Castellum — Interim / Quarterly Report 2012

Oct 16, 2012

Castellum AB (publ), Box 2269, SE-403 14 Gothenburg Org nr/Corp Id no SE 556075-5550 Tel +46 31 60 74 00 Fax +46 31 13 17 55

PRESS RELEASE No 15 – October 16, 2012

Castellum's interim report January-September 2012:

Continued positive development and CEO change in Castellum AB

• Rental income for the period January-September 2012 amounted to SEKm 2,285 (SEKm 2,181 corresponding period previous year).
• Income from property management amounted to SEKm 953 (889), corresponding to SEK 5.81 (5.42) per share, an increase with 7%.
• The changes in value on properties amounted to SEKm 56 (436) and on interest rate derivatives to SEKm -83 (-365).
• Net income after tax for the period amounted to SEKm 714 (719), corresponding to SEK 4.35 (4.38) per share.
• Net investments amounted to SEKm 1,536 (1,066) of which SEKm 886 (775) were new constructions, extensions and reconstructions.
• CEO Håkan Hellström will leave his position and retire at the next Annual General Meeting as at March 21, 2013.

Gross leasing (i.e. the annual value of total leasing) during the period was SEKm 235 (246), of which SEKm 53 (41) were leasing of new constructions, extensions and reconstructions. Notices of termination amounted to SEKm 192 (177), of which bankruptcies were SEKm 24 (15) and SEKm 17 (8) were notices of termination with more than 18 months remaining length of contract. Hence net leasing for the period was SEKm 43 (69) of which SEKm 30 (12) relates to the third quarter isolated.

"The current picture shows a continued good demand for premises, despite clear signs of a slowdown in the Swedish economy" comments CEO Håkan Hellström.

"Castellum is a strong company with high reputation, both as a player on the Swedish property market as well as an investment alternative on the Swedish and international capital markets. The company's strategy is based on financial strength and a decentralized organization in combination with operational risk diversification. The strategy was established in connection with the IPO 1997 and has since been consistently implemented and developed by three generations of CEO's" says the Chairman of the Board Charlotte Strömberg.

"It has been fantastic to be involved all 18 years since Castellum was founded, and as CEO the last 7 years. But I also feel that it is time to leave an executive position and spend more time on other things than work-related issues" comments CEO Håkan Hellström.

"I and the other members of the board would have liked to continue the cooperation with Håkan as CEO and we are sorry to see him leave the company. We thank Håkan for his valuable contribution to Castellum's development and at the same time we also respect his will to leave the operational role. Until Håkan leaves at the next AGM he and his management team has full support from the board to continue implementing the strategy of the company. Castellum's decentralized structure facilitates a smooth handover to a new CEO and objectives and strategies will be implemented at the same pace as before, in both long as well as short term" adds Charlotte Strömberg.

"The board now looks forward to complete the recruitment of Castellum's next CEO and the process is expected to be completed well in time before the AGM" concludes Charlotte Strömberg.

An election committee has been appointed in accordance to the Annual General Meeting's decision. The election committee is formed by Maj-Charlotte Wallin representing AFA Försäkring, Rutger van der Lubbe representing Stichting Pensioenfonds ABP, Johan Strandberg representing SEB Fonder and the Chairman of the Board Charlotte Strömberg. The election committee represents in total approx. 14% of the capital and votes in the company.

Shareholders are welcome to address matters to the election committee at the latest December 6, 2012 to Castellum AB, Att: Valberedningen, Box 2269, 403 14 Gothenburg.

Enclosure: Interim Report January-September 2012

For further information, please contact

Håkan Hellström, CEO, phone +46 31 60 74 00 / mobile +46 705-60 74 56 Ulrika Danielsson, Finance Director, phone +46 31 60 74 00 / mobile +46 706-47 12 61 Charlotte Strömberg, Chairman of the Board, mobile +702-77 04 03

www.castellum.se

Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to SEK 35 billion, and comprises premises for office, retail, warehouse and industrial purposes with a total lettable area of 3.4 million sq.m. 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 NASDAQ OMX Stockholm AB Large Cap.

Castellum AB (publ) discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.

The property Sändaren 1 in Jägersro, Malmö, where Castellum has started an extension and reconstruction

Interim Report January-September 2012

Interim Report January-September 2012

Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to SEK 35 billion, and comprises of 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 (incl. Borås and Halmstad), the Öresund Region (Malmö, Lund, Helsingborg and Copenhagen), 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-September 2012 amounted to SEKm 2,285 (SEKm 2,181 corresponding period previous year).
• Income from property management amounted to SEKm 953 (889), corresponding to SEK 5.81 (5.42) per share, an increase of 7%.
• Changes in value on properties amounted to SEKm 56 (436) and on interest rate derivatives to SEKm –83 (–365).
• Net income after tax for the period amounted to SEKm 714 (719), corresponding to SEK 4.35 (4.38) per share.
• Net investments amounted to SEKm 1,536 (1,066) of which SEKm 886 (775) were new constructions, extensions and reconstructions.
• CEO Håkan Hellström will leave his position and retire at the next Annual General Meeting March 21, 2013.

	2012 Jan-Sept	2011 Jan-Sept	2011	2010	2009	2008	2007	2006	2005	2004	2003
Income from property management, SEK/share	5.81	5.42	7.15	6.96	6.89	5.93	5.63	5.38	5.00	4.52	4.07
Change previous year	+7%	+3%	+3%	+1%	+16%	+5%	+5%	+8%	+11%	+11%	+8%
Net income after tax, SEK/share	4.35	4.38	4,34	11.98	0.98	– 4.04	9.07	10.21	7.89	5.59	2.68
Change previous year	–1%	–31%	–64%	+1,122%	pos.	neg.	–11%	+29%	+41%	+108%	–33%
Dividend, SEK/share			3.70	3.60	3.50	3.15	3.00	2.85	2.62	2.38	2.13
Change previous year			+3%	+3%	+11%	+5%	+5%	+9%	+11%	+12%	+13%
Property value, SEKm	35,433	33,273 33,867			31,768 29,267	29,165	27,717	24,238	21,270	19,449	18,015
Net investments, SEKm	1,536	1,066	1,908	1,279	1,129	2,710	2,559	1,823	889	774	711
Loan to value	52%	50%	51%	50%	52%	50%	45%	45%	45%	45%	48%

Business Concept

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

Objective

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

The objective is an annual growth in cash fl ow, i.e., income from property management per share, of at least 10%. In order to achieve this objective, net investments of at least 5% of the property value will be made yearly. At the moment, this is equivalent to approx. SEKm 1,700. All investments shall contribute to the objective of growth in income from property management within 1-2 years and have a potential asset growth of at least 10%. Sales of properties will take place when justifi ed from a business standpoint and when an alternative investment with a higher return can be found. In operations, there shall be an continuing focus on improved productivity and effi ciency.

