Interim Report January - March 2003

Total property revenue for the first quarter of 2003 increased by 0.6 per cent compared to the previous year and amounted to SEK 134.1 (133.2) M. The increase is due to the positive development of the hotel property portfolio despite a weaker hotel market and the fact that Easter was in March in 2002. For comparable units the increase amounted to 2 per cent. Operating net amounted to SEK 110.8 (110.2) M. The adjusted direct yield for the period was 9.4% (9.6). Net financial expense for the period amounted to SEK -40.4 (-42.5) M. Corporate group income, before tax, exclusive of nonrecurring revenue, increased by SEK 3 M and amounted to SEK 45.2 (42.2) M. Cash flow increased by 6 per cent and amounted to SEK 61.4 (58.0) M.  

- "Pandox hotel property portfolio continues to perform better than the market. The growth in revenue and income is due to a combination of the strategy of the company, the high quality hotel property portfolio and the active ownership", says Anders Nissen, Chief Executive Officer, Pandox AB.   

Outlook  The hotel market in Pandox' market area remains difficult to predict. The market is affected by the economic downturn, the negative effects of the Iraq war and the uncertainties regarding the SARS virus. 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 2003 is forecast to reach SEK 195 M.