Castellum — Annual Report 2008

Mar 25, 2009

Annual Report 2008

Contents

Year Summary	1
Castellum – a short description	2
CEO's Comments	4
Operations
Business Concept, Objectives and Strategies	6
Customers	8
Organization and Employees	10
Responsible Business	12
The Real Estate Portfolio	15
Investments	20
Building Rights and Potential Projects	26
Greater Gothenburg	30
Öresund Region	34
Greater Stockholm	38
Mälardalen	42
Eastern Götaland	46
Financing	50
Opportunities and Risks	53
The Castellum Share	56
Corporate Governance	60
Financial Review	70
Financial Reports	73
Consolidated Income Statement	74
Consolidated Balance Sheet	75
Income Statement for the Parent Company	76
Balance Sheet for the Parent Company	77
Change in Equity	78
Cash Flow Statement	79
Accounting Principles and Notes	80
Proposed Distribution of Profi ts	102
Statement Regarding Proposed Distribution of Profi ts	103
Signing of the Annual Report	104
Audit Report	105
Castellum's Real Estate Schedule 2008	107
Defi nitions	140
Addresses	141

The audited legal Annual Report comprises pages 6-104. Comparisons shown in brackets are made with the corresponding amount previous year.

In the event of confl ict in interpretation or differences between this report and the Swedish version, the latter will have priority.

Year Summary

• Rental income for 2008 amounted to SEKm 2,501 (SEKm 2,259 previous year).
• Income from property management improved by 5% to SEKm 973 (924), equivalent to SEK 5.93 (5.63) per share.
• Changes in value on properties amounted to SEKm 1,262 (920) and on interest rate derivatives to SEKm – 1,010 (99).
• Net income after tax amounted to SEKm 663 (1,487), equivalent to SEK – 4.04 (9.07) per share.
• The Board proposes a dividend of SEK 3.15 (3.00) per share, corresponding to an increase of 5%.
• The investments amounted to SEKm 2,738 (2,598) of which SEKm 1,212 (1,514) refer to acquisitions and SEKm 1,526 (1,084) to new construction, extensions and refurbishment.
• The total value of the properties amounted to SEKm 29,165 (27,717) with a loan to value ratio of 50% (45%). Unutilized credit in long term credit agreements amounted to SEKm 1,702 (1,375).

Data per Share

SEK	2008		2007	2006	2005	2004	2003	2002	2001
Income property management	5.93		5.63	5.38	5.00	4.52	4.07	3.77	3.30
Change		+5%	+5%	+8%	+11%	+11%	+8%	+14%
Net income after tax	– 4.04		9.07	10.21	7.89	5.59	2.68	4.00	5.68
Change		neg.	–11%	+29%	+41%	+108%	–33%	–30%
Dividend (for 2008 proposed)	3.15		3.00	2.85	2.62	2.38	2.13	1.88	1.63
Change		+5%	+5%	+9%	+11%	+12%	+13%	+15%

Annual General Meeting

Castellum AB's Annual General Meeting will take place on Thursday March 26, 2009 at 5 pm in RunAn, Chalmers kårhus, Chalmersplatsen 1, Gothenburg.

Castellum – a short description

Real estate value by region

Business concept

Castellum's business concept is to develop and add value to its real estate portfolio, focusing on the best possible earnings and asset growth, by offering customized commercial properties, through a strong and clear presence in fi ve Swedish growth regions - Greater Gothenburg, the Öresund Region, Greater Stockholm, Mälardalen and Eastern Götaland.

Focus on cash flow

The objective is to focus on cash flow growth, which along with a stable capital structure provide the preconditions for good growth in the company, while at the same time offering shareholders a competitive dividend. The objective is an annual growth in cash flow, i.e. income from property management per share, of at least 10%. In order to achieve this objective, investments of at least SEKm 1,000 per year will be made. All investments will contribute to the objective of growth in income from property management within 1-2 years and have a potential asset growth of at least 10%.

Real estate portfolio with commercial focus

Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to approx. SEK 29 billion and comprises premises for offi ce, retail, warehouse, logistics and industrial purposes. Within each of the regions where Castellum is present focus is placed on market areas and sub-markets where suffi cient volume can be found to provide the prerequisites for good business opportunities by rational management and strong presence.

Investments, i.e. enhancement and development of existing properties, acquisitions of new properties and new construction, are carried out in areas with high growth rates where opportunities are found for increased occupancy rates, increased rental levels and improved cash fl ows.

Customers

Good and long-term customer relations and hence satisfi ed customers is a prerequisite for creating long-term growth in Castellum. This is achieved by providing effi cient and well situated premises meeting the customers' needs regarding both appropriate premises as well as service.

Castellum has just over 4,000 commercial contracts, with good risk exposure regarding geography, type of premises, length of contracts and fields of business of the customer.

Decentralized and small scale organization

Castellum's operations are run in a small-scale organization comprising six subsidiaries which own and manage the properties under their own

Malmö, Lund and Helsingborg

Örebro, Uppsala Greater Stockholm and Västerås

Jönköping, Linköping, Värnamo and Växjö

Central, Northern and Eastern Greater Gothenburg

Southern Greater Gothenburg, Borås, Halmstad and Alingsås

brands. By having local roots the subsidiaries have close relations with the customers, and good knowledge of the market situation and rental development within each market area. Property management is mainly carried out by own personnel.

Castellum have skilled and committed employees, which is achieved as the group shall be an attractive workplace with good development possibilities. At the turn of the year the Castellum group had 226 employees and each subsidiary has about 35 employees.

Castellum views a sustainable development with economic growth, social development and environmental concern a prerequisite for successful business operations.

Stable capital structure

Castellum's strategy is to have a stable capital structure, meaning a loan to value ratio not permanently exceeding 55% and an interest coverage ratio of at least 200%.

Castellum's dividend policy is that at least 60% of income from property management after full tax deduction will be distributed, however investment plans, consolidation needs, liquidity and financial position in general will be taken into account.

The Castellum share

Castellum will work for a competitive total return in the company's share in relation to the risk and for a high liquidity. The company's actions will be made from a long term perspective.

The Castellum share is listed on NASDAQ OMX Stockholm AB Large Cap.

Financial

Changes in value on interest
rate derivatives	– 1,010	99	178	Total shareholders' equity
Tax	636	– 456	– 532	and liabilities
Net income for the year	– 663	1,487	1,674
Financial key ratios	2008	2007	2006
Growth in income from property management	5%	5%	8%
Loan to value ratio	50%	45%	45%
Investments in properties, SEKm 2,738		2,598	2,283

Total yield (including dividend)

	2008		3 years 10 years
		average/	average/
		year	year
Castellum	– 5%	– 1%	14%
NASDAQ OMX Stockholm
(SIX Return)	– 39%	– 6%	5%
Real Estate Index Sweden (EPRA)	– 21%	– 3%	15%
Real Esatate Index Europe (EPRA)	– 49%	– 19%	4%

Income Statement, SEKm	2008	2007	2006	Balance Sheet, SEKm	31 dec 2008	31 dec 2007	31 dec 2006
Rental income	2,501	2,259	2,014	Investment properties	29,165	27,717	24,238
Property costs	– 831	– 771	– 700	Other assets	239	174	208
				Total assets	29 404	27 891	24 446
Central administration expenses	– 71	– 69	– 67
Net fi nancial items	– 626	– 495	– 364	Shareholders' equity	10,049	11,204	10,184
Income from prop. management 973		924	883	Interest-bearing liabilities	14,607	12,582	10,837
Changes in value on properties	– 1,262	920	1,145	Deferred tax liabilities	2,785	3,322	2,723
Changes in value on interest				Non interest-bearing liabilities	1,963	783	702
rate derivatives	– 1,010	99	178	Total shareholders' equity	29,404	27,891	24,446
				and liabilities

CEO's Comments

Best result ever, but also the worst.

2008 was a turbulent year – it began so well that the Bank of Sweden tried to moderate the infl ation and cool down the economy by several increases of the repo rate. After the fi nancial crisis burst out during the last quarter, a sharp retardation in the economy was seen. Reduced interest levels that followed are only a poor consolation for the increased number of notices in the labour market.

The rental market was characterized by high demand for premises, slowly increasing rental levels and an ongoing new production. In spite of sharp retardation in the economy during the autumn, the demand for premises has continued to be good and the rental levels have been stable. New production however has ceased.

For Castellum, rental income 2008 increased by approx. SEKm 240, an effect of both increasing rental levels, lower number of vacancies and investments carried out. Property costs have increased by approx. SEKm 60, mainly because of a larger portfolio. Interest rate costs increased by approx. SEKm 130, of which SEKm 60 is due to higher interest rates. All together this results in an income from property management of SEKm 973 - best ever for Castellum!

The growth in income from property management by 5% did not reach the objective of 10%, but can still be considered satisfying for a turbulent year like 2008. The growth makes it possible to propose an increased dividend of SEK 3.15.

Property values rise and fall. After going up by SEKm 3,700 since 2004 they went down by SEKm 1,300 during 2008. It is obvoius that the fl uctuations have been boosted by the fact that it earlier was relatively easy to get funding, while currently, in the wake of the fi nancial crisis, it is much more diffi cult.

Also market interest rates go up and down. Heavily falling long term rates during the last quarter meant that, at the turn of the year, the agreed rate was higher than the current market rate. As a consequence the value of the interest rate derivatives decreased by more than SEKm 1,000.

With the chosen strategy regarding the real estate portfolio and fi nancial policy, Castellum's ability to affect these valuation items, not affecting cash fl ow, is extremely limited. Pricing of assets and interest rates is becoming more and more international. Since some years however these items shall infl uence the income statement, leading Castellum to report a net income after changes in value and tax of SEKm – 663 - the worst ever!

Castellum's balance sheet continuous to be strong, which is even more important in the middle of a fi nancial crisis and an upcoming recession. In spite of investments during the year of SEKm 2,700 and write downs of SEKm 1,300, the loan to value ratio is no more than 50%. Castellum's access to long term funding is good.

Total yield of the share was –5%. This is not satisfying, but still much better than the Stockholm Stock Exchange, which fell by 39% and the European Property Index, which went down by 49%.

What to think about 2009?

Castellum has committed and skilled employees always trying to meet the customers' expectations, but in the initial stages of a recession it cannot be ruled out that more leasing contracts will be terminated than signed. However, such a development will have limited infl uence on 2009, as notice normally must be given nine months before any change of rental agreements. Because of index adjustments, rental levels will initially rise during 2009. I can see no risk for a considerably deteriorated income during 2009, under the assumption that bankruptcies in the industry will not become too frequent.

There is a high probability that interest costs will go down during 2009. The common opinion is that The Bank of Sweden will further reduce the repo rate, but how this, together with an increased governmental funding need and the development of the fi nancial crisis, will infl uence the price on money is not as easily judged. Most important for the industry in general and for the real estate industry in specifi c, is that the credit market starts functioning again.

In times of uncertainty regarding funding possibilities, there will also be uncertainty about underlying prices on assets. In a slightly longer perspective, I am not concerned about Castellum's current valuations at approx. SEK 9,000 per sq.m. This fi gure is well below new production prices and does not require high rental levels to be defended.

With a strong balance sheet and continued focus on the customer and cash fl ows, I foresee many interesting possibilities and challenges during the next few years.

Gothenburg, February 4th 2009

Håkan Hellström Chief Executive Offi cer

Operations

Growth in income from property management

Dividend ratio

Business Concept

Castellum's business concept is to develop and add value to its real estate portfolio, focusing on the best possible earnings and asset growth, by offering customized commercial properties, through a strong and clear presence in fi ve Swedish growth regions.

Objectives

Castellum's operations are focused on cash flow growth, which along with a stable capital structure provide the preconditions for good growth in the company, while at the same time offering shareholders a competitive dividend.

The objective is an annual growth in cash flow, i.e. income from property management per share, of at least 10%. In order to achieve this objective, investments of at least SEKm 1,000 per year will be made. All investments will contribute to the objective of growth in income from property management within 1-2 years and have a potential asset growth of at least 10%. Sales of properties will take place when justified from a business standpoint and when an alternative investment with a higher yield can be found.

Strategy for Funding

Capital structure

Castellum will have a stable capital structure, meaning a loan to value ratio not permanently exceeding 55% and an interest coverage ratio of at least 200%.

Repurchase of own shares shall be available as a method to use for adjusting the company's capital structure to the company's capital needs. Transfer of own shares held by the company may be used at acquisitions but may not be traded for the sole purpose of capital gain.

Dividend

At least 60% of income from property management after full tax deduction will be distributed, however investment plans, consolidation needs, liquidity and financial position in general will be taken into account.

The stock and credit market

Castellum will work for a competitive total return in the company's share in relation to the risk and for a high liquidity.

However, all actions will be made from a long term perspective and the company will have a frequent, open and fair reporting to shareholders, the capital and credit markets as well as media, yet without disclosing any individual business relation.

In the long term Castellum will be one of the largest listed real estate companies in Sweden.

Strategy for the Real Estate Portfolio and Property Management

Geography

Castellum's real estate portfolio is located in the fi ve Swedish growth regions Greater Gothenburg, Öresund Region, Greater Stockholm, Mälardalen and Eastern Götaland. This together with rational property management and a strong presence in the market provide for good business opportunities.

The development of the real estate and rental markets are, both nationally as well as regionally, dependent on the long-term economic growth. Important prerequisites for economic growth are a young well educated work force, access to good infrastructure and entrepreneurship. To make sure that investments are concentrated to areas within the nation with expected high economic growth, Castellum is continuously analyzing the development on the different sub-markets.

Type of property

The real estate portfolio shall consist of commercial properties with general and fl exible premises for offi ce/retail and logistics/warehouse/ industry. The distribution among the different categories is determined by business opportunities, cash fl ow, risk exposure and asset growth.

Development of the real estate portfolio

The real estate portfolio shall be continuously enhanced and developed in order to improve cash fl ow.

Castellum shall continue to grow with customers' demand, mainly through new construction, extensions and reconstruction which is expected to give high returns, but also through acquisition of buildings and land with building rights for future development.

Customers

Castellum shall be perceived as a service management company. This is achieved by having long-term relations and supplying premises and service meeting customer demands. In order to develop the customer relations the customers' level of satisfaction shall be measured regularly. The risk within the circle of customers shall be kept low by spreading over many fields of business, length of contracts and size of contracts.

Property management/employees

Castellum shall deliver service and manage properties by a decentralized and small-scale organization with wholly owned subsidiaries and strong presence on the sub-markets. Property management shall be carried out mainly by own personnel.

Castellum shall have skilled and committed employees on every position, which is achieved as the group shall be an attractive workplace with good development possibilities. In order to develop the group in being an attractive workplace the employees' level of satisfaction shall be measured regularly.

Customers

Distribution of leases by industry

The local subsidiaries shall offer appropriate premises and service satisfying the customer's needs. Therefore good and long-term customer relations are a prerequisite for creating growth in Castellum.

Being close to the customer

Castellum's organization with local subsidiaries provides close relations to the customers and short decision making processes. The employees of Castellum work near the market which gives a natural opportunity to receive information about the customers' current and future operations. Thereby the customers can be offered solutions with premises corresponding to their needs, good personal service and quick answers.

Castellum works with facility management services that can improve and facilitate the customer's day-to-day operations and improve the attractiveness of the area where the customer is operating. Examples of measures are coordination in order to improve security within an area and supporting procurement of services such as cleaning and furnishing.

As one of the largest real estate owners on each of the local markets Castellum co-operate with municipalities and are active in local networks, such as company associations.

The subsidiaries regularly distribute information through customer newspapers and the web.

Castellum's customers refl ect Swedish economy

Castellum has just over 4,000 commercial contracts, with good risk exposure regarding both geography, type of premises, length of contracts and fields of industry of the customer. The single largest contract makes up for approx. 1% of Castellum's total rental income.

Commercial leases

The most common terms for a new lease is 3-5 years with a nine months notice and rents are paid quarterly in advance. The rental level can be changed when the lease in question is due for renegotiation. Lease contracts usually contain a so called base-rent, i.e. the rental level at the

time of signing, and an index clause which provides for a yearly upward adjustment by a certain percentage, of the infl ation previous year or a minimum upward adjustment.

Lease contracts usually contain an addition for the tenant's share of the property's total cost for heating, cooling and property tax.

Satisfi ed customers

In order to measure how well Castellum meets the customers' expectations and to follow up and evaluate efforts made, an external customer survey is carried out annually. The survey shows both the customers' general opinion about Castellum in a Satisfi ed Customer Index and specifi cally for the areas loyalty, image, service, business relation, the premises, the property, facility management, environment and information.

The survey, which from this year besides offi ces also includes warehouses, industry- and retail properties, measured a majority of Castellums' larger customers. The answering frequency were high, 64% of the approached customers answered. The survey shows a weighted index of 73 on a scale of 100.

A large portion of the surveyed customers replies willing to lease from Castellum again and gladly recommends Castellum as a landlord to others.

Leasing activity

Castellum has a high lease activity. During 2008, the organization signed 767 new contracts with a total annual value of SEKm 305. The leasing activity shows the importance of taking care of the customers and the networks. Of the new signed contracts 83% came from own networks, recommendations or existing customer expansions, while 12% came from web pages, and the remainder came through agents.

Organization

Örebro, Uppsala and Västerås

Greater Stockholm

Jönköping, Linköping, Värnamo and Växjö

Central, Northern and Eastern Greater Gothenburg

Southern Greater Gothenburg, Borås, Halmstad and Alingsås

Castellum's strategy is to manage its properties in a decentralized and small-scale organization with wholly owned subsidiaries and strong presence on the sub-markets. By having local roots the subsidiaries get close relations with the customers and knowledge of their operations and needs.

The companies also receive good knowledge of the local real estate and rental markets, market changes and business opportunities.

Subsidiaries with strong brands

Castellum has six wholly owned subsidiaries which each have about 35 employees. The subsidiaries organizations are not identical but are in principal made up of a Managing Director, 3-5 market areas, business developers and 3-5 employees within fi nance and administration. Each market area employs one property manager with one assistant, one person working with leasing and 2-4 facility managers, where everyone has customer contact. The fl at organization gives short decision making processes and creates a customer oriented and active organization. Castellum's subsidiaries operate under their own names which are strong brands on each sub-market. Each subsidiary is larger then the smallest Swedish real estate companies listed on the stock exchange.

Property management is mainly carried out by own personnel.

Purchasing external services

In cases where external services are purchased, high demands are placed on suppliers in terms of quality, customer contact, service and environmental awareness. The company possesses decentralized purchasing expertise for negotiations of new construction, extension or refurbishment work. The group does not have its own organization for the actual construction.

Measuring, comparing and controlling

Castellum measures and compares the subsidiaries' management effi ciency and asset value growth in the real estate portfolio. Within the group experiences are shared between the companies and specialist expertise can therefore be made available to the whole organization.

Castellum's operations are controlled by rules for decision making and work allocation, policies and instructions. Policies are in place for finance and financial work, information, information safety, environment, insurance, electricity and personnel.

Parent company

The parent company Castellum AB is responsible for matters concerning the stock market (such as consolidated reports and stock market information) and the credit market (such as funding and fi nancial risk management) as well as overall IT/IS strategies and personnel matters. Castellum AB has 14 employees.

The parent company takes part in operations by involvement in the Board of the subsidiaries.

Support systems

The application of support systems such as IT/IS within the group shall enable a safe and effective reporting and monitoring of operations. The technical platform is made up of local networks integrated into a group wide network and is made up of standard products which provide high security and lower maintenance costs in the long term.

Employees

Castellum's objective is to offer an attractive workplace, with possibilities for personal development, providing good conditions for skilled and committed employees. In order to develop the group, the employees' attitudes are regularly measured. Satisfi ed employees lead to satisfi ed customers, a prerequisite for achieving Castellum's objectives.

Attractive workplace

Recruiting and keeping good employees is important and Castellum is active in a number of ways to improve motivation and participation among the employees.

The fl at organization means that each employee has well defi ned areas of responsibility with high level of freedom, leading to professional as well as personal development. Internal recruitment is a way to improve the employees' opportunities for development. Employee evaluations are performed yearly with all employees and is an important tool for following up and setting objectives, as well as identifying the need for competence development.

Castellum works with preventive health care and offers good corporate health services and benefi cial health insurance.

A bonus sharing program is applied, providing each employee with an opportunity to obtain a part of their respective company's improvement in the result.

Once a year all employees in the Castellum group meet in order to share experiences and strengthen the group spirit.

Castellum' s employees

At the year end, the group had 226 employees (208), of which 35% were women (34%). Employee turnover during the year has been 6% (10%) and absence due to sickness 2% (2%).

Education and sharing experiences

Within Castellum, both internal and external education and training programs are provided. Several development programs, common for the group and adapted for different work tasks, have been held. Apart from joint development programs, individual competence development takes place, depending on personal need.

To create conditions for sharing of experiences between the companies, projects are run with participants from every company, covering topics such as valuation and marketing issues. Apart from the projects there are fi xed groups, which regularly discuss issues within specifi c areas, such as fi nance, IT, environment and personnel.

Satisfi ed employees

The employees' view on Castellum is measured in a survey showing their attitudes towards their own working situation, the company and its management.

The survey carried out 2008 shows that Castellum employees show great faith in the company and are highly familiar with the organization's objectives and strategies. The response rate was 100%, demonstrating deep commitment. Nine out of ten coworkers responded that they are satisfi ed or very satisfi ed with their working situation and are proud of their own company.

Age distribution - number of employees

Satisfi ed employees index

Resonsible Business

Castellum's environmental policy: "Castellum's business shall be run with the least possible impact on the environment and shall use resources sparingly in order to contribute towards achieving a sustainable development. Castellum considers society's demands as defi ned in laws and ordinances to be minimum requirements. The Castellum Group shall strive to achieve continuous improvements to reduce any environmental impact and prevent pollution.

The environmental policy includes all parts of Castellum's operations, not only management, improvement and acquisition but also new construction of properties. Environmental work must be an integrated, natural element of the company's operations." Castellum is working for a sustainable development, with social responsibility and environmental concern. A sustainable development involves both acting ethically towards customers, employees and other parties and developing the operations with least possible infl uence on the environment. Such a work results in added value through more satisfi ed customers, strengthened brand and increased competitiveness.

Social responsibility

The social responsibility covers the employees and the environment or setting where the company is operating. Castellum has since the company was founded been working on creating a corporate culture with a good work environment, where the employees' skills and commitment are utilized and developed. The work is regularly followed up in employee and customer surveys.

Castellum, as one of the largest owners of real estate properties on the local markets, is through co-operation with municipalities, universities, colleges and local enterprises contributing to the development of the places where the local subsidiaries are operating.

Castellum works with common corporate values governing the daily work, such as commercial viability, quality and service, laws, discrimination, work environment, safety and social responsibility. The values Castellum applies with regards to human rights, labor conditions and environmental issues are largely in line with the UN's Global Compact code of conduct.

Castellum also has policies covering personnel issues like work environment, equal of opportunities, salaries, pensions, company cars and drugs. Castellum is a company which operates only in Sweden and hence is governed by Swedish laws.

Environmental responsibility

To contribute to a long term sustainable development, Castellum's strategy is to develop its real estate portfolio in a resource-effective way and with least possible impact on the environment.

Already 1995, when Castellum began its environmental work, areas where the company has environmental impact were identifi ed. Since then, defi ned areas have been systematically addressed. Over the last ten years, major work has been carried out, in particular within the areas energy, material usage and waste. Today Castellum's environmental work is focused on achieving more effective use of energy, aiming for renewable energy sources and improving the environmental status of the properties, thus reducing the company's environmental impact.

General measurable environmental targets are:

• Energy consumption shall be reduced by at least 1% per square meter and year, i.e. at least 10% during a ten-year period.
• Carbon dioxide emissions shall be reduced by at least 2.5% per square meter and year, i.e. at least 25% during a ten-year period.
• All properties owned for more than one year, shall be environmentally evaluated.

Castellum's environmental work is managed through an environmental management system consisting of a common environmental policy, guidelines and overall targets. The environmental work is performed locally by each subsidiary and is followed up every year and regularly reported to the executive management. The environmental work covers all activities and operations and the work is regularly audited by an external party.

Within the Castellum group there is an environmental task group con sisting of each subsidiary's environmental coordinator, which meets regularly in order to share experiences and to monitor and learn from development taking place in the world at large.

Education and training within the environmental fi eld is continuous, with the aim to improve skills and commitment. All employees have

received basic education and training in environmental matters and new employees are offered a basic course within one year from employment. Most employees have completed training in specifi c areas, such as energy matters.

As a confi rmation that the work is making progress, Castellum has for many years been rated as one of the most environmentally progressive listed companies, selected by both Swedish and foreign investors.

More effi cient energy use

To minimize the company's impact on the environment, Castellum is working to reduce energy consumption and to turn to renewable energy sources. Examples of measures implemented are adaptation of heating and ventilation according to the users' needs, extension of computerized control systems for heating and ventilation and motion controlled lighting. Castellum follows up and analyzes all energy consumption in a common follow-up system.

Work on replacing heating by oil and gas to heating by renewable energy sources is an ongoing process. Ground heating/cooling is installed in 15 premises for a total of 88,000 square meters. When using district heating as heating source, Castellum is dependent on the district heating plant's fuel mix, when it comes to emissions of carbon dioxide. Castellum today makes use of 22 district heating facilities. Out of the Castellum group's total carbon dioxide emissions 99% came from heating, of which district heating facilities were responsible for 74%.

In 2008, work has started to virtualize most of the group's servers, by which the servers' energy consumption is expected to be reduced by at least 50%.

Since 2001, only electricity labeled "environmental friendly" is used by the Castellum group.

Known and continously improved environmental status of the properties

An environmental inventory has been completed for 91% of all properties owned for at least one year. The inventory cover environmental and health risks such as hazardous substances, ground pollution, moist/mould and operations requiring special permits. During 2008, environmental inventories have been carried out for 112,000 square meters, partly by using the method "Miljöstatus byggnader".

Castellum's work on monotoring the energy consumption and its environmental inventories make the company well prepared for the upcoming EU directive regarding energy declaration of buildings.

Castellum has no ongoing environmental disputes. The operation which requires special permit is transportation of fl uorescent lamps.

Requirements on suppliers

For larger purchases and procurements, Castellum is placing demands on the contractor's environmental and quality work. External experts are partly used to control that placed demands are followed.

Communication and co-operation

Communication about environmental progress being made and co-operation on environmental issues is important, in order to push the work forward. Information is submitted to customers and other interested parties, at for instance information meetings, customer visits, in customer newsletters and on web pages.

Co-operation with customers, suppliers, municipalities, universities and colleges is carried out to gain knowledge about new technologies and to share experiences. Castellum is for instance active in "Beställargruppen för lokaler" and in the Ecocycle Council, an association within the Swedish building and real estate sector.

Fastighets AB Brostaden was in 2008, as the fi rst company in Europe, appointed Green Building Corporate Partner, meaning that the energy consumption has been reduced by at least 25% in at least 30% of the real estate portfolio.

Castellum's subsidiary Fastighets AB Brostaden has, as the fi rst company in Europe, been assigned by the EU to become a Green Building Corporate Partner.

In order to become a Green Building Corporate Partner the

CORPORATE PARTNER energy consumption has to be reduced with at least 25% in

at least 30% of the real estate portfolio.

The property showed below, Karis 3 in Stockholm, is an example of a Green Building-classifi ed property.

More effi cient energy use	Outcome 2008
- Energy consumption shall be reduced by at least 1% per square meter and year, i.e. by at least 10%
during the next ten-year period.	– 3%
- Carbon dioxide emission shall be reduced by at least 2,5% per square meter and year, i.e. at least
25% during the next ten-year period.	– 15%

By;
- optimize operation of existing equipment and gradually make the technical installations in the properties more effi cient,	Constantly ongoing work
- give priority to environmentally adapted and environmentally friendly energy sources,	Conversion of 68 thous. sq.m. from oil and gas to district heating.
- replace remaining oil fi red boilers in investment properties by other heating sources, no later than December 31st 2009,	Conversion of 10 investment properties using oil-heating during 2008 and 12 remains.
- phase out all use of gas produced from non-renewable sources,	Conversion of 5 investment properties using gas during 2008 and 29 remains.
- infl uence our district heating power suppliers to minimize their carbon dioxide emissions,	Ongoing work
- minimize travel and transportation in the business,	Ongoing work
- being a partner in co-operations like EU's Green Building.	Fastighets AB Brostaden has become a Green Building Corporate Partner during 2008.
Known and continous improvement of the environmental status of the properties	Outcome 2008
- All properties owned for more than one year, shall be environmentally evaluated.	91%
By;

- all new construction, conversion, extension and maintenance shall be carried out from a sustainable development point of view, valid for planning, projecting, production, management and recycling or demolishing	Ongoing work, for example during new construction.
- substances, ecologically harmful or hazardous, shall be identifi ed and gradually phased out	Ongoing work
- together with the tenants reduce their infl uence on the environment and follow up on those tenants which for environmental reasons need authorization to carry out their activities	Ongoing work
- all tenants shall be offered on site waste separation, adapted after their activities, in order to reduce the amount of waste for landfi ll	Approx. 70% has access to waste separation
- optimize water consumption and minimize discharge of environmental disturbing agents in the drainages.	Ongoing work

Consumption	2008	2007	2006
Energy consumption, not adjusted for degree day statistics
District heating, MWh
Electricity, MWh	117,794	113,711	111,979
Oil, MWh	4,290	7,260	7,757
Gas, MWh	10,860	13,667	13,932
Total, MWh	301,263	290,726	289,807
Emission of carbon dioxide, tons (2008 is preliminary)	18,546	20,110	20,760
Water, m3	856,896	747,754	754,759

Consumption and emission of carbon dioxide per sq.m. and year

The energy consumption and emissions of carbon dioxide per sq.m. has been calculated on the consumption adjusted for degree day statistics, vacancy and cooling needs.

Distribution of energy consumption for heating Distribution of emissions of carbon dioxide

The Real Estate Portfolio

The real estate market, i.e. the market for sales and purchasing of real estate properties, and the rental market, i.e. the market for rental of premises (and rental levels) are both in a long term perspective depending on the development in the domestic economy.

Swedish economy

Sweden, situated in northern Europe, with more than 9 million inhabitants, is a country with an open and strong economy, owing to among other things a stable and transparent business climate, high level of education, healthy state fi nances and high productivity in the industry. Sweden has, during the last few years, shown a positive trade balance. Today, Sweden's export amounts to roughly 40% of GDP, of which three fourth is export to Europe. Sweden has a long and broad experience from international trade and international relations, which becomes evident from its relatively large share of world leading corporations, such as Astra-Zeneca, Ericsson, H&M, IKEA, SCA and Volvo. The high export dependency contributes to the fact that Sweden historically has shown good ability to adjust and restructure the economy to market changes.

During the last years Sweden has shown strong growth, partly as a result of global growth and increasing export. Like the rest of the world, Sweden is facing a recession, where the rapid credit squeeze has contributed to deteriorated order intake in the Swedish industry, leading to an increasing amount of advance notice of layoffs. In comparison with the EU, Sweden has a good starting-point with stable state fi nances, a national dept in relation to GNP of 38% and an unemployment rate of approx. 6%.

The real estate portfolio

In Sweden there are almost three million properties with a total tax assessment value of SEK 4,900 billion, of which the majority are residential properties. Out of the commercial properties in Sweden, Castellum, one of the major real estate owners in the country, is estimated to own roughly 1-2% while all of the listed Swedish real estate companies together are estimated to own roughly 10%.

Apart from the listed companies, the largest real estate owners in Sweden are publicly owned companies, as well as Swedish and foreign institutional investors. In addition, there are a large number of smaller real estate owners, such as smaller real estate and construction companies, users and private persons. Due to the scattered ownership without any dominating real estate owner, the competitors differ between different local markets.

The rental market

The rental market is mainly depending on the growth in Swedish economy, but is also affected by the amount of new construction. Economic growth normally leads to increased demand for premises and hence decreasing number of vacancies, with a potential for increasing market rents, which in turn facilitates new construction. A stagnation in growth leads to a reversed case.

The rental market in 2008 was characterized by a relatively high demand for premises, but also by increasing number of notice of termination. There are in general relatively few vacancies in Castellum's sub-markets and therefore the rental level, apart from index adjustments made in the beginning of 2009, is assessed to remain stable. As notice of termination normally is nine months for rental agreements, any changes in market rents in a short term perspective have relatively small effect on total rental income.

GDP growth

The fi ve largest trading partners of Sweden

Export	Import
1. Germany	1. Germany
2. Norway	2. Denmark
3. Great Britain	3. Norway
4. Denmark	4. Great Britain
5. USA	5. The Netherlands

Source: SCB, import relates to sending countries

New construction and vacancy rates

Real estate transactions Sweden

The real estate market

The transaction volume in the Swedish real estate market during the year was slightly more than SEK 130 billion, compared to approx. SEK 140 billion in 2007. Adjusted for specifi c transactions, like Vasakronan and structural transactions, the volume has been reduced to less than half. The reason for the reduced volume is mainly the credit squeeze, which occurred as a result of the turbulence on the international credit market.

Even if an increasing number of international investors have entered the Swedish real estate market over the last years, the investments in 2008 were to a large extent carried out by domestic investors. The latter were responsible for 75% of the market, which can be compared to roughly 40% in 2007. Yet, the Swedish market is still distinguished by being highly international and transparent.

During a number of years the required yields in Sweden have dropped, but the opinion is that they have been relatively stable since mid 2007. Until the beginning of 2008 when they have started to gradually increase. The earlier imbalance in the market between high demand and limited offers has been corrected and even been reversed during 2008.

Castellum´s geographical markets

Castellum is present on the nation's major growth regions and approx. 60% of Sweden's 9.2 million inhabitants live within Castellum's regional market areas.

Economic growth is best measured as the development in a market area's total sum of wages. Average growth per year in total employment rates as well as growth in the sum of wages was during the period 1995-2007 within Castellum's market areas, 1.4% and 4.2% respectivly. This may be compared with 1.0% and 3.7% for the nation.

In order to analyze the regional markets' growth and risk, the average annual growth in the sum of wages for each market may be studied while the risk (standard deviation in growth) is measured over time. Some markets are due to their size and business structure less dependent on changes in the world around than others and have their own inherent power to grow. The most favourable are those with high growth and low risk. The following figure shows Sweden's regional markets where Castellum's markets are

shown in red. Growth and risk in the long term

Castellum's real estate portfolio

Castellum's real estate portfolio is concentrated to a few selected submarkets where the local subsidiaries have a strong position. Castellum's geographical sub-markets can be characterised as stable, with good prospects for long-term positive growth. The real estate portfolio which consists entirely of Swedish properties in 34 (34) of the 290 municipalities in the country as a whole, is located in fi ve growth regions: Greater Gothenburg, the Öresund region, Greater Stockholm, Mälardalen and Eastern Götaland. The main focus with 75% of the portfolio is in the three major urban regions.

The commercial portfolio consists of 64% offi ce and retail properties as well as 31% warehouse and industrial properties. The properties are located from inner city sites (except in Greater Stockholm from inner suburbs) to well-situated working-areas with good means of communication and services. Castellum owns 876,000 sq.m. unutilized building rights.

On December 31, 2008 Castellum's real estate portfolio comprised 587 properties (549) with a total rental value of SEKm 2,912 (2,654) and a total lettable area of 3,172,000 sq.m. (3,003,000). The properties fair value at the year-end amounted to SEKm 29,165 (27,717), with a normalized yield of 7.4% (7.0%). For properties owned at the year-end the net operating income was SEKm 1,746 (1,542).

Fair value by property type

Changes in the real estate portfolio

	Value, SEKm Number
Real estate portfolio on 1 Jan., 2008	27,717	549
+ Acquisitions	1,212	39
+ New constructions, extensions and refurbishments	1,526	–
– Sales	– 28	– 1
+/– Unrealized changes in value	– 1,262	–
Real estate portfolio on 31 Dec., 2008	29,165	587

Investments

During the year investments totalling SEKm 2,738 (2,598) were made, of which SEKm 1,212 (1,514) were acquisitions and SEKm 1,526 (1,084) new construction, extensions and refurbishment. During the year one property has been sold for SEKm 28 (39).

Of the total investments, SEKm 1,086 related to Mälardalen, SEKm 685 to Greater Gothenburg, SEKm 379 to Eastern Götaland, SEKm 296 to Greater Stockholm and SEKm 292 to the Öresund Region.

Castellum has ongoing projects with remaining investments of approx. SEKm 800.

Property value

The fair value of the properties at the year-end amounted to SEKm 29,165 (27,717), corresponding to SEK 8,984 per sq.m (9,098). Castellum assess es the value of the properties through internal valuations. The valuations are based on a 10-year cash fl ow-based model with an individual assessment for each property of both its future earnings capacity and the required yield. In assessing a property's future earnings capacity has, besides an assumed level of infl ation of 1.5%, consideration been taken to potential changes in rental levels from each contract's rent and expiry date compared with the estimated current market rent, as well as changes in occupancy rate and property costs. Projects in progress have been valued using the same principle, but with deductions for remaining investments. Sites with building rights have been valued on the basis of an estimated market value per square metre, on average approx. SEK 950 per sq.m. (1,000).

Property costs, SEK/sq.m.

	Offi ce/ Retail	Warehouse/ Industrial	Total
Operating expenses	187	100	146
Maintenance.	40	21	31
Ground rent	8	5	7
Real estate tax	57	16	37
Direct property costs	292	142	221
Leasing and property administration (indirect)	–	–	47
Total	292	142	268
Previous year	284	142	262

The normalized yield for Castellum's real estate portfolio, excluding development projects and undeveloped land, can be calculated to 7.4% (7.0%).

In order to provide further assurance and validation of the valuation, 51% of the value of the portfolio has been valued by NAI Svefa. Castellum's valuation of the same properties was 1% higher.

Changes in value

The total change in value of Castellum's portfolio during the year amounted to SEKm –1,262 (920). Out of this fi gure approx. SEKm –1,400 can be refered to an increase in the required yield by 0.4 %-units during the year. The rest can be refered to investments made and slightly improved estimated future cash fl ow.

This year's depreciation in value of Castellum's portfolio has been approx. 4%, where the largest depreciations in value have been seen for central retail properties and in the Öresund Region. The net appreciation in value, including this year's change, during the last fi ve year period has been about 2% per year, which roughly corresponds to the infl ation rate.

It should be noted that, since property valuations include an uncertainty range of normally 5-10%, also the changes in value include a not insignifi cant uncertainty.

Rental income

Castellum's average rental level is SEK 1,151 per sq.m. (1,121) for offi ce/ retail and SEK 666 per sq.m. (647) for warehouse/industrial premises. Rental levels have increased by 3% compared with previous year.

The average economic occupancy rate was 89.7%, which is 1.8%-units higher than previous year. The total annual rental value for vacant premises during the year amounted to approx. SEKm 323.

The gross leasing (i.e. the annual value of total leasing) during the year was SEKm 305 (315), of which SEKm 48 (81) was leasing in connection to new constructions, extensions and refurbishments. Terminations amounted to SEKm 221 (180), of which bankruptcies was SEKm 20 (5), hence net leasing for the year were SEKm 84 (135). The share of terminations for renegotiation has been limited. The time difference between reported net leasing and the effect in income thereof is estimted to between 9-18 months.

Reports on the development in the local markets may be found in each regional summary.

Property costs

Property costs amounted to SEKm 831 (771) corresponding to SEK 268 per sq.m. (262). The increase is chiefl y an effect of higher energy prices.

Energy consumption for heating during the period has been caluclated to 85% (84%) of a normal year according to degree day statistics. The distribution by type of cost and property category are shown in the adjacent chart.

Castellum's real estate portfolio 31-12-2008

	31-12-2008							January-December 2008
	No. of properties	Area thous. sq.m.	Fair value SEKm	Fair value SEK/sq.m.	Rental value SEKm	Rental value SEK/sq.m.	Economic occupancy rate	Rental income SEKm	Property costs SEKm	Property costs SEK/sq.m.	Net opera ting income SEKm
Offi ce/retail
Greater Gothenburg	79	405	5,253	12,953	487	1,202	94.9%	463	115	285	348
Öresund Region	51	314	4,397	13,980	411	1,306	89.4%	367	99	315	268
Greater Stockholm	45	304	3,712	12,208	403	1,324	82.4%	332	97	318	235
Mälardalen	67	306	2,907	9,512	297	973	92.6%	275	76	250	199
Eastern Götaland	49	295	2,419	8,209	272	922	91.8%	249	87	295	162
Total offi ce/retail	291	1,624	18,688	11,505	1,870	1,151	90.2%	1,686	474	292	1,212
Warehouse/industrial
Greater Gothenburg	96	612	4,251	6,950	413	675	89.8%	371	75	123	296
Öresund Region	42	295	1,661	5,619	193	652	85.2%	164	41	139	123
Greater Stockholm	36	193	1,424	7,376	166	859	88.0%	146	42	218	104
Mälardalen	42	177	976	5,524	117	662	94.1%	110	29	162	81
Eastern Götaland	35	185	730	3,945	85	463	87.9%	75	21	114	54
Total warehouse/industrial	251	1,462	9,042	6,185	974	666	88.9%	866	208	142	658
Total	542	3,086	27,730	8,984	2,844	921	89.7%	2,552	682	221	1,870
Leasing and property administration									144	47	– 144
Total after leasing and property administration									826	268	1,726
Development projects	14	86	1,059	–	68	–	–	37	17	–	20
Undeveloped land	31	–	376	–	–	–	–	–	–	–	–
Total	587	3,172	29,165	–	2,912	–	–	2,589	843	–	1,746

The table above relates to the properties owned by Castellum at the end of the year and refl ects the income and costs of the properties as if they had been owned during the whole year. The discrepancy between the net operating income of SEKm 1,746 accounted for above and the net operating income of SEKm 1,670 in the income statement is explained by the deduction of the net operating income of SEKm 1 on properties sold during the year, as well as the adjustment of the net operating income of SEKm 77 on properties acquired/completed during the year, which are recalculated as if they had been owned or completed during the whole year.

