Agat Ejendomme

Earnings Release • Sep 29, 2011

Company announcement no. 16/2011

Aalborg, Denmark, 2011-09-29 08:54 CEST (GLOBE NEWSWIRE) --

Summary

-- During the first six months of the 2011/12 financial year, TK Development
recorded a profit after tax of DKK 16.9 million against DKK 6.2 million in
the same period the year before.

-- Consolidated equity totalled DKK 1,881.9 million at 31 July 2011,
corresponding to a solvency ratio of 41.6 %.

-- In the first quarter of 2011/12, the Group entered into an agreement for
the sale of its retail park in Kristianstad, Sweden, to a Swedish investor.
The total project comprises about 6,200 m², including the existing building
of about 4,500 m², which was handed over to the investor in April 2011.

-- In June 2011, the Group sold its stake in Euro Mall Centre Management to
the US Group CB Richard Ellis. This sale was recognized in Q2 2011/12.

-- Construction started on a 10,000 m² extension to the Group's Czech
investment property, the Futurum Hradec Králové shopping centre, in January
2011 and is progressing as planned. The opening is scheduled for spring
2012.The extension has an occupancy rate of currently 92 %.

-- In Poland, the construction of 5,600 m² of office space in the Tivoli
Residential Park, Warsaw, was completed in August 2011. About 3,500 m² of
the total office premises has been sold to a user, and sales agreements
have been concluded for 93 % of the remaining 2,100 m². The units are
expected to be handed over to the buyers in the course of Q3 2011/12.

-- Construction of the first phase of the Group's project in Bielany, Poland,
commenced in mid-2011. The total project area comprises about 56,200 m²,
primarily housing, consisting of 900-1,000 units, with about 140 units to
be built in the first phase. The pre-completion sale of the units started
in spring 2011.

-- The Group's letting situation remains satisfactory, and its completed
shopping centres continue to perform well with a satisfactory influx of
customers.

-- The Group's total project portfolio amounted to DKK 3,407 million at 31
July 2011, of which DKK 2,071 million is attributable to projects that have
been completed and thus generate cash flow. The annual net rent from the
current leases amounts to DKK 144 million, equal to a return on cost of
about 7 %. Based on full occupancy, the return on cost is expected to reach
about 7.7 %. Negotiations for the sale of several of these projects are
ongoing.

-- In total, the Group's completed, cash-flow-generating projects and its
investment properties amount to DKK 2,433 million. The Group's net
interest-bearing debt amounts to DKK 2,186 million.

-- At 31 July 2011, the Group's project portfolio comprised 981,000 m² (31
January 2011: 933,000 m²).

-- The renewed uncertainty on the international financial markets has
prolonged the decision-making process of finance providers and investors.
Against this background, the Group has postponed the expected construction
start dates for several projects.

-- The profit after tax for 2011/12 is still expected to amount to about DKK
100 million, corresponding to the previously announced profit estimate.
However, renewed unrest on the international financial markets, which has
lengthened the sales process for the Group's completed projects, makes this
profit estimate subject to some uncertainty.

-- Based on a strong project portfolio, Management has previously announced
expectations for a different, higher earnings level for the following
years. Management still considers the project portfolio to be strong, but
the renewed unrest on the international financial markets means that the
profit forecast, including the timing of projects, is too uncertain to
uphold the previously announced expectations.

Further information is available from Frede Clausen, President and CEO, on tel.
+45 8896 1010.

The expectations for future developments presented in this announcement,
including earnings expectations, are naturally subject to risks and
uncertainties and may be affected by various factors, such as global economic
conditions and other significant issues, including credit-market, interest-rate
and foreign-exchange developments. Reference is also made to the section “Risk
issues” in the Group's 2010/11 Annual Report.