INTERIM REPORT JANUARY – MARCH 2012

New Haga Norra will be part of a new city quarter, with housing, offices and green spaces at street and rooftop level

INTERIM REPORT JANUARY-MARCH 2012

First quarter, continuing operations

Rental revenue SEK 6.7 M (6.9)
Operating profit SEK 18.8 M (30.0)
Profit before tax SEK 16.5 M (31.8)
Profit after tax SEK 12.2 M (23.9)
Unrealized changes in property value SEK 14.8 M (29.0)
Investments in continuing operations SEK 0.2 M (1.0)
Profit after tax SEK 12.2 M (91.0)

After the end of the period

• In April, the Solna city planning committee approved the zoning plan for Haga Norra for exhibition.

CEO Andreas Philipson comments

In the first quarter, zoning plan development continued on Catena's Haga Norra property project in Solna, Stockholm. After negotiations with the City of Solna regarding the principles governing the development contract for this property concluded, the Solna city planning committee approved the zoning plan for exhibition in mid-April. The zoning plan will be on display in May, and is expected to be approved by the City of Solna after the holiday period.

This decision is an important step in Catena's long-term efforts to realize the Haga Norra quarter of the future, with new housing and workplaces. Haga Norra is attractively located in the forthcoming new and merged Solna-Stockholm with the National Arena, the Mall of Scandinavia, Hagastaden, Frösunda and easy access to the E4 highway. Letting work has commenced, and we're seeing great interest from potential office tenants.

Profit before tax for the quarter was SEK 16.5 M, compared to SEK 31.8 M for the corresponding quarter of the previous year. The change is due to Catena still holding a portfolio of 25 retail properties in early-2011, which were then sold. In like-for-like terms, development progressed as planned, with existing tenants continuing to provide stable cash flows that ensure funding of our project work.

THE GROUP'S REVENUES, EXPENSES AND EARNINGS

First quarter

In the first quarter, rental revenue amounted to SEK 6.7 M (6.9). Property expenses were SEK 1.0 M (1.6) while the operating surplus was SEK 5.7 M (5.3). Administration costs amounted to SEK 1.7 M (4.3).

Change in property value amounted to SEK 14.8 M (29.0) in the quarter. The property value was appraised at a total of SEK 625 M. This value includes investments of SEK 0.2 M. The appraisal was conducted by Forum Fastighetsekonomi, with a valuation date of March 31.

The positive change in property value is primarily due to continued progress in the zoning plan work. Once the zoning plan is approved, there is significant potential in the value of properties and development rights.

Unrealized value changes on interest swaps amounted to SEK 0.4 M.

Operating profit amounted to SEK 18.8 M (30.0) while net financial items were SEK -2.3 M (1.8).

Current tax amounted to SEK -0.4 M (-1.0) and deferred tax was SEK -3.9 M (-6.9).

Properties

The group's property portfolio consists of two properties in Haga Norra, Solna, Stockholm.

These properties have leasable area of 40,723 sq. m. Total rental value as of March 31, 2012 was SEK 28.7 M (28.7). The economic occupancy rate amounted to 96.9% (96.9).

Valuation and applied valuation method

Essentially, the fair value recognized in the Balance Sheet consists of the estimated value of development rights that could be enabled through ongoing zoning planning work for the property. Potential development rights are for housing and commercial premises in the properties Stora Frösunda 2 and Hagalund 2:2 in the Municipality of Solna.

The applied valuation method for the potential development rights is based on a location price method, with values estimated through comparisons with land allocation contracts and agreements on transferring development rights in Stockholm and Stockholm suburbs. After an appraisal, which factors in the status of Catena's potential development rights in relation to comparables, a deduction has been made for estimated cost relating to demolition, planning, etc. Deductions will also be made for waiting periods and the assessed risks associated with the potential development rights. A minority of the total appraised fair value consists of the present value of the operating net generated from current usage of the property.

The total estimated fair value of the property amounts to SEK 625 M. Against the background of factors including the zoning planning work being incomplete, the quantification of appraisals is associated with fairly substantial uncertainty. However, this uncertainty is expected to reduce over time as the timing for approval of the plan approaches.

Financing

As of March 31, 2012, the Catena group had loan agreements amounting to SEK 306 M.

At the end of the period, interest-bearing liabilities were SEK 306 M (306).

The loan is due in 2014.

The average fixed-interest period as of March 31, 2012 amounted to 0.3 years (0.3). The average interest rate was 3.65% (3.02).

The fixed-interest period has been achieved by extending loans with short fixed-interest periods using swap agreements.

