Castellum — Annual Report 2012

Feb 18, 2013

Annual Report 2012

Content

2012 Year Summary	1
CEO's Comments	2
Operations
Business Concept, Objectives and Strategies	4
Customers	6
Organization	8
Employees	9
Responsible Business	10
The Real Estate Portfolio
Market comments	13
Castellum's Real Estate Portfolio	16
Investments	19
Building Rights and Potential Projects	27
Castellum's regions	28
Greater Gothenburg	30
Öresund Region	33
Greater Stockholm	36
Mälardalen	39
Eastern Götaland	42
Property value	46
Financing	49
Tax	52
Opportunities and Risks	54
The Castellum Share	58
Corporate Governance Report	62
Quarterly and Multi Year Summary	74
Financial Reports	77
Consolidated Statement of Comprehensive Income	78
Consolidated Balance Sheet	80
Income Statement and Comprehensive Income for	82
the Parent Company
Balance Sheet for the Parent Company	83
Change in Equity	84
Cash Flow Statement	85
Accounting Principles and Notes	86
Proposed Distribution of Profi ts	108
Statement Regarding Proposed Distribution of Profi ts	109
Signing of the Annual Report	110
Audit Report	111
Castellum's Real Estate Schedule 2012	113
Defi nitions	145

The audited legal Annual Report, which comprises director's report and fi nancial reports, comprises the pages 4-110. 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.

Annual General Meeting

Castellum AB's Annual General Meeting will take place on Thursday March 21, 2013 at 5 pm in RunAn, Chalmers Kårhus, Chalmersplatsen 1, Gothenburg. For more information and notification of attendance see www.castellum.se

Annual General Meeting calender and dividend

Notification for the AGM	15 March 2013
Annual General Meeting	21 March 2013
Ex-dividend date	22 March 2013
Record day for the dividend	26 March 2013
Payment of dividend	2 April 2013

Financial Reporting

Interim Report January - March 2013	17 April 2013
Half-year Report January - June 2013	16 July 2013
Interim Report January - September 2013	16 October 2013
Year-end Report 2013	22 January 2014

Further information

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.

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. A printed year-end report is sent to all shareholders while the annual year report and other quarterly reports in print can be ordered from info@castellum.com.

For further information please contact CEO Håkan Hellström, tel +46 705 60 74 56 or Finance Director Ulrika Danielsson tel +46 706 47 12 61 and www.castellum.se

Castellum' 4 corner stones

Business concept

Castellum's business concept is to develop and add value to its real estate portfolio, focusing on the best possible earnings a regions - Greater Gothenburg, the Öresund Region, Greater Stockholm, Mälardalen and Eastern Götaland.

Cash fl ow focus

• An annual growth in cash fl ow, i.e. income from property management per share, of at least 10%
• Net investments of at least 5% of the property value yearly

Castellum's operations are focused on cash fl ow growth, which along with a stable capital structure provides the preconditions for robust growth in the company, and offers shareholders a competitive dividend.

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, net investments of at least 5% of the property value will be made yearly. At the moment, this is equivalent to approx. SEKm 1,800. All investments shall 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%.

Growth on average the last 10 years amounted to 7%.

Commercial properties in growth regions

• Concentrated to 15 growth regions
• Premises for offi ce/retail and warehouse/industrial
• One of the three largest real estate owners in each local market

Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to SEK 36 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. cash

Real estate value by category

and asset growth, by offering customized commercial properties, through a strong and clear presence in five growth

Customer focus through local organizations

• Decentralized and small-scale organization
• Property management carried out with own personnel
• Environmental work with focus on reduced energy consumption
• Regulary measurement of customers and employees satisfaction

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 approx 4,800 commercial contracts, with good risk exposure regarding geography, type of premises, length of contracts and fields of business of the customer.

In Castellum's Customer Satisfaction Survey, 95% reply that they are willing to lease from Castellum again and gladly recommend Castellum as a landlord to others.

Castellum's Satisfi ed Employee Index shows an index of 87 on a scale of 100, concerning attitudes towards the working situation, the company and management.

Strong balance sheet and low fi nancial risk

• Loan to value ratio not permanently exceeding 55%
• Interest coverage ratio at least 200%
• Geographic exposure allocated on different types of premises - Commercial leases in many fi elds of industry

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%. The loan to value ratio as at 31 December, 2012 was 53% and the interest coverage ratio for the year was 284%.

Castellum's dividend policy is that at least 50% of income from property management, however investment plans, consolidation needs, liquidity and fi nancial position in general will be taken into account. The Board intends to propose a dividend of SEK 3.95 per share for 2012, which corresponds to a dividend ratio of 52%.

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.

Here you can follow the Castellum share:

Financing 31-12-2012

Total yield (including dividend)

	2012	3 years	10 years
		average/	average/
		year	year
Castellum	13%	13%	16%
NASDAQ OMX Stockholm (Six Return)	16%	8%	13%
Real Estate Index Sweden (EPRA)	16%	15%	16%
Real Estate Index Europe (EPRA)	29%	12%	8%

Year Summary 2012

• Rental income for 2012 amounted to SEKm 3,073 (SEKm 2,919 previous year).
• Income from property management amounted to SEKm 1,255 (1,173), corresponding to SEK 7.65 (7.15) per share, an increase of 7%.
• Changes in value on properties amounted to SEKm –69 (194) and on interest rate derivatives to SEKm –110 (–429). Reduced corporate tax has resulted in a non-recurring income of SEKm 647 in addition to the usual tax.
• Net income after tax amounted to SEKm 1,473 (711), corresponding to SEK 8.98 (4.34) per share.
• Net investments amounted to SEKm 2,545 (1,908) of which SEKm 1,279 (1,158) were new constructions, extensions and reconstructions.
• The Board proposes a dividend of SEK 3.95 (3.70) per share, corresponding to an increase of 7%.
• Deputy CEO Henrik Saxborn is appointed as new CEO after Håkan Hellström who leaves his position in connection with the Annual General Meeting March 21, 2013.

	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003
Income from property management, SEK/share	7.65	7.15	6.96	6.89	5.93	5.63	5.38	5.00	4.52	4.07
Change previous year	+7%	+3%	+1%	+16%	+5%	+5%	+8%	+11%	+11%	+8%
Net income after tax, SEK/share	8.98	4.34	11.98	0.98	– 4.04	9.07	10.21	7.89	5.59	2.68
Change previous year	+107%		– 64% +1,122%	pos.	neg.	–11%	+29%	+41%	+108%	–33%
Dividend, SEK/share (for 2012 proposed)	3.95	3.70	3.60	3.50	3.15	3.00	2.85	2.62	2.38	2.13
Change previous year	+7%	+3%	+3%	+11%	+5%	+5%	+9%	+11%	+12%	+13%
Properties fair value, SEKm	36,328	33,867	31,768	29,267	29,165	27,717	24,238	21,270	19,449	18,015
Net investments, SEKm	2,545	1,908	1,279	1,129	2,710	2,559	1,823	889	774	711
Loan to value	53%	51%	50%	52%	50%	45%	45%	45%	45%	48%
Interest coverage ratio	284%	278%	299%	309%	255%	287%	343%	315%	277%	256%
	C AST ELLU M AN N UAL N U AL REP ORT					2 012

CEO's Comments

For the 15th consecutive year since being listed, Castellum can demonstrate growth in both income from property management and dividend, provided that the AGM approves the latter.

Income from property management for 2012 was SEKm 1,255, which represents an increase of 7%. The main factors behind this growth are primarily related to investments and, to a lesser extent, to the rental market. As could be expected in an economic period featuring weak growth, the 2012 market was characterized by unchanged rental levels (other than indexation), a slight increase in vacancies, unchanged property costs and a slight decline in interest rate levels.

Growth in income from property management has enabled a higher dividend. The proposal of SEK 3.95 per share represents an increase of 7% compared with the previous year.

In addition to cash-fl ow-related income from property management, the income statement also refl ects changes in the value of properties and interest rate derivatives as well as tax. In general, property values have been deemed stable throughout the year, which - after individual adjustments led to a minor decrease in value. Similarly, there was a minor decrease in value regarding interest rate derivatives due to falling market interest rates in 2012. In addition to the usual tax costs, Castellum had a non-recurring income of SEKm 647 due to a lowering of the corporate tax rate in Sweden - to 22%. In all, the net income for 2012 amounts to SEKm 1,473, which more than doubles last year's result.

Castellum primarily focuses on investments in new construction, extension and reconstruction projects which promise to yield a high return. For 2012, these investments amounted to SEK 1.3 billion. Along with acquisitions - including subtracted property sales for a quarter of a billion SEK - net investments totalled SEK 2.5 billion. This, along with virtually unchanged property values, has led to a real estate portfolio of 635 properties comprising 3.6 million square metres and total more than SEK 36 billion. The asset side is primarily funded by shareholder equity and the long-term net asset value of SEK 16 billion, as well as interest-bearing liabilities of SEK 19 billion. This implies a loan-to-value ratio of 53%. During the year, Castellum supplemented its customary secured bank fi nancing with an additional source of funding in corporate bonds through a MTN program.

Total yield on the Castellum share in 2012 was +13%, which is a few percentage points lower than that of both the Stockholm Stock Exchange and comparable property index. At year end, Castellum had approx. 60% foreign shareholders and it is the 16th largest listed real estate company in Europe, with a market capitalization of SEK 15 billion.

Castellum acts from a solid foundation by conducting a sustainable business. This means taking both economic and social responsibility with a strong focus on customers and employees. We're an established community builder, with a long-term strategy and a low-risk profi le. Environmental issues have been high on the Group's agenda since 1995 and we have received numerous awards. Future efforts will continue to focus on reducing both energy consumption and CO2 emissions.

I believe that 2013 will come to resemble 2012 to a great extent: declining growth in the Swedish economy leads to a stable-but-modest rental market, whereas cost structure will remain stable or - with short-term market interest rates - even decrease. A continued strong interest in investment properties has been confi rmed by high transaction volumes in late 2012. This development, accompanied by a steady cash fl ow, means that I don't anticipate any risk for commercial property values, generally.

After more than 18 years with the company, I've informed the Board that I wish to leave my position at Castellum in connection with the Annual General Meeting on March 21, 2013, to spend more time on non-work-related activities. Within the strong corporate culture of Castellum, continuity has been a keyword - continuity built on dedicated and talented employees. Further, the excellent decision to appoint the current vice president, Henrik Saxborn, as new CEO makes me confi dent that Castellum will continue to develop in a positive direction.

Gothenburg, January 22th 2013 Håkan Hellström CEO

Operations

Growth in income from property management

Net investments

Loan to value ratio

Interest coverage ratio

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 customised commercial properties, through a strong and clear presence in fi ve Swedish growth regions.

Objective

Castellum's operations are focused on growth in cash fl ow, which along with a low fi nancial risk provides the preconditions for robust growth in the company, and offers shareholders a competitive dividend.

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, net investments of at least 5% of the property value will be made yearly. At the moment, this is equivalent to approx. SEKm 1,800. All investments shall 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 justifi ed from a business standpoint and when an alternative investment with a higher return can be found. In operations, there shall be an continuing focus on improved productivity and effi ciency.

Strategy for Funding

Capital structure

Castellum shall have low fi nancial risk, meaning a loan to value ratio not permanently exceeding 55% and an interest coverage ratio of at least 200%.

Purchase or transfer of own shares shall be available as a method for adjusting the company's capital structure to the company's capital need and as payment or funding of real estate investments. Company-owned shares may not be traded for short term purpose of capital gain.

Dividend

At least 50% of pre-tax property management income will be distributed. However, investment plans, consolidation needs, liquidity and fi nancial position in general will be taken into account.

The stock and credit markets

Castellum will work for a competitive total return on the company's share relative to risk and also strive for high liquidity.

All actions will be made from a long-term perspective and the company will hold frequent, open and fair reports to shareholders, the capital and credit markets and the media, without disclosing any individual business relationship.

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 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 longterm 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 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, warehouse, logistics and industrypurposes. 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 constructions, extensions and reconstructions 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 fi elds 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. The presence of sub-markets should be strong and each subsidiary one of three largest real estate owners in each local market. Property management shall be carried out mainly by own personnel. In operations there shall be a continously focus on improving productivity and effi ciency.

Castellum shall have skilled and committed employees, 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.

Castellum sees a clear correlation between company growth and satisfi ed employees and customers. The strategy of working through a decentralized organization provides closeness and familiarity with the customers, as well as a stimulating work environment for the employees.

Castellum's 4 corner stones

Cash fl ow focus

• An annual growth in cash fl ow, i.e. income from property management per share, of at least 10% - Investments of at least 5% of the property value yearly

Commercial properties in growth regions

• Concentrated to 15 growth regions
• Premises for offi ce/retail and warehouse/industrial
• One of the three largest real estate owners in each local market

Customer focus through local organizations

• Decentralized and small-scale organization
• Property management carried out with own personnel
• Regulary measurement of customers and employees satisfaction
• Environmental work with focus on reduced energy consumption

Strong balance sheet and low fi nancial risk

• Loan to value ratio not permanently exceeding 55%
• Interest coverage ratio at least 200%
• Geographic exposure allocated on different types of premises - Commercial contracts in many fi elds of industry

Customers

Lease value by region

Distribution of leases by industry

Thanks to the local presence, Castellum's employees get a close relation to their customers and knowledge both about their needs and the local situation and development. Good and long-term customer relations are a prerequisite for creating growth in Castellum. The work is regularly followed-up in customer questionnaires. The Customer Satisfaction survey carried out during 2012 shows that 95% of the respondents reply that they are willing to lease from Castellum again and gladly recommend Castellum as landlord to others.

During the year a high leasing acivity has been carried out resulting in new contracts with a total annual value of SEKm 327.

Being close to the customer

Castellum's organization, comprised of locally based subsidiaries, provides a close relationship to the customer and a short decisionmaking process. Castellum's employees work close to the market, and this means natural access to fresh information about customers' current and future operations. Customers can thereby be offered premises suited to their needs and benefi t from optimal personal service and quick answers.

Castellum, as one of the largest real estate owners on local markets, also contributes to the development of major sites where local subsidiaries operate through co-operation with municipalities and local networks, such as company associations.

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

Castellum's customers reflect Swedish economy

Castellum has a good risk exposure in the commercial contracts regarding both geography, type of premises, size, length of contracts and fi elds of industry of the customer. This means that Castellum's commercial contracts is a refl ection of the Swedish trade and industry and Swedish economy.

Castellum has approx. 4,800 commercial contracts and the single largest contract makes up for approx. 1% of Castellum's total rental income.

Commercial leases

Commercial leases are signed for a specifi ed period of time, generally 3-5 years, where the period of notice is 9 months. The rental level can be changed when the lease in question is due for renegotiation. The leases normally include a base-rent and an index clause, which provides for a yearly adjustment of the rent corresponding to a certain percentage or connected to the infl ation.

Leases may also contain additions for the tenant's share of the property's total heating, cooling and property-tax costs.

Satisfied customers

It is vital that Castellum meets customer expectations. To evaluate and follow up efforts made, an external customer survey is carried out annually: the Satisfi ed Customer Index. The survey shows general customer opinion about Castellum as well as how well Castellum performs in the areas of: service, business relationships, indoor premises, property condition, environmental questions and information.

The survey carried out in 2012 - which included offi ces, warehouses, industry and retail - continues to show consistently high marks for Castellum, with a weighted index of 75 out of 100. This is higher than the industry benchmark. Service willingness shows the highest index and includes parameters such as personal attention, service and availability.

A significant portion of the surveyed customers, 95%, reply that they are willing to lease from Castellum again and gladly recommend Castellum as a landlord to others.

Leasing activity

Castellum enjoys high leasing activity. During 2012 the organization signed 699 new leases with a total annual value of SEKm 327. Robust leasing activities indicate the importance of taking care of customers and networks. Of the newly signed leases, 67% came from Castellum's own networks, recommendations or existing customer expansions, while 22% originated from web pages, and the remainder 11% came through agents.

Rental and renegotiation process

Existing customers

Castellum has 4,800 commercial contracts corresponding to a rental income of approx SEKm 3,200, of which approx. 21%-23% of the lease value matures each year.

Of Castellum's employees 55% works with customer relations and property management matters.

Of the lease value which mature every year it is over a business cycle usual that; - approx. 11%-12% are prolonged on unchanged terms

• approx. 7%-8% are given notice by the customer
• approx. 2% are given notice for renegotiation by the customer
• approx. 1% are given notice for renegotiation by Castellum

During 2012 the organization signed 699 new leases with a total annual value of SEKm 327

New customers

16% of Castellum's employees works with leasing to new customers.

The new contracts signed 2012 comes from: - 40% own network - 22% web pages and advertisement

• 14% existing customer expansion
• 11% agents
• 9% recommendations
• 4% withdrawn terminations

Lease size structure

Organization

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 presence the subsidiaries get close relations with the customers and knowledge of their operations and needs. The companies also get 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 engage about 40 employees. The subsidiary organizations are not identical but are in principle made up of a Managing Director, 2-4 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 3-8 facility managers. Everyone has customer contacts. The fl at organization provides a short decision-making process and creates a customer oriented and active organization.

Castellum's subsidiaries operate under their own names which are strong brands on each submarket.

Property management is mainly carried out by own personnel and in cases where external services are purchased, high demands are placed on suppliers in terms of quality, customer contact, service and environmental awareness.

Engagement in the local markets

Castellum's subsidiaries are involved in the local business community through business associations where important contacts are taken with both current and prospective customers. Castellum, as one of the largest real estate owners on local markets, also contributes to the development of major sites where local subsidiaries operate through co-operation with community-development bodies, such as municipalities and universities/colleges.

Measuring and comparing

Castellum measures and compares subsidiary management effi ciency and asset value growth in the real estate portfolio. Within the Group, experiences are shared among 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 fi nance and fi nancial work, information, information safety, environment, insurance and personnel, etc.

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 19 employees (14). In 2012, the parent company has strengthened the functions business development, fi nance and legal.

The parent company takes active part in operations through involvement in subsidiary Boards.

Employees

To obtain Castellum's strategy to be attractive workplace, Castellum offers competence development, exchanges of experience and continuous development of work assignments. Competent and dedicated employees are important in building customer relations.

For an optimum performance culture within the Castellum group, employee attitudes are monitored regularly and the surveys indicates that the employees enjoy their working situation and have high confi dence in the Group, the subsidiaries and management. The correlation between satisfi ed employees, satisfi ed customers and company growth is clear.

Attractive workplace

By offering competence development and creating a motivated work situation Castellum promotes loyalty and job satisfaction. The fl at organization means that each employee has well defi ned areas of responsibility with a high level of empowerment, leading to professional as well as personal development. Employee performance reviews occur yearly with all employees. These are an important tool for following up and setting objectives, as well as identifying competence development needs.

Castellum works with preventive health care, and offers good corporate wellness services as well as substantial health insurance. A bonus-sharing program provides employees with the opportunity to benefi t from their respective company's fi nancial performance improvement.

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

The average length of employment at Castellum is 8 years, which validate employees´ satisfaction and is an important parameter for company growth.

Education and sharing experiences

Castellum offers full possibilities for professional and personal development through internal and external training. A training program - Collegium Castellum - has been initiated. Castellum offered courses in calculations, marketing/sales and law during 2012. In addition to group-wide corporate training programs, individual training programs are also provided.

To create conditions for sharing of experiences between the companies, projects are run with participants from every company, covering topics such as facility management, brand awareness and lease contracts. Apart from the projects, there are fi xed focus-groups, which regularly discuss issues within specifi c areas, such as market-related issues, fi nance, IT, the environment and personnel.

Castellum's employees

As of year end, the Group had 265 employees (239), of which 40% were women (38%). The increase in the number of employees is related to marketing and project development. Employee turnover during the year has been 6% (13%) and absence due to illness 2% (2%).

Satisfi ed employees

Employee viewpoints on Castellum are monitored regularly in a Satisfi ed Employees Index showing their attitudes towards their own working situation, the company and management. The latest survey carried out in 2011 - continues to show a very high index, 87 on a scale of 100. This can be compared with a benchmark of 77. The response rate was 98%, demonstrating deep commitment.

The results of the employee survey is an important tool for further development of the company and its employees.

Level of education

Satisfi ed Employees Index

Responsible Business

Kärra 75:3 in Gothenburg, for which Eklandia Fastighets AB won Sweden Green Building Award during 2012 in the class BREEAM post constructions.

Castellum's strategy to be a long-term property owner with satisfied customers and employees, along with a strong balance sheet and low financial risk, has resulted in favourable conditions for responsible business practices from a financial, social, as well as an environmental perspective.

The driving force for responsible business operations - in addition to contributing to a sustainable society - is to create added value through good property management which, in turn, leads to more satisfied customers and employees, lower costs, a stronger brand name and increased competitiveness.

Financial responsibility

The objective of Castellum's long-term growth in cash fl ow, along with a strong balance sheet and low fi nancial risk, means that the company will take fi nancial responsibility for owners and society alike. Its fi nancial responsibility-taking is enhanced through the company's diversifi cation in terms of geographical spread of properties across various growth regions and different types of premises. This responsibility also includes leasing through several rental agreements in various fi elds of industry.

Social responsibility

There is a continuous, ongoing dialogue with Castellum Group stakeholders in order to develop Castellum's operations and conduct them effi ciently on a long-term basis. Castellum's most signifi cant stakeholders includes customers, employees, shareholders, investors and analysts in the stock market, credit- and capital market players, suppliers, as well as local authorities and other players in the property market.

As one of the largest real estate property owners in local markets, Castellum has both the opportunity and responsibility to contribute to the development of communities where the Group operates. This is done through involvement in local regions as well as through a well maintained property portfolio. Castellum cooperates with universities and colleges through essays and mentorship programs, with municipalities and local enterprises through business networks - to name a few.

Since the company was founded, Castellum has been working on creating a corporate culture with a robust working environment, where employee skills are utilized and developed. Our efforts are regularly followed up in employee and customer surveys, and both show high results.

In 2012, 50 holiday employees worked at Castellum, and, in 2013, a youth campaign is to be implemented with the goal of providing at least

Examples from Castellum's environmental work since 1995

1995	2000	2005	2010
1995: Policies, guidelines and overall targets are established 1997: First subsidiary which receives an "environment diploma" by Gothenburg city 1998: Robur classes Castellum's environ- mental work as "a model for the branch" 2000: - A group-wide environmental task force is formed - The fi rst ground heating / cooling system is installed in Örebro	2001: mental issues, for all employees - Common group values are approved for the group 2003: Web based surveillance of operations is commenced 2005: training is carried out for all employees	- Education and training in environ - Purchasing of "green electricity" "Environmental Driving License"	2008: Brostaden becomes the fi rst Green Building Corporate Partner in Europe 2009: - Harry Sjögren becomes the third Green Building Corporate Partner in Europe - Eklandia fi nishes Sweden's fi rst BREEM certifi ed property 2010: Brostaden is elected "Green Building Corporate Partner of the year" in Europe 2011: - A new target was adopted; All new constructions should be environmentally classifi ed - Code of business conduct updated	2012: - Three green leases has been signed - Eklandia won Sweden Green Building Awards in the class "BREEAM post constructions"and Briggen in the class "Miljöbyggnad in new construction" - Eklandia gets the award "Utmärkelsen" for a long- term cooperation with youths in school.

35 young people an introduction to working life and summer jobs.

For larger purchases and procurements, Castellum sets fi rm demands on suppliers and contractors regarding, for example, quality and work environment.

Values

Castellum's code of business conduct governs day-to-day activities, and content is largely aligned with the UN's Global Compact. Castellum is a company that operates in Sweden and Denmark, and is therefore governed by Nordic laws and regulations. Castellum has also drawn up policies covering personnel issues such as work environment, equality and salaries, pensions and company cars.

Environmental responsibility

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

Environmental thinking is directly related to Castellum's core business of being a long-term property owner, and, since 1995, the Group has worked systematically with environmental issues. To reduce Castellum's impact on the climate, efforts are focused on using energy more effi ciently, reducing carbon dioxide emissions, continuously monitoring and improving the properties' environmental status, and on sustainable new constructions.

Organization

Environmental issues are managed through an environmental management system consisting of a common environmental policy, guidelines, comprehensive measurable goals, and detailed action plans. The environmental work is carried out locally by each subsidiary and annual follow-ups are regularly reported to executive management. The common targets in the Group are shown below. The environmental efforts cover all activities and operations, and are regularly examined by external specialists. There is an environmental task force common to the entire Group, which meets regularly to share experiences and to monitor and learn from global developments.

More effi cient energy use

Castellum continuously works with energy optimization and investments in energy-effi cient technology. Castellum follows up and analyzes all energy consumption in a common follow-up system. A project is underway for the development of a web portal for web-based property monitoring, where measured values for operations, alarms, elevators and entries can be monitored.

In 2012, the normalized energy-consumption for heating and property electricity was decreased compared to the previous year; resulting in a

Company culture through ethics and values

That Castellum's operations are conducted in a responsible way is a prerequisite for the company's long-term successful business. The objective is to make sound and proper business decisions in all respects high business morality, good business ethics, responsibility awareness and impartiality.The base of Castellum's code of conduct is to offer good quality and service, to follow laws and regulations, not to discriminate against anyone and to create good working environment and safety.

Corner stone's for Castellum's company culture has been: The decentralized organization, which creates responsibility and committed employees, where each single colleague is a buisness collaborator. The geographical proximity to customers, community, suppliers and other parties involved creates a responsibility to act correctly and businesslike.

In Castellum's fl at organization each employee has an important role and new ideas are valued, as well as a high level of competence is available within the organization.

When Castellum was established clear guidelines were formed, where the work is carried out in structured processes, creating order and clarity and thus guarantee credibility and quality in the work. The fl at organization provides a natural transparency and quality assurance.

For the complete Code of Business Conduct see www.castellum.se

Achieved in 2012;

• Reduced energy consumption of 11% per sq.m.
• Reduced carbon dioxide emissions of 8% per sq.m.
• All new production is environmentally classifi ed.
• Eklandia won Sweden Green Building Awards in the class "BREEAM post constructions"and Briggen in the class "Miljöbyggnad in new construction"
• Green leases have been signed with 3 customers.

Common targets in the Group

Outcome since		Yearly outcome
More effective enery use	2007 2012 2011 2010 2009 2008			Target and outcome consumption and carbon dioxide
- Energy consumption (normalized) reduced by at least 10% per sq.m. over 10 years (at least 1% per sq.m. and year)	– 17% – 11% + 1% – 3% – 2% – 2%
- Carbon dioxide emissions (normalized) reduced by at least 25% per sq.m. over 10 years (at least 2,5% per sq.m. and year)	– 26% – 8% + 9% – 1% – 12% – 14%
Plans call for us to; - optimized energy usage and change to modern technical installations - give priority to environmentally adapted and environmentally friendly energy sources. Replace remaining fossil fuels. 5 properties using oil-heating remains. On going dialogue with district

heating plants about reducing CO2-emissions. 14 properties with natural gas has been converted into bio gas during 2012, - minimize travel and transportation in the business.

Known and continous improvement of the environmental status of the properties

- All properties owned for more than one year, shall
be environmentally evaluated		100% 100% 100%	99%	91%
- All new constructions shall be environmentally classifi ed	Fulfi lled

Energy and water consumption

		2012			2011
	Heating GWh	Other GWh	CO2 1000 tonnes	Heating GWh	Other GWh	CO2 1000 tonnes
District heating	203	7	18	188	8	15
Electricity	8	81	0	7	91	1
Gas	4	0	1	13	0	2
Oil	2	2	1	2	2	1
Consumption	217	90	20	210	101	19
Adjustments*	14	4	2	38	1	3
Norm. consumption	231	94	22	248	102	22
Area, thousand sq.m. 3,008 2,825 Norm. consumption,					2,853 2,671
kWh/sq.m.	77	33	7.2	87	38	7.8
Water, thous. m3		909			862

* Normalized consumption according to degree days and vacancy. "Other" refers to common electricity etc

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

Distribution of emissions of carbon dioxide

Distribution of energy consumption for heating

For more information see www.castellum.com

total decrease of energy-consumption of 11% per sq.m. The normalized carbon dioxide emissions have decreased by 8% per sq.m. due to changes in the district-heating plant's fuel mix, as well as changes in the method for calculating emissions. Since the target was adopted in 2007, energyconsumption has decreased by 17% per sq.m. and CO2 emissions are down by 26% per sq.m. Out of Castellum's total carbon dioxide emissions, 4% are directly infl uenced by oil and transportation, whereas remaining emissions can only be infl uenced indirectly.

Energy declarations carried out in 2009 accordance with established legislation showed that Castellum's energy consumption was approx. 30% lower than the average consumption for similar properties in Sweden.

To reduce emissions, work is underway to phase out fossil fuels, i.e., replace oil and gas heating systems. Currently, fi ve oil furnaces still remain among the investment properties. Ground heating/cooling is installed in 22 properties, totalling 126,000 sq.m.

As a user of district heating, Castellum is dependent on the districtheating plant's fuel mix, when it comes to emissions of carbon dioxide. Today, Castellum makes use of 23 district-heating facilities, amounting to 86% of the Group's total carbon dioxide emissions. Castellum conducts ongoing dialogues with the district-heating suppliers who account for the highest emissions per kWh. The purpose of these dialogues is twofold: to demonstrate how Castellum's environmental impact depends on their work, and to learn about how the suppliers plan to reduce emissions. Since 2001, only electricity labelled "environmentally friendly" has

been used by the Castellum Group.

Today, Castellum uses green IT and almost all servers are now virtual.

Known and continuously improved status in the properties

An environmental inventory covering environmental and health risks has been conducted for the properties. Upon their acquisition, properties are analyzed concerning energy-consumption and environmental risk, and all new buildings are to feature environmental classifi cations. Environmental risk in Castellum's real estate portfolio is considered low.

Two of Castellum's subsidiaries, Fastighets AB Brostaden and Harry Sjögren AB, have, as the fi rst and third companies in Europe respectively, been appointed Green Building Corporate Partner, meaning that energyconsumption has been reduced by at least 25% in at least 30% of the real estate portfolio. In 2010, Fastighets AB Brostaden was awarded Green Building Corporate Partner of the Year. In 2012, Eklandia Fastighets AB received the Sweden Green Building Award in the category BREEAM post constructions, and Fastighets AB Briggen won the category New Buildings Certifi ed under Miljöbyggnad. Castellum owns 94 of Sweden's 267 Green Building classifi ed buildings, one buildings classifi ed as "Miljöbyggnad", as well as one BREEAM certifi ed property.

Communication and co-operation

As a driving force for change is communication and co-operation. Customers remain informed via visits and websites. Furthermore, Castellum cooperates with various parties to acquire knowledge of new technologies and to exchange experiences with, for example, the Swedish Energy Agency's "Beställargrupp för lokaler" (BELOK), the Ecocycle Council, Sweden Green Building Council and local sanitation companies.

Castellum offers customers the opportunity to sign "green leases". This entails both parties committing to a variety of technical measures concerning energy effi ciency, source separation of waste, sustainable transportation and choice of building material. The aim is to collaborate on environmental issues, and in 2012, three leases - totalling 33,000 sq.m. - has been signed.

Real Estate Portfolio

Market comments

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

Swedish Economy

Sweden, with over 9.5 million inhabitants, is a country with an open and strong economy. This is primarily due to a stable and transparent business climate, high education levels, healthy public finances and high productivity. Sweden has long and extensive experience in international trade and international relations. This is evident from its relatively large share of world-leading corporations such as Ericsson, H&M, IKEA, SCA and Volvo. The high export dependency of Swedish industry contributes to the fact that, historically, Sweden has shown the strong adaptability required to re-structure the economy during economic changes.

The Swedish economy developed better than expected at the beginning of 2012. At year end, however, there were clear signs of waning growth, mainly attributable to this year's weak performance of a Eurozone marked by economic crisis. Measures have been taken at both EU and national levels to reduce financial turmoil, but much work remains and growth is expected to be weak for a while to come. Swedish households and companies have a more negative take on the future, and both consumption and investments are expected to be weak for some time. The labourmarket situation has also worsened and the number of redundancies increased toward the end of the year. Further, growth has been slow in other export countries which are important for Sweden, but here the outlook for 2013 appears to be somewhat better, with an expected global growth of 3-4%.

Generally, Swedish export industry has a favourable product mix which together with Sweden's stable public finances and lower public debt, healthier banks compared with other countries and a reasonably strong currency features a stable recovery as the global demand rise.

Macro	Sweden 2011	Sweden 2012 f	EU 2012 f	Sweden 2013 f
GDP growth	3.8%	1.2%	– 0.3%	0.8%
Unemployment	7.5%	7.7%	10.5%	8.3%
Infl ation	3.0%	0.9%	2.7%	0.4%
Public debt / GDP	38.4%	37.4%	86.8%	36.2%

Source: National Institute of Economic Research and European Commission

Public debt/budget balance in % of GDP, forecast 2012

GDP growth per year

Sweden's foreign trade Jan-Oct 2012 (10 months)

Export Total SEKbn 990		Import	Total SEKbn 924
Norway	101	Germany	160
Germany	99	Norway	85
Great Britain	76	Denmark	78
USA	64	Great Britain	61
Finland	63	The Netherlands	60
Denmark	62	Russia	50
The Netherlands	51	Finland	46
Belgium	47	France	39
France	46	China	38
China	31	Belgium	35
Russia	20	USA	30

Source: "Statistics Sweden", import relates to sending countries

Property portfolio listed real estate companies

Source: Each company's interim report Q3 2012 Companies with a real estate value>SEKm 3,000

New construction and vacany rates

Interest rate and credit market

To support the Swedish economy the Swedish Riksbank cut the repo rate three times during 2012 to an outgoing repo rate of 1%. The long-term interest rates have been highly volatile during the year and are now at historically low levels. Access to funding on the capital market, such as bonds and certifi cates improved during the year.

Access to credit for Castellum is considered to be good on both the credit and capital market.

The real estate portfolio

In Sweden there are almost three million properties with a total tax assessment value of approx. SEK 6,700 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 13%. 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 owners.

Due to the scattered ownership without any dominating real estate owner, the competitors differ between different local markets.

Rental market

The rental market is mainly dependent on growth in the Swedish economy, but is also affected by the volume of new constructions. Economic growth normally leads to an increasing demand for premises and, consequently, to a decreasing number of vacancies. This potentially leads to increased market rents which, in turn, facilitate new construction. A stagnation in growth leads to the reverse scenario.

The demand on premises remains on a good level, especially for new constructions, extensions and reconstructions. This is valid for all Castellum's property types as well as regions, however, retail premises had a slightly weaker demand. Rental levels are expected to remain stable.

Since rental agreements normally are signed for 3-5 years, with nine months' notice of termination, changes in market rents will have relatively little impact on total rental income in the short run.

Property market

The transaction volume on the Swedish real estate market totalled 2012 approx. SEK 111 billion (105), which are the highest annual turnover since 2008. The fourth quarter accounted for approx. SEK 48 (30) billion.

Commercial properties accounted for 79% and major urban regions for 61%. Both the buy and sell side were dominated by domestic institutions and real estate companies, where the institutions were the largest net buyers. A slight increase in the foreign buyers interest in the Swedish real estate market can be noted. Castellum assess that strong demand and limited supply in central parts of the major urban regions resulted in stable to rising prices. In Castellum's other growth regions, the demand is overall good, but prices in some areas have been stable to slightly decreasing due to limited access to bank fi nancing.

Sweden's labor markets

Sweden can be divided into a number of local labor markets where each market has different development strength. The development strength depends on population growth, demographics, employment rates, new businesses, business employees, amount of wages, level of education and health.

The picture to the right shows the development strength of the Swedish local labor markets. The three major urban regions in Sweden have the greatest development potential which is explained by a larger population, which in turn creates a larger labor market, a diversified industrial structure, research opportunities of research and greater variety of shopping, entertainment and culture.

Growth and risk on geographical markets

Sweden's labor market can function independently concerning work and commuting. Some markets are due to their size and business structure less dependent to changes in the world around than others and have their own inherent power to grow, where the size provides economies of scale. Long term growth is concentrated to medium and larger regions while the number of regions is reduced.

The following fi gure shows growth and risk in Sweden's regional markets'. The growth is measured in the average annual growth in the sum of wages for each market and the risk is measured as standard deviation. The most favorable is high growth and low risk. The following fi gure shows Sweden's regional markets and Copenhagen in Denmark, where Castellum's markets are shown in red.

Average growth per year in total employment rates as well as growth in the sum of wages was during the period 2003-2012 within Castellum's market areas, 1.3% and 3.0% respectively. This may be compared with 0.9% and 2.7% for the nation.

Development strenght in Sweden's labor markets

Green color indicates the best labor markets and red color the worse. Source: West Sweden Chamber of Commerce and Industry

"Svenska Nav 2013"

Castellum's real estate portfolio

Changes in real estate protfolio

Real estate portfolio Dec. 31, 2012	36,328	635
+/– Currency translation	– 15	–
+/– Unrealized changes in value	– 89	–
– Sales	– 233	– 15
+ New contstructions, extensions and reconstructions	1,279	–
+ Acquisitions	1,519	33
Real estate portfolio January 1, 2012	33,867	617
	Value, SEKm Number

Average valuation yield (SEKm)
(excl. project/land and building rights)	2012			2011
Net operating income properties	2,293		2,142
+ Estimated index adjustment 2013, 1.0% (2.0%) 34				64
+ Real occupancy rate, 94% at the lowest		268		229
+/– Property costs to a normal year		–		–
– Prop. admin., SEKm 30 per sq.m.	– 105		– 102
Normalized net operating income			2,490 2,333
Valuation (excl building rights of SEKm 443) 34,245 32,594
Average valuation yield	7.3%		7.2%

Castellum is present on the nation's major growth regions and nearly 70% of Sweden's 9.5 million inhabitants live within Castellum's regional market areas. Castellum's real estate portfolio is concentrated to a few selected sub-markets where the local subsidiaries have a strong position. Castellum's geographical submarkets can be characterised as stable, with good prospects for long-term positive. The real estate portfolio is found in 15 locations in fi ve growth regions: Greater Gothenburg, the Öresund region, Greater Stockholm, Mälardalen and Eastern Götaland. The main parts with 73% 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. The remaining 5% consists of project and undeveloped land. Castellum owns approx. 770,000 sq.m. unutilized building rights.

On December 31, 2012 Castellum's real estate portfolio comprised 635 properties (617) with a total rental value of SEKm 3,637 (3,366) and a total lettable area of 3,621,000 sq.m. (3,411,000). For properties owned at the year-end the net operating income over the year was SEKm 2,122 (1,979).

During the year investments totaling SEKm 2,798 (2,015) were made, of which SEKm 1,279 (1,158) were new constructions, extensions and reconstructions and SEKm 1,519 (857) were acquisitions. Of the total investments SEKm 692 related to Mälardalen, SEKm 605 to Greater Stockholm, SEKm 597 to the Öresund Region, SEKm 584 to Greater Gothenburg and SEKm 320 to Eastern Götaland. After sales of SEKm 253 (107) net investments amounted to SEKm 2,545 (1,908).

Castellum has on-going projects with remaining investments of approx. SEKm 1,100.

Property value

The fair value of the properties at the year-end amounted to SEKm 36,328 (33,867), corresponding to SEK 9,916 per sq.m (9,835). The average valuation yield over time for Castellum's real estate portfolio, excluding development projects, undeveloped land and building rights, can be calculated to 7.3% (7.2%). Of the total property value 90% represents properties with right of possession and 10% is site leasehold.

Rental income

Group rental income amounted to SEKm 3,073 (2,919). For offi ce and retail properties, the average contracted rental level, including charged heating, cooling and property tax, amounted to SEK 1,257 per sq.m. (1,217), whereas it for warehouse and industrial properties amounted 744 (724). Rental levels, which are considered to be in line with the market, have increased by approx. 2% in comparable portfolio compared with previous year, which mainly is an effect from indexation.

The average economic occupancy rate was 88.6% (89.3%). The total annual rental value for vacant premises during the year amounted to approx. SEKm 447 (371).

Gross leasing (i.e. the annual value of total leasing) during the year was SEKm 327 (310), of which SEKm 79 (45) were leasing of new constructions, extensions and reconstructions. Notices of termination amounted to SEKm 278 (249), of which bankruptcies were SEKm 28 (18) and SEKm 40 (24) were notices of termination with more than 18 months remaining length of contract. Hence net leasing for the year was SEKm 49 (61).

The time difference between reported net leasing and the effect in income thereof is estimated to be between 9-18 months.

Property costs

Property costs amounted to SEKm 1,042 (1,003) corresponding to SEK 298 per sq.m. (300). Consumption for heating during the year has been calculated to 97% (87%) of a normal year according to the degree day statistics.

Rental losses, i.e. charged not paid rents with the risk of loss, amounted to SEKm 10 (8), corresponding to 0.3% (0.3%) of rental income.

Värdeförändringar

No general yield change has been made in the internal valuations since the prices have been generally stable.

The change in value in Castellum's portfolio during the year amounted to SEKm –69 (194) and includes SEKm 245 which refers to acquisitions and project gains, SEKm –334 to individual adjustments on property level which mainly refers to cash fl ow but also yield and SEKm 20 from the sale of 15 properties. Net sales price amounted to SEKm 253 after reduction for assessed deferred tax and transaction costs of SEKm 13. Hence the underlying property price, which amounted to SEKm 266, exceeded the latest valuation of SEKm 233 with SEKm 33.

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.

Income over time

Income from property management over the past 10 years shows stable development and has grown by an average of 7% per year. Property values have been volatile over the past 10 years and indicate an average growth of 1.3% per year, which is in line with the infl ation.

Rental value and economic occupancy rate

Net leasing per quarter

Property costs,	Offi ce/	Warehouse/	2012	2011
SEK/sq.m.	retail	industrial	Total	Total
Operating expenses	190	118	156	165
Maintenance	48	25	37	35
Ground rent	7	7	7	7
Property tax	66	18	44	44
Direct property costs	311	168	244	251
Leasing and property administration. (indirect)	–	–	54	49
Total	311	168	298 300
Previous year	319	168	300

Income over time

Castellum's real estate portfolio 31-12-2012

	31-12-2012					January-December 2012
		Area	Property	Property	Rental	Rental	Economic	Rental	Property	Property	Net operating
	No. of	thous.	value	value	value	value	occupancy	income	costs	costs	income
	properties	sq.m.	SEKm	SEK/sq.m.	SEKm	SEK/sq.m.	rate	SEKm	SEKm	SEK/sq.m.	SEKm
Offi ce/retail
Greater Gothenburg	78	432	6,170	14,297	555	1,287	94.0%	522	130	302	392
Öresund Region	63	379	5,580	14,706	541	1,426	83.7%	453	128	337	325
Greater Stockholm	51	336	4,306	12,822	469	1,398	79.8%	374	109	325	265
Mälardalen	75	379	4,156	10,964	424	1,117	92.0%	389	116	305	273
Eastern Götaland	54	319	3,055	9,583	329	1,031	90.0%	296	91	287	205
Total offi ce/retail	321	1,845	23,267	12,613	2,318	1,257	87.8%	2,034	574	311	1,460
Warehouse/industrial
Greater Gothenburg	102	669	5,137	7,680	498	745	92.7%	461	104	156	357
Öresund Region	43	316	1,899	6,014	228	724	86.5%	198	55	173	143
Greater Stockholm	50	266	2,400	9,013	255	957	88.5%	226	58	216	168
Mälardalen	39	216	1,220	5,654	152	703	94.8%	144	40	186	104
Eastern Götaland	33	186	765	4,099	98	524	83.2%	82	21	111	61
Total warehouse/industrial	267	1,653	11,421	6,908	1,231	744	90.2%	1,111	278	168	833
Total	588	3,498	34,688	9,916	3,549	1,015	88.6%	3,145	852	244	2,293
Leasing and property administration									192	54	-192
Total after leasing and property administration									1,044	298	2,101
Development projects	18	123	1,346	–	88	–	–	45	24	–	21
Undeveloped land	29	–	294	–	–	–	–	–	–	–	–
Total	635	3,621	36,328	–	3,637	–	–	3,190	1,068	–	2,122

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 2,122 accounted for above and the net operating income of SEKm 2,031 in the income statement is explained by the deduction of the net operating income of SEKm 9 on properties sold during the year, as well as the adjustment of the net operating income of SEKm 100 on properties acquired/completed during the year, which are recalculated as if they had been owned or completed during the whole year.

Property value by property type Property value by region

Property related key ratios

	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003
Rental value, SEK/sq.m.	1,015	995	974	969	921	896	864	851	859	829
Economic occupancy rate	88.6%	89.3%	89.0%	89.8%	89.7%	87.9%	87.1%	88.1%	89.6%	90.7%
Property costs, SEK/sq.m.	298	300	298	300	268	262	259	247	255	246
Net operating income, SEK/sq.m.	601	589	569	571	559	527	494	502	514	506
Fair value, SEK/sq.m.	9,916	9,835	9,499	9,036	8,984	9,098	8,466	7,930	7,706	7,296
Number of properties	635	617	598	590	587	549	515	494	492	500
Lettable area, thousand sq.m.	3,621	3,411	3,311	3,199	3,172	3,003	2,787	2,651	2,505	2,437

Investments

Castellum's strategy for growth includes constant improvement and development of the real estate portfolio by new constructions, reconstructions and extensions as well as acquisitions. The investments are made in order to improve cash flow and increase the value of the properties. New development projects are added on an ongoing basis through the acquisition of both properties with development potential and unutilized building rights.

Castellum has in the last 10 years invested SEK 19 billion, which means SEKm 1,900 on average per year.

During 2012, Castellum invested a total of SEKm 2,798 (2,015), of which SEKm 1,279 (1,158) were new constructions, extensions and reconstructions and SEKm 1,519 (857) were acquisitions. Castellum completed major projects for a total value of approx. SEKm 450 and has ongoing projects with a remaining investment volume of approx. SEKm 1,100. Castellum's project portfolio has a good risk exposure with many projects in several locations and with a large number of customers.

During the year, 15 (4) properties have been sold. Net sales price amounted to SEKm 253 (107) after reduction for assessed deferred tax and transaction costs of SEKm 13. Hence the underlying property price, which amounted to SEKm 266, exceeded the latest valuation of SEKm 233 with SEKm 33.

Larger ongoing development projects

Castellum has ongoing projects with a remaining investment volume of approx. SEKm 1,100. Some of the larger projects are presented below.

Lindholmen 28:3 in Gothenburg

Location:	Lindholmen Science Park in Gothenburg
Area:	9,400 sq.m.
Time plan:	Completed Q2, 2013

During the fi rst quarter 2011 Castellum acquired land with building right on Lindholmen which is adjacent to the company's existing property. During November 2011 a new construction started of an offi ce building of 9,400 sq.m. on the land. The new building will be constructed according to Green Building Standard.

The investment is calculated to SEKm 262. The new construction has an occupancy rate of 21%

Dragarbrunn 20:4 in Uppsala

Location:	Dragarbrunn in central Uppsala
Area:	9,200 sq.m.
Time plan:	Completed gradually until Q3, 2014

In 2010 Castellum acquired Dragarbrunn 20:4 in central Uppsala. During 2012 a reconstruction of 5,500 sq.m. and a extension of 3,700 sq.m. started to develop the premises into modern offi ce premises. The reconstruction and extension will be constructed according to the environmental system "Miljöbyggnad.

The investment is calculated to SEKm 190. The reconstruction and extension has an occupancy rate of 33%.

Investments and sales per year

Investments and sales per region 2012

Atollen in Jönköping

Location: Munksjön in central Jönköping Area: The fi rst stage of 6,019 sq.m. Time plan: Completed Q4, 2013

Castellum has started a new production in the central land area Atollen in central Jönköping. The new construction will be carried out together with several partners and Castellum's part consists of two blocks of 10,420 sq.m. in total. Castellum's fi rst stage has started and consists of 6,019 sq.m. of which 2,790 sq.m. offi ce area, 2,212 sq.m. retail and 1,017 sq.m. residential. The new buildings will be constructed in accordance with the environmental system "Miljöbyggnad".

The fi rst stage of the investment is calculated to SEKm 170. The new construction has an occupancy rate of 10%.

Fullriggaren 4 in Malmö

Location:	Västra Hamnen in Malmö
Area:	5,400 sq.m.
Time plan:	Completed Q1, 2013

In Västra Hamnen, near central Malmö, Castellum started a new construction during 2011 of 5,400 sq.m. offi ce premises.

The building will have a fl exible construction with six fl oors and on the top fl oor, a common conference room with roof terrace will be built. The new building will be constructed in accordance with the environmental system "Miljöbyggnad" as well as Green Building Standard.

The investment is calculated to SEKm 151 and the new construction has an occupancy rate of 17%

Sändaren 1 in Malmö

Location:	Jägersro area in Malmö
Area :	14, 000 sq.m.
Time Plan:	Completed Q4, 2013

During 2010 Castellum accquired the unutilized building right Sändaren 1. In 2012 a reconstruction started to produce effectiv and fl exible offi ce premises. In addition a extension started of approx 2,300 sq.m. The reconstruction and extension will be constructed in accordance with the environmental system "Miljöbyggnad" as well as Green Building Standard.

The investment is calculated to SEKm 111. The reconstruction and extension has an occupancy rate of 87%.

Gården 15 in Linköping

Location:	Tornby shopping center in Linköping
Area:	9,705 sq.m.
Time plan:	Completed Q1, 2013

In Tornby shopping center, near E4, Castellum started in 2011 a new construction on an unutilized building right which was acquired 2009. The new building will consist of 9,705 sq.m. offi ce-, retail- and warehouse premises. The new buildings will be constructed in accordance with the environmental system "Miljöbyggnad".

The investment is calculated to SEKm 106. The new construction has an occupancy rate of 62%.

Visiret 2 in Huddinge

Location:	Smista Allé
Area:	12,357 sq.m.
Time plan:	Completed Q2, 2013

In Smista Allé Castellum has completed several buildings focused on car trade. During 2012 a new construction started of a parking facility with fi ve fl oors situated near the company's existing properties.

The investment is calculated to SEKm 71.

Inköparen 1 in Örebro

Location:	Aspholmen in Örebro
Area:	4,300 sq.m.
Time plan:	Completed Q1, 2013

In the fall 2006 Castellum acquired the property Inköparen 1 with un unutilized building right in the working area Aspholmen in Örebro. The property has a good location, right on the exit from highway E18/20. During 2009 3,600 sq.m. offi ce and retail premises were completed on the property and during 2010 another 1,700 sq.m.

