ANNUAL REPORT 2015

TEN WORDS ABOUT TWO THOUSAND FIFTEEN: High investment, strong finances, rewarded sustainability, stable growth, increased dividend.

Content

A strategy that creates value

PAGE 5 Castellum invests in and develops a real estate portfolio managed by six local companies. All operations occur at low financial and operational risk.

Castellum is one of Sweden's largest listed real estate owners; our real estate portfolio is valued at SEK 42 billion. PAGE 14

A continuously enhanced real estate portfolio

PAGE 20

Sound corporate governance is the foundation for a trusting relationship with shareholders and other key stakeholders. PAGE 78

Responsible growth – a matter of course

For a long-term owner like Castellum, it's a prerequisite to operate the business with a sustainability focus.

The audited legal Annual Report, which comprises Director's report and Financial reports, covers pages 4-116. Comparisons shown in brackets are made for corresponding amounts, previous year. EPRA's key ratios (European Public Real Estate Association) can be found under the section The Castellum Share. In the event of conflict in interpretation or differences between this report and the Swedish version, the latter will have priority.

Castellum 2015	1
CEO's comments	2
OPERATIONS
Business Concept, Objectives and Strategies	4
Real Estate Portfolio
Market comments	11
Castellum's markets	13
Castellum's real estate portfolio and result 2015	14
Joint venture	19
Investments	20
Sustainable business	30
Castellum's role in society	34
Customers	35
Organization and employees	38
Environment	40
Castellum's regions
Greater Gothenburg	42
The Öresund Region	44
Greater Stockholm	46
Mälardalen	48
Eastern Götaland	50
Financing	52
The Castellum share	58
Property valuation	64
Tax	68
Risks and risk management	70
Corporate Governance Report	78
Board of Directors	85
Executive Group Management	88
Quarterly and Multi Year Summary	92
FINANCIAL REPORTS
Consolidated Statement of Comprehensive
Income	95
Consolidated Balance Sheet	96
Income Statement for the Parent Company	97
Comprehensive Income for the Parent Company	97
Balance Sheet for the Parent Company	98
Change in Equity	99
Cash Flow Statement	100
Accounting Principles and Notes	101
Proposed Distribution of Profits	114
Statement Regarding Proposed
Distribution of Profits	115
Signing of the Annual Report	116
Auditor's Report	117

CASTELLUM'S REAL ESTATE SCHEDULE	118
Definitions	141
GRI	142

Castellum

With a real estate portfolio valued at SEK 42 billion, Castellum is one of Sweden's largest real estate companies. Castellum has been listed on the Stockholm Stock Exchange since 1997, and currently has over 19,000 shareholders.

Castellum has chosen to work with commercial real estate and the company enjoys local presence in five selected growth areas in Sweden and Denmark. Castellum has 300 employees in all, helping 4,500 Swedish companies to prosper and grow by providing the best possible local premises and operating conditions.

Castellum works with commercial premises on strong growth markets. We maintain a strong customer focus while sustaining and pursuing stable economic growth.

CHARACTERISTICS OF CASTELLUM

Service and property management through personnel employed by us
Serving our customers at close range
Development of the real estate portfolio by yearly net investments of 5% of property value
Strong balance sheet and low financial risk
Economic, social and environmental sustainability

Castellum 2015

RENTAL INCOME 2015 amounted to SEKm 3,299 (SEKm 3,318 previous year).
INCOME FROM PROPERTY MANAGEMENT totalled SEKm 1,533 (1,450), corresponding to SEK 9.35 (8.84) per share, an increase of 6%.
CHANGES IN VALUE ON PROPERTIES reached SEKm 1,837 (344) and on derivatives to SEKm 216 (–660).
NET INCOME AFTER TAX amounted to SEKm 2,881 (1,211), corresponding to SEK 17.57 (7.38) per share.
NET INVESTMENTS amounted to SEKm 2,413 (– 529) of which SEKm 1,232 (1,378) were new constructions, extensions and reconstructions, SEKm 2,321 (1,147) acquisitions and SEKm 1,140 (3,054) sales. Furthermore, 50% of the shares in CORHEI Fastighets AB (former Ståhls), were acquired, with an underlying property value of SEK 2 billion, for SEKm 505.
THE BOARD PROPOSES A DIVIDEND of SEK 4.90 (4.60) per share, equivalent to an increase of 7%.

Two awards in 2015.

Castellum has been awarded the World Green Building Council's top distinction, Business Leadership in Sustainability.

Castellum has reached the highest level in GRESB's (Global Real Estate Sustainability Benchmark) survey: Green Star 2015.

KEY FIGURES 2015

	Jan–March 15	April–June 15	July–Sept 15	Oct–Dec 15	Jan–Dec 15
Rental income, SEKm	801	816	832	850	3,299
Net operating income, SEKm	518	560	597	550	2,225
Income from property management, SEKm	338	378	436	381	1,533
D:o SEK/share	2.06	2.30	2.66	2.32	9.35
D:o growth	+5%	0%	+7%	+13%	+6%
Net income after tax, SEKm	451	948	222	1,260	2,881
Net investments, SEKm	1,039	691	682	1	2,413
Dividend, SEK/share (proposed)	–	–	–	–	4.90
D:o growth	–	–	–	–	+7%
Net leasing, SEKm	21	16	– 30	11	18
Loan to value ratio	50%	51%	50%	49%	49%
Interest coverage ratio	324%	349%	379%	353%	351%
Long term net asset value, (EPRA NAV) SEK/share	113	118	121	129	129
Actual net asset value, (EPRA NNNAV) SEK/share	99	105	107	116	116
Number of customers	4,400	4,500	4,500	4,500	4,500
Number of shareholders	17,600	17,530	18,200	19,100	19,100
For more detailed information about Castellum see www.castellum.se.

Castellum – on the offense 2015!

2015 was a particularly proactive year for Castellum. The process of change comprised several parallel processes:
Geographic concentration of the real estate portfolio
Several properties with higher development potential
The initiation of a cost efficiency program
Stronger-than-ever sustainability focus
A reinforced and more efficient organization

High investment rate

Rather many real estate transactions were completed, and it can be complex to overview them as a whole. Let me therefore briefly summarize the significance of the strategic shifts implemented over the last fifteen months. Sales amounted to SEK 4 billion and acquisitions – our own important projects excluded – totalled SEK 4.6 billion.

Contributing to these figures, we're counting divestments in two regions of Eastern Götaland (Värnamo/Växjö) and an investment-consuming mall in Malmö, as well as an area with high vacancy rates in northern Stockholm. Properties with weaker development potential were replaced by properties in strong growth areas: Hornsberg, Kungsholmen and Hagastaden in Stockholm; city-centre dominance in Norrköping and Linköping; a bridgehead location in the fastgrowing Hyllie district of Malmö and property increases in Copenhagen, as well as a more consolidated presence in Gothenburg's Lindholmen. A number of the transactions were complex, and

some will be determined in several stages. For example, the acquisition of 50% of the shares in Ståhls in Norrköping and Linköping includes an option to acquire the remaining portion in 2016. Current sales figures are reported for the sale of future residential building rights in Stockholm. However, these transactions often contain an earnout that will considerably raise the buyer's final purchase price when local zoning plans become finalized.

Strong finances

In 2015, total net investments amounted to SEKm 2,413 – including our own projects – and properties totalling SEKm 1,140 were sold. We managed this large-scale shift with only a slight decline in growth during the first three quarters, due to the large sales toward the end of 2014. However, strong growth resumed (+13%) in the last quarter. Moreover, the loan-to-value ratio remained at an unchanged low level, 49%.

Great demand in the real estate market facilitated Castellum's portfolio restructuring and led to value adjustments during the year, totalling SEKm 1,837. Of this, SEKm 1,019 referred to the fourth quarter, and contributed to an increase in the longterm net asset value of 13% – to SEK 129.

During the past year, we've extended existing loan commitments, including securing interest margins, for a total SEK 18 billion. On the bond market SEK 3.5 billion were issued, and the outstanding total volume at year end was SEK 6.5 billion.

Increased cost efficiency

The efficiency program initiated in 2015 gives results. In its first year, the program has already reduced costs by SEKm 10, primarily through increased coordination of purchases, a changed billing basis and common follow-up procedures. This ongoing program will continue through 2016 and is estimated to save approx. SEKm 30, thanks to measures already taken, as well as further cost savings and efficiency improvements.

Sustainability efforts rewarded

During the past year, Castellum was awarded the World Green Building Council's top distinction European Leadership award. The Business Leadership prize is awarded annually to the construction and real estate company that leads sustainable development in Europe. In 2015, Castellum was also presented with GRESB's highest Green Star rating and ranks among the best real estate companies in the world for the CDP's (Carbon Disclosure Program) annual rankings.

These are important international recognitions of Castellum's long-term sustainability efforts. The path taken toward ambitious sustainability goals will continue to include a strong commitment to everyday quality-of-life issues. During the year for example, 75 adolescents and young adults – from diverse cultural backgrounds – worked as apprentices or held other trainee positions at Castellum, for an introduction to working life.

A changed world – changed approaches and processes The world has changed. Previous self-evident "truths" about business processes, or the infrastructure and design of premises have had to be reassessed. It's a challenge for a real estate company that every building has to be designed for long-term existence, while keeping in harmony with prevailing customer requirements. In order for Castellum to continue to be an up-to-date and agile corporation, continuous adaptation to new internal and external conditions is required. Together, we will seize opportunities to work even more efficiently, flexibly and locally through shared resources. Closer than ever to our customers.

Castellum looks ahead: Tomorrow's challenges and opportunities will be met through changed work procedures, organizational adjustments and new support processes. After all of the major transactions, I anticipate that Castellum's real estate projects will increase and net investments will remain high. It's my personal belief and expectation that property management income growth in 2016 will be in line with our objective of 10% – with a continued focus on cash flow, at low financial risk. Thus, the prospects for continued competitive dividend growth are favourable.

Gothenburg January 20, 2016

Henrik Saxborn CEO

BUSINESS CONCEPT, OBJECTIVES AND STRATEGIES

Castellum's business opportunities are created by providing our customers with enhanced business opportunities

Castellum focuses on properties with commercial space. Our business model is about creating economic growth by increasing the business value of the premises for our customers.

Atas fuidiem audacionsum in se priachuis eoris con sunt, quem cendam ciis? Patil vescrit, Catus, in tem in prit inicaet.Perferrunte re doluptio et velici ut voluptur sam, quibus pos aut que et alisincil iusaeriamus idisquam eos esteseri iurio The Group works with office, retail, warehouse, logistics and industrial facilities, centrally located downtown or in commercially attractive areas outside the city centre. What matters is that they accommodate business opportunities – for us as well as for our customers.

Castellum's strategy

Investment

Geography

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

Property category

The real estate portfolio will consist of commercial properties with general and flexible premises for office, retail and warehouse, logistics and industry purposes. The distribution among the different categories is determined by business opportunities, cash flow, risk exposure and asset growth.

Property portfolio development

The real estate portfolio will be continuously enhanced and developed in order to improve cash flow. Castellum will continue to grow with customer demand, mainly through new constructions, extensions and reconstructions but also through acquisitions of buildings and land with building rights for future development.

In order to achieve the overall objective of 10% growth, annual net investments of at least 5% of the property value will be made. This is currently equivalent to approx. SEK 2 billion. All investments will contribute to the objective of growth in income from property management within 1-2 years and have a potential asset growth of at least 10%. Sales of properties will take place when justified from a business standpoint.

Leasing and property management

Customers

Castellum will be perceived as a customer focused company. This is achieved by developing long-term relations and supplying premises and services meeting customer demands.

Management and employees

Castellum will deliver service and property management by a decentralized organization with wholly owned subsidiaries with strong local presence. Property management will be carried

out mainly by our own employed personnel. Castellum shall have skilled and committed employees, which is achieved by being an attractive workplace with good development possibilities. In order to develop the customer relations the customers' and employees' level of satisfaction shall be measured regularly and be on a high level.

Operations will contribute to sustainable development, touching on ecological, social and economic perspectives. Sustainability efforts will form a seamlessly integrated and natural element of all business undertakings. Castellum's strong company culture is characterized by honesty, transparency, professionalism, commitment, expertise and innovation.

Funding and risk

Castellum will have low financial risk. The chosen risk key ratios are loan to value ratio not permanently exceeding 55% and interest coverage ratio of at least 200%. Purchase or transfer of own shares will 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.

Castellum will work for a competitive total return on the company's share relative to risk and also strive for high liquidity. At least 50% of pre-tax property management income will be distributed. Investment plans, consolidation needs, liquidity and financial position in general will be taken into account.

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

Castellum's real estate portfolio has a geographical distribution covering five growth regions and will consist of various types of commercial premises. The risk within in the customer portfolio will be kept low.

Mission and vision

One of the largest real estate companies, while remaining equipped to act as close to the market as the smallest.

Business concept

To develop and add value to the real estate portfolio, focusing on the best possible earnings and asset growth, by offering customized commercial properties, through a strong and clear presence in growth regions.

Business model

Investments and development of commercial premises managed in a decentrilized and customerfocused organization. Castellum focus on cashflow and operates with low financial risk.

Sustainable business

Castellum has a dedicated focus on long-term efforts and strategies, and this goes hand-in-hand with all sustainability perspectives. Business operations are to contribute to sustainable development taking ecological, social and economic It's crucial for the long-term success of the company that operations are conducted in a responsible manner, wherein all actions should be characterized by high skills levels, high ethical standards and a high, hands-on sense of responsibility.

By being locally present and engaged in the cities where the developed and managed. Castellum is to be financially strong, as this enables us to act wisely, with a long-term perspective.

Sustainability efforts are focused on:

taking responsibility for, and contributing to, the develop ment of the communities
utilizing resources efficiently and effectively,
maintaining a sustainable real estate portfolio,
cooperating with other stake holders to promote develop-

Development of commercial properties in growth regions

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

STRATEGY

The real estate portfolio will consist of commercial properties with general and flexible premises for office, retail, warehouse, logistics and industry purposes.

All investments will contribute to the objective of growth in income from property management within 1-2 years and have a potential asset growth of at least 10%. Sales of properties will take place when justified from a business standpoint.

Customer focus through local organizations

Castellum will be perceived as a customer focused company. This is achieved by developing long-term relations and supplying premises and services meeting customer demands.

Service and property management will be delivered by a decentralized organization with wholly owned subsidiaries with strong local presence. Property management will be carried out mainly by our own employed personnel.

Castellum shall have skilled and committed employees, which is achieved by being an attractive workplace with good development possibilities.

Strong balance sheet with low financial risk

Castellum will have low financial risk. The chosen risk key ratios are loan to value and interest coverage ratio.

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.

Purchase or transfer of own shares will 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.

STRATEGIC TOOLS • In order to achieve the overall objective of 10% cash-flow growth, i. e. income from property management per share, annual net investments of at least 5% of the property value will be made. This is currently equivalent to approx. SEK 2 billion. • Castellum will be one of the three largest real estate owners in each local market. • In order to develop the Group as well as customer relations, the customers' and employees' level of satisfaction will be measured regularly and sustain a high level. • Loan to value ratio not permanently exceeding 55%. Interest coverage ratio of at least 200%. • At least 50% of pre-tax property management income will be distributed. Investment plans, consolidation needs, liquidity and financial position in general will be taken into account. • Castellum will be one of the largest listed real estate companies in Sweden. • Risk within the customer portfolio will be kept low using diversification over many fields of business, length and size of contracts. OUTCOME 49% 52% 4,500 NKI80 NMI85 SEKm 2,413 GREATER GOTHENBURG 35% ÖRESUND REGION 19 % EASTERN GÖTALAND 7 % Net investments 2015 Loan-tovalue ratio 2015 Dividend ratio 2015 (proposed) commercial contracts where the single largest contract accounts for approx 2% MÄLAR-DALEN 18% GREATER STOCKHOLM 21% Loan to value ratio Net investments Interest coverage ratio Proportion of Castellum's property value Satisfied Customer Index 2015 Satisfied Employees Index 2014

Objective 10%

Castellum's overall objective is an annual growth in cash flow, i.e. income from property management per share, of at least 10%

During 2015, Castellum has had a high portfolio turnover in order to increase the quality and density of the portfolio

A major restructuring transformation began in the autumn of 2014. Castellum's largest major revamp of the portfolio since the IPO in 1997.

Castellum's new portfolio disposition, which has taken place over slightly more than a year, can be summarized in numbers as follows:

Castellum sold properties for SEK 4 billion.
Castellum acquired properties for SEK 4.6 billion, excluding CORHEI Fastighets AB (previously Ståhls).

In October 2014, the Hansa mall in central Malmö was sold for just over SEKm 600. This was the first of several major transactions that took place in the following 15 months. A month later, the entire real estate portfolio in Värnamo and Växjö was sold in a transaction of over SEK 1.9 billion.

In late January, Castellum's real estate portfolio in Copenhagen was doubled in a transaction totalling SEKm 700, which also included a property in Marievik near downtown Stockholm.

Presence in Sweden's ten largest cities

In mid-April, Castellum announced entry into a new market, Norrköping, through the acquisition of 50% of the shares in CORHEI Fastighets AB, with an underlying property value of approx. SEK 2 billion. The transaction included both an establishment in central Linköping and four centrally located corner properties in Örebro.

Norrköping and Linköping, collectively hosting approx. 285,000 inhabitants, are being referred to as the fourth big-city region. The region is undergoing significant change, as traditional industries take up increasingly less space, and service industries take over. Growth prospects will increase as the SEK 30 billion project Ostlänken – the 150 km long railway for high-speed trains between Linköping and Stockholm – will start in 2017. Eleven years later, when it is completed, people will be able to travel from Linköping to Stockholm in an hour, a time saving of 40 minutes, and Linköping/ Norrköping will become part of Stockholm's labour-market region. The enlarged labour-market region will provide more skilled jobs in an increasingly creative environment that attracts talent, both for work and higher education. The region will simply become more attractive and the conditions for economic growth will improve.

Moreover, Castellum's first establishment in the Hyllie city district of southern Malmö in the autumn of 2015 means that the company will come into possession of an upscale office building in April, 2016. The investment amounted to just over SEKm 300.

Concentration in Stockholm

In Stockholm, there is ongoing concentration on selected market segments. In late September, Castellum acquired a property on Kungsholmen for just over SEKm 400, and in November, the entire portfolio in Kista and Akalla was sold for more than SEKm 800. On December 10, Castellum acquired an office property in Hagastaden – the emerging area around the Nya Karolinska university hospital in Solna, where research and business meet. The purchase price amounts to SEK 1.6 billion, with access in the first quarter of 2017 – and virtually all units are already leased. In connection with this acquisition, an office property in Solna was sold for SEKm 280.

LARGE TRANSACTIONS SINCE FALL 2014

OCTOBER 2014

Sale of Hansa shopping mall in central Malmö, a total area of approx. 40,000 sq.m., including office and retail. Net sales price: just over SEKm 600.

NOVEMBER 2014

Sale of the entire property portfolio in Värnamo and Växjö, a total of 53 properties. Sales price: just over SEK 1.9 billion.

JANUARY 2015

Doubling of real estate assets in Copenhagen and acquisition of a central building in Stockholm. Total investment: approx. SEKm 700.

APRIL 2015

Implementation of purchasing agreement, comprising a total of 27 properties.Twelve properties in Norrköping, nine in Linköping, are the first step in a further optional deal, involving areas of Örebro and Solna. Underlying property value: SEK 2 billion.

SEPTEMBER 2015

Castellum enters the Kungsholmen district in central Stockholm. Investment: just over SEKm 400.

NOVEMBER 2015

Castellum sells its entire holding in Kista and Akalla comprising eleven properties, a sale just over SEKm 800.

DECEMBER 2015

Castellum acquired an office building under construction near Nya Karolinska Solna in the emerging area Hagastaden in Stockholm. Investment: SEK 1.6 billion.

Market share is important. But choice of market is even more important.

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Market comments

Swedish economy

Sweden, with over 9.8 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. The high export dependency of Swedish industry contributes to the fact that, historically, Sweden has shown the strong adaptability required to restructure the economy during economic changes.

The Swedish economy continued to perform well with a strong GDP growth that is expected to continue in 2016. Growth is mainly driven by investments and domestic private consumption. Higher public spending, as a result of the increase in asylum seekers, is also expected to contribute to GDP growth. The export of services has developed rapidly, while the recovery for the export of goods continues to go slowly. Geopolitical turmoil continues to dampen the growth rate – especially for industry. However, levels for construction and infrastructure investments in Sweden demonstrate high activity, whereas investments in the industrial sector have dampened.

The labour market has been positively affected by the stronger economy. Labour shortages are expected for several groups, primarily within the construction and public sectors. However, despite the increase in employment, the unemployment rate is expected to be only marginally affected. Inflation is expected to remain low due to lower commodity prices and low inflation in the outside world, coupled with limited wage growth. Development of the krona exchange rate plays a key role for inflation in Sweden, where a stronger krona will dampen inflation.

Interest and credit markets

In 2015, the Riksbank focused on an inflation target of 2%, pursued an expansionary monetary policy and made historic decisions. The repo

Source: National Institute of Economic Research in Sweden rate has remained unchanged since July, when it was lowered to -0.35%, even if the repo-rate path has been revised downwards. During the year, the Riksbank purchased government bonds and announced further purchases during the first half of 2016. The repo-rate path indicates that a slight lowering of the repo rate is possible in the near future, and the tone hardened somewhat concerning whether or not to take other measures in December (when the repo rate was left unchanged). The repo rate is not expected to begin rising slowly until 2017. The 3-month STIBOR rate moved quickly downward in the spring, but proceeded more stably, albeit slightly downward, for the rest of the year. This lasted until year-end, when the STIBOR rate rapidly returned to summer levels.

The spread between short- and long-term interest rates increased during the year, but long-term interest rates remained historically low. Development was primarily driven by falling short-term interest rates, but also by slightly higher longterm interest rates.

Availability of bank financing and financing in the capital market is considered favourable. During early 2015, credit margins dropped in the capital market but turned upward considerably in the second half of the year. Credit margins for bank financing are also considered to have increased during the autumn, albeit to a lesser extent.

European real estate market

The transaction volume for the European real estate market totalled approx. EUR 263 billion (223), which is an increase of 18% compared with the previous year. In 2015, Great Britain accounted for the highest transaction volume, corresponding to EUR 88 billion (79), followed by Germany's EUR 53 billion (40).

The Swedish transaction market represented approx. 5% (7%) of the European volume, and this translated into the fourth largest turnover in Europe. At year end, Castellum was the 20nd largest listed real estate company in the European real estate market in terms of market capitalization.

Source: National Institute of Economic Research in Sweden

At year end, Castellum was the 20 largest listed real estate company in the European real estate market in terms of market capitalization. th

"The Swedish economy continued to perform well with strong GDP growth."

The transaction volume for the Swedish real estate market represented approx. 5% of the European volume and this translated into the fourth largest turnover in Europe.

SWEDEN'S FOREIGN TRADE JAN–OCT 2015 (10 MONTHS)

Export	Total SEKbn 981
Germany	102
Norway	101
USA	74
Great Britain	73
Denmark	67
Finland	65

Import	Total SEKbn 963
Germany	172
Norway	80
The Netherlands	78
Denmark	73
Great Britain	53
China	50
Source: SCB

MACRO INDICATORS

Unemployment (Nov 2015)	6.2%
Inflation rate	0.1%

(Dec 2015 compared to Dec 2014)

GDP growth (Q3 2015 compared to Q3 2014) 0.8% Source: SCB

"The Swedish property market continued to be attractive, with historically high transaction volumes."

Swedish real estate market

The Swedish real estate market comprises apartment buildings and industrial properties for a total tax assessment value of around SEK 2,900 billion. This corresponds to a market value of approx. SEK 3,900 billion. However, the real estate portfolio also includes properties that are not quite part of the commercial real estate portfolio. This includes certain customized buildings for industrial operations, as well as apartment buildings owned by housing cooperatives. Castellum is considered one of Sweden's largest real estate owners of commercial properties and owns 1-2% of Sweden's commercial real estate portfolio. In all, Swedish listed real estate companies own about 11% of the commercial real estate portfolio in Sweden.

In addition to the listed companies, the largest real estate owners in Sweden are public corporations as well as both Swedish and foreign institutional investors. Furthermore, Sweden contains a vast number of smaller real estate owners such as real-estate and construction companies, users and individuals.

The Swedish property market continued during 2015 to be attractive all over the country and for all segments – both for domestic and international players. During the year, the strong demand resulted in lower required yield – with higher property prices as a consequence. Transaction volumes for

2015 amounted to SEK 145 billion – a historically high level – even if turnover for 2014 reached SEK 160 billion. There was a strong interest for office and retail properties as well as for warehouse and logistics properties, and commercial properties accounted for approx. 77% (76%) of the total transaction volume.

Foreign buyers accounted for 27% (17%) of the purchase volume, which could be observed in several major transactions regarding office, commercial and logistics facilities.

Swedish rental market

During the year, the rental market continued to strengthen, due to high demand and low new construction volumes. The strongest office markets are in central locations, showing low volumes of new construction and low vacancy rates – thus creating conditions for rent increases. The Öresund region continued to have a higher proportion of newly built office space than the rest of Sweden, and this affected both rental development and vacancies. The logistics market was distinctly variable, and demand depended on location as well as design. The strongest logistics locations became stronger, and customer requirements changed, based on technological development and increasing e-commerce. Properly designed buildings in sought-after locations became very attractive.

Transaction volume by geography Rents and vacancy levels, major cities

12 CASTELLUM ANNUAL REPORT 2015 DIRECTORS' REPORT

Annual transaction volume Sweden and yield major cities

Source: Newsec and Forum Transaction volume intends transactions >SEKm 100

Castellum's markets

Sweden can be divided into a number of local labor markets where each market has different development strength. A local labor market is characterized by that it 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. Sweden is currently in an strong urbanization trend where growth is concentrated in the longterm to medium-sized and larger regions, while the number of regions is reduced.

The three major urban regions in Sweden have the greatest development potential, primarily explained by a larger population, relative to other parts of the country. This in turn creates a larger labor market, a diversified industrial structure, research opportunities and greater variety of shopping, entertainment and culture. Successful regions are also characterized by tolerance. The most attractive cities offer opportunities for quality education in universities and colleges. They embrace diversity and openness. Cities grow and jobs are created where talents are developed and thrive.

The map shows the Swedish local labour markets, where dark blue indicates the local labour markets showing the highest increase of total wages during 2006-2015 in absolute figures, and light blue the lowest. The local labour markets where Castellum operates are indicated.

DATA PER REGION		Population growth	Population growth 2006-2015	Population	Students at	Growth employment	Unemployment	Growth total wages	Growth wages
	Population	2006-2015/year	average/year	growth 2015	university/collage	2006-2015/year	2015	2006-2015/year	total 2015
The nation	9,900,000	0.9%	85,100	1.3%	404,000	1.0%	7.8%	2.9%	4.4%
GREATER GOTHENBURG
Greater Gothenburg	1,151,000	1.1%	12,000	1.5%	47,000	1.3%	6.2%	3.3%	5.4%
Borås	172,000	0.7%	1,100	1.2%	8,000	0.8%	6.8%	2.7%	4.3%
Halmstad	121,000	0.8%	1,000	1.3%	8,000	0.8%	8.4%	2.4%	0.2%
ÖRESUND REGION
Malmö	1,135,000	1.2%	12,800	1.6%	56,000	1.2%	9.9%	2.9%	3.2%
of which Lund	118,000	1.5%	1,600	1.8%	37,000	1.0%	5.8%	2.7%	3.7%
of which Helsingborg	137,000	1.2%	1,600	1.5%	–*	1.1%	10.7%	2.6%	1.0%
Copenhagen	1,788,000	1.0%	16,800	1.1%	n a	0.4%	n a	n a	n a
GREATER STOCKHOLM
Greater Stockholm	2,623,000	1.7%	40,300	2.0%	91,000	1.9%	6.3%	3.6%	4.6%
MÄLARDALEN
Örebro	240,000	0.9%	2,000	1.4%	13,000	0.9%	8.0%	2.8%	4.2%
Uppsala	325,000	1.2%	3,600	1.7%	44,000	1.4%	5.4%	3.3%	5.3%
Västerås	241,000	0.7%	1,700	1.2%	11,000	0.8%	9.1%	2.6%	2.8%
EASTERN GÖTALAND
Jönköping	219,000	0.8%	1,600	1.2%	11,000	0.8%	6.3%	2.5%	3.9%
Linköping	263,000	0.8%	1,900	1.2%	23,000	1.0%	7.4%	2.8%	3.7%
Norrköping	180,000	0.8%	1,300	1.2%	–**	0.9%	11.5%	3.0%	5.3%

Source: Evidens and SCB * Campus Helsingborg is part of Lund University.

** Campus Norrköping is part of Linköping University.

Castellum's real estate portfolio and result 2015

65%

Approx. 65% of Sweden's 9.8 million inhabitants live within Castellum's regional market areas.

Castellum's properties are located from inner city sites to well situated working areas with good means of communication and services.

On December 31, 2015 Castellum's real estate portfolio comprised 597 properties with a total rental value of SEK 42 billion.

During 2015 investments totalled SEKm 3,553 of which SEKm 1,232 were new constructions, extensions, and reconstructions and SEKm 2,321 were acquisitions.

Castellum is present in the nation's major growth regions and approx. 65% of Sweden's 9.8 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. The objective is to be one of the three largest realestate owners in each local market. Castellum's geographical submarkets can be characterized as stable, with good prospects for long-term positive development. The real estate portfolio is found in 14 locations in five growth regions: Greater Gothenburg, Greater Stockholm, the Öresund region, Mälardalen and Eastern Götaland. The main part with 75% of the portfolio is located in the three major urban regions.

The commercial portfolio consists of 67% office and retail properties as well as 29% 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 4% consists of project and undeveloped land. Castellum owns approx. 788 sq.m. unutilized building rights.

On December 31, 2015 Castellum's real estate portfolio comprised 597 properties (583) with a total rental value of SEKm 3,690 (3,527) and a total lettable area of 3,392 sq.m. (3,329). For properties owned at year-end the net operating income over the year was SEKm 2,240 (2,098).

Investments

During the year investments totalled SEKm 3,553 (2,525) of which SEKm 1,232 (1,378) were new constructions, extensions, and reconstructions and SEKm 2,321 (1,147) were acquisitions. Of the total investments SEKm 1,077 related to Greater Stockholm, SEKm 847 to Greater Gothenburg, SEKm 811 Mälardalen, SEKm 533 the Öresund

regionen and SEKm 285 Eastern Götaland. After sales of SEKm 1,140 (3,054) net investments amounted to SEKm 2,413 Mkr (–529).

Castellum has ongoing projects with remaining investments of approx SEKm 1,300.

During year Castellum acquired 50% of the shares in CORHEI Fastighets AB (former Ståhls) for SEKm 505. The company owns and manage properties in Norrköping and Linköping totalling approx. SEK 2 billion. See page 19 for more information. Agreements have also been concluded for the acquisition of two office properties under construction, one in Hyllie in Malmö for SEK 327 with change of possession scheduled to April 2016, and one in Hagastaden, Stockholm for SEK 1.6 billion with change of possession scheduled to February 2017. The properties will be accounted for when the change of possession has taken place due to the agreements which is conditional upon i.e. completion.

During 2015 the real estate portfolio has changed according to the table below.

	Value SEKm	Number
Real estate portfolio January 1, 2015	37,599	583
+ Acquisitions	2,321	23
+ New constructions, extensions and reconstructions	1,232	8*
– Sales	– 1,092	– 17
+/– Unrealized changes in value	1,789	–
+/– Currency translation	– 31	–
Real estate portfolio December 31, 2015	41,818	597
* Parcelling / regulation

Property value and changes in value

The fair value of the properties at the year-end amounted to SEKm 41,818 (37,599), corresponding to SEK 12,282 per sq.m (11,118). The average valuation yield over time for Castellum's real estate portfolio, excluding development projects, undeveloped land and building rights, can be calculated to 6.5% (6.9%). Of the total property value 93% represents freehold properties and 7% is site leasehold.

Yield 2007 – 2015 (bars) respectively present situation (dots) according to Newsec (Swedish regions) and DTZ (Copenhagen) for a number of different geographical markets and segments in Castellum's property portfolio

Castellum's regions

MÄLARDALEN	2015	2014
No. of properties	126	117

No. of properties	126	117
Area, thousand sq.m.	656	617
Property value, SEKm	7,689	6,521
Rental value, SEKm	691	639
Net operating income, SEKm	404	377
Net investments, SEKm	811	393
Net leasing, SEKm	22	25
Employees	57	53

21% Proportion of Castellum's property value

2015 2014 GREATER STOCKHOLM

No. of properties	106	106
Area, thousand sq.m.	594	649
Property value, SEKm	8,607	7,805
Rental value, SEKm	736	777
Net operating income, SEKm	453	445
Net investments, SEKm	71	253
Net leasing, SEKm	27	19
Employees	47	56

35%

Proportion of Castellum's property value

GREATER GOTHENBURG	2015	2014
No. of properties	212	209
Area, thousand sq.m.	1 198	1 157
Property value, SEKm	14,661	13,412
Rental value, SEKm	1,220	1,165
Net operating income, SEKm	806	772
Net investments, SEKm	760	1 034
Net leasing, SEKm	2	– 24
Employees	88	81

--------- CORALLEN

2015 2014 No. of properties 40 40 Area, thousand sq.m. 248 260 Property value, SEKm 3,055 2,681 Rental value, SEKm 286 250 Net operating income, SEKm 173 134 Net investments, SEKm 250 – 1,446 Net leasing, SEKm 1 33 EASTERN GÖTALAND

Employees 25 25

19% Proportion of Castellum's property value

ÖRESUND REGION	2015	2014
No. of properties	113	111
Area, thousand sq.m.	696	646
Property value, SEKm	7,806	7,180
Rental value, SEKm	757	696
Net operating income, SEKm	404	370
Net investments, SEKm	521	– 763
Net leasing, SEKm	– 34	5
Employees	58	57

"The average valuation yield over time for Castellum's real estate portfolio, excluding development projects, undeveloped land and building rights, can be calculated to 6.5%."

The change in value during the year amounted to SEKm 1,837 (344), corresponding to 4.6%. The increase in value consisted mainly of SEKm 255 attributable to acquisitions, SEKm 203 attributable to project profits and SEKm 1,331 primarily due to reduced yield requirements. In addition, property sales resulted in a value change of SEKm 48. Net sales price amounted to SEKm 1,140 after deduction for assessed deferred tax and transaction costs totalling SEKm 57. Hence the underlying property value, which amounted to SEKm 1,197, exceeded the last valuation of SEKm 1,092 by SEKm 105.

Average valuation yield, SEKm

(excl. project/land and building rights)	2015	2014
Net operating income properties	2,443	2,286
+ Index adjustment 2016, 1% (1%)	35	25
+ Real occupancy rate 94% at the lowest	216	251
– Property administration, 30 SEK/sq.m.	– 100	– 99
Normalized net operating income	2,594	2,463
Valuation (excl. building rights of 469 SEKm)	39,824	35,506
Average valuation yield	6.5%	6.9%

Rental income

Group's rental income amounted to SEKm 3,299 (3,318). For office and retail properties, the average contracted rental level, including charged heating, cooling and property tax, amounted to SEK 1,332 per sq.m. (1,295), whereas for warehouse and industrial properties, it amounted to SEK 804 per sq.m. (791). Rental levels, which are considered to be in line with the market, have in a comparable portfolio increased by 1% compared with previous year, which mainly is an effect from indexation and can be compared with the usual industry index clause (October to October), which was –0.1% in 2015. Castellum's higher indexation is due to the Groups focus on index clauses with

minimum upward adjustment in the contract portfolio, which offers protection against low inflation and deflation. The average economic occupancy rate was 90.3% (88,7%). The total rental value for vacant premises on yearly basis amounted to approx. SEKm 392 (417).

The rental income for the period includes a lump sum of SEKm 8 (10) as a result of early termination of leases.

Gross leasing (i.e. the annual value of total leasing) during the year was SEKm 316 (304), of which SEKm 55 (55) were leasing of new constructions, extensions and reconstructions. Notices of termination amounted to SEKm 298 (246), of which bankruptcies were SEKm 11 Mkr (12) and 18 Mkr (36) were notice of termination with more than 18 months remaining length of contract. Hence net leasing for the year was SEKm 18 (58). The time difference between reported net leasing and the effect in income thereof is estimated to be between 9-18 months. Net leasing has been different in Castellum's various regions, as shown below.

Net leasing

	Greater	Öresund	Greater	Mälar	Eastern
SEKm	Gothenburg	region	Stockholm	dalen	Götaland	Total
New leases
Existing properties	72	53	56	73	7	261
Investments	11	15	14	10	5	55
Total	83	68	70	83	12	316
Notice of termination
Noticies of termination	– 79	– 98	– 43	– 56		– 11 –287
Bankruptcies	– 2	– 4	0	– 5	0	– 11
Total	– 81	– 102	– 43	– 61		– 11 –298
Net leasing	2	– 34	27	22	1	18

Rental value and economic occupancy rate Average valuation yield over time

Property costs

Property costs amounted to SEKm 1,074 (1,096), corresponding to SEK 316 per sq.m. (307). The costs includes SEKm 5 in transaction cost related to the acquisition of 50% of the shares of CORHEI Fastighets AB (former Ståhls). Consumption for heating during the year has been calculated to 88% (86%) 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 6 (9), corresponding to 0.2% (0.3%) of rental income.

Property costs	Office/	Warehouse/	2015	2014
SEK/sq.m.	retail	industrial	Total	Total
Operating expenses	181	109	149	146
Maintenance	49	27	39	37
Ground net	5	7	6	8
Property tax	72	23	50	48
Direct property costs	307	166	244	239
Leasing and property administration (indirect)	–	–	72	68
Total	307	166	316	307
Previous year	299	167	307

Central administrative expenses

Central administrative expenses totalled SEKm 113 (108). This includes costs for a profit-and-share-price related incentive plan for 10 persons in executive management of SEKm 11 (15).

Income from joint venture

Income from joint venture amounted to SEKm 21 (–) and refers to Castellum's 50% share of the income in CORHEI Fastighets AB (former Ståhls). For more information, see the section Joint venture on page 19.

Of this income, SEKm 23 refers to income from property management, SEKm 3 to unrealized changes in property value and SEKm –5 to tax.

Net interest

Net interest items were SEKm –602 (–664). The average interest rate level was 3.0% (3.3%). Net financial income was positively affected by approx. SEKm 70 due to the average interest rate level decrease by 0.3%-units.

Tax

The nominal corporate tax rate in Sweden is 22%. Due to the possibility to deduct depreciation and reconstructions for tax purposes, and to utilize tax loss carry forwards, the paid tax is low. Paid tax occurs since a few subsidiaries have no possibilities to group contributions for tax purpose.

Remaining tax loss carryforwards can be calculated to SEKm 809 (1,193). Fair values for the properties exceed their fiscal value by SEKm 22,239 (18,602) of which SEKm 1,893 (991) relates to the acquisition of properties 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 4,299 (3,612). Castellum has no current tax disputes.

Income over time

Income from property management over the past 10 years shows stable development and has grown by an average of 6% per year. Property values have been volatile over the past 10 years with average growth of 1.1% per year which is in line with inflation.

"Castellum's income from property management over the past 10 years shows stable development and has grown by an average of 6% per year."

Income over time

Castellum's real estate portfolio 31-12-2015

		31-12-2015				January-December 2015
	No of properties	Area thousand sq.m.	Property value SEKm	Property value SEK/sq.m.	Rental value SEKm	Rental value SEK/sq.m.	Economic occupancy rate	Rental income SEKm	Property costs SEKm	Property costs SEK/sq.m.	Net operating Income SEKm
Office/retail
Greater Gothenburg	85	476	8,624	18,102	662	1,388	93.1%	616	138	289	478
Öresund region	65	412	5,899	14,313	542	1,316	84.3%	457	129	314	328
Greater Stockholm	43	284	4,833	17,034	412	1,453	89.7%	370	84	296	286
Mälardalen	78	437	5,975	13,685	533	1,220	90.8%	484	138	316	346
Eastern Götaland	27	198	2,803	14,124	258	1,302	94.6%	244	66	333	178
Total office/retail	298	1,807	28,134	15,566	2,407	1,332	90.2%	2,171	555	307	1,616
Warehouse/industrial
Greater Gothenburg	105	667	5,580	8,363	506	759	91.5%	463	95	143	368
Öresund region	42	282	1,863	6,614	213	757	88.3%	188	47	168	141
Greater Stockholm	51	287	3,187	11,129	295	1,029	91.7%	270	60	208	210
Mälardalen	39	188	1,319	7,032	144	767	88.7%	128	36	193	92
Eastern Götaland	9	50	210	4,166	27	528	85.1%	22	6	111	16
Total warehouse/industrial	246	1,474	12,159	8,253	1,185	804	90.5%	1,071	244	166	827
Total	544	3,281	40,293	12,282	3,592	1,095	90.3%	3,242	799	244	2,443
Leasing and property administration									235	72	– 235
Total after leasing and property administration									1,034	316	2,208
Project	23	111	1,105	–	98	–	–	56	24	–	32
Undeveloped land	30	–	420	–	–	–	–	–	–	–	–
Total	597	3,392	41,818	–	3,690	–	–	3,298	1,058	–	2,240

The table above relates to the properties owned by Castellum at the end of the year and reflects 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 2,240 accounted for above and the net operating income of SEKm 2,225 in the income statement is explained by the deduction of the net operating income of SEKm 55 on properties sold during the year, as well as the adjustment of the net operating income of SEKm 70 on properties acquired/completed during the year, which are recalculated as if they had been owned or completed during the whole year.

Property related key ratio

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006
Rental value, SEK/sq.m.	1,095	1,064	1,036	1,015	995	974	969	921	896	864
Economic occupancy rate	90.3%	88.7%	88.4%	88.6%	89.3%	89.0%	89.8%	89.7%	87.9%	87.1%
Property costs, SEK/sq.m	316	307	307	298	300	298	300	268	262	259
Net operating income, SEK/sq.m	673	637	608	601	589	569	571	559	527	494
Property value, SEK/sq.m	12,282	11,118	10,285	9,916	9,835	9,499	9,036	8,984	9,098	8,466
Number of properties	597	583	626	635	617	598	590	587	549	515
Lettable area, thousand sq.m.	3,392	3,329	3,623	3,621	3,411	3,311	3,199	3,172	3,003	2,787

Property value by property type Property value by region

Joint venture

In the second quarter of 2015, Castellum AB (publ) closed a deal with Heimstaden AB (publ) which meant that Castellum, through the subsidiary Corallen, acquired 50% of the shares in CORHEI Fastighets AB (former Ståhls), corresponding to an investment of SEKm 505. Access was gained at month-end, May/June 2015. The agreement gives Castellum an option to purchase the remaining 50% to market value, no earlier than 18 months after the access.

The investment has contributed SEKm 21 to Castellum's results during this period. The carrying value of this investment thus totalled SEKm 526 as of December 31, 2015 and is accounted for according to the equity method.

The real estate portfolio amounted to SEKm

Balance sheet per 31-12-2015

SEKm	Dec 31 2015
Assets
Investment properties	2,030
Other fixed assets	5
Current receivables	10
Liquid assets	137
Total assets	2,182
Shareholders' equity and liabilities
Shareholders' equity	933
Deferred tax liability	129
Interest-bearing liabilities	1,069
Non interest-bearing liabilities	51
Total shareholders' equity and liabilities	2,182

2,030 as of December 31 and the loan-to-value ratio at that date was 46%. The interest-bearing financing consists of loans in some of the largest Nordic banks of which 60% has floating interest rate and the remaining part fixed interest rate of approx 1%. Furthermore, the Group has tax loss carryforwards and is not expected to pay income tax next year.

Heimstaden owns the remaining 50% and has assigned property management as well as financial management of CORHEI Fastighets AB to Castellum. To elucidate on Castellum holdings, the Group's real estate portfolio, consolidated balance sheet and income statement as of December, 2015, will be accounted for below.

Income statement 2015

SEKm	June - Dec 2015
Rental income	96
Property costs	– 42
Central administrative expenses	– 1
Net interest income/expense	– 7
Income from property management	46
Change in value properties	6
Current tax	–
Deferred tax	– 10
Net income	42
- of which Castellum's part of the joint venture (50%)	21

Value of the portion of the joint venture accounted for 31-12-2015

SEKm Castellum's part 50%
Shareholders' equity accounted for	467
Net adjustment for goodwill and deferred tax consolidation	59
Part of the joint venture	526

Property value by property type

Property value distributed per location

	Property portfolio per 31-12-2015		31-12-2015				January - December 2015
	Property type	No. of proper ties	Area thousand sq.m	Property value SEKm	Property value SEK/sq.m	Rental value SEKm	Rental value SEK/sq.m	Economic occupancy rate	Rental income SEKm	Property costs SEKm	Property costs SEK/sq.m	Net operating income SEKm
Distributed by city
Norrköping	Office/retail	12	92	1,228	13,346	115	1,247	87.3%	103	38	406	65
Norrköping	Warehouse/industrial	1	19	51	2,642	7	382	18.,8%	1	1	67	0
Linköping	Office/retail	9	51	751	14,717	68	1,332	86.5%	60	25	495	35
Total		22	162	2,030	12,496	190	1,170	84.3%	164	64	394	100
	Leasing and property administration									8	53	– 8
	Total after leasing and property administration									72	447	92

Active property development requires investments

Castellum operates on a long-term basis and the strategy for growth includes constant improvement and development of the real estate portfolio through 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 properties with development potential and unutilized building rights.

In order to achieve the overall growth objective of 10%, Castellum needs to invest. In 2015, Castellum had a high level of activity in the portfolio and built and acquired properties for SEK 3.5 billion and sold for SEK 1.1 billion.

10 20 CASTELLUM ÅRSREDOVISNING 2014 CASTELLUM ANNUAL REPORT 2015 DIRECTOR'S REPORT 20 CASTELLUM ANNUAL REPORT 2015 DIRECTORS' REPORT

INVESTMENTS

Castellum's project development

In the last 10 years, Castellum has invested SEK 23 billion, which means SEK 2.3 billion on average per year. During 2015 investments totaled SEKm 3,553 (2, 525) of which SEKm 1,232 (1,378) were new constructions, extensions and reconstructions and SEKm 2,321 (1,147) were acquisitions. Of the total investments SEKm 1,077 refers to Greater Stockholm, SEKm 847 to Greater Gothenburg, SEKm 811 to Mälardalen, SEKm 533 to Öresund Region and SEKm 285 to Eastern Götaland.

certified.

After sales of SEKm 1,140 (3,054), net investments amounted to SEKm 2,413 (–529).

During year Castellum acquired 50% of the shares in CORHEI Fastighets AB (former Ståhls)

for SEKm 505. The company owns and manage properties in Norrköping and Linköping totalling approx. SEK 2 billion. See page 16 for more information. Agreements have also been concluded for the acquisition of two office properties under construction, one in Hyllie in Malmö for SEK 327 with change of possession scheduled to April 2016, and one in Hagastaden, Stockholm for SEK 1.6 billion with change of possession scheduled to February 2017. The properties will be accounted for when the change of possession has taken place due to the agreements which is conditional upon i.e. completion.

Solid market knowledge and understanding of customer needs provide the basis for analysis of new- project potential. A review is made of market conditions, investment volume, risk inventory, In the idea-and-development phase, information and knowledge about the projects deepen. Final design and contract

3. ONGOING PROJECTS

Castellum is currently engaged in projects totalling approx. SEKm 2,000. Upon completion, newly acquired competence is transferred to

Larger ongoing projects

Lindholmen 30:5 in Gothenburg

In December 2014, Castellum acquired one of the last buildable plots for commercial properties on Lindholmspiren in Gothenburg. On this site, located in the middle of the international engineering cluster at Lindholmen Science Park, Castellum began construction on Blenda – a 9,243 sq. m. high-quality office property – in May, 2015. Blenda is being built to comply with the BREEAM environmental certification system, with the goal of attaining the top rating level: excellent. Through Eklandia, Castellum is the largest private owner of commercial properties at Lindholmen. After Blenda's completion, the company will own office space totalling over 53,000 sq. m. in the area.

The investment is estimated at SEKm 265, including the value of the building plot, totalling SEKm 53. The new building is expected to be completed during the first quarter of 2017, and the economic occupancy rate is 22%.

LOCATION: Lindholmen Science Park in Gothenburg AREA: 9,243 sq.m. TIME PLAN: Completed Q1, 2017 CERTIFICATION: BREEAM level excellent INVESTMENT: SEKm 265

Varpen 10 in Huddinge

LOCATION: Smista area in Huddinge AREA: 2,520 sq.m. TIME PLAN: Completed Q4, 2016 CERTIFICATION: Miljöbyggnad level silver INVESTMENT: SEKm 66

In Smista, Stockholm region's leading cluster for car sales, Castellum has started a fully let new construction of 2,520 sq.m. for car sales. In the area Castellum has developed approx. 49,000 sq.m. since the millennium shift.

Verkstaden 14 in Västerås

LOCATION: Kopparlunden in central Västerås AREA: 6,100 sq.m. TIME PLAN: Completed Q1, 2016 CERTIFICATION: – INVESTMENT: SEKm 84

Kopparlunden is an area in central Västerås with a mix of modern technology and a century of industrial tradtion. Castellum owns approx. 12,000 sq.m. of building rights in the area. In 2015, the Company started an extension of 3,800 sq.m. and a reconstruction of 2,300 sq.m. The investment is calculated at SEKm 84 and is fully let.

LARGER ONGOING PROJECTS 2015

			Rental value		Investment, SEKm
Name of property	Area, sq.m.	SEKm	SEK/sq.m.	Econ. occup. January 2016	Total	Remaining	Completed	Commet
Lindholmen 30:5, Gothenburg	9,243	23	2,500	22%	265	170	Q1 2017	New construction office
Drottningparken, Örebro	4,280	9	2,050	100%	100	40	Q3 2016	New construction office
Majorna 163:1, Gothenburg	5,867	9	1,500	75%	88	77	Q4 2016	Reconstruction office and warehouse
Verkstaden 14, Västerås	6,100	9	1,400	100%	84	17	Q1 2016	Extension and reconstruction education facilities
Varpen 10, Huddinge	2,520	5	2,050	100%	66	55	Q4 2016	New construction car retail
Tjurhornet 15, Stockholm	5,786	1	250	–	56	53	Q3 2016	Parking facilities
Ringspännet 5, Malmö	3,333	5	1,350	100%	52	44	Q4 2016	New construction car retail/garage
Verkstaden 14, Västerås	1,844	4	2,000	46%	45	44	Q2 2017	New construction office
Sändaren 1, Malmö	2,771	4	1,550	100%	44	41	Q2 2017	Reconstruction office

BREEAM evaluates and rates the overall environmental impact of buildnings.

Miljöbyggnad is a certification system that aims to create environmentally sustainable buildings. It takes into account energy, indoor environment and building materials. Green Building means that energy consumption is 25% lower than the energy requirements in Boverkets building regulations.

Drottningparken in Örebro

LOCATION: South entrance of Örebro AREA: 4,280 sq.m. TIME PLAN: Completed Q3, 2016 CERTIFICATION: Miljöbyggnad level silver INVESTMENT: SEKm 100

In Örebro at the end of 2014, Castellum started a new construction of 4,280 sq.m. flexible office premises. The new building is well situated at the south entrance of Örebro and will be completed in accordance with the environmental system Miljöbyggnad, level silver.

The investment is calculated to SEKm 100. The new building is fully let and scheduled to be completed during the third quarter 2016.

Majorna 163:1 in Gothenburg

LOCATION: South Shore in Gothenburg AREA: 5,867 sq.m. TIME PLAN: Completed Q4, 2016 CERTIFICATION: Miljöbyggnad level silver INVESTMENT: SEKm 88

In the Klippan area, on the South Shore of Gothenburg, a reconstruction of 5,867 sq.m. office- and warehouse premises was started at the end of 2015. The project will be completed in accordance with Miljöbyggnad, level silver.

The investment is calculated at SEKm 88. The building will be completed during fourth quarter, 2016 and has an occupancy rate of 75%.

Larger completed projects

Varla 3:22 in Kungsbacka

LOCATION: Varla in Kungsbacka AREA: 5,000 sq.m. COMPLETED: Q1, 2015 CERTIFICATION: Greenbuilding INVESTERING: SEKm 42

In Varla, Kungsbacka, Castellum has completed a fully let reconstruction of 1,000 sq.m. and an extension of 4,000 sq.m. flexible warehouse premises.

Boländerna 35:1 in Uppsala

LOCATION: Boländerna in Uppsala AREA: 8,716 sq.m. COMPLETED: Q1, 2015 CERTIFICATION: – INVESTMENT: SEKm 38

In Uppsala Castellum has completed a reconstruction of a retail building of 8,716 sq.m. The property is located near the company's existing portfolio and has an occupancy rate of 98%.

Lundbyvassen 8:1 in Gothenburg

Castellum completed a fully let office building of 8,990 sq. m. in central Gothenburg. The property is located close to Castellum's existing portfolio, in close conjunction with the Frihamnen area, where Gothenburg is planning to increase the density of the city centre. 15,000 people will reside in the area, and as many jobs will be created. The building was built according to the Green Building standards.

Total investment amounted to SEKm 217.

LOCATION: Lindholmen, Gothenburg AREA: 8,990 sq.m. COMPLETED: Q1, 2015 CERTIFIERING: Green Building INVESTMENT: SEKm 217

Algen 1 in Jönköping

LOCATION: By Munksjön i central Jönköping AREA: 4,398 sq.m. COMPLETED: Q3, 2015 CERTIFICATION: Miljöbyggnad level silver INVESTMENT: SEKm 140

In central Jönköping Castellum completed the second phase in the development of the Atollenarea, which has been carried out together with several partners. The new construction 4,398 sq.m. office, retail and restaurant premises and will be completed in accordance with Miljöbyggnad, level silver.

The investment amounted to SEKm 140 and the occupancy rate is 83%.

Jägmästaren 1 in Linköping

LOCATION: Djurgården, Linköping AREA: 8,774 sq.m. COMPLETED: Q1, 2015 CERTIFICATION: Miljöbyggnad, level silver INVESTMENT: SEKm 109

In 2013, Castellum initiated an investment in the Djurgården area, Linköping, which is an urban development project of a new city district. Castellum has now completed a retail building of 8,774 sq.m., in accordance with the Miljöbyggnad environmental system, silver level.

The investment amounted to SEKm 109 and is 97% leased.

Visionen 3 in Jönköping

LOCATION: A6-area in Jönköping AREA: 2,472 sq.m. COMPLETED: Q3, 2015 CERTIFICATION: Miljöbyggnad, level silver INVESTMENT: SEKm 60

In connection with Castellum's existing portfolio in the A6 area in Jönköping, Castellum started a new construction of 2,472 sq.m. office premises 2014, which are now completed. The new construction complies with Miljöbyggnad, level silver.

The investment amounted to SEKm 60 and the building is fully let.

LARGER COMPLETED PROJECTS 2015

Name of property	Area, sq.m.	Rental value SEKm SEK/sq.m.		Econ. occup.- rate January 2016	Total investment land incl., SEKm	Completed	Comment
Lundbyvassen 8:1, Gothenburg	8,990	18	2,000	100%	217	Q1 2015	New construction office
Algen 1, Jönköping	4,398	11	2,550	83%	140	Q3 2015	New construction retail/office/restaurant
Jägmästaren 1, Linköping	8,774	10	1,100	97%	109	Q1 2015	New construction retail
Visionen 3, Jönköping	2,472	6	2,400	100%	60	Q3 2015	New construction office
Varla 3:22, Kungsbacka	5,000	4	700	100%	42	Q1 2015	Extension and reconstruction warehouse
Boländerna 35:1, Uppsala	8,716	2	1,350	98%	38	Q1 2015	Reconstruction retail
Godståget 1, Stockholm	6,568	4	1,450	100%	31	Q2 2015	Extension and reconstruction warehouse

BREEAM evaluates and rates the overall environmental impact of buildnings.

Major acquisitions in 2015

Bolsheden 1:4 in Kungsbacka

LOCATION: Along Säröleden between Gothenburg and Kungsbacka AREA: 17,804 sq.m. ACCESS: October 2015 INVESTMENT: SEKm 153

Castellum acquired the Bolsheden 1:4 property, by the Säröleden road in Kungsbacka, with an area of 17,804 sq.m. The investment totalled SEKm 153 and the company took possession in October, 2015.

The property – known in the area as Kungsporten – is well-situated, with transport communication to both Gothenburg and Kungsbacka. Kungsporten was built in 1991 and consists of seven buildings comprising office and retail space. Occupancy rate is 91%.

Kärra 75:2 and 75:4 in Gothenburg

LOCATION: Parallel to the E6 in the Tagene area, Gothenburg AREA: 15,943 sq.m. ACCESS: June 2015 INVESTMENT: SEKm 127

Castellum has acquired two warehouse and retail properties totalling 15,943 sq.m. in the Tagene area along highway E6. On the property, there is an unutilized building right of approx. 3,000 sq.m. The properties are situated adjacent to the company's existing portfolio.

The investment amounted to SEKm 127. Occupancy rate is 98%.

