Castellum — Interim / Quarterly Report 2007

Oct 17, 2007

PRESS RELEASE 14/2007

Gothenburg October 17, 2007

Continued growth in Castellum's income from property management

• Rental income for the period January September 2007 amounted to SEKm 1,669 (SEKm 1 488 corresponding period previous year).
• Net income after tax for the period amounted to SEKm 848 (836), equivalent to SEK 5.17 (5.10) per share.
• Income from property management improved by 5% to SEKm 698 (662), equivalent to SEK 4.26 (4 04) per share.
• Net leasing has continued its strong trend during the period and amounted to SEKm 93 (77).
• The level of investments has remained high during the period and was SEKm 2,093 (1,545).

Income from property management for the period, i.e. net income excluding changes in value and tax, amounted to SEKm 698 (662), equivalent to SEK 4.26 (4.04) per share. The improvement amounts to 5%.

During the period changes in value on properties and derivatives amounted to, respectively SEKm 375 (356) and SEKm 104 (119). Net income for the period was SEKm 848 (836), equivalent to SEK 5.17 (5.10) per share.

During the period investments totalling SEKm 2,093 (1,545) were made, of which SEKm 1,367 (877) were acquisitions and SEKm 726 (668) new construction, extensions and refurbishment. Further, 3 (9) properties were sold for a total of SEKm 35 (179) which gave SEKm 1 (39) in realized result.

"Both the rental market in general as well as Castellum's net leasing continues strong and I am pleased to welcome 200 new customers since the turn of the year" comments Castellum's CEO, Håkan Hellström.

An election committee has been appointed in accordance to the Annual General Meeting's decision. The election committee is formed by: Lars Öhrstedt representing AFA Försäkring, Åsa Nisell representing Swedbank Robur, Lars-Åke Bokenberger representing AMF Pension and the Chairman of the Board Jan Kvarnström.

Enclosure: Interim Report January – September 2007

Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to approx. SEK 27 billion, and comprises commercial properties. The real estate portfolio is owned and managed by six wholly owned subsidiaries with strong local roots in five growth regions: Greater Gothenburg, the Öresund Region, Greater Stockholm, Mälardalen and Eastern Götaland. Castellum is listed on OMX – Nordic Exchange in Stockholm.

On Hisingen in Gothenburg a commercial property has been acquired. The lettable area amounts to approx. 16,000 sq.m. and comprises offi ce, production and warehouse premises as well as a restaurant.

Interim Report January-September 2007

Interim Report January-September 2007

Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to approx. SEK 27 billions, and comprises commercial properties. The real estate portfolio is owned and managed by six wholly owned subsidiaries with strong local roots in fi ve growth regions: Greater Gothenburg (incl. Borås, Kungsbacka and Halmstad), the Öresund Region (Malmö, Lund and Helsingborg), Greater Stockholm, Mälardalen (Örebro, Västerås and Uppsala) and Eastern Götaland (Jönköping, Linköping, Värnamo and Växjö). Castellum is listed on OMX Nordic Exchange in Stockholm.

• Rental income for the period January-September 2007 amounted to SEKm 1,669 (SEKm 1,488 corresponding period previous year).
• Net income after tax for the period amounted to SEKm 848 (836), equivalent to SEK 5.17 (5.10) per share.
• Income from property management improved by 5% to SEKm 698 (662), equivalent to SEK 4.26 (4.04) per share.
• Net leasing has continued its positive trend and amounted to SEKm 93 (77) during the period.
• The level of investments has remained high during the period and was SEKm 2,093 (1,545).

