Norwegian Property ASA achieved a profit before tax of NOK 251 million for the third quarter 2009, compared with NOK -1 372 million in the corresponding period last year. Gross rental income amounted to NOK 445 million, which adjusted for sale of properties, corresponds to an increase of 1.4 percent from third quarter 2008. Operating profit before fair value adjustments was NOK 363 million, compared with NOK 388 million in the same period last year. Total value adjustments for the property portfolio came to minus 0.1 percent in the quarter, of which commercial properties had a positive value adjustment of 0.1 percent and the hotel portfolio was adjusted downwards by 0.5 percent.

 

In the third quarter Norwegian Property strengthened its financial platform through a private placement of NOK 1 200 million and a subsequent repair offering of NOK 300 million. The aggregate proceeds were used for debt repayment.

 

Acting CEO Mari Thjømøe says in a comment:

 

"We are pleased to present a result representing a considerable improvement compared with the same period last year. Stable income, good operations and reduced financial costs gives increased financial flexibility. Total unrealized value changes for the third quarter are positive. The property values were to a great extent confirmed this quarter, whereas market interest rate development resulted in a gain related to the group portfolio of financial derivatives.

 

Through restructuring and repayment of debt in the quarter, the company has obtained a more solid financial position. During the period, we have repaid a total of NOK 1.5 billion in debt, and equity is strengthened by NOK 1.6 billion.

 

The turnover in the NPRO share has reach record levels during the quarter, and we see a positive increase in the number of shareholders. The proportion of non-Norwegian investors is increasing and reached 34.4 per cent at the end of third quarter.

 

Norwegian Property has a strong position in the Scandinavian office- and hotel market. The portfolio of attractive properties is characterized by low vacancy levels, long contracts and an underlying potential for rent uplift. This, combined with a strengthened financial platform and improved economic prospects make the company well positioned for a positive future development."

 

 

Acting CEO and CFO Mari Thjømøe

Telephone: +47 90 77 78 24

Email: mari.thjomoe@norwegianproperty.no

 

Investor relations Director Elise Heidenreich

Telephone: +47 95 14 11 47

Email: elise.heidenreich@norwegianproperty.no