Hufvudstaden

Quarterly Report • Nov 1, 2007

Interim Report January – September 2007

• Profit for the period after tax amounted to SEK 1,264 million (785), equivalent to SEK 6.13 per share (3.81).
• The gross profit from property management increased by 14 per cent to SEK 627 million (551). The improvement in profit can be attributed to higher rents, reduced vacant space and lower maintenance costs.
• Net sales for the Group for the period amounted to SEK 935 million (849), an increase of 10 per cent.
• The rental vacancy level at the period-end was 4.6 per cent (6.5 at the turn of the year).

________________________

CONSOLIDATED RESULTS

Property management¹

Gross profit for the year totalled SEK 626.7 million (550.8), an increase of 13.8 per cent. The increase can be explained by higher rents, lower rental losses on vacant space and lower maintenance costs. Net rents from property management during the period amounted to SEK 890.3 million (810.3).

The turnover-based rent supplement at the NK department stores is reported in the fourth quarter. The turnover-based rent supplement for the previous year was SEK 10.3 million. Apart from this there are no seasonal variations in rents.

The property management profit for each business area is reported on page 7.

Reported discontinued operations

After the sale in December 2006 of the World Trade Center in Stockholm, i.e. Vasaterminalen AB with the subsidiaries World Trade Center Stockholm AB and WTC Parkering AB, the operations at WTC were classified as discontinued operations. The completion date was February 1, 2007. This means that Profit from discontinued operations for the period January-September 2007 refers to an adjustment of the purchase sum and for the same period in 2006 to the result from WTC.

Other operations

Other operations include parking operations at Parkaden in Stockholm.

Net revenue amounted to SEK 44.4 million (38.3), expenses amounted to SEK 33.9 million (33.5) and gross profit amounted to SEK 10.5 million (4.8).

Other Income Statement items

Central administration totalled SEK -21.6 million (-20.4). Changes in the value of investment properties totalled SEK 1,208.4 million (539.5) and in interest derivatives SEK 13.1 million (0.0).

Financial income and expense

Net financial income and expense amounted to SEK -90.6 million (-104.2). The improved net financial income and expense can be attributed to interest income on the payment received from the sale of the World Trade Center.

Tax

The Group's tax (current and deferred) for the period totalled SEK -489.3 million (-277.9), of which SEK -106.8 million was current tax and SEK -382.5 million deferred tax.

Profit for the period

Profit for the period after tax was SEK 1,263.8 million (785.3).

¹ The acquired property Rännilen 15 is included with effect from June 1, 2007. The World Trade Center is reported as discontinued operations. Otherwise, the property holdings remain unchanged compared with the same period the previous year.

ACQUISITIONS AND INVESTMENTS

On May 14, 2007 an agreement was signed regarding the acquisition of the property Rännilen 15 at Norrmalmstorg in Stockholm. The purchase sum was SEK 312.5 million and the completion date was June 1, 2007. This means that Hufvudstaden now has all properties on the Rännilen block. Following a property adjustment, the property Rännilen 15 became part of Rännilen 19 in October 2007.

The total investments in properties and equipment during the period was SEK 434.2 million (143.8).

PROPERTY PORTFOLIO

The fair value of the Hufvudstaden property portfolio as of September 30, 2007 was set at SEK 19.0 billion (17.4 at the turn of the year). The increase can be attributed to unrealized changes in value, the acquisition of Rännilen 15 and investments in the property portfolio. The rentable floor space was 353,863 square metres (350,895 at the turn of the year). The total floor space vacancy level as of September 30 was 5.7 per cent (8.1 at the turn of the year) and the total rental vacancy level was 4.6 per cent (6.5 at the turn of the year).

Property value and net asset value

At the turn of each year Hufvudstaden makes an internal valuation of the fair value of each individual property. The assessment is made using a valuation according to the direct yield method as a basis. To assure the values, external valuations are obtained for part of the property holdings. The internal valuation of the properties is updated continuously during the year with purchases, sales and investments. Hufvudstaden also examines on a continuous basis if there are other indications of changes in the fair value of the properties. This could, for example, take the form of major lettings, terminations and material changes in the yield requirements. In the light of the above, the increase in value of the property holdings at mid-year was SEK 1.2 billion. The total value of the property holdings as of June 30, 2007 was SEK 19.0 billion, including investments. The increase can be explained mainly by an estimated lower direct yield requirement as a result of the continued high interest in commercial properties in central Stockholm and Gothenburg by both Swedish and international investors. The average direct yield requirement for the property holdings was, in conjunction with the above valuation, 4.5 per cent (4.8 at the turn of the year). Apart from investments totalling SEK 62.1 million, no major change in the value of the property holdings is considered to have taken place during the third quarter. Consequently, the fair value of the property holdings as of September 30, 2007 is estimated at SEK 19.0 billion.