Catena only has loans denominated in Swedish krona.

Equity

Equity amounted to SEK 309 M (944) as of March 31, 2012 and the equity/assets ratio was 42.4% (69.9). Over the long term, the equity/assets ratio should be in the 25 – 35% range.

Liquidity

As of March 31, 2012, cash and cash equivalents, which comprise cash and bank deposits, were SEK 76 M (735) of which blocked funds were SEK 20.3 M.

PARENT COMPANY

The operations of the parent company, Catena AB, primarily consist of group-wide functions and management of the group's subsidiaries.

Interest and loan maturity structure as of March 31, 2012

		Interest maturities			Loan maturities
	Loan amount	Ave. interest	Share	Credit agreements	Utilized	Share
Maturity, year	SEK M	%	%	SEK M	SEK M	%
3 mth. Stibor	176.4	3.54	57.6	-	-	-
2012	130.0	3.79	42.4	-	-	-
2014	-	-	-	306.4	306.4	100.0 -
Total	306.4	3.65	100.0	306.4	306.4	100.0

ORGANIZATION

Catena AB, corporate identity number 556294-1715, is the parent company of the Catena group. The Swedish property is held by a wholly owned Swedish subsidiary.

There were 2 (5) employees.

THE CATENA SHARE

The Catena share is listed on Nasdaq OMX Stockholm—Nordic list Small Cap.

The closing price on March 31, 2012 was SEK 68.75 per share, corresponding to market capitalization of some SEK 795 M.

As of March 30, 2012, there were 11,564,500 shares in Catena, held by some 17,000 shareholders.

PROPOSED DIVIDEND

The Board of Directors proposes a dividend of SEK 2.00 per share for the financial year 2011.

Shareholders as of March 30, 2012	No. of shares	Votes (%)
Endicott Sweden AB (CLS Holdings plc)	3,469,000	29.9
Erik Selin group	2,344,642	20.3
PEAB AB	2,310,000	20.0
Livförsäkrings AB Skandia (publ)	277,374	2.4
Banque Carnegie Luxembourg SA	270,018	2.3
CBNY-DFA-INT SML CAP V	107,613	0.9
Swedbank Robur funds	60,208	0.5
Mellon US Tax Exempt Account	59,300	0.5
CNBY-DFA-CNTL SML CO S	56,202	0.5
Handelsbanken fonder	52,125	0.4
Total, 10 largest	9,006,482	77.7
Other	2,558,018	22.3
Total	11,564,500	100.0

ACCOUNTING POLICIES

Catena applies IFRS as endorsed by the EU and their IFRIC interpretation standards. This Interim Report was prepared in accordance with IAS 34 and the Swedish Annual Accounts Act for the group and in accordance with the Swedish Annual Accounts Act for the parent company. IFRS 5, which addresses discontinued operations, has been applied. Otherwise, these accounting policies and computation methods comply with those applied in the most recent Annual Report.

RISKS AND UNCERTAINTY FACTORS

Catena is subject to a number of risks that can affect the company's operations, results of operations and the value of properties. These risks include risks in lease contracts, changes in operating and maintenance costs, interest and funding risks and taxes. Properties are recognized in the Balance Sheet at fair value. Value changes are recognized in the Income Statement. This implies that the effects on Catena's Balance Sheet and Income Statement become more volatile and affect items, including the group's results of operations, equity/assets ratio and loan to value ratio.

Value changes

In this quarterly financial statement, the valuation of the group's investment property has been conducted by ordering an external property appraisal.

The value of the group's interest swaps are estimated externally. The value of these instruments varies with the contracted interest rate and market interest rate.

Over and above what is stated in this Interim Report, no material changes have occurred compared to the statement in the Annual Report.

For more information on risk and uncertainty factors, please refer to note 25 on page 42 of Catena's Annual Report for 2011.

Parent company

The parent company is exposed to the aforementioned risks through intragroup loans and financial derivatives.

CALENDAR

Annual General Meeting	April 26, 2012
Interim Reports 2012
January–June	August 9, 2012
January–September	October 25, 2012
Year-end Report 2012	February 2013

EVENTS AFTER THE END OF THE REPORTING PERIOD

After negotiations with the City of Solna regarding the principles governing the development contract for Catena's property in Haga Norra concluded, the Solna city planning committee approved the zoning plan for exhibition in mid-April.

This Interim Report has not been subject to a limited review by the company's auditor.

Solna, April 26, 2012 Catena AB (publ)

The Board of Directors

The information in this Report is mandatory for Catena AB (publ) to disclose in accordance with the Swedish Securities Markets Act.

