Norwegian Property ASA achieved a profit for continuing operations before tax and fair value adjustment of NOK 86.5 million in the fourth quarter 2010, compared with NOK 41.2 million in the corresponding period the year before. Gross rental income totalled NOK 250.4 million, compared with NOK 261.9 million in the fourth quarter 2009. After fair value adjustment, profit before tax for continuing operations came to NOK 149.6 million in the fourth quarter 2010, compared with NOK 63.0 million in the corresponding period in 2009. Profit including discontinued operations and tax totalled NOK 348.8 million in the fourth quarter 2010, compared with a loss of NOK 168.2 million in the same quarter in 2009.

CEO Olav Line comments:

"2010 was a year of change for Norwegian Property. We have focussed the company around offices after the sale of Norgani Hotels. We have transformed the company from a financial to an industrial player, and have established in-house organisations for property management and development. We have also strengthened our marketing organisation and finance function. All our efforts are now focussed on our long term goals of becoming the most customer oriented office company in Norway and to deliver a return on equity of at least 12%.

The office business continues to deliver positive results in the fourth quarter. The operational result reflects a stable and good business; and the operational cash flow is solid. The improving market conditions continued in the fourth quarter.

The financial position of the company is also improving. During 2010 we have reduced our leverage (Loan To Value) with 13 percentage points from 75.7 per cent to 62.7 per cent ( the vendor financing related to Norgani Hotels is included).

Some may have expected a positive fair value adjustment of our properties in the fourth quarter. We currently have an average remaining duration on our leases of around 5.2 years. However, the external valuers still factor in uncertainty relating to the properties with shorter leases. We have started to see a trend in the Norwegian property market whereby the investors gradually are taking on more risk. At the same time, most of our operational focus is directed towards properties with leases maturing in the period before 2015. We are fortunate to be in a position where expiry of these lease contracts coincides with an improving rental market."

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