During 2011 Castellum started the fi nal stage which consists of 4,300 sq.m. offi ce premises in four fl oors. The new building will be constructed in accordance with the environmental system "Miljöbyggnad" as well as Green Building Standard.

The investment is calculated to SEKm 68 and the building is fully let.

Åby 1:223 in Haninge

Location:	Jordbro working area
Area:	6,550 sq.m.
Time plan:	Completed Q1, 2014

In Jordbro working area Castellum has started a new construction of a industrial property. The building will be constructed in accordance with the environmental system "Green Building".

The investment is calculated to SEKm 67. There are no signed leases in the new property.

Larger ongoing projects 2012

	Area	Econ.occup		Investment, SEKm
Name of property	sq.m.	January 2013	Total	Remaining	Completed	Comment
Lindholmen 28:3, Gothenburg	9,400	21%	262	100	Q2 2013	New construction offi ce
Dragarbrunn 20:4, Uppsala	9,200	33%	190	158	Q3 2014	Extension and reconstruction offi ce
Atollen, Jönköping	6,019	10%	170	73	Q4 2013	New construction offi ce/retail/residentials
Fullriggaren 4, Malmö	5,400	17%	151	34	Q1 2013	New construction offi ce
Sändaren 1, Malmö	14,000	87%	111	102	Q4 2013	Extension and reconstruction offi ce
Gården 15, Linköping	9,705	62%	106	7	Q1 2013	New construction offi ce/retail/warehouse
Visiret 2, Huddinge	12,357	100%	71	48	Q2 2013	New construction car park
Inköparen 1, Örebro	4,300	100%	68	4	Q2 2013	New construction offi ce
Åby 1:223, Haninge	6,550	0%	67	53	Q1 2014	New construction warehouse/logistic
Högspänningen 1, Västerås	4,040	23%	47	43	Q1 2014	New construction logistic/offi ce
Rosersberg 11:34, Sigtuna	4,080	0%	40	8	Q1 2013	New construction warehouse/offi ce
Ättehögen 18, Jönköping	3,220	100%	39	8	Q1 2013	New construction production premises
Boländerna 35:1, Uppsala	8,750	62%	38	38	Q3 2013	Reconstruction retail
Grusbacken 3, Helsingborg	2,450	100%	36	26	Q3 2013	New construction offi ce/warehouse

Larger completed project

Castellum has larger completed projects during 2012 with a volume of approx. SEKm 450, of which some of the lager are presented below.

Location:	Ideon area in Lund
Area:	9,000 sq.m.
Time plan:	Completed Q4, 2012

At the Ideon area, close to Lund University of Technology and Lund University, Castellum has since 2001 completed buildings comprising 27,500 sq.m. offi ce premises on the property Forskaren 2, also known as Edison Park.

During 2012, Castellum completed the fi nal stage of the new construction comprising 9,000 sq.m. offi ce premises with high standard. The investment amounted to SEKm 142.

The new construction has an occupancy rate of 30%.

Trucken 5 in Borås

Location:	Viared in Borås
Area:	9,100 sq.m.
Time plan:	Completed Q4, 2012

In Viared, Borås, highway 40, Castellum has completed a new construction of 9,100 sq.m. warehouse premises.

The investment amounted to SEKm 58 and the building is fully let to one customer.

Kärra 28:18 in Gothenburg

Location:	Tagene area on Hisingen in Gothenburg
Area:	5,440 sq.m.
Time plan:	Completed Q3, 2012

In the working area Tagene, close to E6, on Hisingen in Gothenburg Castellum has completed a warehouse and logistic building of 5,440 sq.m. The investment amounted to SEKm 47 and the building is fully let.

Larger completed project 2012

	Area	Econ. occup.		Investment, SEKm
Name of property	sq.m	January 2013	Total	of which 2012	Completed Comment
Forskaren 2, Lund	9,000	30%	142	18	Q4 2012	New construction offi ce
Trucken 5, Borås	9,100	100%	58	55	Q4 2012	New construction warehouse
Kärra 28:18, Gothenburg	5,440	100%	47	34	Q3 2012	New construction warehouse
Elementet 4, Sollentuna	3,404	100%	34	15	Q3 2012	New construction warehouse/logistic
Visionen 1, Jönköping	400	100%	29	10	Q1 2012	Reconstruction offi ce
Malte 23, Malmö	3,770	100%	27	19	Q2 2012	Reconstruction offi ce
Veddesta 1:9, Järfälla	2,270	28%	24	9	Q2 2012	New construction warehouse/offi ce

Larger acquisitions during 2012

During the year, Castellum has acquired 33 properties for a total amount of SEKm 1,519.

Litografen 1 & 2, Elektrikern 3, Bleckslagaren 1, Kontrollanten 12 and Distributören 2 in Örebro

Location:	Aspholmen, Bista and Pilängen in Örebro
Area:	62,881 sq.m.
Access:	September 2012

In the area Aspholmen, Bista and Pilängen in Örebro Castellum has acquired 6 warehouse, offi ce and retail properties comprising 62,881 sq.m. in total. One of the properties has an unutilized building right of approx. 20,000 sq.m. The properties are located near the company's existing properties.

The investment amounted SEKm 299 and the buildings have an occupancy rate of 85%.

Elektronen 1, Elektronen 4, Elementet 3 in Sollentuna Rosteriet 5 in Stockholm, Segersby 1 in Botkyrka Slipstenen 1 in Huddinge

Location:	Sollentuna, Southern Stockholm, Botkyrka and Huddinge
Area:	26,672 sq.m.
Access:	December 2012

Castellum has acquired a portfolio comprising six properties of 26,672 sq.m. in total of which 20,486 sq.m. warehouse premises, 4,023 sq.m. industrial premises and 2,163 sq.m. offi ce premises. The properties are mostly located near the company's existing portfolio.

The investment amounted SEKm 213 and the acquired properties has an occupancy rate of 94%.

Revolversvarven 10, Revolversvarven 12 and Krukskärvan 6 in Malmö

Location: Fosie working area in Malmö Area: 13,574 sq.m. Access: December 2012

Castellum has acquired two properties and one site leasehold in the Fosie area in Malmö. The properties consists of 13,574 sq.m. of which 10,929 sq.m. offi ce premises and 2,645 sq.m. warehouse premises. The site leasehold Kruksskärvan 6, consists of an unutilized building right of approx. 9,000 sq.m. The properties are located near the company's existing ortfolio.

The investment amounted to SEKm 167 and the buildings are fully let.

Veddesta 2:68, Domnarvet 18 and 36, Ostmästaren 2 in Stockholm Location: Veddesta, Lunda och Årsta in Greater Stockholm Area: 15,500 sq.m. Access: September 2012

Castellum has acquired four properties in Veddesta, Lunda and Årsta in the Stockholm area. The properties, which consists of warehouse and offi ce premises, are located near the company's existing portfolio.

The investment amounted to SEKm 155 and the building has an occupancy rate of 96%.

Dragarbrunn 21:5 and Dragarbrunn 21:1 in Uppsala

Central Uppsala
7,260 sq.m.
December 2012

CastelIum has acquired two offi ce properties in central Uppsala located near the company's existing portfolio. Dragarbrunn 21:5 consists of 6,527 sq.m offi ce premises with an occupancy rate of approx. 60%. Dragarbrunn 21:1 is a fully let offi ce property of 733 sq.m.

The investment amounted to SEKm 120.

Högsbo 17:7, 36:6 and 36:7 in Gothenburg

Location:	Högsbo working area in Gothenburg
Area:	17,540 sq.m.
Access:	April 2012

In Högsbo, Gothenburg, Castellum has acquired three properties of 17,540 sq.m. in total, which consists 50% of offi ce premises and 50% warehouse premises. The properties are located near the company's existing portfolio.

The investment amounted to SEKm 148 and the buildings have an occupancy rate of 94%.

Helgeshøj Allé 38 in Copenhagen, Denmark

Location:	Høje-Taastrup, west of central Copenhagen
Area:	17,078 sq.m.
Access:	June 2012

In Höje-Taastrup, west of central Copenhagen, Castellum has acquired 17,078 sq.m. warehouse and offi ce premises. On the property there is an unutilized building right of 15,000 sq.m. The property is in good condition and located near the properties which were acquired during the recent years in Copenhagen.

The investment amounted to SEKm 111 and the building has an occupancy rate of 96%.

Nejlikebuketten 4 in Malmö

Location:	Fosie/Jägersro in Malmö
Area:	6,565 sq.m.
Access:	December 2012

In Fosie/Jägersro Castellum has acquired a offi ce property of 6,565 sq.m. The property is well situated near "Inre Ringvägen" near the company's existing portfolio.

The investment amounted SEKm 83 and the building is fully let.

Riggen 2 in Huddinge

Location: Huddinge Area: 5,457 sq.m. Access: September 2012

In direct connection with highway E4/E20 in Huddinge Castellum has acquired an offi ce property of 5,457 sq.m. The property is located near the company's existing portfolio.

The investment amounted SEKm 56 and the building is fully let.

Transformervej 14-16 in Copenhagen, Denmark

Location:	Herlev, north west of central Copenhagen
Area:	5,900 sq.m.
Access:	June 2012

In Herlev, north west of central Copenhagen, Castellum has acquired a fully let offi ce and warehouse property of 5,900 sq.m.

The investment amounted to SEKm 46 and the building is fully let.

Larger acquisitions 2012

	Area	Econ. occup.	Acquisition
Property	sq.m.	Jan 2013	SEKm	Access	Category
Litografen 1 and 2, Elektrikern 3, Bleckslagaren 1, Kontrollanten 12, Distributören 2 in Örebro	62,881	85%	299	Sept 2012	Warehouse/offi ce/retail
Elektronen 1 and 4, Elementet 3, Sollentuna Rosteriet 3 in Stockholm, Segersby 1 in Botkyrka and Slipstenen 1 in Huddinge	26,672	94%	213	Dec 2012	Warehouse/offi ce/retail
Revolversvarven 10 and 12, Krukskärvan 6, Malmö	13,574	100%	167	Dec 2012	Offi ce/warehouse
Veddesta 2:68, Domnarvet 18 and 36, Ostmästaren 2, Stockholm	15,500	96%	155	Sept 2012	Offi ce/warehouse
Högsbo 17:7, 36:6 and 36:7, Gothenburg	17,540	94%	148	Apr 2012	Offi ce/warehouse
Dragarbrunn 21:1 and 21:5, Uppsala	7,260	61%	120	Dec 2012	Offi ce
Helgeshøj Allé 38, Copenhagen	17,078	96%	111	June 2012	Warehouse/offi ce
Nejlikebuketten 4, Malmö	6,565	100%	83	Dec 2012	Offi ce
Riggen 2, Huddinge	5,457	100%	56	Sept 2012	Offi ce
Transformervej 14-16, Copenhagen	5,900	100%	46	June 2012	Offi ce
Flahult 21:5, Jönköping	9,023	100%	44	Sept 2012	Warehouse
Acquisitions below SEKm 30	10,285	97%	77
Total	197,735	90%	1,519

Larger sales during 2012

	Area	Underlying prop.	Trans. costs	Net sales
Property	sq.m.	price, SEKm	deferred tax, SEKm	price SEKm	Vacated	Category
Märsta 16:2, 17:6, 21:54, 16:3, 1:219 and Broby 11:2, Sigtuna	16,620	123	– 7	116	June 2012	Industrial/offi ce/ warehouse
Lorensberg 46:5, Gothenburg	970	44	– 4	40	May 2012	Offi ce
Vindruvan 21, Värnamo	3,140	37	0	37	Oct 2012	Residential
Lindome 2:40 and 2:47, Mölndal	12,430	33	– 2	31	June 2012	Warehouse
Property sales below SEKm 30	6,260	29	0	29
Total	39,420	266	– 13	253

Building Rights and Potential Development Projects

Part of Castellum's strategy is to build new premises when this is a competitive alternative. In order to be able to offer the customer new premises with the shortest possible time for moving in, it is a competitive advantage to own building rights in attractive locations with approved plans.

Castellum has approx. 770,000 sq.m. unutilized building rights. For a number of the unutilized building rights there are fi nalized project plans which can be started relatively promptly.

Building rights by region and sq.m.

Unutilized building rights are valued at SEKm 758 corresponding to approx. SEK 990 per sq.m. on average. Of the building rights approx. 280,000 sq.m. corresponding to approx. SEKm 315 are reported as development projects and undeveloped land. The remaining are reported among offi ce/retail and warehouse/industrial properties since they are addititions to already developed properties. During 2012 Castellum has utilized 31,000 sq.m. of the existing building rights.

The process from land to completion can be time consuming and may differ between different municipalities in the country. Below the stage in community development are shown.

Building rights per region Building rights

thousand sq.m.
Greater Gothenburg	279
Högsbo-Sisjön-Åbro	108 Building rights in one of Sweden's largest industrial estates, i.e. well exposed Generatorn 1 of 15,000 sq.m.
Hisingen	34 Building rights in industrial estates, permit almost only new construction of warehouse/industrial
Gothenburg	16 Building rights focused on offi ce premises
Kungsbacka	34 Building rights in Varla of 20,000 sq.m. focused on offi ce/warehouse/industrial
Remaining of Greather Gothenburg	87 Tjärblomman 2 and Tusenskönan 4 in Mölndal with building rights of 15,000 resp. 10,000 sq.m.
Öresund region	115
Malmö	50 Building rights in industrial estates, permit almost only new construction of warehouse/industrial
Lund	29 Building rights in the Ideon area close to Lunds University of Technology
Helsingborg	19 Kulan 1 with building rights of 10,000 sq.m.
Copenhagen	17 Building right on Helgeshöj Allé in the Taastrup area
Greater Stockholm	189
Sollentuna	111 The majority in Norrviken with good connections to E4/E20 north of Stockholm
Huddinge	32 Smista Allé located at Kungens Kurva
Johanneshov	38 Several adjacent properties with unutilized building rights permitting coordinated development of the area
Remaining of Greater Stockholm	8 Building rights in Solna and Järfälla
Mälardalen	91
Örebro	54 Several building rights in the Aspholmen area
Västerås	25 Kopparlunden with building rights of 10,000 sq.m.
Uppsala	12 Building rights in the Boländerna area
Eastern Götaland	91
Växjö	28 Bagaren 10, approx. 10,000 sq.m. with possibilities for new construction of offi ce/retail/warehouse
Värnamo	25 Among others, building rights of 14,000 sq.m. in Hornaryd
Jönköping	23 Among others, retail building rights of Vingen 4
Linköping	8 5,000 sq.m. in Mjärdevi Science Park
Remaining of Eastern Götaland	7 Building rights in Gnosjö and Vaggeryd
Total	765

Castellum's regions

Öresund Region

No. of properties	194
Area, thousand sq.m	1,103
Fair value, SEKm	11,569
Rental value, SEKm	1,056
Net operating income, SEKm	699
Net investments, SEKm	584
Net leasing 2012, SEKm	19

Proportion of Castellum's portfoilo Proportion of Castellum's portfoilo

No. of properties	117
Area, thousand sq.m	726
Fair value, SEKm	7,758
Rental value, SEKm	783
Net operating income, SEKm	416
Net investments, SEKm	597
Net leasing 2012, SEKm	13

Operating company, 46 employees

Greater Stockholm

Proportion of Castellum's portfoilo Proportion of Castellum's portfoilo Proportion of Castellum's portfoilo

Mälardalen

No. of properties	120
Area, thousand sq.m	624
Fair value, SEKm	5,763
Rental value, SEKm	610
Net operating income, SEKm	361
Net investments, SEKm	692
Net leasing 2012, SEKm	– 4
Operating company, 46 employees

Eastern Götaland

11%
No. of properties	95
Area, thousand sq.m	518
Fair value, SEKm	4,080
Rental value, SEKm	432
Net operating income, SEKm	245
Net investments, SEKm	320
Net leasing 2012, SEKm	15
Operating company, 35 employees

Greater Gothenburg

Castellum's real estate portfolio in Greater Gothenburg comprises in addition to Gothenburg, Alingsås, Härryda, Kungsbacka, Lerum, Mölndal and Partille also Borås and Halmstad. These regions combined have approx. 1.4 million inhabitants, which corresponds to approx. 14% of Sweden's total population.

Greater Gothenburg is one of three big-city regions in Sweden and one of the country's most important centers for transport and industry.

The fi ve largest real estate owners

Greater Gothenburg	Premises thous. sq.m.
Castellum (Eklandia and Harry Sjögren)	967
Wallenstam	474
Vasakronan	419
Platzer	402
Hemfosa	197
Borås	Premises thous. sq.m
SveaReal	137
Castellum (Harry Sjögren)	102
Klövern	83
Nordic Real Estate Partners	83
Hemsö	67
Halmstad	Premises thous. sq.m
Fem Hjärtan	55
Försäkringsbolaget Alecta	54
Rikshem	52
Klövern	49
Fragerus Fastigheter	48
Castellum (Harry Sjögren)	34

Number of commercial premises (excl. residential) owned as at 31-12-2012. Municipal and State-owned companies and government institutions have been excluded.

Greater Gothenburg is centrally located with a well-developed infrastructure, Scandinavia's largest harbour, the airports and the highways E6 and E20 - all contributing to the notion that the region is the best logistical centre in Scandinavia. Greater Gothenburg enjoys a large local labour market, mainly due to favourable transportation and commuting possibilities. Infrastructure will be further improved in future years by a new bridge over Göta Älv.

Gothenburg's commercial and business life is characterized by multifaceted enterprise and knowledge-intensive companies, even if the dominant industries include manufacturing, trade and logistics. The broad business structure of Gothenburg has generated growth both within knowledge-intensive and hi-tech companies as well as in traditional businesses.

The Åbro district in Mölndal is adjacent to Högsbo/Sisjön in Gothenburg municipality and together, they form one of Sweden's largest continuous industrial and commercial areas.

In Borås, commerce and logistics are strong sectors, which, together with the textile and fashion industries, generate an intense international trade. Strong infrastructure and proximity to Landvetter Airport and the Port of Gothenburg help facilitate trade.

Source: Byggstatistik and Castellum		Greater Gothenburg	Borås Halmstad
	Population	1,110,000	168,000	117,000
	Population growth 2003-2012/year (the nation 0.7%)	1.0%	0.5%	0.6%
	Students at university/college	49,000	10,000	9,000
	Employment growth 2003-2012/year (the nation 0.9%)	1.3%	0.7%	1.1%
	Gross wages growth 2003-2012/year (the nation 2,7%)	3.1%	2.6%	3.0%

Source: Evidens och SCB

The economy in the Halmstad region is multifaceted and dominated by small and medium-sized companies within manufacturing, service, commerce and tourism. The region's solid infrastructure encompasses road, train, air and sea connections.

Rental market

The rental market in Greater Gothenburg remains stable. Central Gothenburg is still characterized by a larger demand than supply for offi ce premises, which has led to continued low vacancy rates, slightly rising rental levels and few relocations. The rental market remains steady for both rental levels and vacancy rates in other property categories as well as for other areas of Greater Gothenburg.

In Borås, the rental market was deemed constant for 2012, with largely unchanged rents and vacancies for all property types.

For 2012, Halmstad reports basically unchanged rents and vacancy rates for both offi ce and warehouse premises.

Much like the rest of the country, the rental market for retail in the region is characterized by a degree of caution due to a general slowdown in the retail sector.

Real estate market

In 2012, the transaction volume continued to increase in Greater Gothenburg and amounted to approx. SEK 13 billion, which meant an increase from the previous year and the highest turnover since 2007. The number of major transactions also increased in 2012, the largest of which was the sale of an offi ce property portfolio in central Gothenburg for more than SEK 2.1 billion. The yield for several acquisitions in central Gothenburg ranged from 5.0% to 5.5%.

The largest transaction in Borås was the sale of a logistics property for SEKm 300, while it in Halmstad was a sale of a shopping mall conducted in two separate transactions for a total of SEKm 560 . Buyers were mainly Swedish players, but foreign players were also among the buyers.

Rent SEK/sq.m.

Source: NAI Svefa Offi ce rent includes costs for heating excl. additions and property tax costs Warehouse/industrial are exkl. costs for heating, additions and property tax costs.

Yields at sales

Noted price/estimated values SEK/sq.m.

Income from property management

Investments and sales

Rental value and economic occupancy rate

Net leasing

Greater Gothenburg summary

Castellum's real estate portfolio

Castellum's real estate portfolio in Greater Gothenburg comprises 194 properties (193) with a total area of 1,103,000 sq.m. (1,085,000) and a fair value of SEKm 11,569 (11,023). For properties owned at year end, rental value amounted to SEKm 1,056 (1,026) on an annual basis and net operating income was SEKm 699 (698). Investments during the year amounted to SEKm 584 (728). After sales of SEKm 79 (22) net investments amounted to SEKm 505 (706).

Central and eastern Gothenburg investments consist mainly of offi ce and retail properties, a district corresponding to 28% of Castellum's real estate portfolio in Greater Gothenburg. The portfolio on Hisingen and in Högsbo/Sisjön consists of offi ce properties as well as warehouse and industrial properties.

In the municipality of Mölndal, corresponding to 14% of Castellum's real estate portfolio in Greater Gothenburg, there are mainly warehouse and industrial properties. Offi ces are also to be found in Åbro and Lackarebäck.

The real estate portfolio in Borås municipality corresponds to 7% of Castellum's real estate portfolio in Greater Gothenburg. Castellum mainly owns offi ce and retail properties in central Borås, as well as a smaller number of warehouse and industry properties.

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

See also the section headlined Castellum's Real Estate Schedule 2012, with real-estate schedule, maps and fi nancial information.

Rental development

Castellum's average rental level is SEK 1,287 per sq.m. for offi ce/retail and SEK 745 per sq.m. for warehouse/industrial premises. Rental levels have increased by 0.8% in the comparable portfolio compared with previous year.

The average economic occupancy rate was 93.4%, which is 2.0%-units lower than previous year.

Gross leasing (i.e. the annual value of total leasing) during the year was SEKm 68 (72), of which SEKm 15 (7) was leasing of new constructions, extensions and reconstructions. Notices of termination amounted to SEKm 49 (65), of which bankruptcies were SEKm 3 (7) and SEKm 19 (16) were notices of termination with more than 18 months remaining in contract length. Hence net leasing for the year totalled SEKm 19 (7).

Subsidiaries

Castellum's properties in Greater Gothenburg are owned and managed by the wholly owned subsidiaries Eklandia Fastighets AB, with head offi ce in Gothenburg, and Harry Sjögren AB, with 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 primarily located in Högsbo/Sisjön in southern Gothenburg, Mölndal, Borås, Halmstad, Kungsbacka, Lerum, Partille, Alingsås and Härryda. At year end Eklandia had 44 employees and Harry Sjögren had 30 employees.

	December 31, 2012				January-December 2012
	Area Property No of thous. value		Investments, SEKm Property New constr., value extensions, Acquisi		Rental Rental value value	Econ. occupancy	Rental income	Property costs	Property costs	Net operating income
	prop.	sq.m.	SEKm	SEK/sq.m	reconstruc.	tions	SEKm	SEK/sq.m	rate	SEKm	SEKm	SEK/sq.m	SEKm
Offi ce/retail	78	432	6,170	14,297	106	70	555	1,287	94.0%	522	130	302	392
Warehouse/industrial	102	669	5,137	7,680	187	104	498	745	92.7%	461	104	156	357
Total	180		1 101 11,307	10,275	293	174	1,053	957	93.4%	983	234	213	749
Leasing and property administration											50	46	– 50
Development projects and undeveloped land	14	2	262	–	117	–	3	–	–	2	2	–	0
Total	194		1,103 11,569	–	410	174	1,056	–	–	985	286	259	699

The Öresund region

The Öresund region comprises the Malmö region with Malmö, Lund and Helsingborg, and 22 other municipalities, and the Danish side of the Öresund. The region produced about a quarter of Sweden's and Denmark's GDP and have a total population of about 3.8 million people.

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

The fi ve largest real estate owners
Malmö Region	Premises thous. sq.m.
Wihlborgs	1,256
Castellum (Briggen)	681
Vasakronan	304
Kungsleden	195
Klövern	183
of which Lund	Premises thous. sq.m
Castellum (Briggen)	132
Wihlborgs	128
Hemsö	102
Vasakronan	86
North Bridge Capital Partners	77
of which Helsingborg	Premises thous. sq.m
Wihlborgs	519
Castellum (Briggen)	159
Norrporten	112
Brinova	95
Northern Logistic Property	75
Copenhagen	Premises thous. sq.m
Danica Ejedomme	1,100
Nordea Ejendomme	900
Jeudan	700
Dades	700
ATP Ejendomme	500
Castellum (Briggen)	45

Number of commercial premises (excl. residential) owned as at 31-12-2012. Municipal and State-owned companies and government institutions have been excluded. Source: Byggstatistik and Castellum

The infrastructure is highly developed in the region with the Öresund Bridge to Denmark, several European highways, Malmö Airport, Kastrup Airport, a modern port and favourable railway connections. Infrastructure investments such as the Öresund Bridge and the City Tunnel drives development forward.

Earlier, Malmö's commercial and business life was dominated by heavy industry, but the current mix now features both small and medium-sized knowledge-based companies. Dominating sectors are logistics, trade and pharmaceuticals. Urban development in Malmö has classically been allocated to Västra hamnen and since the city tunnel opened also to Hyllie.

Copenhagen distinguishes itself by being the capital of Denmark, a natural economic hub and the seat of national politics. Trade, transport and the fi nancial sector now constitute the dominating business sectors.

Lund enjoys well-developed infrastructure via European highways E22 and E6, as well as close proximity to the two airports, Malmö and Kastrup. Lund is one of Sweden's foremost university cities, and this is refl ected in local commercial and business life, which is knowledgeoriented, and features several Swedish and international researchintensive companies. Many of these companies have been developed in collaboration with the University and the Ideon Science Park. City

	Malmö Regionen	of which	of which	Copenhagen
		Lund	Helsingborg
Population	1,097,000	113,000	132,000	1,700,000
Population growth 2003-2012/year (the nation 0.7%)	1.1%	1.3%	1.1%	0.7%
Students at university/college	59,000	39,000	–	63,000
Employment growth 2003-2012/year (the nation 0.9%)	1.3%	1.4%	1.3%	– 0.4%
Gross wages growth 2003-2012/year (the nation 2,7%)	3.0%	3.0%	3.0%	i. u.

Source: Evidens and SCB

Source: NAI Svefa Offi ce rent includes costs for heating excl. additions and property tax costs Warehouse/industrial are exkl. costs for heating, additions and property tax costs.

Yields at sales

Noted price/estimated values SEK/sq.m.

development in Lund is allocated to Lund Northeast/Brunnshög where a new city district is being developed in close connection to the research facilities MAX IV and ESS. The area is planned for 4,000 residents and 40,000 employees. The MAX IV is expected to be completed in year 2015, and the expected completion of ESS is in 2020.

Helsingborg holds a strategic location on highways E4 and E6 as well as Sweden's third largest container port. Commercial and business life here is defi ned by trade and logistics, but also by food, chemical and pharmaceutical industries. In Helsingborg, there is ongoing development of a former port area, H+, which will be transformed into a new city district within the next 20 years.

Rental market

There is a high demand for offi ce premises in Malmö, although slowdowns were observed towards the end of 2012. New construction of offi ce premises has led to increased supply, but rental levels remain stable. Warehouses and industrial premises are also perceived as having unchanged rental levels and vacancy rates.

In Lund, the effects of new construction and restructuring-based vacancies remain and the supply of offi ce premises is not matched by demand. This has led to some pressure on rents. However, demand for new offi ce premises is expected to increase parallel to the construction and completion of new research facilities. Rental levels for warehouses are expected to remain stable.

There is still a strong demand for warehouse and logistics facilities in Helsingborg, and both rental level and vacancy rate are seen as stable. The rental market for offi ce premises is steady with unaltered rents and vacancies.

As for much of the rest of the country, the retail rental market on the Swedish side of the Öresund region is characterized by a certain degree of caution due to a decrease in retail sales. In Malmö, a increased supply of retail premises in 2012 can be noted.

In 2012, Copenhagen had a solid rental market for offi ce premises downtown, whereas there was slight pressure on rental levels in several submarkets outside the city centre. Vacancy levels are largely unchanged. Demand in submarkets outside the city centre is expected to increase gradually, as growth in Denmark increases. Rental levels and vacancy rates remain fi rm for warehouses. However, the market for older warehouses is still diffi cult.

Real estate market

The 2012 transaction volume for the region was approx. SEK 27 billion. Of this, about SEK 17 billion relate to Copenhagen and approx. SEK 10 billion to Malmö, Lund and Helsingborg. In the Swedish part of the region, transaction volumes increased by 64% compared with the previous year and volumes are higher than the average turnover for the past fi ve years. For Copenhagen, the 2012 volume totalled an 11% increase in comparison with 2011. One of the major business transactions in Copenhagen in 2012 concerned the sale of an offi ce building for the equivalent of approx. SEKm 600.

The Swedish side of the region is dominated by Malmö, where more than 90% of the transaction volume was carried out. The number of major transactions increased in Malmö in 2012, and the largest single transaction was a retail and offi ce property, which were sold for SEK 1.2 billion. Sales of offi ce buildings in central Malmö were conducted at a yield of 5.0% - 6.0%. Swedish players dominate among both sellers and buyers, but foreign players have also been active.

Three major transactions were carried out in Lund; the largest of which concerned a hotel property sold for SEKm 225. No single large business transaction was conducted in Helsingborg during the year.

Castellum's real estate portfolio

Castellum's real estate portfolio in the Öresund region comprises 117 properties (109) with a total area of 726,000 sq.m. (678,000) and a fair value of SEKm 7,758 (7,303). For properties owned at year end, the rental value amounted to SEKm 783 (703) on an annual basis and net operating income was SEKm 416 (388). Investments during the year amounted to SEKm 597 (541); no sales were carried out during the year.

51% of Castellum's portfolio in the Öresund region is located in Malmö and 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, corresponding to 26% of the company's real estate portfolio in the Öresund region, the portfolio comprises offi ce as well as warehouse and industrial properties in the industrial estates Råbyholm and 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, 17%, comprises mainly offi ce, warehouse and industrial properties situated primarily in the Berga industrial estate and in central Helsingborg.

Albertslund, Brøndby and Vibeholm in Copenhagen, Denmark, comprise mainly offi ce premises corresponding to 6% of Castellum's portfolio in the Öresund Region.

See also the section headlined Castellum's Real Estate Schedule 2012, with real-estate schedule, maps and fi nancial information.

Rental development

Castellum's average rental level is SEK 1,426 per sq.m. for offi ce/retail and SEK 724 per sq.m. for warehouse/industrial premises. Rental levels have increased by 2.4% in the comparable portfolio compared with previous year.

The average economic occupancy rate was 84.5%, which is 0.7%-units lower than previous year.

Gross leasing (i.e. the annual value of total leasing) during the year was SEKm 98 (63), of which SEKm 31 (11) were leasing of new constructions, extensions and reconstructions. Notices of termination amounted to SEKm 85 (40), of which bankruptcies were SEKm 6 (2) and SEKm 2 (3) were notices of termination with more than 18 months remaining of contract. Hence net leasing for the year was SEKm 13 (23).

Subsidiaries

Castellum's properties in the Öresund region are owned and managed by the wholly owned subsidiary Fastighets AB Briggen, with headquarters in Malmö and a local offi ce in Helsingborg, Lund and Copenhagen. At year end, Briggen had 46 employees.

Öresund region summary

Income from property management

Investments and sales

Rental value and economic occupancy rate

Net leasing

			December 31, 2012		January-December 2012
						Investments, SEKm					Net
		Area	Property	Property	New constr.,		Rental	Rental	Econ.	Rental	Property	Property operating
	No of	thous.	value	value	extensions, Acquisi		value	value	occupancy	income	costs	costs	income
	prop.	sq.m.	SEKm	SEK/sq.m	reconstruc.	tions	SEKm	SEK/sq.m	rate	SEKm	SEKm	SEK/sq.m	SEKm
Offi ce/retail	63	379	5,580	14,706	83	257	541	1,426	83.7%	453	128	337	325
Warehouse/industrial	43	316	1 899	6,014	25	159	228	724	86.5%	198	55	173	143
Total	106	695	7,479	10,758	108	416	769	1,107	84.5%	651	183	263	468
Leasing and property administration											48	68	– 48
Development projects
and undeveloped land	11	31	279	–	62	11	14	–	–	1	5	–	– 4
Total	117	726	7,758	–	170	427	783	–	–	652	236	331	416

Greater Stockholm

The Stockholm region is Sweden's largest employment area with approx. 2.2 million inhabitants, or 23% 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

Population	2,181,000
Population growth 2003-2012/year (the nation 0.7%)	1.4%
Students at university/college	99,000
Employment growth 2003-2012/year (the nation 0.9%)	1.6%
Gross wages growth 2003-2012/year (the nation 2.7%)	3.1%

Source: Evidens and SCB

The fi ve largest real estate owners

Greater Stockholm	Premises thous. sq.m.
(Municipalities Botkyrka, Huddinge, Järfälla, Nacka, Sigtuna, Sol
lentuna, Solna, Stockholm, Upplands-Väsby)
Vasakronan	1,728
Fabege	1,138
Atrium Ljungberg	664
Castellum (Brostaden)	650
AMF Pension	625

Number of commercial premises (excl. residential) owned as at 31-12-2012. Municipal and State-owned companies and government institutions have been excluded. Source: Byggstatistik and Castellum

Stockholm distinguishes itself as the beautiful capital of Sweden, where major political institutions and a large number of Swedish companies have their headquarters. The entire region - i.e., the city centre of Stockholm and its suburbs and surrounding cities - is continuously expanding and evolving. The region has Sweden's largest service sector, spread over many business areas and accounting for approx. 60% of total gross wages, which can be compared to 40% for the nation. During the last decade, both employment growth and population growth have been the 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 service-based companies, whereas there is a higher proportion of manufacturing and distribution enterprises in the south. Both in the north and the south, an increase in the number of workplaces has gradually been concentrated to larger business districts. Several infrastructure projects involving both car roads and tram way are currently underway in Stockholm.

North

Northern Greater Stockholm includes Solna, Sundbyberg, Järfälla and Sollentuna. The infrastructure in Northern Greater Stockholm is well developed with highways E4 and E18, as well as the Arlanda and Bromma airports. There are also several harbours, primarily used for passenger transportation. New businesses and growth in the northern areas have mainly been concentrated to the area between Stockholm and Arlanda, where a number of large business areas such as Kista and parts of Sollentuna and Upplands-Väsby have been established. A prevalent trend is that several large enterprises move from central Stockholm to northern municipalities such as Solna and Sollentuna.

Sollentuna, with its strategic location between the Stockholm city centre and Arlanda Airport, embraces a multitude of disparate submarkets and has expanded particularly within retail and service.

The municipalities Solna and Sundbyberg and the districts Mariehäll and Ulvsunda in Bromma are geographically concentrated, with proximity to the city centre of Stockholm and a well-developed infrastructure. The total offi ce market in this area is second only to that of the inner city making it the second largest offi ce market within the entire Stockholm region - and has shown strong growth in the number of employees in offi ce-space-intensive businesses.

Kista Science City, located in Kista, is one of the most dynamic business parks in Europe, as well as one of the largest business areas within the Stockholm region, with approx. 10,000 companies. More than 70,000 people work here. Companies here predominantly operate in the fi elds of information technology and telecommunication. The retail sector has also grown substantially.

South

Southern Stockholm contains several offi ce and industrial areas. Companies in the Globen area, including Johanneshov, mainly operate in the service, retail and transport sectors, and the area enjoys solid infrastructure. Marievik/Liljeholmen is a more pronounced offi ce area just outside Södermalm and the inner city of Stockholm. Commercial and industrial life in Västberga, situated next to the E4 highway and the main railway line, is characterized by transport and logistics, manufacturing, construction, and warehousing.

Skärholmen in Huddinge municipality, located in the most southerly part of Stockholm, is dominated by trade, and Kungens Kurva is the largest shopping areas in the Nordic Countries.

Rental market

During 2012, the rental market for most submarkets in Greater Stockholm has been solid, and rental and vacancy levels remain virtually unchanged. For Stockholm city centre vacancy rates fell slightly during the year, but still featured unchanged rental levels.

A major trend in the region is an increased focus on modern and costeffective offi ce space. This has led to more companies moving from the inner city to newly constructed offi ce premises outside the city centre. The process will be gradual over coming years and its impact on the rental market is uncertain. It may be noted that recent years addition of offi ce space in the region has not had any direct effect on vacancies or rental levels.

There is a high demand for warehouse and logistics facilities and no major changes have occurred with respect to vacancies and rental levels. A certain degree of caution can be seen in the region's retail rental market due to a slowdown in retail.

Real Estate Market

Greater Stockholm's transaction volume reached approx. SEK 45 billion, which is a 7% increase in comparison with 2011 and represents a high turnover compared with the past fi ve years. Two thirds of the transactions were carried out outside central Stockholm. In relation to the rest of the country, the transactions carried out in Greater Stockholm represent about 40%, which is in line with 2011. Approximately ten transactions of more than SEK 1 billion were closed in Greater Stockholm in 2012. Most of these concerned offi ce properties and - in most cases - buyers and sellers were Swedish institutions. The largest single transaction, however, was a commercial property that sold for SEK 4.6 billion and both buyer and seller were foreign players.

In 2012, several business deals were closed in central Stockholm with yields ranging from 4.5% to 5.5%.

Source: NAI Svefa Offi ce rent includes costs for heating excl. additions and property tax costs Warehouse/industrial are exkl. costs for heating, additions and property tax costs.

Yields at sales

Noted price/estimated values SEK/sq.m.

Income from property management

Investments and sales

Net leasing

Castellum's real estate portfolio

Castellum's real estate portfolio in Greater Stockholm comprises 109 properties (100) with a total area of 650,000 sq.m. (573,000) and a fair value of SEKm 7,158 (6,557). For properties owned at year end, the rental value amounted to SEKm 756 (675) on an annual basis and net operating income totalled SEKm 401 (347). Investments during the year amounted to SEKm 605 (226) and no properties have been sold.

In the northern suburbs, which comprise 37% of Castellum's real estate portfolio in Greater Stockholm, larger offi ce and retail properties are located in Upplands-Väsby and Sollentuna. In the areas Veddesta/Lunda and Rosersberg there are mainly warehouse and industrial properties.

Properties in the southern suburbs, corresponding to 38% of Castellum's real estate portfolio in Greater Stockholm, are located in areas such as Johanneshov, Skärholmen/Kungens kurva and Nacka. In these areas there are mainly larger offi ce and retail properties. Warehouse and industrial properties can also be found in Botkyrka.

In the western suburbs, comprising 25% of Castellum's real estate property portfolio in Greater Stockholm, larger offi ce and retail properties are located in Mariehäll in Bromma, Kista and Solna.

See also the section headlined Castellum's Real Estate Schedule 2012, with real-estate schedule, maps and fi nancial information.

Rental development

Castellum's average rental level is SEK 1,398 per sq.m. for offi ce/retail and SEK 957 per sq.m. for warehouse/industrial premises. Rental levels have increased by 3.0% in the comparable portfolio compared with previous year.

The average economic occupancy rate was 82.8%, which is 0.6%-units higher than previous year.

Gross leasing (i.e. the annual value of total leasing) during the year was SEKm 66 (73), of which SEKm 6 (4) was leasing of new constructions, extensions and reconstructions. Notices of termination amounted to SEKm 60 (70), of which bankruptcies were SEKm 10 (3) and SEKm 1 (4) were notices of termination with more than 18 months remaining of contract. Hence net leasing for the year was SEKm 6 (3).

Subsidiary

Castellum's properties in Greater Stockholm are owned and managed by the wholly owned subsidiary Fastighets AB Brostaden, headquartered in Stockholm. Brostaden's operations are divided into three market areas. At year end, Brostaden had 45 employees.

Greater Stockholm summary

			December 31, 2012		January-December 2012
	No of prop.	Area thous. sq.m.	Property value SEKm	Property value SEK/sq.m	Investments, SEKm New constr., extensions, Acquisi reconstruc.	tions	Rental value SEKm	Rental value SEK/sq.m	Econ. occupancy rate	Rental income SEKm	Property costs SEKm	Property costs SEK/sq.m	Net operating income SEKm
Offi ce/retail	51	336	4,306	12,822	65	197	469	1,398	79.8%	374	109	325	265
Warehouse/industrial	50	266	2,400	9,013	81	229	255	957	88.5%	226	58	216	168
Total	101	602	6,706	11,138	146	426	724	1,203	82.8%	600	167	277	433
Leasing and property administration											40	67	– 40
Development projects and undeveloped land	8	48	452	–	33	–	32	–	–	14	6	–	8
Total	109	650	7,158	–	179	426	756	–	–	614	213	344	401

Mälardalen

Castellum's region Mälardalen comprises the areas of Örebro, Uppsala and Västerås, with a combined population of approx. 779,000 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.

The fi ve largest real estate owners

Örebro	Premises thous. sq.m.
Castellum (Aspholmen)	280
Brinova	96
Behrn Fastigheter	77
Norrporten	74
Klövern	55
Uppsala	Premises thous. sq.m
Vasakronan	249
Castellum (Aspholmen)	179
Uppsala Akademiförvaltning	157
Klövern	85
Hemfosa Fastigheter	77
Västerås	Premises thous. sq.m
Kungsleden	501
Klövern	207
Castellum (Aspholmen)	165
Hemfosa Fastigheter	121
Northern Logistic Property	105

Number of commercial premises (excl. residential) owned as at 31-12-2012. Municipal and State-owned companies and government institutions have been excluded. Source: Byggstatistik and Castellum

With the exception of the metropolitan areas, Örebro is one of the fastest growing cities in Sweden. Its strategic geographic location where two European highways intersect, a well-operated railway network and close proximity to airports has turned Örebro into a logistics hub. The business community is diverse, encompassing sectors such as commerce, service, administration, disparate manufacturing industries and public administration offi ces. In recent years, Örebro has become a venue for large conferences. The travel centre and the Conventum have played an important role in this development.

Uppsala is Sweden's fourth largest city and a major university city with excellent communications and a highly developed business and industrial life. Emphasis is on IT, pharmaceuticals and commerce. The renowned university, sound infrastructure - including the E4 and several other major highways - coupled with the city's vicinity to Arlanda and Stockholm, are among the explanations for why Uppsala has shown strong growth. Furthermore, several government agencies are also located in Uppsala.

Västerås, situated along highway E18, has favourable railway connections, an airport and the largest inland port of the Nordic countries. Here, business and industrial life enjoy a distinct profi le, although the service sector has stepped forward in recent years.

Örebro	Uppsala	Västerås
--------	---------	----------

Population	232,000	314,000	233,000
Population growth 2003-2012/year (the nation 0.7%)	0.6%	1.0%	0.5%
Students at university/college	15,000	42,000	13,000
Employment growth 2003-2012/year (the nation 0.9%)	0.8%	1.2%	0.5%
Gross wages growth 2003-2012/year (the nation 2.7%)	2.7%	2.9%	2.5%

Source: Evidens and SCB

Offi ce rent includes costs for heating excl. additions and property tax costs Warehouse/industrial are exkl. costs for heating, additions and property tax costs.

Yields at sales

Noted price/estimated values SEK/sq.m.

Furthermore, several major retail chains originated in Västerås. Collaboration between university and local business life constitutes another strong growth factor.

In the Kopparlunden area, situated in central Västerås, former industrial premises are presently being refurbished into modern offi ces.

Rental market

Source: NAI Svefa

What distinguishes the rental market in Örebro is the continued strong demand for central offi ce premises. This, in turn, has led to a small increase in rental levels. The vacancy rate for offi ces remained largely unchanged. For other property types and areas in Örebro, the rental market is expected to remain stable with unchanged rents and vacancies.

In 2012, Uppsala has seen an increase in demand for central offi ce premises, resulting in slightly rising rental levels, while offi ce vacancies remained stable. For offi ces in other areas of Uppsala and for warehouse and logistics premises, the rental market has been solid with virtually unchanged rental and vacancy levels.

During 2012, the rental market in Västerås stabilized for both offi ce and warehouse premises, and neither rents nor vacancy rates have changed signifi cantly.

In the region - as in many other parts of the country - a degree of caution can be detected in the retail rental market due to a slowdown in the retail sector. In Västerås an expansion of external commercial areas can be noted.

Real estate market

In 2012, the transaction volume in Mälardalen totalled approx. SEK 2.6 billion, a decrease of 15% from the previous year. Even from a fi ve-year perspective, this was somewhat smaller than average volumes. Uppsala accounted for the largest share of transactions, both in terms of volume and the number of transactions. The largest transaction concerned an offi ce property in Uppsala, amounting to SEKm 538. In Örebro, Castellum's acquisition of an industrial portfolio for SEKm 299 was the largest single transaction. In Västerås, no single major business transaction was carried out during the year. However, there was one transaction valued at one billion SEK, that included three municipalities - one of which was Västerås. For most of the deals closed during the year the buyers were Swedish players.

Castellum's real estate portfolio

Castellum's real estate portfolio in Mälardalen comprises 120 properties (120) with a total area of 624,000 sq.m. (560,000) and a fair value of SEKm 5,763 (5,168). For properties owned at year end, the rental value amounted to SEKm 610 (550) on an annual basis and net operating income was SEKm 361 (319). Investments during the year amounted to SEKm 692 (352) and after sales of SEKm 116 (0) net investments amounted to SEKm 576 (352).

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 corresponds to 39% of the total real estate portfolio in the Mälardalen region, and consists of a mix of offi ce and retail properties and warehouse and industrial properties, concentrated to the areas of Aspholmen and central Örebro.

In Uppsala, which represents 40% of Castellum's total real estate portfolio in Mälardalen, mainly offi ce and retail properties are to be found, but the portfolio also contains warehouse and industrial properties. The properties have attractive locations in Fyrislund, Boländerna and along Kungsgatan in central Uppsala.

In Västerås, corresponding to 21%, 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.

See also the section headlined Castellum's Real Estate Schedule 2012 with real-estate schedule, maps and economic information.

Rental development

Castellum's average rental level is SEK 1,117 per sq.m. for offi ce/retail and SEK 703 per sq.m. for warehouse/industrial premises. Rental levels have increased by 2.5% in the comparable portfolio compared with previous year.

The average economic occupancy rate was 92.7%, which is 0.1%-units higher than the previous year.

The gross leasing (i.e. the annual value of total leasing) during the year was SEKm 58 (61), of which SEKm 15 (17) related to leasing in new constructions, extensions and reconstructions. Notices of terminations amounted to SEKm 62 (45), of which bankruptcies were SEKm 5 (3) and SEKm 18 (0) were notices of termination with more than 18 months remaining of contract. Hence net leasing for the year was SEKm –4 (16).

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 year end, Aspholmen had 46 employees.

Mälardalen summary

Income from property management

Investments and sales

Rental value and economic occupancy rate

Net leasing

			December 31, 2012		January-December 2012
	No of prop.	Area thous. sq.m.	Property value SEKm	Property value SEK/sq.m	Investments, SEKm New constr., extensions, Acquisi reconstruc.	tions	Rental value SEKm	Rental value SEK/sq.m	Econ. occupancy rate	Rental income SEKm	Property costs SEKm	Property costs SEK/sq.m	Net operating income SEKm
Offi ce/retail	75	379	4,156	10,964	174	124	424	1,117	92.0%	389	116	305	273
Warehouse/industrial	39	216	1,220	5,654	41	320	152	703	94.8%	144	40	186	104
Total	114	595	5,376	9,037	215	444	576	967	92.7%	533	156	262	377
Leasing and property administration											30	50	– 30
Development projects and undeveloped land	6	29	387	–	33	–	34	–	–	25	11	–	14
Total	120	624	5,763	–	248	444	610	–	–	558	197	312	361

Eastern Götaland

Castellum's real estate portfolio in Eastern Götaland comprise Värnamo, Jönköping, Växjö, and Linköping, which together form a region with approx. 635,000 inhabitants, or 7% of Sweden's population.

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

The fi ve largest real estate owners

Jönköping	Premises thous. sq.m.
Castellum (Corallen)	165
Norrporten	99
Ness, Risan & Partners	95
Tosito	87
Alecta Pensionsförsäkring	71
Växjö	Premises thous. sq.m
Castellum (Corallen)	128
Norrporten	86
Valad Property Group	72
Northern Logistic Property	69
Corem Property Group	64
Linköping	Premises thous. sq.m
Klövern	268
Obligo	90
Ikano Fastigheter	72
Lilium	67
Botrygg Bygg	65
Castellum (Corallen)	49
Värnamo	Premises thous. sq.m
Castellum (Corallen)	142
Hemfosa Fastigheter	24
Remnes i Värnamo	21
Värnabo Fastigheter	11
Nivika Förvaltning	8

Number of commercial premises (excl. residential) owned as at 31-12-2012. Municipal and State-owned companies and government institutions have been excluded. Source: Byggstatistik and Castellum

Through strategic location by a number of major highways, an airport and rail facilities, Jönköping is one of Sweden's foremost logistics hubs. Many large companies have set up central warehouses and distribution centres in Jönköping, where trade, transport and manufacturing dominate the economy.

The development of "Atollen" started at the end of 2011. This is a major urban development project located near Munksjön in central Jönköping, and it will expand the city centre with offi ces, shops and housing.

Växjö is well-serviced by several highways and an airport. It is a county seat with a public administration centre and a university. There is a good mix of companies in basic industries such as forestry and engineering as well as companies with a hi-tech/electronics profi le. The new city district in Växjö, "Arena City," is an urban development project in progress. Several sports arenas are to be built here. Another project is underway, the Växjö rail-station area to revitalize the city centre with residences, shops and offi ces.

Linköping enjoys modern and developed infrastructure, with the E4 highway, a train station and an airport close to city centre. Many of the companies found here are engineering companies - and quite a few have some sort of connection to the aviation industry. In the region there

	Jönköping		Växjö Linköping	Värnamo
Population	213,000	133,000	256,000	33,000
Population growth 2003-2012/year (the nation 0.7%)	0.6%	0.7%	0.6%	0.2%
Students at university/college	14,000	12,000	23,000	–
Employment growth 2003-2012/year (the nation 0.9%)	1.0%	0.5%	0.5%	0.0%
Gross wages growth 2003-2012/year (the nation 2,7%)	2.7%	2.3%	2.5%	1.6%

Source: Evidens and SCB

is a strong collaboration between local businesses and the university through, for example, the Mjärdevi Science Park with its more than 6,000 employees. Currently, a new city district called Djurgården - situated close to the University, the University Hospital and the Science Park - is under development. The plan is for Djurgården to have 10,000 inhabitants and the project thus includes housing, offi ces, shops and schools.