DATA PER SHARE
SEK	2007 Jan-Sept		2006 Jan-Sept	2006		2005		2004		2003		2002		2001		2000
Income property management Change	4.26	+5%	4.04	5.38	+8%	5.00	+11%	4.52	+11%	4.07	+8%	3.77	+14%	3.30	+24%	2.65
Net income after tax Change	5.17	+1%	5.10	10.21	+29%	7.89	+41%	5.59	+108%	2.68	-33%	4.00	-30%	5.68	+39%	4.07
Dividend				2.85		2.62		2.38		2.13		1.88		1.63		1.38
Change					+9%		+11%		+12%		+13%		+15%		+18%

Business Concept

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

Objective

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

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

Strategy for funding

Capital structure

Castellum will have a stable capital structure, meaning an equity/asset ratio of 35-45% and an interest coverage ratio of at least 200%.

Repurchase or sale of own shares may be used for adjusting the company's capital structure. Transfer of own shares may also be used at acquisition of properties. Own shares may not be traded for the sole purpose of capital gain.

Dividend

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

The stock and credit markets

Castellum shall work for a stable and positive price trend with high liquidity in the company's share. However, all actions will be made from a long term perspective.

Castellum will have a frequent, open and fair reporting to shareholders, the capital and credit markets as well as media, yet without disclosing any individual business relation.

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

Income, Costs and Results

Comparisons, shown in brackets, are made with the corresponding period previous year except in parts describing assets and fi nancing, where comparison are made with the end of previous year. For defi nitions see Castellum's website, www.castellum.se

Income from property management for the period, i.e. net income excluding changes in value and tax, amounted to SEKm 698 (662), equivalent to SEK 4.26 (4.04) per share. The improvement is 5%. The improvement in income is chiefl y an effect of investments made but has also been limited by increased interest rates.

During the period, changes in value on properties and derivatives amounted to, respectively, SEKm 375 (356) and SEKm 104 (119). Net income for the period was SEKm 848 (836), equivalent to SEK 5.17 (5.10) per share.

Rental income

Group rental income amounted to SEKm 1,669 (1,488). The improvement is chiefl y an effect of a larger real estate portfolio but also higher rental levels and lower vacancies.

Castellum's lease portfolio is presently considered to be in line with the market rents. For offi ce and retail properties, the average contracted rental level amounted to SEK 1,120 per sq.m., whereas it for warehouse and industrial properties amounted to SEK 644 per sq.m. Rental levels have increased by approx. 2.7% compared with previous year, of which approx. 0.7%-units refer to increased property tax passed on to the tenants.

Castellum has a good risk diversifi cation in the commercial lease portfolio consisting of approx. 4,100 (3,800) contracts, spreading over many sectors and durations. The single largest contract makes up for 1% of Castellum's total rental income.

The economic occupancy rate was 87.7% (87.0%), which is somewhat higher than previous year. The total rental value for vacant premises amounts to approx. SEKm 339 on an annual basis.

The leasing remains at a high level. The gross leasing during the period was SEKm 226 (200) and the net leasing was SEKm 93 (77). The time difference between reported net leasing and the effect in income thereof is estimated to between 6-18 months.

NET LEASING

The strong demand for commercial premises remains. The growth in the Swedish industry has meant a continued good demand for all types of premises. A slight increase in rental levels can now been seen on many of Castellum's local markets.

Property costs

Property costs amounted to SEKm 558 (515) corresponding to SEK 256 per sq.m. (258). The net costs, which in principle have remained unchanged, has been affected by lower operating expenses and higher real estate tax due to increased tax assessment values of 37% on average. Energy consumption for heating during the period has been calculated to 79% (103%) of a normal year according to degree day statistics.

Central administrative expenses

Central administrative expenses were SEKm 53 (48). This also includes costs for a profi t and share price related incentive plan for senior management of SEKm 6 (6).

Net financial items

Net fi nancial items were SEKm –360 (–263). The increase of SEKm 97 is partly due to a larger real estate portfolio and partly due to that the average interest rate level during the period has increased 0.5%-units to 4.2% (3.7%), giving higher costs in net fi nancial items of approx. SEKm 38.

Changes in value

Regarding the real estate market in general the opinion is that the demand as well as the supply has decreased somewhat compared to the fi rst six moths. The reason for this is among other things the uncertainty on the credit market with changed possibilities for funding and risk assessment, and that the third quarter normally has a lower liquidity.