Hornsberg 10 in Stockholm

Castellum acquired a fully let property of 14,952 sq.m. on western Kungsholmen in Stockholm. The property comprises three interconnected buildings, with approx. area distribution: 9,500 sq.m. of office space; 2,000 sq.m. of retail space; and 1,400 sq.m. of laboratory space. The remaining space comprises a restaurant and storage. The Hornsberg area is in a development process, expected to last for many years, and several companies have chosen to locate their headquarters in the area. The investment totalled SEKm 421.

LOCATION: Western Kungsholmen, Stockholm AREA: 14,952 sq.m. ACCESS: September 2015 INVESTMENT: SEKm 421

Park Allé 373, Roholmsvej 19-21 and Generatorvej 6-8, Köpenhamn, Denmark

LOCATION: Albertslund, Brøndby and Søborg in northwestern Greater Copenhagen, Denmark AREA: 51,525 sq.m. ACCESS: January 2015 INVESTMENT: SEKm 377

In Denmark, Castellum has acquired three office and warehouse properties in Albertslund, Brøndby and Søborg, northwest of Greater Copenhagen. Infrastructure development is ongoing in the area. The investment amounted to SEKm 377 and the buildings have an occupancy rate of 82%.

Bromsgården 1, Gillet 22, Hållstugan 28 and Prästgården 12 in Örebro

LOCATION: Central Örebro AREA: 22,887 sq.m. ACCESS: May 2015 INVESTMENT: SEKm 343

In central Örebro, Castellum acquired four office and retail properties totalling 22,887 sq.m. The acquisition doubled Castellum's central-city portfolio in Örebro.

The investment amounted to SEKm 343, and the properties have an occupancy rate of 92%.

Marievik 27 and 30 in Stockholm

LOCATION: Marievik, Stockholm AREA: 13,087 sq.m. ACCESS: January 2015 INVESTMENT: SEKm 319

In Stockholm, Castellum acquired an office building of 13,087 sq.m., as well as a parking garage in Marievik, which has recently developed into one of southern Stockholm's largest office districts. The area is adjacent to Essingeleden and Södra Länken, and is conveniently located for public transportation.

The investment totalled SEKm 319, and the occupancy rate of the property amounts to 73%.

Gasklockan 2 in Mölndal

LOCATION: Åbro area AREA: 4,876 sq.m. ACCESS: December 2015 INVESTMENT: SEKm 64

Castellum acquired a fully leased industrial property in Mölndal. The investment amounted to SEKm 64.

Vakten 11 in Jönköping

LOCATION: A6-area in Jönköping AREA: 6,933 sq.m. ACCESS: October 2015 INVESTMENT: SEKm 128

In the A6-area in Jönköping, Castellum acquired a fully leased office property of 6,933 sq.m., featuring modern and versatile space for keep-fit activities, healthcare, offices and retail. After closing down the regiment in the mid-1980s, the A6-area developed into the region's largest retail area, as well as the second largest business campus after Jönköping's city centre. The investment totalled SEKm 128.

Lindholmen 28:1 in Gothenburg

LOCATION: Lindholmen, Gothenburg AREA: 3,898 sq.m. ACCESS: February 2015 INVESTMENT: SEKm 115

In the area of Lindholmen in Gothenburg, Castellum acquired a office building of 3,898 sq.m. Location is by Lindholmsbassängen, connected to a property that the company already owns.

Over the past 15 years, the Lindholmen Science Park has developed into an international innovation environment, where more than 20,000 people a day come to work or conduct research – or to pursue studies in IT, Transportation or Media. Future expansion is anticipated and planned: By 2020, it is estimated that as many as 30,000 people will base their employment or studies in Lindholmen.

This investment amounted to SEKm 115 and the occupancy rate of the property amounts to 90%.

LARGER ACQUISITIONS DURING 2015

	Area,	Rental value		Econ. occup.-	Acquisitions
Name of property Hornsberg 10, Stockholm	sq.m. 14,952	SEKm SEK/sq.m. 31	2,050	rate January 2016 100%	price SEKm 421	Access Sept 2015	Category Office
Park Allé 373, Roholmsvej 19-21 and Generatorvej 6-8, Copenhagen	51,525	53	1,050	82%	377	Jan 2015	Office/warehouse
Bromsgården 1, Gillet 22, Hållstugan 28 and Prästgården 12, Örebro	22,887	31	1,350	92%	343	May 2015	Office/retail
Marievik 27 and 30, Stockholm	13,087	31	2,350	73%	319	Jan 2015	Office, retail and parking facilities
Bolsheden 1:4, Kungsbacka	17,804	19	1,100	91%	153	Oct 2015	Office and retail
Vakten 11, Jönköping	6,933	10	1,500	100%	128	Oct 2015	Office
Kärra 75:2 and 75:4, Gothenburg	15,943	12	700	98%	127	June 2015	Warehouse, office and retail
Lindholmen 28:1, Gothenburg	3,898	9	2,450	90%	115	Feb 2015	Office
Gasklockan 2, Mölndal	4,876	7	1,350	100%	64	Dec 2015	Workshop space and office
Bangården 4, Solna	5,765	8	1,350	24%	63	May 2015	Project
Bleckslagaren 7, Örebro	5,810	4	650	55%	38	Dec 2015	Project
Rosersberg 11:130, Sigtuna	–	–	–	–	34	Dec 2015	Land

LARGER SALES DURING 2015

		Rental value
Name of property	Area, sq.m.	SEKm SEK/sq.m.		Underlying prop. price, SEKm	Transaction costs and deferred tax, SEKm	Net sales price, SEKm	Access	Category
Ekenäs 1-4, Karis 3 and 4 and Sätes
dalen 2 in Stockholm, Hammarby-Smedby
1:454 and 1:461 i Upplands-Väsby and Ring
pärmen 4 and Sjöstugan 1 in Sollentuna	88,563	127	1,450	836	– 36	800	Dec 2015	Office
Rankan 3 & 4, Sollentuna	–	–	–	198	– 15	183	July 2015	Land
Inom Vallgraven 22:3, Gothenburg	1,568	5	3,100	69	– 4	65	Feb 2015	Office/retail

Building Rights and Potential Development Projects

Part of Castellum's strategy is to build new premises. In order 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. 788,000 sq.m. unutilized building rights. For a number of the unutilized building rights there are finalized project plans which can be started relatively promptly.

Unutilized building rights are valued at SEKm 1,352 (1,184) corresponding to approx. SEK 1,700 (1,500) per sq.m. on average. Of the building rights approx. 360,000 sq.m. corresponding to approx. SEKm 883 (625) are reported as development projects and undeveloped land. The remaining are reported among office/retail and warehouse/industrial properties since they are addititions to already developed properties.

The strong urbanization trend in Sweden is leading to strong population growth in major city regions. This, in combination with a lack of housing, imposes the need for new constructions and, hence, for the conversion of primarily older office and industrial areas into residential space. This process is especially prevalent in Stockholm, where population growth and demand are strong and the housing shortage is substantial, but also occurs in Gothenburg. Moreover, the conversion from commercial activities to residential space reflects an overall urban development towards higher density urban construction and a more highly diversified city mix.

In submarkets where conversions are underway or are expected to occur, a leased commercial property can have a higher value as a residential building-right than as a commercial property. This affects property value. The size of the value impact depends on several factors. The most significant of these is the zoning development plan, i.e. the probability for future development, the permitted building-rights volume and the development timeframe.

In Castellum submarkets, mainly Bromma/ Mariehäll and Johanneshov in Stockholm, there is an ongoing process of plan changes which will lead to gradual conversion of older office and industrial premises into residential space. However, as the city grows, new areas are being added to the list of areas subject to conversion.

Building rights by region and sq.m.

Eklandia Logistics Park in Gothenburg

Eklandia and four other players plan to jointly create a new logistics park in close proximity to the Port of Gothenburg: the Port of Gothenburg Logistics Park. The initiative is one of the largest of its kind in Sweden. The location near Scandinavia's largest port, featuring key industries and access to good infrastructure, is perfectly suited for efficient warehouse and logistics operations. The allocated land allows for new constructions of up to 70,000 sq.m.

Kungspassagen in Uppsala

Aspholmen Fastigheter is constructing the Kungspassagen office building in one of the city's best locations, close to both the travel centre and the city's entire range of restaurants, services and shopping.

The new office building will be built according to the Miljöbyggnad environmental classification system (silver level, minimum), and feature solar cells, green electricity and carbon-neutral district heating.

Sustainability is a requirement for economic growth

Castellum is one of the largest players in the industry, but survivability is based on continuous development of the company. Sustainability activities are about conducting business in a responsible manner and creating sustainable solutions from economic and ecological, as well as social perspectives.

Highlights - Castellum sustainabilty performance in 2015

AWARDS AND ASSESSMENTS

In 2015, Castellum was awarded the World Green Building Council's highest distinction Business Leadership in Sustainability. The prize is awarded to encourage leading companies in their pursuit of sustainability and to inspire "best practice" in sustainable construction, corporate engagement and sustainable projects.

In the GRESB's (Global Real Estate Sustainability Benchmark) survey, Castellum earned the highest level for the sustainability work: Green Star 2015. This award means that Castellum is one of the world's highest-rated companies in sustainability within the real estate sector.

Castellum achieved a high score in the CDP sustainability index: 93 B of 100 A-E. This rates Castellum among the most sustainable companies in the world.

Castellum has signed the United Nations Global Compact and thus stands behind the UN's ten principles on human rights, labour, the environment and anti-corruption.

Sustainability efforts at Castellum

CONTROL DOCUMENTS REGARDING THE SUSTAIN-ABILITY ACTIVITIES

Regulations that control Castellum's sustainability efforts:

External regulations

Global Compact
Swedish Companies Act
The Swedish environmental Code
Work environment Act • Environmental classifications
Green Building,
Miljöbyggnad, BREEAM • Other applicable laws and regulations
Important internal regulations
Sustainability policy
Code of Conduct
Code of Conduct for suppliers and partners
Internal environmental management system
Internal control processes • Other instruction

Global Compact

Castellum has signed FN Global Compact, which is an initiative to coordinate matters of human rights, labor conditions, environment and anti-corruption. Global Compact includes 10 principles:

1. Support and respect the protection of internationally proclaimed human rights.
1. Make sure that they are not complicit in human rights abuses.
1. Uphold the freedom of association and the effective recognition of the right to collective bargaining.
4.Effective abolition of child labour.
5.Elimination of all forms of forced and compulsory labour.
1. Elimination of discrimination in respect of employment and occupation.
1. Businesses should support a precautionary approach to environmental challenges.
1. Undertake initiatives to promote greater environ mental responsibility.
1. Encourage the development and diffusion of environ mentally friendly techno logies.
1. Work against corruption in all its forms, including extortion and bribery.

Sustainability efforts have always been a natural part of Castellum operations. As a long-term player and community builder, it has been natural to contribute in various ways to the development of a sustainable society. Sustainability is usually divided into three different dimensions: ecological, social and economic sustainability.

For Castellum, ecological sustainability means utilizing resources such as energy and water as wisely and efficiently as possible. For our core business activities, it also means that new constructions as well as extensions and reconstructions are built according to high environmental standards.

Social sustainability means Castellum is actively committed to the communities and regions in which we operate, as well as cooperating with customers, municipalities and other partners. This also means that Castellum collaborates with schools and universities and offers young people apprenticeships and summer jobs. And, naturally, we look out for – and care for – Castellum employees.

Castellum's sense of responsibility also extends to customers and shareholders, and the long-term sustainability strategy provides a natural foundation for financially sustainable growth.

Organization and governance of sustainability efforts

Our sustainability efforts permeate all operations and they are controlled via a management system comprising a common policy, guidelines, overall measurable objectives and detailed action plans. The aim of this work is to monitor, document, evaluate and improve Castellum's sustainability activities. Activities are conducted locally by each subsidiary, followed up annually and regularly reported to Executive Group Management. Castellum has designated a Sustainability Coordinator, who works for the Group as a whole. Castellum's Board of Directors annually adopts the sustainability policy an Code of Conducts as well as continuously

discussing and following up various efforts. Castellum's CEO is ultimately responsible for the entire sustainability file.

Further, our sustainability efforts are regularly audited by an external party: For example, through audits in compliance with the Environmental Diploma, based on the environmental management systems ISO 14001 and EMAS. A joint sustainability group develops activities, shares experiences and monitors relevant changes in the global environment.

Castellum's sustainability efforts require committed and skilled employees; further training in sustainability issues is therefore offered on a regular basis. In 2015, a joint sustainability course was conducted for all Group employees, and training for new employees is held on an ongoing basis.

Presentation of Castellum's sustainability efforts

Castellum is now presenting sustainability activities in accordance with GRI guidelines for the third year in a row. It has been based on GRI G4, Core level, since 2014, and the GRI index can be found on page 142.

Stakeholder dialogue

To develop and improve operations, Castellum has identified and analyzed stakeholder expectations of our business. In 2014, stakeholder dialogues were conducted with customers, Executive Group Management, employees and the Board of Directors to discuss which sustainability issues they considered most important for Castellum.

Results from these stakeholder dialogues, combined with the company's own evaluation of operations, mean that Castellum focuses on the following areas:

Efficient use of resources
Sustainable real estate portfolio
Sustainable collaboration

- Social commitment and responsibility

A SUMMARY OF CASTELLUM'S SUSTAINABILITY EFFORTS SINCE 1995

Castellum started the sustainability efforts in the mid 90's when the company was founded, with focus on energy- and material issues. To be at a close range in the communities where Castellum is active and contribute to positive development has always been an important part of Castellum's strategy.

Policies, guidelines and overall targets are estabilshed Environmental manage ment system established Robur classes Castellum's environmental work as "a model for the industry" A group-wide environ mental task force is formed Green electricity for the group Web-based surveillance of operations commences Code of conduct adopted	Brostaden becomes the first "Green Building Corporate Partner" in Europa Eklandia complete Sweden's first BREEAM-certified property Harry Sjögren is appointed as "Green Building Corporate Partner" in Europa Brostaden is appointed as "Green Building Corporate Partner of the year" in Europa Sustainability course for all employees	Policy that all new constructions should be environ mentally classified at least Miljöbyggnad Silver FN Global Compact is signed Eklandia gets awarded for a long term cooperation with youths in school Briggen won Sweden Green Building Award in the class "Miljöbyggnad i new construction" and Eklandia in "BREEAM post constructions" Whistleblower-function oered employees and external parties. Aspholmen wins UNT's Urban development award for the "block" Svalan in Uppsala Castellum was awarded GRESB "Green star" and Business leadership in sustainability World Green Building Council Adhere to the government's initiativ "Fossilfree Sweden"	By 2017, Energy consump tion is to be 30% lower than 2007 and CO emissions 70% lower 2 90% of the energy will come from fossil free energy before 2020 Sustainable urban development Low impact on the climate Eective use of resources Equality in all aspects
Year 1995			FUTURE

The school project that won a collaboration prize

A long-term cooperation, important for both parties. This best describes Eklandia's twelve-year long relationship with the Brunnsboskolan lower secondary school on the island of Hisingen in Gothenburg. The idea is that both the school and the business community benefit from working together. The project has received the Utmärkelsen collaboration prize. "We want to give pupils an insight into how the workplace works. As one of Gothenburg's largest real estate companies, it's natural for us to take social responsibility", says Cecilia Buttwill, Communications Manager at Eklandia. "We see that both parties benefit from this".

From apprentice to a permanent job

Waleed Mahdi, now Facility Manager at Harry Sjögren AB, Gothenburg, applied for and landed an apprenticeship position in 2013 – in competition with 35 other candidates. After three months, he took on a probationary position, and has now been a permanent employee for almost two years. "I have a fun job, and we're a great gang helping each other out", says Waleed. "No one day is like another: It's about being available, providing quick service and solving problems. In my job, there's lots of room for taking responsibility and coming up with resourceful solutions that make our customers happy."

The sunny shop window in Mölndal

A shop window that attracts interest as it demonstrates how to produce – as well as how to conduct research on – sustainable electricity. This is an important part of Swerea IVF's Mölndal operations. Here, the energy utilized in the building is generated by solar cells on the roof, while Swerea IVF continues to further advance their photovoltaic technology. Mölndal Energi joins Castellum via Harry Sjögren AB, to participate in this collaboration project. "One purpose is to stimulate existing and new tenants to integrate environmental priorities into their daily operations – and view this as a competitive advantage", says Jens Wallén, Sustainability Manager at Harry Sjögren.

The first real estate company in Fossil-Free Sweden

Castellum is the first real estate company to join Fossil-Free Sweden – the government initiative launched in connection with the UN climate change conference in Paris in December, 2015. A primary aim is to highlight the ambitious environmental activities carried out in Swedish companies with the goal of making Sweden one of the world's first fossil-free countries. "This initiative is in line with Castellum's ambitions in the area of sustainability", says Filip Elland, the Group's Sustainability Coordinator. "One of our goals is that 90% of all the energy used in the Group should be renewable by 2017; another that our vehicle fleet should be independent of fossil fuels by 2020."

Everyday skimping generates energy gains Since the mid-1990s, Castellum has worked with energy efficiency. It is continuous and systematic work – regular monitoring and action-taking. "We can summarize this as everyday skimping – constantly thinking about these issues and carrying them with us", says Filip Elland, Sustainability Manager at Castellum. "It leads to improved performance on the properties as well as a healthy indoor climate for our customers."

Castellum has had a common Group goal since 2007, and since then, energy consumption has decreased by 28%.

Castellum's role in society

HELENA AGBLAD HR APPRENTICE AT CASTELLUM AB, 2015

"I came to Castellum straight after my three-year studies program in Human Resource Management and Labour Relations. While studying, I longed to see and understand how a company works in reality.

Apart from what I'd learned in a number of summer jobs, it felt important to finally get this first longer experience of a company organization and how the business is constructed. I received an overview that stretched over both the parent company and its subsidiaries, and obtained valuable experiences that I'll benefit from far into the future.

The reason I chose this education was my interest in organizational issues, combined with my basic values: a belief that people's attitudes and actions make a difference. During my time at the company, I received great support from my mentor at Castellum – which I appreciated."

Generated and distributed economic value Value generated according to GRI-indicator G4-EC1

Creating long-term value

As a real estate owner, Castellum is a long-term player focusing on profitability at low risk and financial strength. Castellum contributes to urban development in the communities wherein the Group operates and provides efficient property management. This creates value for both customers and employees and reduces costs as well as environmental impact.

Castellum's strategy for developing and adding value to its real estate portfolio at low financial risk provides the basis for distributing a competitive dividend to shareholders.

Taxes constitute an important issue for the real estate industry and include income tax as well as VAT, property taxes, withholding taxes, payroll taxes etc. Castellum's main approach is that accurate taxes are to be paid in accordance with current legislation.

A compliance officer monitors that laws and regulations are complied with, and reports directly to the Board of Directors' Audit and Finance Committee.

Development of our growth regions

Castellum collaborates through over 60 networks and business associations to develop all regions that host our operations.

We also cooperate continuously with other parties to push development, share knowledge about new technologies and exchange experiences. Examples of networking partners include the EPRA Sustainability Committee, The Energy Agency's Beställargrupp för lokaler (BELOK), Sweden Green Building Council, energy companies, local sanitation companies and Chalmers. Harry Sjögren collaborates with Swerea in Mölndal to develop photovoltaic plants.

During 2015, Castellum's premises in several locations were used as meeting places, workplaces or storage to help with the refugee crisis.

Castellum's sponsorship and support are focused on promoting young people's education and health. For example, Castellum sponsors the Science Festival, the Ung Företagsamhet organization, Vårstafetten and local sports clubs. Further, Castellum contributes directly to the City Mission, Rescue Mission, Polstjärna and the Childhood Cancer Foundation.

Youth support

Castellum works proactively through direct employee involvement in various social issues to offer young people work experience. In 2015, a total of 75 young people worked at Castellum as vacation workers, apprentices, trainees, and

through mentorship and/or thesis writing. Eleven of the young people were apprentices.

We participated in ongoing collaborations with universities, colleges and elementary schools at several locations regarding thesis writing and mentorship – including the supervision of three Master's theses.

There is also direct collaboration through Eklandia, which follows a lower-secondary school class during a prolonged period, and collaboration via CMB (Centre for Management of the Built Environment) at Chalmers in Gothenburg.

Our suppliers

There are clear sustainability requirements for new constructions and extensions, as well as for the purchase of goods and services. For the most part, Castellum hires local suppliers – where heating, cooling, water and electricity suppliers account for a large share of the hired suppliers.

For larger purchases and procurements, suppliers and contractors are audited for such sustainability factors as: material-content, quality and work environment. Although requirements are not identical for all procurements, there are general, overall demands regarding the Environmental Management System, Environmental manager and choice of sustainable building materials, as well as for environmental and waste-management plans.

Requirements for new constructions and major reconstructions follow the regulations of one of the environmental classification systems such as Miljöbyggnad, EU Green Building or BREEAM. For each major procurement, there are specific administrative regulations as well as work environment requirements.

During 2015, a Group-wide Code of Conduct for suppliers and partners was drawn up.

Work environment

Castellum protects and supports both employees and suppliers, and it is our responsibility to see that no one is hurt, either physically or mentally, due to workplace activities.

In 2015, all management teams of the Group underwent detailed health and safety training.

Legal requirements are firmly established within the Castellum Group, and work-environment efforts form a continuous process with constant potential for improvement.

Customers

Key success factors include the organization's knowledge and feel for local markets. With six independent subsidiaries, Castellum makes business decisions directly, within local markets. We can thus offer customers shorter decision-making processes, quicker responses and smoother-running business activities. In addition, customers can enjoy the increased security provided by a large national corporation.

High-quality and long-term customer relations are a prerequisite for creating growth at Castellum and the work is regularly followed up in customer questionnaires. A high proportion of the respondents, nearly 9 of 10, replys that they are willing to lease from Castellum again and gladly recommend Castellum as a landlord to others.

Beeing close to the customer

Castellum's organization, comprised of locally based subsidiaries, provides a close relationship to the customer and a short decision-making process. Castellum employees work close to the market, which means natural access to fresh information about customers' current and future operations. Customers can thereby be offered premises suited to their needs and benefit from optimal personal service and quick answers.

Castellum, as one of the largest real estate owners on local markets co-operate with municipalities and local networks, such as corporate associations, to be an active urban developer that creates attractive work environments for the customers.

Satisfied customers

It is vital that Castellum meets customer expectations. To evaluate and follow up on our efforts, an external customer survey is carried out annually: the Satisfied 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 2015 – which included offices, retail, warehouses and industry – comprised a majority of Castellum's major customers. The survey continues to show consistently high marks for Castellum, with a weighted index of 80 out of 100. This is higher than the industry

BJÖRN PELLNOR FACILITY MANAGER AT COR ALLEN IN JÖNKÖPING

"It's my job to represent the company's image to the outside world every day. It means I have to build and nurture relationships. I try to look at the job from a customer perspective, to be there for them, and be able to help – quickly. A satisfied customer is also a loyal customer, and in Jönköping we increased our Customer Satisfaction Index sharply in the latest survey. It felt really amazing!"

RENTAL AND RENEGOTIATION PROCESS

Castellum provides premises for growing Swedish business and holds approx. 4,500 contracts, corresponding to a rental income of approx. SEKm 3,000. 21-23% of the leases mature each year. Approx. 11% are prolonged on unchanged terms, approx. 7% are given notice by the customer, 2% are given notice for renegotiation by the customer and 1% are given notice for renegotiation by Castellum.

During 2015, the organization signed 668 leases, with a total annual value of SEKm 316. 78% came from Castellum's own contacts.

NKI 80

The result of our Satisfied Customer Index surveys increased again. It's proof that our daily cooperation with customers works for us.

benchmark of 75. Service willingness shows the highest index and includes parameters such as personal attention, service and availability.

A significant portion of the customers surveyed, 88%, reply that they are willing to lease from Castellum again and gladly recommend Castellum as a landlord to others.

Castellum's customers reflect Swedish business life

Castellum has balanced risk distribution in the commercial contracts regarding geography, type of premises, size, length of contracts and customer industry. This means that Castellum's commercial contracts reflect Swedish trade and industry, as well as the Swedish economy, generally.

Castellum has approx. 4,500 commercial contracts and the single largest contract accounts for approx. 2% of Castellum's total rental income.

Leasing activity

Castellum enjoys high leasing activity. During 2015, the Group signed 668 new leases with a total annual value of SEKm 316. Robust leasing activities indicate the importance of taking care of customers and networks. Of the newly signed leases, 78% came from Castellum's own networks, recommendations or existing customer expansions, while 12% originated from websites and the remaining 10% came through agents.

Commercial leases

Commercial leases are generally signed for 3-5 years, with a 9-month notice period, and are paid quarterly in advance. The rental level can change when the lease in question is due for renegotiation.

Leases usually include a base-rent - i.e. the rent agreed upon when signing the contract - and an index clause that provides for an annual adjustment of the rent: either as a certain percentage of previous year's inflation or as a minimum upward adjustment of a set percentage.

A lease may also contain an addendum for the tenant's share of the property's total heating, cooling and property-tax costs.

Sustainability goes hand in hand with longterm growth and Castellum offers both current as well as new customer green leases which means that both parties collaborate on issues such as energy efficiency and indoor environment, choice of building material and source-separation of waste. The aim is to reduce environmental impact at the premises. 24 new green leases were signed during 2015 and Castellum has 62 green leases in total.

Lease maturity structure

Distribution of leases by industry

Organization and employees

During 2015, Castellum introduced a new common visual identity to clarify and demonstrate the common strengths and local power of Sweden's growth regions.

As of year end, Castellum had 299 employees (295) of which 38% were women (39%).

Employee turnover during the year has been 13% (11%) and absence due to illness 3% (3%).

76 of Castellum's 299 employees have collective bargaining agreements.

	64 84
	48 93
1	9
	113 186

Division of labour, number

Customer relations/
Property management		28 115
Finance/administration/IT 52 38
Marketing/leasing	24	7
Business and project development		9 26
Total		113 186
Employment type, number
Permanent employees		105 185
Part-time employees	8	1
Total		113 186
Employment contracts, number
Permanent employees		112 182
Projects employees	1	–
Temporary employees	–	4
Total		113 186

A decentralized and small-scale organization infers deep local knowledge and interaction

Castellum's local presence creates business value through familiarity with customer operations and requirements, as well as valuable knowledge of the local real estate and rental markets, market changes and business opportunities. The decentralized organization provides a short decision-making process and creates an active organization.

Employees are offered challenging tasks via the flat organization, where competence development and experience exchanges are considered key success factors.

There is a clear correlation between satisfied employees, satisfied customers and company growth.

Castellum operates as one of the largest real estate companies, while remaining equipped to act as close to the market as the smallest

Castellum's organization consists of six subsidiaries. The subsidiary organizations are not identical, but principally consist of a Managing Director, 2-4 market areas and a number of business developers, along with 4-8 employees within finance and administration. Each market area employs one property manager with one assistant, one person working with leasing and 3-9 facility managers. Everyone has customer contact.

Castellum's subsidiaries operate under their own names, which represent strong brands in each submarket. During 2015, Castellum introduced a new common visual identity to clarify and demonstrate the common strengths and local power of Sweden's growth regions.

Property management is mainly carried out by Group-employed 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.

Measuring and comparing

Castellum is responsible for capital allocation and measures and compares subsidiary management efficiency and asset-value growth in the real estate portfolio. Castellum develops best practice for the Group. As a part of this, a business development manager was appointed during the year. The parent company takes active part in operations through involvement in subsidiary Boards.

Castellum's operations are controlled by rules for decision making and work allocation, policies and instructions. Policies are in place for finance and financial work, communication, insider, sustainability, Code of Conduct for employess and suppliers and partners and crisis management.

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 financial risk management) as well as overall IT/ IS strategies and personnel matters. Castellum AB has 24 employees (23).

The parent company is resposible for capital allocation and takes active part in operations through involvement in subsidiary Boards.

Cooperating and exchanging experiences

Within the Group there are ongoing common development efforts and experience exchanges between subsidiaries in order to make upgraded expertise available in the entire organization. The joint development groups provide opportunities for continued improvements, and the groups include participants representing all subsidiaries. The groups regularly discuss issues within specific areas such as rental, finance, IT, operations, project development, sustainability, communication and personnel.

In addition to the permanent development

Age distribution - number of employees Satisfied Employees Index

groups, project teams handle current issues, for example, brand awareness and media monitoring.

The Group has a common intranet where experiencies and knowledge easily can be shared between the companies.

Attractive workplace

By offering competence development and creating a motivating work situation, Castellum promotes loyalty and job satisfaction. The decentralized organization means that each employee has well-defined 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 for identifying competence development needs. During 2015, 95% (93%) of all employees had performance reviews, of which 40% were women and 60% men.

Castellum cares for its employees and thus works with preventive health care, offers corporate wellness subsidies and provides substantial health insurance for both employees and their immediate families. Wellness programs are offered both for preventive purposes and for the continued well-being of the company's workforce.

A bonus-sharing program provides employees with the opportunity to benefit from their respective company's financial performance improvement.

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

Education

Castellum offers full possibilities for professional and personal development through internal and external training. In 2015, all employees participated in Group-wide sustainability training. The training focus was general knowledge of sustainable development, as well as Castellum's own sustainability efforts. In addition, employees of each respective subsidiary were offered individual training.

Committed employees

Employee viewpoints about Castellum are monitored regularly in a Satisfied Employees Index, surveying attitudes towards their own working situation, the company and management. The latest survey, carried out in 2014, continues to show a very high index: 85 on a scale of 100. This can be compared with a benchmark of 72. High results are shown for the fields of leadership, competence development and loyalty. The response rate was 97%, demonstrating deep commitment.

Results of employee surveys are important for further development of the company and its employees.

Values

Trust is the most important commodity for Castellum, and our common values can be summarized as worthy of trust, irrespective of whether we collaborate with customers, capital market participants or other stakeholders. Worthy of trust relies on:

creating responsible growth
solid knowledge of the local market
taking action with a long-term perspective
continuous improvement and development

Castellum takes long-term actions and strives to build long-term relationships with both customers and other partners. Castellum employees are ambassadors for the company culture, and employees understand that their actions are crucial to how the company is perceived.

Castellum's corporate culture is strong – as was shown in the Satisfied Employee Index survey.

Code of conduct

The code of conduct provides a basis for how Castellum employees should behave toward each other, toward customers and other external stakeholders. It is based on Castellum's values and the UN Global Compact principles and clarifies Castellum's position regarding human rights, working conditions, business ethics and information. Castellum is to provide quality service, abide by laws and regulations, never discriminate against anyone, and create a quality working environment and high safety level. Castellum also focuses on gender equality issues.

Castellum operations, conducted in Sweden and Denmark, are subject to each country's laws and regulations concerning, for example, working conditions, occupational safety and freedom of association. Castellum's HR manual addresses issues such as working environment, equal opportunities, salaries, pensions and company cars.

A preventative discussion on ethics and corruption issues is being carried out, throughout the Group, where preferred conduct for various everyday situations is examined and addressed. A pivotal element is that all employees understand and follow the code of conduct. No incidents of corruption were reported in 2015.

Castellum has a whistleblowing service, which can be reached via the entire Group's web pages. The service aims to help both employees and external parties to act responsibly.

TAGE CHRISTOFFERSSON HEAD OF BUSINESS DEVE-LOPMENT CASTELLUM AB

"Our Group-wide efficiency project, started in the spring of 2015, scored clear and positive results from its first year in operation. Next year's effect will be even greater. The project involves both cost savings and revenue increases in three areas: We coordinate and carry out more joint procurements. We adjust our pricing model. We make our media monitoring more efficient by common processes in the Group.

Media monitoring is largely about establishing more routines for how we utilize electricity and water – for example. Using common checklists, we can carry out speedier analyses and monitoring activities. In addition to the direct economic impact for business operations and our customers, lower energy consumption means reduced impact on the environment."

3%	2%
12%	7%
3%	2%
18%	11%

Environment

PAULA DE HOLLANDA SUSTAINABILITY COORDINATOR AT EKLANDIA

"Sustainability work is about acting for the long term, specifically, through three perspectives: ecologically, economically and socially. The operating viewpoint can be summarized in the English expression "There's no business to be done on a dead planet". If we ruin the environment, then there's no place for the business sector to develop. It's about how we can work more with social sustainability, diversity and gender equality, and about participating in the development of common platforms. During 2015 at Eklandia, we continued our efforts to certify existing buildings according to Miljöbyggnad and gain access to green district heating, as well as statistics on waste management. Furthermore, we continued our fruitful cooperation with Brunnsboskolan."

Resources are to be used efficiently and the real estate portfolio will develop in a sustainable way to reduce Castellum's climate impact – work that has been carried out in the Group since the mid- 1990s with positive results.

Both customers and employees are to be offered healthy and safe working environments on our properties. For this reason, Castellum works with environmental inventories and with recognized environmental certification of our buildings.

Improve energy efficiency

Castellum works continuously to reduce energy consumption by optimizing operations and investing in energy-efficient technologies. In 2015, over 80 major energy efficiency projects were undertaken. Castellum follows up and analyzes all energy consumption in a monitoring system. These close follow-ups mean that measures can be targeted to areas with the greatest efficiency potential.

Expansion is underway for Castellum's own portal for web-based property monitoring, to check values for operations, alarms, elevators and entries. This project is saving energy and time and it provides customer benefits in terms of better services through preventive measures. Today, 246 properties – representing 1,627,000 sq. m. – are connected to the portal.

In 2015, the normalized energy consumption for heating and property electricity decreased by 5% compared with the previous year. Since 2007, energy consumption has decreased by 28% per sq. m. in all. Castellum's heating consumption of 69 kWh/sq. m. can be compared with the industry average of 121 kWh/sq. m.

Increased share of renewable fuels

Out of Castellum's total carbon dioxide emissions, 5% are directly influenced by oil, gas, and service-, benefit- and pool cars (Scope 1). Remaining emissions can only be influenced indirectly, i.e., purchased energy such as district heating and electricity (Scope 2), 93% and travels by plane, train and taxi (Scope 3), 2%.

To reduce emissions, work is underway to phase out fossil fuels: There are currently 9 oil furnaces left. Geothermal heating/cooling is installed in 28 properties of 111,000 sq. m. Approx. 19% of customers are responsible for their own heating, and 28% for their property electricity. A total of 112 kW of solar cells are installed in Castellum properties, corresponding to a total of approx. 800 sq. m. of solar cells. In addition, there are two wind turbines totalling 3 kW.

As a user of district heating, Castellum is dependent on the district-heating plant's fuel mix when it comes to emissions of carbon dioxide. Today, Castellum makes use of 25 district-heating facilities, amounting to 91% 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, with the purpose of influencing those suppliers to reduce emissions. The transfer to green district heating with renewable fuels is ongoing and currently amounts to 16% of our district heating suppliers.

During 2015, carbon dioxide emissions decreased by 25% per sq. m. and since 2007 they have decreased by 48% per sq. m. Of Castellum's total energy use, 95% is fossil free.

Since 2001, only electricity labelled "environmentally friendly" has been used by the Castellum Group.

Almost all of Castellum's servers are now virtual. A virtual server means that a physical server has been replaced by software – and this also reduces energy consumption.

Target and outcome energy consumption per sq.m. Castellum's environmental certified buildings

Reduced amount of waste

For a long time, Castellum has actively worked on reducing the amount of waste that goes to landfill by providing recycling services. Follow-up is difficult since Castellum hires several sanitation companies, and only a few offer weight-monitoring. In addition, customer operations differ – as do their needs for waste disposal. Statistics are currently obtainable from 15% (11%) of the sanitation companies.

Water consumption

Water consumption is an important issue from a global perspective, but of less importance in Sweden. Castellum uses water from the municipal water system, monitors consumption and takes measures to reduce it.

During 2014, Castellum adopted a target implying that water consumption should be reduced by 5% per sq. m., by 2017, compared to 2013. Outcome to 2015 was –1% per sq. m.

Sustainable real estate portfolio through environmental certification

Environmental inventories were conducted for 93% of all properties to identify and address environmental and health risks. The remaining 7% will be inventoried in 2016. The environmental status is updated continuously. When a property is acquired, it is analyzed both in terms of energy utilization and environmental risk, and all new constructions and major reconstructions are environmentally certified.

The environmental risks in Castellum's real estate portfolio are considered to be small, and no significant fines have been paid for environmental crimes.

Castellum environmentally classifies buildings according to Green Building, Miljöbyggnad or BREEAM. Castellum currently owns 104 of Sweden's 277 Green Building-certified buildings, and Fastighets AB Brostaden and Harry Sjögren AB have each been appointed Green Building

Energy, carbon emission and water

Corporate Partner by the EU – which means that energy consumption has been reduced by a minimum of 25% in at least 30% of their real estate portfolios.

Eklandia Fastighets AB owns the first BREEAM certified building in Sweden. The distribution of Castellum's certified properties is shown on the chart on the previous page.

A total 20% of Castellum's real estate portfolio is environmentally certified according to Green Building, Miljöbyggnad or BREEAM. Further new construction is ongoing of additional 263 thousand sq.m. corresponding to 8%.

Common targets in the Group	Outcome 2015
Energy consumption per square metre will be 50% lower than the sector average 2017	43%
By 2017, energy use is to be decreased by 30% in re lation to the energy consumption in 2007 – implying an annual energy efficiency rate of at least 3%	– 28%
By 2017 carbon emissions are to be decreased by 70% in relation to the carbon emissions of 2007, implying an annual decrease of at least 6% per year	– 48%
90% of the energy will come from fossil free energy before 2020	95%
All vehicles will be fossil-fuel free 2020	25%
30% of the property portfolio is to be environmentally certified 2017	20%

Distribution of carbon dioxide emissions

ENVIRONMENTAL CERTIFICATION SYSTEM

Miljöbyggnad

Miljöbyggnad is a Swedish system that classifies buildings in terms of energy consumption, indoor environment and building materials. The system awards gold, silver or bronze levels and is used for both residential and commercial premises.

EU GreenBuilding

EU GreenBuilding focuses on improving the efficiency of energy usage. The requirement is to improve energy efficiency by 25%, or to use 25% less energy compared with new construction requirements in the building regulations [BBR] of the National Board of Housing, Building and Planning.

BREEAM

BREEAM, from Great Britain, is the most commonly used environmental classification system in the world. The system evaluates and rates the overall environmental impact of buildings.

	Change	Change	Total consumption		Intensity
		2014 to 2015 2014 to 2015	2015	2014		2015		2014
		Normalized	Absolute figures, MWh	Normalized MWh	Absolute figures, MWh	Normalized MWh	Absolute figures kWh/sq.m.	Normalized kWh/sq.m.	Absolute figures, kWh/sq.m.	Normalized kWh/sq.m.
Total energy consumption	– 3%	– 5%	239,731	261,985	246,978	276,563	90	98	93	104
which heating	– 1%	– 4%	167,522	189,776	168,896	198,481	61	69	61	72
which electricity	– 8%	– 8%	72,209	72,209	78,082	78,082	29	29	32	32
			Absolute figures tonnes CO2		Absolute figures tonnes CO2		(kg CO2/sq.m.)		(kg CO2/sq.m.)
Total CO2 emissions	– 25%	–	11,538	–	15,409	–	3.4	–	4.3	–
GHG Scope 1, transportation/gas (Direct GHG emissions)	– 25%	–	639	–	854	–	0.2	–	0.2	–
GHG Scope 2, (Indirect GHG emissions for e.g. purchased heat)	– 25%	–	10,720	–	14,339	–	3.2	–	4.0	–
GHG Scope 3, taxi, plane, train	– 17%	–	179	–	216	–	0	–	0.1	–
			Absolute figures, m3		Absolute figures, m3		Absolute figures, m3		Absolute figures, m3
Total water consumption	– 1%	–	747,334	–	740,170	–	0.3	–	0.3	–

The five largest real estate owners

GREATER GOTHENBURG	Premises thousand sq.m.	BORÅS	Premises thousand sq.m.	HALMSTAD	Premises thousand sq.m.
Castellum (Eklandia and Harry Sjögren)	1,016	Starwood Capital Group	123	Castellum (Harry Sjögren)	78
Wallenstam	470	Nordic Real Estate Partners	106	Corem	73
Platzer	460	Castellum (Harry Sjögren)	104	Klövern	61
Vasakronan	413	Wilfast	94	Fem Hjärtan	55
Balder	385	Klövern	81	Rikshem	55

Number of commercial premises (excl. residential) owned as at 31-12-2015. Municipal and State-owned companies and government institutions have been excluded. Source: Byggstatistik and Castellum

Rental levels and yield

Source: Forum Fastighetsekonomi

		GOTHENBURG		BORÅS		HALMSTAD
		Market rents SEK/sq.m.	Yield	Market rents SEK/sq.m.	Yield	Market rents SEK/sq.m.	Yield
	Best location	2,100 - 2,900	4.50% - 5.50%	1,000 - 1,400	5.75% - 6.75%	1,150 - 1,600	5.75% - 6.50%
OFFICE	Secondary location	800 - 1,800	5.50% - 6.50%	900 - 1,300	6.25% - 7.25%	800 - 1,000	6.50% - 7.50%
RETAIL	Best location	2,000 - 10,000	4.25% - 5.25%	1,800 - 3,200	5.50% - 6.75%	2,500 - 3,600	5.25% - 6.25%
	Secondary location	700 - 2,500	5.50% - 6.50%	800 - 1,600	6.25% - 7.50%	1,000 - 1,700	6.25% - 7.50%
WAREHOUSE/	Best location	450 - 900	6.50% - 7.50%	500 - 750	7.25% - 8.50%	500 - 850	7.25% - 8.50%
INDUSTRIAL	Secondary location	400 - 800	7.00% - 8.50%	400 - 600	7.50% - 9.00%	400 - 600	7.50% - 9.00%

Office and retail refer to rent incl. media, but excl. additions for property tax. Warehouse/industrial refers to rent excl. additions for media and property tax.

Continued high growth pace and large infrastructure investments

In Greater Gothenburg, well situated between three Nordic capitals and featuring the largest port in the Nordic area, high growth continues to flourish. The region is characterized by large infrastructure and urban development, with the goal of developing 25,000 new city-living residences and 40,000 new workplaces – just for starters.

Rental market

Greater Gothenburg's rental market generally remained stable with stable-to-rising rents. However, Central Gothenburg has a limited supply, combined with continued strong demand, resulting in higher rent increases than for Greater Gothenburg in general. This situation resulted in a prosperous market for both existing and newly

constructed office premises. The limitations in central Gothenburg also had a positive impact on the areas just outside the city centre, resulting in rising rents and lower vacancies. It also became evident that Lindholmen strengthened its role as one of Gothenburg's most attractive office locations, with a well-developed infrastructure. In both Borås and Halmstad, rents remained

The rental market in central Gothenburg remained stable, with limited supply and high demand. Lindholmen strengthened its role as one of Gothenburg's most attractive office locations.

unchanged, but a slight decrease in vacancies was noted.

Along with Borås, Gothenburg continued to consolidate its position as one of Sweden's leading logistics hubs, and there are plans for extensive construction of new warehouses and logistics facilities in both cities. This will be done on sites with approved local plans.

The retail rental market was characterized by some caution, which is not unique for this part of Sweden. The retail rental market has increasingly been affected by the rise of e-commerce.

Real estate market

In 2015, the transaction volume in Greater Gothenburg totalled approx. SEK 13 billion (19).

The turnover represents about 9% of the total transaction volume in Sweden. The largest single transaction was an office building in Gothenburg, acquired for approx. SEKm 750. Another major transaction was Volvo's sale of warehouse/ industrial properties for SEKm 450. Major transactions in the rest of the region comprised two retail properties totalling SEKm 190 and SEKm 100, respectively.

As previously, buyers were primarily funds and Swedish real estate companies, both listed and unlisted.During the year, a value increase was noted in the region, with some variation due to location, property type and quality. The highest increase in value occurred in central Gothenburg.

GREATER GOTHENBURG IN BRIEF

MANAGED BY: Eklandia Fastighets AB and Harry Sjögren AB

NUMBER OF EMPLOYEES: 88 REAL ESTATE PORTFOLIO IN: Gothenburg, Mölndal, Borås, Kungsbacka,

Alingsås and Halmstad AREA:1,198 thousand sq.m.

VALUE: SEK14.7 billion

DISTRIBUTION:

REAL ESTATE MARKET

TRANSACTION VOLUME 2015: SEK 13 billion (19)

SINGLE MAJOR TRANSACTION: SEKm 750 office property in Gothenburg

YIELD PRIME LOCATION OFFICE: 4.75% (in central Gothenburg)

CECILIA FASTH MANAGING DIRECTOR , EKLANDIA FASTIGHETS AB

"In 2015, Eklandia took a more active role in the urban development of Gothenburg, and started up projects such as Blenda in Lindholmen and Sillfabriken in Klippan. Furthermore, we're all set for developing Kungsportshuset in the very centre of the city."

"I'm proud that we have a strong relationship with our customers in all areas – something which per me ates our entire workforce. It means that many customers thrive, stay on or start up with us."

CHRISTER SUNDBERG MANAGING DIRECTOR , HARRY SJÖGREN AB

"At Harry Sjögren AB, we've once again succeeded in increasing the company's rental income as well as income from property management, thus creating conditions for continued growth. Our strength is to create, develop and retain a dynamic business relationship – thereby accommodating our customers to the fullest."

The five largest real estate owners

MALMÖ REGION
Wihlborgs	1,416
Castellum (Briggen)	597
Vasakronan	342
Kungsleden	241
Klövern	182

OF WHICH LUND	Premises thousand sq.m.	OF WHICH HELSINGBORG	Premises thousand sq.m.	COPENHAGEN	Premises thousand sq.m.
Wihlborgs	206	Wihlborgs	532	Nordea Ejendomme	1,140
Castellum (Briggen)	130	Castellum (Briggen)	174	Danica Ejendomme	1,050
Hemsö	90	Norrporten	112	Jeudan	830
Vasakronan	77	Catena	111	Dades	650
Estancia	73	Långeberga Logistik	75	ATP Ejendomme	646

OF WHICH HELSINGBORG
Wihlborgs	532
Castellum (Briggen)	174
Norrporten	112
Catena	111
Långeberga Logistik	75

COPENHAGEN
Nordea Ejendomme	1,140
Danica Ejendomme	1,050
Jeudan	830
Dades	650
ATP Ejendomme	646
Castellum (Briggen)	99

Number of commercial premises (excl. residential) owned as at 31-12-2015. Municipal and State-owned companies and government institutions have been excluded. Source: Byggstatistik and Castellum

	Rental levels and yield MALMÖ LUND		HELSINGBORG		COPENHAGEN
		Market rents SEK/sq.m.		Yield Market rents SEK/sq.m.		Yield Market rents SEK/sq.m.		Yield Market rents SEK/sq.m.	Yield
	Best location	1,750 - 2,550	5.00% - 5.65%	1,400 - 2,200	5.25% - 6.25%	1,100 - 1,800	5.25% - 7.00%	1,000 - 1,850	4.50% - 6.25%
OFFICE	Secondary location	950 - 1,300	6.25% - 7.50%	1,000 - 1,500	6.00% - 7.50%	900 - 1,400	6.00% - 7.25%	650 -1,100	6.25% - 8.00%
RETAIL	Best location	2,500 - 6,000	5.25% - 6.00%	2,500 - 4,500	5.40% - 6.50%	2,250 - 5,000	5.35% - 6.25%	3,000 - 22,000	4.00% - 5.75%
	Secondary location	950 - 2,500	6.15% - 7.25%	900 - 2,500	6.00% - 7.50%	1,000 - 2,000	5.75% - 6.75%	800 - 3,500	5.00% - 7.00%
WAREHOUSE/	Best location	600 - 900	6.75% - 8.00%	600 - 900	6.75% - 8.00%	550 - 850	7.00% - 8.00%	425 - 575	6.75% - 8.00%
INDUSTRIAL	Secondary location	500 - 650	7.50% - 8.50%	500 - 650	7.50% - 8.50%	475 - 775	7.25% - 8.50%	250 - 450	8.00% - 10.00%

Office and retail refer to rent incl. media, but excl. additions for property tax. Warehouse/industrial refers to rent excl. additions for media and property tax.

Source: Forum Fastighetsekonomi

ÖRESUND REGION

The largest Nordic region across national borders

The Öresund Region is the largest labour market region in the Nordic area. Powerful infrastructure development over the past several years has played an important role in development, and more than 25% of the combined GDP for Sweden and Denmark is produced here. With 14 universities and colleges, the Öresund Region is also Northern Europe's most knowledge-intensive region.

Unchanged rental levels in Malmö, despite a large proportion of new office space.

Rental market

In Malmö, a relatively large area of new office space was added to the market, and this is expected to continue during 2016 and 2017 as well, corresponding to approx. 50,000 sq. m. per year. Malmö is therefore characterized by both high relocation levels and customer demands for modern office space, which affects the older real estate portfolio. Nevertheless, both rental and vacancy levels remained unchanged in Malmö.

Demand for modern and effective warehouse and logistics premises remained relatively high.

In Lund – one of Sweden's leading research and development cities – work is underway to finalize MAXlab, and The European Spallation Source (ESS) is also

proceeding according to plan. Due to major local cutbacks, Lund will have a large supply of vacant premises, and this supply is likely to increase over the next few years. In 2015, however, both vacancy rates and rental levels remained unchanged.

In Helsingborg, newly constructed office space entered the market for the first time in many years, and more is expected in 2016, supplementing existing office facilities.

In 2015, the market for office space was stable to slightly positive in many areas. New construction of warehouse and logistics properties proceeded at a steady pace, due to demand.

In Copenhagen, 2015 saw an improvement in vacancy rates by 2-4%, depending on location. The improvement was most noticeable in the central areas of Copenhagen but also in areas outside the city centre. Rental levels remained stable.

Real estate market

In 2015, transaction volumes in the region totalled approx. SEK 40 billion, of which about SEK 14 billion relates to the Swedish side. Turnover

represents about 10% of the total transaction volume in Sweden. Compared with 2014, volumes increased on both sides of the strait; mostly in Copenhagen, however. The largest single transaction was the centrally located commercial property Illum, in Copenhagen, with a

purchase price of SEK 2.5 billion. On the Swedish side, the largest transaction was a shopping mall in Lund for SEK 1.6 billion.

Buyers on both the Swedish and Danish sides were mainly national real estate companies and institutions; foreign buyers constituted a smaller portion.

During the year, an increase in value was noted in the region, although with some variation due to location, property type and quality. Central office properties close to communications had the highest increase in value.

ÖRESUND REGION IN BRIEF

MANAGED BY: Fastighets AB Briggen NUMBER OF EMPLOYEES: 58 REAL ESTATE PORTFOLIO IN: Malmö, Lund, Helsingborg and Copenhagen AREA: 696 thousand sq.m. VALUE: SEK 7.8 billion DISTRIBUTION:

REAL ESTATE MARKET

TRANSACTION VOLUME 2015: SEK 40 billion (20) of which Sweden 14 (12) SINGLE MAJOR TRANSACTION: Denmark: SEK 2.5 billion for a retail property in central Copenhagen Sweden: SEK 1.6 billion for shopping mall in Lund YIELD PRIME LOCATION OFFICE: 4.5% (in central Copenhagen)

A FEW QUESTIONS FOR: OLA ORSMARK MANAGING DIRECTOR, FASTIGHETS AB BRIGGEN

What has been important for Briggen during the year? The fact that we've initiated a portfolio transfer and continued to increase our customer focus. Briggen's employees will become better at understanding customer needs in order to act quickly and make decisions in an increasingly mobile and changing world.

Is there anything else you'd like to highlight? Through the acquisition of the Mässhallen property, Briggen has created the conditions for growing in Hyllie – an area where a large part of Malmö's expansion is taking place. Briggen helps develop tomorrow's society.

The five largest real estate owners

STOCKHOLM

(Municipalities: Botkyrka, Huddinge, Järfälla, Nacka,
Sigtuna, Sollentuna, Solna, Stockholm, Upplands-Väsby)	Premises thousand sq.m.
Vasakronan	1,420
Fabege	1,072
FastPartner	757
Sagax/Söderport	750
Atrium Ljungberg	742
Castellum (Brostaden)	594

Number of commercial premises (excl. residential) owned as at 31-12-2015. Municipal and State-owned companies and government institutions have been excluded. Source: Byggstatistik and Castellum

Income from property management and growth Investments and sales Net leasing

Rental levels and yield

		GREATER STOCKHOLM
		Market rents SEK/sq.m.	Yield
	Best location	4,200 - 6,000	3.75% - 4.25%
OFFICE	Secondary location	1,500 - 2,800	5.00% - 6.00%
RETAIL	Best location	9,000 - 13,000	3.75% - 4.25%
	Secondary location	1,500 - 3,100	5.00% - 6.00%
WAREHOUSE/ INDUSTRIAL	Best location	800 - 1,100	6.00% - 7.00%
	Secondary location	600 - 950	6.50% - 7.50%

Office and retail refer to rent incl. media, but excl. additions for property tax. Warehouse/ industrial refers to rent excl. additions for media and property tax. Source: Forum Fastighetsekonomi

GREATER STOCKHOLM

Continued high population and employment growth

Greater Stockholm – the capital of Sweden – is characterized by continued high population growth. This means, for example, that previous work areas are being converted into residential areas. Here's where you'll find Sweden's largest ongoing infrastructure project – a new route for European highway 4, E4 – which will connect the northern and southern parts of Stockholm.

Rental market

Greater Stockholm had a positive rental market in 2015, combining strong demand and rising rental levels with unchanged-to-declining vacancy rates in a number of sub-markets. In central Stockholm, demand was high, resulting in increased rental levels for the top segment while the vacancy rate remained low.

The region is still characterized by a clear focus on modern and cost-effective office space. This has resulted in several companies streamlining their existing properties or relocating from downtown locations to newly constructed office premises outside the city centre. This process will continue in

close to Arlanda.

coming years. Noted effects include empty office premises downtown being converted into hotels and retail premises, and the external locations to which companies relocate are strengthened. As in recent years, the addition of office space in the region is not expected to affect either rental levels or vacancy rates.

Demand remained stable for warehouse and logistics facilities and no major changes occurred regarding rental levels and vacancy rates. New construction was limited.

What has been important for Brostaden during the year? 2015 was characterized by our ongoing portfolio transfer to more central locations, through acquisitions in Hagastaden and Kungsholmen. We've conducted the transfer through divestments and acquisitions. In addition, we've bought buildable sites for logistics purposes in Rosersberg,

The region's retail rental market was characterized by a transformation due to new construction and the reconstruction of several shopping malls.

Real estate market

In 2015, transaction volumes in Greater Stockholm totalled approx. SEK 44 billion (71), which is a clear decrease compared with 2014. The turnover

The rental market remained positive, showing high demand in Greater Stockholm. The trend of conversion to housing continues.

A COUPLE OF QUESTIONS FOR: ANDERS NILSSON MANAGING DIRECTOR, FASTIGHETS AB BROSTADEN

represents about 30% of the total transaction volume in Sweden. The single largest transaction was the acquisition of Skärholmen's shopping mall for approx. SEK 3.5 billion. Another major acquisition was the office property Fatburen for approx. SEK 3.1 billion. Brostaden acquired an office

project in Hagastaden, which will be completed in 2017, for SEK 1.6 billion. The buyer side consisted of listed Swedish real estate companies and Swedish and foreign funds.

As earlier, a number of sold commercial properties were destined for future housing conversions.

During the year, an increase in value was recorded in the region, with some variation due to location, property type and quality. The highest increases in value occurred for office and warehouse/logistics premises.

Is there anything else you'd like to highlight? I'd like to highlight the structured leasing activities we carry out at Brostaden. These allow us to assert ourselves effectively in our market, enabling us to sustain strong net leasing.

REAL ESTATE MARKET

TRANSACTION VOLUME 2015: SEK 44 billion (71)

SINGLE MAJOR TRANSACTION: SEK 3.5 billion Skärholmens shopping mall

YIELD PRIME LOCATION OFFICE: 4.0% (in central Stockholm)

STOCKHOLM IN BRIEF

MANAGED BY: Fastighets AB Brostaden

NUMBER OF EMPLOYEES: 47 REAL ESTATE PORTFOLIO IN: Botkyrka, Huddinge, Järfälla, Nacka, Sigtuna, Sollentuna, Stockholm and

AREA: 594 thousand sq.m.

VALUE: SEK 8.6 billion

DISTRIBUTION:

The five largest real estate owners

ÖREBRO	Premises thousand sq.m.	UPPSALA	Premises thousand sq.m.	VÄSTERÅS	Premises thousand sq.m.
Castellum (Aspholmen)	309	Vasakronan	225	Kungsleden	525
Klövern	99	Castellum (Aspholmen)	173	Klövern	260
Catena	96	Uppsala Akademiförvaltning	160	Castellum (Aspholmen)	174
Norrporten	93	Rikshem	135	Hemfosa	108
Behrn Fastigheter	88	Klövern	108	Saltängen Property Invest	105

Number of commercial premises (excl. residential) owned as at 31-12-2015. Municipal and State-owned companies and government institutions have been excluded.

