Selvaag Bolig ASA: Q3 2021: Good sales and good results

Selvaag Bolig had operating revenues of NOK 1 849 million and an adjusted EBITDA (IFRS) of NOK 439 million for the first nine months of the year. This is an improvement of 37 per cent from the same period of last year, and one of the best results in the company’s history.

The level of activity in the group is high. So far this year, the group has sold 13 per cent more homes and started construction of 75 per cent more units than in the same period of last year. At the end of the quarter, Selvaag Bolig had 1 201 homes under construction with a total sales value of NOK 6.2 billion. 76 per cent of these homes were sold at the end of the quarter.

“The company has been little influenced by the pandemic and activity is high. Sales so far this year have been good despite the summer being quiet, and construction has progressed according to plans. Profitability in the projects is good, and we have been able to start construction of 424 homes so far this year. This is better than we expected at the beginning of the year,” says CEO Sverre Molvik.

“We have a solid portfolio of projects in growth regions. Our strong market position and high activity will contribute to the company growing going forward. At the end of the third quarter, we had roughly 450 homes for sale, and we have planned to start selling more than 500 homes in Q4 and Q1. If housing demand continues at current levels, it means that our production volume could increase in coming quarters."

During the first nine months of the year, Selvaag Bolig has sold homes for more than NOK 3 billion. 

The live webcast of the presentation can be viewed from 0830 here. An English transcript of the presentation will be made available on the company’s website.

Highlights of the third quarter 2021 (third quarter 2020)

• Gross sales* amounted to 147 homes (209) with a sales value of NOK 731 million (NOK 1 104 million)
• Net sales were 125 homes (178) with a sales value of NOK 634 million (NOK 910 million)
• Net construction starts for 148 homes (196), net completions of 318 (212) and net deliveries of 314 to buyers (212)
• Net 1 201 homes under construction (1 342) with a combined sales value of NOK 6 200 million (NOK 6 660 million)
• 76 per cent (77 per cent) of homes under construction sold at 30 September 
• 16 (19) completed homes unsold at 30 September
• IFRS**: Operating revenues of NOK 887 million (NOK 706 million), EBITDA adjusted for financial expenses NOK 222 million (NOK 128 million), corresponding to a margin of 25.0 per cent (18.1 per cent)
• Earnings per share: NOK 1.64 (NOK 1.10)
• NGAAP***: Operating revenues of NOK 774 million (NOK 707 million), EBITDA of NOK 114 million (NOK 151 million), corresponding to a margin of 14.8 per cent (21.3 per cent)
   

Highlights of the first nine months of 2021 (first nine months of 2020)

• IFRS**: Operating revenues of NOK 1 849 million (NOK 1 351 million), EBITDA adjusted for financial expenses NOK 439 million (NOK 321 million), corresponding to a margin of 23.7 per cent (23.7 per cent)
• Earnings per share: NOK 3.06 (NOK 13.71), NOK 11.01 from the Urban Property transaction included in 2020.
• NGAAP***: Operating revenues of NOK 2 513 million (NOK 2 267 million), EBITDA of NOK 410 million (NOK 463 million), corresponding to a margin of 16.3per cent (20.4 per cent)
• Gross sales amounted to 601 homes (591) with a sales value of NOK 3 097 million (NOK 3 058 million)
• Net sales were 546 homes (484) with a sales value of NOK 2 753 million (NOK 2 450 million)
• Net construction starts for 424 homes (242), net completions of 533 (405) and net deliveries of 570 to buyers (448
   

* Units sold are sales contracts entered into with customers pursuant to the Norwegian Housing Construction Act. In accordance with the IFRS, they are recognised as income on delivery. 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.

Further information from
Sverre Molvik, CEO, Selvaag Bolig ASA
Telephone: +47 40 10 05 85, e-mail: smo@selvaagbolig.no

Christopher Brunvoll, CFO, Selvaag Bolig ASA
Telephone: +47 98 82 92 22, e-mail: chrb@selvaagbolig.no

Kristoffer Gregersen, EVP communications, sustainability and corporate strategy, Selvaag Bolig ASA
Telephone: +47 95 77 55 93, e-mail: kgr@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, Trondheim and Stockholm. 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.

www.selvaagboligasa.no/en

This release was distributed by Kristoffer Gregersen, EVP communications and sustainability, Selvaag Bolig ASA.

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.