Castellum's income from property management improved by 11%

Gothenburg 20 July, 2004

  • Rental income for the period January-June 2004 amounted to SEKm 915
  • Net income after tax for the period amounted to SEKm 341 (319).
  • Earnings per share amounted to SEK 8.32 (7.78).
  • Income from property management improved by 11% to SEKm 289
  • During the period 21 properties were sold for a total of SEKm 417

Income from property management during the period, i.e. net income
excluding capital gains from property sales, items affecting
comparability and tax, amounted to SEKm 289 (261), equivalent to SEK
7.05 (6.37) per share, which is an improvement of 11 % compared with
the same period 2003. The improvement has been achieved, mainly
through lower interest rate levels.

During the period 21 properties for a total of SEKm 417 (380) were
sold with a capital gain of SEKm 169 (178). Net income after tax for
the period January-June amounts to SEKm 341 (319), equivalent to SEK
8.32 per share (7.78). Investments during the period amounted to SEKm
869 (598).

"Earnings trend in Castellum continues positive", comments CEO,
Lars-Erik Jansson. "Although the outlook for Swedish economy has
improved it has not yet been reflected in Castellum's rental income
and net leasing. However, this is compensated by the low interest
rate level that characterizes the expectant business trend" adds
Lars-Erik Jansson.

Enclosed: Half-year Report January-June 2004

Castellum is one of the major listed real estate companies in Sweden.
The book value of the real estate portfolio amounts to approx. SEK 14
billion, and comprises mainly commercial properties. The real estate
portfolio is owned and managed by six subsidiaries with strong local
roots in five growth regions: Greater Gothenburg, the Öresund Region,
Greater Stockholm, Western Småland and Mälardalen. The Castellum
share is listed on Stockholmsbörsen's O-list.

For further information, please contact
Lars-Erik Jansson, CEO, phone +46 31 60 74 00 / mobile +46 705-92 06
70
Håkan Hellström, CFO/deputy CEO, phone +46 31 60 74 00 / mobile +46
705-60 74 56