Interim report January

The period (January – June 2014)*

  · Rental income amounted to SEK 86.9 m (n.a.)
  · Net operating income amounted to SEK 37.6 m (n.a.)
  · Profit after tax amounted to SEK 81.7 m (n.a.)
  · Earnings per share amounted to SEK 1.82 (n.a.)

Second quarter (April – June 2014)*

  · Rental income amounted to SEK 65.7 m (n.a.)
  · Net operating income amounted to SEK 30.1 m (n.a.)
  · Profit after tax amounted to SEK 55.4 m (n.a.)
  · Earnings per share amounted to SEK 1.24 (n.a.)

*The properties were acquired on February 27, 2014

Significant events during the quarter

  · D. Carnegie & Co:s offering of shares was oversubscribed – trading on NASDAQ
OMX First North began on April 9
  · On April 28, D. Carnegie & Co acquired two properties from HSB Stockholm
  · On May 12 it was announced that the entire overallotment option in
conjunction with the company’s listing had been exercised – adding approximately
SEK 90 m to the company
  · On June 19, D. Carnegie & Co came to an agreement to acquire a property
portfolio in Sollentuna

Significant events after the quarter

  · On July 2, D. Carnegie & Co held an EGM in connection with the previously
announced acquisition of Hyresbostäder i Sverige II AB:s (“HBS II) property
portfolio
  · On July 4, D. Carnegie & Co completed the transaction with HBS II – making
D. Carnegie the largest listed residential property company in Sweden
  · On July 18, changes to the lock-up agreement for shares in D. Carnegie & Co
was announced

Comment from the CEO

D. Carnegie & Co – a focused residential property company with its aim set on
continued growth

The first half-year of 2014 has been very eventful for D. Carnegie & Co. The
company was given a new operational direction after acquisition of, and
contractual agreements to acquire, properties valued at a total of SEK 10
billion, a new share issue was completed and the company was listed on NASDAQ
OMX First North.

On February 27 we acquired a property portfolio valued at approximately SEK 3
billion from Stendörren Bostäder AB. This report thus only includes four months
(March-June) with operational activities. In connection with the acquisition, we
became a company with a clear focus on housing and an attractive property
portfolio. The sights are from the start set on acquisitions of new properties,
but also the refinement of the existing portfolio and the development of
interesting projects – the three cornerstones of our business. The properties
are strategically located in the so-called Million Programme areas, and demand
for these homes has increased in step with the housing shortage. We feel a
strong commitment to contribute to a favourable development of these areas,
while we of course also see the commercial potential.

In March, we took the next step when the board approved a listing of the
company’s shares on NASDAQ OMX First North, and on April 9 this year, trading
began. The share issue completed in connection with the listing raised a total
of SEK 690 million before transaction costs, including the overallotment option.
Investor interest was very high and the offer was oversubscribed several times
in the process giving us 2,700 new shareholders. We are of course grateful for
this confidence shown, and as we have many exciting opportunities ahead, we are
confident that we can give good returns to our shareholders.

On June 1 we signed a deal to acquire 9 300 apartments from a Norwegian-Swedish
fund structure that makes D. Carnegie & Co the largest listed purely residential
real estate company in Sweden. The properties are strategically placed and
complements our current portfolio. The deal included Graflunds, an organisation
with 50 years experience of property management, which will be responsible for
the management of all of D. Carnegies properties. The deal was only completed on
July 4 and will therefore not affect our reports until the third quarter of
2014. The deal also means that the company substantially exceeded its growth
target in a short amount of time.

ULF NILSSON

CEO of D. Carnegie & Co

For more information, please contact:

Ulf Nilsson, VD +46 (0)8 121 317 00

Per-Axel Sundström, CFO +46 (0)8 121 317 00
Interim report January – June 2014

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