Interim Report January - June 2016

Interim Report January - June AB Sagax is a property company whose business concept is to invest in commercial properties, primarily in the warehouse and light industry segment.

The period in brief FIRST SIX MONTHS OF Rental revenue increased 19% to SEK 731 M (616 for the year-earlier period). Profit from property management increased 31% to SEK 516 M (395).Profit from property management per common share after dilution rose 36% to SEK 2.88 (2.12). In total, property revaluation affected profit by SEK 81 M (43), of which joint ventures and associated companies accounted for SEK 151 M (89). Revaluation of financial instruments had a negative impact totaling SEK 261 M (pos: 86) on profit. Fixed-income derivatives accounted for a loss of SEK 268 M (profit: 86), of which joint ventures and associated companies accounted for a loss of SEK 99 M (profit: 44). Profit after tax for the period amounted to SEK 894 M (72). Cash flow from operating activities before changes in working capital amounted to SEK 517 M (322), corresponding to SEK 2.89 (1.66) per common share after dilution. During the period, Sagax invested a net amount of SEK 1,233 M (77), of which acquisitions of 193 properties accounted for SEK 1,182 M. SECOND QUARTER OF Rental revenue increased 22% to SEK 378 M (39 for the year-earlier period). Profit from property management increased 42% to SEK 279 M (196). In total, property revaluation affected profit by SEK 542 M (346), of which joint ventures accounted for SEK 87 M (48). In total, revaluation of financial instruments had a negative impact totaling SEK 98 M (pos: 149). Fixed-income derivatives accounted for a loss of SEK 15 M (profit: 149), of which joint ventures accounted for a loss of SEK 35 M (profit: 79). Profit after tax for the period amounted to SEK 622 M (536). Cash flow from operating activities before changes in working capital amounted to SEK 334 M (169). During the second quarter of, Sagax net invested SEK 1,153 M (348) in properties. Sagax acquired 191 properties and divested two properties during the quarter. UNCHANGED FORECAST FOR Profit from property management for, meaning profit before revaluations and tax, is expected to amount to SEK 1,6 M based on the current property portfolio and announced acquisitions and divestments. The forecast was presented when the Interim Report for January-March was published. Selected key performance indicators 214 213 212 211 Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Profit from property management per common share, SEK 2.88 2.12 4.9 3.73 2.73 2.15 2.6 Change compared with preceding year 36% 26% 31% 37% 27% 4% 14% Earnings per common share, SEK 5.28 4.18 9.85 4.5 4.44 1.82.31 Dividend per common share, SEK 1.15.8.55.43.36 Dividend per preference share, SEK 2. 2. 2. 2. 2. Properties market value, 18,222 14,378 16,189 13,428 1,825 9,396 8,961 Yield 7.2% 7.4% 7.4% 7.6% 7.7% 7.8% 7.7% Lease term, years 7.4 7.7 7.4 8.2 8. 8.4 7.9 Interim Report January - June

CEO s comments SAGAX S EARNINGS TREND Sagax s profit from property management for the first six months of the year amounted to SEK 516 M, which was the highest profit from property management Sagax has been able to report and represented a year-on-year improvement of 22%, adjusted for nonrecurring expenses that impacted the comparative figure. The increase in earnings amounted to SEK 121 M and comprised a higher net operating income (SEK +98 M) and increased profit from joint ventures (SEK +1 M), while central administration costs were unchanged and financial expenses declined (SEK +13 M). The increase in net operating income was primarily attributable to Sagax acquiring properties for approximately SEK 2.7 billion in the past year. Reported financial expenses were lower than the year-earlier period as a result of a nonrecurring cost of SEK 28 M incurred by the premature refinancing of SEK 4.4 billion during the second quarter of. Adjusted for the nonrecurring cost mentioned above, financial expenses for the first six months of increased SEK 15 M year-onyear, which is a consequence of increased borrowing due to the Group s investing activities. My assessment is that the company has shown strong earnings in line with what its owners can expect, taking into account the positive prevailing conditions on the company s markets. THE COMPANY S FINANCIAL POSITION Operating cash flow increased by SEK 195 M to SEK 517 M during the first six months of the year, of which SEK 93 M can be attributed to increased earnings and SEK 117 M to higher dividends from joint ventures. The interest coverage ratio increased to a multiple of 3.7 as a result of the increased cash flow. Interest-bearing net debt in relation to the properties market value also declined by 2 percentage points to 62% despite increased borrowing as a result of the rising market value of the company s property holdings. However, the average interest-bearing net debt in relation to net operating income has increased from the level seen during the previous year (a multiple of 8.4) to a multiple of 8.7. INVESTMENT MARKET The Swedish property market has in general, and particularly the Stockholm market, shown a strong trend with extensive interest from many investors and historically high prices as a result. My perception is that this has applied to all property segments. This has naturally been beneficial for Sagax insofar as the company has seen the value of its property holdings rise. It has also led to a challenging environment for the company in terms of finding attractive new invest ments in the Stockholm market. Unfortunately, I do not currently see any reason as to why this market dynamic would change in either the short or medium term. In other words, I expect the very expensive and competitive market in Stockholm to be sustained. The company s view of pricing in Stockholm is reflected in the structure of the past year s investments: Of the SEK 2.7 billion invested over the past 12 months, only approximately SEK 3 M pertained to Stockholm, despite it being Sagax s largest market segment. A full SEK 2.4 billion has been invested in our foreign market segments. Our operations in Finland have provided the clear majority of our investment opportunities and now represent 39% of the company s property holdings. Our operations in Paris are our newest market segment and were launched in July 214. In September, the Paris segment will contribute approximately SEK 675 M to Sagax s property holdings. Investments made so far will generate an average yield of approximately 7%. The extent of these investments could be considered modest when comparing to Sagax s other operations. However, it should be considered that Sagax could not replace these investments with equivalent investments in any of the company s other market segments. This growth would therefore be lost without this new venture. It is also worth considering that the Paris operations are now as big as the Finnish operation was in July 28; those operations now represent a property portfolio worth just over SEK 7 billion. In other words, experience shows that it takes time to build up both a market position and a successful local organization. POTENTIAL NEW MARKET In line with my comments in the Annual Report, we have examined the conditions for establishing another new market segment for Sagax against the background outlined above. Our current assessment is that the Randstad in the Netherlands, which includes the cities of Amsterdam, Rotterdam, Utrecht and The Hague, could potentially offer a strong risk-adjusted yield within the light industry segment. The area is generally considered to encompass approximately 8, km 2 and 7 million inhabitants, which can be compared with the 6,5 km 2 and 2.2 million inhabitants of Greater Stockholm. We now intend to continue analyzing the market segment and potentially make certain minor investments. Stockholm, July 13, DAVID MINDUS Chief Executive Officer Interim Report January - June 1

Business concept, goals and strategies BUSINESS CONCEPT AB Sagax is a property company whose business concept is to invest in commercial properties, primarily in the warehouse and light industry segment. COMPANY GOALS The overriding goal is the long-term generation of the maximum risk-adjusted return to the company s owners. To reach this goal, Sagax has set the following business targets: Operations must generate a long-term sustainable return and strengthen cash flow. The company is to continue to grow through property acquisitions after taking into account the risk-adjusted return. Measured in real terms, the company is to create cash-flow growth from the existing property portfolio. FINANCIAL TARGETS The return on equity, measured over a five-year period, should not fall below 15% per year. During the period, it was 28%. The average return over the past five years has been 21% per year. Profit from property management per common share should increase by a minimum of 15% per year. During the period, it increased to SEK 2.88 (2.12) per common share, up 36% compared with the year-earlier period. The average annual increase over the past five years has been 24%. The long-term target for the interest coverage ratio is a minimum of 15%. The interest coverage ratio amounted to 374% and the average over the past five years has been 258%. The long-term target for the debt ratio is that it should be less than 7%. The debt ratio was 58% and the average over the past five years has been 62%. The following diagram illustrates the outcome for the past five years in relation to the financial targets. Return on equity Profit from property management per common share % 5 SEK 6 % 6 4 5 5 3 2 4 3 2 4 3 2 1 1 1 211 212 213 214 Return on equity Return on equity, rolling five years Objective for return on equity over a five-year period 211 212 213 214 Profit from property management per common share, rolling 12 months Annual growth rate, rolling 12 months Objective for annual growth rate Interest-coverage ratio Debt ratio % 4 % 8 7 3 6 5 2 4 3 1 2 211 212 213 214 1 211 212 213 214 Interest coverage ratio Over the long term, must never be less than 15% Debt ratio Over the long term, must never exceed 7% 2 Interim Report January - June

