(Oslo, 28 April 2008)

Rental income for Norwegian Property was NOK 474.1 million in the second quarter compared to NOK 243.8 million in the same quarter last year. Profit before tax, value changes and interests on acquisition financing was NOK 128.6 million. After value adjustments derivatives, fair value adjustment properties and interest expenses on acquisition financing, loss before tax was NOK 1,071.8 million.

Market value for the group's portfolio of investment properties was NOK 28.5 bn at the end of June. Net asset value per share was NOK 39.51 (NOK 39.65 based on the EPRA-standard).

Highlights for the quarter:
 
  • Net Asset Value per share after completed equity issue is nok 39.51. Adjusted Net Asset Value based on the EPRA-standard is nok 39.65.
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  • Positive change in market value of financial derivative instruments was NOK 543.2 million in the second quarter (NOK 400.7 million for the first half year). Total market value of financial derivatives was NOK 1,026.2 million at the end of second quarter.
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  • Negative fair value adjustment of investment property was NOK 1,688.0 million (5.6%) in the second quarter (NOK 1,809.4 million for the first half year).
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    -         Total market value of the property portfolio (before tax adjustments) is NOK 28,512 million.
    -         Implicit net yield based on current payable rents of 6.1%.
    -         Implicit net yield if fully adjusting for the rent reversionary potential on the office portfolio is 6.6%.
     
  • Rental income was NOK 474.1 million in the second quarter of 2008 (NOK 243.8 million in the same quarter in 2007) and loss before tax was NOK 1,071.8 million (pre tax profit of NOK 1,141.7 million in the same quarter in 2007).
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  • Rights offering raising NOK 2,500 million completed in July. Funds raised will be used for take out of minorities in Oslo Properties with put/call options and strengthening of balance sheet. Loan To Value (LTV) post equity issue and value adjustments in second quarter is approximately 75%. The rights offering was implemented after discontinuation of a sales process relating to Norgani Hotels and Oslo Properties.
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  • Widar Salbuvik elected new chair of the Board of Directors on the ordinary general assembly in May. Hans Herman Horn, Hilde Vatne and Helene Jebsen Anker were elected as new members of the Board of Directors on an extraordinary general assembly in July. Torstein Tvenge, Jostein Devold and Anne Birgitte Fossum continue to serve on the Board of Directors.
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    After completion of the rights issue Norwegian Property is in a better position to work towards long term goals. We will continue to focus actively on strenghening the balance sheet, but can use necessary time and efforts to obtain the market prices in possible sales. At the same time we will continue to focus on renewals of rental contracts and development of the properties, to secure that rental income going forward reflects the current strong rental markets," says President and CEO Petter Jansen in a comment.

    The report for the first half year 2008 and the presentation is available on: www.norwegianproperty.no.

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