J A N U A R Y - M A R C H 2020

INTERIM REPORT

"K-Fastigheter retains the previously communicated operational and financial targets. In fact, we accelerated the roll-out of planned initiatives during the quarter."

Göteborg Sävenäs 131:13, where construction commenced in March 2020, comprises a total of 192 apartments and 201 parking spaces and is K-Fastigheter's largest project to date.

K-FASTIGHETER IN ONE MINUTE

With commitment at all levels, K-Fast Holding AB ("K-Fastigheter") creates attractive homes offering a high degree of comfort. The Group has developed its own housing concepts meeting demands for better housing from tenants and social planners. To increase cost efficiency and shorten construction times, the Company works with three concept buildings that are constructed solely for long-term ownership and active property management: Low-Rise, Lateral Low-Rise and Apartment Blocks.

The Group holds a strong position in the Öresund region and in selected towns and cities in southern and western Sweden. Our vision is to become one of the Nordic region's largest players and a leading property owner of sustainably constructed, innovative and cost-efficient concept buildings meeting the wishes and requirements of tenants seeking to establish a home for many years to come. The housing offered by the Group is to be distinguished by the best combination of high standard, home comfort and security in the market.

Responsiveness in our dialogue with customers, suppliers and employees generates conditions for continued development towards better and more efficient homes in all regards, forming the foundation of K-Fastigheter's business model. In this way, the Company's combined experience and knowledge is applied and re-used in project development, construction processes and property management alike. Standardization, implementation of smart and sustainable solutions, as well as skills and relationships with key stakeholders are crucial factors for K-Fastigheter's continued growth.

K-Fastigheter is a project development, construction and property company focused primarily on rental housing properties, which, as of 31 March 2020, accounted for 89 percent of the property value of the completed property portfolio and for 84 percent of the contractual rent. As per 31 March 2020, K-Fastigheter's property portfolio encompasses a lettable area of approximately 137,000 square meters distributed between more than 1,800 homes and 125 commercial contracts with an annual rental value of approximately SEK 210 million. The project portfolio comprises more than 3,650 apartments under construction and in project development.

Based in Hässleholm, Sweden, and with local offices in strategically selected locations, K-Fastigheter currently has some 70 employees. K-Fast Holding AB's class B-share has been listed on the Nasdaq Stockholm exchange since November 2019 under the ticker KFAST B. The largest shareholder is Jacob Karlsson AB, Erik Selin Fastigheter Aktiebolag and Länsförsäkringar funds.

OVERARCHING OBJECTIVES

K-Fastigheter's overarching objective is to generate value for the Company's shareholders. Over a business cycle, the generation of value is measured as growth in long-term net asset value per share.

OPERATIONAL TARGETS

In the long term, rental income from housing is to comprise at least 80 percent of K-Fastigheter's total rental income.
The number of apartments to be managed by the Company and on which construction has commenced is to amount to 1,000 annually before the end of 2023.
At the end of 2023, K-Fastigheter is to manage at least 5,000 apartments in the Nordic region.

FINANCIAL TARGETS

Over an economic cycle, growth in long-term net asset value per share is to average at least 20 percent annually, including any value transfers.
Over an economic cycle, annual growth in profit per share from property management is to average at least 20 percent.

The target is for growth in net asset value and profit from property management to be generated while maintaining a stable and sound financial position and with balanced financial risk-taking, meaning that:

Over time, the equity/assets ratio at Group level is not to be less than 25 percent.
Over time, the interest coverage ratio is not to be less than a multiple of 1.75.
Over time, the loan-to-assets ratio is not to exceed 70 percent relative the market value of the Group's investment properties .

NUMBER OF HOMES UNDER MANAGEMENT

NUMBER OF HOMES IN PRODUCTION

INVESTMENT PROPERTIES

5,039.5 4,396.7

SEK MILLION Q1 2020

SEK MILLION Q4 2019

LONG-TERM NET ASSET VALUE

MORE THAN A PROPERTY COMPANY

K-Fastigheter is a project development, construction and property company that, applying a cross-functional approach, achieves profitability at each stage. For the period January to March 2020, the Group reports 25 percent of its profit before tax in the property related operations, meaning that as much as 75 percent is related to other operations, the most significant of which are project development and construction.

K-Fastigheter has a strong business model affording the company a unique position compared to most property companies. The Group maintains proprietary project development and construction operations, which creates the right conditions for creating internally driven growth in attractive rental apartments for long-term management and a strong cash flow.

The result is K-Fastigheter's own concept buildings, offering favorable operating finances and high-quality rental apartments and also commercial premises to a lesser degree. Through standardization and by implementing intelligent and sustainable solutions, as well as being responsive in our dialogue with customers, suppliers and employees, K-Fastigheter fosters the conditions needed for continued development towards homes that are better and more efficient in all regards.

THE QUARTER IN BRIEF

January - March

Rental income amounted to SEK 47.8 million (33.0) for the period, an increase of 45 percent year-on-year. Of the increase of SEK 14.8 million, 46 percent was derived from properties acquired in the period, 53 percent from rental income from completed properties, and 1 percent from increased rental income from comparable holdings.
Income from project development and construction operations totaled SEK 86.4 million (58.8), of which SEK 4.6 million (1.5) related to external projects.
Consolidated gross profit for the period amounted to SEK 31.3 million (21.5), of which operating surplus attributable to property management amounted to SEK 30.5 million (21.7).
Profit before changes in value for the period amounted to SEK 8.4 million (5.9).
Profit from property management amounted to SEK 15.5 million (11.1), corresponding to SEK 0.46 per share (0.44), representing an increase in profit from property management per share of 3 percent year-onyear.
Unrealized changes in value for investment properties amounted to SEK 121.4 million (47.6) and for derivatives and others to SEK -13.8 million (1.9).
Profit after tax for the period amounted to SEK 92.3 million (43.4), corresponding to SEK 2.72 per share (1.73), which is an increase of 57 percent compared to the corresponding period of the previous year.
At the end of the period, the value of the investment properties amounted to SEK 5,039.5 million (4,396.7) which is an increase of 15 percent compared to 31 December 2019.
At the end of the period, the long-term net asset value (NAV) amounted to SEK 2,668.2 million (2,540.2), corresponding to SEK 78.74 per share (74.96), which is an increase of 5 percent compared with 31 December 2019.

Financial ratios (see definitions on page 26)	2020 Jan-Mar	2019 Jan-Mar	2019 Jan-Dec
Rental income, SEK million	47.8	33.0	156.8
Profit from property management, SEK million	15.5	11.1	52.9
Profit after tax for the period, SEK million	92.3	43.4	365.3
Net investments in investment properties, SEK million	509.2	137.5	1,061.1
Investment properties, SEK million	5,039.5	3,203.0	4,396.7
Long-term net asset value (NAV), SEK million	2,668.2	1,275.1	2,540.2

Number of apartments under management	1,789	1,240	1,711
Number of apartments under construction	963	649	700
Number of apartments under project development	2,692	679	1,340
Interest coverage ratio, multiple	2.4	2.6	2.6
Equity/assets ratio, %	40.5%	29.1%	41.8%
Loan-to-value ratio, %	48.2%	60.9%	40.2%

Profit from property management, SEK per share	0.46	0.44	2.05
Growth in profit from property management per share, %	3.1%	25.9%	24.6%
Long-term net asset value (NAV), SEK per share	78.74	51.01	74.96
Growth in long-term net asset value (NAV), per share, %	5.0%	5.1%	54.4%
Earnings per share, SEK*	2.72	1.73	14.14

* Since the number of shares has not been diluted, the earnings per share apply both before and after dilution.

Significant events in the first quarter of 2020

On 2 January 2020, K-Fastigheter took possession of the Växjö Örnen 34 property, the first of two acquisitions agreed with the Boro Group during 2019. The acquisitions encompassed a total of 13,091 square metres distributed between 171 apartments situated in the former Folkets Park in central Växjö and have a total rental value of approximately SEK 24.0 million. The purchase price totaled SEK 484.0 million. Tenants will move into the newly built apartments in five stages between December 2019 and September 2020. K-Fastigheter took possession of the properties on 2 January, encompassing a total of 5,650 square metres distributed between 70 apartments. Tenants will be moving in gradually during the spring. The rental value for stage one amounts to approximately SEK 10.0 million. K-Fastigheter is scheduled to take possession of the second part of the acquisition on 30 April 2020.
On 15 January 2020, K-Fastigheter took possession of the Helsingborg Amerika Norra 54 property. The property, which is situated adjacent to K-Fastigheter's student accommodation Amerika Södra 27 in the Söder district of Helsingborg, comprises 1,878 square metres of housing, distributed between 28 apartments, and 759 square metres of commercial space distributed between five commercial agreements. Rental value, approximately SEK 3.8 million. Purchase price, SEK 58.0 million.
During the first quarter, K-Fastigheter acquired the following building rights:
- On 31 January 2020, K-Fastigheter took possession of the building rights for the Göteborg Sävenäs 131:13 property adjacent to the Östra Sjukhuset hospital in Gothenburg. On a neighboring property, K-Fastigheter commenced construction of 103 Lateral Low-Rise apartments in the third quarter of 2019. The building rights encompasses construction of approximately 12,250 square metres distributed between 192 Low-Rise apartments. Construction commenced in the first quarter 2020. Estimated rental value, approximately SEK 28.4 million. Purchase price, SEK 80.0 million.
- On 12 February 2020, K-Fastigheter signed an agreement relating to the acquisition of the building rights for Hässleholm 88:1, which is located in the T4 area of Hässleholm. The building rights encompass an Apartment Block with a gross area of approximately 1,300 square metres distributed between 20 apartments. Possession and construction scheduled to commence during 2021. Rental value, approximately SEK 2.2 million. Purchase price, SEK 2.5 million.
- On 12 March 2020, K-Fastigheter signed an agreement relating to the acquisition of the building rights for Borås Åkermyntan 5 in the Bergsäter neighborhood in Borås. The building rights are suitable for construction of all three of K-Fastigheter's concept buildings, and the company assesses that it will be able to construct some 600 rental apartments distributed over a gross area of 47,664 square. metres Transfer will take place when the detailed development plan has gained legal force, which is expected to occur in 2020. The purchase price amounts to some SEK 138 million, corresponding to approximately SEK 2,900/square metres GFA.
- On 13 March 2020, K-Fastigheter signed an agreement relating to the acquisition of the property 7cq Vallensbæk, located in Vallensbæk Strand, just south of Copenhagen. The property has planning permission for total lettable area of 7,779 square metres distributed over 95 apartments and 92 garage spaces. Transfer was effective from 1 April 2020, and construction is expected to start in the second quarter of 2020. The rental value is some DKK 13.9 million. The purchase price was DKK 49.0 million.
On 26 March 2020, K-Fastigheter signed an agreement relating to the acquisition of the development property Helsingborg Långeberga 4:6 in the Långeberga neighborhood in Östra Ramlösa, east of Helsingborg city center. K-Fastigheter will make an application for a detailed development plan with the aim of achieving a gross floor area of between 40,000 and 60,000 square metres and up to 650 housing units. Transfer is conditional on the detailed development plan gaining legal force. The purchase price amounts to some 60 million, based on approximately SEK 1,500/ square GFA.
On 31 March, K-Fastigheter acquired the company Fastigheten Hammar 9:197 AB which has signed a land allocation agreement with the municipality of Kristianstad regarding the property Kristianstad Hammar 9:197. The plot is suitable for construction of two Apartment Blocks of approximately 3,101 square metres distributed over some 48 apartments. Rental value, approximately SEK 5.5 million. Construction scheduled to commence during 2020. Purchase price, approximately SEK 7.5 million.
During the first quarter, construction began of:
Göteborg Sävenäs 131:13. See acquired building rights above.
Höganäs Flora 13. Lateral Low-Rise apartments in central Höganäs of total of 3,857 square metres distributed between 71 apartments with a rental value of approximately SEK 7.4 million. Tenants scheduled to move in during February 2022.
During the first quarter, 17 apartments were completed within K-Fastigheter's K-Fast 2.0 programme for upgrading older apartments. The increase in rental value resulting from the upgrades amounts to SEK 0.4 million.

Significant events after the end of the period

K-Fastigheter's 2019 Annual Report was published on 3 April 2020.
On 16 April, K-Fastigheter announced a long-term strategic collaboration with BoKlok, a company jointly owned by Skanska and IKEA. The aim is to complete transaction that allow for the construction of up to a thousand apartments over the next three years. The partnership will start with the following three transactions:
- K-Fastigheter sells building rights for a total of 43 apartments located in Hässleholm and Viken to BoKlok. Purchase price, approximately SEK 18.5 million.
- K-Fastigheter acquires 48 new rental apartments located in Telestadshöjden in Växjö, due to be completed in 2021, from BoKlok.
- K-Fastigheter has signed a Letter of Intent with Skanska Hyresbostäder relating to the acquisition of building rights with a total gross floor area of 12,000 square metres adjacent to the above property in Växjö. The purchase price is SEK 15.0 million.
- K-Fastigheter has signed a Letter of Intent with BoKlok and Skanska regarding producing a joint detailed development plan for housing units in Kävlinge, with the aim of achieving a gross floor area of 100,000 square metres. K-Fastigheter's holding is 25 percent.
- K-Fastigheter has signed a Letter of Intent with BoKlok about jointly developing housing units in Helsingborg.
The partnership also includes some shared future marketing initiatives.
On 29 April, K-Fastigheter signed an agreement regarding the acquisition of the building rights for Gävle Fredriksskans 2:17 and Nyköping Oppebygård 1:7 from the Panghus Group. The building rights comprise a total of 183 apartments with a total expected rental value of some SEK 21.7 million.
The Notice Convening the Annual General Meeting in K-Fastigheter was published on 21 April 2020. The AGM will be held at Hotel Statt Hässleholm on Tuesday 19 May at 5 p.m. CEST. The full Notice convening the AGM, including registration procedure, proposed agenda and supporting documentation can be found on K-Fastigheter's website. K-Fastigheter urges all shareholders to utilize the Advance Voting option as a result of the current coronavirus pandemic.