Värnamo is a small labour market region featuring well-functioning infrastructure that includes the E4 highway and train connections. The region has a strong, renowned tradition of small enterprises, dominated by export-oriented companies in industries such as the rubber, plastic, metal, paper and engineering.

Rental market

The offi ce rental market in Jönköping is characterized by high demand and a low vacancy rate. The limited supply of larger and more effi cient offi ce premises in recent years has resulted in a need for new construction. Even with a larger supply of warehouses and industrial premises, the rental market for warehouses and industrial premises is considered solid. Rental levels for all property types have been essentially fl at during the year.

For 2012, Växjö experienced increased demand for offi ce premises, although rental levels and vacancy rates have not changed signifi cantly since last year. The rental market remains stable for warehouses and industrial premises, rents and vacancies are unchanged.

Linköping's rental market is still positive regarding both offi ce and warehouses, and the low vacancy rate for central offi ce space is characteristic of the city. Rental levels and vacancies are deemed stable - except for offi ce space, where there is a slight tendency towards increasing rents.

In Värnamo, there is a steady demand for offi ce space, and both rents and vacancies have remained constant during 2012. Demand is unchanged for warehouses and industrial premises, although there was a slight increase in vacancy rate. The rental market is positive. However, in Jönköping - as for much of the rest of the country - some caution has been noted in the demand for retail premises.

Real Estate market

In Eastern Götaland transaction volumes amounted to approx. SEK 3.6 billion, a decrease of 18% since 2011, but nonetheless higher than the average turnover of the region over a fi ve-year perspective. Linköping accounts for the largest share of transactions for both volume and number. One of the major deals in Linköping was the sale of three retail properties for SEKm 280. In Jönköping, one of the larger transactions was the acquisition of a residential property portfolio covering more than 16,000 sq.m. were the price has not been published. The single largest deal in the region was carried out in Växjö and concerned a residential property portfolio that was sold for SEKm 423. Buyers were chiefl y Swedish players.

Rent SEK/sq.m.

Source: NAI Svefa Offi ce rent includes costs for heating excl. additions and property tax costs Warehouse/industrial are exkl. costs for heating, additions and property tax costs.

Yields at sales

Noted price/estimated values SEK/sq.m.

Source: NAI Svefa

Income from property management

Investments and sales

Rental value and economic occupancy rate

Net leasing

Castellum's real estate portfolio

Castellum's real estate portfolio in Eastern Götaland comprises 95 properties (95) with a total area of 518,000 sq.m. (515,000) and a fair value of SEKm 4,080 (3,816). For properties owned at year end, the rental value amounted to SEKm 432 (412) on an annual basis and net operating income totalled SEKm 245 (227). Investments during the year amounted to SEKm 320 (168) and after sales of SEKm 58 (9) net investments amounted to SEKm 262 (159).

Castellum's real estate portfolio is located in Jönköping, Växjö, Linköping and Värnamo.

In Jönköping, with 42% of Castellum's real estate portfolio in Eastern Götaland, the portfolio consists mainly of offi ce and retail properties situated in attractive areas such as Rosenlund, central Jönköping and shopping center area A6.

In Växjö, corresponding to 22% of the portfolio in the region, Castellum owns mainly offi ce and retail properties in the central parts and in the expansive area Västra Mark where warehouse and industrial properties are also to be found.

In Linköping, 13% of the portfolio is concentrated to offi ce properties in the area of Mjärdevi Science Park.

In Värnamo, corresponding to 22% of Castellum's real estate portfolio in Eastern Götaland, the portfolio is mainly concentrated to centrally located offi ce and retail properties as well as warehouse and industrial properties in expansive industrial estates.

See also the section headlined Castellum's Real Estate Schedule 2012 with real-estate schedule, maps and economic information.

Rental development

Castellum's average rental level is SEK 1,031 per sq.m. for offi ce/retail and SEK 524 per sq.m. for warehouse/industrial premises. Rental levels have increased by 3.5% in the comparable portfolio compared with previous year.

The average economic occupancy rate was 88.4%, which is the same level as the previous year.

Gross leasing (i.e. the annual value of total leasing) during the year was SEKm 37 (41), of which SEKm 12 (6) were leasing of new constructions, extensions and reconstructions. Notices of termination amounted to SEKm 22 (29), of which bankruptcies were SEKm 4 (3) and SEKm 0 (1) were notices of termination with more than 18 months remaining of contract. Hence net leasing for the year was SEKm 15 (12).

Subsidiary

Castellum's properties in Eastern Götaland are owned and managed by the wholly owned subsidiary Fastighets AB Corallen, with head offi ce in Värnamo. The company also has local management offi ces in Jönköping, Linköping and Växjö. At year end, Corallen had 35 employees.

	December 31, 2012							January-December 2012
	No of prop.	Area thous. sq.m.	Property value SEKm	Property value SEK/sq.m	Investments, SEKm New constr., extensions, Acquisi reconstruc.	tions	Rental value SEKm	Rental value SEK/sq.m	Econ. occupancy rate	Rental income SEKm	Property costs SEKm	Property costs SEK/sq.m	Net operating income SEKm
Offi ce/retail	54	319	3,055	9,583	108	–	329	1,031	90.0%	296	91	287	205
Warehouse/industrial	33	186	765	4,099	9	44	98	524	83.2%	82	21	111	61
Total	87	505	3,820	7,558	117	44	427	844	88.4%	378	112	222	266
Leasing and property administration											24	47	– 24
Development projects and undeveloped land	8	13	260	–	155	4	5	–	–	3	0	–	3
Total	95	518	4,080	–	272	48	432	–	–	381	136	269	245

Property Valuation

Assumptions in Castellum's internal valuations

	Offi ce/retail	Warehouse/
		industrial
Cash fl ow year 1
Rental value, SEK/sq.m.	1,269	752
Vacancy, %	11%	9%
Direct property costs, SEK/sq.m.	326	175
Property administration, SEK/sq.m.	35	25
Required yield
Real interest rate	3.0%	3.0%
Infl ation	1.5%	1.5%
Risk	4.8% - 11.4%	6.3% - 12.6%
Return on equity		9.3% - 15.9% 10.8% - 17.1%
Interest rate	5.5%	5.5%
Loan to value ratio	65%	55%
Return on total capital	6.8% - 9.1%	7.9% - 10.7%
Weighted d:o, disconted factor year 1-9	8.0%	9.1%
Weighted d:o, disc. factor residual value* 6.5%		7.6%
*(required yield on total capital minus equal to infl ation)

Internal valuation

Castellum records the investment properties at fair value and has made an internal valuation of all properties as of December 31, 2012. The valuation was carried out in a uniform manner, and was based on a 10-year cash fl ow model, which was described in principle below. The internal valuation was based on an individual assessment for each property and refl ects both its future earnings capacity and its required market yield. In the valuation of a property's future earnings capacity, consideration has been taken of potential changes in rental levels, occupancy rates and property costs - as well as an assumed infl ation level of 1.5%. Projects in progress have been valued using the same principle, but with deductions for remaining investments. Building rights have been valued on the basis of an estimated market value per square metre, on average approx. SEK 990 per sq.m. (980). For further information about the assumptions in cash-fl ow and required yield see note 11.

Based on these internal valuations, the fair value of the properties were assessed to SEKm 36,328 Mkr (33,867), corresponding to SEK 9,916 per sq.m. (9,835). The average valuation yield for Castellum's real estate portfolio, excluding development projects and undeveloped land, can be calculated to 7.3% (7.2%). It is notable that since the early 2000s, the gap between the valuation yield and SEK government bond increased and have not been as wide as now.

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. Even if relevant fi gures is used 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 96% in the year 2018.
• Net operating income for 2012 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 1.5% per year during the calculation period.
• The average economic life of the real estate portfolio has been assumed to be 50 years.
• Projects, undeveloped land and building rights have an assumed value SEKm 2,083.
• The required yield, discount factor, is calculated according to the following assumptions:

External valuation

In order to provide further assurance and validation of the valuation, 144 properties - representing 52% of the value of the portfolio - have been valued externally by NAI Svefa. The properties were selected on the basis of the largest properties in terms of value, but they also 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 18,527, within an uncertainty range of +/- 5-10% on property level, depending on each property's category and location. Castellum's valuation of the same properties totalled SEKm 18,904, i. e., a net deviation of SEKm –377, corresponding to –2%. Gross deviation was SEKm +324 and SEKm –701 respectively, with an average deviation of 5%.

In addition, Forum Fastighetsekonomi AB made a desk-top valuation of 30 properties corresponding in value to 19% of the portfolio. Forum's valuation of the selected properties amounted to SEKm 7,153. Castellum's valuation of the same properties amounted to SEKm 7,036, i.e. a net deviation of SEKm 117 corresponding to 2%. NAI Svefa's valuation of the same properties amounted to SEKm 6,853, i.e. en net deviation of SEKm –183 corresponding to –3% compared to Castellum's valuation.

It can be noted that Castellum's deviation from the two external valuers accommodated well within the uncertainty range of +/–5-10%.

Average valuation yield
(excl. project/land and building rights) SEKm	2012	2011
Net operating income properties	2,293 2,142
+ Estimated index adjustment 2013, 1.0% (2.0%)	34	64
+ Real occupancy rate, 94% at the lowest	268	229
+/- Property costs to a normal year	–	–
– Property administration, 30 SEK/sq.m. – 105 – 102
Normalized net operating income	2,490 2,333
Valuation (excl. building rights of SEKm 443) 34,245 32,594
Average valuation yield	7.3% 7.2%

Average valuation yield over time

Internal vs. external valuation, SEKm	2012	2011	2010
External valuation 1 (NAI Svefa)	18,527	17,058	15,614
Propotion external of internal	52%	51%	50%
Net difference external vs. internal	– 377	– 182	– 368
D:o i %	– 2.0%	– 1.1%	– 2.4%
Gross deviation positive	324	347	291
Gross deviation negative	– 701	– 529	–659
Average deviation	5.4%	5.1%	5.9%
Extern valuation 2 (different valuers in different years)	7,153	5,652	5,265
Propotion external of internal	19%	16%	17%
Net difference external vs. internal	117	88	– 36
D:o i %	1.6%	1.6%	– 0.7%
Gross deviation positive	268	199	119
Gross deviation negative	– 151	– 111	– 155
Average deviation	6.0%	5.6%	5.2%

Castellum's valuation vs. external valuations 2012

Change in value

Total yield in average/year in different cycles until 2012

1 year 3 years 10 year
		average / average/
Total yield		year	year
Properties	5%	7%	7%
Castellum share	13%	13%	16%
NASDAQ OMX Stockholm (Six Return) 16%		8%	13%
Real Estate Index Sweden (EPRA)	16%	15%	16%
Real Estate Index Europe (EPRA)	29%	12%	8%
Change in value
Change in property value, unweighted – 0.2%		1.5%	1.3%

Infl ation – 0.1% 1.4% 1.4%

Uncertainty range

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 in a normal market, should therefore be seen as an indication of the uncertainty that exists in assumptions and calculations. In a market with lower liquidity, the range may be wider. For Castellum, an uncertainty range of +/– 5% means a range in value of +/– SEKm 1,816, corresponding to SEKm 34,512 - 38,144.

Change in value

The change in value in Castellum's portfolio during 2012 amounted to SEKm –69 (194) corresponding to –0.2% (0.6%) and includes SEKm 245 which refers to acquisitions and project gains, SEKm –334 individual adjustments on property level which mainly refers to cash fl ow but also yield and SEKm 20 from the sale of 15 properties. The net increase in value, including the years change, over the past 10 years has been nearly 1.3% per year, which is in line with the inflation.

Total yield

Concerning the total yield of the properties - i.e., the sum of yields and changes in value - it can be noted that Castellum's performance depends on when measurements were started.

On average, Castellum has had a better total yield on warehouse/ industrial compared to offi ce/retail - regardless of when measuring was started. The annual average total yield for the past 10 years has been 7.8% (7.3% yield + 0.5% change in value), thereby surpassing offi ce/retail which had 6.6% (6.1% yield + 0.5% change in value). Calculations do not include project gains or acquisitions from the year the acquisition was completed.

Financing

Property ownership is a capital intensive business and access to funding is one of the fundamentals to ensure successful development of the real estate portfolio.

Loan-to-value ratio and capital tied-up

Properties are long-term assets and requires long-term funding with distribution between shareholders' equity and interest-bearing debt. The loan-to-value ratio is the fi nancial key ratio that describes the proportion of the properties value that is covered by loans. Castellum's objective is to have a low fi nancial risk meaning a loan-to-value ratio not exceeding 55% in the long run.

Castellum's assets had on December 31, 2012, a value of SEKm 36,631 (34,171) and these are fi nanced by SEKm 12,065 (11,203) in shareholders' equity and SEKm 24,566 (22,968) in liabilities - of which SEKm 19,094 (17,160) are interest-bearing liabilities. Year-end loan-to-value ratio was 53% (51%).

Demand for long-term funding makes Castellum look for long-term credit agreements in order to minimize the refi nancing risk. Existing agreements are regularly renegotiated and new agreements are added. At year end, Castellum had unutilized binding long-term credit agreements with banks totalling SEKm 1,212 (2,311). The average duration of Castellum's long-term credit agreements was 4.1 years (5.1).

During the year, Castellum has signed new agreements of SEKm 1,000, renegotiated agreements of SEKm 5,000 and terminated an unutilized credit facility of SEKm 500. During 2012, Castellum also established a MTN-program with a limit of SEKm 5,000 as a complement to the bank fi nancing. During the year bonds of SEKm 1,200 were issued. Altogether, this gives Castellum easy access to new funding for investments in new constructions, extensions, reconstructions and acquisitions.

Interest rate risk and interest coverage ratio

Interest expenses are the single largest cost item and affects the growth of income from property management. The interest rate is affected both by changes in market interest rates and the demanded interest margin. The short-term market interest rate is controlled by the Swedish Riksbank, whereas the long-term market interest rate is affected by other factors such as expectations of future economic growth and infl ation. The credit margin is controlled by supply and demand for credits, as well as by regulations under which the banks operate. Both interest and credit markets can change rapidly and are out of Castellum's control.

Increased market interest rates are generally a result of economic growth and rising infl ation and are, in turn, assumed to increase demand for commercial premises and hence increased rents and/or reduced vacancies. Falling interest rates are assumed to have the opposite causes and effects. Rising or falling interest expenses will thus, over time, coincide with rising or falling rental income. Changes in credit margins may occur regardless of economic situation and have, of late, mainly been affected by changes in credit and capital market regulations.

Changes in market interest rates affect net fi nancial items. How quickly, and by how much, largely depends on the chosen fi xed interest term and the binding period of credit margins. To ensure a low and stable fi nancial net in terms of cash fl ow, Castellum has chosen to limit the

Financing 31-12-2012

Loan to value ratio and interest coverage ratio

Credit agreement maturity structure

Interest rate maturity

Source: Rolling annual values based on each company's report Q3 2012

Interest rate maturity structure 31-12-2012

		Interest rate		Closing
	Credit	derivatives		interest
	SEKm	SEKm	Net, SEKm	rate
0 - 1 year	17,925	– 9,000	8,925	3.6%
1 - 2 years	1,000	700	1,700	2.4%
2 - 3 years	125	550	675	4.2%
3 - 4 years	–	2,050	2,050	4.3%
4 - 5 years	–	1,100	1,100	3.5%
5 - 10 years	–	4,600	4,600	3.8%
Total	19,050	–	19,050	3.6%

Total	23,361	15,978	3,072	19,050
> 5 years	2,134	2,134	–	2,134
4 - 5 years	5,707	5,107	–	5,107
3 - 4 years	4,007	3,907	–	3,907
2 - 3 years	8,007	4,857	1,200	6,057
1 - 2 years	407	7	–	7
0 - 1 year	3,099	– 34	1,872	1,838
SEKm	Credit agreement	Bank	MTN/Cert	Total
	Utilized in
Credit maturity structure 31-12-2012

Unutilized credit in long term credit agreement 1,212

proportion of credits maturing within 6 months to a maximum of 50% of net debt and to keep the average fi xed interest term between 0.5-3 years. For the same reason Castellum has chosen to sign mainly long-term credit agreements with agreed spreads with banks. However changes in both of these markets will over time affect net fi nancial items.

The interest coverage ratio is the fi nancial key ratio that describes a company's resistance and risk level regarding changes in net fi nancial items. As shown in the fi gure, Castellum has lower loan-to-value ratio and higher interest coverage ratios than the industry on average.

Castellum's strategy is an interest coverage ratio of at least 200%. For 2012, the interest coverage ratio was 284% (278%). The average fi xed interest term at December 31, 2012, was 2.8 years (2.7). Margins and fees on long-term credit agreements had an average duration of 2.8 years (3.5).

Financial policy

Financial operations at Castellum are conducted in accordance with the fi nancial policy adopted by the Board. The strategy is to maintaining a capital structure with a loan-to-value ratio not exceeding 55% in the long run and an interest coverage ratio of at least 200%. All fi nancial activities in Castellum shall be conducted so that required liquidity and longterm funding is secured and to minimize net interest costs within given risk mandate. The fi nancial policy outlines mandates and limitations for managing fi nancial risk and overall delegation of responsibilities, as well as how fi nancial risks are to be reported and followed up. The fi nancial risks are followed up and reported quarterly to the Board of Directors. The Board of Directors reviews the fi nancial policy annually.

Organization

All fi nancial risk management is centralized in the parent company. The treasury department's responsibilities include Group funding, risk management, fi nancing for subsidiaries and cash management. The treasury department consists of three persons. The parent company also includes a back-offi ce and compliance function that provides accounting and independent control of the fi nancial operations.

Net fi nancial item

Net fi nancial items were SEKm –683 (–660) with an average interest rate level of 3.9% (4.1%). The average effective rate as of December 31, 2012, was 3.6% (4.0%). The market interest rate for an equivalent portfolio – considered both current market interest rate and credit spreads – can be assessed to 4.2% (4.7%). Castellum's interest costs consist of market interest rate at the date of the loan issue plus the creditor's margin.

Interest bearing liabilities

Castellum's interest bearing debt is mainly made up of short-term loans under long-term credit agreements. Short-term loans allow for great fl exibility regarding the choice of the interest rate base and fi xed interest rate term, while they facilitate amortization payments and repayments without marginal breaking costs or other compensations. The possibility to increase or decrease the amount of outstanding loans in long-term credit agreements also means that the amount of interest-bearing loans can be minimized at all times. The credit agreements are mainly bilateral credit agreements with Nordic banks. As a complement to the credit agreements, there is a MTN program and a commercial paper program. Outstanding commercial papers are fully covered by unutilized long-term credit agreements. After deduction of liquid assets of SEKm 44 (97), net interest bearing liabilities were SEKm 19,050 (17,063), of which SEKm 1,200 (0) were MTN and SEKm 1,872 (2,235) outstanding commercial papers. At the end of the year Castellum had binding credit agreements totalling SEKm 23,361 (22,029) of which SEKm 20,262 (19,374) were long term binding and SEKm 3,099 (2,655) short term binding.

Secured interest-bearing liabilities

Long-term credit agreements with banks are secured mainly through the company's properties and by fi nancial covenants. Issued commercial papers and short-term credit agreements with banks such as bank overdraft facilities are unsecured.

Of net outstanding credits SEKm 19,050 (17,063), SEKm 15,917 (14,797) were secured by the company's properties and SEKm 3,133 (2,266) unsecured. The proportion of used secured fi nancing was thus 44% of the property value.

The committed fi nancial covenants state a loan-to-value ratio not exceeding 65% and an interest coverage ratio of at least 150%. Castellum should also provide the lenders with fi nancial information such as annual reports and interim reports. In some cases, the lender has the right to renegotiate the credit agreements due to a material change in business or discontinued stock exchange listing.

Currency

Castellum own properties in Denmark with a value of SEKm 435 (254), which means that the Group is exposed to a currency risk. The currency risk is primarily related to translation of income statement and balance sheet in foreign exchange into Swedish currency. In accordance with the fi nancial policy, between 60-100% of investments in foreign subsidiaries are to be fi nanced in local currency. At the end of 2012, 82% (97%) of the assets in Denmark were hedged.

Derivatives

Derivatives are a cost effective and fl exible way to manage fi nancial risks such as interest rate risks and currency risks. Castellum uses derivatives to manage both risks. As of December 31, 2012, the market value of the interest rate and the currency derivative portfolio amounted to SEKm –1,105 (–1,003). The market value in the balance sheet change when market interest rates change, the portfolio's duration is shortened and the exchange rates change. At maturity, the market value of the derivative is dissolved with no effect on shareholder's equity.

Interest rate derivatives

Different types of derivatives are used to limit the interest rate risk and achieve the desired interest maturity structure. Through interest-rate derivatives, loans with short duration can be extended without issuing loans with fi xed interest rates.

According to the accounting standard IAS 39, derivatives are subject to market valuation. For interest-rate derivatives, this means that a theoretical surplus or sub value occurs if the stipulated interest rate varies from the current market rate. Castellum accounts for this change in value in the income statement. It is noteworthy that the interest rate derivatives used to achieve an interest rate maturity structure are subject to market valuation – something that normally is not the case for credit margins or loans with fi xed interest rates.

Currency derivatives

Funding in Danish currency can be achieved by borrowing in Danish kroner or by using currency derivatives. The exposure is the same but according to the accounting standard IAS 39 derivatives are subject to market valuation, which means that there is a theoretical surplus or sub value if the stipulated currency rate varies from the current exchange rate. Castellum applies hedge accounting, implying that the effective portion of value changes are accounted for in other total net income.

Castellum's fi nancial policy and commitments in credit agreements

	Policy	Mandate	Outcome
Loan to value ratio	Not in the long run exceeding 55%	No more than 65%	53%
Interest coverage ratio	At least 200%	At least 150%	284%
Interest rate risk
– average fi xed interst term	0.5-3 years	–	2.8 years
– Proportion maturing within 6 months	No more than 50%	–	33%
Currency risk
– investment	60%-100% funded in local currency	–	82%
– other currency risks	Not allowed	–	No exposure
Funding risk	At least 50% of interest bearing liabilities must have a duration of at least 2 years	–	100%
Counterparty risk	Credit institutions with high ratings, at least "investment grade"	–	Satisfi ed
Liquidity risk	Liquidity reserve in order to fulfi l payments due	–	SEKm 1,212 in unutilized long term credit agreements

Tax

Tax Calculation 2012	Basis current	Basis deferred
SEKm	tax	tax
Income from property management	1,255
Deductions for tax purposes
depreciations	– 679	679
reconstructions	– 289	289
Other tax allowances	– 48	27
Taxable income from property management	239	995
Properties sold	58	– 145
Changes in value, properties	–	– 89
Changes in value, interest rate derivatives	– 110	–
Taxable income before tax loss carry forwards	187	761
Tax loss carry forwards, opening balance	– 1,772	1,772
Tax loss carry forwards, closing balance		1,610 – 1,610
Taxable income	25	923
Of which 26.3% current/deferred tax	– 7	– 243
Restatement of deferred tax to 22%	–	647
According to the income statement	– 7	404

			Net Deferred Tax Liability 31-12-2012
SEKm		Basis	Tax 22%	Real tax liability

In balance sheet	– 15,044 – 3,310
Properties, asset acq.	758	167
Total	– 15,802	– 3,477	4,3%	– 686
Properties	– 17,412	– 3,831		5,8% – 1 011
Tax loss carry forwards	1,610	354	20,2%	325

Since deferred tax in principle is both interest free and amortization free it can be considered as shareholder's equity. The real deferred tax is lower than nominal partly due to the possibility so sell properties in a tax-effi cient way, partly due to the time factor which means that the tax shall be discounted. Estimated real deferred tax liability net has been calculated to 4.3% based on a discount rate of 3%. Further, assessments have been made that tax loss carry forwards are realized in 5 years with a nominal tax of 22%, giving a present value of deferred tax liability of 20.2%, and that the properties are realized in 50 years where 33% are sold directly with a nominal tax of 22% and that 67% are sold indirect through company disposals where the buyers tax discount is 6%, which gives a present value of deferred tax liability of 5.8%.

The Swedish corporate tax rate for 2012 is 26.3% and is based on the company's total taxable income, which is made up of income before tax adjusted for items according to the current tax legislation. With effect from January 1, 2013 the corporate taxe rate will be cut to 22%, which for Castellum implies a non-recurring income of 647 SEKm due to reassessment of deferred tax liability.

Castellum's reported income from property management for 2012 amounted to SEKm 1,255 (1,173), while taxable income from property management amounted to SEKm 239 (92). The taxable income from property management is thereafter completed with tax effects resulting from sales of properties and changes in value and utilization of tax loss carry forwards to reach the taxable income for the Group. In the absence of tax loss carry forwards, a paid tax of about SEKm 63 would occur, attributable to the income from property management, equivalent to 5% effective tax paid.

Tax depreciations

Investments in real estate can be allocated to different parts - building, land, land improvement and inventory, which among other things affect the size of depreciation. Buildings are depreciated on the basis of the Swedish Tax Authority's specifi ed percentages: 2% for offi ce/retail/ residential, 3% for department store/hotel, 4% for industrial/warehouse, and 5% for farm buildings and industrial buildings with limited purpose. Land is not depreciated. Most types of land improvement are depreciated by 5%, while inventories (accessories designed to directly service the use of the building and the activities therein) are depreciated by 20% or 30%.

Deductible reconstructions

Costs for repairs and maintenance of a building may be deducted immediately. For tax purposes an extended repair concept may be used, i.e. direct deduction is allowed for some types of reconstruction, even if it is a value-adding improvement which has been capitalized in the accounts.

Property sales

Property managing companies' holdings of real estate and shares in property managing subsidiaries, are fi xed assets. If the holding company instead is conducting trade with real estate, the assets mentioned above are from a taxation point of view considered current assets.

Taxable income from sales consists of the sales price with deductions for costs and the asset's fi scal value. Properties can be sold directly or indirectly through companies, which have different tax consequences. For properties or shares which fi scally speaking represents current assets a profi t is always taxable, while a loss is tax deductible. However, profi ts and losses on properties and shares that fi scally represent fi xed assets face different tax consequences. Regarding properties a profi t is always taxable, while a loss is put in a "fold" and can only be netted against profi ts within the Group from direct sales of properties that represents fi xed assets. Profi t on sales of shares which from a taxation point of view are considered fi xed assets is not taxable, while a loss is not tax deductible.

Changes in value on properties and derivatives

Swedish accounting laws do not allow reporting of properties at fair value in legal entity, meaning that changes in value of properties is only reported in the consolidated accounts and hence do not affect taxation.

Some fi nancial instruments such as interest rate derivatives may be reported at fair value in legal entities. For Castellum, changes in value resulting in a negative value on the instrument is a tax deductable item and changes in value up to the acquisition value of the instrument is a taxable income.

Tax loss carry forwards and Group contributions

Tax loss carry forwards are made up of previous years' taxable losses. The losses, not limited in time, are carried forward to the following year and are netted against future taxable income.

The Castellum Group consists of both companies which from a taxation point of view are considered property managing companies and companies which are considered to be property trading companies. In the case when a property trading company is owned by a property managing company there are limitations for the owners to receive group contributions. There is also a "block" for group contributions up to six years following a change in ownership. Since acquisitions of properties are mainly made indirectly through acquisitions of companies new legal entities are regularly added to the Group. In Castellum these blocks for group contributions however are limited.

The tax assessment process

The income tax return for a fi scal year is sent to the tax authority during the spring of the following year and towards the end of the year the notice of assessment is received. The Tax Authority has the right to call for a review of the tax return for two years following the fi scal year. Thereafter the tax authority may assess for arrears only if there is false information for an additional four years, giving that fi rst after six years is the tax return for the fi scal year fi nally assessed. Hence, the fi scal year 2012 will be fi nally assessed in 2018.

During the year Castellum has entered into an agreement on extended co-operation with the Swedish Tax Authority. Castellum has no current tax disputes.

Deferred tax in the balance sheet

The accounting regulations demand that deferred tax shall be reported undiscounted based on the difference between an asset's or a debt's book value and its fi scal value. This is in order to refl ect the tax liability or receivable which is realized if the asset or debt is sold directly. The legislation, however, makes an exception for assets which at the time of acquisition is classifi ed as an asset acquisition, where no deferred tax from the acquisition may be reported.

Castellum has two entries which make up the basis for deferred tax - properties and tax loss carry forwards. All tax loss carry forwards are reported since expected future taxable income may be used to net the tax loss carry forwards. Deferred tax deriving from properties occurs mainly due to increased valuation, tax deductions such as depreciation and deduction of certain reconstructions which are capitalized in the account. Visionen 1, Jönköping

Opportunities and Risks

Lease maturity structure 31-12-2012

Lease size structure 31-12-2012

Distribution of leases by industry 31-12-2012

Sensitivity analysis - cash fl ow

Effect on income next 12 months
	Effect on income, SEKm		Probable scenario
	+/- 1% (units)	Boom	Recession
Rental level / Index	+ 32/– 32	+	–
Vacancies	+ 36/– 36	+	–
Property costs	– 11 /+ 11	–	0
Interest rate costs	– 53/+ 48	–	+

Opportunities and risks in the cash flow Rental income

Rental levels as well as vacancies for commercial contracts are mainly depending on the growth in Swedish economy, but are also affected by the amount of new construction. Economic growth is supposed to lead to increased demand for premises and hence decreasing vacancies, with a potential for increasing market rents, which also provide opportunities for new construction. A weaker growth has an opposite effect. Since the commercial contracts are signed for a certain period of time, a change in the market rents does not give an immediate effect on the rental income. The most common term on a new lease is currently 3-5 years with nine months' notice of termination and an index clause linked to the infl ation. Castellum's lease portfolio has a minimum indexation, which provides a certain protection against defl ation. The average remaining duration of leases in Castellum's portfolio is 3.2 years. Castellum's lease portfolio is considered to be in line with market rents. Current infl ation level is for Castellum expected to cause an index adjustment of rents of approx. 1% for 2013.

A state of economic recession leads to an increased risk for bankruptcies, which may give an immediate effect on the rental income. The risk for major changes in vacancies increases with few and large tenants. Castellum has approx. 4,800 commercial contracts of which the single largest contract accounts for approx. 1% of total rental income. Castellum's current lease maturity structure, together with the lease portfolio's mix in geography, type of premises, leases sizes and sectors provide a good spread of risk. Vacancies during 2012 amounted to approx. SEKm 447 and make up a potential for possible new leases.

Property costs

Operating costs are largely made up of costs for electricity, garbage disposal, heating and water, where electricity and heating costs have the largest effect on the result. The organizations works continuously with operating effi ciency. The price of electricity is determined 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 charged the tenants, why Castellum's exposure to cost fl uctuation in the short term is relatively limited. Castellum's properties have a good standard and maintenance situation.

Castellum holds 94 properties by site leasehold. The ground rent for these are currently calculated in such 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 charged the tenants, provided that the premises are not vacant; in such case the owner of the property has to carry the real estate tax cost.

Interest costs

Interest costs are the single largest cost item for Castellum and consists of the market interest rate and the credit margin the lenders demand in return for their loans. The conditions on the interest rate market may change quickly. The market interest rate is affected by the Riksbank's monetary policy, expectations of economic development both internationally as well as nationally and of unexpected events. In order to limit this infl uence the interest rate maturity structure has been spread over different terms and Castellum signs mainly long term credit agreements with fi xed margins.

There are clauses in the credit agreements, with the effect that lenders shall be compensated for increased costs which might occur due to new or revised laws or regulations. This can lead to higher borrowing costs for Castellum.

Castellum's average fi xed interest term was 2.8 years and margins and fees in long term credit agreements are fi xed with an average duration of 2.8 years.

Taxes

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

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 partly because the demand for premises is thought to increase, leading to reduced vacancies and hence a potential for increasing market rents, and partly because the index clause in the commercial contracts is compensating for the rising 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 exactly the same time, why the effect on the result in the short term may occur at different points in time. Economic shocks can occur from time to time and may need shorter or longer adjustment periods, i.e. the time needed to restore a new economic equilibrium, which may cause disturbances in the relation mentioned 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 is volatile. Assuming a normal credit market, the value of the properties is determined by supply and demand, where the price mainly depends on the properties' expected net operating income and the buyer's required yield. Increased demand, lowered required yield and positive real development in net operating income lead to an upward adjustment in prices, while a weaker demand, higher required yield and negative growth have the opposite effect. Boländerna 30:2, Uppsala

Sensitivity analysis - change in value

Properties	–20%	–10%	0	+10%	+20%
Changes in value, SEKm – 7,266 – 3,633			0	3,633	7,266
Loan to value ratio	66%	58%	53%	48%	44%

The sensitivity analysis enclosed shows how Castellum's loan to value ratio is affected by a change in value of +/– 10-20%. Property valuations are calculations 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 functioning market, in order to refl ect the uncertainty that exists in assumptions and calculations made. 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% to +13%.

Castellum does not have any outstanding rental guarantees.

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

Investment risk

Net operating income – 5% +5% +0,5% 95 7,5% 105 7,5% Yield – 0,5% ⁹⁵ 6,5% 105 6,5% =1 267 Net operating income 100 7,0% Yield =1 429 Value =1 462 =1 400 =1 615 +2% –11% – 2% +13%

The blue fi gures relate to change in value.

Value range - simplifi ed example

Castellum's 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, net investments of at least 5% of the property value will be made, which currently corresponds to SEKm 1,800. Castellum invests in both acquisitions and new constructions, extensions and reconstructions of existing properties. The risks of these investments are limited by good planning, structured internal processes and quality assurance and monitoring. Major investment decisions are made by the Board, while smaller investments are notifi ed in retrospect - either individually or on a portfolio basis.

Risks associated with acquisitions consist primarily of unexpected vacancies, adverse environmental conditions and technical shortcomings. For indirect acquisition through companies, company specifi c risks such as tax matters, are added. Castellum actively limits these risks by utilizing the right skills, either internal or external, and implement legal, technical and fi nancial due diligence processes before the acquisition.

For new constructions, the risk is primarily attributable to increased production costs, and where new premises are not rented out, the void period. Risks in production costs are limited using contractual agreements in relation to both entrepreneurs and tenants, and by follow-up and benchmarking of completed projects within the organization with the purpose to increase cost effectiveness. The letting risk is limited by adding new premises to cities or areas with stable rental markets with low vacancies, or to start production only after part of the new premises are contracted.

Interest bearing liabilities and fi nancial risk

All property ownership requires a functioning credit market. Castellum's greatest fi nancial risk is not having access to funding. The conditions in the credit market can be changed as for example shown by the international agreement to establish a new regulatory framework for banks. Discussions are ongoing within the EU and at national level to implement rules and reporting obligation to achieve greater transparency in the credit market. Castellum's possibility to receive new credits depends on future regulatory framework.

A low loan to value ratio enables long-term credit agreements, which limits both the risk for not having access to funding and the immediate impact of a changed credit market. Existing credit agreements are regularly renegotiated and new credit agreements are entered into when needed, in order to secure Castellum's capital need. Loans in banks are secured by pledged mortgages and/or a guarantee to maintain certain fi nancial key ratios. Financial covenants issued state a loan to value ratio not exceeding 65% and an interest coverage ratio of at least 150%, which may be compared to the actual outcome on December 31, 2012 of 53% respectively 284%, leaving a margin for further decrease in value of approx. SEK 7.0 billion corresponding to 19%.

Castellum currently has an average duration of long term credit agreements of 4.1 years and an unutilized volume of long term credit agreements of SEKm 1,212. Counterparty risk may occur if any party cannot meet its obligations. 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 single counterparty.

In order to manage the interest rate risk in a cost effi cient way Castellum uses interest rate derivatives. If the agreed interest rate deviates from the market interest rate, there is a theoretical overvalue or undervalue, which is reported in the income statement. The lesser risk taken in interest payments, the greater risk is taken in the value of the derivatives, since the time factor increases the risk for large fl uctuations in value. An upward parallel adjustment of the discounting interest rate used in valuation of the interest rate derivative portfolio at December 31, 2012 of +/– 1%, would change the value of the interest rate derivative portfolio by approx. SEKm +550/–620.

Deferred tax

In the balance sheet the deferred tax liability is based on that properties are sold today with worst possible taxation outcome, i.e. a direct sale. The effective tax is lower because of both the possibility to sell properties in a tax effi cient manner, and the time factor that causes the tax to be discounted. At present, the actual discounted deferred tax liability is considered to be approx. 4.3%, indicating a value of SEKm 686 which is considerably lower than accounted SEKm 3,310.

Environmental Risks

Castellum investigates and continuously identifi es potential environmental risks in our property portfolio through efforts to map environmental inventories and maximize energy effi ciency. The environmental inventories, conducted by external consultants, investigate environmental and health risks such as hazardous substances, ground pollution and humidity/mould as well as operations requiring special permits. If any risks are identifi ed, action plans are drawn up in order to deal with them.

Environmental risk in Castellum's real estate portfolio is considered low.

The Castellum share

The Castellum share is listed on NASDAQ OMX Stockholm AB Large Cap. Castellum's market capitalization, i.e. the value of all outstanding shares in Castellum, amounted to SEK 15.1 billion (14.0) as per December 31, 2012, corresponding to nearly 15% of the total market capitalization of Swedish real estate companies operating solely in this fi eld totalling over SEK 100 billion and 0.4% of the total market capitilization of listed Swedish companies of approx SEK 4,000 billion.

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.

Proposed dividend

The Board intends to propose the annual general meeting to decide on a dividend of SEK 3.95 per share, an increase of 7% compared with previous year. The dividend ratio is 52% of income from property management before tax.

If the annual general meeting decides to accept the Board's dividend proposal and Tuesday March 26, 2013 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 21, 2013. Payment of the dividend is expected to take place on Thuesday April 2, 2013.

The dividend falls within Castellum's objective of distributing at least 50% of income from property management, having taken into account investment plans, consolidation needs, liquidity and fi nancial position in general. Unrealized changes in value, positive or negative, are thus not included in the distributable result.

Shareholders

At the year-end, Castellum had approx. 9,900 shareholders. The amount of shares registered abroad at the year-end was 60%. Shareholders registered abroad can not be broken down in terms of directly held and nominee registered shares except when the shareholder is required to declare substantial share acquisitions. Two foreign shareholders has declared holding over 5%, Stichting Pensioensfonds ABP and European Investors Holding Company, Inc. Castellum has no direct registered shareholders with holdings exceeding 10%.

Shareholders distributed by country 31-12-2012

Investor relations

Investor relations are primaily 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.

Shareholders as per 31-12-2012

Shareholders	Number of shares thousand	Percentage of voting rights and capital
László Szombatfalvy	5,000,000	3.0%
Magdalena Szombatfalvy	4,935,000	3.0%
AFA Sjukförsäkrings AB	3,830,871	2.3%
Lannebo Småbolag	2,103,941	1.3%
Fjärde AP-fonden	2,050,972	1.3%
Länsförsäkringar Fastighetsfond	1,822,209	1.1%
Caceis Bank / 18129	1,783,658	1.1%
KAS Depositary Trust Company	1,638,991	1.0%
Tredje AP-fonden	1,599,903	1.0%
Andra AP-fonden	1,491,095	0.9%
Livförsäkrings AB Skandia	1,095,711	0.7%
Swedbank Robur Småbolagsfond Sverige	1,087,647	0.7%
SEB Världenfond	990,287	0.6%
KPA Pensionsförsäkring AB	943,897	0.6%
SEB Sverigefond Stora Bolag	768,015	0.5%
Akademiinvest	668,000	0.4%
Skandia Fond Småbolag Sverige	592,053	0.4%
AFA Trygghetsförsäkring AB	587,639	0.4%
Nordea Småbolagsfond Sverige	577,357	0.3%
Folksam Ömsesidig Livförsäkring	538,788	0.3%
SEB Sverigefond Småbolag	537,700	0.3%
SEB Aktiesparfond	510,417	0.3%
Board and exetutive management Castellum	415,709	0.3%
Swedish shareholders < 500,000 shares:
49 ägare, 100,000-499,999 shares	10,742,251	6.5%
326 holders, 10,000-99,999 shares	8,592,851	5.2%
2 632 holders, 1,000-9,999 shares	7,813,328	4.7%
6 202 holders, 1-999 shares	2,264,884	1.4%
644 shareholders registered abroad	99,016,826	60.4%
Total outstanding shares	164,000,000	100.0%
Repurchased shares	8,006,708
Total registered shares	172,006,708

Repurchase of own share

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. The number of outstanding shares, i.e. the number of registered shares less the number of repurchased shares, totals 164,000,000. As repurchasing is a good method of adapting the capital structure to the capital requirements from time to time, the Board's will propose the AGM to decide on extending the mandate to repurchase shares until the next AGM. This mandate provides the facility to repurchase or transfer shares.

EPRA

EPRA, European Public Real Estate Association, is an association for listed real estate owners and invstors in Europe, which among other things, sets standards for financial reporting. A part of such standards are key ratios EPRA EPS (Earnings Per Share), EPRA NAV (Net Asset Value) and EPRA NNNAV (Triple Net Asset Value).

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 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 long term net asset value (EPRA NAV) can be calculated to SEK 100 per share (97). The share price at the end of the year was thus 92% (88%) of the long term net asset value.

Net asset value 31-12-2012		SEKm SEK/share
Equity according to the balance sheet	12,065	74
Reversed
Derivatives according to balance sheet	1,105	6
Deferred tax according to balance sheet	3,310	20
Long term net asset value (EPRA NAV)	16,480	100
Deduction
Derivatives as above	– 1,105	– 6
Estimated real liability, deferred tax 4,3%*	– 686	– 4
Actual net asset value (EPRA NNNAV)	14,689	90

* Estimated real deferred tax liability net has been calculated to 4.3% based on a discount rate of 3%. Further, assessments have been made that tax loss carry forwards are realized in 5 years with a nominal tax of 22%, giving a present value of deferred tax liability of 20.2%, and that the properties are realized in 50 years where 33% are sold directly with a nominal tax of 22% and that 67% are sold indirect through company disposals where the buyers tax discount is 6%, which gives a present value of deferred tax liability of 5.8%.

Growth, yield and financial risk

The Castellum share price at the year-end was SEK 92.30 (85.30). During 2012, the total yield of the share, including dividend of SEK 3.70, was 13% (-3%). Growth, yield and fi nancial risk are shown below for both the present year as well as the average for three and ten years.

	2012	3 years	10 years
		average/	average/
		year	year
Growth
Rental income SEK/share	5%	4%	6%
Income from prop. management SEK/share	7%	4%	7%
Net income for the year after tax SEK/share	107%	110%	8%
Dividend SEK/share	7%	4%	8%
Long term net asset value SEK/share	3%	7%	7%
Actual net asset value SEK/share	3%	7%	6%
Real estate portfolio SEK/share	7%	8%	8%
Change in property value	– 0.2%	1.5%	1.3%
Yield
Return on long term net asset value	7.5%	11.3%	11.2%
Return on actual net asset value	7.9%	12.1%	10.8%
Return on total capital	5.3%	6.9%	7.2%
Total yield of the share (incl. dividend)
Castellum	13%	13%	16%
NASDAQ OMX Stockholm (SIX Return)	16%	8%	13%
Real Estate Index Sweden (EPRA)	16%	15%	16%
Real Estate Index Europe (EPRA)	29%	12%	8%
Financial risk
Interest coverage ratio	284%	287%	291%
Loan to value ratio	53%	51%	48%
Unutilized long term credit agreements	1,212	1,707	1,527

Yield including long term change in value

		Average
Change in value	–1%-unit	10 years	+1%-unit
Income from property management	1,255	1,255	1,255
Change in value property	109	473	837
D:o %	0.3%	1.3%	2.3%
Actual tax	– 63	– 63	– 63
Net income after tax	1,301	1,665	2,029
Net income SEK/share	7.93	10.15	12.37
Yield, the share (price SEK 92.30)	8.6%	11.0%	13.4%
Yield long term net asset value	8.3%	10.6%	12.9%

Changes in value on real estate as well as derivatives can vary sharply from year to year, why the net income an individual year becomes volatile. From the table above both yield on the share based on a price of SEK 92.30, as long term net asset value are shown. The calculation is based on Castellums income from property management in 2012, the property portfolio's long-term change in value corresponding to an average change in value per year over the last 10 years (simulated with +/-1% unit), that the derivatives portfolio's value over time is zero and an effective current tax of 5%.

Valuation

How a share is valued at all times is based on supply and demand, which is controlled by a number of parameters such as investors' yield requirements (including their current assessment of the Company's long-term yield, growth and risk), alternative investments, asset allocation issues, views on macro and regulations. In the long term, however, the company's actual performance in terms of yield and growth determines the share price development.

Dividend Yield

The proposed dividend of SEK 3.95 (3.70) corresponds to a yield of 4.3% (4.3%) based on the share price at the end of the year.

Earnings

Post-tax inome from property management relating to income from property management (EPRA EPS) amounted to SEK 7.27 (7.01) per share at the year-end. This results in a share price yield of 7.9% (8.2%).

Net income after tax amounted 2012 to SEK 8.98 per share (4.34), which from the share price gives a yield of 9.7% (5.1%).

Yield earnings per share

Share price/net asset value

Ten year summary

	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003
Key ratios, SEK/share
Rental income	18.74	17.80	16.82	16.43	15.25	13.77	12.28	11.63	11.32	10.72
Income from property management	7.65	7.15	6.96	6.89	5.93	5.63	5.38	5.00	4.52	4.07
Income from property mgmt after tax (EPRA EPS)	7.27	6.62	6.93	5.85	5.50	5.09	4.49	4.15	3.82	3.52
Net income for the year	8.98	4.34	11.98	0.98	– 4.04	9.07	10.21	7.89	5.59	2.68
Dividend (for 2012 proposed)	3.95	3.70	3.60	3.50	3.15	3.00	2.85	2.62	2.38	2.13
Property portfolio	222	207	194	178	178	169	148	130	119	110
Long term net asset value (EPRA NAV)	100	97	92	82	84	88	79	69	61	55
Net asset value (EPRA NNNAV)	90	87	85	73	75	85	76	65	57	52
Valuation
Share price/pre tax income from property management per share	8.3%	8.6%	7.6%	9.5%	9.8%	8.4%	5.9%	7.0%	7.6%	9.6%
Share price/income from property management after tax per share (EPRA EPS)	7.9%	8.4%	7.2%	9.6%	9.6%	8.2%	5.6%	6.3%	7.0%	9.0%
Dividend/Share price (dividend yield)	4.3%	4.3%	3.9%	4.8%	5.2%	4.5%	3.1%	3.7%	4.0%	5.0%
Share price/Long-term net asset value per share	92%	99%	88%	72%	76%	116%	104%	98%	77%	58%
Share Price/Net asset value per share	103%	108%	99%	81%	79%	120%	110%	104%	82%	61%
The share
Market capitalization, SEKm	15,137	13,989	15,014	11,890	9,963	11,029	14,965	11,726	9,758	6,970
Total yield, the Castellum share	13.0%	– 3.1%	32.6%	27.4%	– 5.9%	– 24.2%	31.7%	25.0%	46.7%	48.5%
Real Estate Index Sweden (EPRA)	16.2%	– 13.0%	48.5%	24.0%	– 21.4%	– 18.5%	35.8%	40.2%	48.8%	32.5%
Real Estate Index Europa (EPRA)	28.7%	– 9.2%	19.8%	33.7%	– 48.8%	– 32.2%	49.4%	25.8%	41.7%	21.4%
NASDAQ OMX Stockholm (SIX Return)	16.5%	– 13.5%	26.7%	52.5%	– 39.0%	– 2.6%	28.1%	36.3%	20.8%	34.2%
Dividend ratio income from prop. mgmt	52%	52%	52%	51%	53%	53%	53%	52%	53%	52%
Dividend ratio long term net asset value	4%	4%	4%	4%	4%	3%	4%	4%	4%	4%
Share price, SEK
last paid during the last day for trading	92.30	85.30	91.55	72.50	60.75	67.25	91.25	71.50	59.50	42.50
highest paid during the year	94.50	97.50	91.75	73.75	80.00	107.00	95.50	85.00	60.75	45.13
lowest paid during the year	76.30	65.25	58.50	42.80	41.40	62.00	56.50	55.00	39.38	28.25
average (high/low per day)	87.27	88.69	75.70	58.57	63.42	87.55	78.54	68.29	47.32	33.86
Number of shares, thousand average	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000
registered	172,008	172,008	172,008	172,008	172,008	172,008	172,008	172,008	172,008	172,008
Number of shareholders	9,900	9,400	10,000	8,900	7,300	7,300	7,700	7,900	8,900	8,800
Percentage of shareholders registered abroad	60%	51%	46%	46%	47%	49%	53%	46%	37%	33%
Turnover, thousand shares per year	129,276	150,482	152,186	191,129	218,304	207,442	107,710	93,268	86,289	92,067
Turnover rate per year	79%	92%	93%	117%	133%	126%	66%	57%	53%	56%

Press releases

2012-01-13	The election committees proposal regarding the board of directors etc of Castellum AB (publ)
2012-01-24	Castellum's Year-end Report 2011: Increased dividend to SEK 3.70 per share
2012-02-03	The Swedish version of Castellum's Annual Report 2011 is now available on www.castellum.se
2012-02-15	Summons to the Annual General Meeting of shareholders in Castellum AB (publ)
2012-03-22	Annual General Meeting in Castellum AB (publ)
2012-04-11	Castellum invests SEKm 281
2012-04-17	Castellum's interim report January-March 2012: 9% growth in income from property management
2012-05-09	Castellum sells SEKm 156 and sets an MTN program
2012-06-01	Castellum AB (Publ): Base prospectus due to the MTN-program is now available on www.castellum.se
2012-07-06	Castellum invests SEKm 291 and sells SEKm 46
2012-07-12	Castellums fi rst half-year 2012: Continued good growth in income from property management and positive net leasing
2012-07-12	Castellum invest SEKm 299
2012-08-28	Castellum AB's fi rst issue under the MTN Program
2012-09-26	Castellum invests halv a billion SEK
2012-10-16	Castellums interim report January-September 2012: Continued positive development and CEO change in Castellum AB
2012-11-20	Castellum invests SEKm 435
2012-12-05	Henrik Saxborn appointed new CEO of Castellum
2012-12-17	Castellum invests SEKm 502
2013-01-16	The election committee's proposal regarding the board of directors etc of Castellum AB (publ)

Corporate Governance Report

"At this time of writing, it's been less than a year since I was entrusted with leading the Board's work at Castellum. It is a pleasure to work closely with the company again; I had the privilege of advising Castellum prior to the IPO in 1997. "At this time of writing, it's been less than a year since I was entrusted with leading the Board's work at Castellum. It is a pleasure to work closely with the company again; I had the privilege of advising Castellum prior to the IPO in 1997.