Net asset value

Based on the valuation of the property holdings, the net asset value is SEK 13.7 billion or SEK 66 per share after tax. When calculating the net asset value, calculated deferred tax has been used. This was calculated at 10 per cent of the difference between the assessed fair value and the residual value of the properties for tax purposes and was assessed in the

light of current tax legislation, which means that properties can be sold by a limited company without tax implications. The purchaser, however, loses the basis for depreciation, which could justify some compensation, which has been set at 10 per cent. If the tax rate according to the Balance Sheet (28 per cent) is used in the calculation, the net asset value would have been SEK 10.7 billion or SEK 52 per share. If the tax rate is assumed to be 0 per cent, the net asset value would have been SEK 15.3 billion or SEK 74 per share.

RENTAL MARKET

Interest in high-quality office space in prime locations in sub-markets of central Stockholm increased during the period, mainly as a result of the positive economic growth in Sweden and the Stockholm region. Vacant space for this type of property has fallen and rents have risen. For office leases in Stockholm's most attractive locations within the Golden Triangle, at Norrmalmstorg/Hamngatan and in the Hötorg area, rents were noted of SEK 3,800-5,000 per square metre per year, excluding the property tax supplement. Interest in well-situated retail premises in the same sub-markets remained high. Rents for prime location retailing space are in the range SEK 12,000-16,000 per square metre per year, excluding the property tax supplement.

Demand for modern, flexible office premises in the central sub-markets of Gothenburg has also increased with a positive growth in rents as a result. However, as in Stockholm, the level of interest in properties of a low standard requiring modernization was weak. Market rents for modern, well-arranged, high-quality office premises in prime locations were between SEK 1,600 and SEK 2,200 per square metre per year, excluding the property tax supplement. For prime site retail premises the market rent was SEK 5,000-9,000 per square metre per year, excluding the property tax supplement.

The Group's current renegotiations in respect of both retailing and office premises have proceeded in line with our expectations. In total, approximately 30,800 square metres were renegotiated during the period to a value of approximately SEK 123 million. On average, these renegotiations have resulted in an increase in rent of approximately 5 per cent.

FINANCING STRUCTURE

Hufvudstaden's borrowing as at September 30, 2007 amounted to SEK 3,215.0 million (3,365.0 at the turn of the year). The average fixed interest period was 45 months (23 at the turn of the year), the average capital tie-up period was 45 months (33 at the turn of the year) and the average interest cost was 4.4 per cent (4.0 at the turn of the year). Net liabilities amounted to SEK 3,141.6 million (3,324.6 at the turn of the year).

The true value of interest swaps as of September 30 was SEK 53.4 million (17.5 at the turn of the year). The change in value of financial instruments from December 31, 2006 up to and including September 30, 2007 affected the Income Statement by SEK 13.1 million or SEK 9.5 million after tax and the hedge reserve in equity by SEK 16.4 million after tax. Interest swaps were previously reported as cash flow hedges, which meant that changes in value were reported against equity. With effect from the second quarter 2007, new interest swap agreements are reported either as cash flow hedges or as a change in value through profit and loss.

Capital tie-up structure, September 30, 2007

Maturity	Volume,	Share,
date	SEK m	%
2007	315.0	10
2008	600.0	19
2010	500.0	15
2011	950.0	30
2013	350.0	11
2017	500.0	15
Total	3,215.0	100

Fixed interest structure, September 30, 2007

			Average
Maturity	Volume,	Share,	APR,
date	SEK m	%	%
2007	415.0	13	4.0
2008	600.0	19	4.8
2010	500.0	15	4.1
2011	350.0	11	3.9
2012	250.0	8	4.8
2013	350.0	11	4.1
2017	750.0	23	4.8
Total	3,215.0	100	4.4

SHARES AND SHAREHOLDERS

Hufvudstaden, whose shares are listed on the Nordic Exchange in Stockholm, had approximately 19,350 shareholders at the period-end. The proportion of foreign ownership as at September 30 was 19.2 per cent of the total number of outstanding shares (20.1 at the turn of the year). The A-share price as at September 28, 2007 was SEK 69.50, equivalent to a market value of SEK 14.3 billion, calculated on the total number of outstanding shares.