A M E S S A G E F R O M THE CEO

CEO

The uncertainty about the rapid spread of the coronavirus has not left anyone unaffected, and its socioeconomic impact is hard to gauge, and we can only hope that this uninvited guest leaves as soon as possible. K-Fastigheter's business model is based on an infinite investment horizon, which makes me feel particularly secure in the most challenging times. "

K-Fastigheter was founded on 1 December 2010, in the midst of the financial crisis and only two years after Lehman Brothers crashed. That crisis played a part in creating the foundations of a company with the ambition of ensuring perpetual life. K-Fastigheter now stands stable in the current storm. A clear sign that our business model is working well is that we reached a key milestone in the first quarter of 2020. K-Fastigheter now has the right conditions in place to achieve 5,000 apartments under management before the end of 2023. As of 31 March 2020, K-Fastigheter had 1,789 apartments under management, 963 apartments in production for proprietary management, 2,692 apartments in ongoing project development and 121 apartments where transfer will take place gradually during 2020. In total, our property and project portfolio totaled 5,565 apartments.

We've already met our second operational goal for some time. Of total rental value at the end of the first quarter, 84 percent related to housing units, compared to the operational target of at least 80 percent. At the end of the first quarter, the Group had a net loan-to-value ratio of 48.2 percent, cash and cash equivalents of SEK 460.0 million and was financed with traditional bank borrowing only. K-Fastigheter retains the previously communicated operational and financial targets. In fact, we accelerated the roll-out of planned initiatives during the quarter, and completed a total of six new transactions with building rights for a potential 1,600 apartments.

We also expanded our operations in the Öresund region through the acquisition of building rights in Vallensbæk, south of Copenhagen, expanded our market through an acquisition in Borås, and started a very promising strategic partnership with BoKlok in April, that we are very hopeful can generate significant business opportunities looking ahead.

In the first quarter of 2020, we also started construction of 263 apartments in two projects in Gothenburg and Höganäs, with a future rental value of some SEK 35.8 million. At the end of the first quarter, we had a total of 963 apartments in production in the Construction business area, a new record for K-Fastigheter.

The Project Development business area also reached a new high of SEK 94.5 million in value growth in ongoing construction projects in a single quarter. Business area profit before tax corresponded to 78 percent of the Group's total profit before tax. I want to really emphasize that we are so much more than just a property company.

Our business model creates the right conditions for generating internally driven growth through the development and production of high quality HOMES under long-term management. As mentioned above, we achieved record profit in the Project Development business area, with projects that are now creating employment and growth in our Construction business area, which in turn generates growth and profit in the Property Management business area through new and attractive properties with solid cash flows. Our 963 apartments in ongoing construction have a total rental value of SEK 112.7 million on completion. We have also set a new record in our project portfolio, which included some 2,700 building rights at the end of the quarter.

Profit from property management in the first quarter, which is seasonally weaker, increased by 40 percent year-on-year. Rental income increased by as much as 45 percent and rental values totaled SEK 207.9 million at the end of the period, up 52 percent year-on-year. This indicates positive growth in profit from property management in future.

Looking ahead, it is important that we support our tenants, employees and society at large. We maintain a dialog with tenants, as well as private individuals and businesses, that can demonstrate that their finances or operations have been adversely affected by covid-19. The objective is to arrive at sustainable solutions, which may include providing liquidity relief.

In order to prevent the virus from spreading and increase the safety of our tenants and staff, we have also introduced extensive precautionary and protective measures in our workplaces and properties. In this context, I would like to thank all our employees and partners for your efforts. We have succeeded in achieving a great deal without reducing productivity, and all our construction projects are proceeding according to plan. We have also secured deliveries of all key components for our production for the remainder of the year.

To conclude, in the period the K-Fastigheter share fell by 0.6 percent while the OMX Stockholm MidCap index decreased by 26.6 percent and the OMX Stockholm Real Estate index fell by 25.1 percent. It is pleasing to conclude that interest in the share from institutional investors has increased further since the IPO in November 2019. All major institutional owners increased their holdings in the quarter, despite a turbulent stock market. I am extremely grateful for the confidence all our shareholders have shown in us, and I, and all of K-Fastigheter's employees, will do everything we can to live up to this confidence. "

- Jacob Karlsson, May 2020

P R O P E R T Y P O R T F O L I O A S O F 31 MARCH 2020

On 31 March 2020, the Group's property portfolio comprised 66 completed investment properties1 , as well as three out of four stages now being occupied in the Helsingborg Brigaden 7 & 8 project, distributed between a total 110,528 square metres of housing and 26,633 square metres of commercial space, and 15 ongoing construction projects, distributed between 60,011 square metres of housing and 588 square metres of commercial space. In addition, K-Fastigheter has 17 projects in progress at the project development phase at various stages of building permit application or project planning, of which nine are projects for which K-Fastigheter has yet to take possession of the land.

Of the property stocks, 76 percent was constructed after 2010 and 99 percent is assessed by Newsec to be in category A or B locations within the communities in which the Group operates. As of 31 March 2020, the contractual rent amounted SEK 200.6 million, with an estimated operating surplus of SEK 145.2 million, corresponding to a surplus ratio of 72 percent. For our newly produced concept buildings, the corresponding surplus ratio is about 81 percent, and, for other properties in the portfolio, it is about 59 percent. Of the contractual rent, 84 percent pertains to housing or related rentals (such as parking) divided between the 1,789 apartments under property management at the end of the period. Contractual rent from commercial tenants is distributed between 127 commercial contracts, with the largest tenant accounting for 3 percent of the total contractual rental income.

At the end of the period, the book value of completed investment properties totaled SEK 3,841.7 million (3,606.9), with an average direct return requirement of 4.23 percent (4.25). The book value of new construction projects in progress amounted to SEK 766.5 million (447.7) and of undeveloped land to SEK 412.0 million (335.1) at the end of the period. On completion, the estimated market value of the new construction projects in progress amounted to SEK 2,397.5 million (1,618.5) and to about SEK 7,150 million (3,400) for properties currently in project development.

Of the property stocks, 89 percent of the property value is to be found in Skåne, with most of that, 41 percent, being located in Northeast Skåne (Hässleholm, Kristianstad, Osby), followed by Northwest Skåne (Helsingborg, Höganäs, Landskrona) at 40 percent.

Property-related key data	31 Mar 2020	31 Mar 2019	31 Dec 2019
Opening carrying amount, investment properties	4,396.7	3,018.1	3,018.1
+Acquisitions	355.0	4.7	557.7
+ New construction	148.7	132.6	499.7
– Sales	0.0	0.0	-2.3
– Reclassification as business property	0.0	0.0	-9.3
Other changes	17.4	0.1	-7.0
Unrealized changes in value	121.6	47.6	339.8
Closing carrying amount, investment properties	5,039.5	3,203.1	4,396.7
Of which, completed investment properties	3,841.7	2,418.3	3,606.9
of which, undeveloped land	412.0	173.4	335.1
of which, site leaseholds	19.2	0.0	7.0
Of which, ongoing construction	766.5	611.3	447.7
Rental value, SEK million	207.9	136.9	196.6
Rental income at end of period, SEK/m2	1,463	1,261	1,460
Direct property costs, SEK/m2	404	382	398
Operating surplus, SEK/m2	1,059	878	1,062
Financial letting ratio at end of period	96.5%	97.9%	96.9%
Average financial letting ratio over period	94.0%	95.7%	96.8%
Surplus ratio over period	63.7%	65.8%	68.4%
Lettable area, m2	137,161	106,240	130,486
Number of homes under management, items	1,789	1,240	1,711
Completed investment properties, SEK million	3,841.7	2,418.3	3,606.9
Property yield, completed investment properties	4.23%	4.42%	4.25%

Property value by construction year, 31 Mar 2020 Property value by category, 31 Mar 2020

1 Investment properties are properties that are held for the purpose of generating rental income or increased value or a combination of these.

INVESTMENT PROPERTIES			Lettable area, m2			Property value		Rental value	Letting ratio	Contractual rent		Property costs		Operating surplus
Distribution of concept buildings		Housing Housing Premises		Total	SEK million	SEK/m2	SEK	million SEK/m2	%	SEK million	SEK	million SEK/m2	SEK million	SEK/m2
Low-Rise	435	32,718	0	32,718	1066.6	32,600	51.1	1,562	97.9%	50.0	4.5	138	45.5	1,391
Lateral Low-Rise	625	31,564	543	32,107	1305.9	40,672	62.0	1,931	95.8%	59.4	7.8	241	51.7	1,609
Apartment Block	91	5,955	0	5,955	196.1	32,930	10.5	1,760	100.0%	10.5	1.6	263	8.9	1,496
Other residential properties	631	39,924	3,694	43,618	868.0	19,900	55.4	1,270	94.0%	52.1	18.2	417	33.9	777
Commercial properties	7	367	22,396	22,763	405.1	17,796	28.9	1,270	99.1%	28.6	6.5	284	22.2	974
Total/average	1,789	110,528	26,633	137,161	3,841.7	28,431	207.9	1,516	96.5%	200.6	38.5	281	162.1	1,182
Geographic distribution
Northwestern Skåne	778	44,102	7,816	51,918	1,574.6	30,328	83.3	1,605	99.8%	83.1	17.2	332	65.9	1,269
Northeastern Skåne	709	47,574	18,671	66,245	1,551.9	23,427	89.6	1,352	95.8%	85.8	16.7	252	69.1	1,043
Southwestern Skåne	114	5,866	146	6,012	289.1	48,087	13.5	2,237	97.2%	13.1	1.7	281	11.4	1,895
Gothenburg	14	990	0	990	32.1	32,424	1.6	1,654	100.0%	1.6	0.2	168	1.5	1,486
Southern Småland	174	11,996	0	11,996	394.0	32,844	19.9	1,661	85.4%	17.0	2.7	225	14.3	1,192
Total/average	1,789	110,528	26,633	137,161	3,841.7	30,162	207.9	1,516	96.5%	200.6	38.5	281	162.1	1,182
									Property administration		16.9	123
									Operating surplus incl. property administration	200.6	55.4	404	145.2	1,059
CONSTRUCTION PROJECTS IN PROGRESS			Lettable area, m2			Property value		Rental value		Investment (including land), SEK million1
Distribution of concept buildings	Housing	Housing Premises		Total	SEK million	SEK/m2	SEK	million SEK/m2	Estimated	Developed		Carrying amount
Low-Rise	190	14,084	0	14,084	478.2	33,953	22.6	1,601	366.2	128.4		146.3
Lateral Low-Rise	510	28,556	198	28,754	1,378.7	47,950	62.3	2,167	955.7	291.7		414.1
Apartment Block	216	14,096	390	14,486	500.0	34,516	25.9	1,788	404.7	236.5		278.5
Other residential properties	17	1,039	0	1,039	40.1	38,595	1.9	1,861	35.0	35.0		40.1
Low-Rise/T-O ass.	30	2,236	0	2,236	0.0	0	0.0	0	0.0	0.0		0.0
Total/average	963	60,011	588	60,599	2,397.0	39,556	112.7	1,860	1,761.6	691.6		879.0

Geographic distribution Northwestern Skåne	275	17,569	390	17,959	679.7	37,850	31.7	1,767	494.3	142.4		222.1
Northeastern Skåne	144	9,809	0	9,809	312.3	31,838	16.3	1,662	260.7	181.0		199.8
Southwestern Skåne	127	7,076	0	7,076	230.0	32,504	10.0	1,417	166.0	98.1		100.3
Gothenburg	295	17,128	198	17,326	888.0	51,252	40.0	2,306	598.5	133.3		210.6
Southern Småland	122	8,429	0	8,429	287.0	34,049	14.7	1,740	242.0	136.7		146.1
Total/average	963	60,011	588	60,599	2,397.0	39,556	112.7	1,860	1,761.6	691.6		879.0
PROJECT DEVELOPMENT IN PROGRESS
Distribution of concept buildings
Low-Rise	1,247	94,226	0	94,226	3,407.0	36,158	158.5	1,682	2,385.4	118.7		118.7
Lateral Low-Rise	1,000	60,866	0	60,866	2,472.9	40,628	113.1	1,859	1,706.4	47.0		47.0
Apartment Block	445	31,183	0	31,183	1,276.7	40,942	62.5	2,005	908.7	24.9		24.9
Other residential properties	0	0	0	0	0.0	0	0.0	0	0.0	0.0		0.0
Low-Rise/T-O ass.	0	0	0	0	0.0	0	0.0	0	0.0	0.0		0.0
Total/average	2,692	186,275		0 186,275	7,156.5	38,419	334.1	1,794	5,000.5	190.6		190.6
Geographic distribution
Northwestern Skåne	965	74,410	0	74,410	2,786.0	37,441	127.5	1,713	1,862.8	51.5		51.5
Northeastern Skåne	346	23,570	0	23,570	769.9	32,663	38.1	1,616	608.4	72.2		72.2
Southwestern Skåne	542	32,466	0	32,466	1,336.9	41,178	62.5	1,925	944.9	47.0		47.0
Gothenburg	600	38,000	0	38,000	1,520.0	40,000	68.4	1,800	1,026.0	0.0		0.0
Southern Småland	94	6,432	0	6,432	245.2	38,125	11.4	1,780	181.2	20.0		20.0
Other*	145	11,397	0	11,397	498.6	43,747	26.2	2,297	377.2	0.0		0.0
Total/average *Other refers to Copenhagen and Nyköping	2,692	186,275		0 186,275	7,156.5	38,419	334.1	1,794	5,000.5	190.6		190.6
SUMMARY			Lettable area, m2			Property value		Rental value		Investment (including land), SEK million1
	Housing	Housing Premises		Total	SEK million	SEK/m2	SEK	million SEK/m2	Estimated	Developed		Carrying amount
Completed investment	1,789	110,528	26,633	137,161	3,841.7	28,431	207.9	1,516				3,841.7

Total/average	5,444	356,814		27,221 384,035 13,395.2		34,880	654.7	1,705
Site leaseholds									19.2
Undeveloped land									20.5
New construction projects other									88.4
Project development in progress	2,692	186,275		0 186,275	7,156.5	38,419	334.1	1,794	190.6
Construction projects in progress	963	60,011	588	60,599	2,397.0	39,556	112.7	1,860	879.0
properties

¹ Accrued investment refers to the total costs incurred in each construction project. The carrying amount refers to the consolidated value adjusted for Group eliminations and includes the calculated change of SEK 259.9 million in the value of investment properties.