Source: Byggstatistik and Castellum

Source: Forum Fastighetsekonomi

Rental levels and yield		ÖREBRO		UPPSALA		VÄSTERÅS
		Market rents SEK/sq.m.	Yield	Market rents SEK/sq.m.	Yield	Market rents SEK/sq.m.	Yield
	Best location	1,000 - 2,000	5.75% - 7.00%	1,700 - 2,400	5.50% - 6.00%	1,100 - 2,100	5.75% - 7.00%
OFFICE	Secondary location	700 - 1,600	6.25% - 8.00%	1,450 - 1,900	6.25% - 6.80%	700 - 1,500	6.50% - 8.00%
	Best location	2,000 - 3,800	5.75% - 6.75%	4,000 - 5,000	5.40% - 6.20%	1,900 - 3,700	5.75% - 7.00%
RETAIL	Secondary location	800 - 1,400	6.75% - 8.00%	800 - 1,700	6.20% - 7.50%	600 - 1,600	6.50% - 8.00%
WAREHOUSE/	Best location	450 - 700	6.75% - 8.00%	650 - 1,200	6.25% - 7.00%	600 - 1,000	6.75% - 7.75%
INDUSTRIAL	Secondary location	400 - 600	7.00% - 8.50%	600 - 800	6.75% - 8.25%	600 - 800	7.00% - 8.50%

Office and retail refer to rent incl. media, but excl. additions for property tax. Warehouse/industrial refers to rent excl. additions for media and property tax.

Income from property management and growth Investments and sales Net leasing

MÄLARDALEN

Proximity to Stockholm and its growth profile shapes the entire region

Uppsala and Västerås, within commuting distance of Stockholm and striking distance of Arlanda Airport, are strongly influenced by the urbanization trend. Both municipalities are characterized by strong economic growth. Örebro has diverse industries and is well situated between Sweden's two largest cities.

Rental market

Discounting the retail segment, demand for commercial premises in Örebro, Västerås and Uppsala was stable and high in 2015. Modern offices in prime locations enjoyed the strongest demand, and rising market rents and falling vacancies were also noted here. The picture is the same for all three cities, but strongest in Uppsala.

In Örebro, two central office projects will be completed during 2016. More completed local plans are lined up for future construction. New construction also continues in Västerås, and the next major projects are located at the Travel Centre and in Kopparlunden. Uppsala features the lion's share of new construction among Mälardalen cities, and also boasts the lowest vacancy rate.

The warehouse and logis-

tics market in Örebro has continued to consolidate a position as a leading logistics centre with several ongoing major projects. Rental levels for warehouse/ logistics were stable throughout Mälardalen and the same applied to vacancies.

Weaker demand in the retail segment is partially explained by over-establishment and changed

buying patterns. Strong urban population growth, a lower new construction rate for retail and the conversion of retail space create an adverse effect on this development.

Real estate market

In 2015, the transaction volume for Mälardalen totalled approx. SEK 5 billion (6), which is slightly

lower than the previous year. Turnover in the region corresponded to about 3% of Sweden's total transaction volume. The largest single transaction was the acquisition of a mixed commercial property in Västerås for approx. SEKm 465. In Örebro, Aspholmen accounted for one of the major transactions through the acquisition of 4 properties in central Örebro for about SEKm

Demand for premises in Uppsala, Örebro and Västerås was stable in 2015. Highest increases in value were recorded for centrally located office premises.

The buyer side mainly consisted of Swedish real estate companies and funds, but foreign buyers were also represented. During the year, an increase in value was recorded in the region, with some variation due to location, property type and quality. The highest increase in value occurred for centrally located office premises.

MÄLARDALEN IN BRIEF

MANAGED BY: Aspholmen Fastigheter AB NUMBER OF EMPLOYEES:57 REAL ESTATE PORTFOLIO IN: Örebro, Uppsala and Västerås AREA: 656 thousand sq.m. VALUE: SEK 7.7 billion DISTRIBUTION:

REAL ESTATE MARKET

TRANSACTION VOLUME 2015: SEK 5 billion (6) SINGLE MAJOR TRANSACTION: SEKm 465 for an commercial property in Västerås YIELD PRIME LOCATION OFFICE: 5.5% (in central Uppsala)

A QUESTION OR TWO FOR: CLAES LARSSON MANAGING DIRECTOR, ASPHOLMEN FASTIGHETER AB

What has been most important for Aspholmen during the year?

2015 was characterized by well-implemented investments to meet the requirements of existing and new customers, improve the environmental performance of the properties, reduce our vacancies and improve the real estate portfolio with a solid yield.

What will you focus on within the company? On maintaining a high investment rate over time, featuring quality new constructions, extensions and reconstructions. The main thing is to be the Employer-of-choice as well as the Landlord-of-choice in each market segment.

The five largest real estate owners

JÖNKÖPING	Premises thousand sq.m.	LINKÖPING	Premises thousand sq.m.	NORRKÖPING	Premises thousand sq.m.
Castellum (Corallen)	180	Klövern	302	Klövern	180
Catena	101	Botrygg Bygg	95	Lundbergs	158
Norrporten	99	The Blackstone Group	80	FastPartner	93
Cordea Savills	95	Ikano Fastigheter	70	Hemsö	78
Alecta Pensionsförsäkring	69	Lilium	66	CORHEI*	77
		Castellum (Corallen)	55

Number of commercial premises (excl. residential) owned as at 31-12-2015. Municipal and State-owned companies and government institutions have been excluded. Source: Byggstatistik and Castellum. * Through Corallen, Castellum owns 50% of CORHEI Fastighets AB.

Source: Forum Fastighetsekonomi

Rental levels and yield		JÖNKÖPING		LINKÖPING		NORRKÖPING
		Market rents SEK/sq.m.	Yield	Market rents SEK/sq.m.	Yield	Market rents SEK/sq.m.	Yield
	Best location	1,400 - 2,300	5.75% - 6.50%	1,300 - 2,250	5.50% - 6.75%	1,300 - 2,050	6.00% - 7.00%
OFFICE	Secondary location	900 - 1,375	6.75% - 7.75%	925 - 1,400	7.00% - 8.00%	900 - 1,300	7.00% - 8.25%
	Best location	2,200 - 4,500	5.50% - 6.00%	2,600 - 4,000	5.50% - 6.50%	2,100 - 3,600	5.75% - 6.75%
RETAIL	Secondary location	1,100 - 1,600	5.75% - 7.00%	850 - 1,850	7.00% - 8.25%	850 - 1,850	7.00% - 8.50%
WAREHOUSE/	Best location	450 - 700	7.00% - 8.00%	550 - 900	6.75% - 8.00%	550 - 850	6.75% - 7.75%
INDUSTRIAL	Secondary location	400 - 650	7.25% - 8.75%	375 - 700	7.25% - 8.75%	375 - 675	7.50% - 8.75%

Office and retail refer to rent incl. media, but excl. additions for property tax. Warehouse/industrial refers to rent excl. additions for media and property tax.

Income from property management and growth Investments and sales Net leasing

Three cities characterized by expansive urban development

Linköping and Norrköping are sometimes called Sweden's fourth big-city region. There are ongoing preparations in the region for the expansion of Ostlänken, the express train connection to Stockholm. The two cities – along with Jönköping and its strategic location by European highway 4, E4 – are characterized by bustling urban development.

Positive market development in Jönköping, Linköping and Norrköping for 2015 – characterized by strong

optimism.

Rental market

In 2015, the rental market for Jönköping, Linköping and Norrköping was positive and characterized by strong optimism. In Jönköping, several new office premises are being built, and plans call for more new office space in central locations, combining with residential premises to create a mixed-use city.

Local demand and requirements for newer, more efficient commercial premises have increased in recent years.

As for Linköping and Norrköping, the major urban development for each city is connected to the new infrastructure around Ostlänken, which is not yet fully determined. The uncertainty brings a certain cautiousness

along, concerning new projects in central locations.

Linköping's office rental market was stable in 2015, with solid demand for office space, and limited new construction.

Norrköping demonstrated high demand for modern offices in central locations. The central stock is generally older and requires substantial reconstruction to attract tenants.

The warehouse and logistics market remained strong, showing few vacancies and stable rents throughout the region.

In this region, as for the rest of Sweden, the retail rental market was characterized by a measure of caution.

Real estate market

In Eastern Götaland, transaction volumes amounted to approx. SEK 3 billion (3), which corresponded

to 2% of the total transaction volume in Sweden. The largest single real estate transaction was the acquisition of an office property in Linköping for about SEKm 306. Through Corallen, Castellum acquired 50% of the shares in a jointly owned enterprise with Heimstaden. This real estate portfolio consists of commercial

properties in Linköping and Norrköping for a total value of approx. SEK 2 billion.

The buyer side consisted mainly of Swedish real estate companies, both listed and unlisted, funds and municipalities. During the year, an increase in value was recorded in the region, although with variation due to location, property type and quality. The highest increase in value was recorded for centrally located office premises.

EASTERN GÖTALAND IN BRIEF

MANAGED BY: Fastighets AB Corallen NUMBER OF EMPLOYEES: 25 REAL ESTATE PORTFOLIO IN: Jönköping, Linköping and Norrköping (through joint venture) AREA: 248 thousand sq.m. VALUE: SEK 3.1 billion DISTRIBUTION:

REAL ESTATE MARKET

TRANSACTION VOLUME 2015: SEK 3 billion (3)

SINGLE MAJOR TRANSACTION: SEKm 306 for an commercial property in Linköping

YIELD PRIME LOCATION OFFICE: 5.75% (in central Linköping)

COMMENTS FROM: CLAES JUNEFELT MANAGING DIRECTOR, FASTIGHETS AB CORALLEN

What has been most important for Corallen during the year?

Access to the commercial properties in CORHEI Fastighets AB (previously Ståhls), of course: 22 properties in Norrköping and Linköping. Since 2007, we've maintained the ambition to grow in Eastern Götaland. Thanks to prevailing financial conditions, we could be agile and take advantage of the purchasing opportunity when it arose.

We've been successful in creating satisfied customers. Corallen's SCI index rose by six points compared with the previous year. Moreover, several years of focusing on leasing activities resulted in a high occupancy rate.

FINANCING

Financing at low risk – a cornerstone of Castellum's strategy

Owning and managing real estate is a capital-intensive business, which requires readily accessible funding. Funding can be carried out utilizing shareholder equity as well as borrowed capital, and the look of a company's capital structure depends on the financial risk that the company and its owners are prepared to take.

52 CASTELLUM ANNUAL REPORT 2015 DIRECTORS' REPORT

CASTELLUM ANNUAL REPORT 2015 DIRECTORS' REPORT

Financing

The chosen capital structure is pivotal for the financial returns and risk exposure anticipated by the owners. Among the factors that affect the choice are business risk and tax deductions, as well as the risks and costs associated with increased borrowing. As early as the IPO (Initial Public Offering), Castellum established that the company would stand for low financial risk – which is currently expressed in terms of a loan-to-value ratio not permanently exceeding 55% and an interest coverage ratio of at least 200%.

At 31 December 2015, Castellum's assets amounted to SEK 42 billion and the loan-to-value ratio was 49%, while the interest coverage ratio for 2015 was 351%.

Finance policy and monitoring

Castellum's financial activities are conducted in accordance with the finance policy established by the Board. These will be conducted in such a way that fulfilling the need for long- and short-term financing and liquidity is ensured. Moreover, low and stable net interest costs will be pursued while taking into account the established risk mandates. Developments in the financial markets have a great impact on Castellum. For finance operation purposes, it is therefore important to reflect and support the goals and requirements of the business operations. With the support of the finance policy, the Group

can control and manage financial risks and ensure risk management through close control and monitoring. The financial risks are monitored and reported quarterly to both the Audit and Finance Committee and the Board. The Board annually conducts a review of the finance policy.

Castellum regularly follows up and monitors future funding needs based on assumptions about earnings, net investment volume, property value growth and maturity profile of the existing debt portfolio, covenants in loan agreements and interestrate risk exposure. Furthermore, the Group carries out sensitivity analyses to understand how changes in the real estate portfolio – as well as movements in market interest rates and property values – affect the balance sheet and earnings.

Financial strategy

Castellum's financing strategy will support operations and manage the Group's financial risks while promoting an open and transparent climate. The strategy will be reflected in the finance policy established by the Board – all to ensure risk management through close control. Castellum's finance strategy can be summarized in five cornerstones: diversification, liquidity, strength, transparency and flexibility.

FINANCING 31-12-2015

DISTRIBUTION OF FINANCING 31-12-2015

CASTELLUM'S FIVE CORNERSTONES ABOUT FUNDING

DIVERSIFICATION	Castellum will oversee a diversified loan portfolio and avoid dependence on both individual counterparty and source of financing. In addition, the maturity of various kinds of funding sources and individual loans will be distributed over time. Castellum will monitor and follow developments on the financial markets, enabling us to act quickly and match business requirements. At year-end, Castellum's interest-bearing financing amounted to SEK 20.4 billion, of which SEK 9.7 billion came from capital market financing (an MTN-program totalling SEK 6.5 billion and a commercial paper program totalling SEK 3.2 billion) corresponding to 47%. Remaining financing came from bank financing from most major Nordic banks. At year-end, the average maturity of credit agreements amounted to 3.1 years and ranged from 0.2 to 8 years.
LIQUIDITY	Castellum will have available unutilized credit facilities in order to respond rapidly to business needs and opportunities that arise. Moreover, there will be undrawn facilities for the purpose of reducing the need to invest the surplus – thus reducing the risk between deposits and loans. At year-end, Castellum had SEK 30.3 billion in credit agreements, of which SEK 9.9 billion were unutilized.
STRENGTH	The Group's financial key ratios will be strong, with a loan-to-value ratio not exceeding 55% and an interest coverage ratio of at least 200%. The strength of our real estate portfolio is enhanced by the quality of our cash flow as well as by the composition of our debt and interest rate portfolio. Castellum is to reduce the risk of sudden negative impact on net financial items – resulting from interest rate changes and/or the assessment of Castellum as borrower – that cannot be adjusted by opposing effects on income related to business operations. The loan-to-value ratio was 49% at year-end, while the interest coverage ratio for 2015 was 351%.
TRANSPARENCY	Castellum will encourage long-term relationships with both banks and other lenders/investors and aim to be transparent in order to increase stakeholder understanding of the Group's operations and, consequently, credit exposure.
FLEXIBILITY	Castellum is to have flexible financing for the purpose of supporting business developments regarding acquisitions, sales and project development. Our credit facilities will provide us with high flexibility to withdraw and repay with short notice and at no extra cost. Furthermore, Castellum is to have access to flexibility, both in terms of pricing (fixed and floating) and maturities. At year-end, Castellum had SEK 20.7 billion in bank agreements, of which SEK 17.0 billion consisted of revolving credit facilities.

"Castellum should enjoy sufficient and competitive financing so the Group's activities can be conducted in an effective and cost-efficient manner."

Funding risk

Funding risk refers to the risk that financing is not available or is very unfavourable at a given time. Funding risk itself is by far the Group's largest financial risk. The Group's assets – primarily commercial properties – should be seen as longterm investments, which thereby comply with demands for a long-term approach to real-estate portfolio financing. However, market pricing of credit should also be taken into account.

Castellum should enjoy sufficient and competitive financing so the Group's activities can be conducted in an effective and cost-efficient manner. The funding risk is managed through advance planning, appropriate credit maturity structure, balanced loan pricing, diversification of funding sources and maturities, and a reasonable liquidity cushion.

At year-end, Castellum had credit agreements totalling SEKm 30,325 (26,065), of which longterm agreements amounted to SEKm 25,141 (22,357) and short-term contracts to SEKm 5,184 (3,708). During the year, MTNs totalling a nominal value of SEKm 3,500 were issued and SEKm 1,200 expired. Credit agreements totalling SEKm 18,000 were renegotiated and/or extended, and an existing overdraft was increased by SEKm 100. After deduction of liquid assets of SEKm 39 (47), net interest-bearing liabilities were SEKm 20,357 (18,399), of which SEKm 6,499 (4,200) were outstanding MTNs and SEKm 3,157 (1,280) outstanding commercial papers. (Nominally SEKm 6,500 and SEKm 3,161 respectively.)

Issued commitments in credit agreements – called covenants – state a loan-to-value ratio not exceeding 65% and an interest coverage ratio of at least 150%. In 2015, Castellum's loan-to-value ratio was 49% and interest coverage ratio reached 351%. Average maturity of Castellum's credit agreements was 3.1 years (3.0) at year-end 2015.

Credit maturity structure 31-12-2015

	Credit	Utilized in
SEKm	agreements	Bank	MTN/Cert	Total
0-1 year	5,184	1,209	3,657	4,866
1-2 years	1,608	8	1,600	1,608
2-3 years	12,558	4,908	1,550	6,458
3-4 years	8,166	3,516	1,100	4,616
4-5 years	1,507	8	1,499	1,507
> 5 years	1,302	1,052	250	1,302
Total	30,325	10,701	9,656	20,357

Unutilized credit in long term-credit agreements 4,784

Interest rate risk

By definition, interest rate risk refers to a potentially negative impact on the income statement and balance sheet caused by a change in market interest rates. To limit fluctuations in net interest costs, Castellum will feature a mix of fixed interest terms on loans and interest rate derivatives. Choice of interest rate profile should take into account the Group's Business Plan as well as anticipated inflows and outflows.

Interest cost is the single largest cost item and has a major impact on growth in income from property management. It is partly affected by changes in market interest rates, and partly by the margin required by creditors as compensation for lending money. The short-term market interest rate is affected by the Riksbank, whereas the longterm market interest rate is affected by other factors such as expectations of future growth and inflation. The credit margin is controlled by supply-and-demand for credit, as well as by regulations in the credit and capital markets.

Both interest and credit markets can change rapidly and are outside Castellum's control. Increased market interest rates are generally a result of economic growth and rising inflation. Higher rates, in turn, are presumed to result in increased demand for commercial premises, thereby leading

Listed real estate companies

Source: Rolling annual values based on each company's report Q3 rapport 2015.

Credit maturity structure

to increased rents and/or reduced vacancies. Falling interest rates are assumed to have opposite causes and effects. Given this reasoning, rising or falling market interest rates will thus be met by rising or falling rental income, over time. Changes in credit margins may occur regardless of prevailing economic conditions. Recently, they have primarily been affected by changes in credit and capital market regulations. Changes in market interest rates affect net financial items. How quickly – and by how much – largely depends on the chosen fixed interest term and the binding period of credit margins.

To ensure a low and stable net interest cost, Castellum has chosen to restrict the proportion of fixed maturities due within 6 months to an interval between 20% and 55% of net debt; the average fixed interest term will be between 1 and 3.5 years. The interest coverage ratio is the financial key ratio that describes a company's risk level and resilience to fluctuations in net interest. Castellum's strategy is an interest coverage ratio of at least 200%. For 2015, the interest coverage ratio was 351% (318%). The average fixed interest term at December 31, 2015, was 2.5 years (2.8), while the share of maturities due within 6 months was 44%. Margins and fees on credit agreements had an average term to maturity of 3.1 years (2.6).

Net financial items for 2015 amounted to SEKm –602 (-644) with an average interest rate of 3.0% (3.3%) and included market interest rates at issue date plus creditors' margins. Average effective interest rate at December 31 was 2.9% (3.4%).

Interest rate maturity structure 31-12-2015

	Credit, SEKm	Interest rate derivates	SEKm Net. SEKm	Closing interest rate	Average fixed interest rate term
0-1 year	18,958	– 9,500	9,458	2.9%	0.2 year
1-2 years	350	900	1,250	2.2%	1.4 years
2-3 years	–	1,400	1,400	3.3%	2.4 years
3-4 years	300	1,300	1,600	3.0%	3.7 years
4-5 years	749	2,050	2,799	2.6%	4.5 years
5-10 years	–	3,850	3,850	3.4%	6.7 years
Total	20,357	–	20,357	2.9%	2.5 years

In the table, credit margins and fees are distributed according to the reported maturity segments of the underlying credits.

Credit and counterparty risk

Credit and counterparty risk is the risk that the counterparty cannot fulfil delivery or payment. In financial operations, credit and counterparty risk arises primarily in connection with long-term credit agreements, derivative contracts and the investment of liquid funds.

Castellum limits this risk by requiring high creditworthiness of counterparties; all of them are major Nordic banks.

Currency risk

Currency risk refers to a negative impact on the income statement, balance sheet and cash flow due to changes in exchange rates. Currency risk can be divided into translation exposure and transaction exposure. At year-end, Castellum owned

Castellum's finance policy and commitments in credit agreements

	Policy	Committment	Outcome
Loan to value ratio	Not to exceed exceed 55% in the long run	No more than 65%	49%*
Interest coverage ratio	At least 200%	At least 150%	351%
Funding risk
– average maturity of credit agreements	At least 2 years		3.1 years
– proportion maturing within 1 year	No more than 30% of outstanding loans and unutilized credit agreements		7%
– average maturity of margins	At least 1.5 years		3.1 years
– proportion capital market financing	No more than 50% of outstanding interest bearing liabilities		47%
– liquidity reserve	Secured credit agreements corresponding to SEKm 750 and 90 days upcoming loan maturities		Need: SEKm 4,274 Available: SEKm 7,479
Interest rate risk
– average interest duration	1.0-3.5 years	–	2.5 years
– proportion maturing within 6 months	At least 20%, no more than 55%	–	44%
Credit and counterparty risk
– rating restrictions	Credit institutions with high ratings, at least S&P BBB+		Satisfied
Currency risk
– translation exposure	Shareholders' equity is not secured	–	Not secured
– transaction exposure	Handled if exceeding SEKm 25	–	Under SEKm 25
During the year Castellum's financial policy have been reviewed and revised.

* Castellum's definition of loan to value ratio has been changed and now includes liquid assets. The new definition is: "The Group's interest-bearing liabilities with liquid assets deducted, i.e., as a percentage of total fair value for the properties. In turn, fair-value considerations include a deduction for acquired properties not taken into possession, as well as value added for divested properties, still in Castellum possession, at the end of the period."

Loan to value ratio 2015

351%

Interest coverage ratio 2015

properties in Denmark totalling SEKm 954 (530), which means that the Group is exposed to currency risk. Currency risk relates mainly to income statements and balance sheets in foreign currencies that are translated into Swedish kronor. As a basic rule, equity is not hedged for translation exposure, while transaction exposure is hedged if exposure in any currency exceeds a counter-value of SEKm 25.

Secured interest-bearing liabilities

Long-term bank facilities are mainly secured with collateral comprising the company's real estate holdings, and commitments also include a number of covenants. Issued MTNs, commercial papers and short-term bank loans are unsecured. Of net interest-bearing liabilities totalling SEKm 20,357 (18,399), SEKm 10,460 (12,919) were secured by mortgage deeds and SEKm 9,897 (5,480) unsecured. The proportion of utilized secured financing was thus approx. 25% of the property value. Issued commitments in credit agreements state a loan-to-value ratio not exceeding 65% and an interest coverage ratio of at least 150%. In some cases, the banks have the right to re-pricing at less advantageous loan-to-value ratios and interest coverage ratios than Castellum's internal policy limits stipulate. Castellum is also to provide lenders with financial information such as annual reports, interim reports and property valuations. In some cases, the lender has the right to renegotiate credit agreements due to a significant change in business direction or discontinued stock exchange listing.

Derivatives

Interest rate derivatives

According to the IAS 39 accounting standard, derivatives are subject to market valuation. For interest-rate derivatives, this means that a surplus or a deficit occurs if the stipulated interest rate varies from the current market rate. Castellum accounts for this change in value in the income statement. By extending the fixed interest term, the interest rate risk in terms of cash flow is limited, whereas the risk for accounting-based changes in value is increased. To note: Loans with long-term, fixed interest rates are less flexible, but they are comparable to extensions using interest rate derivatives, from a risk and interest rate standpoint. These are not subject to market valuation according to current accounting standards.

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 derivatives are subject to market valuation, according to the IAS 39 accounting standard. This means that there is a surplus or a deficit if the stipulated currency rate varies from the current exchange rate. Castellum applies hedge accounting according to IAS 39, implying that the effective portion of value changes is accounted for in other total net income.

Organization

All financial risk management is centralized in the parent company. The internal bank is responsible for the Group's funding, risk management, financing for subsidiaries and cash management. The parent company also includes a back-office and compliance function, which provides accounting and independent control of financial operations.

Outstanding MTN 2015-12-31

MTN-number	Issue time	Original duration	Margin/coupon	Volume, SEKm	Acc. outstanding volume, SEKm
102	2013 March	4.0 years	Stibor 3m +2.00%	1,000	1,000
104	2013 September	5.0 years	Stibor 3m +1.75%	500	1,500
105	2014 March	5.25 years	Stibor 3m +1.40%	500	2,000
106	2014 September	3.5 years	Stibor 3m +1.10%	500	2,500
107	2014 November	2.0 years	Stibor 3m +0.78%	500	3,000
108	2015 March	5.0 years	Stibor 3m +1.20%	750	3,750
109	2015 April	2.0 years	Fixed coupon rate 0.625%	350	4,100
110	2015 April	7.0 years	Stibor 3m +1.45%	250	4,350
111	2015 April	5.2 years	Fixed coupon rate 1.58%	350	4,700
112	2015 April	4.5 years	Fixed coupon rate 1.29%	300	5,000
113	2015 June	3.0 years	Stibor 3m +0.82%	550	5,550
114	2015 August	2.0 years	Stibor 3m +0.75%	250	5,800
115	2015 September/November	5.0 years	Fixed coupon rate 1.75%	400	6,200
116	2015 September	4.0 years	Stibor 3m +1.13%	300	6,500
Size of programme					7,000

Dividend growth for 2015: 7%

Castellum will work for a competitive total return on the company's share relative to risk and will also strive for high liquidity. All actions will be taken from a long-term perspective. The company will provide frequent, open and fair reports to shareholders, to capital and credit markets and to 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.

The Castellum Share

The Castellum share is listed on Nasdaq Stockholm Large Cap. Castellum's market capitalization, i.e. the value of all outstanding shares in Castellum, amounted to SEK 19.8 billion (20), as at December 31, 2015. This corresponds to about 9% of the total market capitalization (SEK 219 billion) of Swedish real estate companies operating solely in this sector. The Castellum figure is just under 0.3% of the total market capitalization – approx. SEK 5,700 billion – of listed Swedish companies.

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.

During 2015, a total of 188 million (133) shares were traded, equivalent to an average of 751,000 shares (532,000) per day, corresponding on an annual basis to a turnover rate of 114% (81%). The share turnover is based on statistics from Nasdaq, Chi-X, Burgundy, Turquoise and BATS Europe. 67% of the trading was done on the Nasdaq, 22% on Chi-X, 7% on Turquoise, 4% on BATS and 0% on Burgundy.

Proposed dividend

The Board intends to propose the annual general meeting to decide on a dividend of SEK 4.90 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 21, 2016 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 17, 2016. Payment of the dividend is expected to take place on Thursday March 24, 2016.

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 financial position in general. Unrealized changes in value, positive or negative, are thus not included in the distributable income.

Net asset value

Net asset value is the total equity which the company manages for its owners. Based on this equity Castellum want to a create stable return and growth at a low level of financial risk. 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 efficient way, and in part due to the time factor for which the tax should be discounted.

Long term net asset value (EPRA NAV) can be calculated to SEK 129 per share (114). The share price at the end of the year was thus 94% (107%) of the long term net asset value.

Net Asset Value	SEKm	SEK/ share
Equity according to the balance sheet	15,768	96
Reversed
Derivatives according to balance sheet	1,117	7
Deferred tax according to balance sheet	4,299	26
Long term net asset value (EPRA NAV)	21,184	129
Deduction
Derivatives as above	– 1,117	– 7
Estimated real liability, deferred tax 5%*	– 1,121	– 6
Actual net asset value (EPRA NNNAV)	18,946	116

* Estimated real deferred tax liability net has been calculated to 5% based on a discount rate of 3%. Further, assessments have been made that tax loss carry forwards are realized in 2 years with a nominal tax of 22%, providing a present value of deferred tax liability of 21%. The properties are realized in 50 years where 33% are sold directly with a nominal tax of 22% and that 67% are sold indirectly through company divestments where the buyers' tax discount is 6%. This provides a current value for deferred tax liability of 6%.

IR-CONTACT

Henrik Saxborn, CEO Phone +46 31- 60 74 50

Ulrika Danielsson, CFO Phone +46 706 - 47 12 61

The Castellum share's price trend and turnover from IPO May 23, 1997 until December 31, 2015

Listed Real Estate Companies

4.90

The Board intends to propose to the Annual General Meeting to approve a dividend of SEK 4.90 per share, an increase of 7% compared with previous year.

"Since 1997, Castellum's share has been listed on Nasdaq Stockholm Large Cap under the name CAST."

During 2015, the total yield of the share, including dividend of SEK 4.60, was 2%.

"Some twenty Swedish and foreign stock market analysts track the development of both Castellum and the Swedish real estate sector. "

Average dividend growth for the Castellum share has amounted to 6% per year during the last 10 years.

Earnings

In 2015, income from property management per share adjusted for nominal tax attributable to income from property management (EPRA EPS) amounted to SEK 9.03 (8.26). This results in a share price yield of 7.5% (6.8%) corresponding to a multiple of 13 (15). Income from property management should be adjusted for increase in value in the long-term real estate holdings as well as for effective tax paid.

Earnings after tax per share amounted to SEK 17.57 (7.38) in 2015. Based on the share price, this provides a return of 14.6% (6.1%), corresponding to a P/E of 7 (17).

Total yield

Total yield reflects the development of the share price plus dividend paid during the period.

The Castellum share price as at 31 December, 2015 was SEK 120.70 (122.10), corresponding to a market capitalization of SEK 19.8 billion (20.0). During 2015, the total yield of the share, including dividend of SEK 4.60, was 2% (27%).

Growth, yield and financial risk		3 years average/	10 years average/
	2015	year	year
Growth
Rental income SEK/share	– 1%	2%	6%
Income from prop. management SEK/share	6%	7%	6%
Net income for the year after tax SEK/share 138%		25%	8%
Dividend SEK/share	7%	7%	6%
Long term net asset value SEK/share	13%	9%	6%
Actual net asset value SEK/share	16%	9%	6%
Real estate portfolio SEK/share	11%	5%	7%
Change in property value	4,6%	2,1%	1,1%
Yield
Return on actual long term net asset value 18.2%		11.4%	10.6%
Return on actual net asset value	20.4%	11.6%	10.6%
Return on total capital	10.0%	6.7%	6.6%
Total yield of the share (incl. dividend)
Castellum	2.3%	13.5%	9.1%
Nasdaq Stockholm (SIX Return)	10.4%	17.8%	9.2%
Real Estate Index Sweden (EPRA)	25.4%	27.5%	12.9%
Real Estate Index Europe (EPRA)	18.8%	18.4%	4.9%
Real Estate Index Eurozone (EPRA)	17.4%	15.5%	6.2%
Real Estate Index Great Britain (EPRA)	12.1%	19.0%	2.1%
Financial risk
Loan to value ratio	49%	51%	50%
Interest coverage ratio	351%	311%	302%

Dividend yield

Dividend yield is the company's dividend divided by the current share price. It represents the yield shareholders receive in cash every year following the AGM's decision. The key ratio thus expresses the relationship between two different "spheres": Castellum's performance in the form of dividends and the stock market's pricing of the company.

The valuation thus reflects the market's view of the dividend yield required to achieve a total yield that matches the market's yield on the Castellum share.

The proposed dividend of SEK 4.90 (4.60) corresponds to a yield of 4.1% (3.8%) based on the share price at the end of the year.

Net asset yield and result including long-term change in value

In companies managing real assets, such as real estate, the income from property management only reflects part – albeit a large part – of the overall result. The definition of a real asset is that the value is protected. This means that over time – and with proper maintenance – the real asset

increases in value to compensate for inflation.

The net asset value – i.e., the denominator of the yield ratio income/capital – is adjusted annually in accordance with IFRS regulations for changes in value. In order to provide an accurate yield figure, the numerator – i.e., income – must be similarly adjusted. Therefore, the recorded net income has to be supplemented with a component of value changes as well as with effective tax to provide an accurate view of income and yield.

One problem is that changes in value can vary greatly between years and quarters, thus leading to volatile results. However, by being a long-term player with stable cash flow and a balanced real estate portfolio, Castellum is able to make use of long-term value changes to adjust the numerator of the equation. In the table below, Castellum's average change in property value of 1.1% over the past 10 years has been used.

Net asset yield and result including long-term change in value

		Sensitivity analysis
			–1%-unit +1%-unit
Income from property management 2015 1,533		1,533	1,533
Change in property value (10 years average) 440		40	840
D:o %	1.1%	0.1%	2.1%
Current tax, 5%	– 77	– 77	– 77
Earnings after tax	1,896	1,496	2,296
Earnings SEK/share	11.56	9.12	14.00
Return on actual long-term net asset value 10.2%		8.0%	12.4%
Earnings/ per share price	9.6%	7.6%	11.6%
P/E	10	13	9

Created shareholder value

At the IPO in May 1997, Castellum's real estate portfolio amounted to approx. SEK 10 billion, income from property management to approx. SEKm 300 and shareholders' equity to about SEK 4 billion. Since then, Castellum has created shareholder value by increasing shareholder's equity to SEK 21 billion as at December 31, 2015. During the same period, Castellum shifted out approx. SEK 8.5 billion in dividends, repurchase and redemption. The real estate portfolio has grown over the same period to approx. SEK 42 billion at the end of 2015, while income from property management has increased to SEKm 1,533.

Valuation

The investor's required yield for a given share forms a basis for valuation in the long term. The required yield varies from share to share, as well as over time. This is partly due to the risk the investor perceives for a particular company; a risk that he wants to be compensated for. The higher the risk, the higher the required yield. An acceptable share price therefore derives from the investor's – or rather the investor collective's – assessment of the future total yield of the share (the sum of dividend yields and changes in value) and the level of risk.

In the short run, it is largely supply and demand for shares that affects share-price movements and sets current share prices. Factors affecting price in the short term – apart from investor assessments of the long-term yield of the share – include industry outlook, macro assessments, geopolitical events, allocation aspects, potential yield on alternative investments, and regulations. However, looking over the long term, it is the company's actual performance in terms of total yield and growth that determines crucial for share-price development.

As shown in the table on the left, Castellum has achieved a total average yield of 9% per year, over the past 10 years, of which dividend yield accounts for about 4% and share price development around 5%. All to a moderate risk level compared to the Swedish real estate market. The average dividend growth for the same period amounted to 6% per year.

Shareholders

At the end of the period the company had about 19,100 shareholders. The amount of shares registered abroad at the year-end was 50%. Shareholders registered abroad cannot be differentiated in terms of directly held and nominee-registered shares except in cases where the shareholder is obliged to disclose their holdings. One foreign shareholder, Stichting Pensioenfonds ABP, has disclosed holdings of over 5%. Castellum has no direct registered shareholders with holdings exceeding 10%.

Investor relations

Investor relations are primarily based on quarterly financial reports, press releases on significant commercial events and presentations of Castellum. Presentations take place in connection with quarterly financial reports and visits from investors as well as analyst and investor meetings both in Sweden and abroad. The large share of foreign shareholders means that there are extensive contacts with foreign investors. Additional market and financial information is provided on the Group's webpage www.castellum.se.

Share repurchase

Castellum has repurchased 8,006,708 of the company's shares for a total of SEKm 194, equivalent to 4.7% of the total registered number of shares. The repurchase took place in 2000. 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 adjusting capital structure to capital requirements from time to time, the Board will propose to the AGM to decide on extending the mandate to repurchase shares until the next AGM. This mandate provides the possibility to repurchase or transfer shares.

Created shareholder value Shareholders distributed by country 31-12-2015

Shareholders as per 31-12-2015 Press releases 2015

Shareholders	Number of shares	Percentage of voting rights and capital

SEB Fonder	7,068,021	4.3%
Lannebo Fonder	6,200,000	3.8%
AMF Försäkring & Fonder	4,809,694	2.9%
Länsförsäkringar Fonder	3,969,584	2.4%
Handelsbanken Fonder	2,864,952	1.8%
Stiftelsen Global Challenges	2,500,000	1.5%
Kåpan Pensioner	2,205,000	1.3%
Danske Invest & Danica Pension	2,028,809	1.2%
Carnegie Fonder	2,000,000	1.2%
Magdalena Szombatfalvy	1,935,000	1.2%
Fjärde AP-Fonden	1,693,459	1.0%
Susanna Lööw	1,627,000	1.0%
Folksam	1,546,487	0.9%
Avanza Pension	1,451,933	0.9%
Nordea Fonder	1,415,566	0.9%
Tredje AP-Fonden	1,171,450	0.7%
AFA Försäkring	1,097,328	0.7%
Andra AP-Fonden	1,065,612	0.6%
Swedbank Robur Fonder	925,539	0.6%
Jennie Lööw	850,000	0.5%
SPP Fonder	791,063	0.5%
Andrea Carpelan	772,300	0.5%
SEB Trygg Liv	614,325	0.4%
Uppsala Universitets Stift.förv	577,000	0.4%
Livförsäkringsbolaget Skandia	522,525	0.3%
Carl Tryggers Stiftelse för Veten- skaplig Forskning	500,000	0.3%
Board and executive management Castellum	303,258	0.2%
18,203 Other shareholders registered
in Sweden	303,258	0.2%
885 shareholders registered abroad	81,538,180	49.7%
Total outstanding shares	164,000,000	100.0%
Repurchased shares	8,006,708
Total registered shares	172,006,708
There is no potential common stock (eg. convertibles)

16-01-2015	The election committee's proposal regarding the board of directors etc of Castellum AB (publ)
21-01-2015	Castellum takes part in construction of the new logistics center in Gothenburg and invests SEKm 100 in Örebro
21-01-2015	Castellums Year-end Report 2014: 8% growth in income from property management and dividend
22-01-2015	Castellum invests SEKm 762
	03-02-2015 The Swedish version of Castellum's Annual Report 2014 is now available on www.castellum.se
12-02-2015	Summons to the Annual General Meeting of shareholders in Castellum AB (publ)
	20-02-2015 Castellum invests SEKm 115 and sells SEKm 65 in Gothenburg
19-03-2015	Annual General Meeting in Castellum AB (publ)
13-04-2015	Castellum and Heimstaden enter into major transaction totalling SEK 2,4 billion
15-04-2015	Castellum's Interim Report January-March 2015: 5% growth in income from property management
	28-05-2015 Castellum starts the next office project at Lindholmen in Gothenburg – investing SEKm 212
18-06-2015	Castellum sells for SEKm 183 and invests SEKm 35
15-07-2015	Castellum's half-year report January-June 2015: High investment rate and a stronger Castellum
10-09-2015	AGM 2016: Election Committee of Castellum AB
	23-09-2015 Castellum invests on Kungsholmen in Stockholm
06-10-2015	Castellum invests SEKm 180
15-10-2015	Castellum's interim report January-September 2015: Growth in income from property management
16-10-2015	Castellum's sustainability performance stands out internationally
04-11-2015	Castellum appoints Erika Olsén as CIO
05-11-2015	Castellum invests SEKm 289
16-11-2015	Castellum invests SEKm 327 - first establishment in Hyllie, Malmö
25-11-2015	Castellum reallocates the portfolio in Stockholm and sells for 822 Mkr
10-12-2015	Castellum invests SEK 1,6 billion in Hagastaden, Stockholm, and sells for SEKm 280

Source: Modular Finance AB acoording to information from Euroclear Sweden AB

Ten year summary

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006
Key ratios, SEK/share
Rental income	20.12	20.23	19.81	18.74	17.80	16.82	16.43	15.25	13.77	12.28
Income from property management	9.35	8.84	8.21	7.65	7.15	6.96	6.89	5.93	5.63	5.38
Net income for the year	17.57	7.38	10.41	8.98	4.34	11.98	0.98	– 4.04	9.07	10.21
Dividend (for 2015 proposed)	4.90	4.60	4.25	3.95	3.70	3.60	3.50	3.15	3.00	2.85
Property portfolio	255	229	230	222	207	194	178	178	169	148
Valuation
Pre tax income from property management per share/Share prise	7.7%	7.2%	8.2%	8.3%	8.4%	7.6%	9.5%	9.8%	8.4%	5.9%
Share price/Income from property management per share	13	14	12	12	12	13	11	10	12	17
Income from property management after tax per share (EPRA EPS)/Share price	7.5%	6.8%	8.0%	7.9%	8.2%	7.2%	9.6%	9.6%	8.2%	5.6%
Dividend/Share price (dividend yield)	4.1%	3.8%	4.2%	4.3%	4.3%	3.9%	4.8%	5.2%	4.5%	3.1%
Share price/Long term net asset value per share	94%	107%	94%	92%	88%	100%	88%	72%	76%	116%
Share price/Actual Net asset value per share	105%	122%	103%	103%	98%	108%	99%	81%	79%	120%
The share
Market capitalization. SEKm	19,795	20,024	16,416	15,137	13,989	15,014	11,890	9,963	11,029	14,965
Total yield, the Castellum share	2.3%	26.9%	13.1%	13.0%	– 3.1%	32.6%	27.4%	– 5.9%	– 24.2%	31.7%
Nasdaq Stockholm (SIX Return)	10.4%	15.8%	28.0%	16.5%	– 13.5%	26.7%	52.5%	– 39.0%	– 2.6%	28.1%
Real Estate Index Sweden (EPRA)	25.4%	37.1%	20.6%	16.2%	– 13.0%	48.5%	24.0%	– 21.4%	– 18.5%	35.8%
Real Estate Index Europe (EPRA)	18.8%	26.5%	10.1%	28.7%	– 9.2%	19.8%	33.7%	– 48.8%	– 32.2%	49.4%
Real Estate Index Eurozone (EPRA)	17.4%	24.1%	5.6%	29.2%	– 14.2%	15.5%	43.1%	– 43.4%	– 24.2%	50.0%
Real Estate Index Great Britain (EPRA)	12.1%	22.5%	22.6%	29.9%	– 8.1%	7.9%	11.8%	– 45.6%	– 36.8%	48.0%
Dividend ratio income from property management	52%	52%	52%	52%	52%	52%	51%	53%	53%	53%
Dividend ratio long term net asset value	3.8%	4.0%	4.0%	4.0%	3.8%	3.9%	4.3%	3.8%	3.4%	3.6%
Share Price, SEK
last paid during the last day for trading	120.70	122.10	100.10	92.30	85.30	91.55	72.50	60.75	67.25	91.25
highest paid during the year	125.30	124.10	107.50	94.50	97.50	91.75	73.75	80.00	107.00	95.50
lowest paid during the year	113.50	99.05	87.75	76.30	65.25	58.50	42.80	41.40	62.00	56.50
average (highest/lowest per day)	119.10	112.28	95.43	87.27	88.69	75.70	58.57	63.42	87.55	78.54
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	19,100	16,300	12,200	9,900	9,400	10,000	8,900	7,300	7,300	7,700
Percentage of shareholders registered abroad	50%	52%	62%	60%	51%	46%	46%	47%	49%	53%
Turnover, thousand shares per year	188 379	133 083	106 266	129 276	150 482	152 186	191 129	218 304	207 442	107 710
Turnover rate per year	114%	81%	65%	79%	92%	93%	117%	133%	126%	66%
EPRA Key ratios
EPRA Earnings (Income from property management after tax), SEKm	1,481	1,355	1,318	1,192	1,149	1,086	1,137	960	902	835
EPRA Earnings (EPS), SEK/share	9.03	8.26	8.04	7.27	7.01	6.62	6.93	5.85	5.50	5.09
EPRA NAV (Long term net asset value), SEKm	21,184	18,618	17,510	16,480	15,920	15,158	13,381	13,800	14,482	12,962
EPRA NAV, SEK/share	129	114	107	100	97	92	82	84	88	79
EPRA NNNAV (Actual net asset value), SEKm	18,946	16,432	15,940	14,689	14,196	13,913	11,979	12,305	13,933	12,421
EPRA NNNAV, SEK/share	116	100	97	90	87	85	73	75	85	76
EPRA Vacancy Rate	10%	11%	12%	11%	11%	11%	10%	10%	12%	13%

EPRA, European Public Real Estate Association, is an association for listed real estate owners and investors in Europe, which sets standards for financial reporting, e.g. the key ratios EPRA EPS (Earnings Per Share), EPRA NAV (Net Asset Value), and EPRA NNNAV (Triple Net Asset Value) and EPRA vacancy.

A property portfolio valued at SEKm 41,818

On December 31st, 2015 Castellum's investment properties were assessed a fair value of SEKm 41,818 corresponding to SEK 12,282 per sq.m. The average valuation yield for Castellum's real estate portfolio, excluding development projects, undeveloped land and building rights can be calculated to 6.5%.

The valuation was carried out in a uniform manner using internal valuation based on a 10-year cash flow model with individual assessments for each property. This was to reflect both future earnings capacity and required market yield. In order to provide further assurance and validation of the valuation, 161 properties – representing 56% of the value of the portfolio – have been valued externally.

Property valuation

Internal valuation

Castellum records the investment properties at fair value and has made an internal valuation of all properties as of December 31, 2015. The valuation was carried out in a uniform manner, and was based on a 10-year cash flow model, which is described in principle below. The internal valuation was based on an individual assessment for each property and reflects 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 inflation 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 1,700 per sq.m. (1,500). For further information about the assumptions in cash-flow and required yield see note 11.

Assumptions in Castellum's internal valuations

	Office/retail	Warehouse/industrial
Cash flow year 1
Rental value, SEK/sq.m.	1,347	813
Vacancy, %	9%	8%
Direct property costs, SEKm/sq.m.	314	172
Property administration, SEK/sq.m.	35	25
Required yield
Real interest rate	1.5%	1.5%
Inflation	1.5%	1.5%
Risk	5.8% - 12.9%	8.4% - 13.2%
Return on equity	8.8% - 15.9%	11.4% - 16.2%
Interest rate	5.0%	5.0%
Loan to value ratio	65%	55%
Return on total capital	6.3% - 8.8%	7.9% - 10.0%
Weighted d.o. disc. factor year 1-9	7.4%	8.6%
Weighted d.o. disc. factor residual value*	5.9%	7.1%

* (required yield on total capital minus growth equal to inflation)

Example internal valuation

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

Assumptions in the example:

Total property value 41,818

The economic occupancy rate is assumed to increase in order to reach a long-term level of 96% in the year 2020.
Net operating income for 2015 is based on actual 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 1,994.
The required yield, discount factor, is calculated according to the following assumptions:

		Percentage	Weighted
	Required yield	of capital	required yield
Equity	9.6% - 15.5%	40%	3.8% - 6.2%
Borrowed capital	5.0%	60%	3.0%
Weighted required yield		100%	6.8% - 9.2%

Property value with different required yield and growth in rental value and property costs

SEKm	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Rental value	3,592	3,646	3,701	3,756	3,812	3,870	3,928	3,987	4,046	4,107	4,169
Rental income	3,242	3,318	3,405	3,493	3,584	3,676	3,711	3,827	3,885	3,943	4,002
Economic occupancy rate	90%	91%	92%	93%	94%	96%	96%	96%	96%	96%	96%
Property costs	– 897	– 910	– 924	– 938	– 952	– 966	– 981	– 996	– 1,010	– 1,026	–1,041
Net operating income = cash flow	2,345	2,408	2,481	2,555	2,632	2,710	2,790	2,831	2,875	2,917	2,961
	,
Discounted cash flow year 1-9	17,347
Discounted residual value year 10	22,477				Discounted cash flow						44,316
Assumed value projects, land and building rights	1,994				Discounted residual value

CASTELLUM ANNUAL REPORT 2015 DIRECTORS' REPORT 65

"To reflect price increases recorded on the Swedish real estate market, Castellum has lowered the required return in the valuation by an average 0.25%. Value changes during the year totalled SEKm 1 837, or 4.6%."

Average valuation yield, SEKm

(excl. project/land and building rights)	2015	2014
Net operating income properties	2,443	2,286
+ Estimated index adjustment 2016, 1% (1%)	35	25
+ Real occupancy rate, 94% at the lowest	216	251
– Property administration, 30 SEK/sq.m.	– 100	– 99
Normalized net operating income	2,594	2,463
Valuation (excl. building rights of SEKm 469)		39,824 35,506
Average valuation yield	6.5%	6.9%

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 the property portfolio of SEKm 39,727 - 43,909, corresponding to +/– SEKm 2,091.

Value Changes

As for earlier years, the real estate market in 2015 was characterized by high activity and strong demand, resulting in lower required property yield and, as a consequence, higher property prices. Thus, the average valuation yield has been reduced by 0.25 points since year-end, in order to reflect price increases seen in the Swedish real estate market. The change in value during the year amounted to SEKm 1,837 (344), corresponding to 4.6%. The increase in value consisted

mainly of SEKm 255 attributable to acquisitions, SEKm 203 attributable to project profits and SEKm 1,331 primarily due to reduced yield requirements. In addition, property sales resulted in a value change of SEKm 48. Net sales price amounted to SEKm 1,140 after deduction for assessed deferred tax and transaction costs totalling SEKm 57. Hence the underlying property value, which amounted to SEKm 1,197, exceeded the last valuation of SEKm 1,092 by SEKm 105. As each property is valued individually, the portfolio premium that can be noted in the real estate market was not taken into account.

The net increase in value, including this years change, over the past 10 years has been 1.1% per year, which is well in line with 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 ware-house/industrial compared to office/retail - regardless of when the measurement period was started. The annual average total yield for the past 10 years has been 7.5% (6.9% yield + 0.6% change in value), thereby surpassing office/retail which has had 6.8% (5.9% yield + 0.9% change in value). Calculations do not include project gains or acquisitions from the year the acquisition was completed.

Average valuation yield over time Value Changes

			3 years 10 years
		average/	average/
	1 year	year	year
Total yield
Properties	10.4%	8.2%	7.0%
Nasdaq Stockholm (SIX Return)	10.4%	17.8%	9.2%
Real estate Index Sweden (EPRA)	25.4%	27.5%	12.9%
Real estate Index Europe (EPRA)	18.8%	18.4%	4.9%
Real estate Index Eurozone (EPRA)	17.4%	15.5%	6.2%
Real estate Index Great Britain (EPRA)	12.1%	19.0%	2.1%
Change in value
Change in property value, unweighted	4.6%	2.1%	1.1%

Inflation 0.1% 0.0% 1.1%

External valuation

In order to provide further assurance and validation of the valuation, 161 properties - representing 56% of the value of the portfolio - have been valued externally by Forum Fastighetsekonomi AB. The properties were selected on the basis of the largest properties in terms of value, but they also reflect the composition of the portfolio as a whole in terms of category and geographical location of the properties. Forum's valuation of the selected properties amounted to SEKm 23,581, 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 23,539, i. e., a net deviation of SEKm +42, corresponding to 0%. The gross deviation was SEKm +696 and SEKm –654 respectively, with an average deviation of 6%.

In addition, NAI Svefa made a desk-top valuation of 41 properties corresponding in value to 23% of the portfolio. NAI Svefa's valuation of the selected properties amounted to SEKm 9,324. Castellum's valuation of the same properties amounted to SEKm 9,742, i.e. a net deviation of SEKm –418 corresponding to –4%. Forum's valuation of the same properties amounted to SEKm 9,774, i.e. en net deviation of SEKm +32 corresponding to 0% 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%.

Internal vs external valuation, SEKm

	2015	2014	2013	2012
External valuer 1*	23,581	21,109	19,624	18,527,
Proportion external of internal	56%	57%	52%	52%
Net difference external vs internal	42	– 274	– 148	– 377
D:o %	0.2%	– 1.3%	– 0.8%	– 2.0%
Gross deviation positive	696	620	427	324
Gross deviation negative	– 654	– 894	– 575	– 701
Average deviation	5.7%	7.1%	5.1%	5.4%
External valuer 2*	9,323	9,105	7,912	7,153,
Proportion external of internal	23%	25%	21%	19%
Net difference external vs internal	– 419	– 243	51	117
D:o %	– 4.5%	– 2.7%	0.6%	1.6%
Gross deviation positive	83	115	292	268
Gross deviation negative	– 501	– 358	– 241	– 151
Average deviation	6.0%	5.1%	6.8%	6.0%

* Different valuers for different years.

PROPERTY VALUE Since the IPO in May 1997, Castellum's property portfolio has increased from SEK 10 billion to SEK 42 billion.

Total yield in average/year in different cycles until 2015 Castellum's valuation vs Forum and Svefa

41 properties, SEK 9 billion corresponding to 25% of the portfolio

Tax

Castellum will provide financial reporting which is permeated with openness and transparency. This also applies to the handling and accounting of taxes, an issue of such importance to the real estate industry. The Group's main approach is that correct tax will be paid in compliance with prevailing regulations.

At Castellum, there are a number of areas that are taxed: income tax on current earnings, property tax, VAT, stamp duty and energy taxes. Political decisions – such as changes in corporate taxation, tax legislation and interpretations – may lead to changes in Castellum's tax situation. These could be both positive and negative.

Income tax

Castellum's reported income from property management for 2015 amounted to SEKm 1,533 (1,450), while taxable income from property management amounted to SEKm 236 (434). In the absence of tax loss carry forwards, a paid tax of SEKm 52 (96) would occur, attributable to the income from property management, equivalent to 3% effective tax paid.

Tax depreciations

Investments in real estate can be allocated to different parts where the Swedish Tax Authority specifies percentages for tax depreciations: Buildings (2-5% depending on type of property), land improvements 5% and inventories 20% or 30%. Land is not depreciated.

Tax deductible reconstructions

Costs for repairs and maintenance of a building may be deducted immediately. The "extended repair concept" allows for direct deduction for certain types of value-adding improvements, even if they are capitalized in the accounts.

Property sales

Properties can be sold directly or indirectly through companies, which have different tax consequences. Profit on properties that fiscally represent fixed

assets is taxable, while a loss is put in a "fold" and can only be netted against profits within the Group from direct sales of properties that represents fixed assets. Profit on sales of shares which from a taxation point of view are considered fixed assets is not taxable, while a loss is not tax deductible.

For properties or shares which fiscally represent current assets a profit is always taxable while a loss is tax deductible.

Changes in value on properties and derivatives

Swedish accounting laws do not allow reporting of properties at fair value in a legal entity, meaning that changes in value are reported only in the consolidated accounts and hence do not affect taxation. Some financial 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 constitute a tax deductable cost and changes in value up to acquisition value of the instrument are considered a taxable income.

Castellum has no current tax disputes.

Deferred tax on the balance sheet

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

Tax calculation 2015
SEKm	Basis current tax	Basis deferred tax
Income from property management	1,533
D:o attributable to joint venture	– 23
Deductions for tax purposes
depreciations	– 741	741
reconstructions	– 494	494
Other tax allowances	– 39	6
Taxable income of property management	236	1,241
Properties sold	3	– 293
Changes in value, properties	–	1,789
Changes in value, interest rate derivatives	216	–
Taxable income before tax loss carry forwards	455	2,737
Tax loss carry forwards, opening balance	– 1,193	1,193
Tax loss carry forwards, closing balance	809	– 809
Taxable income	71	3,121
Tax according to the income statement	– 16	– 687

Net Deferred Tax Liability 31-12-2015

		Nominal
SEKm	Basis	tax liability		Real tax liability
Tax loss carry forwards	809	178	21%	170
Properties	– 22,239	– 4,893	6%	– 1,291
Total	– 21,430	– 4,715	5%	– 1,121
Properties, asset acq.	1,893	416
In the balance sheet	– 19,537	– 4,299

Deferred tax is in principle both interest free and amortization free and can therefore be considered as shareholder equity. The real deferred tax is lower than nominal partly due to the possibility of selling properties in a tax-efficient way, partly due to the time factor which means that the tax will be discounted.

Estimated real deferred tax liability net has been calculated to 5% based on a discount rate of 3%. Further, assessments have been made that tax loss carry forwards are realized in 2 years with a nominal tax of 22%, giving a present value of deferred tax liability of 21%, and that the properties are realized in over 50 years where 33% are sold directly with a nominal tax of 22% and that 67% are sold indirectly through company disposals where the buyers tax discount is 6%. This provides a present value for deferred tax liability of 6%.

may be used to net the tax loss carry forwards. Deferred tax deriving from properties occurs mainly due to changes in value, tax deductions such as depreciation and deduction of certain reconstructions, which are capitalized in the account.

Property tax

Property tax is paid for almost all the Group's properties. However, there is tax exemption for special buildings such as communication buildings, educational and healthcare buildings. For other properties, the tax rate set by the Swedish Tax Agency depends on the type of building and site. Tax is 1% of the assessed value for offices and 0.5% for industrial and warehouse buildings. In Denmark, tax rates vary depending on in which municipality the properties are located. Property taxes for 2015 amounted to SEKm 172 (170), based on an assessed value of SEK 21 billion.

Value added tax (VAT)

Real estate is exempt from compulsory VAT duty. If a premise is leased to a customer who runs a permanent VAT-liable business, the real estate owner can voluntarily register for VAT and thus get to deduct input VAT on both operating expenses and investments. Hence no deductions can be made for input VAT attributable to operating expenses and investments in premises not registered for voluntary tax liability. Non-deductible VAT on operating expenses for 2015 was SEKm 18 and is reported as an operating expense. Non-deductible VAT on investments for 2015 was SEKm 7 and is reported as investment in real estate.

Stamp duty

Upon acquisition of real estate in Sweden there is a stamp duty (title deed) of 4.25%, calculated on the higher value of either purchase price or assessed value. In Denmark, the equivalent tax is 0.6%. In 2015, SEKm 38 stamp duty was paid for acquisitions, as part of the acquisition value. There is also an additional stamp duty (pledging cost) of 2% (1.5% in Denmark) for mortgage deeds in real estate. In 2015, this tax totalled SEKm 18 and is capitalized in the balance sheet.

