Interim report January - June 2015

Strengthened position in the Norwegian market

APRIL–JUNE 2015 QUARTER

• Rental income amounted to MSEK 615 (386)

• Profit from property management totaled MSEK 346 (333), corresponding to SEK
2.44 per ordinary share (2.54)*

• Profit after tax amounted to MSEK 673 (333), corresponding to SEK 4.80 per
ordinary share (2.54)*

• Cash flow from operating activities was MSEK 153 (67), corresponding to SEK
0.97 per ordinary share (0.51)*

INTERIM PERIOD JANUARY–JUNE 2015

• Rental income amounted to MSEK 1,203 (781)

• Profit from property management totaled MSEK 613 (399), corresponding to SEK
4.09 per ordinary share (4.02)*

• Profit after tax amounted to MSEK 1,082 (345), corresponding to SEK 7.59 per
ordinary share (3.48)*

• Recognized property value of SEK 27.4 billion (17.3) includes 366 (195)
directly owned properties

• Net asset value (EPRA NAV) per ordinary share was SEK 64.39 (55.08)*

• Cash flow from operating activities was MSEK 537 (134), corresponding to SEK
3.51 per ordinary share (1.35)*

* After the share split (2:1) implemented in May 2015, see below. Key figures
were retroactively restated due to this.

SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER

• Hemfosa acquired community service properties in Norway – ten properties and
three site leaseholds, a total of 13 preschools, at an underlying property value
of MSEK 284. The preschools are located primarily in Oslo and South Norway.

• Hemfosa signed an agreement to invest approximately SEK 1 billion in the
project planning and construction of a specialist hospital in Norway.

• Hemfosa divested a residential property and two housing development rights in
Västerhaninge for approximately MSEK 315.

• Hemfosa continued to strengthen its central organization with the addition of
one new position and has thus appointed a Head of Finance.

• In May 2015, a 2:1 share split was implemented entailing that each existing
share was divided into two new shares of the same type. The number of ordinary
shares at the end of the period was 131,440,208 (131,440,208), the number of
preference shares at the end of the period was 10,000,000 (-).

• After the quarter, Hemfosa acquired a community service property in Karlstad.
The property includes about 7,000 square meters of educational premises and is
fully leased with a
20-year agreement.

COMMENTS FROM THE CEO

During the second quarter of 2015, our focus was largely on our new market in
Norway – partly in integration of previous acquisitions, and partly in new
interesting transactions that are in line with our strategic focus on community
service properties and stable cash flows. At the same time, we are able to
report a continued stable trend during the quarter, with improved profit from
property management and higher earnings.

We took the first step into the Norwegian market for community service
properties through several major acquisitions during the first quarter of the
year. There is great potential and we foresee numerous opportunities in the
Norwegian market that we would like to secure at an early stage. To generate an
efficient management of the Norwegian property portfolio, we are now
establishing a proprietary property management organization in Norway, which we
will successively develop.

A WELL-CONCEIVED HOSPITAL PROJECT THAT OPENS THE DOOR TO MORE OPPORTUNITIES

In June, we were able to take another important step to strengthen Hemfosa’s
position in Norway by signing an agreement to invest in a specialist hospital
that is to be constructed at a central location close to Gardermoen Airport,
outside Oslo, where the activities of two existing hospitals will be co-located.
From the beginning, we have a 25-year lease in place with LHL, a Norwegian
association with extensive experience in running specialist clinics in Norway.
The project is very sound, with well-conceived planning, and collaboration with
reputable partners bodes well for a stable process. This establishment will also
open the door to more opportunities in the Gardermoen area, which is to be
developed into a large health campus.
        In June, we also implemented a transaction in Norway when we acquired a
total of 13 preschools, primarily in the Oslo region and the southern part of
the country. The acquisition entails long-term and stable earnings for Hemfosa,
with a signed 20-year lease, while we are also expanding our portfolio in the
preschool area. With both of these transactions, we confirm Hemfosa’s position
as a strong player in community service properties in the Norwegian market. And
we want more.

CONTINUED STREAMLINING OF THE PORTFOLIO

The Swedish market for property transactions remains extremely active, with many
parties interested in each object. This applies in general and also particularly
in our prioritized segment, Community Service Properties. At the same time, we
feel secure knowing that Hemfosa’s financial strength, power of implementation
and experience puts us in a special position and we also
recognize the potential for favorable transactions in the future – but although
we know that we can be quick, we only want transactions that are right for us. A
liquid market is also a great opportunity for us to streamline the existing
portfolio by divesting objects that are not prioritized, in line with what we
did in June when we divested residential properties and housing development
rights.
We usually say that Hemfosa’s world is about recognizing beauty and finding
opportunities not yet seen by anyone else – almost like gathering a valuable
collection of art. On this note, we will continue to conscientiously develop our
collection of fine properties with strong cash flows.

Jens Engwall, CEO
For further information, please contact:

Jens Engwall, CEO
Phone: +46 70 690 65 50, Email: jens.engwall@hemfosa.se

Karin Osslind, CFO
Phone: +46 70 794 93 37, Email: karin.osslind@hemfosa.se