Information in the Interim Report on completed investment properties includes assessments and assumptions. Contractual rent refers to the contract value on the balance sheet date recalculated at annual rate. Rental value refers to contractual rent plus estimated rent for vacancies and discounts recalculated at an annual rate. Property costs refer to budgeted property costs on an annual basis and are exclusive of property administration. The assessments and assumptions involve uncertainties and the disclosures above should not be viewed as a forecast.

K-Fast Holding AB Interim Report Q1 2020 7 Details in the Interim Report regarding construction projects and project development in progress are based on assessments of the size, focus and scope of construction projects and project development in progress, and of when projects are scheduled to commence and be completed. These details are also based on assessments regarding future investments and rental value. These assessments and assumptions should not be viewed as a forecast. The assessments and assumptions entail uncertainties regarding the execution, design and scale, scheduling, project costs and future rental value of the projects. Details of projects in progress are reviewed regularly and assessments and assumptions are adjusted as a result of projects in progress being completed or new ones being added, as well as due to changes in conditions. Financing has not been secured for projects where construction has yet to commence, meaning that financing of construction investments in project development represents a source of uncertainty.

K - F A S T I G H E T E R ' S C O N C E P T BUILDINGS

KRISTIANSTAD

Öllsjö 7:47 – 12 Low-Rise apartments

Low-Rise – flexible buildings offering considerable freedom of choice

K-Fastigheter's flexible one to three-storey multi-family dwellings can be constructed either as semi-detached houses, terraced houses or as link houses with one or two-storey apartments. The apartments are available in four sizes: one bedroom, living room and kitchen totaling 60 square metres two bedrooms, living room and kitchen totaling 75 square metres three bedrooms, living room and kitchen totaling 94 square metres on two storeys.

In order to meet demand on its various markets, K-Fastigheter offers a choice of floor plans in connection with each construction project. The Low-Rise housing units are built using the same methods as for traditional single-family houses. However, the Low-Rise housing units can be built as link or terraced houses, or placed on top of one another to create two-storey houses with access balconies. The Low-Rise housing units offer very high functional economy, where efficient project development entirely eliminates communal spaces.

Structural details:

Ground level foundation plate, aerated three-layer wooden frame, delivered in prefabricated units.

HELSINGBORG

Brigaden 7 & 8 – 179 Lateral Low-Rise apartments

Г
D

HÄSSLEHOLM

Tre Överstar 7 – 29 Apartment Block apartments

Lateral Low-Rise – variation and space efficiency

K-Fastigheter's neighborhood-structure multi-family dwellings can be constructed up to ten storeys in height. There are two standard space-efficient apartment formats within Lateral Low-Rise buildings: one bedroom, living room and kitchen totalling 49 square metres and two bedrooms, living room and kitchen totalling 59 square metres. It is also possible to include apartment alternatives that are either larger or smaller. To meet market demand and offer the best possible use of building rights, K-Fastigheter has chosen to make its Lateral Low-Rise as adaptable as possible with regard to floor plans and with opportunities for underground garages and commercial premises on the ground floor.

The design of the Lateral Low-Rise concept has focused sharply on achieving a substantial living space in relation to the façade area. In K-Fastigheter's assessment, the Lateral Low-Rise concept has a significantly smaller façade area in relation to living space than the average for newly produced apartments in Sweden. In connection with construction, this is significant because a smaller façade entails lower consumption of materials and fewer working hours required to complete the project. In a long-term management perspective, a smaller façade area reduces maintenance costs and exposes a smaller area to cold, which reduces the building's total energy consumption.

Structural details:

Supporting concrete structure with flooring units and concrete separating walls between apartments and lightweight external wall units.

Apartment Block – the residential building for all locations

K-Fastigheter's apartment blocks are square-footprint multi-family dwellings which can be constructed with heights of four to ten storeys. The apartment blocks have four apartments on each floor: two with one bedroom, living room and kitchen totalling 62 square metres and two with two bedrooms, living room and kitchen totalling 71 square metres. All apartments are equipped with spacious 27 squaremetre balconies facing two directions. The Apartment Block is particularly suited for construction on difficult terrain, and multiple designs are available for the ground floor. On plots with uneven terrain, the ground floor can be constructed to include a semi-basement. The apartment blocks can also be extensively adapted to meet the different requirements set for different building rights regarding storey height, any premises, internal or external refuse rooms and storage rooms for the apartments. The Apartment Block is K-Fastigheter's concept building with the highest degree of prefabrication, where the structural elements already include complete electrical mains and drain vaults. The Apartment Block has also been designed specifically for cost-efficient long-term property management, including wall structures that provide access to all drain stacks from the staircase, which makes it possible to replace drain stacks without requiring tenants to move out.

Structural details:

Entirely concrete structure with sandwich exterior walls, uniform walls separating apartments and floor units.

A PA R T M E N T B L O C K P L U S OFFERS MORE OPPORTUNITIES

The first Apartment Block was built in Hässleholm in 2018, and the concept building quickly proved popular. With well-planned apartments and spacious balconies facing two directions, K-Fastigheter's Apartment Blocks have been welcomed by tenants and social planners alike. From the start, the requirement was that the Apartment Blocks should be adaptable to various conditions, such as hilly terrain, design and use of space.

The Apartment Block is K-Fastigheter's concept building with the highest degree of prefabrication, where the concrete structural elements already include complete electrical mains and drain vaults, for example. The combination of tried-and-tested construction methods, a high degree of pre-fabrication with K-Fastigheter's innovative solutions, such as a balcony structure that means scaffolding is not required, makes the construction of the Apartment Blocks very time efficient.

K-Fastigheter has continued to develop the Apartment Block concept on the basis of this experience, resulting in the concept Apartment Block Plus. Apartment Block Plus is a rectangular structure containing six apartments per storey. Apartment Block Plus is a hybrid, which allows for more choice, and can be built as a freestanding apartment block, or as two buildings connected at the gables, which creates a structure similar to K-Fastigheter's Lateral Low-rise housing units. Apartment Block Plus can be built to include up to ten storeys.

The following illustration shows the standard plan for Apartment Block Plus, with six apartments per storey.

Structural details:

Entirely concrete structure with sandwich exterior walls, uniform walls separating apartments and floor units. The roof is available in three options: pent, pitched or hipped. The façade color can be individualized there is a selection of balcony railings to choose from.

A C Q U I R E D P R O P E R T I E S A N D C O M M E N C E D C O N S T R U C T I O N P R O J E C T S D U R I N G T H E F I R S T QUARTER 2020

FLORA 13

Höganäs

Helsingborg

Gothenburg

ACQUIRED PROPERTIES

Växjö Örnen 34

On 2 January 2020, ownership of a property in the Folkets Park neighborhood in central Växjö was transferred to K-Fastigheter. Work has started on the first of two phases totaling 13,091 square metres distributed over 171 apartments with a total rental value of some SEK 24.0 million. The acquisition was made through the Boro Group, and Peab is responsible for construction.

Facts:

Stage one encompasses 5,650 square metres distributed between 70 apartments with a rental value of approximately SEK 10.0 million. Tenants will move in gradually between January and April. Phase 2 is effective from 1 May 2020, and tenants will be moving in gradually between April and August.

Helsingborg Amerika Norra 54

On 15 January 2020, K-Fastigheter acquired the property Helsingborg Amerika Norra 54, including five commercial premises and 28 apartments, which are well suited to K-Fastigheter's renovation program K-Fast 2.0. The property is located on Furutorpsgatan in the Söder neighborhood in Helsingborg, adjacent to K-Fastigheters existing student housing unit Amerika Södra 27.

Facts:

The property comprises a total of 1,878 square metres of housing units distributed over 28 apartments, and 759 square metres of commercial premises distributed over five commercial agreements. Rental value, approximately SEK 3.8 million.

COMMENCED CONSTRUCTION PROJECTS

71 Lateral Low-Rise apartments in Höganäs

For the second quarter running, K-Fastigheter has started new construction in Höganäs. K-Fastigheter will be building a Lateral Low-Rise housing unit with some 71 apartments on the Flora 13 plot in central Höganäs, close to shops and with good public transport links to Helsingborg, Tenants are scheduled to move in during February 2022.

Facts:

Construction includes a seven-storey Lateral Low-Rise housing unit totaling 3,857 square metres distributed over 71 apartments and 43 parking spaces. Estimated rental value, approximately SEK 7.4 million.

192 Lateral Low-Rise apartments in Gothenburg

In March, K-Fastigheter started its largest construction project to date, comprising a total of 192 Lateral Low-Rise apartments on the plot Göteborg Sävenäs 131:13. The property is adjacent to Göteborg Sävenäs 131:12, where K-Fastigheter started production of 103 Lateral Low-Rise apartments in September 2019. The site is located adjacent to Östra Hospital, with good public transport links to central Gothenburg. Tenants scheduled to move in during October 2022.

Facts:

Construction includes an eight to ten-storey Lateral Low-Rise building, totaling 12,257 square metres distributed over 192 apartments. Construction also includes 201 parking spaces. Estimated rental value, approximately SEK 28.4 million.

S U M M A R Y C O N S O L I D AT E D S TAT M E N T OF COMPREHENSIVE INCOME

(SEK million)	2020 Jan-Mar	2019 Jan-Mar	Rolling 4 quarters Apr 2019-Mar 2020	2019 Jan-Dec
Rental income	47.8	33.0	171.6	156.8
Project and contracting sales	4.6	1.5	31.7	28.6
Other operating income	0.2	0.3	1.5	1.9
Net sales	52.6	34.8	204.8	187.3
Operation	-9.0	-6.6	-25.8	-23.5
Maintenance	-1.9	-1.0	-8.4	-7.5
Property tax	-1.0	-0.4	-4.2	-3.6
Property administration	-5.5	-3.5	-16.9	-15.0
Property management costs	-17.3	-11.6	-55.3	-49.5
Project and contracting costs	-3.9	-1.7	-28.7	-26.8
Gross profit	31.3	21.5	120.8	111.0
of which, gross profit from property management (operating surplus)	30.5	21.7	116.1	107.3
Of which, gross profit from project and contracting operations	0.8	-0.2	4.8	3.7
Central administration	-10.0	-7.2	-44.9	-42.1
Depreciation/amortization and impairment	-1.2	-2.5	-13.9	-15.2
Profit from participations in Group, associated and jointly controlled companies	-0.5	1.5	58.9	61.0
Net interest income	-11.2	-7.4	-39.1	-35.3
Profit before changes in value	8.4	5.9	81.8	79.3
Of which, profit from property management	15.5	11.1	57.3	52.9
Change in value of investment properties	121.4	47.6	413.7	339.8
Changes in value of derivatives and other	-13.8	1.9	-3.0	12.7
Profit before tax	116.0	55.4	492.5	431.8
Tax on profit for the period	-23.7	-12.0	-78.2	-66.5
Profit for the period	92.3	43.4	414.3	365.3
Other comprehensive income	0.0	0.0	0.0	0.0
Comprehensive income for the period	92.3	43.4	414.3	365.3
Profit for the period attributable to
Parent Company's shareholders	92.3	43.4	414.3	365.3
Non-controlling interests	0.0	0.0	0.0	0.0
Profit after tax per share, SEK/share	2.72	1.73	14.90	14.14

P E R F O R M A N C E A N A LY S I S JANUARY – MARCH 2020

INCOME

Net sales for the period amounted to SEK 52.6 million (34.8). For the first quarter of 2020, rental income amounted to SEK 47.8 million (33.0), which is an increase of 45 percent. Of the increase of SEK 14.8 million, 46 percent was derived from properties acquired in the period, 53 percent from rental income from completed properties, and 1 percent from increased rental income from comparable holdings.

At the end of the period, the letting ratio was 96.5 percent (97.9) and the average letting ratio during the period was 94.0 percent (95.7). The lower letting ratio for the period, is attributable to a high level of project completions in the fourth quarter 2019, which generally entails a somewhat lower financial letting ratio initially. Furthermore, K-Fastigheter acquired an ongoing project in Växjö in January 2020, with tenants moving in gradually during the spring. Although the letting ratio was low as of the transfer date, it has been increased gradually. In those parts of the stocks that have been under management for a longer time, the financial letting ratio remains very high.

Rental income trend (SEK million)	2020 Jan-Mar	2019 Jan-Mar	2019 Jan-Dec
Properties owned at start of year	33.2	20.0	133.0
Completed properties	7.8	6.7	12.9
Acquired properties	6.8	6.3	10.9
Divested properties	0.0	0.0	0.0
Rental income	47.8	33.0	156.8

Income from project and contracting operations amounted to SEK 90.9 million (60.3), of which SEK 86.4 million (58.8) related to construction for Group companies that has been capitalized for the Group's own purposes. Assignments for external clients accounted for SEK 4.6 million (1.5), representing the Group's final tenant-owner project. The change in year-on-year terms was partly due to increased construction activity, but also because more projects are in the late construction stages, where the rate of production is generally higher.

OPERATING COSTS

Property management costs totaled SEK 17.3 million (11.6) for the period, corresponding to an increase of 50 percent year-on-year. The increase is primarily attributable to costs for properties completed and acquired during the year, and to a lesser extent, 7 percent, to cost increases for comparable holdings. Property administration amounted to SEK 5.5 million (3.5) and mainly increased due to expanded organizational resources for managing the growing property portfolio. The surplus ratio for the period amounted to 63.7 percent (65.8), and the comparative figures were mainly affected by higher property administration costs.

Property cost trend (SEK million)	2020 Jan-Mar	2019 Jan-Mar	2019 Jan-Dec
Properties owned at start of year	-8.4	-5.3	-29.7
Completed properties	-1.4	-0.8	-3.1
Acquired properties	-2.1	-2.0	-1.8
Divested properties	0.0	0.0	0.0
Direct property costs	-11.9	-8.1	-34.5
Property administration	-5.5	-3.5	-15.0
Property management costs	-17.3	-11.6	-49.5

The first quarter is also weaker in seasonal terms, despite the mild winter in 2019/2020, which affected the surplus ratio compared to the full year 2019.

