.
Annual report 2024 Norwegian Property ASA
Directors’ report 16
Directors’ report
About Norwegian Property
The commercial real estate company Norwegian
Property ASA owned 31 commercial properties in
Norway as at 31 December 2024. All of them are
located in the Oslo region.
The market value of the group’s property portfolio
was NOK 27.9 billion as at 31 December 2024. These
properties primarily comprise office premises with
the associated warehousing and car parks as well as
retail and restaurant space. The group has a major
investment in the residential development company
Nordr. Norwegian Property also has a joint venture
which is related to a development project in
Stavanger.
The business is organised in the parent company
Norwegian Property ASA with subsidiaries. With its
head office at Aker Brygge in Oslo, the group had 71
employees as at 31 December 2024. Of the
employees, 36 are employed in the commercial real
estate business and 35 are caretakers and other
operational staff at the properties.
Norwegian Property’s articles of association state:
“The Company operates in management,
acquisitions, sales and development of real estate
and infrastructure, including participation in other
companies and through trading and investment in
interest/units and securities as well as businesses
which are related to such.”
The business in 2024
Market and letting
Letting market
Office vacancy
Office vacancy in Oslo is low and below the historical
average, which is largely due to the limited supply for
new office space. High construction costs combined
with rising yields have resulted in the supply of new
office space being well below the historical average.
The rents required to initiate new projects are higher
Highlights in 2024
Major investment in the property portfolio
•
The takeover of the 88,000 sqm property at
Martin Linges vei 33 was completed in 2024.
Equinor is the main tenant with a long-term
lease. The takeover is in line with the strategy
to increase the property portfolio in areas
where the company has other assets.
•
Norwegian Property will continue its efforts to
expand and develop its business through
acquisitions and by pursuing long-term
development opportunities in the existing
portfolio.
Norwegian Property’s rental income is growing
significantly and the group continues to deliver
strong results from its operations
•
Following new and improved leases, the CPI
adjustments at the start of the year and the
expansion of the property portfolio rental
income increased by 25 per cent compared
with last year.
•
Profit before income tax and value
adjustments improved by 19 per cent.
•
Positive fair-value adjustments for investment
properties and financial derivatives of NOK
910 million (3.4 per cent) and NOK 33 million,
respectively.
The company has successfully carried out
significant financing activities
•
Equity issue of NOK 500 million as part of the
financing of the takeover of the property at
Martin Linges vei 33.
•
Refinancing of major 2025 debt maturities
were completed in 2024. Norwegian
Property’s financial position is sound,
including a high equity ratio and a healthy
loan-to-value ratio.
Quarterly dividends distributed throughout the
year
•
Paid dividends totalling NOK 348 million.
•
A total of NOK 0.54 per share.
Annual report 2024 Norwegian Property ASA
Directors’ report 17
than the market rents for the existing high-standard
offices. Most of the space being added in 2025 is
pre-leased, the confirmed space added in 2026 is
limited, so we likely won't see a larger supply until
2027 at the earliest.
Office vacancy in Oslo was 6.6 per cent overall at the
end of 2024 (6.1 per cent at the start of the year), 10.2
per cent in Nydalen (10.0 per cent) and 5.1 per cent
in the city centre (4.9 per cent). Office vacancy at
Fornebu was 19.1 per cent at the end of 2024 (19.0
per cent).
Office rents
Office rents have risen in 2024 across all areas where
Norwegian Property operates, which was primarily
due to limited availability of office space.
After a period of significant rental price growth, the
market is now stabilised. Companies are focusing on
costs, thereby leading to cautious relocation
attitudes and longer decision-making. The future of
rental prices will depend on the Norwegian
economy, in which only moderate growth is
expected in the short term.
Retail
Norwegian Property’s Aker Brygge in Oslo features
numerous restaurants, comprising half of the
ground floor run-rate, along with retail spaces. The
retail property at Hasle in Oslo also includes both
retail stores and restaurants.
The retail and restaurant sectors are closely tied to
consumption patterns. Over time, physical retail has
faced challenges related to e-commerce, from both
domestic and international platforms. In recent
years, the retail and restaurant industry has faced
challenges from higher interest rates, inflation, and
reduced consumer spending.
Letting activity
New and renegotiated leases were signed in 2024
with an annual rental uplift totalling NOK 73 million
(NOK 87 million). Expired leases totalled NOK 73
million (NOK 51 million). Therefore, net letting came
in at break-even (NOK 36 million).
The takeover of new properties, new and
renegotiated lease agreements as well as KPI
adjustments resulted in a substantial revenue
increase in 2024. The total annual rental income (run
rate) from the company’s property portfolio
increased by 15 per cent during the year and was
NOK 1,487 billion by the end of the year (NOK 1,295
billion).
The reported rental income has increased from year
to year in recent years and the increase from last
year amounts to 25 per cent.
Overall financial vacancy in the property portfolio
totalled 6.3 per cent as at 31 December 2024 (4.7 per
cent), which was primarily related to the properties
at Fornebu.
The weighted average remaining duration of the
leases increased from 5.3 to 5.8 years in 2024.
Financing
Financing market
The financing market for the property sector has
been challenging over the past years, with rising
market interest rates and margins as well as limited
access to capital from banks and bond investors.
During 2024, the liquidity in the bond market for
property related transactions has improved
substantially. Credit margins are also improving for
the property sector.
The Central Banks among Norway’s main trading
partners have cut the interest rates in 2024. Norway’s
Central Bank stated in its monetary policy meeting in
December 2024 that, as inflation approaches the set
target, it expects to cut the rate in 2025.
Financing activities
The group’s net LTV ratio related to the fair value of
investment properties and investments in joint
ventures is 51.8 per cent (50.4 per cent). Bonds
accounted for 31 per cent (40 per cent) of its
borrowings as at 31 December 2024. This was in
addition to 40 per cent related to bilateral loans (33
per cent) and 29 per cent related to bank facilities
(27 per cent).
Norwegian Property has successfully carried out
significant refinancing activities in 2024. In
December, Norwegian Property came to an
agreement to issue NOK 2 billion in new senior
secured bilateral bonds to refinance bonds maturing
on 10 January 2025. The new bonds have terms of 3
Annual report 2024 Norwegian Property ASA
Directors’ report 18
years (NOK 800 million) and 7 years (NOK 1.2
billion). Both are secured with a mortgage on the
property at Martin Linges vei 33.
Loans maturing in 2025 amount to NOK 6,015
million, and the available unused credit facilities
amount to NOK 623 million at year-end.
Floating interest rates and margins have increased in
2024. Average interest rates increased from 4.39 per
cent to 4.84 per cent and average margins increased
from 1.53 per cent to 1.76 per cent during the year.
As at 31 December 2024, 54.0 per cent (70.1 per
cent) of the group’s interest-bearing debt was
covered by interest-rate hedges with an average
term of 4.5 years (4.8 years).
Interest-bearing debt in the balance sheet totalled
NOK 16,121 million as at 31 December 2024 (NOK
13,988 million), with non-current interest-bearing
debt accounting for NOK 10,106 million and current
interest-bearing debt for NOK 6,015 million.
NOK 5.1 billion of the company's bonds are listed on
the Oslo Stock Exchange.
Property transactions
Transaction market
Over the past few years, increasing interest rates and
limited access to financing has slowed the property
transaction market, after several years with a high
level of activity at sharp yield levels.
In 2024, activity in the transaction market has picked
up and it is expected that this trend will continue in
2025, given that the interest rate peak has been
passed and access to financing has improved.
The prime yield for the Oslo CBD at the end of 2024
is estimated to be 4.50 per cent, down from 4.75 per
cent at the end of last year.
Transactions conducted
Norwegian Property has a strategy to strengthen the
portfolio of properties in its main priority areas in the
Oslo region by the acquisition of additional
properties and by further developing the existing
property portfolio. The strategy to strengthen the
portfolio is flexible in order to adapt to market
opportunities as they arise.
Martin Linges vei 33
The takeover of the property at Martin Linges vei 33
was completed in the first quarter of 2024. The
property with 88,000 sqm is located at Fornebu and
won the Best Office in the World Architecture
Festival upon completion. Equinor is the main tenant
in the property with a long-term lease. Norwegian
Property owns the neighbouring property at both
Snarøyveien 30 and 36.
Norwegian Property has three core areas: Oslo CBD,
Nydalen and Fornebu, and the takeover of the Martin
Linges vei 33 property is a strategically important
addition for Norwegian Property that entails an
increased presence at Fornebu.
Plots at Fornebu
Norwegian Property acquired a plot of approx.
10,000 sqm from Statsbygg in the first quarter of
2024. The plot is situated between Snarøyveien 30
and 36 and it is currently zoned as a park. The plot
increases the outdoor areas for the properties.
Norwegian Property acquired the company Koksa
Eiendom AS in the third quarter of 2024, which owns
plots of 12,500 sqm in connection with the
company’s property at Martin Linges vei 33 on
Fornebu.
Investment in Nordr
Norwegian Property owns Nordr as a joint venture
together with Fredensborg and Union Real Estate
Fund III. At the end of 2024, Nordr had 882 flats
under construction, including tenant owned units,
and a land bank of 13,000 units in Norway and
Sweden. The land bank is mainly located in the
largest Norwegian and Swedish cities with an
emphasis on eastern Norway and the extended
Stockholm capital region in Sweden. Nordr’s
business consists of both wholly owned and partly
owned plots and projects.
Norwegian Property’s share of the net profit relating
to Nordr was NOK 19 million for 2024 (net loss of
NOK 55 million).
During 2024, sales agreements were entered into
regarding 843 (444) residential units. The
construction started on 418 (419) units, and a total of
909 (1,008) units were delivered. A total of 533
residential units are expected to be delivered during
2025.
Annual report 2024 Norwegian Property ASA
Directors’ report 19
Norwegian Property’s share of net assets in the
balance sheet as at 31 December 2024 was NOK 956
million. Independent appraisers have valued the
company’s plots higher than at acquisition, raising
Norwegian Property’s NAV metrics without affecting
the investment’s book value.
Strategic goals
Competitive return with balanced risk
Norwegian Property has a goal of paying 30-50 per
cent of its ordinary profit after tax, but before fair-
value adjustments, as a dividend to its shareholders.
Before a dividend is determined, an assessment will
be made of the group’s financial position and
prospects, including the possible increased capital
requirements when investing in properties as well as
changes to the income base when properties are
sold.
High tenant satisfaction
Norwegian Property’s vision is to create meeting
places which encourage engagement and provide
favourable conditions for developing interpersonal
relationships. The group works to ensure a high level
of tenant satisfaction. This contributes in turn to a
good reputation and is important for retaining
existing tenants and attracting new ones.
Environmental improvements in line
with the best in the industry
Corporate environmental and social responsibility is
broadly defined and includes clearly defined targets
for measures to protect the environment as well as
high aesthetic standards for buildings and outside
areas in the local environment. The group’s strategy
and goals are outlined in the report on corporate
social responsibility.
Investment strategy
Norwegian Property has an investment strategy with
the emphasis placed on the following main
parameters:
- leading player for office and associated
commercial property in selected areas of
the Oslo region
- prioritise properties close to public
transport hubs, and seek to create natural
property clusters in the group’s priority
areas
- seek to have 5 to 15 per cent of the
portfolio’s area under development over
time
- active management of the portfolio
through transactions, including the
purchase of properties with value
development potential.
Financing strategy
Norwegian Property’s ambition is to deliver a
competitive return over time with a balanced
financial risk profile. The main parameters of its
financial strategy are:
- to set a goal wherein the LTV ratio will be a
maximum of 45-55 per cent of the total
value of the group’s investment properties
over time
- to base borrowing on long-term
relationships with banks and other players
pursuing a long-term strategy in the
Norwegian property market
- to seek to diversify funding sources and the
maturity structure to reduce refinancing
risk
- to have an ambition to achieve a stable
development in cash flow which requires a
relatively high level of interest-rate hedging,
where such hedging will be a minimum of
50 per cent of the group’s interest-bearing
debt, with the term of the hedging
weighted against the term of the leases
while also being spread over the period to
avoid excessive exposure at specific points
in time.
Risk and risk management
Through its activities, Norwegian Property manages
major financial assets which are exposed to
substantial risk factors, such as development
projects, interest rates and the letting market. The
management model is based on an appropriate
delegation of responsibility for profits, clearly
defined operational parameters and internal control.
Overall targets are established and then further
refined through the continuous updating of the
group’s strategy. On the basis of this strategy along
with the values and ethical guidelines, an overall
management instruction has been established with
Annual report 2024 Norwegian Property ASA
Directors’ report 20
the specification of authorities for delegating
responsibility to defined roles in the organisation.
Guidelines have, furthermore, been established for
managing and handling risk in the most important
risk areas, such as operations and finance. Based on
these overall guidelines, governing processes and
routines have been established for the day-to-day
management of the group. The board regularly
reviews the group’s formal documents.
The administration prepares periodic reports which
are reviewed at board meetings. These reports are
based on the management reviews of the various
parts of the business, and they contain an update of
the status in relation to targets, important
operational conditions, financial conditions and a
description of the status of risk areas. Quarterly
financial reports are also prepared and then
reviewed by the audit committee ahead of the board
meeting. In connection with the presentation of the
interim and annual financial statements, the
executive management prepares estimates and
makes assumptions about the future. The
accounting estimates are subject to uncertainty.
Estimates and assumptions with the greatest
potential effect on book values in future periods are
related to investment property.
The group has taken out insurance with an insurance
company for the directors and officers of all group
companies for their possible liability to the company
and third parties. The insurance amounts up to NOK
150 million per claim and in total during the year.
Norwegian Property assesses risk on an ongoing
basis as part of the daily operations. A
comprehensive annual review of the risks associated
with the group is carried out in collaboration with all
the relevant levels of the organisation. Each risk
factor is described and presented with the possible
negative outcomes. The analysis of the risk factors
includes the following main groups of risks.
Financial risks
The group’s financial risks primarily relate to
changes in equity as a result of adjustments to the
value of the property portfolio, the effect of interest-
rate changes on profits and liquidity, liquidity risk
and profit effects when refinancing debt and
implementing major projects.
Efforts are made to manage the effect of interest-
rate changes on profits and liquidity through
hedging. As at 31 December 2024, 54.0 per cent
(63.9 per cent) of the group’s interest-bearing debt
was covered by interest-rate hedges with an average
term of 4.5 years (4.8 years). Fluctuations in short-
and long-term market interest rates will, therefore,
have a limited impact on the group’s interest
expenses before changes in the value of derivatives.
All the group’s interest-rate swaps are used as
economic hedges. Hedge accounting is not applied.
The group’s credit facilities incorporate financial
covenants related to the interest cover ratio and the
LTV ratio. Norwegian Property was in compliance
with these and other conditions in the credit
agreements related to its liabilities as at 31
December 2024.
Market risk
Norwegian Property is exposed to changes in market
rents, vacancy in the portfolio, turnover-based rents
and the rate of inflation. The group has a significant
proportion of long-term leases. The commercial
property leases provide fixed revenues over their
term. The majority of the leases are fully adjusted for
changes in the consumer price index (CPI).
Increases in market interest rates can lead to
increased yield levels for the group’s properties,
which in turn can affect the valuations of the
properties.
Project risk
Generally speaking, major construction projects
may involve risk relating to such aspects as the
future letting ratio and level of rents for converted
areas, cost overruns on procurement and planning,
delays, delivery shortfalls and market developments.
Credit risk
Norwegian Property’s portfolio of office properties is
characterised by high quality, central locations and a
financially sound and diversified set of tenants. Bad
debts have been limited in recent years. Tenants of
the group’s office properties normally pay rent
quarterly in advance. In addition, most leases
require security for rent payments in the form of
either a deposit account containing a sum
equivalent to three to six months of rent or a bank
Annual report 2024 Norwegian Property ASA
Directors’ report 21
guarantee. The group checks the credit rating and
history of new tenants. As a result, the risk of direct
losses from defaults or payment problems is limited
and primarily relates to the re-letting of premises.
Liquidity risk
The group’s goal is to have sufficient liquidity and
credit facilities to meet its obligations, including
existing development projects. It also seeks to
maintain a sensible level of liquidity to meet
unexpected commitments. The financing strategy
aims to maintain flexibility in the market and to cope
with fluctuations in rental income. Liquidity should
be secured by unused revolving credits and
overdraft facilities rather than bank deposits.
Norwegian Property has a high level of hedging
against fluctuations in market interest rates, which
reduces the need for liquidity to meet unexpected
commitments in these areas. Other liquidity risk
relates first and foremost to servicing instalments on
and redemption of loans. The group generates a
positive cash flow from operations.
As at 31 December, the group had an interest-
bearing debt of NOK 16,121 million (NOK 13,988
million). The remaining term of the debt was 2.4
years (2.8 years). Debt maturing and instalments
due during 2025 are recognised as current liabilities
in the consolidated balance sheet as at 31 December
2024. At the same date, the group had a liquidity
reserve including undrawn borrowing facilities of
NOK 623 million (NOK 3,086 million).
The group seeks at all times to maintain a liquidity
buffer tailored to the redemption profile of its debt
and the ongoing short-term fluctuations in its
requirements for working capital as well as the
requirements which follow from current and planned
projects being pursued by the group at any given
time.
Social and governance risk
Social and governance risks are related to the risks
related to human rights, decent working-conditions,
equality and non-discrimination among employees,
non-discrimination of people with disabilities in
properties as well as outdoor areas and corruption.
The group has worked to uncover risks within the
social and governance areas of sustainability. These
are described in more detail in the sustainability
report.
Climate risk
Physical climate risk is, for example, related to
increased precipitation and higher sea levels.
Climate transition risk is related to the demand for
environmentally-friendly premises, environmental
requirements from investors/banks, insurance,
technological risk, reputational risk and increased
CO
2
taxes.
Climate risks are described in more detail in the
sustainability report.
Group accounts
The consolidated financial statements have been
prepared in accordance with the International
Financial Reporting Standards (IFRS), and consistent
accounting principles are applied to all the periods
presented.
Going concern assumption
Pursuant to the requirements of the Norwegian
Accounting Act, the board confirms that the going
concern assumption is realistic. The financial
statements for 2024 have been prepared on that
basis.
Income statement
Revenues
Total rental income amounted to NOK 1,386 million
for 2024, which is up from NOK 1,110 million in 2023.
Operating expenses
Property-related operational expenses totalled NOK
89 million (NOK 83 million). Other property-related
expenses came to NOK 90 million (NOK 74 million).
Administrative owner expenses were NOK 68 million
(NOK 68 million).
No costs related to research and development
activities were recognised in the financial statements
for either 2024 or 2023.
Annual report 2024 Norwegian Property ASA
Directors’ report 22
Share of profit in joint ventures
The total share of profit from joint ventures was
positive at NOK 1 million (negative of NOK 56
million). The share of profit from Nordr was positive
at NOK 19 million and the share of profit from
Forusbeen 35 was negative at NOK 18 million.
Project related write-downs have negatively affected
the share of the net result from Forusbeen 35 in
2024.
Operating profit before fair-value
adjustments
Operating profit before fair-value adjustments was
NOK 1,141 million (NOK 830 million).
Net realised financial items
Financial income, which consists largely of interest
income, totalled NOK 96 million (NOK 42 million).
Financial expenses, primarily interest expenses and
other costs related to the group’s financing, were
NOK 775 million (NOK 484 million).
Profit before income tax and value
adjustments
Profit before tax and fair-value changes came to
NOK 462 million compared with NOK 388 million for
2023.
Fair-value changes of investment
property and interest-rate derivatives
Positive fair-value changes to the group’s property
portfolio of 3.4 per cent totalled NOK 910 million in
2024 (negative of NOK 3,150 million), related to
reduced yield levels for the company’s properties,
improved market rents as well as new and improved
leases.
The fair-value adjustment for interest-rate derivatives
showed a positive change of NOK 33 million
(negative change of NOK 4 million).
Net profit
Profit before tax was NOK 1,405 million (loss of NOK
2,766 million). The increase in the provision for
deferred tax was NOK 379 million in 2024 (reduction
of NOK 418 million).
Cash flow
Net cash flow from operating activities was NOK 491
million (NOK 561 million). Profit before tax and fair-
value adjustments came to NOK 462 million in 2024.
The difference compared with net cash flow from
operating activities relates to the profit from joint
ventures and to changes to working capital items.
Net cash flow from investing activities was negative
at NOK 393 million (NOK 2,414 million). The capital
spendings in 2024 of NOK 371 million in total is
mainly related to the tenant adaptations for new and
renegotiated leases, ongoing operational
investments as well as a positive effect related to
cash from the takeover of the property at Martin
Linges vei 33. Other investing activities for 2024 is
related to changes in interest-bearing receivables.
