In the area Kopparlunden in Västerås, a property of 2,100 sq.m. offi ce premises has been completed during the spring 2009.

Half-year Report January-June 2009

Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to SEK 29 billion, and comprises premises for offi ce, retail, warehouse and industrial purposes.

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, Halmstad, Alingsås), 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 NASDAQ OMX Stockholm AB Large Cap.

Rental income for the period January-June 2009 amounted to SEKm 1,346 (SEKm 1,218 corresponding period previous year).
Income from property management improved by 18% to SEKm 557 (473), equivalent to SEK 3.40 (2.88) per share.
Changes in value on properties amounted to SEKm 814 (– 467) and on interest rate derivatives to SEKm 68 (60).
Net income after tax amounted to SEKm 133 (49), equivalent to SEK 0.81 (0.30) per share.
The investments amounted to SEKm 566 (1,582).
The total value of the properties amounted to SEKm 28,917 (29,165 at the end of previous year) with a loan to value ratio of 53% (50%).

SEK	2009 Jan-June	2008 Jan-June	2008		2007		2006		2005		2004		2003		2002
Income property management	3.40	2.88	5.93		5.63		5.38		5.00		4.52		4.07		3.77
Change		+18%		+5%		+5%		+8%		+11%		+11%		+8%
Net income after tax	– 0.81	0.30	– 4.04		9.07		10.21		7.89		5.59		2.68		4.00
Change		neg		neg		–11%		+29%		+41%		+108%		–33%
Dividend			3.15		3.00		2.85		2.62		2.38		2.13		1.88
Change				+5%		+5%		+9%		+11%		+12%		+13%

Data per share

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 potential asset growth of at least 10%. Sales of properties will take place when justified from a business standpoint and when an alternative investment with a higher yield can be found.

Strategy

Capital structure

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

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

Dividend

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

The stock and credit markets

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

However, all actions will be made from a long term perspective and the company will have a frequent, open and fair reporting to shareholders, the capital and credit markets as well as media, yet without disclosing any individual business relation. In the long term Castellum will be one of the largest listed real estate companies in Sweden.

Customers

Being close to the customers

Castellum's operations are run in a small-scale organization comprising six subsidiaries which own and manage the properties under their own brands. By having local roots the subsidiaries get close relations with the customers, and good knowledge of the market situation and rental development within each market area.

Castellum works with facility management services that can improve and facilitate the customer's day-to-day operations and improve the attractiveness of the area where the customer is operating.

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

Castellum's customers refl ect Swedish economy

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

Satisfi ed customers

In order to measure how well Castellum meets the customers' expectations and to follow up and evaluate efforts made, an external customer survey is carried out annually.

The latest survey which included offi ce, warehouses, industry- and retail properties, continues to show consistently high marks for Castellum. A large portion of the surveyed customers replies willing to lease from Castellum again and gladly recommends Castellum as a landlord to others.

Commercial leases

The most common terms for a new lease is 3-5 years with a nine months notice and rents are paid quarterly in advance. The rental level can be changed when the lease in question is due for renegotiation. Lease contracts usually contain a so called base-rent, i.e. the rental level at the time of signing, and an index clause which provides for a yearly upward adjustment by a certain percentage of the infl ation previous year or a minimum upward adjustment.

Jönköping, Linköping, Värnamo and Växjö

Southern Greater Gothenburg, Borås, Alingsås and Halmstad

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

Decentralized organization

Castellum has six wholly owned subsidiaries which each have about 35 employees. The subsidiaries organizations are not identical but are in principal made up of a Managing Director, 3-5 market areas, business developers and 3-5 employees within fi nance and administration. Each market area employs one property manager with one assistant, one person working with leasing and 2-4 facility managers, where everyone has customer contact.

The fl at organization gives short decision making processes and creates a customer oriented and active organization. Property management is mainly carried out by own personnel.

Employees

Castellum is working actively in order to hire and keeping good employees by offering a stimulating work environment, competence development and sharing of experiences both internally and externally

The employees' view on Castellum is regularly measured and the survey shows that the employees are pleased and have a great faith in the company and its management.

The group has approx. 225 employees.

Responsible business

Castellum is working towards a sustainable development by developing the properties in those cities were the subsidiaries are present, a common set of values for actions towards employees, customers and vendors as well as active work on environmental issues.

