Norwegian Property ASA posted a profit before tax and fair-value adjustments of NOK 84.6 million in the third quarter of 2011, a decrease of 1.7 per cent from the corresponding prior-year period. Gross rental income amounted to NOK 259.2 million, compared with NOK 250.7 million in the third quarter of 2010. After unrealized fair-value adjustments, profit before tax for the third quarter of 2011 came in at NOK -257.2 million, down from NOK 140.7 million in the same period in 2010. The company posted a loss after tax of NOK 178.3 million for the three months to 30 September 2011, compared with a profit after tax of NOK 76.0 million in the same period of 2010. With that, the company achieved earnings per share (EPS) in the third quarter of NOK -0.36. Book value per share was NOK 10.78 at 30 September 2011, up from NOK 9.30 per share at the end of the third quarter of 2010 (EPRA: NOK 12.10 at the end of third quarter 2011).

The company had a positive cash flow from operating activities of NOK 205.7 million in the third quarter, compared with NOK 22.8 million in the corresponding prior-year period. At the end of the third quarter the consolidated net loan to value ratio was 64.0 per cent, down from 69.2 per cent at the end of September 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 60.2 per cent.

CEO Olav Line says in a comment:

” Norwegian Property delivers increased rental income in the third quarter and a solid cash flow from the company’s operations. The loan to value ratio is further reduced during the quarter, and within the company’s long term target range. As of the end of September portfolio vacancy came to 5.1 per cent, which represents a decrease from 6. 2 per cent at the end of the second quarter 2011, and is lower than the general market vacancy rate in the Oslo area.

Letting activity has been high in Norwegian Property during the third quarter, with 21 new or extended contracts to a total value of NOK 49 million. In line with the company’s strategy for active portfolio development, Norwegian Property has during the third quarter entered into agreements to acquire four office sections at Aker Brygge and to sell one property outside the strategic focus area of Norwegian Property. Norwegian Property regards the transactions as attractive both in financial and operational terms.

It is particularly uplifting that the results from the customer survey conducted by Norsk Leietakerindeks (NLI) show a remarkable progress in total customer satisfaction (CSI) compared with corresponding ratings from 2009. The company has since 2010 followed a focused strategy to improve customer service and to increase closeness to tenants, through initiatives such as establishing an in-house call centre for customer support and an in-house department for property management and maintenance. This has resulted in measurable improvements in the form of total CSI increasing from 60 to 66 on the NLI scale. The results from the customer survey act as an inspiration to intensify the efforts to reach the company’s long term goal of a customer satisfaction exceeding 70.”

Please find attached the financial report for the third quarter of 2011 as well as the presentation material used in today’s presentation.

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: ol@npro.no

Svein Hov Skjelle, CFO

Telephone: +47 930 55 566

Email: shs@npro.no

Elise Heidenreich-Andersen, SVP IR
Telephone: +47 951 41 147

Email: eha@npro.no