Strategy for Funding

Capital structure

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

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

Dividend

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

The stock and credit markets

Castellum will work for a competitive total return on the company's share relative to risk and also strive for high liquidity. All actions will be made from a long-term perspective and the company will hold frequent, open and fair reports to shareholders, the capital and credit markets and the media, without disclosing any individual business relationship.

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

Domnarvet 18 and 36, Stockholm, acquired during the third quarter 2012

Riggen 2, Huddinge, acquired during the third quarter 2012

Customers and organization

The customers - a reflection of Swedish domestic economy

Castellum has approx. 4,600 commercial contracts, with good risk exposure regarding geography, type of premises, length of contracts and fi elds of industry of the customer. The single largest contract corresponds to approx. 1% of Castellum's total rental income.

It is important that Castellum meets customers expectations. To follow up and evaluate efforts, an external customer survey is carried out annually, Satisfi ed Customer Index. The latest survey, that included offi ces, warehouses, industry and retail, continues to show consistently high marks for Castellum.

Commercial leases

Commercial leases are signed for a specifi ed period of time, generally 3-5 years, where the period of notice is 9 months. The leases normally include a base-rent and an index clause, which provides for an adjustment of the rent corresponding to a certain percentage or connected to the infl ation. Leases may also contain supplements for the tenant's share of the property's total heating, cooling and property-tax costs.

Decentralized and small-scale organization

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

Property management is mainly carried out by Castellum personnel.

Subsidiaries with strong brands

Castellum has six wholly owned subsidiaries which each engage about 35 employees. The subsidiary organizations are not identical but are in principle made up of a Managing Director, 2-4 market areas, business developers and 3-5 employees within fi nance and administration. Each market area employs one property manager with one assistant, one person working with leasing and 3-8 facility managers. Everyone has customer contact. The fl at organization provides a short decision-making process and creates a customer oriented and active organization.

Castellum subsidiaries operate under their own names, which are strong brands on each local market.

Castellums' 4 corner stones

Cash fl ow focus

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

Commercial properties in growth regions

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

Customer focus through local organizations

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

Employees

Castellum works actively to hire and retain top-notch employees by offering a stimulating work environment, competence development and sharing of experiences both internally and externally.

Employee viewpoints on Castellum are monitored regularly and surveys show that employees enjoy their working situation and have high confi dence in the company and its management.

The group has approx. 250 employees.

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). Further Castellum also handles rules for decision making and work allocation, overall policies, IT/IS strategies, personnel and legal matters. Castellum AB has 19 employees.

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

Strong balance sheet and low fi nancial risk

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

Responsible business

Responsible business for Castellum means a responsible manner towards customers, employees and other stakeholders and to develop the business activities with least possible impact on the environment. The driving forces for this work are, besides contributing to a sustainable society, added value through good management and hence customer satisfaction, lower costs, stronger brand and increased competitiveness.

Castellum has since the company was founded been working on creating a corporate culture with a good working environment where employee skills and committment are utilized and developed. Castellum's code of business conduct rate govering day-to-day activities, and are closely aligned with the UN's Global Compact Code of Conduct. The responsibility also means to set fi rm environmental and quality demands on suppliers. Castellum, as one of the largest real estate owners on local markets, also contributes to the regional development and the development of the property portfolio through co-operation with municipalities and universities/colleges.

Environmental efforts are focused on effi cient energy consumption and improving the general environmental status of each property. Castellum owns 94 Green Building classifi ed buildings, one Breeam certifi ed and one building certifi ed "Miljöbyggnad".

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 comparisons 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 for the period January-September 2012 to SEKm 953 (889), equivalent to SEK 5.81 (5.42) per share - an increase of 7%. Income from property management rolling four quarters amounted to SEKm 1,237 (1,169) equivalent to SEK 7.54 per share (7.13) - an increase of 6%.

Income from Property Management per share

During the period, changes in value on properties amounted to SEKm 56 (436) and on interest rate derivatives to SEKm –83 (–365). Net income after tax for the period was SEKm 714 (719), equivalent to SEK 4.35 (4.38) per share.

Rental income

Group rental income amounted to SEKm 2,285 (2,181). For offi ce and retail properties, the average contracted rental level, including charged heating, cooling and property tax, amounted to SEK 1,252 per sq.m., whereas for warehouse and industrial properties, it amounted to SEK 742 per sq.m. Rental levels, which are considered to be in line with the market, have increased by 2% in comparable portfolio compared with previous year, which is mainly an effect of index clause adjustments.

Rental value and economic occupancy rate

The average economic occupancy rate was 88.5% (89.4%) and has during the third qaurter been affected by both acquisitions as well as transfers to and from the project portfolio. The total rental value for vacant premises on yearly basis amounted to approx. SEKm 437 (373).

Gross leasing (i.e. the annual value of total leasing) during the period was SEKm 235 (246), of which SEKm 53 (41) were leasing of new constructions, extensions and reconstructions. Notices of termination amounted to SEKm 192 (177), of which bankruptcies were SEKm 24 (15) and SEKm 17 (8) were notices of termination with more than 18 months remaining length of contract. Hence net leasing for the period was SEKm 43 (69) of which SEKm 30 (12) relates to the third quarter isolated. The time difference between reported net leasing and the effect in income thereof is estimated to be between 9-18 months.

Net leasing

The demand on both existing and new constructed premises remains, despite a weakening in the economy, on a good level, which is valid for all Castellum's property types as well as regions. It can be noted that the number of bankruptcies increased slightly, although from a low level.

Rental levels are expected to remain stable.

Property costs

Property costs amounted to SEKm 753 (738) corresponding to SEK 293 per sq.m. (297). Costs for heating during the period has been calculated to 93% (89%) of a normal year according to the degree day statistics.

