Norwegian Property with profit before tax of nok 1 487 million in the first half year
(Oslo, 10 August 2007) Norwegian Property ASA had gross rental income of NOK 234.8 million in the second quarter. Profit before tax was NOK 1 141.7 million. Pre tax return on equity was 18.0% for the quarter, corresponding to an annualised return of 71.9%. Total value of the company`s property portfolio as of June 30 was NOK 19.1 billion.
Norwegian Property was established in 2006 and is aiming to give private and institutional investors access to a large, liquid , well diversified and attractively priced investment alternative. The company is focusing on the market for centrally located commercial properties of high quality. The long term ambition is to become the largest and most liquid investment alternative on Norwegian commercial properties.
Highlights for the second quarter 2007:
- Gross rental income was NOK 243.8 million and profit before tax was NOK 1 141.7 million.
- Return on equity was 18.0% in the quarter, corresponding to 71.9% on annualised basis.
- The market for commercial property continue to be strong. In the beginning of July Norwegian Property entered a contract at Aker Brygge with a record rent of NOK 4 300 per square meter per year. The strong rental development resulted in a positive revaluation of the company's investment properties of NOK 830.1 million in the second quarter, based on valuations by DTZ Realkapital.
- 79% of the group's interest rate exposure was hedged at the end of the quarter. Positive change in market value of the financial derivatives was NOK 362.1 million in the second quarter.
- The efforts to reduce the group`s financial expenses is ongoing. Average margin on the debt has been reduced from 80 basis points at the IPO to 56 basis points in the quarter.
- In July Norwegian Property entered an agreement with DnB to acquire DnB's head office at Aker Brygge. The transaction comprise approximately 32 000 square meters of centrally located properties with an agreed price of NOK 1 740 million.
- "The rental market continues the strong development. It is only a matter of time before our record at Aker Brygge is beaten," says Petter Jansen, CEO.
The quarterly report for the second quarter is available on the Group`s web site: www.norwegianproperty.no.
For further information, contact:
CEO, Petter Jansen, mobile +47 900 98 728
CFO, Svein Hov Skjelle, mobil +47 930 55 566