Property related key ratios

	2008	2007	2006	2005	2004	2003	2002	2001	2000
Rental value, SEK/sq.m.	921	896	864	851	859	829	799	747	694
Economic occupancy rate	89.7%	87.9%	87.1%	88.1%	89.6%	90.7%	91.5%	93.0%	92.4%
Property costs, SEK/sq.m.	268	262	259	247	255	246	237	239	228
Net operating income, SEK/sq.m.	559	527	494	502	514	506	494	455	413
Fair value, SEK/sq.m.	8,984	9,098	8,466	7,930	7,706	7,296	7,132	6,681	6,150
Number of properties	587	549	515	494	492	500	508	526	547
Lettable area, thousand sq.m.	3,172	3,003	2,787	2,651	2,505	2,437	2,381	2,338	2,309

Greater Gothenburg

The real estate portfolio in Greater Gothenburg accounts for 33% of Castellum´s portfolio.

Castellum's real estate portfolio in Greater Gothenburg comprises the regions Greater Gothenburg including Alingsås plus Borås and Halmstad. These regions combined have approx. 1.2 million inhabitants, which corresponds to approx. 13% of Sweden's total population.

Greater Gothenburg is Sweden's second largest region after the capital region Greater Stockholm.

Greater Gothenburg including Alingsås

Greater Gothenburg consists of thirteen municipalities, of which Gothenburg, Kungälv, Mölndal and Kungsbacka are the largest. The region forms a local labor market, mainly through communication and commuting possibilities.

The population growth has during several years been positive and amounts to 0.7% per year during 1995-2007, to be compared to 0.3% for the country as a whole.

Greater Gothenburg is centrally located with a well developed infrastructure, comprising Gothenburg harbor, the airports and the European highways E6 and E20, all contributing to the notion that the region is the best logistical centre in Scandinavia.

The industry is extensive and distributed over many fi elds of business. Manufacturing industry, trade and logistics have historically been

	Greater Gothenburg incl. Alingsås	Borås	Halmstad
Population	965,000	143,000	113,000
Full-time students at university / college	50,000	10,000	8,000
Growth in employment 1995-2007 / year (the nation 1.0%)	1.7%	0.8%	1.3%
Growth in gross wages 1995-2007 / year (the nation 3.7%)	4.5%	3.6%	4.1%

The fi ve largest real estate owners

Greater Gothenburg	Premises thous. sq.m. Borås		Premises thous. sq.m Halmstad		Premises thous. sq.m
Castellum (Eklandia Fastighets AB and
Harry Sjögren AB)	895	SveaReal AB		123 Akelius Fastigheter	71
Wallenstam	442	Castellum (Harry Sjögren AB)	92	Fragerus Fastigheter	56
Vasakronan	410	Klövern	74	Försäkringsbolaget Alecta	54
Diligentia / Skandia Liv	293	CA Fastigheter AB	58	Förvaltnings AB Aranea	44
Platzer	278	Kungsleden	56	Dagon	39

Number of commercial premises (excl. residential) owned at 31-12-2008. Municipal and State-owned companies and government institutions have been excluded apart from Vasakronan AB.

Source: Byggstatistik and Castellum

important. The business structure has widened and created growth in knowledge-intensive and hi-tech companies as well as in traditional businesses. The service sector accounts for 47% of total gross wages, compared to slightly more than 20% for manufacturing. Growth in both employment and total gross wages has been strong during the last decade.

The level of education in Greater Gothenburg is higher than the national average and the universities and colleges in Gothenburg hold approx. 50,000 students.

Borås

Borås municipality together with Svenljunga, Herrljunga and Ulricehamn form a common region with approx. 143,000 inhabitants, located about 60 kilometers east of Gothenburg.

Commerce has a strong position together with textile and clothing industry and create an intensive international trading, supported by the proximity to Landvetter airport and the harbor of Gothenburg.

Halmstad

The Halmstad region, including the municipalities Laholm and Halmstad, has had a constant population growth during the last few decades.

The local economy in the region is multifaceted and is dominated by small and medium-sized companies within manufacturing, service, commerce and tourism, where roughly 75% of the companies have less than ten employees.

The region has a well developed infrastructure with road, train, air and sea connections.

Rental market

The rental market in the region has during 2008 continued to show a stable development, with maintained rental levels and low vacancies. This is valid both for offi ces as well as for suitable warehouse and logistics premises. For retail premises the vacancy rate has, like in previous years, been insignifi cant.

General vacancy rate in the region is estimated to 5-10% for both offi ces and industrial and warehouse premises.

Real estate market

In 2008, the volume of transactions in Gothenburg diminished, mainly due to the credit squeeze caused by the turbulence on the international credit market. As a result, in spite of a stable rental market, the required yield increased, leading to reduced real estate prices.

Real estate transactions of approx. SEK 5 billion were closed in the region during 2008, which can be compared to SEK 8 billion during 2007.

Of the total commercial transaction volume, offi ce/retail make up approx. 60% and industry/warehouse approx. 40%.

Market rents (incl. heating)

	Gothenburg	Borås	Halmstad
Offi ce
Central	1,400–2,300	800–1,000	900-1,500
Employment area	650–1,250	400–800	700-1,100
Retail
Central	3,000–7,200	1 500–2,500	1,500-2,800
Employment area	800–3,600	600–1,200	800-1,300
Warehouse/industrial
Well situated	450–850	350–700	450-800

Rental value and occupancy rate

Castellum´s real estate portfolio

Castellum's real estate portfolio in Greater Gothenburg comprises 187 properties (182) with a total area of 1,017,000 sq.m (1,000,000) and a fair value of SEKm 9,603 (9,293). For properties owned at the year-end the rental value amounted to SEKm 900 (839) on an annual basis and net operating income to SEKm 603 (539).

In central and eastern Gothenburg, there are mainly offi ce and retail properties. On Hisingen and in Högsbo/Sisjön there are offi ce properties as well as warehouse and industrial properties.

In Mölndal, Castellum's real estate portfolio mainly consists of warehouse and industrial properties and offi ces in Åbro and Lackarebäck.

In Borås, Castellum owns mainly offi ce and retail properties in central Borås, but also a smaller share of warehouse and industrial properties.

There are also mixed property holdings in Alingsås, Halmstad, Partille, Kungälv, Kungsbacka, Lerum and Härryda.

See also the section Castellum's Real Estate Schedule 2008, with real estate schedule, maps and fi nancial information.

Summary of the real estate portfolio

	Investments, SEKm
	Area	Fair value	New constr.,	Acquisi	Rental value	Percentage
	thous.sq.m.	SEKm	ext., refurb.	tions	SEKm	of value
Offi ce/retail	405	5,253	311	21	487	55%
Warehouse/industrial	612	4,251	296	52	413	44%
Total	1,017	9,504	607	73	900	99%
Development projects
and undeveloped land	–	99	–	5	–	1%
Total	1,017	9,603	607	78	900	100%

Rental development

Castellum's average rental level is SEK 1,202 per sq.m. for offi ce/retail and SEK 675 per sq.m. for warehouse/industrial premises. Rental levels have increased by approx. 3% compared with previous year.

The average economic occupancy rate was 92.6%, which is 1.8%-units higher than previous year.

The gross leasing (i.e. the annual value of total leasing) during the year was SEKm 66 (98), of which all related to leasing in existing properties. Terminations amounted to SEKm 39 (48), of which bankruptcies was SEKm 4 (0), hence net leasing for the year was SEKm 27 (50).

Subsidiaries

Castellum's properties in Greater Gothenburg are owned and managed by the wholly owned subsidiaries Eklandia Fastighets AB, with its head offi ce in Gothenburg, and Harry Sjögren AB with its head offi ce in Mölndal. Eklandia's real estate portfolio is mainly concentrated to central and eastern Gothenburg and Hisingen while Harry Sjögren's properties are located mainly in Högsbo/Sisjön in southern Gothenburg, Mölndal, Borås, Halmstad, Kungsbacka, Lerum, Partille, Alingsås and Härryda. At the year-end Eklandia had 38 employees and Harry Sjögren had 30 employees.

Arendal 1:13 in Gothenburg is a modern logistics property in the port of Gothenburg. rendal

CASTELLUM ANNUAL REPORT 2008 33

The Öresund Region

The real estate portfolio in the Öresund region accounts for 23% of Castellum´s portfolio.

Malmö, Lund and Helsingborg, together with 22 other municipalities, form the Malmö region. Approx. one million people live in the region, or about 11% of Sweden's population. Another 2.7 million people are living on the Danish side.

Castellum's real estate portfolio in the Öresund region is located in Malmö, Lund and Helsingborg.

Malmö region

The Malmö region has had a positive growth and is one of Sweden's fastest growing regions. The population has during 1995-2008 been growing by 0.8% per year – only the Stockholm region has had a faster growth rate.

The region has a diversifi ed business structure with industry, public sector and retail being the three largest. The service sector accounts for 45% of total gross wages, compared to slightly less than 20% for manufacturing.

Malmö, Lund and Helsingborg

Malmö has had a high population growth, which during the last three years has increased further. Malmö holds a university and the level of education in the region is relatively high.

	Malmö region	of which Lund	of which Helsingborg
Population	995,000	105,000	125,000
Full-time students at university / college	51,000	34,000	–
Growth in employment 1995-2007 / year (the nation 1.0%)	2.0%	1.4%	1.6%
Growth in gross wages 1995-2007 / year (the nation 3.7%)	4.7%	4.2%	4.5%

The fi ve largest real estate owners

Malmö region		Premises thous. sq.m of which Lund	Premises thous. sq.m	of which Helsingborg Premises thous. sq.m
Wihlborgs Fastigheter AB	1 096	Castellum AB (Fastighets AB Briggen)	119	Wihlborgs Fastigheter AB	450
Castellum AB (Fastighets AB Briggen)	609	Wihlborgs Fastigheter AB	110	Castellum AB (Fastighets AB Briggen)	149
Kungsleden AB	338	Kungsleden AB	98	Brinova Fastigheter AB	133
Vasakronan AB	324	Vasakronan AB	85	NS Holding AB / Norrporten	93
Diligentia AB / Skandia Liv	185	North Bridge Capital Partners	74	Northern Logistics Properties ASA	75

Number of commercial premises (excl. residential) owned at 31-12-2008. Municipal and State-owned companies and government institutions have been excluded apart from Vasakronan AB.

Source: Byggstatistik and Castellum

The infrastructure is highly developed with the Öresund Bridge, a number of European highways, Sturup airport and the proximity to Kastrup airport, a modern harbor and good railroad connections.

Malmö is in the midst of a structural transformation from industrial centre to a knowledge city. The business, which earlier consisted of a few large industrial companies, has shifted and is now made up of many small businesses in a number of sectors. Apart from private service companies, logistics, retail and wholesale trade, construction and real estate are large sectors. More knowledge-based companies are found within biotechnology, pharmaceutical and medical technology, environmental technology, IT and digital media.

Lund has a steady population growth, which has increased slightly during the last three years. The fact that Lund holds one of Sweden's oldest universities is clearly seen among the population, where the level of education is very high. Lund has a highly developed infrastructure with European highway E22 crossing the city, E6 passing west of the city and the airports Sturup and Kastrup close by.

Lund's economy is characterized by a knowledge based profi le with many smaller companies, often knowledge and research based and with connections to the university and established companies. Several of those have grown out of Ideon, Sweden's fi rst and largest science park.

Helsingborg has a strategic location, steady population growth and a good infrastructure, with the European highways E4 and E6 and Sweden's third largest harbor for goods, all of which have transformed the city into a centre for sea and land transport. The city is a trade and logistics centre, but also food, pharmaceutical and manufacturing industry are important businesses.

Rental market

During the fi rst six months of 2008 both rental levels and vacancies have main tained their levels from 2007. Also the last six months of 2008 showed a relatively high activity in the rental market, in spite of depression and fi nancial crisis. However, it can be noted that the customer's decisionmaking process takes longer time.

In 2007 and 2008 new construction projects were started for both offi ce, retail and logistics premises, which may affect vacancy rates and hence rental levels in the future.

General vacancy rates in Malmö, Lund and Helsingborg are estimated to 7-11% for offi ces, 8-12% for industrial and warehouse premises and 1-5% for retail premises.

Real estate market

The number of properties for sale has been high during the year, but sellers and buyers have had different views on the required yield, leading to fewer closed deals. Despite a stable rental market, the banks' credit squeeze and the negative economical development lead to decreasing real estate prices in 2008. The total transaction volume during 2008 was slightly higher than 2007 and amounted to SEK 6 billion, to be compared with SEK 5 billion previous year.

Of total commercial transaction volume, offi ces/retail amounted to approx. 75% and industry/warehouse to approx. 25%.

Market rents (incl. heating)

	Malmö		Lund Helsingborg
Offi ce
Central	1,300-2,100	1,000-2,100	1,000-1,900
Employment area	800-1,300	800-1,200	750-1,350
Retail
Central	2,000-6,000	2,500-4,000	2,000-4,000
Employment area	800-1,500	800-1,500	750-1,500
Warehouse/industrial
Well situated	500-750	450-750	450-750

Rental value and occupancy rate

Castellum's real estate portfolio

Castellum's real estate portfolio in the Öresund region comprises 100 properties (97) with a total area of 621,000 sq.m. (602,000) and a fair value of SEKm 6,536 (6,906). For properties owned at the year-end the rental value amounted to SEKm 632 (583) on an annual basis and net operating income to SEKm 372 (345).

Castellum's portfolio in Malmö comprises mainly a mix of commercial properties in the established market areas Jägersro, Fosie, Bulltofta and Norra Hamnen. In central Malmö there is also a portfolio of larger offi ce and retail properties.

In Lund, Castellum's real estate portfolio comprises mainly offi ce-, and warehouse and industrial properties in the industrial estates Råbyholm, Gunnesbo and offi ce properties close to the Ideon science park. There is also a smaller portfolio of offi ce and retail properties located in central Lund.

The portfolio in Helsingborg comprises mainly offi ce-, and warehouse and industrial properties situated primarily in Berga industrial estate and in central Helsingborg.

See also the section Castellum's Real Estate Schedule 2008 with real estate schedule, maps and economic information.

Summary of the real estate portfolio

Total	621	6,536	192	100	632	100%
Development projects and undeveloped land	12	478	59	–	28	7%
Total	609	6,058	133	100	604	93%
Warehouse/industrial	295	1,661	47	25	193	26%
Offi ce/retail	314	4,397	86	75	411	67%
	thous.sq.m.	SEKm	ext., refurb.	tions	SEKm	of value
	Area	Fair value	New constr.,	Acquisi	Rental value	Percentage
		Investments, SEKm

Rental development

Castellum's average rental level is SEK 1,306 per sq.m. for offi ce/retail and SEK 652 per sq.m. for warehouse/industrial premises. Rental levels have increased by approx. 2% compared with previous year.

The average economic occupancy rate was 88.1%, which is 0.4%-units higher than previous year.

The gross leasing (i.e. the annual value of total leasing) during the year was SEKm 44 (53), of which SEKm 5 (20) was leasing in connection to new constructions, extensions and refurbishments. Terminations amounted to SEKm 41 (41), of which bankruptcies was SEKm 4 (0), hence net leasing for the year was SEKm 3 (12).

Subsidiary

Castellum's properties in the Öresund region are owned and managed by the wholly owned subsidiary Fastighets AB Briggen, with its head offi ce in Malmö and a local offi ce in Helsingborg and Lund. At the year-end Briggen had 37 employees.

Greater Stockholm

The real estate portfolio in Greater Stockholm accounts for 19% of Castellum´s portfolio.

The Stockholm region is Sweden's largest employment area with more than two million inhabitants, or 22% of the nations total population. Castellum's region Greater Stockholm includes the municipalities of Stockholm, Botkyrka, Huddinge, Järfälla, Nacka, Sigtuna, Sollentuna and Upplands-Väsby.

Stockholm is characterized by being the nation's capital, where the Swedish Parliament, most major political institutions as well as a large number of Swedish companies are residing. The region has Sweden's largest service sector spread over many business areas, making up for approx. 60% of total gross wages. The last decade employment growth has been strong, mainly in service sectors like IT, telecommun ication and fi nancial business. The yearly population growth during 1995-2007 has been 1.0%, highest in the country.

Greater Stockholm can be divided into the inner city and the areas north and south of the city centre. In the northern area there are mainly servicebased companies, while there is a larger share of companies dedicated to manufacturing and distribution in the south. Both in the north and the south, growth in number of workplaces has gradually been concentrated to larger business districts.

North

Infrastructure in the northern part of the Greater Stockholm region is well developed with European highways E4 and E18, as well as two airports Arlanda and Bromma. There are also several harbors, which to a large extent are used for passenger transportation. New businesses and growth

Stockholm

Population	2,021,000
Full-time students at university / college	45,000
Growth in employment 1995-2007 / year (the nation 1.0%)	1.5%
Growth in gross wages 1995-2007 / year (the nation 3.7%)	4.4%

The fi ve largest real estate owners

Greater Stockholm	Premises thous. sq.m.
(Municipalities Botkyrka, Huddinge, Järfälla, Nacka, Sigtuna, Sollentuna, Solna, Stockholm, Upplands-Väsby)
Vasakronan AB	1,864
Fabege AB	1,288
Castellum AB (Fastighets AB Brostaden)	497
Kungsleden AB	494
Diligentia AB / Skandia Liv	484

Number of commercial premises (excl. residential) owned at 31-12-2008. Municipal and State-owned companies and government institutions have been excluded apart from Vasakronan AB. Source: Byggstatistik and Castellum

in the northern areas have to a large extent been concentrated to the stretch between Stockholm and Arlanda, where a number of large business areas have been established such as Kista, parts of Sollentuna and parts of Upplands-Väsby.

The municipality of Sollentuna, with a strategic location between Stockholm city and Arlanda airport, consists of a number of submarkets and has expanded particularly within retail and service.

The municipalities Solna and Sundbyberg northeast of Stockholm city and the districts Mariehäll and Ulvsunda in Bromma are geographically concentrated with proximity to Stockholm city and a well developed infrastructure. The total market for offi ces in the area is, next after the inner city, the largest within the entire Stockholm region and has shown strong growth in the number of employees in offi ce type businesses.

Kista Science City, located in Kista, is one of northern Europe's most dynamic business parks and one of the Stockholm region's largest business areas, where approx. 63,000 people work. Kista is dominated by companies operating mainly in the fi elds of information technology and telecommunication. Also the retail sector has grown strongly.

South

In southern Stockholm there are a number of offi ce and industrial areas such as Johanneshov, Marievik/Liljeholmen, Årsta, Eriksberg, Södra Hammar-byhamnen, Nacka Strand and Västberga. Johanneshov's business structure, including the Globen area, is dominated by service companies, retail and communication. The area has good means of communication. Marievik/Liljeholmen is a more typical offi ce area just outside Stockholm's inner city and Södermalm. Västberga, with proximity to the European highway E4 and the trunk line, is dominated by transportation and logistics comp anies, warehouses, manufacturing and construction companies.

Skärholmen is located in the southernmost part of Stockholm and next to Skärholmen is Kungens kurva in the municipality of Huddinge. Skärholmen is dominated by trade and Kungens Kurva is one of the largest shopping areas in the Nordic countries. Close to Kungens kurva along the E4 is the area Smista Allé, an area under development, particularly towards car retailers.

Rental market

The rental market was strong in Greater Stockholm during the fi rst six months of 2008, while the second half has shown a lower activity. Market rents were stable or slightly increasing in many market areas and categories.

The recession coupled with new construction of several large projects going on in central Stockholm will probably affect both vacancies and rental levels. The general vacancy rates are estimated to 6-16% for offi ces, 5-10% for industrial and warehouse premises, while insigni fi cant for retail.

Real estate market

The interest in the real estate market in the Stockholm region remained during 2008, but the credit squeeze together with fi nancial turbulence affected property prices which fell during the year. This is true, for both central locations as well as for the suburbs. Adjusted for specifi c transactions, like Vasakronan and some structural transactions, 2008 showed a lower transaction volume than 2007 – SEK 22 billion compared to SEK 33 billion.

The largest transactions were localized to Stockholm's inner city and Solna. Of the total commercial transaction volume, offi ce and retail amounted to approx. 77% and industry/warehouse to approx. 23%.

Market rents (incl. heating) Greater Stockholm

	(inner suburbs)
Offi ce
Central	1,300–2,500
Employment area	800–1,900
Retail
Central	1,500–4,500
Employment area	600–2,000
Warehouse/industrial
Well situated	600–1,000

Rental value and occupancy rate

Castellum´s real estate portfolio

Castellum's real estate portfolio in Greater Stockholm comprises 90 properties (87) with a total area of 535,000 sq.m. (517,000) and a fair value of SEKm 5,672 (5,266). For properties owned at the year-end the rental value amounted to SEKm 583 (555) on an annual basis and net operating income to SEKm 306 (278).

In the northern suburbs, Castellum's real estate portfolio is mainly made up of larger offi ce and retail properties in Mariehäll in Bromma, Kista, Sollentuna, Solna and Upplands-Väsby. In the areas Veddesta/ Lunda and Rosersberg there are mainly warehouse and industrial properties.

In the southern suburbs, Castellum's real estate portfolio is located in areas such as Johanneshov, Skärholmen/Kungens kurva and Nacka. In these areas there are mainly larger offi ce and retail properties. In Botkyrka there are also warehouse and industrial properties.

See also the section Castellum's Real Estate Schedule 2008 with real estate schedule, maps and economic information.

Summary of the real estate portfolio

	Investments, SEKm
	Area	Fair value	New constr.,	Acquisi	Rental value	Percentage
	thous.sq.m.	SEKm	ext., refurb.	tions	SEKm	of value
Offi ce/retail	304	3,712	95	–	403	66%
Warehouse/industrial	193	1,424	63	–	166	25%
Total	497	5,136	158	–	569	91%
Development projects
and undeveloped land	38	536	138	–	14	9%
Total	535	5,672	296	–	583	100%

Rental development

Castellum's average rental level is SEK 1,324 per sq.m. for offi ce/retail and SEK 859 per sq.m. for warehouse/industrial premises. Rental levels have increased by approx. 5% compared with previous year.

The average economic occupancy rate was 84.0%, which is 2.8%-units higher than previous year.

The gross leasing (i.e. the annual value of total leasing) during the year was SEKm 74 (72), of which SEKm 17 (11) was to leasing in connection new constructions, extensions and refurbishments. Terminations amounted SEKm 56 (31), of which bankruptcies were SEKm 3 (3), hence net leasing for the year was SEKm 18 (41).

Subsidiary

Castellum's properties in Greater Stockholm are owned and managed by the wholly owned subsidiary Fastighets AB Brostaden, with its head offi ce in Stockholm. Brostaden's operations are divided into fi ve market areas. At the year-end Brostaden had 40 employees.

Mälardalen

The real estate portfolio in Mälardalen accounts for 14% of Castellum´s portfolio.

Castellum's region Mälardalen comprises the areas of Örebro, Uppsala and Västerås, with a combined population of approx. 750,000 inhabitants, or 8% of Sweden's population. The region has had a positive population growth and has a good business structure.

The two railroads Mälar Line and Svealand Line have improved commuting between Stockholm and Örebro, via Västerås and Eskilstuna respectively.

Örebro

Örebro together with eight other municipalities make up the nation's seventh largest region. Population growth has been high and has increased further during the last three years.

The strategic location at the intersection of several roads, good railroad connections and an airport close by, has transformed Örebro into a centre for logistics.

Business in Örebro is diversifi ed, without any dominating employer. Companies are found in commerce, service, administration, a variety of manufacturing industries and several governmental and municipal administrative bodies.

Örebro has a university and hence a high educational level.

	Örebro	Uppsala	Västerås
Population	224,000	295,000	227,000
Full-time students at university / college	12,000	33,000	12,000
Growth in employment 1995-2007 / year (the nation 1.0%)	0.9%	1.4%	0.8%
Growth in gross wages 1995-2007 / year (the nation 3.7%)	3.4%	4.2%	3.3%

The fi ve largest real estate owners

Örebro	Premises thous. sq.m	Uppsala	Premises thous. sq.m Västerås		Premises thous. sq.m
Castellum (Aspholmen Fastigheter AB)	205	Vasakronan AB	293	NR Nordic & Russia Properties Ltd	475
Alecta Pensionsförsäkring	97	Uppsala Akademiförvaltning	149	Klövern AB	203
Brinova Fastigheter AB	96	Castellum (Aspholmen Fastigheter AB)	106	Castellum (Aspholmen Fastigheter AB)	155
NS Holding AB / Norrporten	73	Klövern AB	65	Kungsleden AB	136
Klövern AB	60	Atrium Ljungberg AB	49	Landic Property	132

Number of commercial premises (excl. residential) owned at 31-12-2008. Municipal and State-owned companies and government institutions have been excluded apart from Vasakronan AB.

Source: Byggstatistik and Castellum

Uppsala

The Uppsala region, consisting of six municipalities, has approximately 295,000 inhabitants and forms the nation's fourth largest regional labor market. By having Sweden's oldest university, Uppsala is largely characterized by the students and the population has a high level of education. The region enjoys a positive population growth, both short term and long term and is one of the nation's most expansive regions.

The region has a dynamic industry based on knowledge, creativity and entrepreneurship. The economy is characterized by relatively small and hi-tech oriented service and industrial companies. The public sector is the largest employer and is, together with the university and the city's proximity to Stockholm, an explanation for the fact that Uppsala has had a continuous growth.

The employment rate in the region has grown and for natural reasons strongly correlates with the one of the Stockholm region.

Västerås

Together with seven other municipalities, Västerås forms the nation's sixth largest region with 227,000 inhabitants. The population growth in the region is concentrated to Västerås, which has a university and thus a high level of education.

Västerås has a strategic location by the European highway E18, good railroad connections, an airport and the largest inland port of the Nordic countries. Good means of transportation coupled with its central location has nourished many small companies. In the region both medium-sized and large companies are found, specializing in electronics, IT, energy and environmental engineering. An expanding business segment is industrial information technology and automation, where the university together with local businesses form a national and international knowledge centre.

Rental market

The development of the rental market continued to be good during 2008, with unchanged or improved vacancy rates and rental levels within all market segments. Ahead, vacancies are expected to maintain stable or slightly decreasing, an indication of stable rental levels. An explanation is that there are generally very few new construction projects based on speculation in this region.

General vacancy rates in the region are estimated to 5-10% for offi ces, 6-12% for warehouses and industrial premises, while insignifi cant for retail.

Real estate market

The real estate market in Mälardalen showed a transaction volume almost as high during 2008 as in 2007. The fi nancial turbulence combined with some insecurity and hesitation among the investors in the real estate market led to increasing required yields during the year. The effect was, in spite of a positive rental market, reduced prices for properties during 2008.

Of total commercial transaction volume, offi ces/retail amounted to approx. 60% and industrial premises and warehouses to approx. 40%.

Market rents (incl. heating)

	Örebro	Uppsala	Västerås
Offi ce
Central	900-1,400	1,200–2,000	900–1,400
Employment area	700–1,200	800–1,200	700–1,000
Retail
Central	1,500–4,000	2,000–5,000	1,500–4,000
Employment area	700–1,200	700–2,000	700–1,500
Warehouse/industrial
Well situated	450–700	500–700	450–700

Rental value and occupancy rate

Castellum´s real estate portfolio

Castellum's real estate portfolio in Mälardalen comprises 117 properties (101) with a total area of 519,000 sq.m. (432,000) and a fair value of SEKm 4,185 (3,278). For properties owned at the year-end the rental value amounted to SEKm 440 (346) on an annual basis and net operating income to SEKm 266 (202). Castellum's real estate portfolio is concentrated to Örebro, Uppsala and Västerås, from central offi ce properties to warehouse and industrial properties in well-situated employment areas.

Castellum's real estate portfolio in Örebro consists of a mix of offi ce and retail properties and warehouse and industrial properties concentrated to the area Aspholmen and central Örebro.

In Uppsala, mainly offi ce and retail properties are found, but also warehouse and industrial properties. The properties have attractive sites in Fyrislund, Boländerna and along Kungsgatan.

In Västerås, there is a mix of offi ce and retail properties and warehouse and industrial properties. The real estate portfolio is situated in the established market areas Kopparlunden, Tunbytorp, Bäckby and Hälla.

Castellum also owns a minor real estate portfolio in Märsta, in the municipality of Sigtuna.

See also the section Castellum's Real Estate Schedule 2008 with real estate schedule, maps and economic information.

Summary of the real estate portfolio

		Investments, SEKm
	Area	Fair value	New constr.,	Acquisi	Rental value	Percentage
	thous.sq.m.	SEKm	ext., refurb.	tions	SEKm	of value
Offi ce/retail	306	2,907	160	686	297	70%
Warehouse/industrial	177	976	21	165	117	23%
Total	483	3,883	181	851	414	93%
Development projects
and undeveloped land	36	302	54	–	26	7%
Total	519	4,185	235	851	440	100%

Rental development

Castellum's average rental level is SEK 973 per sq.m. for offi ce/retail and SEK 662 per sq.m. for warehouse/industrial premises. Rental levels have increased by approx. 3% compared with previous year.

The average economic occupancy rate was 93.0%, which is 3.7%-units higher than previous year.

The gross leasing (i.e. the annual value of total leasing) during the year was SEKm 89 (55), of which SEKm 24 (10) was to leasing in connection to new constructions, extensions and refurbishments. Terminations amounted to SEKm 58 (42), of which bankruptcies were SEKm 3 (0), hence net leasing for the year was SEKm 31 (13).

Subsidiary

Castellum's properties in Mälardalen are owned and managed by the wholly owned subsidiary Aspholmen Fastigheter AB with its head offi ce in Örebro. The company has local management offi ces in Västerås and Uppsala. At the year-end Aspholmen had 37 employees.

The property Ölstånkan 11 was included in Aspholmen Fastigheter AB's acquisition in central Örebro during the summer 2008.

CASTELLUM ANNUAL REPORT 2008 45

Eastern Götaland

The real estate portfolio in Eastern Götaland accounts for 11% of Castellum´s portfolio.

Castellum's real estate portfolio in Eastern Götaland comprise Värnamo, Jönköping, Växjö, and Linköping, which together form a region with approx. 600,000 inhabitants, or slightly less than 7% of Sweden's population.

The province of Småland is well known for its entrepreneurial spirit and is one of Sweden's most attractive and successful regions, in terms of small scale enterprises.

Värnamo

The municipality of Värnamo is a small employment region with close to 33,000 people. However, the reception area for the city's commerce is approx. 100,000 inhabitants.

The infrastructure in Värnamo, with European highway E4 passing through and good railroad connections, provide for good accessibility and a successful industry.

Historically, Värnamo has been an important marketplace and is today a centre for commerce and services. The strong tradition of running small scale enterprises has given birth to many companies, in businesses such as metal, machinery, plastics, rubber and wood processing. The industry is to

	Värnamo	Jönköping	Växjö	Linköping
Population	33,000	206,000	128,000	248,000
Full-time students at university / college	–	13,000	13,000	22,000
Growth in employment 1995-2007 / year (the nation 1.0%)	0.7%	1.3%	0.8%	0.7%
Growth in gross wages 1995-2007 / year (the nation 3.7%)	3.5%	4.0%	3.5%	3.5%

The fi ve largest real estate owners

Värnamo	Premises thous. sq.m Jönköping			Premises thous. sq.m Växjö		Premises thous. sq.m Linköping			Premises thous. sq.m
Castellum (Fastighets AB			Castellum (Fastighets AB			Castellum (Fastighets AB
Corallen)		144	Corallen)		137	Corallen)		127 Klövern AB	176
Remnes i Värnamo AB		12	NS Holding AB / Norrporten		91	NS Holding AB / Norrporten	76	Valad Property Group	144
Landic Property		9	Alecta Pensionsförsäkring		64	Valad Property Group	72	Acta	138
Värnabo Fastigheter AB		7	Tosito Invest AB		59	Northern Logistic Property ASA	69	Botrygg Bygg AB	71
HLM Fastighets AB		6	Fastighets AB Eric Ekblad		57	KF Fastigheter AB	58	NS Holding AB / Norrporten	65

Number of commercial premises (excl. residential) owned at 31-12-2008. Municipal and State-owned companies and government institutions have been excluded apart from Vasakronan AB. Source: Byggstatistik and Castellum

Jönköping

The Jönköping region, consisting of seven municipalities, is in terms of population the nation's eighth largest region. An International Business School is located in Jönköping and the level of education is relatively high in the region. The strategic location, with several major highways and access to airport and railroad, has developed Jönköping into a logistics centre.

Local business is diversifi ed and expansive and consists mainly of small and medium-sized companies.

Växjö

Växjö, together with fi ve adjacent municipalities, form a region which for many years has had a steady population growth. The level of education is high and Växjö University has around 13,000 students.

Good access to means of communication, a variety of educations and a positive business climate have turned Växjö into an attractive city and contributed to the high growth. There is a good mix of companies in basic industries, such as forest and manufacturing, and companies with a hi-tech profi le.

Linköping

The Linköping region is Sweden's fi fth largest region and comprises eight municipalities. There is a university in Linköping and the level of education is high.

Linköping has a strategic location in the middle of Östergötland, and good means of communication with roads, railroad and an airport close to the city centre.

Traditional business is clearly diversifi ed, but consists mainly of companies within the technical fi eld. Some business segments are very strong, such as traditional knowledge-based hi-tech companies, food and graphic industries.

The region has a close co-operation between the local businesses and the University, for instance in Mjärdevi Science Park, with more than 5,000 employees.

Rental market

The development of the rental market continued to be strong during the fi rst six months of 2008, while the last six months showed signs of weakening, a slower decision-making process for the customers and a slightly increased number of bankruptcies. The rental levels however have been stable in all areas and categories.

The general vacancy rates in the region are estimated to 5-10% for offi ces, 6-12% for industry and warehouse premises, while insignifi cant for retail.

Real estate market

In 2008, the transaction volume in the real estate market in Eastern Götaland amounted to SEK 4 billion, which can be compared to the alltime high of SEK 5 billion in 2007. During the year a large number of properties have been for sale, but as sellers and buyers have had different views on the required yield, fewer transactions have been closed. Despite a stable rental market, the credit squeeze combined with the depression led to higher required yield, and hence falling real estate prices.

Of the total commercial transaction volume, offi ce and retail amounted to approx. 50%, while the rest being industry and warehouse.

Market rents (incl. heating)

	Värnamo	Jönköping	Växjö	Linköping
Offi ce
Central	700–1,300	800–1,400	800–1,400	800–1,400
Employment area	550–850	600–1,100	500–1,000	700–1,250
Retail
Central		900–1,800 1,000–3,300 1,000–2,000 1,000–3,300
Employment area	500–1,000	600–1 200	550–1,000	650–2,000
Warehouse/industrial
Well situated	350–550	400–700	400–600	550–800

Rental value and occupancy rate

Castellum's real estate portfolio

Castellum's real estate portfolio in Eastern Götaland comprises 93 properties (82) with a total area of 480,000 sq.m. (452,000) and a fair value of SEKm 3,169 (2,974). For properties owned at the year-end the rental value amounted to SEKm 357 (331) on an annual basis and net operating income to SEKm 199 (178). Castellum's real estate portfolio is located in Värnamo, Jönköping, Växjö and Linköping.

In Värnamo, Castellum's real estate portfolio is mainly concentrated to central offi ce and retail properties as well as warehouse and industrial properties in expansive industrial estates.

In Jönköping, there are mainly offi ce and retail properties situated in attractive areas such as Rosenlund, central Jönköping and A6.

In Växjö, Castellum owns mainly offi ce and retail properties in the central parts and within the expansive area Västra Mark where also warehouse and industrial properties are found.

In Linköping, the real estate portfolio is concentrated to offi ce properties in the area of Mjärdevi Science Park.

See also the section Castellum's Real Estate Schedule 2008 with real estate schedule, maps and economic information.

Summary of the real estate portfolio

		Investments, SEKm
	Area	Fair value	New constr.,	Acquisi	Rental value	Percentage
	thous.sq.m.	SEKm	ext., refurb.	tions	SEKm	of value
Offi ce/retail	295	2,419	142	33	272	76%
Warehouse/industrial	185	730	46	141	85	23%
Total	480	3,149	188	174	357	99%
Development projects
and undeveloped land	–	20	8	9	–	1%
Total	480	3,169	196	183	357	100%

Rental development

Castellum's average rental level is SEK 922 per sq.m. for offi ce/retail and SEK 463 per sq.m. for warehouse/industrial premises. Rental levels have increased by approx. 2% compared with previous year.

The average economic occupancy rate was 90.8%, which is 0.4%-units higher than previous year.

The gross leasing (i.e. the annual value of total leasing) during the year was SEKm 32 (37), of which SEKm 2 (15) was leasing in connection to new constructions, extensions and refurbishments. Terminations amounted to SEKm 27 (18), of which bankruptcies were SEKm 6 (0), hence net leasing for the year was SEKm 5 (19).

Subsidiary

Castellum's properties in Eastern Götaland are owned and managed by the wholly owned subsidiary Fastighets AB Corallen, with its head offi ce in Värnamo. The company also has local management offi ces in Jönköping, Linköping and Växjö. At the year-end Corallen had 30 employees.

Financing

Source: Rolling annual values based on each company's Q3 2008.

Policy	Objective	Outcome
Loan to value ratio	Not permanently exceeding 55%	50%
Interest coverage ratio At least 200%		255%
Interest rate risk – average fi xed interest term	0.5-3 years	2.9 years
– share with maturity within 6 months	Maximum 50%	38%
Currency risk	Not allowed	No exposure
Funding risk	Minimum 50% credit agreements with a duration of at least 2 years	100%
Counterparty risk	Credit institutes with high ratings at least "investment grade"	Fulfi lled
Liquidity risk	Liquidity reserve in order to fulfi l payments due	SEKm 2,272 in unutilized credit agreements

Property ownership requires fi nancing in the form of equity and interest bearing debts. The level of equity in relation to interest bearing debts is based partly upon the chosen level of fi nancial risk and partly by the amount of equity required to obtain loans from eg. the banks. By setting objectives for the capital structure, the allocation of equity and interest bearing debts is defi ned as well as the level of fi nancial risk is determined in order to meet the required return on equity, secure room for investments and to obtain necessary funding. Castellum has chosen a strategy with a lower fi nancial risk than the real estate business in general.

Financial policy

The fi nancial management in Castellum is pursued according to the framework outlined by the Board in the fi nancial policy. The risk mandates in the fi nancial policy are:

• Capital structure with a loan to value ratio not exceeding 55% long term and an interest coverage ratio of at least 200%.
• Secure the need for liquidity and long-term funding.
• Achieve a low and stable net interest income/costs within the risk mandates.

The fi nancial policy outlines the given mandates and limitations for the management of fi nancial risks, overall assignment of responsibility and how reporting and follow-up of fi nancial risks shall be carried out. The fi nancial risks defi ned in the fi nancial policy are interest rate risk, currency risk, funding risk, counterparty risk and liquidity risk. The fi nancial risks are followed up and reported quarterly to the Board of Directors. The interest rate risk and the funding risk is reported weekly to the Finance Director. In order to improve and adjust the fi nancial risk management, the Board of Directors makes a yearly review of the fi nancial policy.

Capital structure

The value of Castellum's assets amounts to SEKm 29,404 (27,891). These are fi nanced partly through equity of SEKm 10,049 (11,204) and partly through liabilities of SEKm 19,355 (16,687), of which SEKm 14,607 (12,582) are interest bearing debts.

Organization

Castellum acts as the group's treasury department and all fi nancial risk management is centralized to the parent company. The treasury department's responsibilities include the group's funding, interest rate risk management, fi nancing of the subsidiaries and cash management. The treasury department consists of two persons. The parent company also holds a function, separated from the treasury department, for accounting and independent control of the fi nancial management and the fi nancial risks.

Risk management

The operational and fi nancial risk together constitute Castellum's overall business risk. Financial managment is carried out in order to adjust the fi nancial risk level to meet changes in the operational risk within the given risk mandates. Increases in the market interest rate is generally considered to be an effect of economic growth and increasing infl ation, which in turn

is considered to lead to improved demand for commercial properties and hence increasing rents and/or reduced vacancies. Falling interest rates are assumed to have the opposite effect.

Thus increased or decreased fi nancial costs will over time be met by increased or decreased rental income. In this way the overall business risk can be kept at a stable level. Signifi cant economic events can occur from time to time and may need shorter or longer adjustment periods, i.e. the time needed in order to restore an economic equilibrium, which may cause disturbances in the relation above.