Property costs, SEK/sq.m.
	Offi ce/	Warehouse/	Total	Total
	Retail	Industrial	2012	2011
Operating expenses	187	117	154	167
Maintenance	44	25	36	31
Ground rent	8	6	7	7
Property tax	67	18	44	44
Direct property costs	306	166	241	249
Leasing and property
administration (indirect)	–	–	52	48
Total	306	166	293	297
Previous year	317	169	297

Central administrative expenses

Central administrative expenses totalled SEKm 66 (63). This includes costs for a profi t-and-share-price related incentive plan for 10 persons in executive management of SEKm 8 (11).

Net interest rate

Net interest items were SEKm –513 (–491). The average interest rate level was 4.0% (4.1%).

Interest rate levels

Changes in value

The transaction volume on the Swedish real estate market totalled approx SEK 65 billion (75) during the period, of which the third quarter accounted for SEK 15 billion (25). Of the transaction volume 70% (50%) where carried out outside the central parts of the major urban regions. Commercial properties accounted for 75% (54%) and foreign buyers for approx. 20% of the transaction volume, which is a slightly higher proportion compared to previous year.

There are arguments that the market's yield for the third quarter are stable, but there are also arguments that they are slightly increased for some types of properties and regions, while slightly decreased for others. The uncertainty and the lower transaction volume in combination with an index clause adjustments for 2013, for Castellum calculated to approx. 0.5%, means that no general yield change has been made in the valuations.

The change in value in Castellum's portfolio during the period amounted to SEKm 56 (436) and consists of individual adjustments on property level, project gains and acquisitions. The change in value includes SEKm 20 from 15 sold properties. The net sales price amounted to SEKm 253 after reduction for assessed deferred tax and transaction costs of SEKm 13. Hence the underlying property price, which amounted to SEKm 266, exceeded the latest valuation of SEKm 233 with SEKm 33.

The value in the derivatives portfolio has changed by SEKm –83 (–365), mainly due to changes in long-term market interest rates. Castellum's currency derivatives, with purpose to hedge currency fl uctuations in Danish investment, has during the period changed SEKm 14 (–2) where the value changes is accounted for in the other total net income.

Tax

The nominal corporate tax rate in Sweden is 26.3%. Due to the possibility to deduct depreciation and reconstructions for tax purposes, and to utilize tax loss carry forwards, the paid tax is low.

Remaining tax loss carryforwards can be calculated to SEKm 1,567 (1,772). Fair values for the properties exceed their fi scal value by SEKm 16,969 (16,197) of which SEKm 510 relates to properties acquired and accounted for as asset acquisitions. As deferred tax liability, a full nominal 26.3% tax of the net difference is reported, reduced by the deferred tax relating to asset acquisitions, i.e., SEKm 3,917 (3,714).

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

The Government has proposed a decreased corporate tax rate to 22% with effect from January 1, 2013. If the proposal is adopted it entails a one off income item for Castellum of approx. SEKm 640, due to revaluation of deferred tax.

Tax Calculation 30-09-2012
	Basis	Basis
SEKm	current tax	deferred tax
Income from property management	953
Deductions for tax purposes
depreciations	– 491	491
reconstructions	– 189	189
Other tax allowances	– 7	– 7
Taxable income from property management	266	673
Properties sold	58	– 144
Changes in value on properties	–	36
Changes in value on interest rate derivatives	– 83	–
Taxable income before tax loss carry forwards	241	565
Tax loss carry forwards, opening balance	– 1,772	1,772
Tax loss carry forwards, closing balance	1,567	– 1,567
Taxable income	36	770
Of which 26.3% current/deferred tax	– 9	– 203

Real Estate Portfolio

The real estate portfolio is located in Greater Gothenburg, the Öresund Region, Greater Stockholm, Mälardalen and Eastern Götaland. The three major urban regions represents approx. 75% of the portfolio.

The commercial portfolio consists of 65% offi ce and retail properties and 31% warehouse and industrial properties. The properties are located from inner city sites (except in Greater Stockholm from inner suburbs) to well-situated working-areas with adequate means of communication and services. The remaining 4% consist of projects and undeveloped land.

Castellum owns approx. 770,000 sq.m. of unutilized building rights and ongoing projects with an remaining investment level of approx. SEKm 1,300.

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, 2012	33,867	617
+ Acquisitions	903	21
+ New constructions, extensions and reconstructions	886	–
– Sales	– 233	– 15
+/– Unrealized changes in value	36	–
+/– Currency translation	– 26	–
Real estate portfolio on 30 September, 2012	35,433	623

During the period, investments totalling SEKm 1,789 (1,169) were carried out, of which SEKm 886 (775) were new constructions, extensions and reconstructions and SEKm 903 (394) were acquisitions. Of the total investments SEKm 500 refers to Mälardalen, SEKm 444 to Greater Gothenburg, SEKm 341 to Greater Stockholm, SEKm 263 to Öresund Region and SEKm 241 to the Eastern Götaland.

After reduction for sold properties of SEKm 253 (103) the net investments totalled SEKm 1,536 (1,066).

Net property investments

Property value

Internal valuations

Castellum assesses the value of the properties through internal valuations. These are based on a 10-year cash fl ow based model with an individual valuation 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, on average approx. SEK 970 per sq.m. 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 valuations has historically been small.

Based on these internal valuations, property value at the end of the period were assessed to SEKm 35,433 (33,867), corresponding to approx. SEK 9,900 per sq.m.