The environmental work is focused on effi cient energy consumption and improving the properties' environmental status. Two of Castellum's subsidiaries, Fastighets AB Brostaden and Harry Sjögren AB, have been assigned to be Green Building Corporate Partner by EU, which can be seen as a receipt of long-term effi cient work in decreasing the energy use.

Centrala, Northern and Eastern Greater Gothenburg

Income, Costs and Results

All amounts correspond to the whole period or the position at the end of the period. 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, i.e. net income excluding changes in value and tax, amounted to SEKm 557 (473), equivalent to SEK 3.40 (2.88) per share. The improvement is 18% and above all an effect of lower interest rates, but also higher rental incomes and investments made have had a positive effect.

Income from property management per share

During the period, changes in value on properties amounted to SEKm –814 (–467) and on interest rate derivatives to SEKm 68 (60). Net income for the period was SEKm –133 (49), equivalent to SEK –0.81 (0.30) per share.

Rental income

Group rental income amounted to SEKm 1,346 (1,218). The improvement is chiefl y an effect of higher rental levels and investments made.

For offi ce and retail properties, the average contracted rental level, including charged heating, cooling and property tax, amounted to SEK 1,208 per sq.m., whereas it for warehouse and industrial properties amounted to SEK 694 per sq.m.

Rental levels, which are assessed to be in line with the market, have increased by approx. 4% compared with previous year, which is mainly an effect of index clause adjustments.

Lease maturity structure

The average economic occupancy rate was 89.6%. The total annual rental value for vacant premises amounted to SEKm 328.

The gross leasing (i.e. the annual value of total leasing) during the period was SEKm 122 (171), of which SEKm 4 (31) were leasing on new constructions, extensions and refurbishments. Notices of termination amounted to SEKm 149 (109), of which bankruptcies was SEKm 16 (3), hence net leasing for the period were SEKm –27 (62). The net leasing for the second quarter amounted to SEKm –5 (37). The time difference between reported net leasing and the effect in income thereof is estimated to between 9-18 months.

Net leasing

Even if the recession is clearly noticeable on the rental market the effects are far smaller then expected. Notices of termination and bankruptcies have increased, but new leases during the first half-year have remained on high levels. At the moment there is no pressure on the rental levels in Castellums' local markets, due to generally high occupancy rates together with limited production of new properties.

Property costs

Property costs amounted to SEKm 482 (428) corresponding to SEK 303 per sq.m. (283). The increase is chiefl y an effect of a colder fi rst half-year compared to last year. Energy consumption for heating during the period has been calculated to 90% (79%) of a normal year according to the degree day statistics. The rental losses, i.e. charged not paid rents with the risk of loss, amounted to SEKm 6 (5) corresponding to 0.4% of rental income.

Property costs, SEK/sq.m.	Offi ce/	Warehouse/
	Retail	Industrial	Total
Operating expenses	204	123	166
Maintenance	47	24	35
Ground rent	8	5	7
Real estate tax	60	17	40
Direct property costs	319	169	248
Leasing and property adm. (indirect)	–	–	55
Total	319	169	303
Previous year	314	153	283

Central administrative expenses

Central administrative expenses were SEKm 39 (34). This includes costs for a profi t and share price related incentive plan for 10 persons in executive management of SEKm 7 (1).

Net financial items

Net fi nancial items were SEKm –268 (–283). The net fi nancial items have been affected positively with SEKm 60 due to that the average interest rate level has decreased 0.9%-units to 3.7% (4.6%)

Changes in value

The development on the Swedish property market during the second quarter is much the same as during to the fi rst quarter, i.e. low transaction volume partly due to diffi culties for presumptive buyers to get funding. The low turnover rate leds to continued diffi culties to assess a fair value based on made transactions and the current required market yield already includes a reduced net operating income. However, it is Castellum's apprehension that the sellers and buyers expected view on prices has decreased slightly, which indicates a further decrease in prices.

The total change in value of Castellum's portfolio during the period amounted to SEKm –814 (–467) corresponding to 3% of the property value.

Castellum uses interest rate derivatives 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 sub value in the interest rate derivatives, where the non cash fl ow effecting changes in value are reported in the income statement. The value has changed above all due to the falling long term interest rates with SEKm 68 (60) and the value was SEKm –899 (–966) at the end of the period.

