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Selvaag Bolig ASA: Strong start to 2021

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Selvaag Bolig delivered 124 homes in the first quarter of 2021, and the EBITDA margin adjusted for financial costs came to 23 per cent. At 31 March, the group had 1 349 homes worth NOK 6 627 million under construction.

“Sales in the first quarter were record-high, and we started construction of more homes than we completed. We also had good margins on the units delivered during the quarter. We expect a good and stable market in the time to come, and are well positioned with good products and unique housing concepts in the right places, says CEO Sverre Molvik.The figures are not directly comparable with the same period of last year since the sale of much of Selvaag Bolig’s land bank to Urban Property was completed during the first quarter of 2020.

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 by 27 May.
 

Highlights of the first quarter 2021 (first quarter 2020)

  • Net construction under way on 1 349 homes (1 431) with a combined sales value of NOK 6 627 million (NOK 6 742 million)
  • 82 per cent (76 per cent) of homes under construction sold at 31 March
  • 93 per cent of homes due for completion in 2021 are sold
  • Pre-tax profit NOK 111 million (NOK 1 137 million)****
  • IFRS**: Operating revenues of NOK 568 million (NOK 209 million), EBITDA adjusted for financial expenses NOK 129 million (NOK 117 million), corresponding to a margin of 23 per cent (56 per cent)
  • Earnings per share: NOK 0.82 (NOK 12.80)****
  • NGAAP***: Operating revenues of NOK 858 million (NOK 756 million), EBITDA of NOK 147 million (NOK 160 million), corresponding to a margin of 17.2 per cent (21.1 per cent)
  • Net construction starts for 134 homes (15), net completions of 95 (89) and net deliveries of 124 to buyers (114)
  • Gross sales* amounted to 274 homes (196) with a sales value of NOK 1 431 million (NOK 1 031 million)
  • Net sales were 248 homes (164) with a sales value of NOK 1 242 million (NOK 840 million)

* Net sales include Selvaag Bolig’s share of joint ventures. Gross sales include all homes in joint ventures. Units sold are sales contracts with customers pursuant to the Norwegian Housing Construction Act.
** Pursuant to the IFRS, all profit is recognised when the homes are delivered to the buyer. Profit pursuant to the IFRS today 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.
**** The Urban Property transaction in 2020 had a one-off effect on the company’s pre-tax profit of NOK 1 029 million. Excluding that figure, pre-tax profit for the first quarter of 2020 was NOK 108 million.

 

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

Kristoffer Gregersen, executive vice president communications and market, 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 and Trondheim. Selvaag Bolig represents a continuation of Selvaag's 70-year history and experience. The company is headquartered at Ullern in Oslo.
www.selvaagboligasa.no/en

 

This release was distributed by Kristoffer Gregersen, executive vice president communications Selvaag Bolig ASA.

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

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