NPRO: 1Q 2020 – Covid-19 has a negative impact on earnings, and it has been resolved to pay no dividends for the quarter
Revenues in Norwegian Property increased to NOK 565 million in the quarter compared to NOK 192 million in the same quarter last year. The increase is primarily related to the acquisition of Lille Grensen 7 at the end of Q4 2019 and the handover of 73 apartments in Hasle (NOK 383 million).
Long-term market interest rates are significantly reduced in the quarter, and the fair-value adjustment for interest-rate derivatives was negative by NOK 192.2 million To account for other adverse effects of the Covid-19 virus, a provision of NOK 9 million has been made to take account of estimated negative effects on income and operating costs for the company at the balance sheet date.
The pre-tax loss came to NOK 100.3 million (profit of NOK 220.3 million). After NOK 0.5 million in provision for deferred tax, net loss for the period came to NOK 100.3 million. That meant first-quarter earnings per share (EPS) were negative at NOK 0.20. Carried equity per share at 31 March 2020 was NOK 16.41, down from NOK 16.68 at 31 December 2019.
Given the extraordinary conditions developing as a result of the Covid-19 pandemic, the board has resolved to pay no dividend for the first quarter of 2020.
The company will call a general meeting in the near future to amend the purpose in the articles of association. This is proposed to increase the company's flexibility to develop and invest in segments where the applicable purpose does not necessarily provide sufficient room to maneuver.
Link to webcast (in Norwegian): https://channel.royalcast.com/webcast/hegnarmedia/20200430_1/
For further information, please contact:
Bent Oustad, CEO, mob: +47 4801 6082, e-mail: firstname.lastname@example.org
Haavard Rønning, CFO, mob. +47 400 200 19, e-mail: email@example.com
This information is subject of the disclosure requirements according to §5-12 of the Norwegian Securities Trading Act (’Verdipapirhandelloven’).
Norwegian Property is a focused and fully integrated office property company with properties located mainly in the Oslo area in Norway. The portfolio is characterized by central location and attractive premises 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.