Gothenburg, October 21, 1999

 

Castellum´s profit after three quarters increased to SEK 349 million

 
Net income after tax for January-September 1999 amounts to SEK 349 million compared with SEK 263 million for the corresponding period 1998.

The earnings per share were SEK 6.98 compared with SEK 5.26 during the corresponding period previous year.

Income from property management improved 25 % compared with the corresponding period previous year.

The net income after tax for January-September 1999 amounts to SEK 349 million equivalent to SEK 6.98 per share. The cash flow including capital gain from property sales amounts to SEK 449 million equivalent to SEK 8.98 per share.

The improvement in net income is made up of both increased income from property management and increased capital gain on property sales. The income from property management, i.e. the net income for the period excluding capital gain from property sales, amounted to SEK 242 million compared with SEK 194 million during January-September 1998, an improvement of 25 %. The earnings improvement has been achieved through increased rental income as well as lower property costs and financial expenses. Acquisitions and investments in existing properties have also contributed to the increase in profit. During January-September properties were sold for a total of SEK 411 million with a capital gain of SEK 107 million, compared with SEK 69 million during the corresponding period last year. The period´s acquisitions and investments amount to approximately SEK 1,000 million, which is more than a redoubling against previous year.

-"The market development is still favourable and the demand for high quality premises is increasing", says Castellum´s president, Thomas Alexandersson. "In addition to this year´s acquisitions we have ongoing or decided projects of about SEK 800 million, where the greater part of the area is already let. We continue the improvement of income from property management in the existing portfolio and sell mature properties with capital gain."

 

Enclosed: Interim Report January - September 1999

 

 
For further information, please contact
Håkan Hellström, CFO, tel +46 31 60 74 00 / mobile +46 705 60 74 56