Preliminary results for the first quarter 2013

The complete financial report for the first quarter 2013 will be released on 3 May 2013. Gross income in the first quarter 2013 was NOK 224.8 million based on preliminary results (compared to NOK 222.7 million in the fourth quarter 2012). Profit before changes in market values was preliminary 75.9 million (NOK 63.7 million). After positive changes in market value of financial derivative instruments of NOK 17.0 million, negative changes in market value of investment property of NOK 443.1 million and a positive change in deferred tax income the loss before tax for the period was NOK 271.1 million. Book equity per share was NOK 9.35 as of 31 March 2013 and net asset value (EPRA) was NOK 10.41.

As in previous periods the valuation of investment property is based on two external and independent valuations. Based on the valuations the negative change in market value was NOK 443.1 million, corresponding to around three per cent of the total property values at the beginning of 2013. Norwegian Property has in the period finalised the construction contracts for both Drammensveien 134 and Stranden 5 (Kaibygg 1). The contract terms reflect a construction market with limited capacity and price pressure. In addition Norwegian has a strong focus on optimizing the projects in relation to quality and project implementation in order to maximize the future value of the different properties. In Drammensveien 134 Norwegian Property has decided to replace the existing four buildings with a complete new building; thus the new project will be a complete new build both from a market perspective and in relation to future management of the property.

NOK 323 million of the negative change in market value of investment property is related to the development projects. The adjustment corresponds to around 12 – 13 per cent of estimated investments for the period 2013 to 2016. The remaining NOK 120 million is related to properties with high vacancy and short remaining duration of the lease term.

During the first quarter new contracts and extensions of lease contracts totaling an annual rental income of NOK 28.3 million have been signed.

The complete report with additional information will be released on 3 May 2013 as previously communicated.

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


For further information, please contact:

Olav Line, CEO, telephone, +47 482 54 149, Email:

Svein Hov Skjelle, CFO, telephone: +47 930 55 566, Email: