Norwegian Property ASA posted a profit from continuing operations before tax and fair value adjustments of NOK 86.1 million in the third quarter of 2010, compared with a profit of NOK 33.8 million in the corresponding prior-year period. Gross income amounted to NOK 250.7 million, compared to NOK 258.0 million in the same period last year. Operating profit before financial items and fair value adjustments totaled NOK 217.3 million, compared with NOK 208.5 million in the three months ending 30 September 2010. Total value adjustments for the office portfolio amounted to 0.2 per cent in the quarter, which equates to NOK 28.6 million. The profit from continuing operations before tax for the third quarter of 2010 amounted to NOK 140.7 million, compared with NOK 241.5 million in the corresponding period in 2009.

In October 2010 Norwegian Property a binding agreement was entered for the sale of the group's hotel business to a company controlled by Pandox AB, Eiendomsspar AS and Sundt AS. The hotel business has consequently been accounted for as discontinued operations with a net loss after tax of NOK 943.9 million in the third quarter. After tax and result for discontinued operations the loss in the period was NOK 868.5 million in the third quarter 2010 compared to a profit of NOK 182.8 million in the same quarter last year.

CEO Olav Line says in a comment:

"With the agreed sale of Norgani Hotels AS we are now completing the work of focusing Norwegian Property as a pure play office company. At the same time we are  releasing the financial resources necessary for developing Norwegian Property from a financial to a industrial property company.

The office business saw positive results in the third quarter, the result reflects a stable and good operation for the company's core business. The market development in the third quarter is still improving.

The group's leverage was further reduced during the quarter, both as a consequence of positive fair value adjustments and ordinary amortizations of debt. Net Loan to Value (net interest bearing debt as a percentage of property values) was reduced by 2.8 percentage points from 72.4 percent to 69.6 percent, and will decrease further to 63.4 per cent when the sale of Norgani Hotels has been completed and the effect of the seller credit is included. From the beginning of the year net Loan to Value has been reduced by 13.0 percentage points from 76.4 percent.

Contact IR and media

CEO Olav Line
Phone:   +47 48 25 41 49
E-mail:   olav.line@norwegianproperty.no

CFO Svein Hov Skjelle
Phone:   +47 93 05 55 66
E-mail:   svein.hov.skjelle@norwegianproperty.no