Revenue from Property Management amounted to MSEK 783 (791). The decrease is explained by a change in property tax accounting amounting to MSEK 30. For comparable units the decrease was 0.4 percent, adjusted for currency effects
Net operating income from Property Management amounted to MSEK 704 (664), MSEK 689 excl. the effects of IFRS 16. For comparable units the increase was 0.3 percent, adjusted for currency effects
Net operating income from Operator Activities amounted to MSEK 212 (167), MSEK 206 excl. the effects of IFRS 16. For comparable units the increase was 16.8 percent, adjusted for currency effects
Calendar effects are estimated to have had a negative effect on revenue growth of 2-3 percent for the comparable portfolio
EBITDA amounted to MSEK 868 (794), MSEK 847 excl. the effects of IFRS 16
Cash earnings amounted to MSEK 565 (537)
Cash earnings per share amounted to SEK 3.37 (3.19)
Profit for the period amounted to MSEK 760 (763)
Earnings per share amounted to SEK 4.53 (4.53)

▪ Pandox concluded the acquisition of three hotel properties in Germany on 1 July

Revenue from Property Management amounted to MSEK 1,468 (1,412). For comparable units the increase was 0.8 percent, adjusted for currency effects
Net operating income from Property Management amounted to MSEK 1,287 (1,192), MSEK 1,258 excluding the effects of IFRS 16. For comparable units the increase was 0.7 percent, adjusted for currency effects
Net operating income from Operator Activities amounted to MSEK 307 (233), MSEK 296 excluding the effects of IFRS 16. For comparable units the increase was 16.9 percent, adjusted for currency effects
EBITDA amounted to MSEK 1,502 (1,354), MSEK 1,462 excluding the effects of IFRS 16
Cash earnings amounted to MSEK 928 (873)
Cash earnings per share amounted to SEK 5.53 (5.18)
Profit for the period amounted to MSEK 1,167 (1,215)
Earnings per share amounted to SEK 6.96 (7.22)

Financial summary	Quarter 2		Jan-Jun			EY
Figures in MSEK	2019	2018	4%	2019	2018	4%	2018
Revenue Property Management	783	791	-1	1.468	1.412	4	2,971
Net operating income Property Management	704	664	6	1,287	1.192	8	2,517
Net operating income Operator Activities	212	167	27	307	233	32	540
EBITDA	868	794	ੇ	1,502	1.354	11	2.909
Profit for the period	760	763	0	1,167	1,215	-4	2,823
Earnings per share, SEK 1)	4.53	4.53	0	6.96	7.22	-4	16.83
Cash earnings	565	537	5	928	873	6	1,890
Cash earnings per share, SEK 1)	3.37	3.19	5	5.53	5.18	7	11.26
Key data
Market value properties, MSEK				57,618	53,064	9	55,197
Net interest-bearing debt, MSEK				28,248	26,844	5	27,421
Loan to value net, %				49.0	50.6	na.	49 7
Interest cover ratio, times	44	4.2	n.a.	3.8	3.7	n.a.	3.8
EPRA NAV per share, SEK 1)				173.83	153.97	13	164.04
WAULT (Investment Properties), years				15.5	15.3	na	15.7
RevPAR (Operator Activities) for comparable units at comparable exchange rates, SEK	1.034	926	12	890	805	11	865

For the second quarter of 2019 Pandox reported growth in total net operating income of 10 percent and growth in net asset value, measured on an annualised basis, of 16 percent. The growth drivers were once again add-on acquisitions, good development in Brussels and positive currency effects.

The benefits of a well-diversified portfolio were evident during the quarter with stronger markets more than compensating for weaker markets.

Total revenue and total net operating income for comparable units increased by 3.9 and 3.3 percent respectively, adjusted for currency effects, despite a negative calendar effect relating to the Easter dates of 2-3 percent.

In Property Management, rental income and net operating income increased for comparable units by 0.4 and 0.3 percent respectively, adjusted for currency effects. Similar to the first quarter of 2019, growth was limited by renovation effects in Pandox's portfolio. Moreover, challenging comparative figures in certain key markets had a negative effect.

The underlying demand remained positive in the second quarter, but increases in supply led to negative RevPAR growth, particularly in Copenhagen, Oslo and at London Heathrow.

For comparable units, Pandox's rental portfolio in the UK grew by just over 4 percent, adjusted for currency effects. Excluding London Heathrow, growth was just over 5 percent.

Operator Activities had good growth and stronger profitability. Revenue and net operating income for comparable units increased by 8.6 and 16.8 percent respectively, adjusted for currency effects. The main drivers were sustained strong development in Brussels and Berlin with good demand, productivity and profitability. But other hotels in Germany and Montreal also developed well.

The benefits of a larger and more diversified portfolio manifest themselves in a variety of ways. Demand fluctuations are balanced out more effectively and having a presence in more markets provides new business opportunities. Pandox's agreement to acquire three hotel properties in Erfurt, Augsburg and Dortmund during the quarter is a good example of this.

Through this acquisition, which was completed 1 July, Pandox added two new, growing cities with domestic demand in Germany to its portfolio. We also added an additional hotel property in Dortmund to Radisson Blu Dortmund, which we already owned and operated. We also gained a new tenant (HR Group) and another new brand (Dorint Hotels & Resorts). The purchase consideration amounted to MEUR 103 and the hotels' contribution to rental income and net operating income for 2019 is expected to be around MEUR 6.0 and MEUR 5.8 respectively, on an annualised basis. The initial yield is 5.7 percent.

After this acquisition Pandox now has a total of 29 hotels with around 6,300 rooms in Germany, Europe's biggest hotel market. During the quarter an agreement to divest the hotel building for Hotell Hasselbacken in Stockholm was also signed. The sales price was MSEK 480. The hotel's rental income in 2018 amounted to around MSEK 20.

Pandox is still of the opinion that, although the hotel market has growth potential, it is in a mature phase and growth is slowing. In some submarkets new hotel capacity will put pressure on RevPAR in the short and medium term.

Based on positive economic growth, Pandox's well-diversified portfolio with balanced demand as well as positive contributions from the acquisitions that Pandox made in 2018 and 2019, there is potential for growth during the current year.

The trend from the first quarter of 2019 of lower growth in both international arrivals and economic activity continued into the second quarter. Demand in the hotel market developed well, albeit at a slower growth rate. Lower activity in global trade and weaker indicators mainly from the manufacturing industry were factors in the lower rate.

The United Nations World Tourism Organization (UNWTO) reported 4 percent growth in international passenger traffic for Europe and globally for the first quarter of 2019, which is in line with the organisation's full-year forecast.

A calendar effect due to the dates of Easter is believed to have had a negative effect on market growth in Pandox's portfolio of around 2-3 percent in the second quarter.

RevPAR developed in a positive direction overall in the Nordic region, taking into account the negative calendar effect. RevPAR fell marginally in Sweden, while in Norway and Finland it increased by just over 1 and 3 percent respectively. In Denmark the hotel market was negatively affected by the inflow of new hotel supply and RevPAR fell by 8 percent during the quarter. The demand situation in the Nordics remained good overall, with growth of around 3 percent in Sweden, Norway and Denmark and close to 5 percent in Finland.

In Stockholm RevPAR fell by 2 percent, mainly explained by the negative Easter effect. The demand situation remained good. In Gothenburg RevPAR increased by just over 3 percent, while Malmö saw a decrease of 7 percent due to a weak May and newly added hotel supply.

Demand for hotel rooms increased by 6 percent during the quarter in Oslo where a good conference calendar provided a boost. An increased supply of hotel rooms – around 12 percent during the period – and a negative effect of the Easter dates resulted in a 4 percent reduction in RevPAR.

In Copenhagen the increase in the number of new hotel rooms was noticeable and both occupancy and average prices declined. Altogether RevPAR decreased by 10 percent during the quarter.

In Helsinki RevPAR increased by just under 3 percent, mainly driven by improved average prices.

Similar to several other European markets, Germany had a strong May due to more business days. This, combined with an already strong trade fair and conference calendar had a positive effect on results. RevPAR for Germany increased by just over 8 percent during the April–May period. Submarkets with especially good development were Munich, Frankfurt, Hannover and Berlin. Based on a lower level of activity in June, it is reasonable to expect weaker growth for the quarter as a whole.

The hotel market in the UK consists of two parts. One market is London and the other is the regional market (UK Regional) which has a high share of domestic demand where Pandox has its main exposure.

During the April–May period RevPAR decreased for UK Regional by just over 1 percent. Demand was stable at a growth rate of around 2 percent, while the supply increased at a slightly faster pace and overall this put pressure on RevPAR.

Hotel markets that were negatively affected by new hotel supply included Glasgow, Liverpool, Heathrow airport, Manchester and Belfast where RevPAR declined during the April–May period. These markets are, however, large destinations and attractive hotel markets with good underlying demand.

In London RevPAR increased marginally in the April–May period. The Irish hotel market, which is at a high level in absolute terms, declined somewhat during the quarter and RevPAR decreased by just under 2 percent April–May. In Dublin RevPAR decreased by around 4 percent, partly due to an increased supply of hotel rooms in the city.

The strong growth in Brussels continued and RevPAR increased by around 6 percent during the quarter. Although the business and conference segments have accounted for most of the growth up to now, demand in the leisure segment has been growing stronger over the past few quarters as well. The hotel market in Brussels also benefitted from a limited inflow of new hotel rooms, which contributed to improved occupancy and helped to increase average prices.

After a weaker start in Montreal, growth picked up in the second quarter and RevPAR increased by 15 percent during the April–May period.

14%15%

Berlin

Frankfurt

Montreal

Source: STR Global, Benchmarking Alliance. Rounded numbers. Average growth rates for the periods April and May 2019

Revenue from Property Management amounted to MSEK 783 (791).