To be short of necessary funding is the single largest fi nancial risk. Therefore, a diversifi ed and long-term funding is desirable in order to utilize the competitive advantages in each market or to limit the effects of potential disturbances. Castellum gets funding from both the credit market through bilateral credit agreements with banks and the capital market through commercial papers and to a lesser degree bonds. Regular reviews and renegotiations of existing credit agreements are carried out and new credit agreements are entered into when needed.

Interest cost is the single greatest cost item and the market conditions i.e. both the market interest rate and the creditors' margins asked in return, can change rapidly. To ensure a low and stable net interest income/costs, in terms of cash fl ow, Castellum has chosen a relatively long fi xed interest term. Since year 2000, the average fi xed interest term has been in the range of 2.0 - 3.5 years and the average interest rate between 3.5% and 5.9%. Castellum has also chosen to work with interest rate derivatives, which is a cost effective and fl exible way of extending loans with shortterm interest rates, compared to fi xed interest rate loans, to achieve the desired fi xed interest term. From a cash fl ow perspective the outcome is the same; however there is a difference in the accounting standards, leading to interest rate derivatives being valued market to market, which is normally not the case for fi xed interest rate loans.

Castellum works with a netting account system in banks to manage the group's liquidity fl ows and hence to reduce the need for liquidity.

Loan maturity structure

Funding is provided by draw downs of short-term debts under long-term credit agreements with the banks, issuing of bonds or commercial papers. Castellum can increase or decrease outstanding debts under the long-term credit agreements. The amount of interest-bearing liabilities may therefore be minimized from time to time.

After deduction of liquidity of SEKm 9 (7), net interest bearing liabilities as of December 31, 2008, were SEKm 14,598 (12,575). At the same date Castellum had long-term credit agreements totalling SEKm 15,800 (13,300), long-term bonds totalling SEKm 650 (650), short-term credit agreements in bank totalling SEKm 770 (776) and a commercial paper program of SEKm 4,000 (4,000). At the turn of the year, the average duration of Castellum's long-term credit agreements was 5.5 years (5.2). Margins and fees in long-term credit agreements had an average duration of 3.2 years. During the year Castellum has signed new credit agreements totalling SEKm 2,500 and extended credit agreements totalling SEKm 9,000. Loans in banks are secured by pledged mortgages

Debt maturity structure

Long term, SEKm	Credit agreements Utilized
1 - 2 years	1,100	1,100
2 - 3 years	700	200
3 - 4 years	–	–
4 - 5 years	5,000	5,000
5 - 10 years	9,500	8,150
Total long term credit agreements	16,300	14,450
Total short term credit agreements (0-1 year)	920	148
Total credit agreements	17,220	14,598
Unutilized credit in long term credit agreements		1,702

Interest rate maturity structure

	Amount, SEKm Average interest rate
0 - 1 year	5,596
1 - 2 years	1,350	4.3%
2 - 3 years	602	4.3%
3 - 4 years	600	4.7%
4 - 5 years	3,250	4.7%
5 - 10 years	3,200	4.9%
Total	14,598	4.8%

and/or fi nancial covenants. The fi nancial covenants states a loan to value ratio not exceeding 65% and an interest coverage ratio of at least 150%. Utilized credits secured by pledged mortgages were SEKm 13,696 at the end of the year.

Interest rate maturity structure

The average effective interest rate as of 31 December, 2008 was 4.8% (4.4%), while the market interest rate of an equal portfolio was 2.9% (5.0%). The average fi xed interest term on the same date was 2.9 years (2.2). To secure a stable and low net cash fl ow of interest income/costs over time, Castellum has chosen a relatively long fi xed interest term. The result is that Castellum's average interest rate normally will be higher than the market interest rate of an equal interest rate portfolio in a market with falling interest rates and lower than the market interest rate in a market with increasing interest rates. Castellum has chosen to work with interest rate derivatives, which is a cost effective and fl exible way of extending loans with short term interest rates to achieve the desired fi xed interest term. Castellum's interest costs consist of the market interest rate at the time of the loan and a credit margin to the lender, consisting of both a margin for utilized credits and a facility fee or commitment fee for the granted credit volume.

Interests due within 12 months consist of short fi xed interests, long fi xed interests with a short remaining duration, in some cases derivatives containing options, and fees, such as facility fees and commitment fees.

Interest rate derivatives

According to the accounting standard IAS39, interest rate derivatives are subject to market valuation, which means that there is a theoretical surplus or negative value if the stipulated interest rate varies from the current market rate, where the change in value, in Castellum's case, should be accounted for in the income statement. By fi xing the interest rates for a longer period of time, the interest risk on the cash fl ow is limited, while the risk for changes in value due to the accounting standards increases. Make note that loans with fi xed long-term interest rates, which are less fl exible, but from a risk and interest rate point of view equals extending the interest rate term by interest rate derivatives, are not subject to market valuation according to present accounting standards.

As of December 31, 2008, the market value of the interest rate derivative portfolio amounted to SEKm –966 as an effect of that the market interest rate for obtaining an interest rate portfolio equal to Castellum's interest rate maturity structure was 2.9%, compared to Castellum's average interest rate of 4.8%.

Opportunities and Risks

Opportunities and risks may roughly be divided into two sections – changes in the cash fl ow and changes in value.

Opportunities and risks in cash fl ow

Rental income

Both rental levels as well as vacancies for commercial contracts are mainly depending on the growth in Swedish economy, but are also affected by the level of new construction. Economic growth is considered to lead to increased demand for premises and hence decreasing vacancies, with the potential for increasing market rents, which also provide opportunities for new construction. Stagnation in the economy has the opposite relation. Since the commercial contracts are signed for a certain period of time, a change in the market interest rates does not give an immediate effect on the rental income. The most common term of a new lease is currently 3-5 years with a nine months notice and an index clause linked to the infl ation. The average remaining lease duration in Castellum's portfolio is 3.2 years. Castellum's lease portfolio is presently considered to be in line with or below market rents.

The turbulence on the international credit market together with the current economic downturn, mean increased risk for bankruptcies, which may have an immediate effect on rental income. The risk for large changes in vacancies increases with few and large tenants. Castellum has over 4,000 commercial contracts of which the single largest contract accounts for 1% of the total rental income. Castellum's current lease maturity structure together with the lease portfolio's make up of geography, type of premises, sizes and sectors provide a good risk exposure. Vacancies during 2008 amounted to approx. SEKm 323 and make up a potential for possible new leases.

Property costs

Operating costs are largely made up of costs for electricity, cleaning, heating and water, where electricity and heating costs have the largest effect on income. The price of electricity is controlled by supply and demand on the open market for electricity. Castellum limits the risk by hedging a certain amount of electricity. Most of the costs are passed on to the tenants why Castellum's exposure to changes in the costs is relatively limited. Castellum's properties have a good standard and maintenance situation.

Castellum holds around 50 properties by site leasehold. The ground rent for these is currently calculated in a way that the municipality receives a fair real interest rate based on the estimated market value of the site. The site leasehold is typically renegotiated with 10 to 20 years intervals. It can not be ruled out that the ground rent levels or the basis for the calculation may change in the future.

The real estate tax is a federal tax based on the properties' tax assessment value and completely dependent on political decisions such as tax rate and tax assessment value, which Castellum cannot control. The real estate tax is also passed on to the tenants provided that the premises are not vacant. Since 2008 the owner of the property has to carry the real estate tax cost for vacant premises.

Lease maturity structure

Distribution of leases by industry

Sensitivity analysis - cash fl ow
	Effect on income, SEKm		Probable scenario
	+/- 1% (units)	Boom	Recession
Rental level	+26/–26	+	–
Vacancies	+28/–28	+	–
Property cost	–8/+8	–	0

Sensitivity analysis - change in value

Interest cost –29/+29 – +

Properties	–20%	–10%		0 +10% +20%
Change in value, SEKm –5,833 –2,917				– +2,917 +5,833
Borrowing ratio	63%	56%	50%	46%	42%

Interest costs

Interest costs is the single largest cost item for Castellum and consists of the market interest rate and a credit margin that the lendors demand in return for their loans.

The conditions on the interest rate market can change quickly. The market interest rate is affected by Riksbanken's monetary policy, the expectations of economic development both internationally as well as nationally and of unexpected events such as the recent credit squeeze. In order to limit this effect the interest rate maturity structure has been spread over different terms and Castellum aims to sign long term credit agreements with fi xed margins and fees. The average fi xed interest term was 2.9 years and margins and fees in long term credit agreements are fi xed with an average duration of 3.2 years. A change in the market interest rate of +/– 1%-unit will affect cash fl ow by SEKm –29/+29 for 2009.

Taxes

Castellum is affected by political decisions such as changes in the corporate tax rate, real estate tax, the fi scal legislation or interpretations of it. Future income tax reforms or interpretations of these may have both positive as well as negative effects on Castellum's fi scal position.

Value range - simplifi ed example

Summary of opportunities and risks in cash fl ow

Increasing market interest rates is generally an effect of economic growth and increasing infl ation, which is thought to give higher rental income. This is in part due to that the demand for premises is thought to increase leading to reduced vacancies and hence the potential for increasing market rents and in part due to that the index clause in the commercial contracts is compensating the increasing infl ation. An economic boom therefore means higher interest costs but also higher rental income, while the opposite relationship is true during a recession. The change in rental income and interest costs does not take place at the exact same time, why the effect on income in the short term may occur at different points in time. Signifi cant economic events can occur from time to time and may need shorter or longer adjustment periods, i.e. the time needed in order to restore an economic equilibrium, which may cause disturbances in the relation above.

Opportunities and risks in values The value of the properties

Castellum reports its properties at fair value with changes in value in the income statement. This means that the result in particular but also the fi nancial position may be volatile. Assuming a normal capital market, the value of the properties is determined by supply and demand, where the prices are mainly depending on the properties' expected net operating income and the buyer's required yield. An increasing demand, lower required yields and positive real development in net operating income lead to an upward adjustment in prices, while a weaker demand, higher

required yields and negative real growth has the opposite effect. During 2008, the values have decreased mainly depending on a more moderate outlook for real growth in net operating income during the current recession and the credit crunch following the turbulence in the international credit market. The sensitivity analysis on the side shows how Castellum's loan to value ratio is affected by a change in value of +/– 10- 20%.

A property's market value can only be confi rmed when it is sold. Property valuations are calculations performed according to accepted principles and on the basis of certain assumptions. Consideration should therefore be taken to a value range, typically +/– 5-10% in a normal market, in order to refl ect the uncertainty that exists in assumptions and calculations made. The value range may be wider in a less liquid market. The example shows how the value may vary depending on changes in net operating income of +/– 5% and changes in the required yield of +/– 0.5%, which together give a value range of –11%/+13%.

All of Castellum's properties are insured to their full value.

Interest bearing liabilities and fi nancial risk

Property ownership requires a functioning credit market. Castellum's greatest fi nancial risk is to lack access to funding. The risk is limited by a low loan to value ratio and long term credit agreements. Existing credit agreements are regularly reviewed and renegotiated and new credit agreements and types of funding are entered into when needed in order to secure Castellum's need for funding. Loans in banks are secured by pledged mortgages and/or fi nancial covenants. The fi nancial covenants state a loan to value ratio not exceeding 65% and an interest coverage ratio of at least 150%. The covenant of a 65% loan to value ratio may be compared to the actual outcome of 50% at 31 December, 2008, showing that there is room for an additional decrease in value of SEKm 6,693, or 23%.

Castellum has currently an average duration of long term credit agreements of 5.5 years and unutilized long term credit agreements of SEKm 1,702. Counterparty risk may occur if any party cannot meet its obligations. In order to limit this risk Castellum only works with counterparties with high credit ratings (at least investment grade), and limits the share of credit agreements and derivatives signed with each counterparty.

In order to manage the interest rate risk in a cost effective way Castellum uses interest rate derivatives. As the agreed interest rate varies from the market interest rate from time to time there is a theoretical surplus or negative value on the derivatives, which is reported in the income statement. The lesser risk taken in interest payments by signing derivative agreements and extending the fi xed interest term, the greater risk taken in the value of the derivatives, since the time factor means greater risk for large changes in value. An upward parallel adjustment of the discounting interest rate used in valuation of the interest rate derivative portfolio at 31 December, 2008 of 1%-unit, would change the value of the interest rate derivative portfolio approx. SEKm 500.

Shareholders on 31-12-2008

		Percentage
	Number	of voting
Shareholders	of shares	rights/capital
Szombatfalvy, László	10,000,000	6.1%
AFA Sjukförsäkrings AB	8,670,184	5.3%
AMF Pensionsförsäkrings AB	7,500,000	4.6%
Andra AP-fonden	6,623,752	4.0%
Kåpan Pensioner Försäkringsförening	2,040,000	1.2%
AFA Trygghetsförsäkring AB	1,956,566	1.2%
Fjärde AP-fonden	1,926,400	1.2%
Swedbank Robur Realinvest	1,586,800	1.0%
Bengt Norman	1,215,000	0.7%
Swedbank Robur Småbolagsfond Sverige	1,064,800	0.6%
Gamla Livförsäkringsaktiebolaget	1,023,000	0.6%
Swedbank Robur Småbolagsfond Norden	976,100	0.6%
Lannebo Småbolag	945,000	0.6%
Handelsbanken Småbolagsfond	863,980	0.5%
Banco Etisk Sverige	814,340	0.5%
Handelsbanken Aktiefond Index	662,675	0.4%
SEB Sverigefond	658,300	0.4%
Länsförsäkringar Fastighetsfond	658,284	0.4%
Livförsäkrings AB Skandia	628,188	0.4%
Folksam Ömsesidig Livförsäkring	618,164	0.4%
SEB Sverigefond Småbolag	615,300	0.4%
AFA Arbetsmarknads Försäkrings AB	594,719	0.4%
Nordea Allemansfond Alfa	545,358	0.3%
Akademiinvest AB	520,548	0.3%
Swedish shareholders < 500 000 shares:
56 holders, 100 000 - 499 999 shares	14,628,028	8.9%
349 holders, 10 000-99 999 shares	10,154,317	6.2%
2 633 holders, 1 000-9 999 shares	7,242,003	4.4%
3 772 holders, 1-999 shares	1,735,379	1.1%
450 shareholders registered abroad	77,532,815	47.3%
Total outstanding shares	164,000,000	100.0%
Repurchases shares	8,006,708
Total registered shares	172,006,708

Shareholders distributed by country 31-12-2008

Listed Real Estate Companies

The Castellum Share

Shareholders

At the year-end, Castellum had approx. 7,300 shareholders. The amount of shares registered abroad at the year-end was 47%. Shareholders registered abroad can not be broken down in terms of directly held and nominee registered shares. Castellum has no directly registered shareholder having more than 10%.

Proposed dividend

The Board intends to propose the annual general meeting to decide on a dividend of SEK 3.15 per share, an increase of 5% compared with previous year. The dividend ratio is 74% of income from property management after a 28% tax deduction.

If the annual general meeting decides to accept the Board's dividend proposal, of Tuesday March 31, 2009 as the record day for payment of the dividend, the share will be traded including the dividend up to and including the day of the annual general meeting, Thursday March 26, 2009. Payment of the dividend is expected to take place on Friday April 3, 2009.

The dividend falls within Castellum's objective of distributing at least 60% of income from property management after tax, having taken into account investment plans, consolidation needs, liquidity and financial position in general. Unrealized changes in value, positive or negative, are thus not included in the distributable result.

Share capital, number of shares and repurchase

The share capital amounts to SEKm 86, distributed among 172,006,708 A-shares with a par value of SEK 0.50 per share. Each share, except the company's own repurchased shares, entitles the holder to one vote and carries an equal right to a share in Castellum's capital.

Changes in the share capital and the amount of shares over time are displayed in note 14.

During 2000, Castellum repurchased 8,006,708 of the company's own shares for a total of SEKm 194, equivalent to 4.7% of the total registered number of shares. Since then no repurchases of the company's own shares have been made. As repurchasing is a good method of adapting the capital structure to the capital requirements from time to time, the Board will propose to the AGM extended to decide on an mandate to repurchase shares until the next AGM. This mandate provides the facility to repurchase a maximum of 10% of the number of registered shares in the company, i.e. a further 9.2 million shares in addition to the previously repurchased shares.

The number of outstanding shares, i.e. the number of registered shares less the number of repurchased shares, thus totals 164,000,000.

The Castellum share is listed on NASDAQ OMX Stockholm AB Large Cap.

Listed real estate companies

The total market capitalization of Swedish real estate companies operating solely in this field was approx. SEK 60 billion at the year-end, equivalent to approx. 3% of the total market capitalization of listed Swedish companies totalling approx. SEK 2,300 billion. Castellum's market capitalization, i.e. the value of all outstanding shares in Castellum, amounted to SEK 10 billion as at December 31, 2008.

During 2008, a total of 218 million shares were traded, equivalent to an average of 866,000 shares per day, corresponding on an annual basis to a turnover rate of 133%.

Growth, yield and fi nancial risk

The Castellum share price at the year-end was SEK 60.75. During 2008, the total yield of the share, including dividend of SEK 3.00, was –5%. Growth, yield and financial risk are shown below for both the present year as well as the average for three and ten years. The average over a number of years is important considering the fact that changes in value on properties may vary between different years.

	2008	3 years average/year	10 years average/year
Growth
Income from property management SEK/share	5%	6%	13%
Net income for the year after tax SEK/share	neg	–	–
Net asset value SEK/share	– 12%	5%	10%
Dividend SEK/share	5%	6%	13%
Real estate portfolio SEK/share	5%	11%	12%
Yield
Return on net asset value	– 8%	8%	11%
Return on total capital	1%	7%	8%
Financial risk
Interest coverage ratio	255%	295%	268%
Loan to value ratio	50%	46%	46%
Total yield of the share (incl. dividend)
Castellum	– 5%	– 1%	14%
NASDAQ OMX Stockholm (SIX Return)	– 39%	– 6%	5%
Real estate index Swedish (EPRA)	– 21%	– 3%	15%
Real estate index Europe (EPRA)	– 49%	– 19%	4%

Valuation - share price related key figures Earnings capacity

Income from property management before tax for 2008 amounted to SEK 5.93 per share, which compared to the share price at the year-end gives a multiple of 10.

Net income for 2008 amounted to SEK –4.04 per share, which gives a negative multiple.

Net asset value

When assets and liabilities are valued at fair value the net asset value can be calculated using shareholders' equity in the balance sheet. However, consideration should be taken to that the effective tax is lower than the reported 26,3% nominal tax rate, in part due to the possibility to sell properties in a tax effi cient way, and in part due to the time factor for which the tax should be discounted. The present assessment is that the discounted real deferred tax liability amounts to approx. 5%, which means a net asset value of SEKm 12,305 corresponding to SEK 75 per share. The share price at the year-end was thus 81% of the net asset value. An uncertainty range of +/– 5% in property valuations has an affect on the net asset value of +/– SEKm 1,385, corresponding to SEK 8 per share.

Dividend yield

The proposed dividend of SEK 3.15 corresponds to a yield of 5.2% based on the share price at the year-end.

The share's earnings multiple

Net asset value

	SEKm	SEK/ share
Equity according to the balance sheet	10,049	61
Reversed 26.3% deferred tax	2,785	17
Pre tax net asset value	12,834	78
Estimated real liability deferred tax 5%	– 529	– 3
Net asset value	12,305	75
Uncertainty range in property valuations +/– 5% after tax	+/–1,385	+/– 8

The share's dividend yield

Ten year summary

	2008	2007	2006	2005	2004	2003	2002	2001	2000	1999
Share price, SEK
last paid during the last day for trading	60.75	67.25	91.25	71.50	59.50	42.50	30.50	27.13	26.00	20.75
highest paid during the year	80.00	107.00	95.50	85.00	60.75	45.13	34.25	28.75	27.75	22.00
lowest paid during the year	41.40	62.00	56.50	55.00	39.38	28.25	24.63	22.63	17.00	16.63
average (high/low per day)	63.42	87.55	78.54	68.29	47.32	33.86	29.78	25.95	22.36	19.41
Dividend, SEK (for 2008 proposed)	3.15	3.00	2.85	2.62	2.38	2.13	1.88	1.63	1.38	1.13
The share's dividend yield	5.2%	4.5%	3.1%	3.7%	4.0%	5.0%	6.1%	6.0%	5.3%	5.4%
Dividend ratio	74%	74%	73%	73%	73%	72%	69%	68%	72%	73%
Total yield, the Castellum share	– 5.2%	– 23.2%	31.3%	24.2%	45.0%	45.5%	18.4%	9.6%	31.9%1)	–1.7%
Real Estate Index Sweden (EPRA)	– 21.4%	– 18.5%	35.8%	40.2%	48.8%	32.5%	3.2%	–2.2%	42.1%	19.4%
Real Estate Index Europe (EPRA)	– 48.8%	– 32.2%	49.4%	25.8%	41.7%	21.4%	2.3%	–0.6%	17.4%	13.3%
NASDAQ OMX Stockholm (SIX Return)	– 39.0%	– 2.6%	28.1%	36.3%	20.8%	34.2%	–35.9%	–14.8%	–10.8%	69.8%
Number of shares, thousand
average	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	186,512	200,000
outstanding	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	200,000
registered	172,008	172,008	172,008	172,008	172,008	172,008	172,008	172,008	172,008	200,000
Number of shareholders	7,300	7,300	7,700	7,900	8,900	8,800	8,300	7,100	7,100	7,100
Percentage of shareholders registered abroad	47%	49%	53%	46%	37%	33%	31%	34%	44%	42%
Market capitalization, SEKm	9,963	11,029	14,965	11,726	9,758	6,970	5,002	4,448	4,264	4,150
Turnover, thousand shares per year	218,304	207,442	107,710	93,268	86,289	92,067	107,587	132,720	156,742	113,152
Turnover, thousand shares per day on average	866	830	429	369	341	370	430	531	624	449
Turnover rate per year	133%	126%	66%	57%	53%	56%	66%	81%	84%	57%
Income from property management per share, SEK	5.93	5.63	5.38	5.00	4.52	4.07	3.77	3.30	2.65	2.15
Share price/pre tax income from property management per share	10.2	11.9	17.0	14.3	13.2	10.4	8.1	8.2	9.8	9.7
Net asset value per share, SEK (with 5% tax, without uncertainty range)	75	85	76	65	57	52	50	48	48	35
Share price/Net asset value	81%	79%	120%	110%	104%	82%	61%	57%	54%	59%

1) Including an average value of SEK 0.25 for redemption rights.

Investor relations

Castellum's objective is to continuously provide frequent, open and fair reporting on the company's real estate portfolio, results and fi nancial position to shareholders, the capital market, the media and other interested parties, yet without disclosing any individual business relations.

Investor relations are based above all on quarterly fi nancial reports, press releases on signifi cant commercial events and presentations of Castellum.

During the year, a large number of presentations of Castellum were held at meetings with investors and analysts, and at investment meetings both in Sweden and abroad. The large share of foreign shareholders means that there are extensive contacts with foreign investors.

Some 20 Swedish and foreign stockmarket analysts track the development of both Castellum and the Swedish real estate sector.

Press releases

2009-01-21	Improved income from property management and increased dividend, but changes in value cause reported loss
2009-01-19	The Election Committee's proposal regarding the board of directors etc of Castellum AB
2008-12-05	The subvalue in the interest rate derivatives portfolio increases at the same time as the interest rate cost fall
2008-10-16	Improved cashfl ow, but continued write downs on properties
2008-09-18	Castellum invests SEKm 434
2008-07-16	Growth in income from property management and good net leasing but continued write downs on properties
2008-06-26	Castellum invests SEKm 950
2008-04-16	Good growth in Castellum's income from property management but the trend of increasing prices on properties is broken
2008-03-27	Annual General Meeting in Castellum AB
2008-03-11	Castellum invests SEKm 238
2008-02-25	Invitation to the AGM in Castellum AB
2008-02-08	The Swedish version of Castellum's Annual Report 2007 is now available on www.castellum.se
2008-01-23	Castellum's income from property management improved by 5% and a dividend of SEK 3.00 is proposed
2008-01-09	The Election Committee's proposals regarding members to the Board of Directors and Auditors in Castellum AB
2008-01-09	Castellum invests SEKm 399

All press releases, quarterly reports and annual reports, both in Swedish and English, are available immediately after publication on www.castellum.se. On the website, it is possible to subscribe to Castellum's press releases and quarterly reports. Other information about Castellum, such as the real estate portfolio and continuous updates of the Castellum share price are

Corporate Governance

Corporate governance covers the different means of decision making by which the shareholders directly and indirectly control the company. A high level of transparency in the information to shareholders and the capital market helps the decision making process run effi ciently and provide different owners good insight into the operations of the company. Corporate governance has evolved through laws, recommendations, the so called "code", and through self regulation.

Articles of association

The name of the company is Castellum Aktiebolag and the company is a public limited company. The registered office of the Board is in Gothenburg.

The objective of the company's activities is to acquire, administer, develop and sell real estate and securities – directly or indirectly through wholly or partially owned companies – and to carry out other activities compatible with these. Changes in Castellum's articles of association are made in accordance with the regulations of the Companies Act. The articles of association, which also includes information on share capital, number of board members and auditors as well as rules for summons and agenda for the annual general meeting is available on the company's web site.

Annual general meeting 2008

According to the Companies Act the annual general meeting is the highest decision making forum in a public limited company. The annual general meeting elects the Board of Directors and the company's auditors as well as makes decisions on changes in the articles of association and on changes in the share capital.

The latest AGM was held on March 27 2008 in RunAn, Chalmers Kårhus in Gothenburg. At the AGM approx. 310 shareholders were present, representing 30.10% of the total number of shares and votes.

The AGM adopted the fi nancial reports for 2007 and discharged the Board of Directors and the Chief Executive Offi cer from liability regarding the operations for 2007.

Dividend to the shareholders was decided according to the Board's proposal of SEK 3.00 per share.

The AGM decided that the Board of Directors shall consist of seven board members with no deputies and that the Board shall receive a fi xed remuneration of SEK 1,740,000 of which SEK 450,000 to the Chairman of the Board and SEK 215,000 to each of the remaining board members. To the Board of Directors Jan Kvarnström, Marianne Dicander Alexandersson, Per Berggren, Ulla-Britt Fräjdin-Hellqvist, Christer Jacobsson, Göran Lindén and Mats Wäppling were elected. The AGM appointed Jan Kvarnström as Chairman of the Board.

The AGM decided to approve the Board's proposed guidelines for remuneration to the executive management.

The AGM also decided to authorize the Board – for the purpose of adjusting the company's capital structure – to acquire the company's own shares, up to 10% of all shares in the company.

Minutes of the annual general meeting held on March 27 2008 is available on the company's web site.

Share capital

The share capital amounts to SEK 86,003,354, distributed among 172,006,708 shares with a par value of SEK 0.50. Each share, except the company's own repurchased shares of 8,006,708, entitles the holder to one vote and carries an equal right to a share in Castellum's capital. Castellum has no directly registered shareholder owning more than 10%.

Board of Directors

According to the articles of association, Castellum's Board shall consist of no less than four and no more than eight members. Board members are elected at the annual general meeting for the time until the end of the fi rst annual general meeting held after the year the board member was elected. During 2007, the Board was made up of seven regular members. The Board works according to a set of procedural rules containing instructions on the allocation of work between the Board and the CEO. No board member is entitled to remuneration if leaving the assignment.

New board members receive an introduction of the company and its operations and take the stock exchange's training program according to the agreement with the stock exchange. The Board receives information of regulatory changes and issues concerning the operations and board responsibilities for a listed company regularly.

For Board decisions the rules of the Companies Act applies stating that at least half of the board members present and more than one third of the total number of board members must vote in order for a decision to be made. On equal count the Chairman has the deciding vote.

The Board of Directors responsibility

The Board appoints the company's Chief Executive Offi cer and sets remuneration and other terms of employment benefi ts for the CEO. According to the Swedish Companies Act and the Board of Directors' rules of procedure the Board is responsible for outlining overall, long-term strategies and objectives, budget and business plans, review and establish the accounts, as well as making decisions on issues regarding investments and signifi cant changes in Castellum's organization and operations.

The Board of Directors' rules of procedure

The Board of Directors' rules of procedure is set annually. The rules of procedure describes the work of the Board and the distribution of responsibility between the Board and the Chief Executive Offi cer. The rules of procedure states which topics should be dealt with at each board meeting and instructions regarding the fi nancial reporting to the Board of Directors. The rules of procedure also prescribes that the Board shall have an audit committee and a remuneration committee made up of all members of the Board who are not employed by the company. The Chairman of the committees shall be the Chairman of the Board of Directors.

The Chairman of the Board of Directors

The Chairman of the Board of Directors is responsible for making sure that the members of the Board regularly receive the information needed from the Chief Executive Offi cer in order to follow up on company's fi nancial position, results, liquidity, fi nancial planning and development. The Chairman of the Board of Directors is also obliged to fulfi l decisions made by the Annual General Meeting regarding establishing an election committee and to take part in the work of the committee. Idémannen 2, Linköping

The Board of Directors' activities During 2008

During 2008, Castellum's Board have held eight meetings of which one was an inaugural meeting. According to the prevailing procedural rules, the Board must hold at least fi ve scheduled board meetings each calendar year.

Board meetings are held in connection with the publication of the company's reports, the year-end and proposed appropriation of profi ts are being dealt with in January, interim accounts in April, July and October, and the budget for the next year at the meeting held in December.

At each of the scheduled board meetings, matters of signifi cance for the company, such as investments and sales of properties as well as funding covered. Furthermore, the Board is informed about the current state of operations, the rental and real estate markets as well as the stock and credit markets.

The regular matters dealt with by the Board during 2008 included the business plan, company-wide policies, overall strategies, the procedural rules for the Board, the capital structure and funding needs, and the company's insurance situation. The Board has made an annual evaluation of its work which has been put together by the Secretary to the Board commissioned by the Board. The evaluation has been handed to the Election Committee and the Board for discussion. The evaluation covers topics such as working climate, working procedures, follow-up and control, composition and communication with owners.

No other compensation beside the remuneration has been paid.

Remuneration Committee

The Remuneration Committee shall propose guidelines for remuneration to executive management which shall be presented to the AGM for decision. Further, the Remuneration Committee shall decide on remuneration for the Chief Executive Officer and other senior executives within the guide lines decided by the AGM. The Remuneration Committee shall annually evaluate the work of the Chief Executive Officer and deal with issues concerning appointing a Chief Executive Officer. The Remuneration Committee shall meet at least twice a year. During 2008, the Committee has held two meetings.

Audit Committee

The Audit Committee's tasks are to take responsibility for the company's internal control, accounting principles, risk management, fi nancial reporting, auditing and prepare for the election committee's process for election of auditors and their remuneration as well as secure a qualifi ed independent review of the company. The Audit Committee shall meet at least three times a year, of which at least twice with the company's auditors present. At one of the occasions when the Audit Committee meets with the auditors no member of the executive management shall be present. During 2008, the Committee has held three meetings.

Board of Directors, number of meetings and attendance during 2008 in Castellum AB

				Attendance of the total number of meetings
				Audit	Remuneration	Remuneration,
Name	Elected	Independent	Board meetings	Committee	Committee	SEK thousand
Jan Kvarnström	1994	No*	8 av 8	3 av 3	2 av 2	450
Per Berggren	2007	Yes	8 av 8	3 av 3	2 av 2	215
Marianne Dicander Alexandersson	2005	Yes	8 av 8	3 av 3	2 av 2	215
Ulla-Britt Fräjdin-Hellqvist	2003	Yes	8 av 8	3 av 3	2 av 2	215
Christer Jacobson	2006	Yes	8 av 8	3 av 3	2 av 2	215
Göran Lindén	1999	Yes	8 av 8	3 av 3	2 av 2	215
Mats Wäppling	2007	Yes	8 av 8	3 av 3	2 av 2	215

* Member of the Board of Directors in Castellum since 1994

Board of Directors

Jan Kvarnström

Chairman of the Board Born 1948, Master of Business Administration and Economics and MBA. Partner in ERC.

Has previous experience from different executive positions in the Bonnier-group and PKbanken (now Nordea) etc. and as CEO of Securum AB, Esselte AB and Dresdner Bank AG. Other assignments: Chairman of the Board of PA Resources AB, Collector AB and senior adviser in Investcorp. Shareholdings: 13,600

Per Berggren

Boardmember Born 1959, Master of Science and economic education from Stockholm University.

Present CEO of Jernhusen AB. Previously division manager in Fabege AB, CEO of Drott Kontor AB and property manager in Skanska Fastigheter Stockholm AB. Other assignments: Director of Ny Nationalarena i Solna AB. Shareholdings: 1,100

Marianne Dicander Alexandersson

Boardmember Born 1959, Master of Science. Deputy CEO of Apoteket AB.

Previous positions within Volvo, ICI, Pharmacia and latest as CEO of Kronans Droghandel AB. Other assignments: Director of Chalmers University of Technology, Confederation of Swedish Enterprise and WHO's Uppsala monitoring center. Shareholdings: 24

Ulla-Britt Fräjdin-Hellqvist Boardmember

Born 1954, Master of Science. Own operations in Fräjdin & Hellqvist AB.

Previous executive positions within Volvo Personvagnar and Head of Department in Confederation of Swedish Enterprise. Other assignments: Chairman of the Board of SinterCast AB, Stiftelsen för Strategisk Forskning and Ruter Dam. Director of Kongsberg Automotive, Svedberg i Dalstorp AB, Rymdbolaget, Friskvårds-Checken, 4cycle and e-man.

Christer Jacobson Boardmember Born 1946, Master of Business Administration and Economics DHS. Own operations in Bergsrådet Konsult & Förvaltning AB.

Previously stock commentator and market manager at Affärsvärlden and Head of Analysis and CEO of the Alfred Berg-group. Shareholdings: 0.

Göran Lindén Boardmember Born 1944, Bachelor of Business Administration and Economics. Has been CEO of ABBA AB, BCP AB, Fortos AB, Swedish Match AB and deputy CEO of Procordia AB and member of the executive board in AB Volvo.

Other assignments: Chairman of the Board of Insplanet AB, Procordia's retirement fund, Rölunda AB, Flodins Filter AB, Retail House Oy and Västanå Slott AB and Director of Wicanders Förvaltnings AB, Plockmatic Int. AB and Grimaldi Industrier AB. Shareholdings: 0.

Mats Wäppling Boardmember Born 1956, Master of Science. Present CEO of SWECO AB.

Previous positions as deputy CEO of NCC AB and manager of NCC Property Development and deputy CEO and division manger within Skanska AB. Shareholdings: 0.

Johan Ljungberg Secretary to the Board Born 1974 Secretary to the Board since 2008. Lawyer, Mannheimer Swartling Advokatbyrå. Shareholdings: 0

The information above refers to the situation in the beginning of February 2009. Shareholdings include own holdings and those of spouse, minors or children living at home and associated companies.

Carl Lindgren Born 1958. Company's auditor since 2007.

Ingemar Rindstig Born 1949. Company's auditor since 2003.

Conny Lysér Born 1962. Company's deputy auditor since 2003.

Audit

Castellum's auditors are elected by the AGM for a period of four years. The present period began in 2007 and the next election will therefore take place at the AGM in 2011. The company's auditors are Carl Lindgren, working at KPMG, Ingemar Rindstig, working at Ernst & Young and deputy auditor Conny Lysér, working at KPMG, all of them are authorized public accountants.

Remuneration to auditors

Remuneration to auditors during the year was SEK 3,896,000 (2007: 3,977,000 2006: 3,492,000) of which SEK 2,612,000 (2007: 2,117,000 2006: 1,942,000) related to auditing assignments and the remainder to consulting. The corresponding amounts for the parent company were SEK 979,000 (2007: 1,058,000 2006: 787,000) and 708,000 (2007: 682,000 2006: 562,000). Of the group's total remuneration of SEK 3,896,000 (2007: 3,977,000 2006: 3,492,000), SEK 3,637,000 (2007: 3,851,000 2005: 3,346,000) refer to KPMG and the remainder to Ernst & Young.

Election Committee

The Annual General Meeting 2008 decided that an election committee should be appointed for the AGM 2009 in order to present proposals for the number of members of the Board of Directors, election of members of the Board of Directors and chairman of the Board of Directors and remuneration to members of the Board of Directors.

The election committee is appointed according to the AGM's decision that the election committee should be established by the Chairman contacting the three largest shareholders at the end of the third quarter in order for them to each appoint one member to the election committee. The appointed members, together with the Chairman of the Board of Directors as convener, should constitute the election committee. It was also decided that the election committee would appoint a chairman amongst its members.

The election committee formed includes: Maj-Charlotte Wallin representing AFA Försäkring, Lars-Åke Bokenberger representing AMF Pension, Carl Rosén representing Andra AP-fonden, and the Chairman of the Board Jan Kvarnström. Maj-Charlotte Wallin is the chairman of the election committee.

The election committee has held three meetings with minutes. At the meetings the election committee has adressed all the issues the election committee are obliged to adress according to the Swedish Code for corporate governance. The election committee has evaluated if the current Board of Directors meet the requirements that will be put on the Board as an effect of Castellum's situation and future operations, e.g. by reviewing the evaluation made of the work of the Board.

The election committee has decided to propose re-election of the Boardmembers Jan Kvarnström, Per Berggren, Marianne Dicander Alexandersson, Ulla-Britt Fräjdin-Hellqvist, Christer Jacobson and Göran Lindén. Jan Kvarnström is proposed as chairman of the Board. Mats Wäppling has declined re-election. The proposed Board of Directors is considered to possess the versatility and competence, experience and background required with respect to Castellum's business, phase in the deve lopment and other circumstances.

In order to be able to judge the proposed boardmembers independency in relation to Castellum and its executive management as well as to the larger shareholders in Castellum, the election committee has gathered information on the proposed members of the Board of Directors. Out of this, the election committee has assessed that only Mr Jan Kvarnström, member of the Board of Directors since 1994, is to be considered in a position of dependence in relation to Castellum and its executive management.

Remuneration to the Board of Directors is proposed to remain unchanged, SEK 450,000 to the Chairman and SEK 215,000 for each of the remaining board members, SEK 1,525,000 in total.

Finally, the Election Committee has informed Castellum about the work of the Election Committee and which proposals the Election Committee has decided to put forward.

The Annual General Meeting 2009

• For the AGM on March 26, 2009 the Board of Directors proposes:
• a dividend of SEK 3.15 per share and March 31, 2009 as record day,
• guidelines for remuneration to members of the executive management,
• a renewed mandate for the Board to decide on purchase or transfer of the company's own shares.

For the AGM the election committee proposes:

• that the number of board members shall be six,
• that remuneration to the Board of Directors should be SEK 1,525,000 out of which SEK 450,000 should be allocated to the Chairman of the Board and SEK 215,000 to each one of the remaining members of the Board of Directors. The remuneration include work on the committees,
• re-election of the board members Jan Kvarnström, Per Berggren, Marianne Dicander Alexandersson, Ulla-Britt Fräjdin-Hellqvist, Christer Jacobson and Göran Lindén and, that Jan Kvarnström shall be re-elected as Chairman of the Board of Directors,
• for AGM to decide on appointing an election committee for the AGM 2010 and for the Chairman to contact the three largest registered or in an other way known shareholders at the end of the third quarter 2009 and invite them to each appoint one member to the election committee, and that the three appointed members together with the Chairman of the Board of Directors shall constitute the election committee. The election committee will appoint a chairman amongst its members.

Swedish code for corporate governance

Castellum applies the code which purpose is to create good preconditions for practicing the role of an active and responsible ownership. The code is meant to make up one step in the self-regulation of the Swedish business environment. It is based upon the principle comply or explain, meaning that all rules must not always be followed and there is no crime in deviating from one or more particular rules of the code if there are motives and explanations. Swedish code for corporate governance is conducted by the Swedish Corporate Governance Board and is found on www.bolagsstyrning.se.

Castellum deviates from the paragraph, "making the members of the election committee public", which according to the code shall be made six month prior to the AGM. The AGM 2008 decided, according to previous practice, that an election committee should be established at the end of the third quarter, and that the names of the members of the election committee should be published in the company's third interim report for the year. According to this composition of the election committee was published approximately five months prior to the AGM.

Since the Corporate Governance Report, which is made up of the section corporate governance pages 60-69, is an important report Castellum has chosen to include this in the Directors' Report. Hence, the Corporate Governance Report, excluding the section about internal control, is included in the regular audit of the annual report.

Internal control

According to the Swedish Companies Act and Swedish code for corporate governance the Board of Directors is responsible for the internal control. This report has been drawn up in accordance with the Swedish code for corporate governance and is hence limited to internal control regarding the fi nancial reporting.

The internal control in Castellum follows an established framework, Internal Control – Integrated Framework, "COSO", comprising the following fi ve components: control environment, risk assessment, control activities, information and communication, and monitoring.

Control environment

The basis for the internal control regarding the fi nancial reporting is made up of the control environment, which consists of different parts that together form the culture and values Castellum is managed from. The fundamentals for Castellum's internal control is the decentralized smallscale organization with over 600 properties, as well as cost centres, which are managed by six subsidiaries, each with approx. 30-40 employees. The decision making processes, authorizations and responsibilities which have been drawn up and communicated in documents such as the Board of Directors' rules of procedure, rules for decision making, rules for authorization, accounting and reporting manuals, internal policies and manuals are also important for the internal control. Documents in use are updated regularly to changes in legislation, accounting standards or listing requirements etc.

