Strong Earnings Despite Weaker Rental Market -- Interim Report from Vasakronan


STOCKHOLM, Sweden, Oct. 24, 2002 (PRIMEZONE) -- Vasakronan:

Interim report January - September 2002

"The rental premises market was adversely affected during the third quarter of 2002," commented Hakan Bryngelson, President of Vasakronan. "Nonetheless, we have a large number of inquiries for new office premises, but it takes longer to conclude an agreement."

- During the first three quarters of 2002, contracts corresponding to a value of SEK 245 M in annual rents were renegotiated, with rents increasing an average of 42%.

- Despite the prevailing weak economic conditions, Vasakronan reported strong earnings. Income before depreciation is higher than a year earlier and the forecast for full-year 2002 is income after net financial items amounting to approximately SEK 600 M (418).

Rental revenues amounted to SEK 2,162 M (2,057). The increase in rental income for new and renewed leases was 42% (47). The financial vacancy rate increased to 6% (4).

Income after financial items excluding property sales and costs for prepayment of future interest expenses amounted to SEK 553 M (496).

The rental premises market was affected adversely by the economic downturn.

The forecast for full-year 2002 is that income after net financial items, with the existing portfolio and before gains/losses on the sale of properties, will increase to approximately SEK 600 M (418).

The eight-page interim report is enclosed as an appendix. It is also available at www.vasakronan.se


For further information, contact:
Hakan Bryngelson, President and CEO 
+46 8 783 21 05
Bjorn Lindstrom, Chief Financial Officer
+46 8 783 21 12

Bengt Moller, Senior VP Corporate Communications 
+46 8 783 21 09

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The following files are available for download:

http://www.waymaker.net/bitonline/2002/10/24/20021024BIT00740/wkr0002.pdf