A change in property tax accounting in the UK and Ireland reduced other property revenue by SEK 30 million in the second quarter, half of which relates to the first quarter. The change will result in a reduction of other property revenue of around MSEK 60, on an annualised basis, compared with 2018. The reason is that property tax is paid directly by the tenant. The change has no impact on earnings.

Adjusted for the accounting change, revenue increased by 3 percent compared to the corresponding period the previous year, explained by acquisitions, positive currency effects and some market growth.

For comparable units, revenue increased by 0.4 percent adjusted for currency effects, including a negative calendar effect relating to the Easter dates.

Revenue from Operator Activities amounted to MSEK 673 (565). This was an increase of 19 percent supported by consistent good growth for hotels in the portfolio, positive currency effects and acquisitions. Revenue and RevPAR for comparable units, adjusted for currency effects, increased by 8.6 and 11.7 percent respectively. The Group's net sales amounted to MSEK 1,456 (1,356). For comparable

units, net sales increased by 3.9 percent adjusted for currency effects. A calendar effect relating to the dates of the Easter holiday are

estimated to have had a negative effect of 2-3 percent for the comparable portfolio for the quarter.

Net operating income from Property Management amounted to MSEK 704 (664), an increase of 6 percent. Excluding effects from the introduction of IFRS 16, net operating income was MSEK 689. For comparable units, net operating income increased by 0.3 percent, adjusted for currency effects.

Net operating income from Operator Activities amounted to MSEK 212 (167), an increase of 27 percent. Excluding effects from the introduction of IFRS 16, net operating income was MSEK 210. For comparable units, net operating income increased by 16.8 percent, adjusted for currency effects.

Total net operating income amounted to MSEK 916 (831), an increase of 10 percent. Excluding effects from the introduction of IFRS 16, net operating income was MSEK 895.

Central administration costs amounted to MSEK -48 (-37). The increase is explained by a new incentive programme and cost related to the Company's growth, geographical expansion and increased complexity.

EBITDA amounted to MSEK 868 (794), an increase of 9 percent. Excluding effects from the introduction of IFRS 16, EBITDA was MSEK 847.

Financial expense amounted to MSEK -206 (-198), of which -13 (-8) consists of capitalised loan arrangement fees.

Financial expense for right-of-use assets relating to the introduction of IFRS 16 amounted to MSEK -21

Financial income amounted to MSEK 4 (0).

Profit before changes in value amounted to MSEK 598 (558), an increase of 7 percent.

Unrealised changes in value for Investment Properties amounted to MSEK 509 (297) and are explained by a combination of a lower valuation yield and higher cash flows in the comparable portfolio. Realised changes in value for Investment Properties amounted to MSEK 1 (13).

Unrealised changes in value of derivatives amounted to MSEK -133 (-24).

Current tax amounted to MSEK -75 (-60). Deferred tax amounted to MSEK -140 (-21).

Profit for the period amounted to MSEK 760 (763) and profit for the period attributable to the Parent Company's shareholders amounted to MSEK 759 (760), which is equivalent to SEK 4.53 (4.53) per share.

Cash earnings amounted to MSEK 565 (537), an increase of 5 percent.

Revenue from Property Management amounted to MSEK 1,468 (1,412). A change in property tax accounting in the UK and Ireland reduced

other property revenue by SEK 30 million for the period. The change will result in a reduction of other property revenue of around MSEK 60, on an annualised basis, compared with 2018. The reason is that property tax is paid directly by the tenant. The change has no impact on earnings. Adjusted for the accounting change, revenue increased by 6 percent

compared to the corresponding period the previous year, explained by acquisitions, positive currency effects and some market growth.

For comparable units, revenue increased by 0.8 percent adjusted for currency effects.

Revenue from Operator Activities amounted to MSEK 1,179 (996). This was an increase of 18 percent supported by good growth in Brussels and gradual improvements for other markets, positive currency effects and acquisitions. Adjusted for currency effects, revenue and RevPAR for comparable units increased by 8.1 and 10.6 percent respectively.

The Group's net sales amounted to MSEK 2,647 (2,408). For comparable units, net sales increased by 3.9 percent, adjusted for currency effects.

Net operating income from Property Management amounted to MSEK 1,287 (1,192), an increase of 8 percent. Excluding effects from the introduction of IFRS 16, net operating income was MSEK 1,258. For comparable units, net operating income increased by 0.7 percent, adjusted for currency effects.

Net operating income from Operator Activities amounted to MSEK 307 (233), an increase of 32 percent. Excluding effects from the introduction of IFRS 16, net operating income was MSEK 296. For comparable units, net operating income increased by 16.9 percent, adjusted for currency effects.

Total net operating income amounted to MSEK 1,594 (1,425), an increase of 12 percent. Excluding effects from the introduction of IFRS 16, net operating income was MSEK 1,554.

Central administration costs amounted to MSEK -91 (-71). The increase is explained by a new incentive programme and cost related to the Company's growth, geographical expansion and increased complexity.

EBITDA amounted to MSEK 1,502 (1,354), an increase of 11 percent. Excluding effects from the introduction of IFRS 16, EBITDA was MSEK 1,462.

Financial expense amounted to MSEK -413 (-385), of which -27 (-15) consists of capitalised loan arrangement fees.

Financial expense associated with right-of-use assets relating to the introduction of IFRS 16 amounted to MSEK -40

Financial income amounted to MSEK 6 (1).

Profit before changes in value amounted to MSEK 962 (893), an increase of 8 percent.

Unrealised changes in value for Investment Properties amounted to MSEK 640 (445) and are explained by a combination of a lower valuation yield and higher cash flows in the comparable portfolio. Realised changes in value for Investment Properties amounted to

MSEK 1 (27). Unrealised changes in value of derivatives amounted to MSEK -272 (59).

Current tax amounted to MSEK -121 (-97). Deferred tax amounted to MSEK -43 (-112).

Profit for the period amounted to MSEK 1,167 (1,215) and profit for the period attributable to the Parent Company's shareholders amounted to MSEK 1,166 (1,210) which is equivalent to SEK 6.96 (7.22) per share.

Total cash earnings amounted to MSEK 928 (873), an increase of 6 percent.

	Quarter 2		Jan-Jun		FY
Figures in MSEK	2019	2018	2019	2018	2018
Rental income	772	739	1.413	1.339	2.809
Other property income	11	52	55	73	162
Costs, excluding prop
admin	-46	-105	-121	-173	-338
Net operating income,
before property admin	737	686	1.347	1,239	2.633
Property administration	-33	-22	-60	-47	-116
Gross profit	704	664	1,287	1,192	2,517
Net operating income,
atter property admin	704	664	1,287	1.192	2,517

Rental income and other property revenue amounted to MSEK 783 (791).

Adjusted for the change in property tax accounting in the UK and Ireland (see "Financial development April–June" on page 4), revenues increased by 3 percent compared to the corresponding period the previous year, explained by acquisitions, positive currency effects and some market growth.

Net operating income amounted to MSEK 704 (664), an increase of 6 percent. Excluding effects from the introduction of IFRS 16, net operating income was MSEK 689.

For comparable units, rental income and net operating income increased by 0.4 and 0.3 percent respectively, adjusted for currency effects - despite a negative calendar effect relating to the Easter dates.

Growth in the comparable portfolio was positive in the UK, Norway, Germany and Austria and negative in Denmark, Finland and Ireland.

Individual cities with particularly good rental income growth were Wolfsburg, Cologne, Belfast, Brussels, Bergen, Jönköping, Luleå, Sheffield and Brighton.

In the UK, growth in the comparable portfolio amounted to around 4 percent. In Stockholm rental income fell by close to 4 percent during the quarter. In Copenhagen the decrease was just over 5 percent.

Revenue was negatively affected by around 1,000 hotel rooms (net) undergoing various types of renovations during the quarter, including Park Hotel Amsterdam, Radisson Blu Basel, Jurys Inn Croydon, Scandic Kolding, Scandic Rosendahl and Vildmarkshotellet Kolmården.

	Quarter 2		Jan-Jun	EY
Figures in MSEK	2019	2018	2019	2018	2018
Revenues	673	565	1.179	996	2.153
Costs	-508	-436	-966	-840	-1.776
Gross profit	165	129	213	156	377
Add: Depreciation
included in costs	47	38	94	77	163
Net operating income	212	167	307	233	540

Revenue from Operator Activities amounted to MSEK 673 (565), an increase of 19 percent supported by good development in Brussels and Berlin, as well as improvements in other markets. Acquisitions and positive currency effects also contributed to the earnings increase.

Net operating income amounted to MSEK 212 (167), an increase of 27 percent supported by good growth and profitability as well as

contributions from the acquisition of Radisson Blu Glasgow. Excluding effects from the introduction of IFRS 16, net operating income was MSEK 206.

The operating margin was 31.5 percent (29.6), which reflects a beneficial business mix and high productivity.

Adjusted for currency effects, revenue and net operating income for comparable units increased by 8.6 and 16.8 percent respectively.

For comparable units, RevPAR increased by 11.7 percent, adjusted for currency effects.

Other

21%

43%

23%

11% 2%

Property portfolio

Figures in brackets are from the corresponding period the previous year for profit/loss items and year-end 2018 for balance sheet items, unless otherwise stated IFRS 16 is applied from 1 January 2019.

Change in property value

At the end of the period, Pandox's property portfolio had a total market value of MSEK 57,618 (55,197), of which Investment Properties accounted for MSEK 49,026 (47,139) and Operating Properties for MSEK 8,592 (8,058). As of the same date the carrying amount of the Operating Properties portfolio was MSEK 5,994 (5,809). At the end of the period, Investment Properties had a weighted average unexpired lease term (WAULT) of 15.5 years (15.7).

During the quarter agreements were signed for the acquisition of three hotel properties in Germany for MEUR 103 and divestment of the hotel building for Hotell Hasselbacken in Stockholm for MSEK 480. Pandox took over the hotel properties in Germany on 1 July 2019 and expects to transfer Hotell Hasselbacken on 2 September 2019.