Energy taxes

Castellum purchases energy to use for heating, cooling, ventilation and lighting in the buildings. SEKm 29 of that sum involves energy taxes.

Employees

Employers in Sweden pay 31.42% in socialsecurity contributions based on salary and a payroll tax of 24.26% on pension contributions. Castellum has 299 employees for whom SEKm 59 was paid in social-security contributions and payroll taxes.

Summary tax

In 2015, Castellum's operations generated a total of SEKm 357 in various taxes.

Summary of tax paid

SEKm	2015
Income tax	16
Property tax	172
Value added tax (VAT) , not deductible	25
Stamp duty	56
Energy tax	29
Social security contributions and payroll	59
Total paid tax	357

Owning and managing properties means that operations are exposed to a variety of risks, both internal and external – or to uncertainties that may affect the Group's ability to achieve objectives. Castellum therefore works with a regular and structured process to identify and actively monitor the full range of financial and non-financial risks that the Group encounters or has to take on. The Group's risk management involves a structured process of decision making with the aim of establishing a balance between the desire to limit uncertainty or risk and the task of generating growth and shareholder value.

Risk and Risk management

Risks, exposure and risk management

Castellum defines risk as an uncertainty factor that may affect the ability to achieve company goals. Risk management involves a structured decision-making process with the aim of balancing the desire to limit uncertainty with achieving the objective. In order to assess the effect of identified risks, an internal risk rating is carried out where each risk is assessed, both from the perspective of impact and probability. This process determines whether the risk should be further monitored (Monitor), corrected (Focus) or handled through the standard review and management (Review).

To facilitate risk management, Castellum has chosen to classify risks into the following categories:

External environment risks due to the influence of external factors and events
The real estate portfolio risks associated with the ownership of Castellum's real estate portfolio
Employees risks associated with recruiting, training and retaining engaged and competent employees
Management risks associated with everyday management of Castellum's real estate holdings
Financing Castellum's financing risks

RISK CATEGORY	RISK	IMPACT	PROBABILITY	PRIORITY
EXTERNAL ENVIRONMENT
Macroeconomic risks	1. Macro – crises	SEROIUS	LOW	FOCUS
Crises	2. Crises	MEDIUM	POSSIBLE	MONITOR
Change in legislation	3. Changes in legislation	MEDIUM	SAFE	FOCUS
	4. Regulatory compliance	SEROIUS	LOW	FOCUS
REAL ESTATE PORTFOLIO
Composition of the real estate portfolio	5. Composition of the real estate portfolio	LARGE	UNCOMMON	MONITOR
	6. Obsolete product/property	LOWER	SAFE	FOCUS
	7. Size – too big in a submarket/area	LOWER	UNCOMMON	REVIEW
Investments	8. Investments	LARGE	UNCOMMON	MONITOR
	9. Strategic acquisitions	SEROIUS	UNCOMMON	FOCUS
Change in value	10. Changes in value – real estate	SEROIUS	LIKELY	FOCUS
MANAGEMENT
Rental income	11. Rental income	MEDIUM	UNCOMMON	MONITOR
	12. Disgruntled customers/tenants	SEROIUS	LOW	FOCUS
Property costs	13. Property costs	INSIGNIFICANT	POSSIBLE	REVIEW
Tax	14. Tax	INSIGNIFICANT	POSSIBLE	REVIEW
Sustainability	15. Sustainability	SEROIUS	UNCOMMON	FOCUS
Liability risks	16. Liability risks	LARGE	POSSIBLE	MONITOR
Reporting	17. Reporting	SEROIUS	LOW	FOCUS
EMPLOYEES
Employees	18. Employees	SEROIUS	LOW	FOCUS
FINANCING
Financing	19. Financing	SEROIUS	LOW	FOCUS
Change in value	20. Change in value – derivatives	MEDIUM	LIKELY	MONITOR

Reduced focus on risk area since latest reporting occasion.

Unchanged focus on risk area since latest reporting occasion.

Increased focus on risk area since latest reporting occasion

EXTERNAL ENVIRONMENT

External environment risks refer to risks due to the influence of external factors, mainly outside Castellum's control, but to which Castellum has to relate. These risks can be divided into macroeconomic risks, crises and changes in legislation.

RISK	RISK MANAGEMENT	EXPOSURE
MACROECONOMIC RISKS		PRIORITY: FOCUS DEVELOPMENT:
1. Macro – crisis Macroeconomic risks are risks associated with a general reduction in demand in the economy, low inflation, deflation or situations which entail general difficulties in obtaining financing – or funding at higher credit margins.	• Monitor world events • Strong balance sheet and low loan to value ratio • Well-composed contract portfolio with a wide spread regarding notice of termination, type of business, type of facility, contract size and geographical location • Deflation protection or a minimum upward adjustment of leases • Multiple sources of funding • Frequent renegotiations/new credit agreements • Property portfolio focused to growth areas • Natural macroeconomic hedging mechanism for higher/lower interest costs and rental income, but with some time delay	A weak economy affects the demand for premises negatively, leading to increased vacancies, falling market rents and loss of indexation for existing leases. In addition, the risk of payment problems, or even bankruptcies, among tenants increases, resulting in immediate negative effects on cash flow. Limited access to funding reduces Castellum's possibility to operate. Ultimately, reduced demand in the economy leads to declining property values.
C RI S E S		PRIORITY: MONITOR DEVELOPMENT:
2. Crises Crises may include such events as terrorist attacks, cyber-attacks, extreme weather and environmental disaster, and information leakage.	• Crisis plan • Succession-planning for senior executives • Full value insurance properties • Guidelines for information security: create user understanding and awareness of information as an asset to be handled with care. • Continuity plan IT	The risk is generally low, but Castellum could become indirectly affected by external factors and events
CHANGES IN LEGISLATION		PRIORITY: FOCUS DEVELOPMENT:
3. Changes in legislation Changes in legislation or regulations, whether national or international, can affect Castellum. For example, tax law changes, new regulations for banks, plan process management etc.	• Monitor developments regarding laws, regula tions, praxis etc., within areas most essential to Castellum. • Actively participate in public debate • Prepare Castellum for new legislation • Frequent renegotiation of credit agreements • Broaden the funding base through multiple sources of funding and financiers	Changes in legislation may affect future investment opportunities, or lead to increased expenses, resulting in reduced future returns. New banking legislation may affect access to financing, cost of borrowed capital – and might trigger credit clauses that would lead to higher financing costs. Changes in tax rates and tax legislation – such as proposals regarding interest-deduction limitations, new regulations concerning tax depreciation and the prohibition for "bundling" of properties – may affect Castellum's future tax expenses.

		PRIORITY: FOCUS DEVELOPMENT:

REAL ESTATE PORTFOLIO

Real estate portfolio risks are risks associated with the ownership of Castellum's real estate portfolio, which in turn can be divided into risks concerning the composition of the portfolio, investments and changes in property value.

RISK	RISK MANAGEMENT	EXPOSURE
COMPOSITION OF THE REAL ESTATE PORTFOLIO		PRIORITY: MONITOR DEVELOPMENT:
5. Composition of the real estate portfolio The composition of the portfolio can be affected at two levels: unfavourable geographical distri bution – which means that Castellum owns properties in the wrong submarket, community or location with respect to, for example, future growth and current urbanization trend, – or: owning obsolete properties – i.e. a real estate portfolio that is not future-proof with regard to customer preferences, technical requirements, micro-location – or flexibility in usage and condition of contracts.	• Macro analysis – regular reviews of submarkets regarding economic growth, rental market, cooperative climate, infrastructure investments, etc. • Annual review of the real estate portfolio regarding geographic exposure and property type • The Board's adoption of an annual strategy document	Castellum's real estate portfolio is located in five growth regions and 14 areas. Currently, all loca tions are assessed as having the right conditions for continued holding or investments. Moreover, during 2014 and 2015, major transactions took place with the aim of creating better conditions for future cash flow growth. The Group's real estate portfolio in the commer cial real estate segment is distributed across office/retail (but not malls) and warehouse/light industrial/logistics. All segments are linked to growth possibilities.
PRIORITY: FOCUS DEVELOPMENT:
6. Obsolete product/property A non- "future-proof" real estate portfolio may become obsolete due to customer preferences, technical requirements, micro-location or to flexibility in usage and condition of contracts. It entails a risk of increased vacancies and a decline in value as a result. Alternatively, large investment commitments.	• Follow the rental market and its development/ supply • "Trend spotting" • Be close to customers to understand not only the needs of today but also those of tomorrow • Follow infrastructure investments • Participate actively in developing the area/ submarket • Follow the development of technology • Ongoing investments in existing portfolio to "upgrade" and sell properties that are not deemed "right" from a future perspective.	Castellum annually invests approx. SEK 2.5 billion, evenly distributed in a normal year between acquisitions, new constructions, extensions and reconstructions. In addition, the Group sells real estate for about SEK 0.5 billion a year when it is commercially justified.
		PRIORITY: REVIEW DEVELOPMENT:
7. Size – too big in a submarket/area Becoming too big in a market segment or area may mean that the municipality or the outside world places higher demands on Castellum, for example: that the company has to take overall financial responsibility for an area regarding infrastructure etc.	• To be among the top three in each respective submarket • Follow market share, which is considered in the adopted investment strategy • Conduct annual analysis of the next three years to ascertain available growth opportunities	The real estate portfolio is concentrated to selected submarkets, which are all considered stable, possessing favourable prospects for long-term positive development.

Senstivity analysis - cash flow

Effect on income next 12 months
	Effect on income, SEKm		Probable scenario
	+/– 1% (units)	Boom	Recession
Rental level / Index	+ 33/– 33		+ –
Vacancies	– 37/+ 37		– +
Property costs	– 11/+ 11		0 –
Interest costs	– 78/– 30*		– +

* Due to the interest-rate floor in credit agreements, Castellum is not able to take full advantage of negative interest rates. This results in a negative outcome, even for a one-percentage-point reduction of the interest rate.

Sensitivity analysis - change in value

Properties	–20%	–10%	0	+10%	+20%
Changes in value, SEKm	– 8,364	– 4,182	–	4,182	8,364
Loan to value ratio	61%	54%	49%	44%	41%

Value range - simplified example

Blue figures relate to change in value.

RISK RISK MANAGEMENT EXPOSURE

INVESTMENTS PRIORITY: MONITOR DEVELOPMENT:

8. Investments

Erroneous investment strategy or, alternatively: inability to execute the selected investment strategy or to find profitable investment projects.

Investments can be made either in the form of new constructions, extensions and reconstructions, or via acquisitions. Acquisitions of individual properties can be carried out directly as property acquisition, or indirectly in corporate form. Acquisitions may also be made on a larger scale, either in the form of portfolios for regions or category of properties, or in the form of strategic acquisitions of corporations, i.e. the purchase of an existing organization.

Annual review and evaluation of the adopted investment strategy
Link investment decisions to the adopted investment strategy to ensure the optimal decision is made
Several parallel investment discussions ongoing simultaneously
Post-investment follow-ups after three years
Risk-based model to determine the proportion of projects that may commence without ready customers
A structured decision-making process which analyzes market conditions and risks
Contract form that limits risk
Leasing agreements designed to limit the negative impact of unforeseen construction delays, additional requirements, etc. when leasing before construction starts
Quality assurance and evaluation of implemented projects
Quality assured due diligence process concerning legal, financial and tax issues
Introduction program for new employees

Low-yield investments and/or lack of growth potential mean that the 10% income-growth objective for property management will not be achieved. Further, yearly net investments constitute a prerequisite for reaching the growth target, which in a highly competitive real estate market means increased risk that the investment strategy can't be carried out.

The risks associated with new constructions, extensions and reconstructions concern both technology issues in the form of construction risks – such as selecting suppliers, contract type, technical execution, etc. – and market issues in the form of rental and vacancy risks as well as miscalculations regarding potential rental level and customer requirements. In addition, there are risks in the form of negative environmental impact. Acquisitions via corporations also involve corporate-specific risks pertaining to the acquired companies, for example, taxes, litigations and environmental issues. Furthermore, the task of employee integration often accompanies the transfer of employees.

9. Strategic acquisitions

Strategic acquisitions can be performed to obtain various advantages, but can also carry risks such as difficulties integrating operations and employees, a risk that management's attention is drawn away from other important business issues, risks with a potentially new market that the acquirer has limited or no experience of, expenditures for any unknown or potential legal liabilities in the acquired company, as well as an overly expensive acquisition.

• Due diligence

Thorough planning and structured processes to incorporate a new company
Identify in advance the skills and market awareness needed
Identify key figures in well in advance
Access to the market's best advisors

Castellum has effective processes and skills (directly or indirectly via advisors) required for major strategic acquisitions.

CHANGES IN PROPERTY VALUE PRIORITY: FOCUS DEVELOPMENT:

10. Changes in value – real estate

Value changes can occur due to macroeconomic factors (see section above, on macroeconomic risks), microeconomic factors (usually the wrong submarket, district or location), or propertyspecific causes. In addition, there is also the risk of individual properties being incorrectly assessed. Whatever the reason, value changes affect both income statement and Castellum's financial position including loan to value ratio.

Strong balance sheet
A large number of properties, a geographically diversified real estate portfolio and great variation in lease agreements – concerted actions which result in lower volatility of the real estate portfolio value
Continuous analysis of the transaction market and quarterly reviews of the valuation of the real estate portfolio help detect early warning signs
Internal quality assurance and internal control of internal valuations
Annual external valuation of at least 50% of the portfolio

Large negative value changes can ultimately lead to the breaking of agreed terms and terminating credit agreements, thus resulting in higher borrowing costs, or – worst-case scenario – in utilized credits falling due for payment.

PRIORITY: FOCUS DEVELOPMENT:

MANAGEMENT

Management risks refer to risks associated with the ongoing management of Castellum's real estate portfolio, which has a direct impact on the income from property management. These risks can be divided into rental income, property expenses, taxes, sustainability, responsibility, liability risk and reporting.

RISK	RISK MANAGEMENT	EXPOSURE
RENTAL INCOME		PRIORITY: MONITOR DEVELOPMENT:
11. Rental income Rental income is affected by many factors, both external and internal. External factors may include falling market rents, loss of indexation and bankruptcy (see section above on macro economic risks). Poor management can result in disgruntled tenants, unnecessary vacancies and customer loss caused by inability to offer cust omers what they want.	• Maintain properties in growth areas and a contract portfolio with a large number of agreements – not dependent on a single tenant or business sector. Ensure a maturity structure spread over time • Proximity to customers and attentiveness to customers • Experienced and competent management and leasing staff who prevent notices of termination through active renegotiations before contract expiry • Competitor analysis; measure customer satis faction and follow-up of net leasing • Strive for leases with an index clause with deflation protection and minimum indexation	For Castellum, reduced income can be derived from lower rental value, i.e. loss of potential rent obtained from vacant premises, or from lower rental income, which is the actual rent received. Rental income is hence dependent on both the market rent of the property and on how Castellum handles vacancies. Reduced rental income ultimately leads to a decline in the value of the real estate portfolio.
		PRIORITY: FOCUS DEVELOPMENT:
12. Disgruntled customers/tenants The risk that several tenants or customers become disgruntled and leave the Group. The ability to attract new customers/tenants fails, with large vacancies and value decline as a result.	• Proximity to customers and attentiveness to customers • Experienced and competent management and leasing staff • Annual measurement, Customer Satisfaction Index	Castellum has a strong and clear customer focus, and it is important that the Group lives up to customer expectations. Hence, an annual Customer Satisfaction Index measurement is carried out. The most recent, conducted in 2015, shows continued high ratings with an index of 80 on a scale of 100.
PROPERTY COSTS		PRIORITY: REVIEW DEVELOPMENT:
13. Property costs Risks concerning property costs mainly relate to cost increases beyond what Castellum can be compensated for through contractual rents, indexation and surcharge. It can also refer to unforeseen costs and extensive renovation needs.	• High percentage of cost recharging • Compensation via minimum indexation • Continuous optimization of operations and efficiency efforts • Electricity hedging • Demarcation list landlord/tenant • Prevention of rental losses via background checks on customers and operating an "in-house" debt collecting business • Long-term maintenance planning, in order to optimize maintenance costs over time	The price of electricity is determined by supply and demand in an open, deregulated and partly international market. Other media costs are partly controlled by local monopolies, which creates uncertainty in future costs. The basis for calcu lating ground rent levels may change in future renegotiations, and political decisions can change both tax rate and tax assessment value used for calculating property tax. Indirect costs for employees – such as payroll taxes and other obligations – could also be affected by political decisions.
TAX		PRIORITY: REVIEW DEVELOPMENT:
14. Tax Castellum's potential non-compliance with existing regulations or non-adaptation to changing regulations regarding income tax and VAT. Tax is also an important parameter in the context of calculation.	• Strict internal control processes and external quality assurance of, for example, income tax returns • Open claims regarding doubtful items • Continuous training of employees • Closely following the development of legis lation, praxis and court orders	Incorrect tax management might lead to erro neous tax being paid, to tax penalties and, in some cases, to qualified opinion. Poor fiscal management may lead either to an overesti mation of the return – which means insufficient actual return. Or it could lead to an underestima tion of the return, with the risk of a fundamentally profitable investment not being implemented.

RISK	RISK MANAGEMENT	EXPOSURE
SUSTAINABILITY		PRIORITY: FOCUS DEVELOPMENT:
15. Sustainability An erroneous investment strategy or portfolio management may mean that the Group does not have the correct platform for maintaining sustainable earnings. For example, lower cost efficiency may occur if measures are not taken to save energy and minimize waste. For new construction, extension and reconstruction there is a risk that the materials and methods used may subsequently prove to cause damage. In addition, environmental policies and environmental opinion may affect Castellum, not least in the form of increased taxes or necessary investments. Being a long-term player, incidents may arise which imply that Castellum does not assume social responsibility – causing damage to the reputation or brand.	• Monitor developments in laws and regulations • Prioritize environmental issues in all parts of the business • All new constructions will be environmentally certified • Sustainability policy, where measurable goals common to the Group have been developed under the headings: - Promote more efficient resource consumption - Develop a sustainable real estate portfolio - Develop green relationships with customers - Sustain social commitment and responsibility • Code of conduct for Castellum employees, as well as for suppliers and partners, in place • Comply with standards and documentation requirements	Castellum works with environmental certifi cation and environmental inventory to reduce environmental, climate and health risks. 20% of the real estate portfolio is certified and 93% has undergone environmental inventory. Efficient management, with focus on reduced resource use reduces the risk of high costs, environmental and health impacts as well as providing customers with a healthy working environment. Since 2007, energy consumption has been reduced by 25% and carbon dioxide emissions by 48%. Defect-risk in the work of the suppliers involved, can also affect Castellum. However, by including the Code of Conduct and sustainability standards in procurement, the risk is considered to be low. Through community involvement in all locations where Castellum operates, the company contributes to the attractiveness of the area and reduces social challenges.
LIABILITY RISKS		PRIORITY: MONITOR DEVELOPMENT:
16. Liability risks All ownerships entail responsibility. For Castellum's part, the properties may be destroyed by fire, water, theft or other damage. Moreover, Castellum may – through negligence – cause damage to a person or to the property of another. The Company might also cause environmental damage for which it will become liable.	• Preventive measures to minimize the risk of damage to property, person or environment • All properties will be covered by full value insurance • Subscribe to an insurance which covers liability and other economic losses • Environmental inventory of existing portfolio and when acquiring new properties in order to identify and address environmental and health risks	Inadequate insurance coverage may result in unforeseen costs for Castellum. Liability and compensation for damage might also arise due to personal injury and third-party property damage, as well as for remediation of environ mental damage.
REPORTING		PRIORITY: FOCUS DEVELOPMENT:
17. Reporting The risk of an official report, in the form of interim reports or financial statements, which do not provide a true and fair view of Castellum's opera tions, earnings and financial position.	• A corporate culture based on high ethical ideals and orderliness • Close internal control with quality assurance at several levels • Skilled and experienced staff • Updated on development of regulations and able to implement changes in good time • A compliance function which reports directly to the Board's Audit and Finance Committee • External audit full-year and half-year	A misleading report would lead to bad will and a negative reputation in the market. This may lead to uncertainty among investors, increased risk premium and, ultimately, to a negative exchange rate impact, creating economic losses for Castellum's current owners. Other effects include: investors may make incorrect investment decisions, regulators may exercise sanctions and, ultimately, the Castellum share may become delisted.

EMPLOYEES

To recruit, develop and retain motivated and engaged employees is crucial to Castellum's long-term success.

RISK	RISK MANAGEMENT	EXPOSURE
EMPLOYEES		PRIORITY: FOCUS DEVELOPMENT:
18. Employees Employees are one of our most important assets – their decisions and actions run the business. The largest risk is to fail to recruit, develop and retain employees and senior executives with the right skills, which may lead to underachievement at Castellum.	• Castellum's common value-system • Open and transparent work environment • Skills and leadership development • Employee Satisfaction Survey (NMI) • Succession plan for key employees/manage ment positions • Market and competitive remuneration • Analysis of employee turnover	Bad hires in the wrong place, disgruntled employees, poor leadership and an organization that fails to encourage open dialogue and stimu late development can lead to employees being discontented, underperforming or quitting. In turn, dissatisfied employees and high employee turnover lead to increased costs, poorer customer relations, reduced internal efficiency and – ultimately – to lower profitability. Castellum has an NMI of 85 from the latest employee survey in 2014, and a healthy turnover.

FINANCING

Castellum's single greatest risk is not to have access to financing. Lending conditions, as well as credit market rules can change quickly, thus affecting Castellum's interest rate risks, financial costs and ability to extend existing credit agreements and sign new ones.

RISK	RISK MANAGEMENT	EXPOSURE
FINANCING		PRIORITY: FOCUS DEVELOPMENT:
19. Financing Liquidity and financing risk: Financing is either not available or conditions are very unfavourable at a given time. Selected capital structure: Castellum violating the 55% limit for LTV or the covenant of 65% could affect the market's confidence in Castel lum, with potential results: - violating the 55% limit for LTV leads to more expensive financing costs for some contracts - violating the 65% limit for covenants means that they expire for a number of contracts Interest rate risk: the risk that a change in market interest rate will affect income and cash flow. Castellum may violate the established mandate of an interest coverage ratio of no less than 200% or corresponding covenants of a minimum of 150%.	• A finance policy defines that determines risk mandates • Liquidity reserves/unutilized credit facility • Multiple sources of financing (bank, MTN, commercial paper programs) • Several lenders, and only counterparties with high credit ratings • Continuous renegotiation of credit agreements • Security through pledged mortgages • Strong balance sheet • An interest-rate maturity structure spread over different terms • Long-term credit agreements with fixed margins • Revolving loans in order to obtain maximum flexibility • Only marketable instruments used in the market, so that listed prices can be obtained • Established formulas for handling calculations • Reconciliation between internal and external valuations • A compliance function to ensure independence	Property ownership is a capital-intensive business that requires a well-functioning credit market. Access to finance is fundamental for Castellum and for continued growth. Insufficient liquidity reserves could result in Castellum missing out on business opportunities. Further more, all lenders are not equally strong financially, which means that counterparty risks are built into the system. Changes in capital structure might cause Castellum to violate the agreed-upon finan cial key ratios of the loan conditions, which would lead to more expensive loans or to credit agreements maturing. In addition, confidence in Castellum within the capital market could be negatively affected by not ensuring an appropriate capital structure. The market interest rate is affected by the Riks bank's monetary policy, expectations of economic development – nationally as well as internationally – and other unforeseen events.
		PRIORITY: MONITOR DEVELOPMENT:
20. Changes in value – derivatives Changes in value of Castellum's interest-rate derivatives or currency derivatives arising from changes in market interest rate or from the exchange rates between SEK/DKK.	• A financial policy regarding fixed interest terms and currency risks • Marketable instruments – exclusively – used in the market, so that listed prices can be obtained • Established formulas for handling calculations • Reconciliation between internal and external valuations • A compliance function to ensure independence	Changes in market interest rate and exchange rates affect the market value of the derivatives portfolio. Improper valuation of derivatives may provide an inaccurate picture of the Group's financial position.

Sound corporate governance is the foundation for a company to be managed sustainably and responsibly – as well as efficiently and effectively. It requires compliance with legislation, rules and good practice, but also has to be tailored to Castellum's business operations. Verifying compliance is one of the Board's main tasks. The other task is to be a hands-on, close-to-the source powerhouse that both challenges and supports management.

Corporate Governance Report

Charlotte Strömberg, Chairman of the Board at Castellum AB:

The following pages describe how Castellum is organized and managed according to a structured and well-tested model. The model is based on laws, regulations and good practice, but tailored to Castellum's business operations within this obvious framework. "Neatness and order" – including a clear division of labour, policy documents, processes and monitoring – have formed a common thread in Castellum's history from its very beginnings, in the wake of the real estate and financial crisis of the early 1990s. A primary Board task – as monitoring body – becomes a matter of perfecting and adapting to a changing world rather than carrying out drastic interventions. Even so, I'll return to a couple of issues in this area that the Board devoted extra attention to during the past year.

Long-term responsibility

Before that, I'd like to devote some time to the Board's second main task – to be a hands-on, close-to-the source powerhouse that both challenges and supports management. Our common primary task is to create sustainable shareholder value. It means assuming long-term responsibility for managing the capital entrusted to us by the shareholders to achieve a solid and growing return.

In some circles, there is talk of quarterly capitalism and the pressure on executive management to deliver according to the short-term forecasts made by analysts. In this scenario, boards can play a key role as counterweights, by consistently drawing out the perspective and taking responsibility for legitimate expectations of sustainable and growing long-term earnings. This requires courage.

The real estate industry has traits that make it appear sluggish, for better or worse. Contracts and agreements with our customers – the tenants – extend over several years. This lowers operational risk, particularly for Castellum, where we've consciously built up a diversified portfolio of 600 properties and 4,500 leases with overlapping maturities. Conversely, the structure means that it may take time and patience to implement desired changes.

Property acquisitions and sales also demand creativity and foresight. Compared with other asset markets – such as the stock and capital markets – the market is less liquid and based on close matching of specific interests between buyer and seller.

Future-proof cash flows

With the goal of creating growth in cash flow over time, Castellum's Board and Executive Group Management actively work to future-proof our real estate portfolio. This is about having the right products in locations where communities are growing the most, as well as identifying where the reverse may be true in five-to-ten years' time. In this latter scenario, there's a risk of obsolete products. Coupled to the above-described sluggishness, it is crucial to constantly adjust well in advance. Easy to say, but a challenging task in practice.

In recent years, the Board and Executive Group Management have developed a strategy to both counter and take advantage of future changes in the surrounding world. During the past 15 months, this implementation has become noticeable. We have begun to relocate, with stepped-up activity in the portfolio. We've left areas and properties that provide a high return today but indicate lower expected growth, and we have shifted up through investments with a lower initial return but better growth. For the first time since 2003, we also reached an occupancy rate of over 90%. Towards the end of the year, we emerged – with awareness, and still aiming for the long-term perspective – from a lower-growth period of income from property management to a noticeable spurt in income-growth pace. We've dared to act long-term at the expense of short-term growth. The 2015 stock market ratings were recorded in a risk-friendly environment, and during the year, we posted lower development than several of our listed colleagues who delivered higher growth coupled with higher financial leverage.

However, we are sticking to the combination of low operational risk and controlled financial risk that has been Castellum's promise to the stock market since listing in 1997. Paired with a clear dividend policy, we can propose a dividend increase to the AGM for the 17th consecutive year. Of course, we remain spurred on by competition and look forward to advancing our positions – continuously improving and customizing our business – for the benefit of both tenants and shareholders.

A desire for new solutions

From a Board perspective, we enjoy the privilege of not being absorbed by everyday operations. Focusing on today's customer – today – is a Castellum hallmark. During the year, Castellum employees have solved many problems and created "The Board can play a key role as counterweight to quarterly capitalism by consistently drawing out the perspective and taking responsibility for managing the capital entrusted to us by shareholders to achieve a solid and growing return."

new possibilities for our tenants. A retained and satisfied customer drives our profitability. It constitutes a major strength to have our customers spread the message. Therefore, we're particularly pleased that nine out of ten tenants are happy to recommend us as landlord and partner.

Whoever stands still – filled with complacency – will be left in the dust of competitors. It is therefore crucial how and where we should place our efforts when work and leisure are increasingly interwoven. New technology and digitalization have ushered in new behaviours, decisionmaking and preferences. One of the highlights of the Board year consequently occurred at the spring strategy meeting. We gathered Executive Group Management and the Board together, to head out onto thin ice and make predictions for the future. An inspiring and provocative discussion leader helped us ponder several necessary and fun initiatives. As urban developers and one of the largest suppliers of commercial properties to Sweden's growth regions, we can – and want to – contribute to the development of society. I'm convinced that Castellum can take a leading role and promote the transformation of "old" industries as well as the emergence of new ones.

With 600 properties and a cross section of Swedish society housed in our facilities, we possess both the will and the ability to test new solutions and drive innovation processes in conjunction with our customers and their clients. As in the past, our recipe for success is spelled local presence and personal commitment, spiced by the possibilities of technology.

Well-composed financing structure

The current revamping of our real estate portfolio is clearly creating value and ultimately increasing cash flow. However, the Board's close focus on business strategies should not overshadow respect for that vital commodity – capital. Access to financing is a real estate company's biggest risk. Conversely, a well-composed financing structure constitutes a competitive advantage that guarantees agility taking in future business opportunities.

Therefore, I would like to particularly highlight the agile and active work of the company's financing function, which contributes to supporting business operations while curbing risktaking. Castellum owns properties totalling SEK 42 billion. Binding credit agreements and setting limits for capital market financing for a total of SEK 30 billion dictate daily monitoring activities. Making major changes to the portfolio calls for careful preparation and evaluation. Properties for SEK 9 billion (gross) were turned over, which also entailed subsequent mortgage management.

During the year, loan commitments totalling SEK 18 billion were renegotiated with attractive terms. Bonds for SEK 3.5 billion were issued.

At year-end, the loan-to-value ratio amounted to 49% – considered modest by our businesssector standards. This creates breathing room for continued net investments when solid returns are indicated.

I have thereby highlighted one of the areas that rivets the Board's supervisory attention. In 2015, a more comprehensive analysis of financing issues and associated risks was completed by the Audit and Finance Committee, resulting in a reworked and refined Finance Policy approved by the Board.

A final point on the governance theme from the past year's agenda was the specific formulation of our further hopes from suppliers and other partners, aside from commercial undertakings. Through our Code of Conduct, Castellum sets out guidelines for how our own and employee behaviour should always be characterized by high ethics and responsibility. Moreover, we would like to assume greater responsibility by promoting ecologically, socially and economically sustainable business outside our own walls. Ultimately, some measure of influence can be achieved by avoiding partners who do not share Castellum's view of corporate responsibility. Concerted efforts to encourage suppliers to sign Castellum's Code of Conduct have now begun, and this is a task that will develop gradually.

Finally, I look forward to another businessintensive year with Castellum. Our executive team members have high ambition levels, and their change-ready stance is supported by an engaged, and active Board, dedicated to driving success. My colleagues on the Board represent broad diversity in terms of background, skills, experience and personality. This ensures that a wide range of possible perspectives will be factored into all discussions and decisions, with the common goal of sustainable growth in shareholder value.

Stockholm January 2016

Charlotte Strömberg Chairman of the Board at Castellum

Overall structure for Corporate Governance

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 and statements, 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 (the Code) is conducted by the Swedish Corporate Governance Board and is found at www.bolagsstyrning.se, where the Swedish model for corporate governance is also described.

The model above describes the overall structure of corporate governance at Castellum AB (publ).

Observance of the Code

Castellum applies the Code with the purpose of creating favourable preconditions for taking on the role of active and responsible ownership. It is crucial that the company acts responsibly to fulfil strategies and create long-term value.

According to Board appraisal, Castellum has followed the Code in all respects during 2015 and has no deviation to report.

Shareholders and Annual General Meeting

Castellum AB (publ) is a Swedish public company governed by the Swedish Companies Act, the Nasdaq Stockholm rules for issuers, the Swedish Code of Corporate Governance and the articles of association.

The Castellum share is listed on the Nasdaq Stockholm Large Cap. At year-end 2015, Castellum had approx. 19,100 shareholders. Of the total share capital, 50% was owned primarily by Swedish

institutions, funds and private persons and 50% was owned by foreign investors. Castellum has no directly registered shareholder 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 8,006,708 shares, entitles the holder to one vote and carries an equal right to a share in Castellum's capital. There are no warrants, convertible bonds or similar securities which may lead to additional shares in the company.

Annual General Meeting

The AGM is Castellum's supreme decision-making body, where shareholders have the right to make decisions about the Group's affairs.

The AGM is held in Gothenburg during the first half-year after the end of the financial 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 has to provide notice of participation in the manner prescribed. Individual shareholders requesting that a specific 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 proportion of the votes of the shares represented and votes cast at the AGM.

MAJOR EXTERNAL REGULATIONS

Swedish Companies Act
Rules for issuers at Nasdaq Stockholm
Swedish Code of Corporate Governance
IFRS standards

IMPORTANT INTERNAL REGULATIONS

Articles of Association
Board of Directors' rules of procedures
Resolutions procedure
Policy regarding the composition of Board, signers for the company, authorization
Rules of procedure in the subsidiary boards
Policies for communication, finance, insider, sustainability, Code of Conduct and Crisis Management.
Manuals and guidelines for important parts of the business
Processes for internal control and risk management

ARTICLES OF ASSOCIATION

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

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

ANNUAL GENER AL MEETING 2016

For the AGM on March 17, 2016 the Board of Directors proposes:

a dividend of SEK 4.90 per share and March 21 2016 as record day
guidelines for remuneration to Executive Management,
a renewed incentive program for 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 the present Board members Charlotte Strömberg, Per Berggren, Anna-Karin Hatt, Nina Linander, Christer Jacobson and Johan Skoglund, as members of the Board of Directors. Christina Karlsson Kazeem is proposed for elec tion as a new member of the Board of Directors. Charlotte Strömberg is proposed for re-election as Chairman of the Board of Directors.
that remuneration to the Board of Directors is proposed to be the following. - The Chairman of the Board
SEK 720,000, - other members of the
Board: SEK 315,000, - member of the Board of Directors' Remuneration Committee, including the
Chairman: SEK 30,000 , - Chairman of the Board of Directors' Audit and Finance
Committee: SEK 50,000, - other members of the Board of Directors' Audit and Finance Committee: SEK 35,000.

The proposed total remunera tion to the members of the Board of Directors, including remuneration for committee work, accordingly amounts to SEK 2,820,000 (SEK 2,650,000 previous year) provided that the number of committee members remains unchanged,

• for the AGM to decide on appointing an Election Committee for the 2017 AGM and for the Chairman to contact the three largest registered or otherwise known shareholders at the end of the last day of share trade in August 2016 and invite each of them to appoint one member to the Election Committee. Further, that the three appointed members, together with the Chairman of the Board of Directors, are to constitute the Election Com mittee. The Election Committee appoints a chairman amongst its members. The names of the members of the Election Committee will be made public no later than six months before the next AGM.

Annual General Meeting 2015

The latest AGM was held on March 19, 2015 in RunAn, Chalmers Kårhus, Chalmersplatsen 1, Göteborg. At the AGM, 495 shareholders were represented, representing 42,3% of the total number of shares and 44.4% of the votes. All members of the board and the company's auditors and the deputy auditor were present at the AGM.

The AGM adopted the financial reports for 2014 and discharged the board of directors and the chief executive officer from liability regarding operations for 2014.

On the AGM on March 19, 2015 the board of directors decided;

a dividend of SEK 4.60 per share for the fiscal year 2014,
that remuneration to the members of the Board of Directors shall be SEK 2,650,000, of which SEK 640,000 should be allocated to the Chairman of the board of directors and SEK 300,000 to each other members of the Board. Remuneration for work in the Remuneration Committee should be SEK 30,000 to each member, Chairman included. Remuneration to the chairman of the Audit and Finance Committee shall be SEK 50,000 and SEK 35,000 to to the members,
re-election of present Board members Charlotte Strömberg, Per Berggren, Christer Jacobson, Jan Åke Jonsson, Nina Linander and Johan Skoglund. Anna-Karin Hatt was elected as new member of the board. Charlotte Strömberg was re-elected as 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 financing of real property investments to resolve on the acquisition and transfer of company-owned shares.

Minutes of the annual general meeting held on March 19, 2015 are available on the company's web site.

Election Committee

The 2015 Annual General Meeting decided that an Election Committee should be appointed for the 2016 AGM in order to present: proposals for the number of members of the Board of Directors; election of members of the Board of Directors, including Chairman; remuneration to members of the Board of Directors; as well as a model for appointing a new Election Committee for the 2017 AGM.

The Election Committee's proposals are publicly announced no later than on the date of notification 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 of the Board of Directors, who will contact the three largest registered owners, or otherwise known shareholders as per the last share trading day in August and invite them each to appoint one member. The three appointed members, along with the Chairman of the Board of Directors, constitute the Election Committee. The Election Committee appoints a chairman from among its members.

The Election Committee for the 2016 AGM consists of Rutger van der Lubbe, representing Stichting Pensioenfonds ABP; Johan Strandberg, representing SEB Fonder; Björn Franzon, representing the Szombatfalvy family and Stiftelsen Global Challenges Foundation; and Charlotte Strömberg, Chairman of the Board of Directors of Castellum. Johan Strandberg is Chairman of the Election Committee.

Election Committee AGM 2016

August 31, 2015

Stichting Pensioens approx.
6.6%
approx. 5.1%
Familjen Szombatfalvy
samt Global Challenges approx
4,5%

Charlotte Strömberg Chairman of the board in Castellum AB (publ)

All members of the Election Committee have carefully considered and ascertained that there is no conflict of interest in accepting the mandate of being a member of Castellum's Election Committee. Prior to the 2016 AGM, the Election Committee has held 4 meetings with recorded minutes. All relevant issues that need to be addressed to comply with the Swedish Code for corporate governance have been dealt with. Among various issues, the Election Committee has discussed and considered:

to what extent the current Board of Directors fulfils the requirements that will be imposed on the Board of Directors as a result of Castellum's operations and development phase,
how many people should constitute the Board of Directors,
which areas of expertise are, and should be, represented on the Board of Directors,
the composition of the Board of Directors with respect to experience, gender and background,
remuneration to the members of the Board of Directors,
which model should be used for appointing a new Election Committee for the 2017 AGM.

The Election Committee has received a detailed review of the outcome of the comprehensive evaluation of the Board of Directors. The review was conducted by a company specializing in board evaluations. Furthermore, the Election Committee has conducted a recruitment process which included contacts with a recruitment consultant, the drawing up of a set of requirements for the recruitment of members of the Board as well as meetings with candidates for the Castellum Board of Directors. Moreover, in connection with the Board evaluation review, the recruitment process and committee work in general, the Election Committee has continuously focused on how gender balance in the Board is to be maintained.

In order to assess a proposed Board member's independence in relation to Castellum and its executive management as well as to the larger shareholders in Castellum, the Election Committee has gathered information on proposed members for the Board of Directors. The Election Committee has assessed that all proposed Board members are to be considered as independent in relation to Castellum, its executive management and to the larger shareholders in Castellum. Finally, the Election Committee has informed the company about its activities and which proposals the Committee has decided to put forward.

The Election Committee's proposals to the AGM are shown on the previous page. The proposed Board of Directors are considered to possess the required versatility, broad competence, experience and background relevant for Castellum operations, development phase and mixed range of circumstances. The Election Committee's proposals mean that four of seven Board members are women, including the Chairman. The maintenance of a gender balance on the Board has been a crucial condition for the work of the Election Committee.

External auditors

The external auditors are appointed by the AGM and responsible to the shareholders at the AGM. They are independent reviewers of Castellum's accounting and corporate governance report and also review the Board and the CEO.

Castellum's auditors are elected by the AGM for a period of three years. The present period began in 2014, and the next election will therefore take place at the AGM in 2017. The company's

Remuneration to auditors

thousand SEK	2015	2014	2013
Audit assignment	2,003	1,908	2,535
Audit business in addition to the
audit assignment	365	68	236
Tax consulting	–	76	1,075
Other consulting	106	232	739
Total	2,474	2,284	4,585
of which Deloitte	2,324	2,134	–
of which KPMG	–	–	4,349
of which EY	150	150	236

auditors are Hans Warén, who works at Deloitte; Magnus Fredmer, who works at EY; and deputy auditor Fredrik Walméus, who works at Deloitte. All are certified public accountants.

The Board

The shareholders appoint the Board at each Annual General Meeting. The Board has the overall responsibility for Castellum's strategy and organization and manages Castellum's affairs on behalf of the shareholders. According to the articles of association, Castellum's Board will consist of no less than four and no more than eight members. Board members are elected at the AGM and will hold office from their appointment until the conclusion of the first AGM following their appointment.

For 2015, 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 upon 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 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.

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,
establishing guidelines to ensure that the com pany's operations create value in the long term,
reviewing and establishing the accounts,
making decisions on issues regarding invest ments and sales,
capital structure and distribution policy,
developing the Group's policies,
ensuring that control systems exist for monito ring that policies and guidelines are observed,
ensuring that there are systems for monitoring and controlling the company's operations and risks,
significant changes in Castellum's organization and operations,
appointing the company's Chief Executive Officer and setting remuneration and other terms of employment benefits for the CEO.

CASTELLUM'S AUDITORS

HANS WARÉN Born 1964 Company's auditor since 2014

MAGNUS FREDMER Born 1964 Company's auditor since 2011

FREDRIK WALMÉUS Born 1971 Company's deputy auditor since 2014

Each member is to act independently and with integrity and ensure that the interest of the company and all shareholders is protected.

A description of the Board's year follows below.

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 financial reporting to the Board of Directors.

The rules of procedure also prescribe that the Board will have an auditing and finance committee and a remuneration committee. The committees review and prepare recommendations to the Board on various matters. Members of the committees are appointed yearly. The Chairman of the Remuneration Committee should be the Chairman of the Board of Directors, and the Chairman of the Audit and Finance Committee is appointed by the Board.

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 required information from the Chief Executive Officer. This is in order to follow up on the company's financial position, results, liquidity, financial planning and development. The Chairman of the Board of Directors is also obliged to fulfil decisions made by the Annual General Meeting regarding establishment of an election committee and to participate in the work of the committee.

The Board of Directors – activities during 2015

In 2015, Castellum's Board held 11 meetings, of which one was the Board meeting following election. According to the prevailing procedural rules, the Board is to 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, specifically: the Annual Report, proposed appropriation of profits and issues relating to the AGM are dealt with in January; interim reports are discussed in April, July and October; strategy is examined in June and the budget for the following year is considered at the meeting in December.

At each of the scheduled board meetings, matters of significance for the company, such as investments, sales of properties and funding are covered. Further, the Board is informed on the current business situation in the rental and real estate markets as well as in the credit and stock markets. Issues about safety, incident reports and customer-related issues are managed regularly by the Board, and at each board meeting, an executive session is conducted without anyone from corporate management present. The Board also has meetings with the auditors without the presence of corporate management. Regular matters dealt with by the Board during 2015 included company-wide policies, an overall strategy plan, procedural rules for the Board, capital structure and funding needs, sustainability efforts, the business model and organizational issues, as well as the company's insurance situation. In addition, the Board devoted several meetings to enhancing their knowledge of operations through themed

THE BOARD'S YEAR

Issues, in addition to current state of operations, prospects, investments, sales, financing, reports from committee chairmen about the committee work as well as working environment questions, customer-related questions and reporting of incidents.

Board Meeting • Annual Report incl. • • of profits	• Net income for the year Sustainability Report Documents for AGM Proposed distribution • Rules of procedure and review policy documents • Individual meeting auditors	Board Meeting • Preparations for the AGM Board Meeting following election • Signatory appointed • Composition of the committees is decided		Board Meeting • Interim Report (Q1) • Decision logg • Monitoring investments and rental plans		Board Meeting • Strategy • Review financial and operational risks in the business Board Meeting	• Interim Report (Q2)		Board Meeting • Interim Report (Q3) • Decision logg • Insurance review • Monitoring investments and rental plans		Board Meeting • Business plans • Evaluation of the Board and CEO • Visit subsidiaries
Jan	Feb	March	April	May	June	July	Aug	Sept	Oct	Nov	Dec
• Financial position • Audit plan • Incident reporting Whistle-blower • Review disputes • Evaluation of the committees work	Audit and Finance Committee • Discussion with the auditors about financial statement		Annual General Meeting Audit and Finance Committee • Financial position • Risk management • Internal control • Incident reporting Whistle-blower • Evaluation of the audit work • Review and evaluation of	strategic objectives	Remuneration Committee • Review of incentive program • Review of remuneration principles for executive management			Audit and Finance Committee • Financial position • Review financial reporting process of policies • Incident reporting Whistle-blower Remuneration Committee • Guidelines remuneration principles • Preparing evaluation CEO	• Review compliance • Preparing outcome incitament	Committee rapportering regulations	Audit and Finance • Financial position • Review financial • Incident reporting Whistle-blower • Review changed • Discussions with the auditors about the half-year report and internal control

Board of Directors

CHARLOTTE STRÖMBERG CHAIRMAN OF THE BOARD SINCE 2012

Born 1959, Master of Business administration and Economics, Stockholm School of Economics.

Chairman of the Board in Castellum, Chairman of the Remuneration Committee and member of the Audit and Finance Committee

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). Board assignments: Member of Swedish Securities Council and Director in Bonnier Holding AB, Intrum Justitia AB (publ), Karolinska Institutet, Ratos AB (publ), Rezidor Hotel Group AB (publ) and Skanska AB (publ).

Shareholding in Castellum: 10,000

JAN ÅKE JONSSON BOARD MEMBER SINCE 2012

Born 1951, education in computing and business administration from Högre Tekniska Läroverket in Linköping and Uppsala University.

Board member in Castellum, member of the Remuneration Committee.

Previous positions: CEO at Saab Automobile AB and different operational management positions in Saab Automobil and General Motors.

Board assignments: Chairman of the board of directors of Polstiernan Industri AB and Datachassi AB. Board member of Opus Group AB (publ) and Västkustens Affärsänglar AB.

Shareholding in Castellum: 2,000

PER BERGGREN BOARD MEMBER SINCE 2007

Born 1959, Master of Science KTH and economic education from Stockholm University. CEO of Hemsö Fastighets AB.

Board member in Castellum, member of the Remuneration Committee.

Previous positions: CEO of Jernhusen AB, division manager in Fabege AB (publ), CEO of Drott Kontor AB and property manager in Skanska Fastigheter Stockholm AB. Board assignments: Board member in BRIS and Slättö Förvaltning AB. Shareholding in Castellum: 3,000

ANNA-KARIN HATT BOARD MEMBER SINCE 2015

Born 1972, degree in political science from the University of Gothenburg. CEO in Almega AB. Board member in Castellum.

Previous positions: Minister for Information Technology and Energy in the Swedish government, State Secretary at the Prime Minister's offi ce, second deputy Chairman of the Centre Part and Chief of Staff of the Centre Party's executive staff , MD for Didaktus Skolor AB and deputy MD of Kind & Partners AB. Other assignments: Director in Almega AB, TRR Trygghetsrådet and Trygghetsfonden TSL. Shareholding in Castellum: 857

CHRISTER JACOBSON BOARD MEMBER SINCE 2006

Born 1946, Master of Business Administration and Economics DHS. Own operations in Bergsrådet Kapital AB.

Board member in Castellum.

Previous positions: Stock commentator and market manager at Affärsvärlden and Head of Analysis and CEO of the Alfred Berg-group.

Board assignments: Director in Global Chalenges Foundation and Viscogel AB. Shareholding in Castellum: 45,000

NINA LINANDER BOARD MEMBER SINCE 2014

Born 1959, Master of Business administration and Economics, Stockholm School of Economics and MBA from IMD, Lausanne, Schweiz.

Board member in Castellum, Chairman of the Audit and Finance Committee

Previous positions: Founder and partner of Stanton Chase International AB, manager group Finance at AB Electrolux (publ), management positions in Vattenfall AB and experience from corporate finance at various investment banks in London. Board assignments: Director in Awapatent AB, Industrivärden AB (publ), Skanska AB (publ), Specialfastigheter Sverige AB and TeliaSonera AB (publ). Shareholding in Castellum: 8,000

JOHAN SKOGLUND BOARD MEMBER SINCE 2010

Born 1962, Master of Science KTH and the program of Master of Science Stockholm School of Economics. CEO JM AB (publ).

Board member in Castellum, member of the Audit and Finance Committee.

Previous positions: Has experience since 1986 from JM AB (publ) in different positions Board assignments: Director of JM AB (publ), Mentor Sverige and Infranord AB. Shareholding in Castellum: 3,000

Johan Ljungberg, lawyer at Mannheimer and Swartling, is the Secretary of the Board. The information above refers to the situation at the end of January 2016. Shareholdings include Member's own holdings and those of spouse, minors or children living at home and associated companies and holdings through capital assurance.

			Attendence meetings
Board of Directors	Remunerations, thousand SEK	Board meetings	Remuneration Committee	Audit and Finance Committee	Independent
Charlotte Strömberg	705	11 of 11	2 of 2	4 of 4	Yes
Per Berggren	330	11 of 11	2 of 2		Yes
Marianne Dicander Alexandersson (resigned March 2015)	–	2 of 2			Yes
Anna-Karin Hatt (elected in March 2015)	300	9 of 9			Yes
Christer Jacobson	300	11 of 11			Yes
Jan Åke Jonsson	330	11 of 11	2 of 2		Yes
Nina Linander	350	11 of 11		4 of 4	Yes
Johan Skoglund	335	11 of 11		4 of 4	Yes

THE BOARD

The board consists of 7 members

REMUNER ATION COMMITTEE

Remuneration Committee consists of three members. Chairman Charlotte Strömberg, Per Berggren and Jan Åke Jonsson.

Main tasks of the Remuneration Committee:

Guidelines for remuneration principles
Remuneration to the Executive Management
Incentive program
Evaluation of the CEO

AUDIT AND FINANCE COMMITTEE

Audit and Finance Committee consists of three members. Chairman Nina Linander and the members Charlotte Strömberg and Johan Skoglund.

Main tasks of the Audit and Finance Committee:

Financial reporting
Financing and capital structure
Risk management and compliance
The observance of regulations
Audit
Policies
Specialization in business related areas
Internal control

meetings and visits to the subsidiaries.

During 2015, the Board carried out a comprehensive external evaluation of its work, utilizing a company that specializes in board evaluations. The evaluation demonstrated an open and constructive climate and a well-functioning decision-making process.

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.

The evaluation and related discussion serve as a basis for the continuous development of the Board's work and ensure that the Board can make decisions which are as well-informed as possible.

No other compensation than remuneration for work on the Board and committees has been paid.

Remuneration Committee

The Board's Remuneration Committee continuously evaluates the remuneration to executive management in view of current market conditions. The Committee prepares matters for decisions by the Board. The members of the Remuneration Committee are appointed once a year.

The Remuneration Committee consists of three Board members, including the Chairman of the Board, who is Chairman of the Remuneration Committee. The Committee's rules of procedure are drawn from the Board of Directors' rules of procedure and are established annually. The Remuneration Committee's functions are to:

Prepare and propose guidelines for remunera tion principles, remuneration and employment terms for the CEO and other senior executives. The guidelines for remuneration are to be sub mitted to the Board which, in turn, will work out remuneration suggestions to be decided upon at the Annual General Meeting,
Monitor and evaluate ongoing incentive plans – completed during the year – for flexible remuneration to Executive Group Management. The results of the Remuneration Committee's evaluation of remuneration to senior executives are presented on the company's website,
Annually evaluate the work of the CEO.

The Remuneration Committee will meet at least twice a year. During 2015, the Committee held two meetings. Issues addressed at the meetings included the review of the remuneration of the CEO and other senior executives, decisions about changes in the remuneration of members of executive management, evaluation and follow-up of existing incentive programs, as well as HR and succession issues. In 2015, the Remuneration Committee also received a comprehensive external evaluation of the CEO's efforts. They developed parameter proposals for the individually

targeted factors regarding the annual performance -based incentive program. The Remuneration committee also accessed the CEO's evaluation of Executive Group Management.

Audit and Finance Committee

The Board's Audit and Finance Committee monitors financial and auditing matters and submits them to the Board for decision. The Chairman and members of the Committee are appointed annually.

The Audit and Finance Committee consists of three members, and the Committee's rules of procedure partly consist of the Board of Directors' rules of procedure, which are established annually. The Audit and Finance Committee's functions are to:

Review and monitor financial reports in order to monitor the effectiveness of internal audit and risk management,
Monitor work on capital structure and other funding issues and prepare funding issues for decisions by the Board,
Monitor the efforts concerning business risks and compliance, and ensure that appropriate systems for control and monitoring exist,
Submit an annual report on internal control and ensure that the corporate governance report describes the Board's measures to ascertain that the internal control works,
Keep informed about the Annual Report and consolidated accounts,
Review and monitor the auditor's impartiality and independence, and evaluate auditing activi ties, as well as informing the Election Committee of the evaluation outcome,
Assist the Committee in preparing proposals for auditors and compensation to them.

The Audit and Finance Committee will meet at least four times a year, and of these, the Group's auditors will attend at least twice. On one of the occasions when the Audit and Finance Committee meets with the auditors, no one from corporate management is to be present. In 2015, the Audit and Finance Committee met four times. Examples of the issues dealt with at meetings involved: capital structure and financing issues; financial reporting, including a review of future regulations and their possible consequences for Castellum; internal control and risk management, as well as the work of the auditors. This last includes auditor impartiality and independence – development of policies and feedback from the Whistleblowing-service. Business-related issues were also thoroughly investigated.

During the year, the Audit and Finance Committee has also held a private meeting with the compliance officer without the presence of management.

CEO and Executive Group Management

The Chief Executive Officer is responsible for the company's day-to-day management and for leading operations according to the guidelines and directives submitted by the Board of Directors. The CEO also provides the Board with information and the necessary documentation for decision-making. The CEO leads the work of Executive Group Management and makes decisions after consulting its members.

The Chief Executive Officer

The Chief Executive Officer reports at Board meetings and assures that members of the Board regularly receive the information required to follow the company's and the Group's financial position, results, liquidity and development.

Executive Group Management

Executive Group Management consists of the Chief Executive Officer, the Chief Financial Officer, the Chief Investment Officer and the Head of Business Development of Castellum AB as well as the six Managing Directors of the subsidiary companies. Each member of Executive Group Management has his or her own area of responsibility, and meetings mostly cover issues pertaining to overall operations. Executive Management held nine meetings in 2015.

In 2015, Erika Olsén took up a new position as Chief Investment Officer (CIO) at Castellum, with responsibility for overall investment strategy and major transactions.

The Chief Executive Officer and the Chief Financial Officer join the Managing Director of each subsidiary to constitute the Board for each local subsidiary.

Guidelines for remuneration for senior executives The 2015 AGM decided on the following remuneration guidelines for senior executives:

Castellum is to uphold competitive remuneration levels and attractive terms of employment to recruit and maintain excellent management with the competence and capacity to achieve set objectives. A fixed salary will be paid for work performed in a satisfactory manner. In addition, flexible 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, in that senior management members are also shareholders in Castellum. This also entails an increased proportion of executive remuneration being directly linked to the Group's development. Flexible remuneration, which generally cannot exceed the fixed salary, is determined by the extent to which previously set objectives are achieved for growth in property management per share and share price development. It is also determined by how individually targeted factors have developed. Flexible remuneration is paid as non-pensionable salary. Executives who receive flexible remuneration in accordance with the incentive program are committed to acquiring Castellum shares for at least half the amount of flexible remuneration after tax.

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

Upon termination by the Company, such period of notice shall not exceed six months for the Chief Executive Officer and twelve months for other executives. During the notice period full salary and other employment benefits are paid, with deduction for salary and remuneration received from other employment or business during the notice period. Such deduction will not be made in respect of the Managing Director. A severance pay, corresponding to twelve fixed monthly salaries, will be paid to the Managing Director upon termination by the company. Such severance pay will not be reduced due to other income received by the Managing Director.

Castellum has followed the guidelines decided by the 2015 AGM.

The proposed guidelines for remuneration for senior executives, which will be put forward at the AGM on March 17, 2016, are in principle unchanged compared with those put forward to the AGM in 2015.

Proposals for a renewed incentive program for senior executives – in principle, an extension of the previous program – will be presented at the AGM on March 17, 2016. The incentive program for the annual profit-based bonus is to be applicable during 2017–2019; for the share-price-based bonus the effective period is June 1, 2017, to May 31, 2020.

For further information regarding remuneration for Executive Group Management, see note 10.

Compliance and internal control

Castellum has a Compliance Officer who monitors compliance, i.e., ensures that laws, regulations and internal rules are complied with. The Group's corporate lawyer is Compliance officer.

Castellum's internal control is based on the established "COSO" framework, which consists of the following components: control environment, risk assessment, control activities, information, communication and monitoring. Castellum's internal control is described on pages 89–91.

Castellum has a whistle-blower function, which is accessed via all web sites of the Group and via the Group's Intranet. The service represents an early warning system for reporting deviations from Castellum's values and business ethics guidelines.

