Selvaag Bolig ASA: Q4 2013: Dividend two years early after good results

Full year 2013

• Revenues of NOK 2.2 billion, EBITDA of NOK 289 million (13.2 per cent)
• 687 homes delivered to buyers, 740 sold, 1 474 under construction
• EBITDA margin (continuous netting) of 16.3 per cent
• NOK 690 million in added value for land bank
• Land purchased in core areas
•  Board proposes a dividend of NOK 0.50 per share for 2013

Fourth quarter 2013

• Revenues of NOK 376 million, EBITDA of NOK 2 million (0.4 per cent)
• Many housing starts and increasing construction activity, but slower pace of sales than in earlier periods
• 118 homes delivered to buyers, construction started for 296, 61 sold
• Land purchases in Oslo and Ski
  
  

Selvaag Bolig achieved operating revenues of NOK 2.2 billion and EBITDA of NOK 289 million in 2013. The EBITDA margin for the full year, based on continuous netting, was 16.3 per cent. A record number of homes under construction help to ensure future value creation. The company's board recommends a dividend.

"Earlier sales and production growth made 2013 a good year for us," says CEO Baard Schumann.

"Our solid financial position and good results over time allow the board to recommend a dividend of NOK 0.5 per share for 2013. We've communicated that this will be a dividend paying share, and this is two years early."

Good sales in the second half of 2012 and the first half of 2013 led to construction starts for 1 083 homes during 2013. At 31 December, the company had 1 474 houses under construction, with a combined sales value of about NOK 5.4 billion. Only eight completed homes remained unsold. 

"Since 75 per cent of the housing under construction has been sold, but is not recognised as income until delivered to the buyer, this will generate big value for the company in coming years," notes Schumann.

As previously communicated, and in line with the company's plans, few homes were delivered in the fourth quarter. This is reflected in operating revenues and EBITDA for the period, which were NOK 376 million and NOK 2 million respectively.

Since housing sales are first recognised in profit and loss on delivery to the buyer, results for the fourth quarter were unrelated to such sales in 2013. 

The EBITDA margin, based on continuous netting, was 11 per cent for the fourth quarter. That includes homes under construction during the period.

An external valuation places a value of NOK 2 443 million on Selvaag Bolig's undeveloped land. This is NOK 690 million above the carried amount of these holdings.

The company also further strengthened its land portfolio during 2013 in such locations as Oslo, Bærum, Ski and Sandnes, and decided to establish a presence in Trondheim. 

Operating revenues were NOK 2.8 billion and EBITDA NOK 511 million for 2012, and NOK 1.25 billion and NOK 229 million respectively in the fourth quarter of 2012. NOK 124 million in sales of land and commercial buildings had a positive effect on operating profit in 2012.

The interim report for the fourth quarter of 2013 can be downloaded here http://www.sboasa.no/en. 

Results for the first quarter of 2014 will be published on 22 May.

Further information from

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

Haavard Rønning, CFO, Selvaag Bolig ASA Telephone: +47 400 20 019, e-mail: hroe@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 Løren in Oslo.

www.selvaagbolig.no/investor