Gothenburg, January 26, 2006

Castellum’s income from property management improved by 11% and an improved dividend of SEK 10.50 per share is proposed

Rental income for 2005 amounted to SEKm 1,907 (SEKm 1,856 previous year).

Net income after tax for the year amounted to SEKm 1,294 (916), equivalent to SEK 31.56 (22.34) per share.

Income from property management improved by 11% to SEKm 820 (741), equivalent to SEK 20.00 (18.07) per share.

The Board proposes a dividend of SEK 10.50 (9.50) per share and a 4:1 share split by which one old share will be replaced by four new shares.

Income from property management for the year, i.e. net income excluding changes in value and tax, amounted to SEKm 820 (741), equivalent to SEK 20.00 (18.07) per share. The improvement is 11% and has been achieved chiefly through a larger real estate portfolio and lower interest rate levels. During the year changes in value on properties and derivatives amounted to, respectively SEKm 932 (660) and SEKm -40 (-146).

During the year investments totalling SEKm 1,357 (1,268) were made, of which SEKm 760 (848) were acquisitions and SEKm 597 (420) investments in existing properties. Further, 28 (24) properties were sold for a total of SEKm 468 (494).

"I’m very pleased with the result for the year 2005 and that our objective of an annual growth in income from property management of at least 10%, was achieved" comments Castellum’s CEO, Håkan Hellström. "The positive trend in net leasing, together with previous year’s investments of SEK 1.4 billion which will have full effect on the result, makes me look with confidence on 2006", adds Håkan Hellström.

At today’s meeting, the Board of Directors decided on the following proposals for the Annual General Meeting:

– a dividend of SEK 10.50 per share and Tuesday, March 28, 2006 as record day for dividend,

– a 4:1 share split by which one old share will be replaced by four new shares,

– a renewed mandate for the Board to decide on purchase and transfer of own shares,

– to adopt a new Articles of Association due to the proposed share split and the new Companies Act.


The nomination committee has decided to propose re-election of Jan Kvarnström, Marianne Dicander Alexandersson, Ulla-Britt Fräjdin-Hellqvist, Mats Israelsson, Stig-Arne Larsson and Göran Lindén and new-election of Christer Jacobson to the Board of Directors. Jan Kvarnström is proposed as chairman of the Board. Remuneration to the Board of Directors is proposed to SEK 1,600,000, of which SEK 400,000 to the Chairman and SEK 200,000 to each one of the other Directors.

Enclosure: Year-end Report 2005

Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to approx. SEK 20 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, Mälardalen and Western Småland. The Castellum share is listed on Stockholmsbörsen’s O-list, Attract 40.

For further information, please contact
Håkan Hellström, CEO, phone +46 31 60 74 00 / mobile +46 705-60 74 56

Gothenburg, January 26, 2006

 
Castellum’s income from property management improved by 11% and an improved dividend of SEK 10.50 per share is proposed

• Rental income for 2005 amounted to SEKm 1,907 (SEKm 1,856 previous year).
• Net income after tax for the year amounted to SEKm 1,294 (916), equivalent to SEK 31.56 (22.34) per share.
• Income from property management improved by 11% to SEKm 820 (741), equivalent to SEK 20.00 (18.07) per share.
• The Board proposes a dividend of SEK 10.50 (9.50) per share and a 4:1 share split by which one old share will be replaced by four new shares.

Income from property management for the year, i.e. net income excluding changes in value and tax, amounted to SEKm 820 (741), equivalent to SEK 20.00 (18.07) per share. The improvement is 11% and has been achieved chiefly through a larger real estate portfolio and lower interest rate levels. During the year changes in value on properties and derivatives amounted to, respectively SEKm 932 (660) and SEKm -40 (-146).

During the year investments totalling SEKm 1,357 (1,268) were made, of which SEKm 760 (848) were acquisitions and SEKm 597 (420) investments in existing properties. Further, 28 (24) properties were sold for a total of SEKm 468 (494).

"I’m very pleased with the result for the year 2005 and that our objective of an annual growth in income from property management of at least 10%, was achieved" comments Castellum’s CEO, Håkan Hellström. "The positive trend in net leasing, together with previous year’s investments of SEK 1.4 billion which will have full effect on the result, makes me look with confidence on 2006", adds Håkan Hellström.


At today’s meeting, the Board of Directors decided on the following proposals for the Annual General Meeting:

– a dividend of SEK 10.50 per share and Tuesday, March 28, 2006 as record day for dividend,

– a 4:1 share split by which one old share will be replaced by four new shares,

– a renewed mandate for the Board to decide on purchase and transfer of own shares,

– to adopt a new Articles of Association due to the proposed share split and the new Companies Act.


The nomination committee has decided to propose re-election of Jan Kvarnström, Marianne Dicander Alexandersson, Ulla-Britt Fräjdin-Hellqvist, Mats Israelsson, Stig-Arne Larsson and Göran Lindén and new-election of Christer Jacobson to the Board of Directors. Jan Kvarnström is proposed as chairman of the Board. Remuneration to the Board of Directors is proposed to SEK 1,600,000, of which SEK 400,000 to the Chairman and SEK 200,000 to each one of the other Directors.


Enclosure: Year-end Report 2005


Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to approx. SEK 20 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, Mälardalen and Western Småland. The Castellum share is listed on Stockholmsbörsen’s O-list, Attract 40.


For further information, please contact
Håkan Hellström, CEO, phone +46 31 60 74 00 / mobile +46 705-60 74 56