(Oslo, 4 Mai 2007) Norwegian Property ASA had gross rental income of NOK 248.6 million in the first quarter. Profit before tax was NOK 345.5 million. Pre tax return on equity was 6.0% for the quarter, corresponding to an annualised return of 24.0%. Total value of the company's property portfolio is NOK 18.2. billion.
 
Norwegian Property was established in 2006 and is 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 of high quality. The long term ambition is to become the largest and most liquid investment alternative on Norwegian commercial properties.
 
Highlights for the first quarter 2007:
 
  • Gross rental income was NOK 248.6 million and profit before tax was NOK 345.4 million in the company's third quarter of full operation.

  • According to Jones Lang LaSalle Oslo office rental market outperformed the rest of Europe in 2006. Properties in Oslo comprise some 85% of Norwegian Property's gross rental income.

  • Rental prices are expected to increase significantly going forward. Demand for offices in Oslo and Stavanger, where Norwegian Property has most of its properties, is high. Demand is fuelled by strong growth and positive outlook. Availability of offices is limited. Limited new building, sharp increase in building cost and delay in some major projects (ex. Bjørvika, CBD Oslo) will reduce vacancy further over the next two to four years.

  • The efforts to reduce the group's financial expenses is ongoing. Average margin on the debt has been reduced from 76 basis points to 60 basis points in the quarter. The company has for the first time issued bonds in the domestic Norwegian bond markets totalling NOK 1.5 billion. The group is effectively 90% interest hedged when also considering the cash position.
 
"Yields on property transactions on single properties and medium sized portfolios is now record low due to expectations on further rental growth. When evaluating investment proposals we are carefully considering our investment requirements. In our growth efforts going forward we are mainly focusing on larger portfolios and structural transactions, says Petter Jansen, President and CEO.
 
The quarterly report for the first quarter is available on the Group's web site: www.norwegianproperty.no.
 
 
For further information, contact:
CEO,  Petter Jansen, mobile +47 900 98 728
CFO, Svein Hov Skjelle, mobil +47 930 55 566