Chief Executive Thomas Erséus

Deputy Chief Executive Johan Risberg

19 August 2010

Kungsleden in brief

■ Owns and manages properties generating high and stable long-term

returns

– Returns more important than property type and location

– A property’s yield cannot be judged without considering risk levels

■ 559 properties reported at SEK 21.9 bn. as of 30 June 2010 (21.9)

– Commercial properties 43% (46)

– Public properties 43% (39)

– Modular buildings 7% (7)

– Retirement homes Germany 7% (8)

■ Just over 25,800 shareholders. 47% of shares held by private

individuals and approximately a quarter by foreign shareholders

– Ten largest shareholders control 17.5% of capital and votes

Profit for calculating dividends

2010 2009

SEK m Jan-Jun Jan-Jun

Gross profit 752 954

Sales and administration costs -137 -152

Net financial position -364 -475

Sub-total 252 327

Realised items

Trading net at divestment 14 -128

Realised value changes, properties -13 1,177

Realised value changes, financial instruments -4 -158

Sub-total -3 891

Taxes payable -30 -360

Profit for calculating dividends 219 858

Clarified dividend policy

■ The Board’s ambition is to maintain stable dividends with a high pay-

out ratio. The policy implies that dividends shall amount to 50 per

cent of profit for calculating dividends.

■ When judging the amount of dividends, consideration will be given

to the company’s investment need, capital structure and financial

position otherwise

Second quarter in brief

■ Profit in line with expectations

■ Acquisition of 10 properties for a value of approximately SEK 800 m

and a property yield of 7.4%

■ Divestments of 9 properties for about SEK 300 m at a property yield

of 5.7%

■ Slight increase in vacancies, but rental revenues remained stable

■ Five-year bond loan issued of around SEK 400 m

Current market conditions

■ Kungsleden’s lettings market

– Lettings remain stable

– Slight increase in vacancies from low levels

■ Financial market

– Greater willingness to invest from banks

– Increased inflow of capital to the property sector

– More interest in alternative funding sources

■ Transaction market

– Recovery, with surprisingly high volumes

– Greater competition over properties

– Prospects for a price increase on properties

Property portfolio

Our properties—by type

Kungsleden’s Q2 – 2010 in figures

Income Statement

SEK m.

2010

Jan-Jun

2009

Jan-Jun

Rental revenues 1,062 1,301

Sales revenues, modular buildings 80 138

Net sales 1,142 1,439

Gross profit 752 954

Trading net 14 -128

Sales and administration costs -137 -152

Net financial position -364 -475

Unrealised value changes -98 -34

Profit before tax 168 164

Tax -30 72

Profit after tax for the period 137 237

Income Statement

SEK m

2010

Jan-Jun

2009

Jan-Jun

Rental revenues 1,062 1,301

Sales revenues, modular buildings 80 138

Net sales 1,142 1,439

Gross profit 752 954

Trading net 14 -128

Sales and administration costs -137 -152

Net financial position -364 -475

Unrealised value changes -98 -34

Profit before tax 168 164

Tax -30 72

Profit after tax for the period 137 237

• Decrease due to part-

sale of Public

Properties and

negative rental index

for 2010

• Rental revenues

decreased by 1% in

like-for-like terms

Income Statement

SEK m

2010

Jan-Jun

2009

Jan-Jun

Rental revenues 1,062 1,301

Sales revenues, modular buildings 80 138

Net sales 1,142 1,439

Gross profit 752 954

Trading net 14 -128

Sales and administration costs -137 -152

Net financial position -364 -475

Unrealised value changes -98 -34

Profit before tax 168 164

Tax -30 72

Profit after tax for the period 137 237

• Reduced demand

due to the recession

Income Statement

SEK m

2010

Jan-Jun

2009

Jan-Jun

Rental revenues 1,062 1,301

Sales revenues, modular buildings 80 138

Net sales 1,142 1,439

Gross profit 752 954

Trading net 14 -128

Sales and administration costs -137 -152

Net financial position -364 -475

Unrealised value changes -98 -34

Profit before tax 168 164

Tax -30 72

Profit after tax for the period 137 237

• Decreased by 21%

• Excluding the effect

of the Hemsö

transaction, operating

net decreased by 4%

Income Statement

SEK m.