STRATEGIES Investment strategy Sagax invests primarily in warehouse and industrial properties. Properties designed as warehouses and for light industries are attractive investment objects, as a result of a high continuous yield in combination with a low rate of new production and stable leasing rates. Sagax invests in complementary acquisitions and investments in existing properties. Property acquisitions and investments in the existing portfolio are aimed at increasing cash flow and diversifying rental revenue to thereby reduce the company s operational and financial risks. The following diagram illustrates the trend in the properties market value and lettable area. Financing strategy The financing structure of Sagax is designed with a clear focus on operating cash flow and the interest coverage ratio. This is expected to create excellent prerequisites for expansion and an attractive return on shareholders capital. The diagram below shows Sagax s profit from property management and cash flow from operating activities. As illustrated, cash flow corresponds closely to profit from property management. The deviation is due mainly to profit from joint ventures, which is not recognized as cash flow. Dividends received from joint ventures are recognized as cash flow from operating activities. Sagax adopts a conservative approach to the assumption of risk and endeavors to achieve well-balanced fixed interest and loan maturity periods to secure operating cash flow. The average fixed-interest period was 3.1 (3.4) years at the end of the quarter. The long fixed-interest period reduces interest-rate sensitivity but results in a higher average interest rate than a shorter fixed-interest period. The company also endeavors to have a low refinancing risk. The average maturity period was 3.8 (4.7) years at the end of the quarter. The company has three classes of shares: Class A common shares, Class B common shares, and preference shares. The preference shares attract investor categories that value a steady stream of dividends. The preference shares diversify Sagax s capital base and allow the company to increase the Group s equity without increasing the number of common shares. Class B shares have been issued to positively impact the liquidity and pricing of common shares while contributing to enhancing the company s financial flexibility. Management strategy Sagax pursues efficiency and a long-term approach in its management strategy. The management strategy includes actively pursuing long leases. This applies equally to new leases and to the management of existing leases. The company s policy is to abstain from attempting to maximize rent levels at all points of time in favor of reaching lease agreements of a longer duration with solvent tenants. This is regarded as being more advantageous since it reduces the risk of vacancies, while leading to reduced costs for letting premises and adapting premises to tenant needs. On June 3, the average remaining term under the company s leases was 7.4 years (7.7). Strategy for tenants Sagax endeavors to attract reputable and creditworthy tenants. The company mainly enters into triple net leases and that are thus only affected to a limited extent by changes in consumption or changed rates, pertaining to such utilities as heating, electricity, property tax, water and sewage. Strategy for the rental market Sagax invests primarily in regions experiencing stable population growth and that have diversified business activities. Sagax s greatest exposure to the rental market occurs in Stockholm and Helsinki, which are the markets regarded as offering the best potential for long-term growth in the Nordic region. The risk of a decline in the leasing rate and rent levels due to a weaker rental market is regarded as low in view of the stable demographic growth and the diversified business operations in these regions. Read more about this in the Annual Report for. Market value and area of properties Profit from property management and cash flow s square meters 2,5 2, 1,5 1, 5 25, 2, 15, 1, 5, 1,2 1, 8 6 4 2 26 27 28 Lettable area Market value 29 21 211 212 213 214 26 27 28 29 21 211 212 213 214 Profit from property management, rolling annual value Cash flow from operating activities before change in working capital, rolling annual value Interim Report January - June 3

Earnings, revenue and expenses The profit/loss and cash flow items below refer to the period January to June. The comparative items refer to the year-earlier period. Amounts for the balance-sheet items and comparative figures refer to the position at the end of the period this year and end of the year-earlier period. EARNINGS Profit from property management rose 31% to SEK 516 M (395), of which joint ventures and associated companies accounted for SEK 116 M (16). The increase was mainly attributable to property acquisitions and improved profit from joint ventures. Profit from property management per common share after dilution rose 36% to SEK 2.88 (2.12). Changes in the value of properties increased profit by SEK 81 M (43), of which the revaluation of joint ventures and associated companies accounted for SEK 151 M (89). In total, revaluation of financial instruments had a negative impact totaling SEK 261 M (pos: 86). Fixed-income derivatives accounted for a loss of SEK 268 M (profit: 86), of which joint ventures accounted for SEK 99 M (profit: 44). All changes in the value of financial instruments were unrealized. Falling market interest rates during the period were the reason for the changes in value and the higher reserves for the deficit values of fixed-income derivatives. Profit after tax for the period amounted to SEK 894 M (72). REVENUE Rental revenue increased 19% to SEK 731 M (616). Revenue was positively affected primarily by property acquisitions, as well as revenue-increasing investments in the existing property portfolio. Other revenue of SEK 3 M (2) primarily comprised compensation from insurance companies regarding insurance claims. Profit from property management Economic leasing rate /Quarter 3 25 2 15 1 /Year 1,2 1, 8 6 4 % 1 95 9 85 8 5 2 75 26 27 28 29 21 211 212 213 214 Profit from property management per quarter Rolling annual value 7 26 27 28 29 21 Leasing rate Average, past 12 months 211 212 213 214 Rental revenue /Quarter 4 32 24 16 8 /Year 1,5 1,2 9 6 3 26 27 28 29 21 211 212 213 214 Rental revenue per quarter Rolling annual value 4 Interim Report January - June

CHANGE IN THE ECONOMIC LEASING RATE The economic leasing rate was 95%, compared with 96% at year-end. During the period, the vacancy value rose SEK 16 M (9) due to tenants vacating premises and declined SEK 15 M (7) due to occupancies. Discounts provided on a fixedterm basis amounted to SEK 18 M (2) on an annual basis at the end of the period, up SEK 1 M during. The terms for the discounts are described in the table below. Stockholm and Helsinki accounted for 68% (72) of the vacancy value. The closing vacancy value was SEK 77 M (69), a net increase of SEK 18 M during the period because of vacancies totaling SEK 17 M in acquired properties, mainly in Finland. FUTURE VACANCY CHANGES Notice of termination had been served for leases with a rental value of SEK 4 M (36) at the end of the period, of which notice of renegotiation accounted for SEK 3 M (1) and notice of vacating the premises for SEK 37 M (35). Of the leases for which notice of vacating the premises had been received, vacancies corresponding to SEK 3 M will occur in and SEK 34 M during the period 217-218. The rate of vacating premises is described in the table below. New lettings that have not yet been occupied reduced the adjusted vacancy value by SEK 22 M (7). The adjusted closing vacancy value was SEK 95 M (97), a net increase of SEK 29 M in of which SEK 17 M was due to vacancies in acquired properties and SEK 11 M was due to the aforementioned increase in notices being served on leases for vacating properties, but which have not yet been vacated. PROPERTY EXPENSES Operating and maintenance costs rose to a total of SEK 67 M (57). The increase was due primarily to property acquisitions during the past 12 months. Property tax and site leaseholds amounted to SEK 31 M (27). Costs for property administration amounted to SEK 15 M (11). Vacancy changes Jan-Dec Opening vacancy for each year 59 74 Vacancies 16 28 Occupancies 15 28 Change in discounts provided 1 11 Vacancy value, acquired properties 17 2 Vacancy value, sold properties 2 5 Change in exchange rates 1 Closing vacancy value 77 59 Terminated for renegotiation 3 2 Terminated lease, not vacated 37 28 New letting, not occupied 22 23 Adjusted closing vacancy value 95 66 Terms for discounts provided Year of maturity 13 217 3 218 1 219 22 >22 1 Total 18 Leases terminated for vacancy Year of vacancy No. of leases Rental value, 14 3 217 15 27 218 4 7 Total 33 37 Vacancies, July 1, Area Rental value, Vacancy value, 1) Economic vacancy rate 1) Lettable area, sqm Vacant area, sqm Leasing rate by area vacancy rate Stockholm 586 4 7% 611, 39, 6% Helsinki 374 12 3% 381, 11, 3% Rest of Sweden 222 5 2% 46, 17, 4% Rest of Finland 323 11 4% 489, 19, 4% Other 116 9 8% 17, 4, 3% Total 1,621 77 5% 2,48, 89, 4% 1) The vacancy value and vacancy rate both into account both vacancies and discounts provided. Interim Report January - June 5