Tax

The nominal corporate tax rate in Sweden is 26.3%. Due to the possibility to make depreciations for tax purposes, reconstructions deductible for tax purposes, and to use tax loss carry forwards there is in principle no paid tax costs. Paid tax occur because a few subsidiaries are not allowed to make fi scal group contributions.

Remaining tax loss carry forwards can be calculated to SEKm 1,736 (1,830), while the properties' fair value exceed their fi scal value by SEKm 12,094 (12,419). As deferred tax liability a full nominal 26.3% tax of the net difference is reported, SEKm 2,724 (2,785).

Referring to the latest legal cases, which inter alia affect the real estate business, it can be established that Castellum have not carried out the kind of transaction that has been tried by the Supreme Administrative Court. During the period, The National Tax Board authorities have carried out a tax audit in Castellum, which has been completed without comments.

Tax Calculation	Basis	Basis
SEKm	current tax	deferred tax
Income from property management	557
Deductions for tax purposes
depreciations	– 271	271
reconstructions	– 111	111
reconstructions, adjustement previous years	– 118	118
Other tax allowances	– 11	– 11
Taxable income from property management	46	489

Changes in value on properties	–	– 814
Changes in value on interest rate derivatives	68	–
Taxable income for the period	114	– 325

Tax loss carry forwards, opening balance	– 1,830	1,830
Tax loss carry forwards, closing balance	1,736	– 1,736
Taxable income	20	– 231
Of which 26.3% current/deferred tax	– 5	61

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, as well as the segment classifi cation. However, the accounted income measure for segment has changed to income from property management, which is also the line of income which each segment, as well as the group, is managed by.

Real Estate Portfolio

The real estate portfolio, which consists entirely of Swedish properties, is found in Greater Gothenburg, the Öresund Region, Greater Stockholm, Mälardalen and Eastern Götaland. The main focus with 75% of the portfolio is in the three major urban regions.

The commercial portfolio consists of 65% offi ce and retail properties as well as 31% warehouse and industrial properties. The properties are located from inner city sites (except in Greater Stockholm from inner suburbs) to wellsituated working-areas with good means of communication and services.

Castellum owns 876,000 sq.m. unutilized building rights. Castellum has ongoing projects with remaining investments of approx. SEKm 600.

Investments

During the period the real estate portfolio has changed as below.

Changes in the real estate portfolio	Value, SEKm	Number
Real estate portfolio on 1 January, 2009	29,165	587
+ Acquisitions	–	–
+ New constructions, extensions and reconstructions	566	–
– Sales	–	–
+/– Unrealized changes in value	– 814	–
Real estate portfolio on 30 June, 2009	28,917	587

During the period investments totalling SEKm 566 (1,582) were made, of which SEKm 0 (870) were acquisitions and SEKm 566 (712) new constructions, extensions and reconstructions. Of the total investments SEKm 180 relates to Greater Stockholm, SEKm 135 to Mälardalen, SEKm 104 to Greater Gothenburg, SEKm 90 to Eastern Götaland, and SEKm 57 to the Öresund Region.

Investments

Property value

Castellum assesses the value of the properties through internal valuations. These are based on a 10-year cash fl owbased model with an individual assessment for each property of both its future earnings capacity and the required market yield.

Projects in progress have been valued using the same principle, but with deductions for remaining investments. Sites with building rights have been valued on the basis of an estimated market value per square metre. In order to ensure and validate the quality of the internal valuations, an external valuation representing over 50% of the portfolio is made every year-end. The difference between the internal and external values has historically been insignificant.

Based on these internal valuations the value of the properties was assessed to SEKm 28,917 (29,165), corresponding to almost SEK 9,000 per sq.m. The normalized yield can be calculated to 7.6%.