2010

Jan-Jun

2009

Jan-Jun

Rental revenues 1,062 1,301

Sales revenues, modular buildings 80 138

Net sales 1,142 1,439

Gross profit 752 954

Trading net 14 -128

Sales and administration costs -137 -152

Net financial position -364 -475

Unrealised value changes -98 -34

Profit before tax 168 164

Tax -30 72

Profit after tax for the period 137 237

• The sales price

exceeds the book

value

Income Statement

SEK m

2010

Jan-Jun

2009

Jan-Jun

Rental revenues 1,062 1,301

Sales revenues, modular buildings 80 138

Net sales 1,142 1,439

Gross profit 752 954

Trading net 14 -128

Sales and administration costs -137 -152

Net financial position -364 -475

Unrealised value changes -98 -34

Profit before tax 168 164

Tax -30 72

Profit after tax for the period 137 237

• Lower administration costs

mainly due to the part-sale to

AP3

Income Statement

SEK m

2010

Jan-Jun

2009

Jan-Jun

Rental revenues 1,062 1,301

Sales revenues, modular buildings 80 138

Net sales 1,142 1,439

Gross profit 752 954

Trading net 14 -128

Sales and administration costs -137 -152

Net financial position -364 -475

Unrealised value changes -98 -34

Profit before tax 168 164

Tax -30 72

Profit after tax for the period 137 237

• Positive change

primarily explained by

lower loan volume in

2010

Income Statement

SEK m

2010

Jan-Jun

2009

Jan-Jun

Rental revenues 1,062 1,301

Sales revenues, modular buildings 80 138

Net sales 1,142 1,439

Gross profit 752 954

Trading net 14 -128

Sales and administration costs -137 -152

Net financial position -364 -475

Unrealised value changes -98 -34

Profit before tax 168 164

Tax -30 72

Profit after tax for the period 137 237

• Positive value change

on properties of SEK

96 m., corresponding

to 0.4% of book value

• Negative value

change on financial

instruments resulting

from falling long

yields

Income Statement

SEK m

2010

Jan-Jun

2009

Jan-Jun

Rental revenues 1,062 1,301

Sales revenues, modular buildings 80 138

Net sales 1,142 1,439

Gross profit 752 954

Trading net 14 -128

Sales and administration costs -137 -152

Net financial position -364 -475

Unrealised value changes -98 -34

Profit before tax 168 164

Tax -30 72

Profit after tax for the period 137 237

• Includes positive

effect of property

divestments

Income Statement

SEK m

2010

Jan-Jun

2009

Jan-Jun

Rental revenues 1,062 1,301

Sales revenues, modular buildings 80 138

Net sales 1,142 1,439

Gross profit 752 954

Trading net 14 -128

Sales and administration costs -137 -152

Net financial position -364 -475

Unrealised value changes -98 -34

Profit before tax 168 164

Tax -30 72

Profit after tax for the period 137 237

• Lower figure mainly

due to negative

unrealised value

changes on financial

instruments

Balance Sheet

SEK m 2010 2009

Assets 30 Jun 31 Dec

Goodwill 201 193

Properties 21,866 21,860

Receivables, etc. 1,619 1,466

Cash and cash equivalents 631 689

Total assets 24,318 24,208

Equity and liabilities

Equity 6,657 7,079

Interest-bearing liabilities 14,153 14,437

Non-interest-bearing liabilities 3,509 2,692

Total equity and liabilities 24,318 24,208

Interest fixingsAs of 30 Jun 2010

Interest maturity Loan, SEK m

Interest

derivatives,

SEK m Proportion, %

Ave. interest,

%

2010 14,139 7,350 47.8 5.9

2011 – – –

2012 400 2.8 4.4

2013 2,000 14.1 4.2

2014 1,500 10.6 4.2

2015 1,800 12.7 4.3

2016 400 2.8 4.4

2017 300 2.1 4.5

2018 1,000 7.1 4.5

Total 14,139 14,750 100.0 5.0

Market value of loans and derivatives 1,339

Total 15,478

Maturity structureAs of 30 Jun 2010

Average

conversion term,

yearsYear

Credits,

SEK m Proportion, %

2010 893 5.0

2011 1,857 10.4

2012 11,919 66.6

2013 2,169 12.1

2015 399 2.2

2018 656 3.7

Total credits 17,893 100 2.3

Un-utilised credit facilities -3,754

Total utilised credit facilities 14,139 2.4

Equity ratio

30 Jun 10

27%

31 Dec 09

29%

30 Jun 09

29%

Mortgage ratio 64 66 65

Underlying profits, 2000 - Q2, 2010

10 largest shareholders (% of votes & capital)

■ Florén, Olle and companies 2.3

■ Nordea fonder 2.1

■ Norwegian Government 2.0

■ SHB fonder 2.0

■ SEB fonder 1.8

■ Danske Invest fonder (Sweden) 1.8

■ Länsförsäkringar fonder 1.6

■ Avanza Pension Funds 1.4

■ Second Swedish Nat’l Pension fund 1.3

■ Swedbank Robur fonder 1.2

17.5

Source: SIS Ägarservice

Ongoing outlook for 2010

■ Focus on cash flow, enhancing the portfolio and long agreements

■ Increased activity on the transaction market should favour

Kungsleden

■ Reiterating the estimate of profit for calculating dividends of SEK

600 m

■ Ensure financial flexibility to act

■ Extend the base of funding sources

■ Prepare Hemsö for standalone status

The share to mid-August 2010

Total yield to mid-August 2010

Any questions?