Selvaag Bolig ASA: strong start to 2019, record value of homes under construction
Selvaag Bolig sold 270 homes (2018: 216) worth NOK 1 320 million (NOK 788 million) in the first quarter. Sales were particularly good in the Oslo region.
Ongoing value creation in the company is presented by the operating margin based on progress and sales in current projects. Operating profit (EBITDA) according to Norwegian generally accepted accounting principles (NGAAP) came to NOK 154 million in the first quarter (NOK 117 million), corresponding to a margin of 22.7 per cent (20.5 per cent).
At 31 March, Selvaag Bolig had 1 534 homes under construction with a combined value of NOK 7.1 billion, the highest level ever and a rise of NOK 65 million from the same period of 2018. Seventy per cent of these units are already sold.
Rolf Thorsen took office in May as the new CEO of Selvaag Bolig ASA in succession to Olav H Selvaag. He has broad experience of property development and large, complex housing and urban development projects. His most recent post was as CEO of Oslo S Utvikling, the company developing the new Bjørvika district in the city centre.
“I’m taking over the baton in a leading housing and urban development company with the ability to deliver, a fantastic growth history and a substantial portfolio of homes under construction. I am now looking forward to continuing this strong operation and commercial driving force and to realising new projects together with the rest of the organisation,” says Thorsen.
Highlights of the first quarter of 2019 (first quarter of 2018)
- Gross sales* amounted to 270 homes (216) with a sales value of NOK 1 320 million (NOK 788 million)
- Net sales of 243 homes (185) with a sales value of NOK 1 183 million (NOK 693 million)
- Net construction starts for 97 homes (102), net completions of 12 (54) and net deliveries of 29 to buyers (59)
- Net construction under way on 1 534 homes (1 511) with a combined sales value of NOK 7 097 million (NOK 7 032 million)
- 70 per cent (73 per cent) of homes under construction sold at 31 March
- 13 completed homes (19) unsold at 31 March.
- IFRS**: Operating revenues of NOK 109 million (NOK 381 million), EBITDA adjusted for financial expenses negative at NOK 9 million (positive at NOK 51 million), corresponding to a negative margin of 8.2 per cent (positive at 13.3 per cent)
- Earnings per share: negative at NOK 0.16 (positive at NOK 0.34)
- NGAAP***: Operating revenues of NOK 680 million (NOK 572 million), EBITDA of NOK 154 million (NOK 117 million), corresponding to a margin of 22.7 per cent (20.5 per cent)
* 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.
An English transcript will be made available by 16 May.
Further information from
Rolf Thorsen, CEO, Selvaag Bolig ASA
Telephone: +47 901 19 373, e-mail: firstname.lastname@example.org
Sverre Molvik, CFO, Selvaag Bolig ASA
Telephone: +47 401 00 585, e-mail: email@example.com
Kristoffer Gregersen, vice president communication and market, Selvaag Bolig ASA
Telephone: +47 957 75 593, e-mail: firstname.lastname@example.org
Selvaag Bolig ASA is a residential property developer which controls the entire value chain from acquisition of land to sale of turnkey 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 70-year history and experience, and offers a broad variety of property types. The company’s head office is at Ullern in Oslo.
This information is subject to the disclosure requirements specified in section 5-12 of the Norwegian Securities Trading Act.