Change in value Investment Properties

	Figures in MSEK
Investment Properties, opening balance (January 1, 2019)	47,139
+ Acquisitions 2)	-65
+ Investments in current portfolio	225
- Divestments
+/- Reclassifications
+/- Revaluation of fixed assets to total comprehensive income for the period
+/- Unrealised changes in value	640
+/- Realised changes in value
+/- Change in currency exchange rates	1.087
Investment Properties, closing balance (June 30, 2019) 3)	49,026

Change in value Operating Properties, reported for information purposes only

	Figures in MSEK
Operating Properties, market value (January 1, 2019)	8,058
+ Acquisitions 1)	-25
+ Investments in current portfolio	89
- Divestments
+/- Reclassifications
+/- Unrealised changes in value	181
+/- Realised changes in value
+/- Change in currency exchange rates	289
Operating Properties, market value (June 30, 2019)	8.592

1) Refers to adjustment Radisson Blu Glasgow (MSEK 4), Hilton Grand Place (MSEK 7) and Hilton Garden Inn (MSEK -36) ?) Refers to adjustment the Midland Manchester (MSEK 8) and the Jurys Inn portfolio (MSEK -73) 3) Corresponding to value of Investment properties and Assets held for sale in the balance sheet

Investments

During the January-June 2019 period investments in the existing portfolio, excluding acquisitions, amounted to MSEK 318 (293), of which MSEK 225 (162) was for Investment Properties, MSEK 89 (131) was for Operating Properties. MSEK 4 (1) related to the head office.

At the end of the period investments had been approved for future projects in an amount equivalent to around MSEK 1,270, of which the larger projects are Crowne Plaza Brussels, Hilton Brussels City, DoubleTree by Hilton Montreal, Scandic Lulea, Hotel Berlin, The Midland Manchester, Airport Bonus Inn Vantaa, Hilton Garden Inn London Heathrow Airport, NH Brussels Bloom, Clarion Arcticus Harstad, as well as the joint investment programme with Scandic Hotels Group for 19 hotel properties in the Nordic region.

Financial effects of changes in certain key valuation parameters as of June 30, 2019

Investment properties, effect on fair value	Change	Effect on value
Yield	+/- 0.5pp	-4.081 / +4.897
Change in currency exchange rates	+/-1%	+/-339
Net operating income	+/-1%	+/-470
Investment properties, effect on revenues	Change	Effect on revenues
RevPAR (assuming 50/50 split between occupancy and rate)	+/-1%	+1-74
Operating properties, effect on revenues	Change	Effect on revenues
RevPAR (assuming 50/50 split between occupancy and rate)	+/-1%	+/-20
Financial sensitivity analysis, effect on earnings	Change	Profit before changes in value
Interest expenses with current fixed interest hedging, change in interest rates	+/-1%	-/ + 111
Interest expenses with a change in the average interest ratelevel	+/-1%	-/ + 287
Remeasurement of interest-rate derivatives following shift in yield-curves	+/-1%	-/ + 749

Average valuation yield, % (30 June 2019)

Property valuation

Pandox performs internal valuations of its hotel property portfolio. Investment properties are recognised at fair value in accordance with accounting standard IAS 40. Operating properties are recognised at cost less accumulated depreciation and any accumulated impairment losses. For Operating Properties internal valuations are reported for information purposes only which are included in EPRA NAV.

The valuation model consists of an accepted and proven cash flow model, where the future cash flows the hotel properties are expected to generate are discounted. The valuation is based on the business plan for the hotel concerned, which is updated at least twice a year and takes into consideration, among other things, developments in the underlying operator activities, market developments, the contract situation, operating and maintenance issues and investments aimed at maximizing the hotel property's cash flow and return in the long-term.

External valuations of all properties are carried out annually by independent property appraisers. The external appraisers complete a more in-depth inspection at least every three years or in conjunction with major changes to the properties. The external valuations provide an important reference point for Pandox's internal valuations.

Following a change of external independent property appraisers for certain properties in the portfolio during the second half of 2018, the valuation methods have changed for these properties, whereby both cash-flow and yield assumptions have mainly been adjusted downwards.

In the second quarter Pandox had external valuations performed on approximately 20 percent of the properties in its portfolio. The external valuation results are in line with and confirm Pandox's internal valuations.

For an overview of the property portfolio by segment, geography and brand, please see page 19.

At the end of the period the loan-to-value net was 49.0 (49.7) percent. Equity attributable to the Parent Company's shareholders amounted to MSEK 22,248 (21,378). EPRA NAV amounted to SEK 29,117 (27,476), equivalent to SEK 173.83 (164.04) per share. Liquid funds plus unutilised credit facilities amounted to MSEK 3,532 (2,500).

At the end of the period the loan portfolio amounted to MSEK 28,698 (28,095), excluding loan arrangement fees. Unutilised credit facilities amounted to MSEK 3,082 (1,826).

At the end of the period the volume issued under the previously established commercial paper programme amounted to MSEK 1,600 (1,250) in various tenors ranging from 3 to 12 months. The purpose of the programme is to reduce financing costs and also to diversify the financing structure. The issued commercial papers are backed in full by existing unutilised credit facilities.

During the quarter Pandox refinanced Hotel Berlin, Berlin with a loan of MEUR 90 maturing in seven years. The average fixed rate period was 2.7 (3.0) years and the average interest rate, corresponding to the interest

rate level at the end of the period, was 2.6 (2.6) percent, including effects from interest-rate derivatives, but excluding accrued arrangement fees. The average repayment period was 2.7 (3.1) years. The loans are secured by a combination of mortgage collateral and pledged shares.

Year due (MSEK)	Credit facilities 1)
2019	6.164
2020	5,612
2021	3,758
2022	2.504
2023	11,507
2024 and later	2,235
Total	31,780

To reduce the currency exposure in foreign investment Pandox's aim is to finance the applicable portion of the investment in local currency. Equity is normally not hedged as Pandox's strategy is to have a long investment perspective. Currency exposures are largely in form of currency translation effects.

			SEK DKK EUR CHF CAD NOK				GBP	Total
Sum credit facilities 1)	10.043	1,870	12.002	477	551	1.362	5.475	31.780
Sum interest bearing debt, MSEK 1)	6.982	1,870	12.002	477	530	1.362	5.475	28.698
Share of debt in currency, %	24.3	6.5	41.8		1.8	47	19 1	100
Average interest rate, % 2)	2.8	2.2	23	0.8	3.0	29	3.2	26
Average interest rate period, years	24	1.3	24	0.2	0.1	2.2	4.3	2.7
Market value Properties 1)							15,151 3,707 23,035 713 1,407 3,481 10,124 57,618

In order to manage interest rate risk and increase the predictability of Pandox's earnings, interest rate derivatives are used, mainly in the form of interest swaps. At the end of the period interest derivatives amounted to a gross amount of MSEK 22,350 and a net amount of MSEK 17,261, which is also the portion of Pandox's loan portfolio for which interest rates are hedged. Around 52 percent of Pandox's loan portfolio was thereby hedged against interest rate movements for periods of more than one year.

	Total interest maturity		Interest maturity derivatives
Tenor (MSEK)	Amount 1)	Share, %	Volume	Share, %	Average interest rate, % 1)
< 1 year	13,891	48	2.455	14	2.2
1–2 year	1.715	6	1.715	10	1.2
2-3 year	3.719	13	3.719	22	1.5
3-4 year	5.709	20	5.709	33	1.2
4-5 year	-2.545	-9	-2.545	-15	0.7
> 5 year	6.208	22	6.208	36	1.2
Sim	78698	100	17 261	100	1 5

The market value of the derivatives portfolio is measured on each closing date, with the change in value recognised in profit or loss. Upon maturing, the market value of a derivative contract is dissolved entirely and the change in value over time thus does not affect equity.

At the end of the period, the net market value of Pandox's financial derivatives amounted to MSEK -810 (-538).

At the end of the period deferred tax assets amounted to MSEK 540 (465). These represent mainly the book value of tax loss carry forwards which the Company expects to be able to use in upcoming fiscal years, and temporary measurement differences for interest rate derivatives.

Deferred tax liabilities amounted to MSEK 3,633 (3,430) and relate mainly to temporary differences between fair value and the taxable value of Investment Properties, as well as temporary differences between the book value and the taxable value of Operating Properties.

19 June 2019	Pandox enters into agreement to divest hotel building in Stockholm
18 June 2019	Pandox enters into agreement to acquire three hotel properties in Germany
10 May 2019	Pandox CEO Anders Nissen acquires synthetic options from Pandox's main owners
9 May 2019	Pandox adjusts dividend policy
26 April 2019	Interim report January-March 2019
10 April 2019	Press release on the 2019 Annual General Meeting

To read the full press releases, see www.pandox.se.

1 July 2019 Pandox completes acquisition of three hotel properties in Germany

At the end of the period, Pandox had the equivalent of 1,308 (1,120) fulltime employees. Of the total number of employees, 1,269 (1,082) are employed in the Operator Activities segment and 39 (38) in the Property Management segment and in central administration.

Administration for activities within Pandox's property owning companies is provided by staff employed by the Parent Company, Pandox AB (publ). Pandox's subsidiaries are invoiced for these services. Amounts invoiced during the January-June 2019 period totalled MSEK 66 (43), and profit for the period amounted to MSEK 1,694 (756).

At the end of the period the Parent Company's equity amounted to MSEK 5,458 (4,553) and the interest-bearing debt was MSEK 7,117 (7,098), of which MSEK 3,360 (4,305) was in the form of long-term debt.

The Parent Company carries out transactions with subsidiaries in the Group. Such transactions mainly entail allocation of centrally incurred administration cost and interest relating to receivables and liabilities. All related party transactions are entered into on market terms.

