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Announcements
Norwegian Property: profit before tax in fourth quarter was NOK 522 million
16.02.2007
(Oslo, 16 February 2007) Norwegian Property had Gross rental income in the fourth quarter of NOK 202.5 million. Profit before tax was NOK 522.4 million. Pre tax return on paid in equity was 12.1% for the quarter, corresponding to an annualised return of 48.5%. The Board will propose a dividend of NOK 2.50 for 2006. Total value of the company's property portfolio is NOK 18.1 billion. Norwegian Property was established in 2006 aiming to give private and institutional investors access to a large, liquid, well diversified and attractively priced investment alternative. The company is focusing on the market for centrally located commercial properties. The long term ambition is to become the largest and most liquid investment alternative focusing on Norwegian commercial properties. Highlights for the fourth quarter:
- Rental income was NOK 202.5 million and profit before tax was NOK 522.4 million in Norwegian Property's second quarter of full operation.
- Norwegian Property is focusing on commercial properties centrally located and with high quality primarily in Oslo and Stavanger. The company benefits from a very strong rental market for offices and a positive development in the valuation of commercial properties. The positive rental development is expected to continue as demand for offices is high and little new capacity is coming on to the market.
- Norwegian Property acquired 15 properties in the fourth quarter. Total value of the acquired properties was NOK 4.1 billion.
- Norwegian Property was listed on Oslo Stock Exchange on 15 November 2006. The equity issue in connection with the listing was six times oversubscribed, with a strong participation from international investors.
- The company's management was recruited during the second half of 2006. The management was fully operational at the end of 2006.