The costs for the project and construction operations partly comprise direct project-related costs and partly fixed costs for the construction organization. The part of the operations involving external construction is reported in the Income Statement. Project and contracting operations for the Group's own property management activities are capitalized as work for the Group's own purposes and are reported net in the Income Statement under the item Project and contracting costs.

CENTRAL ADMINISTRATION COSTS, DEPRECIATION/ AMORTIZATION AND IMPAIRMENT

Central administration, which includes company management, project development, IR/communications, HR, IT and finance, amounted to SEK 10.0 million (7.2) for the period. The increase in costs is primarily due to a strengthening of the central organization to meet future growth and the requirements made on a listed company. For the corresponding period 2019, the Parent Company costs included SEK 2.8 million relating to the IPO completed in 2019.

Impairment for the period includes the scrapping of construction components in connection with the company's K-Fast 2.0 renovation programme.

PROFIT FROM PARTICIPATIONS IN GROUP, ASSOCIATED AND JOINTLY CONTROLLED COMPANIES

Profit from participations in Group and associated companies amounted to SEK -0.5 million (1.5). All associated and jointly controlled companies are project companies where income is recognized when a project is completed.

NET INTEREST INCOME

Net interest income for the period amounted to SEK -11.2 million (-7.4). The increase is primarily due to increased interest-bearing liabilities attributable to acquisitions of investment properties and new constructions. At the end of the period, the average interest level was 1.95 percent (1.95), including the effects of interest rate derivatives.

The interest coverage ratio for the period amounted to a multiple of 2.4 (2.6) and was adversely affected by lower net interest income, which was not fully offset by increased profit from property management, partly because the first quarter is seasonally weaker, and because profit from property management includes increased central costs.

PROFIT FROM PROPERTY MANAGEMENT

Profit from property management for the period amounted to SEK 15.5 million (11.1). Profit from property management per share amounted to SEK 0.46 (0.44), which is an increase of 3 percent year-on-year. Profit from property management has been affected positively by the continued sharp increase in rental income , and negatively by lower surplus ratio related to increased central costs for property administration, increased central costs and reduced net interest income.

The increase in property administration and central administration are primarily due to the adaption of the central organization to meet future growth and the increased demands made on a listed company.

CHANGES IN VALUE

The unrealized changes in the values of investment properties for the period, amounted to SEK 121.4 million (47.6), distributed between SEK 26.9 million (8.6) for properties under management and SEK 94.5 million (38.9) for construction projects in progress.

No new construction projects in progress were completed in the period, implying that the entire item value change in new construction projects in progress of SEK 94.5 million (39.1) was derived from construction projects in progress at the end of the period. At the end of the period, the direct return requirement in the valuation of new construction in progress amounted to 4.03 percent (4.13).

Of unrealized changes in value for properties under management, SEK 9.0 million (0.0) was related to acquisitions during the period, Of the remaining unrealized changes in the values of investment properties, improved net operating income contributed SEK 9.2 million (3.9), while changed valuation assumptions contributed SEK 8.6 million (4.7). In total, the average direct return requirement for properties under management was 4.23 percent (4.42). The average direct return requirement for the entire property portfolio, including undeveloped land and new construction in progress, amounted to 4.16 percent (4.31) at the end of the period.

Changes in the values of derivatives and other items amounted to SEK -13.8 million (1.9) for the period. The trend in the first quarter was caused primarily by lower market rates, which had a negative impact on the market value of the Group's interest rate derivatives. The Group's derivatives consist of interest rate derivatives, intended to mitigate the Group's interest rate risk. The fair value of the Group's derivatives was SEK -26.6 million (-15.0) at the end of the period.

For further information on K-Fastigheter's valuation principles, see the 2019 Annual Report (Valuation section or Note 16 Investment properties).

Change in value (SEK million)	2020 Jan-Mar	2019 Jan-Mar	2019 Jan-Dec
Change in net operating income	9.2	3.9	26.5
Construction projects in progress	94.5	38.9	186.4
Land and unutilized building rights	0.2	0.0	12.7
Change in return requirement	8.6	4.7	51.2
Acquisitions	9.0	0.0	62.9
Divestments	0.0	0.0	0.0
Total	121.4	47.6	339.8

TAX

Current tax for the year amounted to SEK 0.6 million (2.3). Deferred tax amounted to SEK 23.1 million (9.7), affected by unrealized changes of SEK 121.4 million (47.6) in the value of properties.

Tax has been calculated at 21.4 percent on current taxable profit. Deferred tax liabilities and tax receivables have been calculated at the lower tax rate of 20.6 percent, applicable from 2021, since K-Fastigheter estimates that the deferred tax will not be settled until 2021 or later. The new tax rules also entail certain restrictions on the tax deductible for interest expenses, which is expected to entail an unutilized net interest deductible of approximately SEK 8.1 million for the period. Since this effect primarily affects the companies within the Group that had properties under construction during the year (with low or zero earnings relative to interest on construction credits) , and because future income from these properties is expected to be used to make deductions for interest expenses, the tax deductible for interest expenses has been booked as a deferred tax asset.

The balance sheet for 31 March 2020 states the net value of the deferred tax assets and deferred tax liabilities.

Tax calculation, 31 Mar 2020 (SEK million)	2020 Jan-Mar	Base
Tax on profit before tax	116.0
Tax rate, %	21.4%
Tax in accordance with applicable tax rate	-24.8	116.0
Tax attributable to previous years	0.0	0.0
Effect of changed tax rates	0.9	-4.2
Non-taxable income	-0.1	0.5
Other unrecognized costs	0.4	-2.0
Total	-23.7	110.3

Reported effective tax

Reported in the Income Statement	-23.7
Percentage of profit before tax, %	20.4%

Deferred tax assets attributable to:

Total	27.0	130.6
Other items	0.0	0.2
Interest-rate derivatives	5.5	26.6
Properties	0.1	0.6
Net interest income	8.1	39.3
Tax-loss carryforwards	13.2	63.9

Deferred tax liability attributable to:

Total	337.9	1,640.9
Other items	3.6	17.5
Untaxed reserves	0.7	3.4
Properties, under construction	53.5	259.9
Properties, completed	280.2	1,360.0

PROFIT FOR THE PERIOD

Profit for the period amounted to SEK 92.3 million (43.4) after tax and earnings per share amounted to SEK 2.72 (1.73).

S U M M A R Y C O N S O L I D AT E D STATEMENT OF FINANCIAL POSITION

	2020	2019	2019
(SEK million)	31 Mar	31 Mar	31 Dec
Assets
Tangible non-current assets
Investment properties	5,039.5	3,203.0	4,396.7
Owner-occupied properties	19.8	7.5	19.9
Equipment	14.5	7.5	14.0
Total tangible non-current assets	5,073.8	3,218.1	4,430.6

Financial non-current assets
Profit from participations in associated and jointly controlled companies and other non current receivables	44.1	118.3	43.8
Total financial non-current assets	44.1	118.3	43.8

Total non-current assets	5,117.9	3,336.4	4,474.5

Current assets
Inventories	0.2	0.3	0.2
Accounts receivable	44.9	49.9	43.6
Other receivables	34.0	20.9	29.6
Prepaid costs and accrued income	97.2	1.4	25.5
Current investments	0.0	102.4	0.0
Cash and cash equivalents	460.0	12.2	779.0
Total current assets	636.3	187.1	877.9
Total assets	5,754.2	3,523.5	5,352.3

	2020	2019	2019
(SEK million)	31 Mar	31 Mar	31 Dec
Equity and liabilities
Equity
Share capital	54.2	0.1	54.2
Other capital contributions	877.9	0.0	877.9
Profit brought forward including the profit for the period	1,398.7	1,024.4	1,306.4
Total equity	2,330.8	1,024.5	2,238.5

Non-current liabilities
Deferred tax liability	310.9	235.7	288.9
Long-term interest-bearing liabilities	2,515.5	1,892.5	2,281.3
Derivative instruments	26.6	15.0	12.8
Other provisions and non-current liabilities	16.5	19.3	18.1
Total non-current liabilities	2,869.5	2,162.5	2,601.0

Current liabilities
Current interest-bearing liabilities	410.2	204.2	363.1
Accounts payable	52.5	34.2	57.6
Current tax liabilities	0.0	0.1	5.7
Other current liabilities	27.8	37.1	23.2
Accrued costs and prepaid income	63.4	60.9	63.3
Total current liabilities	553.9	336.5	512.9

Total liabilities	3,423.4	2,499.1	3,113.9

Total equity and liabilities	5,754.2	3,523.5	5,352.3

C O N S O L I D AT E D S TAT E M E N T O F C H A N G E S I N E Q U I T Y

(SEK million)	Number of shares outstanding	Share capital	Other capital contributions	Profit brought forward	Total equity
Equity, as per 1 January 2019	500	0.1	0.0	981.1	981.2
Comprehensive income for the period				43.4	43.4
Equity, as per 31 March 2019	500	0.1	0.0	1,024.4	1,024.5

Comprehensive income for the period				322.0	322.0
Bonus issue and share split	24,999,500	39.9		-39.9	0.0
Capital contributions after deduction of transaction costs	8,888,528	14.2	877.9		892.1
Equity, as per 31 December 2019	33,888,528	54.2	877.9	1,306.4	2,238.5

Comprehensive income for the period				92.3	92.3
Closing balance as per 31 March 2020	33,888,528	54.2	877.9	1,398.7	2,330.8

The Extraordinary General Meeting on 19 August 2019 approved a bonus issue and share split 50,000:1. Due to this disclosure, the number of shares has been recalculated. Other capital contributions for the 2019 fiscal year are recognized net after transaction costs of SEK 31.5 million related to a new share issue in connection with the launch of the company's shares on the Nasdaq Stockholm exchange in November 2019.

B A L A N C E S H E E T A S O F 31 MARCH 2020

INVESTMENT PROPERTIES

At the end of the period, the value of the investment properties totaled SEK 5,039.5 million (4,396.7), distributed between completed investment properties at SEK 3,841.7 million (3,606.9), undeveloped land and land being developed at SEK 412.0 million (335.1), site leases at SEK 19.2 million (7.0) and construction in progress at SEK 766.5 million (447.7). During the period, SEK 148.7 million (132.6) was invested in new construction, extensions and remodelling. During the period, acquisitions were made for SEK 355.0 million (4.7) . No significant disposals (0.0) were conducted during the period.

	2020	2019	2019
Investment properties (SEK million)	Jan-Mar	Jan-Mar	Jan-Dec
Opening carrying amount	4,396.7	3,018.1	3,018.1
+Acquisitions	355.0	4.7	557.7
+ New construction	148.7	132.6	499.7
+ Extensions and rebuilds	5.4	0.1	5.9
– Divestments	0.0	0.0	-2.3
– Reclassification as Owner-occupied properties	0.0	0.0	-9.3
– Other reclassifications	12.0	0.0	-12.9
+/- Unrealized changes in value	121.6	47.6	339.8
of which, completed investment properties	26.9	8.6	140.7
of which, undeveloped land	0.2	0.0	12.7
of which, construction in progress	94.5	38.9	186.4
Closing carrying amount	5,039.5	3,203.1	4,396.7
of which, completed investment properties	3,841.7	2,418.3	3,606.9
of which, undeveloped land	412.0	173.4	335.1
of which, site leaseholds	19.2	0.0	7.0
of which, construction in progress	766.5	611.3	447.7

CASH AND CASH EQUIVALENTS

At the end of the period, cash and cash equivalents amounted to SEK 460.0 million (779.0). In addition, K-Fastigheter has an unutilized overdraft facility of SEK 90.0 million (90.0).

EQUITY AND NET ASSET VALUE

At the end of the period, consolidated equity attributable to the Parent Company's shareholders amounted to SEK 2,330.8 million (2,238.5), corresponding to SEK 68.78 per share (66.05). The increase is explained by the profit for the period of SEK 91.9 million (43.4) .

At the end of the period, the long-term net asset value (NAV) amounted to SEK 2,668.2 million (2,540.2), corresponding to SEK 78.74 per share (74.96). The long-term net asset value per share increased by 5 percent compared with 31 December 2019.

INTEREST-BEARING LIABILITIES AND INTEREST RATE DERIVATIVES

At the end of the period, consolidated interest-bearing liabilities amounted to SEK 2,925.8 million (2,644.3), of which SEK 410.2 million (363.1) was classified as current interest-bearing liabilities. Interestbearing liabilities are distributed between first mortgages for completed investment properties of SEK 2,479.3 million (2,331.9), construction credits of SEK 425.0 million (303.2), leasing liabilities of SEK 21.6 million (9.2) and operating credits of SEK 0.0 million (0.0). The loan-tovalue ratio for the Group's completed investment properties amounted to 48.2 percent (40.2). The increase in interest-bearing liabilities is primarily explained by the financing of ongoing new construction, as well as acquisitions.

At the end of the period, the Group had contracted credit agreements of SEK 3,542.1 million (3,239.7), of which SEK 2,479.3 million (2,331.9) related to the financing of completed investment properties, of which SEK 369.6 million (322.0) mature for renegotiation within the next 12 months. Beyond the financing of completed investment properties, contracted credit agreements comprise building credits of SEK 972.8 million (817.8) and overdraft facilities and covered loans of SEK 90.0 million (90.0). At the end of the period, construction credits, and overdraft facilities and covered loans had been utilized in the amount of SEK 425.0 million (303.2) and SEK 0.0 million (0.0) respectively. On 31 March 2020, the Group's total contracted and unutilized credit facilities amounted to SEK 90 million (90), excluding construction credits.

As of 31 March 2020, the average credit term for the Group's interest bearing liabilities, relating to completed investment properties and operational premises was 2.9 years (3.2).