The information was released to the media for publication on April 26, 2012 at 2:00 p.m. CET.

CONSOLIDATED INCOME STATEMENT, CONDENSED

	2012	2011	2011
SEK M	Jan-Mar	Jan-Mar	Jan-Dec
Continuing operations
Rental revenue	6.7	6.9	26.9
Operating expenses	-	-	-0.7
Repair and maintenance expenses	-	-0.1	-0.3
Property tax	-0.7	-0.7	-2.7
Property administration	-0.3	-0.8	-2.7
Operating surplus	5.7	5.3	20.6
Other operating income	-	-	0.1
Other operating expenses	-	-	-
Central administration	-1.7	-4.3	-12.9
Properties, unrealized value changes	14.8	29.0	86.7
Operating profit	18.8	30.0	94.5
Net financial items	-2.3	1.8	-3.8
Profit/loss before tax	16.5	31.8	90.7
Current tax	-0.4	-1.0	-5.0
Deferred tax	-3.9	-6.9	-24.7
Profit/loss for the period after tax from continuing operations	12.2	23.9	61.0
Discontinued operations
Capital gain/loss on divestment of discontinued operations
Properties, realized value changes	-	2.1	2.6
Taxes attributable to above value changes	-	65.0	66.0
Capital gain/loss on divestment after tax	-	67.1	68.6
Total gain/loss from discontinued operations after tax	-	67.1	68.6
Profit/loss after tax for the period	12.2	91.0	129.6
Earnings per share*	1.05	7.87	11.21
Earnings per share from continuing operations*	1.05	2.07	5.28

* There is no dilution effect and there are no potential shares

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SEK M	2012 Jan-Mar	2011 Jan-Mar	2011 Jan-Dec
Profit after tax for the period	12.2	91.0	129.6
Other comprehensive income for the period
Actuarial profit/loss	-	-	-2.1
Revaluation reserve transferred to net profit	-	6.0	7.5
Total other comprehensive income	-	6.0	5.4
Comprehensive income for the period	12.2	97.0	135.0

CONSOLIDATED BALANCE SHEET, CONDENSED

	Actual	Actual	Actual
	31 Mar	31 Mar	31 Dec
SEK M	2012	2011	2011
Assets
Investment properties	625	550	610
Current receivables	28	65	7
Cash and cash equivalents/investments in securities, etc	76	735	94
Total assets	729	1,350	711
Equity and liabilities
Equity	309	944	297
Provisions	85	59	82
Interest-bearing liabilities	307	306	307
Non-interest-bearing liabilities	28	41	25
Total equity and liabilities	729	1,350	711

Pledged assets	31 Mar 2012	31 Mar 2011	31 Dec 2011
Blocked account	20	20	20
Mortgages	306	306	306

Total pledged assets	326	326	326
Contingent liabilities Guarantee commitment, FPG/PRI	0,2	0,2	0,1

CHANGES IN CONSOLIDATED EQUITY, CONDENSED

	Actual	Actual	Actual
	2012	2011	2011
SEK M	Jan-Mar	Jan-Mar	Jan-Dec
Opening equity	297	847	844
Dividend	-	-	-682
Comprehensive income for the period	12	97	135
Closing equity	309	944	297

CONSOLIDATED CASH FLOW, CONDENSED

	Actual	Actual
	2012	2011
SEK M	Jan-Mar	Jan-Mar
Profit before tax	17	32
Adjustment for non-cash items	-15	-33
Tax paid	-	-
Change in working capital	-20	-106
Cash flow from operating activities	-18	-107
Change in investment properties/property, plant and equipment	-	1,525
Cash flow from investing activities	-	1,525
Paid dividend	-	-
Change in interest-bearing liabilities	-	-740
Cash flow from financing activities and	-	-740
Cash flow from continuing operations in the period	-18	678
Total cash flow for the period	-18	678
Cash and cash equivalents at beginning of period	94	57
Cash and cash equivalents at end of period	76	735

