Wallenstam AB (publ) Year-End Report 2014: Income from Management Operations Increased with 25%

Regulatory News:

Wallenstam AB: (STO:WALLB)

MD Hans Wallenstam and CFO Susann Linde, in charge of IR, comment on the interim report at www.wallenstam.se/presentationer.

1 January–31 December 2014

• Income from management operations amounted to SEK 592 million (473), an increase of 25 per cent.

• Properties were sold for SEK 2,349 million (1,986) resulting in realized changes in value of SEK 283 million (122).

• Unrealized changes in the value of investment properties amounted to SEK 829 million (605) and for derivative instruments to SEK -854 million (328).

• Profit after tax amounted to SEK 585 million (1,276) and earnings per share were SEK 3.5 (7.5).

• Rental income for 2014 amounted to SEK 1,566 million (1,578).

• Investments in properties amounted to SEK 1,941 million (2,589).

• The growth in net asset value, excluding dividends and repurchases, on a rolling one-year basis was 3.0 per cent.

• We had just over 1,600 apartments under construction on closing day.

• The Board proposes a dividend of SEK 2.25 per share (2.0) equivalent to an increase of 13 per cent, and a 2:1 share split.

1 October–31 December 2014

• Income from management operations amounted to SEK 129 million (116).

• Unrealized changes in the value of investment properties amounted to SEK 331 million (404) and for derivative instruments to SEK -259 million (-9).

• Profit after tax amounted to SEK 398 million (363) and earnings per share was SEK 2.4 (1.8).

• Rental income for the fourth quarter of 2014 amounted to SEK 380 million (388).

Comparisons in brackets refer to the corresponding period for the previous year unless otherwise specified.

Comment from Hans Wallenstam, Managing Director

"Operations are proceeding well, the surplus ratio is increasing, and the 25 per cent improvement in income from management operations is tremendously positive. This was in spite of property sales, which have a negative effect on income from management operations in the short term.”

"I’m extremely pleased with our new construction of homes. We’re increasing the rate as planned and we currently have just over 1,600 apartments under construction. Our substantial and exciting project portfolio allows us to maintain an investment level of SEK 2–3 billion per year aimed at providing the market a product in great demand and creating value growth through our own efforts.”

"It’s gratifying that the Board proposes raising the dividend to SEK 2.25 per share. This is 80 per cent higher than the 2014 ordinary dividend of SEK 1.25 per share, which was supplemented by an SEK 0.75 one-time bonus per share for achieving the business plan. It reflects our faith in Wallenstam’s future.”

Link to the report: http://mb.cision.com/Main/590/9726460/345821.pdf

Wallenstam is required to make the information in this report public under the provisions of the Swedish Financial Markets Act and the Swedish Financial Instruments Trading Act. The information was made publicly available on February 18, 2014 at 1:00 p.m. (CET).

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