Net cash flow from financial activities in 2024 was
positive at NOK 48 million (NOK 1,994 million). The
net decrease of interest-bearing debt came to NOK
104 million. A capital increase of NOK 500 million
was carried out as well as dividend payments of NOK
348 million.
The net increase in cash and cash equivalents was
NOK 146 million (NOK 141 million).
Balance sheet and liquidity
The carrying amount of the group’s total assets in
the balance sheet was NOK 29,884 million (NOK
26,111 million), with investment property accounting
for NOK 27,667 million (NOK 23,518 million) and
properties used by the owner for NOK 106 million
(NOK 145 million). Non-current receivables
amounted to NOK 152 million (NOK 231 million),
related to the rental guarantee provided by the seller
of the property at Snarøyveien 30. Investment in joint
ventures was NOK 956 million (NOK 933 million).
The group held NOK 471 million (NOK 326 million) in
cash and cash equivalents. In addition, the group
had unused drawing rights of NOK 623 million (NOK
3,086 million).
Total interest-bearing liabilities in the balance sheet
came to NOK 16,121 million (NOK 13,988 million),
with non-current interest-bearing liabilities totalling
NOK 10,106 million (NOK 10,778 million) and current
interest-bearing liabilities amounting to NOK 6,015
million (NOK 3,211 million). Current interest-bearing
Annual report 2024 Norwegian Property ASA
Directors’ report 23
debt as at 31 December 2024 relates to facilities
maturing in 2025.
The average interest rate for the group’s loans,
including payments for interest-rate derivatives,
amounted to 4.84 per cent as at 31 December 2024
(4.39 per cent), while the interest-rate margin
averaged 1.76 per cent (1.53 per cent). The
remaining term to maturity for interest-bearing debt
was 2.4 years (2.8 years). Financial derivatives
related to interest hedging accounted for a net asset
item of NOK 174 million (NOK 141 million). The
remaining term to maturity for the derivatives was
4.5 years (4.8 years).
Equity as at 31 December totalled NOK 11,598 million
(NOK 10,412 million), representing an equity ratio of
38.8 per cent (39.9 per cent). The book value of
equity per share was NOK 17.36 (NOK 16.18).
Valuation of the properties
An independent appraiser (Cushman & Wakefield)
has valued the properties in the company’s portfolio
based on the same methods and principles applied
for previous years. In addition, the company has
prepared a valuation based on similar principles.
The accounting valuation as of 31 December 2024 is
based on an average of the two valuations.
The valuation models used for the assessments are
based on discounting cash flows related to existing
leases and the value of market rents after the expiry
of existing leases. Individual assessments of current
expenses, upgrading costs and the risk of vacancy
are made on a property-by-property basis.
The executive management and the board have
made independent assessments of parameters
which affect the value of the group’s properties,
including developments in interest rates, market
rents, occupancy, the yield level on property
transactions and the quality of the properties. The
conclusion is that the valuations can be used as a
basis for assessing the fair value of the properties.
Total market value of the group’s property portfolio
was NOK 27,925 million as at 31 December 2024
(NOK 23,894 million).
Events after the balance sheet
date
In accordance with the mandate from the AGM in
2024, the board resolved on 28 January 2025 that a
dividend of NOK 0.14 per share will be paid on the
basis of the accounts as at 31 December 2024.
No other significant incidents since 31 December
2024 provide information concerning the conditions
which existed at the balance sheet date.
Parent company accounts and
allocation of net profit
The parent company, Norwegian Property ASA,
made a net loss of NOK 28 million in 2024 (NOK 6
million).
The board proposes that the net loss of NOK 28
million and the provision of NOK 94 million for the
dividend are allocated from the share premium as
presented in the annual accounts.
Pursuant to the requirements of the Norwegian
Accounting Act, the board confirms that the going
concern assumption is realistic. The financial
statements for 2024 have been prepared on that
basis.
The 2024 AGM
The annual general meeting (AGM) was held on 19
April 2024. All resolutions were adopted as proposed
in the notice of the meeting. The AGM re-elected
Bjørn Henningsen as Chair, and Kathrine Astrup
Fredriksen, Cecilie Astrup Fredriksen and Lars Erich
Nilsen as directors.
Shareholder
An equity issue of NOK 500 million was carried out in
the fourth quarter of 2024 as part of the financing of
the takeover of the property at Martin Linges vei 33.
The share capital was increased by NOK
12,463,343.28, from NOK 331,411,053.96 to NOK
343,874,397.24, by the issuance of 24,437,928 new
shares, each with a nominal value of NOK 0.51. In
addition, the shareholding in Norwegian Property
ASA was transferred to a different holding company
within the same ownership structure as part of an
internal restructuring.
Annual report 2024 Norwegian Property ASA
Directors’ report 24
As of 31 December 2024, Norwegian Property ASA
has a share capital of NOK 343,874,397.24 divided
into 674,263,524 shares, each with a par value of
NOK 0.51. Norwegian Property ASA owns 6,250,000
treasury shares. Realty Holdings (NOR) Ltd. owns
the remaining 668,013,524 shares in the company.
Sustainability reporting and
corporate governance
A presentation on corporate governance has been
included in the annual report to cover the group’s
principles and practice in this area.
The group has prepared a separate sustainability
report as well as reports covering reporting duties
pursuant to Norway’s Equality and Discrimination
Act and the Transparency Act. These reports are
available on the company’s website and will be
published at the same time as the annual report.
At the end of 2024, the group employed 71 people
(48 men and 23 women). The total sick leave
amounted to 614 days, or 3.9 percent of all working
days.
Outlook
Norwegian Property has a strategy for growth in its
core commercial property business as well as an
ambition to consider opportunities in other property
segments.
Norwegian Property will continue its efforts to
expand and develop its business through additional
acquisitions as well as by pursuing several
interesting long-term development opportunities in
the existing property portfolio.
Currently, the supply of new properties is limited in
the Oslo market, with the exception of Construction
City and parts of the new “Regjeringskvartalet”. In
order to increase new build offices, the yields must
decrease, building costs must decrease or the rents
must increase substantially, or a combination of
these factors. The shortage of new supply will
contribute to increase the demand for available high
quality office space and the rent levels will most
likely continue to rise.
Property values have shown a positive development
in 2024. Capital is now available from several
different funding sources.
Norwegian Property’s financial position is sound,
with a high equity ratio and a relatively low loan-to-
value ratio. The company has a highly diversified
portfolio of tenants in the public sector and various
private business segments. This contributes to the
company being well positioned in order to handle
any possible uncertainty and having a continued
focus on the strategy of expanding and developing
the business further.
Oslo, 28 March 2025
Norwegian Property ASA
Annual report 2024 Norwegian Property ASA
Annual group accounts 25
Annual group accounts
Consolidated income statement 1 Jan-31 Dec
(Amounts in NOK million)
Note 2024 2023
Rental income for commercial property 15, 16 1,386.4
1,109.6
Revenues 1,386.4
1,109.6
Property-related operational expenses 18 (88.6) (82.5)
Other property-related expenses 18 (89.5) (73.9)
Total property-related expenses (178.2) (156.4)
Administrative expenses 18, 19 (68.0) (67.5)
Total operating expenses (246.2) (224.0)
Share of profit in joint ventures 8 1.0
(55.8)
Operating profit before value adjustments 1,141.3
829.8
Change in fair value of investment property and rental guarantee 6 909.8
(3,150.3)
Operating profit 2,051.0
(2,320.4)
Financial income 9, 17 95.9
42.3
Financial expenses 9, 17 (774.8) (483.9)
Net financial items (678.8) (441.6)
Change in fair value of interest derivatives 9, 10 33.0
(3.9)
Net financial items (645.8) (445.4)
Profit before income tax 1,405.2
(2,765.8)
Income tax 14 (379.3) 417.8
Profit for the year 1,025.9
(2,348.1)
Profit attributable to non-controlling interests -
-
Profit attributable to shareholders of the parent company 1,025.9
(2,348.1)
Basic earnings per share attributable to parent company shareholders (amounts in NOK) 21 1.59
(3.65)
Diluted earnings per share attributable to parent company shareholders (amounts in
NOK)
21 1.57
(3.63)
Notes 1 to 26 are an integral part of the consolidated financial statements.
Annual report 2024 Norwegian Property ASA
Annual group accounts 26
Consolidated statement of comprehensive income 1 Jan-31 Dec
(Amounts in NOK million)
2024 2023
Profit for the year 1,025.9 (2,348.1)
Value adjustment of owner-occupied property 6 2.3 (13.6)
Income tax related to value adjustment and depreciation of owner-occupied property 14 (0.5) 3.0
Other comprehensive income that will not be reclassified to profit or loss, net of tax 1.8 (10.6)
Share of foreign currency translation reserve in joint ventures 8 6.7 30.3
Other comprehensive inc. that subsequently may be reclassified to profit or loss, net of tax 6.7 30.3
Total other comprehensive income for the year 8.5 19.7
Total comprehensive income for the year 1,034.4 (2,328.4)
Total comprehensive income attributable to shareholders of the parent company 1,034.4 (2,328.4)
Total comprehensive income attributable to non-controlling interests -
-
Notes 1 to 26 are an integral part of the consolidated financial statements.
Annual report 2024 Norwegian Property ASA
Annual group accounts 27
Consolidated balance sheet as at 31 Dec
(Amounts in NOK million)
Note 2024 2023
Financial derivative instruments 3, 9, 10 186.4
147.6
Investment property 6 27,666.8
23,517.7
Owner-occupied property 6 106.4
144.9
Other fixed assets 7 28.6
30.3
Investment in joint ventures 8 955.8
933.2
Receivables 11 151.8
231.1
Total non-current assets 29,095.9
25,004.8
Financial derivative instruments 3, 9, 10 1.2
3.6
Receivables 9, 11 315.9
777.0
Cash and cash equivalents 3, 9 471.4
325.6
Total current assets 788.4
1,106.2
TOTAL ASSETS 29,884.3
26,111.0
Share capital 20 343.8
331.4
Treasury shares 20 (3.1) (3.1)
Share premium 4,260.4
3,773.2
Other paid-in equity 6,997.0
6,310.2
Retained earnings -
-
Total equity 11,598.2
10,411.6
Deferred tax 14 1,740.3
1,360.5
Financial derivative instruments 3, 9, 10 13.2
-
Interest-bearing debt 9, 13 10,105.7
10,777.8
Other liabilities 9, 12 2.0
2.6
Non-current liabilities 11,861.2
12,140.9
Financial derivative instruments 3, 9, 10 -
9.8
Interest-bearing debt 9, 13 6,015.0
3,210.6
Other liabilities 9, 12 409.9
338.1
Total current liabilities 6,424.9
3,558.5
Total liabilities 18,286.1
15,699.4
TOTAL EQUITY AND LIABILITIES 29,884.3
26,111.0
Notes 1 to 26 are an integral part of the consolidated financial statements.
Oslo, 28 March 2025
Norwegian Property ASA
Annual report 2024 Norwegian Property ASA
Annual group accounts 28
Changes in the group’s equity
Note
Share
capital
Treasury
shares
Share
premium
Other paid-in
equity
Retained
earnings
Total equity
(Amounts in NOK million)
Total equity 31 December 2022 324.9
(3.1) 3,280.0
7,563.3
1,397.1
12,562.1
Profit for the year
-
-
-
(1,253.1) (1,095.0) (2,348.1)
Other comprehensive income for the year
-
-
-
-
19.7
19.7
Total comprehensive income for the year -
-
-
(1,253.1) (1,075.3) (2,328.4)
Paid dividend 22 -
-
-
-
(321.8) (321.8)
Share issue 22 6.5
-
493.2
-
-
499.7
Total contributions by and distributions to
owners of the parent
6.5
-
493.2
-
(321.8) 177.9
Total equity 31 December 2023 331.4
(3.1) 3,773.2
6,310.2
-
10,411.6
Profit for the year
-
-
-
1,025.9
-
1,025.9
Other comprehensive income for the year
-
-
-
8.5
-
8.5
Total comprehensive income for the year -
-
-
1,034.4
-
1,034.4
Paid dividend 22 -
-
-
(347.5) -
(347.5)
Share issue 22 12.5
-
487.2
-
-
499.7
Total contributions by and distributions to
owners of the parent
12.5
-
487.2
(347.5) -
152.2
Total equity 31 December 2024 343.8
(3.1) 4,260.4
6,997.0
-
11,598.2
Notes 1 to 26 are an integral part of the consolidated financial statements.
Annual report 2024 Norwegian Property ASA
Annual group accounts 29
Consolidated cash flow statement 1 Jan-31 Dec
(Amounts in NOK million)
Note 2024 2023
Profit before income tax 1,405.2
(2,765.8)
Paid taxes 14 -
-
Net financial items 9, 17 645.8
445.4
Interest received 9, 17 95.9
42.3
Interest paid 13, 17 (727.9) (432.1)
Interest income on guarantee receivables 6 (5.8) (5.7)
Depreciation of tangible assets 6, 7 6.2
7.1
Change in fair value of investment property 6 (909.8) 3,150.3
Profit and loss from joint ventures 8 (1.0) 55.8
Change in rental guarantee receivables 6 62.1
55.2
Change in current items (80.0) 8.7
Net cash flow from operational activities 490.7
561.1
Payment for investment in investment property 6
(369.0)
(2,000.7)
Payment for investment in other fixed assets 7
(2.2)
(3.2)
Net change of loans to joint ventures 8
(22.0)
(60.7)
Dividends received from joint ventures 8
-
106.3
Other investing activities 11
-
(456.0)
Net cash flow from investing activities
(393.2)
(2,414.4)
Repayment of interest-bearing debt 13
(3,616.0)
(1,834.5)
New interest-bearing debt 13
3,512.0
3,650.5
Share issues 20
499.7
499.7
Paid dividend 22
(347.5)
(321.8)
Net cash flow from financial activities
48.2
1,993.9
Net change in cash and cash equivalents 145.7
140.5
Cash and cash equivalents at 1 January 3 325.6
185.1
Cash and cash equivalents at 31 December 3 471.4
325.6
Notes 1 to 26 are an integral part of the consolidated financial statements.
Annual report 2024 Norwegian Property ASA
Annual group accounts 30
Notes and other explanatory
information
NOTE 1: General information
The Norwegian Property ASA property group
primarily owns commercial properties in the Oslo
region. Norwegian Property also owns a share (joint
venture) in the residential development company
Nordr. Nordr’s business consists of both wholly
owned and partly owned plots and projects.
Calculated on the basis of the ownership share in the
projects, Nordr has 882 residential units under
construction, including tenant owned units, and a
land bank of approx. 13,000 units in the largest
Norwegian and Swedish cities, with an emphasis on
eastern Norway and the extended Stockholm capital
region in Sweden. Norwegian Property also has a
joint venture with Base Bolig related to a
development project at Forusbeen 35 in Stavanger.
The holding company, Norwegian Property ASA, is a
public limited company with its headquarters at
Bryggegata 3, Oslo (Norway).
The financial statements were adopted by the board
on 28 March 2025 for final approval by the AGM in
2025.
NOTE 2: Summary of material
accounting policies
The principal accounting policies applied in the
preparation of these consolidated financial
statements are set out below. These policies have
been consistently applied to all the years presented,
unless otherwise stated.
2.1 - Basis of preparation
The consolidated financial statements of Norwegian
Property ASA have been prepared in accordance
with the International Financial Reporting Standards
(IFRS) as adopted by the EU and effective as at 31
December 2024, and additional requirements
pursuant to the Norwegian Accounting Act as at 31
December 2024.
The financial statements have been prepared on a
historical cost basis, except for certain financial
assets and liabilities (including derivative
instruments), certain classes of property, plant and
equipment as well as investment property measured
at fair value (see note 4).
Preparation of financial statements in accordance
with the IFRS requires the use of certain critical
accounting estimates. It also requires management
to exercise judgements in the process of applying
the group’s accounting policies. Areas involving a
higher degree of judgement or complexity, or areas
where assumptions and estimates are significant for
the financial statements, are disclosed in note 5.
No significant changes have been made to
accounting policies compared with the principles
used in the preparation of the financial statements
for 2024.
The group has not carried out the early adoption of
any standard, interpretation or amendment that has
been issued but that has not yet been made
effective.
In April 2024, the IASB issued IFRS 18, which replaces
IAS 1 Presentation of Financial Statements. IFRS 18
introduces new requirements for presentation within
the statement of profit or loss, including specified
totals and subtotals. Furthermore, entities are
required to classify all income and expenses within
the statement of profit or loss into one of five
categories: operating, investing, financing, income
taxes and discontinued operations, whereof the first
three are new. It also requires the disclosure of newly
defined management-defined performance
measures, subtotals of income and expenses and it
includes the new requirements for aggregation and
disaggregation of financial information based on the
identified ‘roles’ of the primary financial statements
(PFS) and the notes.
In addition, narrow-scope amendments have been
made to IAS 7 Statement of Cash Flows, which
include changing the starting point for determining
cash flows from operations under the indirect
method, from ‘profit or loss’ to ‘operating profit or
loss’ and removing the optionality around
classification of cash flows from dividends and
interest. In addition, there are consequential
amendments to several other standards.
IFRS 18, and the amendments to the other
standards, is effective for reporting periods
beginning on or after 1 January 2027, but earlier
Annual report 2024 Norwegian Property ASA
Annual group accounts 31
application is permitted and must be disclosed. IFRS
18 will apply retrospectively.
The group will assess the amendments impacts on
the primary financial statements and notes to the
financial statements.
2.2 - Consolidation policies
(A) Businesses
Businesses are all the entities (including structured
entities) over which the group has control. The
group controls an entity where the group is exposed
to, or has rights to, variable returns from its
involvement with the entity and has the ability to
affect those returns through its power to direct the
activities of the entity. Businesses are fully
consolidated from the date on which control is
transferred to the group. They are deconsolidated
from the date that control ceases.
Purchases of single-purpose entities owning only
property, with no employees, management or
recorded procedure descriptions, are not
considered as the acquisition of business (IFRS 3
Business Combinations is not applicable). The cost
of such purchases is capitalised as part of the
acquisition price.
Intercompany transactions, balances and unrealised
gains on transactions between group companies are
eliminated. Unrealised losses are eliminated, but
they are assessed as an impairment indicator in
relation to the transferred asset. Accounting policies
of subsidiaries have been changed where necessary
to ensure consistency with the policies adopted by
the group.
(B) Joint arrangements
The group’s share of the joint venture’s net profit is
presented in accordance with the equity method on
a separate line in the consolidated income
statement, and the investment is similarly
recognised on a separate line under fixed assets in
the balance sheet. The group’s share of gain and
loss from the transactions with the joint venture are
eliminated. Accounting policies in the joint venture
are changed when necessary to achieve conformity
with the accounting policies applied by the group.
2.3 - Segment reporting
Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker. The chief operating
decision maker, responsible for allocating resources
and assessing the performance of the operating
segments, has been identified as corporate
management. See note 15.
2.4 - Foreign currency translation
(A) Functional and presentation currency
Items included in the financial statements of each of
the group’s entities are measured using the currency
of the primary economic environment in which the
entity operates (the functional currency). The
consolidated financial statements are presented in
NOK, which is the parent company’s functional and
presentation currency.
(B) Transaction and balances
Foreign currency transactions are translated into
NOK using the exchange rates prevailing on the
dates of the transactions. Foreign exchange gains
and losses resulting from the settlement of such
transactions and from the translation at year-end
exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in
the income statement.
2.5 - Classification of balance-sheet
items
Financial assets and liabilities are offset and the net
amount is recognised in the balance sheet when
there is a legally enforceable right to offset the
recognised amounts and there is an intention to
settle on a net basis or realise the asset and settle
the liability simultaneously.
2.6 - Investment property
Investment properties are measured initially at cost,
including the transaction costs. Subsequent to initial
recognition, investment properties are stated at fair
value, which reflects market conditions at the
reporting date.
Changes in fair value are recorded in the income
statement under change in fair value of investment
property.
Annual report 2024 Norwegian Property ASA
Annual group accounts 32
Subsequent expenditure is charged to the asset’s
carrying amount only when it is probable that future
economic benefits associated with the item will flow
to the group and the cost of the item can be
measured reliably. Other repair and maintenance
costs are charged to the income statement during
the financial period in which they are incurred. Costs
related to the termination of leases are capitalised if
the main purpose of the termination is linked to a
further development of the property and are
expensed if the main purpose of the termination is
purely a change of tenant.
