Castellum — Interim / Quarterly Report 2013

Jan 22, 2014

Press release no 2

Gothenburg January 22, 2014

Castellum's Year-end Report 2013:

Growth in income from property management and increased dividend

• Rental income for 2013 amounted to SEKm 3,249 (SEKm 3,073 corresponding period previous year).
• Income from property management amounted to SEKm 1,346 (1,255), equivalent to SEK 8.21 (7.65) per share, a increase with 7%.
• The changes in value on properties amounted to SEKm 328 (-69) and on derivatives to SEKm 429 (–110).
• Net income after tax for the year amounted to SEKm 1,707 (1,473), equivalent to SEK 10.41 (8.98) per share.
• The net investments amounted to SEKm 1,081 (2,545) of which SEKm 1,583 (1,279) were new constructions, extensions and reconstructions, SEKm 185 (1,519) acquisitions and SEKm 687 (253) sales.
• The Board proposes a dividend of SEK 4.25 (3.95) per share, corresponding to an increase of 8%.

Gross leasing (i.e. the annual value of total leasing) during the year was SEKm 366 (327), of which SEKm 96 (79) were leasing of new constructions, extensions and reconstructions. Notices of termination amounted to SEKm 261 (278), of which bankruptcies were SEKm 23 (28) and SEKm 18 (40) were notices of termination with more than 18 months remaining length of contract. Hence net leasing for the year was SEKm 105 (49) of which SEKm 24 (6) relates to the fourth quarter isolated.

"I am pleased to announce that Castellum present growth in income from property management and can raise the dividend for 16 consecutive years" comments CEO of Castellum Henrik Saxborn. "With Castellum's good position – a strong balance sheet and good net leasing from 2013 I look forward to develop the company together with my colleagues" adds Saxborn.

Enclosure: Year-end Report 2013

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

For further information, please contact Henrik Saxborn, CEO, phone +46 31-60 74 50 Ulrika Danielsson, Finance director, mobile 0706-47 12 61

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 approx. SEK 38 billion, and comprises premises for office, retail, warehouse and industrial purposes with a total lettable area of approx 3.6 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.

Year-end Report 2013

Year-end Report 2013

Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to SEK 38 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 2013 amounted to SEKm 3,249 (SEKm 3,073 previous year).
• Income from property management for 2013 amounted to SEKm 1,346 (1 255), corresponding to 8.21 SEK (7.65) per share, an increase of 7%.
• Changes in value on properties amounted to SEKm 328 (–69) and on derivatives to SEKm 429 (–110).
• Net income after tax amounted to SEKm 1,707 (1,473), corresponding to SEK 10.41 (8.98) per share.
• Net investments amounted to SEKm 1,081 (2,545) of which SEKm 1,583 (1,279) were new construc tions, extensions and reconstructions, SEKm 185 (1,519) acquisitions and SEKm 687 (253) sales.
• The Board proposes a dividend of SEK 4.25 (3.95) per share, equivalent to an increase of 8%.

Key ratios
	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
Income from property management, SEK/share	8.21	7.65	7.15	6.96	6.89	5.93	5.63	5.38	5.00	4.52
Change previous year	+7%	+7%	+3%	+1%	+16%	+5%	+5%	+8%	+11%	+11%
Net income after tax, SEK/share	10.41	8.98	4.34	11.98	0.98	– 4.04	9.07	10.21	7.89	5.59
Change previous year	+16%	+107%		–64% +1,122%	pos.	neg.	–11%	+29%	+41%	+108%
Dividend, SEK/share (2013 proposed)	4.25	3.95	3.70	3.60	3.50	3.15	3.00	2.85	2.62	2.38
Change previous year	+8%	+7%	+3%	+3%	+11%	+5%	+5%	+9%	+11%	+12%
Properties fair value, SEKm	37,752	36,328	33,867	31,768	29,267	29,165	27,717	24,238	21,270	19,449
Net investments, SEKm	1,081	2,545	1,908	1,279	1,129	2,710	2,559	1,823	889	774
Loan to value	52%	53%	51%	50%	52%	50%	45%	45%	45%	45%
Interest coverage ratio	292%	284%	278%	299%	309%	255%	287%	343%	315%	277%

Henrik Saxborn, CEO Castellum Dare to make changes – even when successful

In March, I took over as CEO of Castellum after Håkan Hellström. Håkan left behind a well-managed real estate company, localized to strong growth regions with wellmaintained properties in attractive locations. Moreover, Håkan left a company that had increased its income from property management and raised its dividend for 16 consecutive years.

I've been on board as vice president for the last 7 years and I am very confi dent that this positive trend of growth will continue. I'm happy to announce that we can add 2013 to the list of successful years. Last year, we successfully managed to increase income from property management by 7% and the board proposes a increase in dividend by 8%. We achieved this despite the fact that the external factors were not optimal: an almost non-existent GDP growth as well as an infl ation that hovered around zero at year end. In addition to the positive impact on income from past investments and guaranteed indexation of leases, we also benefi tted from a lower average interest rate.

Biggest challenge for continued growth

The key challenge is to drive changes based on our strong tradition of the company. We will continue to make investments primarily in Swedish growth regions. We will and can be a signifi cant player in the growth regions, and will exert an impact on the urbanplanning process - we will not only manage and build commercial properties. We will develop cities.

The proportion between new construction and acquisition will always, at any given time, depend on the market and our risk assessment. During 2013, Castellum's net investments amounted to more than SEK 1 billion. During the year, we were somewhat more active on the sell side compared with the last few years. This refl ects strenuous efforts to constantly adjust and optimize our portfolio in relation to growth conditions. The ambition is to continue annual net investments worth approx. SEK 2 billion; where roughly half of the investments cover new projects and the other half will be spent on acquisitions. This investment rate means that each successive year, Castellum will build "a small real estate company".

Sustainability leads to profitability!

I see several other long-term factors that currently reinforce Castellum's strong potential. There is potential for growth in our vacancies, and our efforts during the year to reduce the number of vacancies have led to a strong net leasing of SEKm 105. Our leasing work continues with great intensity.

Our 4,600 customers are distributed across Swedish commercial and business life, and they come from most industries of all sizes within Sweden's growth regions.

In our various companies and market sectors, we see a direct and clear correlation between the job satisfaction of our skilled employees and satisfi ed customers. In turn, satisfi ed customers generate more transactions. We regularly measure customer satisfaction levels, and the results are consistently high. That 96% gladly recommend us as landlord to other is a strong proof of

our emplyees good work.

We believe that there will be increasingly important to Sustainability Performance in business valuations. In 2013, our energy consumption was reduced by 5% and carbon emissions were reduced by 8% – per square metre. Sustainable new constructions are the order of the day – an obvious business choice. Just like our increasingly strong focus on sustainable, long-term strategies and an ethical approach.

Strong fi nances provide freedom of action

Last but not least: thanks to our strong balance sheet, Castellum enjoys great

One of the main ideas when founding Castellum was to run the business with lower risk-taking compared with the industry average. And we intend to continue doing so. On closing day, the Castellum Asset side had a real estate portfolio worth SEK 38 billion. The portfolio is funded by shareholders' equity that we are set to manage; i.e. the long-term net asset value totalling SEK 18 billion (equivalent to SEK 107 per share) as well as interest-bearing liabilities of SEK 19 billion. This implies a loan-to-value ratio of 52%. It is gratifying to note that in 2013 we have managed to issue bonds to a value of SEK 2 billion, and this has provided us with more freedom of action.

Steady growth with low risk

Steady growth with low risk-taking is one of the fundamental ideas behind Castellum. It was therefore satisfying when the total share yield over the past 10 years amounted to 13% per year which is on par with stock market. The total share yield for 2013 amounted to 13%.

Looking ahead, I see a solid, well-functioning real estate market with stable property prices over the next year. Expectations are that 2014 will be yet another year of weak GDP growth, resulting in a marginal increase in rental levels, a stable cost structure and continued low interest rates. In this macro-economic environment, I believe in continued improvement for Castellum's property-management income – thanks to our investment strategies and continued growth, alongside the increased prosperity of current and new customers.

Henrik Saxborn CEO

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 overall objective is an annual growth in cash flow, i.e. income from propert management per share, of at least 10%. The strategy to achieve the objective rests on four cornerstones:

• yearly net investments of at least 5% of the property value
• investments through acquisitions and new constructions, reconstructions and extensions
• sales of properties

Commercial properties in growth regions

• concentrated to 5 growth regions - premises for office/retail and
• warehouse/industrial - one of the three largest real estate
• owners in each local market

Income from property management

Development of the real estate portfolio Customer focus through local organizations

• decentralized and small-scale organization
• property management carried out with own personnel
• regulary measurement of customers and employees satisfaction
• environmental work with focus on reduced energy consumption

Strong balance sheet with low financial and operational risk

• loan to value ratio not permanently exceeding 55%
• interest coverage ratio at least 200%
• geographic diversificated portfolio allocated on different types of premises
• large number of commercial contracts in different fields of industry

Net investments

Loan to value ratio Interest coverage ratio

Castellum Year-end Report 2013 4 CASTELLUM Year-end Report 2013

Strategy for the property portfolio and its management

Commercial properties in growth regions

Geography and category

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

The real estate portfolio shall consist of commercial properties with general and fl exible premises for offi ce, retail, warehouse, logistics and industry purposes.