K-Fastigheter currently works exclusively with variable interest rate loans. In order to manage the interest rate risk, interest rate derivatives, primarily interest rate swaps, are used to adjust the interest period. The swap portfolio had a total nominal value of SEK 1,607.0 million (1,207.0) at the end of the period, of which SEK 400.0 million comprises swaps with a future start date, starting at SEK 200.0 million as of 30 June 2020 and SEK 200.0 million as of 31 December 2020. At the end of the period, the fair value of the derivative portfolio was SEK -26.6 million (-12.8). The average interest period on the Group's interest-bearing liabilities related to investment and business properties was 3.7 years (3.3), and the average interest rate was 1.95 percent (1.90), including the effects of interest rate derivatives, and 1.80 percent (1.62) excluding the effects of interest rate derivatives. The total proportion of variable interest rates in relation to interest bearing liabilities related to investment and business properties was 51 percent (48) and the interest rate sensitivity in the event of a 1 percentage point shift in loan rates amounted to SEK 12.7 million (11.2). All the above KPIs for interest rate risk, with the exception

	31 Mar 2020 31 Mar 2019		31 Dec 2019
Net asset value (SEK million)	SEK million	SEK/share	SEK million	SEK/share	SEK million	SEK/share
Equity in accordance with the Balance Sheet	2,330.8	68.78	1,024.5	40.98	2,238.5	66.05
Reversal
Derivatives in accordance with the Balance Sheet	26.6	0.78	15.0	0.60	12.8	0.38
Deferred tax liability in accordance with the Balance Sheet	337.9	9.97	241.5	9.66	310.3	9.16
Deduction
Deferred tax assets in accordance with the Balance Sheet	27.0	0.80	5.9	0.23	21.4	0.63
Long-term net asset value (NAV)	2,668.2	78.74	1,275.1	51.01	2,540.2	74.96

of the average interest period, have been calculated excluding swaps with a future start date.

Credit and interest maturity structure (SEK million) (excl. construction credits and overdraft facilities)

	Interest maturity		Credit maturity
Term	Amount	Average interest	Credit agreements	Utilized
0-1 years	872.3	1.80%	369.6	369.6
1-2 years	7.0	3.52%	222.0	222.0
2-3 years	100.0	2.01%	842.9	842.9
3-4 years	100.0	2.20%	579.5	579.5
4-5 years	300.0	1.84%	465.3	465.3
> 5 years	1,100.0	2.07%	0.0	0.0
Total	2,479.3	1.95%	2,479.3	2,479.3

Maturity structure derivatives (SEK million)
Maturity Interest rate derivatives	Interest rate	Forward starting interest rate derivatives	Interest	Value
0-1 years	0.0	0.0
1-2 years	7.0	0.0	2.01%	-0.2
2-3 years	100.0	0.0	0.50%	-0.9
3-4 years	100.0	0.0	0.69%	-1.9
4-5 years	300.0	0.0	0.33%	-2.2
> 5 years	700.0	400.0	0.56%	-21.3
Total	1,207.0	400.0		-26.6

For more detailed information on K-Fastigheter's financial risks and finance policy, see the 2019 Annual Report (Note 21 Financial risks and finance policies).

LEASES

During the period, the Group expensed leasing fees of SEK 0.1 million (0.0), which were attributable to low-value leases. The Group has no short-term leases or variable leasing fees.

	Right-of-use assets
(SEK million)	Site leaseholds	Vehicles	IT Equipmen	Total	Leasing liabilities
As 0f 1 January 2020	7.0	2.1	0.0	9.2	9.2
Additional agreements	0.0	0.0	0.6	0.6	0.6
Amortization and depreciation	0.0	-0.3	-0.1	-0.3	0.0
Terminated agreements	0.0	-0.1	0.0	-0.1	-0.1
Revaluations of agreements	12.2	0.0	0.0	12.2	12.2
Interest costs	0.0	0.0	0.0	0.0	0.0
Leasing fees	0.0	0.0	0.0	0.0	-0.3
As 0f 31 March 2020	19.2	1.7	0.6	21.6	21.6

SEGMENT REPORTING

Group management currently identifies the following three business areas as its operating segments: Property Management, Project Development and Construction. The operating segments are monitored by the Group's CEO, the Board of Directors and the management team.

2020 Jan- Mar Income Statement (SEK million)	Property Man agement	Project Development (SEK million)	Cons truction	Other	Group
Rental income	47.8	0.0	0.0	0.0	47.8
Other operating income	0.0	0.0	4.8	0.0	4.8
Operating costs	-17.3	0.0	-3.9	0.0	-21.3
Gross profit	30.5	0.0	0.8	0.0	31.3
Central administration costs	-3.3	-3.3	-3.3	0.0	-10.0
Depreciation/amortization	-0.4	-0.4	-0.4	0.0	-1.2
and impairment Profit from participations in	0.0	0.0	0.0	-0.5	-0.5
associated companies*
Net interest income	-11.2	0.0	0.0	0.0	-11.2
Profit before changes in value	15.5	-3.7	-2.9	-0.5	8.4
Value change, properties Changes in value of derivatives	26.9	94.5	0.0	0.0	121.4
and other	-13.8	0.0	0.0	0.0	-13.8
Profit before tax	28.7	90.8	-2.9	-0.5	116.0
Tax	0.0	0.0	0.0	-23.7	-23.7
Profit for the period	28.7	90.8	-2.9	-24.2	92.3
31 Mar 2020 Balance Sheet( SEK million)	Property Man agement	Project Development (SEK million	Cons truction	Other	Group
Non-current assets	4,297.8	766.5	18.9	34.7	5,117.9
Current assets	69.8	0.0	10.7	555.0	635.4
Total assets	4,367.6	766.5	29.6	589.7	5,753.3
Non-current liabilities	2,413.0	425.0	1.8	29.7	2,869.5
Current liabilities	477.7	0.0	53.3	22.0	553.1
Total liabilities	2,890.7	425.0	55.1		51.7 3,422.6

2019 Jan- Mar Income Statement (SEK million)	Property Man	Project Development	Cons truction	Other	Group
Rental income	agement 33.0	(SEK million) 0.0	0.0	0.0	33.0
Other operating income	0.3	0.0	1.5	0.0	1.8

Operating costs	-11.6	0.0	-1.7	0.0	-13.3
Gross profit	21.7	0.0	-0.2	0.0	21.5
Central administration costs Depreciation/amortization and	-2.4 -0.8	-2.4 -0.8	-2.4 -0.8	0.0 0.0	-7.2 -2.5
impairment Profit from participations in associated companies*	0.0	0.0	0.0	1.5	1.5
Net interest income	-7.4	0.0	0.0	0.0	-7.4
Profit before changes in value	11.1	-3.2	-3.5	1.5	5.9
Value change, properties	8.6	38.9	0.0	0.0	47.5
Changes in value of derivatives and other	-8.8	0.0	0.0	10.7	1.9
Profit before tax	10.9	35.7	-3.5	12.3	55.3
Tax	0.0	0.0	0.0	-12.0	-12.0
Profit for the period	10.9	35.7	-3.5	0.3	43.3
31 Mar 2019 Balance Sheet( SEK million)	Property Man agement	Project Development (SEK million)	Cons truction	Other	Group
Non-current assets	2,593.0	611.3	16.6	121.3	3,342.2
Current assets	9.4	0.0	49.9	127.8	187.1
Total assets	2,602.3	611.4	66.5		249.2 3,529.4
Non-current liabilities	1,230.0	397.4	3.5	537.4	2,168.4
Current liabilities	179.1	0.0	129.0	26.1	334.2

* Profit from participations in Group, associated and jointly controlled companies.

S U M M A R Y C O N S O L I D AT E D CASH FLOW STATEMENT

Consolidated Cash flow Statement (SEK million)	2020 Jan-Mar	2019 Jan-Mar	2019 Jan-Dec
Operating activities
Gross profit adjusted for central administration, depreciation/amortization and
impairment	20.1	11.7	53.7
Adjustment for items not affecting cash flow	1.2	2.5	15.2
Dividend received	0.0	0.0	37.1
Net interest income	-11.2	-7.4	-35.3
Tax paid/received	-0.6	-5.4	-1.2
Cash flow from operating activities before changes in working capital	9.5	1.5	69.4
Change in operating receivables	-77.3	-21.7	-47.5
Change in operating liabilities	-6.1	15.7	27.6
Cash flow from operating activities	-74.0	-4.6	49.5
Investing activities
Investments in Group, associated and jointly controlled companies	-1.6	0.0	-0.1
Property investments	-297.6	-4.8	-450.9
Investments in machinery and equipment	-1.2	-0.4	-6.7
Investments in construction in progress	-224.3	-132.6	-513.6
Disposals of current investments	0.0	0.0	110.9
Investments in other financial non-current assets	0.0	0.0	-5.4
Disposals of properties	0.0	0.0	2.3
Cash flow from investing activities	-524.7	-137.9	-863.5
Financing activities
Borrowings	290.8	109.2	689.2
Loan amortizations	-10.9	-7.2	-41.1
Capital contributions	0.0	0.0	892.1
Dividend paid	0.0	0.0	0.0
Cash flow from financing activities	279.9	101.9	1,540.3
Cash flow for the period	-318.8	-40.5	726.3
Opening cash and cash equivalents	779.0	52.7	52.7
Closing cash and cash equivalents	460.0	12.3	779.0

Cash and cash equivalents in the cash flow statement refer in their entirety to cash and bank balances.

PA R E N T C O M PA N Y I N C O M E STATEMENT AND BALANCE SHEET

PARENT COMPANY INCOME STATEMENT

(SEK million)	2020 Jan-Mar	2019 Jan-Mar	2019 Jan-Dec
Operating income
Net sales	0.0	0.0	0.3
Total operating income	0.0	0.0	0.3
Operating costs
Other external costs	-5.7	-5.2	-31.8
Personnel costs	-3.6	-2.4	-11.7
Amortization and depreciation	0.0	0.0	-0.1
Total operating costs	-9.4	-7.5	-43.6
Gross profit	-9.4	-7.5	-43.3
Profit from financial items
Profit from participations in Group, associated and jointly controlled companies	0.0	0.0	124.0
Net financial items	-14.8	-11.7	-12.2
Profit after financial items	-24.1	-19.1	68.5
Appropriations	0.0	0.0	26.8
Profit before tax	-24.1	-19.1	95.3
Tax on profit for the period	2.8	2.0	12.4
Comprehensive income for the period	-21.3	-17.2	107.6

PARENT COMPANY

The Parent Company owns no properties of its own. The Parent Company maintains Group-wide functions for administration, property management, financing and project development.

Sales in the Parent Company primarily relate to services invoiced to Group companies. The Parent Company's gross profit/loss for the period was SEK -9.4 million (-7.5). The increase in gross loss is due increased costs in relation to strengthening the central organization to meet future growth and the requirements made on a listed company. For the corresponding period 2019, the Parent Company costs included SEK 2.8 million relating to the IPO completed in 2019.

Parent Company profit/loss before tax was SEK -24.1 million (-19.1) and, in addition to increased costs for central organizational resources, was also affected by increased interest expenses as a majority of the Group's interest-bearing debt is now financed via the Parent Company. The Parent Company's profit/loss before tax was also affected by unrealized changes in the value of derivatives of SEK -13.8 million (-8.9), which is included in the Parent Company's net financial items.

As of 31 March 2020, in addition to cash and cash equivalents, the Parent Company's assets and liabilities consisted primarily of shares in Group companies, as well as receivables from them and liabilities towards them. At the end of the period, cash and cash equivalents in the Parent Company amounted to SEK 442.0 million (771.2).

PARENT COMPANY BALANCE SHEET

Assets (SEK million)	2020 31 Mar	2019 31 Mar	2019 31 Dec
Tangible non-current assets
Equipment	0.4	0.1	0.5
Total tangible non-current assets	0.4	0.1	0.5
Financial non-current assets
Participations in Group companies	784.5	371.1	626.4
Receivables from Group companies	861.0	406.3	865.4
Participations in associated companies	0.1	15.5	0.1
Deferred tax receivables	16.4	3.1	13.6
Total financial non-current assets	1,662.0	796.0	1,505.5
Total non-current assets	1,662.4	796.0	1,506.0
Current assets
Receivables from Group companies	302.8	131.3	173.5
Receivables from associated companies	17.1	13.3	16.6
Current tax receivables	1.1	0.5	0.8
Other current receivables	244.0	1.9	22.5
Cash and cash equivalents	442.0	10.3	771.2
Total current assets	1,007.0	157.3	984.7
Total assets	2,669.4	953.4	2,490.7

Equity and liabilities (SEK million)	2020 31 Mar	2019 31 Mar	2019 31 Dec
Equity
Restricted equity	54.2	0.1	54.2
Unrestricted equity	975.1	33.7	996.4
Total equity	1,029.3	33.7	1,050.6
Non-current liabilities
Liabilities to Group companies	0.0	26.8	0.0
Long-term interest-bearing liabilities	863.1	423.1	867.5
Derivative instruments	26.3	14.7	12.5
Other provisions and non-current liabilities	12.8	19.2	12.8
Total non-current liabilities	902.2	483.7	892.8
Current liabilities
Current interest-bearing liabilities	17.9	8.5	17.9
Accounts payable	1.7	1.8	2.4
Liabilities to Group companies	709.1	400.9	514.1
Liabilities to associated companies	0.0	14.5	0.0
Other current liabilities	6.9	8.6	6.9
Accrued costs and prepaid income	2.4	1.7	6.0
Total current liabilities	737.9	436.0	547.3
Total liabilities	1,640.1	919.7	1,440.1
Total equity and liabilities	2,669.4	953.4	2,490.7

O P P O R T U N I T I E S A N D R I S K S FOR THE GROUP

Preparing financial reports in accordance with IFRS requires Group management to make assessments, estimates and assumptions affecting how accounting principles are applied and the carrying amounts for assets, liabilities, income and expenses. The estimates and assumptions are based on historical experience and other factors that appear reasonable under the prevailing circumstances. The results of these estimates and assumptions are then applied in estimating the carrying amounts of assets and liabilities, which would not otherwise be evident from other sources. Actual outcomes may deviate from these estimates and assessments.

K-Fastigheter's operations, financial position and profit can be affected, directly or indirectly, by a number of risks, uncertainties and external factors, where the effect on the Group's operating profit can be controlled to varying degrees.

The Group's operations are dependent on general economic and political trends, particularly in Sweden, which can affect demand for housing and premises. All identified risks are monitored continuously and risk mitigation measures are taken to limit the effects.

The most significant opportunities and risks for the Group are commented on below. Otherwise, please refer to the 2019 Annual Report. The risk scenario for the Parent Company is the same as that for the Group.