2.7 - Owner-occupied property
If an investment property is used by the group, it is
reclassified as owner-occupied property unless the
internal use is insignificant. Fair value at the date of
reclassification is the property’s acquisition cost. An
owner-occupied property is accounted for at the
revalued value less the accumulated depreciation
and amortisation. An evaluation of fair value for such
properties is carried out in the same manner as
described for investment properties. An increase in
the value of owner-occupied property is not
recognised in the income statement, but it is
recognised as a change of the revaluation reserve in
comprehensive income. A reduction of the value is
recognised against the revaluation reserve, related
to the revaluation of the specific building. If a
reduction exceeds the revaluation reserve, the
remainder is recognised against the income
statement.
2.8 - Financial instruments
(A) General principles and definitions
Recognition and derecognition
Regular way purchases and sales of financial assets
are recognised on the trade date, being the date on
which the group commits to purchase or sell the
asset. Financial assets are derecognised when the
rights to receive cash flows from the financial assets
have expired or have been transferred and the group
has substantially transferred all the risks and rewards
of ownership.
On the initial recognition of a financial asset or
liability, it is measured at fair value with the exception
of trade receivables, which are measured at the
transaction price with a provision for expected bad
debts on the initial recognition to the extent that
such bad debts have arisen from the letting
business, and where no significant financing
element is included in the transaction price.
Classification
The group classifies financial instruments in the
categories at fair value through profit and loss and at
amortised cost. The classification depends on the
purpose of the instrument, and the group assesses
the classification of financial instruments on their
acquisition.
(B) Financial instruments at fair value through
profit and loss
Financial instruments at fair value through profit and
loss include derivatives unless they are part of
hedging. See note 2.9 related to interest-rate swaps
contracts.
The group’s financial instruments at fair value
through profit and loss also include non-current
receivables related to rental guarantees provided by
the seller of a property, where the seller guarantees
an agreed level for rent and common cost coverage
of vacant premises for an agreed period. The value
of the receivable is calculated as the discounted
value of expected payments under the rental
guarantee. Payments under the guarantee are
accounted for against the receivable and the
receivable will be updated with any changes of the
initial estimate.
(C) Financial instruments at amortised cost
The group’s financial instruments at amortised cost
primarily comprise borrowings and bank deposits as
well as receivables and payables arising from regular
operation.
Borrowings
Borrowings are initially recognised at fair value, net
of the transaction costs incurred. Borrowings are
subsequently stated at amortised cost using the
effective interest method. Any differences between
the proceeds (net of transaction costs) and the
redemption value are recognised in the income
statement over the duration of the borrowings.
Cash and cash equivalents
Cash and cash equivalents are classified at
amortised cost. They include cash on hand, bank
deposits and other current highly liquid investments
Annual report 2024 Norwegian Property ASA
Annual group accounts 33
with original maturities of three months or less. Bank
overdrafts are included in borrowings in the balance
sheet under current liabilities.
Trade receivables and other financial assets
Trade receivables and other financial assets are
classified as financial assets measured at amortised
cost. Interest is ignored if it is insignificant. The
group applies the simplified approach in IFRS 9 to
measure the loss allowance at lifetime expected
credit losses. A provision for bad debt is determined
by estimating the expected credit losses with
reference to the past default experience of the
debtor and an analysis of the debtor’s current
financial position, adjusted for factors that are
specific to the debtors, general economic conditions
of the industry in which the debtors operate and an
assessment of both the current as well as the
forecast direction of conditions on the reporting
date.
There has been no change in the estimation
techniques or significant assumptions made during
the current reporting period. Any subsequent
payments received against accounts for which a
provision has previously been made are recognised
in the income statement. Trade receivables and
other financial assets are classified as current assets,
unless they are due more than twelve months after
the balance sheet date. If so, they are classified as
non-current assets.
Trade payables and other non-interest-bearing
liabilities
Trade payables and other non-interest bearing
liabilities are classified as financial liabilities at
amortised cost, and they are measured at fair value
upon initial recognition, and subsequently at
amortised cost using the effective interest rate
method. Interest is ignored if it is insignificant.
2.9 - Derivatives and hedging
All the group’s interest-rate swaps are used as
economic hedges. Hedge accounting is not applied.
Derivatives are initially recognised at fair value on the
date the derivative contract is entered into and are
subsequently recognised continuously at their fair
value.
Change in the fair value of interest derivatives are
recognised in the income statement under change
in the fair value of interest derivatives.
2.10 - Share capital, treasury shares,
share premium and share options
Shares are classified as equity when there is no
obligation to transfer cash or other assets. Costs
directly attributable to the issuance of new shares or
options are shown in equity as a deduction, net of
tax, from the proceeds. Treasury shares are
deducted from the share capital in the financial
statements.
Employee options represent the rights for
employees to subscribe for shares in the group at a
future time at a predetermined subscription price
(subscription right). Exercise requires continued
employment. The fair value of employee benefits
received in exchange for the granting of options is
calculated as an expense. The total amount to be
expensed over the vesting period reflects the fair
value of the options granted measured at the grant
date. On the balance-sheet date, the group revises
the estimates of the number of options expected to
be utilised and changes in estimates are recognised
in the income statement over the remaining vesting
period with a corresponding adjustment of equity.
The strike price after the deduction of possible
transaction costs is credited to share capital and the
share premium when the option is exercised.
Employer’s tax is accrued on the balance sheet date
as an expense in the accounts on the basis of the
market value of the options (i.e. the difference
between the market value and the strike value of the
shares).
2.11 - Deferred income tax
Deferred income tax is calculated in full on all
temporary differences arising between the tax basis
of assets and liabilities and their carrying amounts in
the consolidated financial statements. However, the
deferred income tax is not accounted for if it arises
from the initial recognition of an asset or liability in a
transaction other than a business combination
which at the time of the transaction affects neither
accounting nor taxable profit or loss. Deferred
income tax is determined using tax rates and tax
laws which have been enacted or substantially
enacted as at the balance-sheet date, and which are
expected to apply when the related deferred income
tax asset is realised or the deferred income tax
liability is settled.
Deferred income tax assets are recognised to the
extent that it is probable that future taxable profit will
Annual report 2024 Norwegian Property ASA
Annual group accounts 34
be available against which the temporary differences
can be utilised.
Deferred income tax is provided on the temporary
differences arising from investments in subsidiaries
and associates, except where the timing of the
reversal of the temporary difference is controlled by
the group and it is probable that the temporary
differences will not reverse soon.
Pursuant to the exception in IAS 12, deferred tax is
not recognised when buying a company which is not
a business. A provision for deferred tax is made after
subsequent increases in the value beyond the initial
cost, while a fall in value below the initial cost will
only reverse previous provisions for deferred tax.
Furthermore, an increase in the temporary
differences related to tax depreciation will give
grounds for a recognition of deferred tax.
2.12 - Revenue recognition
Revenue mainly concerns rental income from
investment properties.
Operating income encompasses the fair value of the
consideration received for services in the ordinary
business. Revenues are presented net of VAT,
discounts and rebates.
The lease agreements include certain services
offered to tenants including common area
maintenance services as well as other support
services. The consideration charged to tenants for
these services mainly includes fees charged based
on the total costs incurred in relation to the
percentage of the rented space. These services are
specified in the lease agreements and are separately
invoiced. The group arranges for third parties to
provide for a significant part of these services to its
tenants. The group does not act as a principal in
relation to these services as it does not control the
specified services before transferring them to the
customer. The group records revenue on a net
basis. Therefore, the operating revenues do not
include the service charges invoiced to tenants.
Accrued service charges are recognised in the
balance sheet together with payments on account
from tenants. The settlement of service charges is
made after the balance-sheet date.
The group earns rental income through operating
leases. Rental income is recognised on a linear basis
over the rental period. Lease incentives in the form
of rent rebates, compensation payments or the like
are distributed over the duration of the lease so that
the income is recognised on a linear basis. The
accrued amount is presented under other
receivables in the balance sheet. Upon a tenant’s
termination, the renegotiated remaining cash flows
are recognised over the remaining period until the
premises are vacated.
Norwegian Property’s rent related to retail and
restaurant leases are partly revenue-based. Such
lease agreements typically contain a minimum rent
and a turnover-based rent. The minimum rent is
recognised on a linear basis over the rental period.
Turnover-based rent is recognised as income on the
basis of the tenant’s reported turnover for the
period. Estimates are used as a basis for revenue
recognition when the reporting is received
subsequent to year-end.
Other variable revenue related to the marina
business, outdoor areas and the energy centre at
Aker Brygge is recognised when the goods or
services are transferred to the customer at the
transaction price.
2.13 - Dividend distribution
Dividend distribution to the shareholders is
recognised as a liability in the financial statements in
the period in which the dividends are approved by
the shareholders.
2.14 - Interest expense
Interest expenses on borrowings are recognised
under financial costs in the income statement using
the effective interest-rate method.
General and specific borrowing costs directly
attributable to the acquisition, construction or
production of qualifying assets, which are assets that
necessarily take a substantial period to complete for
their intended use, are added to the cost of those
assets until the assets are substantially ready for
their intended use.
2.15 - Pensions
Norwegian Property ASA operates a defined
contribution plan for all employees. A defined
contribution pension scheme is an arrangement
whereby the group pays fixed (defined) amounts to a
separate legal entity. The group has no legal or other
Annual report 2024 Norwegian Property ASA
Annual group accounts 35
obligations to pay further amounts. Contributions
are recognised as an employee benefit expense
when they fall due. Prepaid contributions are
capitalised as an asset to the extent that cash
refunds or reductions in future payments are
available.
2.16 - Operating expenses
Property-related expenses include the administrative
costs related to the management of the properties
as well as the operating and maintenance costs.
Other property expenses include income-related
costs which are associated with leasing, marketing
etc. of the properties, the owner’s share of service
charges for the properties and the project-related
property costs.
Administrative expenses relate to the costs which
are not directly related to the operation and letting of
properties, and include costs related to overall
ownership and corporate functions.
Norwegian Property has contracts with tenants to
acquire, on their behalf, joint services associated
with the general operation of the properties. The
lessor provides procurement services (i.e.,
coordinating the selection of suitable suppliers and
managing the ordering and delivery of the joint
services). The group does not have control of the
services before these are transferred to the tenants.
The group is acting as an agent and recognises
revenue at the net amount that is retained for these
arrangements.
NOTE 3: Financial risk management
The group’s activities imply exposure to a variety of
financial risks: market (including foreign exchange,
interest rate and price), credit and liquidity. The
group’s overall risk management programme
focuses on the unpredictability of financial markets
and seeks to minimise the potential adverse effects
on the group’s profit/loss and equity. The group uses
hedging instruments which are designed to mitigate
certain risks. Hedge accounting is not applied.
Risk management for the group is managed by a
corporate treasury department in accordance with
the guidelines approved by the board. Management
identifies, evaluates and hedges financial risks in
close cooperation with the group’s operational units.
The board provides written policies for overall risk
management and written guidelines for specific
areas, such as foreign exchange and interest-rate
risk.
3.1 - Market risk
Foreign exchange risk
The group has no lease agreements with tenants in
foreign currencies, and all the operational costs are,
in practice, in NOK.
Norwegian Property owns a share (joint venture) in
the residential development company Nordr. Nordr
has operations in both Norway and Sweden. The
investment is accounted for in accordance with the
equity method on a single line in the income
statement and balance sheet. The book value in the
balance sheet as at 31 December 2024 amounts to
NOK 955.8 million (NOK 930.1 million). The group’s
share of Nordr is partly exposed to SEK, and its share
of translation differences recognised under the
equity method is presented within other
comprehensive income. The foreign exchange risk
associated with Nordr’s business in Sweden is not
hedged.
Price risk
Rental income is exposed to changes in market
rents, revenue-based rent and changes in the
consumer price index (CPI). The group prefers long-
term leases. The weighted average duration of rental
contracts as at 31 December 2024 was 5.8 years (5.3
years).
Rental agreements for the commercial properties
primarily give a fixed revenue during the lease term.
Leases (100.0 per cent) have a full CPI adjustment
clause allowing the group to adjust rents in line with
CPI changes. The group seeks to incorporate
clauses providing for such regulation in all new
leases. CPI regulation in 2024 was 2.6 per cent for
leases regulated in October and 2.4 per cent for
leases regulated in November, which increased the
annual rental income as at 31 December 2024 by
NOK 37 million. The rent related to the shopping
centre at Aker Brygge and Hasle in Oslo is partly
revenue-based.
Interest-rate risk
The group is subject to interest-rate risk related to
floating rate loans. Norwegian Property’s overall
guidance pursuant to current loan agreements is a
Annual report 2024 Norwegian Property ASA
Annual group accounts 36
hedging ratio of at least 50 per cent related to
outstanding floating-rate loans. As at 31 December
2024, 54.0 per cent (63.9 per cent) of such loans
were hedged (see note 13).
To manage interest-rate risk, the group had entered
into interest-rate swap agreements totalling NOK 4.9
billion as at 31 December (NOK 3.5 billion). The
average credit margin on floating-rate borrowings as
at 31 December 2024 was 176 basis points (153 basis
points). The average basis rate of the loan portfolio
as at 31 December 2024 was 4.84 per cent (4.39 per
cent). The average remaining maturity of hedging
agreements was 4.5 years (4.8 years). Notional
principal amounts and the maturity structure for the
group’s total portfolio of interest-rate hedges as at 31
December are specified in NOK million in the table
below (see also note 10).
Year 2024 2023 < 1 year 400.0 1,050.0 1-2 years 200.0 400.0 3-5 years 2,100.0 500.0 Over 5 years 2,200.0 1,500.0 Notional principal amount 4,900.0 3,450.0
According to the specifications in note 13, the
company’s average interest rate was changed by
0.45 per cent in 2024 and 0.91 per cent in 2023.
Based on this, a sensitivity analysis has been
prepared. If the average interest rate for the group
had been 45 (91) basis points higher/lower as at 31
December and all other variables were constant, this
is estimated to constitute a change in the annual
interest expense on the unsecured lending portfolio
and a change in the value of interest-rate swaps as
follows.
(Amounts in NOK million) 2024 2023 Average interest rate increase (per cent) 0.45 0.91 Change in financial expense (34.2) (51.0) Change in fair value of interest derivatives 55.8 83.7 Change in profit before income tax 21.6 32.8 Average interest rate decrease (per cent) (0.45) (0.91) Change in financial expense 34.2 51.0 Change in fair value of interest derivatives (55.8) (83.7) Change in profit before income tax (21.6) (32.8)
Increases in market interest rates can lead to
increased yield levels for the group’s properties,
which in turn can affect the valuations of the
properties.
3.2 - Credit risk
The majority of the group’s rental revenues come
from solid tenants. Tenants are preferably large,
solid companies and public institutions, which
reduces the risk related to leases. New tenants are
checked with credit rating agencies for an
acceptable credit history. Most tenants have
provided bank guarantees or made deposits of sums
equivalent to six months of rent. Rents are generally
invoiced quarterly in advance. Credit loss has
historically been limited. The group’s trade
receivables at the balance-sheet date are entirely in
NOK.
3.3 - Liquidity risk
The group aims to ensure that the liquidity/credit
facilities are sufficient to meet its foreseeable
obligations. In addition, it will have a reasonable
capacity to meet unforeseen obligations. The
funding strategy aims to maintain flexibility and
withstand fluctuations in rental income. One goal is
that the liquidity reserve should consist as far as
possible of available revolving credit and overdraft
facilities, rather than cash and cash equivalents. The
group’s liquidity reserve as at 31 December is
specified in the table below.
(Amounts in NOK million) 2024 2023 Cash and cash equivalents 471.4 325.6 - of which restricted cash and cash equivalents (4.9) (4.8) Available cash and cash equivalents 466.4 320.8 Unused credit and overdraft facilities 623.3 3,086.4 Liquidity reserve 1,089.7 3,407.2
As described hereinabove, the group has a high level
of hedging against changes in market interest rates,
reducing the need for liquidity reserves to meet
unforeseen obligations related to these areas. The
group has generated positive cash flows from
operational activities in both 2024 (NOK 491 million)
and 2023 (NOK 561 million). Additional liquidity risks
primarily relate to servicing instalments and the
maturity of liabilities. The maturity structure of
liabilities for the group is specified in the tables
below. The classification is based on the maturity
specified in the contracts. The figures in the tables
specify the timing of repayment of the principal
amounts as well as the annual interest payments.
Annual report 2024 Norwegian Property ASA
Annual group accounts 37
2024
1
:
Interest- Other liabilities (Amounts in NOK bearing at amortised million) debt cost < 1 year 6,659.5 340.8 1-2 years 5,014.5 - 3-5 years 2,595.6 - Over 5 years 3,627.7 - Expected cash flow 17,897.4 340.8 Book value 16,120.7 340.8
2023
1
:
Interest- Other liabilities (Amounts in NOK bearing at amortised million) debt cost < 1 year 3,759.3 300.5 1-2 years 4,356.6 - 3-5 years 3,818.5 - Over 5 years 3,775.2 -Expected cash flow 15,709.7 300.5 Book value 13,988.4 300.5
1) The difference between the carrying amount and
expected cash flow for interest-bearing debt reflects the
capitalised costs and estimated interest costs based on the
average interest rate as at 31 December.
Norwegian Property has successfully carried out
significant refinancing activities in 2024. In
December, Norwegian Property came to an
agreement to issue NOK 2 billion in new senior
secured bilateral bonds to refinance the bonds
maturing on 10 January 2025. The new bonds have
terms of 3 years (NOK 800 million) and 7 years (NOK
1.2 billion). Both are secured with a mortgage on the
property at Martin Linges vei 33.
Loans maturing in 2025 amount to NOK 6,015
million, and the available unused credit facilities
amount to NOK 623 million at year-end.
Interest-bearing debt in the balance sheet totalled
NOK 16,121 million as at 31 December 2024, with
non-current interest-bearing debt accounting for
NOK 10,106 million and current interest-bearing debt
for NOK 6,015 million. Current interest-bearing debt
as at 31 December 2024 relates to facilities maturing
in 2025.
3.4 - Capital risk management
The group’s objectives relating to capital
management are to ensure continued operation in
order to provide returns for shareholders and
benefits for other stakeholders. To achieve this, the
aim is to maintain a capital structure which helps to
reduce the cost of capital.
Norwegian Property’s goal is to pay a dividend to its
shareholders amounting to 30-50 per cent of its
ordinary profit after tax payable but before fair-value
adjustments. The dividend can be higher during
periods of good cash flow. Before a dividend is
determined, an assessment is made of the group’s
financial position and prospects, including the
availability of attractive investment opportunities.
Capital management seeks to maintain a good
balance between debt and equity. The group must
have a satisfactory equity ratio, in which the main
focus relates to the loan-to-value (LTV) ratio. The
latter is calculated as gross debt less cash and
interest-bearing receivables divided by the gross
property value. The group’s goal is to have an LTV
ratio of 45-55 per cent. The LTV ratio as at 31
December is specified in the table below. A
condition of the group’s overdraft facilities is that the
LTV ratio should not exceed 75 per cent. The agreed
requirements related to the LTV ratio in the loan
agreements were met with a good margin as at 31
December and at the interim reporting dates for
2024 and 2023. To change the capital structure, the
group may adjust the level of dividends paid to
shareholders, return capital to shareholders, issue
new shares or sell assets to redeem debt.
(Amounts in NOK million) 2024 2023 Long-term interest-bearing liabilities 10,105.7 10,777.8 Short-term interest-bearing liabilities 6,015.0 3,210.6 Interest-bearing receivables (160.9) (627.3) Cash and cash equivalents (471.4) (325.6) Net interest-bearing liabilities 15,488.4 13,035.5 Market value of property portfolio 27,925.1 23,893.7 Market value of investment in joint 1ventures 1,976.3 1,992.0 Market value of property portfolio and investment in joint ventures 29,901.3 25,885.7 Net loan to value (per cent) 51.8 50.4
1) Applies to the book value of the investment in Nordr
(joint venture), adjusted for the EPRA-revaluation of the
investment.
NOTE 4: Assessment of fair value
The consolidated financial statements have been
prepared on a historical cost basis except for
investment property and some financial assets and
financial liabilities (including derivative instruments),
Annual report 2024 Norwegian Property ASA
Annual group accounts 38
which are recognised at fair value through profit and
loss.
4.1 - Investment property
According to the group’s valuation process, the
finance and investment department is responsible
for the preparation of valuations of investment
property for use in the financial statements. The
department is responsible for a quarterly valuation of
the group’s investment properties at fair value. The
valuations are reviewed quarterly as a key part of the
audit committee’s quality assurance of the interim
and annual accounts. An independent appraiser
(Cushman & Wakefield) has valued the properties in
the company’s portfolio based on the same
methods and principles applied for previous years.
In addition, the company has prepared a valuation
based on similar principles. The group has
concluded that an average of the valuations may be
used as the basis for the accounting of investment
properties at fair value as at 31 December 2024. See
also note 5 for critical accounting estimates and
judgements.