Property portfolio

The real estate portfolio shall be continuously enhanced and developed in order to improve cash fl ow. Castellum shall continue to grow with customers' demand, mainly through new constructions, extensions and reconstructions but also through acquisitions.

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.

Strategic tools

Investments

In order to achieve the overall objective of 10% growth, net investments of at least 5% of the property value will be made yearly. This is currently equivalent to approx. SEKm 1,900.

Subsidiaries

One of the three largest real estate owners in each local market.

Customer focus through local organizations

Customers

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

Organization and employees

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

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

The business shall contribute to a sustainable development, in view of ecological, social and economic aspects.

Strategic tools

Customer and employees satisfaction In order to develop the Group as well as customer relations, the customers' level of satisfaction shall be measured regularly. Customer and employees satisfaction shall constantly improve.

Environment

The energyuse and CO2 emission shall be reduced. All new construction shall be environmentally classifi ed.

Strategy for Funding

Strong balance sheet with low financial and operational risk Strategic tools

Capital structure

Castellum shall have low fi nancial risk. The choosen risk key ratios are loan to value and interest coverage ratio. 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.

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 longterm 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.

Low operational risk

Castellum's real estate portfolio have a geographical distribution to fi ve Swedish growth region and shall consist of different types of commercial premises. The risk with in the customer portfolio shall be kept low.

Capital structure

Loan to value ratio not permanently exceeding 55%. Interest coverage ration of at least 200%.

Dividend

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

The stock and credit markets

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

Low operational risk

Risk within the customer portfolio shall be kept low using diversifi cation over many fi elds of business, length and size of contracts.

Customers and Organization

Customers - a reflection of the domestic Swedish economy Castellum has approx. 4,600 commercial contracts, with good risk diversifi cation regarding geography, type of premises, length of contracts and fi elds of industry of the customer. The single largest contract corresponds to approx. 2% of Castellum's total rental income.

Satisfied customers

It is important that Castellum meets customers expectations. To follow up and evaluate activities, an external customer survey is carried out annually, Satisfi ed Customer Index.

The survey carried out in 2013 - which included offi ces, warehouses, industry and retail - showed continued consistently high marks for Castellum, with a weighted index of 76. This is higher than the industry benchmark. A signifi cant portion of the surveyed customers - 96% - reply that they want to lease from Castellum again and gladly recommend Castellum as a landlord to others.

Leasing activity

Castellum's leasing activity is high. During 2013 the organization signed 716 new leases with a total annual value of SEKm 366. Robust leasing activities indicate the importance of taking care of customers and networks. Of the newly signed lease volume, 75% came from Castellum's own networks, recommendations or existing customer expansions, while 15% originated from web pages, and the remaining 10% came through agents.

Decentralized and small-scale organization near the customers

Castellum's operations are run by six subsidiaries which own and manage the properties. By having local roots, the subsidiaries forge close relationships with customers and short decision making processes. Customers can thereby be offered premises suited to their needs and benefi t from optimal personal service and quick response.

Castellum's subsidiaries engage about 40 employees each. 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 3-9 facility managers. Everyone has customer contact.

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

Subsidiaries with strong brands

Castellum's subsidiaries operate under their own names, which are strong brands on each local market. Each subsidiary is involved in the local business community through business associations where important contacts are taken with both current and prospective customers.

Castellum, as one of the largest real estate owners on each local market, also contributes to the regional development where local subsidiaries operate through co-operation with municipalities and universities/colleges.

Employees

Castellum is actively working to recruit and retain top notch employees by offering a stimulating work environment, competence development and sharing experiences. Employees viewpoint on Castellum is regularly measured and the survey conducted in 2013 shows a continued high index, 86 on a 100-point scale, which means that employees are satisfi ed with their work situation and have a high confi dence in the company and its management.

Castellum had at year-end 293 (265) employees. The increase is mainly related to marketing and property management.

Parent company

The parent company, Castellum AB, is responsible for matters concerning the stock market (such as consolidated reports and stock-market information) and the credit market (such as funding and fi nancial risk management) as well as overall IT/IS strategies and personnel matters. Castellum AB has 19 (19) employees.

Castellum is responsible for capital allocation and measures and compares subsidiary management effi ciency and asset value growth in the real estate portfolio. The parent company takes active part in operations through involvement in subsidiary Boards.

Castellum's operations are controlled by rules for decision making and work allocation, policies and instructions. Policies are in place for fi nance and fi nancial work, information, information safety, Code of Conduct, environment, insurance and personnel, etc.

Corporate Responsibility

Since 1995, Castellum has systematically been working with sustainability, i.e., developing the properties in the markets where the subsidiaries are present, creating a common set of values for actions towards employees, customers and vendors as well as actively working with environmental issues.

Environmental efforts are focused on effi cient energy consumption and improving the general environmental status of each property. Since the common Group objectives were set in 2007 both energy consumption and carbon dioxide emissions has been reduced by 20% per square metres.

All new constructions in Castellum must be environmentally classifi ed according to one of the following environmental classifi cation systems: Green Building, "Miljöbyggnad", BREEAM or LEED. Castellum has 96 of Sweden's 335 Green Building classifi ed building, one BREEAM certifi ed building and 14 building completed or under construction, according to the Swedish system "Miljöbyggnad".

Market comments

Swedish economy

The Swedish economy was weak in 2013 and GDP growth for 2013 is expected to amount to less than 1%. Weak growth is mainly attributable to the Swedish export industry, which was adversely affected by weaker global demand. A strong domestic economy has contributed positively to GDP growth. The strong domestic demand can be attributed to increased household incomes, an unexpectedly strong employment growth and continued low interest rates.

economic engine, and low interest rates – along with tax cuts – are expected to contribute to strong domestic demand. As the global economy recovers, growth in the Swedish economy is also expected to regain momentum, although from a low level. This will have a positive impact on the labour market. Households continue to be the Swedish

However, the infl ation rate is unexpectedly low and the Riksbank believes that infl ationary pressures will remain low for some time to come. Hence, the Riksbank decided to cut the repo rate by 0.25 percentage points to 0.75% at its December meeting.

Macro indicators

Unemployment	7.5%	(November 2013)
Inflation	0.1%	(December 2013 compared to December 2012)
GDP growth	0.3%	(Q3 2013 compared to Q3 2012)

Rental market

Source: SCB

The rental market is still solid in all markets and segments. The demand for both newly constructed and existing facilities is high and rental levels generally remain unchanged. However, in locations where supply is limited - such as certain central, attractive locations and favourable logistics locations - slight increases in rental levels have been noted.

Real estate market

In 2013, the Swedish real estate market was characterized by stability, a strong domestic interest and increased activity outside big-citys CBD. In total, the transaction volume for 2013 amounted to approx. SEK 100 billion (110). Transaction volumes for the fi rst and fourth quarters were lower compared to the same quarters for 2012, but higher for the second and third quarters.

Swedish real estate companies dominated on both the seller and buyer sides, and foreign buyers accounted for 13% (18%) of the volume. Compared with 2012, the proportion of transactions increased for both the residential and warehouse/logistics segments. Commercial real estate represented approx. 69% (79%) of the volume and big-city areas approx. 58% (65%).

Castellum believes that demand will remain strong in all markets and segments, and that pricing will mainly remain stable. However, a slight increase in value has been recorded for central Stockholm and Göteborg during the second half of 2013.

Interest and credit markets

During the year, the interest-rate market was occasionally volatile. This was mainly due to concerns for, and consequences of, activities undertaken by the world's central banks. However, the underlying trend calls for rising long-term interest rates. At the beginning of the year, the 10-year swap rate was 2.10%, and at the end of the year it was 2.90%. When the interest rate decision was released in December, the Riksbank announced that the repo rate was expected to remain at its current level until the beginning of 2015. Then it might gradually start to rise.

Access to credit is estimated to remain stable in both credit and capital markets. Reduced uncertainty about future regulatory-framework and its impact on the credit market has resulted in slightly lower credit margins on new loans, compared with previous years.

Income, Costs and Results

Comparisons, shown in brackets, are made with the corresponding amounts previous year. For defi nitions see www.castellum.se

Income from property management during the year, i.e. net income excluding changes in value and tax, amounted to SEKm 1,346 (1,255), equivalent to SEK 8.21 (7.65) per share - an increase with 7%.

During the year, changes in value on properties amounted to SEKm 328 (-69) and derivatives to SEKm 429 (-110). Net income for the year was SEKm 1,707 (1,473) equivalent to SEK 10.41 (8.98) per share.

