NPRO: 2Q 2020 - influenced by corona and the acquisition of Veidekke Eiendom

Operating revenues ended at NOK 630 million for the quarter, of which NOK 172 million was rental income, while sales revenues from the residential project at Hasle in Oslo came to NOK 458 million. Profit before tax and fair-value adjustments came to NOK 95.3 million. The net loss for the period came to NOK 170.1 million after negative fair-value adjustments of investment properties and interest-rate-derivatives. That meant second-quarter earnings per share (EPS) were negative at NOK 0.34. Carried equity per share at 30 June 2020 was NOK 16.06, down from NOK 16.41 at 31 March.

CEO Bent Oustad comments on the quarter: "It was a tough start to the quarter with the closure of both offices and retail space following the authorities' decisions and recommendations in March 2020. Activity at the beginning of the quarter was therefore low, but as society has opened and authorities eased the recommendations, activity both among office users and in the service premises increased considerably. We are still affected by the authorities' recommendations, but the pace in the company is starting to return to normal ».

Activity in NPRO has nevertheless been high throughout the quarter, and in mid-June NPRO acquired Veidekke Eiendom together with 2 partners. Veidekke Eiendom will be financed with NOK 2.6 billion in equity provided by the buyers and NOK 5.7 billion in debt. NPRO will own 42.5% of the company. Through the transaction, NPRO will have access to a large land bank in both Norway and Sweden and many well-qualified employees with high competence in housing development. Baard Schumann is intended for the role of CEO of the company. NPRO expects the acquisition to take place during September 2020.

The final 81 of 223 units for the residential project at Hasle in Oslo were delivered in the second quarter, and the building loan has been repaid. Estimated profit for the entire housing project was NOK 78 million before tax, of which NOK 27 million was recognized in Q2.

The conditions for financing were affected by the corona crisis at the beginning of the quarter. Liquidity in the financial market has gradually improved, and margins dropped towards the end of the quarter. Bond loans maturing on 6 July 2020 were refinanced with two new bilateral RCFs in banks of NOK 510 million in SEB and NOK 200 million in DNB, respectively, both with a 1-year maturity and with the possibility of extension. In addition, undrawn amount under the existing RCF was used for the refinancing in July.

The board has decided to call an extraordinary general meeting to request authorization to raise up to 20% in new share capital. The reason is the desire for flexibility in connection with the financing of the purchase of Veidekke Eiendom. No final decision has yet been made on how NPRO will finance its share of the equity injection.

Link to webcast (in Norwegian):!/hegnarmedia/20200710_4

For further information, please contact:Bent Oustad, CEO, mob: +47 4801 6082, e-mail:

Haavard Rønning, CFO, mob. +47 400 200 19, e-mail:

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.