Average valuation yield
(excl. project/land and building rights)	SEKm
Net operating income properties	1,685
+ Estimated index adjustment 2013, 0.5%	12
+ Real occupancy rate, 94% at the lowest	199
+/- Property cost annual rate	0
– Property administration, 30 SEK/sq.m.	– 78
Normalized net operating income (9 months)	1,818
Valuation (excl. building rights of SEKm 475)	33,518
Average valuation yield	7.2%

Larger investments and sales

Larger projects	Area	Econ. occup.	Total inv., land Remain. inv.
Property	sq.m	Oct. 2012	incl. SEKm		SEKm Completed Comment
Ongoing projects
Lindholmen 28:3, Gothenburg	10,500	8%	280	153	Q1 2013	New construction offi ce
Atollen, Jönköping	6,019	10%	169	98	Q3 2013	New construction offi ce/retail/residentials
Fullriggaren 4, Malmö	5,400	0%	149	41	Q1 2013	New construction offi ce
Sändaren 1, Malmö	14,000	100%	101	101	Q4 2013	Reconstruction and extension offi ce
Visiret 2, Huddinge	9,600	100%	71	57	Q2 2013	New construction car park
Åby 1:223, Jordbro	6,550	0%	67	57	Q1 2014	New construction warehouse/logistic
Trucken 4, Borås	9,200	100%	58	12	Q4 2012	New construction warehouse
Rosersberg 11:34, Sigtuna	4,080	0%	40	15	Q4 2012	Extension warehouse/offi ce
Ättehögen 18, Jönköping	3,100	100%	39	19	Q1 2013	New construction production premises
Projects completely / partly moved in
Forskaren 2, Lund	7,400	19%	136	52	Q1 2013	New construction offi ce
Gården 15, Linköping	9,855	46%	106	11	Q1 2013	New construction offi ce/retail/warehouse
Inköparen 1, Örebro	4,300	80%	68	7	Q2 2013	New construction offi ce
Kärra 28:18, Gothenburg	5,440	100%	45	1	Q3 2012	New construction warehouse
Elementet 4, Sollentuna	3,404	100%	36	0	Q3 2012	New construction warehouse/logistic
Larger acquisitions during 2012	Area	Econ. occup.	Acquisition
Property	sq.m	Oct 2012	SEKm		Access	Cathegory
Litografen 1 & 2, Elektrikern 3, Bleckslagaren 1, Kontrollanten 12, Distributören 2, Örebro	63,135	85%	299			Sept 2012 Warehouse/offi ce/retail
Veddesta 2:68, Domnarvet 18 & 36, Ostmästaren 2, Stockholm	15,500	100%	154			Sept 2012 Offi ce/warehouse
Högsbo 17:7, 36:6 & 36:7, Gothenburg	17,540	93%	148			April 2012 Offi ce/warehouse
Helgeshøj Allé 38, Copenhagen	19,195	70%	111			June 2012 Warehouse/offi ce/other
Riggen 2, Huddinge	5,500	100%	56		Sept 2012 Offi ce
Transformervej 14-16, Copenhagen	5,900	100%	46		June 2012 Offi ce
Flahult 21:5, Jönköping	9,023	100%	45			Sept 2012 Warehouse
Larger sales during 2012 Property	Area sq.m	Underlying prop.	Trans. costs price, SEKm deferred tax, SEKm price, SEKm Access	Net sales		Cathegory
Märsta 16:2, 17:6, 21:54, 16:3, 1:219 and
Broby 11:2, Sigtuna	16,620	123	– 7	116		June 2012 Industrial/offi ce/warehouse
Lorensberg 46:5, Gothenburg	970	44	– 4	40	May 2012 Offi ce
Vindruvan 21, Värnamo	3,140	37	0	37	Oct 2012	Retail
Lindome 2:40 and 2:47, Mölndal	12,430	33	– 2	31		June 2012 Warehouse

Castellum's real estate portfolio 30-09-2012

	30-09-2012				January-September 2012
	No. of properties	Area thous. 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
Offi ce/retail
Greater Gothenburg	79	431	6,141	14,254	414	1,283	93.5%	388	96	296	292
Öresund Region	61	363	5,412	14,907	390	1,431	82.3%	321	89	325	232
Greater Stockholm	52	336	4,336	12,918	349	1,389	79.9%	279	83	329	196
Mälardalen	75	374	4,058	10,857	309	1,101	92.9%	287	86	308	201
Eastern Götaland	53	315	3,012	9,543	245	1,035	89.7%	220	64	271	156
Total offi ce/retail	320	1,819	22,959	12,622	1,707	1,252	87.5%	1,495	418	306	1,077
Warehouse/industrial
Greater Gothenburg	100	650	5,018	7,722	367	753	92.9%	341	75	155	266
Öresund Region	42	314	1,862	5,921	168	711	85.3%	143	37	156	106
Greater Stockholm	47	235	2,136	9,076	170	966	89.2%	152	40	225	112
Mälardalen	39	216	1,230	5,697	114	704	96.3%	110	32	197	78
Eastern Götaland	34	190	788	4,154	75	524	83.8%	62	16	113	46
Total warehouse/industrial	262	1,605	11,034	6,873	894	742	90.4%	808	200	166	608
Total	582	3,424	33,993	9,927	2,601	1,013	88.5%	2,303	618	241	1,685
Leasing and property administration									134	52	– 134
Total after leasing and property administration									752	293	1,551
Development projects	14	92	1,135	–	60	–	–	30	16	–	14
Undeveloped land	27	–	305	–	–	–	–	–	–	–	–
Total	623	3,516	35,433	–	2,661	–	–	2,333	768	–	1,565

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 1,565 accounted for above and the net operating income of SEKm 1,532 in the income statement is explained by the deduction of the net operating income of SEKm 9 on properties sold during the period, as well as the adjustment of the net operating income of SEKm 42 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 Segment information

	2012 Jan-Sept	2011 Jan-Sept	2011 Jan-Dec
Rental value, SEK/sq.m.	1,013	991	995
Economic occupancy rate	88.5%	89.4%	89.3%
Property costs, SEK/sq.m.	293	297	300
Net operating income, SEK/sq.m.	604	588	589
Property value, SEK/sq.m.	9,927	9,845	9,835
Number of properties	623	604	617
Lettable area, thousand sq.m.	3,516	3,331	3,411

		Rental income	Income from property management
	2012	2011	2012	2011
SEKm	Jan-Sept	Jan-Sept	Jan-Sept	Jan-Sept
Greater Gothenburg	730	715	346	341
Öresund Region	457	421	193	181
Greater Stockholm	422	410	172	156
Mälardalen	392	361	147	127
Eastern Götaland	284	274	117	107
Total	2,285	2,181	975	912

The discrepancy between the income from property management of SEKm 975 (912) above and the groups accounted income before tax of SEKm 926 (960) consists of unallocated income from property management of SEKm –22 (–23), changes in property value of SEKm 56 (436) and changes in values of interest rate derivatives of SEKm –83 (–365).