Rental income

Group rental income amounted to SEKm 3,249 (3,073). For offi ce and retail properties, the average contracted rental level, including charged heating, cooling and property tax, amounted to SEK 1,263 per sq.m., whereas for warehouse and industrial properties, it amounted to SEK 765 per sq.m. Rental levels, which are considered to be in line with the market, have in comparable portfolio increased by 1% compared with previous year, which mainly is an effect from indexation and can be compared with the usual industry index clause (October to October), which was 0.4% in 2013. Castellum's higher indexation is due to the Groups focus on index clauses with minimum upward adjustment in the contract portfolio, which offers some protection against defl ation and a higher than usual indexation in a low infl ationary environment.

The average economic occupancy rate was 88.4% (88.6%). The total rental value for vacant premises during the year amounted to approx. SEKm 467 (447).

The rental income for the period includes a lump sum of SEKm 11 (8) as a result of early termination of a lease.

Gross leasing (i.e. the annual value of total leasing) during the year was SEKm 366 (327), of which SEKm 96 (79) were leasing of new constructions, extensions and reconstructions. Notices of termination amounted to

SEKm 261 (278), of which bankruptcies were SEKm 23 (28) and SEKm 18 (40) were notices of termination with more than 18 months remaining length of contract. Hence net leasing for the year was SEKm 105 (49) of which SEKm 24 (6) relates to the fourth quarter isolated.

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

Property costs

Property costs amounted to SEKm 1,105 (1,042) corresponding to SEK 307 per sq.m. (298). The increase is mainly an effect of higher costs for snow remowal during fi rst half-year compared to previous year but also higher property tax due to increased tax values of in average 10%. Most of the property tax are charged the tenants, why the impact on earnings is marginal.Consumption for heating during the year has been calculated to 96% (97%) of a normal year according to the degree day statistics.

Property costs	Offi ce/	Warehouse/	2013	2012
SEK/sq. m	Retail	Industrial	Total	Total
Operating expenses	196	120	161	156
Maintenance	45	23	35	37
Ground rent	8	7	7	7
Real estate tax	68	21	47	44
Direct property costs	317	171	250	244
Leasing and property administration (indirect)	–	–	57	54
Total	317	171	307	298
Previous year	311	168	298

Central administrative expenses

Central administrative expenses totalled SEKm 96 (93). This includes costs for a profi t-and-share-price related incentive plan for 10 persons in executive management of SEKm 8 (11).

Income from Property Management per share Rental value and economic occupancy rate

Net interest

Net interest items were SEKm –702 (–683). The average interest rate level was 3.7% (3.9%). Net fi nancial incomes were positively affected by approx. SEKm 40 due to the average interest rate level decrease by 0.2%-units.

Changes in value

The change in value in Castellum's portfolio during the period amounted to SEKm 328 (–69), of which approx. SEKm 220 refers mainly to project gains but also acquisitions, approx. SEKm 14 net refers to revaluation of individual properties regarding both cashfl ow, yield and value of building rights and approx. SEKm 94 refers to 18 sold properties. The net sales price amounted to SEKm 687 after reduction for assessed deferred tax and transaction costs of SEKm 31 in total. Hence the underlying property price, which amounted to SEKm 718, exceeded the latest valuation of SEKm 593 with SEKm 125, mainly due to sales of properties with changed use as infrastructure and future residential development.

Since the demand and prices have been generally stable no general yield change has been made in the internal valuations during the period.

The value in the interest derivatives portfolio has changed by SEKm 429 (–110), mainly due to changes in long-term market interest rates. Castellum's currency derivatives, with purpose to hedge currency fl uctuations in the Danish investments, has during the period changed SEKm –7 (8) where the effective portion of the value changes of SEKm –7 (8) is accounted for in other total net income.

Tax

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

Remaining tax loss carryforwards can be calculated to SEKm 921 (1,610). Fair values for the properties exceed their fi scal value by SEKm 18,570 (17,412) of which SEKm 830 relates to the acquisition of properties accounted for as asset acquisitions. As deferred tax liability, a full nominal 22% tax of the net difference is reported, reduced by the deferred tax relating to asset acquisitions, i.e., SEKm 3,700 (3,310).

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

Tax calculation 2013

SEKm	Basis current tax	Basis deferred tax
Income from property management	1,346
Deductions for tax purposes
depreciations	– 695	695
reconstructions	– 500	500
Other tax allowances	– 24	11
Taxable income from property management	127	1,206
Properties sold	161	– 355
Changes in value on properties	–	234
Changes in value on interest rate derivatives	429	–
Taxable income before tax loss carry forwards	717	1,085
Tax loss carry forwards, opening balance	– 1,610	1,610
Tax loss carry forwards, closing balance	921	– 921
Taxable income	28	1,774
Tax accoring to the income statement	– 6	– 390

Income over time

Income from property management over the past 10 years shows stable development and has grown by an average of 7% per year. Property values have been volatile over the past 10 years with average growth of 1.4% per year which is well in line with the infl ation.

Income over time

Real Estate Portfolio

The real estate portfolio are located in Greater Gothenburg, the Öresund Region, Greater Stockholm, Mälardalen and Eastern Götaland. The main focus, which represents approx. 73% of the portfolio, is in the three major urban regions.

The commercial portfolio consists of 66% offi ce and retail properties as well as 30% 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. The remaining 4% consist of projects and undeveloped land.

Castellum owns approx. 785 sq.m. of unutilized building rights and ongoing projects with remaining investments of approx. SEKm 1,000.

Investments

During the year investments totalled SEKm 1,768 (2,798), of which SEKm 1,583 (1,279) were new constructions, extensions and reconstructions and SEKm 185 (1,519) were acquisitions. Of the total investments SEKm 523 related to Greater Gothenburg, SEKm 392 to Mälardalen, SEKm 339 to the Öresund Region, SEKm 291 to Greater Stockholm and SEKm 223 to Eastern Götaland.

After sales of SEKm 687 (253) net investments amounted to SEKm 1,081 (2,545).

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

Changes in the real estate portfolio

	Value, SEKm	Number
Real estate portfolio on 1 January, 2013	36,328	635
+ Acquisitions	185	9
+ New constructions, extensions and reconstructions	1,583	–
– Sales	– 593	– 18
+/– Unrealized changes in value	234	–
+/– Currency translation	15	–
Real estate portfolio on 31 December, 2013	37,752	626

Investments

Larger investments and sales
Larger projects	Area,	Econ. occup.	Total inv., land	Remain. inv.
Property	sq.m	Jan 2014	incl. SEKm		SEKm Completed	Comment
Lundbyvassen 8:1, Gothenburg	8,900	100%	219		137 Q4 2014	New construction office
Dragarbrunn 20:4, Uppsala	10,020	87%	198		35 Q4 2014	Extension and reconstruction office
Algen 1, Jönköping	4,509	15%	136		83 Q1 2015	New construction retail/office/restaurant
Jägmästaren 1, Linköping	7,750	93%	109		82 Q1 2015	New construction retail
Spejaren 3, Huddinge	6,331	100%	83		61 Q4 2014	New construction retail
Kulan 3, Helsingborg	9,689	100%	82		21 Q2 2014	New construction logistic
Solsten 1:108, Härryda	6,516	100%	58		41 Q3 2014	New construction warehouse
Projects completed / partly moved in
Lindholmen 28:3, Gothenburg	9,459	76%	280		43 Q2 2013	New construction office*
Fullriggaren 4, Malmö	5,599	46%	157		30 Q1 2013	New construction office*
Atollen 3, Jönköping	5,961	34%	153		22 Q4 2013	New construction office/retail/residentials*
Sändaren 1, Malmö	12,150	94%	128		9 Q4 2013	Reconstruction and extension office
Gården 15, Linköping	9,705	62%	116		9 Q1 2013	New construction office/retail/warehouse*
Visiret 2, Huddinge	12,357	100%	71		0 Q2 2013	New construction car park
Åby 1:223, Haninge	6,553	0%	67		3 Q3 2013	New construction warehouse/logistic*
Inköparen 1, Örebro	4,300	100%	66		0 Q2 2013	New construction office
Larger acquisitions during 2013		Econ. occup	Acquisition

Property	Area, sq.m	Jan 2014	SEKm	Access	Cathegory
Kärra 78:8, 78:12-13 and 80:6, Gothenburg	8,400	100%	77	May 2013	Warehouse/production premises

Larger sales during 2013		Underlying prop.	Trans. costs	Net sales
Property	Area,,sq.m	price, SEKm	deferred tax, SEKm	price, SEKm Access		Cathegory
Vindrutan 1, Örebro, Kungsängen 24:3 and
29:1, Uppsala	12,163	194	-13		181 Nov 2013	Retail
Backa 18:7 and 18:10, Gothenburg	16,930	141	–1		140 July 2013	Warehouse
Linaberg 15, Stockholm	4,340	62	–5		57 Sept 2013	Offi ce/warehouse
Alphyddan 11, Stockholm	4,363	54	–4		50 Feb 2013	Offi ce
Björnen 6, Malmö	2,200	50	–3		47 Sept 2013	Offi ce

* The remaining investment volume will be used as the vacant spaces are rented.