Eiendomsspar AS owns 5.1 percent of 21 hotel properties in Germany and 9.9 percent of another hotel property in Germany, which were acquired by Pandox in 2015 and 2016.

Pandox has asset management agreements regarding nine hotels located in Oslo as well as for the Pelican Bay Lucaya Resort in the Grand Bahama Island, which are owned by Eiendomsspar AS or subsidiaries of Eiendomsspar AS and affiliates of Helene Sundt AS and CGS Holding AS respectively. During the second quarter revenue from the nine asset management agreements amounted to MSEK 1.0 (1.3), and revenue from Pelican Bay Lucaya amounted to MSEK 0.1 (0.4).

Pandox applies the European Securities and Market Authority's (ESMA) guidelines for Alternative Performance Measurements. The guidelines aim at making alternative Performance Measurements in financial reports more understandable, trustworthy and comparable and thereby enhance their usability.

According to these guidelines, an Alternative Performance Measurement is a financial key ratio of past or future earnings development, financial position, financial result or cash flows which are not defined or mentioned in current legislation for financial reporting; IFRS and the Swedish Annual Accounts Act. Reconciliations of Alternative Performance Measurements are available on pages 16-17.

At the end of the period, the total number of shares before and after dilution amounted to 75,000,000 A shares and 92,499,999 B shares. For the second quarter 2019 the weighted number of shares before and after dilution amounted to 75,000,000 A shares and 92,499,999 B shares.

Pandox seeks to achieve the lowest possible financing cost while simultaneously limiting the Company's interest rate, currency and liquidity risks. Pandox's approach is that increased financing cost resulting from moderate changes in interest rates is often compensated for by higher operating income due to increased economic activity. Also, Pandox has a loan portfolio with staggered maturities and fixed interest periods where the Company enters into interest rate swaps to hedge interest rate levels for a certain portion of the debt portfolio.

A significant amount of Pandox's operations are in countries outside Sweden and the Company is therefore exposed to exchange rate fluctuations. Pandox reduces currency exposure in foreign investments primarily by taking out loans in local currencies. In general, foreign operations report both income and costs in the local currency, which limits currency exposure in current flows.

Pandox aims to have a diversified loan portfolio in terms of the number of lenders, concentration and maturities in order to manage liquidity risk.

Pandox's financial risks and risk management are described on pages 136–140 of the 2018 Annual Report.

Pandox defines risk as a factor of uncertainty that may affect the Company's ability to fulfil its objectives. It is therefore of utmost importance that Pandox is able to identify and assess these factors of uncertainty.

Pandox's strategy is to invest in hotel properties with revenue-based leases with the best hotel operators, and also to be able to operate hotels itself when necessary. Based on this strategy, Pandox has classified risk in five categories: strategy risk, operational risk, financial risk, external risk and sustainability risk.

Pandox's risk management work is described on pages 94–98 in the section "Risk and risk management" in the 2018 Annual Report.

There has been no significant change to Pandox's risk assessment after the publication of the 2018 Annual Report.

The hotel industry is seasonal in nature. The periods during which the Company's properties experience higher revenues vary from property to property, depending principally upon location and the customer base served. Since most of the customers that stay at Pandox owned or operated hotels are business travellers, the Company's total revenues have historically been greater particularly in the second quarter. The timing of holidays and major events can also impact the Company's quarterly results.

This report contains forward-looking statements. Such statements are subject to risks and uncertainties. Actual developments may differ materially from the expectations expressed, due to various factors, many of which are beyond the control of Pandox

The report has been translated from Swedish. The Swedish text shall govern for all purposes and prevail in the event of any discrepancy.

Pandox will present the interim report for institutional investors, analysts and media via a webcasted telephone conference, 12 July at 08:30 CEST.

To follow the presentation online go to

https://edge.media-server.com/m6/p/cm3fbns9. To participate in the conference call and ask questions, please call one of the telephone numbers indicated below about 10 minutes before the start of the presentation. The presentation material will be available at www.pandox.se at approximately 08:00 CEST.

Standard International: +44 (0) 2071 928000 SE LocalCall: +46 (0) 850 692 180 SE Tollfree: 0200125581 UK LocalCall: +44 (0) 8445 718892 UK Tollfree: 08003767922 US LocalCall: + 1 631-510-7495 Conference ID: 6088424

A recorded version of the presentation will be available at www.pandox.se.

For further information, please contact:

Anders Nissen, CEO +46 (o) 708 46 02 02

Liia Nõu, CFO +46 (0) 702 37 44 04

Anders Berg, Head of Communications and IR +46 (0) 760 95 19 40

This information is information that Pandox AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above 12 July 2019, 07:00 CEST.

Interim report Q2 2019	12 July 2019
Interim report Q3 2019	24 October 2019
Year-end report 2019	12 February 2020

More information about Pandox is available at www.pandox.se.

The Board of Directors and the CEO confirms that this report provides a fair overview of the Company's business, position and results and describes the significant risks and uncertainties facing the Company and its subsidiaries.

Stockholm, 12 July 2019

Christian Ringnes Chairman

Bengt Kjell Board member

Leiv Askvig Board member Jon Rasmus Aurdal Board member

Ann-Sofi Danielsson Board member

Jeanette Dyhre Kvisvik Board member

Anders Nissen CEO

This report has not been examined by the Company's auditor.

Summary of financial reports

Condensed consolidated statement of comprehensive

income	Quarter 2		Jan-Jun	EY
Figures in MSEK	Note	2019	2018	2019	2018	2018
Revenues Property Management
Rental income	3	772	739	1,413	1,339	2,809
Other property income		11	52	55	73	162
Revenue Operator Activities	3	673	565	1,179	વેવે છ	2,153
Total revenues		1,456	1,356	2,647	2,408	5,124
Costs Property Management	3	-79	-127	-181	-220	-454
Costs Operator Activities	3	-508	-436	-966	-840	-1,776
Gross profit		869	793	1,500	1,348	2,894
- whereof gross profit Property Management	3	704	664	1,287	1,192	2,517
- whereof gross profit Operator Activities	3	165	129	213	156	377
Central administration		-48	-37	-91	-71	-J48
Financial income		4	0	6	1	1
Financial expenses		-206	-198	-413	-385	-804
Financial cost right of use assets	2	-21		-40
Profit before changes in value		598	558	962	893	1,943
Changes in value
Properties, unrealised	3	509	297	640	445	1,428
Properties, realised	3	1	ਹੈ ਤੋ	1	27	67
Derivatives, unrealised		-133	-24	-272	59	25
Profit before tax		975	844	1,331	1,424	3,463
Current tax		-75	-60	-121	-97	-216
Deferred tax		-140	-21	-43	-112	-424
Profit for the period		760	763	1,167	1,215	2,823

Other comprehensive income
Items that may not be classified to profit or loss
This year's revaluation of fixed assets 1)					117	117
Tax attributable to items that may not be classified to profit or loss					-35	-35
					82	82
Items that may be classified to profit or loss
Net investment hedge of foreign operations		-216	4	179	192	67
Translation differences realisation of foreign operations		351	130	316	588	316
		135	134	495	780	383
Other comprehensive income for the period		135	134	495	862	465
Total comprehensive income for the period		895	897	1,662	2,077	3,288

Profit for the period attributable to the shareholders of the parent company		759	760	1,166	1,210	2,820
Profit for the period attributable to non-controlling interests		1	3	1	5	3
Total comprehensive income for the period attributable to the shareholders of the parent company		892	892	1,657	2,062	3,278
Total comprehensive income for the period attributable to non-controlling		3	5	5	15	10
interests Earnings per share, before and after dilution. SEK		453	4.53	6.96	7.22	16.83

1) Change of fair value due to reclassification of hotel properties from Operator Activities to Property Management.

Condensed consolidated statement of financial position		2019	2018	2018
Figures in MSEK	Note	30 Jun	30 Jun	31 Dec
ASSETS
Non-current assets
Operating properties		5,492	4,920	5,326
Equipment and interiors		505	411	484
Investment properties		48,546	45,458	47,139
Right-of-use assets	2	2,784
Deferred tax assets		540	561	465
Derivatives 1)		41	ਹੈ ਦੇ	12
Other non-current receivables		34	21	ਤੇ ਹ
Total non-current assets		57,942	51,386	53,457
Current assets
Inventories		11	10	10
Current tax assets		50	41	29
Trade account receivables		352	204	326
Prepaid expenses and accrued income		229	269	305
Other current receivables		90	285	215
Cash and cash equivalents		450	678	674
Assets held for sale	4	480	1,733
Total current assets		1,642	3,220	1,559
Total assets		59,584	54,606	55,016

EQUITY AND LIABILITIES
Equity
Share capital		419	419	419
Other paid-in capital		4,556	4,556	4,556
Reserves		706	609	215
Retained earnings, including profit for the period		16,567	14,587	16,188
Equity attributable to the owners of the Parent Company		22,248	20,171	21,378
Non-controlling interests		165	176	160
Sum equity		22,413	20,347	21,538
LIABILITIES
Non-current liabilities
Interest-bearing liabilities 2)3)		19,421	25,737	19,469
Other non-current liabilities		18	180	18
Long-term lease liability	2	2,765
Derivatives 1)		851	518	550
Provisions		119	117	100
Deferred tax liability		3,633	3,237	3,430
Total non-current liabilities		26,807	29,789	23,567

Current liabilities
Provisions		0	27	1
Interest-bearing liabilities 2)3)		9,120	1,714	8,448
Short-term lease liability	2	19
Tax liabilities		169	139	109
Trade accounts payable		260	226	286
Other current liabilities		182	477	411
Accrued expenses and prepaid income	4	614	440	656
Debt related to assets held for sale		0	1,447
Total current liabilities		10,364	4,470	9,911
Total liabilities		37,171	34,259	33,478
Total equity and liabilities		59,584	54,606	55,016

17The fair value measurement belongs to level 2 in the fair value hierachy in IFRS, i.e., it is based on inputs that are cly or indirectly or indirectly or indirectly or ind

? The carrying amounts of interest-bearing liabilities and other financial instruments constitute a reasonable approximation of their fair values.

