(Oslo, 11 August 2010) Northern Logistic Property ASA reports positive fair value adjustment of properties of NOK 197 million for the second quarter 2010, and net earnings of NOK 160 million. The company signed several new rental agreements in the quarter, while observing increasing market activity.
"The second quarter showed continued positive development for NLP. The valuation of our properties increased, several new lease agreements were signed, we report positive net earnings and we are strengthened financially. This allows us to remain fully focused on operations and our property development ambitions", says Per Gunnar Rymer, CEO of Northern Logistic Property ASA.
Second quarter highlights:
· Revenue for the second quarter 2010 amounted to NOK 92.3m (NOK 103.7m). The year-over-year decrease of 11.0% was mainly driven by the sale of five properties in November 2009, somewhat increased vacancy, and negative CPI rent adjustments for 2010. Net operating income was NOK 78.4m (NOK 95.5m)
· Annual contractual rent level was NOK 371m at the end of the second quarter, based on currency rates at June 30, 2010.
· Second quarter maintenance and other property expenses amounted to 15.0% of revenue (7.9%) mainly due to higher costs associated with vacancies that impact the property expenses negatively.
· Earnings before fair value adjustments and taxes (EBVAT) were NOK 27.1m (NOK 60.6m).
· Fair value adjustments of investment properties were positive, NOK 196.5m. The positive value adjustment stems from both a continued effort to let vacant areas and increase contract lengths as well as a general market improvement. The gross value of NLP's investment properties was NOK 5,020,0m at June 30, 2010.
· Operational cash flow was negatively affected by an increase in working capital of NOK 22.1 million mainly due to payment of costs accrued in the first quarter for snow removal. Thus net cash flow from operating activities was weak in the second quarter, at NOK 3.6 million (NOK 70.3 million) or NOK 0.10 per share (NOK 2.64). Interest bearing debt was repaid by NOK 45.3 million in the quarter.
· Cash and cash equivalents stood at NOK 267.3 million at the end of the quarter, down from NOK 327.0 million at the end of 2009.
· Net debt, adjusted for cash and cash equivalents, was NOK 3,571.1m. Net debt corresponded to 71.1% of the total value of the investment properties at 30 June 2010, compared to 74.2% at the end of the first quarter.
· Total equity was NOK 1,190.8 million at the end of the quarter, and the equity ratio increased from 19.5% at the end of the first quarter 2010 to 22.1% at the end of the second quarter of 2010.
· Value adjusted equity per share was NOK 34.1 at the end of the quarter.
· During the quarter, NLP signed two lease contracts in Bleket 2, Karlstad; a four years lease agreement with Pictura AB for 9,800 sq. meters starting and February 2011 and an extended and increased four years lease agreement for 4,314 sq. meters (previously 3623 sq. meters), starting October 1, 2010. A three year lease for 1,820 sq. meters in Sköns Prästbord 2:4 in Sundsvall was also signed during the quarter.
· NLP signed a six year rental agreement in, Fröträdet 1, Växjö, for 18,260 sq. meters with Scandinavian Supply Chain (SSC) and the contract starts October 1, 2013. At the same time, a cooperation agreement with SSC was signed, with an aim to work together to achieve a "full house" in 2014 when the current contract ends.
The company will give a presentation today at 08:30 CET at Felix Conference Centre, Aker Brygge, Oslo. The presentation will also be broadcasted live on www.nlpasa.com
Listen in: To listen in to the conference from a telephone, please dial one of the following numbers:
Norway Free Call: 800 19640
International Dial In: +44 (0)20 7806 1950
UK Free Call: 0800 028 1243
USA Free Call: 1888 935 4575
The conference ID is 6745706
For further information, please see published report and presentation, or contact:
Per Gunnar Rymer, CEO: +47 907 77 627, email: per.gunnar.rymer@nlpasa.com
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)