Castellum's organizational form and business model have remained intact, just as objectives and general strategies have done. The greatest difference is that Castellum's Castellum's organizational form and business model have remained intact, just as objectives and general strategies have done. The greatest difference is that Castellum's

property values have risen by a factor of three. The portfolio is also characterized by signifi cant activity, including the active management of existing properties as well as property acquisitions and project developments.

Castellum's corporate governance design is based squarely on the specifi c structure and operations of the company. Effective reporting systems and reliable controlling systems comprise robust fi nancial factors of major importance.

Of even more fundamental importance, however, are the stable culture and ethical fundamentals that permeate the entire organization - i.e., from executive management to the employee closest to the customer.

Castellum's operational risk has been reduced via a wide distribution in the number of properties and customers. The Castellum management model and small-scale operational structure are based on the belief that the best decisions are made close to the customer and in the local competitive environment. The Group's stated objectives, strategies, policies and guidelines point out the direction and framework that enable employees to work in a uniform direction with the overall objective of generating shareholder value.

2012 has been an intense business year for both Board and management. In addition to the traditional governance issues outlined above, the recruitment of a CEO to succeed Håkan Hellström has held a unique position. As part of the task, the Board focussed specifi cally on future issues to defi ne the possibilities and challenges that we expect a new CEO to take on. This process was undertaken with a broad approach and it attracted strong candidates; both externally and internally. The Board now looks forward to further developing Castellum's open and well-functioning governance with incoming CEO, Henrik Saxborn.

Another area that required special Board attention was a thorough evaluation of the remuneration structure for executive management while renewing the incentive plan for submission to the AGM.

To conclude, from 2012 Board efforts, I'd like to highlight Castellum's high activity in business development – refl ected in increased volumes and the number of investment matters requiring Board approval. To maintain the Board's capacity to properly support and challenge management, we follow a rolling schedule where "doing our homework" and providing inspiration on crucial company issues alternate with hands-on business visits, as critical and signifi cant components.

Based on Castellum's strong position, both the Board and corporate management are determined to identify and capture business opportunities that create sustainable shareholder value."

January 2013

Charlotte Strömberg Chairman of the Board in Castellum

Swedish code for corporate governance

Corporate governance covers the various means of decision making by which the shareholders - directly and indirectly - control the company. Corporate governance has evolved through laws, recommendations, the "Code" (Swedish Code for Corporate Governance), and through self-regulation. It is based upon the comply-or-explain principle, meaning that all rules do not always have to be followed and there is no crime in deviating from one or more particular rules of the Code if there are motives and explanations. The Swedish code for corporate governance is conducted by the Swedish Corporate Governance Board and is found at www.bolagsstyrning.se.

Castellum applies the Code with the purpose of creating good preconditions for taking on the role of active and responsible ownership. The model below describes the overall structure of corporate governance in Castellum AB.

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 2011 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 fi ve months prior to the AGM.

The time for publication of the election committee is proposed to be changed to the AGM 2013 so that the Code will be followed.

Overall Structure for Corporte Governance

Shares and shareholders

The Castellum share is listed on NASDAQ OMX Stockholm AB Large Cap. At year end, Castellum had approx. 9,900 shareholders. Of the total share capital, 40% was owned by mainly Swedish institutions and mutual funds and 60% was owned by foreign investors. Castellum has no direct registered shareholders with holdings exceeding 10%.

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. Potential shares (e.g., convertible bonds) do not occur.

Major external regulations

• Swedish Companies Act.
• Rules for issuers at NASDAQ OMX Stockholm
• Swedish Code of Corporate Governance

Important internal reglations

• Articles of Association
• Board of Directors' rules of procedures
• Policies for information to the stock market, fi nance, accounting
• Processes for internal control and risk management
• Code of Conduct

Articles of association

The name of the company is Castellum Aktiebolag and the company is a public limited company. The registered offi ce 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 in 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 as a whole on the company's web site.

Annual General Meeting

The decision-making rights of shareholders in Castellum are exercised at the shareholders' meeting. The AGM (ordinary shareholders' meeting) is held in Gothenburg during the fi rst half-year. The annual general meeting elects the board of directors and the company's auditors as well as making decisions on changes in the articles of association and on changes in the share capital.

Participation in decision-making requires the shareholder's presence at the meeting, either personally or through a proxy. In addition, the shareholder must be registered in the share register by a stipulated date prior to the meeting and must provide notice of participation in the manner prescribed. Individual shareholders requesting that a specifi c issue be included in the agenda of a shareholders' meeting can normally request the Castellum board to do so well in advance of the meeting via an address provided on the Group's website.

Decisions at the meeting are usually taken on the basis of a simple majority. However, regarding certain issues, the Swedish Companies Act stipulates that proposals must be approved by shareholders representing a larger number of votes than the number of votes cast and shares represented at the meeting.

Annual General Meeting 2012

The latest AGM was held on March 22, 2012 in RunAn, Chalmers Kårhus in Gothenburg. At the AGM, 406 shareholders were represented, representing 43.7% of the total number of shares and votes. All members of the board and one of the company's auditors and the deputy auditor were present at the AGM.

The AGM adopted the fi nancial reports for 2011 and discharged the board of directors and the chief executive offi cer from liability regarding operations for 2011.

On the AGM on March 22, 2012 the board of directors decided;

• a dividend of SEK 3.70 per share for fi scal year 2011,
• that remuneration to the board of directors should be SEK 1,980,000 out of which SEK 510,000 should be allocated to the Chairman of the Board and SEK 245,000 to each one of the remaining members of the board of directors. The remuneration include work on the committees,
• re-election of the present board members Mr. Per Berggren, Mrs. Marianne Dicander Alexandersson, Mrs. Ulla-Britt Fräjdin-Hellqvist, Mr. Christer Jacobson and Mr. Johan Skoglund, as members of the board of directors. In addition to this Mrs. Charlotte Strömberg and Mr. Jan Åke Jonsson were elected as new members of the board of directors. Mrs. Charlotte Strömberg was elected as new chairman of the board of directors,
• to approve the Board's proposed guidelines for remuneration to members of the executive management,
• to authorize the Board in order to adjust the company's capital structure and be able to transfer company-owned shares as a payment or fi nancing of real property investments to resolve on the acquisition and transfer of company-owned shares.

Minutes of the annual general meeting held on March 22, 2012 are available on the company's web site.

Annual General Meeting 2013

For the AGM on March 21, 2013 the board of directors proposes: • a dividend of SEK 3.95 per share and March 26, 2013 as record day,

• guidelines for remuneration to members of the executive management,
• a renewed incentive program to the executive management,
• a renewed mandate for the Board to decide on purchase or transfer of the company's own shares.

The election committee proposes for the AGM;

• re-election of all the present board members; Mrs. Charlotte Strömberg, Mr. Per Berggren, Mrs. Marianne Dicander Alexandersson, Mrs. Ulla-Britt Fräjdin-Hellqvist, Mr. Christer Jacobson, Mr. Jan Åke Jonsson and Mr. Johan Skoglund. Mrs. Charlotte Strömberg is proposed to be re-elected as chairman of the board of directors,
• that remuneration to the members of the board of directors is proposed to be SEK 2,025,000, out of which SEK 525,000 should be allocated to the chairman of the board of directors and SEK 250,000 to each of the other members of the board of directors (including remuneration for work in the audit committee). The board of directors has decided to establish a separate remuneration committee within the board of directors. The remuneration committee shall include three board members, including the chairman of the board of directors, who also will be the chairman of the remuneration committee. The level of remuneration for work on the remuneration committee is proposed to be SEK 30,000 per person, in total SEK 90,000. Compared with last year, the proposal entails an increase of the total remuneration with SEK 135,000 and a total remuneration to the members of the board of directors, including remuneration for work in the remuneration and audit committees, of SEK 2,115,000.
• for AGM to decide on appointing an election committee for the AGM 2014 and for the Chairman to contact the three largest registered or in an other way known shareholders at the end the last day of share trade in August 2013 and invite them to each appoint one member to the election committee, the 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. The name of the members in the election committee shall be published at the latest six months before the next AGM.

Election Committee

The AGM resolves upon the nomination process for the board of directors and, when appropriate, the auditors. The Annual General Meeting 2012 decided that an election committee should be appointed for the AGM 2013 in order to present proposals for the number of members of the board of directors, election of members of the board of directors, chairman of the board of directors and remuneration to members of the board of directors.

The election committee's proposals are publicly announced no later than on the date of notifi cation of the AGM. Shareholders may contact the election committee with proposals for nomination.

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. The election committee would appoint chairman amongst its members.

For the AGM in 2013 the process to appoint the election committee is proposed to be changed so that the three largest shareholders are contacted the last day of trade in August 2013 instead of at the end of the third quarter. The change means that Castellum not deviate from the code in time of making the members of the election committee public.

The election committee to the AGM 2013 includes: Rutger van der Lubbe representing Stichting Pensioenfonds ABP, Maj-Charlotte Wallin representing AFA Försäkring, Johan Strandberg representing SEB Fonder, and the Chairman of the Board Charlotte Strömberg. Maj-Charlotte Wallin is the chairman of the election committee.

The election committee has held three meetings with minutes where all the issues the election committee are obliged to address according to the Swedish Code for corporate governance has been dealed with.

The election committee has decided to propose re-election of all the Board members and the Chairman of the Board. 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 board member's 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.

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.

Election Committee AGM 2013

Representative	Representing	Share of votes September 30 ,2012
Rutger van der Lubbe	Stichting Pensioensfonds ABP	approx 7,5%
Maj-Charlotte Wallin	AFA Försäkring	approx. 4,0%
Johan Strandberg	SEB Fonder	approx 2,8%
Charlotte Strömberg	Chairman of the Board in Castellum

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 2012, 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 regular information of regulatory changes and issues concerning the operations and board responsibilities for a listed company.

For Board decisions the rules of the Companies Act apply, 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's work is governed by the Swedish Companies Act, the Code and the Board's rules of procedure.

The Board of Directors responsibility

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, budgets and business plans, reviewing and establishing the accounts, as well as making decisions on issues regarding investments and signifi cant changes in Castellum's organization and operations. The Board appoints the company's Chief Executive Offi cer and sets remuneration and other terms of employment benefi ts for the CEO.

The Board of Directors' rules of procedure

The board of directors' rules of procedure are set annually. The rules of procedure describe the work of the Board and the distribution of responsibility between the Board and the Chief Executive Officer. The rules of procedure also state which topics should be dealt with at each Board meeting and give instructions regarding the financial reporting to the board of directors.

The rules of procedure also prescribe that the Board shall have an audit committee and a remuneration committee. The Chairman of the committees should 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 information needed from the Chief Executive Offi cer in order to follow up on the company's fi nancial position, results, liquidity, fi nancial planning and development. The Chairman of the board of directors is also obliged to fulfi ll decisions made by the Annual General Meeting regarding establishment of a election committee and to take part in the work of the committee.

The Board of Directors' activities during 2012

During 2012, Castellum's Board has held 13 meetings of which one was a Board meeting following election. According to the prevailing procedural rules, the Board must hold at least seven scheduled board meetings each calendar year, of which one is a Board meeting following election.

Board meetings are held in connection with the publication of the company's reports, year end, proposed appropriation of profi ts and issues relating to the AGM (dealt with in January), interim accounts (April, July and October), strategy (May). The Business Plan for the next year is dealt with at the meeting held in December.

The Board's year - issues besides current state of operations, prospects, investments, sales och fi nancing

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

The regular matters dealt with by the Board during 2012 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. During 2012, the Board also worked with the recruitment of a new CEO.

During 2012, the Board has made an external evaluation of its work which demonstrated an open and constructive climate and well-functioning decision making. The evaluation and following discussion in the Board serves as a basis for the continuous development of the Board's work and ensures that the Board can make decisions which are as well-informed as possible.

The evaluation has been handed over to the election committee and the Board for discussion. The evaluation covers topics such as working climate, working procedures in the business process, crisis management, follow-up and control systems, morals, ethics and communication.

No other compensation beside the remuneration has been paid.

Remuneration Committee

The Remuneration Committee consists of all Board members and functions according to the following:

• Prepares, according to remuneration principles, remuneration and other employment terms for the CEO and senior executives. The guidelines for remuneration of senior executives are to be submitted to the Board and decided upon at the Annual General Meeting,
• Decides on outcome of the current incentive program,
• Monitors and evaluate ongoing and completed incentive plans for senior executives. The evaluation is to be presented on the company's website,
• Annually evaluates the work of the Chief Executive Offi cer and, where appropriate, deal with issues concerning the appointment of a CEO.

The Remuneration Committee shall meet at least twice a year. During 2012, the Committee held four meetings.

Issues addressed at the meetings included the review of the remuneration of the Managing Director and Group Executive, decisions about changes in the remuneration of members of executive management, evaluation of previous incentive programs and proposals for renewal of the incentive program. In 2012, the Remuneration Committee also made an external evaluation of the structure and levels of management's overall compensation, which consists of a fi xed salary, pension, variable remuneration and nonmonetary benefi ts. The operating premise is that the remuneration structure of Castellum will contribute to the overall goal of creating shareholder value over time. The Remuneration Committee has also worked with the recruitment of a new CEO since Håkan Hellström announced that he will leave his position as CEO in connection with the 2013 AGM.

During 2012, the Board decided to establish a separate Remuneration Committee, effective from the 2013 AGM. The separate remuneration committee is to include three Directors, including the Chairman, who will be the Chairman of the remuneration committee.

Audit Committee

The Audit Committee, which consists of all members of the Board, functions as follows:

• Reviews and monitors both fi nancial control as well as internal audit and risk management,
• Keeps informed about the Annual Report and consolidated accounts,
• Review and monitors the auditor's impartiality and independence, and evaluates auditing activities and informs the election committee of the outcome of the evaluation,
• Assists the Committee in preparing proposals for auditors and compensation to them.

The Audit Committee is to meet at least three times a year, of which the auditors must attend at least twice. At one of those times when the Audit Committee meets with the auditors, no one from corporate management is to be present.

In 2012, the Committee met on three occasions.

Board of directors	Charlotte Strömberg Chairman of the Board Born 1959, Master of Business Administration and Economics.	Per Berggren, Board member Born 1959, Master of Science and economic education from Stockholm University. CEO of Hemsö Fastighets AB.	Marianne Dicander Alexandersson Board member Born 1959, Master of Science. CEO Global Health Partner AB.	Ulla-Britt Fräjdin Hellqvist, Board member Born 1954, Master of Science. Own operations in Fräjdin & Hellqvist AB.
Previous positions	CEO for the nordic business at Jones Lang LaSalle, leading positions in investment banking at Carnegie Investment Bank and Alfred Berg (ABN AMRO).	CEO of Jernhusen AB, division manager in Fabege AB, CEO of Drott Kontor AB and property manager in Skanska Fastigheter Stockholm AB.	CEO Sjätte AP-fonden and CEO Kronans Droghandel, deputy CEO of Apoteket AB and positions within Volvo, ICI, Pharmacia.	Executive positions within Volvo Personvagnar and Head of Department in Confederation of Swedish Enterprise.
Other assignments	Director in Boomerang AB, Fjärde AP fonden, Intrum Justitia AB (publ), Skanska AB (publ) and Swedbank AB (publ).		Director of Chalmers University of Technology and Mölnlycke Healthcare AB.	Chairman of the Board in Kongsberg Automotive ASA, Sinter-Cast AB and Stiftelsen för Strategisk Forskning. Board member in Data Respons ASA, e-man, Fouriertransform, Micronic Mydata, Stockholm Environment Institute, Tällberg Foundation and Vindora Holding.
Elected	2012	2007	2005	2003
Remuneration, SEK	510,000	245,000	245,000	245,000
Attendence, Board meetings	11/11	12/13	13/13	13/13
- Remuneration Committee	4/4	4/4	4/4	4/4
- Audit Committee	2/2	3/3	3/3	3/3
Shareholdings in Castellum AB	5 100	2 700	3 030	800
Independent	Yes	Yes	Yes	Yes
	Christer Jacobson, Board member Born 1946, Master of Business Administration and Economics DHS. Own operations in	Jan Åke Jonsson Board member Born 1951, education in computing and business administration from Högre	Johan Skoglund, Board member Born 1962, Master of Science KTH and the program of Master of	Johan Ljungberg, Styrelsesekreterare Born 1974, Secretary of the Board since 2008. Lawyer, Mannheimer Swartling
Previous positions	Bergsrådet Kapital AB. Stock commentator and market manager at Affärsvärlden and Head of Analysis and CEO of the	Tekniska Läroverket in Linköping and Uppsala University. CEO at Saab Automobile AB and different operational management positions in Saab Automobil and	Science Handelshögskolan, Stockholm. CEO JM. Has experience since 1986 from JM AB in different positions.	Advokatbyrå.
Other assignments	Alfred Berg-group. Director in Viscogel AB and Max Matthiessen Värdepapper AB.	General Motors. Chairman of the board of direc tors of Polstiernan Industri AB, Bythjul i Norden AB, Västkustens Affärsänglar AB and Datachassi AB. Boardmember of Vatten fall AB and Opus Group AB.	Director of JM AB, Mentor Sverige and Infranord AB.
Elected	2006	2012	2010
Remuneration, SEK	245,000	245,000	245,000
Attendence, Board meetings	12/13	11/11	13/13
- Remuneration Committee	4/4	4/4	3/4
- Audit Committee	3/3	2/2	2/3
Shareholdings in Castellum AB Independent	40,000 Yes	0 Yes	3,000 Yes

Jan Kvarnström, who has been Chairman of the Board in Castellum AB since 1994 until the AGM March 22, 2012, has during 2012 attended in 2/2 board meetings and 1/1 meeting in the audit committee.

The information above refers to the situation in the end of January 2013. Shareholdings include own holdings and those of spouse, minors or children living at home and associated companies and holdings through capital assurance.

Audit

Castellum's auditors are elected by the AGM for a period of three years. The present period began in 2011 and the next election will therefore take place at the AGM in 2014. The company's auditors are Carl Lindgren, from KPMG, Magnus Fredmer, who works at Ernst & Young and deputy auditor Conny Lysér, who works at KPMG. All of them are certifi ed public accountants.

Auditor Carl Lindgren, who has been an auditor of the company since 2007, has announced that he will leave his profession as auditor in 2013 and thereby leaves as auditor for Castellum, in connection with the AGM. Deputy auditor Conny Lysér will, as deputy auditor, replace Carl Lindgren for his remaining mandate, i.e. until after the 2014 AGM.

Remuneration to auditors

	2012	2011	2010
Audit assignement	2,610	2,671	2,682
Audit business in addition to the audit assignement	221	313	287
Tax consulting	1,481	1,599	1,410
Other consulting	8	–	–
Total	4,320	4,583	4,379
of which KPMG	4,127	4,184	4,103
of which Ernst & Young	193	399	276

Carl Lindgren Born 1958 Company's auditor since 2007

Magnus Fredmer Born 1964 Company's auditor since 2011

Conny Lysér Born 1962 Company's deputy auditor since 2003

Executive Group Management

Executive Group Management at Castellum 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 held 9 meetings in 2012.

The Chief Executive Offi cer and the Deputy Chief Executive Offi cer together with the Managing Director of each Subsidiary constitutes the Board for each local subsidiary.

The Chief Executive Offi cer

The Chief Executive Offi cer is responsible for the company's day-to-day operations and for leading operations according to the guidelines and directives submitted by the Board of Directors and for providing the Board with information and the necessary background/documentation for decisionmaking. The Chief Executive Offi cer also reports at the Board meetings and is to assure that members of the Board regularly receive the information required to follow the company's and the Group's fi nancial position, results, liquidity, and development.

CEO change

Håkan Hellström, who has worked for the company since 1994 and as CEO since 2006, has announced that he will leave his position and retire in connection to the AGM March 21, 2013.

The Board has appointed Henrik Saxborn as new CEO to succeed Håkan Hellström. Henrik Saxborn has been deputy CEO in Castellum since 2006.

Guidelines for remuneration for Senior Executives

The AGM 2012 decided on the following guidelines for remuneration for senior executives:

Castellum is to uphold the remuneration levels competetive and terms of employment required in order to recruit and maintain excellent management with the competence and capacity to achieve set objectives. A fi xed salary will be paid for work performed in a satisfactory manner. In addition, fl exible remuneration under an incentive plan may also be offered. The formulation is based on the objective of interconnecting the executive team's interests with shareholder interests and that senior management members also are shareholders in Castellum. Moreover, it entails that an increased proportion of total remuneration is directly connected to the Group's development. This fl exible remuneration will aim to promote long-term value creation within the Group. Flexible remuneration which generally cannot exceed the fi xed salary is determined by how far in advance its objectives for growth in property management earnings-per-share and share-price-development are achieved. It is also determined by how well soft factors, such as customer and employee satisfaction, are developed. Flexible remuneration is paid as non-pensionable salary. Executives who receive fl exible remuneration are committed to acquiring Castellum shares for at least half the amount of fl exible remuneration after tax.

The pension terms of the executive management are to be set according to general market practice and will be based on pension plans with fi xed payments.

Upon termination by the Company, such period of notice shall not exceed 24 months for the Chief Executive Offi cer and 12 months for other executives, with the obligation to work the fi rst six months. During the notice period full salary and other benefi ts are paid, less pay and compensation received from other employment.

Castellum has followed the guidelines decided by the AGM 2012.

The proposed guidelines for remuneration for senior executives which will be put forward at the AGM on March 22, 2013 are in principle unchanged compared with those put forward at the AGM in 2011.

The proposal for a renewed incentive plan for members of executive management will be submitted, which in principle is an extension of the existing program. In respect of the annual profi t-based bonus, the incentive program is to be applicable for 2014-2016, and, for the share-price-based bonus, the effective period will be June1st, 2011-May 31, 2017.

For further information regarding remuneration for management see note 10.

Executive Group Management

Håkan Hellström Chief Execurive Offi cer,	Henrik Saxborn Deputy Chief Executive	Anette Asklin Financial Director,	Tage Christoffersson Managing Director,	Ulrika Danielsson Finance Director,
Castellum AB Born 1956, Master of Business Administration and Economics. Leaves his position as CEO in connection with the AGM March 21, 2013.	Offi cer, Castellum AB, with responsibility for business development Born 1964, Master of Science. Enter as CEO in connection with the AGM March 21, 2013.	Castellum AB Born 1961, Master of Business Administration and Economics.	Eklandia Fastighets AB Born 1952, upper secondary school and real estate/ economy at KTH.	Castellum AB Born 1972, Master of Business Administration and Economics.
Employed 1994 as Financial and Finance Director. CEO since 2006. Has previously worked as Authorized Public Accountant. Other assignments: Member of the Board of West Sweden Chamber of Commerce and Industry.	Long experience from both construction business, mana gement and acquisitions of properties, i.e. as CEO for a property managment company. Employed since 2006.	More than 20 years experience from bank and fi nance. Employed since 2000 and Financial Director since 2006.	Has been working in the real estate business since 1976. Employed since 1994 and Managing Director of Eklandia since 1995.	Experience within the fi nancial and controlling function. Employed since 1998 and Finance Director since 2006.
Shareholdings: 127,300	Shareholdings: 23,800	Shareholdings: 31,310	Shareholdings: 55,000	Shareholdings: 9,000
Claes Junefelt	Claes Larsson	Anders Nilsson	Christer Sundberg	Gunnar Östenson
Managing Director, Fastighets AB Corallen	Managing Director, Aspholmen Fastigheter AB	Managing Director, Fastighets AB Brostaden	Managing Director, Harry Sjögren AB	Managing Director,
Born 1960, Master of Science.	Born 1957, Master of Science.	Born 1967, Master of Science.	Born 1955, Master of Science.	Fastighets AB Briggen Born 1956, Master of Business Administration and Economics.
More than 15 years experience from building construction as team manager/district manager. Employed and Managing Director of Corallen since 2005.	More than 10 years experience from building construction as team manager/district manager. Employed and Managing Director of Aspholmen since 2002.	More than 15 years experience from the real estate business. Employed since 1993 and Managing Director of Brostaden since 2006.	More than 25 years experience from banks and real estate companies. Employed and Managing Director of Harry Sjögren AB since 1993.	Previous experience from real estate management and the construction industry. Employed and Managing Director of Briggen since 2006
Shareholdings: 12,220	Shareholdings: 25,400	Shareholdings: 10,534	Shareholdings: 50,075	Shareholdings: 11,350

The information above refers to the situation in the end of January 2013. Shareholdings include own holdings and those of spouse, minors or children living at home and associated companies and holding trough capital assurance.

Internal control

According to the Swedish Companies Act and the Swedish Code for Corporate Governance, the Board of Directors is responsible for internal control. This report has been drawn up in accordance with the Swedish Annual Accounts Act and the Code for corporate governance and is therefore limited to internal control regarding fi nancial reporting.

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-andcommunication, and monitoring.

Control environment

The basis for internal control of financial reporting comprises a control environment, which consists of various parts that form Castellum's management culture and values. The fundamentals for Castellum's internal control comprise the following: a decentralized small-scale organization with over 600 properties, as well as cost centres, which are managed by six Subsidiaries, each with approx. 35-45 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, etc., are also important for internal control. Documents in use are updated regularly to reflect changes in legislation, accounting standards or listing requirements etc.

Risk assessment

At Castellum, risk management is built into our processes and various methods are used to evaluate and limit risks. We 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, and the Audit Committee, review 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 fi nancial reporting are errors in 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 in fi nancial reporting are addressed by the company's control structure, resulting in a number of control measures. The control measures aim to prevent, discover and correct errors and deviations. They comprise analytical reviews on many levels in the organization: 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 activities; groupwide defi nitions; templates and tools for reporting as well as accounting and valuation principles.

Castellum subsidiaries have their own fi nancial functions, which take part in the planning and follow-up of fi nancial results for their units. The regular self-analysis of unit fi nancial reporting and the analysis made at Group level constitute an important part of internal control. This ensures that fi nancial reporting does not contain any signifi cant errors.

Information and communication

Castellum has processes for information and communication that aim to ensure the effective and correct distribution of information regarding fi nancial reporting. This demands that all areas of the operation communicate and share relevant and important information. Policies and guidelines regarding fi nancial reporting as well as updates and changes are

Castellum's internal control environment

made available and clearly communicated 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, we have both a policy for communicating with the stock market and an information security policy.

Company culture

That Castellum's operations are conducted in a responsible way is a prerequisite for the company's long-term success-ful business. The objective is to make sound and proper business decisions in all respects high business morality, good business ethics, responsibility awareness and impartiality.The base of Castellum's code of conduct is to offer good quality and service, to follow laws and regulations, not to discriminate against anyone and to create good working environment and safety.

Corner stone's for Castellum's company culture has been: The decentralized organization, which creates respons-ibility and committed employees, where each single colleague is a buisness collaborator. The geographical proximity to customers, community, suppliers and other parties involved creates a responsibility to act correctly and businesslike.

In Castellum's fl at organization each employee has an important role and new ideas are valued, as well as a high level of competence is available within the organization.

When Castellum was established clear guidelines were formed, where the work is carried out in structured processes, creating order and clarity and thus guarantee credibility and quality in the work. The fl at organization provides a natural transparency and quality assurance.

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 company management and the auditors. The company's auditors also report in person directly to the Audit Committee at least twice a year re their observations from the audit and their assessment of internal control. In addition, the Audit Committee conducts an annual review of the risk assessments and agreed-upon measures. Monitoring by the Audit Committee and the Board of Directors is of particular importance for the development of internal control and for ensuring that measures are taken for possibly emerging shortcomings and suggestions.

The need for internal audits

Castellum features a small-scale organization with approx. 35-45 employees in each company. Together, these units manage over 600 cost centres. All property management is run by the Subsidiaries while fi nancial management is taken care of by the parent company's treasury department. This means that Castellum AB is not a profi t centre. It places the fi nancial function of the parent company in the twin roles of a controlling function for the Subsidiaries as well as a compliance-offi cer function for the treasury department. The fi nance director in the parent company also report directly to the Audit Committee, without other management attendance, observations made and measures relating to compliance. In all, this structure provides a rationale for the assessment that there is no need for a special internal auditing unit.

Quarterly Summary

	Jan-March 2012	Apr-June 2012	July-Sept 2012	Oct-Dec 2012	2012	Jan-March 2011	Apr-June 2011	July-Sept 2011	Oct-Dec 2011	2011
Income Statement, SEKm
Rental income	753	768	764	788	3,073	717	730	734	738	2,919
Property costs	– 284	– 240	– 229	– 289	– 1,042	– 288	– 238	– 212	– 265	– 1,003
Net operating income	469	528	535	499	2,031	429	492	522	473	1,916
Central administrative expenses	– 23	– 24	– 19	– 27	– 93	– 20	– 25	– 18	– 20	– 83
Net interest costs	– 173	– 171	– 169	– 170	– 683	– 159	– 162	– 170	– 169	– 660
Income from property management	273	333	347	302	1,255	250	305	334	284	1,173
Changes in value. properties	10	18	28	– 125	– 69	97	291	48	– 242	194
Changes in value. derivatives	206	– 97	– 192	– 27	– 110	171	– 104	– 432	– 64	– 429
Current tax	– 2	– 4	– 3	2	– 7	– 1	– 1	– 4	– 4	– 10
Deferred tax	– 125	– 32	– 46	607	404	– 123	– 128	16	18	– 217
Net income for the period/year	362	218	134	759	1,473	394	363	– 38	– 8	711
Other total net income	0	0	– 6	2	– 4	0	0	0	0	0
Total net income for the period/year	362	218	128	761	1,469	394	363	– 38	– 8	711
Balance Sheet. SEKm
Investment properties	34,200	34,632	35,433	36,328	36,328	32,284	32,896	33,273	33,867	33,867
Other fi xed assets	176	264	292	259	259	192	181	192	207	207
Cash and bank	22	59	14	44	44	113	104	146	97	97
Total assets	34,398	34,955	35,739	36,631	36,631	32,589	33,181	33,611	34,171	34,171
Shareholders' equity	10,958	11,176	11,304	12,065	12,065	10,886	11,249	11,211	11,203	11,203
Deferred tax liability	3,839	3,871	3,917	3,310	3,310	3,620	3,747	3,731	3,714	3,714
Derivatives	796	894	1,072	1,105	1,105	403	508	941	1,003	1,003
Long term interest-bearing liabilities	17,839	18,066	18,472	19,094	19,094	16,370	16,677	16,739	17,160	17,160
Non-interest-bearing liabilities	966	948	974	1,057	1,057	1,310	1,000	989	1,091	1,091
Total shareholders' equity and liabilities	34,398	34,955	35,739	36,631	36,631	32,589	33,181	33,611	34,171	34,171
Financial key ratios
Net operating income margin
Interest rate, avarage	62%	69%	70%	63%	66%	60%	67%	71%	64%	66%
Interest coverage ratio	4.1% 258%	3,9% 295%	3,9% 305%	3,7% 278%	3.9% 284%	4.0% 257%	4.0% 288%	4.2% 296%	4.1% 268%	4.1% 278%
Return on actual net asset value	13.3%	6.0%	4.8%	7.0%	7.9%	14.3%	13.5%	– 1.4%	– 0.8%	6.4%
Return on total capital	5.3%	6.0%	6.2%	3.8%	5.3%	6.3%	9.3%	6.6%	2.5%	6.2%
Investments in properties, SEKm	331	615	843	1,009	2,798	522	319	328	846	2 015
Sales, SEKm	8	203	42	–	253	103	–	–	4	107
Loan to value ratio	52%	52%	52%	53%	53%	51%	51%	50%	51%	51%
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	164,000	164,000
Income from property management, SEK	1.66	2.03	2.12	1.84	7.65	1.52	1.86	2.04	1.73	7.15
Income prop mgmt after tax (EPRA EPS), SEK	1.59	1.87	1.93	1.88	7.27	1.47	1.76	1.88	1.90	7.01
Earnings after tax, SEK	2.21	1.33	0.82	4.63	8.98	2.40	2.21	– 0.23	– 0.05	4.34
Outstanding number of shares, thousand	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000
Property value, SEK	209	211	216	222	222	197	201	203	207	207
Long term net asset value (EPRA NAV), SEK	95	97	99	100	100	91	95	97	97	97
Actual net asset value (EPRA NNNAV), SEK	86	87	88	90	90	84	87	87	87	87
Dividend, SEK (2011 proposed)					3,95					3.70
Dividend ratio*					52%					52%
Property related key ratios
Rental value, SEK/sq,m,	1,011	1,015	1,020	1,032	1,015	991	993	989	1,002	995
Economic occupancy rate	88.5%	89.4%	88.2%	88.8%	88.6%	88.7%	89.4%	90.0%	89.0%	89.3%
Property costs, SEK/sq,m, Property value, SEK/sq,m,	335 9,903	281 9,971	267 9,927	325 9,916	298 9,916	352 9,621	287 9,778	255 9,845	313 9,835	300 9,835

Multi Year Summary

	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003
Income Statement, SEKm
Rental income	3,073	2,919	2,759	2,694	2,501	2,259	2,014	1,907	1,856	1,758
Property costs	– 1,042	– 1,003	– 960	– 942	– 831	– 771	– 700	– 637	– 628	– 595
Net operating income	2,031	1,916	1,799	1,752	1,670	1,488	1,314	1,270	1,228	1,163
Central administrative expenses	– 93	– 83	– 84	– 81	– 71	– 69	– 67	– 68	– 69	– 67
Net interest costs	– 683	– 660	– 574	– 541	– 626	– 495	– 364	– 382	– 418	– 428
Income from property management	1,255	1,173	1,141	1,130	973	924	883	820	741	668
Changes in value, properties	– 69	194	1,222	– 1,027	– 1,262	920	1,145	932	660	– 43
Changes in value, derivatives	– 110	– 429	291	102	– 1,010	99	178	– 40	– 146	– 13
Current tax	– 7	– 10	– 5	– 10	–14	– 22	– 10	–1	– 5	– 1
Deferred tax	– 404	– 217	– 685	– 35	650	– 434	– 522	– 417	– 334	– 171
Net income for the year	1,473	711	1,964	160	– 663	1,487	1,674	1,294	916	440
Other total net income	– 4	0	–	–	–	–	–	–	–	–
Total net income for the year	1,469	711	1,964	160	– 663	1,487	1,674	1,294	916	440
Balance Sheet, SEKm
Investment properties	36,328	33,867	31,768	29,267	29,165	27,717	24,238	21,270	19,449	18,015
Other fi xed assets	259	207	156	201	230	123	200	103	94	167
Cash and bank	44	97	12	8	9	7	8	5	7	33
Total assets	36,631	34,171	31,936	29,476	29,404	27,847	24,446	21,378	19,550	18,215
Shareholders' equity	12,065	11,203	11,082	9,692	10,049	11,204	10,184	8,940	8,035	7,467
Deferred tax liability	3,310	3,714	3,502	2,824	2,785	3,322	2,723	2,126	1,659	1,294
Derivatives	1,105	1,003	574	865	966	– 44	55	233	391	245
Long term interest-bearing liabilities	19,094	17,160	15,781	15,294	14,607	12,582	10,837	9,396	8,834	8,598
Non-interest-bearing liabilities	1,057	1,091	997	801	997	783	647	683	631	611
Total shareholders' equity and liabilities	36,631	34,171	31,936	29,476	29,404	27,847	24,446	21,378	19,550	18,215
Financial key ratios
Net operating income margin	66%	66%	65%	65%	67%	66%	65%	67%	66%	66%
Interest rate, average	3.9%	4.1%	3.7%	3.7%	4.7%	4.2%	3.7%	4.3%	4.9%	5.4%
Interest coverage ratio	284%	278%	299%	309%	255%	287%	343%	315%	277%	256%
Return on actual net asset value	7.9%	6.4%	21.5%	1.6%	– 8.3%	16.2%	20.7%	18.2%	14.6%	7.2%
Return on total capital	5.3%	6.2%	9.8%	2.1%	1.2%	9.1%	10.4%	10.4%	9.6%	5.9%
Net investments in properties, SEKm	2,798	2,015	1,506	1,165	2,738	2,598	2,283	1,357	1,268	1,108
Sales, SEKm	253	107	227	36	28	39	460	468	494	397
Loan to value ratio	53%	51%	50%	52%	50%	45%	45%	45%	45%	48%
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	164,000	164,000
Income from property management, SEK	7.65	7.15	6.96	6.89	5.93	5.63	5.38	5.00	4.52	4.07
Income prop mgmt after tax (EPRA EPS), SEK	7.27	7.01	6.62	6.93	5.85	5.50	5.09	4.49	4.15	3.82
Earnings after tax, SEK	8.98	4.34	11.98	0.98	– 4.04	9.07	10.21	7.89	5.59	2.68
Number of outstanding shares, thousand	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000
Property value, SEK	222	207	194	178	178	169	148	130	119	110
Long term net asset value (EPRA NAV), SEK	100	97	92	82	84	88	79	69	61	55
Actual net asset value (EPRA NNNAV), SEK	90	87	85	73	75	85	76	65	57	52
Dividend, SEK (2012 proposed)	3.95	3.70	3.60	3.50	3.15	3.00	2.85	2.62	2.38	2.13
Dividend ratio*	52%	52%	52%	51%	53%	53%	53%	52%	53%	52%
Property related key ratios
Rental value, SEK/sq,m,	1.015	955	974	969	921	896	864	851	859	829
Economic occupancy rate	88.6%	89,3%	89.0%	89.8%	89.7%	87.9%	87.1%	88.1%	89.6%	90.7%
Property costs, SEK/sq,m, Property value, SEK/sq,m,	298 9,916	300 9,835	298 9,499	300 9,036	268 8,984	262 9,098	259 8,466	247 7,930	255 7,706	246 7,296

Financial Reports 2012

Consolidated Statement of Comprehensive Income Comments to the Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Comments to the Consolidated Balance Sheet
Income statement and Comprehensive Income for the Parent Company
Balance Sheet for the Parent Company
Change in Equity
Cash Flow Statement
Accounting Principles and Notes 1. Accounting Principles
2. Segment Reporting
3. Rental Income
4. Property Costs
5. Central Administrative Expenses
6. Interest rate and Financial Income 7. Interest rate and Financial Costs
8. Change In Value
9. Tax Costs
10. Personnel and Board of Directors
11. Investment Properties 12. Equipment
13. Shareholders´ Equity and Net Asset Value
14. Liabilities
15. Deferred Tax Liability / Asset
16. Derivatives 17. Long-term Interest-bearing Liabilities
18. Accrued Expenses and Prepaid Income
19. Pledged Assets
20. Contigent Liabilities
21. Participations in Group Companies 22. Long-term Receivables, Group Companies
23. Financial Instruments - Future cash fl ow etc.
24. Subsequent Events

Consolidated Statement of Comprehensive Income

SEKm		2012	2011
Rental income	Note 3	3,073	2,919
Operating expenses	Note 4	– 544	– 553
Maintenance	Note 4	– 130	– 115
Ground rent	Note 4	– 24	– 24
Property tax	Note 4	– 152	– 148
Leasing and property administration	Note 4	– 192	– 163
Net operating income		2,031	1,916
Central administrative expenses	Note 5	– 93	– 83
Net interest
Interest income	Note 6	7	2
Interest cost	Note 7	– 690	– 662
Income from property management		1,255	1,173
Changes in value	Note 8
Properties		– 69	194
Derivatives		– 110	– 429
Income before tax		1,076	938
Current tax	Note 9	– 7	– 10
Deferred tax	Note 9	404	– 217
Net income for the year		1,473	711
Other total net income
Translation difference foreign operations		– 12	0
Change in value, currency hedge foreign operations		8	0
Total net income for the year		1,469	711

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
Net income for the year after tax, SEK	8.98	4.34

Comments to the Consolidated Statement of Comprehensive Income

Rental income

Group rental income amounted to SEKm 3,073 (2,919). For offi ce and retail properties, the average contracted rental level, including charged heating, cooling and property tax, amounted to SEK 1,257 per sq.m., whereas for warehouse and industrial properties, it amounted to SEK 744 per sq.m. Rental levels, which are considered to be in line with the market, have in comparable portfolio increased by 2% compared with previous year, which mainly is an effect from indexation.

The average economic occupancy rate was 88.6% (89.3%). The total rental value for vacant premises during the year amounted to approx. SEKm 447 (371).

Gross leasing (i.e. the annual value of total leasing) during the period was SEKm 327 (310), of which SEKm 79 (45) was leasing of new constructions, extensions and reconstructions. Notices of termination amounted to SEKm 278 (249), of which bankruptcies were SEKm 28 (18) and SEKm 40 (24) were notices of termination with more than 18 months remaining length of contract. Hence net leasing was SEKm 49 (61). The time difference between reported net leasing and the effect in income is estimated to be 9-18 months.

The demand on premises remains on a good level, especially for new constructions, extensions and reconstructions. This is valid for all Castellum's property types as well as regions, however, retail premises had a slightly declining demand.

Rental levels are expected to remain stable. The 2012 infl ation rate has for Castellum resulted in an rental index adjustment of, on average, 1% for 2013.

Property costs

Property costs amounted to SEKm 1,042 (1,003) corresponding to SEK 298 per sq.m. (300). Consumptions for heating during the year has been calculated to 97% (87%) of a normal year according to the degree day statistics.

Central administrative expenses

Central administrative expenses totalled SEKm 93 (83). This includes costs for a profi t-and-share-price related incentive plan for 10 persons in executive management of SEKm 11 (14).

Net interest

Net interest items amounted to SEKm –683 (–660). The average interest rate level was 3.9% (4.1%).

Income from property management

Income from property management during the year, i.e. net income excluding changes in value and tax, amounted to SEKm 1,255 (1,173), equivalent to SEK 7.65 (7.15) per share - an increase with 7%.

Changes in value

Since prices have been generally stable, no general yield change has been made in the internal valuations.

The change in value in Castellum's portfolio during the year amounted to SEKm –69 (194) and includes SEKm 245 which refers to acquisitions and project gains, SEKm –334 individual adjustments on property level which mainly refers to cash fl ow but also yield and SEKm 20 from the sale of 15 properties. Net sales price amounted to SEKm 253 after reduction for assessed deferred tax and transaction costs of SEKm 13. Hence the underlying property price, which amounted to SEKm 266, exceeded the latest valuation of SEKm 233 with SEKm 33.

The value in the interest derivatives portfolio has changed by SEKm –110 (–429), mainly due to changes in long-term market interest rates.

The value of Castellum's currency derivatives, with the purpose to hedge currency fl uctuations in the Danish investment, has during the period changed SEKm 8 (0) where the value changes is accounted for in other total net income.

Tax

The Swedish nominal corporate tax rate for 2012 is 26.3% but will, with effect from January 1, 2013, be reduced to 22%. As a result of the reduced income tax, Castellum reports a nonrecurring income of 647 SEKm due to revaluation of deferred tax liability.

Castellum has no ongoing formal tax disputes.

Tax Calculation 2012, SEKm	Basis	Basis
	current tax	deferred tax
Income from property management	1,255
Deductions for tax purposes
depreciations	– 679	679
reconstructions	– 289	289
Other tax allowances	– 48	27
Taxable income from property management	239	995
Properties sold	58	– 145
Changes in value on properties	–	– 89
Changes in value on interest rate derivatives	– 110	–
Taxable income before tax loss carry forwards	187	761
Tax loss carry forwards, opening balance	– 1,772	1,772
Tax loss carry forwards, closing balance	1,610	– 1,610
Taxable income	25	923
Of which 26,3% current/deferred tax	– 7	– 243
Restatement of deferred tax to 22%	–	647
Tax according to the statement of com
prehensive income	– 7	404

Consolidated Balance Sheet

SEKm		Dec 31 2012	Dec 31 2011
ASSETS
Fixed assets
Investment properties	Note 11	36,328	33,867
Tangible fi xed assets	Note 12	24	15
Long-term receivable		3	0
Total fi xed assets		36,355	33,882
Current assets
Rent receivables	Note 3	20	20
Other receivables		154	108
Prepaid expenses and accrued income		58	64
Cash and bank		44	97
Total current assets		276	289
TOTAL ASSETS		36,631	34,171
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity attributable to the shareholders of	Note 13
the parent company
Share capital		86	86
Other capital contribution		4,096	4,096
Reserves		– 4	0
Retained earnings		7,887	7,021
Total shareholders' equity		12,065	11,203
Liabilities	Note 14
Long-term liabilities
Deferred tax liability	Note 15	3,310	3,714
Derivatives	Note 16	1,105	1,003
Long-term interest-bearing liabilities	Note 17	19,094	17,160
Total long-term liabilities		23,509	21,877
Short-term liabilities
Accounts payable		171	163
Tax liabilities		22	22
Other liabilities		176	179
Accrued expenses and prepaid income	Note 18	688	727
Total short-term liabilities		1,057	1,091
Total liabilities		24,566	22,968
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		36,631	34,171
Pledged assets	Note 19	18,764	18,986
Contingent liabilities	Note 20	–	–

Comments to the Consolidated Balance Sheet

Assets

Fixed assets

During the year the real estate portfolio has changed according to the table below.

Changes in the real estate portfolio	Value, SEKm	Number
Real estate portfolio on January 1, 2012	33,867	617
+ Acquisitions	1,519	33
+ New constructions, extensions and reconstructions	1,279	–
– Sales	– 233	– 15
+/– Unrealized changes in value	– 89	–
+/– Currency translation	– 15	–
Real estate portfolio on December 31, 2012	36,328	635

During the year investments totalling SEKm 2,798 (2,015) were made, of which SEKm 1,279 (1,158) were new constructions, extensions and reconstructions and SEKm 1,519 (857) were acquisitions. Of the total investments SEKm 692 related to Mälardalen, SEKm 605 to Greater Stockholm, SEKm 597 to the Öresund Region, SEKm 584 to Greater Gothenburg, and SEKm 320 to Eastern Götaland. After sales of SEKm 253 (107) net investments amounted to SEKm 2,545 (1,908).

Castellum assesses the value of properties through internal valuations. The valuations are based on a 10-year cash-fl owbased model, in which an individual valuation for each property refl ects both its future earnings capacity and the required market yield. In the valuation of a property's future earnings capacity, consideration has been taken of potential changes in rental levels, occupancy rates and property costs - as well as an asumed infl ation level of 1.5%. Projects in progress have been valued using the same principle, but with deduction 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 990 per sq.m. (980).

Based on these internal valuations, the value of the properties at year-end were assessed to SEKm 36,328 (33,867), corresponding to SEK 9,916 per sq.m. (9,835).

External valuation

In order to provide further assurance and validation of the valuation, 144 properties - representing 52% of portfolio value - have been valued externally by NAI Svefa. The properties were selected on the basis of the largest properties in terms of value, but they also refl ect the composition of the portfolio as a whole in terms of category and geographical location of the properties. NAI Svefas valuation is 2% less than Castellums. In addition, Forum Fastighetsekonomi AB made a desktop valuation of 30 properties corresponding in value to 19% of the portfolio. Forums valuation exceeds Castellums valutation with 2% while NAI Svefas valuation of the same properties is 3% lower than Castellums.

It can be noted that Castellum's deviation from the two external valuers accommodated well within the uncertainty range of +/– 5-10%.

Shareholders' equity and liabilities

Net asset value

As of December 31 shareholder's equity was SEKm 12,065. In addition, there are liabilities in the balance sheet that, in principle, are both interest free and amortization free. Hence, these liabilities can largely be regarded as shareholders' equity. The net asset value can therefore be calculated in different ways, as presented in the table below.

Net asset value 31-12-2012	SEKm	SEK/share
Equity according to the balance sheet	12,065	74
Reversed
Derivatives acc to balance sheet	1,105	6
Deferred tax acc to balance sheet	3,310	20
Long term net asset value (EPRA NAV)	16,480	100
Deduction
Derivatives as above	– 1,105	– 6
Estimated real liability, deferred tax 4,3%	– 686	– 4
Actual net asset value (EPRA NNNAV)	14,689	90

Deferred tax

Remaining tax loss carryforwards can be calculated to SEKm 1,610 (1,772). The fair value of the properties exceed their fi scal value by SEKm 17,412 (16,197) of which SEKm 758 relates to properties acquired and accounted for as asset acquisitions. As deferred tax liability, a full nominal 22% tax of the net difference is reported, reduced by the deferred tax relating to asset acquisitions, i.e. SEKm 3,310 (3,714).

Long term interest-bearing liabilities

After deduction of liquid assets of SEKm 44 (97), net interest bearing liabilities were SEKm 19,050 (17,063), of which SEKm 1,200 (0) were MTN and SEKm 1,872 (2,235) outstanding commercial papers.

Most of Castellum's loans are short-term revolving loans, utilized in long-term binding credit agreements in the largest nordic banks. Long-term loan commitments in banks are secured by pledged mortgages in properties 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%, which Castellum fulfi ls with comfortable margins, 53% and 284% respectively.

The average duration of Castellum's long-term credit agreements was 4.1 years (5.1). Margins and fees on longtermcredit agreements had an average duration of 2.8 years (3.5).

As of December 31, 2012, the market value of the interest and the currency derivative portfolio amounted to SEKm –1,105 (–1,003).