Normalized yield (exkl. projects/land and building rights)	SEKm
Net operating income properties	952
Adjusted for:
Real occupancy rate, 94% at the lowest	101
Property costs to a normal year	27
Property administration, 30 SEK/sq.m.	– 47
Normalized net operating income	1,033
Valuation (excl. building rights of SEKm 405)	27,337
Normalized yield annual basis	7.6%

Castellum's real estate portfolio

			30-06-2009		January-June 2009
		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	79	405	5,172	12,780	251	1,241	93.8%	236	61	301	175
Öresund Region	52	325	4,696	14,438	227	1,394	86.7%	196	56	347	140
Greater Stockholm	45	304	3,636	11,960	204	1,342	82.7%	168	54	357	114
Mälardalen	68	309	2,963	9,584	162	1,045	92.6%	150	44	286	106
Eastern Götaland	48	283	2,337	8,268	138	976	92.4%	128	44	310	84
Total offi ce/retail	292	1,626	18,804	11,566	982	1,208	89.4%	878	259	319	619
Warehouse/industrial
Greater Gothenburg	96	611	4,180	6,845	215	706	93.2%	201	49	159	152
Öresund Region	42	295	1,640	5,549	99	670	86.2%	85	23	153	62
Greater Stockholm	36	193	1,413	7,308	88	905	87.8%	77	25	261	52
Mälardalen	42	177	978	5,536	61	692	90.0%	55	15	167	40
Eastern Götaland	35	186	727	3,908	44	477	86.9%	39	12	128	27
Total warehouse/industrial	251	1,462	8,938	6,113	507	694	90.0%	457	124	169	333
Total	543	3,088	27,742	8,984	1,489	964	89.6%	1,335	383	248	952
Leasing and property administration									85	55	– 85
Total after leasing and property administration									468	303	867
Development projects	13	83	796	–	23	–	–	13	8	–	5
Undeveloped land	31	–	379	–	–	–	–	–	–	–	–
Total	587	3,171	28,917	–	1,512	–	–	1,348	476	–	872

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 872 accounted for above and the net operating income of SEKm 864 in the income statement is explained by the adjustment of the net operating income of SEKm 8 on properties completed during the period, which are recalculated as if they had been completed during the whole period.

Fair value by property type Fair value by region

Property related key ratios	2009 Jan-June	2008 Jan-June	2008 Jan-Dec
Rental value, SEK/sq.m.	964	923	921
Economic occupancy rate	89.6%	89.5%	89.7%
Property costs, SEK/sq.m.	303	283	268
Net operating income, SEK/sq.m.	562	543	559
Fair value, SEK/sq.m.	8,984	9,122	8,984
Interest-bearing liabilities, SEK/sq.m.	4,809	4,397	4,605
Number of properties	587	573	587
Lettable area, thousand sq.m.	3,171	3,102	3,172

Segment information	Rental income	Income from property management
	2009 Jan-June	2008 Jan-June	2009 Jan-June	2008 Jan-June
SEKm
Greater Gothenburg	437	397	205	175
Öresund Region	282	265	121	114
Greater Stockholm	246	235	99	85
Mälardalen	214	168	78	58
Eastern Götaland	167	153	66	48
Total	1,346	1,218	569	480

The discrepancy between the income from property management of SEKm 569 (480) accounted for and the groups accounted income before tax of SEKm –189 (66) above consists of unallocated income from property management of SEKm –12 (–7), changes in property value of SEKm –814 (–467) and changes in values of interest rate derivatives of SEKm 68 (60).

Financing

Shareholders' equity and net asset value

Shareholders' equity was SEKm 9,399 (10,049). In order to adjust the company's capital structure the company may repurchase 9.2 million own shares in addition to the eight million shares which were repurchased earlier.

The net asset value, using an estimated discounted real deferred tax liability of 5%, can be calculated as follows.

Net asset value	SEKm	SEK/share
Equity according to the balance sheet	9,399	57
Reversed 26.3% deferred tax	2,724	17
Net asset value excluding tax	12,123	74
Estimated real liability, deferred tax 5%	– 518	– 3
Net asset value	11,605	71
Uncertainty range valutation of properties
+/– 5% after tax	+/– 1,374	+/– 8

Interest-bearing liabilities

The increased credit crunch has so far not directly affected Castellum's access to long-term funding. The turbulence on the market has remained during the fi rst half-year 2009, which has lead to continued fl uctuations in market interest rates.

