847

Unrealised value changes 617 –198

Profit before tax 1,186 351

Tax –345 –101

Profit after tax for the period 841 250

• The higher figure is

mainly because of

unrealised value

changes on

properties and

financial instruments

Balance Sheet

SEK m 2010 2009

Assets 31 Dec 31 Dec

Goodwill 201 193

Properties 21,501 21,861

Receivables, etc. 2,045 1,466

Cash and cash equivalents 747 689

Total assets 24,494 24,208

Equity and liabilities

Equity 7,357 7,079

Interest-bearing liabilities 13,949 14,437

Non-interest-bearing liabilities 3,188 2,692

Total equity and liabilities 24,494 24,208

Maturity structure, interest fixings

As of 31 December 2010

Loan, SEK

m

Interest

derivatives,

SEK m

Ave.

interest, %

Average fixed interest

term, years

2011 13,990

2012 300 4.5

2013 3,600 4.1

2014 2,100 4.2

2015 3,600 4.2

2016 1,000 4.3

2017 300 4.5

2018 3,550 4.3

Total derivatives 14,450 4.9

Total loans 13,990 5.3

Market value of loans and

derivatives 716

Total 14,706

Maturity structure, credits (including un-utilised

credit facilities)

As of 31 December 2010

Utilised

credits, SEK

m

Un-utilised

credits, SEK m

Total

credits, SEK m

2011 1,905 654 2,559

2012 7,637 3,600 11,237

2013 2,217 0 2,217

2014 610 0 610

2015 999 0 999

2016 0 0 0

2017 0 0 0

2018 622 0 622

Summa 13,990 4,252 18,244

Average conversion term, years 2.2 2.0

Equity ratio

31 Dec 10

30%

30 jun 10

27%

31 Dec 09

29%

Mortgage ratio 65 64 66

Underlying profits, 2000-2010

Ten largest shareholders (% of votes & capital)

■ Länsförsäkringar fonder 4.7

■ Nordea fonder 3.1

■ Olle Florén and companies 2.3

■ SHB fonder 2.0

■ AP4 1.6

■ Norwegian Government 1.5

■ AP2 1.4

■ SEB Fonder 1.4

■ Swedbank Robur Fonder 1.3

■ Black Rock fonder (USA) 1.1

20.4

Source: SIS Ägarservice

Outlook for 2011

■ A strong Swedish economy paves the way for favourable years for

property

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

■ Broadening the base of alternative funding sources

■ Kungsleden active on the transaction market and increased property

portfolio

■ Implement continued measures to reduce vacancy levels in a cluster

of large properties

■ Increasing rent levels

■ High employee commitment creates

good prospects

■ Kungsleden’s head office at a

new address

The share to the end of December

Total yield to the end of December 2010

Any questions?