NPRO; Presentation of financial results third quarter 2008

Press release

Oslo, 28 October 2008)

Rental income for Norwegian Property was NOK 454.6 million in the third quarter compared to NOK 253.1 million in the same quarter last year. Profit before tax, value changes and interests on acquisition financing was NOK 112.8 million (NOK 81. million). After value adjustments derivatives, fair value adjustment properties and interest expenses on acquisition financing, loss before tax was NOK 1,371.9 million.

Market value for the group's portfolio of investment properties was NOK 27.7 bn at the end of September. Net asset value per share was NOK 34.58 (NOK 34.71 based on the EPRA-standard).

Highlights for the quarter:
  • Net Asset Value per share is nok 34.8. Adjusted Net Asset Value based on the EPRA-standard is nok 34.71.
  • Total market value for the property portfolio (before tax adjustments) is NOK 27,743 million, implying a net yield based on current payable rents (including current run rate on hotels) of 6.2% and 6.4% if adjusting for expected inflation adjustment in 2008. Negative fair value adjustment of investment property was NOK 1,002.8 million in the third quarter.
  • Agreement to sell Grev Wedels plass 9 for property value of NOK 773 million entered in September. Based on 2008 rents the transaction price implies a net yield of 5.5%. The group's Loan To Value (LTV) post the value adjustments for the third quarter and proforma adjusted for the sale of Grev Wedels plass 9 is 76.3%.
  • One large rental renewal is agreed in the beginning of the fourth quarter. Another large tenant has called option for extension of the rental contract at market terms. This confirms a strong rental market. The new agreements will contribute to improved cash flow going forward.
  • Rights issue of NOK 2,500 million completed in July.

    The report for the third quarter 2008 and the presentation is available on:

    For additional information contact:
    CEO,  Petter Jansen, mobile +47 900 98 728
    CFO, Svein Hov Skjelle, mobile +47 930 55 566