Income Statement for the Parent Company

SEKm		2012	2011
Income	Note 3	15	19
Central administrative expenses	Note 5	– 68	– 61
Financial items
Financial income	Note 6	1,387	1,494
Financial costs	Note 7	– 727	– 712
Income before changes in value and tax		607	740
Changes in value	Note 8
Derivatives		– 110	– 429
Income before tax		497	311
Current tax	Note 9	–	–
Deferred tax	Note 9	– 49	78
Net income for the year		448	389

Comprehensive Income for the Parent Company

SEKm	2012	2011
Net income for the year according to the Income Statement	448	389
Other total net income
Translation difference foreign operations	– 10	0
Change in value, currency hedge foreign operations	8	0
Total net income for the year	446	389

Balance Sheet for the Parent Company

SEKm		Dec 31 2012	Dec 31 2011
ASSETS
Fixed assets
Tangible fi xed assets	Note 12	3	1
Financial fi xed assets
Participations in group companies	Note 21	5,338	5,338
Deferred tax assets	Note 15	222	271
Long-term receivables, group companies	Note 22	17,983	17,432
Total fi nancial fi xed assets		23,543	23,041
Total fi xed assets		23,546	23,042
Current assets
Short-term receivables, group companies		645	772
Prepaid expenses and accrued income		9	8
Cash and bank		27	0
Total current assets		681	780
TOTAL ASSETS		24,227	23,822
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	Note 13
Restricted equity
Share capital		86	86
Restricted reserves		20	20
Non-restricted equity
Fair value reserves		– 2	0
Retained earnings		4,144	4,362
Net income for the year		448	389
Total shareholders' equity		4,696	4,857
Liabilities	Note 14
Derivatives	Note 16	1,105	1,003
Long-term interest-bearing liabilities	Note 17	16,924	15,391
Long-term interest-bearing liabilities, group companies		1,361	1,809
Short-term interest-bearing liabilities Short-term interest bearing liabilities, group companies		– –	518 90
Accounts payable		3	2
Other liabilities Accrued expenses and prepaid income	Note 18	– 138	2 150
Total liabilities		19,531	18,965
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		24,227	23,822
Pledged assets	Note 19	15,090	16,103
Contingent liabilities	Note 20	2,170	1,174

Change in Equity

	Attributable to the shareholders of the parent company
	Number of out		Other	Currency	Currency
	standing shares,	Share	capital	translation	hedge	Retained	Total
Group, SEKm (note 13)	thousand	capital	contribution	reserve	reserve	earnings	equity
Shareholders' equity 31-12-2010	164,000	86	4,096	–	–	6,900	11,082
Dividend, March 2011 (3.60 per share)	–	–	–	–	–	– 590	– 590
Net income for the year	–	–	–	–	–	711	711
Other total net income	–	–	–	0	0	–	0
Shareholders' equity 31-12-2011	164,000	86	4,096	0	0	7,021	11,203
Dividend, March 2012 (3.70 per share)	–	–	–	–	–	– 607	– 607
Net income for the year	–	–	–	–	–	1,473	1,473
Other total net income	–	–	–	– 12	8	–	– 4
Shareholders' equity 31-12-2012	164,000	86	4,096	– 12	8	7,887	12,065

				Fair value reserves
	Number of			Currency	Currency
	outstanding	Share	Restricted	translation	hedge	Retained	Total
Parent Company, SEKm (note 13)	shares, thousand	capital	reserves	reserve	reserve	earnings	equity
Shareholders' equity 31-12-2010	164,000	86	20	–	–	4,952	5,058
Dividend, March 2011 (3.60 per share)	–	–	–	–	–	– 590	– 590
Net income for the year	–	–	–	–	–	389	389
Other total net income	–	–	–	0	0	–	0
Shareholders' equity 31-12-2011	164,000	86	20	0	0	4,751	4,857
Dividend, March 2012 (3.70 per share)	–	–	–	–	–	– 607	– 607
Net income for the year	–	–	–	–	–	448	448
Other total net income	–	–	–	– 10	8	–	– 2
Shareholders' equity 31-12-2012	164,000	86	20	– 10	8	4,592	4,696

Cash Flow Statement

	Group			Parent Company
SEKm	2012	2011	2012	2011
Operating activities
Net operating income	2,031	1,916	15	19
Central administrative expenses	– 93	– 83	– 68	– 61
Depreciations reversed	9	6	1	0
Net fi nancial items paid	– 700	– 651	– 2	19
Tax paid	– 1	– 14	–	–
Translation difference of currencies	3	0	–	–
Cash fl ow from operating activities
before change in working capital	1,249	1,174	– 54	– 23
Cash fl ow from change in working capital
Change in current receivables	– 32	– 51	126	68
Change in current liabilities	33	184	4	– 12
Cash fl ow from operating activities	1,250	1,307	76	33
Investment activities
Investments in new constructions, extensions and reconstructions	– 1,279	– 1,158	–	–
Property acquisitions	– 1,519	– 857	–	–
Change in liabilities at acquisitions of properties	– 56	– 95	–	–
Property sales	253	102	–	–
Change in receivables at sales of properties	– 8	3	–	–
Net capital contributions, subsidiaries	–	–	645	626
Other net investments	– 18	– 6	– 3	0
Cash fl ow from investment activities	– 2,627	– 2,011	642	626
Financing activities
New borrowing in interest-bearing liabilities	1,934	1,379	477	1,168
Change in long-term receivables	– 3	–	– 561	– 1,237
Dividend paid	– 607	– 590	– 607	– 590
Cash fl ow from fi nancing activites	1,324	789	– 691	– 659
Cash fl ow for the year	– 53	85	27	0
Cash and bank, opening balance	97	12	0	0
Cash and bank, closing balance	44	97	27	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, 2012, have been approved by the Board of Directors and the Chief Executive Offi cer for publication on January 31, 2013, and will be proposed to the 2013 Annual General Meeting for adoption. The parent company is a Swedish limited liability company (publ), registered in Gothenburg, Sweden. The business activities 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 Board's recommendation RFR 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	For 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 experience and other factors which are considered fair under current conditions. Actual outcome may be different from these assessments if other assumptions are made or other conditions exist.
	Investment properties For valuation of investment properties, the assessments and assumptions can have a signifi cant affect on the income and fi nancial position of the Group. The valuation requires estimates and assumptions of future cash fl ows and the discounting factor (required yield). To refl ect the uncertainty that exists in the assessments and assumptions, an uncertainty range of +/- 5-10% is normally used in property valuations. Information about this along with prevailing assessments and assump tions is presented in note 11.
	Asset acquisition versus business combination Company acquisitions can be classifi ed as either business combinations or asset acquisitions. A company acquisition that has as its primary purpose to acquire a company's property - i.e., where the company's possible property management and administration are of secondary importance to the acquisition - is classifi ed as an asset acquisition. Other company acquisi tions are classifi ed as business combinations. Regarding asset acquisitions, no deferred tax is attributable to the property acquisition. Instead, a possible discount reduces the acquisition value of the property. This means that changes in value will be affected by the tax discount in the subsequent valuation.
	Deferred tax liability According to the accounting principles, deferred tax shall be accounted for using nominal value without discount, meaning the decided 22% nominal tax rate. Actual tax is considerably lower, in part due to the possibility to sell properties in a tax effi cient manner, and in part due to the time factor.
Income from property management	Castellum's operations are focused on cash fl ow growth from property management - i.e., growth in income from property management - with the objective of an annual increase in property management income by at least 10%. It is also the income from property management that forms the basis of what is yearly distributed to shareholders - at least 50% of the property management income before tax. Thus, changes in value has not been targeted since they are neither included in the basis for distribution, nor in any other base, e.g. the management's incentive program. To give an accurate picture of Castellum's view on its business operations, the statement of comprehensive income has been designed accordingly - i.e., changes in values (not affecting cash-fl ow) are presented after items affecting cash-fl ow. Furthermore, one performance measure has been added on which the business operations are managed and targeted: the income from property mana gement.
Classifi cation	Fixed assets and long-term liabilities consist of amounts that are expected to be regained or maturing more than twelve months from the balance sheet date. 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 date.
The consolidated fi nancial statements	The Group's balance sheet and income statement include all companies where the parent company has direct or indirect control. 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 21 and their respective 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 method. This means that shareholders' equity in the subsidiaries at the time of acquisition, calculated as the difference between the fair value of the assets and liabilities, is fully eliminated. The shareholders' equity of the Group includes only the part of shareholders' equity in the subsidiaries that has been earned after acquisition.

The consolidated income statement includes records of 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.

The accounts of foreign operations are translated to SEK by translating the balance sheet to the exchange rate at balance date - except for shareholders' equity which is translated at the historical exchange rate. The income statement is translated at the average exchange rate of the period. Currency translation differences are recognized in other total income.

Rental income

Rental income, which from an accounting perspective represents income from operating leases, is debited in advance and recorded as a linear allocation in the income statement, based on the terms in the lease. Rental income includes supplementary charges for the tenant, such as debited property 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 accrued over the leasing period. Pure discounts, such as reduction for successive moving in, are recorded in the income statement for the period in which 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. Castellum has changed the reporting of sales of property through companies. Previously the transaction was gross accounted concerning underlying property price and calculated tax, while it's now net accounted. The change doesn't affect net income, but it is an offset between changes in value and deferred tax. Previous years have not been adjusted because the amounts were insignifi cant. The result from property sales is accounted for as a 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 adjustment for capitalized investments after the latest interim report.

Financial income

Financial income consists of interest rate income and is recorded as income in the period to which they refer. Received and anticipated dividends are also recorded as fi nancial income.

Financial costs include interest and other costs that occur when a company borrows money. Pledging costs for mortgages are not considered as fi nancial costs but are capitalized as a property investment since it increases valuation. Financial costs are accounted for in the period which they refer to. Financial costs also include the interest cost for interest-rate derivatives. Payments for these interest-rate derivatives are accounted for in the period to which they refer. Net fi nancial items have not been affected by market valuation of the undertaken interest rate derivatives. Instead, changes in market value of interestrate derivatives are recorded as changes in value under a separate headline. The portion of interest cost originating from the construction period for major new construction, extension or reconstruction projects is capitalized. Interest is calculated based on the average interest rate level for the Group.

Employee benefi ts are accounted for as employees perform services in exchange for remuneration. Benefi ts from incentive plans settled in cash and paid as non-pensionable salary are accounted for as the targets are met during the period of the incentive plan.

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, 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 in addition to what has already been paid to Alecta.

Income tax in the income statement is divided into current and deferred tax. Income tax is recorded in the income statement except when related to a transactions which have been recorded directly in equity. In these cases, related tax effects also are recorded directly in equity. Current and deferred taxes are calculated based on the current tax rate, 26.3%. Deferred tax also include the revaluation effect of the deferred tax liability to the decided tax rate of 22%, effective from January 1, 2013.

Open claims in the income tax return that contain a certain degree of uncertainty are taken into consideration in the tax calculation at the earliest in the year after the fi scal year, after taxation has been assessed by the tax authorities.

Deferred tax

Deferred tax is recorded in Castellum, using the balance sheet method, for all temporary differences 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 for which the asset or liability is realized. However, exceptions are made for temporary differences that arise from the initial accounting for assets and liabilities relating to asset acquisitions. 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 to offset tax-loss carry forwards. Deferred tax liability is calculated on the difference between the properties book value and their tax basis value. For changes in either of the two entries above, the deferred tax liability/tax asset is also changed, recorded in the income statement as deferred tax.

Castellum has recorded all company acquisitions completed during the year as asset acquisitions, meaning that deferred tax at the time of acquisition is not accounted for in the balance sheet.

Income

Financial cost

Employee benefi ts

Income taxes

FINANCIAL REPORTS

	Current tax In addition to deferred tax, current tax is also recorded in the income statement. Current tax is the tax the company must pay on the taxable income for the year, adjusted for possible prevailing taxes for previous periods.
Leases	Leases where all crucial risks and benefi ts associated with the ownership fall on the lessor, are classifi ed as operational leases. From an accounting perspective, all existing rental leases related to Castellum's investment properties are classifi ed as operational leases. Refer to accounting principles for income and note 3 for futher information of accounting for leases. From an accounting perspective, site leasehold is seen as an operational lease. The ground rent is accounted for in the income statement for the period to which it refers. 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 mainly concern leased cars. Payments made during the leasing period are recorded as running costs in the income statement, distributed over the leasing period.
Investment properties	An investment property is a property held for the purpose of generating rental income, capital appreciation - or both. This is as opposed to utilization 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 ground-leased properties are considered to be invest ment 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 are recorded at acquisition cost including expenses directly related to the acquisition. The acquisitions 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 an earnings-based value, determined by calculating the net prevailing value of future cash fl ows. A differentiated required yield for each property depending on such factors as location, intended use, condition and standard is taken into consideration. In order to provide further assurance, part of the portfolio has been valued externally.
	Changes in value Changes in value are recorded in the income statement and consist of unrealized as well as realized changes in value. Unrealized changes in value are calculated based on the valuation at the end of the fi nancial year compared with the previous year's valuation, or the acquisition value if the property has been acquired during the year, with the addition of capitalized subsequent expenditures. 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 adjustment for capitalized subsequent expenditures during the period. How realized changes in value are calculated is found in the accounting principles for "income from property sales".
	Subsequent expenditures Subsequent expenditures which lead to economic benefi ts for the company, i.e., increase the valuation of the property and can be reliably calculated are capitalized. Costs for repairs and maintenance are accounted for in the income statement for the period in which they occur. In the case of major new construction and reconstruction projects, interest costs during the construction period are capitalized.
	Acquisitions and sales For acquisition or sale of properties or companies, the transaction is entered as of the date-of-contract, unless special conditions exist in the purchasing contract.
Tangible fi xed assets	Tangible fi xed assets comprise all equipment, which has been recorded at acquisition value, including deduction of accumulated depreciation according to plan and any write-downs made. The acquisition value includes the purchase price and costs directly related to, e.g., transport-to-site and proper condition for utilization according to the purpose of the acquisition. Depreciation on equipment is based on historical acquisition values after possible deduction of subsequent write-downs. The residual value is assumed 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 and even 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 include assets such as cash-and-bank, lease receivables, other receivables and long-term receivables and liabilities such as interest and currency derivatives, accounts payable, other
	liabilities and loans. Financial instruments are initially recorded to fair value equivalent to acquisition value, with the addition of transaction costs, except for fi nancial instruments which are recorded at fair value through the income statement, where transaction costs are excluded. Following the initial recognition, accounting is based on the classifi cation made according to the criteria below. Financial transactions such as cash received or paid as interest and amortization 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.
	A fi nancial asset is removed from the balance sheet when the rights are realized, expired or the company loses control of it. A fi nancial liability is removed from the balance sheet when the contractual obligations have been paid or in some other way extinguished.
	Cash and bank Cash and bank consists of the bank balance at the end of the accounting period and is recorded at nominal value.

Receivables

Financial assets which are not derivatives, that have fi xed or predictable payments and that are not quoted on an active market, are recorded as receivables. In the Group there are mainly rent receivables and other receivables. After individual valuation, receivables have been recorded as the amount at which they are expected to be received. This 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 assessment concludes that the Group might not receive the entire receivable. Receivables in the parent company consist only of receivables from the subsidiaries, and these are recorded at acquisition value.

Liabilities

Liabilities refer to credits and operating liabilities such as accounts payable. The majority of Castellum's credit agreements are long-term. In cases where short-term credits are drawn under long-term credit agreements, the credits are considered longterm. The credits are recorded on the settlement date at accrued acquisition value. Deferred unpaid interest is recorded in accrued expenses. A liability is recorded when the counterparty has performed services and a legal obligation to pay exists, even if the invoice has not yet been received. Accounts payable are recorded when the invoice is received. Accounts payable and other operative liabilities with short duration are recorded at nominal value.

Foreign currency

Transactions in foreign currencies are translated to Swedish kronor (SEK) to the spot exchange rate of the transaction. Monetary assets and liabilities are translated at the balance day rate.

Derivatives

Interest-rate derivatives are fi nancial assets or liabilities which are valued at fair value, with value-changes recorded in the income statement. In order to manage exposure to fl uctuations in the market interest rate according to fi nancial policy, Castellum has entered into interest-rate-derivative agreements. When using interest-rate derivatives, changes in value may occur, mainly due to changes in market interest rates. Interest-rate derivatives are initially recorded in the balance sheet on the trade day at acquisition value, where the absolute majority refer to exchanges in interest-rate fl ows, entailing an acquisition value of zero. They are thereafter valued at fair value with value-changes appearing in the income statement.

To calculate the fair-value market-interest-rates for each fi xed interest term as listed on the balance sheet date, generally accepted methods for calculations are used. This means that fair value has been determined according to level 2, IFRS 7 point 27a. Interest-rate swaps 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 counterparties.

Changes in value can be realized as well as unrealized. Realized changes in value refer to redeemed interest-rate derivatives and comprise 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 scal year. Changes in value are calculated based on the valuation at the end of the fi scal year compared to the valuation in the 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 the previous year. Payments made under these agreements are accounted for in the period to which they refer.

In accordance with the fi nancial policy, between 60-100% of foreign investments must be fi nanced in the functional currency of the company. This can be accomplished either by borrowing in the functional currency of the foreign company or by using currency derivatives. In cases where currency derivatives are used they are initially reported in the balance sheet at cost on trade date. Subsequently, they are reported at fair value where the effective portion of the foreign exchange rate change regarding the hedging instrument is recognized in other total income, while the ineffective portion is recognized as change in value in the income statement. The balance date rate is used to determine real value.

Repurchased shares

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

Dividends

Dividends are accounted for as a deduction of shareholders' equity, after decision by the AGM (Annual General Meeting). The recipient accounts for an anticipated dividend as a fi nancial income.

Earnings after tax, per share

Calculation of after-tax earnings per share is based on the Group's net income for the year pertaining 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. 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.

The cash fl ow statement has been prepared according to the indirect method. Net profi t or loss is adjusted for effects of non-cash transactions during the period as well as income or costs associated with the cash fl ow from investment or fi nancing activities. Cash and cash equivalents refers to cash and bank. Cash fl ow statement

Shareholders´ equity

Defi nitions of segments

Differences in accounting principles between the Group and the parent company

New accounting rules and regulations

The Annual Report of the parent company has been prepared according to the Annual Accounts Act and by application of the Swedish Financial Reporting Board's recommendation RFR 2 (Accounting for legal entities). RFR 2 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 relationship between accounting and taxation. Differences in accounting principles between the Group and the parent company are mentioned below.

Presentation

The income statement and balance sheet for the parent company are presented according to the Annual Accounts Act schedules.

Shares in subsidiaries

Shareholdings in subsidiaries are accounted for in the parent company according to the acquisition value method. 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 is reversed.

Contingent liabilities

Contingent liabilities for the benefi t of subsidiaries are fi nancial guarantees and are accounted for in accordance with RFR 2, i.e. they are not accounted for as provisions, instead Castellum provides information in the notes.

New and revised existing standards and interpretations, approved by the EU

Changes to existing standards

A few number of minor changes and clarifi cations have been made to existing standards that became effective in 2012. Among other things, the IASB has increased the disclosure requirements in IFRS 7 Financial Instruments: Disclosures for items that are derecognized from the balance sheet. An amendment to IAS 12 Income taxes, state that investment properties measured at fair value will be recovered entirely by sale, unless the entity has clear evidence that it will consume the asset's economic benefi ts throughout its economic life. For Castellum this will have no effect since the tax rates in Sweden and Denmark are the same for sale and for operating businesses.

The presentation of other comprehensive income shall after an amendment of IAS 1, effective from 2013, be divided into two categories; items that cannot be reclassifi ed into profi t or loss and items that can be reclassifi ed into profi t or loss. All items in Castellum's other comprehensive income will be categorized into the latter group.

Accounting for pension liabilities as governed by IAS 19 will change from 2013. This will not have any impact on Castellum's accounts since the defi ned benefi t ITP plans within the group, which concerns small amounts, are recorded as defi ned contribution plans due to insuffi cient information from Alecta.

New standards

IFRS 13 Fair Value Measurement is a new framework for items measured at fair value. The standard was adopted by the EU in late 2012 and shall be applied for annual periods beginning January 1, 2013. Castellum values investment properties and derivatives at fair value and the recommendation will lead to slightly increased disclosure requirements. The new recommendation will, however, not affect Castellum's valuations.

The EU has also adopted a number of new standards to be applied for fi scal years beginning no later than January 1, 2014 where an earlier application is permitted under certain conditions: IFRS 10 Consolidated Financial Statements replaces those parts of IAS 27 relating to consolidated fi nancial statements, IFRS 11 Joint Arrangements replaces IAS 31 Interests in Joint Ventures and IFRS 12 Disclosure of Interests in Other Entities set new disclosure requirements, whether the companies are consolidated or not. As a result of the implementation of these recommendations, adjustments have been made to IAS 27 Consolidated and Separate Financial Statements and IAS 28 Investments in Associates. The introduction of the above standards does not change Castellum's fi nancial reporting, but expanded disclosure requirement somewhat.

Changes in Swedish regulations

RFR 2 Group contributions

The Swedish Financial Reporting Council (RFR) has clarifi ed how group contributions should be recognized in the parent company. The amendment shall be applied latest January 1, 2013 but Castellum has decided to apply the recommendation in its annual report for 2012. The clarifi cation means that there is now a main rule and an alternative rule. Castellum reports under the main rule, which means that received group contributions are recognized as dividend, i.e. as a fi nancial income, while submitted group contributions are recognized as an investment in shares in subsidiaries, net of tax.

Segment Reporting Note 2

The Group's operational segments are the following geographical areas; Greater Gothenburg (incl. Borås, Halmstad, and Alingsås), Öresund Region (Malmö, Lund, Helsingborg and Copenhagen), Greater Stockholm, Mälardalen (Örebro, Västerås and Uppsala) and Eastern Götaland (Jönköping, Linköping, Värnamo and Växjö). The operational segments are identifi ed by geographical fi eld of activity, which is according to how they are followed-up and analyzed by the primarily executive decision maker in the Group. Greater Gothenburg is made up of two operational segments with similar economical characteristics and operations.

The Group only manages commercial properties.

		Greater	Öresund		Greater				Eastern			Unallocated		The Castellum
	Gothenburg		Region		Stockholm		Mälardalen		Götaland			items	Group
	2012	2011	2012	2011	2012	2011	2012	2011	2012	2011	2012	2011	2012	2011
Rental income, external	976	953	621	567	569	547	526	487	381	365	–	–	3,073	2,919
Property costs	– 286	– 275	– 227	– 201	– 200	– 205	– 191	– 185	– 138	–137	–	–	– 1,042	– 1,003
Net operating income	690	678	394	366	369	342	335	302	243	228	–	–	2,031	1,916
Central administration	– 13	– 13	– 7	– 7	– 7	– 7	– 7	– 7	– 6	–6	– 53	– 43	– 93	– 83
Interest income	14	18	30	38	7	5	3	3	3	4	– 50	– 66	7	2
Interest costs	– 231	– 228	– 162	– 160	– 134	– 131	– 139	– 131	– 89	–89	65	77	– 690	– 662
Income from prop. mgmt.	460	455	255	237	235	209	192	167	151	137	– 38	– 32	1,255	1,173
Change in value
Properties	40	141	– 127	17	– 4	36	20	– 13	2	13	–	–	– 69	194
Derivatives	–	–	–	–	–	–	–	–	–	–	– 110	– 429	– 110	– 429
Income before tax	500	596	128	254	231	245	212	154	153	150	– 148	– 461	– 1,076	938
Tax income	122	–	128	–	75	–	50	–	34	–	– 5	–	404	–
Tax costs	– 1	– 155	– 5	– 64	–	– 57	– 1	– 31	–	–40	–	120	– 7	– 227
Net income for the year	621	441	251	190	306	188	261	123	187	110	– 153	– 341	1,473	711
Investment properties	11,569	11,023	7,758	7,303	7,158	6,557	5,763	5,168	4,080	3,816	–	–	36,328	33,867
of which investments this year	584	728	597	541	605	226	692	352	320	168	–	–	2,798	2,015
Current assets	623	516	590	1,007	160	282	148	181	168	190	– 1,386	– 1,872	303	304
Total assets	12,192	11,539	8,348	8,310	7,318	6,839	5,911	5,349	4,248	4,006	–1,386	– 1,872	36,631	34,171
Shareholders' equity	4,535	4,155	2,997	2,902	2,824	2,605	1,464	1,353	1,361	1,281	–1,116	– 1,093	12,065	11,203
Deferred tax liability	1,214	1,365	800	944	673	753	464	510	381	413	– 222	– 271	3,310	3,714
Interest rate derivates	–	–	–	–	–	–	–	–	–	–	1,105	1,003	1,105	1,003
Interest-bearing liabilities	6,178	5,656	4,350	4,147	3,664	3,284	3,801	3,313	2,394	2,208	–1,293	– 1,448	19,094	17,160
Non-interest-bearing liabilities	265	363	201	317	157	197	182	173	112	104	140	-63	1,057	1,091
Total shareholders' equity & liabilities 12,192		11,539	8,348	8,310	7,318	6,839	5,911	5,349	4,248	4,006	– 1,386	– 1,872	36,631	34,171

Of the Groups external rental income SEKm 34 (9) refers to customers located in Denmark. Of the Groups investment properties SEKm 435 (254) refers to investment properties located i Denmark.

Rental Income Note 3

Group rental income was SEKm 3,073 (2,919). 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, property 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 2.2% (1.6%) in comparable portfolio compared with previous year.

Rental value	Offi ce/Retail		Warehouse/Industrial		Total
SEK/sq.m.	2012	2011	2012	2011	2012	2011
Greater Gothenburg	1,287	1,277	745	731	957	944
Öresund Region	1,426	1,366	724	703	1,107	1,065
Greater Stockholm	1,398	1,343	957	926	1,203	1,181
Mälardalen	1,117	1,088	703	715	967	982
Eastern Götaland	1,031	999	524	504	844	818
Total	1,257	1,217	744	724	1,015	995

Rental value

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 levels can only be changed when the lease in question is due for renegotiation. The rental levels of Castellum are considered to be in line with the market.

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 2013 is that a majority of the leases maturing were already renegotiated in 2012 due to the period of notice. The most common terms for a new lease is 3-5 years with a nine months notice. The average remaining lease duration in the portfolio is 3.2 years (3.1).

Lease maturity structure	No. of leases	Lease value, SEKm	Percentage of value
Commercial, term
2013	1,179	257	8%
2014	1,420	726	25%
2015	1,164	736	25%
2016	668	539	18%
2017	157	235	8%
2018 +	200	496	16%
Total commercial	4,788	2,989	100%
Residential	289	23
Parking spaces and other	2,560	28
Total	7,637	3,040

Economic occupancy rate

Castellum's average economic occupancy rate during 2012 was 88.6% (89.3%). The economic occupancy rate for warehouse and industrial properties amounted to 90.2% (91.7%) and for offi ce and retail properties 87.8% (88.2%). The total annual rental value for vacant premises during the year amounts to approx. SEKm 447 (371).

Gross leasing (i.e. the annual value of total leasing) during the year was SEKm 327 (310), of which SEKm 79 (45) were leasing of new constructions, extensions and reconstructions. Notices of termination amounted to SEKm 278 (249), of which bankruptcies were SEKm 28 (18) and SEKm 40 (24) were notices of termination with more than 18 months remaining length of contract. Hence net leasing for the year was SEKm 49 (61).

The time difference between reported net leasing and the effect in income is estimated to 9-18 months.

Economic	Offi ce/Retail		Warehouse/Industrial		Total
occupancy rate	2012	2011	2012	2011	2012	2011
Greater Gothenburg	94.0%	94.3%	92.7%	96.7%	93.4%	95.4%
Öresund Region	83.7%	86.2%	86.5%	82.8%	84.5%	85.2%
Greater Stockholm	79.8%	78.1%	88.5%	91.4%	82.8%	82.2%
Mälardalen	92.0%	92.3%	94.8%	93.7%	92.7%	92.6%
Eastern Götaland	90.0%	89.8%	83.2%	83.6%	88.4%	88.4%
Total	87.8%	88.2%	90.2%	91.7%	88.6%	89.3%

Risk exposure, credit risk

Castellum's lease portfolio has a good risk exposure. The Group has approx. 4,800 commercial leases and 300 residential leases and their distribution in terms of size are presented in the table below. The single largest lease as well as the single largest customer accounts for approx. 1% of the Group's total rental income, meaning that Castellum´s exposure to a single customers credit risk is very low. The distribution of commercial leases across various business sectors is presented in the table below.

			Lease value,
Lease size, SEKm	No. of leases	Percentage	SEKm	Percentage
Commercial
< 0.25	2,594	34%	237	8%
0.25-0.5	821	11%	297	10%
0.5-1.0	637	8%	450	15%
1.0-3.0	560	7%	932	30%
> 3.0	176	2%	1,073	35%
Total commercial	4,788	62%	2,989	98%
Residential	289	4%	23	1%
Parking spaces and other	2,560	34%	28	1%
Total	7,637	100%	3,040	100%

Commercial leases distributed by sector	No. of	Lease value,
(GICS-code)	leases	SEKm	Percentage
Energy (10)	85	37	1%
Materials (15)	105	110	4%
Capital goods (2010)	621	448	15%
Commercial Services & Supplies (2020)	1,427	466	16%
Transportation (2030)	137	116	4%
Retailing (2550)	503	387	13%
Other Consumer Durables and Services (2510-2540)	572	441	15%
Consumer Staples (30)	122	106	3%
Health Care (35)	224	176	6%
Finance and Real Estate (40)	143	92	3%
Software and Services (4510)	252	151	5%
Technology Hardware and Equipment (4520)	158	109	3%
Telecommunication Services (50)	121	20	1%
Utilities (55)	31	8	0%
Public sector etc.	287	322	11%
Total	4,788	2,989	100%

The table below shows the spread of future rental income for existing lease agreements.

	Group		Parent Company
Future rental income for existing leases	2012	2011	2012	2011
Contracted rental income year 1
Commercial leases	3,038	2,878	–	–
Residential	8	9	–	–
Contracted rental income between 2 and 5 years	5,926	5,523	–	–
Contracted rental income after more than 5 years	1,211	861	–	–
Total	10,183	9,271	–	–

Rents are invoiced and paid in advance, which means that all the Group's rental receivables of SEKm 20 (20) are overdue. Rent receivables

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

Operating expenses

Maintenance

Ground rent

Property Costs Note 4

Property costs in 2012 was SEKm 1,042 (1,003), equivalent to SEK 298/sq.m. (300). This amount includes both direct property costs such as costs of operation, maintenance, ground rent and property 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 2012 were SEKm 544 (553), equivalent to SEK 156/sq.m. (165). 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. Energy consumption for heating during the period has been calculated to 97% (87%) of a normal year according to the degree day statistics. Operating expenses includes rent losses of SEKm 10 (8) corresponding to 0.3% of rental income.

Maintenance costs are ongoing measures to maintain the property's standard and technical systems. The maintenance costs were SEKm 130 (115), equivalent to SEK 37/sq.m. (35).

Ground rent including lease fees for the year 2012 was SEKm 24 (24) of which approx. half of the amount relates to Greater Stockholm. Ground rent is the fee paid annually to the municipality by the owner of a building on land owned by the municipality. The ground rent for these are 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 leaseholds 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 2012 Castellum had 94 properties with site leasehold. Existing site leaseholds mature relatively even over the next 60 years. When notice is given for the site leaseholds shall, in most cases, the site owner (the municipality) compensate Castellum for buildings etc. However there are a few contracts where the municipality can demand that the land is restored.

	Group	Parent Company
Future contracted ground rents	2012	2011	2012	2011
Contracted ground rents year 1	24	22	–	–
Contracted ground rents between 2 and 5 years	92	85	–	–
Contracted ground rents after more than 5 years	657	597	–	–
Total	773	704	–	–

Property tax The Group's property tax was SEKm 152 (148), equivalent to SEK 44 sq.m. (44). Property tax is a state tax based on the

Leasing and property management rate for 2012 was 1.0% of the tax assessment value for offi ce/retail properties and 0.5% for warehouse/industrial. The Group's leasing and property management costs for 2012 were SEKm 192 (163), equivalent to SEK 54/sq.m. (49). 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

property's tax assessment value. Most of the costs are charged the tenants, why the impact on earnings is marginal. The tax

administration costs and depreciation on equipment in subsidiaries. Of the costs SEKm 101 (92) refers to employee benefi ts

Summary 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.	2012	2011	2012	2011	2012	2011
Operating expenses	190	201	118	121	156	165
Maintenance	48	44	25	23	37	35
Ground rent	7	7	7	7	7	7
Property tax	66	67	18	17	44	44
Direct property costs	311	319	168	168	244	251
Leasing and property management (indirect)					54	49
Total	311	319	168	168	298	300

Remuneration to

Note 5 Central Administrative Expenses

and SEKm 9 (6) depreciation on equipment.

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 52 (48) refers to employee benefi ts and SEKm 1 (0) 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 11 (14).

Remuneration to		Group			Parent Company
auditors	Remuneration to auditors	2012	2011	2012	2011
	Audit assignment	3	3	1	1
	Audit business in addition to the audit assignment	0	0	0	0
	Tax consulting	1	2	0	0
	Other consulting	0	0	0	0
	Total	4	5	1	1

Of the Group's total remuneration of SEKk 4,320 (4,583), SEKk 4,127 (4,184) refers to KPMG and SEKk 193 (399) to Ernst & Young.

		Parent Company
Interest and Financial Income	2012	2011	2012	2011
Interest income	7	2	4	0
Received group contributions, subsidiary	–	–	170	160
Anticipated dividend, subsidiaries	–	–	475	612
Interest income, subsidiaries	–	–	738	722
Other fi nancial income	0	0	0	0
Total	7	2	1,387	1,494
			Group

Interest income, for the Group as well as for the Parent Company, is related to receivables valued at accrued acquisition value.

		Group	Parent Company
Note 7	Interest and Financial Costs	2012	2011	2012	2011
	Interest costs	689	661	670	645
	Interest costs, subsidiaries	–	–	57	67
	Other fi nancial costs	1	1	0	0
	Total	690	662	727	712

Net fi nancial items were SEKm –683 (–660). During the year, interest costs of SEKm 19 (12) were capitalized in connection with investments in the real estate portfolio where the average interest rate level of 3.9% (4.1%) has been used.

Of the Group's interest costs, SEKm 523 are related to liabilities valued to accrued acquisition value. Corresponding value for the parent company is SEKm 561. Remaining interest costs refers to interest attributable to Castellums interest derivatives.

Changes In Value	Note 8
The transaction volume on the Swedish real estate market totalled 2012 approx SEK 111 billion (105), which are the highest annual turnover since 2008. The fourth quarter accounted for approx. SEK 48 (30) billion. Commercial properties accounted for 79% and major urban regions for 61%. Both the buy and sell side were dominated by domestic institutions and real estate companies, where the institutions were the largest net buyers. A slight increase in the foreign buyers interest in the Swedish real estate market can be noted. Castellum assess that strong demand and limited supply in central parts of the major urban regions resulted in stable to rising prices. In Castellum's other growth regions, the demand is overall good, but prices in some areas have been stable to slightly decreasing due to limited access to bank fi nancing. The change in value in Castellum's portfolio during the year amounted to SEKm –69 (194) and includes SEKm 245 which refers to acquisitions and project gains, SEKm –334 individual adjustments on property level which mainly refers to cash fl ow but also yield and SEKm 20 from the sale of 15 properties. Net sales price amounted to SEKm 253 after reduction for assessed deferred tax and transaction costs of SEKm 13. Hence the underlying property price, which amounted to SEKm 266, exceeded the latest valuation of SEKm 233 with SEKm 33.	Investments properties
Castellum utilizes interest rate derivatives to achieve the desired interest rate maturity structure. If the agreed interest rate deviates from the market interest rate, irregardless credit margins, there is a theoretical surplus or sub value in the interest rate derivatives where the non-cash-fl ow affecting changes in value are reported in the income statement. The value in the interest derivatives portfolio has changed, mainly due to changes in long-term market interest rates, by SEKm –110 (– 429). The value of Castellum's currency derivatives, with the purpose to hedge currency fl uctuations in the Danish investment, has during the period changed SEKm 8 (0) where the value changes is accounted for in the other total net income.	Derivates
Tax Costs	Note 9
The income tax in Sweden for limited liability companies is currently 26.3% but will be reduced to 22% with effect from

January 1, 2013. In the income statement, the income tax is recorded as two entries, current tax and deferred tax. 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:

• use tax depreciation on buildings,

• use direct tax deductions for certain reconstructions of the properties, which are capitalized in the accounts,

• utilize existing tax loss carry forwards.

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, taxable income for 2012 is negligible, since Castellum uses the above mentioned depreciation for tax purposes and tax deductions for certain reconstructions. The current paid tax that occur is because a few subsidiaries are not allowed to make fi scal group contributions.

Remaining tax loss carry forward are calculated to SEKm 1,610.

	Basis	Basis
Tax calculation for the Group 31-12-2012	current tax	deferred tax
Income from property management	1,255
Deductions for tax purposes
depreciation	– 679	679
reconstructions	– 289	289
Other tax allowances	– 48	27
Taxable income from property management	239	995
Properties sold	58	– 145
Changes in value on properties	–	– 89
Changes in value on interest rate derivatives	– 110	–
Taxable income before tax loss carry forwards	187	761
Tax loss carry forwards, opening balance	– 1,772	1,772
Tax loss carry forwards, closing balance	1,610	– 1,610
Taxable income	25	923
Of which 26.3% current/deferred tax	– 7	– 243
Restatement of deferred tax to 22%	–	647
According to statement of comprehensive income	–7	404

Total tax may differ from nominal tax due to non-taxable/tax-deductible income/costs or as an effect of other tax adjustments. The total tax cost in Castellum's income statement 2012 is less than nominal tax, which depends on non-taxable sales of properties through companies and a revaluation of deferred tax liability due to reduced income tax from 26.3% to 22%. The effective tax on income from property management, without considering the use of tax loss carry forwards and based on a tax rate of 26,3%, can be calculated to 5%.

	Group			Parent Company
Tax cost	2012	2011	2012	2011
Income before tax	1,076	938	497	311
Tax according to the current tax rate, 26.3%	– 283	– 247	– 131	– 82
Tax effects due to:
non-taxable dividend	–	–	125	161
non-taxable sale of property (indirect)	28	15	–	–
restatement of deferred tax	647	–	– 43	–
other tax adjustments	5	5	–	– 1
Tax according to income statement	397	– 227	– 49	78

		Group			Parent Company
Note 10	Personnel and Board of Directors	2012	2011	2012	2011
Number of	Average number of employees	265	239	19	14
employees	of which women	105	90	10	7

Of the Group's employees was 1 (0) man and 0 (0) women employed in Denmark. The remaining staff were employed in Sweden.

During 2012, the parent company had 7 (6) board members, of which 3 (2) are women, while the total number of board members in the Group's subsidiaries were 21 (20), of which 6 (5) 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 39 (39), of which 10 (10) are women.

	Group		Parent Company
	2012	2011	2012	2011
Salaries, remuneration and benefi ts
Chairman of the Board	0.4	0.5	0.4	0.5
Other Board members (SEK 184,000 each)	1.1	1.2	1.1	1.2
Chief Executive Offi cer
Fixed salary	3.3	3.1	3.3	3.1
Variable remuneration	1.7	2.1	1.7	2.1
Benefi ts	0.1	0.1	0.1	0.1
Other senior executives (Group:9, Parent Company:3)
Fixed salary	12.9	12.3	4.8	4.6
Variable remuneration	6.4	8.7	2.4	3.0
Benefi ts	0.7	0.7	0.2	0.2
Other employees	108.9	104.0	6.7	10.3
Total	135.5	132.7	20.7	25.1
Contractural pension costs
Chief Executive Offi cer	1.0	0.7	1.0	0.7
Other senior executives (Group:9, Parent Company:3)	4.2	3.6	1.5	1.1
Other employees	13.2	10.6	1.1	0.7
Total	18.4	14.9	3.6	2.5
Statutory social costs incl. special employer's contributions
Chairman of the Board	0.1	0.2	0.1	0.2
Other Board members	0.3	0.4	0.3	0.4
Chief Executive Offi cer	1.8	1.8	1.8	1.8
Other senior executives (Group:9, Parent Company:3)	7.5	7.4	2.7	2.7
Other employees	36.2	34.6	2.4	3.4
Total	45.9	44.4	7.3	8.5
Total	199.8	192.0	31.6	36.1

Board remuneration

Salaries, remuneration and benefi ts

Board remuneration was decided by the Annual General Meeting 2012 to be SEKk 1,980 thousand, of which SEKk 510 to the Chairman of the Board and SEKk 245 to each other Board member. The amounts include compensation for committee work, ranging from the AGM 22-03-2012 to the AGM 21-03-2013. At the 2012 AGM the Board was expanded by one member.

Executive management 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 are prepared by the remuneration committee and decided by the Board of Directors. The remuneration comprises a fi xed salary and a variable remuneration according to an incentive plan described below. During the three-year period of the plan, the variable remuneration can 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 based on the result of income from property management compared to the previous year, and an overall determination of the development of certain soft factors such as customer and personnel satisfaction. For the full outcome requires that the growth in income from property management per share is 10% per year. When growth is in the range 0-10%, a linear calculation of the incitament is made. The profi t-based part is paid out yearly as salary after the year-end closing and can total no more than six months' salary per year, equal to a cost of SEKm 10 for Castellum, including social costs. The plan runs out at the end of 2013.
• 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 index for real estate shares in Sweden, the Eurozone and Great Britain. In order to receive full outcome of the incentive program, the total return must be at least 50% during the period and the total return has to exceed the index development by at least 5%-units during the period. When growth is in the ranges 0-50% and 0-5%-units respectively, a linear calculation of the incentive is made. Any payments due is paid as salary after the measurement period of June 2011 – May 2014. During the three-year period, the share-price-based part can total no more than one-and-a-half-years' salary, equal to a cost for Castellum of SEKm 30, including social costs.

Executives in receipt of variable remuneration according to the incentive plan must acquire Castellum shares for at least half of the amount of the payment due after tax. The paid incentive 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 and other members of executive management is 65 years.

Notice of dismissal

The period of notice shall, when given from the company, not exceed 24 months regarding the Managing Director, with an obligation to continue his or her work during the fi rst six months. Period of notice is 12 months for any other member of the executive management of the company, with an obligation to continue his or her work during the fi rst six months. When given by the Managing Director or any other member of the executive management of the company, the period of notice is to be six months. During the period of notice, salary and other benefi ts are paid, with deduction of salary and remuneration deriving from another employment or activity.

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 who instead have defi ned ITP-plans 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 2012 123% (December 2011: 113%). 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 for the year was 2% (2%), of which 0,5%-unit (0) was for long-term sick leave. Absences due to illness for men and women were 1% (1%) and 4% (3%) respectively. Absences due to illness were 2% (1%) for the age group 29 years and younger, 3% (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 1% (1%), of which 0%-unit (0) was for long-term sick leave.

		Group
Investment Properties	2012	2011	Note 11
Schedule of the changes during the year
Opening balance	33,867	31,768
New construction, extension and reconstruction	1,279	1,158
of which capitalized interest costs	19	12
Acquisitions	1,519	857
Sales	– 233	– 77
Unrealized changes in value	– 89	164
Currency transalation	– 15	– 3
Closing balance	36,328	33,867
Schedule of tax assessment value
Buildings	14,976	14,441
Land	4,212	4,000
Total tax assessment value	19,188	18,441
Rental income from investment properties	3,073	2,919
Property costs for investment properties	1,042	1,003

The Parent company does not own any investment properties.

Pensions for other employees

Absence due to illness

Investments during the year During 2012, Castellum made investments totalling SEKm 2,798 (2,015), of which SEKm 1,279 (1,158) new construction, extensions and reconstructions and SEKm 1,519 (857) were acquisitions. Of total investments SEKm 692 related to Mälardalen, SEKm 605 to Greater Stockholm, SEKm 597 to the Öresund Region, SEKm 584 to Greater Gothenburg, and SEKm 320 to Eastern Götaland.

Signifi cant obligations 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 1,100 in addition to what is accounted for in the balance sheet.

Larger ongoing investments	Investment, SEKm	of which remaining, SEKm	To be completed
Lindholmen 28:3, Gothenburg	262	100	Q2 2013
Dragarbrunn 20:4, Uppsala	190	158	Q3 2014
Atollen, Jönköping	170	73	Q4 2013
Fullriggaren 4, Malmö	151	34	Q1 2013
Sändaren 1, Malmö	111	102	Q4 2013

Valuation model 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 ow-based 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 and building rights are 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.

Internal valuation Castellum records the investment properties at fair value and has made an internal valuation of all properties as of December 31, 2012. The valuation was carried out in a uniform manner, and was based on a ten-year cash fl ow model, which was summarized above. The internal valuation was based on an individual assessment for each property of both its future earnings capacity and its required market yield.

Assumptions of cash fl ow

In assessing a property's future earnings capacity we took into account an assumed level of infl ation of 1.5% and 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. In the valuation, the economic occupancy rate gradually improves during the 10-years period and reaches 96%. Included in property costs are operating expenses, maintenance, ground rent, property tax, and leasing and property administration.

Assumptions per property category 31-12-2012, year 1	Offi ce/Retail	Warehouse/Industrial
Rental value SEK/sq.m,	1,269	752
Vacancy	11%	9%
Direct property cost SEK/sq.m.	326	175
Property management SEK/sq.m	35	25

Assumptions of required yield

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 and where appropriate adjustment for leasehold land.

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 in order to not assume perpetual real growth.

The calculated required yield is then calibrated compared to the markets required yield. To get an opinion about the markets required yield Castellum follows completed transactions. In an inactive market within a certain area or for a certain type of property, Castellum compares the data from transactions completed in a similar area or for a similar type of property. In the absence of completed transactions the opinion is based on existing macroeconomic factors.

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

Assumptions per property category 31-12-2012	Offi ce/Retail	Warehouse/Industrial
Real interest rate	3.0%	3.0%
Infl ation	1.5%	1.5%
Risk	4.8% - 11.4%	6.3% - 12.6%
Return on equity	9.3% - 15.9%	10.8% - 17.1%
Interest rate	5.5%	5.5%
Loan to value ratio	65%	55%
Return on total capital	6.8% - 9.1%	7.9% - 10.7%
Weighted d:o, discounted factor year 1-9	8.0%	9.1%
Weighted d:o, discounted factor residual value*	6.5%	7.6%
*(required yield on total capital minus growth equal to infl ation)

The change in value in Castellum's portfolio during the year amounted to SEKm –69 (194), corresponding to –0.2%. No general yield change has been made in the internal valuations since the prices have been generally stable. The change in value includes SEKm 245 which refers to acquisitions and project gains, SEKm –334 individual adjustments on property level which mainly refers to cash fl ow but also yield and SEKm 20 from the sale of 15 properties. Net sales price amounted to SEKm 253 after reduction for assessed deferred tax and transaction costs of SEKm 13. Hence the underlying property price, which amounted to SEKm 266, exceeded the latest valuation of SEKm 233 with SEKm 33.

The average valuation yield for Castellum's real estate portfolio, excluding development projects and undeveloped land, can be calculated to 7.3% (7.2%). Contracted rental levels are considered to be in line with the market levels.

Average valuation yield, SEKm	2012	2011
Net operating income, properties according to income statement	2,031	1,916
Reversed leasing and property administration	192	163
Net operating income, ongoing development projects	– 21	0
Properties acquired/completed as if they had been owned the whole year	100	64
Properties sold	– 9	– 1
Net operating income excl. leasing and property admin. for properties as if
they had been owned during the whole year, excl. projects and land	2,293	2,142
Adjusted for:
Index adjustments 2013, 1.0% (2.0%)	34	64
Real occupancy rate, 94% at the lowest	268	229
Property administration, 30 SEK/sq.m.	– 105	– 102
Normalized net operating income	2,490	2,333
Valuation excl. building rights of SEKm 443 (460)	34,245	32,594
Average valuation yield	7.3%	7.2%

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 990 per sq.m. (980).

The value of the real estate portfolio

The internal valuation indicates a fair value of SEKm 36,328 (33,867), which is a change in value of –0.2% (+0.6%). Of the value approx. SEKm 3,542 are properties hold through site leasehold rights, with a rental income of SEKm 370. The table below shows the fair value distributed by property category and region.

		Warehouse/	Projects
Property value, SEKm 31-12-2012	Offi ce/Retail	Industrial	and land	Total
Greater Gothenburg	6,170	5,137	262	11,569
Öresund Region	5,580	1,899	279	7,758
Greater Stockholm	4,306	2,400	452	7,158
Mälardalen	4,156	1,220	387	5,763
Eastern Götaland	3,055	765	260	4,080
Total	23,267	11,421	1,640	36,328

A property's market value can only be confi rmed when it is sold. Property valuations are calculations performed according to accepted principles 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 +/– 1,816 SEKm which corressponds to SEKm 34,512–38,144.

Uncertainty range and sensitivity analysis

Sensitivity analysis +/–1%-unit	Effect on value, SEKm
Rental value SEK/sq.m.	+/– 493
Economic occupancy rate	+/– 513
Property costs SEK/sq.m.	–/+ 136
Required yield = discount rate	–/+ 4,094

The sensitivity analysis shown above illustrates how a +/- 1%-unit change in growth assumptions in future cash fl ow and required yield affects the valuation. The sensitivity analysis is however not realistic thus one isolated parameter rarely changes, since the assumptions made are linked together regarding cash fl ow and required yield.

External valuation In order to provide further assurance and validation of the valuation, 144 properties - representing 52% of the value of the portfolio - have been valued externally by NAI Svefa. The properties were selected on the basis of the largest properties in terms of value, but they also 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 18,527, within an uncertainty range of +/- 5-10% on property level, depending on each property's category and location. Castellum's valuation of the same properties totalled SEKm 18,904, i. e., a net deviation of SEKm –377, corresponding to –2%. Gross deviation was SEKm +324 and SEKm –701 respectively, with an average deviation of 5%.

In addition, Forum Fastighetsekonomi AB made a desktop valuation of 30 properties corresponding in value to 19% of the portfolio. Forum's valuation of the selected properties amounted to SEKm 7,153. Castellum's valuation of the same properties amounted to SEKm 7,036, i.e. a net deviation of SEKm 117 corresponding to 2%. NAI Svefa's valuation of the same properties amounted to SEKm 6,853, i.e. a net deviation of SEKm –183 corresponding to –3% compared to Castellum's valuation.

It can be noted that Castellum's deviation from the two external valuers accommodated well within the uncertainty range of +/– 5-10%.

		Group		Parent Company
Note 12	Equipment	2012	2011	2012	2011
	Opening acquisition value	61	60	4	3
	Acquisitions	18	9	3	1
	Sales/retirement of assets	– 6	– 8	0	0
Closing acquisition value	73	61	7	4
	Opening depreciation	– 46	– 48	– 3	– 3
	Sales/retirement of assets	6	8	0	0
	Depreciation for the year	– 9	– 6	– 1	0
	Closing depreciation	– 49	– 46	– 4	– 3
	Book value	24	15	3	1

Note 13 Shareholders' Equity and Net Asset Value

Items in shareholders´ equity

Share capital

The share capital as of December 31, 2012 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	31-12-2012	172,006,708	0.50	86,003,354

Other capital contribution

Other capital contribution is shareholders´ equity contributed by shareholders.

