NPRO 2Q 2011 – STABLE OPERATIONS AND SOLID FINANCIAL PLATFORM GIVE FOUNDATION FOR PORTFOLIO DEVELOPMENT
Norwegian Property ASA posted a profit before tax and fair-value adjustments of NOK 76.5 million in the second quarter of 2011, a decrease of 1.0 per cent from the corresponding prior-year period. Gross rental income amounted to NOK 252.5 million, compared with NOK 261.4 million in the second quarter of 2010. After fair-value adjustments, profit before tax for the second quarter of 2011 came in at NOK 119.0 million, down from NOK 143.0 million in the same period in 2010. Profit after tax was NOK 126.7 million in the three months to 30 June 2011, compared with NOK 125.2 million in the same period of 2010. With that, the company achieved earnings per share (EPS) in the second quarter of NOK 0.25.
Reduced yield requirements and moderate growth in market rent levels resulted in positive fair-value adjustments of the property portfolio of 1.0 per cent. For purposes of comparison, the value of the office portfolio rose by 0.8 per cent in the second quarter of 2010. This equates to a book value of NOK 11.14 per share at 30 June 2011, up from NOK 11.03 per share at the end of the first half of 2010 (EPRA: NOK 11.92 at the end of second quarter 2011).
CEO Olav Line says in a comment:
”With stable operations and the establishment of new credit facilities Norwegian Property has during the first half of 2011 secured a solid foundation for further development of the company’s property portfolio.
In accordance with the company’s ambitions to own, develop and manage first-class commercial properties, Norwegian Property announced in the second quarter ambitious plans to carry out a comprehensive reconstruction and modernization project at Aker Brygge in Oslo.
Further, Norwegian Property has established new credit facilities totaling close to NOK 10 billion during the second quarter. The new loan facilities secure refinancing of all loan maturities in 2011 and 2012 and also add funding capacity for future investments.
An attractive office portfolio with high-quality tenants, stable operations and a sound financial platform make Norwegian Property well positioned for further value creation and development of the property portfolio.”
Please find attached the financial report for the second quarter and first half of 2011 as well as the presentation material used in today’s presentation.
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 47 properties located in the Oslo area and Stavanger in Norway. The portfolio, which has a total fair value of NOK 15.1 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.