4.2 - Financial instruments and
derivatives
The estimated fair value of the group’s financial
instruments is based on market prices and valuation
methods as described hereunder.
Interest-bearing liabilities
The group recognises interest-bearing liabilities at
amortised cost. Notes to the financial statements
(see note 13) provide information on the estimated
fair value of interest-bearing liabilities. Bonds are
valued at the market price as at 31 December and
bank loans at the estimated fair value where account
is taken of the estimated difference between the
current margin and market conditions.
Trade receivables/other receivables and trade
payables/other liabilities
In principle, these items are initially recognised at
fair value and measured at amortised cost in
subsequent periods. However, discounting is not
normally assumed to have a significant effect on this
type of receivable and liability.
Derivatives
The fair value of financial derivatives, including
interest-rate swaps and currency forward exchange
contracts/swaps, is determined by the net present
value of future cash flows, calculated using quoted
interest-rate curves and exchange rates at the
balance-sheet date. The technical calculations are
generally performed by the group’s banks. The
group has checked these valuations and tested
them for reasonableness.
Rental guarantee receivables
Rental guarantee receivables relate to rental
guarantees provided by the seller of properties,
where the seller guarantees an agreed level for rent
and the common costs of vacant premises for an
agreed period. The valuation is based on an internal
assessment. The value of the receivable is calculated
as the discounted value of expected payments under
the rental guarantee. Payments under the guarantee
are accounted for against the receivable, and the
receivable will be updated with any changes to the
initial estimate.
NOTE 5: Critical accounting estimates
and judgements
Estimates and judgements are continually evaluated,
and are based on historical experience and other
factors, including expectations about future events
which are believed to be reasonable under the
current circumstances.
Management makes estimates and assumptions
concerning the future. The resulting accounting
estimates will, by definition, seldom equal the actual
figures. The estimates and assumptions which
involve the greatest risk of causing a material
adjustment to the carrying amounts of assets and
liabilities in the next financial year are outlined
below.
5.1 - Fair value of investment properties
Investment property is valued at its fair value based
on a quarterly valuation update. Procedures for
determining fair value for investment properties are
described in note 4. In line with these policies, the
portfolio of commercial properties is valued every
quarter on the basis of the average of an external
and an internal valuation.
Properties are valued by discounting future cash
flows. Both contractual and expected cash flows are
included in the calculations. Therefore, the fair-value
assessment of investment properties largely
Annual report 2024 Norwegian Property ASA
Annual group accounts 39
depends on the assumptions related to market
rents, discount rates and CPI adjustments. Market
rents are based on the individual assessments of
each property and on segmentations of different
areas within the properties if relevant. To the extent
that a specific development potential is associated
with a property, an assessment is made as to
whether this supports or influences fair value.
Updated macroeconomic assumptions for interest-
rate levels, inflation expectations and so forth are
applied in the calculations. Inflation expectations are
based on consensus views from banks and public
statistical agencies. Based on an assessment of the
properties, tenants and macroeconomic conditions
as at the balance-sheet date, cash flows are
discounted using discount rates based on individual
assessments of each property.
The observed ranges for key variables in the
individual property valuations from the external
valuations are as follows and related to both
investment property and owner-occupied property.
Fair Value Fair Value Class of Property 2024 2023 Investment property (NOK million) 27,666.8 23,517.7 Owner-occupied prop. (NOK million) 106.4 144.9
Range Range Variables 2024 2023
1Exit yield (per cent) 4.5 - 6.5 4.6 - 7.1
Operating costs 2(NOK per sqm) 100 - 300 100 - 300
Market rent (NOK 2per sqm) 2,000 - 6,200 1,700 - 6,000
1) Variables used as a basis in the valuation of the individual
properties.
2) Average amounts from the valuations based on the total
cost and market rent for the individual property in relation
to the total number of sqm for the property.
The sensitivity of the fair-value assessment of
investment properties depends on the assumptions
related to yield, interest rates, market rents and
operating costs for the properties. The table
1
below
presents examples of how changes related to each
of these variables influenced property values as at 31
December 2024, assuming that all the other
variables remained constant (amounts in NOK
million).
Variables Changes of variables Value change Exit yield + 0.25 per cent (633) Operating costs + NOK 25 per sqm (255) Market rent + 10 per cent 2,532
1) The calculations have been performed by Cushman &
Wakefield in connection with the valuations at 31 December
2024.
5.2 - Fair value of financial derivatives
The group’s financial derivatives include interest-
rate swap contracts and currency forward/swap
contracts. The procedures for valuation are
described in note 4. The calculations are performed
by the group’s banks. The group has checked these
valuations and tested them for reasonableness. The
valuations involve a small degree of discretionary
assessments, and the company’s internal
assessments deviate to a very small extent from the
external valuations.
5.3 - Fair value of rental guarantee
receivables
Rental guarantee receivables relate to rental
guarantees provided by the seller of properties. The
procedures for valuation are described in note 4.
The valuation is based on internal assessments. The
value of the receivable is calculated as the
discounted value of expected future payments under
the rental guarantee. Therefore, the fair-value
assessment largely depends on the assumptions
related to future rentals, discount rates and CPI
adjustments. Management’s rental expectations are
the basis for the assessments, together with a
discount rate of three per cent and comparable
inflation expectations as used in the valuation of
investment properties.
5.4 - Climate risk in the accounts
Climate risk can represent financial risk that must be
reflected in the accounts.
Further information on climate risk is provided in the
declaration of corporate social responsibility.
Climate risk is linked to both the impact of climate
change on the company and the impact the
company’s activities has on the climate. Both of
these factors can be financially significant for the
company, and the materiality assessments are often
referred to as double materiality. Climate risk can be
linked to physical risk where there is a risk of assets
Annual report 2024 Norwegian Property ASA
Annual group accounts 40
being damaged or shortened in life as well as to
transitional risk due to changes in the market and
regulatory conditions.
Climate risk can affect future cash flows and thus the
valuation of assets and liabilities in the accounts. The
most important assessment for Norwegian Property
is how climate risk affects the valuation of
investment property.
Valuation of investment property
Physical risk associated with the properties is first
and foremost related to the extent to which
conditions such as warmer climates, increased
water levels, more extreme weather, etc. affect the
properties.
Transition risks are divided into market and
regulatory components.
Market risk includes the risk for increased demand
for more environmentally-friendly premises, more
demanding environmental standards from investors
and banks, increased insurance premiums if
damage from climate change becomes extensive,
technology risk related to new energy solutions and
building standards and reputational risk as climate-
related awareness spreads.
Examples of regulatory risk are government
requirements and permits in such areas as building
standards, traffic and infrastructure. Taxes could
also rise in line with increased public spending.
Norwegian Property has had a scenario analysis
carried out by external experts (CEMAsys) in the field
to analyse the risk elements related to the
company’s real estate portfolio. No critical factors
have been identified that obviously have a material
impact on the market value of the properties.
In preparing the external valuations of the
company’s properties, it has been assessed as to
what extent climate risk affects the valuation. The
assessment is that, so far, there are no significant
factors related to climate risk that affect the market’s
pricing of the property portfolio. It is assumed that
this assessment will change over time as the risk
elements to a greater extent may affect future cash
flows for the properties, including the following
examples of relevant risk areas:
- Increased demand for more
environmentally-friendly premises can
affect rental income.
- Environmental measures on the properties
could lead to higher development and
adaptation costs. Keeping abreast of
technical developments for energy
solutions and building standards will be
important. Opportunities also exist for
more energy-efficient solutions with new
technology.
- Environmental standards from banks and
investors might become stricter. At the
same time, however, green loans offer
opportunities for lower margins and a
larger investor base.
- Government requirements and permits in
such areas as building standards, traffic
and infrastructure are expected to become
stricter, and taxes could rise in line with
increased public spending.
- Insurance premiums can increase if
damage from climate change becomes
extensive.
Annual report 2024 Norwegian Property ASA
Annual group accounts 41
NOTE 6: Investment property, owner-
occupied property and guarantee
receivables
6.1 – Development in carrying amounts
Changes to the balance-sheet items of investment
property, owner-occupied property and guarantee
receivables are specified in the table below.
Changes in the market value of investment property
and guarantee receivables are recognised on a
separate line in the profit and loss statement.
2024:
Guaran-Invest-Owner-tee (Amounts in NOK ment occupied receiva-million)property property bles Total Book value as at 1 January 23,517.7 144.9 231.1 23,893.7 Disposals 38.5 (38.5) - - Additions 3,177.9 - - 3,177.9 Payments related to the rental guarantee - - (62.1) (62.1) Fair value adjustment recognised in profit and loss 932.7 - (23.0) 909.8 Interest income recognised in profit and loss - - 5.8 5.8 Fair value adjustment recognised against the revaluation reserve - 2.3 - 2.3 Depreciation recognised in profit and loss - (2.3) - (2.3) Book value as at 31 December 27,666.8 106.4 151.8 27,925.1
2023:
Guaran-Invest-Owner-tee (Amounts in NOK ment occupied receiva-million)property property bles Total Book value as at 1 January 24,859.1 108.8 233.1 25,201.0 Disposals (52.4) 52.4 - - Additions 1,908.8 - - 1,908.8 Payments related to the rental guarantee - - (55.2) (55.2) Fair value adjustment recognised in profit and loss (3,197.8) - 47.5 (3,150.3) Interest income recognised in profit and loss - - 5.7 5.7 Fair value adjustment recognised against the revaluation reserve - (13.6) - (13.6) Depreciation recognised in profit and loss - (2.7) - (2.7) Book value as at 31 December 23,517.7 144.9 231.1 23,893.7
Additions include the takeover of the property at
Martin Linges vei 33 in 2024 and the acquisition of
the Telegrafen property in 2023. Additions also
include the adjustments for lessees associated with
new and renegotiated leases as well as ongoing
operational investments.
Additions in the table for 2024 hereinabove include
the takeover of the property at Martin Linges vei 33.
The cash flow effect related to the takeover included
in the consolidated cash flow statement for 2024 is a
positive amount of NOK 125.9 million under payment
for investment in investment property related to
cash in the company net of transaction costs.
Annual report 2024 Norwegian Property ASA
Annual group accounts 42
Rental income and property expenses related to
investment properties are stated in the income
statement. The maturity structure for non-
cancellable leases related to investment property is
specified in note 16.
As at 31 December 2024, financial vacancy for the
investment properties was 6.3 per cent (4.7 per
cent). Operating expenses for vacant space and the
owner’s share of service charge expenses totalled
NOK 48.0 million for 2024 (NOK 39.4 million).
Apart from covenants in loan agreements, no
restrictions apply to the timing of the realisation of
investment properties or how the revenue from any
sale can be used.
Apart from adjustments for lessees and ongoing
operational investments, the group had no
significant contractual obligations for construction
contracts related to investment properties as at 31
December in 2024 or 2023.
6.2 - Fair-value assessment
The following table shows the fair-value assessment
of properties when using different types of inputs.
2024:
Invest-Owner-ment occupied Guarantee (Amounts in NOK million)property property receivables Given market value for corresponding assets and 1liabilities (level 1)- - - Other significant 2observable input (level 2) - - - Other significant non-3observable input (level 3)27,666.8 106.4 151.8 Total estimated fair value 27,666.8 106.4 151.8
2023:
Invest-Owner-ment occupied Guarantee (Amounts in NOK million)property property receivables Given market value for corresponding assets and 1liabilities (level 1)- - - Other significant 2observable input (level 2) - - - Other significant non-3observable input (level 3)23,517.7 144.9 231.1 Total estimated fair value 23,517.7 144.9 231.1
1) Level 1: valuation based on quoted prices in active
markets for identical assets.
2) Level 2: valuation based on observable market
information not covered by level 1.
3) Level 3: valuation based on information not observable
under level 2.
The group’s policy is to recognise transfers into and
out of fair-value hierarchy levels at the date of the
event or change in circumstances which caused the
transfer. There were no transfers between the levels
during 2024 or 2023.
NOTE 7: Other fixed assets
Changes in other fixed assets are specified in the
table below.
Energy distribution Other system (Aker fixed (Amounts in NOK million) Brygge) assets Total Acquisition costs: At 31 December 2022 45.0 52.2 97.2 Additions 2023 0.5 2.7 3.2 As at 31 December 2023 45.5 54.9 100.4 Additions 2024 - 2.2 2.2 Aa at 31 December 2024 45.5 57.1 102.6 Accumulated depreciation: As at 31 December 2022 17.4 48.3 65.7 Additions 2023 2.2 2.2 4.4 As at 31 December 2023 19.6 50.5 70.1 Additions 2024 2.3 1.6 3.9 As at 31 December 2024 21.9 52.1 74.0 Book value: As at 31 December 2023 26.0 4.3 30.3 As at 31 December 2024 23.7 4.9 28.6
The group uses linear depreciation. The economic
life of the assets is set at four years for IT equipment,
five years for licences, cars and furnishings and
Annual report 2024 Norwegian Property ASA
Annual group accounts 43
seven years for other equipment. It is set at 20 years
for the energy centre at Aker Brygge.
NOTE 8: Joint ventures
Norwegian Property owns Nordr together with
Fredensborg and Union Real Estate Fund III. While
Norwegian Property and Fredensborg are equal
partners, each holding 42.5 per cent of the preferred
shares (A-shares), Union owns 15 per cent of the
preferred shares (B-shares). Only preferred A-shares
have voting rights in the general meeting of the
company. The preferred A and B shares have a pre-
emptive right to payments from the company. C-
shares are entitled to payments from the company
only after a certain return on invested capital has
been achieved. C-shares are earmarked for senior
executives in Nordr, and at the end of 2024
represent an ownership interest of 0.3 per cent.
Norwegian Property owns 42.4 per cent of all shares
in the company.
Norwegian Property has shared control in Nordr
through contractual arrangements. The joint venture
is regulated by a shareholder agreement which
reflects joint control in all areas related to the
management of the business. Norwegian Property
and Fredensborg own an equal share of preferred
shares with voting rights. There are five board
members in the holding company of Nordr. The two
main owners have two representatives each and the
position as chair is rotated between the two of them
every two years.
Nordr has residential units under construction and a
substantial land bank in Norway and Sweden. The
land bank is largely located in the largest Norwegian
and Swedish cities, with an emphasis on eastern
Norway and the extended Stockholm capital region
in Sweden. Nordr’s business consists of both wholly
owned and partly owned plots and projects. Entities
over which Nordr has control are fully consolidated
in the accounts for the Nordr group. Nordr’s share of
joint venture’s net profit and net equity is presented
in accordance with the equity method in the
accounts for the Nordr group.
The property at Forusbeen 35 in Stavanger has been
reregulated from a commercial building to a
property with a combined residential and
commercial purpose. Norwegian Property owns the
project as a joint venture together with Base Bolig.
The changes for the year in the balance-sheet item
on net investment in joint ventures are specified in
the table below.
(Amounts in NOK million) 2024 2023 Book value 1 January 933.2 1,061.7 Capital increase - 13.5 Share of profit and loss 1.0 (55.8) 1Currency changes 6.7 30.3 Profit for intercompany transactions (4.9) (5.1) Dividend received - (106.3) Negative book value against receivables 19.7 (5.1) Book value 31 December 955.7 933.2
1) Currency risk associated with Nordr’s business in
Sweden is not hedged.
The group’s share of income in joint ventures is
specified in the table below.
2024:
(Amounts in NOK Forus- million) Nordr been 35 Total Revenues 3,594.7 0.9 3,595.5 Project cost from sale of residential units (3,493.7) (7.3) (3,501.1) Other operating expenses (194.4) (3.1) (197.5) Share of profit in joint ventures 143.6 - 143.6 Change in fair value of investment property - (25.6) (25.6) Operating profit 50.1 (35.1) 15.0 Net financial items (31.1) - (31.1) Profit before income tax 19.1 (35.1) (16.0) Income tax 26.7 (1.6) 25.1 Profit for the period 45.7 (36.7) 9.1 The group’s share of profit for the period 19.4 (18.3) 1.0 The group’s share of other comprehensive income for the period 6.7 - 6.7 The group’s share of total comprehensive income for the period 26.1 (18.3) 7.7
Annual report 2024 Norwegian Property ASA
Annual group accounts 44
2023:
(Amounts in NOK Forus- million) Nordr been 35 Total Revenues 4,772.1 1.0 4,773.1 Project cost from sale of residential units (4,766.8) - (4,766.8) Other operating expenses (225.6) (2.9) (228.4) Share of profit in joint ventures 74.7 - 74.7 Operating profit (145.6) (1.9) (147.5) Net financial items (51.6) - (51.6) Profit before income tax (197.2) (1.9) (199.1) Income tax 67.2 0.4 67.7 Profit for the period (130.0) (1.5) (131.4) The group’s share of profit for the period (55.1) (0.7) (55.8) The group’s share of other comprehensive income for the period 30.3 - 30.3 The group’s share of total comprehensive income for the period (24.8) (0.7) (25.5)
The group’s share of equity in joint ventures is
specified in the table below.
2024:
(Amounts in NOK Forus- million) Nordr been 35 Total Investment property - 2.0 2.0 Other fixed assets 26.8 - 26.8 Investment in joint ventures 705.1 - 705.1 Land bank and residential projects 7,454.2 119.0 7,573.2 Receivables 590.0 0.3 590.3 Cash and cash equivalents 375.9 0.1 376.0 Deferred tax (335.2) - (335.2) Interest bearing liabilities (4,591.2) (136.0) (4,727.2) Other liabilities (1,980.4) (0.7) (1,981.1) Equity (2,245.2) 15.2 (2,230.0) The group’s share of 1equity(955.8) - (955.8)
1) The NOK 7.6 million share of negative equity for Forus-
been 35 as at 31 December 2024 is accounted for as a
reduction of receivables.
2023:
(Amounts in NOK Forus- million) Nordr been 35 Total Investment property - 24.6 24.6 Other fixed assets 37.8 - 37.8 Investment in joint ventures 954.1 - 954.1 Land bank and residential projects 7,250.4 112.7 7,363.1 Receivables 1,257.1 0.2 1,257.3 Cash and cash equivalents 241.8 0.1 241.9 Deferred tax (467.0) 1.6 (465.4) Interest bearing liabilities (5,216.4) (117.1) (5,333.5) Other liabilities (1,874.0) (0.6) (1,874.6) Equity (2,183.7) (21.5) (2,205.2) The group’s share of equity (930.1) (3.1) (933.2)
NOTE 9: Financial instruments
Financial assets represent contractual rights for the
group to receive cash or other financial assets in the
future. Financial liabilities correspondingly represent
contractual obligations for the group to make future
payments. Financial instruments are included in
several accounting lines in the group’s balance sheet
and income statement, and they are classified in
different categories in accordance with their
accounting treatment.
The carrying amount of financial instruments in the
group’s balance sheet is considered to provide a
reasonable expression of their fair value but with the
exception of interest-bearing debt. The fair value of
interest-bearing debt is described in note 13.
Annual report 2024 Norwegian Property ASA
Annual group accounts 45
A specification of the group’s financial instruments is presented below.
2024
1
:
Financial instruments at fair Non-financial value through profit assets and (Amounts in NOK million) or loss Amortised cost liabilities Total Financial assets: Non-current derivatives 186.4 - - 186.4 Non-current receivables 151.8 - - 151.8 Current receivables - 211.2 104.7 315.9 Current derivatives 1.2 - - 1.2 Cash and cash equivalents - 471.4 - 471.4 Financial liabilities: Non-current derivatives 13.2 - - 13.2 Non-current interest-bearing liabilities - 10,105.7 - 10,105.7 Other non-current liabilities - - 2.0 2.0 Current derivatives - - - - Current interest-bearing liabilities - 6,015.0 - 6,015.0 Other current liabilities - 340.8 69.2 409.9 Profit/loss related to financial instruments: Financial income - 95.9 - 95.9 Financial cost - (774.8) - (774.8) Change in market value of financial instruments 33.0 - - 33.0 Gain/loss recognised in comprehensive income: Recognised in comprehensive income - - - -
2023
1
:
Financial instruments at fair Non-financial value through profit assets and (Amounts in NOK million) or loss Amortised cost liabilities Total Financial assets: Non-current derivatives 147.6 - - 147.6 Non-current receivables 231.1 - - 231.1 Current receivables - 654.7 122.3 777.0 Current derivatives 3.6 - - 3.6 Cash and cash equivalents - 325.6 - 325.6 Financial liabilities: Non-current derivatives - - - - Non-current interest-bearing liabilities - 10,777.8 - 10,777.8 Other non-current liabilities - - 2.6 2.6 Current derivatives 9.8 - - 9.8 Current interest-bearing liabilities - 3,210.6 - 3,210.6 Other current liabilities - 300.5 37.7 338.2 Profit/loss related to financial instruments: Financial income - 42.3 - 42.3 Financial cost - (483.9) - (483.9) Change in market value of financial instruments (3.9) - - (3.9) Gain/loss recognised in comprehensive income: Recognised in comprehensive income - - - -
1) Accounting items not specified in the table hereinabove, but that are included in the group’s financial statements, do not
contain financial instruments.