In order to refl ect the increase in prices seen on the real estate market during the fi rst six months, an assessment of reduced market yields by on average 0.1%-unit have been made in the internal valuations. During the third quarter no changes in the required market yields have been seen. Together with minor changes in value on investments made the change in value amounted to SEKm 374, corresponding to approx. 1.4%.

During the period 3 properties (9) were sold for a total of SEKm 35 (179), which gave SEKm 1 (39) in realized results.

Castellum uses fi nancial instruments such as interest rate swaps in order to achieve the desired interest rate maturity structure. If the agreed interest rate deviates from the market interest rate there is a theoretical surplus or subvalue on the fi nancial instruments, where the change in value is reported in the income statement. As an effect of increasing market interest rates the value has changed with SEKm 104 (119) during the period and the value was SEKm 50 at the end of the period.

Tax

The nominal tax rate for companies in Sweden is 28%. However, the current tax paid is lower due to the possibility to defer the taxation by depreciations for tax purposes and investments deductible for tax purposes and to use tax loss carry forwards. This increases the non cash fl ow effecting deferred tax cost with the same amount as the current tax paid is reduced.

TAX CALCULATION 30-09-2007

	Basis	Basis
SEKm	current tax	deferred tax
Income from property management	698
Deductions for tax purposes
depreciations	– 343	343
investments	– 158	158
Other tax allowances	– 14	13
Taxable income from property management	183	514
Taxable gain on properties sold	4	– 4
Non taxable changes in value on properties	–	374
Non taxable changes in value on derivatives	–	50
Taxable changes in value on derivatives	54	–
Taxable income for the period	241	934
Tax loss carry forwards, opening balance	– 337	337
Tax loss carry forwards, closing balance	135	– 135
Taxable income	39	1 136
Of which 28% current/deferred tax	11	318

Real estate portfolio

The real estate portfolio, which consists entirely of commercial properties in Sweden, is found in Greater Gothenburg, the Öresund Region, Greater Stockholm, Mälardalen and Eastern Götaland. The main focus of the portfolio is in the three major urban regions.

The commercial portfolio consists of offi ce and retail properties as well as warehouse and industrial properties concentrated to well-situated working-areas with good means of communication and services.

CHANGES IN THE REAL ESTATE PORTFOLIO

	Fair value, SEKm	Number
Real estate portfolio on 1 January, 2007	24 238	515
+ Acquisitions	1 367	30
+ New construction, extensions and refurbishment	726	–
– Sales	– 34	– 3
+ Unrealized changes in value	374	–
Real estate portfolio on 30 September, 2007	26 671	542

During the period investments totalling SEKm 2,093 (1,545) were made, of which SEKm 1,367 (877) were acquisitions and SEKm 726 (668) new construction, extensions and refurbishment. Of the total investments, SEKm 751 related to Greater Gothenburg, SEKm 623 to Eastern Götaland, SEKm 306 to Mälardalen, SEKm 223 to Greater Stockholm and SEKm 190 to the Öresund Region.

Accounting Principles

Castellum follows the by the EU adopted IFRS standards and the interpretations of them (IFRIC). This interim report has been prepared according to IAS 34 Interim Financial Reporting. Accounting principles and methods for calculations have remained unchanged compared to the Annual Report previous year.