The largest shareholder groups as at September 30, 2007

Shares,	Votes,
%	%
44.2	87.6
11.1	2.3
2.6	0.5
2.5	0.5
2.2	0.5
2.1	0.4
2.0	0.4
1.7	0.4
1.6	0.3
1.5	0.3
26.1	6.3
97.6	99.5
2.4	0.5
100.0	100.0

Shares bought back

The total number of shares held by Hufvudstaden as at September 30, 2007 was 5,006,000 A-shares, equivalent to 2.4 per cent of the total number of

issued shares. No buy-backs were made during the period or after the end of the reporting period. At the 2007 Annual General Meeting the Board was granted renewed authorization to acquire up to 10 per cent of all the issued shares and to assign company shares.

Buy-back of shares as at September 30, 2007, million shares

	Total	Held by	Other
	number	Hufvud	share
	of shares	staden	holders
As at Jan 1, 2007	211.3	5.0	206.3
Buy-back	-	-	-
As at Sep 30, 2007	211.3	5.0	206.3

THIRD QUARTER2

The gross profit on Property Management amounted to SEK 211.4 million (188.8). The increase can be explained by higher rents, lower rental losses for vacant premises and lower maintenance costs. The net rents amounted to SEK 308.9 million (268.2). Property management costs amounted to SEK 97.5 million (79.4). The rising costs can be explained by the increase in property tax as a result of the increased tax assessment values. The cost of property tax has largely been passed on to the tenants,

The gross profit for Other operations amounted to SEK 2.8 million (2.2). Net revenue amounted to SEK 14.1 million (12.8) and operating costs to SEK 11.3 million (10.6).

Changes in value in investment properties amounted to SEK 0.0 million (0.0) and in interest derivatives to SEK -4.0 million (0.0).

NEW BUSINESS AREA DIVISION

Following the sale of the World Trade Center, the number of business areas in the Group has been reduced to three: Stockholm City East, Stockholm City West and Gothenburg. The former business area NK, with the NK department stores in Stockholm and Gothenburg, is now part of the Stockholm City West business area.

MATERIAL RISKS AND UNCERTAINTY FACTORS

The Group is mainly exposed to financing, interest and credit risks and to changes in value of the property holdings. The Company has not identified any material risks and uncertainties other than those described in the Annual Report.

KEY TRANSACTIONS WITH RELATED PARTIES

No key transactions have taken place with related parties.

² The comparison figure refers to the third quarter of 2006. The property Rännilen 15 is included with effect from June 1, 2007. The World Trade Center is reported as discontinued operations. Otherwise the property portfolio remains unchanged compared with the same period the preceding year.

ACCOUNTING PRINCIPLES

This Interim Report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting. The accounting principles remain unchanged compared with the most recent annual report. The Transparency Directive has been implemented in Sweden since July 1, 2007.

FORTHCOMING INFORMATION

Year-End Report for 2007 February 14, 2008 Annual Report 2007 March 2008 Annual General Meeting in Stockholm 2008 March 27, 2008

This information is also published on Hufvudstaden's website, www.hufvudstaden.se

For further information, please contact Ivo Stopner, CEO, or Magnus Jacobson, CFO, telephone +46 (0)8 762 90 00.

In some cases there has been rounding off, which means that the tables and calculations do not always tally exactly.