CENTRAL ADMINISTRATION Costs for the Group s central administration amounted to SEK 3 M (29). Administration costs increased year-on-year due to the growth of the company. The Parent Company, AB Sagax, is responsible for stock market issues, such as financial reporting and stock market information. The Parent Company is also responsible for credit market issues, such as borrowing and financial risk management. Services between Group companies are charged on commercial terms and conditions and in accordance with market-based pricing. Intra-Group services comprise management services and internal interest charging. During the period, the Parent Company s fees for property and company management from Group companies amounted to SEK 16 M (15) and from joint ventures to SEK 8 M (7). The Parent Company s income statement and balance sheet are shown on page 19. At the end of the period, the Group had 38 (33) employees, of whom 16 (12) were women. 25 employees (22) work at the Parent Company and are stationed at the company s office in Stockholm, 12 employees (1) work in one of the Finnish subsidiaries and are stationed in Helsinki and one employee (1) works in France and is stationed in Paris. The other subsidiaries have no employees. Functions such as property maintenance and on-call operations are outsourced. PROFIT FROM JOINT VENTURES AND ASSOCIATED COMPANIES Profit from joint ventures and associated companies amounted to SEK 116 M (16) and pertained to Sagax s shares in the earnings of the company s joint ventures and associated companies; refer also to page 12 for more information. Profit for the period amounted to SEK 132 M (239), of which profit from property management accounted for SEK 116 M (16) M, changes in the value of fixed-income derivatives for an expense of SEK 99 M (profit: 44) and changes in the value of properties for SEK 151 M (89). Profit was impacted by SEK 37 M (44) in deferred tax. NET FINANCIAL ITEMS Financial expenses amounted to SEK 193 M (27). The average interest rate was 3.2% (3.4) at June 3,. During the past 12 months, interest-bearing liabilities have increased to SEK 11,61 M (9,36) due to financing of property acquisitions. For more information about financing at Sagax, see page 13. The debt ratio has successively declined over time in parallel with a rise in the interest coverage ratio; see diagram below. This means that financial expenses have declined in relation to Group revenues. Interest-bearing net debt averaged 8.7 (8.4) times net operating income for the past 12 months. REVALUATION OF PROPERTIES At June 3,, the property portfolio comprised 414 (21) properties with a market value of SEK 18,222 M (14,378). The value trend for operations in Sweden was an increase of SEK 221 M (329) while the value trend for foreign operations amounted to SEK 431 M (12). New lettings and renegotiations of leases increased the market value of the properties by SEK 237 M (87), primarily due to the extension of the lease with medical devices company Baxter until 237 for production facilities in Germany. Vacancies and renegotiations reduced the value by SEK 27 M (33). The general change in market value for the company s properties amounted to SEK 441 M (287), primarily due to lower yield requirements in the market. The market value of the property portfolio was revalued by a total amount of SEK 652 M (341), excluding currency effects. The change in the market value of the property portfolio is also described on page 11. Debt ratio and interest-coverage ratio Net debt/net operating income Interest-coverage ratio, % 4 3 2 Debt ratio, % 12 9 6 Multiple 11 1 9 8 1 26 27 28 29 Interest-coverage ratio Debt ratio 21 211 212 213 214 3 7 6 5 26 27 28 29 21 211 212 Net debt/net operating income Covered net debt/net operating income 213 214 6 Interim Report January - June

Unrealized changes in value New lettings/renegotiations 36 Vacancies/Renegotiations 4 General market value changes 189 Sub-total, Sweden 221 New lettings/renegotiations 21 Vacancies/Renegotiations 23 General market value changes 252 Sub-total, Foreign 431 Total unrealized changes in value 652 The weighted yield requirement used in the valuations was 7.6% (7.6). The weighted cost of capital for the present value calculation of cash flows and residual values amounted to 8.2% (8.7) and 9.% (9.5), respectively. See also the section on analysis and general conditions on page 11. REVALUATION OF FINANCIAL DERIVATIVES Sagax s financial derivatives at June 3, comprised fixedincome derivatives in the form of nominal interest-rate swaps and interest-rate caps. All financial derivatives are recognized at market value and changes in market value are recognized as profit or loss. Changes in value for the period amounted to negative SEK 162 M (pos: 55) net, which comprised unrealized changes in value. The negative change in value was due to falling market interest rates during the period. At the end of the period, the reserve for the deficit value of fixed-income derivatives was SEK 635 M (479); refer to the section on financing on page 13. Sagax s earnings were also impacted negatively by a downward revaluation of SEK 99 M (pos: 44) in fixed-income derivatives in Sagax s joint ventures. In its consolidated financial statements, Sagax continuously recognizes the company s share of deficit values of the fixedincome derivatives of its joint ventures. TAX Sagax recognizes a current tax expense of SEK 15 M (16) primarily pertaining to foreign operations. The deferred tax expense for the period amounted to SEK 111 M (128). The Group s deferred tax assets and tax liabilities amounted to SEK M (2) and SEK 596 M (555), respectively, at the end of the period. Sagax is not involved in any tax disputes. Deferred tax liabilities by country Jun 3, Sweden 274 Finland 26 Germany 61 Denmark 1 Tax liabilities 596 CASH FLOW Cash flow from operating activities before changes in working capital amounted to SEK 517 M (322). Changes in working capital had a positive impact of SEK 43 M (neg: 7) on cash flow. Investing activities had a negative impact of SEK 1,248 M (976) on cash flow, while cash flow from financing activities contributed SEK 685 M (781) to Sagax. In total, cash and cash equivalents declined SEK 4 M (12) during the period. See page 16 for the statement of cash flows. Interim Report January - June 7