CASTELLUM'S REAL ESTATE PORTFOLIO

			30-09-2007					January-September 2007
		Area	Fair	Fair	Rental	Rental	Economic	Rental	Property	Property	Net opera
	No. of	thous.	value	value	value	value	occupancy	income	costs	costs	ting income
	properties	sq.m.	SEKm	SEK/sq.m.	SEKm	SEK/sq.m.	rate	SEKm	SEKm	SEK/sq.m.	SEKm
Offi ce/retail
Greater Gothenburg	75	391	5 008	12 799	339	1 154	92.3%	312	78	267	234
Öresund Region	47	304	4 703	15 446	293	1 284	91.0%	267	68	297	199
Greater Stockholm	45	304	3 474	11 426	286	1 257	79.6%	228	73	320	155
Mälardalen	51	249	2 240	9 003	176	941	88.7%	156	46	243	110
Eastern Götaland	45	275	2 284	8 306	186	902	90.9%	169	56	272	113
Total offi ce/retail	263	1 523	17 709	11 623	1 280	1 120	88.5%	1 132	321	281	811
Warehouse/industrial
Greater Gothenburg	93	589	3 883	6 594	290	658	88.6%	257	53	120	204
Öresund Region	39	280	1 662	5 936	132	629	80.5%	106	28	131	78
Greater Stockholm	35	189	1 218	6 442	114	806	84.7%	97	28	198	69
Mälardalen	42	166	842	5 072	77	615	88.6%	68	19	153	49
Eastern Götaland	29	159	602	3 787	54	456	88.2%	48	13	112	35
Total warehouse/industrial	240	1 383	8 207	5 935	667	644	86.3%	576	141	136	435
Total	503	2 906	25 916	8 917	1 947	893	87.7%	1 708	462	212	1 246
Leasing and property administration									95	44	– 95
Total after leasing and property administration									557	256	1 151
Development projects	11	57	362	–	23	–	–	8	5	–	3
Undeveloped land	28	–	393	–	–	–	–	–	–	–	–
Total	542	2 963	26 671	–	1 970	–	–	1 716	562	–	1 154

The table above relates to the properties owned by Castellum at the end of the period and refl ects the income and costs of the properties as if they had been owned during the whole period. The discrepancy between the net operating income of SEKm 1 154 accounted for above and the net operating income of SEKm 1 111 in the income statement is explained by the adjustment of the net operating income of SEKm 43 on properties acquired/ completed during the period, which are recalculated as if they had been owned or completed during the whole period.

PROPERTY RELATED KEY RATIOS

	2007 Jan-Sept	2006 Jan-Sept	2006 Jan-Dec
Rental value, SEK/sq.m.	893	865	864
Economic occupancy rate	87.7%	87.0%	87.1%
Property costs, SEK/sq.m.	256	258	259
Net operating income, SEK/sq.m.	529	495	494
Fair value, SEK/sq.m.	8 917	8 190	8 466
Number of properties	542	507	515
Lettable area, thousand sq.m.	2 963	2 744	2 787

SEGMENT INFORMATION
			Net operating income incl.
		Rental income		changes in value on properties
	2007	2006	2007	2006
SEKm	Jan-Sept	Jan-Sept	Jan-Sept	Jan-Sept
Greater Gothenburg	553	481	521	479
Öresund Region	371	361	322	352
Greater Stockholm	318	283	289	218
Mälardalen	220	195	170	152
Eastern Götaland	207	168	184	128
Total	1 669	1 488	1 486	1 329

Financing

Shareholders' equity and Net Asset Value

Shareholders' equity was SEKm 10,565 (10,184), representing an equity/assets ratio of 39% (42%). In order to regulate the company's capital structure the company can repurchase 9.2 million own shares in addition to the eight million shares which were repurchased earlier.

The net asset value can based on the balance sheet, without considering the uncertainty range of +/– 5-10% normally used in property valuations, be calculated to SEKm 13,745 corresponding to SEK 84 per share pre tax and to SEKm 12,609 corresponding to SEK 77 per share after deduction of a calculated 10% effective tax.

Interest-bearing liabilities

As of 30 September, 2007 Castellum had long term binding credit agreements totalling SEKm 12,800 (11,050), long term bonds totalling SEKm 650 (350), short term binding credit agreements totalling SEKm 776 (1,776) and a commercial paper program of SEKm 4,000 (3,000). Outstanding commercial papers of SEKm 3,243 are fully covered by unutilized long term credit agreements. After deduction of liquid assets of SEKm 23 (8), net interest-bearing liabilities were SEKm 12,455 (10,829). The average duration of Castellum's long term credit agreements as of 30 September, 2007 was 4.8 years (5.8).