3) Arrangement fees of approximately MSEK 157 (71) have reduced interest-bearing liabilities for Q2.

Condensed consolidated statement of changes in equity

	Attributable to the owners of the parent company
		Other			Retained earnings,		Non-
	Share	paid in	Translation	Revaluation	incl profit for the		controlling
Figures in MSEK	capital	capital	reserves	reserve 3)	period	Total	interests	Total equity
Opening balance equity January 1, 2018	419	4.557	-330	87	14,112	18,845	182	19,027
Profit for the period Q1-2					1,210	1,210	5	1,215
Other comprehensive income Q1-2			770	82		852	10	862
New share issue 1)		-1				-1		i
Transactions regarding non-controlling interest2)					2		-21	-19
Dividend April 2018					-737	-737		-737
Closing balance equity June 30, 2018	419	4,556	440	169	14,587	20,171	176	20,347
Profit for the period Q3-4 2018					1,610	1,610	-2	1,608
Other comprehensive income Q3-4 2018			-394			-394	-3	-397
Transactions regarding non-controlling interest2)					-9	-9	-11	-20
Closing balance equity December 31, 2018	419	4,556	46	169	16,188	21,378	160	21,538

Opening balance equity January 1, 2019	419	4,556	46	169	16,188	21,378	160	21,538
Profit for the period Q1-2					1,166	1.166	1	1,167
Other comprehensive income Q1-2			491			491	4	495
Dividend					-787	-787		-787
Closing balance equity June 30, 2019	419	4.556	537	169	16.567	22.248	165	22,413

1) New share issue amount represents transaction costs of MSEK 1, 2018.

2) Acquisition of non-controlling interest regarding Austria and Germany and guaranteed minority dividend.

3) Change of fair value due to reclassification of hotel properties from Operator Activities to Property Management.

Condensed consolidated statement of cash flow

Condensed consolidated statement of cash flow	Quarter 2		lan-Jun		EY
Figures in MSEK	2019	2018	2019	2018	2018
OPERATING ACTIVITIES
Profit before tax	975	844	1,331	1,424	3,463
Reversal of depreciation	46	38	97	77	163
Changes in value, Investment properties, realised		-13		-27	-66
Changes in value, Investment properties, unrealised	-509	-297	-640	-445	-1,429
Changes in value, derivatives, unrealised	133	24	272	-59	-24
Other items not included in the cash flow	-12	-10	-14	22	46
Taxes paid	-43	-19	-86	-41	-178
Cash flow from operating activities before changes in working capital	590	567	955	ਰੇਂ 1	1,975
Increase/decrease in operating assets	-34	-274	222	-275	-243
Increase/decrease in operating liabilities	-272	178	-154	169	-22
Change in working capital	-306	-96	68	-106	-265
Cash flow from operating activities	284	471	1,023	845	1,710
INVESTING ACTIVITIES
Acqusition of non-controlling interest		-28		-28	-29
Investments in properties and fixed assets	-175	-122	-318	-293	-720
Divestment of hotel properties, net effect on liquidity					286
Acquisitions of hotel properties, net effect on liquidity	-8	-3	-24	-6	-1,725
Acquisitions of financial assets	0		-1		-11
Divestment of financial assets		- J		4	ி
Cash flow from investing activities	-183	-154	-343	-323	-2,190
FINANCING ACTIVITIES
Transaction cost				-1	- J
New loans	2,987	1,540	4,885	1,540	7,164
Amortisation of debt	-2,764	-1,149	-4,980	-1,645	-6,258
Guaranteed minority dividend Paid dividends	-787	-737	-787		-10
				-737	-737
Cash flow from financing	-564	-346	-882	-843	158
Cash flow for the period	-463	-29	-202	-321	-322
Cash and cash equivalents at beginning of period	923	708	6/4	ggg	ਰੇਰੇ ਹੋਰ
Exchange differences in cash and cash equivalents	-10	-1	-22	0	-3
Liquid funds end of period	450	678	450	678	674
Information regarding interest payments
Interest received amounted to	0	0	0	1	।
Interest paid amounted to	-191	-226	-383	-371	-723
Information regarding cash and cash equivalents end of period	450	678	450	678	674
Cash and cash equivalents consist of bank deposits.

Condensed income statement for the parent

company	Quarter 2			lan-Jun
Figures in MSEK	2019	2018	2019	2018	2018
Net sales	39	31	66	43	106
Administration cost	-59	-47	-113	-01	-190
Operating profit	-20	-16	-47	-48	-84
Profit from participations in Group companies Other interest income and similar profit/loss items 1)	1,797 -232	502 -137	1,797 -83	756 51	760 -03
Profit after financial items	1,545	349	1,667	759	રેક્ષર
Year-end appropriations					145
Profit before tax	1,545	349	1.667	759	728
Current tax Deferred tax	34 20	13 16	27	6 -9	6
Profit for the period	1,599	378	1.694	756	734

1) Of which MSEK-46 (-14) refers to unrealised value changes on interest derivatives in Q2.

Condensed balance sheet for the parent company	2019	2018	2018
Figures in MSEK	30 Jun	30 Jun	31 Dec
ASSETS
Non-current assets	17,642	17,492	17,266
Current assets	32	112	130
Total assets	17,674	17,604	17,396

EQUITY AND LIABILITIES
Equity	5.458	4.603	4,553
Provisions	119	90	100
Non-current liabilities	3.998	6,921	4,727
Current liabilities	8.099	5.990	8.016
Total equity and liabilities	17.674	17.604	17,396

Reconciliation alternative performance

measurements	Quarter 2		Jan-Jun	FY
Per share, figures in SEK 1)	2019	2018	2019	2018	2018
Total comprehensive income per share, SEK
Total comprehensive income for the period attributable to the	892	892	1,657	2,062	3,278
shareholders of the parent company, MSEK Weighted average number of share, before and after dilution	167,499,999	167,499,999	167,499,999	167.499.999	167,499,999
Total comprehensive income per share, SEK	5.32	5.33	9.89	12.31	19.57

Cash earnings per share, SEK
Cash earnings attr.to the shareholders of the parent company, MSEK	564	533	927	868	1,887
Weighted average number of share, before and after dilution Cash earnings per share, SEK	167,499,999 3.37	167,499,999 3.19	167,499,999 5.53	167,499,999 5.18	167,499,999 11.26

Net asset value (EPRA NAV) per share, SEK
EPRA NAV (net asset value), MSEK			29,117	25,789	27,476
Number of shares at the end of the period			167,499,999	167,499,999	167,499,999
Net asset value (EPRA NAV) per share, SEK			173.83	153.97	164.04
Dividend per share, SEK
Dividend, MSEK					787
Number of shares at dividend	167,499,999	167,499,999	167,499,999	167,499,999	167,499,999
Dividend per share, SEK 3)					4.70

Weighted average number of shares outstanding, before and after dilution	167,499,999	167,499,999	167,499,999	167,499,999	167,499,999
Number of shares at end of period	167,499,999	167,499,999	167,499,999	167,499,999	167,499,999

PROPERTY RELATED KEY FIGURES
Number of hotels, end of period 2)			144	143	144
Number of rooms, end of period 2)			32,281 15.5	31,656 15.3	32,268 15.7
WAULT, years Market value properties, MSEK			57,618	53,064	55,197
Market value Investment properties			49,026	45,744	47,139
Market value Operating properties			8,592	7,320	8,058
RevPAR (Operator Activities) for comparable units at comparable	1,034	926	890	805	865
exchange rates, SEK

^ Total number of outstanding shares after dition and 167,000,000 A shares and 92,499,999 B shares For a fair comparison the total number of shares is used for the calculation of key ratios. 31 Pandox's owned hotel properties. 31 For 2018 actual dividend is indicated.

Reconciliation alt. performance

measurements	Quarter 2		Jan-Jun		FY
Figures in MSEK	2019	2018	2019	2018	2018

Net interest-bearing debt
Non-current interest-bearing liabilities			19,421	25,737	19,469
Current interest-bearing liabilities			9,120	1,714	8,448
Arrangement fee for loans			157	71	178
Cash and cash equivalents			-450	-678	-674
Net interest-bearing debt			28,248	26,844	27,421

Loan to value net, %
Net interest-bearing debt			28,248	26,844	27,421
Market value properties			57,618	53,064	55,197 49.7
Loan to value net, %			49.0	50.6
Interest cover ratio, times
Profit before changes in value	598	558	962	893	1,943
Interest expenses	190	185	371	360	746
Depreciation	47	38	94	77	163
Interest cover ratio, times	4.4	4.2	3.8	3.7	3.8

Average interest on debt end of period, %
Average interest expenses			742	741	725
Non-current interest-bearing liabilities			19,421	25,737	19,469
Arrangement tee for loans			157	71	178
Current interest-bearing liabilities			9,120	1,714	8,448
Average interest on debt, end of period, %			2.6	2.7	2.6
See page 7-8 for a complete reconciliation
	175	122	318	293	720
Investments, incl. parent company excl. acquisitions
Net operating income, Property Management
Rental income	772	739	1,413	1,339	2,809
Other property income	11	52	55	73	162
Costs, excl. property administration	-46	-105	-121	-173	-338
Net operating income, before property
administration	737	686	1,347	1,239	2,633
Property administration	-33	-22	-60	-47	-116
Net operating income, Property Management	704	664	1,287	1,192	2,517

Net operating income, Operator Activities
Revenues Operator Activities	673	565	1,179	996	2,153
Costs Operator Activities	-208	-436	-966	-840	-1,776
Gross profit	165	129	213	156	377
Plus: Depreciation included in costs	47	38	94	77	163
Net operating income, Operator Activities	212	167	307	233	540

