Announcements
NPRO: 4Q 2019 – Strategic acquisitions and divestments increase the profit in the quarter
During the fourth quarter Norwegian Property has acquired Lille Grensen 7 in Oslo City center, situated near by the Norwegian Parliament, Stortinget. The property’s gross value was NOK 710 million. Settlement of the sale of properties at Gardermoen took place as planned in December. The divestment of the remaining 50% share in Badehusgata 33-39 AS in Stavanger was also finalized in December. The transactions are in accordance with Norwegian Property’s strategy to focus the company’s capital to areas with synergies or other comparative advantages.
Vinslottet at Hasle opened in fourth quarter. All the apartments in the project have been sold, and 69 out of 223 apartments were delivered to end users during fourth quarter. The sale of the apartments contributed with NOK 383 million of revenues and NOK 25 million of pre-tax profit.
The company signed a new NOK 460 million bond agreement in December. The proceeds were used to finance the acquisition of the Lille Grensen 7. The loan was settled in January 2020 with maturity in December 2024.
Through the transactions in 2019 the company has continued its focus on creating a future-oriented and efficient operational organization. The cost base has been reduced substantially from 2018 to 2019, despite the high operational activity and the new strategic acquisitions.
Pre-tax profit came to NOK 485.1 million (NOK 183.4 million). After NOK 88.9 million in provision for deferred tax, net profit for the period came to NOK 396.1 million. That represented fourth-quarter earnings per share (EPS) of NOK 0.74. Carried equity per share at 31 December 2019 was NOK 16.68, up from NOK 15.94 at the end of the third quarter.
Link to webcast (in Norwegian): https://channel.royalcast.com/webcast/hegnarmedia/20200207_1/
For further information, please contact:
Bent Oustad, CEO, mob: +47 4801 6082, e-mail: bo@npro.no
Haavard Rønning, CFO, mob. +47 400 200 19, e-mail: hr@npro.no
This information is subject of the disclosure requirements according to §5-12 of the Norwegian Securities Trading Act (’Verdipapirhandelloven’).