OPPORTUNITIES AND RISKS IN CASH FLOW

It is K-Fastigheter's ambition to be an attractive landlord with whom the tenants wish to remain and who they would recommend to others. The Group takes an active approach, with its three business areas together creating homes that attract future tenants by establishing conditions for secure housing and working actively on aspects including location, design and space efficiency.

K-Fastigheter owns properties in several attractive locations and the Group focuses on residential properties in locations with favorable long-term demand for rented accommodation. Since large parts of K-Fastigheter's property stocks are newly constructed, the property costs are relatively low. The Group has also made a strategic decision to construct and retain buildings with an unlimited time frame, meaning that K-Fastigheter, in the short term during the construction process, often chooses more expensive solutions, which benefits the Group in the long term through lower property costs and/or increases the attractiveness of the Group's apartments.

On the whole, the assessment is that K-Fastigheter's enjoys considerable opportunities to maintain a rent level, that is mutually attractive to both the landlord and tenant, combined with low vacancy ratio and low property costs.

OPPORTUNITIES AND RISKS IN PROPERTY VALUES

Each quarter, K-Fastigheter's property portfolio, both completed investment properties and properties under construction, is valued either externally or internally. External valuations are performed by independent valuation institutes.

Since the valuation method for properties is based mainly on a cash flow valuation, the value is primarily driven by three parameters: rent, operating and maintenance costs and direct return requirements. The rental concept includes both the actual rent level and the vacancy risk in the property stocks. In turn, the direct return requirement represents the sum of the risk-free interest rate and the risk premium that an investor can be expected to demand for a given investment.

By continuing to build attractive homes in growth locations, it is K-Fastigheter's assessment that the Group can maintain its attractive rent levels while keeping vacancy and cost levels low. The direct return requirement is controlled more by the market and is therefore more difficult for the Group to influence. K-Fastigheter deals with risk by diversifying the property stocks, by focusing primarily on residential properties where volatility in direct returns is lower and by working with conservatively set financial risk limits. Furthermore, by being active in the transaction market and by performing valuations on a quarterly basis, K-Fastigheter continuously obtains market trend data and therefore has opportunities to apply measures in good time.

Sensitivity analysis (SEK million)	Cash flow	Fair value
Direct return requirement +/- 0.1%	-	89.0
Rental value +/- 1%	2.1	49.1
Operating and maintenance costs +/- 1%	0.4	8.4
Long-term vacancy ratio +/- 1%	2.1	49.1

Change in value of completed	-10%	+10%
investment properties
Property value +/- 10%	-425.4	425.4
Loan-to-value ratio	64%	53%

FINANCIAL RISK

Financial risk consists of currency, interest rate, financing, liquidity and credit risk, all of which are regulated in the Finance policy adopted by the Board.

K-Fastigheter's finance department works operationally with these risks by, for example, interest and capital hedging the credit portfolio, maintaining a favorable and proactive dialog with the Group's partner banks and continuously monitoring the Group's liquidity situation.

The work of the finance department is governed in part by a number of internal target figures for each risk category and, in part, by the Group's overall financial targets and risk limits. This is intended to limit the financial risks, and to purposely achieve a favorable long-term trend in net financial items and to have a positive impact on consolidated profit. Furthermore, under existing loan agreements, K-Fastigheter is required to monitor and report on a number of external target figures (financial covenants) on a quarterly basis. As per 31 March 2020, these external target figures had been met.

Financial targets	Financial	Financial	Outcome 31
	targets	covenants	March 2020
Loan-to-value ratio, %	max. 70%	max. 70.-75%	48.2%
Equity/assets ratio, %	min. 25%	min. 25%	40.5%
Interest coverage ratio,	min. multiple	min multiple	multiple of 2.4
multiple	of 1.75	of 1.50-1.75

EFFECTS OF THE COVID-19 PANDEMIC

Since the beginning of March 2020, society has been impacted by considerable uncertainty and insecurity, both nationally and internationally, due to the spread of the novel corona virus in Sweden and in the world. However, in connection with preparing this Interim report, the actual impact of the spread of the coronavirus on K-Fastigheter's operations is limited. It is currently uncertain how the coronavirus will affect K-Fastigheter looking ahead, although the impact is assessed continuously and will be reported in future Interim Reports. New information will be presented in press releases when required.

K-Fastigheter has a stable business model building on crossfunctional efforts in project development, construction and property management, which generate profitability at all stages. The Group holds a strong position in the Öresund region and in selected towns and cities in southern and western Sweden. K-Fastigheter has an attractive property portfolio with 86 percent of contracted rental income deriving from housing and with commercial income being spread between a large number of individual contracts.

K-Fastigheter's financial position was stable as of 31 March 2020, with an equity/assets ratio of 40.5 percent, a loan-to-value ratio of 48.2 percent and favorable liquidity with cash and cash equivalents of SEK 460.0 million.

Presented below are the adopted positions that, in the current assessment, have been made regarding those effects that could have a material impact on K-Fastigheter's profit and financial position in connection with the significant risks presented in this section.

RENTAL INCOME

Several of K-Fastigheter's commercial tenants are facing strained financial conditions in the future due to lack of demand. For these operators, rent often represent a significant expense. It is not possible to rule out an increased frequency of bankruptcies in the Swedish economy, which will lead to increased vacancies and rental losses for property owners. Discussions are also likely to arise regarding temporary or permanent rent reductions. On the whole, it cannot be ruled out that this will affect K-Fastigheter in the future, both in the form of increased vacancies and decreased rental income, as well as increased requirements for provisions for expected credit losses.

At the time of publication of this Interim report, a number of commercial tenants have contacted K-Fastigheter to discuss future rent relief. K-Fastigheter has agreed liquidity relief measures with a number of tenants, with repayment at a future date. K-Fastigheter maintains an ongoing dialog with other tenants. No settlements have been reached that have an impact on K-Fastigheter's profit, and the Group is only aware of a few individual tenants where bankruptcy or reconstruction proceedings have been initiated.

As of 31 March 2020, K-Fastigheter's total contracted rental income from commercial tenants amounted to SEK 32.4 million, distributed over some 125 agreements, where the single largest individual agreement represents approximately 3 percent of total contracted rental income and just over 4 percent of total contracted rental income relates to especially vulnerable sectors such as hotels and restaurants. Only one rental contract includes sales-based rent.

PROPERTY VALUE

Rental income (vacancies) and direct return requirements are two important parameters in determining the fair value of investment properties. The effect on rental income of the coronavirus pandemic has been commented on above.

The direct return requirement is normally determined by two main factors – general market risk and specific property risk. The market risk is linked to general economic trends, and is influenced by how investors prioritize asset classes and financing opportunities, for example. The specific property risk is affected by factors such as property location, type of property and property standard and type of tenants. It cannot be ruled out that the coronavirus pandemic could affect the market risk, particularly in the future, implying an increased return requirement from investors, with the ensuing consequence that the fair value of properties declines. In addition to the direct effect on profit, this kind of disruption could also entail a weakening of property companies' financial position and thereby also their financing ability, for example.

On submission of this Interim report, information has been obtained from independent valuation experts, among others, to confirm the positions adopted by the company regarding fair value as of 31 March 2020. There were no indications that this position should be revised, although there is considerable uncertainty as to the long-term effects and, for this reason, the company will report on the situation on an ongoing basis.

An important part of the assessment is that K-Fastigheter's property stocks are geographically diversified and that 84 percent of income pertains to housing, which may be considered to reduce the risk of major effects on property values.

FINANCING AND FINANCIAL EXPENSES

K-Fastigheter is dependent on bank financing, partly for financing completed properties, partly to complete properties under construction. Interest expenses are the largest-single expense in the consolidated Income Statement.

It cannot be ruled out that as the economy slows down as a result of the spread of the coronavirus, credit losses will occur in the banking system, which can lead both to poorer access to financing and higher financing expenses.

Prior to the submission of this Interim report, information was collected continuously from the banks with which K-Fastigheter cooperates to confirm the positions adopted as of 31 March 2020. K-Fastigheter assesses that access to capital remains good, while the pricing of K-Fastigheter's construction credits has mainly been affected by increased bank borrowing costs. Furthermore, the base rate, which is primarily STIBOR 90 days for K-Fastigheter, increased by approximately 0.2 percentage points in March. The short and medium-term effect on K-Fastigheter's financial expenses for interest-bearing liabilities for existing investment properties, which comprises approximately 85 percent of K-Fastigheter's total interest-bearing debt as of 31 March 2020, is limited because as of 31 March 2020 the company had an average period for capital tied up of 2.9 years and an average interest period of 3.7 years. This is apparent from the average interest rate in the period, which only increased from 1.90 percent to 1.95 percent, despite STIBOR 90 days increasing by approximately 0.20 percentage points.

As of 31 March 2020, agreed construction credits amounted to SEK 972.8 million, and utilized to SEK 425.0 million. An increase in the cost of construction credits of 1 percent, corresponding to approximately SEK 4.3 million would, at the time of submitting this report, imply increased costs in K-Fastigheter's ongoing construction projects of some 0.4 percent. The Group has not noted any increase at present.

OTHER INFORMATION

MARKET OUTLOOK

K-Fastigheter's offering meets the market's demand for quality housing at the right cost. The Group's concept buildings, developed in-house, generates conditions for cost control and financial efficiency throughout the chain, from building rights to property management over the lifetime of the building. With property stocks and a project portfolio totalling more than 5,450 homes (1,789 in management, 963 in construction and 2,700 in project development), K-Fastigheter has, from the outset in 2010, developed its operations as a property company with strong positions and commitments in several select locations in southwestern Sweden.

It is the Group's view that demand remains favorable in Skåne, particularly in the Öresund region and in the Västra Götaland, Copenhagen and Mälardalen regions, and areas with structural housing shortages. It is currently uncertain how the coronavirus will affect K-Fastigheter looking ahead, although the impact is assessed continuously and will be reported in future Interim reports. New information will presented in press releases where necessary.

SUSTAINABILITY AND VALUE CREATION

For K-Fastigheter, sustainability is a concept that spans far more dimensions than focusing solely on environmental impact. K-Fastigheter values commitment in its own operations and to the sustainability issues that the company knows that its customers and suppliers and the authorities place high on their agendas.

K-Fastigheter mainly pursues initiatives in product development, procurement and social sustainability. K-Fastigheter's business concept is to construct concept buildings, that is, a limited number of alternative buildings that can be adapted to each location. The foundation is a systematic working method, providing optimal resource utilization and ensuring both superior quality and a beneficial working environment. By using an industrial process at proprietary production facilities, consumption of materials, logistics and other resources can be planned

in detail, reducing waste, streamlining flows and lowering costs in areas that do not create value. K-Fastigheter's concept buildings are constructed with the ambition of meeting requirements corresponding to those set by the Swedish Miljöbyggnad Silver certification system, which is administrated by the Sweden Green Building Council ("SGBC").

K-Fastigheter participates in efforts to reduce fossil fuels dependency by, for example, installing photovoltaic cells on suitable buildings. Since early 2019, electricity has been procured exclusively from suppliers offering electricity from renewable sources, mainly wind power.

SEASONAL VARIATIONS

Property management is associated with certain seasonal variations primarily in tariff-related heating costs. In other regards, there are no significant seasonal variations in K-Fastigheter's operations.

ORGANIZATION AND EMPLOYEES

The Group's Parent Company is K-Fast Holding AB. At the end of the period, the Group consisted of 50 wholly-owned subsidiaries and six associated company groups. The number of employees amounted to 69 (65), of whom 18 were women (16) and 51 were men (49).

Operations are organized into three business areas: Project Development, Construction and Property Management. The relevant Business Area Managers report to, and are part of, Group management.

Group-wide functions also encompass accounting and finance, IT, IR/ communications and HR, and the Group's Heads of Treasury, Finance, IR/Communications and HR are members of Group management.

The head office is located in Hässleholm, Sweden. There are also offices in Helsingborg, Kristianstad and Landskrona, as well as a production facility in Osby. In the spring of 2020, an additional production facility will be completed adjacent to the Group's head office in Hässleholm.

K-FAST 2.0

K-Fastigheter's property stocks consist predominantly of newly constructed concept buildings developed in-house. The Group works continuously to maintain and upgrade the older buildings it has acquired. Under the company's "K-Fast 2.0" programme, the apartments are constantly renovated so that surfaces, plumbing, mains and technical installations correspond to the standard found in the concept buildings produced in-house.

By using the same materials and fittings in its efforts both within the framework of K-Fast 2.0 and in its new construction projects, K-Fastigheter achieves larger volumes, strengthening the negotiating conditions of the company's purchasing organization.

The concept is cost-efficient and appreciated by tenants. The quality enhancements help reduce property management costs and increase the useful life of the building, while providing opportunities to adjust rent levels among the property stocks, which, in turn, provides a satisfactory return on invested capital.

A key aspect of the implementation of K-Fast 2.0 is that renovation should entail reasonable rent increases, so that existing tenants can afford to stay long term. This has been achievable because it has been possible to keep renovation costs at an average of SEK 4,300 per square metre. Besides cutting operating costs, raising standards through K-Fast 2.0 brings an annual rental increase of SEK 320 per square metre, meaning that capital invested in K-Fast 2.0 generates an average direct return of about 7.4 percent.

On 31 March 2020, the Group owned 475 older apartments, which are added to the ongoing efforts to raise standards. Of these, 57 apartments have been renovated in accordance with K-Fast 2.0.

ACCOUNTING PRINCIPLES

K-Fast Holding AB adheres to the IFRS standards adopted by the EU. This Interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. Disclosures in accordance with IAS 34.

The Group measures all financial assets and liabilities at amortized cost, with the exception of derivative instruments, which are measured at fair value through the Income Statement. In K-Fastigheter's assessment, the reported value of financial assets and financial liabilities valued at amortized cost represents a good approximation of fair value. The Parent Company measures all financial assets and liabilities at amortized cost. For further details, see Note 21, Financial risk and finance policies in the 2019 Annual Report.

For complete accounting principles, please refer to K-Fast Holding AB's 2019 Annual Report. No accounting principles have changed from the Annual Report 2019.

RELATED-PARTY TRANSACTIONS

The Group's related parties include all Board Members, CEO and members of company management, as well as individuals and companies closely related to them. There were no related party transactions that were not on market terms. No related party transactions have occurred beyond the amounts listed below.

