Selvaag Bolig ASA: Q3 016: High level of activity and positive outlook

Third quarter 2016:

• Value of homes sold NOK 1 130 million (2015: NOK 750 million)
• 277 homes sold (208), construction started on 223 (204) and 129 delivered to the buyer (202)
• Average sales price of NOK 4.1 million (NOK 3.6 million)
• IFRS: operating revenues NOK 387 million (NOK 778 million), EBITDA adjusted for financial expenses NOK 92 million (NOK 134 million) representing a margin of 23.8 per cent (17.2 per cent)
• NGAAP (percentage of completion method): operating revenues NOK 941 million (NOK 826 million), EBITDA NOK 203 million (NOK 122 million) representing a margin of 21.6 per cent (14.8 per cent)
• Earnings per share: NOK 0.63 (NOK 0.76)

Selvaag Bolig sold 277 homes for NOK 1 130 million in the third quarter. Rise in house prices led to an improved profit margin.

"House prices in the Oslo area are rising sharply and that's having a direct impact on our results," says CEO Baard Schumann at Selvaag Bolig ASA.

"This reflects our business model, where costs are locked before sales start and homes are sold at market price throughout the construction time of a project. When prices rise, the profitability of our projects improves."

Selvaag Bolig started the construction of 223 homes during the third quarter. At 30 September, it had 1 464 units under construction with an overall sales value of roughly NOK 5.8 billion. Ninety per cent were sold.

At 31 October, Selvaag Bolig had 48 completed homes which remained unsold.

"We have great faith in the future market. In the Oslo area, where we have the bulk of our projects, demand is very high and supply low. The market outlook is also positive in Bergen and Trondheim, and we see clear signs of an improvement in the Stavanger area," says Schumann.

Further information from
Baard Schumann, CEO, Selvaag Bolig ASA
Telephone: +47 940 80 000, e-mail: bs@selvaagbolig.no

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 60-year history and experience, and offers a broad variety of property types marketed under the brand names Start, Hjem and Pluss. The company is headquartered at Ullern in Oslo.

www.selvaagboligasa.no/en