Forecast and current earnings capacity FORECAST FOR Profit from property management for, meaning profit before revaluations and tax, is expected to amount to SEK 1,6 M based on the current property portfolio and announced acquisitions and divestments. The forecast was presented when the Interim Report for January-March was published. CURRENT EARNINGS CAPACITY The table below shows Sagax s earnings capacity on a 12-month basis at July 1,. It is important to note that this capacity cannot be compared with a forecast for the forthcoming 12 months because it does not contain assessments about, for example, future vacancies, the interest-rate scenario, currency effects, rent trends or changes in value. Nor does it take into account repayments, when agreed rent supplements come into effect or when discounts provided cease to apply. Sagax reports its current earnings capacity in conjunction with interim reports and year-end reports. The rental value is based on contractual rental revenue on an annual basis, with supplements for estimated market rents for vacant premises. Property expenses are based on actual outcomes over the past 12 months adjusted for the holding period. Central administration costs are based on actual outcomes over the past 12 months. Net financial items are calculated based on interest-bearing liabilities and assets on the balance sheet date. Expenses for interest-bearing liabilities are based on the Group s estimated average interest rate, with the addition of financing costs allocated over time. Tax is calculated at the standard tax rate of 22% and is deemed to predominantly comprise deferred tax. Sagax s share of profit in joint ventures and associated companies is calculated in accordance with the same assumptions as for Sagax, taking into account the size of the participation. Current earnings capacity Current earnings capacity before tax Jul 1, Jan 1, Rental value 1,621 1,453 Vacancy 77 59 Rental revenue 1,544 1,394 Property expenses 221 195 Net operating income 1,323 1,199 Central administration 58 57 Joint ventures and associated companies 236 236 Net financial items 393 371 Profit from property management 1,19 1,8 Tax 244 222 Profit after tax 865 786 of which, holders of preference shares 117 117 of which, holders of common shares 748 67 1,2 1, 8 6 4 2 211 212 213 214 Profit from property management Yield and lending rate Difference between yield and lending rate % 1 % 7 8 6 6 5 4 4 3 2 2 1 26 27 28 29 Yield of Sagax s properties Sagax s average lending rate Ten-year swap rate 21 211 212 213 214 26 27 28 29 21 211 212 213 Difference between yield of Sagax s properties and ten-year swap rate Difference between yield of Sagax s properties and Sagax s average interest rate 214 8 Interim Report January - June

Property portfolio At June 3,, the property portfolio comprised 414 (21) properties with a lettable area of 2,48, square meters (1,77,). The average remaining lease term was 7.4 years (7.7). The focus of the portfolio is on the Stockholm region where 4% (42) of the market value and 36% (41) of the rental value is concentrated. At year-end, the total rental value and contractual annual rent amounted to SEK 1,621 M (1,33) and SEK 1,544 M (1,261), respectively. This corresponds to an economic leasing rate of 95% (95). INVESTMENTS During the period, Sagax invested SEK 1,354 M (77), of which property acquisitions accounted for SEK 1,182 M (698). Properties were acquired for SEK 1,54 M in Finland and for SEK 15 M in Paris. 193 properties with a total lettable area of 172,5 square meters were acquired during the period; see table below. In Finland, a property portfolio comprising two superstores and 184 local supermarkets in Finland for a total of approximately SEK 83 M was acquired during the second quarter. A total of SEK 172 M (72) was invested in the existing property portfolio. SEK 7 M of the investments for the period were made against rent supplements, SEK 24 M was invested in conjunction with new lettings, SEK 63 M in conjunction with new production and SEK 15 M pertained to property maintenance. New builds at the Induktorn 35 property in Stockholm were completed according to plan during the quarter. The acquisition of a property portfolio in France comprising 14 properties for SEK 455 M was agreed during the period, with possession to be taken during the third quarter of. Agreements were also signed in separate transactions during the period for the acquisition of one property in Stockholm and one property in Paris for which possession will be taken in the third quarter of. After the end of the period, possession was taken of one property in Stockholm and one property in the Rest of Finland following their acquisition. DIVESTMENTS Five properties with a total lettable area of 5,5 square meters were divested for a total of SEK 121 M during the period; see table on page 1. Agreements were also signed during the second quarter for the divestment of three properties in the Rest of Finland, which will be vacated during the third quarter of for a total of SEK 455 M. The divestment refers to two superstores and one local supermarket from the aforementioned property portfolio acquired during. Agreements were also signed for the divestment of a property in the Rest of Sweden encompassing 2,2 square meters of lettable area. The property will be vacated in the third quarter of. YIELD The properties yield is a yield measurement whereby the net operating income for the period, adjusted for holdings, is compared to the properties carrying amounts at the end of the period. The yield provides an overview of profit generation before financial expenses and central administration costs are taken into account. The yield reported by Sagax for the period was 7.2% (7.4), see below. Calculation of yield Jun 3 Jun 3 Net operating income according to statement of comprehensive income 621 523 Addition for translation to annual value 621 523 Holdings adjustment for acquisitions and divestments 69 16 Currency translation to closing day rate 6 6 Adjusted net operating income 1,317 1,56 Carrying amount of properties 18,222 14,334 Yield, % 7.2 7.4 Property acquisitions January-June Property Municipality Segment Lettable area, sqm Miklaholt 2 Stockholm Stockholm 1,9 19 Rue Blanc Mesnil Blanc Mesnil (Paris) Other 13,8 First quarter 15,7 Muonamiehentie 14 (91-46-13-27) Helsinki Helsinki 2,8 Niittytie 13 (92-68-11-9) Vantaa Helsinki 7,4 Niittyvillankuja 2 (92-68-1-23) Vantaa Helsinki 6,1 Koskelontie 27 A Espoo Helsinki Koskelontie 27 B Espoo Helsinki Property portfolio (3 supermarkets) Tuusula Helsinki 4,1 Property portfolio (183 supermarkets) 86 different Finnish municipalities Rest of Finland 152,1 Second quarter 172,5 Total 188,2 Interim Report January - June 9

Property sales January-June Property Municipality Segment Lettable area, sqm Kungsängen 32:6 Uppsala Rest of Sweden 1, Kungsängen 32:8 Uppsala Rest of Sweden 1,1 Stockholmsledet 11 Lund Rest of Sweden First quarter 2,2 Instrumentet 14 Stockholm Stockholm 1,9 Grävskopan 2 Borlänge Rest of Sweden 1,4 Second quarter 3,3 Total 5,5 Summary of property portfolio July 1, Segment No. of properties Lettable area, sqm Vacant area, sqm Market value Rental revenue SEK per sqm Rental value, Percentage of rental value Economic leasing rate Share Stockholm 74 611, 39, 7,356 12, 586 36% 93% 546 35% Helsinki 6 381, 11, 3,642 9,6 374 23% 97% 363 24% Rest of Sweden 53 46, 17, 2,575 5,6 222 14% 98% 217 14% Rest of Finland 216 489, 19, 3,396 6,9 323 2% 96% 312 2% Other 11 17, 4, 1,253 11,7 116 7% 92% 17 7% Total 414 2,48, 89, 18,222 8,9 1,621 1% 95% 1,544 1% Year of maturity of annual rent 2 16 12 8 4 217 218 219 Property investments January-June Property acquisitions 22 221 222 223 224 225 226 227 228 229 23 >23 Existing portfolio Total Stockholm 23 48 71 Helsinki 23 77 37 Rest of Sweden 1 1 Rest of Finland 824 46 87 Other 15 15 Total 1,182 172 1,354 Group s rental value Other 7% Rest of Finland 2% Rest of Sweden 14% Lease terms Stockholm 36% Helsinki 23% Contractual annual rent Year of No. of maturity leases Area, sqm Share 152 49, 46 3% 217 22 126, 116 7% 218 12 119, 12 8% 219 232 198, 156 1% 22 53 264, 195 13% >22 218 1,21, 912 59% Total 995 1,965, 1,544 1% 1 Interim Report January - June

