Selvaag Bolig ASA: Q3 2014: Sharp rise in sales and good results

• Expected dividend of minimum NOK 1.0 per share for fiscal 2014
• Good sales in core areas and good margins for homes both under construction and delivered
• Sales value of homes sold up 46 per cent
• Operating revenues (NGAAP) of NOK 723.5 million
• EBITDA of NOK 120 million, representing a margin of 16.6 per cent
• 259 homes sold, 203 started and 279 delivered

Selvaag Bolig achieved operating revenues (Norwegian generally accepted accounting principles) of NOK 723.5 million in the third quarter, up from NOK 613.7 million in the same period of last year. EBITDA was NOK 120 million, compared with NOK 104.5 million in the third quarter of 2013 - corresponding to margins of 16.6 and 17 per cent respectively.

"We're selling well and delivering very good results in all our projects," says CEO Baard Schumann.

"We see that our strategy of being free to choose construction company, specific geographic priority areas and reasonably-priced house types has a positive effect on both sales volume and results.

We've delivered steadily over time, and all the signs are that 2014 will be substantially better than expected. The results have been good so far this year and there will be a large number of deliveries in the fourth quarter. This means that the company expects that the dividend for fiscal 2014 will be at least NOK 1.0 per share.That is twice as much as for fiscal 2013." 

Selvaag Bolig sold 259 homes with a combined sales value of NOK 915 million during the quarter, compared with 236 with a value of NOK 625 million in the same period of 2013. That represented an increase of 46 per cent in sales value.

Construction started on 203 homes (2013: 335) during the quarter, giving the company 1 347 homes (1 279) under construction with a combined sales value of about NOK 5.2 billion (NOK 4.7 billion) at 30 September. 

A total of 279 homes (187) were delivered during the quarter, including units completed in earlier periods. Selvaag Bolig had 18 completed homes (22) still unsold at 30 September.

At 30 September, 76 per cent of the housing under construction (76 per cent) had been sold. Since sold homes are first recognised as income on delivery to the buyer, the inventory of such units represents substantial value for Selvaag Bolig in the time ahead. 

Revenues for homes delivered pursuant to the IFRS in the quarter came to NOK 764.7 million (NOK 676.7 million). EBITDA was NOK 95.3 million (NOK 91 million), which corresponds to a margin of 12.5 per cent (13.5 per cent).

Adjusted for financial expenses included in project costs, EBITDA came to NOK 124.8 million (NOK 109.6 million). This corresponds to a margin of 16.3 per cent (16.2 per cent). 

Of the 279 homes delivered during the quarter, 95 were student residences with an average value of NOK 700 000.

Further information from

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

Sverre Molvik, CFO, Selvaag Bolig ASA
Telephone: +47 401 00 585, e-mail: smo@selvaagbolig.no

The interim report for the third quarter of 2014 can be downloaded here www.selvaagboligasa.no/en

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.