Agat Ejendomme

Earnings Release • Apr 28, 2011

Company announcement no. 3/2011

Aalborg, Denmark, 2011-04-28 08:56 CEST (GLOBE NEWSWIRE) -- Summary

-- TK Development recorded a profit of DKK 73.6 million after tax, compared to
DKK 25.4 million the year before. This performance meets expectations.
-- In light of the prevailing market situation, Management considers the
profit for the year satisfactory.
-- Consolidated equity totalled DKK 1,866.0 million at 31 January 2011,
corresponding to a solvency ratio of 40.4 %.
-- The Group's 10,900 m² retail park in Uppsala, Sweden, was completed and
opened fully let in March 2010. The retail park was sold, based on forward
funding, and handed over to the investor, an institutional fund of German
IVG Funds, in April 2010.
-- The first phase of the Group's retail park in Danderyd, Sweden, with a
total floor space of 12,700 m² was completed and opened fully let in
October 2010. The retail park was sold on the basis of forward funding and
handed over to the investor, the German investment fund Commerz Real, in
January 2011.
-- In addition, the Group has sold several plots of land, including the sale
to a private investor of residential development rights for about 8,000 m²
of the Group's land at Østre Havn, Aalborg, Denmark.
-- The Group handed over total projects of about 42,500 m² in the 2010/11
financial year.
-- The Group's Sillebroen shopping centre in Frederikssund, Denmark, opened as
planned on 25 March 2010. The shopping centre has a current occupancy rate
of 93 %, and negotiations with tenants for the remaining premises are
ongoing. The shopping centre is performing satisfactorily, with a
satisfactory influx of customers that meets expectations.
-- The Group's total project portfolio amounted to DKK 3,425 million at 31
January 2011, of which DKK 2,107 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 146 million, equal to a return on cost of
about 7 %. Negotiations for the sale of several of these projects are
ongoing.
-- In August 2010, the Group took over the development of a 5,400 m² property
project at Trøjborgvej in Århus, Denmark. Construction, which started on
the fully financed project at the end of 2010, is being carried out in
cooperation with Nordica Real Estate A/S via a jointly owned project
company in which the Group has a 20 % stake.
-- In conjunction with the takeover of the Trøjborgvej project in Århus,
Denmark, the Group sold two completed retail parks to the jointly owned
project company.
-- Based on satisfactory pre-construction letting, TK Development began
building the second phase of the Fashion Arena Outlet Center, Prague, the
Czech Republic, of about 7,000 m² in April 2010. Construction progressed as
planned, and the second phase opened on schedule in October 2010.
-- Construction started on a 10,000 m² extension to the Group's Czech
investment property, the Futurum Hradec Králové shopping centre, in January
2011, with the opening scheduled for spring 2012. The current occupancy
rate is 84 %.
-- At 31 January 2011, the Group's project portfolio comprised 933,000 m² (31
January 2010: 957,000 m²).
-- Since the beginning of 2010, the market situation has developed favourably.
The general investment climate is marked by cautious optimism and a higher
propensity to invest. There is increasing demand for real property from
investors who continue to attach crucial importance to quality and
location.
-- Management believes that land prices, construction costs, rental rates and
property prices have stabilized at a new level. The new price levels
underpin the profitability of future property development, and new projects
in the portfolio are expected to generate a normal profit.
-- An Extraordinary General Meeting was held on 1 July 2010, at which the
General Meeting resolved to carry out a capital increase in the form of a
rights issue with total gross proceeds of DKK 210.3 million. The capital
increase was implemented in August 2010.
-- The capital increase has placed TK Development in a stronger position to
seize the project opportunities in the present market.
-- For the 2011/12 financial year, the Group still expects to generate a
profit after tax of about DKK 100 million.
-- The Group has a strong project portfolio that underpins expectations for
another and higher earnings level in the following years.
-- The Supervisory Board has adopted a dividend policy with the long-term aim
of distributing a portion of the year's profit as dividends or
alternatively via a share repurchase programme. This will always be done
with due regard for the Group's capital structure, solvency, cash resources
and investment plans.

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 this preliminary announcement of financial statements.

The full announcement is attached.