Financing

Castellum's assets had a value of SEKm 35,739 (34,171) on 30 September 2012 and these are fi nanced as follows.

Financing 30-09-2012

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

Loan to value ratio and interest coverage ratio

Credit market

The period was marked by unease on the fi nancial markets in Europe and the economic development in the euro area remains week. The Swedish economy developed stronger than expected during the year. A slowdown of the development in Sweden is expected in the next 12 months with a weak development in the labour markets as a result. The expected weak development caused the Swedish Riksbank to cut the repo rate in September with 0.25% to 1.25%. The long term interest rates have been highly volatile during the period and are now at historically low levels.

Generally, access to credit is now at the same levels as corresponding period last year, whereas it for Castellum is considered to be slightly better.

Loan maturity structure

At the end of the period Castellum had binding credit agreements totalling SEKm 22,142 (22,029) of which SEKm 19,561 (19,374) were long term binding and SEKm 2,581 (2,655) were short term binding.

During September Castellum has completed the fi rst issue under its MTN-program. The total issued amount were SEKm 700 with a duration of 3 years, of which SEKm 575 has a fl oating interest rate and SEKm 125 has a fi xed interest rate. After the end of the period Castellum closed an unutilized credit facility of SEKm 500.

After deduction of liquid assets of SEKm 14 (97), net interest bearing liabilities were SEKm 18,458 (17,063), of which SEKm 700 (0) were MTN and SEKm 1,656 (2,235) outstanding commercial papers.

Most of Castellum's loans are short-term revolving loans, utilized in long-term binding credit agreements in the largest nordic banks. This means great fl exibility in the choice of interest rate base, interest rate period and tied up capital. The MTN-program is a complement to the existing funding in banks and will broaden the funding base.

Long-term loan commitments in banks are secured by pledged mortgages and/or fi nancial covenants. Outstanding commercial papers and the MTN-program are unsecured. The interest bearing liabilities amounted to SEKm 18,458 (17,063) of which SEKm 15,880 (14,797) were secured by the company's properties and SEKm 2,578 (2,266) unsecured. The fi nancial covenants state a loan-to-value ratio not exceeding 65% and an interest coverage ratio of at least 150%, which Castellum fulfi ls with comfortable margins, 52% and 286% respectively. The average duration of Castellum's long-term credit agreements was 4.4 years (5.1). Margins and fees on long-term credit agreements had an average duration of 3.0 years (3.5).

Total	22,142	16,102	2,356	18,458
> 5 years	7,834	6,634	–	6,634
4 - 5 years	7	7	–	7
3 - 4 years	8,807	7,957	–	7,957
2 - 3 years	2,707	1,507	700	2,207
1 - 2 years	207	7	–	7
0 - 1 year	2,580	– 10	1,656	1,646
SEKm	Credit agreements	Bank	MTN / Cert	Total
			Utilized in:
	Loan maturity structure 30-09-2012

Unutilized credit in long term credit agreements 1,104

Interest rate maturity structure

The average effective interest rate as of 30 September, 2012 was 3.6% (4.0%). The market interest rate for an equal portfolio, regarding both current market rate and credit margin, can be assessed to 4.4% (4.7%). In order to secure a stable and low net cash fl ow of interest income/costs the interest rate maturity structure is distributed over time. The average fi xed interest term on the same date was 2.9 years (2.7).

Castellum utilizes interest rate derivatives to achieve the desired interest rate maturity structure. Interest rate derivatives is a cost effective and fl exible way of extending loans with short term interest rates to achieve the desired fi xed interest term. In the interest rate maturity structure, interest rate derivatives 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 30-09-2012
	Interest rate
	Loan	derivatives		Closing
	SEKm	SEKm	Net, SEKm	interest rate
0 - 1 year	18,333	– 9,700	8,633	3.4%
1 - 2 years	–	900	900	2.6%
2 - 3 years	125	800	925	4.1%
3 - 4 years	–	1,800	1,800	4.3%
4 - 5 years	–	1,800	1,800	4.0%
5 - 10 years	–	4,400	4,400	3.8%
Total	18,458	–	18,458	3.6%

Interest rate maturity structure

Currency

Castellum has made investments of SEKm 405 in Denmark, which means that the Group is exposed to a currency risk. A currency translation risk is primarily related to when income statement and balance sheet in foreign exchange are translated into Swedish currency. In accordance with the fi nancial policy, between 60-100% of investments in foreign subsidiaries are to be fi nanced in local currency.

Interest rate and currency derivatives

According to the accounting standard IAS 39, derivatives are subject to market valuation. Castellum utilizes interest rate derivatives 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 affecting changes in value are reported in the income statement. Castellum also has derivatives in order to hedge currency fl uctuation in its investment in Denmark. As for currency derivatives, a theoretical surplus / 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.

As of 30 September, 2012, the market value of the interest rate and the currency derivative portfolio amounted to SEKm –1,072 (–1,003).

	Policy	Committment	Outcome
Loan to value ratio	Not in the long run exceeding 55%	No more than 65%	52%
Interest coverage ratio	At least 200%	At least 150%	286%
Interest rate risk
– average fi xed interest term	0.5-3 years	–	2.9 years
– proportion maturing within 6 months	No more than 50%	–	36%
Currency risk
– investment	60%-100% funded in local currency	–	86%
– other currency risks	Not allowed	–	No exposure
Funding risk	At least 50% of interest bearing liabilities have a duration of at least 2 years	–	100%
Counterparty risk	Credit institutions with high ratings, at least "investment grade"	–	Satisfi ed
Liquidity risk	Liquidity reserve in order to fulfi ll payments due	–	SEKm 1,104 unutilized credit agreements