Risk assessment

In Castellum risk management is built into the processes and different methods are used to evaluate and limit risks and to secure that the risks Castellum is exposed to are managed in accordance with set polices and guidelines. In accordance with the rules of procedure, the Board of Directors, also the audit committee, reviews the internal control once a year. Identifi ed risks are assessed and measures are set to reduce these risks. The important risks Castellum has identifi ed in the fi nancial reporting are errors in the accounting and valuation of properties, interest bearing liabilities, taxes and VAT, as well as the risk of fraud, loss or embezzlement of assets.

Control activities

The risks identifi ed regarding the fi nancial reporting are taken care of by the company's structure for control resulting in a number of control measures. The control measures aim to prevent, discover and correct errors and deviations and comprise analytical reviews on many levels in the organization and comparisons of income statement items, reconciliation of accounts, follow-up and reconciliation of board decisions and policies set by the board, authorization and reporting of business transactions, structure for proxy and authorization, authorized signatory, compliance offi cer function, group-wide defi nitions, templates, tools for reporting as well as accounting and valuation principles.

Castellum's subsidiaries have their own fi nancial functions which take part in the planning and follow-up of their units' fi nancial results. Their regular analysis of their own units' fi nancial reporting are together with the analysis made at group level an important part of the internal control in order to ensure that the fi nancial reporting do not contain any signifi cant errors.

Information and communication

Castellum has ways for information and communication that aim to ensure an effective and correct distribution of information regarding the fi nancial reporting. This demands that all parts of the operation communicate and share relevant and important information. Policies and guidelines regarding the fi nancial reporting as well as updates and changes are made available and aware to the personnel concerned. The executive management as well as the Board of Directors regularly receive fi nancial information about the subsidiaries with comments on fi nancial results and risks. The Board of Directors also receives additional information regarding risk management, internal control and fi nancial reporting from the auditors through the audit committee. In order to ensure that the external distribution of information is correct and complete there are both a policy for communicating with the stock market and an information security policy.

Monitoring

Regular follow-ups take place on many levels in the group, on both property level and subsidiary level as well as group level. The Board of Directors, which also makes up the audit committee, regularly evaluates the information provided by the company management and the auditors. The company's auditors also report in person directly to the audit committee at least twice a year of their observations from the audit and their assessment of the internal control. In addition the audit committee makes an annual review of the risk assessments and the decided measures. The audit committee's and the Board of Directors' monitoring are of particular importance for the development of the internal control and for ensuring that measures are taken for possible shortcomings and suggestions that emerge.

The need for internal audits

Castellum has a small scale organization with approx. 30-40 employees in each company which together manages over 600 cost centres. All property management are run by the subsidiaries while fi nancial management is taken care of by the parent company's treasury department, meaning that Castellum AB is not a profi t centre. This gives the fi nancial function of the parent company the role of a controlling function for the subsidiaries and a compliance offi cer function for the treasury department. In all this provides for the assessment that there is no need for a special unit for internal audits.

Executive Group Management

The executive group management includes the Chief Executive Offi cer, the Deputy Chief Executive Offi cer with responsibility for business development, the Financial and Finance Directors of Castellum AB and the six Managing Directors of the subsidiaries. Each member of the executive group management has their own area of responsibility and at the meetings mostly issues of overall operations are covered. The executive management has had 12 meetings in 2008.

The Chief Executive Offi cer

The Chief Executive Offi cer is responsible for the company's day-to-day operations and for leading the operations according to the guidelines and directives submitted by the Board of Directors and for providing the Board with information and necessary basis for decision making. The Chief Executive Offi cer also reports at the Board meetings and shall make sure that members of the Board regularly receive the information needed in order to follow the company's and the group's fi nancial position, results, liquidity, and development.

Guidelines for remuneration for Senior Executives

The AGM 2008 decided on the following guidelines for remuneration for senior executives:

Castellum shall uphold the remuneration levels and terms of employment required in order to recruit and maintain a good management with competence and capacity to achieve set objectives. The remuneration and other terms of employment for the management shall thus be adjusted to the market conditions. A fi xed salary will be paid for work performed in a satisfactory manner.

In addition, fl exible remunerations may also be offered, in order to reward clearly goal referenced achievements by simple and transparent constructions. The fl exible remuneration of the management shall generally not exceed the fi xed salary. The fl exible remuneration of the management shall depend upon the extent to which set goals have been fulfi lled. The remuneration of the management under the incentive program will depend upon the extent to which set goals have been fulfi lled, mainly in respect of profi ts from property management, development of the company image, training of staff and customer satisfaction, as well as development of the share price, both in nominal fi gures and compared to real estate index.

The non-monetary benefi ts of the management shall facilitate the work of the members of management and shall correspond to what is considered reasonable under relevant market practice.

The pension terms of the executive management shall be set according to general market practice with regards to corresponding executive management, and shall be based on pension plans with fi xed payments.

Dismissal pay and severance pay of a member of the management shall not exceed 24 monthly salaries in total.

Castellum has followed the guidelines decided by the AGM.

The proposed guidelines for remuneration for senior executives which will be put forward at the AGM on March 26, 2009 are on principle unchanged compared to those put forward at the AGM in 2008.

For further information regarding remuneration for the management see note 10, page 91.

Executive Group Management

Håkan Hellström

Chief Executive Offi cer, Castellum AB. Born 1956, Master of Business Administration and Economics. Employed since 1994 as Chief Financial Offi cer and Deputy Chief Executive Offi cer. Has previously worked as Authorized Public Accountant. Other assignments: Member of the Board of European Public Real Estate Association (EPRA). Shareholdings: 100,000

Tage Christoffersson

Managing Director, Eklandia Fastighets AB. Born 1952, upper secondary schooling and real estate/economy at KTH. Has been working in the real estate business since 1976. Employed since 1994 and Managing Director of Eklandia since 1995.

Shareholdings: 47,000

Anette Engström

Financial Director, Castellum AB. Born 1961, Master of Business Administration and Economics. More than 20 years experience from bank and fi nance. Employed since 2000 and Financial Director since 2006. Shareholdings: 24,800

Claes Larsson

Managing Director, Aspholmen Fastigheter AB. Born 1957, Master of Science. More than 10 years experience from building construction as team manager/ district manager. Employed and Managing Director of Aspholmen since 2002. Shareholdings: 17,900

Christer Sundberg

Managing Director, Harry Sjögren AB. Born 1955, Master of Science. More than 25 years experience from banks and real estate companies. Employed and Managing Director of Harry Sjögren AB since 1993. Shareholdings: 40,850

minors or children living at home and associated companies.

The information above refers to the situation in the beginning of February 2009. Shareholdings include own holdings and those of spouse,

Henrik Saxborn

Deputy Chief Executive Offi cer, Castellum AB with responsibility for business development. Born 1964, Master of Science. Previous experience from management and acquisitions of properties. Employed since 2006. Shareholdings: 8,200

Ulrika Danielsson

Finance Director, Castellum AB. Born 1972, Master of Business Administration and Economics. Experience within the fi nancial and controlling function. Employed since 1998 and Finance Director since 2006. Shareholdings: 2,800

Claes Junefelt

Managing Director, Fastighets AB Corallen. Born 1960, Master of Science. More than 15 years experience from building construction as team manager/ district manager. Employed and Managing Director of Corallen since 2005. Shareholdings: 5,000

Anders Nilsson

Managing Director, Fastighets AB Brostaden. Born 1967, Master of Science. More than 10 years experience from the real estate business. Employed since 1993 and Managing Director of Brostaden since 2006. Shareholdings: 3,300

Gunnar Östenson

Managing Director, Fastighets AB Briggen.

Born 1956, Master of Business Administration and Economics. Previous experience from real estate management and the construction industry. Employed and Managing Director of Briggen since 2006. Shareholdings: 2,000

Financial review

In the next year we will initially see higher rental income from index adjustments, relatively stable vacancies under the assumption that bankruptcies in the industry will not become too frequent and probably lower interest rate costs due to lower interest rates.

Summary

Rental income amounted to SEKm 2,501 (2,259) with an average economic occupancy rate of 89.7% (87.9%). Average contracted rental level amounted to SEK 921 per sq.m. (896) giving an increase with 3% compared with previous year. During the year 767 new lease contracts were signed with a total annual value of SEKm 305 (315), while contracts terminated amounted to SEKm 221 (180). Hence, net leasing for the year was SEKm 84 (135).

Property costs amounted to SEKm 831 (771) corresponding to SEK 268 per sq.m. (262). The increase is chiefl y an effect of higher energy prices. Net fi nancial items were SEKm –626 (–495). The increase of SEKm 131 is partly due to a larger real estate portfolio and partly due to that the average interest rate level during the period has increased 0.5%-units to 4.7% (4.2%), giving higher costs in net fi nancial items of approx. SEKm 60.

Income from property management during the year, i.e. net income excluding changes in value and tax, amounted to SEKm 973 (924), equivalent to SEK 5.93 (5.63) per share. The improvement is 5% and is an effect of improved net operating income in property management and investments made but has been limited by higher interest costs.

During the year, changes in value on properties amounted to SEKm –1,262 (920), equivalent to –0.4%. Out of this fi gure approx. SEKm –1,400, can be assigned to an increase in the required yield by 0.4 %-units during the year. The rest can be assigned to investments made and slightly improved estimated future cash fl ow. Changes in value on derivates for the year amounted to SEKm –1,010 (99) and is an effect of dramatically falling long term interest rates.

Castellum's net income for the year 2008 was SEKm –663 (1,487).

The real estate portfolio

As of 31 December, 2008 Castellum's real estate portfolio amounted to a fair value of SEKm 29,165 (27,717) and the normalized yield, excluding development projects and undeveloped land, can be calculated to 7.4% (7.0%). During the year investments totalling SEKm 2,738 (2,598) were made, of which SEKm 1,212 (1,514) were acquisitions and SEKm 1,526 (1,084) new construction, extensions and refurbishment.

Financing

As of 31 December, 2008 Castellum had long term credit agreements totalling SEKm 15,800 (13,300), long term bonds totalling SEKm 650 (650), short term credit agreements totalling SEKm 770 (776) and a commercial paper program of SEKm 4,000 (4,000). After deduction of liquidity of SEKm 9 (7), net interest bearing liabilities were SEKm 14,598 (12,575). There are currently no outstanding commercial papers.

The average duration of Castellum's long term credit agreements as of 31 December, 2008 was 5.5 years (5.2). Margins and fees on long term credit agreements had an average duration on 3.2 years.

The average effective interest rate as of 31 December, 2008 was 4.8% (4.4%), while the market interest rate of an equal portfolio was 2.9% (5.0%). The average fi xed interest term on the same date was 2.9 years (2.2).

Multi year Summay

	2008	2007	2006	2005	2004	2003	2002	2001	2000
Income Statement, SEKm
Rental income	2,501	2,259	2,014	1,907	1,856	1,758	1,684	1,571	1,435
Property costs	–831	–771	–700	–637	–628	–595	–560	–549	–518
Net operating income	1,670	1,488	1,314	1,270	1,228	1,163	1,124	1,022	917
Central administrative expenses	– 71	–69	–67	–68	–69	–67	–63	–67	–62
Net fi nancial items	–626	–495	–364	–382	–418	–428	–442	–414	–360
Income from property management	973	924	883	820	741	668	619	541	495
Changes in value, properties	–1,262	920	1,145	932	660	–43	251	686	668
Changes in value, interest rate derivatives	–1,010	99	178	–40	–146	–13	–168	42	–114
Items affecting comparability	–	–	–	–	–	–	–	–	–12
Current tax	–14	– 22	–10	–1	–5	–1	–2	–	–1
Deferred tax	650	– 434	–522	–417	–334	–171	–44	–338	–276
Net income for the year	–663	1,487	1,674	1,294	916	440	656	931	760
Balance Sheet, SEKm
Investment properties	29,165	27,717	24,238	21,270	19,449	18,015	17,348	16,551	14,759
Other fi xed assets	230	123	200	103	94	167	172	394	118
Interest rate derivatives	–	44	–	–	–	–	–	–	–
Cash and bank	9	7	8	5	7	33	20	20	11
Total assets	29,404	27,891	24,446	21,378	19,550	18,215	17,540	16,965	14,888
Shareholders' equity	10,049	11,204	10,184	8,940	8,035	7,467	7,334	6,946	6,240
Interest-bearing liabilities	14,607	12,582	10,837	9,396	8,834	8,598	8,264	8,254	7,245
Deferred tax liability	2,785	3,322	2,723	2,126	1,659	1,294	1,124	1,081	743
Interest rate derivatives	966	–	55	233	391	245	232	64	106
Non-interest-bearing liabilities	997	783	647	683	631	611	586	620	554
Total shareholders' equity and liabilities	29,404	27,891	24,446	21,378	19,550	18,215	17,540	16,965	14,888
Financial key ratios
Net operating income margin	67%	66%	65%	67%	66%	66%	67%	65%	64%
Average interest rate	4.7%	4.2%	3.7%	4.3%	4.9%	5.4%	5.7%	5.8%	5.9%
Interest coverage ratio	255%	287%	343%	315%	277%	256%	240%	231%	238%
Return on equity	–6.1%	14.9%	19.2%	16.5%	12.6%	6.1%	9.6%	15.2%	12.6%
Return on net asset value	–8.3%	16.2%	20.7%	18.2%	14.6%	7.2%	9.0%	17.9%	12.6%
Return on total capital	1.2%	8.9%	10.4%	10.4%	9.6%	5.9%	7.6%	10.3%	10.6%
Investments in properties, SEKm	2,738	2,598	2,283	1,357	1,268	1,108	1,050	1,741	1,352
Sales, SEKm	28	39	460	468	494	397	503	635	598
Equity/assets ratio	34%	40%	42%	42%	41%	41%	42%	41%	42%
Loan to value ratio	50%	45%	45%	45%	45%	48%	48%	50%	49%
Data per share (since there are no potential common stock, there is no effect of dilution)
Average number of shares, thousand	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	186,512
Earnings after tax, SEK	–4.04	9.07	10.21	7.89	5.59	2.68	4.00	5.68	4.07
Income from property management, SEK	5.93	5.63	5.38	5.00	4.52	4.07	3.77	3.30	2.65
Number of outstanding shares, thousand	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000
Fair value of properties, SEK	178	169	148	130	119	110	106	101	90
Net asset value (5% tax), SEK	75	85	76	65	57	52	50	48	42
Shareholders' equity, SEK	61	68	62	55	49	46	45	42	38
Dividend, SEK (2008 proposed)	3.15	3.00	2.85	2.62	2.38	2.13	1.88	1.63	1.38
Dividend ratio	74%	74%	73%	73%	73%	72%	69%	68%	72%

Financial Reports 2008

Consolidated Income Statement	74
Consolidated Balance Sheet	75
Income Statement for the Parent Company	76
Balance Sheet for the Parent Company	77
Change in Equity	78
Cash Flow Statement	79
Accounting Principles and Notes	80

Consolidated Income Statement

SEKm		2008	2007
Rental income	Note 3	2 501	2 259
Operating expenses	Note 4	– 455	– 414
Maintenance	Note 4	– 96	– 96
Ground rent	Note 4	– 21	– 20
Real estate tax	Note 4	– 115	– 110
Leasing and property administration	Note 4	– 144	– 131
Net operating income		1 670	1 488
Central administrative expenses	Note 5	– 71	– 69
Financial items
Financial income	Note 6	4	3
Financial costs	Note 7	– 630	– 498
Income from property management		973	924
Changes in value	Note 8
Properties, realized		0	1
Properties, unrealized		– 1 262	919
Interest rate derivatives, unrealized		– 1 010	99
Income before tax		– 1 299	1 943
Current tax	Note 9	– 14	– 22
Deferred tax	Note 9	650	– 434
Net income for the year		– 663	1 487

Since there are no minority interests the entire net income is attributable to the shareholders of the parent company.

Data per share (since there are no potential common stock, there is no effect of dilution)
Average number of shares, thousand	164 000	164 000
Earnings after tax, SEK	– 4.04	9.07
Dividend, SEK (for 2008 proposed)	3.15	3.00

Consolidated Balance Sheet

SEKm		Dec 31 2008	Dec 31 2007
ASSETS
Fixed assets
Investment properties	Note 11	29 165	27 717
Tangible fi xed assets	Note 12	15	13
Total fi xed assets		29 180	27 730
Current assets
Rent receivables		15	14
Other receivables		160	66
Prepaid expenses and accrued income		40	30
Interest rate derivatives		–	44
Cash and bank		9	7
Total current assets TOTAL ASSETS		224 29 404	161 27 891
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity attributable to the shareholders of	Note 15
the parent company
Share capital		86	86
Reserves		20	20
Retained earnings		9 943	11 098
Total shareholders' equity		10 049	11 204
Liabilities	Note 16
Long-term liabilities
Long-term interest-bearing liabilities	Note 17	14 607	12 582
Deferred tax liability	Note 18	2 785	3 322
Total long-term liabilities		17 392	15 904
Short-term liabilities
Interest rate derivatives		966	–
Accounts payable		200	205
Tax liabilities		38	46
Other liabilities		102	60
Accrued expenses and prepaid income	Note 19	657	472
Total short-term liabilities		1 963	783
Total liabilities		19 355	16 687
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		29 404	27 891
Pledged assets	Note 20	14 839	11 793
Contingent liabilities	Note 21	–	–

Income Statement for the Parent Company

SEKm		2008	2007
Income	Note 3	12	11
Central administrative expenses	Note 5	– 52	– 52
Financial items
Financial income	Note 6	1 082	1 072
Financial costs	Note 7	– 665	– 513
Income before changes in value and tax		377	518
Changes in value	Note 8
Interest rate derivatives, unrealized		– 1 010	99
Income before tax		– 633	617
Current tax	Note 9	–	–
Deferred tax	Note 9	276	– 19
Net income for the year		– 357	598

Balance Sheet for the Parent Company

SEKm		Dec 31 2008	Dec 31 2007
ASSETS
Fixed assets
Tangible fi xed assets	Note 12	0	0
Financial fi xed assets
Participations in group companies	Note 13	4 087	4 087
Deferred tax assets	Note 18	241	–
Long-term receivables, group companies	Note 14	15 030	12 460
Total fi nancial fi xed assets		19 358	16 547
Total fi xed assets		19 358	16 547
Current assets
Short-term receivables, group companies		525	500
Prepaid expenses and accrued income		3	3
Interest rate derivatives		–	44
Cash and bank		0	0
Total current assets		528	547
TOTAL ASSETS		19 886	17 094
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	Note 15
Restricted equity
Share capital		86	86
Restricted reserves		20	20
Non-restricted equity
Retained earnings		3 852	3 664
Net income for the year		– 357	598
Total shareholders' equity		3 601	4 368
Provisions
Deferred tax liability	Note 18	–	3
Liabilities	Note 16
Long-term interest-bearing liabilities	Note 17	14 304	12 276
Long-term interest-bearing liabilities, group companies		775	331
Interest rate derivatives		966	–
Accounts payable		1	1
Other liabilities		3	2
Accrued expenses and prepaid income	Note 19	236	113
Total liabilities		16 285	12 723
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		19 886	17 094
Pledged assets	Note 20	13 680	10 872
Contingent liabilities	Note 21	300	300

Change in Equity

Attributable to the shareholders of the parent company

	Number of out
	standing shares,	Share		Retained	Total
Group, SEKm	thousand	capital	Reserves	earnings	equity
Shareholders' equity 31-12-2006	164 000	86	20	10 078	10 184
Dividend, March 2007	–	–	–	– 467	– 467
Net income for the year	–	–	–	1 487	1 487
Shareholders' equity 31-12-2007	164 000	86	20	11 098	11 204
Dividend, March 2008	–	–	–	– 492	– 492
Net income for the year	–	–	–	– 663	– 663
Shareholders' equity 31-12-2008	164 000	86	20	9 943	10 049

	Number of out
	standing shares,	Share	Restricted	Retained	Total
Partent Company, SEKm	thousand	capital	reserves	earnings	equity
Shareholders' equity 31-12-2006	164 000	86	20	4 167	4 273
Dividend, March 2007	–	–	–	– 467	– 467
Paid group contribution after tax	–	–	–	– 36	– 36
Net income for the year	–	–	–	598	598
Shareholders' equity 31-12-2007	164 000	86	20	4 262	4 368
Dividend, March 2008	–	–	–	– 492	– 492
Received group contribution after tax	–	–	–	82	82
Net income for the year	–	–	–	– 357	– 357
Shareholders' equity 31-12-2008	164 000	86	20	3 495	3 601

Cash Flow Statement

			Group		Parent Company
SEKm		2008	2007	2008	2007
Operating activities
Net operating income		1 670	1 488	12	11
Central administrative expenses		– 71	– 69	– 52	– 52
Depreciations reversed		6	6	1	1
Net fi nancial items paid	Note 22	– 499	– 476	134	28
Tax paid		– 26	– 12	–	–
Cash fl ow from operating activities		1 080	937	95	– 12
before change in working capital
Cash fl ow from change in working capital
Change in current receivables		– 108	68	– 25	– 71
Change in current liabilities		106	101	– 3	2
Cash fl ow from operating activities		1 078	1 106	67	– 81
Investment activities
Investments in existing properties		– 1 526	– 1 084	–	–
Property acquisitions	Note 22	– 1 096	– 1 349	–	–
Change in liabilities at acquisitions of properties		– 7	6	–	–
Property sales		25	39	–	–
Change in receivables at sales of properties		3	9	–	–
Net capital contributions, subsidiaries		–	–	524	500
Other net investments		– 8	– 6	– 1	0
Cash fl ow from investment activities		– 2 609	– 2 385	523	500
Financing activities
Change in long-term liabilities		2 025	1 745	2 472	1 678
Change in long-term receivables		–	–	– 2 570	– 1 630
Dividend paid		– 492	– 467	– 492	– 467
Cash fl ow from fi nancing activites		1 533	1 278	– 590	– 419
Cash fl ow for the year		2	– 1	0	0
Cash and bank, opening balance		7	8	0	0
Cash and bank, closing balance		9	7	0	0

Accounting Principles and Notes

(All fi gures in SEKm unless stated otherwise.)

Note 1	Accounting Principles
General information	The fi nancial reports of Castellum AB (The Parent Company) for the fi nancial year ending December 31, 2008 has been approved by the Board of Directors and the Chief Executive Offi cer for publication on February 4, 2009 and will be proposed to the Annual General Meeting 2009 for adoption. The parent company is a Swedish limited liability company (publ), with registered offi ce in Gothenburg, Sweden. The operations of the Group are described in the Directors' report.
Grounds for the accounting	Castellum´s accounts have been prepared in accordance with the IFRS standards adopted by the EU and the interpretations of them (IFRIC). Further, the consolidated accounts have been prepared according to Swedish law by application of the Swedish Financial Reporting Boards recommendation RFR 1:1 (Complementary accounting principles for consolidated accounts). The accounts have been prepared based on fair value of investment properties and derivatives and nominal value for deferred tax. For the remaining items acquisition value has been used.
Critical assessments	In order for the accounts to be completed in accordance with the IFRS and generally accepted accounting principles assessments and assumptions must be made that affect the recorded assets, liabilities, income and costs as well as other information in the accounts. These assessments and assumptions are based upon historical experiences and other factors which are considered fair under the current conditions. Real outcome may be different from these assessments if other assumptions are made or other conditions exist.
	Investment properties In valuation of investment properties the assessments and assumptions can have signifi cant affect on the income and fi nancial position of the Group. The valuation calls for estimation and assumptions of the future cash fl ows and decision about the discounting factor (required yield). To refl ect the uncertainty that exists in the assessments and assumptions, normally an uncertainty range of +/- 5-10% is used in property valuations. Information about this and the assessments and assumptions made are presented in note 11.
	Deferred tax liability According to the accounting principles deferred tax shall be accounted to nominal value without discounting, meaning 26.3% nominal tax rate. The real tax is considerably lower in part due to the possibility to sell properties in a tax effi cient way, and in part due to the time factor.
Classifi cation	Fixed assets and long-term liabilities consist of amounts that are expected to be regained or settled more than twelve months from the balance sheet day. Current assets and short-term liabilities consist of amounts that are expected to be regained or settled in less than twelve months from the balance sheet day.
The consolidated fi nancial statements	The Group's balance sheet and income statement includes all companies where the parent company has direct or indirect determining infl uence. All companies in the Group are wholly-owned and there are neither associated companies nor joint ventures. In addition to the parent company, the Group comprises the subsidiaries listed in Note 13 and their respecitve sub-groups. The consolidated fi nancial statements are based upon the accounts for all subsidiaries as of December 31. The consolidated fi nancial statements have been prepared according to the acquisition accounting method, meaning that the shareholders' equity of the subsidiaries at the time of acquisition, calculated as the difference between the fair value of the assets and liabilities, are fully eliminated. The shareholders' equity of the Group includes only the part of shareholders' equity of the subsidiaries that has been added after the acquisition. Castellum has classifi ed all company acquisitions as business combination acquisitions and thus recorded full nominal tax.
	The consolidated income statement includes records of associated companies acquired or sold during the year only for the time of possession. Intra-group sales, income, losses and dealings are eliminated in the consolidated accounts.
Income	Rental income Rental income, which from an accounting perspective is also called income from operating leases, is debited in advance and allocated linear in the income statement, based on the terms in the lease. Rental income includes supplementary charges for the tenant, such as debited real estate tax and heating costs. Rents debited in advance are recorded as deferred rental income. In cases where a lease during a certain period of time offers a

reduced rent, corresponding to a higher rent at another point in time, this lower/higher rent is spread out over the period of the lease. Pure discounts, such as reduction for successive moving in, are recorded in the income statement in the period when they are given.

Income from property sales

Income from property sales is entered as of the contract date, unless there exist special conditions in the purchasing agreement. On sale of a property through a company, the transaction is recorded using gross accounting regarding the underlying property price and the calculated deduction for deferred tax. The result from a property sales is accounted for as a realized change in value and refers to the difference between the received sales price after deduction of sales costs, and the recorded value in the latest interim report with addition of capitalized investments after the latest interim report.

Financial income

Financial income consist of interest income and interest subsidies and are recorded as income in the period which they refer to. Also received and anticipated dividends are recorded as a fi nancial income.

Financial costs are interests and other costs that occur when a company is borrowing money. Costs for taking out pledges for mortgages are not considered as fi nancial costs and are capitalized. Financial costs are accounted for in the period which they refer to. Financial costs also consist of cost of entered interest rate derivatives-agreements. Payments under these interest rate derivatives are accounted for in the period which they refer to. Net fi nancial items have not been affected by market valuation of the entered interest rate derivatives, instead changes in the market value of interest rate derivatives are recorded as changes in value under a separate headline. The part of the interest costs originating from interest during the construction period for major new construction, extensions or refurbishment projects is capitalized. The interest is calculated based on the average interest rate level for the Group.

Employee benefi ts are accounted for as the employees perform services in exchange for the remuneration. Benefi ts according to incentive plans are accounted for as the objectives are achieved during the period of the incentive plan.

Pensions

Pensions and other post-employment benefi ts are classifi ed as defi ned contribution or defi ned benefi t plans. The majority of the Castellum Group's pension commitments are defi ned contribution plans, which are fulfi lled through regular payments to independent authorities or bodies which administer the plans. Obligations regarding payments to contribution plans are recorded as a cost in the income statement when they occur. A small number of employees within the Castellum Group have defi ned ITP-plans with regular payments to Alecta. These plans are recorded as defi ned contribution plan since Alecta does not provide the information needed in order to report the plan as a defi ned benefi t plan. There are, however, no indications of any signifi cant liabilities besides what have already been paid to Alecta.

The income tax in the income statement is divided into current and deferred tax. The income tax is recorded in the income statement except when related to transactions, such as group contributions, which have been recorded directly in equity when possible tax effects also have been recorded directly in equity. Current and deferred taxes are calculated based on current tax rates, which is 28% for 2008 and the lower tax rate of 26.3% applied from 2009.

Open claims in the income tax return that contains a certain degree of uncertainty is taken into consideration in the tax calculation in the year after the fi nancial year at the earliest, after the taxation has been assessed by the tax authority.

Deferred tax

Deferred tax is recorded in Castellum, using the balance sheet method, for all temporary difference between an asset's or a liability's book value and its tax basis value. This means that there is a tax liability or a tax asset that falls due for payment on the date on which the asset or liability is realized. Castellum has two entries in which temporary differences may be found – properties and tax loss carry forwards. Deferred tax assets related to tax loss carry forwards are recorded since it is probable that future taxable income will be available, which may be utilized against the tax loss carry forwards. Deferred tax liability relates to the difference between the properties book value and their tax basis value. On a change in one of the two entries above the deferred tax liability / tax asset is also changed, which is accounted for in the income statement as a deferred tax.

Castellum has recorded completed company acquisitions as business combination acquisitions, which means that full nominal deferred tax on the difference between the real estate portfolio's consolidated book value and its tax basis value, has been considered.

Financial cost

Employee benefi ts

Income taxes

Current tax

Besides the deferred tax also current tax is recorded in the income statement, which is equivalent to the tax that the company must pay on the taxable income for the year, adjusted for possible current tax for previous periods.

Leases where all crucial risks and benefi ts associated with the ownership fall on the lessor, is classifi ed as operational leases. All existing rental leases related to Castellum's investment properties are, from an accounting perspective seen as operational leases. How these leases are accounted for can be read about in the accounting principles for income and in note 3.

There are also a small number of leases of insignifi cant value, where Castellum is the lessee. These leases are also accounted for as operational leases and concerns mainly private cars. Payments made during the period of the leases are recorded as a cost, in the income statement, linear over the leasing period.

Investments properties

Leases

An investment property is a property held for the purpose of generating rental income, capital appreciation or both rather than for the use in a company's operations for production or supply of goods or services or for administrative purposes and sales in daily operations. All of Castellum's owned or by ground rent used properties, are considered to be investment properties. If the Group starts an investment on an existing investment property for future use as an investment property, the property continues to be recorded as an investment property.

Valuation

Investment properties, which at the time of acquisition are recorded at acquisition cost including expenses directly related to the acquisition and with consideration taken to nominal deferred tax, have been recorded at fair value with changes in value in the income statement. Fair value has been calculated using an internal valuation model described in note 11. The note also describes the assumptions made as basis for the valuation. The valuation model is based on a value determined on an earnings basis by calculating the net present value of future cash fl ows with a differentiated required yield for each property depending on such factors as location, intended use, condition and standard. In order to provide further assurance of the valuation part of the portfolio has been valued externally. If there are indications of changes in value during the year, revaluation is made in the interim reports.

Unrealized changes in value

Unrealized changes in value are recorded in the income statement. Changes in value are calculated based on the valuation at the end of the fi nancial year compared to the valuation previous year, or the acquisition value if the property has been acquired during the year, with addition of capitalized subsequent expenditures during the period. For properties sold during the year, unrealized changes in value are recorded and calculated based on the valuation at the latest interim report prior to the sale compared to the valuation at the end of previous year, with addition of capitalized subsequent expenditures during the period.

Subsequent expenditures

Subsequent expenditures that increase the valuation of the property and can be calculated in a reliable way are capitalized. Costs for repairs and maintenance are accounted for in the income statement in the period they occur. In the case of major new construction and refurbishment, interest costs during the construction period are capitalized.

Acquisitions och sales

On acquisition or sale of properties or companies, the transaction is entered as of the date of the contract unless there exist special conditions in the purchasing contract.

Tangible fi xed assets

Tangible fi xed assets are made up of equipments, which have been recorded at acquisition value with deduction of accumulated depreciation according to plan and any write-downs made. The acquisition value includes the purchase price and costs directly related to the asset in order to bring it to its place and state to use according to the purpose of the acquisition. Depreciation on equipments is based on historical acquisition values after possible deduction of subsequent write-downs. The residual value is assessed to be non-existent. Depreciation of assets acquired during the year is calculated with reference to the date of acquisition. Depreciation is linear, which means equal depreciation during the period of use, which is normally fi ve years, except for computers which are expected to have a three year period of use.

Financial instruments Financial instruments which are recorded in the balance sheet includes assets such as cash and bank, lease receivables, other receivables, long-term receivables and interest rate derivatives, and liabilities such as accounts payable, other liabilities and loans. Financial instruments are initially recorded at acquisition value equivalent to fair value, with addition of transaction costs, except for the category fi nancial instruments which are recorded at fair value through income statement, without transaction costs. Following the initial recognition the accounting is based on the classifi cation made according to the following. Financial transactions such as cash received or paid on interests and loans are recorded on the settlement day of the bank holding the account, while other payments are recorded on the accounting date of the bank holding the account.

Cash and bank

Cash and bank consist of the bank balance at the end of the accounting period and are recorded at nominal value.

Receivables

Financial assets which are not interest rate derivatives, that has fi xed or predictable payments and that are not quoted on an active market, are recorded as receivables. In the Group there are rent receivables and other receivables which are mainly dormant VAT regarding investments. Receivables have, after individual valuation, been recorded at the amount at which they are expected to be received, which means that they are recorded at acquisition value with reservation for receivables which are uncertain. Reservation for uncertain receivables is made when an objective risk assessments gives at hand that the Group will not receive the entire receivable. There are no receivables in foreign currency. Receivables in the parent company consist only of receivables from the subsidiaries, which are recorded at acquisition value.

Liabilities

Liabilities refer to loans and operating liabilities such as accounts payable. The majority of Castellum's credit agreements are long term. In cases where short-term loans are drawn under long-term credit agreements, the loans are considered as long-term. The loans are recorded on the settlement date at acquisition value. Deferred unpaid interest is recorded in accrued expenses. There are no liabilities in foreign currency. A liability is recorded when the counterparty has performed services and a legal obligation to pay exist, even if the invoice has not yet been received. Accounts payable are recorded when the invoice is received. A liability is removed from the balance sheet when the obligation is fulfi lled or cleared in an other way. Accounts payable and other operative liabilities with short duration are recorded at nominal value.

Interest rate derivatives

Interest rate derivatives are fi nancial assets or liabilities which are valued at fair value with changes in value recorded in the income statement. In order to manage the exposure to fl uctuations in the market interest rate according to the fi nancial policy, Castellum has entered into interest rate derivative agreements. When using interest rate derivatives changes in value may occur partly due to changes in market interest rates and partly due to the time factor. Interest rate derivatives are initially recorded in the balance sheet on the settlement day at acquisition value and are thereafter valued at fair value with changes in value in the income statement. In order to calculate the fair value market interest rates for each fi xed interest term as listed on the balance sheet date and generally accepted methods for calculations are used. Interest rate derivatives are valued by calculating the net present value by discounting future cash fl ows, instruments containing some sort of option are valued at the current repurchase price which may be received from respective counterparty. Realized changes in value refer to redeemed interest rate derivatives and is the difference between the price at the time of redemption and the recorded book value according to the latest interim report. Unrealized changes in value refer to the changes in value during the fi nancial year for the interest rate derivatives that Castellum held at the end of the fi nancial year. Changes in value are calculated based on the valuation at the end of the fi nancial year compared to the valuation previous year, or the acquisition value if the interest rate derivative agreements have been entered into during the year. For interest rate derivatives that have been redeemed an unrealized change in value is recorded and calculated based on the valuation at the latest interim report prior to the redemption, compared with the valuation at the end of previous year. Payments made under these agreements are accounted for in the period which they refer to

Repurchased shares

Repurchased shares reduce the shareholders' equity with the paid purchase price including any transaction costs.

Dividend

Dividend is accounted for as a deduction of shareholders´equity, after the annual general meeting´s decision. The recipient accounts for an anticipated dividend as a fi nanical income.

Earnings after tax, per share

Calculation of earnings after tax per share is based on the Groups net income for the year attributable to the shareholders of the parent company, and on the weighted average number of outstanding shares during the year.

The Group's operations are organized, managed and reported primarily by geographical region and secondly by type of property. Segments are consolidated according to the same principles as the Group.

Income and costs reported for each segment are actual costs. No distribution of joint costs has been made between the regions. This is also true for assets and liabilities reported in the note segment reporting below.

Shareholders´ equity

Defi nition of segments

Cash fl ow statement

Differences in accounting principles between the Group and the parent company

New IFRS and interpretations The cash fl ow statement has been prepared according to the indirect method, whereby net profi t or loss is adjusted for the effects of transactions of a non-cash fl ow nature during the period as well as income or costs associated with the cash fl ow from investment or fi nancing activities.

The annual report of the parent company has been prepared according to the Annual Accounts Act and by applying of the Swedish Financial Reporting Board's recommendation RFR 2:1 (Accounting for legal entities). RFR 2:1 states that a legal entity shall apply the same IFRS/IAS that is applied in the consolidated fi nancial statements, with exceptions for and additions of rules and laws mainly according to the Annual Accounts Act, and with consideration to the relation between accounting and taxation. The differences in accounting principles between the Group and the parent company are mentioned below.

Shares in subsidiaries

Shareholdings in subsidiaries are accounted for in the parent company according to the method of acquisition value. The book value is regularly compared to subsidiaries' group equity. When the book value is lower than the subsidiaries' group value, a write-down is made in the income statement. In the case when a previous write-down no longer can be justifi ed, it will be reversed.

Group contribution and shareholders' contribution

Group contributions and shareholders' contribution are accounted for according to a statement from the Swedish Financial Reporting Board. Group contributions are recorded according to its fi nancial consequence. Group contributions submitted and received where the purpose is to minimize the total tax of the Group, and any tax effects there of, are recorded directly in the balance sheet as a deduction or an increase of non-restricted equity. Group contributions received which are considered equal to dividend are recorded as a fi nancial income in the income statement of the recipient and as a deduction of non-restricted equity by the contributor. Shareholders' contributions are recorded as an increase of shares in subsidiaries by the contributor and as an increase of non-restricted equity by the recipient.

New standards and interpretations, which have been adopted by the EU and will come into effect from the fi nancial year 2009 and later, have not been applied in these fi nancial reports.

IFRS 8 Operating segments

The standard will come into effect as of 1 January 2009 and applies to a fi nancial year starting on the same date. The standard covers the segmentation of the companies' operations. According to the standard the company shall have the internal reporting structure as a starting point in deciding reportable segments. Castellum's preliminary assessment is that this will have no major impact on the Group's segment reporting.

IAS 1 Presentation of Financial Statements

The standard, that is revised, will come into effect as of 1 january, 2009 and applies to a fi nancial year starting on the same date. The revision means e.g., that the company shall separate transactions with the owners from other transactions that can give changes in the value of the companies' assets and debts. This means that the report on changes in equity shall only consist of transactions with the owners and the fi nal line in the income statement. Today's income statement shall therefore be extended and complemented with accounted income and expenses that is today accounted for directly in equity, as an alternative those items shall be accounted for in a separate report placed direct after the income statement. The revised IAS 1 means no great changes for Castellum.

IAS 23 Borrowing costs

The standard will come into effect as of 1 January, 2009 and applies to a fi nancial year starting on the same date. The standard covers the accounting of borrowing costs that are directly attributable to acquisition, construction or production of an asset that takes time to complete for designated use or sale. The standard does no longer provide the option between treating such borrowing costs as expenses or capitalize them, they must be capitalized. For assets that are reported at fair value, companies can choose to not follow this standard. Castellum has chosen to apply IAS 23 on investment properties and capitalizes such costs in the group today, hence the changes will have no effect.

Changes in existing standards

A couple of lesser changes have been made in existing standards, which will come into effect as of 1 January 2009. Among other things the classifi cation of a property that is being constructed or developed for future use as an investment property has been changed in IAS 40 Investment Property. Such properties have previously been classifi ed as tangible fi xed assets and therefore been accounted for at acquisition value until they are completed. The change in IAS 40 means that also such properties shall be classifi ed as investment properties during the construction time and therefore be treated according to the same principles as other investment properties. This change and others will have no signifi cant effect on Castellum.

Segment Reporting

Geographic market (primary segment) Greater Gothenburg Öresund Region Greater Stockholm Mälardalen Eastern Götaland The Castellum Group 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 Rental income, external 806 746 539 498 478 432 367 296 311 287 2 501 2 259 Property costs – 232 – 221 – 173 – 160 – 172 – 162 – 135 – 114 – 119 – 114 – 831 – 771 Net operating income 574 525 366 338 306 270 232 182 192 173 1 670 1 488 Changes in value, property – 375 331 – 662 334 109 215 – 150 22 – 184 18 – 1 262 920 Net income 199 856 –296 672 415 485 82 204 8 191 408 2 408 Unallocated items Central admin.exp. – 71 – 69 Net fi nancial items – 626 – 495 Interest rate derivatives, changes in value – 1 010 99 Current tax – 14 – 22 Deferred tax 650 – 434 Net income for the year – 663 1 487 Investment properties 9 603 9 293 6 536 6 906 5 672 5 266 4 185 3 278 3 169 2 947 29 165 27 717 Equipment 6 5 1 2 2 1 2 2 4 3 15 13 Current assets 66 42 58 17 59 18 29 23 12 7 224 107 Cash and bank 8 6 0 0 0 0 1 1 0 0 9 7 Unallocated items Derivatives – 44 Current assets – 9 3 Total assets 29 404 27 891 Unallocated items Shareholders' equity 10 049 11 204 Long-term interest-bearing liab. 14 607 12 582 Deferred tax liability 2 785 3 322 Interest rate derivates 966 – Non-interest-bearing liab. 241 116 Non-interest-bearing liab. 272 224 120 151 165 113 132 105 67 74 756 667 Total shareholders' equity and liabilities 29 404 27 891 Investments 685 864 292 374 296 280 1 086 401 379 679 2 738 2 598 Sales – 5 – – – – 28 29 – 5 28 39 Cash fl ow from operating activities* 598 601 294 408 317 281 253 202 180 187 1 642 1 679 Unallocated cash fl ow – 564 – 573

*) Cash fl ow from operating activities excluding central administrative expenses, net fi nancial items and tax paid.