Ongoing agreements, 2020

In the period 1 January 2020 to 31 March 2020, ongoing agreements with related parties encompassed:

Lease between Jacob Karlsson and K-Fast Holding AB regarding an apartment in central Stockholm. Monthly rent SEK 13,500. Total purchases 2020: SEK 0.1 million (0.1).
Consultancy agreement between Novum Samhällsfastigheter AB and K-Fast Holding AB relating to management and project development-

related consultancy work. Total purchases 2020: SEK 0.6 million (0.8).

Agreement between law firm VICI AB, in which Board Member Christian Karlsson is a partner, and K-Fast Holding AB regarding various legal consultations including corporate law and transactions. Total purchases 2020: SEK 0.9 million.
Consultancy agreement between circle360 communication AB (Anders Antonsson) and K-Fast Holding AB relating to IR consultancy. Total purchases 2020: SEK 0.4 million (0.1).
Contracting agreement signed between Tygelsjö Projekt AB and K-Fast Bygg Syd AB regarding construction of 30 Low-Rise buildings in Tygelsjö. Total sales in 2020: SEK 6.6 million (14.6).

Transactions 2020

Related-party transactions during the period 1 January 2020 to 31 March 2020:

As per 31 January 2020, K-Fast Holding AB acquired all shares in Sävenäsrondellen AB from a company controlled by Erik Selin. The company holds the building rights for the Göteborg Sävenäs 131:13 property. The agreement was signed in July 2019. Purchase price, SEK 80.0 million.

K-Fastigheter's President and CEO, Jacob Karlsson, and CFO, Martin Larsson, will comment on the Group's Interim Report on Tuesday 5 May 2020 at 8:30 a.m CEST.

The presentation materials (slides + audio) will be available at https://www.k-fastigheter.se/en/investors/presentations. The presentation will be held in Swedish with presentation materials available in English and Swedish.

Questions may be addressed in writing to [email protected] with answers being compiled on an ongoing basis during the day and being published on, www.k-fastigheter.se/en.

This Interim Report has not been subject to review by the company's auditors. The Board of Directors and the CEO provide their assurance that the Interim Report provides a true and fair view of the operations, financial position and profit of the Parent Company and the Group, describing the significant risks and uncertainties faced by the Parent Company and the companies within the Group.

Hässleholm, Sweden, 5 May 2020

Erik Selin Chairman of the Board Christian Karlsson Board Member

Jesper Mårtensson Board Member

Ulf Johansson Board Member

Sara Mindus Board Member

Jacob Karlsson CEO/Board Member

T H E S H A R E A N D S H A R E H O L D E R S AS OF 31 MARCH 2020

On 29 November 2019, K-Fast Holding AB's class B shares (ticker: KFAST B) were launched on Nasdaq Stockholm, Mid Cap, in the Real Estate segment. On 31 March 2020, K-Fastigheter's market capitalization was SEK 4,822.2 million.At the end of the period, there were approximately 3,200 shareholders.

On March 31, 2020, there were a total 33,888,528 shares in K-Fast Holding distributed between 3,750,000 class A shares and 30,138,528 class B shares respectively. The total number of votes on 31 March 2020 was: 48,888,528.

Each class A share conveys five votes and each class B share conveys one vote. All shares carry equal rights to participate in the company's assets

and earnings and to any surplus on liquidation. Neither class A nor class B shares are subject to any transfer restrictions.

SHARE PRICE TREND AND TRADING

During the period 1 January – 31 March 2020, approximately 2.3 million KFAST class B shares were traded on Nasdaq Stockholm. The daily turnover of K-Fastigheter's shares on Nasdaq Stockholm averaged 36,551 shares and the average price paid was SEK 162.89. The highest price paid during the period was SEK 186.00 on 11 February 2020, and the lowest price paid was SEK 125.10 on 16 March 2020. On 31 March 2020, the share price was SEK 160.00 (last paid). Market value of all shares in the company, based on the last price paid for a class B share on 31 March 2020, amounted to SEK 5,422.2 million.

TEN LARGEST SHAREHOLDERS (IN ORDER OF TOTAL VOTING POWER) AS PER 31 MARCH 2020

Name	Class A shares*	Class B shares*	Total number of shares	Total number of votes	Percentage of capital	Percentage of votes
Erik Selin Fastigheter AB	1,875,000	10,625,000	12,500,000	20,000,000	36.9%	40.9%
Jacob Karlsson AB	1,875,000	10,625,000	12,500,000	20,000,000	36.9%	40.9%
Länsförsäkringar funds	0	1,019,063	1,019,063	1,019,063	3.0%	2.1%
AP2	0	944,365	944,365	944,365	2.8%	1.9%
Capital Group	0	927,828	927,828	927,828	2.7%	1.9%
AP4	0	762,376	762,376	762,376	2.2%	1.6%
Handelsbanken funds	0	574,691	574,691	574,691	1.7%	1.2%
Nergården families**	0	478,100	478,100	478,100	1.4%	1.0%
SEB funds	0	473,677	473,677	473,677	1.4%	1.0%
Celox Management	0	380,900	380,900	380,900	1.1%	0.8%
Ten largest shareholders	3,750,000	26,811,000	30,561,000	45,561,000	90.2%	93.2%
Other shareholders	0	3,327,528	3,327,528	3,327,528	9.8%	6.8%
Total	3,750,000	30,138,528	33,888,528	48,888,528	100.0%	100.0%
Of whom, Board of Directors and Group Management	3,750,000	21,881,150	25,631,150	40,631,150	75.6%	83.1%

* Each class A share conveys five votes and each class B share conveys one vote Source: Euroclear and K-Fast Holding AB ** Through Mjöbäcksvillan Entreprenad Holding AB and Västkuststugan AB There are no potential shares (e.g. Convertibles) in the company.

Marketplace	Nasdaq Stockholm
Name of share	K-FAST Holding B
Ticker	KFAST B
ISIN code	SE0013382355
Segment	Nasdaq, Mid Cap
Sector	Real Estate
Currency	SEK
Total number of shares outstanding	33,888,528
Total number of class B shares listed on the Nasdaq Stockholm exchange	30,138,528
Closing price, 30 March 2020	SEK 160,00
Market value, 31 March 2020	SEK 5,422.2 million.

Source: Nasdaq

Aktiekurs, 2 december 2019–31 mars 2020

Share price 2 December 2019 - 31 March 2020

CURRENT EARNING CAPACITY

The table below presents the earning capacity of K-Fastigheter's property management operations on a 12-month basis as per 31 March 2020. Earning capacity is not a forecast for the current year or the next twelve months but is to be viewed solely as a theoretical snapshot and is presented for illustrative purposes only. Current earning capacity does not include an assessment of the future rent trends, vacancy rates, property costs, interest rates, changes in value, acquisitions or disposals of properties, or other factors.

Current earning capacity is based on properties held as per 31 March 2020 and their financing, meaning that current earning capacity illustrates the earnings of the management operations, on an annual basis, at that point in time. Transactions and completion of ongoing new construction projects with a transfer and completion date after 31 March 2020 have therefore not been included in the calculation.

The Income Statement for the management operations is also affected by development in the value of the property portfolio, as well as by upcoming property acquisitions and/or disposals. Additional items affecting earnings include changes in the value of derivatives. None of the above has been taken into account in current earning capacity, nor in the item Profit from participations in associated companies.

Earning capacity is based on contracted rental income from the property portfolio, estimated property costs on an annual basis based on historical outcomes for properties under management, as well as property costs and central administration costs relating to business areas estimated on an annual basis based on the current scale of administration. Costs for interest-bearing liabilities have been based on current interest-bearing liabilities and current interest rates (including effects of derivative instruments) at the end of the year.

	2020	2019	2019	2019	2019	2018
(SEK million)	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
Rental value	207.9	196.6	177.2	161.9	136.9	133.4
Vacancy	-7.3	-6.1	-4.7	-3.3	-2.9	-0.9
Rental income	200.6	190.5	172.5	158.6	134.0	132.5
Operating costs	-28.0	-27.0	-24.3	-22.5	-20.3	-19.4
Maintenance	-7.5	-7.3	-6.8	-6.5	-5.9	-5.6
Property tax/ground rent	-3.0	-2.6	-2.1	-1.9	-1.6	-1.6
Property administration	-16.9	-15.0	-14.3	-13.5	-12.8	-12.8
Operating surplus	145.2	138.6	124.9	114.1	93.3	93.0
Central administration	-13.4	-9.6	-7.8	-7.9	-6.1	-4.3
Net interest income	-45.0	-46.9	-38.3	-33.1	-31.4	-29.0
Profit from property management	86.8	82.1	78.8	73.1	55.8	59.7

KEY DATA

In the Interim Report, K-Fastigheter presents certain financial measures that are not defined in accordance with IFRS. K-Fastigheter believes that these measures provide valuable additional information to investors and management as they enable assessment of the Company's performance. Since not all companies calculate financial measures in the same way, these are not always comparable to measurements used by other companies. Accordingly, these financial measures should not

be considered as a replacement for measures defined in accordance with IFRS. The table below presents financial measures that are not defined in accordance with IFRS.

Compared with the 2019 Annual Report, the definitions of the alternative key data have not changed.

Property-related	2020 Jan-Mar	2019 Jan-Mar	Rolling 4 quarters Apr 2019–Mar 2020	2019 Jan-Dec
Rental value, SEK million	207.9	136.9	207.9	196.6
Average financial letting ratio, %	94.0%	95.7%	96.2%	96.8%
Surplus ratio, %	63.7%	65.8%	67.6%	68.4%
Lettable area, m2	137,161	106,240	137,161	130,486
Number of apartments under management	1,789	1,240	1,789	1,711
Number of apartments under construction	963	649	963	700
Number of apartments under project development	2,692	679	2,692	1,340
Financial
Interest coverage ratio, multiple	2.4	2.6	2.6	2.6
excl. stock exchange listing costs	2.4	2.8	2.7	2.8
Equity/assets ratio, %	40.5%	29.1%	40.5%	41.8%
Loan-to-value ratio, %	48.2%	60.9%	48.2%	40.2%
Period for which capital is tied up, years	2.9	2.9	2.9	3.2
Period of fixed-interest, years	3.7	3.7	3.7	3.3
Average interest, %	1.95%	1.95%	1.95%	1.90%
Net investments, SEK million	509.2	137.5	1,432.8	1,061.1
Profit from property management, SEK million	15.5	11.1	57.3	52.9
Long-term net asset value (NAV), SEK million	2,668.2	1,275.1	2,668.2	2,540.2
Share-related
Profit from property management per share, SEK	0.46	0.44	2.06	2.05
Growth in profit from property management per share, %	3.1%	25.9%	17.8%	24.6%
Profit after tax per share for the period, SEK	2.72	1.73	14.90	14.14
Long-term net asset value (NAV), SEK	78.74	51.01	78.74	74.96
Growth in long-term net asset value (NAV), per share, %	5.0%	5.0%	54.4%	54.4%
Equity per share, SEK	68.78	40.98	68.78	66.05
Number of shares outstanding at the end of the period, thousands	33,889	25,000	33,889	33,889
Average number of shares outstanding, thousands	33,889	25,000	27,799	25,830

R E C O N C I L I AT I O N TA B L E A N D D E F I N I T I O N S

PROPERTY-RELATED KEY DATA			Rolling 4 quarters
Rental value, SEK million	2020 Jan-Mar	2019 Jan-Mar	Apr 2019– Mar 2020	2019 Jan-Dec	Definition	Motivation
A Contract value on an annual basis at end of the period, SEK million	200.6	134.0	200.6	190.5
B Vacancy value on an annual basis at end of the period, SEK million	7.3	2.9	7.3	6.1	Closing annual rent plus estimated market rent for vacant space.	Rental value is used to illustrate the Group's potential income.
A+B Rental value on an annual basis at end of the period, SEK million	207.9	136.9	207.9	196.6

Financial letting ratio, %
A Contract value on an annual basis at end of the period, SEK million	200.6	134.0	200.6	190.5	Contractual annual rent for leases valid	This key figure illustrates the
B Vacancy value on an annual basis at end of the period, SEK million	7.3	2.9	7.3	6.1	at the end of the period in relation to	financial degree of utilization of
A/(A+B) Financial letting ratio, %	96.5%	97.9%	96.5%	96.9%	rental value.	K-Fastigheter's properties.

Average financial letting ratio, %
A Rental income for the period, SEK million	47.8	33.0	171.6	156.8
B Rental value for the period, SEK million	50.8	34.5	178.3	161.9	Rental income during the period in rela tion to the rental value during the period.	This key figure illustrates the financial degree of utilization of
A/B Average financial letting ratio, %	94.0%	95.7%	96.2%	96.8%		K-Fastigheter's properties.

Surplus ratio, %
A Gross profit from property management for the period in accordance with the Income	30.5	21.7	116.1	107.3
Statement, SEK million					Operating surplus in relation to rental income.	This key figure illustrates the profitability of the property man
B Rental income for the period in accordance with the Income Statement, SEK million	47.8	33.0	171.6	156.8		agement operations.
A/B Surplus ratio during the period, %	63.7%	65.8%	67.6%	68.4%

Lettable area at the end of the period, m2	137,161	106,240	137,161	130,486	Total area available for lease
Number of apartments under management at the end of the period	1,789	1,240	1,789	1,711	Total number of Housing under	Key figure to illustrate K-Fas tigheter's capacity to achieve operational targets.
Number of apartments under construction at the end of the period	963	649	963	700	management at the end of the period. Total number of Housing under
Number of apartments under project development at the end of the period	2,692	679	2,692	1,340	construction at the end of the period Total number of Housing in project development at the end of the period.

