Norwegian Property ASA posted a profit before tax and fair value adjustments of NOK 125.5 million in the first quarter of 2010, compared with a profit of NOK 133.1 million in the corresponding prior-year period. Gross rental income amounted to NOK 428.3 million, which, adjusted for the sale of property, corresponds to a decrease of 2.6 per cent from the first quarter of 2009. Operating profit before fair value adjustments totalled NOK 359.8 million, compared with NOK 376.9 million in the three months ending 31 March 2009. Total value adjustments for the property portfolio amounted to 0.2 per cent in the quarter, which equates to NOK 47.2 million. Both the hotel and commercial property portfolio recorded value increases during the quarter. The profit before tax for the first quarter of 2010 amounted to NOK 54.4 million, compared with NOK -933.9 million in the corresponding period in 2009.

CEO Olav Line says in a comment:

 

"Norwegian  Property posted a profit before tax in the first quarter. Operating profit reflects a stable and good operation in the quarter. Both the hotel and office-portfolios recorded positive value adjustments.

 

The market development in the first quarter confirms that the office market is recovering. We are also starting to see signs that the hotel-market is turning. The volcano on Island may temporarily impact the market negatively.

 

The work to separate the company into two independent companies for the respective office and hotel businesses is continuing. At the same time we are gradually transforming both the hotel and office businesses into fully integrated property companies with in house competence on both development and property management.

 

The group's leverage has been significantly reduced during the quarter, both as a consequence of the equity issue, positive fair value adjustments and ordinary amortizations of debt. Loan to Value (loan as a percentage of property values) are reduced by 4.2 percentage points from 77.7 percent to 73.5 percent (proforma).

 

 

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

 

 

 

 
 
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)