Operating segment				Warehouse/	Development		Undeveloped		The Castellum
(secondary segment)	Offi ce/Retail			Industrial	projects		land		Group
	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007
Rental income, external	1 626	1 502	837	746	38	11	–	–	2 501	2 259
Investment properties	18 688	18 181	9 042	8 425	1 059	710	376	401	29 165	27 717
Investments	1 609	1 464	856	897	239	202	34	35	2 738	2 598
Sales	–	31	–	8	28	–	–	0	28	39

The Group's primary segment is the following geographical areas; Greater Gothenburg (incl. Borås, Halmstad, Alingsås), Öresund Region (Malmö, Lund, Helsingborg), Greater Stockholm, Mälardalen (Örebro, Västerås, Uppsala) and Eastern Götaland (Jönköping, Linköping, Värnamo and Växjö). The Group manages only commercial properties.

Note 2

Rental Income Note 3

Rental value

Group rental income was SEKm 2,501 (2,259). The improvement is chiefl y an effect of investments made, but also higher rental levels and lower vacancies. Rental income consists of the rental value with deduction of the value of vacant premises during the year.

Rental value refers to the rental income received and the estimated market rent of unlet premises. The rental value also includes supplementary charges for the customer, such as heating, real estate tax and an index supplement.

Rental value SEK/sq.m. for the different regions and types of properties are shown in the table below. Rental levels have increased by 3% (3%) compared with previous year.

Rental value	Offi ce/Retail		Warehouse/Industrial			Total
SEK/sq.m.	2008	2007	2008	2007	2008	2007
Greater Gothenburg	1 202	1 153	675	659	885	856
Öresund Region	1 306	1 287	652	637	989	971
Greater Stockholm	1 324	1 267	859	810	1 144	1 090
Mälardalen	973	928	662	605	859	807
Eastern Götaland	922	915	463	460	745	748
Total	1 151	1 121	666	647	921	896

Renegotiation

Commercial leases, for which rents are paid quarterly in advance, are signed for a certain period of time, which means that a change in the market rents do not have an immediate effect on rental income. Rental income can only be changed when the lease in question is due for renegotiation.

Commercial leases include a so-called index clause, which provides for an upward adjustment of the rent, corresponding to a certain percentage of the infl ation during the previous year or a minimum upward adjustment.

The lease maturity structure for Castellum's portfolio is shown in the table below, where lease value refers to annual value. An explanation of the relatively small portion in 2009 is that a majority of the leases maturing in 2009 were already renegotiated in 2008 due to the period of notice. The most common terms for a new lease is currently 3-5 years with a nine months notice. The average remaining lease duration in the portfolio is 3.3 years (3.2).

Lease maturity structure	No. of leases	Lease value, SEKm	Percentage of value
Commercial, term
2009	1 191	290	12%
2010	1 289	558	22%
2011	1 003	570	22%
2012	638	466	18%
2013	159	225	9%
2014+	154	438	17%
Total commercial	4 434	2 547	100%
Residential	347	25
Parking spaces and other	2 516	49
Total	7 297	2 621

Economic occupancy rate Castellum's average economic occupancy rate during 2008 was 89.7% (87.9%). The economic occupancy rate for warehouse and industrial properties amounted to 88.9% (86.5%) and for offi ce and retail properties 90.2% (88.6%). The total annual rental value for vacant premises during the year amounts to approx. SEKm 323.

The gross leasing (i.e. the annual value of total leasing) during the year was SEKm 305 (315), of which SEKm 48 (81) were leasing on new construction, extensions and refurbishments. Terminations amounted to SEKm 221 (180), of which bankruptcies was SEKm 20 (5), hence net leasing for the year were SEKm 84 (135). The share of terminations for renegotiation has been limited. The time difference between reported net leasing and the effect in income thereof is estimated to between 9-18 months.

Economic	Offi ce/Retail		Warehouse/Industrial		Total
occupancy rate	2008	2007	2008 2007		2008	2007
Greater Gothenburg	94.9%	92.6%	89.8%	88.7%	92.6%	90.8%
Öresund Region	89.4%	91.1%	85.2%	80.6%	88.1%	87.7%
Greater Stockholm	82.4%	79.8%	88.0%	84.7%	84.0%	81.2%
Mälardalen	92.6%	88.8%	94.1%	90.4%	93.0%	89.3%
Eastern Götaland	91.8%	91.0%	87.9%	88.3%	90.8%	90.4%
Total	90.2%	88.6%	88.9%	86.5%	89.7%	87.9%

Castellum's lease portfolio has a good risk exposure. The Group has just over 4,000 commercial leases and approximately 350 residential leases and their distribution in terms of size can be seen in the table below. The single largest lease as well as the single largest customer accounts for only approx. 1% of the Group's total rental income. The distribution of commercial leases across various business sectors is also good, as shown in the following table.

Lease size, SEKm	No. of leases	Percentage	Lease value, SEKm	Percentage
Commercial
< 0.25	2 496	34%	225	8%
0.25-0.5	785	11%	281	11%
0.5-1.0	565	8%	400	15%
1.0-3.0	443	6%	734	28%
> 3.0	145	2%	907	35%
Total commercial	4 434	61%	2 547	97%
Residential	347	5%	25	1%
Parking spaces and other	2 516	34%	49	2%
Total	7 297	100%	2 621	100%

Commercial leases distributed by sectors	No. of	Lease value, SEKm
(GICS-code)	leases		Percentage
Energy (10)	73	22	1%
Materials (15)	93	92	4%
Capital goods (2010)	618	409	16%
Commercial Services & Supplies (2020)	1 143	332	13%
Transportation (2030)	159	132	5%
Retailing (2550)	636	401	16%
Other Consumer Durables and Services (2510-2540)	507	338	13%
Consumer Staples (30)	112	110	4%
Health Care (35)	189	119	5%
Finance and Real Estate (40)	136	85	3%
Software and Services (4510)	267	171	7%
Technology Hardware and Equipment (4520)	148	106	4%
Telecommunication Services (50)	96	23	1%
Utilities (55)	19	6	0%
Public sector etc.	238	201	8%
Total	4 434	2 547	100%

The table below shows the spread of future rental income for existing lease agreements. The increase is chiefl y explained by a larger real estate portfolio, but also in part due to a higher occupancy rate.

	Group		Parent Company
Future rental income for existing leases	2008	2007	2008	2007
Contracted rental income year 1
Commercial leases	2 561	2 267	–	–
Residential	8	8	–	–
Contracted rental income between 2 and 5 years	5 126	4 479	–	–
Contracted rental income after more than 5 years	1 230	1 080	–	–
Total	8 925	7 834	–	–

The parent company consists only of group-wide functions and the turnover mainly consists of intra-group services.

Risk exposure

CASTELLUM ANNUAL REPORT 2008 87

Property Costs Note 4

Property costs in 2008 was SEKm 831 (771), equivalent to SEK 268/sq.m. (262). This amount includes both direct property costs such as costs of operation, maintenance, ground rent and real estate tax, and indirect costs such as leasing and property management.

Operating expenses include electricity, heating, water, facilities management, cleaning, insurance, rent losses and property-specifi c marketing costs. Most of the operating expenses are passed on to the customers as supplements to the rent. For warehouse and industrial properties, however, customers are in most cases directly responsible for most of the operating costs. Operating expenses in 2008 were SEKm 455 (414), equivalent to SEK 146/sq.m. (138). Operating expenses, which are considered to be at a normal level for the business, are dependent on the weather, which means that they vary between both different years and seasons of the year. Operating expenses includes rent losses of SEKm 12 (9). Operating expenses

Maintenance costs consist of ongoing measures to maintain the property's standard and technical systems. For 2008 maintenance costs were SEKm 96 (96), equivalent to SEK 31/sq.m. (34). Maintenance

Ground rent for the year 2008 was SEKm 21 (20), and mainly related to Greater Stockholm. Ground rent is the charge paid annually to the municipality by the owner of a building on land owned by the municipality. The ground rent contracts are spread over a period of time and are in most cases renegotiated at intervals of 10 to 20 years. At the end of year 2008 Castellum had around 50 properties with ground rent. Existing ground rent contracts mature relatively evenly over the next 15-year period. Ground rent

Group real estate tax was SEKm 115 (110), equivalent to SEK 37/sq.m. (38). Real estate tax is a state tax based on the property's tax assessment value. The greater part of the real estate tax is passed on to the customer. The tax rate for 2008 was 1.0% of the tax assessment value for offi ce/retail properties and 0.5% for warehouse/ industrial. Real estate tax

The Group's leasing and property management costs for 2008 were SEKm 144 (131), equivalent to SEK 47/ sq.m. (45). Leasing and property management refers to the indirect costs of ongoing property management, comprising the costs of leasing operations, rent negotiation, lease administration, rent debiting, collecting rent and accounting as well as project administration costs and depreciation on equipment in subsidiaries. Of the costs SEKm 91 (69) refers to employee benefi ts and SEKm 5 (5) depreciation on equipment. Leasing and management

Summmary

property

Property costs per square metre, distributed by property category and type of cost are shown below.

Property costs		Offi ce/Retail Warehouse/Industrial			Total
SEK/sq.m.	2008	2007	2008	2007	2008	2007
Operating expenses	187	174	100	99	146	138
Maintenance	40	44	21	22	31	34
Ground rent	8	8	5	5	7	7
Real estate tax	57	58	16	16	37	38
Direct property costs	292	284	142	142	221	217
Leasing and property management (indirect)					47	45
Total	292	284	142	142	268	262

Note 5

Central Administrative Expenses

Central administrative expenses include the costs of portfolio management, company administration and the costs of maintaining the Stock Exchange listing. This involves all of the costs of Castellum AB, comprising group management, treasury department, IT, personnel, investor relations, annual report, audit, and depreciation on equipment etc. At the subsidiary level, the fi gures include, costs for the MD and fi nancial manager as well as costs of preparing the annual report, audit etc. Of the costs, excl. the incentive plan described below, SEKm 38 (34) refers to employee benefi ts and SEKm 0 (1) is depreciation on equipment.

Central administrative expenses also include costs relating to a profi t and share price-related incentive plan for senior management and other senior executives, to the order of SEKm 8 (7).

Remuneration to auditors

Remuneration to auditors during the year were SEK 3,896,000 (3,977,000), of which SEK 2,612,000 (2,117,000) related to auditing assignments and the remainder to consulting. The corresponding amounts for the parent company were SEK 979,000 (1,058,000) and SEK 708,000 (682,000) respectively. Of the Group's total remuneration of SEK 3,896,000 (3,977,000), SEK 3,637,000 (3,851,000) refers to KPMG and the remainder to Ernst & Young.

	Group		Parent Company
Financial Income	2008	2007	2008	2007	Note 6
Interest income	1	3	0	0
Interest subsidies	0	0	–	–
Anticipated dividend, subsidiaries	–	–	410	–
Group contribution, subsidiaries	–	–	–	550
Interest income, subsidiaries	–	–	672	522
Other fi nancial income	3	–	–	0
Total	4	3	1 082	1 072

	Group			Parent Company
Financial Costs	2008	2007	2008	2007	Note 7
Interest costs	630	498	637	498
Interest costs, subsidiaries	–	–	28	15
Other fi nancial costs	–	0	–	0
Total	630	498	665	513

Net fi nancial items were SEKm -626 (-495). During the year, interest costs of SEKm 22 (13) were capitalized in connection with investments in the real estate portfolio. The increase in net fi nancial items of SEKm 131 is partly due to a larger real estate portfolio and partly due to that the average interest rate level during the period has increased 0.5%-units to 4.7% (4.2%), giving higher costs in net fi nancial items of approx. SEKm 60. When capitalizing interest costs the average rental level has been used. For further information about the fi nancial risk management and policy, see note 16, Long-term interest-bearing liabilities.

Changes In Value

The transaction volume on the Swedish real estate market was SEKm 130,000 during the year compared to SEKm 140,000 in 2007. Adjusted for specifi c transactions such as Vasakronan and transactions for structural purposes the volume has more than halved. The decreased volume are mainly due to the credit crunch following the turbulence on the international credit market.

Changes in both supply and demand have led to further increased difference between sellers' and buyers' views on prices. Even though property values are diffi cult to assess in a market with low turnover, Castellum's apprehension is that required yields have increased during the year, with a price reduction as a result.

The total change in value of Castellum's portfolio during the year amounted to SEKm –1,262 (920). Out of this fi gure approx. SEKm –1,400, can be assigned to an increase in the required yield by 0.4%-units during the year. The rest can be assigned to investments made and slightly improved estimated future cash fl ow.

This year's depreciation of Castellum's portfolio has been approx. 4%, where the largest depreciations have been seen for central retail properties and in the Öresund Region. The net increase in value, including this year's change, during the last fi ve year period has been about 2% per year, which roughly corresponds to the infl ation rate.

It should be noted that, since property valuations include an uncertainty range of normally 5-10%, also the changes in value include a not insignifi cant uncertainty.

Castellum uses interest rate derivatives in order to achieve the desired interest rate maturity structure. If the agreed interest rate varies from the market interest rate there is a theoretical surplus or negative value in the interest rate derivatives, where the non cash fl ow effecting changes in value are reported in the income statement. As an effect of dramatically falling long term interest rates, mainly during the fourth quarter, the value has changed with SEKm –1,010 (99) and the value was SEKm –966 (44) at the end of the period.

Tax Costs

The income tax in Sweden for limited liability companies is 28% for 2008, but will be 26.3% from 2009. In the income statement, the income tax is recorded as two entries, current tax and deferred tax. For 2008 current tax has been calculated based on a nominal tax rate of 28%, while deferred tax has been calculated based on the lower tax rate 26.3%. Current tax is based on the taxable income for the year, which is lower than the recorded net income for the year. This is mainly an effect of the possibility to:

Note 8

Investments properties

Interst rate derivatives • use tax depreciation on buildings of 2-5%, which is not made in the accounts,

• make tax deductions for certain refurbishements in the properties, which are capitalized in the accounts, • utilize existing tax loss carry forwards.

The deferred tax is a provision for the tax which will be paid in the future when the properties are sold, and the depreciation for tax purposes and the capitalized investments deducted for tax purposes are reversed.

As shown in the table below, there is in principle no taxable income for 2008, because Castellum uses the above mentioned depreciation for tax purposes, makes tax deductions on some investments and utilizes existing tax loss carry forwards. The current paid tax that occur is because a few subsidiaries are not allowed to make fi scal group contributions.

	Basis	Basis
Tax calculation for the Group 31-12-2008	current tax	deferred tax
Income from property management	973	–
Deductions for tax purposes
depreciation	– 532	532
refurbishment	– 295	295
Other tax allowances	– 27	34
Taxable income from property management	119	861
Gain on properties sold	0	– 17
Changes in value on properties	–	– 1 262
Changes in value on derivates	– 966	– 44
Taxable income for the year	– 847	– 462
Tax loss carry forwards, opening balance	– 539	539
Deductions for tax purposes
write-downs on shares	– 319	–
refurbishments, previous year	– 73	73
Tax loss carry forwards, closing balance	1 830	– 1 830
Taxable income for the year	52	– 1 680
Of which 28% current/deferred tax	– 14	470
Revaluation deferred tax 26,3%	–	180
Tax according to the income statement	– 14	650

The total tax may be different from nominal tax in those cases where there are recorded income / costs which are not taxable / tax deductible or as an effect of other tax adjustments. The total tax cost shown in Castellum's income statement 2008 is less than nominal tax. This depends on tax deductible write-downs on shares in subsidiaries and on revaluation of tax loss carry forwards due to reduced nominal tax rate from 28% to 26.3%. The effective tax on income from property management, without consideration taken to the use of tax loss carry forwards, can be calculated to 3%. As shown in the table above the remaining tax loss carry forward are calculated to SEKm 1,830.

For the parent company deferred tax of SEKm 32 (14) has been recorded directly in equity since the underlying transaction has been recorded in that way.

		Group		Parent Company
Tax cost	2008	2007	2008	2007
Income before tax	– 1 299	1 943	– 633	617
Tax according to the current tax rate, 28%	364	– 544	177	– 173
Tax effects due to:
non-taxable group contributions etc.	–	–	–	154
non-taxable dividend	–	–	115	–
write-downs on shares in subsidiaries	89	55	–	–
revaluation of deferred tax 26.3%	180	–	– 16	–
other tax adjustments	3	33	–	–
Disclosed tax cost	636	– 456	276	– 19

				Note 10
2008	2007	2008	2007
				Number of
79	70	6	5	employees
	226	Group 208	14	Parent Company 12

During 2008, the parent company had 7 (7) board members, of which 2 (2) are women, while the total number of board members in the Group's subsidiaries were 21 (21), of which 4 (3) are women. The Group and the parent company alike have 10 (10) senior executives, of which 2 (2) are women. The total number of senior executives in the subsidiaries' managerial bodies and the senior executives of the Group were 45 (44), of which 11 (10) are women.

	Group		Parent Company
	2008	2007	2008	2007
Salaries, remuneration and benefi ts
Chairman of the Board	0.4	0.4	0.4	0.4
Other Board members (SEK 215 000 each)	1.3	1.2	1.3	1.2
Chief Executive Offi cer
Fixed salary	2.8	2.4	2.8	2.4
Variable remuneration	1.2	1.1	1.2	1.1
Benefi ts	0.0	0.0	0.0	0.0
Other senior executives (Group:9, Parent Company:3)
Fixed salary	10.7	9.3	3.8	3.1
Variable remuneration	4.5	4.0	1.7	1.1
Benefi ts	0.7	0.6	0.2	0.1
Other employees	82.9	74.2	7.4	6.9
Total	104.5	93.2	18.8	16.3
Contractural pension costs
Chief Executive Offi cer	0.7	0.7	0.7	0.7
Other senior executives (Group:9, Parent Company:3)	3.0	2.8	0.9	0.8
Other employees	10.4	9.2	0.7	0.6
Total	14.1	12.7	2.3	2.1
Statutory social costs incl. special employer's
contributions
Chairman of the Board	0.1	0.1	0.1	0.1
Other Board members	0.4	0.4	0.4	0.4
Chief Executive Offi cer	1.5	1.3	1.5	1.3
Other senior executives (Group:9, Parent Company:3)	5.8	5.1	2.1	1.6
Other employees	29.8	28.8	2.7	2.4
Total	37.6	35.7	6.8	5.8
Total	156.2	141.6	27.9	24.2

The executive management includes the Chief Executive Offi cer, the Deputy Chief Executive Offi cer with responsibility for business development, the Financial Director and Finance Director of Castellum AB and the six Managing Directors of the subsidiaries.

Remuneration and benefi ts

Remuneration and benefi ts for the executive management is decided by the remuneration committee. The remuneration comprises a fi xed salary and a variable remuneration according to an incentive plan described below. The variable remuneration can, during the three-year period of the plan, amount to a maximum of three years salary.

The executive management, ten persons in total, have an incentive plan that comprises two parts:

• One profi t-based part mainly based on the trend of income from property management and, if the targets are reached, is paid as salary annually after the fi nancial statements have been adopted. The profi t-based part can total a maximum of a half-year salary per year, for Castellum equivalent to a cost of SEKm 10, including social costs. The plan will continue up to and including 2010,
• One share price-based part based on the total return on the Castellum share during a three-year period, both in nominal fi gures and compared with the real estate index. Any bonus due is paid as salary after the measurement period of June 2008 – May 2011. The share price-based part can during the three-year period total a maximum of one and a half years salary, for Castellum equivalent to a cost of SEKm 29 including social costs.

Executive management

Salaries, remuneration and benefi ts Executives in receipt of a variable remuneration according to the incentive plan, must to acquire Castellum shares for at least half of the amount of the bonus due after tax. The bonus paid does not affect pension contributions.

Pensions

Persons in the Executive management have defi ned contribution pensions with no other obligations for the company than to pay an annual premium during the time of employment. This implies that these persons, after completed employment, have the right to decide on their own, the time-frame during which the defi ned payments and subsequent return will be received as pension. The retirement age for the CEO is 65 years. For other members of the executive management the retirement age is also 65 years.

Serverance payment

If notice of dismissal is given by the company the CEO is entitled to two years salary, with deduction of salary or remuneration received from other employment or activity.

Other members of the executive management are entitled to, if notice of dismissal is given by the company, a maximum of one year salary with deduction of salary or remuneration received from other employment or activity.

Pensions for other employees

Other employees in Castellum have defi ned contribution pensions, with no other obligations for the company than to pay an annual premium during the time of employment. This implies that these persons, after completed employment, have the right to decide on their own, the time-frame during which the defi ned payments and subsequent return will be received as pension. However, there is an exception for about 25 employees within the Castellum Group that have defi ned ITP-plans instead with regular payments to Alecta. Insurance premiums paid to Alecta during the year amounted to SEKm 1 (1). The surplus in Alecta may be distributed to the insurance holder and/or the insured. Alecta's surplus in the collective consolidation level as of December had not been made offi cial at the time of signing of this annual report and can therefore not be reported. Alecta's latest offi cial consolidation level was as of September 2008 126.0% (December 2007: 152.0%). The collective consolidation level is made up of the market value of Alecta's assets as a percentage of the insurance obligations calculated according to Alecta's assumptions for calculating the insurance, which do not comply with IAS 19.

Absence due to illness

Absence due to illness for the year was 2% (2%), of which 0%-unit (1) are long-term sick leave. The absence due to illness for men and women were 1% (1%) and 2% (4%) respectively. The absence due to illness were 1% (1%) for the age group 29 years and younger, 2% (2%) for the age group 30-49 years and 1% (2%) for the age group 50 years or older. Absence due to illness for the parent company was 0% (1%).

			Group	Parent Company
Note 11	Investment Properties	2008	2007	2008	2007
	Schedule of the changes during the year
	Opening balance	27 717	24 238	–	–
	New constructions, extensions and refurbishment	1 526	1 084	–	–
	of which capitalized interest costs	22	13	–	–
	Acquisitions	1 212	1 514	–	–
	Sales	– 28	– 38
	Unrealized changes in value	– 1 262	919	–	–
	Closing balance	29 165	27 717	–	–
	Schedule of tax assessment value
	Buildings	12 478	11 963	–	–
	Land	3 152	3 069	–	–
	Total tax assessment value	15 630	15 032	–	–
	Rental income from investment properties	2 501	2 259	–	–
	Property costs for investment properties	831	771	–	–
Investments during the year	During 2008, Castellum made investments totalling SEKm 2,738 (2,598), of which SEKm 1,212 (1,514) were acquisitions and SEKm 1,526 (1,084) new construction, extensions and refurbishment. Acquisitions during

acquisitions and SEKm 1,526 (1,084) new construction, extensions and refurbishment. Acquisitions during the year refer to 39 properties of which a great part has been company acquisitions. The Group acquisition value of SEKm 1,212 comprises partly a cash fl ow acquisition value of SEKm 1,096 and partly a deferred tax liability of SEKm 116. The single largest company acquisition was 2% of Castellum's total assets. If the properties owned by Castellum at the end of the year, would have been owned during the entire year, the net operating income can be calculated to SEKm 1,746.

Castellum has no signifi cant obligations to acquire or sell any investment property. However, Castellum is obligated to complete ongoing investments of a further SEKm 800 in addition to what is accounted for in the balance sheet.

	of which remain
Ongoing investments	Investment, SEKm	ing, SEKm	To be completed
Betongblandaren 10, Stockholm	130	101	Quarter 4, 2009
Visionen 3, Jönköping	115	107	Quarter 3, 2009
Boländerna 28:3 och 30:2, Uppsala	96	96	Quarter 1, 2010
Visiret 2, Huddinge	95	61	Quarter 4, 2009
Visiret 2, Huddinge	60	5	Quarter 1, 2009

According to accepted theory, the value of an asset consists of the net present value of the future cash fl ows that the asset is expected to generate. This section aims to describe and illustrate Castellum's cash fl owbased model for calculation of the value of the real estate portfolio. The value of the real estate portfolio is calculated in this model as the total present value of net operating income minus remaining investments on ongoing projects, during the next nine years and the present value of the estimated residual value in year ten. The residual value in year ten consists of the total present value of net operating income during the remaining economic life span. The estimated market value of undeveloped land is added to this.

The required yield and the assumption regarding future real growth are of crucial importance for the calculated value of the real estate portfolio, as they are the most important value-driving factors in the valuation model. The required yield is the weighted cost of borrowed capital and equity. The cost of borrowed capital is based on the market interest rate for loans. The cost of equity is based on a "risk-free interest rate" equivalent to the long-term government bond rate with the addition of a "risk premium". The risk premium is unique to each investment and depends on the investor's perception of future risk and potential.

To illustrate the model, the following example is provided. It should be noted that assumptions regarding cash fl ow growth and other assumptions included in the model are only intended to illustrate the model. The example should thus not be regarded as a forecast of the company's expected earnings.

Assumptions in the example:

• The economic occupancy rate is assumed to increase in order to reach a long-term level of 95% in the year 2013.
• Net operating income for 2008 is based on the result for the investment properties, with an assumed cost of SEK 30/sq.m. for pure property administration.
• Growth in rental value and property costs has been assumed to 1% per year during the calculation period.
• The average economic life of the real estate portfolio has been assumed to be 50 years.
• Projects and undeveloped land have an assumed value SEKm 1,435.
• The required yield is calculated according to the following assumptions:

		Required yield Percentage of capital	Weighted required yield
Equity	7.0% - 20.5%	30%	2.1% - 6.1%
Borrowed capital	5.5%	70%	3.9%
Weighted required yield		100%	6.0% - 10.0%

Example - calculation of the value of the real estate portfolio

SEKm	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
Rental value	2 844	2 872	2 901	2 930	2 959	2 989	3 019	3 049	3 080	3 110	3 142
Rental income	2 552	2 585	2 640	2 710	2 782	2 840	2 868	2 897	2 926	2 955	2 984
Economic occupancy rate	89.7%	90%	91%	92%	94%	95%	95%	95%	95%	95%	95%
Property costs	-774	-782	-790	-797	-805	-813	-822	-830	-838	-847	-855
Net operating income=cash fl ow	1 778	1 803	1 850	1 913	1 977	2 027	2 046	2 067	2 088	2 108	2 129
Discounted cash fl ow, years 1-9	12 718				Discounted cash fl ow
Discounted cash fl ow, year 10	14 896				Discounted residual value						30 027
Assumed value, projects and land	1 435
Total property value	29 049

Castellum records the investment properties at fair value and has made an internal valuation of all properties as of December 31, 2008. The valuation was carried out in a uniform manner, and was based on a ten-year cash fl ow model, which was described in principle above. The internal valuation was based on an individual assessment for each property of both its future earnings capacity and its required yield. In assessing a property's future earnings capacity we took into account an assumed level of infl ation of 1.5% and potential changes

obligations

Signifi cant

Valuation model

Internal valuation

in rental levels from each contract's rent and expiry date compared with the estimated current market rent, as well as changes in occupancy rate and property costs. Included in property costs are operating expenses, maintenance, ground rent, real estate tax, and leasing and property administration. Possible premiums paid on portfolios have not been taken into account.

Assumptions of the required yield etc.

The required yield on equity is different for each property, and is based on assumptions regarding real interest rate, infl ation and risk premium. The risk premium is different for each property and can be divided into two parts - general risk and individual risk. The general risk makes up for the fact that a real estate investment is not as liquid as a bond, and that the asset is affected by the general economic situation. The individual risk is specifi c to each property, and comprises a weighted assessment of; the property's category, the town/city in which the property is located, the property's location within the town/city with reference to the property's category, if the property has the right design, is appropriate and makes effi cient use of space, the property's technical standard with regard to such criteria as the choice of materials, the quality of public installations, furnishing and equipment on the premises and apartments and the nature of the lease agreements, with regard to such issues as the length, size and number of agreements.

In order to calculate the required yield on total capital, an assumption has been made about the cost of borrowed capital of 5.5%. The required yield of borrowed capital comprises the real interest rate and infl ation. The loan to value ratio is assumed to be 55%-65%, depending on the property category.

The required yield on total capital is calculated by weighting the required yield on equity and the cost of borrowed capital depending on the capital structure. The required yield on total capital is used to discount the expected 10-year future cash fl ows, while the residual value is discounted by calculating the return on total capital minus growth which is set equal to the infl ation.

Assumptions per property category 31-12- 2008	Offi ce/Retail	Warehouse/Industrial
Real interest rate	3.0%	3.0%
Infl ation	1.5%	1.5%
Risk	5.6% -12.8%	7.5% - 14.2%
Return on equity	10.1% - 17.3%	12.0% - 18.7%
Interest rate	5.5%	5.5%
Loan to value ratio	65%	55%
Return on total capital	7.1% - 9.6%	8.4% - 11.4%
Required yield minus growth equal to infl ation	5.6% - 8.1%	6.9% - 9.9%

The assumptions that form the basis for Castellum's valuation are shown in the table below.

The required yield has compared to previous year, been raised with 0.4%-units, which resulted in a negative change in value of approximately SEKm 1.400. Together with effects of investments made and slightly improved estimated future cash fl ow, the net total change in value is SEKm –1.262 (920), equivalent to –4%.

The normalized yield for Castellum's real estate portfolio, excluding development projects and undeveloped land, can be calculated to 7.4% (7.0%). Contracted rental levels are considered to be in line with the market levels.

Normalized yield, SEKm	2008	2007
Net operating income, properties according to income statement	1 670	1 488
Reversed leasing and property administration	144	131
Net operating income, ongoing development projects	– 20	– 3
Properties acquired/completed as if they had been owned during
the whole year	77	55
Properties sold	– 1	– 1
Net operating income excl. leasing and property administration
for properties as if they had been owned during the whole
year, excl. projects and land	1 870	1 670
Adjusted for:
Index adjustments following year	82	51
Real occupancy rate, 94% at the lowest	190	215
Expected cost increase following year	– 14	– 9
Degree day adjustments to a normal year	– 7	– 8
Property administration, 30 SEK/sq.m.	– 92	– 88
Normalized net operating income	2 029	1 831
Valuation excl. projects and land	27 343	26 278
excl. building rights in offi ce/retail and warehouse/industrial	1 792	1 439
Normalized yield	7.4%	7.0%

Development projects and building rights

Projects in progress have been valued using the same principle, but with deductions for remaining investment. Sites with building rights and undeveloped land have been valued on the basis of an estimated market value per square metre on average approx. SEK 950 per sq.m. (1,000).

The value of the real estate portfolio

The internal valuation shows a fair value of SEKm 29,165 (27,717), which is a decrease in value of approx. –4% (3%). The table below shows the fair value distributed by property category and region.

Property value, SEKm		Warehouse/	Projects
31-12-2008	Offi ce/Retail	Industrial	and land	Total
Greater Gothenburg	5 253	4 251	99	9 603
Öresund Region	4 397	1 661	478	6 536
Greater Stockholm	3 712	1 424	536	5 672
Mälardalen	2 907	976	302	4 185
Eastern Götaland	2 419	730	20	3 169
Total	18 688	9 042	1 435	29 165

In order to provide further assurance and validation of the valuation 125 properties, representing 51% of the value of the portfolio, were valued by NAI Svefa. The properties were selected on the basis of the largest properties in terms of value, but also in order to refl ect the composition of the portfolio as a whole in terms of category and geographical location of the properties. NAI Svefa's valuation of the selected properties amounted to SEKm 14,657, within an uncertainty range of +/– 5-10% on property level. The size of the uncertainty range varies depending on each property's category and location. Castellum's valuation of the same properties amounted to SEKm 14,799, which is 1% higher. It can be noted that, on portfolio level, the external and the internal valuations correspond well, although there are individual differences.

Uncertainty range

A property's market value can only be confi rmed when it is sold. Property valuations are calculations performed according to accepted principles and on the basis of certain assumptions. The value range of +/– 5-10% often used in property valuations should be seen as an indication of the uncertainty that exists in such assessments and calculations. In a less liquid market, the range can be bigger. For Castellum, an uncertainty range of +/– 5%, means a range in value of +/– 1,458 SEKm which corressponds to SEKm 27,707 – 30,623.

	Group			Parent Company
Equipment	2008	2007	2008	2007	Note 12
Opening acquisition value	52	48	3	3
Acquisitions	8	6	1	0
Sales / Retirement of assets	– 3	– 2	– 1	0
Closing acquisition value	57	52	3	3
Opening depreciation	– 39	– 35	– 3	– 2
Sales / Retirement of assets	3	2	1	0
Depreciation for the year	– 6	– 6	– 1	– 1
Closing depreciation	– 42	– 39	– 3	– 3
Book value	15	13	0	0
		Group	Parent Company
Participations in Group Companies	2008	2007	2008	2007	Note 13
Opening / closing acquistion value	–	–	4 087	4 087
Book value	–	–	4 087	4 087

The principles for consolidation are described in the accounting principles. Directly owned subsidiaries are listed below. Other companies in the Group are included in each respective subsidiary's annual report.

External valuation

	Corporate	Registered	Share of	Book
Directly owned subsidiaries	identity no.	offi ce	capital	value
Fastighets AB Brostaden	556002-8952	Stockholm	100%	945
Aspholmen Fastigheter AB	556121-9089	Örebro	100%	506
Eklandia Fastighets AB	556122-3768	Gothenburg	100%	687
Harry Sjögren AB	556051-0561	Mölndal	100%	683
Fastighets AB Corallen	556226-6527	Värnamo	100%	515
Fastighets AB Briggen	556476-7688	Malmö	100%	751
Fastighets AB Regeringsgatan	556571-4051	Gothenburg	100%	0
Fastighets AB Regeringsgatan 1	556715-8331	Gothenburg	100%	0
Summa				4 087

	Long-term Receivables,		Group		Parent Company
Note 14	Group Companies	2008	2007	2008	2007
	Opening acquisition value	–	–	12 460	10 830
	New lending to subsidiaries	–	–	2 570	1 630
	Closing acquisition value			15 030	12 460
	Book value	–	–	15 030	12 460

Shareholders' Equity and Net Asset Value Note 15

Share capital

The share capital as of 31 December, 2008 consisted of 172,006,708 registered A-shares with one vote per share and a par value of 0.50 per share. All shares are fully paid. Of the registered shares, Castellum owns 8,006,708, to a total nominal value of SEK 4,003,354. The number of outstanding shares thus totals 164,000,000, which is the same amount as for the corresponding period previous year. The repurchased shares do not carry any voting rights and are not entitled to dividend. There are no restrictions regarding dividend or other types of repayment. There is no potential common stock such as convertible shares, or preferential rights to accumulated dividend (preference shares).

Development of		Number	Par value	Share capital,
share capital	Date	of shares	per share	SEK
Formation A-shares	27-10-1993	+500	100	+50 000
New share issue, A-shares	27-09-1994	+999 500	100	+99 950 000
Share split 50:1	25-03-1997	+49 000 000	2	–
IPO	23-05-1997	50 000 000	2	100 000 000
New share issue, C-shares	12-07-2000	+7 142 857	2	+14 285 714
Redemption, A-shares	12-07-2000	–6 998 323	2	–13 996 646
Redemption, C-shares	13-11-2000	–7 142 857	2	–14 285 714
Share split 4:1	27-04-2006	129 005 031	0.50	–
Year-end	31-12-2008	172 006 708	0.50	86 003 354

Restricted and nonrestricted equity

According to the Swedish Companies Act shareholders' equity is made up of restricted (non-distributable) and non-restricted (distributable) equity. Dividend to the shareholders may only be such that there after the distribution is full coverage for restricted equity in the parent company. Further, distribution of profi ts may only be made if it is justifi ed with respect to the demands put on the amount of equity needed by the type of business, extent and risk of operations, company and Group consolidation needs, liquidity and fi nancial position in general.

During the year 2000, Castellum repurchased 8,006,708 of the company's own shares for a total of SEKm 194, equivalent to 4.7% of the total registered number of shares. Since then no repurchase of the company's own shares have been made. Own shares repurchased

Dividend is proposed by the Board of Directors according to the rules of the Companies Act and decided by the annual general meeting. The proposed dividend, not yet paid out, for the fi nancial year 2008 is SEK 3.15 per share, SEKm 517 in total. The amount is recorded as debt after the annual general meeting has approved the dividend. Dividend

When calculating the net asset value for a real estate company in general and for Castellum in specifi c, there are in addition to what can be read in the balance sheet, mainly two items to take into consideration – uncertainty range in property valuation and deferred tax liability.

The value range of +/– 5-10% often used in property valuations should be viewed as an indication of the uncertainty that exists in assessments and calculations made. For Castellum this is equivalent to a range of SEK +/- 1.4 – 2.9 billion.

Present accounting principles states that the deferred tax liability shall be recorded to nominal 26.3%, while the real deferred tax is substantially lower. The present assessment is that the discounted real deferred tax liability does not exceed 5%, which means that an additional SEK 2.3 billion should be recorded in equity.

Net asset value	SEKm	SEK/share
Equity according to the balance sheet	10 049	61
Reversed 26.3% deferred tax according to the balance sheet	2 785	17
Net asset value excluding tax	12 834	78
Estimated real liability, deferred tax 5%	–529	–3
Net asset value	12 305	75
Uncertainty range valuation of properties +/– 5% after tax	+/– 1 385	+/– 8

Castellum's objective based on growth in cash fl ow and is not directly related to net asset value. The objective is an annual growth in cash fl ow, i.e. income from property management per share, of at least 10%. In order to achieve this objective, investments of at least SEKm 1,000 per year will be made. All investments will contribute to the objective of growth in income from property management within 1-2 years and have a potential asset value growth of at least 10%. Sales of properties will take place when justifi ed from a business standpoint and when an alternative investment with a higher yield can be found. Castellum will have a stable capital structure, meaning a loan to value ratio not permanently exceeding 55% and an interest coverage ratio of at least 200%.

		Group		Parent Company
Liabilities	2008	2007	2008	2007	Note 16
Interest-bearing liabilities due within
one year of the balance sheet date	–	–	–	–
Other non-interest-bearing liabilities due within
one year of the balance sheet date	1 963	783	1 206	116
Interest-bearing liabilities due within
1-5 years of the balance sheet date	5 107	4 582	5 579	4 607
Interest-bearing liabilities due more than
5 years after the balance sheet date	9 500	8 000	9 500	8 000
Total excl. deferred tax liability	16 570	13 365	16 285	12 723

During 2009, current interest-bearing liabilities amounting to SEKm 148 (126) are due for payment, but since they are covered by unutilized long-term credit agreements, they are treated as long-term interest-bearing liabilities. The fair value of the liabilities are equal to the book value.

Long-term Interest-bearing Liabilities

Castellum's funding and management of fi nancial risks are run according to the fi nancial policy as defi ned by the Board of Directors. The fi nancial operations are centralized to the parent company. The treasury department in the parent company operates as the Group's internal bank with responsibility for group funding, management of fi nancial risks and cash management.

The objectives in the fi nancial policy are:

• Stable capital structure, meaning av loan to value ratio not exceeding 55% long term and an interest coverage ratio of at least 200%.
• Secure the need for long-term funding and liquidity.
• Achieve a low and stable net interest income/costs within the given risk mandate.

The fi nancial policy outlines the given mandates and limitation for the management of the fi nancial risks defi ned in the policy and overall assignment of responsibility and how the fi nancial risk should be reported. The parent company holds a function, separated from the treasury department, for accounting and independent Net asset value

Objectives

Note 17

Financial policy

control of the fi nancial management and the fi nancial risks. The fi nancial risks defi ned in the fi nancial policy, is reported quarterly to the Board of Directors. Interest rate risk and funding risk is reported weekly to the Finance Director. In order to improve and adjust the fi nancial risk management the Board of Directors makes an annual overview of the fi nancial policy.

The fi nancial operations in Castellum shall be run in such manner that the costs for the fi nancial risk management are minimized. This means that Castellum carries out fi nancial transactions based on estimations of the Group's overall need for liquidity, funding and interest rate risk. Hence, the fi nancial risk management is carried out on portfolio level. Portfolio management of lending means that a transaction within the Group, such as an internal loan, is not replicated by an identical external transaction, instead draw downs on loans are made under credit agreements based on the Group's overall funding needs. For a cost effective management of the interest rate risk an assessment is made of the interest rate risk that occurs a payment of or making a draw down on a single loan with a short fi xed interest term under different credit agreements, after which interest rate derivative transactions are made in order to achieve the desired fi xed interest term on the total amount of debts. The internal bank works with netting bank accounts for the Group´s liquidity fl ows.