FINANCIAL KEY DATA

Interest coverage ratio, multiple
A Profit from property management for the period in accordance with the Income Statement, SEK million	15.5	11.1	57.3	52.9	Profit from property management with
B Depreciation/amortization and impairment attributable to property management	-0.4	-0.8	-4.6	-5.1	reversal of depreciation/ amortization and impairment and net interest	This key figure illustrates financial risk by highlighting the sensitivity of the company's performance to interest rate fluctuations.
during the period in accordance with the Income Statement, SEK million					income and divided by net interest income (incl. realized change in value of current derivative instruments).
C Net interest income for the period in accordance with the Income Statement, SEK million	-11.2	-7.4	-39.1	-35.3
(A-B-C)/-B Interest coverage ratio during the period, multiple	2.4	2.6	2.6	2.6
D Costs during the period attributable to stock exchange listing in accordance with the Income	0.0	-2.8	-10.5	-13.3
Statement, SEK million
(A-B-C-D/3)/B Adjusted interest coverage ratio during the period, multiple	2.4	2.8	2.7	2.8	Interest coverage ratio adjusted for costs attributable to stock exchange
					listing included in central admin istration.
Equity/assets ratio, %
A Equity at the end of the period in accordance with the Balance Sheet, SEK million	2,330.8	1,024.5	2,330.8	2,238.5		The key figure highlights
B Total equity and liabilities at the end of the period in accordance with the Balance Sheet, SEK million	5,753.0	3,523.5	5,753.0	5,352.3	Equity as a percentage of total assets at the end of the period.	financial risk by illustrating the scale of equity in relation to
A/B Equity/assets ratio, %	40.5%	29.1%	40.5%	41.8%		total assets.

Loan-to-value ratio, %
A Interest-bearing liabilities at the end of the period in accordance with the Balance Sheet, SEK million*	2,519.3	1,629.6	2,519.3	2,371.9
B Cash and cash equivalents and net value of current investments at the end of the	460.0	46.9	460.0	779.0	Net liabilities related to investment and business properties in relation to the	Loan-to-value ratio is used to illustrate K-Fastigheter's
period in accordance with the Balance Sheet, SEK million					fair value of investment and business	financial risk.
C Investment and business properties at the end of the period in accordance with the	4,273.5	2,599.2	4,273.5	3,962.0	properties.
Balance Sheet, SEK million
(A-B)/C Loan-to-value ratio at the end of the period, %	48.2%	60.9%	48.2%	40.2%

Average interest, %					Estimated annual interest on liabilities to	Average interest is used to
A Interest expense calculated at annual rate at the close of the period, SEK million	48.4	31.7	48.4	44.3	credit institutions pertaining to investment and business properties, based on current	illustrate the interest rate risk for K-Fastigheter's interestbearing
B Interest-bearing liabilities at the end of the period in accordance with the Balance Sheet, SEK million	2,479.3	1,629.6	2,479.3	2,331.9	loan agreements, in relation to total	liabilities.
A/B Average interest rate at the end of the period, %	1.95%	1.95%	1.95%	1.90%	liabilities to credit institutions pertaining to investment and business properties.

Net investments, SEK million
A Acquisitions during the period, SEK million	355.0	4.7	908.0	557.7	Total net investments in investment and business properties and new	Key figure to illustrate K-Fas tigheter's capacity to achieve
B New construction projects during the period, SEK million	148.7	132.6	515.9	499.7	construction projects in progress operational targets. during the period.
C Extensions and remodelling during the period, SEK million	5.4	0.1	11.2	5.9
D Sales during the period, SEK million	0.0	0.0	-2.3	-2.3
A+B+C+D Net investments during the period, SEK million	509.2	137.5	1,432.8	1,061.1

*Adjusted for stage 3 of Helsingborg / Brigaden 7 & 8's share of existing construction credits (SEK 40.0 million), which, as per 31 March 2020 were not refinanced and were not, accordingly, included in interest-bearing liabilities related to investment and business properties. Stages 1 and 2 of Helsingborg/ Brigaden 7 & 8 have been refinanced and were included in interest-bearing liabilities related to investment and business properties as per 31 March 2020.

Profit from property management, SEK million	2020 Jan-Mar	2019 Jan-Mar	Rolling 4 quarters Apr 2019– Mar 2020	2019 Jan-Dec	Definition	Motivation
A Gross profit from property management for the period in accordance with the Income	30.5	21.7	116.1	107.3
Statement, SEK million B Central administration attributable to property management during the period in accordance with the Income Statement, SEK million	-3.3	-2.4	-15.0	-14.0	Gross profit from property manage ment less central administration costs and depreciation/amortization	This key figure illustrates the profitability of the property management operations.
C Depreciation/amortization and impairment attributable to property management during the period in accordance with the Income Statement, SEK million	-0.4	-0.8	-4.6	-5.1	and impairment attributable to the Property management business area and net interest income.
D Net interest income for the period in accordance with the Income Statement, SEK million	-11.2	-7.4	-39.1	-35.3
A+B+C+D Profit from property management, SEK million	15.5	11.1	57.3	52.9
Long-term net asset value (NAV), SEK million
A Equity at the end of the period in accordance with the Balance Sheet, SEK million	2,330.8	1,024.5	2,330.8	2,238.5	Reported equity with reversal of	An established measure of K-Fastigheter's and other listed companies' long-term net asset value, facilitating analyses and comparisons.
B Derivatives at the end of the period in accordance with the Balance Sheet, SEK million	26.6	15.0	26.6	12.8	deferred tax, interest rate derivatives
C Deferred tax liability at the end of the period in accordance with the Balance Sheet, SEK million	337.9	241.5	337.9	310.3	and non-controlling interests.
D Deferred tax asset at the end of the period in accordance with the Balance Sheet, SEK million	27.0	5.9	27.0	21.4
A+B+C-D Long-term net asset value (NAV) at the end of the period, SEK million	2,668.2	1,275.1	2,668.2	2,540.2

Period for which capital is tied up, years	2.9	2.9	2.9	3.2	The period for which capital is tied up with regard to liabilities to credit institutions pertaining to investment and business properties at the end of the period.	This key figure is used to illustrate the (re-) financing risk related to K-Fastigheter's interest-bearing liabilities
Period of fixed-interest, years	3.7	3.7	3.7	3.3	The period for which capital is tied up with regard to liabilities to credit institutions pertaining to investment and business properties at the end of the period.	This key figure is used to illustrate the interest rate risk for K-Fastigheter's interest-bearing liabilities.

SHARE-RELATED KEY DATA

Long-term net asset value (NAV), SEK
A Long-term net asset value (NAV) at the end of the period in accordance with the Balance	2,668.2	1,275.1	2,668.2	2,540.2
Sheet, SEK million					Long-term net asset value (NAV) in relation to the number of shares out	Used to illustrate K-Fastig heter's long-term net asset
B Number of shares outstanding at the end of the period, thousands	33,889	25,000	33,889	33,889	standing at the end of the period.	value per share in a manner that is uniform for listed companies.
A/B Long-term net asset value (NAV) per share, SEK	78.74	51.01	78.74	74.96

Growth in long-term net asset value (NAV) per share, %
A Long-term net asset value (NAV) per share at the end of the period in accordance with the Balance Sheet, SEK million	78.74	51.01	78.74	74.96	Percentage change in long-term net	Used to illustrate growth in
B Long-term net asset value (NAV) per share at the end of the preceding period in accordance with the Balance Sheet, SEK million	74.96	48.54	51.01	48.54	asset value (NAV) per share during the period.	K-Fastigheter's long-term net asset value per share in a manner that is uniform for
A/B-1 Growth in long-term net asset value (NAV) per share, %	5.0%	5.0%	54.4%	54.4%		listed companies.

Equity per share, SEK
A Equity attributable to Parent Company shareholders at the end of the period in accordance with the Balance Sheet, SEK million	2,330.8	1,024.5	2,330.8	2,238.5	Equity less minority share of equity, in relation to the number	Used to illustrate K-Fastig heter's equity per share in a manner that is uniform for listed companies.
B Number of shares outstanding at the end of the period, thousands	33,889	25,000	33,889	33,889	of shares outstanding at the end of the period.
A/B Equity per share at the end of the period, SEK	68.78	40.98	68.78	66.05

Profit from property management per share, SEK
A Profit from property management for the period in accordance with the Income Statement,	15.5	11.1	57.3	52.9	Profit from property management in relation to the average number	Used to illustrate K-Fastig heter's profit from property
SEK million					of shares outstanding during the period.	management per share in a manner that is uniform for listed companies.
B Average number of shares outstanding during the period, thousands	33,889	25,000	28,037	25,830
A/B Profit from property management per share during the period, SEK	0.46	0.44	2.04	2.05

Growth in profit from property management per share, %
A Profit from property management during the period per share, SEK	0.46	0.44	2.04	2.55	Percentage change in profit from	Used to illustrate growth in
B Profit from property management for the preceding period per share, SEK	0.44	0.35	1.74	1.64	propertymanagement per share during the period.	K-Fastigheter's profit from property management in a manner that is uniform for listed companies.
A/B-1 Growth in profit from property management per share during the period, %	3.1%	25.9%	17.8%	24.6%

Profit after tax per share for the period, SEK
A Profit after tax in accordance with the Income Statement, SEK million	92.3	43.4	414.3	365.3	Profit for the period in relation to the	Used to illustrate K-Fastigheter's earnings per share in a manner that is uni form for listed companies.
B Average number of shares outstanding during the period, thousands	33,889	25,000	28,037	25,830	average number of shares outstanding during the period.
A/B Profit after tax per share for the period, SEK	2.72	1.73	14.78	14.14

Number of shares outstanding at the end of the period, thousands	33,889	25,000	33,889	33,889
Average number of shares outstanding during the period, thousands	33,889	25,000	28,037	25,830

Calendar
Annual General Meeting 2020	19 May 2020
Interim Report January–June 2020	19 August 2020
Interim Report January–September 2020	11 November 2020

During the spring, K-Fastigheter launched an app that makes it easier and more secure for our tenants to contact us and to obtain correct information.

K-Fastigheter's app can be downloaded for free from the usual software stores, such as App Store and Google Play, by searching on "kfast".

Among other functions, the app lists vacant apartments, shows the tenant's rent invoices and provides an opportunity for reporting errors.

The app will be developed continuously in consultation with our tenants.

K-Fast Holding AB

Address: Bultvägen 7, SE-281 43 Hässleholm, Sweden Telephone: +46 (0)10 33 00 069 www.k-fastigheter.se

Contact

Jacob Karlsson

CEO e-mail: [email protected] Telephone: +46 (0)738 219 626

Martin Larsson

Deputy CEO/CFO e-mail: [email protected] Telephone: +46 (0)703 533 160

Anders Antonsson

Head of Investor Relations e-mail: [email protected] Telephone: +46 (0)709 994 970

This information is such that K-Fast Holding AB is obliged to disclose in accordance with the EU's Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. CEST on 5 May, 2020.

The Interim report is published in Swedish and English. The Swedish version is the original version and takes precedence over the English should the translation differ from the original.

AI Terminal

K-Fast Holding

2933_10-q_2020-05-05_7387f9d0-5bcf-4c2a-bb6f-b04692474354.pdf

J A N U A R Y - M A R C H 2020

INTERIM REPORT

K-FASTIGHETER IN ONE MINUTE

OVERARCHING OBJECTIVES

OPERATIONAL TARGETS

FINANCIAL TARGETS

NUMBER OF HOMES UNDER MANAGEMENT

NUMBER OF HOMES IN PRODUCTION

INVESTMENT PROPERTIES

LONG-TERM NET ASSET VALUE

MORE THAN A PROPERTY COMPANY

THE QUARTER IN BRIEF

January - March

Significant events in the first quarter of 2020

Significant events after the end of the period

A M E S S A G E F R O M THE CEO

CEO

P R O P E R T Y P O R T F O L I O A S O F 31 MARCH 2020

K - F A S T I G H E T E R ' S C O N C E P T BUILDINGS

KRISTIANSTAD

Low-Rise – flexible buildings offering considerable freedom of choice

Structural details:

HELSINGBORG

HÄSSLEHOLM

Lateral Low-Rise – variation and space efficiency

Structural details:

Apartment Block – the residential building for all locations

Structural details:

A PA R T M E N T B L O C K P L U S OFFERS MORE OPPORTUNITIES

Structural details:

A C Q U I R E D P R O P E R T I E S A N D C O M M E N C E D C O N S T R U C T I O N P R O J E C T S D U R I N G T H E F I R S T QUARTER 2020

ACQUIRED PROPERTIES

Växjö Örnen 34

Facts:

Helsingborg Amerika Norra 54

Facts:

COMMENCED CONSTRUCTION PROJECTS

71 Lateral Low-Rise apartments in Höganäs

Facts:

192 Lateral Low-Rise apartments in Gothenburg

Facts:

S U M M A R Y C O N S O L I D AT E D S TAT M E N T OF COMPREHENSIVE INCOME

P E R F O R M A N C E A N A LY S I S JANUARY – MARCH 2020

INCOME

OPERATING COSTS

CENTRAL ADMINISTRATION COSTS, DEPRECIATION/ AMORTIZATION AND IMPAIRMENT

PROFIT FROM PARTICIPATIONS IN GROUP, ASSOCIATED AND JOINTLY CONTROLLED COMPANIES

NET INTEREST INCOME

PROFIT FROM PROPERTY MANAGEMENT

CHANGES IN VALUE

TAX

Reported effective tax

Deferred tax assets attributable to:

Deferred tax liability attributable to:

PROFIT FOR THE PERIOD

S U M M A R Y C O N S O L I D AT E D STATEMENT OF FINANCIAL POSITION

C O N S O L I D AT E D S TAT E M E N T O F C H A N G E S I N E Q U I T Y

B A L A N C E S H E E T A S O F 31 MARCH 2020

INVESTMENT PROPERTIES

CASH AND CASH EQUIVALENTS

EQUITY AND NET ASSET VALUE

INTEREST-BEARING LIABILITIES AND INTEREST RATE DERIVATIVES

Credit and interest maturity structure (SEK million) (excl. construction credits and overdraft facilities)

LEASES

SEGMENT REPORTING

S U M M A R Y C O N S O L I D AT E D CASH FLOW STATEMENT

PA R E N T C O M PA N Y I N C O M E STATEMENT AND BALANCE SHEET

PARENT COMPANY INCOME STATEMENT

PARENT COMPANY

PARENT COMPANY BALANCE SHEET

O P P O R T U N I T I E S A N D R I S K S FOR THE GROUP

OPPORTUNITIES AND RISKS IN CASH FLOW

OPPORTUNITIES AND RISKS IN PROPERTY VALUES

FINANCIAL RISK

EFFECTS OF THE COVID-19 PANDEMIC

RENTAL INCOME

PROPERTY VALUE