Castellum's fi nancial policy and committments in credit agreements

Consolidated statement of Comprehensive Income
	2012	2011	2012	2011	Rolling 4 quarters	2011
SEKm	July - Sept	July - Sept	Jan - Sept	Jan - Sept	Oct 11 - Sept 12	Jan - Dec
Rental income	764	734	2,285	2,181	3,023	2,919
Operating expenses	– 109	– 106	– 397	– 416	– 534	– 553
Maintenance	– 33	– 25	– 90	– 77	– 128	– 115
Ground rent	– 6	– 6	– 18	– 18	– 24	– 24
Property tax	– 38	– 37	– 114	– 108	– 154	– 148
Leasing and property administration	– 43	– 38	– 134	– 119	– 178	– 163
Net operating income	535	522	1,532	1,443	2,005	1,916
Central administrative expenses	– 19	– 18	– 66	– 63	– 86	– 83
Net interest rates	– 169	– 170	– 513	– 491	– 682	– 660
Income from property management	347	334	953	889	1,237	1,173
Changes in value
Properties	28	48	56	436	– 186	194
Derivatives	– 192	– 432	– 83	– 365	– 147	– 429
Income before tax	183	– 50	926	960	904	938
Current tax	– 3	– 4	– 9	– 6	– 13	– 10
Deferred tax	– 46	16	– 203	– 235	– 185	– 217
Net income for the period/year	134	– 38	714	719	706	711
Other total net income
Translation difference of currencies	– 20	1	– 20	2	– 22	0
Unrealized change in value, derivatives	14	– 1	14	– 2	16	0
Total net income for the period/year	128	– 38	708	719	700	711

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

Data per Share
	2012	2011	2012	2011	Rolling 4 quarters	2011
	July - Sept	July - Sept	Jan - Sept	Jan - Sept	Oct 11 - Sept 12	Jan - Dec
Average number of shares, thousand	164,000	164,000	164,000	164,000	164,000	164,000
Income from property management, SEK	2.12	2.04	5.81	5.42	7.54	7.15
Income from property management after tax (EPRA EPS*), SEK	1.93	1.88	5.38	5.10	7.29	7.01
Earnings after tax, SEK	0.82	– 0.23	4.35	4.38	4.30	4.34
Outstanding number of shares, thousand	164,000	164,000	164,000	164,000	164,000	164,000
Property value, SEK	216	203	216	203	216	207
Long term net asset value (EPRA NAV*), SEK	99	97	99	97	99	97
Actual net asset value (EPRA NNNAV*), SEK	88	87	88	87	88	87

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

Financial Key Ratios
	2012	2011	2012	2011	Rolling 4 quarters	2011
	July - Sept	July - Sept	Jan - Sept	Jan - Sept	Oct 11 - Sept 12	Jan - Dec
Net operating income margin	70%	71%	67%	66%	66%	66%
Interest coverage ratio	305%	296%	286%	281%	281%	278%
Return on actual net asset value	4.8%	– 1.4%	8.1%	8.8%	5.9%	6.4%
Return on total capital	6.2%	6.6%	5.8%	7.4%	5.0%	6.2%
Net investments, SEKm	801	328	1,536	1,066	2,378	1,908
Loan to value ratio	52%	50%	52%	50%	52%	51%

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

Consolidated Balance Sheet
SEKm	30 Sept 2012	30 Sept 2011	31 December 2011
Assets
Investment properties	35,433	33,273	33,867
Other fi xed assets	24	13	15
Current receivables	268	179	192
Cash and bank	14	146	97
Total assets	35,739	33,611	34,171
Shareholders' equity and liabilities
Shareholders' equity	11,304	11,211	11,203
Deferred tax liability	3,917	3,731	3,714
Derivatives	1,072	941	1,003
Long term interest-bearing liabilities	18,472	16,739	17,160
Non interest-bearing liabilities	974	989	1,091
Total shareholders' equity and liabilities	35,739	33,611	34,171
Pledged assets (property mortgages)	18,796	18,873	18,986
Contingent liabilities	–	–	–
Changes in Equity

SEKm	No of outstanding shares, thousand Share capital		Other capital contribution	Translation of currency reserve	Hedging of currency reserve	Retained	earnings Total equity
Shareholders' equity 31-12-2010	164,000	86	4,096	–	–	6,900	11,082
Dividend, March 2011 (SEK 3.60/share)	–	–	–	–	–	– 590	– 590
Net income Jan-Sept 2011	–	–	–	–	–	719	719
Other total net income Jan-Sept 2011	–	–	–	2	– 2	–	0
Shareholders' equity 30-09-2011	164,000	86	4,096	2	– 2	7,029	11,211
Net income Oct-Dec 2011	–	–	–	–	–	– 8	– 8
Other total net income Oct-Dec 2011	–	–	–	– 2	2	–	0
Shareholders' equity 31-12-2011	164,000	86	4,096	0	0	7,021	11,203
Dividend, March 2012 (SEK 3.70/share)	–	–	–	–	–	– 607	– 607
Net income Jan-Sept 2012	–	–	–	–	–	714	714
Total net income Jan-Sept 2012	–	–	–	– 20	14	–	– 6
Shareholders' equity 30-09-2012	164,000	86	4,096	– 20	14	7,128	11,304

	Cash Flow Statement
--	---------------------

	2012	2011	2012	2011	Rolling 4 quarters	2011
SEKm	July - Sept	July - Sept	Jan - Sept	Jan - Sept	Oct 11 - Sept 12	Jan - Dec
Net operating income	535	522	1,532	1,443	2,005	1,916
Central administrative expenses	– 19	– 18	– 66	– 63	– 86	– 83
Reversed depreciations	2	1	6	4	8	6
Net interest rates paid	– 213	– 174	– 526	– 466	– 711	– 651
Tax paid	– 3	– 4	– 8	– 10	– 12	– 14
Translation difference foreign operations	6	0	6	0	6	0
Cash fl ow from operating activities before change in
working capital	308	327	944	908	1,210	1,174
Change in current receivables	– 28	– 16	– 34	– 38	– 47	– 51
Change in current liabilities	– 9	35	– 131	119	– 66	184
Cash fl ow from operating activities	271	346	779	989	1,097	1,307
Investments in new constructions, refurbishments and extensions	– 273	– 247	– 886	– 775	– 1,269	– 1,158
Property acquisitions	– 570	– 81	– 903	– 394	– 1,366	– 857
Change in liabilities at acquisitions of property	79	– 43	26	– 148	79	– 95
Property sales	42	–	253	98	257	102
Change in receivables at sales of property	2	6	– 42	3	– 42	3
Other net investments	– 2	– 1	– 15	– 7	– 14	– 6
Cash fl ow from investment activities	– 722	– 366	– 1,567	– 1,223	– 2,355	– 2,011
Change in long term liabilities	406	62	1 312	958	1 733	1 379
Dividend paid	–	–	– 607	– 590	– 607	– 590
Cash fl ow from investment activities	406	62	705	368	1,126	789
Cash fl ow for the period/year	– 45	42	– 83	134	– 132	85
Cash and bank, opening balance	59	104	97	12	146	12
Cash and bank closing balance	14	146	14	146	14	97

The Parent Company

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

The parent company takes part in property-related operations through involvement in subsidiary Boards.

