Norwegian Property achieved stable operation in its on-going business during the third quarter. Conversion work in Bryggegata 7-9 and Stranden 3 is well under way, and the level of construction activity at Aker Brygge is now high. Good project management and execution of the development projects planned to achieve further progress for the property portfolio are a key priority for the group.

Improved prospects for economic growth and employment in Norway, combined with a reduced estimate for new build volume and an increased conversion rate for office buildings, contributed to a steady decline in forecast vacancy for offices in Oslo. The work of securing further leases which manifest the value potential of the portfolio continues to have a high priority.

Rental income for Norwegian Property totalled NOK 226.7 million for the third quarter of 2012. Adjusted for the acquisition and sale of properties during the period, this represents a decline of NOK 4.8 million in rental income compared with the corresponding period of 2011.That gave Norwegian Property an operating profit before fair-value adjustments and gain/loss of NOK 185 million which yielded a profit before tax and fair-value adjustments of NOK 70.8 million and a pre-tax loss of NOK 270.2 million.

CEO Olav Line says in a comment:

“Norwegian Property achieves stable operation and reduced space vacancy in its on-going business during a period which is in other respects characterized by high construction activity for certain properties.

This quarter we are especially pleased to note that Enova acknowledge the environmental efforts made in Norwegian Property by awarding some NOK 33 million in investment grants for environment-friendly conversion of energy consumption and renewable energy production. The support is granted on the basis of energy-saving analyses prepared for all the group’s properties, and covers both development projects and operation-related energy-saving measures.

With positive market prospects, a high level of rental activity and good operation, the work of developing the value potential in the portfolio is continuing.

Please find attached the financial report for the third quarter 2012 as well as the presentation material used in today’s presentation.

Webcast link:

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

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 42 properties located in the Oslo area and Stavanger in Norway. The portfolio, which has a total fair value of NOK 14.5 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.