Annual report 2024 Norwegian Property ASA
Annual group accounts 46
NOTE 10: Derivatives
10.1 - Specification of derivatives in the
financial statements
The group is subject to interest-rate risk related to
floating rate loans. The general policy in accordance
with the applicable loan agreements is that at least
60 per cent of the group’s interest-bearing debt at
any time will be hedged.
Derivatives are carried at fair value. A specification of
the derivatives in the balance sheet as at 31
December is shown in the following.
2024:
(Amounts in NOK million) Assets Liabilities Interest rate hedging contracts 186.4 13.2 Exchange rate hedging contracts - - Derivatives, non-current assets/liabilities 186.4 13.2 Interest rate hedging contracts 1.2 - Exchange rate hedging contracts - - Derivatives, current assets/liabilities 1.2 - Total derivatives 187.6 13.2 Net financial derivatives in the balance sheet 174.4
2023:
(Amounts in NOK million) Assets Liabilities Interest rate hedging contracts 147.6 - Exchange rate hedging contracts - - Derivatives, non-current assets/liabilities 147.6 - Interest rate hedging contracts 3.6 9.8 Exchange rate hedging contracts - - Derivatives, current assets/liabilities 3.6 9.8 Total derivatives 151.2 9.8 Net financial derivatives in the balance sheet 141.4
Changes for the year to net derivatives in the
balance sheet are specified in the table below.
(Amounts in NOK million) 2024 2023 Net book value of derivatives, 1 January 141.4 145.3 Net fair value adjustments of derivatives during the year 33.0 (3.9) Net book value of derivatives, 31 December 174.4 141.4
10.2 - Interest-rate derivatives
A specification of principal amounts per currency for
the group’s interest-rate derivatives as at 31
December is presented below. The maturity
structure for the derivatives is specified in note 3.
Currency 2024 2023 Notional principal amount NOK 4,900.0 3,450.0
The floating interest rate is three-months NIBOR for
all contracts.
Gains and losses for hedge accounting contracts are
recognised in other comprehensive income until the
underlying hedged loan is repaid.
10.3 - Fair value of derivatives
Fair value is established on the basis of the following
methods:
- Level 1: valuation based on quoted prices in
active markets for identical assets.
- Level 2: valuation based on observable
market information not covered by level 1.
- Level 3: valuation based on information not
observable under level 2.
All financial derivatives in the balance sheet relate to
interest-rate swap agreements, where fair value is
determined in accordance with level 2.
The group’s policy is to recognise transfers into and
out of fair-value hierarchy levels at the date of the
event or change in circumstances which caused the
transfer. No transfers were made between the levels
in 2024 or 2023.
NOTE 11: Receivables
11.1 - Current receivables
Current receivables in the balance sheet as at 31
December are specified in the table below.
(Amounts in NOK million) 2024 2023 Accounts receivable 37.8 32.2 Provision for impairment of receivables (7.2) (4.8) Net accounts receivable 30.6 27.4 1Interest-bearing receivables 160.9 627.3 Public duties 18.0 17.4 Other current receivables 106.4 104.9 Total other current receivables 285.3 749.6 Total current receivables 315.9 777.0
1) Related to the receivables on joint ventures and other
interest-bearing receivables.
Annual report 2024 Norwegian Property ASA
Annual group accounts 47
11.2 - Non-current receivables
Non-current receivables as at 31 December are
specified in the table below.
(Amounts in NOK million) 2024 2023 Rent guarantee receivables (see note 6) 151.8 231.1 Total non-current receivables 151.8 231.1
NOTE 12: Other liabilities
12.1 - Other current liabilities
Other current liabilities as at 31 December are
specified in the table below.
(Amounts in NOK million) 2024 2023 Trade payables 28.5 47.5 Public duties 11.9 7.9 Accrued salaries 8.5 7.0 Accrued interest 183.6 136.6 Prepaid income 48.7 22.7 Accrued cost and other debts 128.7 116.3 Total other current liabilities 409.9 338.1
12.2 - Other non-current liabilities
Other non-current liabilities as at 31 December are
specified in the table below.
(Amounts in NOK million) 2024 2023 Lease liability 0.3 0.8 Pension liabilities (see note 19) 1.7 1.8 Total other non-current liabilities 2.0 2.6
NOTE 13: Interest-bearing debt
The table below presents an overview as at 31
December of the group’s interest-bearing debt,
including share of the interest exposure hedged,
average interest rate and remaining duration.
2024 2023 Total interest-bearing debt (NOK million) 16,120.7 13,988.4 Share of the interest exposure 1hedged (per cent) 54.0 63.9 Cash and cash equivalents (NOK million) 471.4 325.6 Interest bearing receivables (NOK million) 160.9 627.3 Unutilised credit facilities (NOK million) 623.3 3,086.4 Average interest rate (per cent) 4.84 4.39 Average interest margin (per cent) 1.76 1.53 Remaining time to maturity for interest-bearing debt (years) 2.4 2.8 Remaining time to maturity for interest hedge agreements (years) 4.5 4.8
1) Include all interest-rate swaps and loans with fixed rate
which had commenced at the balance-sheet date.
Group interest-bearing non-current and current debt
as at 31 December is specified in accordance with
the type of debt in the table below.
2024:
(Amounts in NOK million) Long-term Short-term Total Bonds 3,419.0 1,675.0 5,094.0 Bilateral loan 4,542.0 1,839.0 6,381.0 Bank borrowings (loan facilities) 2,158.0 2,510.0 4,668.0 Total interest-bearing debt 10,119.0 6,024.0 16,143.0 Accrued financial items (13.3) (9.0) (22.3) Total book value interest-bearing debt 10,105.7 6,015.0 16,120.7 Fair value 1of bonds 7,957.7 3,508.7 11,466.4 Fair value of bank 1borrowings 2,176.2 2,508.5 4,684.7
2023:
(Amounts in NOK million) Long-term Short-term Total Bonds 3,025.0 2,615.0 5,640.0 Bilateral loan 4,542.0 - 4,542.0 Bank borrowings (loan facilities) 3,225.0 600.0 3,825.0 Total interest-bearing debt 10,792.0 3,215.0 14,007.0 Accrued financial items (14.2) (4.4) (18.6) Total book value interest-bearing debt 10,777.8 3,210.6 13,988.4 Fair value 1of bonds 7,561.0 2,620.2 10,181.2 Fair value of bank 1borrowings 3,225.5 593.2 3,818.6
1) The fair value of bonds is based on given market values
for corresponding assets and liabilities (level 1). The fair
value of bank borrowings is based on other significant non-
observable input (level 3).
Level 1: valuation based on quoted prices in active markets
for identical assets. Level 2: valuation based on observable
market information not covered by level 1. Level 3:
valuation based on information not observable under level
2.
The group’s policy is to recognise transfers into and out of
fair value hierarchy levels at the date of the event or change
in circumstances which caused the transfer. There were no
transfers between the levels during 2024 or 2023.
Annual report 2024 Norwegian Property ASA
Annual group accounts 48
The total fair value of interest-bearing debt consists
of bonds valued at their market price as at 31
December and bank loans at estimated fair value,
where account is taken of the estimated difference
between the current margin and market conditions.
Changes for the year to interest-bearing debt in the
balance sheet are specified in the table below.
2024:
(Amounts in NOK million) Long-term Short-term Total Interest-bearing debt as of 1 January 10,792.0 3,215.0 14,007.0 1New debt 5,752.0 - 5,752.0 Repayment of debt - (3,616.0) (3,616.0) Reclassification of debt (6,425.0) 6,425.0 - Interest-bearing debt as of 31 December 10,119.0 6,024.0 16,143.0 Accrued financial items (13.3) (9.0) (22.3) Book value of interest-bearing debt 10,105.7 6,015.0 16,120.7
1) New debt for 2024 include NOK 2,240 million related to
the takeover of the property at Martin Linges vei 33.
2023:
(Amounts in NOK million) Long-term Short-term Total Interest-bearing debt as of 1 January 10,356.5 1,834.6 12,191.1 New debt 3,650.5 - 3,650.5 Repayment of debt - (1,834.6) (1,834.6) Reclassification of debt (3,215.0) 3,215.0 - Interest-bearing debt as of 31 December 10,792.0 3,215.0 14,007.0 Accrued financial items (14.2) (4.4) (18.6) Book value of interest-bearing debt 10,777.8 3,210.6 13,988.4
The maturity structure of the group’s long-term
interest-bearing debt as at 31 December is specified
in the table below (short-term interest-bearing debt
falls due within one year from the balance-sheet
date).
(Amounts in NOK million) 2024 2023 Due in 2025 (2024) 6,024.0 3,215.0 Due in 2026 (2025) 4,637.0 3,970.0 Due in 2027, 2028 and 2029 (2026, 2027 and 2028) 1,940.0 3,280.0 Due after 2029 (after 2028) 3,542.0 3,542.0 Total 16,143.0 14,007.0
The carrying amount of group assets pledged as
security as at 31 December is specified in the table
below.
(Amounts in NOK million) 2024 2023 1Market value of property portfolio27,833.3 23,666.0 Total 27,833.3 23,666.0 Liabilities secured 16,143.0 14,007.0
1) Properties with a carrying amount of NOK 91.8 million as
at 31 December 2024 were not pledged for interest-bearing
debt (NOK 228 million).
A portfolio of bonds totalling NOK 5.1 billion are
secured by properties and listed on the Oslo Stock
Exchange. Bilateral loans of NOK 6.4 billion are not
listed. None of the bonds have running terms related
to financial covenants. All the bonds have change of
control clauses, and the requirement of a maximum
of 65 per cent LTV on the mortgaged building at the
time of borrowing.
The security for bank facilities is shared with the
bondholders. The bank facilities are subject to
annual renewal. The most important terms for all
these facilities are a minimum interest-rate hedge
ratio of 50 per cent, interest cover of at least 1.4 and
a maximum LTV of 75 per cent. The agreed
requirements in the loan agreements were met at
year-end 2024 and 2023 as well as all quarterly
interim reporting dates in 2024 and 2023.
Annual report 2024 Norwegian Property ASA
Annual group accounts 49
The group’s loan facilities as of 31 December 2024 are specified in the table below.
Due Undrawn (Amounts in NOK million) Security (property) (year) Drawn amount Short-term loan Long-term loan amount Bond NPRO26 Bryggeg. 9/Støperiet 2027 545.0 - 545.0 - Bond NPRO25 Fondbygget 2029 635.0 - 635.0 - Bond NPRO24 Fondbygget 2029 340.0 - 340.0 - Bond NPRO26 Drammensveien 60 2027 420.0 - 420.0 - Bond NPRO14 Kaibygning I 2026 350.0 - 350.0 - Bond NPRO19 Verkstedhallene 2025 975.0 975.0 - - Bond NPRO20 Terminalbygget 2025 700.0 700.0 - - Bond NPRO21 Snarøyveien 36 2026 779.0 - 779.0 - Bond NPRO22 Kaibygning I 2026 150.0 - 150.0 - Bond NPRO23 Terminalbygget 2026 200.0 - 200.0 - Bond unlisted Snarøyveien 30 2030 3,542.0 - 3,542.0 - 1Bond unlistedMartin Linges vei 33 2025 1,839.0 1,839.0 - - Bond unlisted Telegrafen 2026 1,000.0 - 1,000.0 - RCF SEB Property portfolio 1 2025 500.0 500.0 - 35.3 RCF Swedbank Property portfolio 2 2025 525.0 525.0 - 70.3 RCF DNB Property portfolio 3 2025 550.0 550.0 - 32.3 RCF DNB Verkstedhallene 2026 550.0 - 550.0 126.6 RCF DNB Terminalbygget 2026 400.0 - 400.0 350.0 RCF DNB Lille Grensen 7 2026 378.0 - 378.0 8.9 Term loan SEB Kaibygning I 2026 530.0 - 530.0 - Term loan SEB Kaibygning I 2025 500.0 500.0 - - RCF SEB Kaibygning I 2026 300.0 - 300.0 - Term loan Swedbank/SR-Bank Sandakerv. 138/140 2025 435.0 435.0 - - Total interest-bearing debt, 31 December 2023 16,143.0 6,024.0 10,119.0 623.3 Accrued financial items (22.3) (9.0) (13.3) Book value of interest-bearing debt, 31 December 2023 16,120.7 6,015.0 10,105.7
1) In December 2024, Norwegian Property entered into an agreement to issue NOK 2 billion in new senior secured bilateral
bonds to refinance bonds of NOK 1,839 million maturing in January 2025.
NOTE 14: Deferred tax and income tax
Changes for the year to deferred tax appear as follows:
2
Investment Gain and loss Carry forward Financial 1account losses derivatives Other Total(Amounts in NOK million) propertyBook value as at 1 January 2023 2,045.0 21.2 (200.8) 32.0 (4.2) 1,893.3 3Acquired in asset acquisitions - - (112.1) - - (112.1) Recognised through profit and loss (541.7) 3.7 117.5 (0.8) 3.5 (417.7) Recognised through comprehensive income (3.0) - - - - (3.0) Book value as at 31 December 2023 1,500.3 24.9 (195.3) 31.1 (0.7) 1,360.5 Recognised through profit and loss 272.0 1.2 74.6 7.3 24.3 379.3 Recognised through comprehensive income 0.5 - - - - 0.5 Book value as at 31 December 2024 1,772.9 26.1 (120.7) 38.4 23.6 1,740.3
1) The tax value totalled NOK 10.2 billion as at 31 December 2024. Theoretical deferred tax in the event that all the properties are
sold at fair value amounts to about NOK 3.9 billion. The difference from estimated deferred tax for investment property reflects
the recognition exception in IAS 12.15 for the purchase of assets.
2) Deferred tax assets and liabilities are presented net when the group has a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred taxes relate to the same taxation authority. All group limited companies are
included in the tax group and registered in Norway. Deferred tax benefits related to interest deductions carried forward amounts
to NOK 429.0 million at the end of 2024, and they are not expected to be utilised. Therefore, they are not accounted for in the
balance sheet.
3) Related to the acquisition of the Telegrafen property.
Annual report 2024 Norwegian Property ASA
Annual group accounts 50
The table below specifies the income tax for the
group on payable and deferred taxes, respectively,
and the calculation of income tax expense based on
income before tax.
(Amounts in NOK million) 2024 2023 Profit before income tax: 1,405.2 (2,765.8) Income tax calculated at 22 per cent 309.1 (608.5) Share of profit/loss at associates and jointly controlled entities (0.2) 12.3 Other permanent differences (48.1) (11.3) Effect of negative revaluation below cost on asset acquisitions (0.3) 84.2 Changes in interest deductions carry-forward 118.7 105.6 Deferred tax 379.3 (417.8) Payable tax - - Income tax 379.3 (417.8)
NOTE 15: Segment information
Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker (CODM). The
CODM, who is responsible for allocating resources
and assessing the performance of the operating
segments, has been identified as the senior
management team.
Norwegian Property’s primary business is the
ownership and management of commercial
properties in the Oslo region. The company owns
42.5 per cent of the preferred shares in the
residential development company Nordr. The
Forusbeen 35 property at Forus in Stavanger is
reregulated from a commercial building to a
property with a combined residential and
commercial purpose. Norwegian Property owns 50
per cent of the project.
The segmentation of operating profit, excluding the
administrative owner costs, reflects the division into
commercial property and residential property
segments. A similar division has also been made for
all balance sheet items apart from those related to
group functions, financing of the group and tax
positions.
For investment property, discrete financial
information is provided on a property-by-property
basis to members of executive management, who
collectively comprise the CODM. The information
provided is on a net rental basis (including gross rent
and property expenses), valuations gains/losses,
profit/loss on disposal of investment property and
share of profit from the joint ventures. Group
administrative costs, finance revenue, finance costs
and income taxes are not reported to the members
of the executive management team on a segment
basis. There are no sales between segments.
Segment information related to the income statement items for 2024 is specified in the table below.
Commercial Residential (Amounts in NOK million) properties properties Group Total 1Revenue 1,386.4 - - 1,386.4 2Total property-related expenses (178.2) - - (178.2) 2Administrative expenses - - (64.4) (64.4) Depreciation - - (3.6) (3.6) Share of profit in joint ventures (14.2) 15.2 - 1.0 Change in fair value of investment property and rental guarantee 909.8 - - 909.8 Operating profit 2,103.8 15.2 (68.0) 2,051.0 Financial income 95.9 95.9 Financial expenses (774.8) (774.8) Change in fair value of interest derivatives 33.0 33.0 Profit before income tax (713.9) 1,405.2 Income tax (379.3) (379.3) Profit for the period (1,093.2) 1,025.9
Annual report 2024 Norwegian Property ASA
Annual group accounts 51
Segment information related to income statement items for 2023 is specified in the table below.
Commercial Residential (Amounts in NOK million) properties properties Group Total 1Revenue 1,109.6 - - 1,109.6 2Total property-related expenses (156.4) - - (156.4) 2Administrative expenses - - (63.9) (63.9) Depreciation - - (3.6) (3.6) Share of profit in joint ventures (0.5) (55.3) - (55.8) Change in fair value of investment property and rental guarantee (3,150.3) - - (3,150.3) Operating profit (2,197.7) (55.3) (67.5) (2,320.4) Financial income 42.3 42.3 Financial expenses (483.9) (483.9) Change in fair value of interest derivatives (3.9) (3.9) Profit before income tax (512.9) (2,765.9) Income tax 417.8 417.8 Profit for the period (95.1) (2,348.1)
1) The largest customers for the commercial property business are Telenor Real Estate AS and Equinor ASA, which are tenants of
the properties at Snarøyveien 30 and Martin Linges vei 33, respectively. The rental income for Telenor Real Estate AS amounts to
NOK 185.7 million for 2024 (NOK 183.7 million). The rental income for Equinor ASA amounts to NOK 137.5 million for the
ownership period in 2024. The property was taken over in March 2024. No rental income from other individual customers
constitutes more than 10 per cent of total revenue.
2) Excluding depreciation which is specified separately.
Segment information related to balance-sheet items as at 31 December 2024 is specified in the table below.
Commercial Residential (Amounts in NOK million) properties properties Group Total Investment property 27,773.2 - - 27,773.2 Other fixed assets 24.0 - 4.6 28.6 Investment in joint ventures - 955.8 - 955.8 Receivables 467.7 - - 467.7 Cash and cash equivalents - - 471.4 471.4 Deferred tax - - (1,740.3) (1,740.3) Financial derivative instruments - - 174.4 174.4 Interest bearing liabilities - - - - Other liabilities (208.5) - (203.4) (411.9) Total equity (11,598.2) (11,598.2)
Segment information related to balance-sheet items as at 31 December 2023 is specified in the table below.
Commercial Residential (Amounts in NOK million) properties properties Group Total Investment property 23,662.6 - - 23,662.6 Other fixed assets 26.3 - 4.0 30.3 Investment in joint ventures - 933.2 - 933.2 Receivables 1,008.1 - - 1,008.1 Cash and cash equivalents - - 325.6 325.6 Deferred tax - - (1,360.5) (1,360.5) Financial derivative instruments - - 141.4 141.4 Interest bearing liabilities - - (13,988.4) (13,988.4) Other liabilities (144.4) - (196.4) (340.7) Total equity (10,411.6) (10,411.6)
Annual report 2024 Norwegian Property ASA
Annual group accounts 52
NOTE 16: Contractual rental income
Norwegian Property’s operating income in 2024
totalled NOK 1,386.4 million (NOK 1,009.6 million).
The group’s commercial properties are located in
the Oslo region. They primarily consist of office
premises with associated warehousing and parking
space. Some of the properties include space for
letting as retail outlets and restaurants. Offices
account for the bulk of all the larger properties. At
Aker Brygge in central Oslo, the properties are
located by the sea with a small associated marina
business, outdoor areas and an energy centre which
uses seawater for the heating/cooling of the
properties.
Total revenue is distributed as follows in the various
areas described hereinabove.
(Amounts in NOK million) 2024 2023 Income relating to fixed lease payments for commercial properties 1,330.7 1,056.9 Income relating to variable lease payments from retail and restaurant customers for commercial properties 15.6 13.5 Other variable income related to the marina, outdoor areas and energy centre at Aker Brygge in Oslo 40.1 39.2 Total revenues 1,386.4 1,109.6
Tenants comprise commercial companies and
public-sector institutions of different types and sizes.