Loan maturity structure

During the period Castellum has signed a new long term credit agreement of 1 billion SEK. As of 30 June, 2009 Castellum had long term binding credit agreements totalling SEKm 16,362 (15,800), long term bonds totalling SEKm 550 (650), short term binding credit agreements totalling SEKm 1,270 (770) and an unutilized commercial paper program of SEKm 4,000 (4,000). After deduction of liquid assets of SEKm 12 (9), net interest bearing liabilities were SEKm 15,238 (14,598).

Loans in banks are secured by pledged mortgages and/or fi nancial covenants. The fi nancial covenants state a loan to value ratio not exceeding 65% and an interest coverage ratio of at least 150% which Castellum fulfi l with good margin, 53% respectively 308%.

The average duration of Castellum's long term credit agreements was 5.6 years (5.5). Margins and fees on long term credit agreements had an average duration on 3.2 years (3.2).

Loan maturity structure

Long term, SEKm	Credit agreements	Utilized
1 - 2 years	500	500
2 - 3 years	500	–
3 - 4 years	5,000	4,998
4 - 5 years	–	–
> 5 years	10,562	8,800
Total long term credit agreements	16,562	14,298
Total short term credit agreements (0-1 year)	1,620	940
Total credit agreements	18,182	15,238
Unutilized credit in long term credit agreements		1,324

Interest rate maturity structure

The average effective interest rate as of 30 June, 2009 was 3.7% (4.8%), while the market interest rate for an equal portfolio was 2.2% (2,9%). The average fi xed interest term on the same date was 2.5 years (2.9).

In order to secure a stable and low net cash fl ow of interest income/costs over time, Castellum has chosen a relatively long fi xed interest term. Castellum has also chosen to work with interest rate derivatives, which is a cost effective and fl exible way of extending loans with short term interest rates to achieve the desired fi xed interest term.

Interest rate maturity structure

	Amount, SEKm	Average interest rate
0 - 1 year	6,936	2.5%
1 - 2 years	852	4.3%
2 - 3 years	600	4.5%
3 - 4 years	1,750	4.9%
4 - 5 years	2,500	4.6%
5 - 10 years	2,600	5.0%
Total	15,238	3.7%

Interest rate derivatives

According to the accounting standard IAS 39 interest rate derivatives are subject to market valuation, which means that there is a theoretical surplus / sub value if the stipulated interest rate varies from the current market rate, where the change in value, for Castellum, should be accounted for in the income statement.

As of 30 June, 2009, the market value of the interest rate derivative portfolio amounted to SEKm –899 as an effect of that the market interest rate for obtaining an interest portfolio equal to Castellum's interest rate structure was 2.2% compared to Castellum's average interest rate of 3.7%.

After the end of the period, The Bank of Sweden reduced the repo rate with 0.25%. This also led to a decrease in the long term interest rates and as of 10 July, 2009 the market value amounted to SEKm –950.

Consolidated Income Statement
	2009	2008	2009	2008	Rolling 12 months	2008
SEKm	April - June	April - June	Jan - June	Jan - June	July 08 - June 09	Jan - Dec
Rental income	677	613	1,346	1,218	2,629	2,501
Operating expenses	– 114	– 107	– 269	– 238	– 486	– 455
Maintenance	– 32	– 25	– 56	– 52	– 100	– 96
Ground rent	– 5	– 5	– 10	– 10	– 21	– 21
Real estate tax	– 31	– 30	– 62	– 60	– 117	– 115
Leasing and property administration	– 45	– 34	– 85	– 68	– 161	– 144
Net operating income	450	412	864	790	1,744	1,670
Central administrative expenses	– 21	– 18	– 39	– 34	– 76	– 71
Net fi nancial items	– 134	– 146	– 268	– 283	– 611	– 626
Income from property management	295	248	557	473	1,057	973
Changes in value
Properties	– 417	– 296	– 814	– 467	– 1,609	– 1,262
Interest rate derivatives	177	104	68	60	– 1,002	– 1,010
Income before tax	55	56	– 189	66	– 1,554	– 1,299
Current tax	2	– 3	– 5	– 6	– 13	– 14
Deferred tax	– 13	– 13	61	– 11	722	650
Net income for the period/year	44	40	– 133	49	– 845	– 663