Currency translation reserve

Currency translation differencies as a result of foreign operations.

Currency hedge reserve

Refers to the effective part of unrealized changes in value related to currency derivates used to hedge investments in foreign operations.

Retained earnings

Retained earnings relates to earnings earned in the Group. The Group's earlier depositions to the restricted reserves is included in this item.

Restricted and non-restricted equity in the parent company

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.

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 2012 is SEK 3.95 per share, SEKm 648 in total. The amount is recorded as a liability after the annual general meeting has approved the dividend.

Net asset value can be calculated both long and short term. Long term net asset value is based on the balance sheet with adjustments for items that will not lead to any short term payment, such as in Castellum's case, interest rate derivatives and deferred tax liability. This means that shareholders' equity according to the balance sheet shall increase with SEKm 1,105 and SEKm 3,310 respectively.

Actual net asset value is equity according to the balance sheet adjusted for deferred tax liability. Present accounting principles states that the deferred tax liability shall be recognized at nominal 22%, while the real deferred tax is substantially lower, due to the possibility so sell properties in a taxeffi cient way and the time factor. The present assessment is that the discounted real deferred tax liability is equivalent to approx. 4.3%, meaning that an additional SEKm 2,624 should be recorded in equity.

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 a +/– 5% uncertainty range is equal to SEKm +/– 1,738 after tax.

Net asset value	SEKm	SEK/share
Equity according to the balance sheet	12,065	74
Reversed
Derivatives according to the balance sheet	1,105	6
Deferred tax according to the balance sheet	3,310	20
Long term net asset value (EPRA NAV)	16,480	100
Deduction
Derivatives as above	– 1,105	– 6
Estimated real liability, deferred tax 4.3%*	– 686	– 4
Actual net asset value (EPRA NNNAV)	14,689	90
Uncertainty range valuation of properties +/– 5% after tax	+/– 1,738	+/– 11

* Estimated real deferred tax liability net has been calculated to 4.3% based on a discount rate of 3%. Further, assessments have been made that tax loss carry forwards are realized in 5 years with a nominal tax of 22%, giving a present value of deferred tax liability of 20.2%, and that the properties are realized in 50 years where 33% are sold directly with a nominal tax of 22% and that 67% are sold indirect through company disposals where the buyers tax discount is 6%, which gives a present value of deferred tax liability of 5.8%.

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

In the balance sheet there is, besides shareholders equity, liabilities which in principle are both interest free and amortization free and therefore can be considered as shareholders equity. The real estate industry therefore uses loan to value as a key ratio for capital structure instead of solidity. For the same reason the net asset value can be calculated in different ways, which is shown above.

Castellum´s objective is based on growth in cash fl ow and is not directly related to the 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, net investments of at least 5% of the property value will be made yearly. At the moment, this is equivalent to approx. SEKm 1,800. 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 justifi ed from a business standpoint and when an alternative investment with a higher return can be found.

Capital structure

Own shares repurchased

Dividend

Net asset value

FINANCIAL REPORTS

			Group		Parent Company
Note 14	Liabilities	2012	2011	2012	2011
	Non-interest-bearing liabilities due within
	one year of the balance sheet date	1,057	1,091	141	154
	Interest-bearing liabilities due within
	one year of the balance sheet date	–	–	–	608
	1-5 years of the balance sheet date	16,960	9,314	18,285	11,500
	5 years after the balance sheet date	2,134	7,846	–	5,700
	Total liabilities excl. deferred tax liability and derivatives	20,151	18,251	18,426	17,962

During 2013, current interest-bearing liabilities amounting to SEKm 1,838 (2,138) are due for payment, but since they are covered by unutilized long-term credit agreements, they are treated as long-term interest-bearing liabilities.

Note 15 Deferred Tax Liability/Asset

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 15,802 (14,425), which with a tax rate of 22% is equivalent to a tax payment of SEKm 3,477 (3,794). Castellum has deferred tax of SEKm 167 which relates to properties accounted for as asset acquisitions. According to present regulations the deferred tax at the time of the accquistion is not allowed to be accounted for in the balance sheet, which is shown in the table below.

The parent company reports a deferred tax asset of SEKm 222 (271) corresponding to 22% (26,3%) of the unutilized tax loss carry forwards of SEKm 1,009 (1,031).

Tax loss carry Castellum´s tax loss carry forwards as of December 31, 2012 are estimated to SEKm 1,610 (1,772). The change is presented in note 9.

Surplus- and sub value of properties for tax purposes

forward

When calculating the tax effect on a sale of all properties in the Group, the book value in the Group of SEKm 36,328 (33,867) must be compared to the residual value for tax purposes in the legal entity, which amounts to SEKm 18,916 (17,670). 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 17,412 (16,197). Previous write-downs where tax deductions have been made amount to approx. SEKm 200. These may be reversed in the case of a future increases in value.

	2012		2011
Deferred tax liability	Basis	Tax	Basis	Tax
Tax loss carry forwards
Opening balance	1,772	466	1,406	370
Change of the year in income statement	– 162	– 43	366	96
Restatement to new tax rate, 22%	–	– 69	–	–
Closing balance in the balance sheet	1,610	354	1,772	466
Difference between the properties book and tax basis value
Opening balance	– 16,197	– 4,260	– 14,829	– 3,901
Change of the year in income statement	–761	– 200	– 1,173	– 308
Company acquisitions	– 454	– 119	– 195	– 51
Restatement to new tax rate, 22%	–	748	–	–
Closing balance	– 17,412	– 3,831	–16,197	– 4,260
Less, attributable to asset acquisitions
Opening balance	304	80	109	29
Company acquisitions	454	119	195	51
Restatement to new tax rate, 22%	–	– 32	–	–
Closing balance	758	167	304	80
Closing balance in the balance sheet	16,654	– 3 664	– 15,893	– 4,180
Total
Opening balance	– 14,121	– 3,714	– 13,314	– 3,502
Change of the year in income statement	– 923	– 243	– 807	– 212
Restatement to new tax rate, 22%	–	647	–	–
Closing balance in the balance sheet	– 15,044	– 3,310	– 14,121	– 3,714

Derivatives Note 16

In the balance sheet derivates are accounted for as long-term liabilities since the amount will not be settled in cash. However, a theoretical matured amount during 2013 can be mathematically calculated to SEKm 171.

The table below shows the interest rate derivatives portfolio's nominal net amount and market value as of 31-12-2012 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.

End	Amount,	Acquistion	Market value,	Average	Market value	Market value
date	SEKm	value, SEKm	SEkm	interest rate	interest +1%-unit	interest -1%-unit
2013	900	–	– 13	3.5%	– 7	– 19
2014	300	–	– 12	3.1%	– 6	– 18
2015	750	–	– 46	3.7%	– 32	– 62
2016	2,450	–	– 217	3.8%	– 140	– 310
2017	1,200	–	– 99	3.3%	– 49	– 154
2018+	5,200	–	– 729	3.5%	– 333	– 1,176
Total	10,800	–	– 1,116	3.6%	– 567	– 1,739

Currency derivatives with a market value of SEKm 11 is not included in the table above, since a change in the market interest rate has an unsignifi cant effect on the market value.

Long-term Interest-bearing Liabilities Note 17

Castellum's funding and management of fi nancial risk are conducted in accordance with the fi nancial policy adopted by the Board of Directors.

The objectives in the fi nancial policy are:

• Maintaining a stable capital structure, with a loan to value ratio not exceeding 55% in the long run and an interest coverage ratio of at least 200%.
• Securing the required liquidity and long-term funding.
• Achieving low and stable net interest expense within the given risk authorization.

The fi nancial policy outlines the given authorization and limits for managing fi nancial risks defi ned in the policy, overall delegation of responsibilities and how fi nancial risk should be reported.

All fi nancial risk management is centralized in the parent company and the fi nance function works as the Groups treasury department. The fi nancial operations in Castellum shall be run in such manner that the costs for fi nancial risk management are minimized. Meaning that Castellum carries out fi nancial transactions based on estimations of the Group's overall longterm funding needs, liquidity and increased interest rate risk. Hence, the fi nancial risk management is carried out on portfolio level. Portfolio management of funding means that an intra Group transaction, such as an internal loan, is not replicated by an identical external transaction. Instead loans are drawn under short or long term 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 when a payment is made or a new loan is drawn with short fi xed interest term under different credit agreements, followed by 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 a cash pool system of bank accounts for the Group´s liquidity fl ows.

Policy	Objective/Mandate	Outcome
Loan to value ratio	Not in the long run exceeding 55%	53%
Interest coverage ratio	At least 200%	284%
Interest rate risk
– average fi xed interest rate term	0.5-3 years	2.8 years
– proportion maturing within 6 months	No more than 50%	33%
Currency risk
– investment	60-100% funded in local currency	82%
– other currency risk	Not allowed	No exposure
Funding risk	At least 50% interest bearing liabilities have a
	duration of at least 2 years	100%
Counterparty risk	Credit institutions with high ratings, at least
	"investment grade"	Satisfi ed
Liquidity risk	Liquidity reserve in order to fulfi ll payments	SEKm 1,212 in unutilized
	due	long term credit agreements

Objectives

Financial policy

The parent company holds a function, separated from the treasury department, that provides accounting and independent control of the fi nancial management and the fi nancial risks. Financial risks defi ned in the fi nancial policy, are reported quarterly to the Board of Directors. In order to improve and adjust the fi nancial risk management the Board of Directors reveiws of the fi nancial policy each year.

Borrowing, maturity structure and interest rates

Properties are long term assets and demands long term funding where the ratio between equity and interest bearing debt is set to obtain necessary funding. The loan to value ratio is the fi nancial key ratio that describes the proportion of the property´s value covered by loans. Castellum´s objective is a loan to value ratio not exceeding 55% in the long run. The loan to value ratio at year end was 53% (51%).

Demands for long-term funding make Castellum look for long term capital in credit agreements in order to minimize the risk of refi nancing. To reach maximum fl exibility utilized loans are revolving, i e the turnover interest rate is normally within 1-3 months. Short term revolving loans leads to great fl exibility when it comes to fi xed interest rate terms, basis for interest rate and the opportunity for amortization at every turnover occasion without any marginal breaking costs or other compensation to lenders. 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 are regularly re-negotiating and, when needed, entering into new credit agreements or forms of borrowing. At the end of the year Castellum had binding credit agreements totalling SEKm 23,361 (22,029) of which SEKm 20,262 (19,374) were long term binding and SEKm 3,099 (2,655) short term binding. Of utilized credits, SEKm 19,062 (19,374) were long term binding credit agreements in bank and SEK 1,200 (0) were MTN. Of short term credits, SEKm 1,227 (420) were short term credits in bank and SEKm 1,872 (2,235) were outstanding commercial papers. At year-end unutilized credit in long term credit agreements amounted to SEKm 1,212. Castellum thus has good access to credits to fi nance investment in new constructions, extensions, reconstructions and acquisitions.

The average duration of Castellum's long-term credit agreements was 4.1 years (5.1). Margins and fees on long-term credit agreements had an average duration of 2.8 years (3.5).

During the year, Castellum has signed new agreements of SEKm 1,000, renegotiated agreements of SEKm 5,000 and terminated an unutilized credit facility of SEKm 500. During 2012 Castellum also established a MTN-program with a limit of SEKm 5,000 where bonds of SEKm 1,200 were issued.

Credit agreements/-limits	Amount, SEKm	Utilized, SEKm
Long-term credit agreements	19,062	16,012
Short-term credit agreements	1,227	10
Liquidity	–	– 44
Total credit agreements	20,289	15,978
MTN program	5,000	1,200
Commercial paper program	4,000	1,872
Total	29,289	19,050

The debt maturity structure for the credit agreements, presented in the table below, shows when in time the credit agreements fall due for renegotiation or repayment.

SEKm			Utilized in
Credit maturity structure	Agreements	Bank	MTN/Cert	Total
0-1 year	3,099	– 34	1,872	1,838
1-2 years	407	7	–	7
2-3 years	8,007	4,857	1,200	6,057
3-4 years	4,007	3,907	–	3,907
4-5 years	5,707	5,107	–	5,107
>5 years	2,134	2,134	–	2,134
Total credit agreements	23,361	15,978	3,072	19,050
Unutilized credits in long term credit agreements				1,212

The credit agreements can be divided into the following categories:

• Credits pledged by Castellum's receivables from subsidiaries, including mortgages. Utilized credits secured by pledged mortgages were at the end of the year SEKm 15,917. In addition to the mortgages the majority of the credit agreements include commitments regarding loan to value ratio and interest coverage ratio, so called fi nancial covenants. In all cases the fi nancial covenants are issued with in safe margins to Castellum´s objectives for the capital structure and state a loan to value ratio not exceeding 65% and an interest coverage ratio of at least 150%.

• Credits directly to subsidiaries pledged by mortgages. Credits directly to subsidiary have, in the majority of the cases, also a guaranteed commitment from the parent company.

• Unsecured credits.

• Issuing of bonds, without pledged securitiy.

• Issuing of commercial papers, without pledged security.

Irrespective of type of credit agreement they include usual conditions for cancellation and, in some cases, conditions for renegotiation if there is a material adverse change in business or in the case of discontinued stock exchange listing. If the lender in such renegotiation calls on the right and the parties cannot agree, the agreements contain specifi ed terms for the time of termination for those agreements covered by such conditions.

Changes in market interest rates affect net fi nancial items. How quickly and by how much largely depends on the chosen fi xed interest term. To ensure low and stable net fi nancial items in terms of cash fl ow Castellum has generally chosen to fi x interest rates for a relatively long period. This limits the immediate effect in net fi nancial items caused by changes in the market interest rates.

For the same reason Castellum has chosen to sign mainly long-term credit agreements with agreed spreads with banks. However changes in both of these markets will over time affect net fi nancial items.

The interest coverage ratio is the fi nancial key ratio that describes a company's resistance and level of risk for changes in net fi nancial items. Castellum's objective is an interest coverage ratio of at least 200%. For 2012 the interest coverage ratio was 284% (278%).

The average fi xed interest term as of December 31, 2012 was 2.8 years (2.7), the average effective interest rate was 3.6% (4.0%) and the average interest rate for the year was 3.9% (4.1%). Margins and fees on long-term credit agreements had an average duration of 2.8 years (3.5). The market interest rate for an average equal portfolio, regarding both current market rate and estimated credit margin, can be assessed to 4.2% (4.7%). The present value of these credit margins can be calculated to SEKm 300-350. The range refl ects the great uncertainty that exists for establishing a credit margin that would be applicable to new bilateral loan agreements. In light of the discussions that Castellum continuously has with banks and other participants in the credit and capital market, it is Castellum's assessment that existing credit margins differ favourably compared to today's credit margins. Due to the great uncertainty and the fact that bilateral loan agreements cannot be converted or transferred - unlike, for example, listed fi nancial contracts - the amount is not included in the net asset value per share calculation.

With a change in the interest rate of +/– 1%, the effect on the result for the next 12 months will amount to SEKm –53 and +48, respectively.

In the interest rate maturity structure, interest rate derivates are accounted for in the earliest time segment in which the can mature. Credit margins are distributed in the interval of the underlying loans.

Interest rate maturity structure	Loan, SEKm	Derivates, SEKm	Amount, SEKm	Average
				interest rate
0-1 years	17,925	– 9,000	8,925	3.6%
1-2 years	1,000	700	1,700	2.4%
2-3 years	125	550	675	4.2%
3-4 years	–	2,050	2,050	4.3%
4-5 years	–	1,100	1,100	3.5%
5-10 years	–	4,600	4,600	3.8%
Total	19,050	–	19,050	3.6%

Currency risk

Castellum owns properties in Denmark to a value of SEKm 435 (254), which means that the Group is exposed to a currency risk. The currency risk is primarily related to when income statement and balance sheet in foreign exchange are translated into Swedish currency. In accordance with fi nancial policy, between 60-100% of investments in foreign subsidiaries are to be fi nanced in that country's currency. The transaction risk in the Group is unsignifi cant and will be managed by matching income by costs.

Accrued Expenses and	Group		Parent Company
Prepaid Income	2012	2011	2012	2011	Note 18
Pre-paid rents	406	438	–	–
Accrued interest	123	140	123	140
Other	159	149	15	10
Total	688	727	138	150

	Group		Parent Company
Pledged Assets	2012	2011	2012	2011	Note 19
Property mortgages	18,764	18,986	–	–
Long-term receivables, group companies	–	–	15,090	16,103
Total	18,764	18,986	15,090	16,103

		Group		Parent Company
Note 20	Contingent Liabilities	2012	2011	2012	2011
	Guaranteed commitments for subsidiaries	–	–	2,170	1,174
	Total	–	–	2,170	1,174

Normally the parent company is the borrower, but when the property owning company borrows directly, the parent company provides guaranteed commitments for subsidiaries.

Note 21 Participations in Group Companies

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.

	Corporate	Registered	Share of	Book
Directly owned subsidiaries	identity no.	offi ce	capital	value
Fastighets AB Brostaden	556002-8952	Stockholm	100%	1,205
Aspholmen Fastigheter AB	556121-9089	Örebro	100%	797
Eklandia Fastighets AB	556122-3768	Gothenburg	100%	1,010
Harry Sjögren AB	556051-0561	Mölndal	100%	804
Fastighets AB Corallen	556226-6527	Värnamo	100%	589
Fastighets AB Briggen	556476-7688	Malmö	100%	933
Fastighets AB Regeringsgatan	556571-4051	Gothenburg	100%	0
Total				5,338

		Parent Company
	2012	2011
Opening acquisition value	5,338	5,217
Paid shareholders´ contribution	–	55
Paid group contribution, net after tax	–	66
Closing acquisition value/book value	5,338	5,338

		Parent Company
Note 22	Long-term Receivables, Group Companies	2012	2011
	Opening acquisition value	17,432	16,195
	New lending to subsidiaries	561	1,237
	Currency translation foreign operation	– 10	0
	Closing acquisition value/book value	17,983	17,432

Note 23 Financial Instruments - future cash fl ow etc.

Future cash-fl ows attributable to interest rate derivatives as well as liabilities are shown in the table below. Cash-fl ows related to interest rate derivatives consist of interest paid minus interest received. To calculate the variable part of the interest rate derivative, the Stibor interest rate - as listed at year end - has been used throughout the full term of the derivative. In calculating cash-fl ow attributable to loan, the assumption is made that a maturing loan is replaced by a new one during the term or maturity of the underlying credit agreement and to a Stibor interest rate as listed at year end.

		Derivates				Loan
				Loan,		Loan,
	Interest to	Interest to	Interest	opening		closing	Interest
Year	pay, SEKm	receive, SEKm	costs, SEKm	balance	Mature	balance	costs, SEKm
2013	– 401	158	– 243	19,050	– 1,837	17,213	– 441
2014	– 387	149	– 238	17,213	– 7	17,206	– 412
2015	– 368	138	– 230	17,206	– 6,057	11,149	– 343
2016	– 321	121	– 200	11,149	– 3,907	7,242	– 209
2017	– 236	87	– 149	7,242	– 5,107	2,135	– 167
2018+	– 484	176	– 308	2,135	– 2,135	0	– 142
Total	– 2,197	829	– 1,368		– 19,050		– 1,714

SEKm	Financial liabilities recorded at fair Loan and value in income Derivatives used in accounts receivable statement hedge accounting						Financial liabilities recorded at accrued acquisition value
	2012	2011	2012 2011 2012		2011	2012	2011
Assets
Currency derivatives	–	–	–	–	8	0	–	–
Rent receivables	20	20	–	–	–	–	–	–
Other receivables	29	14	–	–	–	–	–	–
Prepaid expenses and accrued income	58	64	–	–	–	–	–	–
Cash and bank	44	97	–	–	–	–	–	–
Liabilities
Interest rate derivatives	–	–	1,113	1,003	–	–	–	–
Long-term liabilities	–	–	–	–	–	–	19,094	17,160
Accounts payable	–	–	–	–	–	–	171	163
Other liabilities	–	–	–	–	–	–	132	149
Accrued expenses and prepaid income	–	–	–	–	–	–	688	727
Total	151	195	1,113	1,003	8	0	20,085	18,199

The different categories of fi nancial instruments in the Group's balance sheet are shown in the table below.

Financial instruments such as rent receivables, accounts payable etc. are recorded at accrued acquisition value with deduction for any write-downs. Hence, fair value is assessed to comply with book value. Long-term interest bearing liabilities have a fi xed interest term of three months, whereas credit margins have longer terms of maturity. Today there is an estimated surplus value related to the credit margins of SEKm 300-350, as shown in note 17.

Subsequent Events Note 24

The Financial Reports are a part of the Annual Report and were signed by the Board of Directors on January 31, 2013. The Board of Directors of Castellum AB intends to propose the annual general meeting a dividend of SEK 3.95 per share, which is an increase of 7% compared to previous year. 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 will take place on March 21, 2013.

Proposed Distribution of Profits

The following funds are at the Annual General Meetings disposal: Retained profits SEK 4,142,277,011

Net income for the year	SEK	448,440,240
		SEK 4,590,717,251
The Board of Directors propose that the retained profits be appropriated as follows:

Dividend to shareholders, SEK 3.95 per share	SEK	647,800,000
Carried forward to the new accounts		SEK 3,942,917,251
		SEK 4,590,717,251

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 647,800,000 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 of the Swedish Financial Reporting Board (Supplementary Accounting Standards for Groups). The equity of the parent company has been calculated in accordance with Swedish law and by application of the recommendation RFR 2 of the Swedish Financial Reporting Board (Accounting for Legal Persons).

It is noted that the proposed distribution constitutes 52% of the group's income from property management, which is in line with the express target to distribute at least 50% of the group's income from property management, having considered investment plans, consolidation needs, liquidity and overall position. The group's net income after tax and changes in value for the year amounted to SEKm 1,473. 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 flow, do not normally affect the distribution. That kind of profit or loss, not affecting cash flow, have furthermore not been taken into consideration in previous year's resolutions regarding distribution of profit.

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 justified 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 sufficient 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 financial position of the company and the group, and the possibilities of fulfilling their obligations in the long run. The proposed dividend constitutes 14% of the company's equity and 5% of the group's equity. The expressed target for the group's capital structure, meaning a loan to value ratio not permanently exceeding 55% and an interest coverage ratio of at least 200%, will be maintained after the proposed dividend. The capital structure 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 manage future business risks and also to carry potential losses. Planned investments have been considered when deciding on the proposed dividend.

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 fluctuations as well as possible unexpected events.

Overall position

The board of directors has considered all other known conditions which might affect the financial 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 justified.

Evaluation to actual value

Derivatives instruments and other financial instruments have been valued to the actual value in accordance with section 4 subsection 14a of the Swedish Annual Accounts Act. The valuation has showed an undervalue of SEKm 862 after taxes, which has affected the equity by the mentioned amount.

Gothenburg January 22, 2013 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 January 31, 2013

Chairman of the Board Board member Board member

Charlotte Strömberg Per Berggren Marianne Dicander Alexandersson

Ulla-Britt Fräjdin-Hellqvist Christer Jacobson Jan Åke Jonsson Board member Board member Board member

Johan Skoglund Håkan Hellström

Board member Cheif Executive Officer

Our Audit Report regarding this Annual Report was submitted on January 31, 2013

Carl Lindgren Magnus Fredmer

Authorized Public Accountant Authorized Public Accountant

Audit Report

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

Report on the annual accounts and consolidated accounts

We have audited the annual accounts and consolidated accounts of Castellum AB (publ) for the year 2012. The annual accounts and consolidated accounts of the company are included in the printed version of this document on pages 4-110.

Responsibilities of the Board of Directors and the Managing Director for the annual accounts and consolidated accounts

The Board of Directors and the Managing Director are responsible for the preparation and fair presentation of these annual accounts in accordance with International Financial Reporting Standards, as adopted by the EU, and the Annual Accounts Act, and for such internal control as the Board of Directors and the Managing Director determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express an opinion on these annual accounts and consolidated accounts based on our audit. We conducted our audit in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the annual accounts and consolidated accounts are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual accounts and consolidated accounts. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company's preparation and fair presentation of the annual accounts and consolidated accounts in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors and the Managing Director, as well as evaluating the overall presentation of the annual accounts and consolidated accounts.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the parent company as of 31 December 2012 and of its financial performance and its cash flows for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2012 and of their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards, as adopted by the EU, and the Annual Accounts Act. A corporate governance statement has been prepared. The statutory administration report and the corporate governance statement are consistent with the other parts of the annual accounts and consolidated accounts.

We therefore recommend that the annual meeting of shareholders adopt the income statement and balance sheet for the parent company and the statement of comprehensive income and statement of financial position for the group.

Report on other legal and regulatory requirements

In addition to our audit of the annual accounts and consolidated accounts, we have also audited the proposed appropriations of the company's profit or loss and the administration of the Board of Directors and the Managing Director of Castellum AB (publ) for the year 2012.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors is responsible for the proposal for appropriations of the company's profit or loss, and the Board of Directors and the Managing Director are responsible for administration under the Companies Act.

Auditor's responsibility

Our responsibility is to express an opinion with reasonable assurance on the proposed appropriations of the company's profit or loss and on the administration based on our audit. We conducted the audit in accordance with generally accepted auditing standards in Sweden.

As basis for our opinion on the Board of Directors' proposed appropriations of the company's profit or loss, we examined the Board of Directors' reasoned statement and a selection of supporting evidence in order to be able to assess whether the proposal is in accordance with the Companies Act.

As basis for our opinion concerning discharge from liability, in addition to our audit of the annual accounts and consolidated accounts, we examined significant decisions, actions taken and circumstances of the company in order to determine whether any member of the Board of Directors or the Managing Director is liable to the company. We also examined whether any member of the Board of Directors 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 the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

Opinions

We recommend to the annual meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.

Gothenburg January 31, 2013

Carl Lindgren Magnus Fredmer

Authorized Public Accountant Authorized Public Accountant

Greater Gothenburg	114
Öresund Region	122
Greater Stockholm	128
Mälardalen	132
Eastern Götaland	138
Properties sold in 2012	144

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												Tax Mgmt.
			Acquis- Build/			Square metres per type of premises						assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce		Retail Warehouse IndustrialResidential Other				Total	Site sq.m.		value sidiary Note
OFFICE/RETAIL
1 Annedal 21:10	Haraldsgatan 5	Gothenburg	1999 1995	4,382	–	–	–	–	–	4,382	3,132	81,200 EKL
2 Guldheden 8:10	Guldhedsgatan 5	Gothenburg	2000 1995	10,477	–	23	–	–	–	10,500	9,896		– EKL
3 Gullbergsvass 1:15	Lilla Bommens torg	Gothenburg	1999 2001	7,942	–	–	–	–	24	7,966	1,835	163,000 EKL
4 Heden 16:5	Parkg 10/Nya Allén 5	Gothenburg	<1995 1961	70	–	–	–		616 1,243	1,929	993	25,663 EKL
5 Inom Vallgraven 19:17 Kyrkogatan 38-40		Gothenburg	<1995 1919	210	158	20	–	–	975	1,363	867	28,000 EKL
6 Inom Vallgraven 22:3	Kungsgatan 31-33	Gothenburg	<1995 1929	1,080	488	–	–	–	–	1,568	574	39,600 EKL
7 Inom Vallgraven 33:9	Västra Hamng 21/Vallg 9Gothenburg		<1995 1929/1995	1,063	510	–	–	–	–	1,573	829	27,800 EKL
8 Inom Vallgraven 34:8	Kungsg 19-23/ Magasinsg 18	Gothenburg	<1995 1929/1994	3,481	831	55	–	–	–	4,367	1,242	91,581 EKL
9 Inom Vallgraven 35:14 Kungsg 15-17/	Magasinsg 17	Gothenburg	<1995 1929/1991	2,489	1,219	–	–	469	–	4,177	1,315	87,970 EKL
	10 Inom Vallgraven 35:16 Kaserntorget 5/Vallg 2 Gothenburg		<1995 1991	2,371	590	36	–	–	–	2,997	690	46,800 EKL
	11 Inom Vallgraven 35:17 Magasinsg 11-13/Vallg 4-6Gothenburg		<1995 1991	163	139	–		– 1,149	–	1,451	690	23,001 EKL
12 Inom Vallgraven 57:2	Drottningg7/V Hamng 5Gothenburg		2000 1988/1990	6,126	710	254	–	–	–	7,090	2,422	92,800 EKL
13 Krokslätt 102:2	Eklandagatan 80	Gothenburg	2008 1980	160	–	–	–	–	811	971	1,319		– EKL
14 Lorensberg 48:8	Vasagatan 46	Gothenburg	<1995 1900/1992	1,401	202	–	–	–	74	1,677	722	18,828 EKL
15 Masthugget 3:6	Linnégatan 5	Gothenburg	<1995 1893/1980	492	628	–		– 1,079	790	2,989	745	39,600 EKL
16 Masthugget 9:17	Järntorget 3-4	Gothenburg	1996 1900	2,865	518	10	–	–	–	3,393	1,221	46,300 EKL
17 Masthugget 26:1	Barlastgatan 2	Gothenburg	<1995 1923	4,038	1,075	–		– 2,796	–	7,909	3,597	105,200 EKL
18 Nordstaden 2:16	Östra Hamngatan 16	Gothenburg	2004 1974/2010	13,819	2,759	–	–	–	4	16,582	3,255	417,143 EKL
19 Pustervik 3:8	Brogatan 4	Gothenburg	<1995 1988	3,910	–	–	–	–	–	3,910	1,088	36,800 EKL
20 Gamlestaden 22:14	Gamlestadsvägen 16	Gothenburg	2004 1957	18,738	–	540	352	–	158	19,788	20,313	78,683 EKL
21 Gamlestaden 26:1	Marieholmsgatan 10	Gothenburg	<1995 1914/1987	6,231	270	1,870	6,865	–	–	15,236	24,356	51,308 EKL		T/B
22 Olskroken 14:2	Ånäsv 44-46/Svang 2-4/ Ejderg 3	Gothenburg	<1995 1895/1986	7,241	315	135	5,381	136	40	13,248	10,263	68,407 EKL
23 Skår 58:1	St Sigfridsgatan 89	Gothenburg	<1995 1991	11,855	–	–	–	–	–	11,855	6,151	125,000 EKL		B
24 Arendal 764:394	Sydatlanten 15-17	Gothenburg	2005 1990	9,358	–	–	–	–	–	9,358	9,646	49,800 EKL		T
25 Backa 27:43	Bergögatan 5-7	Gothenburg	1998 1984	3,189	–	984	309	–	342	4,824	3,920	27,400 EKL
26 Backa 196:6	Aröds Industriväg 34	Gothenburg	1996 1990	1,332	–	408	–	–	66	1,806	5,274	8,665 EKL
– Ellesbo 1:5 & 2:10	Ellesbovägen 150	Gothenburg	2012 1990/2009	2,270	–	–	–	–	–	2,270	30,163	4,755 EKL
27 Kärra 28:19	Transportgatan 33	Gothenburg	1996 2008	–	–	4,600	–	–	–	4,600	21,832	26,221 EKL
28 Kärra 77:3	Tagenevägen 70	Gothenburg	1998 1990	1,197	–	–	–	–	–	1,197	9,200	6,030 EKL		T
29 Lindholmen 28:2	Theres Svenssons Gata 9-11 Gothenburg		2006 2006	4,873	204	72	–	–	–	5,149	2,725	109,000 EKL
30 Lundbyvassen 3:1	Lindholmsallén 9	Gothenburg	2011 1949/2006	7,890	–	–	–		– 2,913	10,803	6,016	144,000 EKL
31 Rambergsstaden 733:409	Herkulesgatan 68	Gothenburg	<1995 1988	2,331	944	984	–	–	–	4,259	9,499	23,557 EKL
32 Sannegården 28:33	Vingalandsgatan 2	Gothenburg	2006 1880/1987	5,237	–	1,201	172	–	34	6,644	3,016	77,000 EKL
33 Sannegården 52:1	Östra Eriksbergsg 14-52 Gothenburg		2011 1956/1993	2,372	320	615	1,719		– 2,510	7,536	12,784	72,000 EKL
	34 Tingstadsvassen 11:11 Ringög 12/Kolgruveg 3-5Gothenburg		<1995 1992	3,431	2,170	337	–	–	29	5,967	4,267	33,000 EKL B
36 Tingstadsvassen 26:5	Lergodsgatan 1-3	Gothenburg	2002 1989	792	–	2,518	–	–	–	3,310	4,566	19,487 EKL		T/B
37 Tuve 87:1	Hildedalsgatan 2	Gothenburg	2007 1987	1,336	–	3,200	–	–	–	4,536	9,318	22,555 EKL
38 Högsbo 8:8	Beatrice Lesslies Gata 14Gothenburg		2000 1961/2001	1,100	–	1,000	–	–	–	2,100	3,500	9,644 HAR B
39 Högsbo 13:3	E A Rosengrens Gata 15 Gothenburg		<1995 1982	1,244	–	–	–	–	–	1,244	3,787	6,511 HAR T/B
40 Högsbo 17:7	E A Rosengrens Gata 15Gothenburg		2012 1969	3,489	–	559	–	–	–	4,048	2,996	19,095 HAR
41 Högsbo 20:22	F O Petterssons Gata 24-32 Gothenburg		2002 1982	14,145	178	760	–	–	–	15,083	15,522	87,800 HAR
42 Högsbo 24:12	August Barks Gata 23	Gothenburg	1999 1968/1990	3,117	–	2,756	–	–	–	5,873	12,817	39,784 HAR B

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

Greater Gothenburg												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse Industrial Residential Other			Total	Site sq.m.	value sidiary Note
43 Högsbo 27:7	August Barks Gata 6	Gothenburg	2002 1988	7,933	–	–	–	–	–	7,933	9,723	76,600 HAR
44 Högsbo 36:6	Hulda Mellgrens Gata 1 Gothenburg		2012 1991	3,851	–	510	–	–	–	4,361	5,336	37,600 HAR
45 Kobbegården 6:362	Stora Åvägen 19 A-B, 21Gothenburg		<1995 1990	5,513	878	1,150	–	–	–	7,541	5,490	65,430 HAR
46 Kobbegården 6:726	Datavägen 14 B	Gothenburg	<1995 1981	2,573	–	–	–	–	–	2,573	4,267	11,880 HAR
47 Anisen 1	Johannefredsgatan 1	Mölndal	2000 1990	1,676	–	237	–	–	–	1,913	5,843	12,324 HAR B
48 Anisen 3	Johannefredsgatan 3	Mölndal	1998 2003	1,800	1,500	–	2,600	–	–	5,900	10,108	45,528 HAR
49 Berguven 1	Möbelgatan 4	Mölndal	2004 1964	6,500	–	–	–	–	500	7,000	24,283	23,200 HAR B
50 Generatorn 5	Aminogatan 16	Mölndal	<1995 1986	640	–	–	483	–	–	1,123	5,169	8,043 HAR
51 Mejramen 1	Lunnagårdsgatan 4	Mölndal	1999 1999	8,300	–	4,700	–	–	–	13,000	38,818	89,000 HAR B
52 Pottegården 4	Kråketorpsgatan 20	Mölndal	<1995 1992	3,182	–	1,836	–	–	–	5,018	6,060	27,524 HAR
53 Riskullaverket 2	Aminogatan 25	Mölndal	<1995 1991	1,692	–	1,261	–	–	–	2,953	3,411	17,898 HAR
54 Sesamfröet 2	Aminogatan 27	Mölndal	2005 1992	5,150	–	700	–	–	–	5,850	11,000	51,600 HAR B
55 Apollo 5	Österlånggatan 5	Borås	<1995 1930/1979	6,803	552	193	–	–	–	7,548	2,343	46,600 HAR
56 Cedern 9,12,15,16	Ramnåsg 1/ Göteborgsvägen 6	Borås	2005 1935/1980	4,289	300	2,129	260	–	361	7,339	4,159	9,057 HAR B
57 Katrinedal 14	Katrinedalsgatan 22	Borås	<1995 1990	2,360	–	1,892	–	–	–	4,252	7,675	14,530 HAR
58 Midas 14	Västerlånggatan 17	Borås	<1995 1974	15,408	5,424	–	366	–	–	21,198	8,185	166,200 HAR B
59 Narcissus 5	L:a Brogatan 15/St. Brogatan 16	Borås	<1995 1930	908	1,484	–		– 1,284	–	3,676	853	29,190 HAR
60 Nestor 2	L:a Brogatan 19-21	Borås	<1995 1962/1991	1,225	3,012	135	–	–	–	4,372	1,381	44,400 HAR
61 Nestor 3	St. Brogatan 24	Borås	1999 1930	1,346	732	–	–	439	–	2,517	590	22,060 HAR
62 Solsten 1:109	Företagsparken	Härryda	<1995 2003	11,756	–	–	–	–	–	11,756	19,206	61,321 EKL
63 Flaggan 1	Laholmsvägen 84	Halmstad	2007 1959/2004	–	2,895	–	–	–	–	2,895	5,941	9,908 HAR
64 Karossen 3	Kristinehedsvägen 5, 7 Halmstad		2007 1965/2004	916	4,458	568	535	–	–	6,477	14,500	23,118 HAR B
65 Kartongen 3	Spikgatan 7	Halmstad	2007 1990/1995	3,434	–	2,842	–	–	40	6,316	20,900	25,460 HAR B
66 Valsen 2	Svingelvägen 2	Halmstad	2007 1979/2003	2,294	–	–	–	–	–	2,294	7,314	11,115 HAR B
67 Filaren 1	Sveagatan 10	Alingsås	<1995 1958/1968	3,116	2,282	158	–	–	–	5,556	4,636	28,863 HAR
68 Gjutaren 26 B	Metallgatan 2-4	Alingsås	<1995 2000	3,585	–	–	–	–	–	3,585	4,000	36,647 HAR B
69 Partille 4:2, 4:25	G:a Kronvägen 22	Partille	<1995 1940/1981	–	2,240	–	–	–	–	2,240	8,250	9,902 HAR
70 Ugglum 8:37	Göteborgsvägen 78-80 Partille		<1995 1998/1982	2,082	1,312	–	–	278	–	3,672	5,731	29,635 HAR
72 Ugglum 8:92	Göteborgsvägen 74-76 Partille		<1995 1992	4,944	720	193	–	–	–	5,857	5,408	42,400 HAR
73 Ugglum 126:4	Gibsons väg 3	Partille	<1995 1990	468	–	–	–	–	–	468	767	4,046 HAR
74 Hede 3:125	Sättarevägen 3	Kungsbacka	<1995 1990	1,759	–	601	–	–	–	2,360	3,690	11,432 HAR
75 Kungsbacka 4:46	L:a Verkstadsgatan 8	Kungsbacka	<1995 1979	401	–	–	–	–	–	401	1,356	1,931 HAR B
76 Varla 2:380	Energigatan 11	Kungsbacka	<1995 1990	1,689	–	685	–	–	–	2,374	4,590	13,709 HAR
77 Varla 2:416	Kungsparksvägen 2	Kungsbacka	2001 2002	1,100	–	680	–	–	–	1,780	5,500	9,538 HAR
78 Varla 3:22 B	Hallabäcksvägen 2	Kungsbacka	2006 1979	1,100	4,700	1,100	–	–	–	6,900	15,000	57,600 HAR B
79 Vägmästaren 5	Syréngatan 1	Kungsbacka	2009 2010	3,000	–	–	–	–	–	3,000	6,500	35,600 HAR B
Total offi ce/retail				302,100	46,717	44,507	19,042 8,246 10,914			431,526		556,346 3,691,877

Greater Gothenburg												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse Industrial Residential Other			Total	Site sq.m.	value sidiary Note
WAREHOUSE/INDUSTRIAL
80 Arendal 1:13	Hamneviksvägen 31	Gothenburg	2005 2006	–	–	27,787	–	–	–	27,787	6,408	144,600 EKL
81 Arendal 7:4	Kärrlyckegatan 11	Gothenburg	1998 1991	553	–	2,955	–	–	164	3,672	12,671	16,084 EKL
82 Arendal 764:130	Oljevägen 103	Gothenburg	2005 1971	–	–	9,463	16,307	–	25	25,795	41,244	81,624 EKL
83 Backa 18:7, 18:10	Risbindaregatan 1	Gothenburg	<1995 1964	–	–	16,930	–	–	–	16,930	45,020	50,248 EKL
84 Backa 20:5	Exportgatan 2-8	Gothenburg	2007 1989/1999	1,175	–	226	13,869	–	630	15,900	37,965	61,986 EKL B
85 Backa 22:11	Exportgatan 67	Gothenburg	<1995 1990	195	–	2,550	–	–	–	2,745	5,031	9,522 EKL
86 Backa 25:7	Exportgatan 28	Gothenburg	1999 1972	–	–	–	11,200	–	–	11,200	23,169	29,545 EKL
87 Backa 26:3	Exportgatan 40	Gothenburg	1996 1947/1988	2,712	763	2,467	–	–	6	5,948	6,000	24,726 EKL
88 Backa 27:2	Importgatan 17	Gothenburg	<1995 1968	–	–	2,765	–	–	–	2,765	12,927	9,408 EKL B
89 Backa 29:24	Importgatan 12	Gothenburg	<1995 1977	–	–	2,224	–	–	–	2,224	4,366	6,862 EKL
90 Backa 94:1	Exportgatan 15	Gothenburg	1998 1989	–	–	7,560	–	–	–	7,560	20,947	24,789 EKL B
91 Backa 97:11	Exportgatan 39-41	Gothenburg	2002 1978	1,508	–	2,486	–	–	–	3,994	19,285	19,116 EKL
92 Backa 107:4	Transportgatan 17	Gothenburg	2010 1983/2006	–	–	22,700	–	–	–	22,700	73,621	21,200 EKL T
93 Backa 192:4	Aröds Industriväg 60	Gothenburg	<1995 1989	521	194	1,329	–	–	–	2,044	3,428	7,412 EKL T
94 Backa 192:6	Aröds Industriväg 62	Gothenburg	1998 1988	–	–	1,371	–	–	–	1,371	4,387	4,670 EKL
95 Backa 192:10	Aröds Industriväg 66	Gothenburg	<1995 1990	1,629	–	1,191	–	–	–	2,820	6,042	12,071 EKL
96 Backa 193:1	Aröds Industriväg 2 A	Gothenburg	2000 1988/1996	–	–	–	3,750	–	–	3,750	10,524	14,627 EKL B
97 Backa 197:2	Aröds Industriväg 17-19	Gothenburg	<1995 1990	–	–	1,228	–	–	–	1,228	2,727	4,748 EKL
98 Kärra 28:10	Transportgatan 37	Gothenburg	1996 2010	–	2,217	–	–	–	–	2,217	14,872	12,182 EKL
181 Kärra 28:18	Transportgatan 37	Gothenburg	1996 2012	–	–	5,442	–	–	–	5,442	20,287	5,200 EKL
99 Kärra 37:4	Tagenevägen 21	Gothenburg	<1995 1972	–	1,195	11,740	–	–	–	12,935	26,476	36,241 EKL
100 Kärra 72:36	Tagenevägen 34	Gothenburg	2008 2011	–	–	6,400	–	–	–	6,400	14,600	29,749 EKL
101 Kärra 74:2	Tagenevägen 29	Gothenburg	1996 2010	–	–	15,758	–	–	–	15,758	35,995	79,000 EKL
102 Kärra 74:3	Tagenevägen 33	Gothenburg	1998 1985	–	–	–	7,505	–	–	7,505	22,398	26,638 EKL B
103 Kärra 75:3	Transportgatan 35	Gothenburg	2008 1980	–	–	4,624	4,567	–	–	9,191	14,375	31,933 EKL
104 Kärra 77:8	Tagenevägen 72	Gothenburg	<1995 1991	227	–	1,859	–	–	–	2,086	8,914	9,590 EKL
105 Kärra 80:7	Trankärrsvägen 14	Gothenburg	<1995 1990	100	–	3,562	–	–	–	3,662	7,185	14,902 EKL T
106 Kärra 94:1	Orrekulla Industrigata 25	Gothenburg	1999 1990	–	–	–	1,960	–	–	1,960	3,520	7,715 EKL
107 Kärra 96:1	Orrekulla Industrigata 13-15Gothenburg		2001 1991	210	–	3,780	–	–	–	3,990	10,408	16,252 EKL B
108 Tingstadsvassen 11:9 Kolgruvegatan 9		Gothenburg	<1995 1988	343	–	721	–	–	–	1,064	2,213	4,891 EKL
109 Tingstadsvassen 12:6 Manufakturgatan 19		Gothenburg	<1995 1990	328	–	2,657	–	–	–	2,985	2,960	14,214 EKL T
	110 Tingstadsvassen 12:9 Manufakturgatan 21-23 Gothenburg		<1995 1957	–	–	6,226	–	–	–	6,226	7,355	11,460 EKL T
35 Tingstadsvassen 12:12 Kalkbruksgatan 9		Gothenburg	2006 1989	2,489	–	–	–	–	–	2,489	3,751	8,428 EKL
111 Tingstadsvassen 14:7 Stålverksgatan 11		Gothenburg	1997 1993	934	–	–	4,273	–	–	5,207	6,847	738 EKL B
112 Tingstadsvassen 19:3 Kolgruvegatan 1		Gothenburg	<1995 1950/1988	600	–	9,787	245	–	–	10,632	16,645	21,691 EKL T
113 Högsbo 4:1	Fältspatsgatan 1	Gothenburg	<1995 1965/1972	1,140	350	3,074	–	–	–	4,564	10,394	17,629 HAR
114 Högsbo 7:16	Gustaf Melins Gata 7	Gothenburg	<1995 1987	1,301	–	–	404	–	–	1,705	4,043	10,016 HAR
115 Högsbo 9:3	A Odhners Gata 17	Gothenburg	2008 1978/2002	635	–	2,267	–	–	–	2,902	6,007	16,398 HAR
116 Högsbo 18:1	E A Rosengrens Gata 30-38 Gothenburg		<1995 1966/1973	1,092	–	7,628	–	–	–	8,720	17,149	28,182 HAR B
117 Högsbo 26:8	August Barks Gata 25	Gothenburg	1998 1969/1979	2,123	–	–	2,253	–	–	4,376	6,068	16,883 HAR B
118 Högsbo 28:3	August Barks Gata 7	Gothenburg	<1995 1968/1981	785	–	–	2,857	–	–	3,642	3,942	15,236 HAR
119 Högsbo 36:1	Norra Långebergsg. 8 Gothenburg		2000 1971/1995	710	–	3,840	–	–	–	4,550	9,057	22,966 HAR
120 Högsbo 36:5	Hulda Mellgrens Gata 3 Gothenburg		1998 1991	553	–	–	2,931	–	–	3,484	5,438	15,790 HAR B
121 Högsbo 36:7	Hulda Mellgrens Gata 5 Gothenburg		2012 1990	1,710	–	7,421	–	–	–	9,131	18,010	50,000 HAR B
122 Högsbo 36:9	Hulda Mellgrens Gata 9Gothenburg		<1995 2007	400	–	1,475	–	–	–	1,875	4,253	12,159 HAR