Rental income is based on leases of varying lengths,
where income based on the leases is recognised on
a linear basis over the duration of the lease. Rental
income is generally invoiced quarterly in advance
with 30 days to pay. Income from the marina relates
to rental charges by the season, by the day, for
events, etc. Income for the energy centre is invoiced
to the tenants who are connected to it.
The group’s lease-based rental income is distributed
as follows, where the figures are given as lease
values without index adjustment for leases entered
into as at 31 December.
(Amounts in NOK million) 2024 2023 Within 1 year 1,446.2 1,232.6 Between 1 and 2 years 1,259.8 1,128.3 Between 2 and 3 years 1,105.1 974.0 Between 3 and 4 years 910.1 840.9 Between 4 and 5 years 792.3 660.8 Later than 5 years 3,229.5 2,415.4 Total 8,743.0 7,251.9
Service charges are recognised net as an agent of
the tenant. Therefore, the operating revenues do not
include service charges invoiced to the tenants.
Accrued service charges are recognised in the
balance sheet together with payments on account
from tenants. The settlement of service charges is
made after the balance-sheet date. Service charges
invoiced to tenants in 2024 amounted to NOK 350
million (NOK 230 million).
NOTE 17: Net realised financial items
The table below presents a specification of the
income statement item on realised net financial
items.
(Amounts in NOK million) 2024 2023 Interest income on bank deposits and receivables 90.2 34.6 Interest income on guarantee receivables (see note 6) 5.8 7.7 Total financial income 95.9 42.3 Interest expense on borrowings (774.8) (483.9) Total financial expenses (774.8) (483.9) Net financial items (678.8) (441.6)
NOTE 18: Operating expenses
A specification of the operating expenses in the
income statement is provided below.
18.1 - Property-related operational
expenses
Property-related expenses include the administrative
costs related to the management of the properties
as well as the operating and maintenance costs.
(Amounts in NOK million) 2024 2023 Administrative management costs 10.5 13.9 Operating and maintenance costs 78.1 68.6 Total property-related operational expenses 88.6 82.5
Annual report 2024 Norwegian Property ASA
Annual group accounts 53
18.2 - Other property-related expenses
Other property-related expenses include income-
related costs related to leasing, marketing, etc., the
owner’s share of service charges, project-related
property costs and depreciation related to the
properties.
(Amounts in NOK million) 2024 2023 Rental, market and other income-related expenses 41.6 34.6 Owner's share of service charge expenses 48.0 39.4 Total other property-related expenses 89.5 73.9
18.3 - Administrative owner expenses
Administrative expenses relate to costs which are
not directly related to the operation and leasing of
properties, and they include the costs related to the
overall ownership and corporate functions.
(Amounts in NOK million) 2024 2023 Payroll expenses 101.6 99.1 Depreciation 3.6 3.6 Other operating expenses 24.9 21.5 Costs allocated to property costs (62.1) (56.7) Total administrative expenses 68.0 67.5
NOTE 19: Payroll costs and
remuneration of executive officers
and the auditor
The tables below present a breakdown of payroll
costs and remuneration of directors, senior
executives and auditors.
19.1 - Payroll costs
Payroll costs for the year are as follows.
(Amounts in NOK million) 2024 2023 Salaries and remuneration 95.2 86.9 Social security costs 10.3 16.4 Pension costs for defined contribution plans 3.9 3.6 Other employee expenses 2.1 2.0 Total payroll cost 111.4 108.9 Number of employees as at 31 December 71 64 Number of full-time equivalent positions in the financial year 69 66 Average number of employees in the financial year 68 63
Pursuant to the Norwegian Act on Mandatory
Occupational Pensions, Norwegian Property ASA is
required to operate certain pension plans. The
group has plans which satisfy these requirements
(defined contribution plan for all employees).
The group has a controlling interest in Bryggedrift AS
(see note 26), which has an individual defined
benefit pension obligation of NOK 1.8 million to a
former employee funded from operations.
19.2 - Auditor’s fee
Fees paid in 2024 to the company’s elected auditor
EY are shown in the table below. The statutory audit
fees include fees related to the audit for the financial
years 2023 and 2024 paid in the calendar year 2024.
The fees are net of VAT (amounts in NOK).
Type of fees 2024 2023 Statutory audit 2,380,516 2,157,000 Other certification services 515,500 65,000 Tax/VAT advice - - Other services 285,955 - Total 3,181,971 2,222,000
19.3 - Directors’ fees
Fees to directors in 2024 are presented in the table
below.
1Name RemunerationBjørn Henningsen, chair 01/01-31/12 700,000 Cecilie Astrup Fredriksen, director 01/01-31/12 250,000 Kathrine Astrup Fredriksen, director 01/01-31/12 250,000 Lars Erich Nilsen, director 01/01-31/12 250,000 Total 1,450,000
1) Reported benefits paid in 2024 (amounts in NOK). In
addition to that are the employer’s National Insurance
contributions.
Fees to directors in 2023 are presented in the table
below.
1Name RemunerationBjørn Henningsen, chair 01/01-31/12 700,000 Cecilie Astrup Fredriksen, director 01/01-31/12 250,000 Kathrine Astrup Fredriksen, director 01/01-31/12 250,000 Lars Erich Nilsen, director 01/01-31/12 250,000 Lars Buin, director 01/01-21/04 62,500 Total 1,512,500
1) Reported benefits paid in 2023 (amounts in NOK). In
addition to that are the employer’s National Insurance
contributions.
Annual report 2024 Norwegian Property ASA
Annual group accounts 54
19.4 - Remuneration of senior management
Remuneration of senior management in 2024 is specified in the table below.
2
Pension/ insurance 111BonusesOther benefitsbenefitsName Title SalaryBent Oustad CEO 4,895,186 3,000,000 4,392 123,677 Haavard Rønning CFO 2,992,525 1,500,000 9,477 119,208 Bjørge Aarvold EVP property management 2,293,441 630,000 127,392 133,474 Ellen Cathrine Kobro EVP sales and marketing 2,522,088 750,000 7,297 121,653 Sindre Kornrud EVP projects 2,025,731 600,000 4,392 117,698 Vidar Stokkeland EVP development 2,051,036 495,000 11,256 116,108 Thomas Weeden EVP bus. dev. and strategy 2,160,080 639,000 4,392 116,675 Total 18,940,086 7,614,000 168,598 848,493
1) Applies to the salary for 2024 and bonus for 2023 paid in 2024 (amounts in NOK). In addition to that are the employer’s
National Insurance contributions.
2) Contribution paid to the defined contribution pension plans and employee insurance in 2024 (amounts in NOK).
Remuneration of senior management in 2023 is specified in the table below:
2
Pension/ insurance 111BonusesOther benefitsbenefitsName Title SalaryBent Oustad CEO 4,018,221 2,887,500 4,392 109,423 Haavard Rønning CFO 3,155,540 1,272,321 9,589 112,806 Bjørge Aarvold EVP property management 2,186,875 597,464 124,392 126,528 Ellen Cathrine Kobro EVP sales and marketing 2,502,351 602,679 5,288 114,928 Sindre Kornrud EVP projects 2,053,330 508,929 4,392 111,422 Vidar Stokkeland EVP development 1,843,259 195,833 12,016 109,718 Thomas Weeden EVP bus. dev. and strategy 2,183,570 541,647 4,392 110,453 Total 17,943,146 6,606,373 164,461 795,278
1) Applies to the salary for 2023 and bonus for 2022 paid in 2023 (amounts in NOK) In addition to that are the employer’s National
Insurance contributions.
2) Contribution paid to the defined contribution pension plans and employee insurance in 2023 (amounts in NOK).
NOTE 20: Share capital and
shareholders
The table below specifies the average number of
shares in the past two years, the group’s largest
shareholders and the shares owned by the directors
and senior executives as at 31 December.
20.1 - Changes in share capital and
average number of shares
2024 2023 Average number of shares (1,000 shares) 652,029 649,826 Number of shares issued at 31 December (1,000 shares) 674,264 649,826
20.2 - The group’s main shareholders as
at 31 December
An equity issue of NOK 500 million was carried out in
the fourth quarter of 2024 as part of the financing of
the takeover of the property at Martin Linges vei 33.
The share capital was increased by NOK
12,463,343.28, from NOK 331,411,053.96 to NOK
343,874,397.24, by the issuance of 24,437,928 new
shares, each with a nominal value of NOK 0.51. In
addition, the shareholding in Norwegian Property
ASA was transferred to a different holding company
within the same ownership structure as part of an
internal restructuring.
As of 31 December 2024, Norwegian Property ASA
has a share capital of NOK 343,874,397.24 divided
Annual report 2024 Norwegian Property ASA
Annual group accounts 55
into 674,263,524 shares, each with a par value of
NOK 0.51. Norwegian Property ASA owns 6,250,000
treasury shares. Realty Holdings (NOR) Ltd. owns
the remaining 668,013,524 shares in the company.
20.3 - Shares held by senior executives
and directors as at 31 December
The directors Cecilie Astrup Fredriksen, Kathrine
Astrup Fredriksen and Lars Erich Nilsen are related
to Realty Holdings (NOR) Ltd, which is the
company’s sole proprietor at the end of 2024.
20.4 - Share options
Share options are granted to the CEO. Each share
option entitles the holder to subscribe for a share in
Norwegian Property ASA. The option agreement with
the CEO was entered into in 2017 and entitles him to
subscribe to a total of 5,750,000 shares. As an
alternative to delivering shares, the board of
Norwegian Property may opt to settle the profit in
cash. The agreement otherwise contains normal
conditions on such matters as continued
employment and adjustment of share prices and so
forth as a result of corporate events.
The total fair value of share options granted in 2017
was NOK 11.2 million (excluding the employer’s
National Insurance contribution). The fair value is
calculated by external valuers based on the Black-
Scholes model. The share price at the grant date was
NOK 10.45. All 5,750,000 options were exercised in
2022 for subsequent settlement in accordance with
the option agreement by agreement with the
company’s board. The weighted average exercise
price adjusted for dividends for the period is NOK
10.81 per option.
20.5 - Revaluation reserve
A revaluation reserve of NOK 3.7 million (net loss)
related to owner occupied property is included in
other paid-in equity as at 31 December 2024 (net loss
of NOK 5.5 million).
NOTE 21: Earnings per share
Basic earnings per share are calculated by dividing
the net profit attributable to shareholders with the
weighted average number of ordinary shares
outstanding during the year.
2024 2023 Net profit attributable to shareholders (NOK million) 1,025.9 (2,348.1) Weighted average number of outstanding shares, exclusive treasury 1shares (million shares) 645.8 643.6 Weighted average number of diluted outstanding shares, exclusive treasury 2shares (million shares) 651.5 647.1 Basic earnings per share (NOK per share) 1.59 (3.65) Diluted earnings per share (NOK per share) 1.57 (3.63)
1) Both at the end of 2024 and 2023, the group owned
6,250,000 treasury shares.
2) The diluted number of shares has been adjusted for the
options granted.
NOTE 22: Dividend per share and
dividend policy
Norwegian Property’s goal is to pay a dividend to its
shareholders amounting to 30-50 per cent of its
ordinary profit after tax payable but before fair-value
adjustments. The dividend can be higher in times
with good cash flow. Before a dividend is
determined, an assessment is made of the group’s
financial position and prospects, including the
availability of attractive investment opportunities.
The board has a mandate from the group’s AGM to
make quarterly dividend payments. A dividend of
NOK 0.14 per share was approved by the board
meeting on 28 January 2025.
NOTE 23: Related-party disclosures
Parties are related if one party can exercise
significant influence over the group in making
strategic or operating decisions. Significant
influence is normally obtained by ownership,
participation in decision-making bodies and
management or by agreements.
Balances and transactions with subsidiaries (which
are related parties of Norwegian Property ASA) are
eliminated in the consolidated financial statements
and are not covered by the information given in this
note. Financial relationships related to the board and
senior management are described in notes 19 and
20.
Annual report 2024 Norwegian Property ASA
Annual group accounts 56
A management fee of NOK 2 million has been
expensed in 2024 from a company related to the
shareholder Realty Holdings (NOR) Ltd.
No other agreements or significant transactions with
related parties were carried out in 2024.
NOTE 24: Contingent liabilities and
assets
The group has a liability if it is committed to giving
up financial resources to another party at a future
date. An uncertain liability is a liability of uncertain
timing or amount. A contingent liability is a category
of uncertain liabilities, where the possible obligation
depends on whether some uncertain future events
occur which the group cannot fully influence.
Similarly, a contingent asset relates to the possible
rights for the group to receive financial resources at
a future date.
Guarantees relating to the sale of
properties and companies
The seller normally issues guarantees relating to the
sale of properties because of formal, physical and
suchlike conditions related to the transferred
properties and/or companies. The guarantees
typically include conditions related to legal status,
ownership of shares, validity of financial statements
and tax issues, contractual issues, liens,
environmental matters, insurance coverage,
assessment of defects, etc. The seller must typically
cover the financial losses incurred by the buyer from
any errors or omissions which may be linked to the
guarantees.
Norwegian Property has issued this kind of
guarantee to buyers in relation to the sale of
properties/companies since the group was
established. As at the end of 2024 and 2023, the
assessment is that there are no circumstances
which entail an obligation for Norwegian Property
and a need to make provisions.
NOTE 25: Events after the balance-
sheet date
Events after the balance-sheet date are events,
favourable or unfavourable, which occur between
the balance-sheet date and the date when the
financial statements are authorised for issue. Such
events can be events which provide information on
the conditions existing as at the balance-sheet date,
thereby resulting in adjustments to the financial
statements, or events which do not require such
adjustments.
In accordance with the mandate from the AGM in
2024, the board decided on 28 January 2025 that a
dividend of NOK 0.14 per share will be paid for the
fourth quarter of 2024.
No other significant events have occurred after 31
December 2024 which provide information on the
conditions existing as at the balance-sheet date.
NOTE 26: Group companies
The consolidated financial statements of Norwegian
Property ASA comprise the following wholly-owned
subsidiaries as at 31 December 2024:
Aker Brygge AS
Aker Brygge Business Village AS
Aker Brygge Energisentral AS
Aker Brygge Marina AS
Aker Brygge Marina Drift AS
Aker Brygge Uteareal AS
Bryggegata 9 AS
Bydel Aker Brygge Forvaltning AS
Dokkbygningen Aker Brygge AS
Drammensveien 60 AS
Fondbygget AS
Gardermoen Næringseiendom AS
Gardermoen Næringseiendom KS
Gjerdrums vei 10 G AS
Gjerdrums vei 5 AS
Gjerdrums vei 8 AS
Gjerdrums vei 14-16 AS
Gjerdrums vei 17 AS
Gjerdrums vei 3 AS
Gullhaug Torg 3 AS
Gullhaugveien 9-13 AS
Hasle Linje Bygg 01 AS
Nye Hasle Linje Bygg 01 Næring AS
Kaibygning 1 AS
Kaibygning 2 AS
K21 Holding AS
Koksa Eiendom AS
Koksa Drift AS
Lille Grensen 7 AS
Martin Langes vei 33 AS
ML 33 Drift AS
ML 33 Holding AS
Annual report 2024 Norwegian Property ASA
Annual group accounts 57
ML 33 Holding II AS
Norwegian Property ASA
NPRO 1 AS
NPRO 2 AS
NPRO Drift AS
NPRO Holding AS
NPRO Invest AS
Nydalsveien 15-17 AS
Sandakerveien 130 AS
Snarøyveien 30 AS
Snarøyveien 36 AS
Stranden AS
Støperiet AS
Terminalbygget Aker Brygge AS
Tingvalla AS
Verkstedhallene AS
All of the subsidiaries have the same business
address as Norwegian Property ASA (Bryggegata 3,
NO-0250 Oslo, Norway).
In addition to its wholly-owned subsidiaries, the
Norwegian Property group has a controlling interest
in Bryggedrift AS (business address Støperigata 1,
NO-0250 Oslo, Norway), which is responsible for
certain operating services and management of
condominiums at Aker Brygge in Oslo. Bryggedrift
AS is a facility management company without
significant assets. All condominiums at Aker Brygge
are shareholders in Bryggedrift AS, and Norwegian
Property – as a participant in the condominiums -
had a controlling interest in Bryggedrift AS as at 31
December 2024 on the basis of the ownership
structure of the condominiums. Norwegian Property
is represented on the board of Bryggedrift AS by two
of the five directors.
Norwegian Property owns Nordr together with
Fredensborg and Union Real Estate Fund III. While
Norwegian Property and Fredensborg are equal
partners, each holding 42.5 per cent of the preferred
shares, Union owns 15 per cent of the preferred
shares (see note 8).
Norwegian Property also owns a 50 per cent share in
the property at Forusbeen 35 together with Base
Bolig (see note 8).
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 58
Annual accounts of the parent
company
Income statement 1 Jan-31 Dec
(Amounts in NOK million)
Note 2024 2023
Management and service fee from group companies 3 66.9 62.2
Total operating revenue 66.9 62.2
Payroll costs 4 (101.6) (99.1)
Depreciation 8 (1.3) (0.9)
Other operating costs 4 (35.3) (33.3)
Total operating costs (138.2) (133.3)
Operating profit (71.3) (71.1)
Financial income 5 1,299.0 1,001.1
Financial expenses 5 (1,184.5) (937.5)
Net financial items 114.5 63.6
Profit before tax 43.1 (7.5)
Income tax expense 6 (71.6) 1.3
Profit for the year (28.4) (6.2)
Proposed allocations:
Dividend distribution to shareholders (93.5) (84.5)
Transferred to/from share premium (122.0) (90.7)
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 59
Balance sheet as at 31 Dec
Oslo, 28 March 2025
Norwegian Property ASA
(Amounts in NOK million)
Note 2024 2023
ASSETS
Non-current assets:
Deferred tax assets 12 48.1 159.5
Financial derivative instruments 7 186.4 147.6
Tangible assets 8 4.6 4.0
Investments in subsidiaries 9 4,770.5 3,193.9
Total non-current assets 5,009.6 3,504.9
Current assets:
Financial derivative instruments 7 1.2 3.6
Intercompany balances 3 12,334.0 13,517.6
Other receivables 2.7 3.0
Cash and cash equivalents 12 354.1 232.5
Total current assets 12,692.1 13,756.7
TOTAL ASSETS 17,701.7 17,261.6
EQUITY AND LIABILITIES
Equity:
Share capital 340.8 328.3
Share premium 2,785.0 2,682.8
Total equity 10 3,125.8 3,011.2
Non-current liabilities:
Financial derivative instruments 7 13.2 -
Interest-bearing debt 11 10,105.7 10,777.8
Other long-term debt 0.3 0.8
Total non-current liabilities 10,119.1 10,778.6
Current liabilities:
Financial derivative instruments 7 - 9.8
Interest-bearing debt 11 4,176.0 3,210.6
Provision for dividend 10 93.5 84.5
Other current liabilities 12 187.1 167.0
Total current liabilities 4,456.7 3,471.9
Total liabilities 14,575.8 14,250.4
TOTAL EQUITY AND LIABILITIES 17,701.7 17,261.6
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 60
Cash flow statement 1 Jan-31 Dec
(Amounts in NOK million)
Note 2024 2023
Ordinary profit before tax 43.1 (7.5)
Net financial items 5 (114.5) (63.6)
Interest received 5 1,265.8 1,005.0
Other financial income received 5 0.2 0.0
Interest paid 5 (1,128.1) (897.4)
Other financial expenses paid 5 (32.4) (9.8)
Depreciation of tangible assets 8 1.3 0.9
Changes in other current items (7.9) 0.1
Net cash flow from operating activities 27.7 27.7
Purchase of tangible assets 8 (1.9) (2.7)
Capital increase in subsidiaries 9 (2,000.0) (4,000.0)
Repayment of intercompany balances 3 1,646.8 2,053.2
Net cash flow from investment activities (355.2) (1,949.5)
Repayment of interest-bearing debt 11 (3,215.0) (1,889.0)
New interest-bearing debt 11 3,512.0 3,705.5
Dividends paid 10 (347.5) (321.8)
Share issue 10 499.7 499.7
Net cash flow from financing activities 449.2 1,994.4
Net change in cash and cash equivalents 121.7 72.7
Cash and cash equivalents 1 January 11 232.5 159.7
Cash and cash equivalents 31 December 11 354.1 232.4
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 61
NOTE 1: General information
The Norwegian Property ASA real estate group
primarily owns commercial properties in the Oslo
region. Norwegian Property also owns a share (joint
venture) in the residential development company
Nordr. In Stavanger, Norwegian Property has a joint
venture for the development of a property with a
combined residential and commercial purpose.
The holding company, Norwegian Property ASA, is a
public limited company with its headquarters at
Bryggegata 3, Oslo (Norway).
