Selvaag Bolig ASA: full year and Q4 2018: Record profit and dividend
Selvaag Bolig had operating revenues of NOK 3 342 million for 2018, and an EBITDA margin adjusted for financial costs of 24.8 per cent. Strong results and a positive outlook mean that the company’s board has proposed a dividend of NOK 2.50 per share for the second half of 2018. That gives a total dividend for the year of NOK 4.50 per share.
“We did extremely well in 2018, with strong results and a high return for our shareholders. That’s the result of systematic work over time, strategic prioritisation and effective project development,” says CEO Olav H Selvaag.
“We’re experiencing a good level of interest in the homes we have for sale, and the market outlook is positive. We have attractive projects in areas with a high demand for new housing. The present year has started well, and we’re due to launch several large projects in such locations as Follo, Asker, Lørenskog, Trondheim and Bergen during 2019.”
Selvaag Bolig currently has 1 449 homes under construction with a combined sales value of NOK 6 712 million.
Highlights of 2018 (2017 in brackets)
- IFRS: Operating revenues of NOK 3 342 million (NOK 3 229 million), EBITDA adjusted for financial expenses of NOK 827 million (NOK 626 million), corresponding to a margin of 24.8 per cent (19.4 per cent)
- Earnings per share: NOK 6.14 (NOK 4.35)
- NGAAP: Operating revenues of NOK 2 975 million (NOK 2 971 million), EBITDA of NOK 612 million (NOK 680 million), corresponding to a margin of 20.6 per cent (22.9 per cent)
- External valuation of the land bank puts it at NOK 1 610 million above the carrying amount
- Net construction starts for 840 homes (799), net completions of 854 (690) and net deliveries of 849 to buyers (737)
- Net sales came to 696 homes (701)
Highlights of the fourth quarter of 2018
- Net construction under way on 1 449 homes (1 463) with a combined sales value of NOK 6 712 million (NOK 6 994 million)
- 66 per cent (73 per cent) of homes under construction sold at 31 December
- 70 per cent of homes due for completion in 2019 sold
- IFRS: Operating revenues of NOK 1 625 million (NOK 1 259 million), EBITDA adjusted for financial expenses of NOK 513 million (NOK 242 million), corresponding to a margin of 31.6 per cent (19.3 per cent)
- Earnings per share: NOK 3.93 (NOK 1.78)
- NGAAP: Operating revenues of NOK 1 033 million (NOK 689 million), EBITDA of NOK 196 million (NOK 104 million), corresponding to a margin of 18.9 per cent (15.1 per cent)
- Net construction starts for 402 homes (217), net completions of 441 (336) and net deliveries of 421 to buyers (355)
- Net sales of 148 homes (168)
- The board proposes a dividend of NOK 2.50 per share for the second half of 2018. Total dividend for the year will thereby be NOK 4.50 per share (NOK 3.00)
* Net sales include Selvaag Bolig's share of joint venture projects. Gross sales include all homes in joint venture projects.
** Pursuant to the IFRS, all profit is recognised when the homes are delivered to the buyer. Profit pursuant to the IFRS accordingly derives primarily from homes which began to be built roughly two years ago.
*** The accounts pursuant to Norwegian generally accepted accounting principles (NGAAP) utilise the percentage of completion method. This means that profits are recognised on the basis of construction progress and sales in the projects. That presents ongoing value creation in the company.
The results will be presented at 08:30 am CET. An English transcript of the presentation will be made available on the company’s website by 14 February.
Further information from
Olav H Selvaag, CEO, Selvaag Bolig ASA
Telephone: +47 901 67 388, e-mail: firstname.lastname@example.org
Sverre Molvik, CFO, Selvaag Bolig ASA
Telephone: +47 401 00 585, e-mail: email@example.com
Kristoffer Gregersen, vice president communications and market, Selvaag Bolig ASA
Telephone: +47 957 75 593, e-mail: firstname.lastname@example.org
Selvaag Bolig ASA is a residential property developer controlling the entire value chain from acquisition of land to sale of homes. The company has several thousand homes under development at any given time, and focuses on the growth areas in and around Greater Oslo, Bergen, Stavanger and Trondheim. Selvaag Bolig represents a continuation of Selvaag's 70-year history and experience, and offers a broad variety of property types. The company is headquartered at Ullern in Oslo.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.