Greater Gothenburg												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse Industrial Residential Other			Total	Site sq.m.	value sidiary Note
123 Högsbo 38:9	Sisjö Kullegata 4	Gothenburg	<1995 1984	–	–	–	983	–	–	983	8,609	8,823 HAR B
124 Högsbo 40:1	Gustaf Werners Gata 2 Gothenburg		1999 1981/1999	1,495	–	5,505	–	–	–	7,000	16,070	32,525 HAR B
125 Högsbo 40:2	Gustaf Werners Gata 4 Gothenburg		2006 1978	400	–	2,815	–	–	–	3,215	10,799	17,064 HAR B
126 Kobbegården 208:6	Askims Verkstadsväg 16Gothenburg		1999 1973/1979	480	–	–	1,264	–	–	1,744	3,462	6,977 HAR
127 Kobbegården 209:1	Askims Verkstadsväg 15Gothenburg		1999 1973/1996	–	–	–	2,538	–	–	2,538	6,336	11,559 HAR B
128 Kobbegården 6:180	Datavägen 20	Gothenburg	<1995 1980	1,704	–	1,078	–	–	–	2,782	5,100	18,700 HAR
129 Kobbegården 6:360	Datavägen 31	Gothenburg	2001 1979	1,640	–	5,349	–	–	–	6,989	14,508	42,400 HAR
130 Kobbegården 6:724	Ekonomivägen 11	Gothenburg	1999 1978/1986	–	–	–	6,290	–	–	6,290	12,786	25,411 HAR B
131 Rud 51:21	Klangfärgsgatan 2 C	Gothenburg	2006 1979/1989	510	–	2,590	–	–	–	3,100	6,926	– HAR T
132 Tynnered 1:10	Kontrabasgatan 12	Gothenburg	<1995 1969	429	140	–	2,152	–	–	2,721	7,475	10,126 HAR T/B
133 Kallebäck 3:4	Mejerigatan 1	Gothenburg	2000 1962	8,062	–	21,689	–	–	–	29,751	37,723	100,000 EKL
134 Olskroken 35:7	Blomstergatan 2	Gothenburg	2009 1977	417	–	3,427	–	–	–	3,844	37,598	12,446 EKL T
135 Olskroken 35:9	Grönsaksgatan 5	Gothenburg	2009 1966	874	–	6,781	–	–	–	7,655	9,127	22,418 EKL T
136 Olskroken 35:14	Grönsaksgatan 3	Gothenburg	2009 1967	1,184	4,542	–	–	–	–	5,726	6,216	18,086 EKL T
137 Majorna 163:1	Banehagsliden 2	Gothenburg	2006 1949	2,488	–	5,677	452	–	–	8,617	9,263	24,550 EKL B
138 Gaslyktan 11	Argongatan 26-30	Mölndal	<1995 1987	4,000	–	11,000	–	–	–	15,000	38,100	82,800 HAR B
139 Generatorn 1	Aminogatan 24	Mölndal	<1995 1995/2003	1,445	–	3,110	–	–	–	4,555	30,000	36,000 HAR B
140 Generatorn 2	Aminogatan 20-22	Mölndal	<1995 1991	164	–	2,938	–	–	–	3,102	8,933	15,378 HAR
141 Heliumgasen 11	Kryptongatan 5 B	Mölndal	1999 1975	4,560	–	–	5,093	–	–	9,653	16,300	46,503 HAR B
142 Kryddpepparn 3	Östergårdsgatan 8	Mölndal	<1995 1992	–	–	–	4,140	–	–	4,140	15,347	– HAR B
143 Kusken 3	Idrottsvägen 10	Mölndal	2011 2005	2,773	–	–	4,852	–	–	7,625	17,665	41,727 HAR
144 Pottegården 2	Kråketorpsgatan 18	Mölndal	<1995 1964	–	–	1,800	–	–	–	1,800	7,014	7,444 HAR B
145 Skinntickan 1	Ålegårdgatan 5	Mölndal	<1995 1989	1,221	–	–	4,720	–	–	5,941	10,267	10,622 HAR
146 Syrgasen 8	Kryptongatan 14	Mölndal	<1995 1979	–	–	–	3,055	–	–	3,055	11,197	14,727 HAR B
147 Tjärblomman 2	Wolfsgatan 2	Mölndal	1999 1960	2,495	–	4,540	–	–	–	7,035	9,193	17,525 HAR B
148 Tjärblomman 3	Sallarängsgatan 3	Mölndal	1999 1970	1,225	–	7,533	–	–	–	8,758	9,394	21,352 HAR
149 Tulpanen 1	Bergfotsgatan 5	Mölndal	1999 1961	1,812	–	2,954	–	–	–	4,766	5,577	14,751 HAR B
150 Tusenskönan 2	Flöjelbergsgatan 6	Mölndal	1999 1960	3,567	–	933	–	–	–	4,500	5,346	12,511 HAR B
151 Tusenskönan 4	Bergfotsgatan 3	Mölndal	1999 1961	2,038	–	2,424	–	–	–	4,462	5,397	13,278 HAR B
152 Törnrosen 3	Flöjelbergsgatan 10	Mölndal	1999 1964	1,791	–	1,791	–	–	–	3,582	4,468	9,509 HAR B
153 Vallmon 2	Flöjelbergsgatan 13	Mölndal	<1995 1965	662	–	2,518	–	–	–	3,180	3,642	8,367 HAR
154 Vallmon 3	Flöjelbergsgatan 11	Mölndal	<1995 1965	676	–	2,570	–	–	–	3,246	3,830	8,557 HAR
155 Vallmon 6	Flöjelbergsgatan 7 B	Mölndal	<1995 1965	1,629	–	6,685	–	–	–	8,314	9,956	21,484 HAR
156 Vallmon 7	Flöjelbergsgatan 7 A	Mölndal	1999 1930	960	–	3,844	–	–	–	4,804	6,894	12,966 HAR B
157 Ängsviolen 1	Flöjelbergsgatan 18	Mölndal	<1995 1960/1965	1,765	180	–	3,655	–	–	5,600	10,292	18,630 HAR B
158 Hede 3:12	Faktorvägen 1	Kungsbacka	2003 1992	1,971	–	6,929	–	–	–	8,900	32,809	48,576 HAR B
159 Hede 3:131	Tryckarevägen 8	Kungsbacka	<1995 1991	170	–	1,347	–	–	–	1,517	7,558	6,132 HAR B
160 Kungsbacka 4:47	L:a Verkstadsg 2-6/ Verkstadsg 7	Kungsbacka	<1995 1978/1990	1,516	–	2,475	–	–	–	3,991	9,317	12,590 HAR
161 Varla 2:388	Energigatan 21	Kungsbacka	<1995 1983/1995	–	–	2,207	–	–	–	2,207	10,003	8,167 HAR
162 Varla 2:415	Borgås Gårdsväg 15	Kungsbacka	2004 2002	755	–	3,676	–	–	–	4,431	8,852	18,022 HAR
163 Varla 3:22	Hallabäcksvägen 1	Kungsbacka	2006 1979	3,500	–	18,500	–	–	–	22,000	78,644	60,967 HAR B
167 Silverpoppeln 31	Ålandsgatan 6	Borås	2006 1961/1970	835	–	–	2,165	–	–	3,000	6,143	5,550 HAR
168 Snödroppen 8	Elinsdalsg 9,13-15/ Södra Korsg 11	Borås	2005 1980/1980	1,543	–	–	5,881	–	–	7,424	14,546	15,915 HAR B
169 Trucken 5	Viaredsvägen 14	Borås	2001 2001/2012	1,050	–	13,550	–	–	–	14,600	37,700	21,083 HAR B
170 Bulten 6	Bultgatan 1	Alingsås	2007 1985/1990	760	–	2,600	–	–	–	3,360	19,559	11,909 HAR B
171 Gjutaren 26	Metallgatan 2-4	Alingsås	<1995 1933/1989	1,383	–	9,082	–	–	–	10,465	21,080	18,340 HAR B

Greater Gothenburg											Tax Mgmt.
			Acquis- Build/				Square metres per type of premises			assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other		Total	Site sq.m.	value sidiary Note
172 Konfektasken 15	Kolav. 2-8/Sidenv. 7	Alingsås	<1995 1929/1969	3,769	–	6,927	–	– –	10,696	15,544	18,897 HAR B
173 Stallet 3	Tomasgårdsvägen 19	Alingsås	2008 1990	1,295	–	2,040	–	– –	3,335	4,700	9,863 HAR B
174 Hede 2:11	Hedeforsvägen 6	Lerum	2006 1960/1974	500	–	2,200	–	– –	2,700	9,973	10,611 HAR
175 Berg 1:76	Åkerivägen 7	Lerum	2006 2007	1,500	–	8,400	–	– –	9,900	30,000	44,247 HAR B
176 Fogden 4	Laholmsvägen 84	Halmstad	2007 1960/1990	278	1,946	8,609	118	– 1,028	11,979	25,800	23,232 HAR B
177 Fyllinge 20:409	Sadelvägen 5	Halmstad	2011 1992	166	–	–	4,223	– –	4,389	22,276	14,670 HAR B
178 Hönekulla 1:571	Åvägen 1	Härryda	2006 1986/2002	1,762	–	–	2,345	– 187	4,294	6,596	16,719 HAR
179 Kåbäcken 11:7	G:a Alingsåsvägen 29	Partille	<1995 1961/1964	–	–	2,227	–	– –	2,227	5,477	4,656 HAR
Total warehouse/industrial				100,832		11,787 403,813 150,395		0 2,040	668,867		1,458,504 2,249,864

^{61 58} 55 5960 57 169 166 164 165 167 168 191 56 Hälasjön Pickesjön Viaredssjön Viared Sjömarken Sandlid Lundaskog Ramnaslätt Tullen Västeråsen Viskan Göta Gässlösa Dammsvedjan Kristineberg Centrum Hedvigsborg Trandared Bergsäter Brotorp Sörmarken Gånghester Svensgärde Kyllared Öster- Hulta malm Salängen Brämhult Hässleholmen Boda Bergdalen Lugnet Landala Norrby Parkstaden Hestra Byttorp BORÅS ⁴⁰ 41 27 42 40 180 27 0 1000 m 2000 m 3000 m 64 63 66 65 176 177 HALMSTAD Laholmsbukten Nissan Karlstorp Stenhuggeriet Bäckagård Eketånga Pålsbo Söndrum Mjällby Kristineberg Olofsdal Alet Slottsjorden Rotorp Mickedala berget Furet Sannarp Nyatorp Vallås Centrum Nyhem Larsfrid Östra Stranden Vilhelmsfält Andersberg Gustavsfält Linehed Östergård Fyllinge Snöstorp Lågagård Brogård Skedalahed Fylleån Bergsgård Sandhamn E6 E20 25 0 1000 m 2000 m 3000 m 117

Office/retail Warehouse/industrial Development projects and land

Greater Gothenburg											Tax Mgmt.
			Acquis- Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other		Total	Site sq.m.	value sidiary Note
DEVELOPMENT PROJECTS
180 Inom Vallgraven 4:1	Östra Larmgatan 18	Gothenburg	<1995 1856/1988	2,527	–	–	– –	–	2,527	671	28,600 EKL
182 Lindholmen 28:3	Theres Svenssons Gata Gothenburg		2011 –	–	–	–	– –	–	–	3,000	53,250 EKL
Total development projects				2,527	0	0	0 0	0	2,527	3,671	81,850
UNDEVELOPED LAND
183 Annedal 21:9	Haraldsgatan 3	Gothenburg	1999 –	–	–	–	– –	–	–	2,088	– EKL B
13 Krokslätt 102:9	Eklandagatan 80	Gothenburg	2008 –	–	–	–	– –	–	–	791	650 EKL B
193 Tingstadsvassen 31:6 Stålverksgatan 11		Gothenburg	1997 –	–	–	–	– –	–	–	2,687	– EKL B
184 Högsbo 33:1	Gruvgatan 29	Gothenburg	<1995 –	–	–	–	– –	–	–	5,483	3,015 HAR B
185 Högsbo 39:3	Ingela Gathenheilms Gata 8 Gothenburg		<1995 –	–	–	–	– –	–	–	1,720	946 HAR B
186 Kobbegården 6:7	Ekonomivägen 11	Gothenburg	1999 –	–	–	–	– –	–	–	3,187	1,752 HAR B
187 Kobbegården 152:1	Industrivägen 4-6	Gothenburg	<1995 –	–	–	–	– –	–	–	25,158	13,800 HAR B
188 Heliumgasen 4	Neongatan 4B	Mölndal	<1995 –	–	–	–	– –	–	–	4,794	2,570 HAR B
189 Skällared 3:49	Lysekulevägen	Kungsbacka	<1995 –	–	–	–	– –	–	–	29,297	1,640 EKL B
190 Varla 3:34	Hallabäcksvägen 1	Kungsbacka	2006 –	–	–	–	– –	–	–	14,356	3,230 HAR B
191 Kyllared 1:112	Tvinnaregatan 27	Borås	<1995 –	–	–	–	– –	–	–	5,118	450 HAR B
192 Solsten 1:108	Företagsparken	Härryda	<1995 –	–	–	–	– –	–	–	16,551	6,000 EKL B
Total undeveloped land				0	0	0	0 0	0	0	111,230	34,053

Total Greater Gothenburg 405,459 58,504 448,320 169,437 8,246 12,954 1,102,920 2,129,751 6,057,644

Castellum´s Real Estate Portfolio in Greater Gothenburg 31-12-2012

									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
Central Gothenburg	19	87	181	2,083	96.5%	174	42	485	132
Eastern Gothenburg	4	60	62	1,038	96.8%	61	17	271	44
Mölndal	8	43	44	1,020	84.5%	37	11	264	26
Hisingen	14	72	88	1,223	95.0%	84	22	308	62
Borås	7	51	53	1,038	93.0%	49	13	263	36
Rest of Greater Gothenburg	26	119	127	1,072	92.0%	117	25	211	92
Total offi ce/retail	78	432	555	1,287	94.0%	522	130	302	392
Warehouse/industrial
Hisingen	35	260	182	701	89.8%	164	35	136	129
Mölndal	20	113	97	855	95.5%	92	19	169	73
Högsbo/Sisjön	20	83	70	850	97.0%	68	13	151	55
Kungsbacka	6	43	30	693	90.2%	27	7	152	20
Borås	6	51	27	524	96.4%	26	6	112	20
Rest of Greater Gothenburg	15	119	92	776	91.9%	84	24	211	60
Total warehouse/industrial	102	669	498	745	92.7%	461	104	156	357
Total	180	1,101	1,053	957	93.4%	983	234	213	749
Leasing and property administration							50	46	– 50
Total after leasing and property administration							284	259	699
Development projects	2	2	3	–	–	2	2	–	0
Undeveloped land	12	–	–	–	–	–	–	–	–
Total	194	1,103	1,056	–	–	985	286	–	699

Property value by property type Property value by municipality

		Mölndal 14%
		Borås 7%
		Kungsbacka 5%
Gothenburg 65%		Alingsås 3%
		Halmstad 2%
		Remaining Greater Gothenburg 4%

Property related key ratios

	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003
Rental value, SEK/sq.m.	957	944	935	919	885	856	834	839	834	798
Economic occupancy rate	93.4%	95.4%	94.1%	94.0%	92.6%	90.8%	89.4%	90.7%	92.2%	93.0%
Property costs, SEK/sq.m.	259	257	264	262	228	227	224	230	228	217
Net operating income, SEK/sq.m.	635	644	616	602	591	551	521	531	540	525
Number of properties	194	193	188	190	187	182	176	172	178	188
Lettable area, thousand sq.m.	1,103	1,085	1,046	1,028	1,017	1,000	914	859	794	765

Öresund Region													Tax Mgmt.
Name of property	Address	Municipality	Acquis- Build/ year Recon.year	Offi ce			Square metres per type of premises Retail Warehouse Industrial Residential Other			Total	Site sq.m.	assessment Sub value sidiary Note
OFFICE/RETAIL
1 Armringen 2	Agnesfridsvägen 190	Malmö	2011 1975	480	3,869	24	494	–	–	4,867	14,925	14,505 BRI		T
2 Betongen 11	Krang 4/Västkustv/NubbgMalmö		<1995 1991	4,909	–	–	–	–	–	4,909	6,168	28,517 BRI		T/B
3 Björnen 6	Davidhallsg 20/ S. Förstadsg 23	Malmö	<1995 1920/1988	1,672	429	71	–	–	–	2,172	1,188	35,400 BRI
4 Brandnävan 1&2	Stenbärsgatan 1	Malmö	1999 1989	2,822	–	–	–	–	–	2,822	9,670	16,886 BRI		T/B
5 Bältespännet 13	Hornyxeg 12/Amilonsv 3 Malmö		2006 1972/2002	–	1,820	–	–	–	–	1,820	4,402	4,695 BRI
6 Flygledaren 3	Höjdrodergatan 18	Malmö	2004 1991	1,610	–	–	–	–	–	1,610	3,620	6,325 BRI		T
7 Flygvärdinnan 4	Höjdroderg 30-34/ Vattenverksv 47	Malmö	<1995 1935/2001	5,418	–	3,838	–	–	–	9,256	17,848	59,819 BRI		T
8 Gustav Adolf 13	Gustav Adolfs Torg 4	Malmö	2003 1968	6,182	3,587	155	–	–	–	9,924	2,224	200,000 BRI
9 Hälsingland 19	Fosiev 9-19/Finlandsg 1/ Trelleborgsv 12-14	Malmö	<1995 1950/2003	8,232	6,613	13	–	–	–	14,858	25,474	77,000 BRI		B
10 Höjdrodret 3	Kabingatan 11	Malmö	2007 1990	1,182	–	162	–	–	–	1,344	1,600	5,488 BRI
11 Lybeck 10	St Nygata 46-50/Malm borgsg 2-8/Studentg.	Malmö	1999 1964/1992	6,507	9,629	–		– 5,032 9,518		30,686	6,199	338,800 BRI
12 Malte 23	Fredriksbergsgatan 16 Malmö		1999 1965	5,619	533	753	643	–	–	7,548	2,597	52,200 BRI
13 Murman 8	Murmansg. 126/Kruseg. 27Malmö		<1995 1960/1989	5,787	–	1,393	–	–	–	7,180	7,200	21,416 BRI
14 Nejlikebuketten 4	Skiffervägen 15-19	Malmö	2012 1991	6,565	–	–	–	–	–	6,565	12,995	44,000 BRI
15 Nejlikebuketten 6	Derbyvägen 7	Malmö	2011 1987	1,739	–	–	–	–	26	1,765	10,000	9,585 BRI
16 Norsen 12	Föreningsg 7-11/Brog 12Malmö		<1995 1930/1990	2,446	–	96	54	75	593	3,264	1,296		– BRI
115 Revolversvarven 12	Jägershillgatan 18	Malmö	2012 1987	9,974	–	–	–	–	–	9,974	16,531	62,600 BRI
17 Sadelknappen 4	Ridspögatan 10	Malmö	1999 1985	994	–	–	–	–	511	1,505	5,463	4,823 BRI
18 Skevrodret 1	Kabingatan 9	Malmö	2007 1978/1997	2,158	–	–	–	–	–	2,158	3,000	7,764 BRI
19 Skjutsstallslyckan 3	Lundavägen 62	Malmö	<1995 1946	–	1,391	–	1,705	–	–	3,096	3,690	5,745 BRI
20 Spännbucklan 16	Agnesfridsvägen 178	Malmö	<1995 1972/2002	–	4,762	–	–	–	–	4,762	15,561	30,000 BRI
21 Stadt Hamburg 14	St Hamburgsg. 1/St Ny gata/Malmborgsg. 1-3	Malmö	<1995 1900/2004	2,690	4,069	–	–		373 2,600	9,732	3,671	179,637 BRI
22 Stenyxan 21	Stenyxegatan 14	Malmö	2007 1992/1999	1,094	–	–	–	–	54	1,148	2,301	4,046 BRI
23 Stillman 40	Krusegatan 34	Malmö	2005 1975/1986	1,835	–	–	–	–	–	1,835	3,550	5,479 BRI
24 Svedjenävan 3	Stenbärsgatan 4-6	Malmö	<1995 1991	4,732	–	–	–	–	–	4,732	4,493	31,505 BRI
25 Torshammaren 11	Hornyxegatan 6	Malmö	2011 1984	647	–	–	–	–	–	647	5,034	4,284 BRI
26 Tuborg 1	Kronoborgsv. 5/ V Rönneholmsv. 38/ Tuborgs.g 2	Malmö	<1995 1945/1980	6,508	–	350	403	–	132	7,393	4,377		– BRI
27 Vårbuketten 3	Husievägen 21	Malmö	2001 1987/2002	2,710	–	–	–	–	–	2,710	7,421	17,326 BRI
28 Forskaren 2	Emdalavägen 4-18	Lund	1999 2001	18,617	–	320	–		– 1,500	20,437	18,274	325,000 BRI
29 Forskaren 2:2	Emdalavägen 4-10	Lund	1999 2008	7,685	–	–	–		– 1,315	9,000	9,136	106,000 BRI
105 Forskaren 2:3	Scheelevägen	Lund	1999 2012	7,445	–	–	–		– 1,555	9,000	9,136		– BRI
30 Jöns Petter Borg 9	Hedvig Möllers Gata 6-8Lund		1999 1990	–	–	6,794	–		– 4,442	11,236	22,584	65,762 BRI		B
31 Kvartsen 2	Skiffervägen 15-19	Lund	<1995 1991	695	–	943	–	–	–	1,638	9,543	11,411 BRI
32 Reuterdahl 11	Scheelev 16/Neversv	Lund	1997 1990	2,927	–	–	–	–	175	3,102	4,478	39,400 BRI
33 Reuterdahl 12	Scheelevägen 18	Lund	2006 1990	5,645	–	–	–	–	–	5,645	12,077	77,800 BRI
34 Rudebok 2	Rudeboksvägen 3	Lund	2004 1985/2004	4,697	–	–	–	–	–	4,697	14,781	39,800 BRI
35 Smörkärnan 1	Kaprifoliev 1/Kobjersv. Lund		1996 1968/1995	6,331	–	136	–		– 1,340	7,807	15,000	76,200 BRI
36 St Botulf 11	Botulfsg 5/Skomakareg 4Lund		<1995 1931/1990	–	1,359	–		– 3,139	380	4,878	1,988	84,600 BRI
37 St Clemens 22	Stortorget 6-8	Lund	<1995 1832/1981	1,160	1,423	128	–	574	–	3,285	2,769	52,172 BRI		B
38 St Clemens 27	Stortorget 4/Gröneg	Lund	<1995 1846/1999	255	1,439	–	–	–	–	1,694	1,114	35,400 BRI

Öresund Region											Tax Mgmt.
			Acquis- Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other		Total	Site sq.m.	value sidiary Note
39 Stockholmsledet 8	Scheelevägen 30-32	Lund	<1995 1991	10,815	–	1,121	– –	30	11,966	11,084	146,000 BRI
40 Traktorn 2	Traktorvägen 11	Lund	2004 1990/1995	9,786	–	578	– –	700	11,064	16,573	100,800 BRI
100 Traktorn 4	Traktorvägen 13	Lund	2012 1983	200	1,201	364	– –	–	1,765	4,500	8,186 BRI
41 Trumlan 1	Traktorvägen 19	Lund	<1995 1990	–	1,183	1,334	– –	–	2,517	9,066	12,012 BRI
42 Erik Dahlberg 2	Kullagatan 21	Helsingborg	1996 1890/1987	400	442	–	– –	–	842	350	12,628 BRI
43 Kavalleristen 9	Berga Allé 1-3	Helsingborg	1997 1920/1993	11,498	–	98	– –	775	12,371	27,223	86,533 BRI B
44 Kroksabeln 18	Florettgatan 12	Helsingborg	2004 1988	2,829	–	435	– –	251	3,515	4,809	18,772 BRI
45 Kulan 1	Garnisonsgatan 5	Helsingborg	2002 1996/2005	2,130	–	10,600	– –	–	12,730	18,567	36,412 BRI
46 Musköten 5	Bergavägen 8	Helsingborg	<1995 1970/1985	1,619	725	1,535	– –	–	3,879	4,000	10,104 BRI
47 Pilbågen 6	Garnisonsgatan 6	Helsingborg	2000 1977	–	4,525	814	– –	–	5,339	11,400	36,123 BRI B
48 Pilbågen 9	Garnisonsgatan 10	Helsingborg	2004 1980	5,215	4,728	1,387	– –	350	11,680	16,000	– BRI
49 Rustningen 1	Rundgången 26-32	Helsingborg	<1995 1989	7,345	2,677	822	– –	–	10,844	15,000	66,554 BRI
50 Snårskogen 1	Kanongatan 155-159	Helsingborg	<1995 1991	1,885	4,871	1,872	– –	–	8,628	27,824	37,040 BRI B
51 Spjutet 2	Garnisonsgatan 14	Helsingborg	2008 1970/2003	1,412	5,169	–	– –	162	6,743	15,287	33,600 BRI B
52 Studsaren 4	Bergavägen 21	Helsingborg	<1995 2006	–	–	2,032	– –	–	2,032	7,200	7,028 BRI
53 Vikingen 4	L Strandgatan 5	Helsingborg	<1995 1900/1983	800	–	–	– –	–	800	257	9,434 BRI

Office/retail Warehouse/industrial Development projects and land

Öresund Region														Tax Mgmt.
			Acquis- Build/					Square metres per type of premises					assessment Sub
Name of property	Address	Municipality		year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.		value sidiary Note
54 Vikingen 6 55 Vikingen 12	Mariag 10/S Kyrkog 11 Helsingborg L Strandg 7/S Kyrkog 7 Helsingborg			<1995 1878/1984 <1995 1912/1988	535 625	159 –	– –	– –	– –	– 600	694 1,225	274 414	8,640 BRI 15,940 BRI
57 Abildager 26	Abildager 26	Brøndby		2011 1995	1,805	–	1,738	–	–	–	3,543	14,012	27,724 BRI
58 Hovedvejen 1-7	Hovedvejen 1-7	Glostrup		2011 2007	3,797	303	–	–		– 2,933	7,033	3,796	102,807 BRI
59 Roskildevej 22	Roskildevej 22	Albertslund		2011 1970/1994	8,490	–	–	–	–	–	8,490	26,396	49,094 BRI
60 Vibeholms Allé 15	Vibeholms Allé 15	Brøndby		2011 1961/2007	2,398	–	–	–	–	760	3,158	3,695	13,285 BRI
61 Transformervej 14-16	Transformervej 14-16	Herlev		2012 1972/1989	3,846	–	1,213	–	–	840	5,899	6,000	49,094 BRI
Total offi ce/retail					227,399	66,906	41,119		3,299 9,193 31,542		379,458		567,105 3,069,200
WAREHOUSE/INDUSTRIAL
62 Benkammen 6	Skogholmsgatan 5	Malmö		2005 1994	765	–	12,232	–	–	–	12,997	30,100	44,055 BRI		B
63 Bjurö 12	Flintränneg 21/Bjurög Malmö			<1995 1960/1974	2,836	–	12,626	7,973	–	330	23,765	35,500	67,563 BRI		T
64 Bjälken 2	Skruvg 4/Västkustv/Spettg 1 Malmö			<1995 1962/1990	470	–	2,001	–		– 1,040	3,511	5,623	7,552 BRI		T
65 Bjälken 3	Skruvgatan 8	Malmö		1998 1962	420	–	2,183	–	–	28	2,631	2,618	5,478 BRI
66 Dubbelknappen 17	Risyxegatan 6	Malmö		1998 1989	–	–	2,450	–	–	–	2,450	8,472	7,506 BRI		B
67 Finngrundet 1	Blidögatan 30	Malmö		1998 1966	–	–	7,490	–	–	–	7,490	10,000	15,304 BRI		T
68 Flygfyren 1	Flygfältsvägen 1	Malmö		2000 1950/2002	–	1,495	10,545	–	–	–	12,040	38,706	40,691 BRI		B
69 Gulsippan 1	Källvattengatan 5	Malmö		2001 1988	–	–	13,993	–	–	–	13,993	38,450	57,721 BRI		B
70 Haken 3	Vinkelgatan 5	Malmö		2008 1993	–	–	–	3,588	–	–	3,588	4,871	8,398 BRI		T
71 Hamnen 22:27	Vinterg 4/Jörgen Kockg 11 Malmö			<1995 1952/1976	–	–	–	–	–	–	–	545	1,324 BRI		T
72 Holkyxan 5	Bronsyxegatan 11	Malmö		<1995 1977/2000	–	–	6,510	–	–	–	6,510	13,035	16,716 BRI		T
73 Kalkgrundet 5	Borrg 15/Koksg 1-3/Väderög.2Malmö			<1995 1935/1985	669	–	6,734	–	–	–	7,403	14,274	19,450 BRI		T
74 Kampen 25	Lantmannagatan 22-26 Malmö			<1995 1940/1990	4,414	–	22,867	1,825		– 11,544	40,650	49,281	76,681 BRI
75 Lillgrund 5	Borrg 31/Flintränneg 2 Malmö			2002 1952/1998	–	–	4,430	–	–	–	4,430	4,685	15,350 BRI
76 Långdansen 1	Sångleksgatan 9	Malmö	<1995 1980		–	–	1,200	–	–	–	1,200	10,042	5,381 BRI
77 Murman 7	Murmansg 126/Kruseg 25Malmö			<1995 1959/1987	1,120	–	5,160	162	–	–	6,442	10,400	14,685 BRI		T
78 Murman 11	Murmansg 118-120/Kruseg 21Malmö			1998 1960	2,925	–	5,221	–	–	291	8,437	6,475	20,364 BRI		T
79 Revolversvarven 9	Jägershillgatan 16	Malmö		1997 1985	–	–	3,900	–	–	–	3,900	10,932	15,889 BRI		T
114 Relvolversvarven 10	Jägershillgatan 14	Malmö		2012 1988	955	–	2,645	–	–	–	3,600	15,570	14,914 BRI
80 Ringspännet 1	Kantyxeg 5/Knackstensg 1Malmö			2002 2002	–	–	6,700	–	–	–	6,700	15,730	20,138 BRI
81 Sadelknappen 1	Sadelgatan 9	Malmö		1999 1979	–	–	2,000	–	–	–	2,000	5,284	5,863 BRI
82 Stångbettet 1	Travbaneg 1/Skrittg 11 Malmö			2000 1989	–	–	1,743	–	–	–	1,743	4,051	6,082 BRI
83 Tistlarna 9	Styrsög 4/Väderög./Kocksg. Malmö			2000 1991	1,161	–	14,292	–	–	–	15,453	31,020	41,665 BRI		T/B
84 Tågarp 16:22	Företagsvägen 14	Malmö		<1995 1968/1993	1,855	–	8,082	–	–	–	9,937	19,069	26,213 BRI
85 Tågarp 16:72	Företagsvägen 25	Malmö		<1995 1973/1988	572	–	383	1,099	–	–	2,054	12,656	9,651 BRI
86 Akvamarinen 1	Diabasgatan 1	Helsingborg		2000 2007	–	–	4,713	–	–	–	4,713	10,000	19,530 BRI
87 Bergakungen 1	Måndagsgatan 6	Helsingborg	<1995 1990		618	–	2,325	–	–	–	2,943	6,799	10,495 BRI
88 Dolken 4	Mörsaregatan 16	Helsingborg		2004 1970/1985	410	–	2,586	–	–	–	2,996	4,000	6,960 BRI
89 Grusbacken 2	Makadamgatan 15	Helsingborg		2005 2005	–	–	–	13,300	–	–	13,300	27,645	50,271 BRI
90 Grusbädden 2	Mogatan 2-6	Helsingborg	<1995 1989		1,550	–	7,824	–	–	30	9,404	35,657	32,918 BRI
91 Grusbädden 3	Makadamgatan 16	Helsingborg		2007 2007/2010	–	–	–	13,705	–	–	13,705	29,700	46,000 BRI
92 Grusplanen 3	Makadamgatan 19-21	Helsingborg		2005 1990	–	–	2,735	–	–	–	2,735	7,292	8,809 BRI
93 Hyveljärnet 3	Lastgatan 9	Helsingborg	<1995 1990		–	–	2,276	–	–	–	2,276	6,014	7,731 BRI
94 Mimer 12	S Tvärgången 3	Helsingborg	<1995 1960		–	–	34	–		– 3,063	3,097	9,378		– BRI	B
95 Nide 2	Rundgången 10	Helsingborg		<1995 1955/1985	1,824	–	3,703	1,179	–	–	6,706	23,599	17,170 BRI
96 Topasen 1	Andesitgatan 8	Helsingborg		2003 1989	–	–	–	8,558	–	–	8,558	33,786	37,270 BRI		B
97 Värjan 3	Garnisonsgatan 9	Helsingborg		2002 1969	1,112	695	3,025	–	–	–	4,832	7,522	14,732 BRI		B

Öresund Region											Tax Mgmt.
			Acquis- Build/				Square metres per type of premises				assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other		Total	Site sq.m.	value sidiary Note
98 Annedal 9	Annedalsvägen 2	Lund	<1995 1990	–	–	1,296	– –	–	1,296	4,527	5,594 BRI
99 Råbyholm 5	Landerigr 2-4/Borgs v 9 Lund		1999 1984	2,501	–	7,908	– –	–	10,409	21,376	53,149 BRI
101 Välten 4	Traktorvägen 8	Lund	2003 2003	–	–	3,100	– –	–	3,100	8,003	16,792 BRI
102 Välten 5	Traktorvägen 10	Lund	2003 1974/1995	–	–	3,645	– –	–	3,645	16,384	10,073 BRI
103 Årdret 12	Höstbruksvägen 14	Lund	<1995 1990	–	–	2,049	– –	–	2,049	6,223	7,041 BRI
104 Helgeshöj Allé 38	Helgeshöj Allé 38	Taastrup	2012 1991	9,835	–	7,243	– –	–	17,078	108,180	118,982 BRI	B

Total warehouse/industrial 36,012 2,190 209,849 51,389 0 16,326 315,766 763,474 1,028,151

Office/retail Warehouse/industrial Development projects and land

Öresund Region												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	value sidiary Note
DEVELOPMENT PROJECTS
106 Fullriggaren 4	Riggaregatan 51-57	Malmö	2010 –	5,800	–	–	–	–	–	5,800	1,857	10,266 BRI
107 Sändaren 1	Agnesfridsvägen 111	Malmö	2010 –	8,426	–	925	–		– 2,200	11,551	40,239	23,959 BRI	T
31 Kvartsen 2:1	Skiffervägen 15	Lund	<1995 1991	–	2,143	–	–	–	–	2,143	9,543	– BRI
117 Grusbacken 3	Mogatan 14	Helsinborg	2012 –	1,708	–	480	–	–	–	2,188	9,908	2,678 BRI
56 Motorblocket 1	Ringvägen 170	Landskrona	<1995 1972/1992	130	8,628	100	–	–	–	8,858	22,005	32,200 BRI	T
Total development projects				16,064	10,771	1,505	0		0 2,200	30,540	83,552	69,103
UNDEVELOPED LAND
108 Intäkten 5	Lantmannag 20/Ystadsg 49 Malmö		2000 –	–	–	–	–	–	–	–	2,625	2,045 BRI	B
116 Krukskärvan 6	Flintyxegatan 6	Malmö	2012 –	–	–	–	–	–	–	–	18,086	4,069 BRI	T/B
109 Moränen 1 & 2	Borrgatan 1	Malmö	<1995 –	–	–	–	–	–	–	–	11,281	2,822 BRI	B
110 Ringspännet 5	Kantyxegatan 1	Malmö	2006 –	–	–	–	–	–	–	–	10,000	1,845 BRI	B
111 Svedjenävan 4	Stenbärsgatan 2	Malmö	2006 –	–	–	–	–	–	–	–	3,398	934 BRI	T/B
112 Höjdpunkten 2	Östra Torn	Lund	2001 –	–	–	–	–	–	–	–	15,079	3,023 BRI	B
113 Kulan 2	Garnisionsgatan 5	Helsingborg	2010 –	–	–	–	–	–	–	–	35,500	4,400 BRI	B
Total undeveloped land				0	0	0	0	0	0	0	95,969	19,138
Total Öresund Region				279,475		79,867 252,473	54,688 9,193 50,068			725,764		1,510,100 4,185,592

Castellum´s Real Estate Portfolio in Öresund Region 31-12-2012

									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	28	160	255	1,590	91.3%	233	67	413	166
Lund	16	110	178	1,625	74.6%	133	36	330	97
Helsingborg	14	81	82	1,003	80.7%	66	20	248	46
Copenhagen	5	28	26	941	81.6%	21	5	182	16
Total offi ce/retail	63	379	541	1,426	83.7%	453	128	337	325
Warehouse/industrial
Malmö	25	203	140	690	85.2%	119	37	182	82
Helsingborg	12	75	55	730	91.7%	51	10	121	41
Lund	5	21	19	942	84.2%	16	2	125	14
Copenhagen	1	17	14	843	82.8%	12	6	366	6
Total warehouse/industrial	43	316	228	724	86.5%	198	55	173	143
Total	106	695	769	1,107	84.5%	651	183	263	468
Leasing and property administration							48	68	– 48
Total after leasing and property administration							231	331	420
Development projects	4	31	14	–	–	1	5	–	-4
Undeveloped land	7	–	–	–	–	–	–	–	–
Total	117	726	783	–	–	652	236	–	416

Property related key ratios

	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003
Rental value, SEK/sq.m.	1,107	1,065	1,060	1,063	989	971	932	915	931	892
Economic occupancy rate	84.5%	85.2%	86.6%	86.5%	88.1%	87.7%	86.8%	88.1%	91.2%	90.4%
Property costs, SEK/sq.m.	331	304	315	320	278	271	256	244	262	258
Net operating income, SEK/sq.m.	605	603	604	601	593	581	553	563	587	549
Number of properties	117	109	101	100	100	97	92	90	93	97
Lettable area, thousand sq.m.	726	678	646	620	621	602	587	600	571	566

Greater Stockholm													Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.		value sidiary Note
OFFICE/RETAIL
2 Betongblandaren 3	Gårdsfogdevägen 16	Stockholm	2001 1971	2,953	3,242	175	–	–	–	6,370	2,722	39,800 BRO
3 Betongblandaren 10	Archimedesv 1-3/ Gårdsfogdev 8-10	Stockholm	2005 1975/1996	1,675	10,437	2,142	–	–	30	14,284	15,170	124,600 BRO
4 Betongblandaren 12	Gårdsfogdevägen 18 B Stockholm		1998 1972	7,263	–	135	–	–	–	7,398	3,679	63,400 BRO
5 Betongblandaren 13	Adolfbergsvägen 15, 25-31Stockholm		<1995 1989	7,239	2,335	1,245	–	–	–	10,819	7,690	77,300 BRO
6 Domnarvet 18	Fagerstagatan 11-13	Stockholm	2012 1991	5,527	103	–	–	–	–	5,630	6,640		– BRO T
7 Domnarvet 36	Fagerstagatan 15	Stockholm	2012 1991	3,488	–	317	–	–	–	3,805	3,071	27,105 BRO T
8 Fredsfors 14	Karlsbodavägen 39-41 Stockholm		<1995 1960	11,216	–	6,774	–		– 1,443	19,433	7,073	95,800 BRO
9 Lisenen 2	Hässelby Torg 1	Stockholm	2011 1982/1995	2,299	–	–	–	–	–	2,299	1,104		– BRO T
10 Vallonsmidet 8	Gårdsfogdevägen 1-7 Stockholm		<1995 1963/1992	13,118	2,789	6,992	–	–	10	22,909	29,425	166,700 BRO B
11 Ekenäs 1	Finlandsgatan 24-48	Stockholm	<1995 2003	18,762	540	–	–	–	8	19,310	9,631	288,200 BRO T
12 Ekenäs 2	Finlandsgatan 12-14	Stockholm	<1995 1989	4,652	–	25	–	–	–	4,677	1,987	50,200 BRO T
13 Ekenäs 3	Finlandsgatan 10	Stockholm	<1995 1989	3,580	–	740	–	–	–	4,320	4,792	46,716 BRO T
14 Ekenäs 4	Finlandsgatan 16-18	Stockholm	<1995 1991	7,527	100	444	–	–	–	8,071	2,255	86,800 BRO T
15 Karis 3	Finlandsgatan 62	Stockholm	2001 1989	2,881	–	425	–	–	90	3,396	2,248	34,800 BRO T
16 Karis 4	Finlandsgatan 50-60	Stockholm	2000 1985	4,630	516	104	–	–	10	5,260	3,920	57,000 BRO T
17 Sätesdalen 2	Norgegatan 2	Stockholm	2006 1990/2001	10,277	500	784	–	–	212	11,773	10,812	91,000 BRO T
18 Getholmen 2	Måsholmstorget 1-13	Stockholm	<1995 1990	5,367	–	356	–	–	–	5,723	3,195	55,600 BRO T
19 Hästholmen 2	Ekholmsvägen 23	Stockholm	<1995 1985	1,215	–	–	–	–	–	1,215	1,839		9,841 BRO T
20 Renseriet 25	Bolidenv 12, 16/Tjurhornsgr 3Stockholm		<1995 1910/1965	2,660	436	872	247	–	–	4,215	7,978	26,702 BRO B
22 Tjurhornet 15	Huddingevägen 103-109Stockholm		<1995 1986	18,854	575	3,807	–	–	–	23,236	13,314	169,176 BRO
23 Mandelblomman 15	Avestag 29/Kronofogdev 56 Stockholm		<1995 1950/1990	3,321	–	300	–	–	–	3,621	4,364	23,978 BRO
24 Drevern 1 & Dvärgsp. 1 Gråhundsvägen 82-84		Stockholm	<1995 1970/1995	1,215	2,745	–	–	–	–	3,960	5,729	32,000 BRO
25 Getholmen 1	Ekholmsvägen 32-36	Stockholm	1998 1982	5,842	–	2,250	–	–	–	8,092	4,717	55,628 BRO T
27 Domnarvet 39	Gunnebogatan 24-26	Stockholm	<1995 1989	1,267	–	1,386	–	–	–	2,653	1,940	17,893 BRO T
109 Rosteriet 5	Lövholmsv 9, Trekantsv 9Stockholm		2012 1956	–	–	3,270	–	–	–	3,270	2,390	27,200 BRO T
28 Gräslöken 1	Anderstorpsv 20-26	Solna	2006 1976	6,166	621	233	–	–	–	7,020	1,288	65,600 BRO
29 Råsten 4	Råstensg 1/Stureg 10	Sundbyberg	2007 1929/2001	2,700	–	–	–	–	–	2,700	1,111	35,000 BRO
30 Yrket 4	Smidesvägen 10-12	Solna	2006 1982/1984	9,485	–	895	–	–	404	10,784	8,774	112,200 BRO B
31 Ekplantan 4	Djupdalsvägen 1-7	Sollentuna	1996 1990	8,474	1,291	165	–	–	400	10,330	8,595	80,725 BRO
32 Ekstubben 21 & 23	Djupdalsvägen 10-18, 30-32, 20-22	Sollentuna	1999 1989	6,160	–	107	–	–	110	6,377	3,069	58,882 BRO
33 Ekstubben 25	Djupdalsvägen 24-26	Sollentuna	2011 1987/1988	1,050	–	–	–	–	–	1,050	534		– BRO
35 Ringpärmen 4	Bergskällavägen 32	Sollentuna	1996 1987	10,825	600	1,188	–	–	–	12,613	12,206	93,000 BRO
36 Sjöstugan 1	Sidensvansvägen 8-10 Sollentuna		1996 1990	4,352	–	1,946	–	–	–	6,298	9,156	50,200 BRO
37 Altartorpet 22	Jägerhorns Väg 6	Huddinge	1996 1986	818	1,267	630	–	–	–	2,715	5,767	34,800 BRO T
38 Altartorpet 23	Jägerhorns Väg 8	Huddinge	1996 1987	1,315	2,906	–	–	–	–	4,221	5,756	57,700 BRO T
39 Arrendatorn 15	Jägerhorns Väg 3-5	Huddinge	2001 1987	509	650	210	–	–	–	1,369	2,422	8,843 BRO
40 Arrendatorn 16	Jägerhorns Väg 1	Huddinge	<1995 1987	628	747	130	–	–	–	1,505	2,803	9,362 BRO
42 Varpen 8	Smista Allé 36	Huddinge	1997 2009	–	–	–	11,290	–	–	11,290	6,900	47,411 BRO B
43 Riggen 2	Botkyrkavägen 4	Huddinge	2012 1991	5,275	–	150	–	–	32	5,457	5,901	33,200 BRO
44 Varpen 8 C	Smista Allé 32	Huddinge	1997 2010	–	–	–	1,390	–	–	1,390	3,100	11,190 BRO
45 Visiret 2 A	Smista Allé 44	Huddinge	2004 2004	–	–	–	2,690	–	–	2,690	4,890	19,704 BRO
46 Visiret 2 B&C	Smista Allé 42	Huddinge	1997 2006	–	–	–	7,500	–	–	7,500	13,747	62,000 BRO
47 Visiret 2 F	Smista Allé 46-48	Huddinge	1997 2009	–	–	–	4,895	–	–	4,895	8,241	39,600 BRO
	48 Hammarby-Smedby 1:454 Johanneslundsvägen 2-6Uppl-Väsby		2006 1991	8,315	–	132	–	–	–	8,447	10,460	66,600 BRO
	49 Hammarby-Smedby 1:461 Johanneslundsvägen 3-5Uppl-Väsby		2006 1988	3,656	676	232	–	–	–	4,564	6,798	32,400 BRO
50 Veddesta 2:22	Nettovägen 7	Järfälla	<1995 1965/1975	508	–	–	–	–	–	508	1,782	2,335 BRO

Greater Stockholm														Tax Mgmt.
Name of property	Address	Municipality	Acquis- Build/	year Recon.year	Offi ce			Square metres per type of premises Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	assessment Sub	value sidiary Note
51 Veddesta 2:23	Nettovägen 1	Järfälla		<1995 1971/1985	–	4,342	1,769	–	–	–	6,111	7,063	30,000 BRO
52 Veddesta 2:58	Fakturavägen 5	Järfälla		2007 1985/1995	980	–	–	–	–	–	980	2,452		6,574 BRO
53 Veddesta 2:66	Girovägen 13	Järfälla	2010 1989		3,183	–	250	–	–	8	3,441	7,422	22,415 BRO
54 Sicklaön 393:4	Vikdalsvägen 50	Nacka	<1995 1990		3,584	–	421	–	–	–	4,005	10,819	42,400 BRO
55 Sicklaön 394:5	Vikdalsgränd 10	Nacka	1996 1991		1,659	–	151	–	–	–	1,810	4,125	16,269 BRO
52 Veddesta 2:58	Fakturavägen 5	Järfälla		2007 1985/1995	980	–	–	–	–	–	980	2,452		6,574 BRO
53 Veddesta 2:66	Girovägen 13	Järfälla	2010 1989		3,138	–	250	–	–	8	3,396	7,422	22,415 BRO
54 Sicklaön 393:4	Vikdalsvägen 50	Nacka	<1995 1990		3,584	–	421	–	–	–	4,005	10,819	42,400 BRO
55 Sicklaön 394:5	Vikdalsgränd 10	Nacka	1996 1991		1,654	–	151	–	–	–	1,805	4,125	16,269 BRO
Total offi ce/retail					226,470	37,418	41,152	28,012		0 2,757	335,809		312,866 2,705,849
WAREHOUSE/INDUSTRIAL
56 Charkuteristen 5	Hallvägen 21	Stockholm	2001 1955		1,520	–	5,447	–	–	–	6,967	4,213	19,740 BRO		T
57 Charkuteristen 6	Slakthusgatan 20	Stockholm	2001 1955		–	1,066	1,139	186	–	–	2,391	1,665	6,726 BRO		T
58 Charkuteristen 8	Slakthusgatan 22	Stockholm	2001 1968		548	–	4,717	–	–	–	5,265	2,582	15,533 BRO		T
59 Linde Torp 8	Bolidenvägen 8-10	Stockholm	<1995 1929		574	67	1,141	–	–	–	1,782	7,350	14,486 BRO		B
60 Sandhagen 6	Slakthusgatan 9	Stockholm	2001 1967		1,531	–	2,659	–	–	–	4,190	1,728	14,184 BRO		T
61 Domnarvet 4	Domnarvsgatan 27-29 Stockholm		<1995 1987		1,882	–	5,422	–	–	447	7,751	8,605	34,332 BRO		T
62 Domnarvet 27	Fagerstagatan 19 B	Stockholm	<1995 1982		–	–	–	1,950	–	–	1,950	4,337	8,962 BRO		T
63 Domnarvet 28	Fagerstagatan 19 C	Stockholm	2010 1986		–	–	–	3,720	–	–	3,720	7,272	14,225 BRO		T
64 Mandelblomman 16	Kronofogdevägen 62	Stockholm	2007 1974		1,011	–	1,938	940	–	–	3,889	4,125	12,993 BRO
65 Stensätra 7	Strömsätravägen 16	Stockholm	1999 1974		–	–	5,288	–	–	–	5,288	10,212	19,200 BRO		T
66 Dagskiftet 4	Elektravägen 10	Stockholm	2007 1945		358	–	1,352	–	–	–	1,710	1,892	4,930 BRO		T
67 Elektra 3	Västbergavägen 25	Stockholm	<1995 1946		1,174	235	6,045	–	–	–	7,454	10,106	20,781 BRO
68 Godståget 1	Transportvägen 7-9	Stockholm	<1995 1985		1,818	–	10,830	400	–	–	13,048	31,392	77,503 BRO
69 Furudal 4	Fagerstagatan 10	Stockholm	2010 2008		–	–	–	1,237	–	–	1,237	2,051	5,807 BRO		T
70 Lagerhallen 2	Brunnbyv.2-4/Partihand larv. 27-45	Stockholm	2004 1975		2,194	–	7,560	–		– 3,609	13,363	9,512	47,466 BRO		T
26 Landningsbanan 3	Flygfältsgatan 18, 20	Stockholm	2010 1984		–	–	1,000	–	–	–	1,000	2,208	6,161 BRO		T
71 Ostmästaren 2	Ostmästargränd 4	Stockholm	2012 1980		–	–	3,292	–	–	–	3,292	5,915	16,453 BRO		T
72 Torngluggen 1	Bällstavägen 159/ Tornväktargränd 1-9	Stockholm		<1995 1963/1983	–	–	1,900	–	–	–	1,900	3,898	6,541 BRO		T
73 Tornluckan 1	Tornväktargränd 6	Stockholm	<1995 1960		–	–	810	–	–	–	810	927	3,466 BRO		T
74 Vagnhallen 19	Jämtlandsgatan 131	Stockholm		2006 1963/1974	–	–	–	5,544	–	–	5,544	5,177	15,961 BRO		T
75 Instrumentet 1	Fabriksvägen 9	Solna		2006 1955/2005	–	–	–	3,673	–	–	3,673	2,065	17,282 BRO
108 Elementet 3	Bäckvägen 20	Sollentuna	2012 1963		722	–	1,222	764	–	–	2,708	2,624	14,766 BRO
76 Elementet 4	Bäckvägen 18	Sollentuna	<1995 1960		1,084	190	9,794	–	–	–	11,068	18,469	29,896 BRO
77 Revisorn 4	Bergkällavägen 33	Sollentuna	2011 1988		–	–	–	2,635	–	–	2,635	6,915	15,827 BRO		B
78 Tidskriften 2	Kuskvägen 2	Sollentuna	1997 1976		1,231	2,894	5,673	–	–	–	9,798	18,203	70,322 BRO
79 Rosersberg 2:21-22	Rosersbergsv 43-45	Sigtuna	1996 1990		–	–	2,126	–	–	–	2,126	5,240	7,799 BRO
81 Rosersberg 11:34	Tallbacksgatan 14	Sigtuna		1996 1987/1990	464	–	36,139	–	–	–	36,603	92,299	112,216 BRO
83 Bredgården 1:7	Jättevägen 4	Järfälla	2010 1978		111	294	–	3,039	–	260	3,704	9,213	17,200 BRO
102 Veddesta 1:9 84 Veddesta 2:17	Fakturavägen 2 Nettovägen 9	Järfälla Järfälla	2007 1965 2006 1968		– –	– –	591 1,338	1,612 –	– –	– –	2,203 1,338	3,731 5,350	4,954 BRO 5,452 BRO
85 Veddesta 2:19	Girovägen 9	Järfälla	<1995 1964		–	–	2,556	–	–	–	2,556	10,000	14,464 BRO
86 Veddesta 2:21	Nettovägen 5	Järfälla		<1995 1965/1988	150	–	1,742	–	–	–	1,892	5,000	8,407 BRO
87 Veddesta 2:26	Nettovägen 11	Järfälla	<1995 1968		775	190	1,978	–	–	–	2,943	7,000	12,726 BRO
88 Veddesta 2:49	Girov 11	Järfälla	2010 1981		–	–	1,263	2,371	–	–	3,634	9,250	20,799 BRO		T
89 Veddesta 2:50	Kontov 7/Veddestav 23-25Järfälla		<1995 1964		909	–	2,884	857	–	–	4,650	21,889	24,741 BRO		B
90 Veddesta 2:60	Fakturavägen 4	Järfälla	2007 1987		480	–	155	324	–	63	1,022	1,099	5,872 BRO		T
91 Veddesta 2:68	Fakturavägen 6	Järfälla	2012 1990		239	–	2,546	–	–	–	2,785	2,801	14,889 BRO
92 Veddesta 2:77	Fakturavägen 1-3	Järfälla		2007 1994/1997	1,000	–	4,215	–	–	–	5,215	14,857	36,529 BRO
106 Elektronen 1	Hovslagarevägen 5	Sollentuna		2012 1957/1987	261	–	450	1,409	–	–	2,120	3,639	11,159 BRO
107 Elektronen 4	Hovslagarevägen 3A-B Sollentuna			2012 1958/1992	855	–	1,042	1,850	–	–	3,747	5,273	19,754 BRO
34 Ringpärmen 3	Bergskällavägen 30	Sollentuna	2005 1986		895	–	2,091	953	–	240	4,179	7,918	19,736 BRO
41 Ellipsen 3	Ellipsvägen 11	Huddinge	2001 1993		2,000	–	1,458	–	–	–	3,458	3,904	16,910 BRO
111 Slipstenen 1	Fräsarv 19/Slipstensv 4-8 Huddinge		2012 2006		–	–	2,808	–	–	–	2,808	11,442	15,986 BRO
93 Skälby 2:9	Instrumentvägen 2	Uppl-väsby	2010 1984		697	–	–	2,486	–	–	3,183	7,720	17,661 BRO		T
94 Hantverkaren 2	Hantverkarvägen 9	Botkyrka		<1995 1976/1979	–	–	–	5,790	–	–	5,790	11,672	20,628 BRO
95 Kumla Hage 3	Kumla Gårdsväg 24 A-B Botkyrka		<1995 1985		–	–	1,889	–	–	–	1,889	3,959	6,965 BRO
96 Kumla Hage 13	Kumla Gårdsväg 24 C	Botkyrka	<1995 1990		–	–	1,630	–	–	–	1,630	3,258	7,066 BRO
98 Saltmossen 3	Kumla Gårdsväg 21	Botkyrka		<1995 1983/1986	–	–	23,008	3,453	–	–	26,461	57,214	114,502 BRO
110 Segersby 1	Kumla Gårdsväg 10	Botkyrka	2012 1976		325	–	11,694	–	–	–	12,019	24,104	35,837 BRO
99 Skarpnäs 5:10	Skarpövägen 14	Nacka	2010 2008		2,301	–	2,247	1,274	–	–	5,822	7,491	22,492 BRO
Total warehouse/industrial					23,225		4,844 147,657	38,176		0 4,445	218,347	435,207	903,994