EBITDA
Gross profit from respective operating segment	869	793	1,500	1,348	2,894
Plus: Depreciation included in costs Operator	47	38	94	77	163
Activities
Less: Central administration, excluding depreciation	-48	-37	-92	-71	-148
EBITDA	868	794	1,502	1,354	2,909
Cash earnings
EBITDA	868	794	1,502	1,354	2,909
Plus: Financial income	4	0	0	ा	1
Less: Financial expense	-206	-198	-413	-385	-804
Less: Financial cost for right-of-use assets	-21		-40
Less: Translation gain on bank deposits	-4	1	-6
Less: Current tax	-75	-60	-121	-97	-216
Cash earnings	565	537	928	873	1,890

EPRA NAV
Equity attr. to the shareholders of the parent company			22,248	20,171	21,378
Plus: Revaluation of Operating Properties			2,599	1,989	2,249
Plus: Fair value of financial derivatives			810	503	538
Less: Deferred tax assets related to derivatives			-173	-11 1	-118
Plus: Deferred tax liabilities			3,653	3,237	3,430
EPRA NAV			29,117	25,789	27,476
Growth in EPRA NAV, annual rate, %
EPRA NAV attributable to the shareholders of the
parent company, OB			25,789	20,877	24,211
EPRA NAV attributable to the shareholders of the
parent company, CB			29,117	25,789	27,476
Dividend added back, current year			787	737	737
Excluding proceeds from new share issue				-1,462	0
Growth in EPRA NAV, annual rate, %			16.0	20.1	16.5

Key figures not defined according to IFRS

A number of the financial descriptions and measures in this interim report provide information about development and status of financial and per share measurements that are not defined in accordance with the IFRS (International Financial Reporting Standards). Adjoining alternative financial measurements provides useful supplementary information to investors and management, as they facilitate evaluation of company performance. Since not all companies calculate financial measurements in the same manner, these are not always comparable to measurements used by other companies. Hence, these financial measures should not be seen as a substitute for measures defined according to the IFRS. Unless otherwise stated, the table to the left presents measures, along with their reconciliation, which are not defined according to the IFRS. The definitions of these measures appear on page 26.

Financial risk

Pandox owns, manages and develops hotel properties and operates hotels. The level of risk-taking is expressed in a loanto-value ratio of between 45 and 60 percent, depending on market development and the opportunities that exist. In addition to the loan-to-value ratio, interest cover ratio, average cost of debt and interest-bearing net debt are other relevant measurements of Pandox's financial risk.

Growth and profitability

Pandox's overall goal is to increase cash flow and property value and thereby enable Pandox to have the resources for investments to support the Group's continued expansion. Since Pandox both owns and operates hotel properties, multiple indicators are needed to measure the Company's performance in relation to goals in this regard. Growth in cash earnings is Pandox's primary focus and this is also the basis for the dividend paid annually to the shareholders, i.e. 30–50 percent of cash earnings with an average payout ratio of approximately 40 percent over time. Measuring net operating income creates transparency and comparability between the Company's two operating segments and measures Pandox's total operational profitability in a uniform way.

EPRA NAV (net asset value) and equity

Net asset value (EPRA NAV) is the collective capital Pandox manages on behalf of its shareholders. Pandox measures long-term net asset value based on the balance sheet adjusted for items that will not vield any payments in the near future, such as derivatives and deferred tax liabilities. The market value of Operating Properties is included in the calculation.

Quarterly data

Condensed consolidated statement of comprehensive

income		2019	2018					2017
Figures in MSEK	02	01	04	03	02	01	04	03
Revenue Property Management
Rental income	772	641	704	766	739	600	549	569
Other property income	11	44	45	44	52	21	22	20
Revenue Operator Activities	673	506	626	531	565	431	528	463
Total revenues	1,456	1,191	1,375	1.341	1,356	1.052	1,099	1,052
Costs Property Management	-79	-102	-122	-112	-127	-93	-82	-78
Costs Operator Activities	-508	-458	-507	-429	-436	-404	-429	-373
Gross profit	869	631	746	800	793	555	589	601
Central administration	-48	-43	-43	-34	-37	-34	-37	-30
Financial net	-202	-205	-214	-205	-198	-186	-126	-132
Financial cost for right-of-use assets	-21	-19
Profit before value changes	598	364	489	561	558	335	426	439
Changes in value
Properties, unrealised	509	131	607	376	297	148	490	194
Properties, realised	1		27	13	13	14	289
Derivatives, unrealised	-133	-139	-147	113	-24	83	7	18
Profit before tax	975	356	976	1.063	844	580	1.212	651
Current tax	-75	-46	-55	-64	-60	-37	11	-16
Deferred tax	-140	97	-146	-166	-21	-91	-40	-84
Profit for the period	760	407	775	833	763	452	1,183	551
Other comprehensive income	135	360	-177	-220	134	728	-196	-1
Total comprehensive income for the period	895	767	598	613	897	1.180	986	550

Condensed consolidated statement of financial position		2019		2018			2017
Figures in MSEK	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep
ASSETS

1 18 UTC2 III INTOLTA	JU UII	JI IVIOL	JI DCC	JU SCU	ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴ	JI IVIDI	of new	JU SCD
ASSETS
Properties incl equipment and interiors	54.543	54.371	52,949	50.855	50,789	49,944	48.217	39,202
Right of use assets	2,784	2,738
Other non-current receivables	75	50	43	91	36	ਦਰੇ	37	51
Deferred tax assets	540	ਦੇ ਤੋਂ ਉਹ	465	520	561	469	613	665
Current assets	1,192	657	885	1,105	2,542	2,262	1,871	772
Cash and cash equivalents	450	923	674	923	678	708	ਰੇਰੇਰੇ	484
Total assets	59,584	59,278	55,016	53,494	54.606	53,442	51,737	41,174

FOUITY AND LIABILITIES
Equity	22,413	22,305	21,538	20,950	20,347	20.206	19,027	16,586
Deferred tax liability	3,633	3,544	3,430	3,316	3,237	3,153	3,026	2,911
Interest-bearing liabilities	28,541	28,266	27,917	27,461	27,451	26.792	26,298	20,034
Leasing liabilities	2,784	2,738
Non interest-bearing liabilities	2,213	2,425	2,131	1,767	3,571	3,292	3,386	1,643
Total equity and liabilities	59,584	59,278	55,016	53,494	54.606	53,442	51,737	41,174

Key ratios		2019		2018			2017
Figures in MSEK	02	01	04	03	02	01	04	03
NOI, Property Management	704	583	627	698	664	578	490	511
NOI, Operator Activities	212	ರಿ 5	165	142	167	66	144	129
EBITDA	868	634	749	806	794	560	597	610
Earnings per share before and after dilution, SEK	4.53	243	4.63	4.98	4.53	269	7.47	3.47
Cash earnings	565	362	480	537	536	336	482	462
Cash earnings per share before and after dilution, SEK	3.37	2.16	2.88	3.20	3.18	2.00	3.06	2.91
RevPAR growth (Operator Activities) for comparable units and constant currency, %	12	ி	12	C	ব	4	11	12

	2019		2018					2017
		30 Jun	31 Dec		30 Jun 31 Mar		31 Dec	30 Sep
Net interest-bearing debt, MSEK	28.248	27.513	27.421	26.590	26.844	26.151	25.474	19.550
Loan to value. %	49.0	48.5	49.7	499	50.6	50.2	50.8	47.7
Interest coverage ratio, times	44	3.3	3.8	4.1	4.2	3.1	45	49
Market value properties, MSEK	57.618	56.713	55.197	53,281	53.064	52.120	50.121	40.951
EPRA NAV per share, SEK	173.83	170.52	164.04	158.44	153.97	151.81	144.54	136.47
WAULT (Property Management), yrs	15.5	15.8	15.7	15.3	15.3	15.6	15.6	13.8

At the end of the period Pandox's property portfolio consisted of 144 (144) hotel properties with 32,281 (32,268) hotel rooms in fifteen countries, including the sub-markets England, Scotland, Wales and Northern Ireland.

Pandox's main geographical focus is Northern Europe. Sweden (26 percent) is Pandox's single largest geographical market, measured as a percentage of the property portfolio's total market value, followed by the UK (18 percent), Germany (18 percent), Belgium (8 percent) and Finland (7 percent).

128 of the hotel properties are leased to third parties, which means that approximately 85 percent of the portfolio market value is covered by external leases. Pandox's tenant base consists of highly reputable hotel operators with strong hotel brands.

On 30 June 2019 Investment Properties had a weighted average unexpired lease term (WAULT) of 15.5 years (15.7).

	Number			Market value (MSEK)
Property Management	Hotels	Rooms	Per country	In % of total	Per room
Sweden	43	8,885	15,151	26	1.7
Germany	22	4.463	7,706	13	1.7
UK	19	4,675	9,202	16	2.0
Finland	13	2,921	4,065	7	1.4
Norway	14	2,535	3,481	6	1.4
Denmark	8	1.845	3,707	6	2.0
Austria	2	639	1,462	3	2.3
Belgium	2	519	882	2	1.7
Ireland	3	445	1.541	3	3.5
Switzerland	1	206	713	1	3.5
Netherlands	1	189	1,116	2	5.9
Sum Property Management	128	27,322	49,026	85	1.8
Operator Activities
Belgium	7	1,955	3,625	6	1.9
Germany	4	1,285	2,617	5	2.0
Canada	2	952	1,407	2	1.5
ا آلا	2	611	922	2	1.5
Finland	1	156	21	0	0.1
Sum Operator Activities	16	4,959	8,592	15	1.7

Sum total	144	32.281	57.618	100	1.8

Note: Including the acquisition of three hotel properties in Germany, which was completed 1 July 2019, Pandox owns 147 hotel properties with a total of 32,846 rooms.

