Gothenburg, January 27, 2005

Castellum proposes an increased dividend of SEK 9.50

Rental income for 2004 amounted to SEKm 1,856 (1,758).

Net income after tax for the year amounted to SEKm 586 (526) equivalent to SEK 14.29 (12.83) per share.

Income from property management per share improved by 12% to SEKm 609 (545) equivalent to SEK 14.85 (13.29) per share.

The Board proposes an increased dividend of SEK 9.50 (8.50) per share.

Net income from property management during the year, i.e. net income excluding capital gains from property sales, write downs and tax, amounted to SEKm 609 (545), equivalent to SEK 14.85 (13.29) per share. The improvement of 12% has been achieved mainly through lower interest rate levels. Cash flow from property management totalled SEKm 745 (672), equivalent to SEK 18.17 (16.39) per share - an improvement of 11% compared with previous year.

During 2004, 28 (24) properties were sold for a total of SEKm 494 (397), with a capital gain of SEKm 190 (180). Castellum’s net income after tax for the year was SEKm 586 (526), equivalent to SEK 14.29 (12.83) per share.

Acquisitions and investments during 2004 amounted to SEKm 1,268 compared with SEKm 1,108 during 2003.

The property valuation at the year-end indicates an increase in Castellum’s portfolio of approx. 3%. Net asset value before tax may be calculated to SEKm 10,085, equivalent to SEK 246 per share, while the net asset value after a 28% tax deduction may be calculated to SEKm 8,317, equivalent to SEK 203 per share.

"I’m very pleased with the net income for the year 2004 and that all our overall objectives were achieved" comments Castellum’s CEO, Lars-Erik Jansson. "I estimate that the demand for premises in our submarkets has reached the bottom. Rental levels have been relatively stable, yet there is a continued high pace of change in the business environment, resulting in terminations which implied a negative net leasing for the year", adds Lars-Erik Jansson

At today’s meeting, the Board of Directors decided to propose to the Annual General Meeting a dividend of SEK 9.50 per share and Wednesday, March 30, 2005 as record day for dividend. The Board also decided to propose that the AGM would re-authorize the Board to decide on purchase and transfer of own shares.

The Board of Castellum AB has decided that the current incentive programme for the management and other senior executives shall be extended on essentially unchanged conditions. The programme, which includes nine people in all lasts for three years and consists of one part based on the development of the share price as well as one part based on the earnings trend of the company. Any bonus payable will be paid out as salary and at least half of the net pay shall be used for purchase of Castellum shares.



Enclosure: Year-end Report 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 15 billion, and comprises mainly 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, 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