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

Data per Share
	2009	2008	2009	2008	Rolling 12 months	2008
	April - June	April - June	Jan - June	Jan - June	July 08 - June 09	Jan - Dec
Average number of shares, thousand	164,000	164,000	164,000	164,000	164,000	164,000
Earnings after tax, SEK	0.27	0.24	– 0.81	0.30	– 5.15	– 4.04
Income from property management, SEK	1.80	1.51	3.40	2.88	6.45	5.93
Outstanding number of shares, thousand	164,000	164,000	164,000	164,000	164,000	164,000
Fair value of properties, SEK	176	176	176	176	176	178
Net asset value (5% deferred tax), SEK	71	83	71	83	71	75
Shareholders' equity, SEK	57	66	57	66	57	61

Since there is no potential common stock (e.g. convertibles), there is no effect of dilution.

Financial Key Ratios
	2009	2008	2009	2008	Rolling 12 months	2008
	April - June	April - June	Jan - June	Jan - June	July 08 - June 09	Jan - Dec
Net operating income margin	66%	67%	64%	65%	66%	67%
Interest coverage ratio	320%	270%	308%	267%	273%	255%
Return on equity	1.9%	1.5%	– 2.7%	0.9%	– 8.0%	– 6.1%
Return on net asset value	1.9%	3.5%	– 3.0%	2.0%	– 10.9%	– 8.3%
Return on total capital	0.2%	1.4%	0.1%	2.0%	0.2%	1.2%
Investments, SEKm	268	1,167	566	1,582	1,722	2,738
Loan to value ratio	53%	48%	53%	48%	53%	50%

Consolidated Balance Sheet

SEKm	30 June 2009	30 June 2008	31 Dec 2008
Assets
Investment properties	28,917	28,832	29,165
Other fi xed assets	13	15	15
Current receivables	171	116	215
Interest rate derivatives	–	104	–
Cash and bank	12	11	9
Total assets	29,113	29,078	29,404

Shareholders' equity and liabilities
Shareholders' equity	9,399	10,761	10,049
Deferred tax liability	2,724	3,427	2,785
Long term interest-bearing liabilities	15,250	13,641	14,607
Interest rate derivatives	899	–	966
Non interest-bearing liabilities	841	1,249	997
Total shareholders' equity and liabilities	29,113	29,078	29,404

Changes in Equity
	Number of outstanding shares,			Retained
SEKm	thousand	Share capital	Reserves	earnings	Total equity
Shareholders' equity 31-12-2007	164,000	86	20	11,098	11,204
Dividend, March 2008	–	–	–	– 492	– 492
Net income January-June 2008	–	–	–	49	49
Shareholders' equity 30-06-2008	164,000	86	20	10,655	10,761
Net income July-December 2008	–	–	–	– 712	– 712
Shareholders' equity 31-12-2008	164,000	86	20	9,943	10,049
Dividend, March 2009	–	–	–	– 517	– 517
Net income January-June 2009	–	–	–	– 133	– 133
Shareholders' equity 30-06-2009	164,000	86	20	9,293	9,399

Cash Flow Statement

	2009	2008	2008
SEKm	Jan - June	Jan - June	Jan - Dec
Net operating income	864	790	1,670
Central administrative expenses	– 39	– 34	– 71
Reversed depreciations	3	3	6
Net fi nancial items paid	– 316	– 280	– 499
Tax paid	– 13	– 21	– 26
Cash fl ow from operating activities before change in working capital	499	458	1,080
Change in current receivables	44	– 8	– 108
Change in current liabilities	– 94	– 28	106
Cash fl ow from operating activities	449	422	1,078
Investments in new constructions, extensions and reconstructions	– 566	– 712	– 1,526
Property acquisitions	–	– 776	–1,096
Change in liabilities at acquisitions of property	– 6	506	– 7
Property sales	–	–	25
Change in receivables at sales of property	–	2	3
Other net investments	0	– 5	– 8
Cash fl ow from investment activities	– 572	– 985	– 2,609
Change in long term liabilities	643	1,059	2,025
Dividend paid	– 517	– 492	– 492
Cash fl ow from investment activities	126	567	1,533
Cash fl ow for the year	3	4	2
Cash and bank, opening balance	9	7	7
Cash and bank closing balance	12	11	9

Opportunities and Risks

Opportunities and risks in the cash flow

Increasing market interest rates is normally over time 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.