Income statement SEKm	2012 July-Sept	2011 July-Sept	2012 Jan-Sept	2011 Jan-Sept
Income	3	3	11	11
Operating expenses	– 13	– 13	– 47	– 44
Net fi nancial items	7	2	14	10
Changes in value, interest
rate derivatives	– 192	– 432	– 83	– 365
Income before tax	– 195	– 440	– 105	– 388
Tax	51	116	27	102
Net income for the period	– 144	– 324	– 78	– 286
Comprehensive income for the parent company
Net income for the period	– 144	– 324	– 78	– 286
Other total net income
Translation diff. foreign operations – 16		1	– 16	2
Unrealized change, currency hedge 14		– 1	14	– 2
Total net income for the period	– 146	– 324	– 80	– 286
Balance sheet SEKm		30 Sept 2012	30 Sept 2011	31 Dec 2011
Participations in group companies		5,338	4,087	5,338
Receivables, group companies		18,403	17,021	18,204
Other assets		312	279	280
Cash and bank		0	0	0
Total		24,053	21,387	23,822
Shareholders' equity		4,170	3,052	4,857
Derivatives		1,072	941	1,003
Interest bearing liabilities		17,302	15,551	15,909
Interest bearing liabilities,
group companies		1,366	1,675	1,899
Other liabilities		143	167	154
Total		24,053	21,387	23,822
Pledged assets (receivables group companies)		15,944	16,103	16,103
Contingent liabilities (guaranteed commitments for subsidiaries)		1,167	1,062	1,174

Accounting Principles

Castellum follows the EU-adopted IFRS standards and interpretations (IFRIC). This interim report has been prepared according to IAS 34 Interim Financial Reporting and Annual Accounts Act. Castellum has changed the reporting of sales of property through companies. Previously the transaction was gross accounted concerning underlying property price and calculated tax, while it's now net accounted. The change doesn't affect net income, but it is an offset between changes in value and deferred tax. Previous years have not been adjusted because the amounts were insignifi cant. Accounting principles and methods for calculations have otherwise remained unchanged compared with the Annual Report of the previous year.

Opportunities and Risks for Group and Parent Company

Opportunities and risks in the cash flow

Over time, increasing market interest rates normally constitute an effect of economic growth and increasing infl ation, which is thought to result in higher rental income. This is partly due to the fact that the demand for premises is thought to increase. This leads in turn to reduced vacancies and hence to the potential for increasing market rents. It is also partly due to the fact that the index clause in commercial contracts compensates for 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 changes in rental income and interest cost do not take place at the exact same time, which is why the effect on income in the short run may occur at different points in time.

Sensitivity analysis - cash fl ow

Effect on income next 12 months

	Effect on income, SEKm	Probable scenario
	+/– 1% (units)	Boom	Recession
Rental level / Index	+ 31/– 31	+	–
Vacancies	+ 35/– 35	+	–
Property costs	– 10/+ 10	–	0
Interest costs	– 52/+ 48	–	+

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. Property values are determined by supply and demand, where prices mainly depend on the properties' expected net operating incomes and the buyers' required yield. An increasing demand results in lower required yields and hence an upward adjustment in prices, while a weaker demand has the opposite effect. In the same way, a positive development in net operating income results in an upward adjustment in prices, while a negative development has the opposite effect.

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

Sensitivity analysis - change in value

Properties	–20%	–10%	0	+10%	+20%
Changes in value, SEKm	– 7,087	– 3,543	0	3,543	7,087
Loan to value ratio	65%	58%	52%	47%	43%

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.

CEO change

Håkan Hellström, the present CEO, has announced that he will leave his position and retire at the next AGM March 21, 2013. The process of recruiting his successor has been initiated and is expected to be completed well in time before the AGM. Please see further information in the press release of October 16, 2012.

Election Committee

According to the 2012 Annual General Meeting's decision an election committee shall be appointed to make proposals to the Annual General Meeting 2013 regarding inter alia 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 by the Chairman of the Board of Directors contacting the three largest registrered or otherwise known shareholders at the end of the third quarter in order for them to each appoint one member. 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;

• Maj-Charlotte Wallin representing AFA Försäkring,
• Rutger van der Lubbe representing Stichting
• Pensioenfonds ABP,
• Johan Strandberg representing SEB Fonder,
• the Chairman of the Board Charlotte Strömberg.

The election committee represents in total approx. 14% of the capital and votes in the company.

Shareholders are welcome to address matters to the election committee at the latest December 6, 2012 to Castellum AB, Att: Valberedningen, Box 2269, 403 14 Gothenburg.

For further information see www.castellum.se.

Gothenburg October 16, 2012

Håkan Hellström

Chief Executive Offi cer

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

The Castellum Share

The Castellum share is listed on NASDAQ OMX Stockholm AB Large Cap. At the end of the year the company had about 9,900 shareholders. Shareholders registered abroad cannot be broken down in terms of directly held and nominee registered shares except for one foreign shareholder who has fl agged for holding over 5%, Stichting Pensioenfonds ABP. Castellum has no direct registered shareholders with holdings exceeding 10%. The ten single largest Swedish shareholders can be seen in the table below.

Shareholders on 30-09-2012	Number of shares thousand	Percentage of voting rights and capital
AFA Sjukförsäkrings AB	5,368	3.3%
László Szombatfalvy	5,000	3.0%
Magdalena Szombatfalvy	4,935	3.0%
Lannebo Småbolag	2,000	1.2%
Andra AP-fonden	1,792	1.1%
Länsförsäkringar Fastighetsfond	1,695	1.0%
Fjärde AP-fonden	1,694	1.0%
AMF Pensionsförsäkrings AB	1,603	1.0%
Tredje AP-fonden	1,576	1.0%
Caceis Bank France	1,482	0.9%
Board and executive management Castellum	405	0.3%
Other shareholders registered in Sweden	41,871	25.5%
Shareholders registered abroad	94,579	57.7%
Total outstanding shares	164,000	100.0%
Repurchased shares	8,007
Total registered shares	172,007

Distribution of shareholders by country 30-09-2012

The Castellum share price as at 30 September, 2012 was SEK 88.85 (84.35) equivalent to a market capitalization of SEK 14.6 billion (13.8), calculated on the number of outstanding shares.