The Compliance Officer supports business activities by identifying and following up business risks. The Compliance Officer regularly reports risks and compliance to the CEO, as well as to the Audit and Finance Committee.

Executive Group Management

HENRIK SAXBORN CIEF EXECUTIVE OFFICER CASTELLUM AB

Born 1964, Master of Science. Multi-dimensional experience from construction business, management and acquisition of properties, i.e. as CEO for a property management company. Other assignments: member of EPRA Management Board and Director at CMB, Chalmers.

Employed since 2006.

Shareholdings: 38,542

ULRIKA DANIELSSON CHEIF FINANCIAL OFFICER CASTELLUM AB

Born 1972, Master of Business Administration and Economics. Varied experience within the financial and controlling function.

Employed since 1998, Finance Director since 2006 and CFO since 2014.

Shareholdings: 12,600

Shareholdings: 59,500

TAGE CHRISTOFFERSSON HEAD OF BUSINESS DEVELOPMENT CASTELLUM AB

Born 1952, upper secondary school and real estate/economy at KTH Has been working in the real estate

business since 1976. Employed since 1994 and Managing Director of Eklandia

since 2013.

since 1995 and Head of Business Development at Castellum AB

CECILIA FASTH MANAGING DIRECTOR EKLANDIA FASTIGHETS AB

Born 1973, Master of Science National and international experience from the construction and property sector since 1996.

Employed and Managing Director of Eklandia since 2014. Shareholdings: 3,000

CLAES JUNEFELDT MANAGING DIRECTOR FASTIGHETS AB CORALLEN

Born 1960, Master of Science Solid experience from building construction as team manager/ district manager.

Employed and Managing Director of Corallen since 2005. Shareholdings: 16,220

CLAES LARSSON MANAGING DIRECTOR ASPHOLMEN FASTIGHETER AB

Born 1957, Master of Science Long and varied experience from building construction as team manager/district manager.

Employed and Managing Director of Aspholmen since 2002. Shareholdings: 30,600

ANDERS NILSSON MANAGING DIRECTOR FASTIGHETS AB BROSTADEN

Born 1967, Master of Science More than 20 years experience from the real estate business. Employed since 1993 and Managing Director of Brostaden since 2006. Shareholdings: 13,234

ERIKA OLSÉN CHIEF INVESTMENT OFFICER (CIO)

Born 1976, Master of Science KTH Long experience from both international and Swedish real estate markets. Partner of Tenzing and Associate Director of JLL in London. Employed since 2015. Shareholdings: 2,000

OLA ORSMARK MANAGING DIRECTOR FASTIGHETS AB BRIGGEN

Born 1971, Master of Science Fully experienced from the real estate business, most recently as Buisness Area Manager at Jernhusen. Employed and Managing Director of Briggen since 2014. Shareholdings: 750

CHRISTER SUNDBERG MANAGING DIRECTOR HARRY SJÖGREN AB

Born 1955, Master of Science More than 30 years experience from banks and real estate companies.

Employed and Managing Director of Harry Sjögren since 1993. Shareholdings: 54,955

The information above refers to the situation at the end of January 2016. Shareholdings include personal holdings and those of spouse, minors or children living at home and associated companies and holding through capital assurance. CEO has no significant shares or ownership in companies with whom Castellum has significant business relations.

Compliance and 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 financial reporting.

Internal control in Castellum follows an established framework, Internal Control – Integrated Framework, "COSO", comprising the following five components: control environment, risk assessment, control activities, information-andcommunication, and monitoring. A schematic description of the internal contral is shown below.

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 approx. 600 properties, as well as cost centres, which are managed by six Subsidiaries. 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. Identified risks are assessed and measures are set to reduce these risks. The important risks Castellum has identified in financial 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 acitivities

The risks identified in financial 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-officer activities; group-wide definitions; templates and tools for reporting as well as accounting and valuation principles.

Castellum subsidiaries have their own financial functions, which take part in the planning and follow-up of financial results for their units. The

CASTELLUM'S INTERNAL CONTROL ENVIRONMENT

INTERNAL CONTROL IS GOVERNED BY:

Board of Directors rules of procedures • Audit and Finance Committee's rules
and procedures • Rules for decision making
Instructions for authorization
Accounting manuals
Reporting manuals
Finance policy, communication policy, insider policy, sustainability policy, Code of Conduct, Code of Conduct for suppliers and partners and Crisis management
Guidelines for information security, insurance and electricity trading
Accounting manual, HR manual, Manager manual
Finance instructions
Continuity plan

regular self-analysis of unit financial reporting and the analysis made at Group level constitute an important part of internal control. This ensures that financial reporting does not contain any significant errors.

Board reviews the interim and annual reports before publishing.

Information and communication

Castellum has processes for information and communication that aim to ensure the effective and correct distribution of information regarding financial reporting. This demands that all areas of the operation communicate and share relevant and important information. Policies and guidelines regarding financial reporting as well as updates and changes are made available and clearly communicated to the personnel concerned. Executive management, as well as the Board of Directors regularly receive financial information about the subsidiaries with comments on financial results and risks. The Board of Directors also receives additional information regarding risk management, internal control and financial reporting from the auditors through the Audit and Finance 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 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.

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

In Castellum's flat organization each employee has an important role and new ideas are valued. A high level of competence is available within the organization.

Long-term value creation

Long-term value creation requires that operations are run with a sustainability focus. Sustainability work involves both environmental considerations such as reduced use of resources and close control of the property portfolio, as well as assumption of social responsibility by contributing to the development of the communities where Castellum operates. Our efforts also involve ensuring a healthy working environment for

GROUP POLICIES ISSUED BY THE BOARD

	Aim
Financial policy	Establishes overall objectives and guidelines for financial risk and how financial operations will be run. The financial policy also specifies how responsibility for the financial operations will be distributed and how financial risks will be reported and monitored. The financial policy includes instructions for how operational activities will be run.
Communication policy	Ensures that all Group communication is accurate and provided in a professional manner, with optimal timing. The policy covers both internal and external communications.
Insider policy	Ensures ethical activities in the capital market through description of trade and reporting requirements.
Sustainability policy	Provides guidelines for how the Group's sustainability activities will be pursued. The efforts will contribute to sustainable development and constitute an integral and natural part of Castellum's operations, which are based on participation and engagement.
Code of Conduct	Offers guidelines to ensure that business operations are run in a responsible manner, with the objective that all business decisions are sound and healthy. The Code of Conduct will govern the Group's actions in relation to employees, contractors, customers, suppliers and other stakeholders.
Code of Conduct for suppliers and partners	Corresponding guidelines to ensure that business operations are run in a responsible manner, with the objective that all business decisions are sound and healthy.
Crisis Management	Provides guidelines for the Group about how to act and communicate in a crisis.

employees. Sustainability activities are carried out in collaboration with customers and other stakeholders – a requirement for success. Guidelines for how value-creating sustainability activities are conducted are found in the Sustainability Policy, Code of Conduct and the Code of Conduct for Suppliers and Partners. Castellum reports on sustainability efforts in accordance with the GRI G4. Reports on sustainability activities are regularly provided for the Castellum Board.

Monitoring

Regular follow-ups take place on many levels in the Group, on both property-level and subsidiarylevel as well as Group level. The Board of Directors, which also makes up the Audit and Finance Committee, regularly evaluates the information provided by Executive Group Management and the auditors. The company's auditors also report in person directly to the Audit and Finance Committee at least twice a year regarding their auditing observations and their assessment of internal control. In addition, the Audit and Finance Committee conducts an annual review of the risk assessments and agreed-upon measures. Monitoring by the Audit and Finance Committee and the Board of Directors is of particular importance for the development of internal control and for ensuring that timely measures are taken for potentially emerging shortcomings and suggestions.

The need for internal audits

Castellum features a small-scale organization with 40–60 employees in each subsidiary. Together, these units manage approx. 600 properties, i.e., cost centres. About 20 people work at the parent company, Castellum. All real estate management is run by the subsidiaries, while financial management is taken care of by the parent company. This means that Castellum AB is not a profit centre. It places the financial function of the parent company in the twin roles of a controlling function for the subsidiaries and a complianceofficer function for the Treasury Department. The Finance Director in the parent company also reports directly to the Audit and Finance Committee, without other management in attendance. In addition, a "whistleblowing-service" can be accessed through the Group's web pages. In all, this structure provides a rationale for the assessment that there is no need for a special internal auditing unit.

Whistle-blower

Castellum's whistle-blowing-service, "Help us to do right", can be reached by all the web pages in the Group and through the Group's Intranet. The whistleblowing-service is an early warning system which provides both employees as well as external partners the possibility to anonymously report a concern about something that is not in line with Castellum's corporate values and business ethics. The service is administered by an external partner to ensure anonymity and professionalism.

Quarterly Summary

	2015	2015	2015	2015		2014	2014	2014	2014
	JAN-MARCH	APR-JUNE	JULY-SEPT	OCT-DEC	2015	JAN-MARCH	APR-JUNE	JULY-SEPT	OCT-DEC	2014
Income Statement, SEKm
Rental income	801	816	832	850	3,299	820	843	833	822	3,318
Property costs	– 283	– 256	– 235	– 300	– 1,074	– 302	– 262	– 234	– 298	– 1,096
Net operating income	518	560	597	550	2,225	518	581	599	524	2,222
Central administrative expenses	– 29	– 32	– 21	– 31	– 113	– 26	– 30	– 23	– 29	– 108
Joint venture (Income from prop mgmnt.)	–	2	12	9	23	–	–	–	–	–
Net interest costs	– 151	– 152	– 152	– 147	– 602	– 169	– 171	– 167	– 157	– 664
Income from property management incl.
results joint venture	338	378	436	381	1,533	323	380	409	338	1,450
Changes in value. properties	329	551	– 62	1,019	1,837	52	305	– 3	– 10	344
Changes in value. derivatives	– 102	239	– 84	163	216	– 170	– 196	– 132	– 162	– 660
Joint venture (changes in value and tax)	–	0	– 3	1	– 2	–	–	–	–	–
Current tax	– 5	– 4	– 4	– 3	– 16	– 3	– 1	– 6	– 1	– 11
Deferred tax	– 109	– 216	– 61	– 301	– 687	– 31	– 99	– 55	273	88
Net income for the period/year	451	948	222	1,260	2,881	171	389	213	438	1,211
Other total net income	– 6	0	4	– 6	– 8	0	4	0	4	8
Total net income for the period/year	445	948	226	1,254	2,873	171	393	213	442	1,219
Balance Sheet, SEKm
Investment properties	38,951	40,187	40,826	41,818	41,818	38,668	39,385	39,733	37,599	37,599
Joint venture	–	479	510	526	526	–	–	–	–	–
Other fixed assets	599	489	270	269	269	255	408	350	442	442
Liquid assets	73	55	105	39	39	185	177	174	47	47
Total assets	39,623	41,210	41,711	42,652	42,652	39,108	39,970	40,257	38,088	38,088
Shareholders' equity	13,340	14,288	14,514	15,768	15,768	12,601	12,994	13,207	13,649	13,649
Deferred tax liability	3,721	3,937	3,998	4,299	4,299	3,731	3,830	3,885	3,612	3,612
Other provisions	21	19	18	14	14	–	–	–	23	23
Derivatives	1,447	1,202	1,299	1,117	1,117	853	1,055	1,188	1,357	1,357
Long term interest-bearing liabilities	19,791	20,483	20,680	20,396	20,396	20,730	20,802	20,761	18,446	18,446
Non-interest-bearing liabilities	1,303	1,281	1,202	1,058	1,058	1,193	1,289	1,216	1,001	1,001
Total shareholders' equity and liabilities	39,623	41,210	41,711	42,652	42,652	39,108	39,970	40,257	38,088	38,088
Financial key ratios
Net operating income margin	65%	69%	72%	65%	67%	63%	69%	72%	64%	67%
Interest rate, avarage	3.2%	3.0%	3.0%	2.9%	3.0%	3.5%	3.4%	3.3%	3.2%	3.3%
Interest coverage ratio	324%	349%	379%	353%	351%	291%	322%	345%	315%	318%
Return on actual net asset value	13.1%	26.0%	5.5%	33.2%	20.4%	5.2%	12.2%	6.6%	6.3%	7.6%
Return on total capital	8.5%	10.8%	5.0%	14.6%	10.0%	5.6%	8.7%	5.7%	4.9%	6.5%
Return on equity	13.6%	28.4%	6.2%	34.7%	21.7%	5.4%	12.3%	6.6%	13.3%	9.5%
Investments in properties, SEKm	1,117	834	740	862	3,553	960	523	369	673	2,525
Sales, SEKm	78	183	18	861	1,140	96	125	19	2,814	3,054
Loan to value ratio	50%	51%	50%	49%	49%	53%	52%	52%	49%	49%
Data per share (since there are no potential common stock there is no effect of dilution)
	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000
Average number of shares, thousand	2.06	2.30	2.66	2.32	9.35	1.97	2.32	2.49	2.06	8.84
Income from property management, SEK	1.95	2.25	2.40	2.43	9.03	1.80	2.13	2.34	1.99	8.26
Income prop mgmt after tax (EPRA EPS), SEK	2.75	5.78	1.35	7.68	17.57	1.04	2.37	1.30	2.67	7.38
Earnings after tax, SEK	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000
Outstanding number of shares, thousand	238	245	249	255	255	236	240	242	229	229
Property value, SEK	113	118	121	129	129	105	109	111	114	114
Long term net asset value (EPRA NAV), SEK	99	105	107	116	116	94	97	99	100	100
Actual net asset value (EPRA NNNAV), SEK Dividend, SEK (2015 proposed)	–	–	–	–	4.90	–	–	–	–	4.60
	–	–	–	–	52%	–	–	–	–	52%
Dividend ratio
Property related key ratios
Rental value, SEK/sq.m.	1,082	1,092	1,103	1,095	1,095	1,045	1,047	1,040	1,070	1,064
Economic occupancy rate	88.7%	88.7%	89.6%	91.5%	90.3%	87.9%	89.0%	88.3%	88.8%	88.7%
Property costs, SEK/sq.m.	336	302	276	348	316	334	289	256	340	307
Property value, SEK/sq.m.	11,384	11,602	11,758	12,282	12,282	10,394	10,552	10,621	11,118	11,118

Multi-Year Summary

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006
Income Statement, SEKm
Rental income	3,299	3,318	3,249	3,073	2,919	2,759	2,694	2,501	2,259	2,014
Property costs	– 1,074	– 1,096	– 1,105	– 1,042	– 1,003	– 960	– 942	– 831	– 771	– 700
Net operating income	2,225	2,222	2,144	2,031	1,916	1,799	1,752	1,670	1,488	1,314
Central administrative expenses	– 113	– 108	– 96	– 93	– 83	– 84	– 81	– 71	– 69	– 67
Joint venture (Income from prop mgmnt)	23	–	–	–	–	–	–	–	–	–
Net interest costs	– 602	– 664	– 702	– 683	– 660	– 574	– 541	– 626	– 495	– 364
Income from property management incl.
results joint venture	1,533	1,450	1,346	1,255	1,173	1,141	1,130	973	924	883
Changes in value, properties	1,837	344	328	– 69	194	1,222	– 1,027	– 1,262	920	1,145
Changes in value, derivatives	216	– 660	429	– 110	– 429	291	102	– 1,010	99	178
Joint venture (changes in value and tax)	– 2	–	–	–	–	–	–	–	–	–
Current tax	– 16	– 11	– 6	– 7	– 10	– 5	– 10	–14	– 22	– 10
Deferred tax	– 687	88	– 390	404	– 217	– 685	– 35	650	– 434	– 522
Net income for the year	2,881	1,211	1,707	1,473	711	1,964	160	– 663	1,487	1,674
Other total net income	– 8	8	3	– 4	0	–	–	–	–	–
Total net income for the year	2,873	1,219	1,710	1,469	711	1,964	160	– 663	1,487	1,674
Balance Sheet, SEKm
Investment properties	41,818	37,599	37,752	36,328	33,867	31,768	29,267	29,165	27,717	24,238
Joint venture	526	–	–	–	–	–	–	–	–	–
Other fixed assets	269	442	291	259	207	156	201	230	123	200
Liquid assets	39	47	70	44	97	12	8	9	7	8
Total assets	42,652	38,088	38,113	36,631	34,171	31,936	29,476	29,404	27,847	24,446
Shareholders' equity	15,768	13,649	13,127	12,065	11,203	11,082	9,692	10,049	11,204	10,184
Deferred tax liability	4,299	3,612	3,700	3,310	3,714	3,502	2,824	2,785	3,322	2,723
Other provisions	14	23	–	–	–	–	–	–	–	–
Derivatives	1 117	1,357	683	1,105	1,003	574	865	966	– 44	55
Long term interest-bearing liabilities	20,396	18,446	19,481	19,094	17,160	15,781	15,294	14,607	12,582	10,837
Non-interest-bearing liabilities	1,058	1,001	1,122	1,057	1,091	997	801	997	783	647
Total shareholders' equity and liabilities	42,652	38,088	38,113	36,631	34,171	31,936	29,476	29,404	27,847	24,446
Financial key ratios
Net operating income margin	67%	67%	66%	66%	66%	65%	65%	67%	66%	65%
Interest rate, avarage	3.0%	3.3%	3.7%	3.9%	4.1%	3.7%	3.7%	4.7%	4.2%	3.7%
Interest coverage ratio	351%	318%	292%	284%	278%	299%	309%	255%	287%	343%
Return on actual net asset value	20.4%	7.6%	13.2%	7.9%	6.4%	21.5%	1.6%	– 8.3%	16.20%	20.7%
Return on total capital	10.0%	6.5%	6.4%	5.3%	6.2%	9.8%	2.1%	1.2%	9.1%	10.4%
Return on equity	21.7%	9.5%	14.6%	13.5%	6.6%	20.9%	1.6%	– 6.1%	14.9%	19.2%
Investments in properties, SEKm	3,553	2,525	1,768	2,798	2,015	1,506	1,165	2,738	2,598	2,283
Sales, SEKm	1,140	3,054	687	253	107	227	36	28	39	460
Loan to value ratio	49%	49%	51%	52%	50%	50%	52%	50%	46%	45%
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	9.35	8.84	8.21	7.65	7.15	6.96	6.89	5.93	5.63	5.38
Income prop mgmt after tax (EPRA EPS), SEK	9.03	8.26	8.04	7.27	7.01	6.62	6.93	5.85	5.50	5.09
Earnings after tax, SEK	17.57	7.38	10.41	8.98	4.34	11.98	0.98	– 4.04	9.07	10.21
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	255	229	230	222	207	194	178	178	169	148
Long term net asset value (EPRA NAV), SEK	129	114	107	100	97	92	82	84	88	79
Actual net asset value (EPRA NNNAV), SEK	116	100	97	90	87	85	73	75	85	76
Dividend, SEK (2015 proposed)	4.90	4.60	4.25	3.95	3.70	3.60	3.50	3.15	3.00	2.85
Dividend ratio	52%	52%	52%	52%	52%	52%	51%	53%	53%	53%
Property related key ratios
Rental value, SEK/sq.m.	1,095	1,064	1,036	1,015	995	974	969	921	896	864
Economic occupancy rate	90.3%	88.7%	88.4%	88.6%	89.3%	89.0%	89.8%	89.7%	87.9%	87.1%
Property costs, SEK/sq.m.	316	307	307	298	300	298	300	268	262	259
Property value, SEK/sq.m.	12,282	11,118	10,285	9,916	9,835	9,499	9,036	8,984	9,098	8,466

Financial reports 2015

Consolidated Statement of Comprehensive Income	95
Consolidated Balance Sheet	96
Income Statement and Comprehensive Income for the Parent Company	97
Balance Sheet for the Parent Company	98
Change in Equity	99
Cash Flow Statement	100
Accounting Principles and Notes	101
1. Accounting Principles	101
2. Segment Reporting	104
3. Rental Income	104
4. Property Costs	105
5. Central Administrative Expenses	106
6. Interest and Financial Income	106
7. Interest and Financial Costs	106
8. Change In Value	106
9. Income Taxes	106
10. Personnel and Board of Directors	107
11. Investment Properties	108
12. Equipment	109
13. Parts of Joint Venture	109
14. Shareholders´ Equity and Net Asset Value	110
15. Liabilities	110
16. Deferred Tax Liability/Asset	111
17. Other Provisions	111
18. Derivatives	111
19. Financial Risk Management	112
20. Accrued Expenses and Prepaid Income	113
21. Pledged Assets	113
22. Contigent Liabilities	113
23. Participations in Group Companies	113
24. Long-term Receivables, Group Companies	113
25. Financial Instruments	113
26. Subsequent Events	113

Consolidated Statement of Comprehensive Income

SEKM Rental income	Note 3	2015 3,299	2014 3,318
Operating expenses	Note 4	– 507	– 542
Maintenance	Note 4	– 133	– 136
Ground rent	Note 4	– 27	– 27
Property tax	Note 4	– 172	– 170
Leasing and property administration	Note 4	– 235	– 221
Net operating income		2,225	2,222
Central administrative expenses	Note 5	– 113	– 108
Results from joint venture		21	–
- of which income from property management		23	–
- of which changes in property values		3	–
- of which tax		– 5	–
Net interest
Interest income	Note 6	4	3
Interest cost	Note 7	– 606	– 667
Income from property management incl. results joint venture		1,531	1,450
- of which income from property management		1,533	1,450
Properties	Note 8
Fastigheter		1,837	344
Derivatives		216	– 660
Income before tax		3,584	1,134

Current tax	Note 9	– 16	– 11
Deferred tax	Note 9	– 687	88
Net income for the year		2,881	1,211
Other total net income
Items that will be reclassified into net income
Translation difference foreign operations		– 32	22
Change in value, currency hedge foreign operations		24	– 14
Total net income for the year		2,873	1,219

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

Average number of shares, thousand	164,000	164,000
Net income for the year after tax, SEK	17.57	7.38

Consolidated Balance Sheet

SEKM		DEC 31 2015	DEC 31 2014
ASSETS
Fixed assets
Investment properties	Note 11	41,818	37,599
Tangible fixed assets	Note 12	24	28
Share in joint venture	Note 13	526	–
Other fixed assets		3	–
Total fixed assets		42,371	37,627
Current assets
Rent receivables	Note 3	7	13
Other receivables		121	312
Prepaid expenses and accrued income		114	89
Cash and bank		39	47
Total current assets		281	461
TOTAL ASSETS		42,652	38,088

SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity attributable to the shareholders of
the parent company	Note 14
Share capital		86	86
Other capital contribution		4,096	4,096
Reserves		– 1	7
Retained earnings		11,587	9,460
Total shareholders' equity		15,768	13,649

Liabilities Long-term liabilities	Note 15
Deferred tax liability	Note 16	4,299	3,612
Other provisions	Note 17	14	23
Derivatives	Note 18	1,117	1,357
Long-term interest-bearing liabilities	Note 19	20,396	18,446
Total long-term liabilities		25,826	23,438

Short-term liabilities
Accounts payable		81	120
Tax liabilities		18	5
Other liabilities		209	189
Accrued expenses and prepaid income	Note 20	750	687
Total short-term liabilities		1,058	1,001
Total liabilities		26,884	24,439
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		42,652	38,088

Pledged assets	Note 21	18,164	18,222
Contingent liabilities	Note 22	–	–

Income Statement for the Parent Company

SEKM		2015	2014
Income	Note 3	21	21
Central administrative expenses	Note 5	– 90	– 84
Financial items
Financial income	Note 6	1,473	1,586
Financial costs	Note 7	– 649	– 678
Income before changes in value and tax		755	845
Changes in value	Note 8
Derivatives		216	– 660
Income before tax		971	185

Current tax	Note 9	–	–
Deferred tax Net income for the year	Note 9	– 76 895	51 236


		2015	2014
		895	236
Other total net income
Items that will be reclassified into net income
Translation difference foreign operations Change in value, currency hedge foreign operations		– 24 24	14 – 14
Comprehensive Income for the Parent Company SEKM Net income for the year according to the Income Statement

Comprehensive Income for the Parent Company

SEKM	2015	2014
Net income for the year according to the Income Statement	895	236

Other total net income
Items that will be reclassified into net income
Translation difference foreign operations	– 24	14
Change in value, currency hedge foreign operations	24	– 14
Total net income for the year	895	236

Balance Sheet for the Parent Company

SEKM ASSETS		DEC 31 2015	DEC 31 2014
Fixed assets
Tangible fixed assets	Note 12	3	4

Financial fixed assets
Participations in group companies	Note 23	6,030	6,030
Deferred tax assets	Note 16	78	154
Long-term receivables, group companies	Note 24	19,103	17,093
Total financial fixed assets		25,211	23,277
Total fixed assets		25,214	23,281

Current assets
Short-term receivables, group companies		815	897
Prepaid expenses and accrued income		31	23
Liquid assets		0	16
Total current assets		846	936
TOTAL ASSETS		26,060	24,217
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	Note 14
Restricted equity
Share capital		86	86
Restricted reserves		20	20
Non-restricted equity
Fair value reserves		– 2	– 2
Retained earnings		3,719	4,237
Net income for the year		895	236
Total shareholders' equity		4,718	4,577
Liabilities	Note 15
Long-term liabilities
Derivatives	Note 18	1,117	1,357
Long-term interest-bearing liabilities	Note 19	18,005	16,280
Long-term interest bearing liabilities, group companies		2,105	1,722
Total long-term liabilities		21,227	19,359

Short-term liabilities
Short-term interest bearing liabilities, group companies		–	161
Accounts payable		3	4
Accrued expenses and prepaid income	Note 20	112	116
Total short-term liabilities		115	281
Total liabilities		21,342	19,640
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		26,060	24,217

Pledged assets	Note 21	15,309	15,200
Contingent liabilities	Note 22	2,150	2,165

Change in Equity

Group, SEKm (note 13) Shareholders' equity 31-12-2013 Dividend, March 2014 (4.25 per share)	Number of out-standing shares, thousand		Attributable to the shareholders of the parent company

		Share capital	Other capital contribution	Currency translation reserve	Currency hedge reserve	Retained earnings	Total equity
	164,000	86	4,096	– 2	1	8,946	13,127
	–	–	–	–	–	– 697	– 697
Net income for the year	–	–	–	–	–	1,211	1,211
Other total net income	–	–	–	22	– 14	–	8
Shareholders' equity 31-12-2014	164,000	86	4,096	20	– 13	9,460	13,649
Dividend, March 2015 (4.60 per share)	–	–	–	–	–	– 754	– 754
Net income for the year	–	–	–	–	–	2,881	2,881
Other total net income Shareholders' equity 31-12-2015	– 164,000	– 86	– 4,096	– 32 – 12	24 11	– 11,587	– 8 15,768
	Fair value reserves
Parent Company, SEKm (note 13)	Number of out-standing	Share	Restricted	Currency translation	Currency hedge	Retained	Total
Shareholders' equity 31-12-2013	shares, thousand 164,000	capital 86	reserves 20	reserve – 3	reserve 1	earnings 4,934	equity 5,038
Dividend, March 2014 (4.25 per share)	–	–	–	–	–	– 697	– 697
Net income for the year	–	–	–	–	–	236	236
Other total net income	–	–	–	14	– 14	–	0
Shareholders' equity 31-12-2014	164,000	86	20	11	– 13	4,473	4,577
Dividend, March 2015 (4.60 per share)	–	–	–	–	–	– 754	– 754
Net income for the year	–	–	–	–	–	895	895
Other total net income Shareholders' equity 31-12-2015	– 164,000	– 86	– 20	– 24 – 13	24 11	– 4,614	0 4,718

				Fair value reserves			Total equity
Parent Company, SEKm (note 13)	Number of out-standing shares, thousand	Share capital	Restricted reserves	Currency translation reserve	Currency hedge reserve	Retained earnings
Shareholders' equity 31-12-2013	164,000	86	20	– 3	1	4,934	5,038
Dividend, March 2014 (4.25 per share)	–	–	–	–	–	– 697	– 697
Net income for the year	–	–	–	–	–	236	236
Other total net income	–	–	–	14	– 14	–	0
Shareholders' equity 31-12-2014	164,000	86	20	11	– 13	4,473	4,577
Dividend, March 2015 (4.60 per share)	–	–	–	–	–	– 754	– 754
Net income for the year	–	–	–	–	–	895	895
Other total net income	–	–	–	– 24	24	–	0
Shareholders' equity 31-12-2015	164,000	86	20	– 13	11	4,614	4,718

Cash Flow Statement

	GROUP		PARENT COMPANY
SEKM	2015	2014	2015	2014
Operating activities
Net operating income	2,225	2,222	21	21
Central administrative expenses	– 113	– 108	– 90	– 84
Depreciations reversed	12	12	2	2
Net financial items paid	– 605	– 689	6	– 15
Tax paid	– 8	– 7	–	–
Translation difference of currencies	– 7	– 10	–	–
Cash flow from operating activities before change in working capital	1,504	1,420	– 61	– 76
Cash flow from change in working capital
Change in current receivables	– 66	88	74	– 190
Change in current liabilities	69	– 118	– 2	3
Cash flow from operating activities	1,507	1,390	11	– 263

Investment activities
Investments in new constructions, extensions and reconstructions	– 1,232	– 1,378	–	–
Property acquisitions	– 2,321	– 1,147	–	–
Change in liabilities at acquisitions of properties	– 17	18	–	–
Property sales	1,135	3,077	–	–
Change in receivables at sales of properties	238	– 242	–	–
Net capital contributions, subsidiaries	–	–	815	736
Investment joint venture	– 505	–	–	–
Other net investments	– 9	– 9	– 1	– 2
Cash flow from investment activities	– 2,711	319	814	734
Financing activities
New borrowing in interest-bearing liabilities	1,950	– 1,035	1 947	– 150
Change in long-term receivables	–	–	– 2,034	340
Dividend paid	– 754	– 697	– 754	– 697
Cash flow from financing activities	1,196	– 1,732	– 841	– 507

Cash flow for the year	–8	– 23	– 16	– 36
Cash and bank, opening balance	47	70	16	52
Cash and bank, closing balance	39	47	0	16

Accounting Principles and Notes

(All figues in SEKm unless stated otherwise.)

Note 1 Accounting Principles

General Information

The financial reports of Castellum AB (The Parent Company) for the financial year ending December 31, 2015, have been approved by the Board of Directors and the Chief Executive Officer for publication on February 1, 2016, and will be proposed to the 2016 Annual General Meeting for adoption. The parent company is a public Swedish limited liability company, registered in Gothenburg, Sweden. The business activities of the Group are described in the Directors' report.

Basis for accounting

Castellum's accounts have been prepared in accordance with the IFRS standards adopted by the EU. 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 are prepared based on fair value of investment properties and derivatives, nominal value for deferred tax and acquisition value for the remaining items.

Critical assessments

Accounts completed in accordance with the IFRS and generally accepted accounting principles requires assessments and assumptions affecting 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 differ from these assessments if other assumptions are made or other conditions exist.

Investment properties

For valuation of investment properties, assessments and assumptions can have a significant affect on the income and financial position of the Group. These valuations require estimates and assumptions of future cash flows and the discounting factor (required yield). To reflect 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 assumptions is presented in note 11.

Asset acquisition versus business combination

A company acquisition can be classified as either a business combination or an asset acquisition. An acquisition that has the 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 classified as an asset acquisition. Other company acquisitions are classified as business combinations.

For asset acquisitions no deferred tax is recorded in the acquisition. Instead, a possible tax discount reduces the acquisition value of the property, meaning 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 tax rate without discount, i.e. the decided 22% corporate tax rate. Actual tax is considerably lower, in part due to the possibility to sell properties in a tax-efficient manner, and in part due to the time factor.

Income from property management

Castellum's operations are focused on cash flow 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 income from property management. 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-flow) are presented after items affecting cash-flow. Furthermore, one performance measure has been added on which the business operations are managed and targeted: the income from property management.

Classification

Fixed assets and long-term liabilities consist of items 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 items that are expected to be regained or settled in less than twelve months from the balance sheet date.

Consolidated financial statements

The Group's balance sheet and income statement include all companies where the parent company has direct or indirect control, which is obtained when Castellum achieves voting majority. All companies in the Group are wholly-owned except for a joint venture thst was acquired during 2015. In addition to the parent company, the Group comprises the subsidiaries listed in Note 23 and their respective sub-groups. The consolidated financial statements are based upon the accounts for all subsidiaries as of December 31. The consolidated financial statements are 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. CASTELLUM ANNUAL REPORT 2015 DIRECTORS' REPORT FINANCIAL REPORTS

A joint venture is a joint arrangement whereby the parties who have joint control have the right to the net assets. Shares in joint ventures are accounted for using the equity method, which means that shares in a company are reported at acquisition value at time of acquisition and subsequently adjusted by the owner company's share of the change in the net assets of the investment object. The ownership company's results include the ownership company's share of the investment object's results.

The consolidated income statement includes companies acquired or sold during the year only for the time of possession. Intra-group sales, income, losses and balances 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 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.

Income

Rental income

Rental income, which from an accounting perspective represents income from operating leases, is invoiced 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. Pre-paid rents are recorded as deferred rental income.

In cases where a lease during a certain period of time offers a reduced rent, corre-sponding 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. Sales of properties through companies are net accounted concerning underlying property price and calculated tax. 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 for the period to which various financial revenues refer. Group contributions received and anticipated dividends are also recorded as financial income. In the calculation of financial income the effect interest method is applied.

Financial costs

Financial costs include interest and other costs that occur when borrowing money. Pledging costs for mortgages are not considered financial costs and are capitalized as property investments 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 interestrate derivatives are accounted for in the period to which they refer. Net financial items are not affected by market valuation of the undertaken interest rate derivatives. Instead, changes in market value of interest-rate derivatives are recorded as changes in value under a separate headline. The portion of interest cost originating from the construction period for major new constructions, extensions or reconstructions are capitalized. Interest is calculated based on the average interest rate level for the Group.

Employee benefits

Employee benefits are accounted for as employees perform services in exchange for remuneration. Benefits 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 benefits are classified as defined contribution or defined benefit plans. The majority of the Castellum Group's pension commitments are defined contribution plans, fulfilled 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 defined ITP-plans with regular payments to Alecta. These plans are recorded as defined contribution plan since Alecta does not provide the information needed in order to report the plan as a defined benefit plan. There are no indications of any significant liabilities in addition to what has already been paid to Alecta.

Income taxes

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 transactions recorded directly in equity. In these cases, related tax effects also are recorded directly in equity. Current and deferred taxes are calculated based on current tax rate, 22%.

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 fiscal year, after taxation has been assessed by the tax authorities.

Deferred tax

Deferred tax is recorded in Castellum, using the balance 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. Exceptions are made for temporary differences that arise from the initial accounting for assets and liabilities relating to asset acquisitions. Castellum has two entries that contains temporary differences - 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, which is 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 not is accounted for in the balance sheet.

Current tax

Current tax, the tax the company must pay on taxable income for the year, is recorded in the income statement. It includes adjustments for previous periods.

Leases

Leases where all crucial risks and benefits associated with the ownership fall on the lessor, are classified as operational leases. From an accounting perspective, all existing rental leases related to Castellum's investment properties are classified as operational leases. Refer to accounting principles for income and note 3 for futher information of accounting for leases.

Site leasehold is, from an accounting perspective, an operational lease. The ground rent is accounted for in the income statement for the period to which it refers.

There are a small number of leases of insignificant value, where Castellum is the lessee. These leases are also accounted for as operational leases and concerns mainly leased cars. Payments made during the leasing period are recorded as running costs in the income statement, distributed over the leasing period.

Investment properties

Investment properties are properties held for the purpose of generating rental income, capital appreciation - or both. This is opposed to utilization in the 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 classified as investment properties. If the Group starts an investment on an existing investment property for future use as an investment property, the property continues to be recorded as an investment property.

Valuation

Investment properties are initially recorded at acquisition cost which includes expenses directly related to the acquisition and are subsequently recorded at fair value with changes in value in the income statement. Fair value is 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 flows. 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 financial 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. Principals for calculation of realized changes in value is described in the principles for Income from property sales.

Subsequent expenditures

Subsequent expenditures which lead to economic benefits 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. For 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 signing date, unless special conditions exist in the purchasing contract.

Tangible fixed assets

Tangible fixed assets comprise all equipment, which has been recorded at acquisition value, including deduction of accumulated depreciation according to plan and any write-downs. Acquisition value includes purchase price and costs directly related to the acquisition, 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 deduction of subsequent write-downs. Residual value is assumed to be nonexistent. Depreciation of assets acquired during the year is calculated with reference to the date of acquisition. Depreciation is linear, which means equal depreciation during the period of use, normally five years, except for computers that are expected to have a three-year period of use.

Financial instruments

Financial instruments 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 at fair value equivalent to acquisition value, with the addition of transaction costs, except for financial 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 classification 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 financial asset is removed from the balance sheet when the rights are realized, expired or the company loses control of it. A financial liability is derecognized from the balance sheet when the contractual obligations have been paid or in some other way extinguished.

Cash and bank

Cash and cash equivalents could consist of the Group's available cash balances with banks and similar institutions, as well as by bank deposits with a residual maturity of no more than ten (10) banking days, short-term investments in treasury bills and bank and municipal bonds with a residual maturity of a maximum of three (3) months. At December 31, cash and cash equivalents consisted entirely of disposable bank balances.

Receivables

Financial assets which are not derivatives, that have fixed 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 deduction 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 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 long-term. 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 counter-party 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) at the spot exchange rate of the transaction. Monetary assets and liabilities are translated at the balance day rate.

Derivatives

Interest-rate derivatives are financial assets or liabilities which are valued at fair value, with value-changes recorded in the income statement. In order to manage exposure to fluctuations in the market interest rate according to the finance policy, Castellum has entered 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. They are subsequently valued at fair value with value-changes in the income statement.

Changes in value can be realized as well as unrealized. Realized changes in value refer to redeemed interest-rate derivative contracts and constitute 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 period for the interest-rate derivatives that Castellum held at the end of the period. Changes in value are calculated based on valuation at the end of the period, compared to the valuation in the previous year. They can also refer to 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 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.

Financing of foreign investments can be achieved by raising loans in the functional currency of the company, and by entering into currency derivatives. Castellum apply hedge accounting of net investment in foreign operations in cases where currency derivatives are used. They are initially reported in the balance sheet at cost on trade date, and thereafter 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.

The valuation of derivatives at fair value is adjusted for counterparty risk, i.e. CVA and DVA.

Shareholders' equity

Repurchased shares

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

Dividends

Dividends are accounted for as a deduction of shareholders' equity, after decision by the Annual General Meeting (AGM). Anticipated dividend is accounted for as a financial income by the recipient.

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.

Provisions

Provisions are liabilities which are uncertain regarding timing or amount. A provision is recognized when there are contractual obligations, court order or other legal grounds likely to involve future payments. The amounts are continuously reassessed. Liabilities due in more than one year are estimated using discounting.

Definition of segments

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 and no distribution of common costs, assets or liabilities is made between the regions.

Cash flow statement

The cash flow statement has been prepared according to the indirect method. Net profit or loss is adjusted for effects of non-cash transactions during the period as well as income or costs associated with the cash flow from investment or financing activities.

Differences in accounting principles between the Group and the parent company

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 financial 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 presented 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. Previous write-down no longer justified are reversed.

Contingent liabilities

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

New accounting rules and regulations

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

New standards that came into force in 2015

The new standards that came into force in 2015 have not had any impact on Castellum's financial reporting.

New standards and interpretations that come into force in 2016

On December 18, 2015, the EU approved an amendment to IAS 1 Presentation of Financial Statements, effective January 1, 2016. The changes provide clearer guidance on materiality, aggregation and disaggregation of items, structure of the notes as well as information on accounting principles. The changes are not expected to have any material impact on Castellum. In addition, a package of minor changes, referred-to as annual update, was made regarding several recommendations. One of these – IAS 34 Interim Financial Reporting – may have consequences for Castellum. The changes focus more on the design of interim reports than on the content itself and became effective January 1, 2016. CASTELLUM ANNUAL REPORT 2015 DIRECTORS' REPORT FINANCIAL REPORTS

Note 2 Segment reporting

The Group's reporting 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 and Linköping).

The operational segments are identified by geographical field 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.

Reporting segment	Greater Gothenburg		Öresund Region		Stockholm	Greater		Mälardalen	Eastern Götaland			Unallocated items	Group	The Castellum
	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
Rental income, external	1,091	1,050	651	673	703	637	603	556	251	402	–	–	3,299	3 318
Property costs	– 305	– 294	– 244	– 257	– 222	– 207	– 208	– 193	– 94	– 145	–	–	– 1,074 – 1 096
Net operating income	786	756	407	416	480	430	395	363	157	257	–	–	2,225	2 222
Central administration	– 14	– 14	– 8	– 8	– 8	– 7	– 8	– 8	– 7	– 8	– 69	– 63	– 113	– 108
Results from joint venture	–	–	–	–	–	–	–	–	21	–	–	–	21	–
- of which income from property management	–	–	–	–	–	–	–	–	23	–	–	–	23	–
Interest income	11	12	26	16	11	6	3	3	8	3	-55	–37	4	3
Interest costs	-226	– 230	- 126	– 146	- 140	– 130	– 129	– 123	– 48	– 86	64	48	– 606	– 667
Income from prop. mgmt. incl results JV	557	524	300	278	343	299	260	235	131	166	– 60	– 52	1,531	1 450
- of which income from property management	557	524	300	278	343	299	260	235	133	166	– 60	– 52	1,533	1450
Change in value properties	488	250	137	–147	732	290	356	68	124	–117	–	–	1,837	344
Change in value derivatives	–	–	–	–	–	–	–	–	–	–	216	– 660	216	– 660
Income before tax	1,045	774	436	131	1,076	589	616	303	255	49	156	– 712	3,584	1 134
Tax income	–	–	–	74	–	–	–	–	–	186	–	– 271	–	– 11
Tax cost	– 220	– 145	– 96	–	– 164	– 127	– 137	– 66	– 51	–	– 35	426	– 703	88
Net income for the year	825	629	340	205	912	462	479	237	204	235	121	– 557	2 881	1 211
Investment properties	14,661	13,412	7,806	7,180	8,607	7,804	7,689	6,521	3,055	2,682	–	–	41,818	37 599
- of which investments this year	841	1,275	531	248	1,067	361	804	393	280	248	–	–	3,523	2 525
Share in joint venture	–	–	–	–	–	–	–	–	526	–	–	–	526	–
Current assets	550	476	919	1,000	286	206	150	125	296	377	-1,893	–1,695	308	489
Total assets	15,211	13,888	8,726	8,180	8,893	8,010	7,839	6,646	3,876	3,059		-1,893 – 1,695	42,652	38 088
Shareholders' equity	6,011	5,314	3,374	3,229	4,061	3,196	2,658	2,256	1,606	1,524	-1,942	– 1,870	15,768	13 649
Deferred tax liability	1,627	1,420	832	763	921	774	734	586	262	223	- 77	– 154	4,299	3 612
Other provisions	–	–	–	3	–	–	–	–	14	20	–	–	14	23
Interest rate derivates	–	–	–	–	–	–	–	–	–	–	1,117	1,357	1,117	1 357
Interest-bearing liabilities	7,234	6,704	4,210	3,985	3,656	3,720	4,269	3,639	1,883	1,227	– 856	– 829	20,396	18,446
Non-interest-bearing liabilities	339	450	310	200	253	320	179	165	112	65	– 135	– 199	1,058	1,001
Total shareholders' equity & liabilities	15,211	13,888	8,726	8,180	8,893	8,010	7,839	6,646	3,876		3,059 – 1,893	– 1,695	42,652	38,088

Of the Groups rental income SEKm 83 (41) refers to customers located in Denmark and SEKm 954 (530) refers to investment properties located in Denmark.

Note 3 Rental income

Rental value

Group rental income was SEKm 3,299 (3,318). 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 1% (1%) in comparable portfolio compared with previous year.

	Office/Retail		Warehouse/Industrial		Total
Rental value, SEK/sq.m.	2015	2014	2015	2014	2015	2014
Greater Gothenburg	1,388	1,330	759	766	1,021	1,003
Öresund region	1,316	1,334	757	752	1,089	1,078
Greater Stockholm	1,453	1,367	1,029	998	1,240	1,199
Mälardalen	1,220	1,178	767	746	1,084	1,040
Eastern Götaland	1,302	1,247	528	442	1,145	1,022
Total	1,332	1,295	804	791	1,095	1,064

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 inflation 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 2016 is that a majority of the leases maturing were already renegotiated in 2015 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 3.4 years (3.3).

		Lease value,	Percentage
Lease maturity structure	No. of leases	SEKm	of value
Commercial, term
2016	1,182	310	10%
2017	1,284	687	23%
2018	954	621	20%
2019	588	564	19%
2020	201	242	8%
2021+	244	617	20%
Total commercial	4,453	3,041	100%
Residential	178	16
Parking spaces and other	2,056	37
Total	6,687	3,094

Economic occupancy rate

Castellum's average economic occupancy rate during 2015 was 90.3% (88.7%). It was 90.2% (88.2%) for office and retail properties and 90.5% (89.7%) for warehouse and industrial properties. Total annual rental value for vacant premises during the year amounts to approx. SEKm 392 (417).

Rental income for the period includes a lump sum of SEKm 8 (10) as a result of early termination of leases.

Gross leasing, i.e. the annual value of total leasing, during the year was SEKm 316 (304), of which SEKm 55 (55) related to leasing of new constructions, extensions and reconstructions. Notices of termination amounted to SEKm 298 (246), of which bankruptcies were SEKm 11 (12). SEKm 18 (36) related to notices of termination with more than 18 months left of the contract. Hence net leasing for the year was SEKm 18 (58). The time difference between reported net leasing and the effect in income is estimated to be 9–18 months.

Economic		Office/Retail		Warehouse/Industrial	Total
occupancy rate	2015	2014	2015	2014	2015	2014
Greater Gothenburg	93.1%	91.6%	91.5%		91.7% 92.4%	91.6%
Öresund region	84.3%	84.6%	88.3%	86.8% 85.4%		85.3%
Greater Stockholm	89.7%	83.5%	91.7%	88.6% 90.5%		85.4%
Mälardalen	90.8%	91.5%	88.7%	88.4% 90.4%		90.8%
Eastern Götaland	94.6%	89.0%	85.1%	92.0%	93.7%	89.3%
Total	90.2%	88.2%	90.5%	89.7% 90.3%		88.7%

Risk exposure and credit risk

Castellum's lease portfolio has a good risk exposure. The Group has approx. 4,500 commercial leases and 200 residential leases and their distribution in terms of size is presented in the table below. The single largest lease as well as the single largest customer accounts for approx. 2% of the Group's total rental income, meaning that Castellum´s exposure to a single customers credit risk is very low.

	No. of		Lease value,
Lease size, SEKm	leases	Share	SEKm	Share
Commercial
< 0.25	2,277	34%	202	7%
0.25-0.5	791	12%	286	9%
0.5-1.0	648	10%	457	15%
1.0-3.0	529	8%	895	29%
> 3.0	208	3%	1,201	39%
Total commercial	4,453	67%	3,041	98%
Residental	178	2%	16	1%
Parking space and other	2,056	31%	37	1%
Total	6,687	100%	3,094	100%

Commercial leases are distributed between various business sectors as below.

Commercial leases distributed by sector (GICS-code)	No. of leases	Lease value, SEKm	Share
Energy (10)	63	43	1%
Materials (15)	82	71	2%
Capital goods (2010)	554	434	14%
Commercial Services & Supplies (2020)	1,525	598	20%
Transportation (2030)	97	94	3%
Retailing (2550)	387	320	11%
Other Consumer Durables and Services (2510-2540)	521	474	16%
Consumer Staples (30)	103	131	4%
Health Care (35)	228	207	7%
Finance and Real Estate (40)	140	70	2%
Software and Services (4510)	208	127	4%
Technology Hardware and Equipment (4520)	128	130	4%
Telecommunication Services (50)	81	16	1%
Utilities (55)	26	4	0%
Public sector, etc.	310	322	11%
Total	4,453	3,041	100%

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

	Group		Parent Company
Future rental income for existing leases	2015	2014	2015	2014
Contracted rental income year 1
Commercial leases	3,120	3,005	–	–
Residential	5	4	–	–
Contracted rental income between 2 and 5 years	6,293	5,976	–	–
Contracted rental income after more than 5 years	1,477	1,690	–	–
Total	10,895	10,675	–	–

Rent receivables

Rents are invoiced and paid in advance which means that all the Group's rental receivables of SEKm 7 (13) are overdue.

Parent company

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

Note 4 Property costs

Property costs in 2015 was SEKm 1,074 (1,096), equivalent to SEK 316/sq.m. (307). The costs include 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

Operating expenses include costs as electricity, heating, water, facilities management, cleaning, insurance, rent losses and property-specific marketing costs. Most operating expenses are recharged 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 for 2015 were SEKm 507 (542), equivalent to SEK 149/sq.m. (146). Operating expenses, which are considered to be at a normal level for the business, are weather dependent which means that they vary between years and seasons. Energy consumption for heating during the period has been calculated to 88% (86%) of a normal year according to the degree day statistics. Operating expenses includes rent losses of SEKm 6 (9) corresponding to 0.2% of rental income.

Maintenance

Maintenance costs are ongoing measures to maintain the property's standard and technical systems. The maintenance costs were SEKm 133 (136), equivalent to SEK 39/sq.m. (37).

Ground rent

Ground rent, including leasing fees, for 2015 totalled SEKm 27 (27), of which approx. half the amount relates to Greater Stockholm. Ground rent is the annual fee paid to the municipality by the owner of a building on land owned by the municipality. The ground rent is currently calculated in such a way that the municipality receives a fair real interest rate based on the estimated market value of the site. Site leasehold is spread over time and is mostly renegotiated at intervals of 10 to 20 years. At year-end 2015, Castellum had 81 properties with site leasehold. Existing site leasehold agreements mature relatively evenly over the next 60 years. When notice is given for a site leasehold the site owner (the municipality) is, in most cases, to compensate Castellum for buildings etc. There are, however, a few agreements where the municipality can demand that the land be restored. CASTELLUM ANNUAL REPORT 2015 DIRECTORS' REPORTFINANCIAL REPORTS

	Group		Parent Company
Future contracted ground rents	2015	2014	2015	2014
Contracted ground rents year 1	18	23	–	–
Contracted ground rents between 2 and 5 years	71	89	–	–
Contracted ground rents after more than 5 years	325	600	–	–
Total	414	712	–	–

Property tax

The Group's property tax was SEKm 172 (170), equivalent to SEK 50 sq.m. (48). Property tax is a state tax based on the property's tax assessment value. The tax rate for 2015 was 1.0% of the tax assessment value for office/retail properties and 0.5% for warehouse/industrial.

Leasing and property management

The Group's leasing and property management costs for 2015 were SEKm 235 (221), equivalent to SEK 72/sq.m. (68). Leasing and property management are indirect costs for ongoing property management, comprising the costs of leasing operations, rent negotiation, lease administration, rent debiting and collecting, accounting and project administration costs as well as depreciation on equipment in subsidiaries. Of the costs SEKm 134 (131) refers to employee benefits and SEKm 10 (10) depreciation on equipment.

Summary property costs

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

Property costs	Office/Retail		Warehouse/industrial		Totalt
SEK/sq.m.	2015	2014	2015	2014	2015	2014
Operating expenses	181	177	109	109	149	146
Maintenance	49	44	27	29	39	37
Ground rent	5	9	7	7	6	8
Property tax	72	69	23	22	50	48
Direct property costs	307	299	166	167	244	239
Leasing/property administration	–	–	–	–	72	68
Total	307	299	166	167	316	307

Note 5 Central Administrative Expenses

Central administrative expenses include costs of portfolio management, company administration and costs of maintaining the Stock Exchange listing. This involves all costs of Castellum AB, such as Group management, treasury, IT, human relations, investor relations, annual report, audit, and depreciation on equipment, etc. At subsidiary level, the figures include, costs for MD and financial manager as well as costs of preparing annual reports, audit, etc. Of the costs, excl. the incentive plan described below, SEKm 66 (71) refers to employee benefits and SEKm 2 (2) to depreciation on equipment.

Central administrative expenses also include costs relating to a profit and share pricerelated incentive plan for senior management to the order of SEKm 11 (15).

Remuneration to auditors

	Group		Parent company
Remuneration to auditors	2015	2014	2015	2014
Audit assignment	2	2	1	1
Audit in addition to the audit assignment	0	0	0	0
Tax consulting	0	0	0	0
Other consulting	0	0	0	0
Total	2	2	1	1

Of the Group's total remuneration to auditors of SEKk 2,474 (2,284), SEKk 2,324 (2,134) refers to Deloitte and SEKk 150 (150) refers to EY.

Note 6 Interest and Financial Income

	Group		Parent company
	2015	2014	2015	2014
Interest income	4	3	1	1
Received group contributions, subsidiaries	–	–	185	480
Anticipated dividend, subsidiaries	–	–	630	417
Interest income, subsidiaries	–	–	657	688
Other financial income	0	0	0	0
Total	4	3	1,473	1,586

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

Note 7 Interest and Financial Costs

		Group		Parent company
	2015	2014	2015	2014
Interest costs	606	664	591	637
Interest costs, subsidiaries	–	–	56	39
Other financial costs	0	3	2	2
Total	606	667	649	678

Net financial items were SEKm –602 (–664). During the year interest costs of SEKm 8 (17) were capitalized as investments in the real estate portfolio where an average interest rate level of 3.0% (3.3%) has been used.

Of the Group's interest costs, SEKm 254 are related to liabilities valued to accrued acquisition value. Corresponding value for the parent company is SEKm 294. Remaining interest costs refers to interest attributable to Castellums interest derivatives.

Note 8 Changes in value

Investments properties

As in earlier years, the Swedish real estate market in 2015 was characterized by high activity and strong demand, resulting in lower required yield and consequently, higher property prices. During the year, the transaction volume amounted to SEK 145 billion, which is an historically high level – even though last year had a turnover totalling as much as SEK 160 billion. There was a strong interest for office and retail properties as well as for warehouse and logistics properties, and commercial real estate accounted for a total of approx. 77% (76%) of the transaction volume. Foreign buyers accounted for 27% (17%) of the acquisition volume, and this was noticeable for several major transactions concerning office, retail and logistics.

The market's required yield was reduced by an average 0.25 percentage points in internal valuations since year-end, to reflect the increase in prices observed in the Swedish real estate market. The change in value during the year amounted to SEKm 1,837 (344), corresponding to 4.6%. The increase in value consisted mainly of: SEKm 255 attributable to acquisitions, SEKm 203 attributable to project profits and SEKm 1,331 primarily due to reduced yield requirements. In addition, property sales resulted in a value change of SEKm 48. Net sales price amounted to SEKm 1,140 after reduction for assessed deferred tax and transaction costs totalling SEKm 57. Hence the underlying property value, which amounted to SEKm 1,197, exceeded the last valuation of SEKm 1,092 by SEKm 105. As each property is valued individually, the portfolio premium that can be noted in the real estate market was not taken into account.

Total value growth net, including this years change, over the past 10 years have been 1.1% per year which is in line with inflation.

Derivatives

Castellum uses 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 surplus or sub value in the interest rate derivatives where the non cash-flow changes in value are reported in the income statement. Castellum also uses derivatives in order to hedge currency fluctuation in its investment in Denmark. For currency derivatives, a surplus or sub-value occurs if the agreed exchange rate deviates from the current exchange rate, where the effective portion of value changes is accounted for in other total income.

The value of the interest derivatives portfolio has changed by SEKm 220 (657), mainly due to changes in market long-term interest rates. The value of Castellum's currency derivatives has during the year changed by SEKm 20 (–17) where the effective portion of the value changes of SEKm 24 (–14) is accounted for in other total net income.

Note 9 Income taxes

The swedish income tax for limited liability companies is 22%. In the income statement, 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, to use direct tax deductions for certain reconstructions of the properties, which are capitalized in the accounts, and to utilize existing tax loss carry forwards.

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

Swedish accounting legislation does not permit the presentation of properties at fair value in legal entities, meaning that changes in property values only occurs at Group level and thus not affect taxation. Some financial instruments, such as interest rate swaps, might be recorded at fair value at entity level. In Castellum negative value changes on such instruments are a tax deductible item, while changes up to the acquisition cost of the instruments is a taxable income.

As shown in the table below, taxable income for 2015 is negligible, since Castellum uses the above mentioned depreciation for tax purposes and tax deductions for certain reconstructions while property sales mainly were made in the form of tax-free share transfers. Current paid tax occurs because a few subsidiaries are not allowed to make fiscal group contributions.

		Basis 2015		Basis 2014
	Current	Defered	Current	Defered
Tax calculation for the Group	tax	tax	tax	tax
Income from property management	1,533		1,450
D:o attributable to joint venture	– 23		–
Deductions for tax purposes
depreciation	– 741	741	– 718	718
reconstructions	– 494	494	– 322	322
Other tax allowances	– 39	6	24	37
Taxable income from property management	236	1,241	434	1,077
Properties sold	3	– 293	6	– 1,695
Changes in value on properties	–	1,789	–	488
Changes in value on interest rate derivatives	216	–	– 660	–
Taxable income before tax loss carry forwards	455	2,737	– 220	– 130
Tax loss carry forwards, opening balance	– 1,193	– 1,193	– 921	921
Tax loss carry forwards, closing balance	809	– 809	1,193	– 1,193
Taxable income	71	3,121	52	– 402
According to statement of
comprehensive income	– 16	– 687	– 11	88

Tax loss carry forwards consist of prior year's tax losses. The losses, which are not restricted in time, are used to offset future taxable profits. Remaining tax loss carry forwards are estimated to SEKm 809.

