Norwegian Property ASA achieved a profit before income tax and value adjustments of NOK 90.2 million in the first quarter 2011, an increase of 15.8 per cent relative to the corresponding period last year. Gross income was NOK 253.7 million, compared with NOK 262.6 million in the first quarter of 2010. After total value adjustments of investment properties of NOK 327.7 million, Norwegian Property achieved profit before income tax of NOK 559.0 million in the first quarter 2011, up from NOK 4.5 million in the corresponding period in 2010.

New rental contracts, increasing market rent levels combined with yield compression especially for shorter term contracts resulted in positive value adjustments of 2.4 per cent for the property portfolio in the first quarter of 2011. As a result, book value per share came in at NOK 10.99 per share, up from NOK 10.01 per share at year-end 2010 (EPRA: NOK 11.62 at the end of the first quarter 2011).
 

CEO Olav Line says in a comment:

"We are pleased with the positive development Norwegian Property demonstrates as a fully integrated office property company. Operational performance in the first quarter was solid, and the company secured several new lease contracts with positive rent uplift.

Leverage ratio (loan to value, LTV) was further reduced during the quarter, and with a net LTV for the group of 64.6 per cent (60.7 per cent including seller credit of NOK 600 million) at the end of March 2011 the company operates within the long term goal of having a loan to value between 55 per cent and 65 per cent.

Norwegian Property has after the end of the first quarter accepted offer and terms for new credit facilities enabling freedom of action and investment capacity. New credit facilities of NOK 10 billion in total secure a solid financial platform and a diversified maturity profile for the company's debt. With the refinancing in place the transformation of Norwegian Property is completed, and the company appears as well positioned for industrial value creation."
 
 

For further information, please contact:

Olav Line, CEO
Telephone: +47 482 54 149 
Email: ol@npro.no

Svein Hov Skjelle, CFO
Telephone: +47 930 55 566 
Email:  shs@npro.no

Elise Heidenreich-Andersen, IR director
Telephone: +47 951 41 147 
Email: eha@npro.no

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.