The financial statements were adopted by the board
on 28 March 2025 for final approval by the AGM in
2025.
NOTE 2: Summary of significant
accounting policies
The financial statements are prepared in accordance
with the Norwegian Accounting Act and Norwegian
generally accepted accounting principles.
The principal accounting policies applied in the
preparation of these financial statements are set out
below. These policies have been consistently applied
to all the years presented, unless otherwise stated.
2.1 - Classifications
Assets held for sale or for use in the ordinary
business cycle, or owned mainly for trade, or
expected to be realised within 12 months, or
representing cash and cash equivalents are
classified as current assets. All other assets are
classified as non-current assets. Liabilities which are
expected to be settled in the ordinary course of
business, are mainly held for trade or are expected
to be settled within 12 months are classified as
current liabilities. All other liabilities are classified as
non-current liabilities.
2.2 - Subsidiaries
The cost method is applied to investments in other
companies. The cost price is increased when funds
are added through capital increases or when group
contributions are made to subsidiaries. The received
dividends are initially taken to income. Dividends
exceeding the portion of retained equity after the
purchase are reflected as a reduction in purchase
cost. The dividend/group contribution from
subsidiaries are reflected in the same year as the
subsidiary makes a provision for the amount.
Dividends from other companies are reflected as
financial income when it has been approved.
2.3 - Tangible assets
Impairment tests are carried out if there is an
indication that the carrying amount of an asset
exceeds the estimated recoverable amount. The test
is performed on the lowest level of fixed assets at
which independent cashflows can be identified. If
the carrying amount is higher than both the fair
value less cost to sell and value in use (net present
value of future use/ownership), the asset is written
down to the highest of fair value less the cost to sell
and the value in use.
2.4 - Trade receivables
Trade receivables and other receivables are
recognised initially at par, less provision for
impairment. Provision for the impairment of trade
receivables is based on individual assessments of
each receivable.
2.5 - Cash and cash equivalents
Cash and cash equivalents include cash on hand,
bank deposits, other current highly liquid
investments with original maturities of three months
or less and bank overdrafts. Bank overdrafts are
shown under borrowings in current liabilities in the
balance sheet.
2.6 - Share capital, share premium and
share options
Shares are classified as equity when there is no
obligation to transfer cash or other assets. Costs
directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of
tax, from the proceeds. Treasury shares are
recognised at par.
Employee options represent rights for employees to
subscribe for shares in the company at a future time
at a predetermined subscription price (subscription
right). Drawing requires continued employment. The
fair value of employee benefits received in exchange
for the granting of options is recognised as an
expense. The total amount to be expensed over the
vesting period reflects the fair value of the options
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 62
granted. On the balance-sheet date, the company
revises the estimates of the number of options
expected to be utilised and changes in estimates are
recognised in the income statement over the
remaining vesting period with a corresponding
adjustment of equity. The value of allotted shares
after the deduction of directly-linked transaction
costs is credited to share capital and share premium
reserve when exercisable options are exercised.
2.7 - Borrowings
Borrowings are initially recognised at fair value, net
of the transaction costs incurred. Borrowings are
subsequently stated at amortised cost using the
effective interest method. Any differences between
the proceeds (net of transaction costs) and the
redemption value are recognised in the income
statement over the duration of the borrowings.
2.8 - Interest expense
Interest expenses on borrowings are recognised
under the financial costs in the income statement
using the effective interest-rate method. This
method is used to allocate amortised cost on
financial assets and financial liabilities as well as the
correct accrual of interest income and interest
expense. The effective interest rate allocates future
cash flows throughout the duration of the loan and
indicates the real net value of the financial asset or
liability.
When calculating the effective interest rate, the
group estimates all contractual cash flows related to
the financial instrument (such as terms of payment)
but does not take future loss into account. When
calculating the effective interest rate, all the fees are
included and distributed over the relevant period
(term to maturity).
2.9 - Management fees and other
operating revenue
Management fees charged to subsidiaries relate to
property management, managing customer centres
and financial management. Management fees are
recognised when they are earned.
2.10 - Derivatives
The group is exposed to interest-rate risk related to
floating rate loans. The company uses forward rate
agreements to reduce interest-rate risk. Unrealised
profits/losses related to these contracts are
recognised in the income statement.
2.11 - Pensions
Norwegian Property ASA operates a defined
contribution plan for all employees. A defined
contribution pension plan is a scheme where the
group pays fixed (defined) amounts to a separate
legal entity. The group has no legal or other
obligations to pay further amounts if the entity has
insufficient assets to make all the payments which
are due to the employees under the rights earned in
current or previous periods. Contributions are
recognised as an employee benefit expense when
they fall due. Prepaid contributions are recognised
as an asset to the extent that cash refunds or
reductions in future payments are available.
2.12 - Income tax
Tax in the income statement consists of tax payable
and changes in deferred tax. Deferred income tax is
calculated at the applicable rate based on the
temporary differences between the tax bases of
assets and liabilities as well as their carrying
amounts in the consolidated financial statements
and the tax loss carried forward as at 31 December.
Tax increasing or reducing temporary differences
which are reversed or can be reversed in the same
period are offset. Deferred tax assets are recognised
to the extent that it is probable that future taxable
profit will be available against which the temporary
differences can be utilised.
2.13 - Use of estimates
The preparation of the income statement in
accordance with the generally accepted Norwegian
accounting principles requires the use of estimates
and assumptions which affect the income statement
and the valuation of assets and liabilities as well as
the information related to contingent assets and
liabilities as at the balance-sheet date.
Contingent losses which are probable and
quantifiable are recognised as they occur.
2.14 - Cash flow statement
The preparation of the cash flow statement is based
on the indirect method.
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 63
NOTE 3: Related-party disclosures
All transactions, agreements and business
relationships with related parties are made on
normal commercial terms.
Financial relationships related to the board and
senior management are described in notes 4 and 10.
A management fee of NOK 2 million has been
expensed in 2024 from a company related to the
shareholder Realty Holdings (NOR) Ltd.
Income-statement and balance-sheet items related
to group companies are specified in the table below.
NOTE 4: Payroll costs and
remuneration of executive officers
and the auditor
The payroll cost for the year is as follows.
Pursuant to the Norwegian Act on Mandatory
Occupational Pensions, Norwegian Property ASA is
required to operate certain pension plans. The
company has plans which satisfy these requirements
(defined contribution plan for all employees).
Fees paid in 2024 to the company’s elected auditor
EY are shown in the table below. The statutory audit
fees include fees related to the audit for the financial
years 2023 and 2024 paid in the calendar year 2024.
The fees are net of VAT (amounts in NOK).
Fees to directors in 2024 are presented in the table
below.
1) Reported benefits paid in 2024 (amounts in NOK). In
addition to that are the employer’s National Insurance
contributions.
Fees to directors in 2023 are presented in the table
below.
1) Reported benefits paid in 2023 (amounts in NOK). In
addition to that are the employer’s National Insurance
contributions.
(Amounts in NOK million)
2024 2023
Income statement:
Management and service fee, group
companies
66.9 62.2
Rental cost, subsidiaries (6.1) (6.9)
Interest income from group companies
(note 5)
104.1 104.1
Balance sheet:
Investments in subsidiaries (note 9) 4,770.5 3,193.9
Current assets, intercompany balances 12,334.0 13,517.6
(Amounts in NOK million)
2024 2023
Salaries and remuneration 86.9 78.6
Social security costs 9.0 15.1
Pension costs (defined
contribution plan)
3.5 3.2
Other employee expenses 2.2 2.2
Total payroll costs
101.6 99.1
Number of employees at 31
December
60 55
Number of full-time equivalent
positions in the fiscal year
56 55
Average number of employees in
the fiscal year
58 54
Type of fees 2024 2023
Statutory audit 1,179,025 1,042,100
Other certification services 490,500 45,000
Tax/VAT advice - -
Other services 285,955 -
Total 1,955,480 1,087,100
Name
Remune-
ration
1
700,000
250,000
250,000
250,000
1,450,000
Bjørn Henningsen, chair 01/01-31/12
Cecilie Astrup Fredriksen, director 01/01-31/12
Kathrine Astrup Fredriksen, director 01/01-31/12
Lars Erich Nilsen, director 01/01-31/12
Total
Name
Remune-
ration
1
700,000
250,000
250,000
250,000
62,500
1,512,500
Bjørn Henningsen, chair 01/01-31/12
Cecilie Astrup Fredriksen, director 01/01-31/12
Kathrine Astrup Fredriksen, director 01/01-31/12
Lars Erich Nilsen, director 01/01-31/12
Lars Buin, director 01/01-21/04
Total
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 64
Remuneration of senior management in 2024 is specified in the table below.
1) Applies to salary for 2024 and bonus for 2023 paid in 2024 (amounts in NOK). In addition to that are the employer’s National
Insurance contributions.
2) Contribution paid to defined contribution pension plans and employee insurance in 2024 (amounts in NOK).
Remuneration of senior management in 2023 is specified in the table below:
1) Applies to salary for 2023 and bonus for 2022 paid in 2023 (amounts in NOK). In addition to that are the employer’s National
Insurance contributions.
2) Contribution paid to defined contribution pension plans and employee insurance in 2023 (amounts in NOK).
Name
Title Salary
1
Bonuses
1
Other benefits
1
Pension/
insurance
benefits
2
Bent Oustad CEO 4,895,186 3,000,000 4,392 123,677
Haavard Rønning CFO 2,992,525 1,500,000 9,477 119,208
Bjørge Aarvold EVP property management 2,293,441 630,000 127,392 133,474
Ellen Cathrine Kobro EVP sales and marketing 2,522,088 750,000 7,297 121,653
Sindre Kornrud EVP projects 2,025,731 600,000 4,392 117,698
Vidar Stokkeland EVP development 2,051,036 495,000 11,256 116,108
Thomas Weeden EVP bus. dev. and strategy 2,160,080 639,000 4,392 116,675
Total 18,940,086 7,614,000 168,598 848,493
Name
Title Salary
1
Bonuses
1
Other benefits
1
Pension/
insurance
b
enefits
2
Bent Oustad CEO 4,018,221 2,887,500 4,392 109,423
Haavard Rønning CFO 3,155,540 1,272,321 9,589 112,806
Bjørge Aarvold EVP property management 2,186,875 597,464 124,392 126,528
Ellen Cathrine Kobro EVP sales and marketing 2,502,351 602,679 5,288 114,928
Sindre Kornrud EVP projects 2,053,330 508,929 4,392 111,422
Vidar Stokkeland EVP development 1,843,259 195,833 12,016 109,718
Thomas Weeden EVP bus. dev. and strategy 2,183,570 541,647 4,392 110,453
Total 17,943,146 6,606,373 164,461 795,278
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 65
NOTE 5: Net financial items
Net financial items for the year are as follows.
NOTE 6: Deferred tax and income tax
The tax expense for the year in the income
statement and deferred taxes in the balance sheet
are as follows.
(Amounts in NOK million)
2024 2023
Financial income:
Interest income from group
companies
104.1 104.1
Other interest income 1,161.7 900.9
Changes in value of financial
derivative instruments
33.0 (3.9)
Other financial income 0.2 0.0
Total financial income 1,299.0 1,001.1
Financial expenses:
Interest cost on loans (1,152.1) (927.7)
Other financial expenses (32.4) (9.8)
Total financial expenses (1,184.5) (937.5)
Net financial items 114.5 63.6
(Amounts in NOK million)
2024 2023
The tax expense for the year is
distributed as follows:
Tax payable - -
Changes in deferred tax 71.6 (1.3)
Income tax expense 71.6 (1.3)
Calculation of the tax base for the year:
Profit before tax 43.1 (7.5)
Permanent differences 282.2 1.6
Changes in temporary differences (43.1) (8.9)
Group contribution 181.0 39.3
Tax base for the year 463.2 24.5
Specification of temporary differences
and deferred tax:
Tangible assets 0.9 (1.2)
Financial derivative instruments 174.4 141.4
Provisions 31.0 22.9
Tax loss carried forward (424.8) (888.0)
Basis for deferred tax (218.5) (724.8)
Deferred tax in the balance sheet 48.1 159.5
Reconciliation of tax expense and
calculated effective tax rate:
Calculated tax expense on profit before
tax (22 per cent)
9.5 (1.6)
Permanent differences 62.1 0.4
Tax payable - -
Income tax expense 71.6 (1.3)
Effective tax rate (per cent) 165.9 17.2
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 66
NOTE 7: Derivatives
7.1 - Derivatives in the annual accounts
The company is exposed to interest-rate risk related
to loans with floating interest rates, and interest-rate
hedge agreements have been entered into in order
to reduce the interest-rate risk. Unrealised
gains/losses associated with such agreements are
recognised in the income statement.
The fair value of derivatives is determined by the net
present value of future cash flows, calculated using
quoted interest-rate curves and exchange rates as at
the balance-sheet date. The technical calculations
are generally prepared by the company’s banks. The
company checks and tests the valuation for
reasonableness. The fair value of the company’s
derivatives as at 31 December is specified in the
table below.
2024:
2023:
7.2 - Interest-rate derivatives
The majority of Norwegian Property’s floating-rate
loans are hedged with interest-rate hedges.
Norwegian Property has a policy of hedging a
minimum of 70 per cent of the interest-bearing debt
outstanding at any given time. Despite the hedging
positions, the company’s financial assets and cash
flow will be exposed to fluctuations in the applicable
market interest rate. Because of these fluctuations,
the interest-rate cost will vary. Notional principal
amounts for the company’s interest-rate hedges as
at 31 December are specified in the table below. The
maturity dates are broken down in note 11.
NOTE 8: Tangible assets
Changes in tangible assets are specified in the table
below.
The company uses linear depreciation. The
economic life of the assets is four years for IT
equipment, five years for licences, cars and
furnishings as well as seven years for fixtures.
NOTE 9: Investments in subsidiaries
Investments in subsidiaries as at 31 December 2024
are specified in the table below. The companies own
the group’s properties (single-purpose entities).
1) Voting ownership interest is identical to ordinary
ownership.
(Amounts in NOK million)
Assets Liabilities
Interest-rate contracts 187.6 13.2
(Amounts in NOK million)
Assets Liabilities
Interest-rate contracts 151.2 9.8
Currency 2024 2023
Notional principal
amount
NOK 4,900.0 3,450.0
(Amounts in NOK
million)
IT-systems
and other
in
tangible
assets
Fixtures
and
e
quipment
Total
Acquisition cost:
At 31 December 2022 2.2 2.3 4.5
Additions 1.4 1.3 2.7
At 31 December 2023 3.6 3.6 7.2
Additions 1.9 - 1.9
At 31 December 2024 5.5 3.6 9.1
Accumulated
depreciation:
At 31 December 2022 0.8 1.5 2.4
Depreciation and
impairment for the year
0.5 0.4 0.9
At 31 December 2023 1.3 1.9 3.2
Depreciation and
impairment for the year
0.7 0.7 1.3
At 31 December 2024 2.0 2.6 4.6
Book value:
At 31 December 2023 2.3 1.7 4.0
At 31 December 2024 3.5 1.0 4.6
NPRO
Holding
AS
NPRO
Invest AS
Npro 1 AS
Established Date 17.01.07 26.09.13 23.11.20
Business office City Oslo Oslo Oslo
Share
1
Per cent 100.0 100.0 100.0
Book value NOK mill. 4,770.3 0.1 0.1
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 67
Changes in the book value for the year are as
follows.
NOTE 10: Equity
10.1 - Change in equity
Changes in the balance-sheet items for equity are
specified in the table below.
1) The share capital of NOK 343,874,397 consisted as at 31
December 2024 of 674,263,524 shares, each with a par
value of NOK 0.51.
2) The holding of treasury shares as at 31 December 2024
was 6,250,000 shares.
10.2 - The company’s largest
shareholders as at 31 December
An equity issue of NOK 500 million was carried out in
the fourth quarter of 2024 as part of the financing of
the takeover of the property at Martin Linges vei 33.
The share capital was increased by NOK
12,463,343.28, from NOK 331,411,053.96 to NOK
343,874,397.24, by the issuance of 24,437,928 new
shares, each with a nominal value of NOK 0.51. In
addition, the shareholding in Norwegian Property
ASA was transferred to a different holding company
within the same ownership structure as part of an
internal restructuring.
As of 31 December 2024, Norwegian Property ASA
has a share capital of NOK 343,874,397.24 divided
into 674,263,524 shares, each with a par value of
NOK 0.51. Norwegian Property ASA owns 6,250,000
treasury shares. Realty Holdings (NOR) Ltd. owns
the remaining 668,013,524 shares in the company.
10.3 - Shares held by senior executives
and directors as at 31 December
The directors Cecilie Astrup Fredriksen, Kathrine
Astrup Fredriksen and Lars Erich Nilsen are related
to Realty Holdings (NOR) Ltd, which is the
company’s sole proprietor at the end of 2024.
10.4 - Share options
Share options are granted to the CEO. Each share
option entitles the holder to subscribe for a share in
Norwegian Property ASA. The option agreement with
the CEO was entered into in 2017 and entitles him to
subscribe to a total of 5,750,000 shares. As an
alternative to delivering shares, the board of
Norwegian Property may opt to settle the profit in
cash. The agreement otherwise contains normal
conditions on such matters as continued
employment and adjustment of share prices and so
forth as a result of corporate events.
The total fair value of share options granted in 2017
was NOK 11.2 million (excluding the employer’s
National Insurance contribution). The fair value is
calculated by external valuers based on the Black-
Scholes model. The share price at the grant date was
NOK 10.45. All 5,750,000 options were exercised in
2022 for subsequent settlement in accordance with
the option agreement by agreement with the
company’s board. The weighted average exercise
(Amounts in NOK million)
2024 2023
Book value at 1 January 3,193.9
6,200.2
Investments in subsidiaries 2,000.0 4,000.0
Dividends - (7,000.0)
Group contribution recognised
against shares in subsidiaries
(423.3) (
6.3)
Book value at 31 December 4,770.5 3,193.9
(Amounts in NOK
million)
Share
capital
1
Own
shares
2
Share
premium
Total
equity
Equity at 31
December 2022
324.9 (3.1) 2,521.6 2,843.5
Paid dividend - - (241.3) (241.3)
Dividend
appropriation
- - (84.5) (84.5)
Transactions with
share-holders
6.5 - 167.4 173.9
Profit for the year - - (6.2) (6.2)
Profit for the year - - (6.2) (6.2)
Equity at 31
December 2023
331.4 (3.1) 2,682.8 3,011.2
Paid dividend - - (263.1) (263.1)
Share issue 12.5 - 487.2 499.7
Dividend
appropriation
- - (93.5) (93.5)
Transactions with
share-holders
12.5 - 130.7 143.1
Profit for the year - - (28.4) (28.4)
Profit for the year - - (28.4) (28.4)
Equity at 31
December 2024
343.9 (3.1) 2,785.0 3,125.8
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 68
price adjusted for dividends for the period is NOK
10.81 per option.
NOTE 11: Interest-bearing debt and
financial risk management
11.1 - Interest-bearing debt
The table below presents an overview as at 31
December of the company’s interest-bearing debt,
including hedging ratio, average interest rate and
remaining term to maturity.
1) Include all interest-rate swaps which had commenced at
the balance-sheet date.
The company’s interest-bearing non-current and
current debt as at 31 December is specified in the
tables below.
2024:
2023:
All bonds are secured by properties and a NOK 5.1
billion portfolio of bonds are listed on the Oslo Stock
Exchange. None of the bonds have running terms
related to financial covenants. All the bonds have
change of control clauses, and the requirement of a
maximum of 65 per cent LTV on the mortgaged
building at the time of borrowing.
The security for bank facilities is shared with
bondholders. The bank facilities are subject to
annual renewal. The most important terms for all
these facilities are a minimum interest-rate hedge
ratio of 50 per cent, interest cover of at least 1.4 and
a maximum LTV of 75 per cent. Agreed
requirements in the loan agreements were met at
year-end 2024 and 2023 as well as all quarterly
interim reporting dates in 2024 and 2023.
Maturities for the company’s non-current interest-
bearing debt as at 31 December are broken down in
the table below.