Sensitivity analysis - cash fl ow
Effect on income, SEKm Probable scenario
	+/– 1% (units)	Boom	Recession
Rental level	+27/–27	+	–
Vacancies	+30/–30	+	–
Property costs	–9/+9	–	0
Interest costs	–35/+18*	–	+

* with the assumption that the rental levels never goes below 0%

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 volatile. Assuming a normal capital market, the value of the properties is determined by supply and demand, where the prices are mainly depending on the properties' expected net operating income and the buyer's required yield. An increasing demand, lower required yields and positive real development in net operating income lead to an upward adjustment in prices, while a weaker demand, higher required yields and negative real growth has the opposite effect.

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.

Sensitivity analysis - change in value

Properties	–20%	–10%	0	+10%	+20%
Changes in value, SEKm –5,783		–2,892	–	+2,892	+5,783
Loan to value ratio	66%	59%	53%	48%	44%

Financial risk

Ownership of properties presumes a working credit market. Castellum's greatest fi nancial risk is to lack access to funding. The risk is reduced by low loan to value ratio and long term credit agreements.

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.

	2009	2008	2009	2008
INCOME STATEMENT, SEKm	April-June	April-June	Jan-June	Jan-June
Income	3	2	7	5
Operating expenses	– 17	– 14	– 31	– 24
Net fi nancial items	5	4	12	12
Changes in value, interest
rate derivatives	177	104	68	60
Income before tax	168	96	56	53
Tax	– 44	– 27	– 15	– 15
Net income for the period	124	69	41	38
		30 June	30 June	31 Dec
BALANCE SHEET, SEKm		2009	2008	2008
Participations in group companies		4,087	4,087	4,087
Receivables, group companies			15,989 13,968 15,555
Other assets		230	3	244
Interest rate derivatives		–	104	–
Cash and bank		0	0	0
Total			20,306 18,162 19,886
Shareholders' equity		3,125	3,914	3,601
Interest bearing liabilities			14,948 13,314 14,304
Interest bearing liabilities,
group companies		1,140	803	775
Interest rate derivatives		899	–	966
Other liabilities		194	131	240
Total			20,306 18,162 19,886
Pledged assets			15,258 12,943 13,680
Contingent liabilities		300	300	300

Signing of the Half-year Report

The Board of Directors and the Chief Executive Offi cer assure that the Half-year Report provide a fair view of the parent company's and the Group's operations, fi nancial position and result as well as describes signifi cant risks and uncertainties that the parent company and the companies included in the Group are faced with.

Gothenburg July 14, 2009

Board member

Ulla-Britt Fräjdin-Hellqvist Christer Jacobson Board member Board member

Board member CEO

Jan Kvarnström Per Berggren Marianne Dicander Chairman Board member Alexandersson

Göran Lindén Håkan Hellström

Auditors' Report

Independent Auditors' Report on Review of Interim Financial Information.

To the Board of Directors of Castellum AB

Corporate indetity number: 556475-5550

Introduction

We have reviewed the half-yearly report for Castellum AB (publ), corporate identity number 556475-5550, for the period January 1 – June 30, 2009. The Board and the Managing Director are responsible for the preparation and presentation of this half-yearly report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this half-yearly report based on our review.

Scope of Review

We conducted our review in accordance with the Standard on Review Engagements SÖG 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by FAR. A review of interim fi nancial information consists of making inquiries, primarily of persons responsible for fi nancial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing in Sweden RS and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all signifi cant matters that might be identifi ed in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying half-yearly report is not prepared, in all material respects, in accordance with IAS 34 and the Annual Accounts Act.

Gothenburg 14 July 2009

Carl Lindgren Ingemar Rindstig

Authorized Public Accountant Authorized Public Accountant

The Castellum Share

The Castellum share is listed on NASDAQ OMX Stockholm AB Large Cap. At the end of the period the company had about 8,400 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	Number of shares thousand	Percentage of voting rights and capital
László Szombatfalvy	10,000	6.1%
AFA Sjukförsäkrings AB	8,670	5.3%
AMF Pensionsförsäkrings AB	7,750	4.7%
Andra AP-fonden	3,089	1.9%
Fjärde AP-fonden	2,826	1.7%
Kas Depositary Trust Company	2,165	1.3%
Lannebo Småbolag	2,000	1.2%
AFA Trygghetsförsäkring AB	1,945	1.2%
Första AP-fonden	1,705	1.1%
Swedbank Robur Småbolagsfond Sverige	1,260	0.8%
Övriga aktieägare registrerade i Sverige	48,598	29.6%
Aktieägare registrerade i utlandet	73,992	45.1%
Totalt utestående aktier	164,000	100.0%
Återköpta egna aktier	8,007
Totalt registrerade aktier	172,007

There is no potential common stock (eg. convertibles.)