The average effective interest rate as of 30 September, 2007 was 4.4% (4.0%), while the market interest rate for an equal portfolio amounts to 4.8%. The average fi xed interest term on the same date was 2.2 years (2.3) and has been achieved through the extension of loans with short term fi xed interest terms by interest swap agreements. The share of loans with interest rate maturity during the next 6 months was 45% (48%). According to the fi nancial policy, the average fi xed interest term will be 1.5-3 years and the share of interest rate maturity during the next 6 months will be no more than 50%.

	INTEREST RATE AND LOAN MATURITY STRUCTURE 30-09-2007

	Interest rate maturity structure		Loan maturity structure
	Interest rate	Average	Credit	Utilized,
SEKm	maturity	interest rate	agreements
0-1 year	6 055	4.6%	4 019	3 347
1-2 years	1 850	3.8%	1 150	450
2-3 years	1 250	4.2%	800	700
3-4 years	550	4.1%	4 000	2 250
4-5 years	800	4.7%	–	–
5-10 years	1 950	4.4%	7 500	5 708
Total	12 455	4.4%	17 469	12 455

The Parent Company

The parent company Castellum AB is responsible for matters concerning the stock market such as consolidated reports and stock market information and the credit market such as funding and fi nancial risk management.

The parent company takes part in property related operations through involvement in the Board of the subsidiaries.

INCOME STATEMENT AND BALANCE SHEET
INCOME STATEMENT	2007	2006	2007	2006
SEKm	July-Sept	July-Sept	Jan-Sept	Jan-Sept
Income	2	2	7	7
Operating expenses	– 12	– 11	– 40	– 35
Net fi nancial items	4	4	10	10
Changes in value,
derivatives	– 16	– 49	104	119
Income before tax	– 22	– 54	81	101
Tax	6	15	– 23	– 28
Net income for the period	– 16	– 39	58	73
BALANCE SHEET		30/9	30/9	31/12
SEKm		2007	2006	2006
Participations in Group comp.		4 087	3 727	4 087
Receivables, Group comp.		12 405	10 834	11 258
Other assets		4	22	7
Derivatives		50	–	–
Cash and bank		0	0	0
Total		16 546	14 583	15 352
Shareholders' equity		3 864	3 669	4 273
Interest bearing liabilities		12 164	10 266	10 531
Derivatives		–	113	55
Interest bearing liabilities
Group companies		339	388	398
Other liabilities		179	147	95
Total		16 546	14 583	15 352

Opportunities and Risks

Opportunities and Risks in the Cash Flow

Increasing market interest rates is generally an effect of economic growth and increasing infl ation, which is thought to give higher rental income. This is in part due to that the demand for premises is thought to increase, leading to reduced vacancies and hence the potential for increasing market rents and in part due to that the index clause in the commercial contracts is compensating the increasing infl ation. An economic boom therefore means higher interest costs but also higher rental income, while the opposite relationship is true during a recession. The change in rental income and interest costs does not take place at the exact same time, why the effect on income in the short term may occur at different points in time.

Opportunities and Risks in Property Values

Castellum reports its properties at fair value with changes in value in the income statement. This means that the result in particular but also the fi nancial position may be more volatile. The values of the properties are determined by supply and demand, where the prices are mainly depending on the properties' expected net operating income and the buyer's required yield. An increasing demand gives lower required yields and hence an upward adjustment in prices, while a weaker demand has the opposite effect. In the same way, a positive real development in net operating income gives an upward adjustment in prices, while a low real growth has the opposite effect.

In property valuations consideration should be taken to an uncertainty range of +/– 5-10%, in order to refl ect the uncertainty that exist in the assumptions and calculations made.