Total tax may differ from nominal tax due to non-taxable/tax-deductible income/costs or as an effect of other tax adjustments. Total tax cost in Castellum's income statement is less than nominal tax. The effective tax on income from property management, without consideration of tax loss carry forwards, can be calculated to 3%.

	Group		Parent company
Tax cost/income	2015	2014	2015	2014
Income before tax	3,584	1,134	971	185
Tax according to current tax rate	– 788	– 249	– 214	– 41
Tax effects due to:
non-taxable dividend	–	–	138	92
taxable result in joint ventures	6	–	–	–
non-taxable indirect sale of property	64	340	–	–
other tax adjustments	15	– 14	–	–
Tax according to income statement	– 703	77	– 76	51

Note 10 Personnel and Board of Directors

Numer of employees	Group		Parent company
	2015	2014	2015	2014
Average number of employees	299	295	24	23
of which women	113	116	14	11
of which Denmark (of which women)	4 (1)	3 (1)	–	–

Salaries, remuneration and benefits

During 2015, the parent company had 7 (7) board members, of which 3 (3) are women, while the total number of board members in the Group's subsidiaries were 21 (21), of which 8 (9) are women. The Group, as well as the parent company, have 10 (10) senior executives, of which 3 (3) are women. The total number of senior executives in the subsidiaries' managerial bodies and the senior executives of the Group were 38 (34), of which 12 (13) are women.

	Group		Parent company
	2015	2014	2015	2014
Salaries, remuneration and benefits
Chairman of the Board	0.7	0.6	0.7	0.6
Other Board members	1.9	1.7	1.9	1.7
Chief Executive Officer
Fixed salary	3.6	3.4	3.6	3.4
Variable remuneration	1.6	2.7	1.6	2.7
Benefits	0.1	0.1	0.1	0.1
Other senior executives Group: 9 (9), Parent company: 3 (2)
Fixed salary	12.2	13.4	3.5	4.9
Variable remuneration	6.5	8.9	1.7	2.9
Benefits	0.6	0.7	0.2	0.2
Other employees	144.0	140.6	12.4	12.3
Total	171.2	172.1	25.7	28.8
Contractual pensions costs
Chief Executive Officer	1,1	1,0	1,1	1,0
Other senior executives (9 vs. 3)	3,7	4,3	1,1	1,5
Other employees	18,2	15,7	2,2	1,6
Total	23,0	21,0	4,3	4,1
Statutory social costs incl. special employer's contributions
Chairman of the Board	0,2	0,2	0,2	0,2
Other Board members	0,3	0,6	0,3	0,6
Chief Executive Officer	1,9	2,0	1,9	2,0
Other senior executives (9 vs. 3)	7,1	8,1	2,0	2,9
Other employees	49,7	50,5	4,4	4,2
Total	59,2	61,5	8,8	9,9
Grand total	253,4	254,6	38,9	42,8

Board remuneration

Board remuneration was decided by the Annual General Meeting 2015 to SEKk 2,440, of which SEKk 640 to the Chairman of the Board and SEKk 300 to each other Board member. Additional remuneration for committee work is totally SEKk 210. The amounts applies from the AGM 19-03-2015 to the AGM 17-03-2016.

Executive management

During the autumn the executive management has changed and at the yearend the executive management group consists of the Chief Executive Officer, the Chief Financial Officer, the Head of Business Development, the Chief Investment Officer and the six Managing Directors of the subsidiary companies.

Remuneration and benefits

Remuneration and benefits for the executive management are prepared by the remuneration committee and decided by the Board of Directors. The remuneration comprises a fixed 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, have an incentive plan that comprises two parts:

One profit-based part is based on income growth from property management compared to the previous year, as well as an overall estimation of development for certain individual factors. Full outcome requires that income growth from property management per share reach 10% per year. When growth is in the range 0–10%, a linear calculation of the incentive is made. The profit-based portion is paid out yearly as salary after the year-end closing and can total no more than six months' salary per year. The outcome for 2015 was 67%, representing a cost of SEKm 7.1 including social costs. The plan ended at the end of 2015.
One share-price-based part based on the total return on the Castellum share during a three-year period, both in nominal figures and compared with index for real-estate shares in Sweden, the Eurozone and Great Britain. For full outcome of the incentive plan, the total return must be at least 50% during the period and the total return has to exceed index development by at least 5 percentage points during the period. When growth is in the ranges 0–50% and 0–5%-points respectively, a linear calculation of the incentive is made. Any payments due are paid as salary after the measurement period of June 2014-May 2017. During the three-year period, the share-price-based part may total no more than one-and-a-half-years' salary, equal to a Castellum cost of SEKm 31, including social costs. As of December 2015, the outcome was 29%, representing a cost of SEKm 4.5 including social costs. Final reading and set-offs will occur in May 2017.

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 defined 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 defined 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 6 months regarding the Managing Director and 12 months for any other member of the executive management of the company. When given by the Managing Director or any other member of the executive management of the company, the period of notice is six months. During the period of notice, salary and other benefits are paid, with deduction of salary and remuneration deriving from another employment or activity. No deduction will occur for the Managing Director. At the company's dismissal of the Managing Director, a severance pay of 12 months' fixed salary is paid which shall not be reduced as a result of other income that the Managing Director receives.

Pensions for other employees

Other employees in Castellum have defined 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 defined payments and subsequent return will be received as pension. However, there is an exception for about 20 employees within the Castellum Group who instead have defined 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 official at the time of signing of this annual report and can therefore not be reported. Alecta's latest official consolidation level was as of September 2015 148% (December 2014: 143%). The collective consolidation level is made up by 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. CASTELLUM ANNUAL REPORT 2015 DIRECTORS' REPORT FINANCIAL REPORTS

Absence due to illness

Absence due to illness for the year was 3% (3%), of which 1.2%-unit (0.4%) was for long-term sick leave. Absences due to illness for men and women were 2% (2%) and 3% (3%) respectively. Absences due to illness were 2% (1%) for the age group 29 years and younger, 2% (2%) for the age group 30-49 years and 3% (4%) for the age group 50 years or older. Absence due to illness for the parent company was 2% (3%), of which 1%-unit (0%) was for long-term sick leave.

Note 11 Investment Properties

		Group
Schedule of the changes during the year	2015	2014
Opening balance	37,599	37,752
New construction, extension and reconstruction	1,232	1,378
of which capitalized interest costs	8	17
Acquisitions	2,321	1,147
Sales	– 1,092	– 3,198
Unrealized changes in value	1,789	488
Currency transalation	– 31	32
Closing balance	41,818	37,599
Schedule of tax assessment value
Buildings	15,445	14,699
Land	5,423	5,250
Total tax assessment value	20,868	19,949
Rental income from investment properties	3,299	3,318
Property costs for investment properties	1,074	1,096

The year's change per category is shown in the table below.

Change by category		Office/Retail	Warehouse/industrial			Project/Land
	2015	2014	2015	2014	2015	2014
Opening balance		24,584 24,809	11,411		11,378 1,604 1,565
Category changes	443	362	– 118		179 – 325	– 541
New construction, exten sion and reconstruction	739	757	267	332	226	289
Acquisitions	1,926	750	221	232	174	165
Sales		-880 – 2,403	– 65	– 770	–195	– 25
Unrealized changes in value	1,346	285	450	122	41	81
Currency translation	–24	24	–7	8	–	–
Closing balance		28,134 24,584	12,159		11,481 1,525 1,534

The Parent company does not own any investment properties.

Investments during the year

During 2015, Castellum investmented totally SEKm 3,553 (2,525), of which SEKm 1,232 (1,378) were new construction, extensions and reconstructions and SEKm 2,321 (1,147) were acquisitions. Of total investments SEKm 1,077 related to Greater Stockholm, SEKm 847 to Greater Gothenburg, SEKm 811 to Mälardalen, SEKm 533 to the Öresund Region and SEKm 285 to Eastern Götaland.

Significant obligations

Castellum has entered into an agreement for the acquisition of two newly built office properties: one in Hyllie, Malmö, for SEKm 327 with access estimated for April 2016; one in Hagastaden, Stockholm, for SEK 1.6 billion, with estimated access in February 2017. These properties are not reportedon until time of access because the agreements are conditioned by – for example – completion. Moreover, Castellum has commitments to complete initiated projects where the remaining investment volume amounts to approx. SEKm 1,300, in addition to amounts reported in the balance sheet.

Larger ongoing investments

Property	Investment, SEKm	Remainig, SEKm	To be completed
Lindholmen 30:5, Göteborg	265	170	Q 1 2017
Drottningparken, Örebro	100	40	Q 3 2016
Majorna 163:1, Göteborg	88	77	Q 4 2016
Verkstaden 14, Västerås	84	17	Q 1 2016
Varpen 10, Huddinge	66	55	Q 4 2016

Valuation model

According to accepted theory, the value of an asset is the net present value of future cash flows that the asset is expected to generate. This section aims to describe and illustrate Castellum's cash flow-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 valuation is thus under IFRS 13, level 3.

The required yield and the assumption regarding future real growth are crucial 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

Assumptions of cash flow

In assessing a property's future earnings capacity we took into account an assumed level of inflation 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,

year 1	Office/Retail			Warehouse/industrial
	31-12-2015	31-12-2014	31-12-2015	31-12-2014
Rental value SEK/sq.m,	1 347	1 350	813	799
Vacancy	9%	10%	8%	9%
Direct property cost SEK/sq.m.	314	316	72	180
Property management SEK/sq.m	35	35	25	25

Assumptions of required yield

The required yield on equity is different for each property and based on assumptions regarding real interest rate, inflation 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, added to the fact that the asset is affected by the general economic situation. The individual risk is specific to each property and comprises a complex weighted assessment which includes: property category; the town/city in which the property is located; the property location within the town/city with reference to the property category; whether the property has the right design, is appropriate and makes efficient use of space. Further considerations: the property's technical standard with regard to such criteria as choice of materials, the quality of public installations, furnishing and equipment on the premises and in apartments; as well as the nature of the lease agreements with regard to such issues as length, size and number of agreements. Properties owned by site-leasehold rights, where Castellum has a reset obligation under contractual agreement, are assigned an additional individual risk premium of 1.0%.

In order to calculate the required yield on total capital, an operating assumption of 5% has been made about the cost of borrowed capital. The required yield of borrowed capital comprises the real interest rate, plus inflation. 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 weighing 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 flows; the residual value is discounted by calculating the return on total capital minus growth. Growth is set as equalling inflation, in order not to assume perpetual real growth.

Assumptions per property category		Office/Retail Warehouse/industrial
	31-12-2015	31-12-2014	31-12-2015	31-12-2014
Real interest rate	1.5%	3.0%	1.5%	3.0%
Inflation	1.5%	1.5%	1.5%	1.5%
Risk		5.8%-12.9% 4.5%-12.5% 8.4%-13.2% 6.9%-14.0%
Return on equity		8.8%-15.9% 9.0%-17.0% 11.4%-16.2% 11.4%-18.5%
Interest rate	5.0%	5.5%	5.0%	5.5%
Loan to value ratio	35%	65%	45%	55%
Return on total capital		6.3%-8.8% 6.7%-9.5% 7.9%-10.0%		8.1%-11.3%
Weighted d:o, discounted factor year 1-9	7.4%	7.8%	8.6%	8.9%
Weighted d:o, discounted factor residual value*	5.9%	6.3%	7.1%	7.4%

* required yield on total capital minus growth equal to inflation

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 average valuation yield for Castellum's real estate portfolio, excluding development projects and undeveloped land, can be calculated to 6.5% (6.9%). Contracted rental levels are considered to be in line with the market levels.

Average valuation yield, SEKm	2015	2014
Net operating income, properties according to income statement	2,225	2,222
Reversed leasing and property administration	235	221
Net operating income, ongoing development projects	– 32	– 33
Properties acquired/completed as if owned the whole year	70	69
Properties sold	– 55	– 193
Net operating income excl. leasing and property admin. for pro
perties as if owned during the whole year, excl. projects and land	2,243	2,286
Adjusted for:
Index adjustments 2016, 1% (1%)	35	25
Real occupancy rate, 94% at the lowest	216	251
Property administration, 30 SEK/sq.m.	– 100	– 99
Normalized net operating income	2,594	2,463
Valuation excl. building rights of SEKm 469 (574)	39,824	35,506
Average valuation yield	6.5%	6.9%

Development projects and building rights

Development projects are valued using the same principle, but with reduction 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 1,700 per sq.m. (1,500).

The value of the real estate portfolio

The internal valuation indicates a fair value of SEKm 41,818 (37,599), corresponding to a change in value of 4.5% (0.9%). Of the value approx. SEKm 2,984 are properties hold through site leasehold rights, with a rental income of SEKm 304.

The table below shows the fair value distributed by property category and region.

Property value,	Office/	Warehouse/	Projects/
SEKm 31-12-2015	Retail	industrial	land	Total
Greater Gothenburg	8,624	5,580	457	14,661
Öresund Region	5,899	1,863	44	7,806
Greater Stockholm	4,833	3,187	587	8,607
Mälardalen	5,975	1,319	395	7,689
Eastern Götaland	2,803	210	42	3,055
Total	28,134	12,159	1,525	41,818

Uncertainty range and sensitivity analysis

A property's market value can only be confirmed 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 +/– 2,091 SEKm which corressponds to SEKm 39,727–43,909.

Sensitivity analysis +/–1% (unit)	Effect on value, SEKm
		Warehouse/indu
	Office/Retail	strial
Rental value SEK/sq.m.	+ 397/– 397	+ 168/– 168
Economic occupancy rate	+ 397/– 397	+ 168/– 168
Property costs SEK/sq.m.	– 96/+ 96	– 39/+ 39
	– 3,694/+
Required yield = discount rate	4,642	– 1,359/+ 1,715

The sensitivity analysis shown above illustrates how a +/- 1%-unit change in growth assumptions in future cash flow 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 flow and required yield.

External valuation

Note 12 Equipment

		Group		Parent company
	2015	2014	2015	2014
Opening acquisition value	93	84	12	10
Acquisitions	10	11	1	2
Sales/retirement of assets	–5	–2	0	0
Closing acquisition value	98	93	13	12
Opening depreciation	– 65	– 53	– 8	– 6
Sales/retirement of assets	3	0	0	0
Depreciation for the year	– 12	– 12	– 2	– 2
Closing depreciation	– 74	– 65	– 10	– 8
Book value	24	28	3	4

Note 13 Parts in Joint Venture

					Group
Joint venture	Corporate identity No.	Registered Office	Share	31-12-2015	31-12-2014
CORHEI Fastighets AB 556050-0380 Norrköping			50%	526	-
Total				526	-

			FINANCIAL REPORTS
location of the properties. Forum's valuation of the selected properties amoun ted to SEKm 23,581, within an uncertainty range of +/- 5-10% on property le vel, depending on each property's category and location. Castellum's valuation of the same properties totalled SEKm 23,539, i. e., a net deviation of SEKm +42, corresponding to 0%. The gross deviation was SEKm +696 and SEKm –654 respectively, with an average deviation of 6%.
In addition, NAI Svefa made a desk-top valuation of 41 properties corre sponding in value to 23% of the portfolio. Forum's valuation of the selected properties amounted to SEKm 9,324. Castellum's valuation of the same pro perties amounted to SEKm 9,742, i.e. a net deviation of SEKm –418 corres ponding to –4%. Forum's valuation of the same properties amounted to SEKm 9,774, i.e. en net deviation of SEKm +32 corresponding to 0% 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%.
Note 12 Equipment
	Group 2015	2014	Parent company 2015	2014
Opening acquisition value	93	84	12	10
Acquisitions	10	11	1	2
Sales/retirement of assets	–5	–2	0	0
Closing acquisition value	98	93	13	12
Opening depreciation	– 65	– 53	– 8	– 6
Sales/retirement of assets	3	0	0	0
Depreciation for the year	– 12	– 12	– 2	– 2
Closing depreciation	– 74	– 65	– 10	– 8
Book value	24	28	3	4
Note 13 Parts in Joint Venture
			Group
Joint venture Corporate Registered identity No. Office	Share		31-12-2015	31-12-2014
CORHEI Fastighets AB 556050-0380 Norrköping Total	50%		526 526	- -
with Heimstaden AB (publ) which meant that Castellum, through its Corallen subsidiary, acquired 50% of the real estate management company CORHEI Fastighets AB (previously Ståhls) for SEKm 505. Castellum gained access in late May/early June 2015. Through an option, the agreement provides the opportunity to acquire the remaining 50% at market value, no earlier than 18 months from date of ac cession. Through Group companies, Castellum owns half of CORHEI Fastighets AB, which contributed SEKm 23 (-) to Castellum's income from property mana gement in 2015. At year-end, CORHEI owned 22 properties totalling SEKm 2,030, with a leasable area of 162,000 sq.m. The real estate portfolio consists mainly of office and retail properties and a warehouse property. In terms of value, 63% of the portfolio is in Norrköping and the remaining 37% is located in Linköping. Heimstaden owns the remaining 50%, and has assigned CORHEI's property management and financial management activities to Castellum. Castellum reports results and ownership shares in joint ventures in accor dance with the equity method. Income statement 2015
SEKm				June - Dec 2015
Rental income				96
Property costs				– 42
Central administrative expenses				– 1
Net interest income/expense				– 7
Income from property management				46
Change in value properties				6
Current tax				–
Deferred tax				– 10
Net income				42
- of which Castellum's part of the joint venture (50%) CASTELLUM ANNUAL REPORT 2015 DIRECTORS' REPORT			CASTELLUM ÅRSREDOVISNING 2015	21 109

Balance sheet per 31-12-2015

SEKm	31 Dec 2015
Assets
Investment properties	2,030
Other fixed assets	5
Current receivables	10
Liquid assets	137
Total assets	2 182

Shareholders' equity and liabilities

Total shareholders' equity and liabilities	2,182
Non interest-bearing liabilities	51
Interest-bearing liabilities	1,069
Deferred tax liability	129
Shareholders' equity	933

Value of the portion of the joint venture accounted for 31-12-2015

SEKm	Castellum's part 50%

Shareholders' equity accounted for	467
Net adjustment for goodwill and deferred tax consolidation	59
Part of the joint venture	526

	Parent company
	2015	2014
Opening balance	0	-
Acquisitions	505	-
Part of the Comprehensive Income	21	-
Closing balance	526	-

Note 14 Shareholders' Equity and Net Asset Value

Items in shareholders' equity

The share capital as of December 31, 2015 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 share capital	Date	Number of shares	Par value per share	Share capital, SEK
Formation A-shares	27-10-1993	+500	100.00	+50,000
New share issue, A-shares	27-09-1994	+999,500		100.00 +99,950,000
Share split 50:1		25-03-1997 +49,000,000	2.00	–
IPO	23-05-1997	50,000,000		2.00 100,000,000
New share issue, C-shares	12-07-2000	+7,142,857	2.00	+14,285,714
Redemption, A-shares	12-07-2000	–6,998,323	2.00	–13,996,646
Redemption, C-shares	13-11-2000	–7,142,857	2.00	–14,285,714
Share split 4:1	27-04-2006	129,005,031	0.50	–
Year-end	31-12-2014	172,006,708	0.5	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 also 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 share-holders may only be such that there after the distribution is full coverage for restricted equity in the parent company. Further, distribution of profits may only be made if it is justified 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 financial position in general.

Retained earnings

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

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 financial year 2015 is SEK 4.90 per share, SEKm 804 in total. The amount is recorded as a liability after the annual general meeting has approved the dividend.

Net asset value

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 1,117 and SEKm 4,299 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, while the real deferred tax is substantially lower, due to the possibility so sell properties in a taxefficient way and the time factor. The present assessment is that the discounted real deferred tax liability is equivalent to approx. 5%, meaning that an additional SEKm 3,178 will 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 +/– 1,986 after tax.

Net asset value	SEKm	SEK/share
Equity according to the balance sheet	15,768	96
Reversed
Derivatives according to the balance sheet	1,117	7
Deferred tax according to the balance sheet	4,299	26
Long term net asset value (EPRA NAV)	21,184	129
Deduction
Derivatives as above	– 1,117	– 7
Estimated real liability, deferred tax 5%*	– 1,121	– 6
Actual net asset value (EPRA NNNAV)	18,946	116

Uncertainty range valuation of properties +/– 5% after tax +/– 1,986 +/– 12 * Estimated real deferred tax liability net has been calculated to 5% based on a discount rate of 3%. Further, assessments have been made that tax loss carry forwards are realized in 2 years with a nominal tax of 22%, giving a present value of deferred tax liability of 21%, 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 6%.

Capital structure

Castellum should have a stable capital structure with low financial 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 flow and is not directly related to the net asset value. The objective is an annual growth in cash flow, i.e., income from property management per share, of at least 10%. In order to achieve this objective, net investments of at least 5% of the property value will be made yearly. At the moment, this is equivalent to approx. SEKm 2,000. 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 justified from a business standpoint and when an alternative investment with a higher return can be found.

Note 15 Liabilities

	Group		Parent company
	2015	2014	2015	2014
Non-interest-bearing liabilities due within one year of the balance sheet date	1,058	1,001	115	120
Interest-bearing liabilities due within one year of the balance sheet date	–	–	–	161
1-5 years of the balance sheet date	19,094		17,383 19,860 18,002
5 years after the balance sheet date	1,302	1,063	250	–
Total liabilities excl. deferred tax liability
and derivatives	21,454		19,447 20,225 18,283

During 2016, current interest-bearing liabilities amounting to SEKm 4,866 (3,384) are due for payment. Since they are covered by unutilized long-term credit agreements, they are treated as long-term interest-bearing liabilities.

Note 16 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 21,430 (17,409), which with a tax rate of 22% is equivalent to a tax payment of SEKm 4,715 (3,830). Castellum has deferred tax of SEKm 416 (218) which relates to properties accounted for as asset acquisitions. According to present regulations deferred tax at the time of the accquistion shall not be accounted for in the balance sheet, which is shown in the table below.

The parent company reports a deferred tax asset of SEKm 78 (154) corresponding to 22% of the unutilized tax loss carry forwards of SEKm 354 (698).

Tax loss carry forward

Castellum´s tax loss carry forwards as of December 31, 2015 are estimated to SEKm 809 (1,193). The change is presented in note 9.

Surplus- and sub value of properties for tax purposes

When calculating the tax effect on a sale of all properties in the Group, the book value in the Group of SEKm 41,818 (37,599) must be compared to the residual value for tax purposes in the legal entity, which amounts to SEKm 19,579 (18,997). This means that if all of Castellum's properties were sold, the taxable net profit would exceed the recorded profit in the Group by SEKm 22,239 (18,602).

	2015		2014
Deferred tax liability	Basis	Tax	Basis	Tax
Tax loss carry forwards
Opening balance	1,193	262	921	202
Change of the year in income statement	– 384	– 84	272	60
Closing balance in the balance sheet	809	178	1 193	262
Difference between the properties book and tax basis value
Opening balance		– 18,602 – 4,092 – 18,570		– 4,085
Change of the year in income statement	– 2 735	– 603	129	28
Company acquisitions	– 902	– 198	– 161	– 35
Closing balance	– 22,239 – 4,893 – 18,602			– 4,092
Less, attributable to asset acquisitions
Opening balance	991	218	830	183
Company acquisitions	902	198	161	35
Closing balance	1,893	416	991	218
Closing balance in the balance sheet	– 20,345 – 4,477		– 17,611	– 3,874
Total
Opening balance	– 16,418	– 3,612	– 16,819	– 3,700
Change of the year in income statement	– 3,119	– 687	401	88
Closing balance in the balance sheet	– 19,537 – 4,299		– 16,418	– 3,612
Previous write-downs where tax deductions have been made amount to approx. SEKm 152. These may be reversed in the case of a future increases in value.

Note 17 Other provisions

Other provisions relate to rental guarantees, with a maximum commitment to January 31, 2019, estimated to SEKm 14 (20) and other commitments in connection with the sale of real estate amounting to a maximum of SEKm - (3).

Note 18 Derivatives

Valuation

Castellum uses interest rate derivatives in order to manage the interest rate risk and achieve the desired interest rate maturity structure. This strategy means that there may be changes in value of the interest rate derivatives portfolio from time to time. These value changes occur primarily due to changes in market interest rates. Castellum also uses currency derivatieves to provide financing in foreign currency, which are included in the derivative portfolio market value.

To calculate the market value of derivatives, market rates for each term and, where appropriate, exchange rates, as quoted on the market at the closing date are used. Interest rate swaps are valued by discounting future cash flows to present value while instruments containing options are valued at current repurchase price. When calculating the fair value of derivatives adjustments are made for counterparty risk such as Credit Value Adjustments (CVA) and Debt Value Adjustments (DVA). CVA shows Castelum's risk of experiencing credit loss in the event of counterparty default while DVA shows the opposite. The adjustment is calculated on counterparty level based on expected future credit exposure, risk of default, and recovery rate of exposed credits. As of December 31, 2015, the market value of the interest rate and currency derivatives portfolio amounted to SEKm –1,117 (–1,357) where fair value is established according to level 2, IFRS 13.. CASTELLUM ANNUAL REPORT 2015 DIRECTORS' REPORTFINANCIAL REPORTS

In the balance sheet derivates are accounted for as long-term liabilities since the amount will not be settled in cash. However, a theoretical maturing amount during 2016 can be mathematically calculated to SEKm 323.

Counterparty risk

In order to limit counterparty risk, Castellum's derivative transactions are covered by general agreement with netting clauses (ISDA). This allows Castellum to offset positive and negative market values in the event of default.

	31-12-2015			31-21-2014
	Asset	Liability	Net	Asset	Liability	Net
Interest rate derivatives	8	– 1,132	– 1,124	14	– 1,358	– 1,344
Currency derivatives	13	– 6	7	0	– 13	– 13
Gross value derivatives	21	– 1,138	– 1,117	14	– 1,371	– 1,357
Netting	– 21	21	0	– 14	14	0
Net value derivatives	0	– 1,117	– 1,117	0	– 1,357	– 1,357

Future cash-flow

Future cash-flows attributable to interest rate derivatives consist of interest paid minus interest received as presented below. 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.

Future cash-flow of interest rate derivatives
Year		Interest to pay, SEKm Interest to recieve, SEKm	Net, SEKm
2016	– 389	8	– 381
2017	– 360	1	– 359
2018	– 325	0	– 325
2019	– 282	0	– 282
2020	– 218	0	– 218
2021+	– 326	0	– 326
Total	– 1,900	9	– 1,891

Sensitivity analysis

The table below shows the interest rate derivatives portfolio's nominal net amount and market value as of 31-12-2015 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 Date	Amount, SEKm	Acquisition value, SEKm	Market value, SEKm	Average interest rate	Market value interest +1%-unit	Market value interest -1%-unit
2016	450	–	– 5	1.7%	– 3	– 8
2017	900	–	– 40	2.8%	– 27	– 54
2018	1,100	–	– 89	3.3%	– 62	– 117
2019	1,700	–	– 162	3.0%	– 105	– 213
2020	2,050	–	– 206	2.8%	– 110	– 307
2021+	4,550	–	– 622	3.3%	– 322	– 932
Total	10,750	–	– 1,124	3.3%	– 629	– 1,631

Currency derivatives with a market value of SEKm 7 is not included in the table above, since a change in the market interest rate has an unsignificant effect on the market value.

Note 19 Financial Risk Management

Financing

Real estate is a long-term asset requiring long-term financing allocated between equity and interest-bearing liabilities. From a security perspective, Castellum credits can be divided into the following categories:

Credits pledged by Castellum's receivables from subsidiaries, including mortgages
Credits directly to subsidiaries pledged by property mortgages. In the majority of cases, credits directly to subsidiary have also a guaranteed commitment from the parent company.
Unsecured credits
Issuing of bonds, without pledged security
Issuing of commercial papers, without pledged security

All types of credit agreements contain normal termination terms, and in some cases renegotiation terms for changes in business and delisting. If the lender calls for such renegotiation and the parties cannot agree, the credit agreements have established settlement times for the credit agreement subject to such terms. At the end of the year, utilized credits secured by pledged mortgages added up to SEKm 10,460. In addition to mortgages, the majority of credit agreements include commitments regarding loan-to-value ratio and interest coverage ratio, called financial covenants, stating a loan-tovalue ratio not exceeding 65% and an interest coverage ratio of at least 150%. If the 55% loan-to-value ratio is compromised, some agreements will suffer more expensive financing costs. In all cases, the guarantee to lenders is issued by a comfortable margin to Castellum's capital structure objectives.

Finance policy

Castellum's funding and management of financial risk are conducted in accordance with the finance policy adopted by the Board of Directors. Castellum is to run at a low financial risk with a loan-to-value ratio not exceeding 55% in the long run and an interest coverage ratio of at least 200%. The financial operations in Castellum are to be carried out in such a way that the need for long- and short-term funding and liquidity is ensured. In addition, net interest expenses at each time will be optimized within the given risk authorization. The finance policy outlines overall authorization and how financial risk should be reported and monitored. Financial risks are monitored and reported quarterly to the Board. As part of continuously improving and adapting financial risk management, the Board conducts an annual review of the finance policy.

The parent company holds an internal auditing function, separate from the treasury department, which provides accounting and independent control of financial management and financial risks.

Financial risk management

Castellum carries out financial transactions based on estimates of the Group's overall long-term funding needs, liquidity and chosen interest rate risk. Hence, financial 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 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 fixed interest term. Thereafter, interest-rate derivative transactions are made in order to achieve the desired fixed 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 flows.

Funding risk

Demands for long-term funding make Castellum look for long-term capital in credit agreements in order to limit funding risk. To reach maximum flexibility, bank loans are mainly revolving, i.e. the credits are usually traded within 1–3 months. Short-term revolving loans facilitate amortization at every turnover occasion without any marginal breaking costs or other compensation to lenders. The objective is to minimize 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 regularly re-negotiates and, when needed, enters into new credit agreements or forms of borrowing. At the end of the year, Castellum held binding credit agreements totalling SEKm 30,325 (26,065) of which SEKm 25,141 (22,357) were long-term binding and SEKm 5,184 (3,708) short-term binding. Of utilized long-term credits, SEKm 19,142 (19,357) were long-term binding credit agreements in bank and SEK 5,999 (3,000) were MTN. Of short-term credits, SEKm 1,527 (1,228) were short-term credits in bank, SEKm 500 (1200) MTN, and SEKm 3,157 (1,280) were outstanding commercial papers. At yearend, unutilized credit in long-term credit agreements amounted to SEKm 4,784, after deduction for outstanding commercial papers. Castellum thus has good credit access to enable financing of investments in new constructions, extensions, reconstructions and acquisitions.

During the year, credit agreements totalling SEKm 18,000 were renegotiated and/or extended and an existing overdraft was extended by SEKm 100. In addition, MTNs were issued for a total of SEKm 3,500 and SEKm 1,200 matured within Castellum's MTN program. In December, the scope for commercial papers was expanded to SEKm 5,000.

At year-end, the average duration of Castellum's long-term credit agreements was 3.1 years (3.0).

Credit agreements/-limits	Amount, SEKm	Utilized, SEKm
Long-term credit agreements in bank	19,142	9,492
Short-term credit agreements in bank	1,007	1,007
Liquidity	520	202
Total credit agreements	20,669	10,701
MTN program (SEKm 7,000 facility)	6,499	6,499
Commercial papers (SEKm 5,000 facility)	3,157	3,157
Total	30,325	20,357

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.

Credit maturity structure		Utilized in
	Agreements, SEKm	Bank	MTN/Cert	Total
0-1 year	5,184	1,209	3,657	4,866
1-2 year	1,608	8	1,600	1,608
2-3 year	12,558	4,908	1,550	6,458
3-4 year	8,166	3,516	1,100	4,616
4-5 year	1,507	8	1,499	1,507
> 5 year	1,302	1,052	250	1,302
Totalt	30,325	10,701	9,656	20,357

Unutilized credits in long term credit agreements (more than 1 year)	4,784

Interest rate risk

Changes in market interest rates and credit margins affect net financial items. How quickly, and by how much, largely depends on the chosen fixed interest term. To limit the immediate impact of changes in market interest rates, Castellum has chosen to work with both short and long-term interest rate maturity structures. For the same reason, Castellum has chosen to enter credit agreements, issue commercial papers and MTNs with varying maturities. However, changes in both interest rates and credit margins will always have an impact on net financial items over time.

The interest coverage ratio is the financial measure that describes a company's risk level and resilience to changes in net interest. Castellum has the objective of an interest coverage ratio of at least 200%. For 2015, the interest coverage ratio was 351% (318%). The average interest rate duration per December 31, 2015, was 2.5 years (2.8), the average effective interest rate was 2.9% (3.4%) and the average interest rate for the year was 3.0% (3.3%).

Margins and fees for long-term credit agreements are established with an average duration of 3.1 years (2.6).

Cash-flow effect on income for the next twelve months at an interest rate change of +/- 1% amounts to SEKm -78 and SEKm -30, respectively. Castellum is unable to take full advantage of negative interest rates because of interest rate floors in the credit agreements. Hence, there is a negative outcome, even at a reduction of the interest rate of 1%-point.

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

Interest rate maturity structure
	Loan,	Derivatives,		Average	Average fixed
	SEKm	SEKm	Net, SEKm	interest rate	interest rate term
0-1 year	18,958	– 9,500	9,458	2.9%	0.2 år
1-2 years	350	900	1,250	2.2%	1.4 år
2-3 years	–	1,400	1,400	3.3%	2.4 år
3-4 years	300	1,300	1,600	3.0%	3.7 år
4-5 years	749	2,050	2,799	2.6%	4.5 år
5-10 years	–	3,850	3,850	3.4%	6.7 år
Total	20,357	–	20,357	2.9%	2.5 år

Currency risk

Castellum owns properties in Denmark totalling a value of SEKm 954 (530), which means that the Group is exposed to currency risk. The currency risk primarily occurs when income statement and balance sheet in foreign currency are translated into Swedish currency. In cases where currency derivatives are used, Castellum applies hedge accounting for net investments in foreign operations. The transaction risk in the Group is insignificant and will primarily be managed by matching income and costs.

The impact on financial position due to an appreciation of SEK by 10% in relation to DKK is SEKm +21.

Counterparty risk

Future cash-flow

Future cash-flow loans
Year	Loan, opening balance	Mature	Loan, closing balance	Interest costs, SEKm
2016	20,357	– 3,866	16,491	– 225
2017	16,491	– 1,608	14,883	– 194
2018	14,883	– 7,458	7,425	– 180
2019	7,425	– 4,616	2,809	– 61
2020	2,809	– 1,507	1,302	– 10
2021+	1,302	– 1,302	0	– 22
Total		– 20,357		– 692

Note 20 Accrued Expenses and Prepaid Income

	Group		Parent company
	2015	2014	2015	2014
Pre-paid rents	478	431	–	–
Accrued interest	96	99	96	99
Other	176	157	16	17
Total	750	687	112	116

Note 21 Pledged Assets

	Group		Parent company
	2015	2014	2015	2014
Property mortgages	18,164	18,222	–	–
Long-term receivables, group companies	–	–	15,309	15,200
Total	18,164	18,222	15,309	15,200

Note 22 Contingent Liabilities

	Group		Parent company
	2015	2014	2015	2014
Guaranteed commitments for subsidiaries	–	–	2 150	2 165
Total	–	–	2 150	2 165

Note 23 Participations in Group Companies

Directly owned subsidiaries	Corporate identity No.	Registered Office	Share of capital	Book value
Fastighets AB Brostaden	556002-8952	Stockholm	100%	1,257
Aspholmen Fastigheter AB	556121-9089	Örebro	100%	1,297
Eklandia Fastighets AB	556122-3768	Gothenburg	100%	1,150
Harry Sjögren AB	556051-0561	Mölndal	100%	804
Fastighets AB Corallen	556226-6527	Jönköping	100%	589
Fastighets AB Briggen	556476-7688	Malmö	100%	933
Fastighets AB Regeringsgatan	556571-4051	Gothenburg	100%	0
Total				6,030

Parent company
2015	2014
6,030	5,869
–	161
6,030	6,030

Note 24 Long-term Receivables, Group Companies

		Parent company
	2015	2014
Opening acquisition value	17,093	17,419
New lending to subsidiaries	2,034	– 340
Currency translation foreign operation	– 24	14
Closing balance/book value	19,103	17,093

Note 25 Financial Instruments

											FINANCIAL REPORTS
Counterparty risk						Note 22 Contingent Liabilities
	Counterparty risk refers to the risk that, at any moment, is estimated to exist							Group		Parent company
	that Castellum's counterparties do not fulfil their contractual obligations. Castellum limits counterparty risk by requiring high credit ratings of the							2015	2014	2015	2014
	counterparties. High rating means that no rating agency indicates a rating that is below investment grade. Castellum's counterparties are the major Nordic					Guaranteed commitments for subsidiaries Total		– –	– –	2 150 2 150	2 165 2 165
banks. Future cash-flow	Future cash-flows attributable to liabilities are shown in the table below. The assumption is made that a maturing loan is replaced by a new loan during the term of maturity of the underlying credit agreement and at a Stibor interest rate as listed at year-end.					Normally the parent company is the borrower, but when the property owning company borrows directly, the parent company provides guaranteed commit ments for subsidiaries. Note 23 Participations in Group Companies Directly owned subsidiaries are listed below. Other companies in the Group
		Future cash-flow loans				are included in each respective subsidiary's annual report.
	Loan,		Loan,		Interest costs,		Corporate	Registered		Share of	Book
Year	opening balance	Mature	closing balance		SEKm	Directly owned subsidiaries	identity No.	Office		capital	value
2016 2017	20,357 16,491	– 3,866 – 1,608	16,491 14,883		– 225 – 194	Fastighets AB Brostaden	556002-8952	Stockholm		100%	1,257
2018	14,883	– 7,458	7,425		– 180	Aspholmen Fastigheter AB	556121-9089	Örebro		100%	1,297
2019	7,425	– 4,616	2,809		– 61	Eklandia Fastighets AB Harry Sjögren AB	556122-3768 556051-0561	Gothenburg Mölndal		100% 100%	1,150 804
2020	2,809	– 1,507	1,302		– 10	Fastighets AB Corallen	556226-6527	Jönköping		100%	589
2021+	1,302	– 1,302	0		– 22	Fastighets AB Briggen	556476-7688	Malmö		100%	933
Total		– 20,357			– 692	Fastighets AB Regeringsgatan	556571-4051	Gothenburg		100%	0
						Total					6,030
	Note 20 Accrued Expenses and Prepaid Income
		Group			Parent company	Principles for consolidation are described in the accounting principles.
		2015	2014	2015	2014					Parent company
Pre-paid rents		478	431	–	–	Participations in Group Companies				2015	2014
Accrued interest		96	99	96	99	Opening acquisition value				6,030	5,869
Other		176	157	16	17	Paid shareholders' contribution				–	161
Total		750	687	112	116	Closing balance/book value				6,030	6,030
	Note 21 Pledged Assets					Note 24 Long-term Receivables, Group Companies
		Group			Parent company					Parent company
		2015	2014	2015	2014					2015	2014
Property mortgages		18,164	18,222	–	–	Opening acquisition value			17,093		17,419
	Long-term receivables, group companies	–	–	15,309	15,200	New lending to subsidiaries			2,034		– 340
Total		18,164	18,222	15,309	15,200	Currency translation foreign operation				– 24	14
						Closing balance/book value			19,103		17,093
	Note 25 Financial Instruments
						The different categories of financial instruments in the Group's balance sheet are presented in the table below.
						Financial liabilities recorded at fair value	Derivatives used in		Financial liabilities recorded
				Loans and accounts receivable		in income statement	hedge accounting		at accrued acquisition value
SEKm			2015		2014	2015 2014	2015	2014	2015		2014
Assets
Rent receivables				7	13	– –	–	–		–	–
Other receivables				54	263	– –	–	–		–	–
	Prepaid expenses and accrued income			114	89	– –	–	–		–	–
Cash and bank				39	47	– –	–	–		–	–
Liabilities
	Interest rate derivatives			–	–	1,124 1,344	–	–		–	–
	Currency derivatives			–	–	– –	– 7	13		–	–
	Long-term liabilities			–	–	– –	–	–	20,396		18,446
Accounts payable				–	–	– –	–	–		81	120
Other liabilities				–	–	– –	–	–		166	144

	Accrued expenses and prepaid income			–	–	– –	–	–		750	687
Total				214	412	1,124 1,344	– 7	13	21,393		19,397
	corresponds to fair value. Note 26 Subsequent Events The Financial Reports constitute part of the Annual Report and were signed by					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 primarily short-term interest terms meaning that accrued acquisition cost General Meeting, which will take place on March 17, 2016. Tage Christoffersson,
	the Board of Directors on February 1, 2016. The Board of Directors of Castellum AB intends to propose a dividend of SEK 4.90 per share to the Annual General Meeting. This represents an increase of 7% compared to previous year. The Income Statement and the Balance Sheet for the parent company and the Group will be adopted at Castellum AB's Annual					Head of Business Development at Castellum AB (publ), and Christer Sundberg, CEO of Harry Sjögren AB – wholly owned subsidiary of Castellum – will retire in 2016. Both have been active in Castellum since the Group was formed in the 1990s. Tage will remain in service until the end of the year, and Christer Sund berg will leave in the spring. Replacements are not yet appointed.
							CASTELLUM ANNUAL REPORT 2015 DIRECTORS' REPORT	CASTELLUM ÅRSREDOVISNING 2015			113

Note 26 Subsequent Events

Proposed Distribution of Profits

The following funds are at the Annual General Meeting disposal:
Retained profits	SEK 3,716,445,222
Net income for the year	SEK 895,541,576
	SEK 4,611,986,798
The Board of Directors propose that the retained profits be appropriated as follows:
Dividend to shareholders, SEK 4.90 per share	SEK 803,600,000
Carried forward to the new accounts	SEK 3,808,386,798
	SEK 4,611,986,798

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 803,600,000 can be changed if the number of the companys own repurchased shares changes before the record date for the dividend.

Statement regarding Proposed Distribution of Profit

Reasons

The group's equity has been calculated in accordance with IFRS standards, approved by the EU, as well as in accordance with Swedish law by application of the recommendation RFR 1 (Supplementary Accounting Rules for groups) by the Swedish Financial Reporting Board. The equity of the parent company has been calculated in accordance with Swedish law and by application of the recommendation RFR 2 (Accounting for Legal Entities) of the Swedish Financial Reporting Board.

The proposed distribution constitutes 52% of the group's income from property management, which is in line with the expressed objective 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 value and tax changes amounted to SEKm 2,881. The distribution policy is based on the group's income from property management, and as a result non-affecting cash flow increases and/ or decreases in value of the group's properties and on interest and currency derivatives, do not normally affect the distribution. Such non-affecting cash flow profit or loss, have neither been taken into account 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). Accordingly, the Board of Directors would 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 of 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 to fulfil their obligations. The proposed dividend constitutes 17% of the company's equity and 5% of the group's equity. The group's loan to value ratio and interest coverage ratio 2015 amounted to 49% and 351% respectively. The expressed objective for the group's capital structure, implying a loan to value ratio which not permanently exceeds 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 sound considering the prevailing conditions of the real property 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, implying 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, which have not been considered within the scope of the considerations above. In this respect, no circumstances have been found that indicate 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 14 a of the Swedish Annual Accounts Act. The valuation has presented an undervalue of SEKm 871 after tax, which has affected the equity by the mentioned amount.

Gothenburg January 20, 2016

The Board

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 financial position and results, and the directors' report give a true and fair overview of the development of the company's operations, financial position and results, and discribes the significant 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 financial 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, financial position and results and as well as the significant risks and factors of uncertainty facing the companies within the group.

Gothenburg February 1, 2016

Charlotte Strömberg Per Berggren Anna-Karin Hatt Chairman of the Board Board member Board member

Johan Skoglund Henrik Saxborn

Christer Jacobson Jan Åke Jonsson Nina Linander Board member Board member Board member

Board member Cheif Executive Officer

Our Audit Report regarding this Annual Report was submitted on February 1, 2016

Hans Warén Magnus Fredmer Authorized Public Accountant Authorized Public Accountant

Auditors report

To the Annual Meeting of the shareholders of Castellum AB (publ), corp. id. 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 2015. The annual accounts and consolidated accounts of the company are included in the printed version of this document on pages 4–116.

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 the Annual Accounts Act and of the consolidated 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 ouraudit. 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 judgement, 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 2015 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 2015 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 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 2015.

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 a 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 a 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 February 1, 2016

Hans Warén Authorized Public Accountant

Magnus Fredmer Authorized Public Accountant

Greater Gothenburg	119
Öresund Region	125
Gretaer Stockholm	130
Mälardalen	134
Eastern Götaland	138
Properties sold in 2015	140

Management subsidiaries: ASP: Aspholmen Fastigheter AB COR: Fastighets AB Corallen BRI: Fastighets AB Briggen

EKL: Eklandia Fastighets AB BRO: Fastighets AB Brostaden HAR: Harry Sjögren AB

Greater Gothenburg

Square metres per type of premises Name of property Address Municipality year Recon. year Office Retail Warehouse Industrial Residential Other Total Site sq.m. OFFICE/RETAIL 1 Annedal 21:10 Haraldsgatan 5 Gothenburg 1999 1995 4,382 – – – – – 4,382 3,131 66,800 EKL 3 Gullbergsvass 1:15 Lilla Bommen 4A-B Gothenburg 1999 2001 7,954 – 24 – – – 7,978 1,834 167,000 EKL 4 Heden 16:5 Parkg 10/Nya Allén 5 Gothenburg <1995 1961 70 – – – 616 1,253 1,939 993 27,867 EKL 5 Inom Vallgraven 19:17 Kyrkogatan 38-40 Gothenburg <1995 1919 – 158 20 – – 1,185 1,363 867 27,200 EKL 7 Inom Vallgraven 33:9 Västra Hamng 21/Vallg 9 Gothenburg <1995 1929/1995 1,063 510 – – – – 1,573 829 28,200 EKL 8 Inom Vallgraven 34:8 Kungsg 19-23/Magasinsg 18 Gothenburg <1995 1929/1994 2,872 1,356 55 – – 88 4,371 1,242 104,000 EKL 9 Inom Vallgraven 35:14 Kungsg 15-17/Magasinsg 17 Gothenburg <1995 1929/1991 2,305 1,403 – – 469 – 4,177 1,315 89,830 EKL 10 Inom Vallgraven 35:16 Kaserntorget 5/Vallg 2 Gothenburg <1995 1991 2,371 590 36 – – – 2,997 713 46,200 EKL 11 Inom Vallgraven 35:17 Magasinsg 11-13/Vallg 4-6 Gothenburg <1995 1991 54 248 – – 1,149 – 1,451 666 27,784 EKL 12 Inom Vallgraven 57:2 Drottningg7/V Hamng 5 Gothenburg 2000 1988/1990 5,780 1,056 254 – – – 7,090 2,422 93,323 EKL 14 Lorensberg 48:8 Vasagatan 46 Gothenburg <1995 1900/1992 1,475 202 – – – – 1,677 722 18,626 EKL 15 Masthugget 3:6 Linnégatan 5 Gothenburg <1995 1893/1980 492 628 – – 1,079 790 2,989 745 42,073 EKL 16 Masthugget 9:17 Järntorget 3-4 Gothenburg 1996 1900 2,220 1,163 10 – – – 3,393 1,221 46,800 EKL 17 Masthugget 26:1 Barlastgatan 2 Gothenburg <1995 1923 3,908 1,205 – – 2,796 – 7,909 3,597 114,800 EKL 18 Nordstaden 2:16 Östra Hamngatan 16 Gothenburg 2004 1974/2010 13,819 2,759 115 – – 6 16,699 3,255 472,392 EKL 19 Pustervik 3:8 Brogatan 4 Gothenburg <1995 1988 3,910 – – – – – 3,910 1,087 36,800 EKL 21 Gamlestaden 26:1 Marieholmsgatan 10 Gothenburg <1995 1914/1987 6,531 270 2,155 6,322 – 6 15,284 24,356 53,700 EKL 22 Olskroken 14:2 Ånäsv 44-46/Svang 2-4/ Gothenburg <1995 1895/1986 7,507 315 312 3,636 136 61 11,967 10,263 71,114 EKL Ejderg 3 23 Skår 58:1 St Sigfridsgatan 89 Gothenburg <1995 1991 11,855 – – – – – 11,855 12,175 119,000 EKL 25 Backa 27:43 Backa Bergögata 5-7 Gothenburg 1998 1984 3,874 – 984 309 – – 5,167 3,919 27,200 EKL 26 Backa 196:6 Aröds Industriväg 34 Gothenburg 1996 1990 1,332 – 408 – – – 1,740 5,274 7,952 EKL – Ellesbo 1:5 & 2:10 Ellesbovägen 150 Gothenburg 2012 1990/2009 – – 2,270 – – – 2,270 30,163 8,218 EKL 27 Kärra 28:19 Transportgatan 33 Gothenburg 1996 2008 – – 4,600 – – – 4,600 20,811 34,241 EKL 28 Kärra 77:3 Tagenevägen 70 Gothenburg 1998 1990 1,269 – – – – – 1,269 4,600 5,687 EKL 6 Lindholmen 28:1 Theres Svenssons gata 11 Gothenburg 2015 2006 3,898 – – – – – 3,898 – 67,400 EKL 29 Lindholmen 28:3 Theres Svenssons Gata 9 Gothenburg 2006 2006 4,873 204 72 – – – 5,149 6,532 114,000 EKL 182 Lindholmen 28:4 Theres Svenssons Gata 7 Gothenburg 2011 2013 9,354 – – – – 93 9,447 9,500 195,000 EKL 30 Lundbyvassen 3:1 Lindholmsallén 9 Gothenburg 2011 1949/2006 10,790 – – – – 13 10,803 6,016 128,200 EKL 198 Lundbyvassen 8:3 Lindholmsallén 2 Gothenburg 2013 – 8,990 – – – – – 8,990 4,197 137,800 EKL 31 Rambergsstaden 733:409 Herkulesgatan 68 Gothenburg <1995 1988 1,576 939 1,249 – – – 3,764 8,149 21,957 EKL 32 Sannegården 28:33 Vingalandsgatan 2 Gothenburg 2006 1880/1987 5,237 – 1,312 – – 34 6,583 3,072 60,400 EKL 33 Sannegården 52:1 Östra Eriksbergsg 14-52 Gothenburg 2011 1956/1993 4,773 354 720 1,719 – – 7,566 12,783 59,600 EKL 34 Tingstadsvassen 11:11 Ringög 12/Kolgruveg 3-5 Gothenburg <1995 1992 3,401 2,170 337 – – 29 5,937 4,267 33,000 EKL 36 Tingstadsvassen 26:5 Lergodsgatan 1-3 Gothenburg 2002 1989 792 – 2,518 – – – 3,310 4,566 20,571 EKL 38 Högsbo 8:8 Beatrice Lesslies Gata 14 Gothenburg 2000 1961/2001 1,100 – 1,000 – – – 2,100 3,500 9,764 HAR 39 Högsbo 13:3 E A Rosengrens Gata 15 Gothenburg <1995 1982 1,244 – – – – – 1,244 3,787 7,257 HAR 40 Högsbo 17:7 E A Rosengrens Gata 31 Gothenburg 2012 1969 3,489 – 559 – – – 4,048 2,996 199 Högsbo 20:11 F O Petterssons Gata 9 Gothenburg 2013 1969 2,400 – 300 – – – 2,700 8,605 41 Högsbo 20:22 F O Petterssons Gata 24-32 Gothenburg 2002 1982 14,145 178 760 – – – 15,083 15,522 42 Högsbo 24:12 August Barks Gata 23 Gothenburg 1999 1968/1990 3,117 – 2,756 – – – 5,873 12,817 43 Högsbo 27:7 August Barks Gata 6 A-B Gothenburg 2002 1988 7,933 – – – – – 7,933 9,723 44 Högsbo 36:6 Hulda Mellgrens Gata 1 Gothenburg 2012 1991 3,851 – 510 – – – 4,361 5,336 45 Kobbegården 6:362 Stora Åvägen 19 A-B, 21 Gothenburg <1995 1990 5,513 878 1,150 – – – 7,541 5,490 46 Kobbegården 6:726 Datavägen 14 B Gothenburg <1995 1981 2,573 – – – – – 2,573 4,267 47 Anisen 1 Johannefredsgatan 1 Mölndal 2000 1990 1,676 – 237 – – – 1,913 5,843 48 Anisen 3 Johannefredsgatan 3 Mölndal 1998 2003 1,800 1,500 – 2,600 – – 5,900 10,108 47,455 HAR 49 Berguven 1 Möbelgatan 4 Mölndal 2004 1964 6,500 – – – – 500 7,000 24,283 27,000 HAR 50 Generatorn 5 Aminogatan 16 Mölndal <1995 1986 640 – – 483 – – 1,123 5,169 8,443 HAR 51 Mejramen 1 Lunnagårdsgatan 4 Mölndal 1999 1999 8,300 – 4,700 – – – 13,000 38,818 89,542 HAR 52 Pottegården 4 Kråketorpsgatan 20 Mölndal <1995 1992 3,182 – 1,836 – – – 5,018 6,060 27,850 HAR 53 Riskullaverket 2 Aminogatan 25 Mölndal <1995 1991 1,692 – 1,261 – – – 2,953 3,411 16,898 HAR 54 Sesamfröet 2 Aminogatan 27 Mölndal 2005 1992 5,150 – 700 – – – 5,850 11,000 53,600 HAR 152 Törnrosen 3 Flöjelbergsgatan 10 Mölndal 1999 1964 2,497 – 1,085 – – – 3,582 4,468 10,357 HAR 55 Apollo 5 Österlånggatan 5 Borås <1995 1930/1979 6,803 552 193 – – – 7,548 2,343 41,600 HAR 56 Cedern 9,12,15,16 Ramnåsg 1/Gothenburgsv 6 Borås 2005 1935/1980 4,289 300 2,129 260 – 361 7,339 4,159 57 Katrinedal 14 Katrinedalsgatan 22 Borås <1995 1990 2,360 – 1,892 – – – 4,252 7,675 58 Midas 14 Västerlånggatan 17 Borås <1995 1974 15,408 5,424 – 366 – – 21,198 8,185 59 Narcissus 5 L. Brog. 15/St. Brog. 16 Borås <1995 1930 908 1,484 – – 1,284 – 3,676 853 60 Nestor 2 Lilla Brogatan 19-21 Borås <1995 1962/1991 1,225 3,012 135 – – – 4,372 1,381 61 Nestor 3 Stora Brogatan 24 Borås 1999 1930 1,346 732 – – 439 – 2,517 590 62 Solsten 1:108 A Designvägen 2 Härryda <1995 2003 11,756 – – – – – 11,756 19,206 66,400 EKL 204 Solsten 1:118 Designvägen 1 Härryda 2014 2007 4,860 – – – – – 4,860 7,063 46,800 EKL 207 Fanan 26 – 1,920										Tax Mgmt.
			Acquis- Build/							assessment sub
										value sidiary	Note


















											T

											B


											B

											T









											B
											T/B
											B
											T/B
										23,000 HAR
										13,880 HAR	B
										78,600 HAR
										45,467 HAR	B
										64,600 HAR
										37,000 HAR
										59,200 HAR
										11,992 HAR
										11,910 HAR	B

											B

											B



											B
											B

										12,765 HAR	B
										16,378 HAR
										160,400 HAR	B
										31,114 HAR
										40,000 HAR
										20,864 HAR


	Kristian IV:s väg 1	Halmstad	2014 1999	3,699	–	180	–	5,799	6,387	– HAR
208 Fanan 30 Kristian IV:s väg 3 Halmstad 2014 1988 15,387 38 – – – 2,005 17,430 12,518										– HAR