Market value of property portfolio Sagax prepares its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). Sagax has chosen to recognize its properties at fair value in accordance with the Fair Value Method. At June 3,, the total market value of Sagax s 414 (21) properties was SEK 18,222 M (14,378). The depreciation of the SEK against the EUR during the period led to foreign property values increasing SEK 149 M (decline: 161). The total unrealized change in value during the period was SEK 652 M (341). Refer also to the table Unrealized changes in value on page 7. VALUATION METHOD AND IMPLEMENTATION The valuations were carried out in accordance with generally accepted international valuation methods. As of June 3,, all valuation objects were valued separately by authorized property appraisers from independent valuation agencies, except for three Finnish properties that were valued in accordance with agreed divestments and the five German properties which, as a result of high valuation costs in Germany, will only be valued externally at year-end. The principle method of appraisal used was cash flow calculations in which the present value of net operating income, investments and residual values was calculated. The calculation period was adjusted to the remaining term of existing leases and varies between five and 2 years. As a rule, the calculation period is ten years. All properties have been inspected over the past three-year period. These inspections include public areas and a selection of premises with specific emphasis on major tenants and vacant premises. The purpose of the inspections is to assess the properties overall standard, maintenance requirements, market position and the attractiveness of the premises. ANALYSIS AND GENERAL CONDITIONS The cost of capital for the present value calculation of cash flows (5.5 12.%), the cost of capital for the present value calculation of residual values (6.3 14.%) and the yield requirement for the residual value calculations (5.8 15.%) are based on analyses of transactions carried out and on individual assessments of the risk level and market position of each property. The weighted cost of capital for the present value calculation of cash flows and residual values for the property portfolio was 8.2% (8.7) and 9.% (9.5), respectively. The weighted yield requirement amounted to 7.6% (7.6) at June 3,, compared with an average yield requirement of 7.7% at December 31,. By comparison, the yield reported by Sagax for the period was 7.2% (7.4). Weighted yield requirements are compared with the recognized yield over time below. Change in carrying amount of properties Yield compared with yield requirement Property portfolio, December 31, 16,189 225 Acquisition of properties 1,182 193 Investments in the current portfolio 172 Property sales 121 5 Subdivision of property 1 Translation difference regarding foreign property values 149 Unrealized changes in value 651 Property portfolio, June 3, 18,222 414 No. % 1 8 6 4 2 28 29 21 211 212 213 Reported yield Yield requirement used in valautions Yield on 1-year government bonds 214 Market value of properties Other 7% (SEK 1,253 M) Rest of Finland 19% (SEK 3,396 M) Rest of Sweden 14% (SEK 2,575 M) Helsinki 2% (SEK 3,642 M) Stockholm 4% (SEK 7,356 M) Interim Report January - June 11

Joint ventures and associated companies Sagax s joint ventures and associated companies contributed a total of SEK 116 M (16) to profit from property management during the period. Sagax s share of changes in the value of properties amounted to SEK 151 M (89) and the share of changes in the value of fixed-income derivatives was a negative SEK 99 M (pos: 44) during the period. The carrying amount of Sagax s share of equity in joint ventures and associated companies was SEK 1,193 M (1,73) at June 3,. Sagax owns 5% of Söderport Holding AB, with the remaining share owned by Hemfosa Fastigheter AB. Via Hemsö Intressenter AB, Sagax indirectly owns 15% of Hemsö Fastighets AB, with the remaining share owned by the Third Swedish National Pension Fund. During the period, Sagax also sold the company s shares in a small associated company. SÖDERPORT HOLDING AB Commissioned by Söderport, Sagax accounts for the property management and financial administration of the Söderport Group. Hemfosa performs property management activities in Gothenburg. A total of 46% of Söderport s lettable property area of 667, square meters was located in Stockholm at June 3,. Söderport s economic vacancies amounted to SEK 22 M (3) at the end of the period, corresponding to a vacancy rate of 4% (5). Of the economic vacancies, SEK 8 M (9) comprised fixed-term rent discounts provided for new lettings. These discounts corresponded to 38% (31) of the economic vacancies, equivalent to 1.5 percentage points of the vacancy rate. At the end of the period, Stockholm accounted for 65% of the vacant area. HEMSÖ INTRESSENTER AB Hemsö Fastighets AB conducts operations in Sweden, Germany and Finland. Operations consist of owning, managing and developing public properties. The company s property portfolio encompasses 33 properties with a total property value of SEK 28.8 billion at June 3,. The properties, which are located in the three Swedish metropolitan regions of Stockholm, Gothenburg and Malmö, accounted for 47% of the properties market value. The foreign property portfolio accounted for 16% of the properties market value. Of Hemsö s properties, 158 are residences for the elderly, 89 school premises, 74 health care premises and nine properties for the justice and legal sector. A total of 58% of Hemsö s rental value derives from municipalities, county councils or the state. A total of 1,776 leases with an average term of 7.8 years combined with financially stable tenants and a low vacancy rate result in stable rental revenue. More information on Hemsö Fastighets AB is available on the company s website, hemso.se. Sagax s joint ventures Jun 3 Söderport Hemsö Jun 3 Jun 3 Jun 3 Sagax s participating interest, % 5 5 15 15 Rental revenue, 27 263 1,69 989 Profit from property management, 12 12 512 452 Profit for the period, 182 27 281 628 Sagax s share of profit from property management, 6 6 54 45 No. of properties 49 68 33 32 Rental value, 538 593 2,25 2,32 Properties market value, 5,582 5,619 28,763 24,66 Lettable area, sqm 667, 749, 1,569, 1,461, Lease term, years 5.8 4.9 7.8 7.6 Economic vacancy rate, % 4 5 3 4 Interest-bearing liabilities. 3,232 3,433 19,814 16,643 Capital tied-up, years 3.6 4.6 2.6 2.8 Fixed interest, years 3.8 1) 3.5 3.6 3.6 Market value of fixed-income derivatives, 489 421 1,74 685 1) It is assumed that in September Swedbank will utilize its right to extent the interest-rate swap agreement of SEK 2,88 to 221. 12 Interim Report January - June