Larger ongoing projects

Lundbyvassen 8:1 in Gothenburg

Location Lindholmen Science Park in Gothenburg Area 8,900 sq.m. Time plan Completed Q4 2014

In central Gothenburg Castellum has during 2013 started a new construction of a fully let office

Dragarbrunn 20:4 in Uppsala

Location Dragarbrunn in central Uppsala Area 10,020 sq.m. Time plan Completed Q4 2014

In central Uppsala an investment is ongoing consisting a reconstruction of 6,320 sq.m. and

Algen 1 in Jönköping

Location Munksjön in central Jönköping Area 4,509 sq.m. Time plan Completed Q1 2015

In central Jönköping Castellum started during 2013 the second phase in the development in the Atollen-area, which is carried out together

Sändaren 1 in Malmö

Location The Jägersro area in Malmö Area 12,150 sq.m. Time plan Completed Q4 2013

During 2010 Castellum acquired the property Sändaren 1 in Malmö where a reconstruction and extension of 12,150 sq.m. has been completed

Spejaren 3 in Huddinge

Location Smista Allé, Kungens Kurva, Huddinge Area 6,331 sq.m. Time plan Completed Q4 2014

In connection with Castellum's existing portfolio in Smista Allé Castellum has started a fully let

Kulan 3 in Helsingborg

Location The Berga area in Helsingborg Area 9,689 sq.m. Time plan Completed Q2 2014

In Berga, Helsingborg, Castellum has started a new construction of 9,689 sq.m. flexible logistic building of 8,900 sq.m. The property is well situated considering future urban development and in connection to Castellum's existing portfolio. The new building will be constructed in accordance with the environmental system Green Building. The investment is calculated to SEKm 219.

an extension of 4,520 sq.m. into modern office premises. The reconstruction and extension will be completed in accordance with the enviromental system Miljöbyggnad.

The investment is calculated to SEKm 198 and has an occupancy rate of 87%.

with several partners. Castellum's part consists of 10,470 sq.m. in total. The new construction comprises of 4,509 sq.m. office, retail and restaurant premises. The reconstruction and extension will be completed in accordance with the enviromental system Miljöbyggnad. The investment is calculated to SEKm 136 and has an occupancy rate of 15%.

during 2013. The reconstruction and extension is completed in accordance with the enviromental system Miljöbyggnad and Green Buildingstandard.

The investment amounted to SEKm 128 and the occupancy rate in Sändaren 1 is 94%.

• Green

new construction of 6,331 sq.m. premises for car sales of which approx 3,000 sq.m. is parking facilities. The new construction will be completed in accordance with the enviromental system Green

Building.

Th investment is calculated to SEKm 83.

premises which will serve as a Nordic distribution centre. The building is fully let and will be completed according to the environmental systems Miljöbyggnad and Green Building.

The investment is calculated to SEKm 82 and is fully let.

• Green Building

• Green Building

Property value

Internal valuations

Castellum assesses the value of properties through internal valuations. These are based on a 10-year cash-fl ow-based model, in which an individual valuation for each property refl ects both its future earnings capacity and the required market yield. In the valuation of a property's future earnings capacity, consideration has been taken of potential changes in rental levels, occupancy rates and property costs - as well as an assumed infl ation level of 1.5%.

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 1,100 per sq.m. (990).

The required market yield can be calculated according to the following chart.

Required yield	Office/ Retail	Warehouse/ Industrial
Real interest rate	3.0%	3.0%
Inflation	1.5%	1.5%
Risk	4.5% - 11.1%	7.1% - 12.5%
Return on equity	9.0% - 15.6%	11.6% - 17.0%
Interest rate	5.5%	5.5%
Loan to value ratio	65%	55%
Return on total capital	6.7% - 9.0%	8.3% - 10.7%
Weighted d:o, disc. factor year 1-9	7.9%	9.1%
Weighted disc. factor residual value*	6.4%	7.6%
*(Required yield on total capital minus growth equal to inflation)

Based on these internal valuations, the value of the properties at year-end were assessed to SEKm 37,752 (36,328), corresponding to SEK 10,285 per sq.m. (9,916).

Average valuation yield

The average valuation yield for Castellum's real estate portfolio, excluding development projects and undeveloped land, can be calculated to 7.2% (7.3%).

Average valuation yield, Mkr

(excl. project/land and building rights)	2013	2012
Net operating income properties	2,341	2,293
+ Estimated index adjustment 2014, 1% (1%)	35	34
+ Real occupancy rate, 94% at the lowest	279	268
– Property administration, 30 SEK/sq.m.	– 107	– 105
Normalized net operating income	2,548	2,490
Valuation (excl. building rights of SEKm 574)	35,613	34,245
Average valuation yield	7.2%	7.3%

Average valuation yield over time

Uncertainity range

A property's market value can only be confi rmed when sold. The value range of +/– 5-10%, often used in property valuations in a normal market, should therefore be seen as an indication of the uncertainty that exists in assumptions and calculations. In a market with lower liquidity, the range may be wider. For Castellum, an uncertainty range of +/– 5% means a range in value of +/– SEKm 1,888, corresponding to SEKm 35,864 - 39,640.

External valuation

In order to provide further assurance and validation of the valuation, 148 properties - representing 52% of the value of the portfolio - have been valued externally by NAI Svefa. The properties were selected on the basis of the largest properties in terms of value, but they also refl ect the composition of the portfolio as a whole in terms of category and geographical location of the properties. NAI Svefa's valuation of the selected properties amounted to SEKm 19,624, within an uncertainty range of +/- 5-10% on property level, depending on each property's category and location. Castellum's valuation of the same properties totalled SEKm 19,772, i. e., a net deviation of SEKm –148, corresponding to –1%. The gross deviation was SEKm +427 and SEKm –575 respectively, with an average deviation of 5%.

In addition, Forum Fastighetsekonomi AB made a desktop valuation of 32 properties corresponding in value to 21% of the portfolio. Forum's valuation of the selected properties amounted to SEKm 7,912. Castellum's valuation of the same properties amounted to SEKm 7,861, i.e. a net deviation of SEKm 51 corresponding to 1%. NAI Svefa's valuation of the same properties amounted to SEKm 7,780, i.e. en net deviation of SEKm –81 corresponding to –1% compared to Castellum's valuation.

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

Castellums' real estate portfolio 31-12-2013

	31-12-2013					January-December 2013
	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
Office/retail
Greater Gothenburg	80	442	6,723	15,226	589	1,335	92.1%	543	136	306	407
Öresund Region	66	403	5,968	14,818	572	1,420	83.3%	476	143	355	333
Greater Stockholm	50	340	4,410	12,961	466	1,369	81.9%	381	104	307	277
Mälardalen	71	393	4,330	11,018	432	1,098	90.3%	390	123	312	267
Eastern Götaland	57	341	3,378	9,910	363	1,066	87.2%	317	102	299	215
Total offi ce/retail	324	1,919	24,809	12,932	2,422	1,263	87.0%	2,107	608	317	1,499
Warehouse/industrial
Greater Gothenburg	100	648	5,076	7,828	493	761	96.5%	476	103	159	373
Öresund Region	43	315	1,961	6,213	233	739	89.1%	208	57	181	151
Greater Stockholm	51	274	2,493	9,089	270	985	85.2%	230	58	213	172
Mälardalen	38	184	1,099	5,979	132	719	91.1%	120	34	187	86
Eastern Götaland	31	178	749	4,216	96	537	85.2%	81	21	118	60
Total warehouse/industrial	263	1,599	11,378	7,112	1,224	765	91.1%	1,115	273	171	842
Total	587	3,518	36,187	10,285	3,646	1,036	88.4%	3,222	881	250	2,341
Leasing and property administration									202	57	– 202
Total after leasing and property administration									1,083	307	2,139
Development projects	16	105	1,312	–	80	–	–	37	18	–	19
Undeveloped land	23	–	253	–	–	–	–	–	–	–	–
Total	626	3,623	37,752	–	3,726	–	–	3,259	1,101	–	2,158

The table above relates to the properties owned by Castellum at the end of the year and reflects the income and costs of the properties as if they had been owned during the whole year. The discrepancy between the net operating income of SEKm 2,158 accounted for above and the net operating income of SEKm 2,144 in the income statement is explained by the deduction of the net operating income of SEKm 25 on properties sold during the year, as well as the adjustment of the net operating income of SEKm 39 on properties acquired/completed during the year, which are recalculated as if they had been owned or completed during the whole year.