CONSOLIDATED INCOME STATEMENTS - SUMMARY

	July September	July September	January September	January September	January December
GROUP, SEK m	2007	2006	2007	2006	2006
Net revenue
Property management	308.9	268.2	890.3	810.3	1,096.5
Other operations	14.1	12.8	44.4	38.3	56.0
	323.0	281.0	934.7	848.6	1,152.5
Operating expenses
Maintenance	-5.1	-9.9	-14.0	-42.5	-61.5
Operation and administration	-46.2	-42.0	-148.7	-135.0	-192.3
Ground rents	-4.0	-4.2	-12.1	-12.1	-16.1
Property tax	-42.2	-23.3	-88.8	-69.9	-92.5
Property management expenses	-97.5	-79.4	-263.6	-259.5	-362.4
Other operations	-11.3	-10.6	-33.9	-33.5	-45.0
Operating expenses	-108.8	-90.0	-297.5	-293.0	-407.4
Gross profit	214.2	191.0	637.2	555.6	745.1
- of which Property management	211.4	188.8	626.7	550.8	734.1
- of which Other operations	2.8	2.2	10.5	4.8	11.0
Central administration	-6.6	-6.6	-21.6	-20.4	-31.5
Operating profit before changes in value	207.6	184.4	615.6	535.2	713.6
Changes in value
Investment properties	-	-	1,208.4	539.5	2,647.5
Interest derivatives	-4.0	-	13.1	-	-
Operating profit	203.6	184.4	1,837.1	1,074.7	3,361.1
Financial income and expense	-35.7	-38.5	-90.6	-104.2	-140.3
Profit after financial income and expense	167.9	145.9	1,746.5	970.5	3,220.8
Tax	-47.7	-46.1	-489.3	-277.9	-903.9
Profit from continuing operations	120.2	99.8	1,257.2	692.6	2,316.9
Profit from discontinued operations, net after tax	-	21.5	6.6	92.7	1,106.3
Profit for the period	120.2	121.3	1,263.8	785.3	3,423.2
Average number of outstanding shares after buy
backs during the period	206,265,933	206,265,933	206,265,933	206,265,933	206,265,933
Profit per share for the period, SEK	0.58	0.59	6.13	3.81	16.60

CONSOLIDATED BALANCE SHEETS – SUMMARY

	September 30,	September 30,	December 31,
GROUP, SEK m	2007	2006	2006
Investment properties	19,048.1	16,985.2	17,408.8
Other fixed assets	15.5	54.9	14.7
Total fixed assets	19,063.6	17,040.1	17,423.5
Current assets	164.2	188.9	3,096.6
Total assets	19,227.8	17,229.0	20,520.1
Equity	10,672.8	9,138.7	11,785.3
Non-current, interest-bearing liabilities	2,300.0	2,600.0	2,400.0
Other liabilities	3.7	0.1	3.3
Pension provisions	6.2	5.8	6.0
Deferred tax liability	4,882.4	4,060.1	4,493.6
Total non-current liabilities	7,192.3	6,666.0	6,902.9
Other current, interest-bearing liabilities	915.0	1,005.0	965.0
Other liabilities	447.7	419.3	866.9
Total current liabilities	1,362.7	1,424.3	1,831.9
Total equity and liabilities	19,227.8	17,229.0	20,520.1

PLEDGED ASSETS AND CONTINGENT LIABILITIES

GROUP, SEK m	September 30, 2007	September 30, 2006	December 31, 2006
Pledged assets
Mortgages	1,556.4	1,621.3	1,621.3
Endowment insurance	4.1	3.8	3.9
Total pledged assets	1,560.5	1,625.1	1,625.2
Contingent liabilities	None	None	None

CHANGES IN EQUITY

GROUP, SEK m	January September 2007	January September 2006	January December 2006
Equity, opening balance	11,785.3	8,614.7	8,614.7
Changes in hedge reserve for the peiod	22.8	52.4	64.7
Tax attributable to hedge reserve	-6.4	-14.6	-18.1
Total changes in assets, reported
directly against equity, excluding dividends	16.4	37.8	46.6
Profit for the period	1,263.8	785.3	3,423.2
Total changes in assets	1,280.2	823.1	3,469.8
Dividend	-2,392.7	-299.1	-299.1
Equity, closing balance	10,672.8	9,138.7	11,785.3

CONSOLIDATED CASH FLOW STATEMENTS – SUMMARY

GROUP, SEK m	January September 2007	January September 2006	January December 2006
Profit after financial items	1,753.1	1,103.2	4,371.0
Change in value, investment properties	-1,208.4	-570.0	-2,678.0
Change in value, interest derivatives	-13.1	-	-
Depreciation/impairment	3.5	3.4	4.4
Capital gain, sale of fixed assets	-6.6	-	-986.2
Change, other provisions	-	-48.5	-46.8
Other changes	0.2	0.1	0.3
Tax paid	-63.5	-111.3	-113.9
Cash flow from current operations
before changes in working capital	465.2	376.9	550.8
Increase/decrease in operating receivables	-4.6	-3.3	-5.5
Increase/decrease in operating liabilities	-462.2	16.1	62.7
Cash flow from current operations	-1.6	389.7	608.0
Payment received from sale of subsidiary	3,011.7	-	-23.3
Investments in investment properties	-430.9	-139.2	-185.4
Investments in equipment	-3.3	-4.6	-8.0
Amortization, non-current receivables	-0.2	15.9	15.4
Cash flow from investments	2,577.3	-127.9	-201.3
Loan raised	360.0	260.0	260.0
Amortization of loan liability	-510.0	-180.0	-420.0
Dividend paid	-2,392.7	-299.1	-299.1
Cash flow from financing	-2,542.7	-219.1	-459.1
Cash flow for the period	33.0	42.7	-52.4
Liquid funds at the beginning of the period	40.4	92.8	92.8
Liquid funds at the period-end	73.4	135.5	40.4

