NPRO 2Q 2012 - CONVERSIONS TEMPORARILY AFFECT OPERATIONS, LETTING MARKET POSITIVE
Norwegian Property has during the first half of 2012 started a substantial modernisation and quality enhancement of Aker Brygge. The purpose is to strengthen the identity of the individual buildings as well as Aker Brygge’s position as Oslo’s most attractive office district.
Work on awarding new leases has a high priority, and demand is good in the markets where Norwegian Property focuses its core business. A total of 14 new or renegotiated leases were awarded during the second quarter, with a combined value of about NOK 45.9 million and a positive change of 7.0 per cent in comparative annual rent. Market demand is directed particularly at centrally located office properties of a good standard which are close to public transport.
Norwegian Property achieved stable operation for the group’s on-going business in the second quarter. At the same time, conversion projects initiated in the portfolio led to a temporary increase in vacant space and a transient decline in rental income for certain large properties. Rental income accordingly totalled NOK 228.5 million, yielding a profit before fair-value adjustments and gain/loss of NOK 185.3 million. Norwegian Property thereby achieved a profit before fair-value adjustments and one-off costs of NOK 70.6 million and a pre-tax loss of NOK 48.8 million.
CEO Olav Line says in a comment:
“Norwegian Property has during the first half of 2012 started a substantial renovation at Aker Brygge in order to create a city district characterised by quality and a pleasant, local atmosphere. A considerable modernisation and quality improvement of the office properties will strengthen Aker Brygge’s position as Oslo’s most attractive office district, which already has been confirmed by new leases with solid tenants.
Norwegian Property has during the second quarter entered several new lease contracts both in Stavanger and in Oslo. The new leases have been entered into on good terms and represent in a number of cases a solid increased in annual rent for the individual properties. Work on awarding new leases which highlight the value potential of the portfolio will remain a high priority in the time to come.”
Please find attached the financial report for the second quarter and first half of 2012 as well as the presentation material used in today’s presentation.
Webcast link: http://webtv.hegnar.no/webcast.php?id=67413
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
Norwegian Property is a focused and fully integrated office property company with 42 properties located in the Oslo area and Stavanger in Norway. The portfolio, which has a total fair value of NOK 14.5 billion, is characterized by central location and attractive premises with low vacancy and high quality tenants. The group’s properties consist largely of office premises, associated warehousing and car parking, as well as retail and catering space. The company has identified four value drivers for long-term value creation; Marketing & letting, Property management, Property development and Transactions & finance.
Norwegian Property is listed on Oslo Stock Exchange with the ticker NPRO.