Kungsleden issues update on previously reported statement of opinion on tax

On 25 October 2012, in tandem with its Third-quarter Interim Report, listed
Swedish property company Kungsleden reported that the Swedish Tax Agency had
issued a statement of opinion questioning the indirect sale of properties
through Dutch subsidiaries. The Swedish Tax Agency has now reported its decision
and is claiming taxation of capital gains on the transfer of participations in
limited partnerships for the year of assessment 2007.
As previously reported, Kungsleden is contesting this tax claim and intends to
file an appeal against this decision at the administrative court level. In
fiscal terms, this is a problematic and untried issue, and there is no practice
in place in this area, as corroborated by the Swedish Tax Agency halving its tax
surcharge on the decision in relation to its statement of opinion. Kungsleden
judges that this decision will not conclude in a negative outcome, and
accordingly, no provisioning has been made.

Profit and liquidity effect

In a negative outcome in this case, the estimated profit effect for Kungsleden
would be SEK 1,380 m and the estimated liquidity effect would be SEK 1,360 m,
which can be set against the previous judgement of SEK 1,700 m and SEK 1,650 m,
as Kungsleden stated in its Third-quarter Interim Report based on the Swedish
Tax Agency’s initial statement of opinion. In its decision, the Swedish Tax
Agency has permitted deductions for a portion of the transaction costs and
halved the tax surcharge, which explains the decrease in relation to the
statement of opinion.

Estimates of maximum negative effects

Due to the Swedish Tax Agency’s aforementioned decision, and the Swedish
Parliamentary decision on a reduced corporation tax rate effective 1 January
2013, Kungsleden has updated its computation of a maximum negative effect if all
proceedings are found against it.

The maximum negative effect on equity would be SEK 2,790 m in addition to
provisions of SEK 1,050 m. Simultaneously, the maximum outstanding negative
liquidity effect including tax surcharge and interest is estimated at SEK 2,920
m. These estimated effects have been reduced by SEK 290 m and SEK 280 m
respectively. The amounts were positively affected by the decision reported in
relation to the statement of opinion, and to a lesser, negative extent, by the
reduced corporation tax rate for measuring loss carry-forwards in un-provisioned
proceedings.

+-----------------------------------+----------------+----------------+
|                                   |Effect on equity|Liquidity effect|
|SEK m                              |                |                |
+-----------------------------------+----------------+----------------+
|Provision, Q2 2009                 |             325|               0|
+-----------------------------------+----------------+----------------+
|Provision, Q2 2012                 |             725|             260|
+-----------------------------------+----------------+----------------+
|Deposited in anticipation of ruling|               -|           - 100|
+-----------------------------------+----------------+----------------+
|Total provision for tax cases      |                |                |
|                                   |           1 050|             160|
+-----------------------------------+----------------+----------------+
|Tax cases not provisioned          |           2 790|           2 920|
+-----------------------------------+----------------+----------------+
|Deposited in anticipation of ruling|               -|            -160|
+-----------------------------------+----------------+----------------+
|Total                              |           3 840|           2 920|
+-----------------------------------+----------------+----------------+
For more information, please contact:

Thomas Erséus, Chief Executive of Kungsleden | tel 46 (0)8 503 05204 | mobile
+46 (0)70 378 2024
Anders Kvist, Deputy Chief Executive of Kungsleden | tel 46 (0)8 503 05211 |
mobile +46 (0)70-690 65 63

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

Kungsleden AB (publ) 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 28 November 2012 at 11:55
a.m.

Kungsleden’s strategy is to ensure sustainable high and stable returns
proceeding from its existing holding, and through acquisitions and divestments.
As of 30 September 2012, the property portfolio comprised 281 properties with a
book value of SEK 14.8 bn. The portfolio was located in a total of 101
municipalities, mainly in southern and central Sweden. Kungsleden has been
quoted on the Nasdaq OMX Stockholm since 1999.