Norwegian Property fourth quarter 2009: New strategic direction for Norwegian Property
Norwegian Property ASA achieved a profit before tax and fair value adjustments of NOK 72.9 million in the Fourth Quarter of 2009, up 25 percent compared with the corresponding period in the preceding year. Gross rental income amounted to NOK 430.1 million, corresponding to a decrease of 4.5 percent from fourth quarter 2008 adjusted for sale of properties. Operating profit before fair value adjustments was NOK 342.2 million, compared with NOK 389.2 million in the same period of the foregoing year. Total value adjustments for the property portfolio came to -1.2 percent in the quarter, corresponding to NOK -283.2 million, of which commercial properties had a positive value adjustment of 0.2 percent whereas the hotel portfolio was adjusted downwards by 3.5 percent. Profit before tax amounted to NOK -276.3 million in the Fourth Quarter 2009, compared with NOK -2 508.2 million in the corresponding period of 2008.
In the Fourth Quarter Norwegian Property has renegotiated a total of 40 office rental agreements, which resulted in an aggregate increase in rent levels of 18.8 percent for these contracts.
CEO Olav Line says in a comment:
"Norwegian Property delivers Fourth Quarter results for 2009 reflecting stable, good operations, and a satisfactory cash flow. In terms of market development, 2009 has been a challenging year, but for office properties the market seems to be about to turn, and an improvement is expected going forward. The hotel market lies slightly behind in the cycle, but the negative development is expected to turn towards the end of 2010.
After the end of the Fourth Quarter the management has in co-operation with the Board of Directors completed a thorough strategic review, and initiated a process aiming to separate Norwegian Property into two, independent companies, within office and hotel business respectively. Both the office and hotel operations are to be further developed into leading market players in their field. The goal is to create long-term value as fully integrated property companies, focusing on the value drivers letting, property management, development, transactions and financing."
contact ir & media
CEO Olav Line
Telephone: +47 48 25 41 49
CFO Svein Hov Skjelle
Telephone: +47 93 05 55 66
Director Investor Relations Elise Heidenreich-Andersen
Telephone: +47 95 14 11 47