NPRO 2Q 2013: NEW LEASES AWARDED AND PEAK LEVEL IN REDEVELOPMENT ACTIVITY
Norwegian Property achieved a pre-tax profit of NOK 114.6 million for the second quarter of 2013. Rental income totalled NOK 203.4 million, yielding an operating profit before fair-value adjustments of NOK 160.3 million. After realised financial items, profit before fair-value adjustments came to NOK 56.1 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 totalled NOK 1.3 million for investment properties and NOK 57.2 million for financial derivatives. After NOK 39.2 million in tax expense, profit for the period came to NOK 75.4 million. This yielded ordinary earnings per share of NOK 0.14 for the second quarter. A dividend of NOK 0.20 was paid during the period. Carried equity per share came to NOK 9.29 per share at 30 June 2013, down from NOK 9.35 per share at 31 March 2013 (EPRA: NOK 10.29 at 30 June 2013).
CEO Olav Line says in a comment: “We have seen high activity on the letting side in the second quarter. A total of 31 contracts comprising an annual rental income of NOK 96.9 million have been entered into, of which NOK 78.0 million is related to the development projects at Aker Brygge. Most of the contracts have a long duration and will secure a long term cash flow after completion of the projects. 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.”
Please find attached the financial report for the second quarter 2013 as well as the presentation material used in today’s presentation.
Webcast link: http://webtv.hegnar.no/webcast.php?id=77673
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: email@example.com
Svein Hov Skjelle, CFO, Telephone: +47 930 55 566, Email: firstname.lastname@example.org