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

											Tax Mgmt.
Acquis- Build/ Square metres per type of premises								assessment sub
Name of property	Address	Municipality	year Recon. year	Office			Retail Warehouse Industrial Residential Other		Total	Site sq.m.	value sidiary	Note
209 Fanan 43	Linjegatan 6	Halmstad	2014 1986	2,561	–	–	–	– –	2,561	6,544	– HAR
210 Fanan 47	Linjegatan 3	Halmstad	2014 1986	2,610	–	184	–	– 332	3,126	6,720	– HAR
211 Fanan 49	Linjegatan 8-10	Halmstad	2014 1999	3,955	–	–	–	– 3,223	7,178	10,298	– HAR
212 Fanan 51	Linjegatan 5-7	Halmstad	2014 2004	2,621	–	–	–	– 2,900	5,521	5,886	– HAR
63 Flaggan 1	Laholmsvägen 84	Halmstad	2007 1959/2004	–	2,895	–	–	– –	2,895	5,941	8,995 HAR
64 Karossen 3	Kristinehedsvägen 5, 7	Halmstad	2007 1965/2004	916	4,458	568	535	– –	6,477	14,500	20,792 HAR	B
65 Kartongen 3	Spikgatan 7	Halmstad	2007 1990/1995	3,434	–	2,842	–	– 40	6,316	20,900	25,751 HAR	B
66 Valsen 2	Svingelvägen 2	Halmstad	2007 1979/2003	2,294	–	–	–	– –	2,294	7,314	10,726 HAR	B
67 Filaren 1	Sveagatan 10	Alingsås	<1995 1958/1968	3,116	2,282	158	–	– –	5,556	4,636	31,577 HAR
68 Gjutaren 26 B	Metallgatan 2-4	Alingsås	<1995 2000	3,585	–	–	–	– –	3,585	4,000	21,432 HAR	B
69 Partille 4:2, 4:25	G:a Kronvägen 22	Partille	<1995 1940/1981	–	2,240	–	–	– –	2,240	8,250	12,930 HAR
70 Ugglum 8:37	Gothenburgsvägen 78-80	Partille	<1995 1998/1982	2,082	1,312	–	– 278	–	3,672	5,731	29,234 HAR
72 Ugglum 8:92	Gothenburgsvägen 74-76	Partille	<1995 1992	4,944	720	193	–	– –	5,857	5,408	44,000 HAR
73 Ugglum 126:4	Gibsons väg 3	Partille	<1995 1990	468	–	–	–	– –	468	767	4,210 HAR
217 Bolsheden 1:4	Kungsporten 1-7	Kungsbacka	2015 1991	8,480	5,900	–	3,424	– –	17,804	36,993	82,582 HAR
74 Hede 3:125	Sättarevägen 3	Kungsbacka	<1995 1990	1,759	–	601	–	– –	2,360	3,690	10,825 HAR
75 Kungsbacka 4:46	Lilla Verkstadsgatan 8	Kungsbacka	<1995 1979	401	–	–	–	– –	401	1,356	1,791 HAR	B
76 Varla 2:380	Energigatan 11	Kungsbacka	<1995 1990	1,689	–	685	–	– –	2,374	4,590	13,509 HAR
77 Varla 2:416	Kungsparksvägen 2	Kungsbacka	2001 2002	1,100	–	680	–	– –	1,780	5,500	10,967 HAR	B
78 Varla 3:22 B	Hallabäcksvägen 2	Kungsbacka	2006 1979	1,100	4,700	1,100	–	– –	6,900	15,000	69,200 HAR	B
79 Vägmästaren 5	Syréngatan 1	Kungsbacka	2009 2010	3,000	–	–	–	– –	3,000	6,500	32,600 HAR	B
Total office/retail				333,685	54,135	45,845	19,654 8,246 14,839		476,404		627,369 4,085,992
WAREHOUSE/INDUSTRIAL
80 Arendal 1:13	Styckegodsgatan 4	Gothenburg	2005 2006	–	–	27,787	–	– –	27,787	42,376	152,800 EKL
81 Arendal 7:4	Kärrlyckegatan 11	Gothenburg	1998 1991	713	–	2,955	–	– 4	3,672	12,671	17,000 EKL
82 Arendal 764:130	Oljevägen 103-109	Gothenburg	2005 1971	891	–	9,492	15,536	– –	25,919	41,244	91,194 EKL
85 Backa 22:11	Exportgatan 67	Gothenburg	<1995 1990	195	–	2,550	–	– –	2,745	5,031	10,338 EKL
86 Backa 25:7	Exportgatan 28	Gothenburg	1999 1972	–	–	–	11,200	– –	11,200	23,169	39,732 EKL

87 Backa 26:3 Exportgatan 40 Gothenburg 1996 1947/1988 2,512 763 2,658 – – 12 5,945 6,000 25,545 EKL 88 Backa 27:2 Importgatan 17 Gothenburg <1995 1968 – – 2,765 – – – 2,765 12,927 13,542 EKL B

												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment sub
Name of property	Address	Municipality	year Recon. year	Office			Retail Warehouse Industrial Residential Other			Total	Site sq.m.	value sidiary	Note
90 Backa 94:1	Exportgatan 15	Gothenburg	1998 1989	–	–	7,560	–	–	–	7,560	20,947	31,190 EKL	B
91 Backa 97:11	Exportgatan 39-41	Gothenburg	2002 1978	1,508	–	2,486	–	–	–	3,994	19,285	25,632 EKL
92 Backa 107:4	Transportgatan 17	Gothenburg	2010 1983/2006	1,645	–	20,895	–	–	–	22,540	73,621	29,200 EKL	T
93 Backa 192:4	Aröds Industriväg 60	Gothenburg	<1995 1989	343	240	1,461	–	–	–	2,044	3,428	7,755 EKL	T
94 Backa 192:6	Aröds Industriväg 62	Gothenburg	1998 1988	–	–	1,371	–	–	–	1,371	4,386	5,073 EKL
95 Backa 192:10	Aröds Industriväg 66	Gothenburg	<1995 1990	1,227	–	1,593	–	–	–	2,820	6,042	12,043 EKL
96 Backa 193:1	Aröds Industriväg 2 A	Gothenburg	2000 1988/1996	–	–	–	4,100	–	–	4,100	11,217	16,574 EKL
97 Backa 197:2	Aröds Industriväg 17-19	Gothenburg	<1995 1990	–	–	1,474	–	–	–	1,474	2,727	4,848 EKL

98 Kärra 28:10	Transportgatan 37	Gothenburg	1996 2010	–	2,217	–	–	–	–	2,217	14,609	16,992 EKL
181 Kärra 28:18	Transportgatan 37	Gothenburg	1996 2012	–	–	5,442	–	–	–	5,442	19,042	40,608 EKL
99 Kärra 37:4	Tagenevägen 21	Gothenburg	<1995 1972	–	1,195	11,740	–	–	–	12,935	26,476	41,769 EKL
100 Kärra 72:36	Tagenevägen 34	Gothenburg	2008 2011	–	–	6,400	–	–	–	6,400	14,609	39,127 EKL
203 Kärra 73:3	Tagenevägen 15 B	Gothenburg	2013 1999	–	–	1,450	–	–	–	1,450	7,817	10,436 EKL	B
101 Kärra 74:2	Tagenevägen 29	Gothenburg	1996 2010	–	–	19,558	–	–	–	19,558	35,995	97,600 EKL
102 Kärra 74:3	Tagenevägen 33	Gothenburg	1998 1985	–	–	–	9,500	–	–	9,500	17,475	39,683 EKL
219 Kärra 75:2	Transportgatan 37-39	Gothenburg	2015 1982	522	185	7,144	–	–	92	7,943	13,275	28,800 EKL	B
103 Kärra 75:3	Transportgatan 35	Gothenburg	2008 1980	–	–	4,170	4,357	–	–	8,527	14,375	36,536 EKL
220 Kärra 75:4	Transportgatan 41-43	Gothenburg	2015 1984	–	1,654	6,346	–	–	–	8,000	13,305	30,200 EKL	B
104 Kärra 77:8	Tagenevägen 72	Gothenburg	<1995 1991	227	–	1,859	–	–	–	2,086	8,913	11,686 EKL
200 Kärra 78:12-13	Trankärrsgatan 9-11	Gothenburg	2013 1982/2012	–	–	4,090	–	–	–	4,090	10,121	16,670 EKL	B

201 Kärra 78:8	Trankärrsgatan 3B	Gothenburg	2013 1962/1982	–	–	2,809	–	–	–	2,809	5,060	10,751 EKL
202 Kärra 80:6	Trankärrsg 16/Tagenev 45	Gothenburg	2013 1990/2010	–	–	1,498	–	–	–	1,498	3,908	10,114 EKL
105 Kärra 80:7	Trankärrsgatan 14	Gothenburg	<1995 1990	–	–	3,507	–	–	31	3,538	7,185	16,669 EKL	T
106 Kärra 94:1	Orrekulla Industrigata 25	Gothenburg	1999 1990	–	–	–	1,960	–	–	1,960	3,520	8,188 EKL
107 Kärra 96:1	Orrekulla Industrigata 13-15 Gothenburg		2001 1991	210	–	3,780	–	–	–	3,990	10,407	18,254 EKL	B
109 Tingstadsvassen 12:6	Manufakturgatan 19	Gothenburg	<1995 1990	328	–	2,657	–	–	–	2,985	2,960	13,776 EKL	T
110 Tingstadsvassen 12:9	Manufakturgatan 21-23	Gothenburg	<1995 1957	–	–	5,786	–	–	–	5,786	8,682	13,707 EKL	T
111 Tingstadsvassen 14:7	Stålverksgatan 11	Gothenburg	1997 1993	443	–	232	3,655	–	–	4,330	6,847	18,912 EKL	B
112 Tingstadsvassen 19:3	Kolgruvegatan 1	Gothenburg	<1995 1950/1988	626	168	9,639	–	–	–	10,433	16,444	24,954 EKL	T
114 Högsbo 7:16	Gustaf Melins Gata 7	Gothenburg	<1995 1987	1,301	–	–	404	–	–	1,705	4,043	10,216 HAR
115 Högsbo 9:3	A Odhners Gata 17	Gothenburg	2008 1978/2002	635	–	2,267	–	–	–	2,902	6,007	16,962 HAR
116 Högsbo 18:1	E A Rosengrens Gata 30-38 Gothenburg		<1995 1966/1973	1,092	–	7,628	–	–	–	8,720	17,149	31,560 HAR	B
117 Högsbo 26:8	August Barks Gata 25	Gothenburg	1998 1969/1979	2,123	–	–	2,253	–	–	4,376	6,068	17,132 HAR	B
118 Högsbo 28:3	August Barks Gata 7	Gothenburg	<1995 1968/1981	785	–	–	2,857	–	–	3,642	3,942	14,025 HAR

119 Högsbo 36:1	Norra Långebergsgatan 8	Gothenburg	2000 1971/1995	710	–	3,840	–	–	–	4,550	9,057	23,121 HAR
120 Högsbo 36:5	Hulda Mellgrens Gata 3	Gothenburg	1998 1991	553	–	–	2,931	–	–	3,484	5,438	16,366 HAR	B
121 Högsbo 36:7	Hulda Mellgrens Gata 5	Gothenburg	2012 1990	1,710	–	7,421	–	–	–	9,131	18,010	51,400 HAR	B
122 Högsbo 36:9	Hulda Mellgrens Gata 9	Gothenburg	<1995 2007	400	–	1,475	–	–	–	1,875	4,253	13,349 HAR
123 Högsbo 38:9	Sisjö Kullegata 4	Gothenburg	<1995 1984	–	–	–	1,083	–	–	1,083	8,609	11,760 HAR	B
124 Högsbo 40:1	Gustaf Werners Gata 2	Gothenburg	1999 1981/1999	1,495	–	5,505	–	–	–	7,000	16,070	33,745 HAR	B
125 Högsbo 40:2	Gustaf Werners Gata 4	Gothenburg	2006 1978	400	–	2,815	–	–	–	3,215	10,799	19,237 HAR	B
126 Kobbegården 208:6	Askims Verkstadsväg 16	Gothenburg	1999 1973/1979	480	–	–	1,264	–	–	1,744	3,462	7,458 HAR
127 Kobbegården 209:1	Askims Verkstadsväg 15	Gothenburg	1999 1973/1996	–	–	–	2,538	–	–	2,538	6,336	12,508 HAR	B
128 Kobbegården 6:180	Datavägen 20	Gothenburg	<1995 1980	1,704	–	1,078	–	–	–	2,782	5,100	18,100 HAR
129 Kobbegården 6:360	Datavägen 31	Gothenburg	2001 1979	1,640	–	5,349	–	–	–	6,989	14,508	43,600 HAR
130 Kobbegården 6:7	Ekonomivägen 11	Gothenburg	1999 1978/1986	–	–	–	6,290	–	–	6,290	15,973	32,200 HAR	B
131 Rud 51:21	Klangfärgsgatan 2 C	Gothenburg	2006 1979/1989	510	–	2,590	–	–	–	3,100	6,926	0 HAR	T

132 Tynnered 1:10	Kontrabasgatan 12	Gothenburg	<1995 1969	429	140	–	2,152	–	–	2,721	7,475	11,103 HAR	T/B
133 Kallebäck 3:4	Mejerigatan 1	Gothenburg	2000 1962	8,832	485	20,694	–	–	–	30,011	37,723	104,000 EKL
134 Olskroken 35:7	Blomstergatan 2	Gothenburg	2009 1977	417	–	3,427	–	–	–	3,844	3,760	12,071 EKL	T
135 Olskroken 35:9	Grönsaksgatan 5	Gothenburg	2009 1966	874	–	6,781	–	–	–	7,655	9,127	21,595 EKL	T
136 Olskroken 35:14	Grönsaksgatan 3	Gothenburg	2009 1967	1,169	4,542	–	–	–	–	5,711	6,216	18,129 EKL	T
218 Gasklockan 2	Argongatan 32	Mölndal	2015 1991	876	500	–	3,500	–	–	4,876	19,437	25,363 HAR	B
138 Gaslyktan 11	Argongatan 26-30	Mölndal	2003 1987	4,000	–	11,000	–	–	–	15,000	38,100	96,000 HAR	B
139 Generatorn 1	Aminogatan 24	Mölndal	2003 1995/2003	1,445	–	3,110	–	–	–	4,555	30,000	46,512 HAR	B
140 Generatorn 2	Aminogatan 20-22	Mölndal	<1995 1991	164	–	2,938	–	–	–	3,102	8,933	18,312 HAR
141 Heliumgasen 11	Kryptongatan 5 B	Mölndal	1999 1975	4,560	–	–	5,093	–	–	9,653	16,300	50,424 HAR	B
215 Hökegården 1	Kärragatan 2	Mölndal	2014 1971	675	–	1,900	–	–	–	2,575	8,839	15,272 HAR	B
142 Kryddpepparn 3	Östergårdsgatan 8	Mölndal	<1995 1992	–	–	–	4,140	–	–	4,140	15,347	0 HAR	B

143 Kusken 3	Idrottsvägen 10	Mölndal	2011 2005	2,773	–	–	4,852	–	–	7,625	17,665	44,303 HAR
144 Pottegården 2	Kråketorpsgatan 18	Mölndal	<1995 1964	–	–	1,800	–	–	–	1,800	7,014	10,178 HAR	B
145 Skinntickan 1	Ålegårdgatan 5	Mölndal	<1995 1989	1,221	–	–	4,720	–	–	5,941	10,267	11,565 HAR
146 Syrgasen 8	Kryptongatan 14	Mölndal	<1995 1979	–	–	–	3,055	–	–	3,055	11,197	19,145 HAR	B
147 Tjärblomman 2	Flöjelbergsgatan 3 A	Mölndal	1999 1960	2,495	–	4,540	–	–	–	7,035	9,193	18,563 HAR	B
148 Tjärblomman 3	Sallarängsgatan 3	Mölndal	1999 1970	1,225	–	7,533	–	–	–	8,758	9,394	23,303 HAR

												Tax Mgmt.
			Acquis- Build/					Square metres per type of premises				assessment sub
Name of property	Address	Municipality		year Recon. year	Office			Retail Warehouse Industrial Residential Other		Total	Site sq.m.	value sidiary	Note
149 Tulpanen 1	Bergfotsgatan 5	Mölndal	1999 1961		1,812	–	2,954	–	–	– 4,766	5,577	15,425 HAR	B
150 Tusenskönan 2	Flöjelbergsgatan 6	Mölndal	1999 1960		3,567	–	933	–	–	– 4,500	5,346	14,636 HAR	B
151 Tusenskönan 4	Bergfotsgatan 3	Mölndal	1999 1961		2,038	–	2,424	–	–	– 4,462	5,397	13,588 HAR	B
153 Vallmon 2	Flöjelbergsgatan 13	Mölndal	<1995 1965		662	–	2,518	–	–	– 3,180	3,642	8,957 HAR
154 Vallmon 3	Flöjelbergsgatan 11	Mölndal	<1995 1965		676	–	2,570	–	–	– 3,246	3,830	9,194 HAR
155 Vallmon 6	Flöjelbergsgatan 7 B	Mölndal	<1995 1965		1,629	–	6,685	–	–	– 8,314	9,956	23,354 HAR
156 Vallmon 7	Flöjelbergsgatan 7 A	Mölndal	1999 1930		960	–	3,844	–	–	– 4,804	6,894	14,200 HAR	B
157 Ängsviolen 1	Flöjelbergsgatan 18	Mölndal		<1995 1960/1965	1,765	180	–	3,655	–	– 5,600	10,292	20,450 HAR	B
158 Hede 3:12	Faktorvägen 1	Kungsbacka	2003 1992		1,971	–	6,929	–	–	– 8,900	32,809	44,793 HAR	B
159 Hede 3:131	Tryckarevägen 8	Kungsbacka	<1995 1991		170	–	1,347	–	–	– 1,517	7,558	6,602 HAR	B
160 Kungsbacka 4:47	L. Verkstadsgatan 2-6/ Verkstadsgatan 7	Kungsbacka		<1995 1978/1990	1,516	–	2,475	–	–	– 3,991	9,317	12,949 HAR
161 Varla 2:388	Energigatan 21	Kungsbacka		<1995 1995/2013	500	–	3,970	–	–	– 4,470	10,003	19,732 HAR
162 Varla 2:415	Borgås Gårdsväg 15	Kungsbacka	2004 2002		755	–	3,676	–	–	– 4,431	8,852	20,540 HAR
163 Varla 3:22	Hallabäcksvägen 1	Kungsbacka	2006 1979		3,500	–	20,300	–	–	– 23,800	78,644	82,256 HAR	B
164 Hinden 2	Sagagatan 17	Borås	<1995 1956		692	–	–	5,748	–	– 6,440	9,833	10,364 HAR	T/B
165 Kilsund 3	Evedalsgatan 5	Borås	<1995 1935		709	260	1,400	9,847	–	– 12,216	16,660	24,090 HAR	B
166 Lagern 8	Hållingsgatan 15	Borås		<1995 1948/1961	239	–	–	8,753	–	– 8,992	5,700	12,103 HAR	B
167 Silverpoppeln 31	Ålandsgatan 6	Borås		2006 1961/1970	835	–	–	2,165	–	– 3,000	6,143	4,826 HAR
168 Snödroppen 8	Elinsdalsg 9,13-15/ Södra Korsg 11	Borås		2005 1980/1980	1,543	–	–	5,881	–	– 7,424	14,546	18,696 HAR	B
169 Trucken 5	Viaredsvägen 14	Borås		2 001 2001/2012	1,050	–	13,550	–	–	– 14,600	37,700	70,400 HAR	B
170 Bulten 6	Bultgatan 1	Alingsås		2007 1985/1990	760	–	2,600	–	–	– 3,360	19,559	11,542 HAR	B
171 Gjutaren 26	Metallgatan 2-4	Alingsås		<1995 1933/1989	1,383	–	9,082	–	–	– 10,465	21,080	21,891 HAR	B
172 Konfektasken 15	Kolavägen 2/Sidenvägen 7	Alingsås		<1995 1929/1969	3,769	–	6,927	–	–	– 10,696	15,544	24,483 HAR	B

173 Stallet 3	Tomasgårdsvägen 19	Alingsås	2008 1990		1,295	–	2,040	–	–	– 3,335	4,700	11,542 HAR	B
174 Hede 2:11	Hedeforsvägen 6	Lerum		2006 1960/1974	500	–	2,200	–	–	– 2,700	9,973	8,705 HAR
175 Berg 1:76	Åkerivägen 7	Lerum	2006 2007		1,500	–	8,400	–	–	– 9,900	30,000	50,088 HAR	B
213 Fanan 39	Pilefeltsgatan 71	Halmstad	2014 1990		–	1,870	–	–	–	– 1,870	3,279	36,366 HAR
176 Fogden 4	Laholmsvägen 84	Halmstad		2007 1960/1990	278	1,946	8,609	118	– 1,028	11,979	25,800	25,118 HAR	B
177 Fyllinge 20:409	Sadelvägen 5	Halmstad	2011 1992		166	–	–	4,223	–	– 4,389	22,276	17,741 HAR	B
178 Hönekulla 1:571	Åvägen 1	Härryda		2006 1986/2002	1,762	–	–	2,345	– 187	4,294	6,596	14,919 HAR
192 Solsten 1:108 B	Designvägen 5	Härryda	2014 1999		–	–	6,534	–	–	– 6,534	36,806	34,981 EKL
179 Kåbäcken 11:7	Gamla Alingsåsvägen 29	Partille		<1995 1961/1964	–	–	2,227	–	–	– 2,227	5,477	5,611 HAR
Total warehouse/industrial					96,085		16,345 413,263 140,175		0 1,354		667,222 1,467,988 2,664,725
DEVELOPMENT PROJECTS
24 Arendal 764:394	Sydatlanten 15-17	Gothenburg	2005	1990	8,969	389	–	–	–	– 9,358	9,646	46,200 EKL	T
84 Backa 20:5	Exportgatan 2-8	Gothenburg		2007 1989/1999	1,175	–	856	13,869	–	– 15,900	37,965	72,401 EKL	B
20 Gamlestaden 22:14	Gamlestadsvägen 16	Gothenburg	2004 1957		18,038	700	540	502	–	8 19,788	20,313	85,498 EKL	B
180 Inom Vallgraven 4:1	Östra Larmgatan 18	Gothenburg		<1995 1856/1988	–	2,597	–	–	–	– 2,597	671	18,600 EKL
13 Krokslätt 102:2	Eklandagatan 80	Gothenburg	2008 1980		811	–	–	–	–	– 811	1,319	0 EKL
205 Lindholmen 30:5	Lindholmspiren 7	Gothenburg	2014 –		–	–	–	–	–	– –	3,375	1,518 EKL

137 Majorna 163:1	Banehagsliden 2	Gothenburg	2006 1949		5,729	–	–	–	–	– 5,729	9,263	18,164 EKL	B
206 Sörred 7:23		Gothenburg	2014 –		–	–	–	–	–	– –	12,500	0 EKL	B
Total development projects					34,722	3,686	1,396	14,371	0	8 54,183	95,052	242,381
UNDEVELOPED LAND
183 Annedal 21:9	Haraldsgatan 3	Gothenburg	1999 –		–	–	–	–	–	– –	2,088	– EKL
193 Krokslätt 102:9	Eklandagatan 80	Gothenburg	2008 –		–	–	–	–	–	– –	821	574 EKL	B
194 Tingstadsvassen 31:6	Stålverksgatan 11	Gothenburg	1997 –		–	–	–	–	–	– –	2,687	– EKL	B
185 Högsbo 39:3	Ingela Gathenheilms Gata 8 Gothenburg		<1995 –		–	–	–	–	–	– –	1,720	1,548 HAR	B
187 Kobbegården 152:1	Industrivägen 4-6	Gothenburg	<1995 –		–	–	–	–	–	– –	25,158	22,600 HAR	B
188 Heliumgasen 4	Neongatan 4B	Mölndal	<1995 –		–	–	–	–	–	– –	4,794	4,314 HAR	B
– Skällared 3:49	Lysekulevägen	Kungsbacka	<1995 –		–	–	–	–	–	– –	29,297	1,640 EKL	B
190 Varla 3:34	Hallabäcksvägen 1	Kungsbacka	2006 –		–	–	–	–	–	– –	14,356	4,306 HAR	B
191 Kyllared 1:112	Tvinnaregatan 27	Borås	<1995 –		–	–	–	–	–	– –	5,118	1,279 HAR	B
216 Trucken 6	Viaredsvägen 14	Borås	2014 –		–	–	–	–	–	– –	38,500	5,684 HAR	B
171 Gjutaren 27	Metallgatan 2-4	Alingsås	<1995 –		–	–	–	–	–	– –	600	276 HAR	B
214 Fanborgen 3	Spetsvinkelgatan 8	Halmstad	2014 –		–	–	–	–	–	– –	1,990	5,600 HAR	B
214 Fanborgen 4	Spetsvinkelgatan 8	Halmstad	2014 –		–	–	–	–	–	– –	5,067	– HAR
204 Solsten 1:155	Designvägen 1	Härryda	2014 –		–	–	–	–	–	– –	2,948	1,031 EKL
Total undeveloped land					0	0	0	0	0 0	0	135,144	48,852

Total Greater Gothenburg					464,492			74,166 460,504 174,200 8,246 16,201 1,197,809 2,325,553 7,041,950

Castellum's Real Estate Portfolio in Greater Gothenburg 31-12-2015

	No. of properties	Area thous. sq.m	Rental value SEKm	Rental value SEK/sq.m	Economic occupancy rate	Rental income SEKm	Property costs SEKm	Property costs SEK/sq.m	Net operating income SEKm
Office/retail
Central Gothenburg	16	74	173	2,340	94.9%	164	38	513	126
Hisingen	15	80	128	1,587	96.9%	124	24	292	100
Halmstad	10	60	72	1,212	90.1%	65	12	199	53
Högsbo, Sisjön	10	53	56	1,039	77.8%	43	12	221	31
Borås	7	51	55	1,077	92.2%	51	14	273	37
Rest of Greater Gothenburg	27	158	178	1,127	94.9%	169	38	244	131
Total office/retail	85	476	662	1,388	93.1%	616	138	289	478
Warehouse/industrial
Hisingen	37	253	179	704	90.3%	161	31	122	130
Mölndal	21	117	101	865	93.5%	94	18	158	76
Högsbo/Sisjön	19	78	68	878	94.5%	65	11	142	54
Kungsbacka	6	53	29	546	90.4%	26	5	98	21
Borås	6	47	34	726	92.8%	32	6	118	26
Rest of Greater Gothenburg	16	119	95	800	89.3%	85	24	202	61
Total warehouse/industrial	105	667	506	759	91.5%	463	95	143	368
Total	190	1,143	1,168	1,021	92.4%	1,079	233	204	846
Leasing and property administration							67	59	– 67
Total after leasing and property administration							300	263	779
Development projects	8	55	52	–	–	38	11	–	27
Undeveloped land	14	–	–	–	–	–	–	–	–
Total	212	1,198	1,220	–	–	1,117	311	–	806

Property related key figures

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006
Rental value, SEK/sq.m.	1,021	1,003	993	957	944	935	919	885	856	834
Economic occupancy rate	92.4%	91.6%	94.1%	93.4%	95.4%	94.1%	94.0%	92.6%	90.8%	89.4%
Property costs, SEK/sq.m.	263	254	264	259	257	264	262	228	227	224
Net operating income, SEK/sq.m.	681	665	670	635	644	616	602	591	551	521
Number of properties	212	209	196	194	193	188	190	187	182	176
Lettable area, thousand sq.m.	1,198	1,157	1,111	1,103	1,085	1,046	1,028	1,017	1,000	914

Tax Mgmt.

Öresund Region

			Acquis- Build/	Square metres per type of premises							assessment sub
Name of property	Address	Municipality	year Recon. year	Office			Retail Warehouse Industrial Residential Other			Total	Site sq.m.	value sidiary	Note
OFFICE/RETAIL
1 Armringen 2	Agnesfridsvägen 190	Malmö	2011 1975	480	3,869	24	494	–	–	4,867	14,925	20,327 BRI	T
2 Betongen 11	Krang 4/Västkustv/Nubbg	Malmö	<1995 1991	4,872	–	37	–	–	–	4,909	6,168	32,628 BRI	T/B
4 Brandnävan 1&2	Stenbärsgatan 1	Malmö	1999 1989	2,822	–	–	–	–	–	2,822	9,670	14,826 BRI	T/B
5 Bältespännet 13	Hornyxeg 12/Amilonsv 3	Malmö	2006 1972/2002	–	1,820	–	–	–	–	1,820	4,402	8,774 BRI
6 Flygledaren 3	Höjdrodergatan 18	Malmö	2004 1991	1,610	–	–	–	–	–	1,610	3,620	7,956 BRI	T
7 Flygvärdinnan 4	Höjdroderg 30-34/Vatten verksv 47	Malmö	<1995 1935/2001	5,174	–	4,084	–	–	–	9,258	17,848	62,844 BRI	T
106 Fullriggaren 4	Riggaregatan 51-57	Malmö	2 010 2013	4,656	470	–	–	–	363	5,489	1,854	102,600 BRI
8 Gustav Adolf 13	Gustav Adolfs Torg 4	Malmö	2003 1968	6,182	3,587	155	–	–	–	9,924	2,224	217,000 BRI
9 Hälsingland 19	Fosiev 9-19/Finlandsg 1/ Trelleborgsv 12-14	Malmö	<1995 1950/2003	8,232	6,613	13	–	–	–	14,858	26,696	93,132 BRI	B
10 Höjdrodret 3	Kabingatan 11	Malmö	2007 1990	1,182	–	162	–	–	–	1,344	1,600	7,731 BRI
12 Malte 23	Fredriksbergsgatan 16	Malmö	1999 1965	5,619	533	753	643	–	–	7,548	2,597	69,000 BRI
13 Murman 8	Murmansg. 126/Kruseg. 27	Malmö	<1995 1960/1989	5,912	–	1,286	–	–	–	7,198	7,200	25,720 BRI
14 Nejlikebuketten 4	Skiffervägen 15-19	Malmö	2012 1991	6,565	–	–	–	–	–	6,565	12,995	43,600 BRI
15 Nejlikebuketten 6	Derbyvägen 7	Malmö	2011 1987	1,739	–	–	–	–	26	1,765	10,000	9,875 BRI
16 Norsen 12	Föreningsg. 7-11/Brog. 12	Malmö	<1995 1930/1990	2,446	–	96	54	75	593	3,264	1,296	– BRI
115 Revolversvarven 10:2	Jägershillgatan 18	Malmö	2012 1987	9,984	–	–	–	–	–	9,984	16,531	48,000 BRI
17 Sadelknappen 4	Ridspögatan 10	Malmö	1999 1985	994	–	–	–	–	511	1,505	5,463	6,833 BRI
19 Skjutsstallslyckan 3	Lundavägen 62	Malmö	<1995 1946	–	1,391	–	1,705	–	–	3,096	3,690	6,816 BRI

20 Spännbucklan 16	Agnesfridsvägen 178	Malmö	<1995 1972/2002	–	4,762	–	–	–	–	4,762	15,117	26,839 BRI
22 Stenyxan 21	Stenyxegatan 14	Malmö	2007 1992/1999	1,094	–	–	–	–	–	1,094	2,301	5,127 BRI
23 Stillman 40	Krusegatan 34	Malmö	2005 1975/1986	1,787	–	–	–	–	–	1,787	3,550	7,035 BRI
24 Svedjenävan 3	Stenbärsgatan 4-6	Malmö	<1995 1991	4,732	–	–	–	–	–	4,732	9,969	30,021 BRI
107 Sändaren 1	Agnesfridsvägen 111	Malmö	2010 2013	12,165	–	220	–		– 1,575	13,960	40,239	92,800 BRI	T
25 Torshammaren 11	Hornyxegatan 6	Malmö	2011 1984	647	–	–	–	–	–	647	5,034	3,904 BRI
26 Tuborg 1	Kronoborgsv. 5/V Rönne holmsv. 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	1,595	–	1,722	–	–	–	3,317	8,549	22,329 BRI
28 Forskaren 2	Emdalavägen 4-18	Lund	1999 2001	19,176	–	–	–		– 1,813	20,989	18,274	344,000 BRI
29 Forskaren 2:2	Emdalavägen 4-10	Lund	1999 2008	8,591	–	–	–	–	760	9,351	9,136	151,000 BRI
105 Forskaren 2:3	Scheelevägen	Lund	1999 2012	7,528	–	–	–		– 1,638	9,166	9,136	151,000 BRI
30 Jöns Petter Borg 9	Landerigränden 23	Lund	1999 1990	4,042	–	7,287	–	–	–	11,329	24,502	62,344 BRI	B
31 Kvartsen 2	Skiffervägen 15-19	Lund	<1995 1991	639	–	999	–	–	–	1,638	9,543	12,217 BRI
31 Kvartsen 2:2	Skiffervägen 15	Lund	<1995 1991/2013	–	–	2,300	–	–	300	2,600	5,031	12,839 BRI
32 Reuterdahl 15	Scheelevägen 16/Neversv.	Lund	1997 1990	2,812	–	–	–	–	310	3,122	4,478	41,600 BRI
33 Reuterdahl 15:2	Scheelevägen 16	Lund	2006 1990	4,854	–	791	–	–	–	5,645	12,077	82,800 BRI
34 Rudebok 2	Rudeboksvägen 3	Lund	2004 1985/2004	4,697	–	–	–	–	–	4,697	14,781	37,800 BRI
35 Smörkärnan 1	Kaprifolievägen 1/Kobjersv. Lund		1996 1968/1995	6,331	–	136	–		– 1,340	7,807	16,474	73,400 BRI
37 St Clemens 22	Stortorget 6-8	Lund	<1995 1832/1981	1,160	1,423	128	–	574	–	3,285	2,769	55,516 BRI
38 St Clemens 27	Stortorget 4/Grönegatan	Lund	<1995 1846/1999	–	2,344	–	–	–	–	2,344	1,114	47,800 BRI
39 Stockholmsledet 8	Scheelevägen 30-32	Lund	<1995 1991	10,871	–	1,073	–	–	30	11,974	14,440	149,000 BRI
40 Traktorn 2	Traktorvägen 11-13	Lund	2004 1990/1995	9,778	–	331	–	–	700	10,809	16,400	102,400 BRI
100 Traktorn 4	Traktorvägen 13	Lund	2012 1983	565	–	–	–		– 1,231	1,796	4,512	7,172 BRI
41 Trumlan 1	Traktorvägen 19	Lund	<1995 1990	–	1,183	1,334	–	–	–	2,517	9,066	12,783 BRI
117 Grusbacken 3	Mogatan 14	Helsinborg	2012 2013	2,488	–	–	–	–	–	2,488	9,909	20,069 BRI
118 Grusgången 2	Pinnmogatan 1	Helsinborg	2014 1991/2001	1,546	–	1,220	–	–	–	2,766	6,833	12,060 BRI
43 Kavalleristen 9	Berga Allé 1-3	Helsingborg	1997 1920/1993	11,487	–	233	–	–	671	12,391	27,223	80,099 BRI	B

44 Kroksabeln 18	Florettgatan 12	Helsingborg	2004 1988	2,902	–	435	–	–	178	3,515	4,809	17,988 BRI
45 Kulan 3	Garnisonsgatan 5	Helsingborg	2002 1996/2005	–	–	12,730	–	–	–	12,730	18,567	43,400 BRI
46 Musköten 5	Bergavägen 8	Helsingborg	<1995 1970/1985	1,619	725	1,535	–	–	–	3,879	4,000	11,482 BRI
47 Pilbågen 6	Garnisonsgatan 6	Helsingborg	2000 1977	–	4,525	814	–	–	–	5,339	11,400	18,873 BRI	B
48 Pilbågen 6:2	Garnisonsgatan 10	Helsingborg	2004 1980	4,955	4,728	1,541	–	–	456	11,680	16,000	55,580 BRI
49 Rustningen 1	Rundgången 26-32	Helsingborg	<1995 1989	7,823	2,597	709	–	–	–	11,129	15,000	74,165 BRI
– Snårskogen 1	Kanongatan 155-159	Helsingborg	<1995 1991	2,345	4,513	1,770	–	–	–	8,628	27,824	43,093 BRI
51 Spjutet 2	Garnisonsgatan 14	Helsingborg	2008 1970/2003	1,412	5,169	–	–	–	162	6,743	15,287	35,200 BRI
52 Studsaren 4	Bergavägen 21	Helsingborg	<1995 2006	850	–	1,182	–	–	–	2,032	7,200	9,407 BRI
54 Vikingen 6	Mariag. 10/S Kyrkog. 11	Helsingborg	<1995 1878/1984	535	159	–	–	–	–	694	274	7,840 BRI
55 Vikingen 12	L Strandg. 7/S Kyrkog. 7	Helsingborg	<1995 1912/1988	625	–	–	–	–	600	1,225	414	15,140 BRI
57 Abildager 26	Abildager 26	Brøndby	2011 1995	1,800	–	1,840	–	–	–	3,640	14,012	32,798 BRI
60 Vibeholms Allé 15	Vibeholms Allé 15	Brøndby	2011 1961/2007	2,398	–	–	–	–	760	3,158	3,695	45,991 BRI
122 Park Allé 373	Park Allé 373	Brøndby	2015 1969	3,855	–	7,309	–	336 1,285		12,785	33,199	89,404 BRI	B
58 Hovedvejen 1-7	Hovedvejen 1-7	Glostrup	2011 2007	3,797	303	–	–		– 2,933	7,033	3,796	127,357 BRI

												Tax Mgmt.
			Acquis- Build/			Square metres per type of premises						assessment sub
Name of property 121 Generatorvej 6-8	Address Generatorvej 6-8/	Municipality Söborg	year Recon. year 2015 1970	Office 14,623	–	Retail Warehouse Industrial Residential Other 7,690	–		– 2,573	Total 24,886	Site sq.m. 25,110	value sidiary 211,480 BRI	Note B
123 Roholmsvej 19-21	Dynamovej 11 Roholmsvej 19-21/	Albertslund	2015 1991/2004	8,004	–	5,510	–	–	340	13,854	23,571	186,710 BRI
	Stensmosevej 15
59 Roskildevej 22 120 Marielundvej 10	Roskildevej 22 Marielundvej 10	Albertslund Herlev	2011 1970/1994 2014 1998	4,100 1,734	– –	2,114 645	– –	–	– 2,276 182	8,490 2,561	26,396 5,517	60,206 BRI 29,682 BRI
61 Transformervej 14-16	Transformervej 14-16	Herlev	2012 1972/1989	3,846	–	1,213	–	–	840	5,899	6,000	53,689 BRI
Total office/retail				260,785	50,714	71,771	3,299	985 24,578		412,132		715,685 3,591,101
WAREHOUSE/INDUSTRIAL
62 Benkammen 6	Skogholmsgatan 5	Malmö	2005 1994	–	–	12,997	–	–	–	12,997	30,100	54,705 BRI	B
63 Bjurö 12	Flintränneg. 21/Bjurög.	Malmö	<1995 1960/1974	2,979	–	11,479	8,198	–	390	23,046	35,500	75,677 BRI	T
65 Bjälken 3	Skruvgatan 8	Malmö	1998 1962	448	–	2,183	–	–	–	2,631	2,618	6,486 BRI
66 Dubbelknappen 17	Risyxegatan 6	Malmö	1998 1989	–	–	2,450	–	–	–	2,450	8,472	10,659 BRI	B
67 Finngrundet 1	Blidögatan 30	Malmö	1998 1966	–	–	7,490	–	–	–	7,490	10,000	20,008 BRI	T
68 Flygfyren 1	Flygfältsvägen 1	Malmö	2000 1950/2002	1,690	1,495	8,675	–	–	180	12,040	38,706	51,843 BRI	B
69 Gulsippan 1	Källvattengatan 5	Malmö	2001 1988	–	–	13,993	–	–	–	13,993	38,450	67,687 BRI	B
70 Haken 3	Vinkelgatan 5	Malmö	2008 1993	342	–	–	3,224	–	–	3,566	4,871	10,697 BRI	T
71 Hamnen 22:27	Mercurigatan 3	Malmö	<1995 1952/1976	–	–	–	–	–	–	–	545	299 BRI	T
72 Holkyxan 5	Bronsyxegatan 11	Malmö	<1995 1977/2000	–	–	6,510	–	–	–	6,510	13,035	22,179 BRI	T
73 Kalkgrundet 5	Borrgatan 15/Koksg 1-3/ Väderög.2	Malmö	<1995 1935/1985	669	–	6,734	–	–	–	7,403	14,274	23,809 BRI	T
75 Lillgrund 5	Borrg. 31/Flintränneg. 2	Malmö	2002 1952/1998	–	–	4,430	–	–	–	4,430	4,685	15,611 BRI
76 Långdansen 1	Sångleksgatan 9	Malmö	<1995 1980	–	–	1,200	–	–	–	1,200	10,042	8,903 BRI
77 Murman 7	Murmansg. 124/ Krusegatan 25	Malmö	<1995 1959/1987	1,120	–	5,184	–	–	–	6,304	10,400	18,698 BRI	T
78 Murman 11	Murmansg. 118-120/ Krusegatan 21	Malmö	1998 1960	2,925	–	5,412	–	–	100	8,437	6,475	23,085 BRI	T
79 Revolversvarven 9	Jägershillgatan 16	Malmö	1997 1985	–	–	3,900	–	–	–	3,900	10,932	19,030 BRI	T
114 Revolversvarven 10	Jägershillgatan 14	Malmö	2012 1988	–	–	3,600	–	–	–	3,600	15,570	30,551 BRI
80 Ringspännet 1	Kantyxeg. 5/ Knackstensgatan 1	Malmö	2002 2002	–	–	6,700	–	–	–	6,700	15,730	27,547 BRI
81 Sadelknappen 1	Sadelgatan 9	Malmö	1999 1979	–	–	2,000	–	–	–	2,000	5,284	8,153 BRI
82 Stångbettet 1	Travbanegatan 1/S krittgatan 11	Malmö	2000 1989	–	–	1,743	–	–	–	1,743	4,051	7,858 BRI
83 Tistlarna 9	Styrsögatan 4/Väderög./ Kocksg.	Malmö	2000 1991	1,451	–	14,050	–	–	–	15,501	31,020	52,413 BRI	T/B
84 Tågarp 16:22	Företagsvägen 14	Malmö	<1995 1968/1993	1,855	–	8,007	–	–	–	9,862	19,069	28,200 BRI
86 Akvamarinen 1	Diabasgatan 1	Helsingborg	2000 2007	–	–	4,713	–	–	–	4,713	10,000	25,432 BRI
87 Bergakungen 1	Måndagsgatan 6	Helsingborg	<1995 1990	478	–	2,465	–	–	–	2,943	6,799	11,295 BRI
88 Dolken 4	Mörsaregatan 16	Helsingborg	2004 1970/1985	410	–	2,586	–	–	–	2,996	8,240	9,187 BRI
89 Grusbacken 2	Makadamgatan 15	Helsingborg	2005 2005	–	–	–	13,300	–	–	13,300	27,950	62,480 BRI
90 Grusbädden 2	Mogatan 2-6	Helsingborg	<1995 1989	1,550	–	7,824	–	–	30	9,404	28,486	41,242 BRI
91 Grusbädden 3	Makadamgatan 16	Helsingborg	2007 2007/2010	–	–	–	13,705	–	–	13,705	29,334	62,400 BRI
92 Grusplanen 3	Makadamgatan 19-21	Helsingborg	2005 1990	–	–	2,735	–	–	–	2,735	7,292	10,993 BRI
93 Hyveljärnet 3	Lastgatan 9	Helsingborg	<1995 1990	–	–	2,276	–	–	–	2,276	6,014	9,597 BRI
117 Kniven 7	Florettgatan 9	Helsingborg	2014 1979	3,015	–	–	–	–	–	3,015	5,084	11,095 BRI
113 Kulan 3:2	Garnisionsgatan 5	Helsingborg	2010 2014	–	–	9,689	–	–	–	9,689	35,933	39,200 BRI
94 Mimer 12	S Tvärgången 3	Helsingborg	<1995 1960	–	–	34	–		– 3,733	3,767	11,721	– BRI	B
95 Nide 2	Rundgången 10	Helsingborg	<1995 1955/1985	1,824	–	3,703	1,179	–	–	6,706	17,285	21,966 BRI
96 Topasen 1	Andesitgatan 8	Helsingborg	2003 1989	–	–	–	8,558	–	–	8,558	33,786	44,821 BRI	B
97 Värjan 3	Garnisonsgatan 9	Helsingborg	2002 1969	301	695	3,485	–	–	–	4,481	17,923	15,938 BRI	B
98 Annedal 9 99 Råbyholm 5	Annedalsvägen 2 Landerigränden 2-4/	Lund Lund	<1995 1990 1999 1984	– 2,501	– –	1,296 7,908	– –	– –	– –	1,296 10,409	4,527 23,825	6,119 BRI 62,679 BRI
	Borgs väg 9
101 Välten 4	Traktorvägen 8	Lund	2003 2003	–	–	3,100	–	–	–	3,100	8,003	18,870 BRI
102 Välten 5	Traktorvägen 10	Lund	2003 1974/1995	–	–	3,645	–	–	–	3,645	8,381	12,120 BRI
103 Årdret 12	Höstbruksvägen 14	Lund	<1995 1990	–	–	2,049	–	–	–	2,049	6,206	7,890 BRI
104 Helgeshöj Allé 38 Total warehouse/industrial	Helgeshöj Allé 38	Taastrup	2012 1991	6,509 30,067	–	10,503 2,190 196,748	– 48,164	–	– 0 4,433	17,012 281,602	108,180	163,381 BRI 734,798 1,220,803	B
DEVELOPMENT PROJECTS
110 Ringspännet 5	Kantyxegatan 1 A	Malmö	2006 –	–	–	–	–	–	–	–	8,200	2,010 BRI
18 Skevrodret 1	Kabingatan 9	Malmö	2007 1978/1997	2,158	–	–	–	–	–	2,158	3,000	9,403 BRI
Total development projects				2,158	0	0	0	0	0	2,158	11,200	11,413

													Tax Mgmt.
			Acquis- Build/					Square metres per type of premises					assessment sub
Name of property	Address	Municipality	year Recon. year		Office			Retail Warehouse Industrial Residential Other			Total	Site sq.m.	value sidiary	Note
UNDEVELOPED LAND
116 Krukskärvan 6	Flintyxegatan 6	Malmö	2012	–	–	–	–	–	–	–	–	18,086	9,800 BRI	T/B
109 Moränen 1 & 2	Borrgatan 1	Malmö	<1995	–	–	–	–	–	–	–	–	11,281	6,208 BRI	B
111 Svedjenävan 4	Stenbärsgatan 2	Malmö	2006	–	–	–	–	–	–	–	–	3,398	2,038 BRI	T/B
112 Höjdpunkten 2	Östra Torn 27:2	Lund	2001	–	–	–	–	–	–	–	–	15,079	4,385 BRI	B
Total Undeveloped Land					0	0	0	0	0	0	0	47,844	22,431

Total Öresund Region 293,010 52,904 268,519 51,463 985 29,011 695,892 1,509,527 4,845,748

CASTELLUM 2015 REAL ESTATE SCHEDULE 127

Castellum's Real Estate Portfolio in Öresund Region 31-12-2015

	No. of properties	Area thous. sq.m	Rental value SEKm	Rental value SEK/sq.m	Economic occupancy rate	Rental income SEKm	Property costs SEKm	Property costs SEK/sq.m	Net operating income SEKm
Office/retail
Malmö	26	136	195	1,437	86.3%	168	47	350	121
Lund	16	109	171	1,567	84.1%	144	36	325	108
Helsingborg	14	85	87	1,022	83.0%	72	23	272	49
Copenhagen	9	82	89	1,088	81.4%	73	23	282	50
Total office/retail	65	412	542	1,316	84.3%	457	129	314	328
Warehouse/industrial
Malmö	22	156	110	704	83.1%	91	28	185	63
Helsingborg	14	88	68	776	91.4%	63	12	128	51
Lund	5	21	21	1,018	96.5%	20	3	162	17
Copenhagen	1	17	14	821	100.9%	14	4	228	10
Total warehouse/industrial	42	282	213	757	88.3%	188	47	168	141
Total	107	694	755	1,089	85.4%	645	176	255	469
Leasing and property administration							64	93	– 64
Total after leasing and property administration							240	348	405
Development projects	2	2	2	–	–	0	1	–	– 1
Undeveloped land	4	–	–	–	–	–	–	–	–
Total	113	696	757	–	–	645	241	–	404

Property related key ratios

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006
Rental value, SEK/sq.m.	1,089	1,078	1,121	1,107	1,065	1,060	1,063	989	971	932
Economic occupancy rate	85.4%	85.3%	85.0%	84.5%	85.2%	86.6%	86.5%	88.1%	87.7%	86.8%
Property costs, SEK/sq.m.	348	345	354	331	304	315	320	278	271	256
Net operating income, SEK/sq.m.	583	575	599	605	603	604	601	593	581	553
Number of properties	113	111	117	117	109	101	100	100	97	92
Lettable area, thousand sq.m.	696	646	737	726	678	646	620	621	602	587

Property value by property type Property value by municipality

	Greater Stockholm										Tax Mgmt.
			Acquis- Build/				Square metres per type of premises				assessment sub
Name of property OFFICE/RETAIL	Address	Municipality	year Recon. year	Office			Retail Warehouse Industrial Residential Other		Total	Site sq.m.	value sidiary	Note
2 Betongblandaren 3	Gårdsfogdevägen 16	Stockholm	2001 1971	2,955	2,782	665	– –	–	6,402	2,722	43,400 BRO
3 Betongblandaren 10	Archimedesv 1-3/Gårdsfog dev 8-10	Stockholm	2005 1975/1996	1,675	10,437	2,192	– –	30	14,334	15,170	111,565 BRO
4 Betongblandaren 12	Gårdsfogdevägen 18 B	Stockholm	1998 1972	7,056	–	366	– –	–	7,422	3,679	59,400 BRO
5 Betongblandaren 13	Adolfbergsvägen 15, 25-31	Stockholm	<1995 1989	7,317	2,335	1,310	– –	–	10,962	7,690	73,200 BRO	B
6 Domnarvet 18	Fagerstagatan 11-13	Stockholm	2012 1991	5,523	103	–	– –	260	5,886	6,640	– BRO	T
7 Domnarvet 36	Fagerstagatan 15	Stockholm	2012 1991	3,590	–	200	– –	–	3,790	3,071	26,078 BRO	T
27 Domnarvet 39	Gunnebogatan 24-26	Stockholm	<1995 1989	1,251	–	1,386	– –	–	2,637	1,940	17,811 BRO	T
8 Fredsfors 14	Karlsbodavägen 39-41	Stockholm	<1995 1960	11,169	–	6,864	–	– 1,443	19,476	7,073	108,377 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	13,984	2,765	6,745	– –	28	23,522	29,425	155,600 BRO	T
18 Getholmen 2	Måsholmstorget 1-13	Stockholm	<1995 1990	5,367	–	356	– –	–	5,723	3,195	47,600 BRO	T
19 Hästholmen 2	Ekholmsvägen 23	Stockholm	<1995 1985	1,220	–	–	– –	–	1,220	1,839	8,841 BRO	T
22 Tjurhornet 15	Huddingevägen 103-109	Stockholm	<1995 1986	18,623	575	3,943	– –	12	23,153	13,314	219,568 BRO	T
12 Hornsberg 10	Lindhagensgatan 133	Stockholm	2015 1985	10,165	390	547	3,840 –	10	14,952	4,578	239,582 BRO	T
23 Mandelblomman 15	Avestag 29/Kronofogdev 56 Stockholm		<1995 1950/1990	3,321	–	300	– –	–	3,621	4,364	22,413 BRO
24 Drevern 1 & Dvärgsp. 1 Gråhundsvägen 82-84		Stockholm	<1995 1970/1995	1,215	2,745	–	– –	–	3,960	5,729	25,400 BRO	T
25 Getholmen 1	Ekholmsvägen 32-36	Stockholm	1998 1982	5,851	–	2,250	– –	–	8,101	4,717	58,000 BRO	T
15 Marievik 27	Årstaängsvägen 17-19	Stockholm	2015 1956	10,251	1,175	40	– –	–	11,466	2,747	196,000 BRO	B
16 Marievik 30	Årstaängsvägen 17-19	Stockholm	2015 –	–	–	22	–	– 1,599	1,621	1,883	10,800 BRO
109 Rosteriet 5	Lövholmsv. 9, Trekantsv. 9	Stockholm	2012 1956	3,270	–	–	– –	–	3,270	2,390	43,400 BRO	T
28 Gräslöken 1	Anderstorpsvägen 20-26	Solna	2006 1976	6,142	681	233	– –	–	7,056	1,288	71,000 BRO	T
29 Råsten 4	Råstensg 1/Stureg 10	Sundbyberg	2007 1929/2001	2,700	–	–	– –	–	2,700	1,111	33,800 BRO	T
30 Yrket 4	Smidesvägen 10-12	Solna	2006 1982/1984	9,494	–	973	– –	378	10,845	8,774	121,000 BRO	B
31 Ekplantan 4	Djupdalsvägen 1-7	Sollentuna	1996 1990	8,385	1,291	139	– –	400	10,215	8,595	73,000 BRO	T
32 Ekstubben 21 & 23	Djupdalsvägen 10-22, 30-32 Sollentuna		1999 1989	6,063	–	212	– –	110	6,385	3,069	52,568 BRO
33 Ekstubben 25	Djupdalsvägen 24-26	Sollentuna	2011 1987/1988	1,050	–	–	– –	–	1,050	534	– BRO
37 Altartorpet 22	Jägerhorns Väg 6	Huddinge	1996 1986	818	1,267	630	– –	–	2,715	5,766	34,300 BRO	T
38 Altartorpet 23	Jägerhorns Väg 8	Huddinge	1996 1987	1,736	2,485	–	– –	–	4,221	5,755	54,800 BRO	T
39 Arrendatorn 15	Jägerhorns Väg 3-5	Huddinge	2001 1987	490	625	210	– –	–	1,325	2,422	9,794 BRO
40 Arrendatorn 16	Jägerhorns Väg 1	Huddinge	<1995 1987	628	747	130	– –	–	1,505	2,803	11,518 BRO
116 Myren 9	Smista Allé	Huddinge	2011 –	–	589	–	– –	–	589	12,035	1,775 BRO
43 Riggen 2	Botkyrkavägen 4	Huddinge	2012 1991	5,255	–	160	– –	32	5,447	5,901	37,200 BRO	T
113 Spejaren 3	Smista Allé	Huddinge	1997 2014	–	–	–	6,793 –	–	6,793	5,036	30,029 BRO	B
44 Varpen 8 C	Smista Allé 32	Huddinge	1997 2010	–	–	–	1,390 –	–	1,390	3,100	8,929 BRO
42 Varpen 8	Smista Allé 36	Huddinge	1997 2009	–	–	–	11,290 –	–	11,290	6,900	48,352 BRO
45 Visiret 2 A	Smista Allé 44	Huddinge	2004 2004	–	–	–	2,690 –	–	2,690	4,890	16,594 BRO	T
46 Visiret 2 B&C	Smista Allé 42	Huddinge	1997 2006	–	–	–	7,500 –	–	7,500	13,747	44,800 BRO	T
115 Visiret 2 D	Smista Allé	Huddinge	1997 2013	–	–	–	–	– 12,357	12,357	5,000	30,130 BRO	T
47 Visiret 2 F	Smista Allé 38-50	Huddinge	1997 2009	–	–	–	4,895 –	–	4,895	8,241	28,800 BRO	T
50 Veddesta 2:22	Nettovägen 7	Järfälla	<1995 1965/1975	508	–	–	– –	–	508	1,782	2,765 BRO
52 Veddesta 2:58	Fakturavägen 5	Järfälla	2007 1985/1995	980	–	–	– –	–	980	2,452	6,666 BRO
53 Veddesta 2:66	Girovägen 13	Järfälla	2010 1989	3,196	–	250	– –	8	3,454	7,422	23,415 BRO
54 Sicklaön 393:4	Vikdalsvägen 50	Nacka	<1995 1990	3,485	–	549	– –	–	4,034	10,819	42,822 BRO
Total office/retail				167,032	30,992	30,672	38,398	0 16,667	283,761		250,712 2,251,092
WAREHOUSE/INDUSTRIAL
56 Charkuteristen 5	Hallvägen 21	Stockholm	2001 1955	1,520	–	5,447	– –	–	6,967	4,213	11,348 BRO	T
57 Charkuteristen 6	Slakthusgatan 20	Stockholm	2001 1955	–	1,066	1,139	186 –	–	2,391	1,665	8,034 BRO	T
58 Charkuteristen 8	Slakthusgatan 22	Stockholm	2001 1968	548	–	4,667	– –	–	5,215	2,582	16,793 BRO	T
60 Sandhagen 6	Slakthusgatan 9	Stockholm	2001 1967	1,531	–	2,659	– –	–	4,190	1,728	15,464 BRO	T
61 Domnarvet 4	Domnarvsgatan 27-29	Stockholm	<1995 1987	1,682	–	5,427	– –	642	7,751	8,605	37,200 BRO	T
62 Domnarvet 27	Fagerstagatan 19 B	Stockholm	<1995 1982	–	–	–	1,970 –	–	1,970	4,337	11,665 BRO	T

