Welcome to Kungsleden

Chief Executive Thomas ErséusDeputy Chief Executive Johan Risberg21 October 2010

Kungsleden in brief

■ Owns and manages properties generating high and stable long-term returns– Returns more important than property type and location– Returns cannot be judged without considering risk levels

■ 559 properties reported at SEK 21.8 (21.9) bn as of 30 September 2010 – Commercial properties 43% (46)– Public properties 43% (39)– Modular buildings 7% (7)– Retirement homes Germany 7% (8)

■ 24,700 shareholders. 45% of shares held by private individuals and approximately a quarter by foreign shareholders.– Ten largest shareholders control 19.1% of capital and votes

Profit for calculating dividends 2010 2009

SEK m Jan-Sep Jan-SepGross profit 1,160 1,398

Sales and administration costs -191 -210Net financial position -555 -650

Sub-total 414 538Realised itemsTrading net at divestment 12 -126

Realised value changes, properties 2 1,171Realised value changes, financial instruments -4 -167Sub-total 10 878Taxes payable -45 -400

Profit for calculating dividends 379 1,016

Third quarter in brief

■ Profit for the period generally stable

■ Acquisition of 12 properties for a value of SEK 839 m and a property yield of 7.5%

■ Divestment of 41 properties for SEK 1,028 m and a property yield of 6.5%

■ Rental revenues remain stable despite increased vacancies in six commercial properties.

■ Average fixed-interest term extended from 2.6 to 5.2 years

Customers and lettings

■ New tenants include Mechanum, Isringhausen and Fraktkompaniet

■ New lettings with annual rental value of SEK 53 m

■ Vacancies mainly concentrated on six commercial premises in Burlöv, Kungsbacka, Botkyrka, Sollentuna, Gävle and Umeå

■ Average vacancy of 8.7% for the group (6.2) and 7.0%, excl. the above properties

■ Project Manager hired, upscaled marketing, addressing municipalities, considering potential partnerships, tenant adaptations or conversions

■ Generally positive momentum in letting operations

Current market conditions

■ Kungsleden’s lettings market– Generally stable lettings– Slight increase in vacancies from low levels

■ Financial market– Continued easing on credit market– Strong capital flows to the property sector– Alternative funding sources attractive

■ Transaction market– Recovery with surprisingly high volumes– Continued firm competition over properties– Clearer trend of price increases on properties

Property portfolio

Our properties—by type

Kungsleden’s Q3 2010 in figures

Income Statement

SEK m 2010

Jan-Sept2009

Jan-Sept

Rental revenues 1,577 1,841

Sales revenues, modular buildings 128 174

Net sales 1,705 2,015

Gross profit 1,160 1,398

Trading net 12 -126

Sales and administration costs -191 -210

Net financial position -555 -650

Unrealised value changes -20 -103

Profit before tax 405 309

Tax -88 30

Profit after tax for the period 317 339

Income Statement

SEK m 2010

Jan-Sept2009

Jan-Sept

Rental revenues 1,577 1,841

Sales revenues, modular buildings 128 174

Net sales 1,705 2,015

Gross profit 1,160 1,398

Trading net 12 -126

Sales and administration costs -191 -210

Net financial position -555 -650

Unrealised value changes -20 -103

Profit before tax 405 309

Tax -88 30

Profit after tax for the period 317 339

• Reduction due to part-sale of Public Properties and negative rental indexation for 2010.

• Rental revenues reduced by 2% in like-for-like terms.

Income Statement

SEK m 2010

Jan-Sept2009

Jan-Sept

Rental revenues 1,577 1,841

Sales revenues, modular buildings 128 174

Net sales 1,705 2,015

Gross profit 1,160 1,398

Trading net 12 -126

Sales and administration costs -191 -210

Net financial position -555 -650

Unrealised value changes -20 -103

Profit before tax 405 309

Tax -88 30

Profit after tax for the period 317 339

• Reduced demand due to recession

Income Statement

SEK m 2010

Jan-Sept2009

Jan-Sept

Rental revenues 1,577 1,841

Sales revenues, modular buildings 128 174

Net sales 1,705 2,015

Gross profit 1,160 1,398

Trading net 12 -126

Sales and administration costs -191 -210

Net financial position -555 -650

Unrealised value changes -20 -103

Profit before tax 405 309

Tax -88 30

Profit after tax for the period 317 339

• Down 17%, or 5% excluding Hemsö transaction.

• Indexation and higher snow clearance and heating costs the main reason

Income Statement

SEK m 2010

Jan-Sept2009

Jan-Sept

Rental revenues 1,577 1,841

Sales revenues, modular buildings 128 174

Net sales 1,705 2,015

Gross profit 1,160 1,398

Trading net 12 -126

Sales and administration costs -191 -210

Net financial position -555 -650

Unrealised value changes -20 -103

Profit before tax 405 309

Tax -88 30

Profit after tax for the period 317 339

• Sales price above book value.