Distribution of shareholders by country

The Castellum share price as at 30 June, 2009 was SEK 49.10 equivalent to a market capitalization of SEK 8.1 billion, calculated on the number of outstanding shares.

During the period a total of 107 million shares were traded, equivalent to an average of 880,000 shares per day, corresponding on an annual basis to a turnover rate of 135%.

Growth, yield and fi nancial risk

During the last 12-month period the total yield of the Castellum share has been –9%, including dividend of SEK 3.15.

Total yield of the share (incl. dividend)

	July 08 -	3 years	10 years
	June 09 average/year average/year
Castellum	– 9%	– 8%	+14%
NASDAQ OMX Stockholm (SIX Return)	– 8%	– 4%	+4%
Real Estate Index Sweden (EPRA)	– 13%	– 10%	+13%
Real Estate Index Europe (EPRA)	– 37%	– 22%	+3%

Valuation - share price related key figures

Earnings capacity

Income from property management before tax amounted on rolling annual basis to SEK 6.45 per share, which compared to the share price at the end of the period gives a multiple of 8.

Net income on rolling annual basis amounted to SEK –5.15 per share, which gives a negative multiple.

The share's earnings multiple

Net asset value

The net asset value, using an estimated discounted real deferred tax liability of 5%, can be calculated to SEKm 11,605, corresponding to 71 SEK/share. The share price at the end of the period was thus 69% of the net asset value.

Share price/net asset value

Dividend yield

The latest dividend of SEK 3.15 corresponds to a yield of 6.4% based on the share price at the end of the period.

The share's dividend yield

The Castellum share's price trend and turnover since IPO may 23, 1997 until July 7, 2009

Calendar

Interim Report January-September 2009 15 October, 2009 Year-end Report 2009 20 January, 2010 Annual Report 2009 During February 2010 Annual General Meeting 25 March, 2010 Interim Report January-March 2010 20 April, 2010 Half-year Report January-June 2010 13 July, 2010 Interim Report January-September 2010 19 October, 2010 Year-end Report 2010 25 January, 2011

For further information please contact Håkan Hellström, Chief Executive Offi cer, or Ulrika Danielsson, Finance Director, 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.

Subsidiaries

Aspholmen Fastigheter AB

Nastagatan 2, SE-702 27 Örebro Telephone +46 19-27 65 00 Fax +46 19-27 65 19 [email protected] www.aspholmenfastigheter.se

Fastighets AB Briggen

Fredriksbergsgatan 1, Box 3158, SE-200 22 Malmö Telephone +46 40-38 37 20 Fax +46 40-38 37 37 [email protected] www.briggen.se

Fastighets AB Brostaden

Bolidenvägen 14, Box 5013, SE-121 05 Johanneshov Telephone +46 8-602 33 00 Fax +46 8-602 33 30 [email protected] www.brostaden.se

Fastighets AB Corallen

Lasarettsgatan 3, Box 148, SE-331 21 Värnamo Telephone +46 370-69 49 00 Fax +46 370-475 90 [email protected] www.corallen.se

Eklandia Fastighets AB

Theres Svenssons gata 9, Box 8725, SE-402 75 Gothenburg Telephone +46 31-744 09 00 Fax +46 31-744 09 50 [email protected] www.eklandia.se

Harry Sjögren AB

Kråketorpsgatan 20, SE-431 53 Mölndal Telephone +46 31-706 65 00 Fax +46 31-706 65 29 [email protected] 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 [email protected] • www.castellum.se Org nr 556475-5550

AI assistant

Castellum — Interim / Quarterly Report 2009

2900_ir_2009-07-14_76fecda3-38fa-4a56-b88f-cb078939e24e.pdf

Half-year Report January-June 2009