Selvaag Bolig ASA: Q3 2015: continuing to report strong results
Third quarter of 2015:
- IFRS: operating revenues NOK 778 million (2014: NOK 765 million), EBITDA adjusted for financial expenses NOK 134 million (NOK 125 million), representing a margin of 17.2 per cent (16.3 per cent)
- NGAAP: operating revenues NOK 826 million (NOK 724 million), EBITDA (percentage of completion method) NOK 122 million (NOK 120 million), representing a margin of 14.8 per cent (16.6 per cent)
- 208 homes sold (259), 204 started (203) and 202 delivered to buyers (279)
- Dividend of NOK 0.70 per share for the first half of 2015 approved and paid after 30 September
"We are selling well and delivering very strong results," says CEO Baard Schumann. "Our strategy of making a free choice of builder, efficient use of areas and concentration on Norway's four major urban areas is having a positive impact."
Selvaag Bolig initiated the building of 204 homes during the third quarter, and had 1 426 under construction at 30 September. These had a combined sales value of roughly NOK 5.1 billion. The company held 25 completed homes which had not been sold.
Seventy-eight per cent of the units under construction at 30 September had been sold. Since sold homes are first recognised as income on delivery, this stock represents substantial assets for Selvaag Bolig in the time to come.
"We are still very confident about the future of the housing market, and are investing in land - particularly in Greater Oslo, where few new homes have been built over time," says Schumann.
"Since 30 September, we have experienced a very good start to sales at both Valle Hovin and Fornebu on land acquired as recently as the first quarter of this year. We've also opened a Bergen office to strengthen our presence there."
When calculated in accordance with the IFRS, Selvaag Bolig's operating revenues from homes delivered during the third quarter came to NOK 778 million and the EBITDA margin adjusted for financial expenses was 17.2 per cent.
Operating revenues for homes under construction for the period, calculated in accordance with Norwegian generally accepted accounting principles (NGAAP), were NOK 826 million and EBITDA came to NOK 122 million - representing a margin of 14.8 per cent.
IFRS operating revenues for the third quarter of 2014 were NOK 765 million, with an EBITDA margin adjusted for financial expenses of NOK 16.3 per cent. NGAAP operating revenues in the same period were NOK 724 million and EBITDA came to NOK 120 million, a margin of 16.6 per cent.
The interim report for the third quarter of 2015 can be downloaded here: www.selvaagboligasa.no/en
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
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.