NPRO 2Q 2015: GROWTH IN RENTAL INCOME AND INCREASED PROPERTY VALUES

The major development projects are virtually complete, and a number of new tenants moved into their premises during the second quarter of 2015. Overall rental income rose from NOK 187.8 million in the same period of last year to NOK 219.7 million, an increase of 27.1 per cent when the sale of Finnestadveien 44 and Maridalsveien 323 is taken into account. Operating profit before fair-value adjustments came to NOK 172.8 million. Profit before tax and fair-value adjustments was NOK 50.9 million.

Positive fair-value adjustments for investment properties totalled NOK 81.3 million, while positive fair-value adjustments for financial derivatives came to NOK 116.6 million. After NOK 75 million in tax expense, net profit for the period came to NOK 173.9 million. That yielded ordinary earnings per share (EPS) of NOK 0.32 for the second quarter. Carried equity per share came to NOK 10.24 at 30 June, up from NOK 9.91 at 31 March (Epra NAV: NOK 11.42 and Epra NNNAV: NOK 10.77 at 30 June 2015).

Norwegian Property has during the quarter seen high leasing activity. Contracts totaling an annual rent of NOK 46.8 million have been signed during the quarter. The largest contract was entered into with Helsedirektoratet (the Norwegian directorate of health) for 7 559 sqm in Monier – Verkstedveien 1 at Skøyen. In the beginning of the third quarter a contract has been entered into for appr. 2 900 sqm in Verkstedhallene (Stranden 3) at Aker Brygge. Both tenants will move in during the fourth quarter 2015.

The quarterly report and the presentation for the second quarter are attached.

Webcast link:

http://webtv.hegnar.no/presentation.php?webcastId=21823204

For further information, please contact:

Svein Hov Skjelle, Acting CEO / CFO

Telephone: +47 930 55 566

Email: shs@npro.no

This information is subject of the disclosure requirements according to §5-12 of the Norwegian Securities Trading Act (’Verdipapirhandelloven’).