Selvaag Bolig ASA: Good results and record dividend

Selvaag Bolig had an EBITDA pursuant to the IFRS of NOK 207.3 million for the first half of 2018. The company's board has decided to pay a dividend of NOK 2.00 per share for the period.

"Good results and a positive outlook underlie the board's decision on a dividend of NOK 2.00 for the first half. This is the highest half-year pay-out in our history," says acting CEO Olav H Selvaag. "

At 30 June, Selvaag Bolig had a net total of 1 503 homes under construction with a combined sales value of more than NOK 7 billion. At 30 June 72 per cent of these units were sold.

"These homes will be delivered over the next three years. That means we'll be producing good results in the future. We also believe the future market will be good and stable. Demand in the Oslo area, in particular, is better than in earlier periods, and we're making good progress with all our projects," says Selvaag.

Turnover and results for 2018 are not directly comparable with last year's figures, because of NOK 405 million in commercial property sales in the first two quarters of 2017.

First half of 2018

• Dividend of NOK 2.00 per share for the first half (NOK 1.20)
• IFRS**: Operating revenues of NOK 1 244 million (NOK 1 591 million), EBITDA adjusted for financial expenses of NOK 229 million (NOK 338 million), corresponding to a margin of 18.4 per cent (21.3 per cent)
• Earnings per share: NOK 1.60 (NOK 2.39)
• NGAAP***: Operating revenues of NOK 1 236 million (NOK 1 784 million), EBITDA of NOK 262 million (NOK 473 million), corresponding to a margin of 21.2 per cent (26.5 per cent)
• Gross sales amounted to 419 homes (425) with a sales value of NOK 1 651 million (NOK 1 994 million). Net sales were 366 homes (355) with a sales value of NOK 1 445 million (NOK 1 617 million)
• Net construction starts for 336 homes (504) and net deliveries of 320 units to buyers (307)

Second quarter of 2018

• 1 503 homes net under construction (1 586) with a combined sales value of NOK 7 076 million (NOK 7 074 million)
• 72 per cent of homes under construction (78 per cent) sold at 30 June
• 91 per cent of the homes due for completion in 2018 sold
• IFRS**: Operating revenues of NOK 864 million (NOK 1 135 million), EBITDA adjusted for financial expenses of NOK 178 million (NOK 245 million), corresponding to a margin of 20.6 per cent (21.6 per cent)
• Earnings per share: NOK 1.26 (NOK 1.58)
• NGAAP**: Operating revenues of NOK 665 million (NOK 967 million), EBITDA of NOK 145 million (NOK 271 million), corresponding to a margin of 21.8 per cent (28 per cent)
• Gross sales* were 203 homes (187) with a sales value of NOK 862 million (NOK 710 million)
• Net sales were 181 homes (165) with a sales value of NOK 751 million (NOK 633 million)
• Net construction starts for 234 homes (318) and net deliveries of 243 units to buyers (222)

* Net sales include Selvaag Bolig's share of joint venture projects. Gross sales include all homes in joint venture projects.
** Pursuant to the IFRS, all profit is recognised when the homes are delivered to the buyer. Profit pursuant to the IFRS accordingly derives primarily from homes which began to be built roughly two years ago.
*** The accounts pursuant to Norwegian generally accepted accounting principles (NGAAP) utilise the percentage of completion method. This means that profits are recognised on the basis of construction progress and sales in the projects. That presents ongoing value creation in the company.

Further information from
Olav H Selvaag, CEO, Selvaag Bolig ASA
Telephone: +47 901 67 388, e-mail: ohs@selvaagbolig.no

Sverre Molvik, CFO, Selvaag Bolig ASA
Telephone: +47 401 00 585, e-mail: smo@selvaagbolig.no

Kristoffer Gregersen, vice president communications and market, Selvaag Bolig ASA
Telephone: +47 957 75 593, e-mail: kgr@selvaagbolig.no