During the period, a total of 105 million (114) shares were traded, equivalent to an average of 560,000 shares (603,000) per day, corresponding on an annual basis to a turnover rate of 86% (93%). The share turnover is based on statistics from NASDAQ OMX, Chi-X, Burgundy, Turquoise and BATS Europe.

Growth, yield and financial risk

During the last 12-month period the total yield of the Castellum share has been 10% (–2%), including dividend of SEK 3.70 (3.60).

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

	1 year	3 years	10 years
		average/	average/
		year	year
Total yield of the share (incl. dividend)
Castellum	10%	14%	18%
NASDAQ OMX Stockholm (SIX Return)	22%	10%	13%
Real Estate Index Sweden (EPRA)	15%	15%	17%
Real Estate Index Europe (EPRA)	21%	10%	8%
Growth
Income from prop. management SEK/share	6%	3%	8%
Net income for the year after tax SEK/share	– 57%	neg.	– 3%
Long term net asset value SEK/share	2%	7%	7%
Actual net asset value SEK/share	1%	7%	6%
Dividend SEK/share	3%	6%	9%
Real estate portfolio SEK/share	6%	7%	8%
Change in property value, unweighted	0%	1%	1%
Yield
Return on actual net asset value	5.9%	11.9%	9.5%
Return on total capital	5.0%	7.2%	6.9%
Financial risk
Interest coverage ratio	281%	287%	290%
Loan to value ratio	52%	51%	48%

Valuation - share price related key figures

Earnings

Post-tax inome from property management relating to income from property management (EPRA EPS) amounted to SEK 7.29 (6.85) on rolling annual basis. This results in a share price yield of 8.2% (8.1%).

Net income after tax amounted on rolling annual basis to SEK 4.30 per share (10.03), which from the share price gives a yield of 4.8% (11.9%).

Net asset value

The long term net asset value (EPRA NAV) can be calculated to SEK 99 per share (97). The share price at the end of the period was thus 90% (87%) of the long term net asset value.

If the Swedish Governments proposal concerning decreased corporate tax rate to 22% is approved, this will result in unchanged long term net asset value while actual net asset value increase with approx. SEKm 125 corresponding to 1 SEK/share.

Net asset value 30-09-2012		SEKm SEK/share
Equity according to the balance sheet	11,304	69
Reversed
Derivatives according to balance sheet	1,072	6
Deferred tax according to balance sheet	3,917	24
Long term net asset value (EPRA NAV)	16,293	99
Deduction
Derivatives as above	– 1,072	– 6
Estimated real liability, deferred tax 5.1%*	– 786	– 5
Actual net asset value (EPRA NNNAV)	14,435	88

* Estimated real deferred tax liability net has been calculated to 5.1% based on a discount rate of 3%. Further, assessments have been made that tax loss carry forwards are realized in 5 years with a nominal tax of 26.3%, giving a present value of deferred tax liability of 24.1%, and that the properties are realized in 50 years where 33% are sold directly with a nominal tax of 26.3% and that 67% are sold indirect through company disposals where the buyers tax discount is 7%, which gives a present value of deferred tax liability of 6.9%.

Share price/net asset value

Dividend Yield

The latest carried out dividend of SEK 3.70 (3.60) corresponds to a yield of 4.2% (4.3%) based on the share price at the end of the period.

The share's dividend yield

Calendar

22 January, 2013, around 11 am
The english version will be avaiable on the website in the mid-February.
21 March, 2013
17 April, 2013
16 July, 2013
16 October, 2013
22 January, 2014
20 March, 2014

www.castellum.se

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

For further information please contact CEO Håkan Hellström, tel +46 705 60 74 56, or Finance Director Ulrika Danielsson, tel +46 706 47 12 61 or visit Castellum's website.

Annual General Meeting

Castellum AB's Annual General Meeting is planned to be held on Thursday March 21, 2013 at 5 pm in RunAn, Chalmers kårhus, Chalmersplatsen 1, Gothenburg.

A matter addressed to the election committee from a shareholder should be sent to Castellum AB, Att: Election committee, Box 2269, 403 14 Gothenburg, no later than December 6, 2012.

A shareholder have the right to have a matter addressed at the coming Annual General Meeting on 21 March, 2013. For practical reasons the request should be received by the company no later than 1 February, 2013. The request should be addressed to Castellum AB, Att: Håkan Hellström, Box 2269, 403 14 Gothenburg.

Subsidiaries

Aspholmen Fastigheter AB

Rörvägen 1, Box 1824 701 18 Örebro Telephone +46 19-27 65 00 Telefax +46 19-27 65 19 orebro@aspholmenfastigheter.se www.aspholmenfastigheter.se

Fastighets AB Corallen

Jönköpingsvägen 41 A, Box 148, 331 21 Värnamo Telephone +46 370-69 49 00 Telefax +46 370-475 90 info@corallen.se www.corallen.se

Fastighets AB Brostaden

Tjurhornsgränd 6, Box 5013, 121 05 Johanneshov Telephone +46 8-602 33 00 Telefax +46 8-602 33 30 info@brostaden.se www.brostaden.se

Eklandia Fastighets AB

Theres Svenssons gata 9, Box 8725, 402 75 Göteborg Telephone +46 31-744 09 00 Telefax +46 31-744 09 50 info@eklandia.se www.eklandia.se

Fastighets AB Briggen

Fredriksbergsgatan 1, Box 3158, 200 22 Malmö Telephone +46 040-38 37 20 Telefax +46 40-38 37 37 fastighets.ab@briggen.se www.briggen.se

Harry Sjögren AB Kråketorpsgatan 20, 431 53 Mölndal Telephone +46 31-706 65 00 Telefax +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 INTERIM REPORT JANUARY-SEPTEMBER 2012 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 Org nr 556475-5550