Financial Risk

Castellum's greatest fi nancial risk is to lack access to funding. A low borrowing ratio limits this risk and also means less exposure to interest rate changes. Existing credit agreements are reviewed and renegotiated on an ongoing basis and new agreements are signed when needed in order to secure Castellum's need for long term funding.

Election Committee

According to the 2007 Annual General Meeting's decision an election committee shall be appointed to make proposals to the Annual General Meeting 2008 regarding the number of Board members, election of members of the Board of Directors, including chairman and fees for the Board of Directors.

The election committee will be established according to the Annual General Meeting's decision by the Chairman of the Board of Directors contacting the three largest shareholders at the end of the third quarter in order for them to each appoint one member to the election committee. The appointed members, together with the Chairman of the Board of Directors as convener, form the election committee. The election committee will itself appoint its chairman among its members.

The election committee is formed by: Lars Öhrstedt representing AFA Försäkring, Åsa Nisell representing Swedbank Robur, Lars-Åke Bokenberger representing AMF Pension and the Chairman of the Board Jan Kvarnström.

Gothenburg 17 October, 2007

Håkan Hellström Chief Executive Offi cer

This Interim Report has not been examined by the company's auditors.

INCOME STATEMENT
	2007	2006	2007	2006	Rolling 12 months	2006
SEKm	July-Sept	July-Sept	Jan-Sept	Jan-Sept	Oct 06-Sept 07	Jan-Dec
Rental income	575	504	1 669	1 488	2 195	2 014
Operating expenses	– 78	– 76	– 297	– 292	– 398	– 393
Maintenance	– 21	– 27	– 69	– 73	– 96	– 100
Ground rent	– 5	– 4	– 15	– 13	– 20	– 18
Real estate tax	– 39	– 19	– 82	– 58	– 98	– 74
Leasing and property administration	– 31	– 24	– 95	– 79	– 131	– 115
Net operating income	401	354	1 111	973	1 452	1 314
Central administrative expenses	– 16	– 16	– 53	– 48	– 72	– 67
Net fi nancial items	–129	– 93	– 360	– 263	– 461	– 364
Income from property management	256	245	698	662	919	883
Changes in value
Properties, realized	– 1	10	1	39	45	83
Properties, unrealized	2	21	374	317	1 119	1 062
Derivatives, unrealized	– 16	– 49	104	119	163	178
Income before tax	241	227	1 177	1 137	2 246	2 206
Current tax	– 6	– 5	– 11	– 5	– 16	– 10
Deferred tax	– 61	– 54	– 318	– 296	– 544	– 522
Net income for the period/year	174	168	848	836	1 686	1 674

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

DATA PER SHARE
	2007	2006	2007	2006	Rolling 12 months	2006
	July-Sept	July-Sept	Jan-Sept	Jan-Sept	Oct 06-Sept 07	Jan-Dec
Average number of shares, thousand	164 000	164 000	164 000	164 000	164 000	164 000
Earings after tax, SEK	1.06	1.02	5.17	5.10	10.28	10.21
Income from property management, SEK	1.56	1.49	4.26	4.04	5.60	5.38
Outstanding number of shares, thousand	164 000	164 000	164 000	164 000	164 000	164 000
Fair value of properties, SEK	163	140	163	140	163	148
Shareholders' equity, SEK	64	57	64	57	64	62

Since there is no potential common stock (e.g. convertibles), there is no effect of dilution. All share related key ratios have been recalculated based on the share split 4:1 carried out in April 2006.