Property related key ratios Segment information

	2013	2012
Rental value, SEK/sq.m.	1,036	1,015
Economic occupancy rate	88.4%	88,6%
Property costs, SEK/sq.m.	307	298
Net operating income, SEK/sq.m.	608	601
Property value, SEK/sq.m.	10,285	9,916
Number of properties	626	635
Lettable area, thousand sq.m.	3,623	3,621

		Rental income	Income from property management
SEKm	2013 Jan-Dec	2012 Jan-Dec	2013 Jan-Dec	2012 Jan-Dec
Greater Gotheburg	1,014	976	493	460
Öresund Region	669	621	263	255
Greater Stockholm	623	569	263	235
Mälardalen	548	526	213	192
Eastern Götaland	395	381	152	151
Total	3,249	3,073	1,384	1,293

The discrepancy between the income from property management of SEKm 1,384 (1,293) above and the groups accounted income before tax of SEKm 2,103 (1,076) consists of unallocated income from property management of SEKm –38 (–38), changes in property value of SEKm 328 (–69) and changes in values of interest rate derivatives of SEKm 429 (–110).

Property value by property type Property value by region

Financing

Castellum shall have a low fi nancial risk, meaning a loan to value ratio not permanently exceeding 55% and an interest coverage ratio of at least 200%. Castellum's assets had a value of SEKm 38,113 (36,631) on December 31, 2013.

Interest bearing liabilities

At the end of the year Castellum had binding credit agreements totalling SEKm 24,300 (23,361) of which SEKm 21,859 (20,262) were long term binding and SEKm 2,441 (3,099) short term binding.

During the year SEKm 2,000 were issued under the MTN-program, existing credit agreements of SEKm 7,800 were renegotiated and/or extended and a credit agreement of SEKm 200 were terminated.

After deduction of cash of SEKm 70 (44), net interest bearing liabilities were SEKm 19,411 (19,050), of which SEKm 3,200 (1,200) were MTN and SEKm 1,014 (1,872) 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 and the commercial papers are a complement to the existing funding in banks and broadens the funding base.

Long-term loan commitments in banks are secured by pledged mortgages in poperties and/or fi nancial covenants. Outstanding commercial papers and the MTN-program are unsecured.

Net interest bearing liabilities amounted to SEKm 19,411 (19,050) of which SEKm 15,197 (15,917) were secured by the company's properties and SEKm 4,214 (3,133) unsecured. The proportion of used secured fi nancing was thus 40% of the property value. The fi nancial covenants state a loan-tovalue ratio not exceeding 65% and an interest coverage ratio

of at least 150%, which Castellum fulfi ls with comfortable margins, 52% and 292% respectively. The average duration of Castellum's long-term credit agreements was years 3.4 (4.1). Margins and fees on long-term credit agreements had an average duration of 2.4 years (2.8).

Credit maturity structure 31-12-2013

	Credit	Utilized in
SEKm	agreements	Bank	MTN/Cert	Total
0 - 1 year	2,441	938	1,014	1,952
1 - 2 years	6,508	2,308	1,700	4,008
2 - 3 years	4,007	3,807	–	3,807
3 - 4 years	8,708	6,008	1,000	7,008
4 - 5 years	507	7	500	507
> 5 years	2,129	2,129	–	2,129
Total	24,300	15,197	4,214	19,411

Unutilized credit in long term credit agreements 2 448

Interest rate maturity structure

The average effective interest rate as per December 31, 2013 was 3.5% (3.6%). In order to secure a stable and low net interest cash fl ow the interest rate maturity structure is distributed over time. The average fi xed interest term on the same date was 2.7 years (2.8).

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.

Financing 31-12-2013

Interest rate maturity structure

Interest rate maturity structure 31-12-2013

		Interesr rate		Closing
	Credit, SEKm	derivates SEKm	Net, SEKm	interest rate
0 - 1 year	19,286	– 8,850	10,436	3.4%
1 - 2 years	125	200	325	5.9%
2 - 3 years	–	1,250	1,250	3.9%
3 - 4 years	–	1,000	1,000	3.4%
4 - 5 years	–	1,450	1,450	3.6%
5 - 10 years	–	4,950	4,950	3.7%
Total	19,411	–	19,411	3.5%

Currency

Castellum owns properties in Denmark with a value of SEKm 466 (435), which means that the Group is exposed to a currency risk. The currency risk is primarily related to when income statement and balance sheet in foreign exchange are translated into Swedish currency. In accordance with 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-cashfl 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. At maturity, a derivative's market value is dissolved in its entirety and the change in value over time has thus not affected equity.

To calculate the market value of derivatives, market rates for each term and, where appropriate, exchange rates, as quoted on the market at the closing date are used. Interest rate swaps are valued by discounting future cash fl ows to present value while instruments containing options are valued at current repurchase price, which is obtained from the counter-party.

As of December 31, 2013, the market value of the interest rate derivatives portfolio amounted to SEKm –687 (–1,116) and the currency derivative portfolio to SEKm 4 (11).

Castellum's financial policy and committments in credit agreements
	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%	292%
Interest rate risk
– average fixed interest term	0.5-3 years	–	2.7 years
– proportion maturing within 6 months	No more than 50%	–	44%
Currency risk
– investment	60%-100% funded in local currency	–	79%
– other currency risks	Not allowed	–	No exposure
Funding risk	At least 50% of interest bearing liabilities have a duration of at least 2 years	–	79%
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 2,448 unutilized credit agreements

Consolidated statement of Comprehensive Income

SEKm	2013 Okt–Dec	2012 Okt–Dec	2013 Jan–Dec	2012 Jan–Dec
Rental income	818	788	3,249	3,073
Operating expenses	– 146	– 147	– 583	– 544
Maintenance	– 37	– 40	– 125	– 130
Ground rent	– 7	– 6	– 26	– 24
Property tax	– 41	– 38	– 169	– 152
Leasing and property administration	– 55	– 58	– 202	– 192
Net operating income	532	499	2,144	2,031
Central administrative expenses	– 29	– 27	– 96	– 93
Net interest costs	– 172	– 170	– 702	– 683
Income from property management	331	302	1,346	1,255
Changes in value
Properties	27	– 125	328	– 69
Derivatives	– 11	– 27	429	– 110
Income before tax	347	150	2,103	1,076
Current tax	6	2	– 6	– 7
Deferred tax	– 51	607	– 390	404
Net income for the period/year	302	759	1,707	1,473
Other total net income Items that will be reclassified into net income
Translation difference of currencies	9	8	10	– 12
Change in value derivatives, currency hedge	– 6	– 6	– 7	8
Total net income for the period/year	305	761	1,710	1,469

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

Data per Share

	2013 Okt–Dec	2012 Okt–Dec	2013 Jan–Dec	2012 Jan–Dec
Average number of shares, thousand	164,000	164,000	164,000	164,000
Income from property management, SEK	2.02	1.84	8.21	7.65
Income from property management after tax (EPRA EPS*), SEK	2.14	1.88	8.04	7.27
Earnings after tax, SEK	1.84	4.63	10.41	8.98
Outstanding number of shares, thousand	164,000	164,000	164,000	164,000
Property value, SEK	230	222	230	222
Long term net asset value (EPRA NAV*), SEK	107	100	107	100
Actual net asset value (EPRA NNNAV*), SEK	97	90	97	90

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

Financial Key Ratios

	2013 Okt–Dec	2012 Okt–Dec	2013 Jan–Dec	2012 Jan–Dec
Net operating income margin	65%	63%	66%	66%
Interest coverage ratio	292%	278%	292%	284%
Return on actual net asset value	9.2%	7.0%	13.2%	7.9%
Return on total capital	5.6%	3.8%	6.4%	5.3%
Net investments, SEKm	207	1,009	1,081	2,545
Loan to value ratio	52%	53%	52%	53%

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

Consolidated Balance Sheet

SEKm	31 Dec 2013	31 Dec 2012
Assets
Investment properties	37,752	36,328
Other fixed assets	31	27
Current receivables	260	232
Cash and bank	70	44
Total assets	38,113	36,631
Shareholders' equity and liabilities
Shareholders' equity	13,127	12,065
Deferred tax liability	3,700	3,310
Derivatives	683	1,105
Long term interest-bearing liabilities	19,481	19,094

Non interest-bearing liabilities 1,122 1,057

Total shareholders' equity and liabilities 38,113 36,631 Pledged assets (property mortgages) 18,375 18,764

Contingent liabilities – –

Changes in Equity

SEKm	Number of outstanding shares, thousand	Share capital	Other capital contribution	Currency transl. reserve	Currency hedge reserve	Retained earnings	Total equity
Shareholders equity 31-12-2011	164,000	86	4,096	0	0	7,021	11,203
Dividend, March 2012 (3,70 SEK/share)	–	–	–	–	–	– 607	– 607
Net income 2012	–	–	–	–	–	1,473	1,473
Other total net income 2012	–	–	–	– 12	8	–	– 4
Shareholders equity 31-12-2012	164,000	86	4,096	– 12	8	7,887	12,065
Dividend, March 2013 (3,95 SEK/share)	–	–	–	–	–	– 648	– 648
Net income 2013	–	–	–	–	–	1,707	1,707
Other total net income 2013	–	–	–	10	– 7	–	3
Shareholders equity 31-12-2013	164,000	86	4,096	– 2	1	8,946	13,127

