NPRO: 3Q 2019 – Acqusition of properties, efficient operations and refinancing
Norwegian Property has experienced another quarter with high activity and good demand in the office rental market in Oslo. The company has entered into contracts for NOK 33 million during the quarter. The cost base continues to fall and reflects the high operational activity and the steadily decreasing vacancy in the portfolio.
The portfolio of properties in the core areas Aker Brygge and Nydalen was expanded in the third quarter through the acquisition of new commercial units in the Stranden property at Aker Brygge and the purchase of the Gjerdrums vei 3 and Gjerdrums vei 5 in Nydalen. The new properties in Nydalen connect with the group’s existing property holdings and have the potential for further development. The acquisitions in the third quarter have a gross asset value of NOK 125 million and accord with Norwegian Property’s strategy of focusing the company’s capital in areas which offer synergies with rest of the portfolio.
The company signed two new loan agreements in the third quarter at good terms. The bank credit facilities were refinanced with a new NOK 1 billion RCF. In addition, the NOK 350 million bond was refinanced with a new bond of NOK 505 million, secured with a mortgage in Bryggegata 7-9 and Støperiet at Aker Brygge. Both facilities were disbursed at the beginning of October 2019, and they will contribute to prolonged time to maturity for the company’s financing.
Pre-tax profit came to NOK 243.7 million (NOK 195.4 million) and net profit for the period came to NOK 201 million. That yielded ordinary earnings per share (EPS) of NOK 0.38 for the third quarter. Carried equity per share came to NOK 15.94 at 30 September 2019, up from NOK 15.62 at 30 June. The board of directors has approved a dividend of NOK 0.07 per share to be distributed to the registered shareholders as of 14 November 2019 (ex. Date is 28 October 2019).
Link to webcast (in Norwegian): https://webtv.hegnar.no/presentation.php?webcastId=98161583
For further information, please contact:
Bent Oustad, CEO, mob: +47 4801 6082, e-mail: email@example.com
Haavard Rønning, CFO, mob. +47 400 200 19, e-mail: firstname.lastname@example.org
This information is subject of the disclosure requirements according to §5-12 of the Norwegian Securities Trading Act (’Verdipapirhandelloven’).