Norwegian Property expects a profit before tax for the fourth quarter of approximately mnok 522 (mnok -13 in the third quarter). The positive development in the Norwegian property market is positively impacting the valuation of the company's investment properties. In addition the company has seen a positive revaluation of the company's financial hedging contracts.  

 

The preliminary results for the 4th quarter will be released on 16 February. Invitation to the presentation will be submitted on Oslo Børs.

Norwegian Property expects a profit before tax for the fourth quarter of approximately mnok 522 (mnok -13 in the third quarter).
 
Expected rental income for the fourth quarter is mnok 203 (mnok 181 in the third quarter). In addition the company has received rental payments on the development property Aker Hus and guaranteed rental payments on acquired properties totalling mnok 27.

 

Expected operating cost for the fourth quarter is mnok 32 (mnok 23 in the third quarter), which includes expenses related to the IPO and other expenses related to the establishment of the company totalling mnok 11.
 
Gain for fair value adjustment of the group' portfolio of the investment properties totals mnok 393 (mnok 0 in the third quarter). A more detailed report on the value of the properties will be included in the presentation on 16 February. Operating profit after fair value adjustment is expected to be mnok 564 (mnok 158 in the third quarter).

 

Net financial items is expected to be mnok -41 (mnok -171 in the third quarter) and reflects a positive development of mnok 106 in the market value of financial hedging contracts which does not qualify for hedge accounting. Net financial items have been charged with mnok 15 in interests relating to the development project Aker Hus, an equity bridge in connection with bridge financing of Aker Hus and expensing of previously accrued draw down fees in connection with refinancing. The groups profit before tax in the third quarter is consequently expected to be mnok 522 (mnok -13 in the third quarter).

 

Norwegian Property's properties are mainly located in central areas of Oslo and Stavanger. The market for office properties in these areas is positively influenced by high demand and low vacancy ratios. The supply of space and development of new areas is limited. The rents are as a consequence rapidly increasing. This positive development is expected to continue during the rest of 2007.

 

For additional information contact:
CEO Petter Jansen, mobile +47 900 98 728
CFO Svein Hov Skjelle, mobile +47 930 55 566