Greater Stockholm												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	value sidiary Note
DEVELOPMENT PROJECTS
100 Alphyddan 11	Bällstavägen 28-36	Stockholm	1997 1964	4,363	–	–	–	–	–	4,363	4,126	16,615 BRO
1 Archimedes 1	Gårdsfogdevägen 2-6 Stockholm		1996 1979	13,108	2,144	2,645	310	–	–	18,207	13,663	106,171 BRO
101 Linaberg 15	Alpvägen 17	Stockholm	1999 1973	2,349	–	1,990	–	–	–	4,339	5,448	18,413 BRO T
105 Åby 1:223	Cementvägen 7	Haninge	2011 –	–	–	–	6,552	–	–	6,552	10,209	1,965 BRO
112 Palissaden 4	Palissadv. 2-8/Smista Allé 28Huddinge		1997 –	–	–	2,184	–	–	–	2,184	3,458	3,285 BRO
104 Visiret 2 D	Smista Allé	Huddinge	1997 –	–	–	–	–		– 12,357	12,357	5,000	1,088 BRO
Total development projects				19,820	2,144	6,819	6,862		0 12,357	48,002	41,904	147,537
UNDEVELOPED LAND
103 Rankan 3-4	Sollentunaholmsvägen 1-7Sollentuna		1997 –	–	–	–	–	–	–	–	88,355	57,000 BRO B
104 Smista Park	Smista Allé	Huddinge	2011 –	–	–	–	–	–	–	–	45,277	23,929 BRO B
Total undeveloped land				0	0	0	0	0	0	0	133,632	80,929
Total Greater Stockholm				273,399		44,498 231,050	81,341		0 19,733	650,021		997,168 4,042,602

Castellum´s Real Estate Portfolio in Greater Stockholm 31-12-2012

									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
North	22	133	181	1,355	79.0%	142	51	389	91
West	10	104	144	1,389	69.7%	101	29	279	72
South	19	99	144	1,464	90.7%	131	29	287	102
Total offi ce/retail	51	336	469	1,398	79.8%	374	109	325	265
Warehouse/industrial
North	26	129	123	956	84.3%	104	28	212	76
West	4	12	12	1,029	64.4%	8	2	210	6
South	20	125	120	952	95.4%	114	28	222	86
Total warehouse/industrial	50	266	255	957	88.5%	226	58	216	168
Total	101	602	724	1,203	82.8%	600	167	277	433
Leasing and property administration							40	67	– 40
Total after leasing and property administration							207	344	393
Development projects	6	48	32	–	–	14	6	–	8
Undeveloped land	2	–	–	–	–	–	–	–	–
Total	109	650	756	–	–	614	213	–	401

Property related key ratios

2012	2011	2010	2009	2008	2007	2006	2005	2004	2003
1,203	1,181	1,154	1,175	1,144	1,090	1,038	999	1,031	1,044
82.8%	82.2%	82.8%	84.8%	84.0%	81.2%	81.3%	83.1%	84.5%	87.0%
344	362	345	347	343	325	338	315	339	332
652	609	611	650	618	560	506	515	532	576
109	100	97	90	90	87	80	73	70	70
650	573	569	534	535	517	501	442	422	403

Mälardalen												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	value sidiary Note
OFFICE/RETAIL
1 Boländerna 5:12	Fålhagsleden 51	Uppsala	2010 1983/1996	5,905	–	286	–	–	–	6,191	15,251	38,454 ASP B
2 Boländerna 8:6	Knivstagatan 6	Uppsala	2008 1990	2,481	–	–	–	–	–	2,481	3,806	17,342 ASP
3 Boländerna 8:11	Bergsbrunnagatan 15	Uppsala	2008 1975	3,989	485	3,376	–	–	–	7,850	11,535	9,018 ASP
4 Boländerna 9:1	Märstagatan 2	Uppsala	2008 1946/2005	1,737	–	537	–	–	–	2,274	2,890	– ASP
5 Boländerna 11:5	Märstagatan 7	Uppsala	2011 1975	2,407	–	–	–	–	–	2,407	4,346	– ASP B
8 Boländerna 28:4 A	Verkstadsgatan 9	Uppsala	2003 1987	–	–	4,100	–	–	–	4,100	10,981	44,424 ASP B
7 Boländerna 28:4 B	Verkstadsgatan 11	Uppsala	2003 2002	2,124	–	–	–	–	–	2,124	4,500	24,000 ASP
6 Boländerna 30:2	Verkstadsgatan 9	Uppsala	2000 1971	–	24,656	1,064	–	–	–	25,720	61,524	242,800 ASP
10 Boländerna 35:2	Bolandsgatan 20	Uppsala	<1995 1981	–	4,118	–	–	–	–	4,118	9,600	42,800 ASP
11 Boländerna 36:2	Danmarksgatan 20	Uppsala	2011 1982	–	2,400	–	–	–	–	2,400	3,204	13,867 ASP
12 Dragarbrunn 16:2	Dragarbrunns Torg 2-6/ Klosterg 13-15	Uppsala	2004 1963	4,616	1,798	184	–	–	129	6,727	2,209	106,200 ASP
13 Dragarbrunn 20:2	Kungsg/St Persg	Uppsala	1999 1963	2,462	767	46	–	–	–	3,275	921	– ASP
120 Dragarbrunn 21:1 & 21:5S:t Persgatan 21		Uppsala	2012 1970	7,236	–	24	–	–	–	7,260	4,747	7,287 ASP
15 Kungsängen 24:3	Kungsgatan 95	Uppsala	<1995 1998	696	5,665	–	–	–	13	6,374	15,284	45,800 ASP
16 Kungsängen 29:1	Kungsgatan 70	Uppsala	1997 1985	2,413	1,901	160	–	–	–	4,474	8,966	24,800 ASP
17 Kungsängen 35:3	Kungsgatan 76	Uppsala	1998 2001	3,060	–	–	–	–	–	3,060	4,547	21,500 ASP
18 Kvarngärdet 64:3	Sportfältsvägen 3	Uppsala	1996 1991	1,965	–	–	–	–	–	1,965	2,955	12,825 ASP
19 Årsta 36:2	Möllersvärdsgatan 12	Uppsala	<1995 1978/1989	1,346	–	1,538	–	–	–	2,884	5,143	11,595 ASP
20 Årsta 36:7	Hanselligatan 6	Uppsala	2007 1986	388	–	1,873	–	–	–	2,261	3,358	9,416 ASP
21 Årsta 67:1	Stålgatan 8-12	Uppsala	<1995 1988	151	10,605	666	–	–	–	11,422	31,608	52,848 ASP
22 Årsta 72:3	Svederusgatan 1-4	Uppsala	1997 1990	2,195	1,792	4,619	–	–	28	8,634	10,792	33,561 ASP
23 Årsta 74:1	Fyrislundsgatan 68	Uppsala	1999 1985	–	6,853	–	–	–	–	6,853	15,268	37,200 ASP
24 Årsta 74:3	Axel Johanssons Gata 4-6Uppsala		<1995 1990	13,055	238	161	–	–	490	13,944	17,212	81,600 ASP
25 Årsta 78:1	Fyrislundsgatan 73	Uppsala	2011 2000	2,838	–	–	–	–	–	2,838	4,156	15,865 ASP
26 Basen 10	Fridhemsgatan 2-4	Örebro	<1995 1900/1990	6,164	–	100	–	–	–	6,264	4,997	41,400 ASP
27 Borgaren 1	Fabriksgatan 1 A	Örebro	2008 1969/2001	6,540	–	1,100	–	–	847	8,487	3,375	64,604 ASP
28 Inköparen 1	Södra Infarten	Örebro	2007 2008	3,344	6,125	–	–	–	–	9,469	22,500	38,399 ASP
29 Järnmalmen 1	Osmundgatan 10	Örebro	2006 1967/1995	2,695	–	7,835	–	–	–	10,530	47,714	24,530 ASP B
30 Konstruktören 11	Söderleden 14	Örebro	<1995 1987	1,715	–	–	–	–	–	1,715	7,876	6,883 ASP
31 Kontrollanten 9	Åbyvägen 3	Örebro	2007 1992	3,713	–	1,106	–	–	–	4,819	11,974	13,268 ASP
32 Lagerchefen 3	Aspholmsvägen 3	Örebro	1996 1957/1985	–	1,900	–	–	–	–	1,900	9,213	9,519 ASP B
33 Lantmannen 7	Boställsvägen 10	Örebro	<1995 1985	72	2,248	250	–	–	–	2,570	8,573	9,705 ASP
34 Motormannen 1	Radiatorvägen 1	Örebro	<1995 1966	293	3,446	410	–	–	–	4,149	10,501	15,385 ASP
35 Röda rummet	Radiatorvägen 17	Örebro	1996 2000	3,405	–	–	–	–	–	3,405	7,710	22,270 ASP
36 Rörläggaren 1	Aspholmsvägen 4	Örebro	<1995 1963/1992	–	–	–	5,180	–	–	5,180	15,881	15,177 ASP B
37 Rörmokaren 1	Elementvägen 13-15	Örebro	<1995 1963/1986	110	–	–	3,735	–	–	3,845	10,432	11,568 ASP
38 Rörmokaren 5	Elementvägen 1	Örebro	<1995 1984	1,297	1,023	–	–	–	–	2,320	6,656	9,861 ASP
39 Signalen 6	Propellervägen 1	Örebro	2006 1991	1,776	–	–	–	–	–	1,776	4,151	9,957 ASP
40 Stinsen 18	Fabriksgatan 18-22	Örebro	2008 1983/2003	12,079	–	78	–	–	102	12,259	5,008	104,600 ASP B
41 Svetsaren 4	Elementvägen 12	Örebro	<1995 1976/1984	–	1,695	2,590	–	–	–	4,285	9,644	12,268 ASP
42 Svetsaren 5	Elementvägen 14	Örebro	<1995 1977/1988	2,885	–	169	–	–	–	3,054	7,355	10,548 ASP
43 Svetsaren 6	Radiatorvägen 14	Örebro	2000 1962	5,625	–	–	–	–	–	5,625	7,956	45,581 ASP
47 Telemontören 1	Nastagatan 2	Örebro	2007 1993	3,677	–	2,822	–	–	–	6,499	30,750	17,603 ASP B
48 Tryckeriet 2	Stortorget 8	Örebro	2008 1984/1999	1,400	847	–	–	–	387	2,634	1,350	29,200 ASP

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

Mälardalen												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	value sidiary Note
49 Tågmästaren 25	Fabriksgatan 54	Örebro	2008 1986	6,200	130	1,089	–	–	6	7,425	8,110	31,600 ASP B
50 Vindrutan 1	Västhagagatan 3	Örebro	1996 1992	–	1,230	85	–	–	–	1,315	10,062	8,283 ASP
51 Virkeshandlaren 7	Radiatorvägen 11	Örebro	<1995 1970/1987	5,431	330	427	–	–	–	6,188	15,377	24,674 ASP
52 Virkeshandlaren 10	Radiatorvägen 13-15	Örebro	1996 1979	2,804	3,565	960	–	–	–	7,329	20,242	27,694 ASP
53 Ånsta 20:117	Aspholmsvägen 9	Örebro	1996 1990	743	–	–	–	–	–	743	1,907	3,017 ASP
54 Ölstånkan 11	Järntorgsgatan 1	Örebro	2008 1939/2003	3,940	–	580	–	–	–	4,520	937	28,800 ASP
55 Ölstånkan 14	Olaigatan 2	Örebro	2008 1929	2,194	–	–	–	–	–	2,194	852	16,500 ASP
56 Ölstånkan 15	Olaigatan 4	Örebro	2008 1975/2003	3,101	–	–	–	–	–	3,101	1,517	22,000 ASP
57 Blästerugnen 2	Kokillgatan 7	Västerås	1997 1991	–	1,894	–	–	–	–	1,894	11,045	8,314 ASP T
58 Dagsländan 11	Jonasborgsvägen 26	Västerås	1996 1990	1,106	–	–	–	–	–	1,106	3,651	6,061 ASP T
59 Degeln 1	Kokillgatan 1-3	Västerås	1996 1984	4,599	1,050	700	181	–	–	6,530	26,917	26,355 ASP T
60 Elenergin 1	Elledningsgatan 2	Västerås	2008 1976	–	1,787	–	3,413	–	–	5,200	26,290	13,820 ASP B
61 Elledningen 4	Tunbytorpsgatan 31	Västerås	<1995 1991	3,590	–	–	–	–	–	3,590	10,256	16,279 ASP
62 Fallhammaren 1	Fallhammargatan 3	Västerås	<1995 1989	2,439	–	1,655	407	–	–	4,501	10,700	16,911 ASP
63 Friledningen 13	Tunbytorpsgatan 10	Västerås	1999 1978	390	1,440	750	–	–	–	2,580	7,000	7,195 ASP T
60 Elenergin 1	Elledningsgatan 2	Västerås	2008 1976	–	1,787	–	3,413	–	–	5,200	26,290	13,820 ASP B
61 Elledningen 4	Tunbytorpsgatan 31	Västerås	<1995 1991	3,590	–	–	–	–	–	3,590	10,256	16,279 ASP

Office/retail Warehouse/industrial Development projects and land

Mälardalen												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	value sidiary Note
62 Fallhammaren 1	Fallhammargatan 3	Västerås	<1995 1989	2,433	–	1,655	407	–	–	4,495	10,700	16,911 ASP
63 Friledningen 13	Tunbytorpsgatan 10	Västerås	1999 1978	390	1,440	390	–	–	–	2,220	7,000	7,195 ASP T/B
64 Gjutjärnet 7	Gjutjärnsgatan 5	Västerås	<1995 1989	–	2,005	151	260	–	135	2,551	10,517	8,525 ASP
65 Hjulsmeden 1	Gjutjärnsgatan 8	Västerås	<1995 1990	–	1,112	871	–	–	–	1,983	5,625	6,894 ASP
66 Jordlinan 2	Stenbygatan 6	Västerås	<1995 1991	179	2,050	6,155	480	–	–	8,864	21,467	19,603 ASP B
67 Kokillen 1	Kokillgatan 2	Västerås	1996 1988	545	1,165	1,295	–	–	–	3,005	11,975	11,146 ASP T
68 Kopparlunden	Kopparlunden	Västerås	2001 1890/2000	18,755	–	–	1,310	–	–	20,065	10,256	115,101 ASP
69 Kraftfältet 5	Omformargatan 2	Västerås	2005 1991	715	836	1,640	729	–	–	3,920	11,221	12,655 ASP
70 Köpmannen 1	Kranbyggargatan 1	Västerås	<1995 1984	–	320	–	1,095	–	–	1,415	5,804	4,536 ASP
71 Köpmannen 3	Kranbyggargatan 3	Västerås	<1995 1982	–	–	–	2,370	–	–	2,370	10,073	9,160 ASP T
72 Ringborren 8&16	Tallmätargatan 1	Västerås	<1995 1956/1988	1,445	355	–	1,853	–	–	3,653	9,019	11,897 ASP
73 Tunbytorp 1	Strömledningsgatan 1 Västerås		2005 1965	410	3,797	524	1,278	–	–	6,009	27,584	22,232 ASP T
74 Tunbytorp 7	Strömledningsgatan 3 Västerås		2005 1965	–	360	1,901	5,674	–	–	7,935	31,990	24,020 ASP T
75 Tunbytorp 19	Tunbytorpsgatan 2 A	Västerås	2005 1990	1,984	–	–	–	–	–	1,984	11,782	7,183 ASP
77 Vikingatiden 9	Brandthovdagatan 17 AVästerås		2007 2004	173	–	438	173	–	–	784	3,477	3,002 ASP
Total offi ce/retail					184,466 106,708	57,375	28,138		0 2,387	379,074		848,947 1,968,733

WAREHOUSE/INDUSTRIAL

78 Boländerna 12:1	Danmarksgatan 24	Uppsala	2011 1979	4,601	–	1,892	–	–	–	6,493	14,136	17,720 ASP B
79 Husbyborg 1:83	Gamla Börjevägen 2-16 Uppsala		2008 1972/1988	–	218	747	5,977	–	–	6,942	14,543	25,307 ASP
80 Årsta 38:1	Möllersvärdsgatan 5	Uppsala	<1995 1979	–	–	–	2,960	–	–	2,960	8,572	10,353 ASP B
81 Barkborren 3	Barkborregatan 3	Västerås	<1995 1970/1989	–	–	–	2,950	–	–	2,950	10,000	6,607 ASP T
82 Elkraften 4	Tunbytorpsgatan 16	Västerås	2005 1976	–	–	946	–	–	–	946	5,673	3,044 ASP T
83 Elkraften 6	Elledningsgatan 4	Västerås	2008 1981	–	–	1,150	–	–	–	1,150	8,025	3,383 ASP T
84 Elkraften 7	Energigatan 3 A	Västerås	2005 1976	250	–	–	1,070	–	–	1,320	5,073	3,325 ASP T
85 Elledningen 1	Tunbytorpsgatan 29	Västerås	1999 1982	–	1,200	710	–	–	–	1,910	8,300	5,394 ASP T
86 Friledningen 8	Tunbytorpsgatan 6	Västerås	2005 1971	235	–	599	1,534	–	–	2,368	11,243	6,026 ASP T
87 Friledningen 9	Tunbytorpsgatan 8	Västerås	2005 1968	647	990	2,115	1,400	–	–	5,152	9,995	15,316 ASP
88 Fältmätaren 29	Fältmätargatan 9	Västerås	2007 1960	810	–	–	2,257	–	–	3,067	10,173	8,279 ASP T
89 Järnåldern 6	Brandthovdagatan 11	Västerås	2008 1982	476	–	629	777	–	45	1,927	5,967	5,743 ASP T
90 Krista 1	Saltängsvägen 59	Västerås	2004 2005	–	–	–	2,980	–	–	2,980	11,500	13,078 ASP
91 Köpmannen 8	Lundby Gårdsgata 4	Västerås	2004 1988	–	–	880	1,805	–	–	2,685	9,957	8,208 ASP
92 Ledningstråden 1	Tunbytorpsgatan 1-3	Västerås	2005 1967	520	1,011	4,541	–	–	–	6,072	27,410	15,736 ASP T
93 Ledningstråden 6	Tunbytorpsgatan 23	Västerås	2005 1970	–	–	–	620	–	–	620	8,000	2,412 ASP T/B
94 Lufthammaren 1	Ånghammargatan 2-4	Västerås	1996 1977	3,894	–	1,803	1,646	–	–	7,343	17,055	22,000 ASP T
95 Tunbytorp 2	Tunbytorpsgatan 4	Västerås	2005 1970	–	–	1,548	1,825	–	647	4,020	19,191	9,117 ASP
96 Tunbytorp 8	Friledningsgatan 3 A	Västerås	2005 1970	–	–	830	–	–	–	830	5,825	2,669 ASP
97 Tunbytorp 10	Tunbytorpsgatan 4 A	Västerås	2005 1978	623	–	6,594	–	–	211	7,428	24,663	15,439 ASP
98 Voltmätaren 3	Lågspänningsgatan 7	Västerås	2006 1990	–	–	–	760	–	–	760	2,254	2,080 ASP
99 Ånghammaren 2	Ånghammargatan 1-9	Västerås	1996 1972/1994	1,180	520	4,739	6,996	–	135	13,570	35,738	25,119 ASP T
100 Bleckslagaren 1	Handelsgatan 9	Örebro	2012 1970	645	–	3,185	–	–	–	3,830	14,405	– ASP
101 Bleckslagaren 6	Handelsgatan 1	Örebro	2008 1982	–	–	–	4,326	–	–	4,326	22,243	12,635 ASP B
102 Bleckslagaren 8	Vattenverksgatan 8	Örebro	2006 1978/2001	–	–	–	4,750	–	–	4,750	24,878	15,968 ASP B
103 Chauffören 2	Stuvargatan 3	Örebro	1997 1991	500	–	6,600	–	–	–	7,100	16,974	20,147 ASP
104 Chauffören 3	Pikullagatan 9	Örebro	2006 1991	–	–	–	1,577	–	–	1,577	5,442	4,613 ASP
105 Distributören 7	Krangatan 1	Örebro	2012 1989	795	–	6,795	–	–	–	7,590	24,675	19,936 ASP
106 Däcket 1	Dialoggatan 14	Örebro	2008 2012	–	–	740	1,128	–	–	1,868	7,184	2,749 ASP

Mälardalen												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	value sidiary Note
107 Försäljaren 2	Nastagatan 9	Örebro	2012 2008	–	–	3,030	–	–	–	3,030	9,545	12,046 ASP B
108 Elektrikern 3	Vattenverksgatan 3	Örebro	2012 1972	–	–	8,440	–	–	–	8,440	18,823	14,011 ASP
109 Grosshandlaren 2	Nastagatan 6-8	Örebro	2001 1977	2,008	1,955	19,170	–	–	–	23,133	61,695	58,811 ASP B
110 Gällersta-Gryt 4:9	Gällerstavägen	Örebro	<1995 1969	–	–	–	11,625	–	–	11,625	42,143	20,247 ASP
111 Konstruktören 9	Söderleden 10	Örebro	1996 1987	–	–	1,260	–	–	–	1,260	3,573	4,212 ASP
112 Konstruktören 10	Söderleden 12	Örebro	<1995 1987	–	–	–	3,665	–	–	3,665	10,649	11,886 ASP
113 Kontrollanten 12	Skomaskinsgatan 6	Örebro	2012 1981	2,565	–	8,282	–	–	–	10,847	30,946	26,351 ASP
114 Litografen 1&2	Adolfsbergsvägen 4	Örebro	2012 1964	3,525	7,636	20,363	–	–	650	32,174	122,107	93,079 ASP B
115 Rörläggaren 2	Aspholmsvägen 6	Örebro	2004 1984	–	–	2,955	–	–	–	2,955	4,960	10,098 ASP
116 Ånsta 20:148	Berglunda 208	Örebro	2007 1971/1999	–	–	4,127	–	–	–	4,127	44,237	17,148 ASP B
Total warehouse/industrial				23,274		13,530 114,670	62,628		0 1,688	215,790	737,772	570,292

Office/retail Warehouse/industrial Development projects and land

Mälardalen												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	value sidiary Note
DEVELOPMENT PROJECTS
9 Boländerna 35:1	Bolandsgatan 18	Uppsala	2006 2006	–	8,131	250	–	–	–	8,381	26,193	41,847 ASP B
14 Dragarbrunn 20:4	Dragarbrunnsgatan 34 Uppsala		2010 2010	8,086	3,015	114		– 1,305	–	12,520	4,472	111,900 ASP
76 Verkstaden 14	Kopparlunden	Västerås	2001 2001	8,545	–	–	–	–	–	8,545	40,900	31,728 ASP B
Total development projects				16,631	11,146	364		0 1,305	0	29,446	71,565	185,475
UNDEVELOPED LAND
117 Försäljaren 3	Nastagatan 7	Örebro	2007 –	–	–	–	–	–	–	–	–	712 ASP B
118 Högspänningen 1	Lågspänningsgatan 8	Västerås	2007 –	–	–	–	–	–	–	–	22,500	3,901 ASP B
119 Boländerna 28:3	Verkstadsgatan 9	Uppsala	2004 –	–	–	–	–	–	–	–	3,347	1,171 ASP B
Total undeveloped land				0	0	0	0	0	0	0	25,847	5,784

Total Mälardalen 224,371 131,384 172,409 90,766 1,305 4,075 624,310 1,684,131 2,730,284

Office/retail Warehouse/industrial Development projects and land

Castellum´s Real Estate Portfolio in Mälardalen 31-12-2012

									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	24	142	179	1,264	88.1%	157	46	327	111
Örebro	31	147	156	1,059	97.3%	152	44	297	108
Västerås	20	90	89	983	90.3%	80	26	284	54
Total offi ce/retail	75	379	424	1,117	92.0%	389	116	305	273
Warehouse/industrial
Västerås	19	67	49	733	86.9%	43	16	240	27
Örebro	17	132	87	653	100.2%	87	21	155	66
Uppsala	3	17	16	979	90.5%	14	3	214	11
Total warehouse/industrial	39	216	152	703	94.8%	144	40	186	104
Total	114	595	576	967	92.7%	533	156	262	377
Leasing and property administration							30	50	– 30
Total after leasing and property administration							186	312	347
Development projects	3	29	34			25	11		14
Undeveloped land	3	–	–	–	–	–	–	–	–
Total	120	624	610	–	–	558	197	–	361

Property related key ratios

	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003
Rental value, SEK/sq.m.	967	982	934	928	859	807	778	766	794	762
Economic occupancy rate	92.7%	92.6%	90.6%	92.4%	93.0%	89.3%	88.4%	87.5%	87.8%	91.0%
Property costs, SEK/sq.m.	312	340	325	329	268	247	258	244	262	241
Net operating income, SEK/sq.m.	584	570	521	528	531	474	429	427	435	453
Number of properties	120	120	116	115	117	101	91	86	75	71
Lettable area, thousand sq.m.	624	560	545	516	519	432	410	384	338	333

Eastern Götaland												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	value sidiary Note
OFFICE/RETAIL
1 Droskan 12	Slottsgatan 14	Jönköping	1998 1990	9,370	–	–	–	–	–	9,370	4,951	81,000 COR
2 Elektronen 1	Datorgatan 6	Jönköping	2008 2000	524	–	1,168	–	–	–	1,692	4,237	5,284 COR B
3 Hotellet 8	V Storgatan 9-13	Jönköping	<1995 1963/1999	2,986	15,701	262	–	–	–	18,949	5,121	178,000 COR
4 Vagnmakaren 7	Hästhovsvägen 2	Jönköping	<1995 1983/2001	–	9,531	–	–	–	14	9,545	19,226	61,600 COR
5 Valutan 11	Kompanigatan 1-2	Jönköping	<1995 1992/2001	3,135	2,091	237	–	–	5	5,468	7,763	66,000 COR
6 Varuhuset 1	Batterigatan 2	Jönköping	2009 2009	–	11,041	–	–	–	–	11,041	42,046	77,000 COR
7 Vattenpasset 6	Kungsängsvägen 7	Jönköping	<1995 1971/1990	1,517	–	632	–	–	–	2,149	4,894	6,270 COR
8 Vilan 7	Huskvarnavägen 58-64 Jönköping		2000 1955/1999	9,354	1,003	4,356	–	–	–	14,713	25,576	70,650 COR
9 Visionen 3	Bataljonsgatan 10-12	Jönköping	2004 2010	7,353	–	352	–	–	–	7,705	12,269	80,600 COR
10 Visionen 3 fd 1	Bataljonsgatan 10	Jönköping	2004 1996/1995	9,495	–	423	–	–	236	10,154	27,568	39,985 COR
11 Vågskålen 3	Huskvarnavägen 40	Jönköping	2003 1983	8,201	–	7,512	–	–	–	15,713	42,536	30,529 COR B
12 Vägporten 5	Vasavägen 4	Jönköping	2003 1955/2004	251	2,076	–	–	–	–	2,327	8,458	10,945 COR
13 Ögongloben 5	Gräshagsgatan 11	Jönköping	2006 1961	3,512	–	–	–	–	–	3,512	7,346	5,080 COR
14 Örontofsen 5	Granitvägen 7-9	Jönköping	2006 1976	1,195	880	3,499	–	–	–	5,574	15,061	22,200 COR
15 Almen 9	Malmövägen 12-14	Värnamo	1997 1957/1989	1,075	11,304	–	–	–	78	12,457	23,702	41,447 COR
16 Bodarna 2	Myntgatan 8-10	Värnamo	<1995 1934/1991	1,433	373	–	–	–	–	1,806	1,186	11,455 COR
17 Bokbindaren 20	Västbovägen 56	Värnamo	<1995 1975/1991	2,167	–	394	–	–	–	2,561	11,385	6,183 COR
18 Drabanten 1	Nydalavägen 16	Värnamo	1997 1940/1986	230	1,028	–	–	–	–	1,258	2,971	2,963 COR
19 Gamla Gåsen 4	Boagatan 1	Värnamo	<1995 1907	–	–	–	–	–	200	200	1,903	1,322 COR B
20 Gillet 1	Flanaden 3-5	Värnamo	1996 1974	2,416	990	103		– 1,704	–	5,213	3,475	31,018 COR
21 Golvläggaren 2	Silkesvägen 30	Värnamo	2000 1991	734	–	–	–	–	–	734	5,190	2,066 COR
22 Golvläggaren 3	Silkesvägen 30	Värnamo	2000 2008	–	8,800	1,620	–	–	–	10,420	37,879	43,698 COR
23 Jungfrun 11	Köpmansg 3-7/Luddög 1 Värnamo		<1995 2001/1982	315	3,897	158	–	601	–	4,971	5,849	27,610 COR
24 Karpen 3	Jönköpingsvägen 105-107 Värnamo		1997 1956/1990	542	835	405	891	–	–	2,673	7,930	5,053 COR
25 Lejonet 11	Lasarettsg 1-5/ Storgatsbacken 23	Värnamo	2000 1987/1987	4,192	807	160	–	89	–	5,248	2,433	32,512 COR
90 Linden 1	Malmövägen 3	Värnamo	2001 –	–	1,140	–	–	–	–	1,140	3,728	1,430 COR
26 Linden 3	Växjövägen 24-26	Värnamo	<1995 1960/1989	2,350	560	2,264	–	–	–	5,174	9,286	13,784 COR
27 Ljuset 8	Nydalavägen 1-9	Värnamo	<1995 2003	–	2,590	–	–	–	–	2,590	9,674	12,109 COR
61 Mattläggaren 2	Silkesvägen 24	Värnamo	2000 1997	195	2,453	485	–	–	–	3,133	8,542	7,006 COR
28 Mon 13	Karlsdalsgatan 2	Värnamo	1997 1983	1,986	–	–	–	–	–	1,986	2,294	8,652 COR
29 Plattläggaren 1	Silkesvägen 18	Värnamo	2008 1989	1,180	–	–	–	–	–	1,180	5,994	2,884 COR
30 Rågen 1	Expovägen 6	Värnamo	<1995 1965/1990	2,361	–	2,836	–	–	–	5,197	8,919	10,479 COR
31 Vindruvan 4	Storgatsbacken 14-20/ Myntg 13 m fl	Värnamo	<1995 1982	610	2,954	–	–	437	–	4,001	4,717	21,067 COR
32 Vindruvan 22	Storgatsbacken 14-20/ Myntg 13 m fl	Värnamo	<1995 1982	–	7,262	–	–	–	5	7,267	3,394	36,800 COR
33 Vindruvan 15	Storgatsbacken 12	Värnamo	1997 1989	904	1,110	–	–	–	–	2,014	694	10,774 COR
34 Värnamo 14:11	Jönköpingsvägen 41-43 Värnamo		<1995 1917/1982	2,209	–	1,972	–	–	–	4,181	5,686	12,365 COR
35 Bagaren 10	Ljungadalsg 2/Hejareg 10 Växjö		2007 1987	27,423	–	2,335	–		– 1,170	30,928	89,222	152,669 COR B
36 Båken 1	Systratorpsvägen 16	Växjö	2006 1983	1,410	–	25	–	–	–	1,435	5,125	4,243 COR
37 Garvaren 4	Hjalmar Petris väg 32	Växjö	1999 1981	2,526	–	44	–	–	–	2,570	6,901	8,634 COR B
38 Glasmästaren 1	Arabygatan 80	Växjö	1999 1988	6,202	886	187	–	–	549	7,824	11,297	39,200 COR

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

Droskan 12, Jönköping

Hotellet 8, Jönköping otellet

Eastern Götaland												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	value sidiary Note
39 Nordstjärnan 1	Kronobergsgatan 18-20 Växjö		2002 1971/2000	5,981	–	149	–	–	–	6,130	2,425	47,400 COR
40 Plåtslagaren 4	Verkstadsgatan 5	Växjö	2002 1967/1988	2,243	780	686	1,893	–	–	5,602	10,000	13,389 COR
41 Rimfrosten 1	Solängsvägen 4	Växjö	2000 1972	42	6,686	1,922	–	–	–	8,650	58,671	26,200 COR B
42 Segerstad 4	Segerstadsvägen 7	Växjö	1998 1990	910	–	–	–	–	–	910	3,911	– COR
43 Sotaren 4	Arabygatan 82	Växjö	2002 1992	2,318	457	204	–	–	–	2,979	4,007	19,062 COR
44 Svea 8	Lineborgsplan 3	Växjö	1998 1982	2,061	–	–	–	–	–	2,061	3,938	14,140 COR
45 Unaman 8	Klosterg 6/Kungsg 3/ Sandgärdsg 6-8	Växjö	2006 1969	2,075	2,812	300	–	422	–	5,609	2,185	29,286 COR
46 Ödman 15	Storgatan 29	Växjö	2001 1972	2,380	1,941	–	–	–	–	4,321	2,661	39,200 COR
47 Idémannen 1	Teknikringen 16	Linköping	2007 1990	580	–	–	–	–	–	580	4,212	5,279 COR
48 Idémannen 2, Collegium Teknikringen 7		Linköping	2007 1989	12,134	4,136	–	–	–	732	17,002	27,823	124,000 COR
49 Idémannen 2, Datalinjen Datalinjen 1		Linköping	2007 1989/1994	1,591	–	–	–	–	–	1,591	4,590	11,083 COR
50 Idémannen 2, TeknikringenTeknikringen 1 A-F		Linköping	2007 1984/1996	6,652	–	–	–	–	55	6,707	19,720	52,546 COR
51 Idémannen 2, Vita Huset Universitetsvägen 14		Linköping	2007 2002	8,062	–	–	–	–	148	8,210	29,597	83,600 COR B
52 Magnetjärnet 6	Finnögatan 5 C	Linköping	2010 1996	2,388	–	–	–	–	–	2,388	8,328	8,644 COR B
Total offi ce/retail				168,770 106,124		34,690		2,784 3,253 3,192		318,813		688,496 1,756,395

WAREHOUSE/INDUSTRIAL
53 Elefanten 3	Rådjursvägen 6	Växjö	<1995 1988	–	–	1,384	934	–	–	2,318	8,940	5,863 COR
54 Illern 5	Isbjörnsvägen 11-13	Växjö	<1995 1987	885	–	406	855	–	–	2,146	5,276	7,460 COR
55 Isbjörnen 4	Isbjörnsvägen 6	Växjö	<1995 1993	–	–	–	10,933	–	–	10,933	30,505	31,067 COR
56 Sjömärket 3	Annavägen 3	Växjö	1998 1989	1,828	341	475	6,811	–	–	9,455	26,853	30,703 COR B
57 Snickaren 12	Smedjegatan 10-20	Växjö	1998 1976/1989	2,648	5,194	16,025	–	–	143	24,010	45,018	64,598 COR B
58 Draken 1	Ingelundsvägen 1	Värnamo	<1995 1968/1988	–	–	1,750	–	–	–	1,750	21,396	3,393 COR B
59 Flundran 4	Runemovägen 1	Värnamo	<1995 1963/1992	–	–	5,459	6,147	–	–	11,606	34,523	18,170 COR
60 Mattläggaren 1	Silkesvägen 24	Värnamo	2008 1997	–	–	–	2,700	–	–	2,700	8,655	6,703 COR B
62 Posten 4	Postgatan 3-5	Värnamo	<1995 1929	455	733	321	2,516	159	–	4,184	2,991	10,942 COR
63 Rödspättan 1	Runemovägen 10	Värnamo	2004 1973	545	–	4,160	–	–	–	4,705	12,975	7,786 COR
64 Rödspättan 4	Runemovägen 4	Värnamo	<1995 1980	–	–	2,960	–	–	–	2,960	7,122	4,516 COR
65 Sandskäddan 4	Margretelundsvägen 7 Värnamo		<1995 1982	–	–	2,780	–	–	–	2,780	8,005	4,424 COR
66 Sjötungan 3	Margretelundsvägen 6 Värnamo		1999 1989	–	–	2,570	–	–	–	2,570	14,524	4,907 COR B
67 Takläggaren 4	Rörläggarev 8/Silkesv 39Värnamo		<1995 1991	–	–	9,067	–	–	–	9,067	39,349	17,573 COR B
68 Takläggaren 8	Silkesvägen 43	Värnamo	2008 1999	–	–	–	6,995	–	–	6,995	24,814	21,519 COR B
69 Värnamo 14:2	Myntgatan 2	Värnamo	<1995 1982	–	–	–	–	–	–	–	1,000	– COR A
70 Yxan 4	Fabriksgatan 10-12	Värnamo	2005 1975	–	–	5,595	–	–	–	5,595	10,017	11,749 COR
71 Yxan 6	Fabriksgatan 4	Värnamo	<1995 1978/1990	–	–	1,477	–	–	–	1,477	11,699	3,134 COR B
72 Flahult 21:3	Momarken 42	Jönköping	2001 1980	–	–	3,824	–	–	170	3,994	24,177	12,284 COR B
73 Flahult 21:5	Betavägen 17	Jönköping	2012 1997/2008	–	–	9,023	–	–	–	9,023	36,847	30,585 COR B
74 Vargön 4	Vasavägen 5	Jönköping	2003 1989	–	–	–	4,070	–	–	4,070	6,694	8,803 COR
75 Vattenpasset 2	Ekhagsringen 17	Jönköping	<1995 1980	1,262	–	1,749	1,073	–	–	4,084	17,884	– COR
76 Vingen 4	Linnegatan 1	Jönköping	<1995 1970	555	530	–	2,815	–	–	3,900	17,281	11,264 COR B
77 Ögongloben 6	Kindgrensgatan 4	Jönköping	2008 1997	–	–	3,108	–	–	–	3,108	7,500	4,452 COR B
78 Österbotten 4	Skeppsbrogatan 6	Jönköping	<1995 1930/1991	385	–	72	2,369	–	118	2,944	6,972	6,305 COR
79 Överlappen 13	Kalkstensgatan 6-8	Jönköping	2004 1977/1995	2,105	–	275	3,376	–	–	5,756	22,575	21,582 COR
80 Överstycket 25	Kindgrensgatan 3	Jönköping	2008 1981	190	–	6,166	1,182	–	–	7,538	16,342	10,217 COR B
81 Marås 1:12	Maråsliden 7	Gnosjö	<1995 1960	–	–	–	1,140	–	–	1,140	3,335	402 COR

Eastern Götaland

Eastern Götaland												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	value sidiary Note
82 Töllstorp 1:561	Mobäcksvägen 2	Gnosjö	<1995 1946	–	–	–	4,290	–	–	4,290	7,995	5,632 COR
83 Törestorp 2:51	Kulltorpsvägen 25	Gnosjö	<1995 1946	–	–	–	14,310	–	–	14,310	55,273	15,912 COR B
84 Källemo 1	Källemogatan 12	Vaggeryd	<1995 1956/1988	147	–	7,405	–	–	–	7,552	48,347	9,056 COR B
85 Yggen 1	Krokvägen 1	Vaggeryd	<1995 1985/1989	–	–	–	6,303	–	–	6,303	18,598	8,422 COR
86 Pagoden 1	Ottargatan 10	Linköping	2008 1972/2002	–	–	1,668	1,732	–	–	3,400	9,000	6,634 COR B
Total warehouse/industrial				11,005	6,798	87,719	80,551	159	431	186,663	612,482	406,057

63 65 66 64 59 70 71 62 69 58 ^{61 60 67} 68 91 15 90 94 24 34 ^{18 27} 26 16 31 ^{33 25} 23 20 19 28 17 29 21 22 32 Alandsryd Norregård Västra Norregårds industriområde Östra Norregårds industriområde Margretelunds västra industriområde Margretelunds östra industriområde Margretelund Västhorja Ljusseveka Trälleborg Gröndal Hornaryd Hornaryds industriområde Sörsjö industri-Apladalen Centrum Vråen Amerika Nylund Prostsjön Lagan Lagan Lagan VÄRNAMO E4 E4 27 127 151 151 151

Office/retail Warehouse/industrial Development projects and land

Eastern Götaland												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment Sub
Name of property	Address	Municipality	year Recon.year	Offi ce			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	value sidiary Note
DEVELOPMENT PROJECTS
87 Atollen 3	V Storgatan 9-13	Jönköping	2011 –	–	–	–	–	–	–	–	870	– COR
88 Ättehögen 18	Fordonsvägen 8	Jönköping	2012 –	–	–	–	3,220	–	–	3,220	11,009	– COR
89 Gården 15	Gillbergagatan	Linköping	2009 –	6,105	–	3,600	–	–	–	9,705	34,706	6,800 COR
Total development projects				9,855	1,140	0	0	0	0	10,995	41,970	7,480
UNDEVELOPED LAND
91 Bleckslagaren 1	Repslagarevägen 5	Värnamo	2004 –	–	–	–	–	–	–	–	5,587	558 COR B
92 Bredasten 1	Värnamo	Värnamo	2008 –	–	–	–	–	–	–	–	19,915	– COR
93 Bredasten 2	Värnamo	Värnamo	2008 –	–	–	–	–	–	–	–	10,030	– COR
94 Värnamo 14:86	Myntgatan 6	Värnamo	<1995 –	–	–	–	–	–	–	–	2,641	– COR B
95 Postiljonen 2	Växjö	Växjö	2009 –	–	–	–	–	–	–	–	19,597	1,959 COR B
Total undeveloped land				0	0	0	0	0	0	0	57,770	2,517

Total Eastern Götaland 185,880 112,922 126,009 86,555 3,412 3,623 518,401 1,405,333 2,171,769

Office/retail Warehouse/industrial Development projects and land

Castellum´s Real Estate Portfolio in Eastern Götaland 31-12-2012

Area Rental Rental Ecomomic Rental Property Property No. of thous. value value occupancy income costs costs properties sq.m SEKm SEK/sq.m rate SEKm SEKm SEK/sq.m Offi ce/retail Jönköping 14 118 146 1,234 92.2% 134 34 291 Värnamo 22 85 73 856 89.5% 65 21 254 Växjö 12 79 68 858 87.6% 60 20 247 Linköping 6 37 42 1,158 87.2% 37 16 434 Total offi ce/retail 54 319 329 90.0% 296 91 1,031 287 Warehouse/industrial Växjö 5 49 33 678 74.6% 25 7 130 Värnamo 13 56 28 497 89.5% 25 5 95 Jönköping 9 44 25 549 84.8% 21 6 136 Rest of Eastern Götaland 6 37 12 332 89.2% 11 3 80 Total warehouse/industrial 33 186 98 524 83.2% 82 21 111 Total 87 505 427 844 88.4% 378 112 222 Leasing and property administration 24 47 Total after leasing and property administration 136 268					Net
					operating
					income
					SEKm
					100
					44
					40
					21
					205
					18
					20
					15
					8
					61
					266
					– 24
					242
Development projects 3 13 5 – – 3 0 –					3
Undeveloped land 5 – – – – – – –					–
Total 95 518 432 – – 381 136 –					245

Property value by property type Property value by municipality

Property related key ratios

	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003
Rental value, SEK/sq.m.	844	818	795	775	745	748	688	675	659	617
Economic occupancy rate	88.4%	88.4%	88.0%	90.0%	90.8%	90.4%	90.6%	90.0%	89.8%	91.3%
Property costs, SEK/sq.m.	268	272	268	275	261	269	239	213	198	193
Net operating income, SEK/sq.m.	478	451	432	422	416	407	384	395	393	370
Number of properties	95	95	96	95	93	82	76	73	76	74
Lettable area, thousand sq.m.	518	515	505	501	480	452	375	366	380	370

Castellum´s Real Estate Schedule 2012, Summary

		Square metres per type of premises
	Office	Retail	Warehouse	Industrial	Residential	Oth.	Totalt	Site sq.m.	ment value
Greater Gothenburg	405,459	58,504	448,320	169,437	8,246	12,954	1,102,920	2,129,751	6,057,644
Öresund Region	279,475	79,867	252,473	54,688	9,193	50,068	725,764	1,510,100	4,185,592
Greater Stockholm	273,399	44,498	231,050	81,341	0	19,733	650,021	997,168	4,042,602
Mälardalen	224,371	131,384	172,409	90,766	1,305	4,075	624,310	1,684,131	2,730,284
Eastern Götaland	185,880	112,922	126,009	86,555	3,412	3,623	518,401	1,405,333	2,171,769
Total Castellum	1,368,584	427,175	1,230,261	482,787	22,156	90,453	3,621,416	7,726,483	19,187,891

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

Properties sold in 2012

														Tax Mgmt.
			Acquis- Build/		Square metres per type of premises							assessment Sub
Name of property	Address	Municipality		year Recon.year	Offi ce			Retail Warehouse Industrial Residential		Other		Total Site sq.m.		value sidiaryNote
GREATER GOTHENBURG
Lorensberg 46:5	Kungsportsavenyen 7	Gothenburg	<1995 1930		276	694	–	–	–	–	970	348	25,200 EKL
Backa 192:3	Aröds Industriväg 72	Gothenburg	<1995 1989		119	–	1,214	–	–	–	1,333	3,630	4,681 EKL
Lindome 2:40	Elementvägen 2	Mölndal	<1995 1966		376	–	9,709	–	–	–	10,085	32,453	20,000 EKL	B
Lindome 2:47	Elementvägen 2	Mölndal	<1995 1966		–	–	1,835	510	–	–	2,345	15,141	8,202 EKL	B
Total Greater Gothenburg					771	694	12,758	510	0	0	14,733	51,572	58,083
MÄLARDALEN
Märsta 1:219	Raisogatan 1-27	Sigtuna	<1995 1993		2,784	–	–	–	883	–	3,667	4,053		36,387 ASP B
Märsta 16:3	Maskingatan 3	Sigtuna	<1995 1992		2,921	–	–	–	–	–	2,921	3,000	16,050 ASP
Broby 11:2	Östra Bangatan 6	Sigtuna	2007 1990		302	–	2,430	–	–	–	2,732	21,344		12,318 ASP B
Broby 11:8	Östra Bangatan 14	Sigtuna	<1995 1992		246	–	583	–	–	–	829	1,859	2,764 ASP
Märsta 16:2	Maskingatan 5-7	Sigtuna	1997 1989		600	–	1,013	–	–	–	1,613	3,500		5,507 ASP
Märsta 17:6	Maskingatan 8	Sigtuna		<1995 1970/1988	751	–	–	1,907	–	–	2,658	5,318		7,972 ASP
Märsta 21:54	Elkraftsgatan 11-13	Sigtuna	<1995 1990		–	–	–	2,200	–	–	2,200	6,517		9,043 ASP
Total Mälardalen					7,604	0	4,026	4,107	883	0	16,620	45,591	90,041
EASTERN GÖTALAND
Flahult 78:2	Momarken 12	Jönköping		<1995 1986/1990	–	–	2,136	1,531	–	–	3,667	16,143		11,394 COR B
Knekten 15	Jönköpingsvägen 21	Värnamo		1997 1971/1989	424	559	31	240	–	6	1,260	4,323		4,482 COR
Vindruvan 21	Storgatsb 14-20/Myntg 13 Värnamo		<1995 1982		553	831	30	–	1,726	0	3,140	2,744	19,975 COR
Bagaren 11	Ljungadalsg 2/Hejareg 10	Växjö	2007 –		–	–	–	–	–	–	–	8,160		– COR
Total Eastern Götaland					977	1,390	2,197	1,771	1,726	6	8,067	31,370	35,851
Total Castellum					9,352	2,084	18,981	6,388	2,609	6	39,420	128,533	183,975

Defi nitions

Actual net asset value (EPRA NNNAV)

Reported equity according to the balance sheet, adjusted for actual deferred tax instead of nominal deferred tax.

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.

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.

EPRA EPS (Earnings Per Share)

Income from property management adjusted for nominal tax attributable to income from property management, divided with the average number of shares. With taxable income from property management means income from property management with a deduction for tax purposes of depreciation and reconstruction.

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.

Long term net asset value (EPRA NAV)

Reported equity according to the balance sheet, adjusted for interest rate derivatives and deferred tax.

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 actual net asset value

Income after tax as a percentage of average actual net asset value during the year, but with actual deferred tax instead of nominal tax. In the interim accounts the return has been recalculated on an annual basis, disregarding seasonal variations normally occurring in operations.

Return on long term net asset value

Income after tax with reversed changes in value of derivatives and deferred tax of long term net asset value on average during the year. In the interim reports the return has been recalculated on annual basis, disregarding seasonal variations normally occuring in operations.

Return on total capital

Income before tax with reversed net financial items and changes in value on derivatives during the year as a percentage of average 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

Share price development with addition of the dividends during the period which was reinvested in shares that day shares traded ex-dividend.

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) Box 1824, 701 18 Örebro, Sweden Visiting address: Rörvägen 1 Phone: +46(0)19-27 65 00. Fax: +46(0)19-17 80 89 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: Tjurhornsgränd 6 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: Jönköpingsvägen 41 A 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