Cash Flow Statement

	2013	2012	2013	2012
SEKm	Okt-Dec	Okt-Dec	Jan-Dec	Jan-Dec
Net operating income	532	499	2,144	2,031
Central administrative expenses	– 29	– 27	– 96	– 93
Reversed depreciations	3	3	11	9
Net interest rates paid	– 190	– 174	– 701	– 700
Tax paid	5	7	– 12	– 1
Translation difference of currencies	– 4	– 3	– 5	3
Cash fl ow from operating activities before change in working capital	317	305	1,341	1,249
Change in current receivables	1	2	– 22	– 32
Change in current liabilities	– 28	164	56	33
Cash fl ow from operating activities	290	471	1,375	1,250
Investments in new constructions, refurbishments and extensions	– 438	– 393	– 1,583	– 1,279
Property acquisitions	0	– 616	– 185	– 1,519
Change in liabilities at acquisitions of property	– 2	– 82	14	– 56
Property sales	231	–	687	253
Change in receivables at sales of property	13	34	– 6	– 8
Other investments	– 5	– 3	– 18	– 18
Cash fl ow from investment activities	– 201	– 1,060	– 1,091	– 2,627
Change in long term liabilities	– 195	622	387	1,934
Change long term receivables	–	– 3	3	– 3
Dividend paid	–	–	– 648	– 607
Cash fl ow from fi nancing activities	– 195	619	– 258	1,324
Cash fl ow for the period/year	– 106	30	26	– 53
Cash and bank opening balance	176	14	44	97
Cash and bank closing balance	70	44	70	44

Quartely Summary

	Jan-March 2013	Apr-June 2013	July-Sept 2013	Oct-Dec 2013	2013	Jan-March 2012	Apr-June 2012	July-Sept 2012	Oct-Dec 2012	2012
Income Statement, SEKm
Rental income	814	808	809	818	3,249	753	768	764	788	3,073
Property costs	– 317	– 269	– 233	– 286	– 1,105	– 284	– 200	– 229	– 289	– 1,042
Net operating income	497	539	576	532	2,144	469	528	535	499	2,031
Central administrative expenses	– 21	– 28	– 18	– 29	– 96	– 23	– 24	– 19	– 27	– 93
Net interest costs	– 176	– 177	– 177	– 172	– 702	– 173	– 171	– 169	– 170	– 683
Income from property management	300	334	381	331	1,346	273	333	347	302	1,255
Changes in value. properties	32	87	182	27	328	10	18	28	– 125	– 69
Changes in value. derivatives	166	221	53	– 11	429	206	– 97	– 192	– 27	– 110
Current tax	– 2	– 4	– 6	6	– 6	– 2	– 4	– 3	2	– 7
Deferred tax	– 93	– 139	– 107	– 51	– 390	– 125	– 32	– 46	607	404
Net income for the period/year	403	499	503	302	1,707	362	218	134	759	1,473
Other total net income	0	3	– 3	3	3	0	0	– 6	2	– 4
Total net income for the period/year	403	502	500	305	1,710	362	218	128	761	1,469
Balance Sheet, SEKm
Investment properties	36,683	37,301	37,505	37,752	37,752	34,200	34,632	35,433	36,328	36,328
Other fixed assets	283	276	303	291	291	176	264	292	259	259
Cash and bank	18	59	176	70	70	22	59	14	44	44
Total assets	36,984	37,636	37,984	38,113	38,113	34,398	34,955	35,739	36,631	36,631
Shareholders' equity	11,820	12,322	12,822	13,127	13,127	10,958	11,176	11,304	12,065	12,065
Deferred tax liability	3,403	3,542	3,649	3,700	3,700	3,839	3,871	3,917	3,310	3,310
Derivatives	932	721	666	683	683	796	894	1,072	1,105	1,105
Long term interest-bearing liabilities	19,773	19,988	19,676	19,481	19,481	17,839	18,066	18,472	19,094	19,094
Non-interest-bearing liabilities	1,056	1,063	1,171	1,122	1,122	966	948	974	1,057	1,057
Total shareholders' equity and liabilities	36,984	37,636	37,984	38,113	38,113	34,398	34,955	35,739	36,631	36,631
Financial key ratios
Net operating income margin	61%	67%	71%	65%	66%	62%	69%	70%	63%	66%
Interest rate, avarage	3.8%	3.7%	3.7%	3.6%	3.7%	4.1%	3.9%	3.9%	3.7%	3.9%
Interest coverage ratio	270%	289%	315%	292%	292%	258%	295%	305%	278%	284%
Return on actual net asset value	12.3%	15.5%	14.3%	9.2%	13.2%	13.3%	6.0%	4.8%	7.0%	7.9%
Return on total capital	5.5%	6.4%	7.8%	5.6%	6.4%	5.3%	6.0%	6.2%	3.8%	5.3%
Investments in properties, SEKm	413	538	379	438	1,768	331	615	843	1,009	2,798
Sales, SEKm	80	25	351	231	687	8	203	42	–	253
Loan to value ratio	54%	54%	52%	52%	52%	52%	52%	52%	53%	53%
Data per share (since there are no potential common stock there is no effect of dilution)
Average number of shares, thousand	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000
Income from property management, SEK	1.83	2.04	2.32	2.02	8.21	1,66	2,03	2,12	1,84	7,65
Income prop mgmt after tax (EPRA EPS), SEK	1.77	1.96	2.17	2.14	8.04	1,59	1,87	1,93	1,88	7,27
Earnings after tax, SEK	2.46	3.04	3.07	1.84	10.41	2,21	1,33	0,82	4,63	8,98
Outstanding number of shares, thousand	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000
Property value, SEK	224	227	229	230	230	209	211	216	222	222
Long term net asset value (EPRA NAV), SEK	99	101	104	107	107	95	97	99	100	100
Actual net asset value (EPRA NNNAV), SEK	88	92	95	97	97	86	87	88	90	90
Dividend, SEK (2013 proposed)					4.25					3,95
Dividend ratio					52%					52%
Property related key ratios
Rental value, SEK/sq,m,	1,025	1,032	1,029	1,042	1,036	1,011	1,015	1,020	1,032	1,015
Economic occupancy rate	89.3%	87.6%	89.0%	88.6%	88.4%	88.5%	89.4%	88.2%	88.8%	88.6%
Property costs, SEK/sq,m,	353	299	258	322	307	335	281	267	325	298
Property value, SEK/sq,m,	10,006	10,081	10,170	10,285	10,285	9,903	9,971	9,927	9,916	9,916