FINANCIAL KEY RATIOS
	2007	2006	2007	2006	Rolling 12 months	2006
	July-Sept	July-Sept	Jan-Sept	Jan-Sept	Oct 06-Sept 07	Jan-Dec
Net operating income margin	70%	70%	67%	65%	66%	65%
Interest coverage ratio	298%	363%	294%	352%	299%	343%
Return on equity	6.9%	7.5%	9.8%	10.9%	16.9%	17.5%
Return on total capital	5.8%	6.1%	7.0%	7.1%	10.2%	10.4%
Investments, SEKm	601	711	2 093	1 545	2 831	2 283
Sales, SEKm	29	53	35	179	316	460
Equity/assets ratio	39%	40%	39%	40%	39%	42%
Borrowing ratio	47%	46%	47%	46%	47%	45%

BALANCE SHEET
SEKm	30 Sept 2007	30 Sept 2006	31 Dec 2006
Assets
Investment properties	26 671	22 992	24 238
Other fi xed assets	13	12	13
Current receivables	132	153	187
Derivatives	50	–	–
Cash and bank	23	3	8
Total assets	26 889	23 160	24 446
Shareholders' equity and liabilities
Shareholders' equity	10 565	9 346	10 184
Deferred tax liability	3 180	2 448	2 723
Long term interest-bearing liabilities	12 478	10 572	10 837
Derivatives	–	113	55
Non interest-bearing liabilities	666	681	647
Total shareholders' equity and liabilities	26 889	23 160	24 446

CHANGES IN EQUITY
SEKm	Number of outstanding shares, thousand	Share capital	Reserves	Retained earnings	Total equity
Shareholders' equity 31-12-2005	41 000	86	20	8 834	8 940
Dividend, March 2006	–	–	–	– 430	– 430
Share split 4:1, April 2006	123 000	–	–	–	–
Net income January-September 2006	–	–	–	836	836
Shareholders' equity 30-09-2006	164 000	86	20	9 240	9 346
Net income October-December 2006	–	–	–	838	838
Shareholders' equity 31-12-2006	164 000	86	20	10 078	10 184
Dividend, March 2007	–	–	–	– 467	– 467
Net income January-September 2007	–	–	–	848	848
Shareholders' equity 30-09-2007	164 000	86	20	10 459	10 565

CASH FLOW STATEMENT
SEKm	Jan-Sept 2007	Jan-Sept 2006	Jan-Dec 2006
Net operating income	1 111	973	1 314
Central administrative expenses	– 53	– 48	– 67
Reversed depreciations	4	4	5
Net fi nancial items paid	– 299	– 209	– 365
Tax paid on income from property management	– 10	–	–
Cash fl ow from operating activities before change in working capital	753	720	887
Change in current receivables	43	– 50	– 88
Change in current liabilities	– 52	– 40	29
Cash fl ow from operating activities	744	630	828
Investments in existing properties	– 726	– 668	– 991
Property acquisitions	– 1 228	– 848	– 1 213
Change in liabilities at acquisitions of property	9	– 21	– 74
Property sales	35	176	457
Change in receivables at sales of property	12	– 14	– 10
Other net investments	– 5	– 3	– 5
Cash fl ow from investment activities	– 1 903	– 1 378	– 1 836
Change in long term liabilities	1 641	1 176	1 441
Dividend paid	– 467	– 430	– 430
Cash fl ow from investment activities	1 174	746	1 011
Cash fl ow for the period/year	15	– 2	3
Cash and bank, opening balance	8	5	5
Cash and bank closing balance	23	3	8

The Castellum Share

Castellum is listed on OMX Nordic Exchange in Stockholm and had at the end of the period about 7,400 shareholders. Shareholders registered abroad cannot be broken down in terms of directly held and nominee registered shares. The ten single largest Swedish shareholders can be seen in the table below.

SHAREHOLDERS

Shareholders as of 30-09-2007	Number of shares, thousand	Percentage of voting rights and capital
László Szombatfalvy	11 000	6.7%
AFA Sjukförsäkrings AB	7 621	4.7%
AMF Pensionsförsäkrings AB	4 700	2.9%
Kåpan Pensioner Försäkringsförening	2 794	1.7%
Andra AP-fonden	2 777	1.7%
Swedbank Robur Realinvest	2 154	1.3%
AFA TFA Försäkrings AB	1 978	1.2%
Societe Generale Dep Des Services	1 801	1.1%
Fjärde AP-fonden	1 320	0.8%
Bengt Norman	1 200	0.7%
Other shareholders registered in Sweden	40 643	24.8%
Shareholders registered abroad	86 012	52.4%
Total outstanding shares	164 000	100.0%
Repurchased shares	8 007
Total registered shares	172 007

There is no potential common stock (e.g. convertibles).