Policy	Objective	Outcome
Loan to value ratio	Not permanently exceeding 55%	50%
Interest coverage ratio	At least 200%	255%
Interest rate risk
– average fi xed interest term	0.5-3 years	2.9 years
– share with maturity within 6 months	Maximum 50%	38%
Currency risk	Not allowed	No exposure
Funding risk	Minimum 50% credit agreements with a	100%
	duration of at least 2 years.
Counterparty risk	Credit institutes with high ratings, at	Fulfi lled
	least "investment grade"
Liquidity risk	Liquidity reserve in order to fulfi ll	SEKm 2 272 in unutilized
	payments due	credit agreements

Borrowing, maturity structure and interest rates

At the year-end Castellum had long term credit agreements totalling SEKm 15,800 (13,300), long term bonds totalling SEKm 650 (650), short term credit agreements totalling SEKm 770 (776) and a commercial paper program of SEKm 4,000 (4,000). After deduction of liquidity assets of SEKm 9 (7), net interest bearing liabilities were SEKm 14,598 (12,575). At the year end there were no outstanding commercial papers.

Credit agreements/-limits	Amount, SEKm	Utilized, SEKm
Long term credit agreements	15 800	13 950
Bonds	650	650
Short term credit agreements	770	– 2
Commercial paper program	4 000	–
Total	21 220	14 598

The average duration of Castellum's long-term credit agreements as of 31-12-2008 was 5.5 years (5.2). The debt maturity structure for the credit agreements, as may be seen in the table below, shows when in time the credit agreements fall due for renegotiation or repayment. Margins and fees on long term credit agreements had an average duration on 3.2 years.

Debt maturity structure 31-12-2008	Credit agreements, SEKm	Utilized, SEKm
1-2 years	1 100	1 100
2-3 years	700	200
3-4 years	–	–
4-5 years	5 000	5 000
5-10 years	9 500	8 150
Total long term credit agreements	16 300	14 450
Short term credit agreements (0-1 year)	920	148
Commercial paper program (0-1 year)	4 000	–
Total credit agreements	21 220	14 598
Unutilized credits in long term credit agreements		1 702

The treasury department arranges loans under Castellum's credit agreements, issues bonds or commercial papers in order to provide funding for the subsidiaries owning the properties. The credit agreements provide Castellum the right to choose both short-term and long-term fi xed interest rates and sometimes even the right to choose interest rate base, i.e. each credit institute's offered variable interest rate, Stibor interest rate or fi xed interest rate.

The agreements can be divided into the following categories:

• Loans pledged by Castellum's receivables from subsidiaries, including pledged mortgages. Utilized credits secured by pledged mortgages in properties were at the end of the year SEKm 13,696. In addition to the pledged mortgages the majority of the credit agreements include fi nancial covenants. In all cases the fi nancial covenants are issued with safe margins to Castellum´s goal for the capital structure and states a loan to value ratio not exeding 65% and an interest coverage ratio of at least 150%.
• Unsecured loans.
• Issuing of bonds.
• Issuing of commercial papers.

Irrespective of the type of credit agreement they include the usual conditions for cancellation and sometimes also conditions for renegotiation if there is a material adverse change in business or if an unacceptable single party engagement for the lender occurs. If the lender calls on the right for renegotiation in such case and the parties cannot agree, the agreements contain specifi ed terms for the time of termination for those agreements covered by such conditions.

Castellum can increase or decrease the allocation under the long-term credit agreements with short notice. The objective is to minimize the interest-bearing liabilities, and cash is therefore used primarily to repay outstanding debts.

In order to secure Castellum's need for liquidity and long-term funding, Castellum is regularly re-negotiating and entering into new credit agreements when needed. During the year Castellum has signed a net of new long term credit agreements with Nordic banks totalling SEKm 2,500 and renegotiated and extended credit agreements totalling SEKm 9,000.

The average effective interest rate as of 31 December, 2008 was 4.8% (4.4%) and the averge interest rate for the year was 4,7% (4,2%).The average fi xed interest term as at the year end was 2.9 years (2.2) and the market interest rate for an equal portfolio was 2,9% (5,0%). Castellum usually makes draw downs of loan with short term fi xed interest rate under long term credit agreements. Thus the interest rate costs consist of the market interest rate at the time of the loan and a credit margin to the lender. The total margin to the lender consists of both a margin for utilized credits and a facility fee for the granted credit volume. Interest rates that falls due within 12 months consist of short fi xed interest, long fi xed interest with a short remaining duration, in some cases derivatives containing option and fees such as facility fees and commitment fees.

Interest rate maturity structure	Amount, SEKm	Average interest rate
0-1 year	5 596	5.0%
1-2 years	1 350	4.3%
2-3 years	602	4.3%
3-4 years	600	4.7%
4-5 years	3 250	4.7%
5-10 years	3 200	4.9%
Total	14 598	4.8%

Castellum's strategy of using interest rate derivatives in order to manage the interest rate risk and achieve the desired interest rate maturity structure means that there may be changes in value of the interest rate derivatives portfolio from time to time. These changes occur partly due to changes in market interest rates and partly due to the time factor (an originally 5-year fi xed interest term with 2 years left to maturity is compared with a 2-year fi xed interest term). As of December 31, 2008 the market value of the interest rate derivatives portfolio amounted to SEKm – 966 (44). An upward parallel adjustment of the discounting interest rate used in the valuation of the interest rate derivatives portfolio as of December 31, 2008 of 1%-unit would affect the value of the interest rate derivatives portfolio by SEKm 500.

The table below shows the interest rate derivatives portfolio's nominal amount including accrued interest and market value as of 31-12-2008 and the market value of the portfolio with a +/- 1%-unit change in the interest rate. Interest rate derivatives which include an option has based on the date of termination been reported in the same time segment as prior to the assumed change in interest rate.

	Amount,	Market value,	Average interest	Market value	Market value
Year	SEKm	SEkm	rate	interest +1%-unit	interest -1%-unit
2009	2 099	– 176	4.3%	– 75	– 261
2010	1 366	– 38	4.2%	– 19	– 49
2011	602	– 31	4.2%	– 16	– 41
2012	602	– 41	4.6%	– 20	– 62
2013	3 270	– 267	4.6%	– 119	– 411
2014+	3 245	– 413	4.9%	– 204	– 640
Total	11 148	– 966	4.5%	– 453	– 1 464

Note 18

Deferred Tax Liability / Asset

From 2009 the nominal income tax rate for Swedish limited liability companies is 26.3%. According to existing accounting standards, deferred tax shall be valued at the income tax rate that is expected for the period when the asset is realised or the debt is settled. Deferred tax as at December 31, 2008 is therefore calculated based on the tax rate 26.3%. The change due to new tax rate has been accounted for in the income statement. A realization of all assets and liabilities to book value for the Group and utilization of all existing tax loss carry forward would, as is shown in the table below, result in a taxable income of SEKm 10,589 (11,864), equivalent to a tax payment of SEKm 2,785 (3,322).

As far as the parent company is concerned the deferred tax asset of SEKm 241 (3) consists of 26.3% of the unutilized tax loss carry forwards of SEKm 916 (36). Out of the change in deferred tax liabilities during the year, SEKm 32 (14) has been recorded directly in equity.

Castellum's tax loss carry forwards were estimated to SEKm 1,830 (539) December 31, 2008. The change may be seen in the table in note 9.

When calculating the tax effect on a sale of all properties in the Group, the book value in the Group of SEKm 29,165 (27,717) must be compared to the residual value for tax purposes in the legal entity, which amounts to SEKm 16,746 (15,358). This means that if all of Castellum's properties were sold, the taxable net profi t would exceed the recorded profi t in the Group by SEKm 12,419 (12,359). The accounts are based on the assumption that each property is sold by each legal entity with a maximum effective tax rate.

Previous write-downs where tax deductions have been assessed amount to more than SEKm 250. These may be reversed in the case of continued future increases in value.

		2008	2007
Deferred tax liability	Basis	Tax 26.3%	Basis	Tax 28%
Tax loss carry forwards
Opening balance (28%)	539	151	337	94
Change of the year in the income statement	1 291	361	202	57
Revaluation deferred tax 26.3%	–	– 31	–	–
Closing balance	1 830	481	539	151
Difference between the properties
book and tax basis value
Opening balance	– 12 359	– 3 461	– 10 061	– 2 817
Change of the year in the income statement	344	96	– 1 711	– 479
Company acquisition/sale of properties	– 404	– 113	– 587	– 165
Revaluation deferred tax 26.3%	–	212	–	–
Closing balance	– 12 419	– 3 266	– 12 359	– 3 461
Interest rate derivatives
Opening balance	– 44	– 12	–	–
Change of the year in the income statement	44	12	– 44	– 12
Closing balance	–	–	– 44	– 12
Total
Opening balance	–11 864	– 3 322	– 9 724	– 2 723
Change of the year	1 275	537	– 2 140	– 599
Closing balance	– 10 589	– 2 785	– 11 864	– 3 322

Tax loss carry forwards

Surplus- and sub value of properties for tax purposes

		Parent Company		Group	Accrued Expenses and
Note 19	2007	2008	2007	2008	Prepaid Income
	–	–	288	357	Rents paid in advance
	95	222	95	222	Accrued interest
	18 113	14 236	89 472	78 657	Other Total
		Parent Company		Group
Note 20	2007	2008	2007	2008	Pledged assets
	–	–	11 793	14 839	Property mortgages
	10 872	13 680	–	–	Long-term receivables, group companies
	10 872	13 680	11 793	14 839	Total
Note 21		Parent Company		Group
	2007	2008	2007	2008	Contingent Liabilities
	300	300	–	–	Guaranteed commitments for subsidiaries
	300	300	–	–	Total
		Parent Company	Group
Note 22	2007	2008	2007	2008	Cash Flow Statement
					Difference between paid and reported net fi nancial items
	9	7	– 495	– 626	Net fi nancial items according to the income statement
	19	127	19	127	Change in accrued interests
	28	134	– 476	– 499	Net fi nancial items paid
					Difference between paid and reported acquisition value
					of properties
	– –	– –	1 514 – 165	1 212 – 116	Acquisition value according to the balance sheet Transferred deferred tax on company acquisitions

Subsequent Events

Note 23

The Board of Directors of Castellum AB intends to propose the annual general meeting a dividend of SEK 3.15 per share, which is an increase of 5% compared to previous year.

The Financial Reports are a part of the Annual Report and were signed by the Board of Directors on February 4, 2009.

The Income Statement and the Balance Sheet for the Parent Company and the Group shall be adopted at Castellum AB's Annual General Meeting, which is expected to take place on March 26, 2009.

Proposed Distribution of Profits

The following funds are at the Annual General Meetings disposal: Retained profits SEK 3 852 306 059

Net income for the year	SEK – 357 260 945
	SEK 3 495 045 114

The Board of Directors propose that the retained profits be appropriated as follows:
Dividend to shareholders, SEK 3.15 per share	SEK 516 600 000
Carried forward to the new accounts	SEK 2 978 445 114
	SEK 3 495 045 114

The company has 172,006,708 registered shares, of which 8,006,708 are currently the company's own repurchased shares and are not entitled to dividends.

The total dividend payment proposed above of SEK 516,600,000 can be changed if the number of the companys own repurchased shares changes before the record date for the dividend.

Statement Regarding Proposed Distribution of Profit

Reasons

The Group's equity has been calculated in accordance with IFRS standards, approved by the EU, and the interpretations of these standards (IFRIC), as well as in accordance with the provisions of Swedish law by application of the recommendation RFR 1.1 of the Swedish Financial Reporting Board (Supplementary accounting principles for groups). The equity of the parent company has been calculated in accordance with Swedish law and by application of the recommendation RFR 2.1 of the Swedish Financial Reporting Board (Accounting for Legal Persons).

The proposed distribution constitutes 74 % of the Group's income from property management after tax, which is in line with the express target to distribute at least 60 % of the Group's income from property management after tax, having considered investment plans, consolidation needs, liquidity and overall position. The Group's net income after changes in value and tax amounted to SEKm –663. The distribution policy is based on the Group's income from property management, on account of which increases and/or decreases in value on the Group's properties and on interest rate derivatives not affecting cash fl ow, do not normally affect the distribution. That kind of profi t or loss, not affecting cash fl ow, have furthermore not been taken into consideration in previous year's resolutions regarding distribution of profi t.

The Board of Directors concludes that the Company's restricted equity is fully covered after the proposed distribution.

The Board of Directors also concludes that the proposed distribution to the shareholders is justifi ed considering the parameters in section 17 subsection 3, second and third paragraphs of the Swedish Companies Act (the nature, scope and risks of the business as well as consolidation needs, liquidity and overall position). The Board of Directors would in this context like to emphasise the following.

The nature, scope and risks of the business

The Board of Directors estimates that the equity of the Company as well as the Group will, after the proposed distribution, be suffi cient in relation to the nature, scope and risks of the business. The Board of Directors has in this context considered inter alia the historical development of the Company and the Group, budgeted development, investment plans and the economic situation.

Consolidation needs, liquidity and overall position

Consolidation needs

The Board of Directors has made a general estimation of the fi nancial position of the Company and the Group, and the possibilities of fulfi lling their obligations in the long run. The proposed dividend constitutes 14% of the Company's equity and 5% of the Group's equity. The express target for the Group's capital structure, entailing a solvency of 55% and an interest coverage ratio of at least 200%, will be maintained after the proposed dividend. The solvency of the Company and the Group is good considering the prevailing conditions of the real estate business. In light of the above, the Board of Directors concludes that the Company and the Group have all the necessary requirements to take future business risks and to also carry potential losses. Planned investments have been considered when deciding on the proposed dividend. The dividend will furthermore not adversely affect the ability of the Company or the Group to make additional, motivated, investments according to assumed plans.

Liquidity

The proposed dividend will not affect the Company's or the Group's ability to meet their payment obligations in a timely manner. The Company and the Group have good access to liquidity reserves through short-term as well as long-term credits. The credits may be utilised at short notice, meaning that the Company and the Group are prepared to handle liquidity fl uctuations as well as possible unexpected events.

Overall position

The Board of Directors has considered all other known conditions which might affect the fi nancial position of the Company and the Group and which have not been considered within the scope of the above considerations. No circumstances have however been found showing that the proposed dividend would not be justifi ed.

Evaluation to actual value

Derivatives instruments and other fi nancial instruments have been valued to the actual value according to section 4 subsection 14a of the Swedish Annual Accounts Act. The valuation has showed a under value of SEKm 712, which has afftected the equity by the mentioned amount.

Gothenburg January 21rd 2009 The Board of Directors

Signing of the Annual Report

As far as we know the Annual Report is prepared in accordance with generally accepted accounting principles. The Annual Report give a true and fair view of the company's fi nancial position and results, and the directors' report give a true and fair overview of the development of the company's operations, fi nancial position and results, and discribes the signifi cant risks and factors of uncertainty facing the company.

The consolidated accounts have been prepared in accordance with the international accounting standards covered in Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards. The consolidated accounts give a true and fair view of the group's fi nancial position and results, and the directors' report for the consolidated accounts give a true and fair overview of the development of the group's operations, fi nancial position and results and as well as the signifi cant risks and factors of uncertainty facing the companies within the group.

Gothenburg February 4th 2009

Chairman

Jan Kvarnström Per Berggren Marianne Dicander Alexandersson

Ulla-Britt Fräjdin-Hellqvist Christer Jacobson Göran Lindén

Mats Wäppling Håkan Hellström Chief Executive Officer

Our Audit Report regarding this Annual Report was submitted on February 4th, 2009

Carl Lindgren Ingemar Rindstig

Authorized Public Accountant Authorized Public Accountant

Audit Report

To the annual meeting of the shareholders of Castellum AB (publ) corporate identity number 556475-5550

We have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of directors and the managing director of Castellum AB (publ) for the year 2008. The annual accounts and the consolidated accounts are presented in the printed version of this document on pages 64-100. The board of directors and the managing director are responsible for these accounts and the administration of the company as well as for the application of the Annual Accounts Act when preparing the annual accounts and the application of International Financial Reporting Standards IFRSs as adopted by the EU and the Annual Accounts Act when preparing the consolidated accounts. Our responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on our audit.

We conducted our audit in accordance with generally accepted auditing standards in Sweden. Those standards require that we plan and perform the audit to obtain high but not absolute assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the managing director and signifi cant estimates made by the board of directors and the managing director when preparing the annual accounts and the consolidated accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for our opinion concerning discharge from liability, we examined signifi cant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board member or the managing director. We also examined whether any board member or the managing director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that our audit provides a reasonable basis for our opinion set out below.

The annual accounts have been prepared in accordance with the Annual Accounts Act and give a true and fair view of the company's fi nancial position and results of operations in accordance with generally accepted accounting principles in Sweden. The consolidated accounts have been prepared in accordance with International Financial Reporting Standards IFRSs as adopted by the EU and the Annual Accounts Act and give a true and fair view of the group's fi nancial position and results of operations. The statutory administration report is consistent with the other parts of the annual accounts and the consolidated accounts.

We recommend to the annual meeting of shareholders that the income statements and balance sheets of the parent company and the group be adopted, that the profit of the parent company be dealt with in accordance with the proposal in the administration report and that the members of the board of directors and the managing director be discharged from liability for the financial year.

Gothenburg February 4th, 2009

Carl Lindgren Ingemar Rindstig

Authorized Public Accountant Authorized Public Accountant

Castellum's Real Estate Schedule 2008

Greater Gothenburg	108
Öresund Region	116
Greater Stockholm	122
Mälardalen	126
Eastern Götaland	132
Properties Sold in 2008	138

COR = Fastighets AB Corallen EKL = Eklandia Fastighets AB HAR = Harry Sjögren AB

Management subsidiaries: ASP = Aspholmen Fastigheter AB BRI = Fastighets AB Briggen BRO = Fastighets AB Brostaden

Greater Gothenburg

Greater Gothenburg												Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential		Other	Total		value sidiary Note
OFFICE/RETAIL
Annedal 21:10	Haraldsgatan 5	Gothenburg	1995	4 970	–	–	–	–	–	4 970	74 400 EKL
Guldheden 8:10	Guldhedsgatan 5	Gothenburg	1995	9 776	–	23	–	–	–	9 799		– EKL
Gullbergsvass 1:15	Lilla Bommenstorg	Gothenburg	2001	7 942	–	–	–	–	36	7 978	130 000 EKL
Heden 16:5	Parkg 10/Nya Allén 5	Gothenburg	1961	1 303	–	–	–	616	10	1 929	22 479 EKL
Inom Vallgraven 4:1	Östra Larmgatan 18	Gothenburg 1856/1988		2 597	–	–	–	–	–	2 597	27 200 EKL
Inom Vallgraven 19:17	Kyrkogatan 38-40	Gothenburg	1919	1 185	158	20	–	–	–	1 363	22 800 EKL
Inom Vallgraven 22:3	Kungsgatan 31-33	Gothenburg	1929	1 080	488	–	–	–	–	1 568	34 000 EKL
Inom Vallgraven 33:9	Västra Hamng 21/Vallg 9	Gothenburg 1929/1995		1 063	510	–	–	–	–	1 573	22 400 EKL
Inom Vallgraven 34:8	Kungsg 19-23/Magasinsg 18	Gothenburg 1929/1994		3 481	831	55	–	–	–	4 367	80 900 EKL
Inom Vallgraven 35:14	Kungsg 15-17/Magasinsg 17	Gothenburg 1929/1991		3 039	669	–	–	469	–	4 177	86 861 EKL
Inom Vallgraven 35:16 A Kaserntorget 5/Vallg 2		Gothenburg	1991	2 371	590	36	–	–	–	2 997	43 400 EKL
Inom Vallgraven 35:17	Magasinsg 11-13/Vallg 4-6	Gothenburg	1991	163	139	–	–	1 149	–	1 451	20 295 EKL
Inom Vallgraven 57:2	Drottningg 7/V Hamng 5	Gothenburg 1988/1990		6 094	710	310	–	–	–	7 114	76 400 EKL
Krokslätt 102:2	Eklandagatan 80-82	Gothenburg	1971	160	–	–	–	–	811	971	650 EKL		*
Lorensberg 46:5	Kungsportsavenyn 7	Gothenburg	1930	276	691	–	–	–	–	967	21 200 EKL
Lorensberg 48:8	Vasagatan 46	Gothenburg 1900/1992		1 401	202	40	–	–	34	1 677	17 824 EKL
Masthugget 3:6	Linnegatan 5	Gothenburg 1893/1980		1 463	628	–	–	1 079	–	3 170	35 800 EKL
Masthugget 9:17	Järntorget 3-4	Gothenburg	1900	2 865	518	10	–	–	–	3 393	46 400 EKL
Masthugget 26:1	Barlastgatan 2	Gothenburg	1923	4 038	1 075	–	–	2 796	–	7 909	107 400 EKL
Nordstaden 2:16	Östra Hamngatan 16	Gothenburg	1974	13 855	2 759	–	–	–	4	16 618	398 676 EKL
Pustervik 3:8	Brogatan 4	Gothenburg	1988	3 910	–	–	–	–	–	3 910	33 400 EKL
Gamlestaden 22:14	Gamlestadsvägen 16	Gothenburg	1957	18 015	–	1 290	210	–	158	19 673	71 240 EKL
Gamlestaden 26:1	Marieholmsgatan 10	Gothenburg 1914/1987		6 090	270	1 640	8 283	–	–	16 283	50 627 EKL		T/B
Olskroken 14:2	Ånäsv 44-46/Svang 2-4/Ejderg 3 Gothenburg 1895/1986			7 441	315	135	5 177	136	–	13 204	63 955 EKL
Skår 58:1	St Sigfridsgatan 89	Gothenburg	1991	11 855	–	–	–	–	–	11 855	112 800 EKL		B
Arendal 764:394	Sydatlanten 15-17	Gothenburg 1974/1991		9 358	–	–	–	–	–	9 358	45 745 EKL		T
Backa 27:24	Bergögatan 10	Gothenburg	1984	947	–	352	382	–	–	1 681	7 591 EKL
Backa 27:25	Bergögatan 12	Gothenburg	1984	717	–	47	–	–	130	894	3 719 EKL
Backa 27:40	Bergögatan 16	Gothenburg	1984	849	–	531	–	–	–	1 380	6 283 EKL
Backa 27:43	Bergögatan 5-7	Gothenburg	1984	3 189	–	984	309	–	342	4 824	25 800 EKL
Backa 196:6	Aröds Industriväg 34	Gothenburg	1990	1 332	–	408	–	–	50	1 790	8 665 EKL
Kärra 75:3	Transportgatan 33	Gothenburg	2008	–	–	4 600	–	–	–	4 600		– EKL
Kärra 77:3	Tagenevägen 70	Gothenburg	1990	1 285	–	–	–	–	–	1 285	5 548 EKL		T
Lindholmen 28:2	Theres Svenssons Gata 9-11	Gothenburg	2006	4 903	204	62	–	–	–	5 169	54 000 EKL
Rambergsstaden 733:409 Herkulesgatan 68		Gothenburg	1988	2 270	944	984	–	–	43	4 241	21 777 EKL
Sannegården 28:14	Vingalandsgatan 2	Gothenburg 1880/1987		5 032	–	1 391	172	–	34	6 629	62 600 EKL
Tingstadsvassen 11:11	Ringög 12/Kolgruveg 3-5	Gothenburg	1992	3 548	2 170	227	–	–	29	5 974	31 800 EKL		B
Tingstadsvassen 12:12	Kalkbruksgatan 9	Gothenburg	1989	2 129	–	–	–	–	–	2 129	8 356 EKL
Tingstadsvassen 26:5	Lergodsgatan 1-3	Gothenburg	1989	1 254	–	2 106	–	–	–	3 360	17 111 EKL		T/B
Tuve 87:1	Hildedalsgatan 2	Gothenburg	1987	1 336	–	3 200	–	–	–	4 536	16 925 EKL
Högsbo 8:8	Beatrice Lesslies gata 14	Gothenburg 1961/2001		1 100	–	1 000	–	–	–	2 100	9 644 HAR B
Högsbo 13:3	E A Rosengrens gata 15	Gothenburg	1982	1 244	–	–	–	–	–	1 244	6 511 HAR T/B

CASTELLUM ANNUAL REPORT 2008 109

Greater Gothenburg												Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential		Other	Total			value sidiary Note
Högsbo 20:22	F O Petterssons gata 24-32	Gothenburg	1982	14 145	178	760	–	–	–	15 083	73 000 HAR
Högsbo 24:12	August Barks gata 23	Gothenburg 1968/1990		3 117	–	2 756	–	–	–	5 873	45 664 HAR B
Högsbo 27:7	August Barks gata 6	Gothenburg	1988	7 933	–	–	–	–	–	7 933	81 000 HAR
Kobbegården 6:362	Stora Åvägen 19 A-B, 21	Gothenburg	1990	5 513	878	1 150	–	–	–	7 541	69 200 HAR
Kobbegården 6:726	Datavägen 14 B	Gothenburg	1981	2 573	–	–	–	–	–	2 573	11 880 HAR
Anisen 1	Johannefredsgatan 1	Mölndal	1990	1 676	–	237	–	–	–	1 913	12 095 HAR B
Anisen 3	Johannefredsgatan 3	Mölndal	2003	1 800	1 500	–	2 600	–	–	5 900	43 598 HAR
Berguven 1	Möbelgatan 4	Mölndal	1964	6 500	–	–	–	–	500	7 000	29 000 HAR B
Generatorn 5	Aminogatan 16	Mölndal	1986	640	–	–	483	–	–	1 123	7 730 HAR
Mejramen 1	Lunnagårdsgatan 4	Mölndal	1999	8 300	–	4 700	–	–	–	13 000	101 600 HAR B
Pottegården 4	Kråketorpsgatan 20	Mölndal	1992	3 182	–	1 836	–	–	–	5 018	26 806 HAR
Riskullaverket 2	Aminogatan 25	Mölndal	1991	1 692	–	1 261	–	–	–	2 953	16 544 HAR
Sesamfröet 2	Aminogatan 27	Mölndal	1992	5 150	–	700	–	–	–	5 850	49 800 HAR B
Apollo 5	Österlånggatan 5	Borås	1930/1979	6 803	552	193	–	–	–	7 548	40 000 HAR
Katrinedal 14	Katrinedalsgatan 22	Borås	1990	2 360	–	1 892	–	–	–	4 252	14 530 HAR
Midas 14	Västerlånggatan 17	Borås	1974	15 408	5 424	–	366	–	–	21 198	171 000 HAR B
Narcissus 5	L:a Brogatan 15/St Brogatan 16 Borås		1930	908	1 484	–	–	1 284	–	3 676	30 008 HAR
Nestor 2	L:a Brogatan 19-21	Borås	1962/1991	1 225	3 012	135	–	–	–	4 372	45 000 HAR
Nestor 3	St Brogatan 24	Borås	1930	1 346	732	–	–	439	–	2 517	19 919 HAR
Solsten 1:109	Företagsparken	Härryda	2003	11 375	–	–	–	–	–	11 375	61 321 EKL
Flaggan 1	Laholmsvägen 84	Halmstad	1959/2004	–	2 895	–	–	–	–	2 895	9 978 HAR
Karossen 3	Kristinehedsvägen 5, 7	Halmstad	1965/2004	916	4 458	568	535	–	–	6 477	27 800 HAR B
Kartongen 3	Spikgatan 7	Halmstad	1990/1995	3 434	–	2 842	–	–	40	6 316	25 904 HAR B
Valsen 2	Svingelvägen 2	Halmstad	1979/2003	2 294	–	–	–	–	–	2 294	11 208 HAR B
Filaren 1	Sveagatan 10	Alingsås	1958/1968	2 716	2 282	158	–	–	–	5 156	22 205 HAR
Gjutaren 26 B	Metallgatan 2-4	Alingsås	2000	3 585	–	–	–	–	–	3 585	32 003 HAR B
Partille 4:2, 4:25	G:a Kronvägen 22	Partille	1940/1981	–	2 240	–	–	–	–	2 240	5 890 HAR B
Ugglum 8:37	Göteborgsvägen 78-80	Partille	1937/1982	–	296	–	–	278	–	574	3 824 HAR
Ugglum 8:91	Göteborgsvägen 82-84	Partille	1988	2 082	1 016	–	–	–	–	3 098	25 119 HAR
Ugglum 8:92	Göteborgsvägen 74-76	Partille	1992	4 944	720	193	–	–	–	5 857	47 400 HAR
Ugglum 126:4	Gibsons väg 3	Partille	1990	468	–	–	–	–	–	468	3 071 HAR
Hede 3:125	Sättarevägen 3	Kungsbacka	1990	1 759	–	601	–	–	–	2 360	16 032 HAR
Kungsbacka 4:46	L:a Verkstadsgatan 8	Kungsbacka	1979	401	–	–	–	–	–	401	2 456 HAR B
Varla 3:22 B	Hallabäcksvägen 1	Kungsbacka	1979	1 000	4 000	600	–	–	–	5 600		– HAR B
Varla 2:380	Energigatan 11	Kungsbacka	1990	1 689	–	685	–	–	–	2 374	15 600 HAR
Varla 2:416	Kungsparksvägen 2	Kungsbacka	2002	1 100	–	680	–	–	–	1 780	9 538 HAR
Stiftet 6	Bilgatan 20	Kungälv	1991	4 617	–	–	–	–	–	4 617	12 316 EKL
Total offi ce/retail				289 577	45 538	41 398	18 517				8 246 2 221 405 497 3 153 221

Greater Gothenburg

Greater Gothenburg												Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential		Other	Total		value sidiary Note
WAREHOUSE/INDUSTRIAL
Arendal 1:13	Hamneviksvägen 31	Gothenburg	2006	–	–	27 787	–	–	–	27 787	144 600 EKL
Arendal 7:4	Kärrlyckegatan 11	Gothenburg	1991	1 320	–	2 214	–	–	164	3 698	16 084 EKL
Arendal 764:130	Oljevägen 103	Gothenburg	1971	–	–	12 136	11 259	–	25	23 420	80 633 EKL
Backa 18:7, 18:10	Risbindaregatan 1	Gothenburg	1964	–	–	16 960	–	–	–	16 960	50 106 EKL
Backa 20:5	Exportgatan 2-8	Gothenburg 1989/1999		1 175	–	226	13 869	–	630	15 900	63 720 EKL		B
Backa 22:3	Exportgatan 51 A	Gothenburg 1972/1997		3 316	–	–	4 476	–	–	7 792	23 167 EKL
Backa 22:11	Exportgatan 67	Gothenburg	1990	284	–	2 316	–	–	–	2 600	9 522 EKL
Backa 25:7	Exportgatan 28	Gothenburg	1972	–	–	–	11 200	–	–	11 200	29 545 EKL
Backa 26:3	Exportgatan 40	Gothenburg 1947/1988		2 712	240	2 990	–	–	6	5 948	24 642 EKL
Backa 27:2	Importgatan 17	Gothenburg	1968	–	–	3 013	–	–	–	3 013	9 408 EKL		B
Backa 29:24	Importgatan 12	Gothenburg	1977	–	–	2 224	–	–	–	2 224	6 862 EKL
Backa 94:1	Exportgatan 15	Gothenburg	1989	–	–	7 560	–	–	–	7 560	24 789 EKL		B
Backa 97:11	Exportgatan 39-41	Gothenburg	1978	1 146	–	3 273	–	–	–	4 419	21 543 EKL
Backa 192:3	Aröds Industriväg 72	Gothenburg	1989	119	–	1 215	–	–	–	1 334	4 681 EKL
Backa 192:4	Aröds Industriväg 60	Gothenburg	1989	484	194	1 356	–	–	–	2 034	7 412 EKL		T
Backa 192:6	Aröds Industriväg 62	Gothenburg	1988	–	–	1 371	–	–	–	1 371	4 670 EKL
Backa 192:10	Aröds Industriväg 66	Gothenburg	1990	1 410	–	1 335	–	–	–	2 745	11 601 EKL
Backa 193:1	Aröds Industriväg 2 A	Gothenburg 1988/1996		–	–	–	2 950	–	–	2 950	14 350 EKL		B
Backa 197:2	Aröds Industriväg 17-19	Gothenburg	1990	–	–	1 326	–	–	–	1 326	4 748 EKL
Kärra 37:4	Tagenevägen 21	Gothenburg	1972	–	1 195	11 740	–	–	–	12 935	36 530 EKL
Kärra 74:2	Tagenevägen 29	Gothenburg	2008	–	–	15 370	–	–	–	15 370		– EKL	B
Kärra 74:3	Tagenevägen 33	Gothenburg	1985	–	–	–	7 505	–	–	7 505	26 638 EKL		B
Kärra 75:1	Transportgatan 35	Gothenburg	1980	–	–	8 671	–	–	–	8 671	34 000 EKL		B
Kärra 77:8	Tagenevägen 72	Gothenburg	1991	212	–	1 859	–	–	–	2 071	9 590 EKL
Kärra 80:7	Trankärrsvägen 14	Gothenburg	1990	211	–	3 451	–	–	–	3 662	14 902 EKL		T
Kärra 94:1	Orrekulla Industrigata 25	Gothenburg	1990	–	–	–	1 960	–	–	1 960	7 715 EKL
Kärra 96:1	Orrekulla Industrigata 13-15	Gothenburg	1991	160	–	3 830	–	–	–	3 990	16 252 EKL		B
Tingstadsvassen 11:9	Kolgruvegatan 9	Gothenburg	1988	343	–	721	–	–	–	1 064	4 891 EKL
Tingstadsvassen 12:6	Manufakturgatan 19	Gothenburg	1990	328	–	2 657	–	–	–	2 985	14 214 EKL		T
Tingstadsvassen 12:9	Manufakturgatan 21-23	Gothenburg	1957	–	–	6 134	–	–	–	6 134	11 460 EKL		T
Tingstadsvassen 14:7	Stålverksgatan 11	Gothenburg	1993	934	–	–	4 273	–	–	5 207	738 EKL		B
Tingstadsvassen 19:3	Kolgruvegatan 1	Gothenburg	1950	849	–	9 719	245	–	–	10 813	22 012 EKL		T
Högsbo 4:1	Fältspatsgatan 1	Gothenburg 1965/1972		1 140	350	3 074	–	–	–	4 564	17 629 HAR
Högsbo 7:16	Gustaf Melins gata 7	Gothenburg	1987	1 301	–	–	404	–	–	1 705	9 015 HAR
Högsbo 9:3	A Odhners gata 17	Gothenburg 1978/2002		635	–	2 267	–	–	–	2 902	16 398 HAR *
Högsbo 18:1	E A Rosengrens gata 30-38	Gothenburg 1966/1973		1 092	–	7 628	–	–	–	8 720	28 182 HAR B
Högsbo 26:8	August Barks gata 25	Gothenburg 1969/1979		2 123	–	–	2 253	–	–	4 376	16 883 HAR B
Högsbo 28:3	August Barks gata 7	Gothenburg 1968/1981		785	–	–	2 857	–	–	3 642	15 843 HAR
Högsbo 36:1	Norra Långebergsgatan 8	Gothenburg 1971/1995		710	–	3 840	–	–	–	4 550	22 966 HAR
Högsbo 36:5	Hulda Mellgrens gata 3	Gothenburg	1991	553	–	–	2 931	–	–	3 484	15 790 HAR B
Högsbo 36:9	Hulda Mellgrens gata 7	Gothenburg	2007	400	–	1 475	–	–	–	1 875	12 159 HAR
Högsbo 38:9	Sisjö Kullegata 4	Gothenburg	1984	–	–	–	983	–	–	983	8 823 HAR B

Note: *=Acquired 2008 T=Ground rent A=Lease B=Unutilized building permission

Greater Gothenburg												Tax Mgmt.
Name of property	Address	Municipality	Build/ Refurb. year	Offi ce			Square metres per type of premises Retail Warehouse Industrial Residential		Other	Total	assessment Sub	value sidiary Note
Högsbo 40:1	Gustaf Werners gata 2	Gothenburg 1981/1999		1 495	–	5 505	–	–	–	7 000	29 532 HAR B
Högsbo 40:2	Gustaf Werners gata 4	Gothenburg	1978	400	–	2 815	–	–	–	3 215	17 064 HAR B
Kobbegården 208:6	Askims Verkstadsväg 16	Gothenburg 1973/1979		480	–	–	1 264	–	–	1 744	6 977 HAR
Kobbegården 209:1	Askims Verkstadsväg 15	Gothenburg 1973/1996		–	–	–	2 538	–	–	2 538	11 559 HAR B
Kobbegården 6:180	Datavägen 20	Gothenburg	1980	1 704	–	1 078	–	–	–	2 782	23 600 HAR
Kobbegården 6:360	Datavägen 31	Gothenburg	1979	1 640	–	5 349	–	–	–	6 989	42 400 HAR
Kobbegården 6:724	Ekonomivägen 11	Gothenburg 1978/1986		–	–	–	6 290	–	–	6 290	25 411 HAR B
Rud 51:21	Klangfärgsgatan 2 C	Gothenburg 1979/1989		510	–	2 590	–	–	–	3 100	15 860 HAR T
Tynnered 1:10	Kontrabasgatan 12	Gothenburg	1969	429	140	–	2 152	–	–	2 721	10 049 HAR T
Kallebäck 3:4	Mejerigatan 1	Gothenburg	1962	5 934	–	25 109	805	–	–	31 848	105 000 EKL
Majorna 163:1	Banehagsliden 2	Gothenburg	1949	–	–	8 226	749	–	–	8 975	24 550 EKL		B
Gaslyktan 11	Argongatan 26-30	Mölndal	1987	4 000	–	11 000	–	–	–	15 000	82 800 HAR B
Generatorn 1	Aminogatan 24	Mölndal	1995/2003	1 445	–	3 110	–	–	–	4 555	36 000 HAR B
Generatorn 2	Aminogatan 20-22	Mölndal	1991	164	–	2 938	–	–	–	3 102	15 378 HAR
Heliumgasen 11	Kryptongatan 5 B	Mölndal	1975	4 560	–	–	5 093	–	–	9 653	43 703 HAR B
Kryddpepparn 3	Östergårdsgatan 8	Mölndal	1992	–	–	–	4 140	–	–	4 140		– HAR B
Lindome 2:40	Elementvägen 2	Mölndal	1966	376	–	9 811	–	–	–	10 187	20 000 EKL		B
Lindome 2:47	Elementvägen 2	Mölndal	1966	–	–	1 835	510	–	–	2 345	8 202 EKL		B
Pottegården 2	Kråketorpsgatan 18	Mölndal	1964	–	–	1 800	–	–	–	1 800	7 444 HAR B
Skinntickan 1	Ålegårdgatan 5	Mölndal	1989	1 221	–	–	4 720	–	–	5 941	10 622 HAR
Syrgasen 8	Kryptongatan 14	Mölndal	1979	–	–	–	3 055	–	–	3 055	14 727 HAR B
Tjärblomman 2	Wolfsgatan 2	Mölndal	1960	2 495	–	4 540	–	–	–	7 035	17 525 HAR B
Tjärblomman 3	Sallarängsgatan 3	Mölndal	1970	1 225	–	7 533	–	–	–	8 758	21 352 HAR
Tulpanen 1	Bergfotsgatan 5	Mölndal	1961	1 812	–	2 954	–	–	–	4 766	14 751 HAR B
Tusenskönan 2	Flöjelbergsgatan 6	Mölndal	1960	3 567	–	933	–	–	–	4 500	12 511 HAR B
Tusenskönan 4	Bergfotsgatan 3	Mölndal	1961	2 038	–	2 424	–	–	–	4 462	14 394 HAR B
Törnrosen 3	Flöjelbergsgatan 10	Mölndal	1964	1 791	–	1 791	–	–	–	3 582	9 509 HAR B
Vallmon 2	Flöjelbergsgatan 13	Mölndal	1965	662	–	2 518	–	–	–	3 180	8 367 HAR
Vallmon 3	Flöjelbergsgatan 11	Mölndal	1965	676	–	2 570	–	–	–	3 246	8 557 HAR
Vallmon 6	Flöjelbergsgatan 7 B	Mölndal	1965	1 629	–	6 685	–	–	–	8 314	21 484 HAR
Vallmon 7	Föjelbergsgatan 7 A	Mölndal	1930	960	–	3 844	–	–	–	4 804	12 966 HAR B
Ängsviolen 1	Flöjelbergsgatan 18	Mölndal	1960/1965	1 765	180	–	3 655	–	–	5 600	18 615 HAR B
Hede 3:12	Faktorvägen 1	Kungsbacka	1992	1 971	–	6 929	–	–	–	8 900	47 376 HAR B
Hede 3:131	Tryckarevägen 8	Kungsbacka	1991	170	–	1 347	–	–	–	1 517	6 132 HAR B
Kungsbacka 4:47	L:a Verkstadsg 2-6/Verkstadsg 7 Kungsbacka 1978/1990			1 516	–	2 475	–	–	–	3 991	12 590 HAR
Varla 3:22	Hallabäcksvägen 1	Kungsbacka	1979	–	–	23 500	–	–	–	23 500	67 846 HAR B
Varla 2:388	Energigatan 21	Kungsbacka 1983/1995		–	–	2 207	–	–	–	2 207	8 167 HAR B
Varla 2:415	Borgås Gårdsväg 15	Kungsbacka	2002	755	–	3 676	–	–	–	4 431	18 022 HAR
Cedern 9,12,15,16	Ramnåsg 1/Göteborgsv 6	Borås	1935/1980	–	–	7 339	–	–	–	7 339	9 057 HAR
Hinden 2	Sagagatan 17	Borås	1956	692	–	–	5 748	–	–	6 440	8 862 HAR B
Kilsund 3	Evedalsgatan 5	Borås	1935	709	260	–	9 847	–	–	10 816	15 658 HAR B
Lagern 8	Hållingsgatan 15	Borås	1948/1961	239	–	–	8 753	–	–	8 992	10 661 HAR B
Silverpoppeln 31	Ålandsgatan 6	Borås	1961/1970	835	–	–	2 165	–	–	3 000	5 550 HAR
Snödroppen 8	Elinsdalsg 9, 13 & 15/ Södra Korsg 11	Borås	1980/1980	1 543	–	–	5 881	–	–	7 424	15 915 HAR B
Trucken 4	Viaredsvägen 14	Borås	2001	700	–	4 800	–	–	–	5 500	21 083 HAR B