Multi-Year Summary

	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
Income Statement, SEKm
Rental income	3,249	3,073	2,919	2,759	2,694	2,501	2,259	2,014	1,907	1,856
Property costs	– 1,105	– 1,042	– 1,003	– 960	– 942	– 831	– 771	– 700	– 637	– 628
Net operating income	2,144	2,031	1,916	1,799	1,752	1,670	1,488	1,314	1,270	1,228
Central administrative expenses	– 96	– 93	– 83	– 84	– 81	– 71	– 69	– 67	– 68	– 69
Net interest costs	– 702	– 683	– 660	– 574	– 541	– 626	– 495	– 364	– 382	– 418
Income from property management	1,346	1,255	1,173	1,141	1,130	973	924	883	820	741
Changes in value, properties	328	– 69	194	1,222	– 1,027	– 1,262	920	1,145	932	660
	429
Changes in value, derivatives	– 6	– 110	– 429	291	102	– 1,010	99	178	– 40	– 146
Current tax	– 390	– 7	– 10	– 5	– 10	–14	– 22	– 10	–1	– 5
Deferred tax		404	– 217	– 685	– 35	650	– 434	– 522	– 417	– 334
Net income for the year	1,707	1,473	711	1,964	160	– 663	1,487	1,674	1,294	916
Other total net income	3	– 4	0	–	–	–	–	–	–	–
Total net income for the year	1,710	1,469	711	1,964	160	– 663	1,487	1,674	1,294	916
Balance Sheet, SEKm
Investment properties	37,752	36,328	33,867	31,768	29,267	29,165	27,717	24,238	21,270	19,449
Other fixed assets	291	259	207	156	201	230	123	200	103	94
Cash and bank	70	44	97	12	8	9	7	8	5	7
Total assets	38,113	36,631	34,171	31,936	29,476	29,404	27,847	24,446	21,378	19,550
Shareholders' equity	13,127	12,065	11,203	11,082	9,692	10,049	11,204	10,184	8,940	8,035
Deferred tax liability	3,700	3,310	3,714	3,502	2,824	2,785	3,322	2,723	2,126	1,659
Derivatives	683	1,105	1,003	574	865	966	– 44	55	233	391
Long term interest-bearing liabilities	19,481	19,094	17,160	15,781	15,294	14,607	12,582	10,837	9,396	8,834
Non-interest-bearing liabilities	1,122	1,057	1,091	997	801	997	783	647	683	631
Total shareholders' equity and liabilities	38,113	36,631	34,171	31,936	29,476	29,404	27,847	24,446	21,378	19,550
Financial key ratios
Net operating income margin	66%	66%	66%	65%	65%	67%	66%	65%	67%	66%
Interest rate, average	3.7%	3,9%	4,1%	3,7%	3,7%	4,7%	4,2%	3,7%	4,3%	4,9%
Interest coverage ratio	292%	284%	278%	299%	309%	255%	287%	343%	315%	277%
Return on actual net asset value	13.2%	7,9%	6,4%	21,5%	1,6%	– 8,3%	16,2%	20,7%	18,2%	14,6%
Return on total capital	6.4%	5,3%	6,2%	9,8%	2,1%	1,2%	9,1%	10,4%	10,4%	9,6%
Net investments in properties, SEKm	1,768	2,798	2,015	1,506	1,165	2,738	2,598	2,283	1,357	1,268
Sales, SEKm	687	253	107	227	36	28	39	460	468	494
Loan to value ratio	52%	53%	51%	50%	52%	50%	45%	45%	45%	45%
Data per share (since there are no potential common stock, there is no effect of dilution)
Average number of shares, thousand	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000
Income from property management, SEK	8.21	7.65	7.15	6.96	6.89	5.93	5.63	5.38	5.00	4.52
Income prop mgmt after tax (EPRA EPS), SEK	8.04	7.27	7.01	6.62	6.93	5.85	5.50	5.09	4.49	4.15
Earnings after tax, SEK	10.41	8.98	4.34	11.98	0.98	– 4.04	9.07	10.21	7.89	5.59
Number of outstanding shares, thousand	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000	164,000
Property value, SEK	230	222	207	194	178	178	169	148	130	119
Long term net asset value (EPRA NAV), SEK	107	100	97	92	82	84	88	79	69	61
Actual net asset value (EPRA NNNAV), SEK	97	90	87	85	73	75	85	76	65	57
Dividend, SEK (2013 proposed)	4.25	3.95	3.70	3.60	3.50	3.15	3.00	2.85	2.62	2.38
Dividend ratio	52%	52%	52%	52%	51%	53%	53%	53%	52%	53%
Property related key ratios
Rental value, SEK/sq,m,	1,036	1,015	995	974	969	921	896	864	851	859
Economic occupancy rate	88.4%	88.6%	89.3%	89.0%	89.8%	89.7%	87.9%	87.1%	88.1%	89.6%
Property costs, SEK/sq,m,	307	298	300	298	300	268	262	259	247	255
Property value, SEK/sq,m	10,285	9,916	9,835	9,499	9,036	8,984	9,098	8,466	7,930	7,706

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 capital allocation and involvement in subsidiary Boards.

Income statement SEKm	2013 Oct-Dec	2012 Oct-Dec	2013 Jan-Dec	2012 Jan-Dec
Income	6	4	18	15
Operating expenses	– 22	– 21	– 71	– 68
Net financial items	3	1	15	15
Dividend / Group contributions	718	645	718	645
Changes in value, interest rate derivatives	– 11	– 27	429	– 110
Income before tax	694	602	1 109	497
Tax	– 28	– 76	– 119	– 49
Net income for the period	666	526	990	448
Comprehensive income for the parent company
Net income for the period	666	526	990	448
Other total net income
Items that will be reclassified into net income
Translation diff. foreign operations	6	6	7	– 10
Unrealized change, currency hedge	– 6	– 6	– 7	8
Total net income for the period	666	526	990	446
Balance sheet, SEKm		31 Dec 2013		31 Dec 2012
Participations in group companies		5,869		5,338
Receivables, group companies		18,137		18,628
Other assets		119		234
Cash and bank		52		27
Total		24,177		24,227
Shareholders' equity		5,038		4,696
Derivatives		683		1,105
Interest bearing liabilities		17,315		16,924
Interest bearing liabilities, group companies		998		1,361
Other liabilities		143		141
Total		24,177		24,227
Pledged assets (receivables group companies) Contingent liabilities (guaranteed commitments		14,928 2,166		15,090 2,170

for subsidiaries) 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 the Annual Accounts Act. Since the beginning of the year, Castellum applies the new layout of other net income in accordance with IAS 1. Information of items measured at fair value is disclosed in accordance with IFRS 13 where investment properties are classifi ed in level 3 and derivatives in level 2. Accounting principles and methods for calculations have 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 expected 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 increased 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	+ 33/– 33	+	–
Vacancies	+ 37/– 37	+	–
Property costs	– 11/+ 11	–	0
Interest costs	– 75/+ 67	–	+

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 upwarded 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	– 7,550	– 3,775	0	3,775	7,550
Loan to value ratio	65%	57%	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 a low loan-to-value ratio and long-term credit agreements.

Annual General Meeting

For the AGM on March 20, 2014 the Board of Directors proposes:

• a dividend of SEK 4.25 per share and March 25, 2014 as record day. The proposal is an increase of 8% compared to previous year,
• guidelines for remuneration to members of the executive management,
• a renewed mandate for the Board to decide on purchase or transfer of the company's own shares.

The election committee, which consists of Björn Franzon (chairman) representing Magdalena and László Szombatfalvy and Stiftelsen Global Challenges Foundation, Rutger van der Lubbe representing Stichting Pensioenfonds ABP, Johan Strandberg representing SEB Fonder and Castellum's Chairman of the board Charlotte Strömberg, proposes for the AGM;

• re-election of the present board members Mrs. Charlotte Strömberg, Mr. Per Berggren, Mrs. Marianne Dicander Alexandersson, Mr.Christer Jacobson, Mr. Jan Åke Jonsson and Mr. Johan Skoglund, as members of the board of directors. Mrs. Nina Linander is proposed to be elected as new member of the board of directors. Mrs. Ulla-Britt Fräjdin-Hellqvist, board member since 2003, has declined re-election. Mrs. Charlotte Strömberg is proposed to be re-elected as chairman of the board of directors.
• re-election of the authorised public accountant Mr. Magnus Fredmer (EY) and the authorised public accountant Mr. Hans Warén (Deloitte) is proposed to be elected as new auditor. The authorised public accountant Mr. Fredrik Walméus (Deloitte) is proposed to be elected as new deputy auditor.
• that remuneration to the board of directors is proposed to be the following. The board of directors has, following discussion with the election committee, decided to establish a separate audit and fi nance committee. The chairman of the board of directors: SEK 585,000, other members of the board of directors: SEK 275,000, member of the board of directors' remuneration committee, including the chairman: SEK 30,000, chairman of the board of directors' audit and fi nance committee: SEK 50,000, other members of the board of directors' audit and fi nance committee: SEK 35,000.The proposed total remuneration to the members of the board of directors, including remuneration for committee work, accordingly amounts to SEK 2,445,000 (SEK 2,115,000 previous year).
• that remuneration to the auditors during their term of offi ce is proposed to be based on approved accounts,
• for AGM to decide on appointing an election committee for the AGM 2015 and for the Chairman to contact the three largest registered or in an other way known shareholders at the end of the last day of share trade in August 2014 and invite them each to appoint one member to the election committee, and that the three appointed members together with the Chairman of the Board of Directors shall constitute the election committee. The election committee appoints a chairman amongst its members. The names of the members of the election committee shall be made public no later than six months before the next annual general meeting 2015.

Gothenburg January 22, 2014

Board of Directors

Chairman of the Board Per Berggren Board member

Marianne Dicander Alexandersson Board member

Ulla-Britt Fräjdin-Hellqvist Board member

Charlotte Strömberg

Jan Åke Jonsson Board member

Johan Skoglund Board member

Johan Ljungberg Secretary to the Board

Executive Group Management

Henrik Saxborn Chief Executive Officer Anette Asklin Financial Director

Christoffersson MD Eklandia

Ulrika Danielsson Finance Director

Claes Larsson MD Aspholmen

Fastigheter AB

Anders Nilsson MD Fastighets AB Brostaden

Claes Junefelt MD Fastighets AB Corallen

Gunnar Östenson MD Fastighets AB Briggen

*As previously announced, Tage Christoffersson is appointed as Head of Business Development at Castellum AB - a new role that will be part of the Executive Group Management – with effect during the first half of 2014. The recruitment of a new CEO to Eklandia Fastighets AB is in progress.

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 12,200 shareholders. Shareholders registered abroad cannot be broken down in terms of directly held and nominee registered shares except for two foreign shareholders who has fl agged for holding over 5%, Stichting Pensioenfonds ABP and EII Capital Management B.V. EII Capital Management B.V. has declared that they have decreased their holdings to under 5% after the year-end. Castellum has no direct registered shareholders with holdings exceeding 10%. The ten single largest Swedish shareholders are presented in the table below.