	Number
Brand	Hotels	Rooms	In % of total
Scandic	50	10.891	34
Jurys Inn	20	4.410	14
Leonardo	18	3,547	11
Hilton	8	2,582	8
Radisson Blu	8	2,033	റ
Nordic Choice Hotels	11	1,800	6
NH	7	1.681	5
Crowne Plaza	2	616	2
Elite Hotels	2	493	2
Holiday Inn	2	469	1
First Hotels	2	403	1
InterContinental	1	357	1
Meininger	1	228	1
Best Western	1	103	0
Independent brands	11	2,668	8
Total	144	32.281	100

Scandic

Jurys Inn Leonardo

Hilton

Radisson Blu
Nordic Choice Hotels

NH Other

Pandox AB follows the International Financial Reporting Standards (IFRS) and interpretations (IFRIC), as adopted by the EU. This interim report has been prepared according to IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act.

The interim report for the Parent Company has been prepared in accordance with Chapter 9 Interim Reports of the Swedish Annual Accounts Act. The Parent Company applies the Swedish Annual Accounts Act and RFR2 Accounting principles for legal entities. Under RFR2 the parent company of a legal entity applies all EU approved IFRS principles and interpretations within the framework defined by the Swedish Annual Accounts Act and taking into consideration the connection between accounting and taxation.

The interim financial statements are included on pages 1–24 and pages 25–27 are thus an integrated part of this financial report.

The accounting principles applied are consistent with those described in Pandox's 2018 Annual Report.

Pandox is applying IFRS 16 prospectively as of 1 January 2019.

Pandox is applying IFRS 16 prospectively as of 1 January 2019. The effects of the transition as of 1 January 2019 are presented in the 2018 Annual Report.

Pandox's lease commitments consist of site leaseholds or other leased land, premises and vehicles. In total these undiscounted commitments amount to MSEK 2,784 based on agreements currently in effect. MSEK 2,602 of these commitments relate to land (site leaseholds or other leased land).

In Sweden site leaseholds were introduced and are still used as a supplement to ownership of a property. Only the national and municipal authorities in Sweden have the right to grant site leaseholds. The holder of a site leasehold has the right to use the land for a very long time, which is sometimes described by municipalities as "essentially infinite". Accordingly, the discounted value of site leasehold rents in Sweden is to be recognised, according to IFRS 16, as an infinite right-of-use asset and a lease liability in the balance sheet. The site leasehold rent paid is recognised in full as a financial expense where in the past it was recognised as an operating cost.

Pandox has site leaseholds or other land leases in countries other than Sweden. These leases are structured differently, but are normally extended. Other clauses exist to ensure that the land can be used after the lease ends or that compensation is paid for the hotel property built on the land in question. In Pandox's experience these leases are normally extended and, accordingly, the leases are expected to be extended and treated in the same way as Swedish site leaseholds.

Premises (mainly Pandox's offices and a few floors rented in The Hotel Brussels) and vehicles (company cars) are recognised at a discounted value in the balance sheet as right-of-use assets and lease liabilities. In the income statement right-of-use assets are depreciated over the term of the lease and payments to the landlord/lessor are recognised as instalments on the lease liability and as interest expense in the income statement.

In connection with the transition to IFRS 16 Pandox has decided to include three new items in the balance sheet: right-of-use assets, long-term lease liabilities and short-term lease liabilities. In the income statement the financial component is recognised net as a financial item in a new line "Financial cost for right-of-use assets". To calculate right-of-use assets and lease liabilities Pandox uses an estimated financing expense in local currencies based on when the various leases mature.

In addition to the effects of the transition to IFRS 16 described above, its introduction also affects performance measures. The definitions of interestbearing net debt and cash earnings have been adjusted for clarity as of 1 January 2019 for comparability with earlier periods.

On the following page, tables are presented which describe the difference in result and financial position when IFRS 16 is applied and when not applied.

Condensed consolidated statement of comprehensive income	Jan-Jun 2019
Figures in MSEK	IFRS 16	Ex IFRS 16	Effect IFRS 16
Revenues	2.647	2.647
Costs	-1.147	-1.185	38
Gross profit	1.500	1.462	38
Central administration	-91	-92
Financial income / expenses	-447	-407	-40
Profit before changes in value	962	963	-1
Changes in value	369	369
Profit before tax	1.331	1,332	-1
Current tax	-164	-164
Profit for the period	1.167	1.167	-1
Other comprehensive income for the period	495	495
Total comprehensive income for the period	1.662	1.662	-1

Condensed consolidated statement of financial position	30 Jun 2019
Figures in MSEK	TERS 16	Ex IFRS 16	Effect IFRS 16
ASSETS
Non-current assets	57.942	55,158	2,784
Current assets	1.642	1.642
Total assets	59,584	56.800	2,784
EQUITY Equity	22,413	22,413	0
LIABILITIES
Long-term liabilities	26.807	24.042	2,765
Short-term liabilities	10,364	10,345	ਹੈ ਰੇ
Total equity and liabilities	59,584	56,800	2,784

Reconciliation alternative performance measurements	30 Jun 2019
Figures in MSEK	IFRS 16	Ex IFRS 16	Effect IFRS 16
Net operating income
Property Management	1,287	1.258	29
Operator Activities	307	296	11

EBITDA	1.502	1.462	40

Note 3 Operating segments

Pandox's operating segments consist of the Property Management and Operator Activities business streams. The Property Management segment owns, improves and manages hotel properties and provides external customers with premises for hotel operations, as well as other types of premises adjacent to hotel property Management segment also includes eight asset management contracts for externally owned notel properties. The Operator Activities segment owns hotels in such owned properties. The Operator Activities segment also includes one hotel operated under a long-term lease agreement and one hotel property under an asset management. Non-allocated tems are any items that are not attributable to a specific segments, and financial cost for right-of-use assets according to IFRS 16. The segments have been established based on the reporting that takes place internally to executive management on financial outcomes and position. Segment reporting applies the same acounting principles as those used in the annual report in general, and the amounts reported for the segments are the same as those for the Group and Fattal Hotels Group are tenants who account for more than 10 percent of revenues each.

					Group and non-allocated
Operating segments	Property Management		Operator Activities		items		Total
Figures in MSEK	Q2 2019	Q2 2018	Q2 2019	Q2 2018	Q2 2019	Q2 2018	Q2 2019	Q2 2018
Revenue Property Management
Rental and other property income	783	791					783	791
Revenue Operator Activities			673	565			673	565
Total revenues	783	791	673	565			1,456	1,356
Costs Property Management	-79	-127					-79	-127
Costs Operator Activities			-508	-436			-508	-436
Gross profit	704	664	165	129			869	793

Central administration					-48	-37	-48	-37
Financial income					4	0	4	0
Financial expenses					-206	-198	-206	-198
Financial expenses right-of-use assets					-21		-21
Profit before changes in value	704	664	165	129	-271	-235	598	558

Changes in value
Properties, unrealised	509	297					509	297
Properties, realised	1	13						13
Derivatives, unrealised					-133	-24	-133	-24
Profit before tax	1,214	974	165	129	-404	-259	975	844
Current tax					-75	-60	-75	-60
Deferred tax					-140	-21	-140	-21
Profit for the period	1,214	974	165	129	-619	-339	760	763

Q2 2019

						UK	Other	Total

236	62	58	79	126	15	155	52	783
			12	143	288	73	157	673
15.151	3.707	3.481	4.086	10.323	4.507	11.666	4.697	57.618
58	4	10	19		30	16	29	171
						-106		-106

			27	1.524	2.528	890	1.025	5.994
22.021	2.094	2.138	3.572	8.086	3.228	11.927	4.335	57.402
						Sweden Denmark Norway Finland Germany Belgium

Q2 2018

Figures in MSEK		Sweden Denmark Norway Finland Germany Belgium					UK	Other	Total
Total revenues
- Property Management	242	61	55	78	118	14	174	49	791
- Operator Activities				11	127	260	35	132	565
Market value properties	14.868	3.589	3.412	3.884	9.424	4.106	9.365	4.416	53.064
Investments in properties	50	C	ರ	5	19	21		12	122
Acquisitions of properties								10	13
Realised value change properties
Book value Operating Properties				27	1.506	2.428	406	964	5.331
Total non-current assets at book value, less deferred tax assets	19.347	2.121	2.250	3.084	7.564	3.115	9.345	3.999	50.825

					Group and non-allocated
Operating segments	Property Management		Operator Activities		items		Total
Figures in MSEK	Q1-2 2019	Q1-2 2018	Q1-2 2019	Q1-2 2018	Q1-2 2019	Q1-2 2018	Q1-2 2019	Q1-2 2018
Revenue Property Management
Rental and other property income	1.468	1.412					1.468	1,412
Revenue Operator Activities			1,179	વેત્તર તે જેવી સવલતો પ્રવૃતિ તેમ જ દૂધની ડેરી જેવી સવલતો પ્રવાસ તાલુકામાં આવેલું એક ગામનાં લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામનાં લોકોનો મુખ્ય વ્યવસ			1,179	996
Total revenues	1.468	1,412	1,179	996			2,647	2,408
Costs Property Management	-181	-220					-181	-220
Costs Operator Activities			-966	-840			-966	-840
Gross profit	1,287	1,192	213	156			1,500	1,348
Central administration					-91	-71	-91	-71
Financial income					6	1	6
Financial expenses					-413	-385	-413	-385
Financial cost right-of-use assets					-40		-40
Profit before changes in value	1.287	1,192	213	156	-538	-455	962	893
Changes in value
Properties, unrealised	640	445					640	445
Properties, realised	1	27					1	27
Derivatives, unrealised					-272	ਦੇ ਰੇ	-272	ਦੇ ਰੇ
Profit before tax	1,928	1,664	213	156	-810	-396	1,331	1,424
Current tax					-121	-97	-121	-97
Deferred tax					-43	-112	-43	-112
Profit for the period	1,928	1.664	213	156	-974	-604	1,167	1,215

