Norwegian Property said it expects to report pre-tax profit for the second quarter of NOK 1.142 bn (EUR 142.2 mln), compared with NOK 345 mln in the in the first quarter. The company said the lift in profit was due to a positive result from operations, strong rental growth in the property market and the resulting revaluation of the group's portfolio of commercial properties.
Norwegian Property said it expects to report pre-tax profit for the second quarter of NOK 1.142 bn (EUR 142.2 mln), compared with NOK 345 mln in the in the first quarter. The company said the lift in profit was due to a positive result from operations, strong rental growth in the property market and the resulting revaluation of the group's portfolio of commercial properties.
Total value adjustments for the company’s property investments came in at NOK 830 mln in the second quarter, taking the value of the entire portfolio to NOK 19.088 bn. The main contributors to the positive revaluation were the continued strong development in market rents and the reduction in the market's required yield gap.
'Rental growth is still strong, in particular in central areas of Oslo and Stavanger, where Norwegian Property has most of our properties. We recently signed a contract of NOK 4,300 (EUR 536) per square metre at Aker Brygge, but we believe it is just a matter of time before this record is beaten,' said ceo Petter Jansen.
The company said it will release its full earnings report for the second quarter on 10 August.