63 Domnarvet 28 Fagerstagatan 19 C Stockholm 2010 1986 – – – 3,720 – – 3,720 7,272 19,992 BRO T

												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment sub
Name of property	Address	Municipality	year Recon. year	Office			Retail Warehouse Industrial Residential Other			Total	Site sq.m.	value sidiary	Note
64 Mandelblomman 16	Kronofogdevägen 62	Stockholm	2007 1974	1,011	–	1,938	940	–	–	3,889	4,125	15,650 BRO
65 Stensätra 7	Strömsätravägen 16	Stockholm	1999 1974	–	–	5,288	–	–	–	5,288	10,212	24,292 BRO	T
66 Dagskiftet 4	Elektravägen 10	Stockholm	2007 1945	358	–	1,352	–	–	–	1,710	1,892	7,871 BRO	T
67 Elektra 3	Västbergavägen 25	Stockholm	<1995 1946	1,144	280	6,652	–	–	–	8,076	10,106	41,985 BRO
68 Godståget 1	Transportvägen 7-9	Stockholm	<1995 1985	1,785	–	11,211	70	–	5	13,071	31,392	107,976 BRO	T
69 Furudal 4	Fagerstagatan 10	Stockholm	2010 2008	–	–	–	1,237	–	–	1,237	2,051	9,506 BRO	T
70 Lagerhallen 2	Brunnbyvägen 2-4/Parti handlarvägen 27-45	Stockholm	2004 1975	2,194	–	7,560	–		– 3,609	13,363	9,512	57,200 BRO	T
71 Ostmästaren 2	Ostmästargränd 4	Stockholm	2012 1980	–	–	–	3,292	–	–	3,292	5,915	22,000 BRO	T
72 Torngluggen 1	Bällstavägen 159/ Tornväktargränd 1-9	Stockholm	<1995 1963/1983	–	–	1,900	–	–	–	1,900	3,898	9,551 BRO	T
73 Tornluckan 1	Tornväktargränd 6	Stockholm	<1995 1960	–	–	810	–	–	–	810	927	3,144 BRO	T
74 Vagnhallen 19	Jämtlandsgatan 131	Stockholm	2006 1963/1974	–	–	–	5,544	–	–	5,544	5,177	22,371 BRO	T
108 Elementet 3	Bäckvägen 20	Sollentuna	2012 1963	722	–	1,597	799	–	–	3,118	2,624	13,769 BRO
76 Elementet 4	Bäckvägen 18	Sollentuna	<1995 1960	1,084	245	9,794	–	–	–	11,123	18,469	56,325 BRO
77 Revisorn 4	Bergkällavägen 33	Sollentuna	2011 1988	–	–	–	2,635	–	–	2,635	6,915	17,955 BRO	B
78 Tidskriften 2	Kuskvägen 2	Sollentuna	1997 1976	1,235	2,894	5,673	–	–	–	9,802	18,203	64,341 BRO
79 Rosersberg 2:21-22	Rosersbergsvägen 43-45	Sigtuna	1996 1990	–	–	2,126	–	–	–	2,126	5,240	12,047 BRO
81 Rosersberg 11:34	Tallbacksgatan 14	Sigtuna	1996 1987/1990	464	–	36,015	–	–	–	36,479	92,299	189,828 BRO
114 Rosersberg 11:94	Skansvägen 25	Sigtuna	2014 2008	–	–	9,353	–	–	–	9,353	19,971	61,400 BRO	B
83 Bredgården 1:7	Jättevägen 4	Järfälla	2010 1978	111	294	–	3,057	–	260	3,722	9,213	14,000 BRO
102 Veddesta 1:9	Fakturavägen 2	Järfälla	2007 1965	–	–	285	1,918	–	–	2,203	3,731	19,131 BRO
84 Veddesta 2:17	Nettovägen 9	Järfälla	2006 1968	–	–	1,338	–	–	–	1,338	5,350	7,527 BRO
85 Veddesta 2:19	Girovägen 9	Järfälla	<1995 1964	–	–	2,556	–	–	–	2,556	10,000	16,067 BRO
86 Veddesta 2:21	Nettovägen 5	Järfälla	<1995 1965/1988	460	–	1,495	–	–	–	1,955	5,000	9,705 BRO
87 Veddesta 2:26	Nettovägen 11	Järfälla	<1995 1968	465	190	2,288	–	–	–	2,943	7,000	15,224 BRO
88 Veddesta 2:49	Girov 11	Järfälla	2010 1981	–	–	1,329	2,350	–	–	3,679	9,250	22,281 BRO	T
89 Veddesta 2:50	Kontov 7/Veddestav 23-25	Järfälla	<1995 1964	1,339	–	2,884	565	–	–	4,788	21,889	32,164 BRO	B
90 Veddesta 2:60	Fakturavägen 4	Järfälla	2007 1987	175	–	155	644	–	–	974	1,099	4,561 BRO	T
91 Veddesta 2:68	Fakturavägen 6	Järfälla	2012 1990	239	–	–	2,546	–	–	2,785	2,801	13,136 BRO
92 Veddesta 2:77	Fakturavägen 1-3	Järfälla	2007 1994/1997	1,000	–	4,215	–	–	–	5,215	14,857	36,440 BRO
106 Elektronen 1	Hovslagarevägen 5	Sollentuna	2012 1957/1987	261	–	–	2,112	–	–	2,373	3,639	11,278 BRO
107 Elektronen 4	Hovslagarevägen 3A-B	Sollentuna	2012 1958/1992	855	–	1,267	1,710	–	–	3,832	5,273	19,255 BRO
34 Ringpärmen 3	Bergskällavägen 30	Sollentuna	2005 1986	895	–	2,047	997	–	240	4,179	7,918	23,091 BRO
41 Ellipsen 3	Ellipsvägen 11	Huddinge	2001 1993	2,319	–	1,139	–	–	–	3,458	3,904	16,828 BRO

– Dumpern 7	Speditionsvägen 36	Huddinge	2014 2009	–	–	6,792	–	–	–	6,792	12,035	36,605 BRO
112 Palissaden 4	Smista Allé 30	Huddinge	1997 2013	–	–	–	2,198	–	–	2,198	3,285	17,885 BRO
– Slipstenen 1	Fräsarv. 19/Slipstensv. 4-8	Huddinge	2012 2006	–	2,808	–	–	–	–	2,808	11,442	17,208 BRO
93 Skälby 2:9	Instrumentvägen 2	Uppl-väsby	2010 1984	697	–	–	2,486	–	–	3,183	7,720	19,997 BRO	T
94 Hantverkaren 2	Hantverkarvägen 9	Botkyrka	<1995 1976/1979	–	–	–	5,790	–	–	5,790	11,672	24,497 BRO	T
95 Kumla Hage 3	Kumla Gårdsväg 24 A-B	Botkyrka	<1995 1985	–	–	1,889	–	–	–	1,889	3,959	8,370 BRO
96 Kumla Hage 13	Kumla Gårdsväg 24 C	Botkyrka	<1995 1990	–	–	1,630	–	–	–	1,630	3,258	8,151 BRO
98 Saltmossen 3	Kumla Gårdsväg 21	Botkyrka	<1995 1983/1986	–	–	24,079	2,453	–	–	26,532	57,214	151,801 BRO
110 Segersby 1	Kumla Gårdsväg 10	Botkyrka	2012 1976	325	–	3,384	8,310	–	–	12,019	24,104	45,304 BRO
105 Åby 1:223	Cementvägen 7	Haninge	2011 2013	–	–	–	6,553	–	–	6,553	10,209	40,600 BRO
– Skarpnäs 5:10	Skarpövägen 14	Nacka	2010 2008	2,301	–	2,247	1,274	–	120	5,942	7,491	31,349 BRO
Total warehouse/industrial				26,720		7,777 181,627	65,356		0 4,876	286,356		542,643 1,520,162
DEVELOPMENT PROJECTS
1 Archimedes 1	Gårdsfogdevägen 2-6	Stockholm	1996 1979	11,328	2,144	4,345	310	–	–	18,127	13,663	100,479 BRO	B
11 Bangården 4	Huvudstagatan 5	Solna	2015 1968	5,465	–	–	300	–	–	5,765	1,977	53,204 BRO	T
Total development projects				16,793	2,144	4,345	610	0	0	23,892	15,640	153,683
UNDEVELOPED LAND
13 Kranbilen 2	Lyftkransvägen 11	Huddinge	2015 –	–	–	–	–	–	–	–	17,066	11,000 BRO	B
104 Smista Park	Smista Allé	Huddinge	2011 –	–	–	–	–	–	–	–	30,955	– BRO
17 Spejaren 4	Smista Allé	Huddinge	2011 –	–	–	–	–	–	–	–	23,499	46,000 BRO	B

35 Varpen 10	Smista Allé 36	Huddinge	2011 –	–	–	–	–	–	–	–	5,715	– BRO
36 Varpen 11	Smista Allé 36	Huddinge	2011 –	–	–	–	–	–	–	–	6,082	– BRO	B
48 Visiret 3	Smista Allé	Huddinge	2011 –	–	–	–	–	–	–	–	3,122	4,120 BRO	B
49 Visiret 4	Smista Allé	Huddinge	2011 –	–	–	–	–	–	–	–	2,566	3,386 BRO	B
35 Rosersberg 11:130	Metallvägen	Sigtuna	2015 –	–	–	–	–	–	–	–	23,315	– BRO	B
59 Linde Torp 8	Bolidenvägen 8-10	Stockholm	<1995 –	–	–	–	–	–	–	–	5,537	6,050 BRO	B
36 Vallonsmidet 11	Gårdsfogdevägen 1-7	Stockholm	<1995 –	–	–	–	–	–	–	–	–	8,200 BRO	B
Total undeveloped land				0	0	0	0	0	0	0	117,857	78,756
Total Greater Stockholm				210,545		40,913 216,644 104,364			0 21,543	594,009		926,852 4,003,693

Castellum's Real Estate Portfolio in Greater Stockholm 31-12-2015

	No. of properties	Area thous. sq.m	Rental value SEKm	Rental value SEK/sq.m	Economic occupancy rate	Rental income SEKm	Property costs SEKm	Property costs SEK/sq.m	Net operating income SEKm
Office/retail
North	6	23	30	1,325	83.7%	25	6	287	19
West	15	136	195	1,438	89.4%	175	45	329	130
South	22	125	187	1,494	90.9%	170	33	262	137
Total office/retail	43	284	412	1,453	89.7%	370	84	296	286
Warehouse/industrial
North	22	121	123	1,017	93.8%	115	24	199	91
West	8	27	25	935	88.2%	22	6	228	16
South	21	139	147	1,058	90.4%	133	30	213	103
Total warehouse/industrial	51	287	295	1,029	91.7%	270	60	208	210
Total	94	571	707	1,240	90.5%	640	144	252	496
Leasing and property administration							47	82	– 47
Total after leasing and property administration							191	334	449
Development projects	2	23	29	–	–	10	6	–	4
Undeveloped land	10	–	–	–	–	–	–	–	–
Total	106	594	736	–	–	650	197	–	453

Property related key ratios

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006
Rental value, SEK/sq.m.	1,240	1,199	1,198	1,203	1,181	1,154	1,175	1,144	1,090	1,038
Economic occupancy rate	90.5%	85.4%	83.1%	82.8%	82.2%	82.8%	84.8%	84.0%	81.2%	81.3%
Property costs, SEK/sq.m.	334	326	337	344	362	345	347	343	325	338
Net operating income, SEK/sq.m.	788	697	658	652	609	611	650	618	560	506
Number of properties	106	106	105	109	100	97	90	90	87	80
Lettable area, thousand sq.m.	594	649	639	650	573	569	534	535	517	501

Property value by property type Property value by municipality

Mälardalen Tax Mgmt.

			Acquis- Build/				Square metres per type of premises				assessment sub
Name of property	Address	Municipality	year Recon. year	Office			Retail Warehouse Industrial Residential Other		Total	Site sq.m.	value sidiary	Note
OFFICE/RETAIL
1 Boländerna 5:12	Fålhagsleden 51	Uppsala	2010 1983/1996	5,984	–	286	– –	–	6,270	15,251	42,380 ASP	B
2 Boländerna 8:6	Knivstagatan 6	Uppsala	2008 1990	2,431	–	18	– –	–	2,449	3,806	20,674 ASP
3 Boländerna 8:11	Bergsbrunnagatan 15	Uppsala	2008 1975	3,989	485	3,376	– –	–	7,850	11,535	16,853 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	14,509 ASP	B
6 Boländerna 28:3	Stångjärnsgatan 10	Uppsala	2000 1971	–	24,655	1,064	– –	–	25,719	64,871	241,200 ASP	B
8 Boländerna 28:4 A	Stångjärnsgatan 8B	Uppsala	2003 1987	–	–	4,100	– –	–	4,100	10,981	44,592 ASP	B
7 Boländerna 28:4 B	Verkstadsgatan 11	Uppsala	2003 2002	2,124	–	–	– –	–	2,124	4,500	25,000 ASP
9 Boländerna 35:1	Bolandsgatan 18	Uppsala	2006 2006	–	8,466	250	– –	–	8,716	26,193	71,018 ASP	B
11 Boländerna 36:2	Danmarksgatan 20	Uppsala	2011 1982	360	1,581	396	– –	–	2,337	3,204	15,400 ASP
12 Dragarbrunn 16:2	Dragarbrunns Torg 2-6/	Uppsala	2004 1963	4,616	1,798	184	– –	129	6,727	2,209	119,000 ASP
13 Dragarbrunn 20:2	Klostergatan 13-15 Kungsgatan 43/	Uppsala	1999 1963	2,479	767	46	– –	–	3,292	921	– ASP
	St Persgatan 17
14 Dragarbrunn 20:4	Dragarbrunnsgatan 34	Uppsala	2010 2010/2014	9,375	3,134	456	– 1,305	–	14,270	4,472	104,400 ASP
120 Dragarbrunn 21:1 & 21:5 S:t Persgatan 21		Uppsala	2012 1970	6,516	–	617	– –	–	7,133	4,747	8,930 ASP	B
17 Kungsängen 35:3	Kungsgatan 76	Uppsala	1998 2001	3,030	–	–	– –	–	3,030	4,547	32,234 ASP
18 Kvarngärdet 64:3	Sportfältsvägen 3	Uppsala	1996 1991	1,959	–	15	– –	–	1,974	2,955	14,475 ASP
19 Årsta 36:2	Möllersvärdsgatan 12	Uppsala	<1995 1978/1989	1,319	–	1,538	– –	–	2,857	5,143	19,816 ASP
21 Årsta 67:1	Stålgatan 8-12	Uppsala	<1995 1988	540	9,962	932	– –	–	11,434	31,608	85,951 ASP
22 Årsta 72:3	Svederusgatan 1-4	Uppsala	1997 1990	1,817	1,792	1,136	3,511 –	224	8,480	10,792	44,770 ASP
23 Årsta 74:1	Fyrislundsgatan 68	Uppsala	1999 1985	177	6,665	6	– –	–	6,848	15,268	37,000 ASP
24 Årsta 74:3	Axel Johanssons Gata 4-6	Uppsala	<1995 1990	13,088	238	321	– –	753	14,400	17,212	83,000 ASP
25 Årsta 78:1	Fyrislundsgatan 73	Uppsala	2011 2000	2,838	–	–	– –	–	2,838	4,156	16,146 ASP
26 Basen 10	Fridhemsgatan 2-4	Örebro	<1995 1900/1990	6,244	–	–	– –	–	6,244	4,997	39,200 ASP
27 Borgaren 1	Fabriksgatan 1 A	Örebro	2008 1969/2001	6,545	–	1,100	– –	847	8,492	3,375	63,548 ASP
123 Bromsgården 1	Drottninggatan 11	Örebro	2015 1929	1,187	1,269	33	– 566	–	3,055	1,144	27,227 ASP
124 Gillet 22	Olaigatan 15	Örebro	2015 1978	4,591	562	9	– –	362	5,524	1,217	49,400 ASP
125 Hållstugan 28	Kungsgatan 3	Örebro	2015 1929	1,889	2,167	–	– 1,272 2,462		7,790	7,149	64,627 ASP
28 Inköparen 1	Rörvägen 1	Örebro	2007 2008	3,586	5,853	–	– –	–	9,439	22,500	81,054 ASP
– Järnmalmen 1	Osmundgatan 10	Örebro	2006 1967/1995	2,695	–	8,249	– –	–	10,944	47,714	31,768 ASP	B
30 Konstruktören 11	Söderleden 14	Örebro	<1995 1987	2,255	–	–	– –	–	2,255	7,876	9,915 ASP
31 Kontrollanten 9	Åbyvägen 3	Örebro	2007 1992	3,679	–	1,106	– –	–	4,785	11,974	15,881 ASP
32 Lagerchefen 3	Aspholmsvägen 3	Örebro	1996 1957/1985	–	1,900	–	– –	–	1,900	9,213	12,961 ASP	B
33 Lantmannen 7	Boställsvägen 10	Örebro	<1995 1985	72	2,248	250	– –	–	2,570	8,573	10,117 ASP
114 Litografen 1&2	Adolfsbergsvägen 4	Örebro	2012 1964	3,710	7,414	9,960	– –	957	22,041	122,107	120,127 ASP
34 Motormannen 1 126 Prästgården 12	Radiatorvägen 1 Drottninggatan 18-20	Örebro Örebro	<1995 1966 2015 1933	284 5,042	3,436 367	410 120	– – – 384	12 605	4,142 6,518	10,501 2,861	17,875 ASP 63,695 ASP
35 Röda rummet	Radiatorvägen 17	Örebro	1996 2000	3,405	–	–	– –	–	3,405	7,710	24,650 ASP
36 Rörläggaren 1	Aspholmsvägen 4	Örebro	<1995 1963/1992	–	–	–	4,480 –	–	4,480	15,881	21,686 ASP	B
37 Rörmokaren 1	Elementvägen 13-15	Örebro	<1995 1963/1986	110	–	–	3,735 –	–	3,845	10,432	16,338 ASP
38 Rörmokaren 5	Elementvägen 1	Örebro	<1995 1984	1,297	1,023	–	– –	–	2,320	6,656	12,088 ASP
40 Stinsen 18	Fabriksgatan 18-22	Örebro	2008 1983/2003	11,942	–	103	– –	277	12,322	5,008	103,600 ASP	B
41 Svetsaren 4	Elementvägen 12	Örebro	<1995 1976/1984	176	1,695	2,393	– –	–	4,264	9,644	16,897 ASP
42 Svetsaren 5	Elementvägen 14	Örebro	<1995 1977/1988	2,970	–	150	– –	–	3,120	7,355	12,417 ASP
43 Svetsaren 6	Radiatorvägen 14	Örebro	2000 1962	5,625	–	–	– –	–	5,625	7,956	50,855 ASP
44 Svetsaren 7	Elementvägen 16	Örebro	<1995 1960/1983	675	–	180	– –	–	855	2,658	5,179 ASP
45 Svetsaren 8	Elementvägen 4	Örebro	<1995 1977	570	3,060	220	– –	–	3,850	8,074	12,477 ASP
46 Svänghjulet 1	Stubbengatan 2	Örebro	2010 2004	4,755	1,660	2,378	– –	250	9,043	24,143	34,052 ASP	B
47 Telemontören 1	Nastagatan 2	Örebro	2007 1993	3,620	–	2,882	– –	–	6,502	30,750	19,406 ASP	B
48 Tryckeriet 2	Stortorget 8	Örebro	2008 1984/1999	1,400	847	–	– –	387	2,634	1,350	26,724 ASP
49 Tågmästaren 25	Fabriksgatan 54	Örebro	2008 1986	6,225	–	1,167	– –	6	7,398	8,110	34,400 ASP	B
51 Virkeshandlaren 7	Radiatorvägen 11	Örebro	<1995 1970/1987	5,911	–	270	– –	–	6,181	15,377	27,175 ASP
52 Virkeshandlaren 10	Radiatorvägen 13-15	Örebro	1996 1979	2,683	3,565	1,080	– –	–	7,328	20,242	30,498 ASP
53 Ånsta 20:117	Aspholmsvägen 9	Örebro	1996 1990	755	–	–	– –	–	755	1,907	3,742 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	16,700 ASP
56 Ölstånkan 15	Olaigatan 4	Örebro	2008 1975/2003	3,101	–	–	– –	–	3,101	1,517	23,000 ASP
57 Blästerugnen 2	Kokillgatan 7	Västerås	1997 1991	–	1,894	–	– –	–	1,894	11,045	8,938 ASP	T
58 Dagsländan 11	Jonasborgsvägen 26	Västerås	1996 1990	1,106	–	–	– –	–	1,106	3,651	6,261 ASP	T
59 Degeln 1	Kokillgatan 1-3	Västerås	1996 1984	4,599	1,050	700	181 –	–	6,530	26,917	21,734 ASP	T
60 Elenergin 1	Elledningsgatan 2	Västerås	2008 1976	119	466	–	4,498 –	–	5,083	26,290	18,763 ASP	B
61 Elledningen 4	Tunbytorpsgatan 31	Västerås	<1995 1991	3,586	–	–	– –	–	3,586	10,256	20,460 ASP
62 Fallhammaren 1	Fallhammargatan 3	Västerås	<1995 1989	2,425	–	1,655	407 –	–	4,487	10,700	17,729 ASP
63 Friledningen 13	Tunbytorpsgatan 10	Västerås	1999 1978	390	1,440	750	– –	–	2,580	7,000	11,864 ASP	T

												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment sub
Name of property	Address	Municipality	year Recon. year	Office			Retail Warehouse Industrial Residential Other			Total	Site sq.m.	value sidiary	Note
64 Gjutjärnet 7	Gjutjärnsgatan 5	Västerås	<1995 1989	–	2,005	247	260	–	135	2,647	10,517	8,015 ASP
65 Hjulsmeden 1	Gjutjärnsgatan 8	Västerås	<1995 1990	–	1,112	871	–	–	–	1,983	5,625	8,599 ASP
66 Jordlinan 2	Stenbygatan 6	Västerås	<1995 1991	179	2,050	6,155	480	–	–	8,864	21,467	27,264 ASP	B
67 Kokillen 1	Kokillgatan 2	Västerås	1996 1988	545	1,165	1,295	–	–	–	3,005	11,975	13,386 ASP	T
68 Kopparlunden	Kopparlunden	Västerås	2001 1890/2000	19,142	–	–	1,524	–	–	20,666	10,256	119,069 ASP
69 Kraftfältet 5	Omformargatan 2	Västerås	2005 1991	715	836	1,640	729	–	–	3,920	11,221	15,950 ASP
70 Köpmannen 1	Kranbyggargatan 1	Västerås	<1995 1984	–	320	–	1,095	–	–	1,415	5,804	7,303 ASP
71 Köpmannen 3	Kranbyggargatan 3	Västerås	<1995 1982	–	875	–	1,545	–	–	2,420	10,073	12,006 ASP	T
72 Ringborren 8&16	Tallmätargatan 1	Västerås	<1995 1956/1988	4,987	–	–	–	–	–	4,987	9,019	14,239 ASP
73 Tunbytorp 1	Strömledningsgatan 1	Västerås	2005 1965	410	3,797	524	1,278	–	–	6,009	27,584	23,382 ASP
74 Tunbytorp 7	Strömledningsgatan 3	Västerås	2005 1965	–	360	1,901	5,674	–	–	7,935	31,990	32,271 ASP	T
75 Tunbytorp 19	Tunbytorpsgatan 2 A	Västerås	2005 1990	1,982	–	–	–	–	–	1,982	11,782	6,745 ASP
76 Verkstaden 14	Kopparlunden	Västerås	2001 2001	6,692	–	–	–	–	–	6,692	40,900	39,934 ASP
127 Verkstaden 15	Legeringsgatan 2	Västerås	2015 1977/1992	1,071	–	–	–	–	–	1,071	2,960	– ASP	B
77 Vikingatiden 9	Brandthovdagatan 17 A	Västerås	2007 2004	173	–	438	173	–	–	784	3,477	3,124 ASP
Total office/retail					218,040 113,979 64,094		29,570 3,527 7,406				436,616 1,009,876 2,622,463
WAREHOUSE/INDUSTRIAL
129 Boländerna 11:4	Björkgatan 67 B	Uppsala	2015 1960/2003	600	–	–	1,370	–	230	2,200	5,290	– ASP	B
78 Boländerna 12:1	Danmarksgatan 24	Uppsala	2011 1979	520	–	4,440	1,730	–	–	6,690	14,136	32,284 ASP	B
79 Husbyborg 1:83	Gamla Börjevägen 4	Uppsala	2008 1972/1988	–	218	747	5,969	–	–	6,934	14,543	37,752 ASP
20 Årsta 36:7	Hanselligatan 6	Uppsala	2007 1986	388	–	1,873	–	–	–	2,261	3,358	13,526 ASP
80 Årsta 38:1	Möllersvärdsgatan 5	Uppsala	<1995 1979	–	–	–	2,960	–	–	2,960	8,572	18,160 ASP	B
81 Barkborren 3	Barkborregatan 3	Västerås	<1995 1970/1989	–	–	–	2,950	–	–	2,950	10,000	8,748 ASP	T
82 Elkraften 4	Tunbytorpsgatan 16	Västerås	2005 1976	–	–	946	–	–	–	946	5,673	4,100 ASP	T
83 Elkraften 6	Elledningsgatan 4	Västerås	2008 1981	–	–	1,150	–	–	–	1,150	8,025	4,765 ASP	T
84 Elkraften 7	Energigatan 3 A	Västerås	2005 1976	250	–	–	1,070	–	–	1,320	5,073	4,373 ASP	T
85 Elledningen 1	Tunbytorpsgatan 29	Västerås	1999 1982	–	1,200	710	–	–	–	1,910	8,300	7,225 ASP	T
86 Friledningen 8	Tunbytorpsgatan 6	Västerås	2005 1971	235	–	568	1,539	–	–	2,342	11,243	8,133 ASP	T
87 Friledningen 9	Tunbytorpsgatan 8	Västerås	2005 1968	647	940	2,115	1,500	–	–	5,202	9,995	18,990 ASP

122 Drottningparken 130 Litografen 1& 2 B 121 Olaus Petri 3:244 (del av)Östra Bangatan Total undevelopment projects	Fabriksgatan Adolfsbergsvägen 4	Örebro Örebro	2012 – 2014 –	9,350 3 21,048	– – 4,118	– – 4,315	– – 1,933	– – 0	– – 201	9,350 3 31,615	– 5,000 102,952	– ASP 15,000 ASP 90,814	B B


		Örebro	2014 –	4,237	–	–	–	–	–	4,237	8,000	– ASP
128 Bleckslagaren 7	Vattenverksgatan 2	Örebro	2015 –	1,295	–	4,315	–	–	200	5,810	22,160	24,488 ASP	B
76 Verkstaden 14	Kopparlunden	Västerås	2001 2001	6,163	–	–	–	–	–	6,163	1	– ASP	B
95 Tunbytorp 2	Tunbytorpsgatan 4	Västerås	2005 1970	–	–	–	1,933	–	–	1,933	19,191	12,376 ASP	B
93 Ledningstråden 6	Tunbytorpsgatan 23	Västerås	2005 1970	–	–	–	–	–	–	–	8,000	3,550 ASP	T/B
131 Husbyborg 1:83 B	Gamla Börjevägen 4	Uppsala	2008 –	–	–	–	–	–	1	1	31,000	– ASP	B
10 Boländerna 35:2	Bolandsgatan 20	Uppsala	<1995 1981	–	4,118	–	–	–	–	4,118	9,600	35,400 ASP	B
DEVELOPMENT PROJECTS
Total warehouse/industrial				19,665	5,844	93,752	67,820	0	526	187,607	619,622	678,485
– Ånsta 20:148	Berglunda 208	Örebro	2007 1971/1999	1,380	–	2,805	–	–	–	4,185	44,237	23,281 ASP	B
115 Rörläggaren 2	Aspholmsvägen 6	Örebro	2004 1984	–	–	2,955	–	–	–	2,955	4,960	12,387 ASP
113 Kontrollanten 12	Skomaskinsgatan 6	Örebro	2012 1981	3,859	–	6,982	–	–	–	10,841	30,946	33,400 ASP
112 Konstruktören 10	Söderleden 12	Örebro	<1995 1987	–	–	–	3,665	–	–	3,665	10,649	16,630 ASP
111 Konstruktören 9	Söderleden 10	Örebro	1996 1987	–	–	1,260	–	–	–	1,260	3,573	5,838 ASP
– Gällersta-Gryt 4:9	Gällerstavägen	Örebro	<1995 1969	–	–	–	11,625	–	–	11,625	42,143	24,606 ASP
109 Grosshandlaren 2	Nastagatan 6-8	Örebro	2001 1977	2,008	1,955	19,170	–	–	–	23,133	61,695	93,028 ASP	B
107 Försäljaren 2	Nastagatan 9	Örebro	2012 2008	–	–	3,049	–	–	–	3,049	9,545	18,130 ASP	B
108 Elektrikern 3	Vattenverksgatan 3	Örebro	2012 1972	–	–	8,440	–	–	–	8,440	18,823	17,800 ASP
– Däcket 1	Dialoggatan 14	Örebro	2008 2012	–	–	740	1,128	–	–	1,868	7,184	10,448 ASP
105 Distributören 7	Krangatan 11	Örebro	2012 1989	795	–	6,795	–	–	–	7,590	24,675	24,185 ASP
104 Chauffören 3	Pikullagatan 9	Örebro	2006 1991	–	–	–	1,577	–	–	1,577	5,442	5,519 ASP

												Tax Mgmt.
			Acquis- Build/				Square metres per type of premises					assessment sub
Name of property	Address	Municipality	year Recon. year	Office			Retail Warehouse Industrial Residential Other			Total	Site sq.m.	value sidiary	Note
118 Högspänningen 1	Lågspänningsgatan 8	Västerås	2007 2014	–	–	–	3 911	–	–	3 911	22 500	27 800 ASP	B
89 Järnåldern 6	Brandthovdagatan 11	Västerås	2008 1982	476	–	629	777	–	45	1,927	5,967	7,426 ASP	T
– Krista 1	Saltängsvägen 59	Västerås	2004 2005	–	–	–	2,980	–	–	2,980	11,500	17,398 ASP
91 Köpmannen 8	Lundby Gårdsgata 4	Västerås	2004 1988	–	–	351	2,334	–	–	2,685	9,957	10,510 ASP
92 Ledningstråden 1	Tunbytorpsgatan 1-3	Västerås	2005 1967	520	1,011	4,541	–	–	–	6,072	27,410	20,961 ASP	T
94 Lufthammaren 1	Ånghammargatan 2-4	Västerås	1996 1977	3,894	–	1,803	1,646	–	–	7,343	17,055	20,642 ASP	T
96 Tunbytorp 8	Friledningsgatan 3 A	Västerås	2005 1970	–	–	830	–	–	–	830	5,825	3,714 ASP
97 Tunbytorp 10	Tunbytorpsgatan 4 A	Västerås	2005 1978	957	–	6,324	–	–	211	7,492	24,663	20,400 ASP
98 Voltmätaren 3	Lågspänningsgatan 7	Västerås	2006 1990	–	–	–	760	–	–	760	2,254	2,645 ASP
99 Ånghammaren 2	Ånghammargatan 1-9	Västerås	1996 1972/1994	1,181	520	4,744	6,996	–	40	13,481	35,738	32,101 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	16,096 ASP	B
102 Bleckslagaren 8	Vattenverksgatan 8	Örebro	2006 1978/2001	–	–	–	4,750	–	–	4,750	24,878	20,017 ASP	B
103 Chauffören 2	Stuvargatan 3	Örebro	1997 1991	500	–	6,600	–	–	–	7,100	16,974	24,435 ASP
104 Chauffören 3	Pikullagatan 9	Örebro	2006 1991	–	–	–	1,577	–	–	1,577	5,442	5,519 ASP
105 Distributören 7	Krangatan 11	Örebro	2012 1989	795	–	6,795	–	–	–	7,590	24,675	24,185 ASP
– Däcket 1	Dialoggatan 14	Örebro	2008 2012	–	–	740	1,128	–	–	1,868	7,184	10,448 ASP
108 Elektrikern 3	Vattenverksgatan 3	Örebro	2012 1972	–	–	8,440	–	–	–	8,440	18,823	17,800 ASP
107 Försäljaren 2	Nastagatan 9	Örebro	2012 2008	–	–	3,049	–	–	–	3,049	9,545	18,130 ASP	B
109 Grosshandlaren 2	Nastagatan 6-8	Örebro	2001 1977	2,008	1,955	19,170	–	–	–	23,133	61,695	93,028 ASP	B
– Gällersta-Gryt 4:9	Gällerstavägen	Örebro	<1995 1969	–	–	–	11,625	–	–	11,625	42,143	24,606 ASP
111 Konstruktören 9	Söderleden 10	Örebro	1996 1987	–	–	1,260	–	–	–	1,260	3,573	5,838 ASP
112 Konstruktören 10	Söderleden 12	Örebro	<1995 1987	–	–	–	3,665	–	–	3,665	10,649	16,630 ASP
113 Kontrollanten 12	Skomaskinsgatan 6	Örebro	2012 1981	3,859	–	6,982	–	–	–	10,841	30,946	33,400 ASP
115 Rörläggaren 2	Aspholmsvägen 6	Örebro	2004 1984	–	–	2,955	–	–	–	2,955	4,960	12,387 ASP
– Ånsta 20:148	Berglunda 208	Örebro	2007 1971/1999	1,380	–	2,805	–	–	–	4,185	44,237	23,281 ASP	B
Total warehouse/industrial				19,665	5,844	93,752	67,820	0	526	187,607	619,622	678,485
DEVELOPMENT PROJECTS

Castellum's Real Estate Portfolio in Mälardalen 31-12-2015

		Area	Rental	Rental	Economic	Rental	Property	Property	Net
	No. of	thous.	value	value	occupancy	income	costs	costs	operating
Office/retail	properties	sq.m	SEKm	SEK/sq.m	rate	SEKm	SEKm	SEK/sq.m	income SEKm
Uppsala	22	148	213	1,441	89.5%	190	51	349	139
Örebro	34	189	208	1,098	94.9%	198	58	303	140
Västerås	22	100	112	1,124	85.8%	96	29	292	67
Total office/retail	78	437	533	1,220	90.8%	484	138	316	346
Warehouse/industrial
Västerås	18	67	54	818	86.8%	47	15	231	32
Örebro	16	100	67	671	88.8%	60	16	162	44
Uppsala	5	21	23	1,066	93.3%	21	5	215	16
Total warehouse/industrial	39	188	144	767	88.7%	128	36	193	92
Total	117	625	677	1,084	90.4%	612	174	279	438
Leasing and property administration							35	55	– 35
Total after leasing and property administration							209	334	403
Development projects	9	31	14			6	5		1
Total	126	656	691	–	–	618	214	–	404

Property related key ratios

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006
Rental value, SEK/sq.m.	1,084	1,040	977	967	982	934	928	859	807	778
Economic occupancy rate	90.4%	90.8%	90.5%	92.7%	92.6%	90.6%	92.4%	93.0%	89.3%	88.4%
Property costs, SEK/sq.m.	334	322	324	312	340	325	329	268	247	258
Net operating income, SEK/sq.m.	646	622	560	584	570	521	528	531	474	429
Number of properties	126	118	114	120	120	116	115	117	101	91
Lettable area, thousand sq.m.	656	617	617	624	560	545	516	519	432	410

Property value by property type Property value by municipality

	Eastern Götaland												Tax Mgmt.
				Acquis- Build/				Square metres per type of premises					assessment sub
	Name of property OFFICE/RETAIL	Address	Municipality	year Recon. year	Office			Retail Warehouse Industrial Residential Other			Total	Site sq.m.	value sidiary	Note
	87 Atollen 3	Lantmätargränd 53-63	Jönköping	2011 2013	2,790	2,404	–	–	765	5	5,964	890	90,051 COR
	97 Algen 1	Lantmätargränd 42	Jönköping	2013 –	–	4,236	–	–	–	162	4,398	2,749	60,400 COR
	1 Droskan 12	Slottsgatan 14	Jönköping	1998 1990	9,394	–	–	–	–	–	9,394	4,951	98,400 COR
	2 Elektronen 1	Datorgatan 6	Jönköping	2008 2000	–	–	1,692	–	–	–	1,692	4,237	7,311 COR	B
	3 Hotellet 8	V Storgatan 9-13	Jönköping	<1995 1963/1999	2,952	15,701	296	–	–	–	18,949	5,121	208,000 COR
	4 Vagnmakaren 7	Hästhovsvägen 2	Jönköping	<1995 1983/2001	–	9,531	–	–	–	14	9,545	19,226	63,400 COR
	36 Vakten 11	Batterigatan 2	Jönköping	2015 2009	5,261	1,672	–	–	–	–	6,933	10,947	– COR
	5 Valutan 11	Kompanigatan 1-2	Jönköping	<1995 1992/2001	3,142	1,606	788	–	–	5	5,541	7,763	70,600 COR
	6 Varuhuset 1	Batterigatan 2	Jönköping	2009 2009	–	11,041	–	–	–	–	11,041	42,046	118,000 COR
	75 Vattenpasset 2	Ekhagsringen 17	Jönköping	<1995 1980	1,299	–	1,749	1,073	–	–	4,121	17,884	– COR
	8 Vilan 7	Huskvarnavägen 58-64	Jönköping	2000 1955/1999	8,946	1,093	4,450	–	–	–	14,489	25,576	72,450 COR
	76 Vingen 4	Linnegatan 1	Jönköping	<1995 1970	1,322	530	–	1,883	–	–	3,735	17,281	14,347 COR	B
	9 Visionen 3 A	Bataljonsgatan 10-12	Jönköping	2004 2010	7,406	–	299	–	–	–	7,705	12,269	106,800 COR
	10 Visionen 3 B	Bataljonsgatan 10	Jönköping	2004 1996/1995	9,731	–	423	–	–	–	10,154	27,162	48,612 COR
	96 Visionen 3 C	Bataljonsgatan 10	Jönköping	2004 –	2,472	–	–	–	–	–	2,472	–	– COR
	11 Vågskålen 3	Huskvarnavägen 40	Jönköping	2003 1983	8,439	–	7,580	–	–	51	16,070	42,536	39,360 COR
	12 Vägporten 5	Vasavägen 4	Jönköping	2003 1955/2004	251	2,076	–	–	–	–	2,327	8,458	12,392 COR
	13 Ögongloben 5	Gräshagsgatan 11	Jönköping	2006 1961	3,512	–	–	–	–	–	3,512	7,346	7,261 COR
	14 Örontofsen 5	Granitvägen 7-9	Jönköping	2006 1976	1,053	880	3,641	–	–	–	5,574	15,061	28,755 COR
	89 Gården 15	Gillbergagatan 37-45	Linköping	2009 2013	6,105	–	3,600	–	–	–	9,705	34,706	65,200 COR
	47 Idémannen 1	Teknikringen 16	Linköping	2007 1990	580	–	–	–	–	–	580	4,212	4,959 COR
	48 Idémannen 2, Collegium	Teknikringen 7	Linköping	2007 1989	12,922	4,136	–	–	–	45	17,103	27,823	122,600 COR
	49 Idémannen 2, Datalinjen	Datalinjen 1	Linköping	2007 1989/1994	1,593	–	–	–	–	–	1,593	4,590	10,363 COR
	50 Idémannen 2, TeknikringenTeknikringen 1 A-F		Linköping	2007 1984/1996	6,521	–	–	–	–	49	6,570	19,720	43,346 COR
	51 Idémannen 2, Vita Huset	Universitetsvägen 14	Linköping	2007 2002	8,136	–	–	–	–	–	8,136	29,597	69,200 COR	B
	98 Jägmästaren 1	Djurgården	Linköping	2013 –	–	8,774	–	–	–	–	8,774	36,750	54,109 COR
	52 Magnetjärnet 6	Finnögatan 5 C	Linköping	2010 1996	2,388	–	–	–	–	–	2,388	8,328	10,623 COR	B
	Total office/retail				106,215	63,680	24,518	2,956	765	331	198,465		437,229 1,426,539
	WAREHOUSE/INDUSTRIAL
	– Flahult 21:3	Momarken 42	Jönköping	2001 1980	–	–	3,824	–	–	–	3,824	24,177	15,383 COR	B
	– Flahult 21:5	Betavägen 17	Jönköping	2012 1997/2008	–	–	9,023	–	–	–	9,023	36,847	29,288 COR	B
	74 Vargön 4	Vasavägen 5	Jönköping	2003 1989	–	–	3,500	570	–	–	4,070	6,694	12,763 COR
	88 Ättehögen 18	Fordonsvägen 8	Jönköping	2012 2013	–	–	–	3,334	–	–	3,334	11,009	17,794 COR
	78 Österbotten 4	Skeppsbrogatan 6	Jönköping	<1995 1930/1991	503	–	162	2,279	–	–	2,944	6,972	8,319 COR
	79 Överlappen 13	Kalkstensgatan 6-8	Jönköping	2004 1977/1995	2,105	–	275	3,376	–	–	5,756	22,575	27,852 COR
	80 Överstycket 25	Kindgrensgatan 3	Jönköping	2008 1981	348	–	7,190	–	–	–	7,538	16,342	13,591 COR	B
	– Källemo 1	Källemogatan 12	Vaggeryd	<1995 1956/1988	–	–	7,552	–	–	–	7,552	48,347	11,123 COR	B
	– Yggen 1	Krokvägen 1	Vaggeryd	<1995 1985/1989	–	–	–	6,303	–	–	6,303	18,598	11,581 COR
	Total warehouse/industrial				2,956	0	31,526	15,862	0	0	50,344	191,561	147,694
	DEVELOPMENT PROJECTS
	77 Ögongloben 6	Kindgrensgatan 4	Jönköping	2008 1997	–	–	–	–	–	–	–	7,500	6,234 COR	B
	98 Jägmästaren 1 B	Djurgården	Linköping	2013 –	–	–	–	–	–	–	–	7,631	1,891 COR	B
	Total development projects				0	0	0	0	0	0	0	15,131	8,125
	UNDEVELOPED LAND
	96 Visionen 4	Bataljonsgatan 10	Jönköping	2013 –	–	–	–	–	–	–	–	4,750	914 COR
	96 Visionen 6	Bataljonsgatan 10-12	Jönköping	2015 –	–	–	–	–	–	–	–	–	1,575 COR
	Total undeveloped land	E4			0	0	0	0	0	0	0	4,750	2,489
	Total Eastern Götaland				109,171	63,680	56,044	18,818	765	331	248,809	648,671	1,584,847
				Tornby				E4
				89		Stå					Tallboda
			Skäggetorp			ngå		LINKÖPING
				Steninge		n
											52		Malmskogen

					Vasa			Kallerstad
					staden						Köpetorp
				Gottfrids
	Malmslätt		Ryd	berg		Inner staden
							Tanne
							fors
				Östra Valla			Hejde
			Mjärdevi				gården						35
		Jägar 23				Ramshäll							Sviestad
		vallen 34	47 49			Ekkällan		Vimanshäll			Stå
			Västra 48 50 Valla		Garnisonen						ngå	Hacke
0	1000 m	2000 m 3000 m	51						Johannelund		n	fors
				98

Castellum's Real Estate Portfolio in Eastern Götaland 31-12-2015

	No. of	Area thous.	Rental value	Rental value	Economic occupancy	Rental income	Property costs	Property costs	Net operating
	properties	sq.m	SEKm	SEK/sq.m	rate	SEKm	SEKm	SEK/sq.m	income SEKm
Office/retail
Jönköping	19	143	195	1,357	94.0%	183	44	310	139
Linköping	8	55	63	1,158	96.3%	61	22	395	39
Total office/retail	27	198	258	1,302	94.6%	244	66	333	178
Warehouse/industrial
Jönköping	7	36	22	588	82.2%	17	4	113	13
Vaggeryd	2	14	5	368	97.6%	5	2	105	3
Total warehouse/industrial	9	50	27	528	85.1%	22	6	111	16
Total	36	248	285	1,145	93.7%	266	72	288	194
Leasing and property administration							22	93	– 22
Total after leasing and property administration							94	381	172
Development projects	2	–	1	–	–	2	1	–	1
Undeveloped land	2	–	–	–	–	–	–	–	–
Total	40	248	286	–	–	268	95	–	173

Property related key ratios

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006
Rental value, SEK/sq.m.	1,145	1,022	885	844	818	795	775	745	748	688
Economic occupancy rate	93.7%	89.3%	86.8%	88.4%	88.4%	88.0%	90.0%	90.8%	90.4%	90.6%
Property costs, SEK/sq.m.	381	362	284	268	272	268	275	261	269	239
Net operating income, SEK/sq.m.	692	551	483	478	451	432	422	416	407	384
Number of properties	40	40	94	95	95	96	95	93	82	76
Lettable area, thousand sq.m.	248	260	519	518	515	505	501	480	452	375

Castellum's Real Estate Schedule 2015, Summary

		Square metres per type of premises							Tax assess
	Office	Retail	Warehouse	Industrial	Residential	Other	Total	Site sq.m.	ment value
Greater Gothenburg	464,492	74,166	460,504	174,200	8,246	16,201	1,197,809	2,325,553	7,041,950
Öresund Region	293,010	52,904	268,519	51,463	985	29,011	695,892	1,509,527	4,845,748
Greater Stockholm	210,545	40,913	216,644	104,364	0	21,543	594,009	926,852	4,003,693
Mälardalen	258,753	123,941	162,161	99,323	3,527	8,133	655,838	1,732,450	3,391,762
Eastern Götaland	109,171	63,680	56,044	18,818	765	331	248,809	648,671	1,584,847
Total Castellum	1,335,971	355,604	1,163,872	448,168	13,523	75,219	3,392,357	7,143,053	20,868,000

Properties sold in 2015

			Acquis- Build/	Square metres per type of premises					Tax assess- Mgmt
Name of property	Address	Municipality	year Recon.year	Office			Retail Warehouse IndustrialResidential Other			Total	Site sq.m.	ment value subsid. Note
GREATER GOTHENBURG
Inom Vallgraven 22:3	Kungsgatan 31-33	Gothenburg	<1995 1929	1,080	488	–	–	–	–	1,568	574	39,600 EKL
Högsbo 33:1	Gruvgatan 29	Gothenburg	<1995 –	–	–	–	–	–	–	–	5,483	4,934 HAR	B
Total Greater Gothenburg				1,080	488	0	0	0	0	1,568	6,057	44,534
ÖRESUND REGION
Tågarp 16:72	Företagsvägen 25	Malmö	<1995 1973/1988	572	–	383	1,099	–	–	2,054	12,656	8,991 BRI
Total Öresund Region				572	0	383	1,099	0	0	2,054	12,656	8,991
GREATER STOCKHOLM
Ekenäs 1	Finlandsgatan 24-48	Stockholm	<1995 2003	18,712	540	–	–	–	8	19,260	9,631	228,600 BRO	T
Ekenäs 2	Finlandsgatan 12-14	Stockholm	<1995 1989	4,594	–	75	–	–	–	4,669	1,987	43,400 BRO	T
Ekenäs 3	Finlandsgatan 10	Stockholm	<1995 1989	3,535	–	756	–	–	–	4,291	4,792	35,600 BRO	T
Ekenäs 4	Finlandsgatan 16-18	Stockholm	<1995 1991	7,531	100	444	–	–	–	8,075	2,255	71,200 BRO	T
Karis 3	Finlandsgatan 62	Stockholm	2001 1989	2,881	–	510	–	–	5	3,396	2,248	30,600 BRO	T
Karis 4	Finlandsgatan 50-60	Stockholm	2000 1985	4,675	466	119	–	–	–	5,260	3,920	44,362 BRO	T
Sätesdalen 2	Norgegatan 2	Stockholm	2006 1990/2001	10,310	500	772	–	–	182	11,764	10,812	106,000 BRO	T
Sjöstugan 1	Sidensvansvägen 8-10	Sollentuna	1996 1990	4,465	–	1,908	–	–	–	6,373	9,156	42,400 BRO
	Hammarby-Smedby 1:454 Johanneslundsvägen 2-6	Uppl-Väsby	2006 1991	8,268	–	120	–	–	–	8,388	10,460	65,600 BRO
	Hammarby-Smedby 1:461 Johanneslundsvägen 3-5	Uppl-Väsby	2006 1988	3,659	676	218	–	–	–	4,553	6,798	35,000 BRO
Ringpärmen 4	Bergskällavägen 32	Sollentuna	1996 1987	10,828	600	1,173	–	–	–	12,601	12,206	80,000 BRO
Linde Torp 8	Bolidenvägen 8-10	Stockholm	<1995 1929	574	67	1,141	–	–	–	1,782	7,350	17,526 BRO	B
Rankan 3-4	Sollentunaholmsvägen 1-7	Sollentuna	1997 –	–	–	–	–	–	–	–	88,355	38,000 BRO	B
Total Greater Stockholm			80,032	2,949	7,236	0	0	195	90,412	169,970	838,288
EASTERN GÖTALAND
Törestorp 2:51	Kulltorpsvägen 25	Gnosjö	<1995 1946	–	–	–	14,310	–	–	14,310	55,273	17,457 COR
Pagoden 1	Ottargatan 10	Linköping	2008 1972/2002	–	1,732	1,668	–	–	–	3,400	9,000	8,742 COR	B
Total Eastern Götaland				0	1,732	1,668	14,310	0	0	17,710	64,273	26,199
Total Castellum				81,684	5,169	9,287	15,409	0	195	111,744	252,956	918,012

Definitions

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 initial 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 equity

Income after tax as a percentage of average equity. 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 as a percentage of initial long term net asset value. 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 reports on our sustainability activities in accordance with the GRI G4, Core level guidelines. The report covers the Castellum Group sustainability efforts throughout 2015. The table below indicates where you can find the reported information. Regarding specific indicators, the report focuses on what is essential to Castellum's business operations. Castellum's ambition is to provide a full account of all significant indicators within two years. The report has not been reviewed by an external party.

General standard indicators

GRI-reference		Page/reference
	Strategy and Analysis
G4-1	CEO's comments	2-3
	Organizational Profile
G4-3	Name of the organization	Cover, 38
G4-4	Primary brands, products and/or services	5-8, Cover
G4-5	Location of organization's headquarters	101 (Note 1)
G4-6	Countries where the organization operates	104 (Note 2)
G4-7	Nature of ownership and legal form	59-62
G4-8	Markets	12-15
G4-9	Scale of the organization	93
G4-10	Number of employees by employment type, employment contract, gender and region	15, 38
G4-11	Percentage of total employees covered by collective bargaining agreements	38
G4-12	Describe the organization's supply chain	34
G4-13	Significant changes during the reporting period regarding the organization's size, structure, ownership or supplier chain.	8-9, 19, 21
G4-14	Whether and how the precautionary approach is applied by the organization	32
G4-15	External economic, environmental and social principles to which the organization subscribes or which it endorses	32
G4-16	Membership in projects or committees	32, 34
	Identified material aspects and boundaries
G4-17	Entities included in the reporting, or not	113 (Note 23)
G4-18	Process for defining the report content	32
G4-19	List of identified material aspects	32
	G4-20 Each aspects boundaries within the organisation	Website
G4-21	Each aspects boundaries outside the organisation	34, 40-41
	G4-22 The effect of any restatement of information provided in previous reports, and the reasons for such restatements	32
	G4-23 Significant changes from previous reporting periods in the Scope and Aspect Boundaries	32, HD
	Stakeholder engagement
	G4-24 List of stakeholder groups engaged by the organization	Website, 32
	G4-25 Identification and selection of stakeholder with whom to engage	Website, 32
	G4-26 Approach to stakeholder engagement G4-27 Key topics and concerns that have been raised through stakeholder engagement	Website, 32 Website, 32
	Report profile
	G4-28 Reporting period for information provided	101
	G4-29 Date of most recent previous report	2016-02-02
	G4-30 Reporting cycle	101
G4-31	Contact point for questions regarding the report or its contents	Cover
	G4-32 GRI Content Index and reference	142
	G4-33 Policy for external assurance	142, 32
	Governance
	G4-34 Governance structure, including committees with responsibility for decision-making on economic, environmental and social impacts	32
	Ethics and integrity
	G4-56 Values, principles and codes of conduct	Website, 39

For more detailed information regarding GRI and calculation methods see Castellum website section "Sustainable business".

SD = Sustainability data 2015 GRI-appendix.

Specific standard indicators

GRI-reference		Page/reference
DMA	Economic Performance	34
G4-EC1	Economic value generated and distributed	34
G4-EC3	Coverage of the organization's defined benefit plan obligations	107 (Note 10)
DMA	Employment	38-39
G4-LA1	Employee turnover	38-39, SD
DMA	Health and Safety	34, 38, 39
G4-LA6	Absence due to illness and work-related injuries	38, SD
DMA	Training and Education	39
	G4-LA11 Performance and career development review	39, SD
DMA	Diversity and Equal Opportunity	39
	G4-LA12 Composition of the company	38, 85, 88, SD
DMA	Local Communities	34
G4-SO1	The company's impact on the communities where it operates	34
DMA	Anti-corruption	39
	G4-SO5 Number of incidents of corruption	39
DMA	Customer Health and Safety	35, 41
G4-PR1	Significant product and service categories for which health and safety impacts are assessed for improvement	40-41
DMA	Product and Service Labeling	41
G4-PR5	Results of surveys measuring customer satisfaction	35-36
	G4-CRE8 Environmental certifications in new construction, extensions and reconstructions	40-41
DMA	Energy	40-41
G4-EN3	Energy consumption within the organization	40-41
	G4-EN6 Reduction of energy consumption	40-41
	G4-CRE1 Energy intensity buildings	40-41
DMA	Water	41
G4-EN8	Total water withdrawal by source	41
	G4-CRE2 Water intensity buildings	41
DMA	Emissions	40-41
	G4-EN15 Direct greenhouse gas emissions (Scope 1)	40-41
	G4-EN16 Energy indirect greenhouse gas emissions (Scope 2)	40-41
	G4-EN17 Other indirect greenhouse gas emissions (Scope 3)	40-41
	G4-CRE3 Intensity green house emissions buildings	40-41
DMA	Effluents and Waste	41
	G4-EN23 Total weight of waste by type and disposal method	41, SD
DMA	Compliance	41
	G4-EN29 Monetary value of significant fines and sanctions for non-compliance with environmental laws and regulations	41
DMA	Supplier Assessment of labor practicies, community and environment	34
	G4-LA15 Negative Impacts For Labor Practices In The Supply Chain And Actions Taken	34
	G4-EN32 Percentage of new suppliers that were screened using environmental criteria	34
	G4-SO10 Significant actual and potential negative impacts on society in the supply chain and actions taken	34

Annual General Meeting

Castellum AB's Annual General Meeting will take place on Thursday March 17, 2016 at 5 pm in RunAn, Chalmers Kårhus, Chalmersplatsen 1, Gothenburg. For more information and notification of attendance see www.castellum.se.

Annual General Meeting calendar and dividend

Notification for the AGM	March 11, 2016

Annual General Meeting	March 17, 2016
Ex-dividend date	March 18, 2016
Record day for the dividend	March 21, 2016
Payment of dividend	March 24, 2016

Financial Reporting

Interim Report January - March 2016 April 13, 2016 Half-year Report January - June 2016 July 13, 2016 Interim Report January - September 2016 October 12, 2016 Year-end Report 2016 January 19, 2017 Annual General Meeting 2017 March 23, 2017

Contact

For further information please contact CEO Henrik Saxborn, tel +46 31- 60 74 50, or CFO Ulrika Danielsson, tel +46 706-47 12 61, and www.castellum.se.

www.eklandia.se

www.briggen.se

www.harrysjogren.se

www.corallen.se

www.brostaden.se

www.aspholmenfastigheter.se

Castellum AB (publ) • Box 2269, 403 14 Gothenburg • Visiting address Kaserntorget 5 Phone +46 31-60 74 00 • Email [email protected] • www.castellum.se Domicile: Gothenburg • Corporate identity no. 556475-5550

AI assistant

Castellum — Annual Report 2015

2900_10-k_2016-02-03_ab56a8e2-cf23-4c3e-ab18-f9358cd220bb.pdf

ANNUAL REPORT 2015

Content

A strategy that creates value

A continuously enhanced real estate portfolio

Responsible growth – a matter of course

Castellum

CHARACTERISTICS OF CASTELLUM

Castellum 2015

Two awards in 2015.

KEY FIGURES 2015

Castellum – on the offense 2015!

High investment rate

Strong finances

Increased cost efficiency

Sustainability efforts rewarded

Castellum's business opportunities are created by providing our customers with enhanced business opportunities

Castellum's strategy

Investment

Geography

Property category

Property portfolio development

Leasing and property management

Customers

Management and employees

Funding and risk

Mission and vision

Business concept

Business model

Sustainable business

Sustainability efforts are focused on:

Development of commercial properties in growth regions

Customer focus through local organizations

Strong balance sheet with low financial risk

Objective 10%

During 2015, Castellum has had a high portfolio turnover in order to increase the quality and density of the portfolio

Presence in Sweden's ten largest cities

Concentration in Stockholm

LARGE TRANSACTIONS SINCE FALL 2014

OCTOBER 2014

NOVEMBER 2014

JANUARY 2015

APRIL 2015

SEPTEMBER 2015

NOVEMBER 2015

DECEMBER 2015

Market share is important. But choice of market is even more important.

Market comments

Swedish economy

Interest and credit markets

European real estate market

SWEDEN'S FOREIGN TRADE JAN–OCT 2015 (10 MONTHS)

MACRO INDICATORS

Swedish real estate market

Swedish rental market

Castellum's markets

Castellum's real estate portfolio and result 2015

Investments

Property value and changes in value

Castellum's regions

21% Proportion of Castellum's property value

2015 2014 GREATER STOCKHOLM

2015 2014 No. of properties 40 40 Area, thousand sq.m. 248 260 Property value, SEKm 3,055 2,681 Rental value, SEKm 286 250 Net operating income, SEKm 173 134 Net investments, SEKm 250 – 1,446 Net leasing, SEKm 1 33 EASTERN GÖTALAND

Average valuation yield, SEKm

Rental income

Net leasing

Rental value and economic occupancy rate Average valuation yield over time

Property costs

Central administrative expenses

Income from joint venture

Net interest

Tax

Income over time

Castellum's real estate portfolio 31-12-2015

Property related key ratio

Property value by property type Property value by region

Joint venture

Balance sheet per 31-12-2015

Castellum Annual Report 2015