Total property revenue for the first quarter of 2002 decreased by 2.8 per cent compared to the previous year and amounted to SEK 133.2 (137.1) M. The discrepancy was due to a weaker hotel market and the fact that Easter was in April in 2001. For comparable units and adjusted for the calendar effect the decrease amounted to 1.8 per cent. This had an estimated negative effect of just over SEK 2 M on revenue and income for the period.
Operating net amounted to SEK 110.2 (113.5) M.

The adjusted direct yield for the period was 9.6% (9.7).

Net financial expense for the period amounted to SEK -42.5 (-44.5) M.
Corporate group income, after tax, exclusive of nonrecurring revenue, amounted to SEK 42.2 (45.7) M corresponding to a decrease of SEK 3.5 M.

Cash flow decreased marginally and amounted to SEK 58.0 (59.2) M.

- "Pandox strategy has had the intended effect. The selected market segment has limited the fall in revenue. Active ownership with strategic alliances and variable lease agreements have created high quality hotel products which limits the risk ", says Anders Nissen, Chief Executive Officer, Pandox AB.

Outlook
Economic developments in Pandox' market area remain difficult to predict due to prevailing global uncertainties. Following the steep decline in the hotel market in the autumn, the market has now entered a more normal recessionary pattern where there are as yet no stable trends.

However, Pandox' focused strategy, selected market segment and high quality hotel property portfolio create continued excellent conditions for further development of the company. With the current hotel property portfolio, income before tax in 2002 is forecast to reach SEK 200 M.

The full Interim Report including tables is available to download from the enclosed link.