Financing EQUITY At the AGM on May 3,, it was resolved that SEK 299 M (246) would be distributed to shareholders. Consolidated shareholders equity amounted to SEK 6,621 M (5,52) at June 3,. INTEREST-BEARING LIABILITIES Sagax s interest-bearing liabilities at the end of the period amounted to SEK 11,61 M (9,36). Of these interest-bearing liabilities, an amount corresponding to SEK 4,313 M (3,534) was recognized in EUR. Interest-bearing net debt amounted to SEK 11,346 M (9,165), corresponding to 62% (64) of the market value of the properties. Interest-bearing gross debt to banks corresponded to 42% (53) of the market value of the properties at June 3,. The remaining gross debt corresponded to 22% (12) of the properties market value and comprised listed bond loans of SEK 2,869 M (1,753) and commercial paper of SEK 1,151 M ( ). Sagax s two commercial paper programs allow the company to implement issues in SEK and EUR. The limits are SEK 1,5 M and EUR 2 M, and the maximum term is one year. At June 3,, commercial paper totaling SEK 1,151 M ( ) was outstanding with an average remaining term of.3 years. Sagax has available long-term credit facilities that cover all outstanding commercial paper at any time. Sagax raised a total of SEK 1,451 M in new loans, of which SEK 752 M consisted of an increase in issued commercial paper and SEK 578 M in issued bond loans. SEK 5 M was repaid during the period. Interest-bearing liabilities rose SEK 81 M (decline: 147) due to exchange-rate fluctuations. In accordance with IAS 39, allocated borrowing costs of SEK 73 M (6) reduced interest-bearing liabilities in the balance sheet. Interest-bearing liabilities of SEK 11,528 M (9,3) were recognized. The average remaining fixed-interest period and loan maturity was 3.1 years (3.4) and 3.8 years (4.7), respectively, at the end of the period. The average interest rate for the company s interest-bearing liabilities was 3.2% (3.4) including effects of derivatives at the end of the period. The average interest rate has been lowered during the past 12 months as a consequence of new borrowing at lower interest rates and renewed fixedincome derivatives at lower interest rates. To limit interest-rate risk and increase the predictability of the company s profit from property management, interest-rate caps and interest-rate swaps are utilized with a total nominal value of SEK 6,589 M (5,57), of which SEK 4,439 (4,499) pertain to interest-rate swaps with an average interest rate of 2.5% (2.7), see following table. Accordingly, the company s profit from property management will be affected by changes in general interest rates by only a limited extent in the foreseeable future; refer to the sensitivity analysis on page 26. The reserve for the negative market value of fixed-income derivatives rose by SEK 169 M (79) during the period. The total market value of Sagax s fixed-income derivatives had a deficit value of SEK 635 M (479) on the balance sheet date. The reserve of SEK 635 M will be gradually dissolved and recognized in profit and loss by the expiry date of the derivative contracts, regardless of the interest-rate scenario. All other things being equal, the time factor alone entails that reserves for the deficit value of fixed-income derivatives in Sagax will be dissolved in a total amount of SEK 124 M over the next year. Over a five-year period, based on the time factor alone and assuming unchanged market interest rates, a total of SEK 552 M would be recognized as revenue in the consolidated financial statements. WORKING CAPITAL AND LIQUIDITY Sagax s working capital, excluding current interest-bearing liabilities, amounted to a negative SEK 118 M (149) at June 3,. At the same time, Sagax s available access to funds was SEK 939 M (592), of which SEK 247 M (187) in the form of bank deposits and SEK 692 M (45) in the form of unutilized lines of credit. Lines of credit used to cover outstanding commercial paper are not included in available liquidity. No additional collateral needs to be pledged to utilize these lines of credit. Fixed-interest period and loan maturity June 3, Fixed interest Loan maturity Interest-rate swaps Year of maturity Interest rate Share Share Interest rate 4,644 2.5% 38% 62 1% 217 359 5.8% 3% 1,594 11% 218 1,95 2.1% 1% 1,299 12% 219 76 2.7% 6% 2,248 2% 477 1.% 22 622 4.1% 6% 1,712 15% 514 3.6% >22 4,175 4.% 37% 4,686 42% 3,448 2.6% Total/average 11,61 3.2% 1% 11,61 1% 4,439 2.5% Derivative contracts June 3, Nominal amount Years to maturity Market value Jun 3, Market value Dec 31, Change for the period Nominal interest-rate swaps 4,439 6. 636 469 167 Interest-rate caps 2,15 3.3 1 3 2 Total 6,589 5.1 635 466 169 Interim Report January - June 13

Statement of comprehensive income Apr-Jun Apr-Jun Jan-Dec Rolling 12 months Rental revenue 731 616 378 39 1,291 1,45 Other revenue 3 2 2 2 3 Operating expenses 52 47-19 17 83 88 Maintenance costs 15 1-8 5 25 29 Site leaseholds 9 8-4 4 17 17 Property tax 22 19-11 1 4 43 Property administration 15 11-9 6 23 28 Net operating income 621 523 328 267 1,14 1,22 Central administration 3 29 13 15 57 58 Profit from joint ventures and associated companies 132 195 86 141 439 375 of which, profit from property management 116 16 62 59 233 243 of which, changes in value 53 133 52 126 32 24 of which, tax 37 44 28 44 115 18 Financial income 2 3 1 3 4 3 Financial expenses 193 27 99 118 39 375 Profit including changes in value of joint ventures and associated companies 532 485 33 278 1,1 1,147 of which, profit from property management 516 395 279 196 895 1,15 Changes in value: Properties, realized 1 1 1 Properties, unrealized 651 341 455 298 677 987 Financial instruments, realized 13 13 13 Financial instruments, unrealized 162 55 63 84 67 15 Profit before tax 1,2 868 695 647 1,832 1,983 Deferred tax 111 132 67 12 139 12 Current tax 15 16 6 9 12 1 Profit for the period 894 72 622 536 1,681 1,853 Other comprehensive income items that may be reversed to profit and loss: Translation differences for foreign operations 86 7 52 12 92 34 Share of other comprehensive income for joint ventures 6 2 3 1 8 Translation differences pertaining to hedge accounting in foreign operations 24 18 14 4 1 32 Tax on items that may be reversed to profit and loss 5 4 3 1 8 1 Comprehensive income for the period 956 67 659 552 1,599 1,854 Earnings per common share, SEK 5.28 4.18 3.75 3.2 9.88 1.97 Earnings per common share after dilution, SEK 5.27 4.16 3.74 3.18 9.85 1.94 Average number of common shares, millions 158.3 158.3 158.3 158.3 158.3 158.3 Average number of common shares after dilution, millions 158.7 158.8 158.7 158.8 158.8 158.7 14 Interim Report January - June

Condensed statement of financial position Jun 3 Jun 3 Dec 31 Investment properties 17,76 14,334 16,68 Investment properties for sale 462 121 Participations in joint ventures and associated companies 1,193 1,73 1,259 Deferred tax assets 2 Financial derivatives 1 4 Other fixed assets 98 14 28 Total fixed assets 19,515 15,549 17,48 Cash and bank balances 247 187 251 Other current assets 179 112 112 Total current assets 426 299 363 Total assets 19,941 15,849 17,843 Equity 6,621 5,52 5,981 Long-term interest-bearing liabilities 9,914 9,163 9,959 Deferred tax liabilities 596 555 479 Financial derivatives 636 481 47 Other long-term liabilities 17 1 13 Total long-term liabilities 11,162 1,29 1,921 Commercial paper 1,151 399 Other current interest-bearing liabilities 463 137 141 Other current liabilities 544 45 41 Total current liabilities 2,158 587 94 Total equity and liabilities 19,941 15,849 17,843 Interim Report January - June 15

Statement of cash flows Apr-Jun Apr-Jun Jan-Dec Rolling 12 months Profit before tax 1,2 868 695 647 1,832 1,983 Change in value of financial instruments 162 42 63 71 54 15 Change in value of properties 65 341 455 298 677 986 Loss from ownership of joint ventures and associated companies 131 195 87 141 438 374 Loss from joint ventures and associated companies 128 11 128 11 63 18 Dissolution of allocated borrowing costs 11 28 5 24 35 18 Tax paid 12 5 6 4 1 17 Other items not included in cash flow 1 2 9 1 9 Cash flow from operating activities before changes in working capital 517 322 334 169 75 944 Cash flow from changes in current receivables 27 4 13 5 15 38 Cash flow from changes in current liabilities 7 3 42 25 28 11 Cash flow from operating activities 56 315 363 189 763 1,7 Acquisition of properties 1,182 698 1,22 319 2,199 2,559 Property sales 121 35 37 158 Investments in existing properties 172 72 133 29 22 32 Acquisition of shares 58 35 26 114 137 Capital contribution to joint ventures 45 45 45 Advance payments for property acquisitions 31 123 123 31 Divestment of participations in associated companies 74 74 74 Increase in other fixed assets 1 2 1 1 Cash flow from investing activities 1,248 976 1,47 544 2,523 2,797 Issue of shares 99 99 Dividend paid to shareholders 24 184 211 156 242 298 Incentive Plan 18 15 18 15 15 18 Borrowings 1,437 1,466 957 1,23 3,85 3,56 Repayment of loans 5 557 85 527 957 9 Redemption of financial derivatives 3 3 3 Increase in other long-term liabilities 6 2 2 5 8 Reduction in long-term liabilities Cash flow from financing activities 685 781 645 475 1,945 1,848 Cash flow for the period 4 12 4 119 184 58 Exchange rate differences in cash and cash equivalents Change in cash and cash equivalents 4 12 4 119 184 58 Cash and cash equivalents at beginning of period 251 67 287 68 67 187 Cash and cash equivalents at the end of period 247 187 247 187 251 247 16 Interim Report January - June