PROPERTY MANAGEMENT – PROFIT PER BUSINESS AREA (COMPARABLE HOLDINGS)

	Stockholm City East Business Area		Stockholm City West Business Area		Gothenburg Business Area		Total
GROUP, SEK m	Jan Sep 2007	Jan Sep 2006	Jan Sep 2007	Jan Sep 2006	Jan Sep 2007	Jan Sep 2006	Jan Sep 2007	Jan Sep 2006
Net revenue	401.0	380.4	366.3	320.9	117.3	109.0	884.6	810.3
Property costs	-96.6	-97.9	-127.8	-131.7	-38.3	-29.9	-262.7	-259.5
Gross profit	304.4	282.5	238.5	189.2	79.0	79.1	621.9	550.8

KEY RATIOS

	Sep 30,	Sep 30,	Full year	Full year	Full year	Full year
GROUP	2007	2006	2006	2005	2004	2003
Property-related
Rentable floor space, sq m	353,863	408,132	350,895	407,694	407,375	437,994
Rental vacancy level, %	4.6	7.6	6.5	7.1	8.2	8.1
Floor space vacancy level, %	5.7	8.8	8.1	8.7	9.5	8.7
Fair value, SEK bn	19.0	17.0	17.4	16.3	15.0	15.1
Financial
Return on equity, %	12.4	10.2	33.6	15.9	9.8	7.7
Return on equity employed, %	13.8	10.9	23.9	16.5	9.7	7.4
Equity ratio, %	55.5	53.0	57.4	52.2	53.8	43.8
Interest coverage ratio, times	6.3	6.6	5.1	5.7	3.5	3.2
Loan to value ratio, properties, %	16.9	21.2	19.3	21.7	20.9	35.3
Data per share
Profit for the period, SEK	6.13	3.81	16.60	6.47	3.74	1.78
Equity, SEK	51.74	44.31	57.14	41.77	39.46	23.23
Properties, fair value, SEK	92.35	82.35	84.40	78.91	72.72	73.21
Net asset value, SEK	66.00	56.00	71.00	53.00	50.00	43.00
Number of outstanding shares, 1,000	206,266	206,266	206,266	206,266	206,266	206,266
Number of issued shares, 1,000	211,272	211,272	211,272	211,272	211,272	211,272

1 No recalculation according to IFRS has taken place for 2003, which would mainly affect the Income Statement items Depreciation and Changes in value and the Balance Sheet items Investment properties and Deferred taxes.

PARENT COMPANY

PROFIT AND FINANCIAL POSITION

Net revenue amounted to SEK 548.0 million (495.9). The profit for the period after net financial income and expense was SEK 185.4 million (106.8). The increase can be explained by reduced costs for vacant space and lower maintenance costs. The net financial income and expense has been improved as a result of interest income on the payment received from the WTC sale.

Liquid funds at the period-end amounted to SEK 73.2 million (135.3). Investments in property and equipment during the period amounted to SEK 335.9 million (41.1).

MATERIAL RISKS AND UNCERTAINTY FACTORS

The Company is mainly exposed to financing, interest and credit risks. The Company has not identified any material risks and uncertainties other than those described in the Annual Report.

KEY TRANSACTIONS WITH RELATED PARTIES

Apart from the dividend to the shareholders no key transactions have taken place with related parties.

ACCOUNTING PRINCIPLES

The Parent Company applies the same accounting principles as in the most recent annual report. The Transparency Directive has been implemented in Sweden since July 1, 2007.

