NPRO 4Q 2011 - POSITIONED FOR VALUE CREATION
Norwegian Property ASA posted a profit before tax and fair-value adjustments of NOK 85.6 million in the fourth quarter of 2011, a decrease of 1.0 per cent from the corresponding prior-year period. Gross rental income amounted to NOK 255.3 million, compared with NOK 250.4 million in the fourth quarter of 2010. After fair-value adjustments, profit before tax for the fourth quarter of 2011 came in at NOK -137.2 million, down from NOK 149.6 million in the same period in 2010. The company posted a loss after tax of NOK 218.8 million for the three months to 31 December 2011, compared with a profit after tax of NOK 145.5 million in the same period of 2010. With that, the company achieved earnings per share (EPS) in the fourth quarter of NOK -0.43. Book value per share was NOK 10.36 at 31 December 2011, up from NOK 10.01 per share at the end of the fourth quarter of 2010 (EPRA: NOK 11.67 at the end of fourth quarter 2011).
The company had a positive cash flow from operating activities of NOK 21.4 million in the fourth quarter, compared with NOK 245.4 million in the corresponding prior-year period. At the end of the fourth quarter of the year the consolidated net loan to value ratio was 64.8 per cent, down from 66.7 per cent at the end of December 2010. Adjusted for the effect of the vendor loan note issued to the purchasers of Norgani, the net loan to value ratio at the end of the reporting period was 61.0 per cent. Estimated net loan to value ratio after completion of the announced property transactions is 62.0 per cent pro forma as of 31 December 2011 and 57.9 per cent pro forma adjusted for the vendor loan.
The board will propose to the annual general meeting to distribute NOK 0.20 per share in dividend for the financial year 2011.
CEO Olav Line says in a comment:
”Through 2011 Norwegian Property has further strengthened its position as a focused and fully integrated office property company. During the year, new credit facilities have been established, securing the company a solid financial platform with a diversified debt maturity profile and funding capacity for future investments. In line with Norwegian Property’s strategy of active portfolio development, the company has entered into several agreements to buy and sell properties, and thereby strengthened its presence at Aker Brygge.
Extensive reconstruction and upgrading projects will be started in 2012 in order to further develop Aker Brygge’s strong position as Oslo’s most attractive office area and district. During 2011 the company has established a competent organization with dedicated responsibility for the development projects, and the organization has accomplished comprehensive project planning, risk assessments and quality control of the various stages of the projects. The reconstruction period is expected to go on for about four years, and will periodically lead to increased vacancy in the parts of the portfolio involved in the project. Going forward, attracting new tenants to the renovated buildings will be a key priority, and several long-term leases have been secured already.
Going into 2012, the company appears well positioned to implement the investment plans which are laid in order to release the full potential of the company’s property portfolio.”
Please find attached the financial report for the fourth quarter of 2011 as well as the presentation material used in today’s presentation.
Webcast link: http://webtv.hegnar.no/webcast.php?id=45086
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
Svein Hov Skjelle, CFO
Telephone: +47 930 55 566
Elise Heidenreich-Andersen, SVP IR
Telephone: +47 951 41 147