NPRO 3Q 2013: TEMPORARY EFFECTS OF HIGH CONVERSION ACTIVITY
Norwegian Property achieved a pre-tax profit of NOK 17.7 million for the third quarter of 2013. Rental income totalled NOK 172.04 million, yielding an operating profit before fair-value adjustments of NOK 139.5 million. After realised financial items, profit before fair-value adjustments came to NOK 20.2 million. Conversion projects under way in the portfolio led to a decline in rental income for several large properties, and to an increase in temporarily vacant space.
Positive fair-value adjustments for financial derivatives came to NOK 63.5 million and negative fair value adjustment for investment properties came to NOK 63.5 million. After NOK 3.8 million in tax income, profit for the period came to NOK 21.5 million. This yielded ordinary earnings per share of NOK 0.04 for the third quarter. Carried equity per share came to NOK 9.32 per share at 30 September 2013, up from NOK 9.29 per share at 30 June 2013 (EPRA: NOK 10.19 at 30 September 2013).
CEO Olav Line says in a comment: “The first smaller parts of the refurbishment of Aker Brygge is now in the final stages, but at the same time we are in the most demanding project phase with many parallel projects running. During the second half of this year office tenants will relocate to the new offices in Verkstedhallen and Bryggegaten 7-9. In the beginning of the fourth quarter the minor part of the new shopping street is opening.
Our main focus is project execution and leasing. The demand for offices in the Oslo market is healthy and there is limited new build activity. With a positive market outlook, a high level of rental activity and good operation, the work of developing the potential in the portfolio is continuing.”
Webcast link: http://webtv.hegnar.no/presentation.php?webcastId=12272423
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