Improved cashflow, but continued write downs on properties

  • Rental income for the period January-September 2008 amounted to

Income from property management for the period, i.e. net income
excluding changes in value and tax, amounted to SEKm 739 (698),
equivalent to SEK 4.51 (4.26) per share. The improvement is 6% and is
due to higher rental income and the effect of investments made but
has also been limited by increased interest rate costs. The net
leasing amounted to SEKm 70 (93).

In order to show the uncertainty seen on the real estate market the
required yield in the internal valuation has been increased also in
the third quarter. The value of the properties have been reduced with
SEKm -791 (375) in total. The changes in value on derivatives
amounted to SEKm -195 (104). Net income for the period was SEKm -175
(848), equivalent to SEK -1.05 (5.17) per share.

"The development of the results goes two ways - improved cashflow,
but continued write downs on properties" comments Castellum's CEO,
Håkan Hellström. "In times of turbulence and large changes in value a
strong cashflow and low loan to value ratio is even more important"
adds Håkan Hellström.

An election committee has been appointed in accordance to the Annual
General Meeting's decision. The election committee is formed by:
Maj-Charlotte Wallin representing AFA Försäkring, Lars-Åke
Bokenberger representing AMF Pension, Carl Rosén representing Andra
AP-fonden and the Chairman of the Board Jan Kvarnström.

Enclosure: Interim Report January - September 2008

Castellum is one of the major listed real estate companies in Sweden.
The fair value of the real estate portfolio amounts to approx. SEK 29
billion, and comprises commercial properties. The real estate
portfolio is owned and managed by six wholly owned subsidiaries with
strong local roots in five growth regions: Greater Gothenburg, the
Öresund Region, Greater Stockholm, Mälardalen and Eastern Götaland.
Castellum is listed on OMX Nordic Exchange Large Cap.

For further information, please contact
Håkan Hellström, CEO, phone +46 31 60 74 00 / mobile +46 705-60 74 56
Ulrika Danielsson, Finance Director, phone +46 31 60 74 00 / mobile +
46 706-47 12 61

Castellum AB (publ) discloses the information provided herein
pursuant to the Securities Markets Act and/or the Financial
Instruments Trading Act.

This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.