DISTRIBUTION OF SHAREHOLDERS BY COUNTRY 30-09-2007

		USA 20%
Sweden 48%		Great Britain 10%
Of which 22% Funds, insurance comp etc
Private persons, private comp 21%		Luxembourg 5%
AP-funds 4% Trusts, associations etc 1%		The Netherlands 4%
		Other 13%

The Castellum share price as at September 30, 2007 was SEK 80.25 equivalent to a market value of SEK 13.2 billion, calculated on the number of outstanding shares.

Since the beginning of the year, a total of 159 million shares were traded, equivalent to an average of 845,000 shares per day, corresponding on an annual basis to a turnover rate of 129%.

During the last 12-month period the total yield of the Castellum share has been 0.7% including dividend of SEK 2.85 per share. Since the IPO on May 23, 1997 the total yield of the Castellum has been on average 21.8% per year.

TOTAL YIELD (INCLUDING DIVIDEND)

		On average per
	Oct 2006	year May 1997-
	- Sept 2007	Sept 2007
The Castellum Share	0.7%	21.8%
OMX Stockholm (SIX Return)	21.5%	11.1%
Real Estate Index Sweden (EPRA)	4.6%	18.3%
Real Estate Index Europe (EPRA)	– 6.2%	13.7%

CALENDAR

Year-end Report 2007 23 January, 2008 Annual General Meeting 27 March, 2008 Interim Report January-March 2008 16 April 2008 Half-year Report January-June 2008 16 July, 2008 Interim Report January-September 2008 16 October, 2008 Year-end Report 2008 21 January, 2008 Annual General Meeting 26 March, 2009

For further information please contact Håkan Hellström, CEO telephone +46 31-60 74 00

www.castellum.se

On Castellum's website it is possible to download as well as subscribe to Castellum's Pressreleases and Interim Reports.

The photos in this Interim Report show the property Backa 20:5 in Gothenburg.

SUBSIDIARIES

Aspholmen Fastigheter AB

Radiatorvägen 17, SE-702 27 Örebro, Sweden Telephone +46 19-27 65 00 Fax +46 19-27 65 19 orebro@aspholmenfastigheter.se www.aspholmenfastigheter.se

Fastighets AB Briggen

Fredriksbergsgatan 1 Box 3158, SE-200 22 Malmö, Sweden Telephone +46 40-38 37 20 Fax +46 40-38 37 37 fastighets.ab@briggen.se www.briggen.se

Fastighets AB Brostaden

Bolidenvägen 14 Box 5013, SE-121 05 Johanneshov, Sweden Telephone +46 8-602 33 00 Fax +46 8-602 33 30 info@brostaden.se www.brostaden.se

Fastighets AB Corallen

Lasarettsgatan 3 Box 148, SE-331 21 Värnamo, Sweden Telephone +46 370-69 49 00 Fax +46 370-475 90 info@corallen.se www.corallen.se

Eklandia Fastighets AB

Ringögatan 12 Box 8725, SE-402 75 Gothenburg, Sweden Telephone +46 31-744 09 00 Fax +46 31-744 09 50 info@eklandia.se www.eklandia.se

Harry Sjögren AB

Kråketorpsgatan 20, SE-431 53 Mölndal, Sweden Telephone +46 31-706 65 00 Fax +46 31-706 65 29 info@harrysjogren.se www.harrysjogren.se

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

Castellum AB (publ) • Box 2269, SE-403 14 Gothenburg, Sweden • Visiting address Kaserntorget 5 Telephone +46 31-60 74 00 • Fax +46 31-13 17 55 • E-mail info@castellum.se • www.castellum.se Registered offi ce: Gothenburg • Corporate identity no. 556475-5550