Greater Gothenburg										Tax Mgmt.
			Build/				Square metres per type of premises			assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential	Other	Total		value sidiary Note
Bulten 6	Bultgatan 1	Alingsås	1985/1990	760	–	2 600	–	– –	3 360	11 909 HAR B
Gjutaren 26	Metallgatan 2-4	Alingsås	1933/1989	1 383	–	9 082	–	– –	10 465	18 340 HAR B
Konfektasken 15	Kolavägen 2-8/Sidenvägen 7	Alingsås	1929/1969	3 769	–	6 927	–	– –	10 696	18 897 HAR B
Stallet 3	Tomasgårdsvägen 19	Alingsås	1990	1 295	–	2 040	–	– –	3 335	9 496 HAR */B
Hede 2:11	Hedeforsvägen 6	Lerum	1960/1974	500	–	2 200	–	– –	2 700	10 611 HAR
Lerum Berg 1:76	Åkerivägen 7	Lerum	2007	1 500	–	8 400	–	– –	9 900	44 247 HAR B
Fogden 4	Laholmsvägen 84	Halmstad	1960/1990	278	1 946	8 609	118	– 1 028	11 979	23 232 HAR B
Hönekulla 1:571	Åvägen 1	Härryda	1986/2002	1 762	–	–	2 345	– 187	4 294	16 719 HAR
Kåbäcken 11:7	G:a Alingsåsvägen 29	Partille	1961/1964	–	–	2 227	–	– –	2 227	4 656 HAR
Total warehouse/industrial				87 097		4 505 381 054 136 993				0 2 040 611 689 2 030 648

Note: *=Acquired 2008 T=Ground rent A=Lease B=Unutilized building permission

Office/retail Warehouse/industrial Development projects and land

Greater Gothenburg												Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential		Other	Total			value sidiary Note
UNDEVELOPED LAND
Annedal 21:9	Haraldsgatan 3	Gothenburg	–	–	–	–	–	–	–	–		– EKL	B
Högsbo 33:1	Gruvgatan 29	Gothenburg	–	–	–	–	–	–	–	–	3 015 HAR B
Högsbo 39:3	Ingela Gathenhielms gata 8	Gothenburg	–	–	–	–	–	–	–	–		946 HAR B
Kallebäck 2:5	Grafi ska vägen 2-4	Gothenburg	–	–	–	–	–	–	–	–	39 000 EKL		B
Kobbegården 6:7	Ekonomivägen 11	Gothenburg	–	–	–	–	–	–	–	–	1 752 HAR B
Kobbegården 152:1	Industrivägen 4-6	Gothenburg	–	–	–	–	–	–	–	–	13 800 HAR B
Kärra 28:10	Transportgatan 37	Gothenburg	–	–	–	–	–	–	–	–		– EKL	B
Kärra 72:36	Tagenevägen 34	Gothenburg	–	–	–	–	–	–	–	–		– EKL	*/B
Heliumgasen 4	Neongatan 4 B	Mölndal	–	–	–	–	–	–	–	–	2 570 HAR B
Skällared 3:49	Lysekulevägen	Kungsbacka	–	–	–	–	–	–	–	–	923 EKL		B
Kyllared 1:112	Tvinnaregatan 27	Borås	–	–	–	–	–	–	–	–		450 HAR B
Solsten 1:108	Företagsparken	Härryda	–	–	–	–	–	–	–	–	5 400 EKL		B
Total undeveloped land				0	0	0	0	0	0	0	67 856

Total Greater Gothenburg 376 674 50 043 422 452 155 510 8 246 4 2611 017 186 5 251 725

Note: *=Acquired 2008 T=Ground rent A=Lease B=Unutilized building permission

Office/retail Warehouse/industrial Development projects and land

Castellum's Real Estate Portfolio in Greater Gothenburg 31-12-2008

									Net
		Area	Rental	Rental	Ecomomic	Rental	Property	Property	operating
	No. of properties	thous. sq.m.	value SEKm	value SEK/sq.m.	occupancy rate	income SEKm	costs SEKm	costs SEK/sq.m.	income SEKm
Offi ce/retail
Central Gothenburg	21	90	172	1 905	96.2%	166	40	438	126
Eastern Gothenburg	4	61	58	944	94.2%	54	16	267	38
Mölndal	8	43	47	1 097	96.8%	45	7	190	38
Hisingen	15	58	60	1 032	89.0%	53	17	292	36
Borås	6	43	44	1 018	98.2%	44	14	325	30
Rest of Greater Gothenburg	25	110	106	970	94.2%	101	21	184	80
Total offi ce/retail	79	405	487	1 202	94.9%	463	115	285	348
Warehouse/industrial
Hisingen	32	227	146	645	94.0%	138	27	116	111
Mölndal	21	118	85	720	92.8%	79	15	122	64
Högsbo/Sisjön	19	73	57	773	88.7%	50	9	130	41
Kungsbacka	6	45	30	668	56.4%	17	3	70	14
Borås	7	49	25	499	85.3%	21	6	123	15
Rest of Greater Gothenburg	11	100	70	707	94.1%	66	15	157	51
Total warehouse/industrial	96	612	413	675	89.8%	371	75	123	296
Total	175	1 017	900	885	92.6%	834	190	187	644
Leasing and property administration							41	41	– 41
Total after leasing and property administration							231	228	603
Development projects	–	–	–	–	–	–	–	–	–
Undeveloped land	12	–	–	–	–	–	–	–	–
Total	187	1 017	900	–	–	834	231	–	603

Real estate portfolio by property type Real estate portfolio by municipality

	Mölndal 15%
Gothenburg 63%	Borås 7%
	Kungsbacka 5%
	Alingsås 3%
	Halmstad 2%
	Rest of Greater
	Gothenburg 5%

Property related key ratios

	2008	2007	2006	2005	2004	2003	2002	2001	2000
Rental value, SEK/sq.m.	885	856	834	839	834	798	768	731	689
Economic occupancy rate	92.6%	90.8%	89.4%	90.7%	92.2%	93.0%	93.5%	94.7%	93.7%
Property costs, SEK/sq.m.	228	227	224	230	228	217	217	217	215
Net operating income, SEK/sq.m.	591	551	521	531	540	525	501	475	430
Number of properties	187	182	176	172	178	188	195	208	211
Lettable area, thousand sq.m.	1,017	1,000	914	859	794	765	736	721	740

Öresund Region												Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce		Retail Warehouse Industrial Residential			Other	Total			value sidiary Note
OFFICE/RETAIL
Betongen 11	Krangatan 4	Malmö	1991	4 892	–	17	–	–	–	4 909	29 049 BRI		T/B
Björnen 6	Davidhallsgatan 20	Malmö	1920/1988	1 672	429	71	–	–	–	2 172	30 400 BRI
Brandnävan 1&2	Stenbärsgatan 1	Malmö	1989	2 822	–	–	–	–	–	2 822	15 040 BRI		T/B
Bältespännet 13	Hornyxegatan 12	Malmö	1972/2002	145	1 190	–	485	–	–	1 820	4 695 BRI
Flygledaren 3	Höjdrodergatan 18	Malmö	1991	1 610	–	–	–	–	–	1 610	6 325 BRI		T
Flygvärdinnan 4	Höjdrodergatan 30-34	Malmö	1935/2001	5 589	–	3 883	–	–	45	9 517	61 587 BRI		T
Folke 3	Fredriksbergsgatan 1 A-C	Malmö	1988	1 898	–	163	–	2 125	–	4 186	30 453 BRI
Hälsingland 19	Fosievägen 9-19	Malmö	1950/2003	8 245	6 558	55	–	–	–	14 858	82 697 BRI		B
Höjdrodret 3	Kabingatan 11	Malmö	1990	1 182	–	162	–	–	–	1 344	5 488 BRI
Lybeck 10	Stora Nygatan	Malmö	1964/1992	6 323	9 445	48	–	5 032	9 838	30 686	364 200 BRI
Malte 23	Fredriksbergsgatan 16	Malmö	1965	5 377	1 171	505	443	–	–	7 496	53 200 BRI
Murman 8	Krusegatan 27	Malmö	1960/1989	5 724	–	1 401	–	–	–	7 125	21 416 BRI
Norsen 12	Föreningsgatan 7	Malmö	1930/1990	2 446	–	96	54	140	363	3 099		– BRI
Sadelknappen 4	Ridspögatan 10	Malmö	1985	1 010	–	–	–	–	495	1 505	4 823 BRI
Skevrodret 1	Kabingatan 9	Malmö	1978/1997	1 898	–	260	–	–	–	2 158	7 764 BRI
Spännbucklan 16	Agnesfridsvägen 178	Malmö	1972/2002	–	4 762	–	–	–	–	4 762	27 585 BRI
Stadt Hamburg 14	St Hamburgsgatan 1	Malmö	1900/2004	4 995	4 067	–	–	373	125	9 560	173 729 BRI
Stenyxan 21	Stenyxegatan 14	Malmö	1992/1999	513	–	582	–	–	–	1 095	4 046 BRI
Stillman 40	Krusegatan 34	Malmö	1975/1986	1 835	–	–	–	–	–	1 835	5 479 BRI
Svedjenävan 3	Stenbärsgatan 4-6	Malmö	1991	4 728	–	–	–	–	–	4 728	24 970 BRI
Tuborg 1	Tuborgsgatan 2	Malmö	1945/1980	6 858	–	296	403	–	132	7 689		– BRI
Vårbuketten 3	Husievägen 21	Malmö	1987/2002	2 710	–	–	–	–	–	2 710	13 110 BRI		B
Forskaren 2	Emdalavägen 4-18	Lund	2001	18 590	–	–	–	–	1 371	19 961	332 000 BRI
Forskaren 2:2 A	Emdalavägen 8	Lund	2008	7 499	–	–	–	–	–	7 499		– BRI	B
Jöns Petter Borg 9	Landerigränden 21	Lund	1990	4 442	–	6 794	–	–	–	11 236	66 762 BRI		B
Kvartsen 2	Skiffervägen 15	Lund	1991	695	–	943	–	–	–	1 638	11 411 BRI		B
Reuterdahl 11	Scheelevägen 16	Lund	1990	2 867	–	–	–	–	205	3 072	42 800 BRI
Reuterdahl 12	Scheelevägen 18	Lund	1990	5 645	–	–	–	–	–	5 645	26 987 BRI
Rudebok 2	Rudeboksvägen 3	Lund	1985/2004	4 697	–	–	–	–	–	4 697	36 600 BRI
Smörkärnan 1	Kaprifolievägen 1	Lund	1968/1995	6 227	–	136	–	–	1 444	7 807	71 400 BRI
St Botulf 11	Botulfsg 5/Skomakareg 4	Lund	1931/1990	–	1 359	–	–	3 139	380	4 878	89 800 BRI
St Clemens 22	Stortorget 6-8	Lund	1832/1981	887	1 551	–	–	847	–	3 285	65 110 BRI		B
St Clemens 27	Stortorget 4	Lund	1846/1999	148	1 383	–	–	–	–	1 531	35 406 BRI
Stockholmsledet 8	Scheelevägen 30-32	Lund	1991	10 592	333	788	–	–	–	11 713	141 000 BRI
Traktorn 2	Traktorvägen 11	Lund	1990/1995	12 331	–	–	–	–	–	12 331	133 800 BRI
Trumlan 1	Traktorvägen 19	Lund	1990	–	1 183	1 334	–	–	–	2 517	11 068 BRI
Erik Dahlberg 2	Kullagatan 21	Helsingborg 1890/1987		400	442	–	–	–	–	842	10 338 BRI
Kavalleristen 9	Berga Allé 1-3	Helsingborg 1920/1993		11 458	–	155	–	–	760	12 373	74 715 BRI		B
Kroksabeln 18	Florettgatan 12	Helsingborg	1988	3 193	–	82	–	–	261	3 536	16 389 BRI		B
Kulan 1	Garnisionsgatan 5	Helsingborg 1996/2005		–	–	12 730	–	–	–	12 730	36 461 BRI
Musköten 5	Bergavägen 8	Helsingborg 1970/1985		1 634	540	889	–	–	816	3 879	10 104 BRI
Pilbågen 6	Garnisonsgatan 6	Helsingborg	1977	–	850	814	–	–	3 675	5 339	34 632 BRI		B
Pilbågen 9	Garnisonsgatan 10	Helsingborg	1980	5 322	4 395	1 963	–	–	–	11 680		– BRI

Note: *=Acquired 2008 T=Ground rent A=Lease B=Unutilized building permission

Öresund Region												Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce		Retail Warehouse Industrial Residential			Other	Total			value sidiary Note
Rustningen 1	Rundgången 26-32	Helsingborg	1989	6 729	1 022	2 201	372	–	160	10 484	48 043 BRI
Snårskogen 1	Kanongatan 155-159	Helsingborg	1991	1 885	4 202	2 397	144	–	–	8 628	35 440 BRI		B
Spjutet 2	Garnisonsgatan 14	Helsingborg 1970/2003		1 675	2 671	2 397	–	–	–	6 743	32 000 BRI		*/B
Studsaren 4	Bergavägen 21	Helsingborg	2006	–	–	–	–	–	1 182	1 182	7 028 BRI		B
Vikingen 4	L Strandgatan 5	Helsingborg 1900/1983		–	–	–	–	–	800	800	8 787 BRI
Vikingen 6	Mariagatan 10	Helsingborg 1878/1984		535	159	–	–	–	–	694	6 912 BRI
Vikingen 12	L Strandgatan 7	Helsingborg 1912/1988		610	–	–	–	–	600	1 210	12 011 BRI
Motorblocket 1	Ringvägen 170	Landskrona 1972/1992		130	8 638	146	–	–	–	8 914	24 388 BRI		T
Total offi ce/retail				180 663	56 350	41 308	1 901			11 656 22 652 314 530 2 387 448

Office/retail Warehouse/industrial Development projects and land

Öresund Region										Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential		Other	Total			value sidiary Note
WAREHOUSE/INDUSTRIAL
Benkammen 6	Skogholmsgatan 5	Malmö	1994	–	–	14 289	–	–	–	14 289	44 055 BRI		B
Bjurö 12	Flintrännegatan 21	Malmö	1960/1974	1 270	–	14 132	8 033	–	330	23 765	66 265 BRI		T
Bjälken 2	Skruvgatan 4	Malmö	1962/1990	525	–	1 951	–	–	1 040	3 516	7 552 BRI		T
Bjälken 3	Skruvgatan 6-8	Malmö	1962	420	–	2 161	–	–	50	2 631	5 478 BRI
Dubbelknappen 17	Risyxegatan 6	Malmö	1989	–	–	2 380	–	–	–	2 380	7 506 BRI		B
Finngrundet 1	Bjurögatan 29	Malmö	1966	–	–	7 490	–	–	–	7 490	15 304 BRI		T
Flygfyren 1	Flygfältsvägen 1	Malmö	1950/2002	–	1 905	10 035	–	–	–	11 940	39 399 BRI		B
Gulsippan 1	Källvattengatan 5	Malmö	1988	1 954	–	11 548	–	–	491	13 993	57 721 BRI		B
Haken 3	Vinkelgatan 5	Malmö	1993	400	–	3 188	–	–	–	3 588	8 398 BRI		*/T
Hamnen 22:27	Jörgen Kockgatan 11	Malmö	1952/1976	266	–	954	–	–	–	1 220	1 324 BRI		T
Holkyxan 5	Bronsyxegatan 11	Malmö	1977/2000	–	–	6 510	–	–	–	6 510	16 716 BRI		T
Kalkgrundet 5	Borrgatan 15	Malmö	1935/1985	669	–	6 741	–	–	–	7 410	20 231 BRI		T
Kampen 25	Lantmannagatan 22-26	Malmö	1940/1990	4 365	–	23 015	1 825		– 11 562	40 767	76 681 BRI
Lillgrund 5	Borrgatan 31	Malmö	1952/1998	–	–	4 430	–	–	–	4 430	15 350 BRI
Långdansen 1	Sångleksgatan 9	Malmö	1980	–	–	1 200	–	–	–	1 200	5 381 BRI
Murman 7	Murmansgatan 124	Malmö	1959/1987	1 020	–	5 260	162	–	–	6 442	14 685 BRI		T
Murman 11	Krusegatan 21	Malmö	1960	1 687	–	6 631	–	–	77	8 395	20 109 BRI		T
Revolversvarven 9	Jägershillgatan 16	Malmö	1985	–	–	3 900	–	–	–	3 900	15 285 BRI		T
Ringspännet 1	Kantyxegatan 5	Malmö	2002	–	–	6 700	–	–	–	6 700	20 138 BRI
Sadelknappen 1	Sadelgatan 9	Malmö	1979	–	–	2 000	–	–	–	2 000	5 863 BRI
Skjutsstallslyckan 3	Lundavägen 62	Malmö	1946	–	1 391	–	1 705	–	–	3 096	5 745 BRI
Stångbettet 1	Travbanegatan 1	Malmö	1989	–	–	1 743	–	–	–	1 743	6 082 BRI
Tistlarna 9	Styrsögatan 4	Malmö	1991	1 109	–	14 452	–	–	–	15 561	41 665 BRI		B
Tågarp 16:22	Företagsvägen 14	Malmö	1968/1993	2 830	–	7 107	–	–	–	9 937	26 213 BRI
Tågarp 16:72	Företagsvägen 25	Malmö	1973/1988	240	–	1 263	798	–	–	2 301	9 651 BRI
Akvamarin 1	Diabasgatan 1	Helsingborg	2007	–	–	–	–	–	4 713	4 713	10 665 BRI
Bergakungen 1	Måndagsgatan 6	Helsingborg	1990	618	–	2 325	–	–	–	2 943	8 566 BRI
Dolken 4	Mörsaregatan 16		Helsingborg 1970/1985	360	–	1 911	725	–	–	2 996	6 960 BRI
Grusbacken 2	Makadamgatan 15	Helsingborg	2005	–	–	13 300	–	–	–	13 300	50 271 BRI
Grusbädden 2	Mogatan 2-6	Helsingborg	1989	1 095	–	8 309	–	–	–	9 404	34 318 BRI		B
Grusbädden 3	Mogatan 2-6	Helsingborg	2007	1 721	–	2 556	3 092	–	–	7 369	18 671 BRI		B
Grusplanen 3	Makadamgatan 19	Helsingborg	1990	–	–	2 735	–	–	–	2 735	8 809 BRI
Hyveljärnet 3	Lastgatan 9	Helsingborg	1990	–	–	2 276	–	–	–	2 276	7 731 BRI
Mimer 12	S Tvärgången 3	Helsingborg	1960	–	–	34	–	–	3 080	3 114		– BRI	B
Nide 2	Rundgången 10		Helsingborg 1955/1985	1 669	–	3 679	924	–	304	6 576	17 170 BRI
Topasen 1	Andesitgatan 8	Helsingborg	1989	–	–	–	8 558	–	–	8 558	37 270 BRI		B
Värjan 3	Garnisonsgatan 9	Helsingborg	1969	1 112	695	3 025	–	–	50	4 882	13 652 BRI		B

Note: *=Acquired 2008 T=Ground rent A=Lease B=Unutilized building permission

Öresund Region										Tax Mgmt.
			Build/				Square metres per type of premises			assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential	Other	Total	value sidiary Note
Annedal 9	Annedalsvägen 2	Lund	1990	–	–	1 296	– –	–	1 296	5 594 BRI
Råbyholm 5	Landerigränden 2-4	Lund	1984	3 475	–	7 908	– –	–	11 383	52 023 BRI
Välten 4	Traktorvägen 8	Lund	2003	–	–	3 100	– –	–	3 100	16 792 BRI
Välten 5	Traktorvägen 10	Lund	1974/1995	–	–	3 645	– –	–	3 645	10 073 BRI
Årdret 12	Höstbruksvägen 14	Lund	1990	–	–	2 049	– –	–	2 049	7 041 BRI
Total warehouse/industrial				26 805		3 991 217 228	25 822		0 21 697 295 543	858 403

Öresund Region

Öresund Region												Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce	Retail Warehouse Industrial Residential				Other	Total			value sidiary Note
DEVELOPMENT PROJECTS
Gustav Adolf 13	Gustav Adolfs torg 4	Malmö	1968	10 690	–	–	–	–	–	10 690	172 000 BRI
Forskaren 2:2 B	Emdalavägen 8	Lund	2003	–	–	–	–	–	–	–		– BRI
Total development projects				10 690	0	0	0	0	0	10 690	172 000
UNDEVELOPED LAND
Intäkten 5	Lantmannag 20/Ystadsg 49	Malmö	0	–	–	–	–	–	–	–	2 045 BRI		B
Moränen 1 & 2	Borrgatan 1	Malmö	0	–	–	–	–	–	–	–	2 822 BRI		B
Ringspännet 5	Kantyxegatan 1	Malmö	0	–	–	–	–	–	–	–	1 845 BRI		B
Svedjenävan 4	Stenbärsgatan 2	Malmö	0	–	–	–	–	–	–	–	934 BRI		B
Höjdpunkten 2	Lund	Lund	0	–	–	–	–	–	–	–	3 023 BRI		B
Total undeveloped land				0	0	0	0	0	0	0	10 669

Total Öresund Region 218 158 60 341 258 536 27 723 11 656 44 349 620 763 3 428 520

Note: *=Acquired 2008 T=Ground rent A=Lease B=Unutilized building permission

Office/retail Warehouse/industrial Development projects and land

Castellum's Real Estate Portfolio in the Öresund Region 31-12-2008

									Net
		Area	Rental	Rental	Ecomomic	Rental	Property	Property	operating
	No. of	thous.	value	value	occupancy	income	costs	costs	income
	properties	sq.m.	SEKm	SEK/sq.m.	rate	SEKm	SEKm	SEK/sq.m.	SEKm
Offi ce/retail
Malmö	22	127	185	1 447	90.8%	168	47	370	121
Lund	14	98	145	1 486	88.0%	128	31	313	97
Helsingborg	14	80	74	924	89.6%	66	18	223	48
Landskrona	1	9	7	742	77.5%	5	3	364	2
Total offi ce/retail	51	314	411	1 306	89.4%	367	99	315	268
Warehouse/industrial
Malmö	25	205	131	636	81.3%	106	31	149	75
Helsingborg	12	69	45	653	91.5%	41	8	120	33
Lund	5	21	17	807	97.9%	17	2	104	15
Total warehouse/industrial	42	295	193	652	85.2%	164	41	139	123
Total	93	609	604	989	88.1%	531	140	230	391
Leasing and property administration							30	48	-30
Total after leasing and property administration							170	278	361
Development projects	2	12	28	–	–	16	5	–	11
Undeveloped land	5	–	–	–	–	–	–	–	–
Total	100	621	632	–	–	547	175	–	372

Real estate portfolio by property type Real estate portfolio by municipality

Property related key ratios

	2008	2007	2006	2005	2004	2003	2002	2001	2000
Rental value, SEK/sq.m.	989	971	932	915	931	892	830	784	720
Economic occupancy rate	88.1%	87.7%	86.8%	88.1%	91.2%	90.4%	92.4%	92.7%	93.1%
Property costs, SEK/sq.m.	278	271	256	244	262	258	240	250	240
Net operating income, SEK/sq.m.	593	581	553	563	587	549	527	477	431
Number of properties	100	97	92	90	93	97	101	100	111
Lettable area, thousand sq.m.	621	602	587	600	571	566	559	529	522

	Greater Stockholm											Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential		Other	Total			value sidiary Note
OFFICE/RETAIL
Alphyddan 11	Bällstavägen 28-36	Stockholm	1964	4 363	–	–	–	–	–	4 363	16 615 BRO
Archimedes 1	Gårdsfogdevägen 2-6	Stockholm	1979	11 904	1 829	3 730	388	–	–	17 851	110 539 BRO
Betongblandaren 3	Gårdsfogdevägen 16	Stockholm	1971	3 238	–	2 873	–	–	–	6 111	33 000 BRO
Betongblandaren 12	Gårdsfogdevägen 18 B	Stockholm	1972	6 715	–	735	–	–	–	7 450	52 600 BRO
Betongblandaren 13	Adolfbergsvägen 15, 25-31	Stockholm	1989	7 678	1 086	2 020	–	–	–	10 784	69 800 BRO
Fredsfors 14	Karlsbodavägen 39-41	Stockholm	1960	12 420	–	2 277	400	–	3 650	18 747	93 400 BRO
Linaberg 15	Alpvägen 17	Stockholm	1973	3 247	–	1 123	–	–	–	4 370	18 413 BRO T
Vallonsmidet 8	Gårdsfogdevägen 1-7	Stockholm	1963/1992	13 128	2 959	6 833	–	–	–	22 920	145 800 BRO B
Ekenäs 1	Finlandsgatan 24-48	Stockholm	2003	18 048	–	–	–	–	490	18 538	235 600 BRO T
Ekenäs 2	Finlandsgatan 12-14	Stockholm	1989	4 572	–	72	–	–	–	4 644	38 000 BRO T
Ekenäs 3	Finlandsgatan 10	Stockholm	1989	3 195	310	790	–	–	–	4 295	33 000 BRO T
Ekenäs 4	Finlandsgatan 16-18	Stockholm	1991	7 458	100	435	–	–	–	7 993	67 000 BRO T
Karis 3	Finlandsgatan 62	Stockholm	1989	2 967	–	219	–	–	–	3 186	28 200 BRO T
Karis 4	Finlandsgatan 50-60	Stockholm	1985	4 606	440	202	–	–	–	5 248	46 400 BRO T
Sätesdalen 2	Norgegatan 2	Stockholm	1990/2001	10 450	500	589	–	–	–	11 539	82 572 BRO T
Getholmen 2	Måsholmstorget 1-13	Stockholm	1990	5 674	–	–	–	–	–	5 674	35 600 BRO T
Hästholmen 2	Ekholmsvägen 23	Stockholm	1985	1 220	–	–	–	–	–	1 220	8 803 BRO T
Renseriet 25	Bolidenv 12, 16/Tjurhornsgr 3	Stockholm	1910	889	–	430	80	–	80	1 479	8 754 BRO B
Renseriet 26	Bolidenv 14-16/Tjurhornsgr 3	Stockholm	1965	1 572	436	213	–	–	302	2 523	22 600 BRO
Tjurhornet 15	Huddingevägen 103-109	Stockholm	1986	20 453	575	1 843	–	–	–	22 871	188 164 BRO
Mandelblomman 15	Avestag 29/Kronofogdev 56	Stockholm	1950/1990	3 394	–	191	–	–	–	3 585	20 545 BRO
Drevern 1&3	Gråhundsvägen 82-84	Stockholm	1970/1995	1 226	2 735	–	–	–	–	3 961	24 839 BRO
Haifa 1	Tegeluddsvägen 97	Stockholm	1962	3 749	–	–	–	–	–	3 749		– BRO
Gräslöken 1	Anderstorpsvägen 20-26	Solna	1976	6 589	–	412	–	–	–	7 001	73 600 BRO
Instrumentet 1	Fabriksvägen 9	Solna	1955/2005	1 387	–	–	1 866	–	420	3 673	17 282 BRO
Råsten 4	Råstensg 1/Stureg 10		Sundbyberg 1929/2001	2 700	–	–	–	–	–	2 700	36 400 BRO
Yrket 4	Smidesvägen 10-12	Solna	1982/1984	9 216	–	993	–	–	895	11 104	89 600 BRO B
Ekplantan 4	Djupdalsvägen 1-7	Sollentuna	1990	8 572	1 301	254	–	–	–	10 127	62 000 BRO
Ekstubben 21&23	Djupdalsvägen 10-18, 30-32, 20-22	Sollentuna	1989	6 475	–	60	–	–	–	6 535	50 968 BRO
Ringpärmen 3	Bergskällavägen 30	Sollentuna	1986	–	4 236	–	–	–	–	4 236	24 000 BRO
Ringpärmen 4	Bergskällavägen 32	Sollentuna	1987	10 359	869	1 284	–	–	–	12 512	90 400 BRO
Sjöstugan 1	Sidensvansvägen 8-10	Sollentuna	1990	4 331	–	2 013	–	–	–	6 344	40 400 BRO
Altartorpet 22	Jägerhorns väg 6	Huddinge	1986	818	1 477	420	–	–	–	2 715	31 800 BRO T
Altartorpet 23	Jägerhorns väg 8	Huddinge	1987	4 221	–	–	–	–	–	4 221	32 200 BRO T
Arrendatorn 15	Jägerhorns väg 3-5	Huddinge	1987	509	860	–	–	–	–	1 369	8 843 BRO
Arrendatorn 16	Jägerhorns väg 1	Huddinge	1987	884	418	–	–	–	–	1 302	9 162 BRO
Ellipsen 3	Ellipsvägen 11	Huddinge	1993	1 723	–	1 367	–	–	–	3 090	16 910 BRO
Visiret 2 B	Smista Allé 42	Huddinge	2006	1 000	3 500	1 000	2 000	–	–	7 500	42 400 BRO
	Hammarby-Smedby 1:454 Johanneslundsvägen 2-6	Upplands	1991	8 325	–	116	–	–	18	8 459	54 800 BRO
		Väsby
	Hammarby-Smedby 1:461 Johanneslundsvägen 3-5	Upplands Väsby	1988	3 672	–	141	–	–	676	4 489	22 800 BRO
Veddesta 2:22	Nettovägen 7	Järfälla	1965/1975	–	–	508	–	–	–	508	2 330 BRO
				Note:		*=Acquired 2008	T=Ground rent		A=Lease		B=Unutilized building permission

Greater Stockholm										Tax Mgmt.
			Build/				Square metres per type of premises			assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential	Other	Total	value sidiary Note
Veddesta 2:23	Nettovägen 1	Järfälla	1971/1985	–	5 140	699	–	– –	5 839	30 200 BRO
Veddesta 2:58	Fakturavägen 5	Järfälla	1985/1995	1 256	–	–	–	– –	1 256	7 707 BRO
Sicklaön 393:4	Vikdalsvägen 50	Nacka	1990	3 574	–	469	–	– –	4 043	42 600 BRO
Sicklaön 394:5	Vikdalsgränd 10	Nacka	1991	1 834	–	80	–	– –	1 914	13 334 BRO
Total offi ce/retail				229 611	28 771	34 391	4 734		0 6 531 304 038 2 179 980

CASTELLUM ANNUAL REPORT 2008 123

Greater Stockholm												Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential		Other	Total		value sidiary Note
WAREHOUSE/INDUSTRIAL
Charkuteristen 5	Hallvägen 21	Stockholm	1955	202	–	6 775	–	–	–	6 977	19 740 BRO T
Charkuteristen 6	Slakthusgatan 20	Stockholm	1955	–	–	2 557	–	–	–	2 557	6 726 BRO T
Charkuteristen 8	Slakthusgatan 22	Stockholm	1968	–	–	5 359	–	–	–	5 359	15 533 BRO T
Linde Torp 8A	Bolidenvägen 8-10	Stockholm	1929	408	–	1 529	–	–	–	1 937	11 800 BRO B
Sandhagen 6	Slakthusgatan 9	Stockholm	1967	1 501	–	2 659	–	–	–	4 160	14 184 BRO T
Domnarvet 4	Domnarvsgatan 27-29	Stockholm	1987	1 636	–	–	6 396	–	–	8 032	34 332 BRO T
Domnarvet 27	Fagerstagatan 19 B	Stockholm	1982	–	–	–	1 950	–	–	1 950	8 962 BRO T
Domnarvet 39	Gunnebogatan 24-26	Stockholm	1989	1 209	–	1 417	–	–	–	2 626	15 217 BRO T
Mandelblomman 16	Kronofogdevägen 62	Stockholm	1974	885	–	3 073	–	–	–	3 958	12 993 BRO
Getholmen 1	Ekholmsvägen 32-36	Stockholm	1982	4 569	–	–	3 412	–	–	7 981	44 175 BRO T
Stensätra 7	Strömsätravägen 16	Stockholm	1974	958	–	4 330	–	–	–	5 288	19 200 BRO T
Dagskiftet 4	Elektravägen 10	Stockholm	1945	90	–	1 619	–	–	–	1 709	4 930 BRO T
Elektra 3	Västbergavägen 25	Stockholm	1946	907	235	5 820	–	–	–	6 962	20 781 BRO
Godståget 1	Transportvägen 7-9	Stockholm	1985	2 169	–	10 789	–	–	–	12 958	77 503 BRO
Lagerhallen 2	Brunnbyv 2-4/Partihandelsv 27-45	Stockholm	1975	2 236	–	7 560	–	–	3 567	13 363	47 466 BRO T
Torngluggen 1-3	Bällstav 159/Tornväktargr 1-9	Stockholm	1963/1983	–	–	1 900	–	–	–	1 900	6 541 BRO T
Tornluckan 1	Tornväktargränd 6	Stockholm	1960	–	–	810	–	–	–	810	3 466 BRO T
Elementet 4	Bäckvägen 18	Sollentuna	1960	595	200	6 700	–	–	–	7 495	29 896 BRO B
Tidskriften 2	Kuskvägen 2	Sollentuna	1976	1 108	3 650	5 173	–	–	–	9 931	70 322 BRO
Rosersberg 2:21-22	Rosersbergsvägen 43-45	Sigtuna	1990	–	–	2 126	–	–	–	2 126	7 799 BRO
Rosersberg 11:12	Tallbacksgatan 6-12	Sigtuna	1988	1 121	–	17 005	–	–	–	18 126	59 219 BRO
Rosersberg 11:34	Tallbacksgatan 14	Sigtuna	1987/1989	–	–	5 930	–	–	–	5 930	22 014 BRO
Rosersberg 11:35	Tallbacksgatan 18	Sigtuna	1990	–	–	8 139	–	–	–	8 139	31 183 BRO
Veddesta 1:9	Fakturavägen 2	Järfälla	1965	–	–	–	806	–	–	806	4 954 BRO
Veddesta 2:17	Nettovägen 9	Järfälla	1968	120	–	1 226	–	–	–	1 346	5 452 BRO
Veddesta 2:19	Girovägen 9	Järfälla	1964	–	–	2 556	–	–	–	2 556	14 464 BRO
Veddesta 2:21	Nettovägen 5	Järfälla	1965/1988	343	–	1 562	–	–	–	1 905	8 407 BRO
Veddesta 2:26	Nettovägen 11	Järfälla	1968	775	190	1 938	–	–	–	2 903	12 726 BRO
Veddesta 2:50	Kontov 7/Veddestav 23-25	Järfälla	1964	611	–	3 007	700	–	–	4 318	24 741 BRO B
Veddesta 2:60	Fakturavägen 4	Järfälla	1987	376	–	–	753	–	–	1 129	5 872 BRO T
Veddesta 2:77	Fakturavägen 1-3	Järfälla	1994/1997	2 267	–	–	3 154	–	–	5 421	36 600 BRO
Hantverkaren 2	Hantverkarvägen 9	Botkyrka	1976/1979	–	–	–	5 790	–	–	5 790	20 628 BRO
Kumla Hage 3	Kumla Gårdsväg 24 A-B	Botkyrka	1985	–	690	1 200	–	–	–	1 890	6 965 BRO
Kumla Hage 13	Kumla Gårdsväg 24 C	Botkyrka	1990	–	–	1 630	–	–	–	1 630	7 066 BRO
Mästaren 1	Kumla Gårdsväg 21	Botkyrka	1983/1986	360	–	9 820	10 814	–	–	20 994	69 290 BRO
Visiret 2	Smista Allé 44	Huddinge	2004	–	–	–	2 135	–	–	2 135	9 201 BRO
Total warehouse/industrial				24 446		4 965 124 209	35 910			0 3 567 193 097	810 348

DEVELOPMENT PROJECTS

Betongblandaren 10	Archimedesv 1-3/ Gårdsfogdev 8-10	Stockholm	1975/1996	2 221	–	11 683	–	–	980	14 884	43 200 BRO
Vagnhallen 19	Jämtlandsgatan 131	Stockholm	1963/1974	–	–	5 460	–	–	–	5 460	15 961 BRO T
Visiret 2 C	Smista Allé 46-48	Huddinge	2008	5 800	–	–	–	–	–	5 800		– BRO

Greater Stockholm										Tax Mgmt.
			Build/				Square metres per type of premises			assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential	Other	Total		value sidiary Note
Visiret 2 D	Smista Allé	Huddinge	–	–	–	–	– –	7 500	7 500		– BRO
Visiret 3 E	Smista Allé	Huddinge	2008	4 450	–	–	– –	–	4 450		– BRO
Total development projects				12 471	0	17 143	0	0 8 480	38 094	59 161
UNDEVELOPED LAND
Linde Torp 8	Bolidenv 2-6/Huddingev 101	Stockholm	–	–	–	–	– –	–	–	5 200 BRO B
Rankan 3-4	Sollentunaholmsvägen 1-7	Sollentuna	–	–	–	–	– –	–	–	57 000 BRO B
Smista Park	Smista Allé	Huddinge	–	–	–	–	– –	–	–	28 459 BRO B
Saltmossen 3	Kumla Gårdsväg 21	Botkyrka	–	–	–	–	– –	–	–	7 400 BRO B
Total undeveloped land				0	0	0	0 0	0	0	98 059
Total Greater Stockholm				266 528		33 736 175 743	40 644			0 18 578 535 229 3 147 548

Castellum's Real Estate Portfolio in Greater Stockholm 31-12-2008

									Net
		Area	Rental	Rental	Economic	Rental	Property	Property	operating
	No. of	thous.	value	value	occupancy	income	costs	costs	income
	properties	sq.m.	SEKm	SEK/sq.m.	rate	SEKm	SEKm	SEK/sq.m.	SEKm
Offi ce/retail
Mariehäll in Bromma	8	93	110	1 189	83.9%	93	26	272	67
Elektronikbyn in Kista	7	55	92	1 661	69.6%	64	25	453	39
Skärholmen/Kungens kurva	8	27	37	1 369	97.5%	36	7	278	29
Solna	4	24	39	1 594	84.4%	33	7	270	26
Sollentuna	5	40	47	1 174	84.9%	40	12	298	28
Rest of Greater Stockholm	13	65	78	1 201	85.5%	66	20	314	46
Total offi ce/retail	45	304	403	1 324	82.4%	332	97	318	235
Warehouse/industrial
Veddesta/Lunda	12	37	30	826	89.5%	27	9	251	18
Rosersberg	4	34	25	725	94.3%	23	5	147	18
Sollentuna	2	18	19	1 104	85.5%	16	3	179	13
Johanneshov	5	21	19	907	74.5%	14	5	262	9
Skärholmen/Kungens kurva	3	15	16	1 013	83.8%	13	4	272	9
Rest of Greater Stockholm	10	68	57	833	91.0%	53	16	219	37
Total warehouse/industrial	36	193	166	859	88.0%	146	42	218	104
Total	81	497	569	1 144	84.0%	478	139	279	339
Leasing and property administration							32	64	-32
Total after leasing and property administration							171	343	307
Development projects	5	38	14	–	–	–	1	–	-1
Undeveloped land	4	–	–	–	–	–	–	–	–
Total	90	535	583	–	–	478	172	–	306

Real estate portfolio by property type Real estate portfolio by municipality

Property related key ratios

	2008	2007	2006	2005	2004	2003	2002	2001	2000
Rental value, SEK/sq.m.	1,144	1,090	1,038	999	1,031	1,044	1,032	935	892
Economic occupancy rate	84.0%	81.2%	81.3%	83.1%	84.5%	87.0%	89.1%	94.1%	92.5%
Property costs, SEK/sq.m.	343	325	338	315	339	332	326	336	319
Net operating income, SEK/sq.m.	618	560	506	515	532	576	594	544	507
Number of properties	90	87	80	73	70	70	70	71	62
Lettable area, thousand sq.m.	535	517	501	442	422	403	404	405	355

