(Oslo, 28th April 2008)

Rental income for the Norwegian Property Group was NOK 471.2 million in the first quarter compared to NOK 248.6 million in the same quarter last year. Profit before tax, value changes and interests on acquisition financing was NOK 125.1 million. After value adjustments derivatives, fair value adjustment properties and interest expenses acquisition financing, loss before tax was NOK 166.9 million.

Market value for the group's portfolio of investment properties was NOK 31.1 bn at the end of March. Net asset value per share (EPRA NAV) was NOK 70.15 (NOK 60.26).


 
Highlights for the quarter:
 
 
  • Rental income was NOK 472.1 million in the first quarter of 2008 (NOK 248.6 million in the same quarter in 2007).
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  • Profit before tax, value changes and interests on acquisition financing was NOK 125.1 million.
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  • After value adjustments derivatives, fair value adjustment properties and interest expenses acquisition financing, loss before tax was NOK 166.9 million (profit of NOK 345.4 million in the first quarter 2007).
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  • Net asset value per share (EPRA) was NOK 70.15 (NOK 60.26).
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  • The hotel markets in the Nordic region are strong with RevPAR (Revenue Per Available Room) growth between 6% and 12% so far in 2008  (per February). RevPAR growth for Norgani hotels was significantly higher (+9.6 % to 17.9%). Rental growth in Norgani in the first quarter 2008 was up 20.6 % compared to 2007.
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  • Overall office vacancy in Oslo is now below 4%. Rents are still increasing but at lower pace than earlier. Yields are trending upwards on less attractive properties.
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  • Agreement was signed with NEAS for facility management of the office portfolio. The agreement will secure stable and low property expenses going forward.
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  • Divestment process of non-core assets is proceeding according to plan. Agreements are entered regarding sale of  non-core office properties with a property value of NOK 1.4 bn. Processes are ongoing regarding sale of hotel portfolio.


    • The report for the first quarter 2008 and the presentation is available on: www.norwegianproperty.no.

    For additional information contact:
    CEO,  Petter Jansen, mobile +47 900 98 728
    CFO, Svein Hov Skjelle, mobile +47 930 55 566