NPRO - SALE OF THE HOTEL BUSINESS AND FOCUS ON LONG-TERM VALUE CREATION

Norwegian Property ASA posted a profit from continuing operations before tax and
fair value adjustments of NOK 86.1 million in the third quarter of 2010,
compared with a profit of NOK 33.8 million in the corresponding prior-year
period. Gross income amounted to NOK 250.7 million, compared to NOK 258.0
million in the same period last year. Operating profit before financial items
and fair value adjustments totaled NOK 217.3 million, compared with NOK 208.5
million in the three months ending 30 September 2010. Total value adjustments
for the office portfolio amounted to 0.2 per cent in the quarter, which equates
to NOK 28.6 million. The profit from continuing operations before tax for the
third quarter of 2010 amounted to NOK 140.7 million, compared with NOK 241.5
million in the corresponding period in 2009.
 
In  October 2010 Norwegian Property a binding agreement was entered for the sale
of the group's hotel business to a company controlled by Pandox AB, Eiendomsspar
AS  and Sundt  AS. The  hotel business  has consequently  been accounted  for as
discontinued  operations with a net  loss after tax of  NOK 943.9 million in the
third  quarter. After tax and result for discontinued operations the loss in the
period  was NOK 868.5 million in the third  quarter 2010 compared to a profit of
NOK 182.8 million in the same quarter last year.
 
CEO Olav Line says in a comment:
 
"With the agreed sale of Norgani Hotels AS we are now completing the work of
focusing Norwegian Property as a pure play office company. At the same time we
are  releasing the financial resources necessary for developing Norwegian
Property from a financial to a industrial property company.
 
The office business saw positive results in the third quarter, the result
reflects a stable and good operation for the company's core business. The market
development in the third quarter is still improving.
 
The group's leverage was further reduced during the quarter, both as a
consequence of positive fair value adjustments and ordinary amortizations of
debt. Net Loan to Value (net interest bearing debt as a percentage of property
values) was reduced by 2.8 percentage points from 72.4 percent to 69.6 percent,
and will decrease further to 63.4 per cent when the sale of Norgani Hotels has
been completed and the effect of the seller credit is included. From the
beginning of the year net Loan to Value has been reduced by 13.0 percentage
points from 76.4 percent.
 
Contact IR and media
 
CEO Olav Line
Phone:   +47 48 25 41 49
E-mail:   olav.line@norwegianproperty.no
 
CFO Svein Hov Skjelle
Phone:   +47 93 05 55 66
E-mail:   svein.hov.skjelle@norwegianproperty.no
 
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
 
[HUG#1455608]
 
NPRO 3Q 2010 Report: 
http://hugin.info/136749/R/1455608/395462.pdf
 
NPRO 3Q 2010 Presentation: 
http://hugin.info/136749/R/1455608/395463.pdf
 
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Source: Norwegian Property ASA via Thomson Reuters ONE