Mälardalen			Build/				Square metres per type of premises				assessment Sub	Tax Mgmt.
Name of property	Address	Municipality	Refurb. year	Offi ce		Retail Warehouse Industrial Residential			Other	Total	value sidiary Note
OFFICE/RETAIL
Boländerna 8:6	Knivstagatan 6	Uppsala	1990	2 730	–	–	–	–	–	2 730	12 561 ASP		*
Boländerna 9:1	Märstagatan 2	Uppsala	1946/2005	1 738	–	537	–	–	–	2 275		– ASP	*
Boländerna 30:2 B	Verkstadsgatan 11	Uppsala	2002	2 134	–	–	–	–	–	2 134	12 846 ASP
Boländerna 30:2 D	Verkstadsgatan 9	Uppsala	1987	–	–	2 500	–	–	–	2 500	6 815 ASP		B
Boländerna 35:1	Bolandsgatan 18	Uppsala	1975	150	5 555	–	4 258	–	–	9 963	41 847 ASP		B
Boländerna 35:2	Bolandsgatan 20	Uppsala	1981	–	4 118	–	–	–	–	4 118	35 800 ASP
Dragarbrunn 16:2	Dragarbrunnsgatan 24-30	Uppsala	1963	4 618	1 637	243	–	–	–	6 498	72 980 ASP
Kungsängen 24:3	Kungsgatan 95	Uppsala	1998	729	5 750	–	–	–	–	6 479	45 800 ASP
Kungsängen 29:1	Kungsgatan 70	Uppsala	1985	2 302	1 948	160	–	–	–	4 410	21 400 ASP
Kungsängen 35:3	Kungsgatan 76	Uppsala	2001	3 060	–	–	–	–	–	3 060	21 500 ASP
Kvarngärdet 64:3	Sportfältsvägen 3	Uppsala	1991	1 965	–	–	–	–	–	1 965	13 225 ASP
Årsta 36:7	Hanselligatan 6	Uppsala	1986	901	–	1 144	–	–	181	2 226	9 416 ASP
Årsta 67:1	Stålgatan 8-12	Uppsala	1988	–	9 401	823	–	–	–	10 224	52 848 ASP
Årsta 72:3	Svederusgatan 1-4	Uppsala	1990	1 043	1 792	5 295	–	–	–	8 130	33 561 ASP
Årsta 74:1	Fyrislundsgatan 68	Uppsala	1985	–	6 956	–	–	–	–	6 956	37 901 ASP
Årsta 74:3	Axel Johanssons gata 4-6	Uppsala	1990	13 608	–	–	–	–	–	13 608	101 600 ASP
Basen 10	Fridhemsgatan 2-4	Örebro	1900/1990	6 149	–	126	–	–	–	6 275	40 800 ASP
Borgaren 1	Fabriksgatan 1	Örebro	1969/2001	6 533	466	1 371	–	–	–	8 370	53 271 ASP		*
Järnmalmen 1	Osmundgatan 10	Örebro	1967/1995	2 655	–	8 675	–	–	–	11 330	19 563 ASP		B
Konstruktören 11	Söderleden 14	Örebro	1987	1 715	–	–	–	–	–	1 715	6 883 ASP
Kontrollanten 9	Åbyvägen 3	Örebro	1992	2 412	–	2 430	–	–	–	4 842	13 268 ASP
Lagerchefen 3	Aspholmsvägen 3	Örebro	1957/1985	–	1 900	–	–	–	–	1 900	9 519 ASP		B
Lantmannen 7	Boställsvägen 10	Örebro	1985	310	2 050	215	–	–	–	2 575	10 105 ASP
Motormannen 1	Radiatorvägen 1	Örebro	1966	208	3 474	495	–	–	–	4 177	16 185 ASP
Röda rummet	Radiatorvägen 17	Örebro	2000	3 405	–	–	–	–	–	3 405	20 470 ASP
Rörläggaren 1	Aspholmsvägen 4	Örebro	1963/1992	–	–	–	5 180	–	–	5 180	15 177 ASP		B
Rörmokaren 5	Elementvägen 1	Örebro	1984	1 270	1 023	110	–	–	–	2 403	10 061 ASP
Signalen 6	Propellervägen 1	Örebro	1991	1 760	–	–	–	–	–	1 760	10 866 ASP
Stinsen 18	Fabriksgatan 18-24	Örebro	1983/2003	11 923	–	189	–	–	–	12 112	90 400 ASP		*/B
Svetsaren 4	Elementvägen 12	Örebro	1976/1984	–	1 790	2 590	–	–	–	4 380	12 268 ASP
Svetsaren 5	Elementvägen 14	Örebro	1977/1988	2 785	–	169	–	–	–	2 954	10 148 ASP
Svetsaren 6	Radiatorvägen 14	Örebro	1962	3 700	–	–	–	–	–	3 700	23 930 ASP		B
Svetsaren 7	Elementvägen 16	Örebro	1960/1983	675	–	180	–	–	–	855	2 802 ASP
Svetsaren 8	Elementvägen 4	Örebro	1977	570	3 060	220	–	–	–	3 850	11 693 ASP		T
Telemontören 1	Nastagatan 2	Örebro	1993	3 611	–	2 882	–	–	–	6 493	7 579 ASP		B
Tryckeriet 2	Stortorget 8	Örebro	1984/1999	1 448	1 339	–	–	–	–	2 787	26 562 ASP		*
Tryckeriet 13	Kungsgatan 14/Nygatan 23, 25 Örebro		1929/2001	6 419	452	–	–	–	–	6 871	59 400 ASP		*
Tågmästaren 25	Fabriksgatan 54	Örebro	1986	5 848	365	2 106	–	–	–	8 319	31 800 ASP		*/B
Vindrutan 1	Västhagagatan 3	Örebro	1992	–	1 230	85	–	–	–	1 315	7 823 ASP
Virkeshandlaren 7	Radiatorvägen 11	Örebro	1970/1987	5 431	330	427	–	–	–	6 188	24 601 ASP
Virkeshandlaren 10	Radiatorvägen 13-15	Örebro	1979	2 654	3 440	1 080	–	–	–	7 174	24 673 ASP
Ånsta 20:117	Aspholmsvägen 9	Örebro	1990	743	–	–	–	–	–	743	2 763 ASP
Ölstånkan 11	Järntorgsg 1/Östra Bangatan 24 Örebro		1939/2003	3 940	–	580	–	–	–	4 520	25 400 ASP		*

Note: *=Acquired 2008 T=Ground rent A=Lease B=Unutilized building permission

Mälardalen										Tax Mgmt.
			Build/				Square metres per type of premises			assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential	Other	Total	value sidiary Note
Ölstånkan 14	Olaigatan 2/Östra Bangatan 28 Örebro		1929	2 106	–	–	– –	–	2 106	16 086 ASP	*
Ölstånkan 15	Olaigatan 4-6	Örebro	1975/2003	3 193	–	–	– –	–	3 193	18 600 ASP	*
Blästerugnen 2	Kokillgatan 7	Västerås	1991	–	1 952	–	– –	–	1 952	7 737 ASP	T
Dagsländan 11	Jonasborgsvägen 26	Västerås	1990	1 106	–	–	– –	–	1 106	4 086 ASP	T
Degeln 1	Kokillgatan 1-3	Västerås	1984	3 422	1 050	2 022	– –	–	6 494	22 703 ASP	T
Elenergin 1	Strömledningsgatan 13	Västerås	1976	–	4 928	–	265 –	–	5 193	19 115 ASP	*/B
Elledningen 4	Tunbytorpsgatan 31	Västerås	1991	3 620	–	–	– –	–	3 620	16 279 ASP
Fallhammaren 1	Fallhammargatan 3	Västerås	1989	3 664	–	741	– –	–	4 405	16 064 ASP
Friledningen 13	Tunbytorpsgatan 10	Västerås	1978	890	–	940	– –	–	1 830	7 195 ASP	T/B
Gjutjärnet 7	Gjutjärnsgatan 5	Västerås	1989	–	2 181	370	– –	–	2 551	7 150 ASP
Hjulsmeden 1	Gjutjärnsgatan 8	Västerås	1990	–	1 351	632	– –	–	1 983	6 894 ASP
Kokillen 1	Kokillgatan 2	Västerås	1988	879	981	1 145	– –	–	3 005	8 720 ASP	T
Kopparlunden	Kopparlunden	Västerås	1890/2000	19 748	–	–	– –	–	19 748	77 414 ASP
Kraftfältet 5	Strömledningsgatan 1	Västerås	1991	325	1 413	2 177	– –	–	3 915	12 655 ASP
Kyrkobacksgärdet 9	Arosvägen 32	Västerås	1920/1986	–	377	–	– 140	–	517	2 362 ASP
Köpmannen 1	Kranbyggargatan 1	Västerås	1984	–	1 403	–	– –	–	1 403	4 536 ASP

Svetsaren 6 "Svarta Borgen", Örebro Tågmästaren 25, Örebro ågmästaren 30 31

Office/retail Warehouse/industrial Development projects and land

Mälardalen												Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce		Retail Warehouse Industrial Residential			Other	Total		value sidiary Note
Köpmannen 3	Kranbyggargatan 3	Västerås	1982	–	2 370	–	–	–	–	2 370	9 160 ASP		T
Ringborren 8&16	Tallmätargatan 1	Västerås	1956/1988	1 508	355	1 716	–	–	–	3 579	11 832 ASP
Tunbytorp 1	Strömledningsgatan 1	Västerås	1965	–	5 869	–	–	–	–	5 869	16 602 ASP		T
Tunbytorp 7	Strömledningsgatan 3	Västerås	1965	7 962	–	–	–	–	–	7 962	13 929 ASP		T
Tunbytorp 19	Tunbytorpsgatan 2 A	Västerås	1990	1 982	–	–	–	–	–	1 982	6 208 ASP
Vikingatiden 9	Brandthovdagatan 17 A	Västerås	2004	810	–	–	–	–	–	810	1 762 ASP
Märsta 1:219	Raisogatan 1-27	Sigtuna	1993	2 784	–	–	–	883	–	3 667	25 459 ASP		B
Märsta 16:3	Maskingatan 3	Sigtuna	1992	2 921	–	–	–	–	–	2 921	12 400 ASP
Total offi ce/retail				168 062	82 306	44 375	9 703	1 023			181 305 650 1 453 058
WAREHOUSE/INDUSTRIAL
Barkborren 3	Barkborregatan 3	Västerås	1970/1989	–	–	–	2 950	–	–	2 950	6 607 ASP		T
Elkraften 4	Tunbytorpsgatan 16	Västerås	1976	–	–	–	946	–	–	946	3 044 ASP		T
Elkraften 6	Elledningsgatan 4	Västerås	1981	–	–	–	1 150	–	–	1 150	1 983 ASP		*/T
Elkraften 7	Enerigatan 3 A	Västerås	1976	–	–	–	1 320	–	–	1 320	3 325 ASP		T
Elledningen 1	Tunbytorpsgatan 31	Västerås	1982	–	–	–	1 910	–	–	1 910	5 394 ASP		T
Friledningen 8	Tunbytorpsgatan 6	Västerås	1971	–	–	–	2 368	–	–	2 368	6 026 ASP		T
Friledningen 9	Tunbytorpsgatan 8	Västerås	1968	–	–	–	5 152	–	–	5 152	15 316 ASP
Fältmätaren 29	Fältmätargatan 9	Västerås	1960	310	–	–	2 535	–	–	2 845	3 687 ASP		T
Jordlinan 2	Stenbygatan 6	Västerås	1991	–	2 450	5 464	–	–	–	7 914	19 603 ASP		B
Järnåldern 6	Brandthovdagatan 11	Västerås	1982	882	–	372	842	–	–	2 096	5 743 ASP		*/T
Krista 1	Saltängsvägen 59	Västerås	2005	–	–	–	2 980	–	–	2 980	13 078 ASP
Köpmannen 8	Lundby Gårdsgata 4	Västerås	1988	210	–	–	2 390	–	–	2 600	8 208 ASP
Ledningstråden 1	Strömledningsgatan 1	Västerås	1967	–	–	–	6 072	–	–	6 072	15 736 ASP		T
Ledningstråden 6	Tunbytorpsgatan 23	Västerås	1970	–	–	–	620	–	–	620	2 412 ASP		T
Lufthammaren 1	Ånghammargatan 2-4	Västerås	1977	4 514	–	3 029	–	–	–	7 543	22 125 ASP		T
Tunbytorp 2	Tunbytorpsgatan 4	Västerås	1970	–	–	–	4 020	–	–	4 020	9 117 ASP
Tunbytorp 8	Friledningsgatan 3 A	Västerås	1970	–	–	–	830	–	–	830	2 669 ASP
Tunbytorp 10	Tunbytorpsgatan 23	Västerås	1978	–	–	–	7 496	–	–	7 496	15 439 ASP
Voltmätaren 3	Lågspänningsgatan 7	Västerås	1990	–	–	–	760	–	–	760	2 080 ASP
Ånghammaren 2	Ånghammargatan 1-9	Västerås	1972/1994	4 414	100	8 935	–	–	–	13 449	25 119 ASP		T
Bleckslagaren 6	Handelsgatan 1	Örebro	1982	–	–	–	4 370	–	–	4 370	12 269 ASP		*/B
Bleckslagarn 8	Vattenverksgatan 8	Örebro	1978/2001	–	–	–	4 750	–	–	4 750	15 968 ASP		B
Chauffören 2	Stuvargatan 3	Örebro	1991	498	–	6 602	–	–	–	7 100	20 147 ASP
Chauffören 3	Pikullagatan 9	Örebro	1991	–	–	–	1 577	–	–	1 577	4 613 ASP
Däcket 1	Dialoggatan 14	Örebro	1991	–	–	1 618	–	–	–	1 618	5 396 ASP		*
Grosshandlaren 2	Nastagatan 6-8	Örebro	1977	–	1 955	19 720	–	–	–	21 675	53 577 ASP		B
Gällersta-Gryt 4:9	Gällerstavägen	Örebro	1969	–	–	–	11 625	–	–	11 625	20 247 ASP
Konstruktören 9	Söderleden 10	Örebro	1987	–	–	1 260	–	–	–	1 260	4 212 ASP
Konstruktören 10	Söderleden 12	Örebro	1987	–	–	–	3 665	–	–	3 665	11 886 ASP
Radion 2	Radiogatan 1	Kumla	1991/1995	1 250	–	2 850	–	–	–	4 100	7 597 ASP
Rörläggaren 2	Aspholmsvägen 6	Örebro	1984	–	–	2 955	–	–	–	2 955	10 098 ASP
Rörmokaren 1	Elementvägen 13-15	Örebro	1963/1986	110	–	–	3 735	–	–	3 845	11 568 ASP
Ånsta 20:148	Berglunda 208	Örebro	1971/1999	–	–	4 205	–	–	–	4 205	1 703 ASP		B

Note: *=Acquired 2008 T=Ground rent A=Lease B=Unutilized building permission

Mälardalen

Mälardalen										Tax Mgmt.
			Build/				Square metres per type of premises			assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential	Other	Total	value sidiary Note
Boländerna 8:11	Bergsbrunnagatan 15	Uppsala	1975	430	–	6 200	–	– –	6 630	19 187 ASP	*
Husbyborg 1:83	Gamla Börjevägen 2-16	Uppsala	1972/1988	–	218	747	5 755	– –	6 720	23 217 ASP	*
Årsta 36:2	Möllersvärdsgatan 12	Uppsala	1978/1989	1 157	–	1 434	–	– –	2 591	11 595 ASP
Årsta 38:1	Möllersvärdsgatan 5	Uppsala	1979	–	–	–	2 955	– –	2 955	10 140 ASP
Broby 11:2	Östra Bangatan 6	Sigtuna	1990	486	–	2 213	–	– –	2 699	12 318 ASP	B
Broby 11:8	Östra Bangatan 14	Sigtuna	1989	248	–	583	–	– –	831	2 764 ASP
Märsta 16:2	Maskingatan 5-7	Sigtuna	1989	600	–	1 013	–	– –	1 613	5 507 ASP
Märsta 17:6	Maskingatan 8	Sigtuna	1970/1988	751	–	–	1 981	– –	2 732	7 972 ASP
Märsta 21:51	Elkraftsgatan 11-13	Sigtuna	1990	–	–	–	2 200	– –	2 200	9 043 ASP
Total warehouse/industrial				15 860	4 723	69 200	86 954	0	0 176 737	467 735

Mälardalen										Tax Mgmt.
			Build/				Square metres per type of premises			assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential	Other	Total	value sidiary Note
DEVELOPMENT PROJECTS
Boländerna 28:3	Verkstadsgatan 9	Uppsala	1981	–	–	–	–	– 1	1	2 201 ASP	B
Boländerna 30:2	Verkstadsgatan 9	Uppsala	1971	–	21 024	500	–	– –	21 524	103 383 ASP
Boländerna 30:2 C	Verkstadsgatan 17	Uppsala	–	–	–	–	–	– –	–	5 495 ASP	B
Dragarbrunn 20:2	Kungsg/St Persg	Uppsala	1963	2 720	626	–	–	– –	3 346	– ASP
Verkstaden 14	Kopparlunden	Västerås	1890	–	–	–	–	– 8 130	8 130	26 171 ASP	B
Inköparen 1	Södra Infarten	Örebro	2008	432	3 140	–	–	– –	3 572	– ASP	B
Total development projects				3 152	24 790	500	0	0 8 131	36 573	137 250

UNDEVELOPED LAND
Försäljaren 3	Nastagatan 7	Örebro	–	–	–	–	–	–	–	–	712 ASP B
Högspänningen 1	Lågspänningsgatan 8	Västerås	–	–	–	–	–	–	–	–	3 901 ASP B
Total undeveloped land				0	0	0	0	0	0	0	4 613

36 37 Årsta 74:3, Uppsala Dragarbrunn 16:2, Uppsala

Castellum's Real Estate Portfolio in Mälardalen 31-12-2008

									Net
		Area	Rental	Rental	Ecomomic	Rental	Property	Property	operating
	No. of	thous.	value	value	occupancy	income	costs	costs	income
	properties	sq.m.	SEKm	SEK/sq.m.	rate	SEKm	SEKm	SEK/sq.m.	SEKm
Offi ce/retail
Uppsala	16	87	103	1 186	93.3%	97	21	241	76
Örebro	29	132	120	909	93.8%	112	36	275	76
Västerås	20	80	67	841	89.5%	60	17	219	43
Sigtuna	2	7	7	1 016	91.4%	6	2	256	4
Total offi ce/retail	67	306	297	973	92.6%	275	76	250	199
Warehouse/industrial
Västerås	20	75	49	649	90.7%	44	13	175	31
Örebro	13	73	44	603	98.3%	43	10	140	33
Uppsala	4	19	18	957	99.1%	18	4	207	14
Sigtuna	5	10	6	642	78.2%	5	2	145	3
Total warehouse/industrial	42	177	117	662	94.1%	110	29	162	81
Total	109	483	414	859	93.0%	385	105	218	280
Leasing and property administration							24	50	-24
Total after leasing and property administration							129	268	256
Development projects	6	36	26	–	–	21	11	–	10
Undeveloped land	2	-	-	–	–	–	–	–	–
Total	117	519	440	–	–	406	140	–	266

Property related key ratios

	2008	2007	2006	2005	2004	2003	2002	2001	2000
Rental value, SEK/sq.m.	859	807	778	766	794	762	737	705	667
Economic occupancy rate	93.0%	89.3%	88.4%	87.5%	87.8%	91.0%	90.3%	91.9%	91.1%
Property costs, SEK/sq.m.	268	247	258	244	262	241	231	226	224
Net operating income, SEK/sq.m.	531	474	429	427	435	453	435	422	383
Number of properties	117	101	91	86	75	71	71	72	81
Lettable area, thousand sq.m.	519	432	410	384	338	333	335	333	304

Eastern Götaland				Square metres per type of premises								Tax Mgmt.
			Build/								assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce		Retail Warehouse Industrial Residential			Other	Total			value sidiary Note
OFFICE/RETAIL
Droskan 12	Slottsgatan 14	Jönköping	1990	9 370	–	–	–	–	–	9 370	63 800 COR
Elektronen 1	Datorgatan 6	Jönköping	2000	1 860	–	–	–	–	–	1 860	5 284 COR */B
Hotellet 8	V Storgatan 9-13	Jönköping	1963/1999	3 000	15 544	433	–	–	–	18 977	136 000 COR
Vagnmakaren 7	Hästhovsvägen 2	Jönköping	1983/2001	–	8 172	–	–	–	–	8 172	42 600 COR
Valutan 11	Kompanigatan 1-2	Jönköping	1992/2001	2 976	2 030	211	–	–	80	5 297	46 400 COR
Vattenpasset 6	Kungsängsvägen 7	Jönköping	1971/1990	1 667	–	482	–	–	–	2 149	6 270 COR
Vilan 7	Huskvarnavägen 58-64	Jönköping	1955/1999	9 710	565	4 371	–	–	–	14 646	63 965 COR
Visionen 1	Bataljonsgatan 10	Jönköping	1996/1995	8 905	–	423	–	–	701	10 029	33 908 COR
Vågskålen 3	Huskvarnavägen 40	Jönköping	1983	6 754	387	8 556	–	–	–	15 697	30 529 COR B
Vägporten 5	Vasavägen 4	Jönköping	1955/2004	251	2 076	–	–	–	–	2 327	11 112 COR
Ögongloben 5	Gräshagsgatan 11	Jönköping	1961	3 512	–	–	–	–	–	3 512	5 094 COR
Örontofsen 5	Granitvägen 7,9	Jönköping	1976	996	900	3 698	–	–	–	5 594	17 755 COR
Almen 9	Malmövägen 12-14	Värnamo	1957/1989	1 082	11 309	–	–	–	40	12 431	47 676 COR
Bodarna 2	Myntgatan 8, 10	Värnamo	1934/1991	1 329	373	104	–	–	–	1 806	10 497 COR
Bokbindaren 20	Västbovägen 56	Värnamo	1975/1991	2 167	–	394	–	–	–	2 561	6 183 COR
Drabanten 1	Nydalavägen 16	Värnamo	1940/1986	230	1 028	–	–	–	–	1 258	3 034 COR
Gamla Gåsen 4	Boagatan 1	Värnamo	1907	–	–	–	–	–	200	200		941 COR B
Gillet 1	Flanaden 3-5	Värnamo	1974	2 410	925	103	–	1 701	–	5 139	26 887 COR
Golvläggaren 2	Silkesvägen 30	Värnamo	1991	740	–	–	–	–	–	740	2 066 COR
Golvläggaren 3	Silkesvägen 30	Värnamo	2008	–	8 800	–	–	–	–	8 800	3 582 COR
Jungfrun 11	Köpmansg 3-7/Luddög 1	Värnamo	2001/1982	329	4 022	–	–	599	–	4 950	24 917 COR
Karpen 3	Jönköpingsvägen 105-107	Värnamo	1956/1990	525	835	405	888	–	–	2 653	5 053 COR
Knekten 15	Jönköpingsvägen 21	Värnamo	1971/1989	424	559	31	240	–	6	1 260	4 597 COR
Lejonet 11	Lasarettsgatan 1	Värnamo	1987/1987	4 122	855	226	–	89	–	5 292	26 843 COR
Linden 3	Växjövägen 24-26	Värnamo	1960/1989	2 375	300	2 499	–	–	–	5 174	12 984 COR
Ljuset 8	Nydalavägen 1-9	Värnamo	2003	–	2 590	–	–	–	–	2 590	11 709 COR
Mon 13	Karlsdalsgatan 2	Värnamo	1983	1 986	–	–	–	–	–	1 986	10 252 COR
Plattläggaren 1	Silkesvägen 18	Värnamo	1989	1 080	–	–	–	–	–	1 080	2 471 COR *
Rågen 1	Expovägen 6	Värnamo	1965/1990	2 847	–	2 314	–	–	–	5 161	10 479 COR
Vindruvan 15	Storgatsbacken 12	Värnamo	1989	904	1 110	–	–	–	–	2 014	9 091 COR
Vindruvan 4	Storgatsb 14-20/Myntg 13 m fl Värnamo		1982	1 163	11 047	30	–	2 163	5	14 408	62 888 COR
Värnamo 14:11	Jönköpingsvägen 41-43	Värnamo	1917/1982	2 209	–	1 972	–	–	–	4 181	12 965 COR
Bagaren 10	Ljungadalsg 2/Hejareg 10	Växjö	1987	27 093	–	3 835	–	–	–	30 928	140 661 COR B
Båken 1	Systratorpsvägen 16	Växjö	1983	1 410	–	25	–	–	–	1 435	4 243 COR
Garvaren 4	Hjalmar Petris väg 32	Växjö	1981	2 487	–	20	–	–	–	2 507	7 759 COR B
Glasmästaren 1	Arabygatan 80	Växjö	1988	6 202	886	187	–	–	549	7 824	29 600 COR
Nordstjärnan 1	Kronobergsgatan 18-20	Växjö	1971/2000	4 633	1 009	–	–	–	23	5 665	44 800 COR
Plåtslagaren 4	Verkstadsgatan 5	Växjö	1967/1988	2 026	780	853	1 893	–	50	5 602	13 389 COR
Rimfrosten 1	Solängsvägen 4	Växjö	1972	–	6 728	1 922	–	–	–	8 650	24 200 COR B
Segerstad 4	Segerstadsvägen 7	Växjö	1990	910	–	–	–	–	–	910		– COR
Sotaren 4	Arabygatan 82	Växjö	1992	2 318	457	227	–	–	–	3 002	15 246 COR
Svea 8	Lineborgsplan 3	Växjö	1982	2 061	–	–	–	–	–	2 061	11 891 COR

Note: *=Acquired 2008 T=Ground rent A=Lease B=Unutilized building permission

Eastern Götaland

Eastern Götaland												Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub value sidiary Note
Name of property	Address	Municipality	Refurb. year	Offi ce		Retail Warehouse Industrial Residential			Other	Total
Unaman 8	Klosterg 6/Kungsg 3/ Sandgärdsg 6-8	Växjö	1969	1 180	3 707	300	–	422	–	5 609	28 620 COR
Ödman 15	Storgatan 29	Växjö	1972	2 380	1 941	–	–	–	–	4 321	40 200 COR
Idémannen 1	Teknikringen 16	Linköping	1990	580	–	–	–	–	–	580	3 611 COR
Idémannen 2, Collegium Teknikringen 7		Linköping	1989	13 308	4 135	–	–	–	271	17 714	90 800 COR
Idémannen 2, Datalinjen Datalinjen 1		Linköping	1989/1994	1 364	–	–	–	–	227	1 591	8 903 COR
Idémannen 2, Teknikringen	Teknikringen 1 A-F	Linköping	1984/1996	6 652	–	–	–	–	48	6 700	37 795 COR
Idémannen 2, Vita Huset Universitetsvägen 14		Linköping	2002	7 697	–	–	–	–	531	8 228	87 200 COR B
Total offi ce/retail				157 224	93 070	33 621	3 021			4 974 2 731 294 641 1 346 750
WAREHOUSE/INDUSTRIAL
Elefanten 3	Rådjursvägen 6	Växjö	1988	–	–	1 074	1 244	–	–	2 318	5 863 COR
Illern 5	Isbjörnsvägen 11-13	Växjö	1987	985	–	192	969	–	–	2 146	7 460 COR
Isbjörnen 4	Isbjörnsvägen 6	Växjö	1993	–	–	–	10 933	–	–	10 933	31 067 COR
Sjömärket 3	Annavägen 3	Växjö	1989	1 828	341	763	6 523	–	–	9 455	31 700 COR B
Snickaren 12	Smedjegatan 10,20	Växjö	1976/1989	2 473	4 218	16 253	–	–	143	23 087	53 099 COR B
Draken 1	Ingelundsvägen 1	Värnamo	1968/1988	–	–	1 750	–	–	–	1 750	3 393 COR B
Flundran 4	Runemovägen 1	Värnamo	1963/1992	–	–	4 096	7 497	–	–	11 593	15 010 COR
Krukmakaren 6	Silkesvägen 2	Värnamo	1961	340	140	748	610	–	–	1 838	2 744 COR
Mattläggaren 1	Silkesvägen 24	Värnamo	1997	–	–	–	2 700	–	–	2 700	7 025 COR */B
Mattläggaren 2	Silkesvägen 24	Värnamo	1997	–	–	3 100	–	–	–	3 100	6 310 COR
Posten 4	Postgatan 3-5	Värnamo	1929	378	810	321	2 516	159	–	4 184	10 555 COR
Rödspättan 1	Runemovägen 10	Värnamo	1973	645	–	4 060	–	–	–	4 705	7 786 COR
Rödspättan 4	Runemovägen 4	Värnamo	1980	–	–	2 960	–	–	–	2 960	4 516 COR
Sandskäddan 4	Margretelundsvägen 7	Värnamo	1982	–	–	2 780	–	–	–	2 780	4 424 COR
Sjötungan 3	Margretelundsvägen 6	Värnamo	1989	–	–	2 570	–	–	–	2 570	4 907 COR B
Takläggaren 4	Rörläggarev 8/Silkesv 39	Värnamo	1991	–	–	9 067	–	–	–	9 067	15 871 COR B
Takläggaren 8	Silkesvägen 43	Värnamo	1999	–	–	–	6 995	–	–	6 995	19 685 COR */B
Värnamo 14:2	Myntgatan 2	Värnamo	1982	–	–	–	–	–	–	–		– COR A
Yxan 4	Fabriksgatan 10, 12	Värnamo	1975	–	–	5 595	–	–	–	5 595	8 960 COR
Yxan 6	Fabriksgatan 4	Värnamo	1978/1990	–	–	1 170	–	–	–	1 170	2 759 COR B
Flahult 21:3	Momarken 42	Jönköping	1980	–	–	3 648	–	–	346	3 994	12 284 COR B
Flahult 78:2	Momarken 12	Jönköping	1986/1990	–	–	2 857	810	–	–	3 667	11 394 COR B
Vargön 4	Vasavägen 5	Jönköping	1989	–	–	–	4 070	–	–	4 070	8 223 COR
Vattenpasset 2	Ekhagsringen 17	Jönköping	1980	428	–	2 305	1 010	–	–	3 743	12 878 COR
Vingen 4	Linnegatan 1	Jönköping	1970	520	560	–	2 815	–	–	3 895	11 264 COR B
Ögongloben 6	Kindgrensgatan 4	Jönköping	1997	–	–	3 108	–	–	–	3 108	4 452 COR *
Österbotten 4	Skeppsbrogatan 6	Jönköping	1930/1991	385	–	72	2 369	–	118	2 944	6 305 COR
Överlappen 13	Kalkstensgatan 6-8	Jönköping	1977/1995	2 297	–	150	3 376	–	–	5 823	23 147 COR
Överstycket 25	Kindgrensgatan 3	Jönköping	1981	–	–	–	7 841	–	–	7 841	10 232 COR */B
Marås 1:12	Maråsliden 7	Gnosjö	1960	–	–	–	1 140	–	–	1 140		402 COR
Töllstorp 1:561	Mobäcksvägen 2	Gnosjö	1946	–	–	–	4 290	–	–	4 290	5 632 COR

Note: *=Acquired 2008 T=Ground rent A=Lease B=Unutilized building permission

Törestorp 2:51 Kulltorpsvägen 25 Gnosjö 1946 – – – 14 310 – – 14 310 15 912 COR B

Eastern Götaland												Tax Mgmt.
			Build/ Square metres per type of premises								assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce			Retail Warehouse Industrial Residential		Other	Total		value sidiary Note
Källemo 1	Källemogatan 12	Vaggeryd	1956/1988	–	–	7 552	–	–	–	7 552		9 056 COR B
Yggen 1	Krokvägen 1	Vaggeryd	1985/1989	–	–	–	6 303	–	–	6 303	8 422 COR
Pagoden 1	Ottargatan 10	Linköping	1972/2002	–	–	–	3 400	–	–	3 400		6 634 COR */B
Total warehouse/industrial				10 279	6 069	76 191	91 721	159		607 185 026	389 371
DEVELOPMENT PROJECTS
Visionen 3	Bataljonsgatan 10	Jönköping	–	–	–	–	–	–	–	–		0 COR *
Total development projects				0	0	0	0	0	0	0	0

Office/retail Warehouse/industrial Development projects and land

CASTELLUM ANNUAL REPORT 2008 135

Eastern Götaland										Tax Mgmt.
			Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	Refurb. year	Offi ce				Retail Warehouse Industrial Residential Other Total				value sidiary Note
UNDEVELOPED LAND
Bleckslagaren 1	Repslagarevägen 5	Värnamo	–	–	–	–	–	–	–	–		464 COR B
Bredasten 1	Värnamo	Värnamo	–	–	–	–	–	–	–	–		– COR *
Bredasten 2	Värnamo	Värnamo	–	–	–	–	–	–	–	–		– COR *
Linden 1	Malmövägen 3	Värnamo	–	–	–	–	–	–	–	–	1 058 COR
Värnamo 14:86	Myntgatan 6	Värnamo	–	–	–	–	–	–	–	–		– COR B
Värnamo Torp 1:11	Skogsmark	Värnamo	–	–	–	–	–	–	–	–	1 868 COR
Bagaren 11	Ljungadalsg 2/Hejareg 10	Växjö	–	–	–	–	–	–	–	–		– COR B
Öjaby 1:17	Växjö	Växjö	–	–	–	–	–	–	–	–		– COR */B
Total undeveloped land				0	0	0	0	0	0	0	3 390
Total Eastern Götaland				167 503		99 139 109 812	94 742				5 133 3 338 479 667 1 739 511

Note: *=Acquired 2008 T=Ground rent A=Lease B=Unutilized building permission

Office/retail Warehouse/industrial Development projects and land

Castellum's Real Estate Portfolio in Eastern Götaland 31-12-2008

Total	93	480	357	–	–	324	125	–	199
Undeveloped land	8	–	–	–	–	–	–	–	–
Development projects	1	–	–	–	–	–	–	–	–
Total after leasing and property administration							125	261	199
Leasing and property administration							17	36	-17
Total	84	480	357	745	90.8%	324	108	225	216
Total warehouse/industrial	35	185	85	463	87.9%	75	21	114	54
Rest of Eastern Götaland	6	37	10	278	69.0%	7	4	96	3
Jönköping	9	39	19	478	86.1%	16	6	160	10
Värnamo	15	61	27	448	87.0%	24	5	78	19
Växjö	5	48	29	614	96.5%	28	6	136	22
Warehouse/industrial
Total offi ce/retail	49	295	272	922	91.8%	249	87	295	162
Linköping	5	35	39	1 133	85.0%	34	17	474	17
Växjö	12	79	62	786	86.4%	53	20	253	33
Värnamo	20	83	69	823	94.0%	65	20	239	45
Jönköping	12	98	102	1 040	96.2%	97	30	313	67
Offi ce/retail
properties	No. of	thous. sq.m.	value SEKm	value SEK/sq.m.	occupancy rate	income SEKm	costs SEKm	costs SEK/sq.m.	income SEKm
		Area	Rental	Rental	Ecomomic	Rental	Property	Property	operating
									Net

Real estate portfolio by property type Real estate portfolio by municipality

Property related key ratios

	2008	2007	2006	2005	2004	2003	2002	2001	2000
Rental value, SEK/sq.m.	745	748	688	675	659	617	598	551	510
Economic occupancy rate	90.8%	90.4%	90.6%	90.0%	89.8%	91.3%	90.0%	88.0%	89.0%
Property costs, SEK/sq.m.	261	269	239	213	198	193	173	171	155
Net operating income, SEK/sq.m.	416	407	384	395	393	370	365	314	298
Number of properties	93	82	76	73	76	74	71	75	82
Lettable area, thousand sq.m.	480	452	375	366	380	370	347	350	388

Castellum's Real Estate Schedule 2008, Summary

		Square metres per type of premises
	Offi ce	Retail	Warehouse	Industrial	Residential	Other	Total	ment value
Greater Gothenburg	376 674	50 043	422 452	155 510	8 246	4 261	1 017 186	5 251 725
Öresund Region	218 158	60 341	258 536	27 723	11 656	44 349	620 763	3 428 520
Greater Stockholm	266 528	33 736	175 743	40 644	–	18 578	535 229	3 147 548
Mälardalen	187 074	111 819	114 075	96 657	1 023	8 312	518 960	2 062 656
Eastern Götaland	167 503	99 139	109 812	94 742	5 133	3 338	479 667	1 739 511
Total Castellum	1 215 937	355 078	1 080 618	415 276	26 058	78 838	3 171 804	15 629 960

Distribution by region and sq.m. Distribution by type of premises and sq.m.

Defi nitions

Counterparty risk/Credit risk

The risk that a counterparty does not complete delivery or payment.

Currency risk

The risk that changes in the exchange rate will effect income and cash flow.

Data per share

In calculating income and cash flow per share the average number of shares has been used, whereas in calculating assets, shareholders' equity and net asset value per share the number of outstanding shares has been used.

Dividend pay out ratio

Dividend as a percentage of income from property management after a nominal tax deduction.

Dividend yield

Proposed dividend as a percentage of the share price at the year end.

Economic occupancy rate

Rental income accounted for during the period as a percentage of rental value for properties owned at the end of the period. Properties acquired/completed during the period have been restated as if they had been owned or completed during the whole year, while properties disposed of have been excluded entirely. Development projects and undeveloped land have been excluded.

Equity/assets ratio

Disclosed equity as a percentage of total assets at the end of the period.

Funding risk

The risk that no funding is available or very unfavourable at a given point in time.

Income from property management

Net income for the period/year after reversal of changes in value and tax.

Interest coverage ratio

Income from property management after reversal of net financial items as a percentage of net financial items.

Interest rate risk

The risk that changes in the market interest rate will effect income and cash flow.

Liquidity risk

The risk of not having access to liquidity or unutilized credit facilities in order to settle payments due.

Loan to value ratio

Interest-bearing liabilities as a percentage of of the properties' fair value with deduction for acquired properties not taken in possession, and with addition for properties disposed of, still in possession, at the year-end.

Net asset value

Reported equity according to the balance sheet, adjusted for 5% deferred tax instead of nominal deferred tax and without an uncertainty range in property valuations.

Net operating income margin

Net operating income as a percentage of rental income.

Number of shares

Registered number of shares - the number of shares registered at a given point in time.

Outstanding number of shares - the number of shares registered with a deduction for the company's own repurchased shares at a given point in time.

Average number of shares - the weighted average number of outstanding shares during a given period.

Operating expenses, maintenance, etc.

This item includes both direct property costs, such as operating expenses, maintenance, ground rent and real estate tax, as well as indirect costs for leasing and property administration.

Operational risk

The risk of incurring losses due to insufficient procedures and/or improper actions.

Property type

The property's primary rental value with regard to the type of premises. Premises for purposes other than the primary use may therefore be found within a property type.

Rental income

Rents debited plus supplements such as reimbursement of heating costs and real estate tax.

Rental value

Rental income plus estimated market rent for vacant premises.

Return on equity

Income after tax as a percentage of average ((opening balance+closing balance-income after tax)/2) equity. In the interim accounts the return has been recalculated on an annual basis, disregarding seasonal variations normally occurring in operations.

Return on net asset value

Calculated in the same way as return on equity, but with 5% deferred tax instead of nominal tax.

Return on total capital

Income before tax with reversed net financial items and changes in value on derivatives as a percentage of average ((opening balance+closing balance-changes in value on properties)/2) total capital. In the interim accounts the return has been recalculated on an annual basis, disregarding seasonal variations normally occurring in operations.

SEK per square metre

Property-related key ratios, expressed in terms of SEK per square metre, are based on properties owned at the end of the period. Properties acquired/completed during the year have been restated as if they had been owned or completed for the whole year, while properties disposed of have been excluded entirely. Development projects and undeveloped land have been excluded. In the interim accounts key ratios have been recalculated on an annual basis, disregarding seasonal variations normally occurring in operations.

Total yield per share

The change in the share price during the year with addition of dividend as a percentage of the share price at the end of previous year.

Castellum AB (publ)

(Corporate identity no. 556475-5550) Box 2269, 403 14 Gothenburg, Sweden Visiting address: Kaserntorget 5 Phone: +46(0)31-60 74 00. Fax: +46(0)31-13 17 55 info@castellum.se www.castellum.se

Aspholmen Fastigheter AB

(Corporate identity no. 556121-9089) Nastagatan 2, 702 27 Örebro, Sweden Phone: +46(0)19-27 65 00. Fax: +46(0)19-27 42 50 orebro@aspholmenfastigheter.se www.aspholmenfastigheter.se

Fastighets AB Briggen

(Corporate identity no.556476-7688) Box 3158, 200 22 Malmö, Sweden Visiting address: Fredriksbergsgatan 1 Phone: +46(0)40-38 37 20. Fax: +46(0)40-38 37 37 fastighets.ab@briggen.se www.briggen.se

Fastighets AB Brostaden

(Corporate identity no. 556002-8952) Box 5013, 121 05 Johanneshov, Sweden Visiting address: Bolidenvägen 14 Phone: +46(0)8-602 33 00. Fax: +46(0)8-602 33 30 info@brostaden.se www.brostaden.se

Fastighets AB Corallen

(Corporate identity no. 556226-6527) Box 148, 331 21 Värnamo, Sweden Visiting address: Lasarettsgatan 3 Phone: +46(0)370-69 49 00. Fax: +46(0)370-475 90 info@corallen.se www.corallen.se

Eklandia Fastighets AB

(Corporate identity no. 556122-3768) Box 8725, 402 75 Gothenburg, Sweden Visiting address: Theres Svenssons gata 9 Phone: +46(0)31-744 09 00. Fax: +46(0)31-744 09 50 info@eklandia.se www.eklandia.se

Harry Sjögren AB

(Corporate identity no. 556051-0561) Kråketorpsgatan 20, 431 53 Mölndal, Sweden Phone: +46(0)31-706 65 00. Fax: +46(0)31-706 65 29 info@harrysjogren.se www.harrysjogren.se

FINANCIAL REPORTING

Interim Report January–March 2009 15 April 2009 Half-year Report January–June 2009 14 July 2009 Interim Report January–September 2009 15 October 2009 Year-end Report 2009 20 January 2010

FURTHER INFORMATION

Further information may be obtained from the company's CEO Håkan Hellström or Finance Director Ulrika Danielsson telephone +46 (0)31-60 74 00 and on www.castellum.se