Statement of changes in equity Share capital Other contributed capital Reserves, translation differences Profit earned incl. net. profit for the period Total equity Equity, December 31, 214 376 1,65 84 2,479 4,544 New issue of preference shares 5 94 99 Transaction costs 1 1 Dividends 246 246 Redemption of Incentive Plan 14 14 Incentive Plan 1 1 Comprehensive income, January-June 41 711 67 Equity, June 3, 381 1,698 43 2,929 5,52 Comprehensive income, July-December 41 97 929 Equity, December 31, 381 1,698 2 3,899 5,981 Dividends 299 299 Redemption of Incentive Plan 2 2 Incentive Plan 2 2 Comprehensive income, January-June 62 894 956 Equity, June 3, 1) 381 1,698 65 4,476 6,621 1) Equity is attributable in its entirety to the Parent Company s shareholders. Segment information Changes in value, properties Profit items Profit from property per segment Rental revenue 1) management Unrealized Realized Income before tax Stockholm 275 237 158 99 25 233 362 332 Helsinki 169 143 14 8 6 22 164 13 Rest of Sweden 19 116 75 69 16 96 1 91 165 Rest of Finland 123 71 76 46 23 1 279 47 Other 55 5 32 28 168 12 2 16 Sub-total 731 616 445 322 652 341 1 1,96 663 Financial instruments 162 42 Joint ventures 116 16 127 89 24 1 132 195 Other, non-specified 45 33 45 32 Total 731 616 516 395 779 43 23 1 1,2 868 Asset items per segment Market value properties Jun 3 Jun 3 Investments properties Acquisitions properties Divestment properties Stockholm 7,356 6,23 48 58 23 245 5 Helsinki 3,642 2,94 77 1 23 439 Rest of Sweden 2,575 2,842 1 4 71 Rest of Finland 3,396 1,43 46 824 Other 1,253 936 15 14 Sub-total 18,222 14,378 172 72 1,182 698 121 Other, non-specified Total 18,222 14,378 172 72 1,182 698 121 1) All rental revenue pertains to external tenants. Interim Report January - June 17

Key performance indicators Jan-Dec 214 Jan-Dec 213 Jan-Dec 212 Jan-Dec 211 Jan-Dec Property-related Yield, % 7.2 7.4 7.4 7.6 7.7 7.8 7.7 Surplus ratio, % 85 85 86 86 87 86 86 Leasing rate by area, % 96 95 97 95 93 95 97 Economic leasing rate, % 95 95 96 94 92 93 93 Lease term, years 7.4 7.7 7.4 8.2 8. 8.4 7.9 Lettable area, s of square meters 2,48 1,77 1,86 1,634 1,336 1,159 1,144 No. of properties 414 21 225 184 141 134 136 Financial Return on total capital, % 6 7 7 7 7 7 7 Return on equity, % 28 3 32 18 24 15 6 Average interest rate, % 3.2 3.4 3.3 4.1 4.4 4.6 4.5 Fixed-interest period incl. derivatives, year 3.1 3.4 3. 3. 3.7 5.2 4.3 Capital tied-up, years 3.8 4.7 4.2 3.2 3.5 4.3 2.9 Equity/assets ratio, % 33 32 34 32 32 28 23 Debt ratio, % 58 59 59 59 6 62 68 Net debt/market value of the properties, % 62 64 64 62 64 63 69 Interest coverage ratio, multiple 3.7 2.5 2.9 2.6 2.4 2.2 2.2 1) 2) Data per common share Share price at the end of period, SEK 75.25 3) 53.25 3) 71.75 3) 44. 3) 24.2 3) 17.14 15. EPRA NAV, SEK 43.4 28.16 35.52 27.23 19.5 14.86 12.76 Equity, SEK 3.42 2.51 26.1 17.49 13.41 8.9 6.99 Equity after dilution, SEK 3.37 2.46 25.93 17.44 13.4 8.9 6.99 Profit, SEK 5.28 4.18 9.88 4.6 4.44 1.82.33 Profit after dilution, SEK 5.27 4.16 9.85 4.5 4.44 1.82.33 Profit from property management, SEK 2.89 2.13 4.92 3.74 2.74 2.15 2.7 Profit from property management after dilution, SEK 2.88 2.12 4.9 3.73 2.73 2.15 2.6 Cash flow, SEK 2.9 1.67 4. 3. 2.12 1.79 1.88 Cash flow after dilution, SEK 2.89 1.66 3.99 2.99 2.12 1.79 1.87 Dividend per share, SEK 1.15.8.55.43.36 No. at end of period, millions 158.3 158.3 158.3 158.3 158.3 147.6 147.6 No. at end of period after dilution, millions 158.5 158.7 158.8 158.7 158.4 147.6 147.6 Average number, millions 158.3 158.3 158.3 158.3 153.9 147.6 146.8 Average number after dilution, millions 158.7 158.8 158.8 158.6 154. 147.6 147.4 Data per preference share Share price at the end of period, SEK 33. 33.8 31.3 36. 31.5 29.6 26.5 Equity, SEK 31. 31. 32. 32. 32. 32. 32. Profit, SEK 1. 1. 2. 2. 2. 2. 2. Dividend per share, SEK 2. 2. 2. 2. 2. No. at end of period, millions 58.2 58.2 58.2 55.5 5. 5. 37.3 Average number, millions 58.2 57.3 57.8 52.2 5. 37.8 37.3 1) Comparative figures have been adjusted for the bonus issue of Class B shares in 213, by multiplying the number of shares by 11. The conditions of the bonus issue were ten Class B shares for each Class A share. 2) Excluding 1,, Class B shares bought back by AB Sagax. 3) Pertains to the share price for the Class B share. 18 Interim Report January - June

Parent Company Income Statement Jan-Dec Net sales 25 23 47 Administration costs 34 31 62 Loss before financial income and expenses 9 8 15 Loss from participations in Group companies 16 Profit from participations in joint ventures 28 11 11 Financial income 121 3 195 Financial expenses 97 45 24 Profit/loss before tax and appropriations 43 12 28 Group contributions 19 Tax 9 2 Profit/loss for the period 34 12 7 Condensed Parent Company balance sheet Jun 3 Jun 3 Dec 31 Tangible fixed assets 1 1 1 Receivables from Group companies 2,21 1,245 1,844 Other financial fixed assets 2,563 1,544 2,294 Total fixed assets 4,765 2,79 4,139 Cash and bank balances 1 2 67 Receivables from Group companies 2,775 1,613 1,817 Other current assets 45 84 35 Total current assets 2,821 1,717 1,919 Total assets 7,586 4,57 6,58 Equity 1,251 1,518 1,524 Long-term interest-bearing liabilities 2,869 1,998 2,297 Liabilities to Group companies 719 738 738 Deferred tax liabilities 2 Total long-term liabilities 3,588 2,738 3,35 Liabilities to Group companies 1,43 93 989 Other current liabilities 1,317 158 51 Total current liabilities 2,747 251 1,499 Total equity and liabilities 7,586 4,57 6,58 Interim Report January - June 19