Shareholders on 31-12-2013		Percentage of
Shareholders	Number of shares thousand	voting rights and capital
Magdalena Szombatfalvy	4,935	3.0%
Lannebo Småbolag	3,345	2.0%
Stiftelsen Global Challenges Foundation	2,500	1.5%
László Szombatfalvy	2,500	1.5%
Länsförsäkringar Fastighetsfond	2,482	1.5%
Andra AP-fonden	1,857	1.1%
Caceis Bank France	1,706	1.0%
Fjärde AP-fonden	1,308	0.8%
Tredje AP-fonden	1,228	0.7%
SEB Världenfond	925	0.6%
Board and executive management Castellum	302	0.2%
Other shareholders registered in Sweden	39,132	24.0%
Shareholders registered abroad	101,780	62.1%
Total registered shares	164,000	100.0%
Repurchased shares	8,007
Total registered shares	172,007

There is no potential common stock (eg. convertibles)

Distribution of shareholders by country 31-12-2013

The Castellum share price as at 31 December, 2013 was SEK 100.10 (92.30) equivalent to a market capitalization of SEK 16.4 billion (15.1), calculated on the number of outstanding shares.

During the year a total of 106 million (129) shares were traded, equivalent to an average of 425,000 shares (517,000) per day, corresponding on an annual basis to a turnover rate of 65% (79%). The share turnover is based on statistics from NASDAQ OMX, Chi-X, Burgundy, Turquoise and BATS Europe.

Net asset value

Net asset value is the total equity which the the company manages to its owners by creating profi t and growth given a certain level of risk.

The long term net asset value (EPRA NAV) can be calculated to SEK 107 per share (100). The share price at the end of the year was thus 94% (92%) of the long term net asset value.

Net asset value	SEKm	SEK/share
Equity according to the balance sheet	13,127	80
Reversed
Derivatives according to balance sheet	683	4
Deferred tax according to balance sheet	3,700	23
Long term net asset value (EPRA NAV)	17,510	107
Deduction
Derivatives as above	– 683	– 4
Estimated real liability, deferred tax 5.0%*	– 887	– 6
Actual net asset value (EPRA NNNAV)	15,940	97

* Estimated real deferred tax liability net has been calculated to 5.0% based on a discount rate of 3%. Further, assessments have been made that tax loss carry forwards are realized in 3 years with a nominal tax of 22%, giving a present value of deferred tax liability of 20.7%, and that the properties are realized in 50 years where 33% are sold directly with a nominal tax of 22% and that 67% are sold indirect through company disposals where the buyers tax discount is 6%, which gives a present value of deferred tax liability of 5.8%.

Growth, yield and financial risk

During the last 12-month period the total yield of the Castellum share has been 13% (13%), including dividend of SEK 3.95.

	2013	3 years average/year	10 years average/year
Growth
Rental income SEK/share	6%	6%	6%
Income from prop. management SEK/share	7%	6%	7%
Net income for the year after tax SEK/share	16%	neg.	15%
Dividend SEK/share	8%	6%	7%
Long term net asset value SEK/share	7%	5%	7%
Actual net asset value SEK/share	8%	5%	6%
Real estate portfolio SEK/share	4%	6%	8%
Change in property value	0.9%	0.4%	1.4%
Yield
Return on actual long term net asset value	10.4%	10.6%	11.0%
Return on actual net asset value	13.2%	11.6%	11.1%
Return on total capital	6.4%	6.6%	7.0%
Total yield of the share (incl. dividend)
Castellum	13%	7%	13%
NASDAQ OMX Stockholm (SIX Return)	28%	9%	12%
Real Estate Index Sweden (EPRA)	21%	7%	15%
Real Estate Index Europe (EPRA)	10%	9%	7%
Financial risk
Interest coverage ratio	292%	284%	294%
Loan to value ratio	52%	51%	49%
Unutilized long term credit agreements	2,448	1 804	1,612

Yield including long-term change in value

Change in value of both properties and derivatives can fl uctuate greatly from year to year and result in volatile earnings. As a long term actor with stable cash fl ow and a balanced property portfolio, change of property value over time should be at least in line with infl ation. From a shareholder valuation perspective, the long-term value can be used to achieve comparability with other industries. If this view is used for Castellum it means a return of both shares (inverted P/E), is based on a price of SEK 100.10, as well as net asset value of 11.0% and 11.2%. The calculation, as shown in

Yield including long-term change in value

		Sensitivity analysis
		–1%-unit	+1%-unit
Income from property management 2013	1,346	1,346	1,346
Change in property value (on average 10 years)	525	150	900
D:o %	1.40%	0.40%	2.40%
Current tax, 5%	– 67	– 67	– 67
Earnings after tax	1 805	1,429	2,180
Earnings SEK/share	11.00	8.72	13.29
Return on share	11.0%	8.7%	13.3%
Return on actual long term net asset value	11.2%	8.9%	13.6%

Yield earnings per share

the table below, based on Castellum income from property managment in 2013, the property portfolio's average change in value last 10 years, that the derivatives portfolio's value over time is zero and the an effective current tax of 5%. The table also shows the outcome in 2013, and a sensitivity analysis on long-term value change of -/+1% unit.

Valuation - share price related key figures

Dividend yield

The proposed dividend of SEK 4.25 (3.95) corresponds to a yield of 4.2% (4.3%) based on the share price at the end of the year.

Earnings

Income from property management per share net of tax attributable to property management (EPRA EPS) amounted in 2013 to 8.04 kronor (7.27), which is based on the share price provides a return of 8.0% (7.9%).

Earnings per share amounted in 2013 to 10.41 SEK (8.98), which based on the share price provides a return on 10.4% (9.7%).

Actual share price:

The share's divident yield Share price/net asset value

The Castellum share's price trend and turnover since the IPO May 23, 1997 until December 31, 2013

Calendar

Annual Report 2013 mid-February 2014 Annual General Meeting 20 March 2014 Interim Report January-March 2014 22 april 2014, around 2 pm Half-year Report January-June 2014 16 July 2014 Interim Report January-September 2014 15 October 2014 Year-end Report 2014 21 January 2015 Annual General Meeting 19 March 2015

The Board of Directors in Castellum proposes a dividend to the shareholders of SEK 4.25 per share.

Record date for AGM 14 March 2014 Annual General Meeting 20 March 2014 Ex-dividend date 21 March 2014 Record date for dividend 25 March 2014 Dividend payment 28 March 2014

www.castellum.se

On Castellum's website it is possible to download as well as subscribe to Castellum's Pressreleases and Interim Reports. For further information please contact Henrik Saxborn, CEO, tel +46 705 60 74 50 or Ulrika Danielsson, Finance Director, tel +46 706 47 12 61.

Invitation to Annual General Meeting 2014

The Annual General Meeting of shareholders will be held on Thursday 20 March 2014 at 5 pm at GöteborgsOperan, Christina Nilssons gata in Gothenburg. The entrance opens at 4 pm. Shareholders wishing to attend the Annual General Meeting must be registered as shareholders in the share register kept by Euroclear Sweden AB by Friday 14 March 2014 and must also have notified their attendance to the company no later than 4 pm on Friday 14 March 2014.

Summons to the annual general meeting will be around 17 February 2014 and the summons will be available at www.castellum.se. Also Castellum's annual report and other documents which will be presented at the Annual General Meeting will be available on the website by then. The summons will include the items to be addressed at the Annual General Meeting. Shareholders who wish to attend the Annual General Meeting are already welcome to notify their attendance as described below.

Notification of attendance at the annual general meeting can be made by post to Castellum AB (publ), Box 2269, 403 14, Gothenburg, by phone +46 (0)31-60 74 00, by fax +46 (0)31-13 17 55, by e-mail info@castellum.se, or by filling out a notification form on www.castellum.se. The notification must state name/business name, personal identification number/company registration number, address and telephone number. For those shareholders, who wish to be represented by proxy, the company provides a proxy form on www.castellum.se.

Shareholders with nominee registered shares must temporarily register such nominee shares in their own name in order to have the right to participate at the annual general meeting. Such registration must have been carried out at Euroclear Sweden AB no later than Friday 14 March 2014. Shareholders must, in good time before this date, instruct their nominees to effect such registration.

A shareholder have the right to have a matter addressed at the coming Annual General Meeting. For practical reasons the request should be received by the company no later than 3 February, 2014. The request should be addressed to Castellum AB, Att: Henrik Saxborn, Box 2269, 403 14 Göteborg.

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 +46370-475 90 info@corallen.se www.corallen.se

Fastighets AB Briggen

Riggaregatan 57, Box 3158, 211 18 Malmö Telephone +46 040-38 37 20 Telefax +46 40-38 37 37 fastighets.ab@briggen.se www.briggen.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 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

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

Castellum Year-end Report 2013 Castellum AB (publ) • Box 2269, 403 14 Göteborg • Besöksadress Kaserntorget 5 Telefon 031-60 74 00 • Telefax 031-13 17 55 • E-post info@castellum.se • www.castellum.se Säte: Göteborg • Org nr: 556475-5550