Interim Report 1 January - 31 March 2009

Interim Report 1 January - 31 March 2009

Continued increasing gross results

• Net sales increased by 3 per cent to SEK 771 (747) m and gross profit
increased by 12 per cent to SEK 501 (447) m.

• Kungsleden posted a loss before tax of SEK -79 (113) m of which value changes
were SEK -262 (-24) m. The interim period's loss after tax was SEK -67 (73) m,
equivalent to SEK -0.50 (0.50) per share.

• As of 31 March 2009, the property portfolio comprised 596 (603) properties
with a book value of SEK 28,589 (28,576) m.

• In the interim period, 2 (16) properties were acquired for SEK 158 (1,337) m;
6 (1) properties were also divested for SEK 222 (10) m, generating a profit of
SEK 11 (0) m. These divestments affected profit for calculating dividends by SEK
61 (-2) m.

• Profit for calculating dividends for the interim period was SEK 223 (126) m,
equivalent to SEK 1.60 (0.90) per share.

• After the end of the interim period, the sale to Third Swedish National
Pension Fund (AP3) of 50 per cent of the shares of the company that owns most of
Kungsleden's public properties was finalised, after the terms of the transaction
were met. This transaction affects Kungsleden's profit for calculating dividend
for 2009 by some SEK 800 m.

• The forecast for the full year 2009 profit for calculating dividends is SEK
1,300 m, or SEK 9.50 per share.

“The transaction market remained hesitant in the first quarter. Total
transaction volumes fell by 75-80 per cent to SEK 4.5 bn against the
corresponding quarter of 2007-2008, according to Newsec. Despite a harsh market,
Kungsleden completed transactions worth nearly SEK 300 m, of which sales ofresidential and commercial properties represented the absolute majority.

The trend of rising gross profits continued in the quarter. Net sales increased
by 3.2 per cent, rental revenues rose 11 per cent and gross profit was up by 12
per cent. This increase occurred despite reduced module sales.

Modular lettings remain stable, and because of progressive adaptation to market
conditions last autumn, Nordic modular's profitability is largely unchanged. The
negative value changes on financial instruments are reducing Kungsleden's
profits but they do not affect cash flow.
Overall, our broad offering in commercial and public properties and modular
buildings helped keep the group's operating net stable in the quarter.

Kungsleden's vacancy levels were stable in the quarter, although there are
increasingly clear signs of the real economy starting to feed through into
increased vacancies as a result of business insolvencies, which is affecting the
whole lettings market. Net lettings are stable year to date, but risks have
increased on the insolvency side, and we are monitoring progress closely,
especially in commercial properties. While insolvencies affect operating net
immediately, rental agreement cancellations are normally subject to nine months'
notice.

Our transaction with Third Swedish National Pension Fund (AP3) was finalized
after the end of the period. This deal involves the AP3 acquiring 50 per cent of
the shares of the company that owns and manages most of Kungsleden's public
properties in Sweden. Alongside the AP3, we can enhance and advance Kungsleden's
already-strong positioning on the market for public properties. Simultaneously,
our financial position strengthens and we increase our prospects of exploiting
business opportunities that may arise, in time, on the commercial and public
property markets. From the second quarter onwards, Kungsleden will be reporting
this joint venture using the proportional method.

Kungsleden expects the transaction market to remain hesitant for the rest of the
year. Our forecast of profit for calculating dividend for 2009 is SEK 1.3 bn,
including the profit for calculating dividends of SEK 800 m from the transaction
with the AP3,” commented Kungsleden's Chief Executive Thomas Erséus.





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 24 March 2009 at 12:30 p.m.


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


Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se

Kungsleden's strategy is to ensure sustainable high and stable returns
proceeding from its existing portfolio, and through acquisitions and
divestments. As of 31 March 2009, the property portfolio comprised 596
properties with a book value of SEK 28.6 bn. The holding was located in a total
of 132 municipalities, although concentrated on the Swedish provinces of
Götaland and Svealand, and the Öresund region. Kungsleden has been quoted on the
OMX Nordic Exchange Stockholm since 1999.