Q1-2 2019

Figures in MSEK		Sweden Denmark Norway Finland Germany Belgium					UK	Other	Total
Total revenues
- Property Management	436	111	104	137	243	27	316	94	1.468
- Operator Activities				21	256	538	135	279	1.179
Market value properties	15.151	3.707	3.481	4.086	10.323	4.507	11.666	4.697	57.618
Investments in properties	98	17	74	38	11	62	21	43	314
Acquisitions of properties							-97		-90
Realised value change properties
Book value Operating Properties				27	1.524	2.528	890	1.025	5.994
Total non-current assets at book value, less deferred tax assets	22.021	2.094	2.138	3.572	8.086	3.228	11.927	4.335	57.402

Q1-2 2018

Figures in MSEK		Sweden Denmark Norway Finland Germany Belgium					UK	Other	Total
Total revenues
- Property Management	444	104	98	137	277	21	288	93	1.412
- Operator Activities				18	278	489	64	197	996
Market value properties	14.868	3.589	3.412	3.884	9.424	4.106	9.365	4.416	53.064
Investments in properties	89	21	32	15	35	45		56	293
Acqusitions of properties					2		2	11	15
Realised value change properties
Book value Operating Properties				27	1.506	2.428	406	964	5.331
Total non-current assets at book value, less deferred tax assets	19.347	2.121	2.250	3.084	7.564	3.115	9.345	3.999	50.825

Note 4 Assets and liabilities classified as held for sale

Assets and liabilities held for sale	2019	2018		2018
Figures in MSEK	30 Jun	30 Jun		31 Dec
ASSETS
Investment properties	480	3) 286	2)
Operating Activities Vesway		1.406	1)
Other operating assets		41	1)
Assets classified as held for sale	480	1.734

LIABILITIES
Other short term liabilities		0 3) 1.447 1)
Liabilies classified as held for sale	O	1.447

1) Refers to MGBP 120 paid by acquining company in completion of acquisition of Vesway attributable to Jurys Inn Resolved during C3 2018.

3) Refers to divestment of Hotell Hasselbacken which is expected to be completed 2 September 2019.

Note 5 Reclassifications, acquisitions and divestments with date of consolidation or deconsolidation

Reclassifications, acquisitions and divestments

Date	Hotel property	Event
1 July 2019	Three hotel properties in Germany	Acquisition Property Management
3 December 2018	Scandic Ferrum	Divestment Property Management
1 November 2018	The Midland Manchester	Acquisition Property Management
31 October 2018	Radisson Blu Glasgow	Acquisition Operator Activities
1 February 2018	NH Brussels Bloom	Reclassification to Property Management
1 February 2018	NH Brussels EU Berlaymont	Reclassification to Property Management

Note 6 Currency exchange rates

Currency exchange rates January-June	Average rate			Rate at end-of-period
1 foreign currency = X SEK	2019	2018	1%	2019	2018	4%
Euro (EUR)	10.515	10.145	4%	10.558	10.421	1%
British pound (GBP)	12.044	11.529	4%	11.755	11.752	0%
Danish krone (DKK)	1.408	1.362	3%	1.415	1.398	1%
Norwegian krone (NOK)	1.080	1.057	2%	1.089	1.100	-1%
Canadian dollar (CAD)	6.978	6.563	6%	7.085	6.776	4%
Swiss franc (CHF)	9.308	8.672	7%	9510	9.006	5%

²⁾ Refers to Scandic Ferrum. Resolved during Q4 2018.

Pandox in short

Pandox is a leading owner of hotel properties in Northern Europe with a focus on sizeable hotels in key leisure and corporate destinations. Pandox's hotel property portfolio comprises 147 hotels with approximately 32,800 hotel rooms in 15 countries. Pandox's business is organised into Property management, which comprises hotel properties leased on a long-term basis to market leading regional hotel operators and leading international hotel operators, and Operator activities, which comprises hotel operations executed by Pandox in its owner-occupied hotel properties. Pandox was founded in 1995 and the company's B shares are listed on Nasdaq Stockholm.

Vision and business concept

Pandox's vision is to be a world-leading hotel property company with specialist expertise in active ownership, hotel property management and development, as well as hotel operation. Pandox's business concept is to own hotel properties and lease them to strong hotel operators under long-term revenue-based lease agreements. Pandox's ability to act throughout the complete hotel value-chain both reduces risk and creates business opportunities.

Strategy and business model

Pandox's strategy and business model is founded on:

(1) Focus on hotel properties
(2) Large hotel properties in strategic locations
(3) Long-term revenue-based lease agreements with the best hotel operators
(4) Property portfolio of high quality with a sustainable footprint
(5) Geographical diversification which limits fluctuations
(6) Own operations reduce risk

Overall goals

Pandox's overall goal is to make positive contribution to the Company's stakeholders through profitable and responsible growth:

(1) To increase the value for Pandox's shareholders through higher cash flow and net asset value
(2) To create attractive hotel products in cooperation with Pandox's business partners
(3) To contribute to positive growth for Pandox employees

Organisation and execution

Pandox has two business segments. One is Property Management in which Pandox owns and leases out hotel properties to external operators under long-termrevenue-based lease agreements. The other is Operator Activities in which Pandox owns hotel property and operates hotels under external brands or its own brands. Pandox also manages a small number of hotel properties on behalf of other owners.

Head office

Pandox AB (publ) Box 15 101 20 Stockholm Sweden

Visiting address

Vasagatan 11, 9th floor Stockholm. Sweden

Tel: +46 8 506 205 50 www.pandox.se Corp. reg. no. 556030-7885

Average interest expense based on interest maturity in respective currencies as a percentage of interest-bearing liabilities.

EBITDA plus financial income less financial expense less financial cost for right-of-use assets according to IFRS 16 less current tax less any unrealised translation gain on bank balances.

Total gross profit less central administration (excluding depreciation).

Growth measure that excludes effects of acquisitions, divestments and reclassifications, as well as exchange rate changes.

Accumulated percentage change in EPRA NAV, with dividends added back and issue proceeds deducted, for the immediately preceding 12 month period.

Revenue less directly related costs for Operator Activities including depreciation of Operator Activities.

Revenue less directly related costs for Property Management.

Current and non-current interest-bearing liabilities plus arrangement fee for loans less cash and cash equivalents and short-term investments that are equivalent to cash and cash equivalents. Long-term and shortterm lease liabilities according to IFRS 16 are not included.

Profit before changes in value plus interest expense and depreciation, divided by interest expense. Financial cost for right-of-use assets according to IFRS 16 is not included.

Investments in non-current assets excluding acquisitions.

Interest-bearing liabilities, including arrangement fee for loans, less cash and cash equivalents as a percentage of the properties' market value at the end of the period.

Gross profit for Operator Activities plus depreciation included in costs for Operator Activities.

Net operating income corresponds to gross profit for Property Management.

Net operating income for Operator Activities as a percentage of total revenue from Operator Activities.

Since amounts have been rounded off in MSEK, the tables do not always add up.

EBITDA plus financial income less financial expense less current tax, after non-controlling interests, less financial expense for right-of-use assets according to IFRS 16 less unrealised translation gain on bank balances divided by the weighted average number of shares outstanding.

Comprehensive income attributable to the Parent Company's shareholders divided by the weighted average number of shares outstanding after dilution at the end of the period.

Proposed/approved dividend for the year divided by the weighted average number of outstanding shares after dilution at the end of the period.

Profit for the period attributable to the Parent Company's shareholders divided by the weighted average number of shares outstanding.

Equity attributable to the Parent Company's shareholders, divided by the number of shares outstanding at the end of the period.

Recognised equity, attributable to the Parent Company's shareholders, including reversal of derivatives, deferred tax asset derivatives, deferred tax liabilities related to properties, and revaluation of Operating Properties, divided by the total number of shares outstanding after dilution at the end of the period.

The weighted average number of outstanding shares taking into account changes in the number of shares outstanding after dilution during the period.

The weighted average number of outstanding shares taking into account changes in the number of shares outstanding, before dilution, during the period.

Market value of Investment Properties plus market value of Operating Properties.

Number of owned hotel properties at the end of the period.

Number of rooms in owned hotel properties at the end of the period.

Revenue per available room, i.e. total revenue from sold rooms divided by the number of available rooms. Comparable units are defined as hotel properties that have been owned and operated during the entire current period and the comparative period. Constant exchange rate is defined as the exchange rate for the current period, and the comparative period is recalculated based on that rate.

Average lease term remaining to expiry, across the property portfolio, weighted by contracted rental income.

Check in ... some of Pandox's hotel properties

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Pandox — Interim / Quarterly Report 2019

2956_ir_2019-07-12_5281bdf7-749a-49c0-a3df-9aaab22b67ce.pdf

Property portfolio

Change in property value

Change in value Investment Properties

Investments

Average valuation yield, % (30 June 2019)

Property valuation

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Summary of financial reports

Condensed consolidated statement of comprehensive

Condensed consolidated statement of changes in equity

Condensed consolidated statement of cash flow

Condensed income statement for the parent

Reconciliation alternative performance

Reconciliation alt. performance

Key figures not defined according to IFRS

Financial risk

Growth and profitability

EPRA NAV (net asset value) and equity

Quarterly data

Condensed consolidated statement of comprehensive

Note 3 Operating segments

Q2 2019

Q2 2018

Q1-2 2019

Q1-2 2018

Note 4 Assets and liabilities classified as held for sale

Note 5 Reclassifications, acquisitions and divestments with date of consolidation or deconsolidation

Reclassifications, acquisitions and divestments

Note 6 Currency exchange rates

Pandox in short

Vision and business concept

Strategy and business model

Overall goals

Organisation and execution

Head office

Visiting address

Net operating income for Operator Activities as a percentage of total revenue from Operator Activities.

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Pandox Interim / Quarterly Report 2019