INCOME STATEMENTS – SUMMARY

	July September	July September	January September	January September	January December
PARENT COMPANY, SEK m Net revenue	2007	2006	2007	2006	2006
Property management	191.7	164.3	548.0	495.9	666.0
	191.7	164.3	548.0	495.9	666.0
Operating expenses
Maintenance	-45.3	-33.9	-85.7	-111.9	-149.0
Operation and administration	-23.2	-20.1	-76.0	-68.2	-95.3
Ground rents	-2.0	-2.2	-6.0	-6.0	-8.0
Property tax	-28.2	-16.3	-61.0	-49.1	-64.8
Depreciation	-10.8	-9.5	-30.3	-27.9	-37.7
Operating expenses	-109.5	-82.0	-259.0	-263.1	-354.8
Gross profit	82.2	82.3	289.0	232.8	311.2
Central administration	-6.6	-6.6	-21.6	-20.4	-31.5
Operating profit	75.6	75.7	267.4	212.4	279.7
Financial income and expense	-33.7	-35.7	-88.6	-105.6	1,473.7
Capital gain, sale of subsidiary	-	-	6.6	-	-
Profit after financial income and expense	41.9	40.0	185.4	106.8	1,753.4
Appropriations	-	-	-	-	-124.0
Profit before tax	41.9	40.0	185.4	106.8	1,629.4
Tax	-12.9	-11.9	-53.1	-32.3	-7.0
Profit for the period	29.0	28.1	132.3	74.5	1,622.4

BALANCE SHEETS – SUMMARY

PARENT COMPANY, SEK m	September 30. 2007	September 30, 2006	December 31, 2006
Investment properties	5,952.7	5,644.2	5,649.5
Other fixed assets	2,837.6	4,339.2	2,837.2
Total fixed assets	8,790.3	9,983.4	8,486.7
Current assets	93.9	205.9	3,086.8
Total assets	8,884.2	10,189.3	11,573.5
Restricted equity	1,982.2	1,996.2	1,992.7
Non-restricted equity	1,401.9	1,896.6	3,651.8
Total equity	3,384.1	3,892.8	5,644.5
Untaxed reserves	560.6	436.6	560.6
Non-current liabilities	3,530.0	3,828.4	3,628.7
Current liabilities	1,409.5	2,031.5	1,739.7
Total liabilities	5,500.1	6,296.5	5,929.0
Total equity and liabilities	8,884.2	10,189.3	11,573.5

Stockholm, November 1, 2007

Ivo Stopner President

This interim report has not been the subject of an examination by the Company's auditor.

DEFINITIONS

Annual rent. Gross rent calculated on an annual basis, excluding the turnover-based rent supplement. Vacant premises are reported at the market rent.

Capital employed. Total assets reduced by non-interestbearing liabilities and deferred tax liabilities.

Central administration. Costs for Group management and Group staff functions, costs for maintaining the Company's stock exchange listing and other costs common to the Company.

Equity per share. Equity in relation to the number of outstanding shares at the period-end.

Equity ratio. Equity at the period-end in relation to total assets.

Fair value. The estimated market value of the properties, decided based on an evaluation according to the direct yield method.

Floor space vacancy level. Vacant floor space in square metres in relation to the total rentable floor space.

Golden Triangle. The central business district in Stockholm, between Stureplan, Norrmalmstorg and Nybroplan and bordered by Birger Jarlsgatan, Norrlandsgatan and Hamngatan.

Interest coverage ratio. Profit after financial income and expense excluding unrealized changes in value plus interest expense minus interest contributions in relation to the interest expense minus interest contributions.

Investments. Expenses related to value-enhancing improvements which entail future financial benefits are capitalized. Rebuilding costs of a maintenance nature are charged to profit.

Loan to value ratio, properties. Interest-bearing liabilities in relation to the properties' reported values.

Net liabilities. Interest-bearing liabilities less interestbearing assets.

Profit per share. Profit for the period in relation to the average number of outstanding shares during the period.

Property tax supplement. Property tax payments received from tenants.

Rental vacancy level. Vacant floor space at an estimated market rent in relation to the total annual rent.

Return on capital employed. Profit after appropriations and tax plus interest expense minus interest contributions in relation to the average capital employed. In the interim accounts the return has been recalculated on a full-year basis without consideration given to seasonal variations which normally arise in operations and with the exception of changes in value.

Return on equity. Profit after tax in relation to the average equity. In the interim accounts the return has been recalculated on a full-year basis without consideration given to seasonal variations which normally arise in operations and with the exception of changes in value.

Tax. Total tax for the Group comprises both actual tax and deferred tax.

Hufvudstaden AB (publ) NK 100, SE-111 77 Stockholm Visiting address: Regeringsgatan 38 Telephone: +46 8-762 90 00 Fax: +46 8-762 90 01 E-mail: info@hufvudstaden.se Website: www.hufvudstaden.se Company registration number: 556012-8240 Domicile: Stockholm