Pandox: Interim Report - nine months ending September 30, 2001

Total property revenue for the first nine months of 2001 amounted to SEK 430.3 M (349.3). The operating net rose by SEK 69.4 M to SEK 358.7 M (289.3). This increase is mainly attributable to the acquisition of Hotellus, a good hotel market and a high level of valueadding activities in the hotel property portfolio. For comparable units the increase was 4.3 percent.

The adjusted direct yield for the period was 9.6% (9.5).

Net financial expense for the period amounted to SEK -136.5 (-104.4).

Corporate group income, after tax, exclusive of nonrecurring revenue, for the period improved by SEK 19.9 M and amounted to SEK 132.4 M (112.5).

Starting in 2001 the Swedish Financial Accounting Standards Council's recommendation on income tax (RR:9) is applied. All comparative figures in the income statement and balance sheet have been adjusted in accordance with the new accounting principle.

During the period the hotel properties Mr. Chip in Stockholm-Kista and Hotel Högvakten in Helsingborg have been acquired for a total cost of SEK 142 M and with a direct yield of 9 per cent. The hotel properties Sten Stensson Sten in Eslöv and Scandic Karlshamn have been sold with a capital gain of SEK 8.6 M.

Outlook for 2001

Pandox believes that its focused strategy, the high quality of the portfolio and the chosen market segment will remain an excellent base from which the company can be developed. The downturn in demand, as a consequence of the downturn in the economy, will be distributed unevenly depending on town or city, hotel location and standard and brand name. Pandox market segment is expected to show continued good demand. Pandox income after the first nine months is well in line with the earlier forecast for 2001, which means that the forecast of an income, after tax and exclusive of nonrecurring revenue, of SEK 180 M is maintained. The tax that burdens the income consists mainly of deferred tax as the company has substantial loss deductions.

The complete interim report including tables can be downloaded from the enclosed link.