KEY RATIOS, GROUP

	Actual	Actual
	2012	2011
SEK M	Jan-Mar	Jan-Mar
Financial (incl. discontinued operations)
Return on equity, %	16.1	40.6
Return on total capital, %	10.9	8.7
Equity/assets ratio, %	42.4	69.9
Interest coverage ratio, multiple	1.4	6.0
Loan to value ratio, properties, %	49.1	55.6
Debt/equity ratio, multiple	1.0	0.3
Share-related
Earnings per share for the period, continuing operations, SEK	1.05	2.07
Profit before tax for the period, continuing operations, per share, SEK	1.43	2.75
Operating profit per share for the period, continuing operations, SEK	1.63	2.59
Equity per share, SEK	26.72	81.63
Dividend per share, SEK	-	-
Number of shares at end of period, 000	11,565	11,565
Average number of shares, 000	11,565	11,565
There is no dilution effect because there are no potential shares
Property-related, continuing operations
Book value of properties, SEK M	625	550
Property yield, %	3.3	3.85
Leasable area, sq. m.	40,723	40,723
Rental revenue, SEK per sq. m.	661	678
Operating surplus, SEK per sq. m.	506	521
Economic occupancy rate, %	96.9	96.9
Operating surplus margin, %	85.1	76.8

	Actual 2012	Actual 2011	Actual 2011
SEK M	Jan-Mar	Jan-Mar	Jan-Dec
Rental revenue	-	-	-
Operating expenses	-	-	-
Operating surplus	-	-	-
Other operating income	1.0	1.0	4.1
Other operating expenses	-	-	-
Central administration	-1.7	-5.3	-16.6
Operating profit	-0.7	-4.3	-12.5
Profit/loss from sale of subsidiary	-	-10.3	-10.8
Net financial items	1.0	1.9	22.3
Profit/loss after financial items	0.3	-2.4	-1.0
Profit before tax	0.3	-12.7	-1.0
Taxes	-0.1	0.6	-1.7
Net/profit loss for the period	0.2	-12.1	-2.7

PARENT COMPANY INCOME STATEMENT, CONDENSED

PARENT COMPANY BALANCE SHEET, CONDENSED

		Actual 2012	Actual 2011	Actual
SEK M		31 Mar	31 Mar	2011 31 Dec
Assets
Financial assets		481	473	481
Current assets		11	64	2
Cash and cash equivalents/investments in securities, etc.		70	735	85
Total assets		562	1,272	568
Equity and liabilities
Equity
Restricted equity
Share capital		51	51	51
Statutory reserve		10	10	10
Non-restricted equity
Accumulated profit or loss		125	815	128
Net profit/loss for the period		0	-12	-3
Total equity		186	864	186
Provisions		10	8	10
Current liabilities		366	400	372
Total equity and liabilities		562	1,272	568
	31 Mar		31 Mar	31 Dec
Pledged assets	2012		2011	2011
Blocked account	20		20	20
Contingent liabilities
Guarantee commitment, FPG/PRI	0.2		0.2	0.1

DEFINITIONS

Returns are restated on a full-year basis in interim financial statements without consideration to seasonality.

Return on equity

Profit after tax for the period as a percentage of average equity.

Return on total capital

Profit before tax for the period plus interest expenses as a percentage of average total assets.

Loan to value ratio, properties

Interest-bearing liabilities in relation to the book value of properties.

Property yield

Annualized operating surplus as a percentage of the book value of properties at the end of the period.

Operating surplus per sq. m.

Annualized operating surplus divided by leasable area.

Equity per share

Equity at the end of the period in relation to the number of shares at the end of the period.

Economic occupancy rate

Rental revenue as a percentage of rental value.

Property expenses

Operating expenses, repair and maintenance expenses, site leasehold charges/ground rents, property tax and property administration.

Book value of properties

Book value of buildings, land, construction in progress and fixtures and fittings.

Rental revenue

Rents charged including supplements such as compensation for property tax etc.

Rental revenue per sq. m.

Annualized rental revenue divided by leasable area.

Rental value

Actual rental revenue and potential rental revenue for vacant premises estimated by Catena.

Management income per share after standard rate tax

Management income for the period less 28 % tax, divided by the average number of shares.

Cash flow from operating activities per share

Management income for the period divided by the number of shares outstanding at year-end.

Interest coverage ratio

Profit before tax plus financial expenses and plus/minus unrealized value changes divided by financial expenses.

Debt/equity ratio

Interest-bearing liabilities divided by equity.

Equity/assets ratio Reported equity as a percentage of total assets.

Leasable area

Total area available for letting.

Operating surplus margin

Operating surplus as a percentage of rental revenue.

Catena is publishing the information in this Interim Report in accordance with the Swedish Securities Markets Act (2007:528).

CATENA AB (publ)

Corp ID no.: 556294-1715 Västmannagatan 10 111 24 Stockholm Sweden Tel: +46 (0)8 410 99930 www.catenafastigheter.se

The figures stated in this Interim Report have been rounded, while computations have been performed without rounding. This implies that the totals in certain tables may not appear accurate.

N.B. This is a translation from Swedish. The Swedish version shall always take precedence.