Income Statement

SEK m 2010

Jan-Sept2009

Jan-Sept

Rental revenues 1,577 1,841

Sales revenues, modular buildings 128 174

Net sales 1,705 2,015

Gross profit 1,160 1,398

Trading net 12 -126

Sales and administration costs -191 -210

Net financial position -555 -650

Unrealised value changes -20 -103

Profit before tax 405 309

Tax -88 30

Profit after tax for the period 317 339

• Lower admin. mainly because of part-sale to AP3

Income Statement

SEK m 2010

Jan-Sept2009

Jan-Sept

Rental revenues 1,577 1,841

Sales revenues, modular buildings 128 174

Net sales 1,705 2,015

Gross profit 1,160 1,398

Trading net 12 -126

Sales and administration costs -191 -210

Net financial position -555 -650

Unrealised value changes -20 -103

Profit before tax 405 309

Tax -88 30

Profit after tax for the period 317 339

• Positive change mainly explained by lower loan volume in 2010.

Income Statement

SEK m 2010

Jan-Sept2009

Jan-Sept

Rental revenues 1,577 1,841

Sales revenues, modular buildings 128 174

Net sales 1,705 2,015

Gross profit 1,160 1,398

Trading net 12 -126

Sales and administration costs -191 -210

Net financial position -555 -650

Unrealised value changes -20 -103

Profit before tax 405 309

Tax -88 30

Profit after tax for the period 317 339

• Positive value change on properties of SEK 106 m, or 0.5% of book value.

• Negative value change on financial instruments of SEK -127 m, due to falling long yields.

Income Statement

SEK m 2010

Jan-Sept2009

Jan-Sept

Rental revenues 1,577 1,841

Sales revenues, modular buildings 128 174

Net sales 1,705 2,015

Gross profit 1,160 1,398

Trading net 12 -126

Sales and administration costs -191 -210

Net financial position -555 -650

Unrealised value changes -20 -103

Profit before tax 405 309

Tax -88 30

Profit after tax for the period 317 339

• Includes positive effect of property divestments.

Income Statement

SEK m 2010

Jan-Sept2009

Jan-Sept

Rental revenues 1,577 1,841

Sales revenues, modular buildings 128 174

Net sales 1,705 2,015

Gross profit 1,160 1,398

Trading net 12 -126

Sales and administration costs -191 -210

Net financial position -555 -650

Unrealised value changes -20 -103

Profit before tax 405 309

Tax -88 30

Profit after tax for the period 317 339

• Lower figure mainly due to a smaller portfolio after divestments over the past year.

Balance Sheet

SEK m 2010 2009

Assets 30 Sep 31 Dec

Goodwill 201 193

Properties 21,800 21,860

Receivables, etc. 1,701 1,466

Cash and cash equivalents 636 689

Total assets 24,338 24,208

Equity and liabilities

Equity 6,818 7,079

Interest-bearing liabilities 13,898 14,437

Non-interest-bearing liabilities 3,622 2,692

Total equity and liabilities 24,338 24,208

Maturity structure, interest fixings

As of 30 September 2010Loan, SEK

m

Interest derivatives,

SEK mAve.

interest, %Average fixed interest

term, years2010 13,8882011 – –2012 400 4.42013 3,800 4.1

2014 2,100 4.22015 3,600 4.22016 1,000 4.3

2017 300 4.52018 3,550 4.3Total derivatives 14,750 5.2Total loans 13,888 5.2

Market value of loans and derivatives 1,275Total 15,163

Maturity structure, credits (including un-utilised credit facilities)As of 30 September 2010

Utilised credits, SEK

m Un-utilised

credits, SEK mTotal

credits, SEK m2010 580 310 8902011 1,503 344 1,8462012 8,607 3,300 11,9072013 2,166 2,166

2015 399 3992018 633 633Total 13,888 3,954 17,841

Average conversion term, years 2.2 2.0

Equity ratio30 Sep 10

28%31 Dec 09

29% 30 Sep 09

30%Mortgage ratio 64 66 64

Underlying profits, 2000-Q3 2010

10 largest shareholders (% of votes & capital)

■ Nordea fonder 3.3■ Länsförsäkringar fonder 2.8■ SHB fonder 2.3■ Olle Florén and companies 2.3■ Norwegian Government 1.9■ Danske Invest fonder (Sweden) 1.4■ AP4 1.4■ Swedbank Robur Fonder 1.3■ AP2 1.3■ Avanza Pension Försäkring AB 1.1

19.1Source: SIS Ägarservice

Focus for the remainder of 2010

■ Focus on cash flow, enhancing the portfolio and long agreements■ Measures ongoing in a limited number of properties with somewhat

higher vacancy levels■ Financial room to act—broader base of alternative funding sources■ Work on creating a standalone Hemsö continues as planned■ Sharp increase in activity and interest in properties should benefit

Kungsleden

The share to end of October 2010

Total yield to end of October 2010

Any questions?