Norwegian Property ASA is continuing to expand, and its accounts for the third quarter of 2006 confirm that the company is on course.

     Rental income for the period totalled NOK 181 million, and operating profit came to NOK 158 million. The pre-tax loss was NOK 13 million, reflecting the current build-up phase.

     Nine attractive commercial properties were acquired during the third quarter, and the portfolio had increased to 40 high-quality holdings at 30 September.

     Norwegian Property paid NOK 13.2 billion for these properties. An independent valuation shows that the market value of the portfolio has increased by NOK million since 30 June.

     "We are sticking to our strategy, and are well under way in positioning ourselves as Norway's leading property company," says chief executive Petter Jansen.

     "We have a very conscious attitude about the types of property we want in our portfolio, and have therefore rejected a number of offers. We're concentrating on high-quality commercial properties in attractive locations.

     "Our tenants include a number of Norway's largest and most reputable companies, and virtually everything we own is covered by leases."

     Operating costs for the quarter came to NOK 23 million.

     Since Norwegian Property commenced operations in reality in May 2006 and acquired its first 28 properties on 9 June, it has no comparative figures for 2005.

     Including 22 days of activity in the second quarter, the company had a rental income of NOK 212 million to 30 September, an operating profit of NOK 181 million and a pre-tax profit of NOK 17 million.

     Norwegian Property's holdings had a book value of NOK 13.2 billion at 30 September, while its equity totalled NOK 3.5 billion. The equity ratio was 25.6 per cent.

     The company acquired Aker House on 16 October for NOK 1.5 billion, bringing the portfolio to 41 properties purchased at a total cost of NOK 14.3 million.

     Following the Aker House acquisition, the company's leases have an average remaining term of almost eight years. The properties cover 590 000 square metres, of which 99 per cent is leased.

     Gross rental income for the 41 properties will amount to roughly NOK 900 million on an annual basis.

     The portfolio has been acquired at an average implicit net yield after tax adjustments of roughly six per cent. Norwegian Property plans a stock market listing during the fourth quarter.

 

 

Petter Jansen, president and CEO, Norwegian Property ASA, tel: +47 90 09 87 28

Svein Hov Skjelle, chief financial officer, Norwegian Property ASA, tel: +47 93 05 55 66