The Sagax share and shareholders At the end of the period, Sagax had 7,615 (7,578) shareholders. Market capitalization amounted to SEK 13,981 M (1,54). Sagax has three classes of shares: Class A common shares, Class B common shares and preference shares. Sagax s shares are listed on Nasdaq Stockholm, Mid Cap. There are a total of 13,416,822 Class A shares, 144,858,13 Class B shares and 58,25, preference shares outstanding. In addition, 1,, previously bought back Class B shares were held in treasury. Each preference share entails a preferential right to SEK 2. in annual dividends. The share price trend and information about share trading are provided below. Trade in the shares on the Nasdaq Stockholm Price paid, SEK Turnover rate on an annual basis, % Average trading volume per trading day, Jun 3, Jun 3, Apr-Jun Apr-Jun Apr-Jun Apr-Jun Class A shares 8.75 57.25 2 4.1.1 Class B shares 75.25 53.25 5 14 1.9 4.5 Preference shares 33. 33.8 15 3 1.2 2.5 Price trend of preference shares for the past 12 months SEK Number 4 8 Price trend of Class B shares for the past 12 months SEK 8 Number 8 35 7 7 7 3 6 6 6 25 5 5 5 2 4 4 4 15 3 3 3 1 2 2 2 5 1 1 1 Jul Aug Sep Oct Nov Preference share Dec Jan Feb Mar Apr May Jun Trade number of shares, 1, per week Jul Aug Sep Oct Nov Class B share Carnegie Real Estate Index Dec Jan Feb Mar Apr May Jun Trade number of shares, 1, per week OMX Stockholm_Pl Voting rights and proportion of share capital Class of share No. Voting rights per share Number of votes Proportion of votes Proportion of votes Class A shares 13,416,822 1. 13,416,822 4% 6% Class B shares 145,858,13.1 14,585,813 43% 67% Preference shares 58,25,.1 5,825, 17% 27% Total 217,524,952 33,827,635 1% 1% 2 Interim Report January - June

WARRANTS Sagax has three warrant plans for the company s employees. In total, Sagax s employees hold warrants corresponding to.7% of the number of common shares outstanding. The company s CEO and Board members are not participating in the plans. These plans are valid for three years, encompassing the periods 214-217, -218 and -219. Warrants entitle the holder to subscribe for new common shares in June 217, June 218 and June 219, respectively. The subscription price corresponds to the price paid for the common share at the start of the warrant plans converted using the average share price trend for the listed property companies in accordance with Carnegie s property index (CREX) during the corresponding period. Accordingly, the warrants will have a value on condition that the price performance of the Sagax share exceeds the average for all listed property companies during each three-year period. PROFIT FROM PROPERTY MANAGEMENT PER COMMON SHARE Profit from property management per common share after dilution on a rolling 12-month basis amounted to SEK 5.67 (4.17) which, compared with the share price of the common share at the end of the period, corresponded to a multiple of 13.3 (12.8). EQUITY PER COMMON SHARE Equity per common share after dilution amounted to SEK 3.37 (2.46). EPRA NAV per common share amounted to SEK 43.4 (3.9). For definitions of key ratios, see page 29. The share price for the Class B share at the end of the period was 248% (26) of equity per common share and 173% (177) of EPRA NAV per common share. Key data per common share 1) Jun 3 Jun 3 Dec 31 1) Comparative figures have been adjusted for the bonus issue of Class B shares in 213, by multiplying the number of shares by 11. The conditions of the bonus issue were ten Class B shares for each Class A share. 2) Profit from property management and cash flow pertain to a rolling 12 months. 3) Cash flow pertains to cash flow from operating activities before changes in working capital. 4) See page 29 for definition. 214 Dec 31 213 Dec 31 212 Dec 31 211 Dec 31 Price of Class B share at the end of the period, SEK 75.25 53.25 71.75 44. 24.2 17.14 15. Profit from property management after dilution, SEK 2) 5.67 4.17 4.9 3.73 2.73 2.15 2.6 Cash flow after dilution, SEK 2) 3) 5.22 3.45 3.99 2.99 2.12 1.79 1.87 Equity after dilution, SEK 3.37 2.46 25.93 17.44 13.4 8.9 6.99 EPRA NAV, SEK 4) 43.4 3.9 35.52 27.23 19.5 14.86 12.76 Price of Class B share/profit from property management, multiple 2) 13.3 12.8 14.6 11.8 8.9 8. 7.3 Price of Class B share/cash flow, multiple 2) 3) 14.4 15.4 18. 14.7 11.4 9.6 8. Price of Class B share/equity, % 248 26 277 252 181 212 215 Price of Class B share/epra NAV, % 173 177 22 162 127 116 118 Share price/profit from property management per common share Multiple 25 2 15 1 5 Share price in relation to equity and EPRA NAV % 35 28 21 14 7 26 27 28 29 21 211 212 213 214 26 27 28 29 21 211 212 213 214 Share prince/profit from property management per Class B share, rolling 12 months Share price/equity per Class B share Share price/epra NAV per Class B share Interim Report January - June 21

Shareholder structure June 3, 1) No. of shares No. of shareholders 1 5 3,526 51 1, 842 1,1 2, 82 2,1 5, 1,91 5,1 1, 534 1,1 5, 579 5,1 241 Total 7,615 1) Including shares repurchased by AB Sagax. Shareholder category No. Share of voting power Private individuals residing in Sweden 6,559 9% Private individuals residing abroad 65 1% Companies/institutions in Sweden 658 82% Companies/institutions abroad 333 8% Total 7,615 1% Shareholders by country No. Share of voting power Sweden 7,217 92% Luxembourg 21 3% UK 44 2% Norway 24 1% USA 5 1% Other countries 259 1% Total 7,615 1% Largest shareholders June 3, 1) No. of shares Percentage of Class A shares Class B shares Preference shares Share capital Votes 2) David Mindus and companies 5,15, 37,693,25 775 19.6% 26.% Salén family and companies 1,998,733 17,485,33 78,595 9.% 11.1% Rutger Arnhult and companies 2,847,38 16,122,775 65, 8.8% 13.2% Third Swedish National Pension Fund 12,211,543 5.6% 3.6% Länsförsäkringar Fastighetsfond 11,669,78 5.4% 3.5% Catella Hedgefond 7,995,47 3.7% 2.4% Swedish Foundation for Strategic Research 3,25,45 1.5% 1.% Volvo Pensions Foundation 2,94, 1.4%.9% Avanza Pension 25,363 742,276 2,163,4 1.3%.9% Robur Realinvest 25, 2,5, 1.3% 1.5% Fourth Swedish National Pension Fund 2,858 2,265,699 11,74 1.%.7% Erik Selin Fastigheter 435, 1,795, 1.% 1.8% Robur Småbolagsfond Sverige 133,731 1,863,275.9%.9% ICA-Handlarnas Förbund Finans 1,94,173.9%.6% Sifonen 14, 1,668,45 1,33.8%.9% Stiftelsen Stockholms Sjukhem 1,8,.8%.5% Banque Carnegie Luxembourg 696,382 93,87 5,.7% 2.3% Skandia Liv 143,842 1,426,441.7%.8% SEB S.A. 72,75 123,2 1,332,133.7%.6% Patrik Brummer 1,5,.7%.4% Second Swedish National Pension Fund 1,476,25.7%.4% Total 2 largest shareholders 11,76,697 19,945,987 23,46,239 66.5% 74.3% Other shareholders 1,656,125 34,912,143 35,23,761 33.% 25.7% Sub-total 13,416,822 144,858,13 58,25, 99.5% 1.% Treasury shares held by AB Sagax 1,,.5%.% Total 13,416,822 145,858,13 58,25, 1.% 1.% of which, Board and employees 7,346,411 58,852,863 79,617 3.5% 39.2% 1) Ownership structure at June 3 is based on information from Euroclear Sweden and the Swedish Financial Supervisory Authority s insider register. 2) Voting rights for treasury shares held by AB Sagax have been excluded. 22 Interim Report January - June

On 1 July,, Sagax acquired Tuottajantie 49 (743-5-25-34) in Seinäjoki, Finland. The purchase cost amounts to the equivalent of SEK 117 M in total, including an extension of 6, square meters of warehouse premises at the property, which is expected to be completed during the first quarter of 217. The property will encompass 57, square meters of land and 18, square meters of lettable area following the aforementioned extension. The property was acquired from Tibnor, which rents the entire property for warehouse and distributionpurposes. The lease runs until 235. Tibnor is a division within SSAB and is the Nordic region s leading supplier of steel and metals. Interim Report January - June 23