Norwegian Property ASA achieved an operating profit before fair-value adjustments and gain/loss of NOK 202.3 million during the first quarter of 2012, a decline of 5.6 per cent from the same period of the year before. Gross rental income came to NOK 247 million, down slightly from NOK 253.7 million in the first quarter of 2011. This reduction primarily reflected the sale of properties. After fair-value adjustments, the pre-tax profit came to NOK 106.4 million, down from NOK 558.9 million in the same period of 2011. Net profit was NOK 77.3 million, compared with NOK 494.2 million in the same quarter of 2011. The company thereby achieved ordinary earnings per share of NOK 0.16 for the first quarter. Carried equity was NOK 10.51 per share at 31 March 2012, down from NOK 10.99 per share a year earlier (Epra: NOK 11.75 at 31 March 2012).

The company achieved a positive cash flow from operating activities of NOK 84 million in the first quarter, compared with NOK 117.2 million in the same period of 2011. The net consolidated loan-to-value ratio was 61.5 per cent at 31 March, down from 64.6 per cent a year earlier. This decline reflects the fact that several property transactions were conducted in the period. Adjusted for the effect of the seller credit provided to the buyers of Norgani, the net loan-to-value ratio was 57.4 per cent at 31 March 2012.

CEO Olav Line says in a comment:

“During the first three months of the year, Norwegian Property has worked purposefully to reduce vacancy in the Nydalen area of Oslo and to secure new tenants for properties involved in the planned development projects in the portfolio. I am pleased to note that high letting activity has shown results in the form of several new and renegotiated leases at satisfactory terms. In addition to Nydalen, new leases have been signed for properties in Drammensveien 134 at Skøyen and at Aker Brygge. In Bryggetorget 1, which was recently acquired by Norwegian Property, vacant premises are in the process of filling up with new tenants. The high level of letting activity in the quarter raised the average remaining term for the group’s leases to 5.2 years.

Extensive conversion and upgrading projects are being launched in 2012 to strengthen Aker Brygge’s position as Oslo’s most important city district and office location. The first stage in this process, which will run over four years, is the rehabilitation of Stranden 3 (Workshops) and Bryggegata 7-9 (Administration Building). Approved framework permits have been received for both projects, and the work has been initiated. Good project management and execution will be the key requirement in the time to come, along with securing more lettings which highlight the value potential of the converted premises in the portfolio.”

Please find attached the financial report for the first quarter of 2012 as well as the presentation material used in today’s presentation.

Webcast link:

This information is subject of the disclosure requirements according to §5-12 of the Norwegian Securities Trading Act (’Verdipapirhandelloven’).

For further information, please contact:

Olav Line, CEO
Telephone: +47 482 54 149

Svein Hov Skjelle, CFO
Telephone: +47 930 55 566

Elise Heidenreich-Andersen, SVP IR
Telephone: +47 951 41 147