2024 2023
Interest-bearing debt (NOK million) 14,281.7 1
3,988.4
Interest hedging ratio (per cent)
1
54.0 63.9
Cash and cash equivalents (NOK
million)
354.1 232.5
Unutilised credit facilities (NOK
million)
623.3 3,086.4
Average interest rate (per cent) 4.84 4.39
Average interest margin (per cent) 1.76
1.53
Remaining time to maturity for
interest-bearing debt (years)
2.4 2.8
Remaining time to maturity for
interest hedge agreements (years)
4.5 4
.8
(Amounts in NOK million)
Long-
term
Short-
term Total
Bonds, listed 3,419.0 1
,675.0 5,094.0
Bonded, unlisted (bilateral bonds) 4,542.0 -
4,542.0
Bank borrowings (loan facilities) 2,158.0 2
,510.0 4,668.0
Total interest-bearing debt 10,119.0 4
,185.0 14,304.0
Accrued financial items (13.3) (
9.0) (22.3)
Total book value interest-bearing
debt
10,105.7 4
,176.0 14,281.7
(Amounts in NOK million)
Long-
term
Short-
term Total
Bonds, listed 3,025.0 2
,615.0 5,640.0
Bonded, unlisted (bilateral bonds) 4,542.0 -
4,542.0
Bank borrowings (loan facilities) 3,225.0 6
00.0 3,825.0
Total interest-bearing debt 10,792.0 3
,215.0 14,007.0
Accrued financial items (14.2) (
4.4) (18.6)
Total book value interest-bearing
debt
10,777.8 3,210.6
13,988.4
(Amounts in NOK million)
2024 2023
Due in 2026 and 2027 (2025 and
2026)
5,602.0 3,970.0
Due in 2028, 2029 and 2030 (2027,
2028 and 2029)
4,517.0 3,280.0
Due after 2030 (after 2029) - 3,542.0
Total 10,119.0 10,792.0
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 69
The carrying amount of assets pledged as security
for debt as at 31 December is as follows.
1) Shares in property companies owned by other group
entities are also pledged as security for the corporate
facilities in Norwegian Property ASA. See also note 13 to the
group’s financial statements.
2) Properties owned by the subsidiaries have been pledged
as security for bonds.
11.2 - Financial risk management
The company’s activities imply exposure to a variety
of financial risks: market, credit and liquidity.
Market risk
Market risk for the company is primarily related to
the interest-rate risk. The company’s revenues relate
entirely to management fees from subsidiaries.
The company is exposed to interest-rate risk related
to floating rate loans. To manage interest-rate risk,
the group has entered into interest-rate swap
agreements. Notional principal amounts and the
maturity structure for the company’s overall portfolio
of interest-rate hedges as at 31 December are
specified in NOK million in the table below.
Credit risk
The company’s receivables mainly relate to
intercompany balances, where credit risk is
considered low.
Liquidity risk
The company aims to ensure that liquidity/credit
facilities are sufficient to meet its foreseeable
obligations. In addition, it will have a reasonable
capacity to meet unforeseen obligations. One goal is
that the liquidity reserve should consist as far as
possible of available revolving credit and overdraft
facilities rather than cash and cash equivalents. The
company’s liquidity reserve as at 31 December is
specified in the table below.
1) Subsidiaries’ deposits in the parent company’s group
cash pool system are included as cash and cash
equivalents in Norwegian Property ASA.
As described hereinabove, the company has a high
level of hedging against changes in market interest
rates, thereby reducing the need for liquidity
reserves to meet unforeseen obligations related to
these areas. Liquidity risk primarily relates to
servicing instalments on and maturity of liabilities.
The table below specifies the company’s liabilities in
accordance with the maturity structure. The
classification is based on the timing of maturities
specified in the contracts. The amounts in the table
specify the timing of the repayments of notional
principal amounts (NOK million).
2024
1
:
(Amounts in NOK million)
2024 2023
Investment in subsidiaries
1
4,770.5 3,193.9
Total 4,770.5 3,193.9
Liabilities secured
2
4,668.0 2,608.5
Year 2024 2023
< 1 year 400.0 1,050.0
1-2 years 200.0 400.0
3-5 years 2,100.0 500.0
Over 5 years 2,200.0 1,500.0
Notional principal amount 4,900.0 3,450.0
(Amounts in NOK million)
2024 2023
The company's own accounts
and net balance in the group
accounts
8,866.6 10,174.6
Intercompany net balance in the
group accounts
1
(8,512.4) (9,942.1)
Cash and cash equivalents 354.1 232.5
Restricted bank deposits (3.8) (3.5)
Available cash and cash
equivalents
350.3 229.0
Unused credit and overdraft
facilities
623.3 3,086.4
Liquidity reserve 973.6 3,315.4
(Amounts in NOK million)
Interest-
bearing
debt
Other
liabilities
< 1 year 4,776.0 187.1
1-2 year 5,014.5
3-5 year 2,595.6
Over 5 year 3,627.7
Expected cash flow 16,013.9 187.1
Book value 14,281.7 187.1
Annual report 2024 Norwegian Property ASA
Annual accounts of the parent company 70
2023
1
:
1) The difference between the carrying amount and
expected cash flow reflects the capitalised and estimated
interest cost based on the average interest rate as at 31
December. The difference between the carrying amount
and expected cash flow for other liabilities relates to
provision for hedge contracts.
NOTE 12: Other current liabilities
Other current liabilities as at 31 December are
specified in the table below.
NOTE 13: Contingent liabilities
Norwegian Property ASA has no substantial
contingent liabilities through guarantees or other
circumstances arising in the ordinary course of
business.
NOTE 14: Events after the balance-
sheet date
Events after the balance-sheet date are events,
favourable or unfavourable, which occur between
the balance-sheet date and the date when the
financial statements are authorised for issue. Such
events can be events which provide information on
conditions which existed at the balance-sheet date,
resulting in adjustments to the financial statements
or events which do not require such adjustments.
No significant events have occurred after 31
December 2024 which provide information on the
conditions existing as at the balance-sheet date.
(Amounts in NOK million)
Interest-
bearing
debt
Other
liabilities
< 1 year 3,759.3 167.0
1-2 year 4,356.6
3-5 year 3,818.5
Over 5 year 3,775.2
Expected cash flow 15,709.7 167.0
Book value 13,988.4 167.0
(Amounts in NOK million)
2024 2023
Public duties 6.6 6.1
Accrued salaries 7.7 6.3
Accrued interest 138.9 114.9
Trade payables 1.0 2.5
Other payables 32.9 37.1
Total other current
liabilities
187.1 167.0
Annual report 2024 Norwegian Property ASA
Declaration by the board of directors and the CEO 71
Declaration by the board of
directors and the CEO
The board and chief executive have considered and approved the directors’ report as well as the annual
consolidated and parent company financial statements for Norwegian Property ASA as at 31 December 2024. The
consolidated financial statements for the year have been prepared in accordance with the IFRS as approved by the
EU and associated interpretative statements as well as the additional Norwegian information requirements
pursuant to the Norwegian Accounting Act and which were to be applied as at 31 December 2024. The parent
company financial statements for the year have been prepared in accordance with the Norwegian Accounting Act
and Norwegian generally accepted accounting standards as at 31 December 2024. The directors’ report for the
group and the parent company accords with the requirements of the Accounting Act and good Norwegian
accounting practice (NRS 16 directors’ report) as at 31 December 2024.
To the best of our knowledge, we hereby confirm that:
• the consolidated and parent company financial statements for 2024 have been prepared in
accordance with the applicable accounting standards.
• the information in the financial statements provides a true and fair picture of the overall assets,
liabilities, financial position and financial results of the parent company and the group as at 31
December 2024.
• the directors’ report for the group and the parent company provides a true and fair view of the
development, financial results and position of the group and the parent company as well as of the
most important risk factors and uncertainties facing the group and the parent company.
Oslo, 28 March 2025
Norwegian Property ASA
Annual report 2024 Norwegian Property ASA
Independent auditor’s report 72
Independent auditor’s report
Annual report 2024 Norwegian Property ASA
Independent auditor’s report 73
Annual report 2024 Norwegian Property ASA
Independent auditor’s report 74
Annual report 2024 Norwegian Property ASA
Independent auditor’s report 75
Annual report 2024 Norwegian Property ASA
Independent auditor’s report 76
Annual report 2024 Norwegian Property ASA
Key figures 77
Key figures
Financial highlights
Annual report 2024 Norwegian Property ASA
Key figures 78
Key figures funding
Annual report 2024 Norwegian Property ASA
Key financial figures and APMs 79
Key financial figures and APMs
The table below shows a summary of key IFRS figures from the annual group accounts as well as alternative
performance measures (APMs). The financial information for Norwegian Property is prepared in accordance with
IFRS. The company also reports on supplementary financial alternative performance measures (APMs).
Profit and loss measures Measure Un
its
2024 2023
Revenues
IFRS
1
NOK mill. 1,386.4 1,109.6
Operating profit before administrative expenses
APM
2
NOK mill. 1,208.2 953.2
Operating profit before value adjustments
IFRS
1
NOK mill. 1,141.3 829.8
Profit before income tax and value adjustments
APM
2
NOK mill. 462.4 388.3
Profit before income tax, value adjustments and joint ventures
APM
2
NOK mill. 461.4 444.1
Operating profit before value adjustments and joint ventures
APM
2
NOK mill. 1,140.2 885.6
Change in fair value of investment property and rental guarantee
IFRS
1
NOK mill. 909.8 (3,150.3)
Profit before income tax
IFRS
1
NOK mill. 1,405.2 (2,765.8)
Profit after income tax
IFRS
1
NOK mill. 1,025.9 (2,348.1)
Balance sheet measures Measure Un
its
2024 2023
Market value of property portfolio
APM
2
NOK mill. 27,925.1 23,893.7
Market value of joint ventures
APM
2
NOK mill. 1,976.3 1,992.0
Gross interest-bearing debt
APM
2
NOK mill. 16,120.7 13,988.4
Net interest-bearing debt
APM
2
NOK mill. 15,488.4 13,035.5
Net LTV
APM
2
Per cent 51.8 50.4
Total equity
IFRS
1
NOK mill. 11,598.2 10,411.6
Equity ratio
APM
2
Per cent 38.8 39.9
Pre-tax return on equity
APM
2
Per cent 12.8 (24.1)
Cash flow measures Measure Units
2024 2023
Net cash flow from operating activities
IFRS
1
NOK mill. 490.8 590.3
Cash and cash equivalents (year end balance)
IFRS
1
NOK mill. 471.3 325.6
IFRS measures; per share Measure Units
2024 2023
Number of shares outstanding, end of the period Mill. shares 668.0 643.6
Average number of shares in the period Mill. shares 645.8 643.6
Profit before income tax (IFRS)
APM
3
NOK 2.18 (4.30)
Basic earnings per share (EPS)
APM
3
NOK 1.59 (3.65)
Net cash flow from operating activities (IFRS)
APM
3
NOK 0.76 0.92
Gross interest-bearing debt
APM
3
NOK 24.13 21.74
NAV, book value
APM
3
NOK 17.36 16.18
Annual report 2024 Norwegian Property ASA
Key financial figures and APMs 80
1) The IFRS figures appear in the annual group accounts.
2) APMs which do not derive directly from the IFRS group accounts and which are explained in the overview of definitions at the
end of this report.
3) When calculating the APMs and IFRS measures per share, the figures related to the profit and cash flow have been divided by
the average number of shares for the period as well as those related to the balance sheet by the number of shares at the end of
the period. The number of shares excludes treasury shares.
4) The calculation of the EPRA APMs is specified in the separate EPRA performance measures section of this report.
EPRA performance measures Measure Units
2024 2023
EPRA Earnings
EPRA earnings, per share
APM
4
NOK 0.60 0.54
EPRA NAV metrics
Net Reinstatement Value (NRV), per share
APM
4
NOK 21.34 19.99
Net Tangible Assets (NTA), per share
APM
4
NOK 21.01 19.68
Net Disposal Value (NDV), per share
APM
4
NOK 18.85 17.85
EPRA net initial yield
EPRA Net Initial Yield (NIY)
APM
4
Per cent 4.88 4.98
EPRA “Topped-up” NIY
APM
4
Per cent 4.97 5.06
EPRA vacancy rate
EPRA vacancy rate
APM
4
Per cent 5.51 3.85
EPRA cost ratio
EPRA cost ratio, including direct vacancy cost
APM
4
Per cent 17.87 20.30
EPRA cost ratio, excluding direct vacancy cost
APM
4
Per cent 15.42 18.01
EPRA LTV
EPRA LTV ratio
APM
4
Per cent 56.6 59.2
Annual report 2024 Norwegian Property ASA
EPRA Performance Measures 81
EPRA Performance Measures
EPRA (European Public Real Estate Association) is an association for the publicly traded European real estate
sector. EPRA was founded in 1999 as a not-for-profit association. It has several hundred members, covering the
whole spectrum of the listed real estate industry (companies, investors and their suppliers). EPRA’s mission is to
promote, develop and represent the European public real estate sector through the provision of better
information to investors and stakeholders, active involvement in the public and political debate, promotion of best
practices as well as the cohesion and strengthening of the industry. For further information, see www.epra.com.
EPRA has issued Best Practices Recommendations Guidelines on areas of reporting that are the most relevant to
investors and where more consistent reporting across Europe would bring the greatest benefits in the overall
transparency of the sector.
Norwegian Property report on the following EPRA Performance Measures.
EPRA Earnings
EPRA Earnings is a key measure of the underlying operating performance of the property portfolio and an
indication of the extent to which current dividend payments are supported by earnings. EPRA Earnings is
calculated based on the IFRS Earnings for the commercial property portfolio adjusted for changes in the market
value of investment properties, changes in the market value of financial derivative instruments and the related tax
effects.
1) Earnings from the Nordr joint venture (JV) are adjusted for, as it is related to the development of residential properties for sale,
and they are not relevant for the measurement of the performance of the commercial property portfolio.
EPRA NAV Metrics
The EPRA NAV set of metrics make adjustments to the NAV per the IFRS financial statements to provide
stakeholders with the most relevant information on the fair value of the assets and liabilities of a real estate
investment company under different scenarios.
EPRA earnings 31.12.2024 31.12.2023
IFRS earnings NOK mill. 1,025.8 (2,348.1)
Adjustments to calculate EPRA Earnings:
Change in market value of inv. property and rental guarantee NOK mill. (909.8) 3,150.3
Change in market value of financial derivative instruments NOK mill. (33.0) 3.9
Share of profit from JVs
1
NOK mill. 13.5 55.1
Income tax NOK mill. 293.3 (513.4)
EPRA earnings NOK mill. 389.9 347.7
Average outstanding shares Mill. shares 645.8 643.6
EPRA Earnings per share NOK 0.60 0.54
Annual report 2024 Norwegian Property ASA
EPRA Performance Measures 82
EPRA Net Reinstatement Value (NRV)
The EPRA NRV metric assumes that entities never sell assets and it aims to represent the value required to rebuild
the entity.
Investments in JVs are revalued based on an estimated fair value of such investments. The fair value on financial
derivatives and deferred taxes on investment properties are excluded. Property transfer taxes do not normally
apply to Norwegian transactions and, therefore, such taxes are not included in the NRV calculation. The fair value
of financial instruments, which are used for hedging purposes where the company has the intention of keeping
the hedge position until the end of the contractual duration, is excluded. Under normal circumstances, the
financial derivatives that companies use to provide an economic hedge are held until maturity and, therefore, any
fair value movements will not crystallise.
EPRA Net Tangible Assets (NTA)
The EPRA NTA metric assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable
deferred tax.
Investments in JVs are revalued based on an estimated fair value of such investments. Norwegian Property has
adopted the second option in the EPRA BPR guidelines to adjust for deferred tax, estimating the real tax assets and
liabilities based on how the company has previously carried out transactions and otherwise utilised the existing tax
positions. The fair value of financial instruments that are used for hedging purposes are excluded.
2) Estimated fair value of deferred taxes where the estimated fair value of the tax asset related to carry-forward losses are greater
than the estimated fair value of relevant tax liabilities. The calculations assume that carry-forward losses can be utilised over the
next 5 years with a discount rate of 5 per cent. The real tax liability related to the gains/losses accounts is estimated on the basis
of the annual depreciation rates in the Norwegian tax legislation and a discount rate of 5 per cent. The estimated fair value of the
deferred tax liability related to the temporary differences of properties as at 31 December 2024 has been calculated to 3.6 per
cent based on a discount rate of 5 per cent and the assumption that properties outside Aker Brygge are realised over the next 50
year period in transactions structured as the sale of companies in which the tax discount is 5.3 per cent.
EPRA Net Reinstatement Value (NRV) 31.12.2024 31.12.2023
IFRS equity NOK mill. 11,598.2 10,411.6
Revaluation of investments made in JVs NOK mill. 1,020.5 1,061.9
Net Asset Value (NAV) at fair value NOK mill. 12,618.7 11,473.5
Deferred tax on properties and financial instruments NOK mill. 1,811.4 1,531.6
Net fair value on financial derivatives NOK mill. (174.4) (141.4)
Net Reinstatement Value (NRV) NOK mill. 14,255.6 12,863.6
Outstanding shares at period end Mill. shares 668.0 643.6
NRV per share (NOK) NOK 21.34 19.99
EPRA Net Tangible Ass ets (NTA) 31.12.2024 31.12.2023
IFRS equity NOK mill. 11,598.2 10,411.6
Revaluation of investments made in JVs NOK mill. 1,020.5 1,061.9
Net Asset Value (NAV) at fair value NOK mill. 12,618.7 11,473.5
Reversal deferred tax liability as per balance sheet NOK mill. 1,740.3 1,360.5
Adjustment for estimated fair value of deferred tax
2
NOK mill. (151.6) (25.2)
Net fair value on financial derivatives NOK mill. (174.4) (141.4)
Net Ta ngible As sets (NTA) NOK mill. 14,032.9 12,667.4
Outstanding shares at period end Mill. shares 668.0 643.6
NTA per sha re (NOK) NOK 21.01 19.68
Annual report 2024 Norwegian Property ASA
EPRA Performance Measures 83
EPRA Net Disposal Value (NDV)
The EPRA NDV metric represents the shareholders’ value under a disposal scenario, where deferred tax, financial
instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax.
Investments in JVs are revalued based on an estimated fair value of such investments. Financial liabilities are
valued at the estimated fair value, net of deferred tax.
3) The fair value adjustment related to financial liabilities is related to a valuation where the estimated difference between the
current margins and the market conditions are taken into account as well as changes in the fair value of listed bonds. Tax is
taken into account with 22 per cent.
EPRA Net Initial Yield
EPRA Net Initial Yield (NIY) and EPRA “Topped-up” NIY
The EPRA Net Initial Yield metrics presents annualised rental income based on the cash rents passing as at the
balance sheet date, less non-recoverable property operating expenses, divided by the market value of the
property and increased with estimated purchasers’ costs. The EPRA NIY is a comparable measure for portfolio
valuations.
The EPRA “Topped-up” NIY metric incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-
free periods or other unexpired lease incentives such as discounted rent periods and step rents.
4) Applies to the property at Gjerdrums vei 17.
EPRA Net Disposal Value (NDV) 31.12.2024 31.12.2023
IFRS equity NOK mill. 11,598.2 10,411.6
Revaluation of investments made in JVs NOK mill. 1,020.5 1,061.9
Net Asset Value (NAV) at fair value NOK mill. 12,618.7 11,473.5
Fair value adjustment of financial liabilities, net of tax
3
NOK mill. (23.7) 11.5
Net Disposal Value (NDV) NOK mill. 12,595.0 11,485.0
Outstanding shares at period end Mill. shares 668.0 643.6
NDV per share (NOK) NOK 18.85 17.85
EPRA Net Initial Yield 31.12.2024 31.12.2023
Investment property, wholly owned NOK mill. 27,925.1 23,893.7
Investment property, share of JVs NOK mill. 1.0 12.3
Total property portfolio NOK mill. 27,926.1 23,906.0
Less projects and land and developments
4
NOK mill. (12.1) (3.3)
Completed management portfolio NOK mill. 27,914.0 23,902.8
Allowance for estimated purchasers’ cost NOK mill. 108.5 107.0
Gross up completed management portfolio valuation NOK mill. 28,022.5 24,009.8
12 months rolling rent, including share of JVs NOK mill. 1,487.7 1,295.5
Estimated ownership cost NOK mill. (120.4) (99.7)
Annualised net rents NOK mill. 1,367.3 1,195.8
Rent free periods or other lease incentives NOK mill. 24.3 19.8
Topped up net annualised net rents NOK mill. 1,391.6 1,215.6
EPRA NIY (net initial yield) Per cent 4.88 4.98
EPRA "topped-up" NIY (net initial yield) Per cent 4.97 5.06
Annual report 2024 Norwegian Property ASA
EPRA Performance Measures 84
EPRA Vacancy Rate
The EPRA Vacancy Rate is calculated based on the Estimated Market Rental Value (ERV) of vacant space divided
by the ERV of the whole portfolio, and it is a percentage measure of investment property space that is vacant
based on ERV.
5) Assumptions based on the external valuations for the periods.
EPRA Cost Ratio
The EPRA Cost Ratio is calculated based on the administrative and operating costs (including and excluding costs
of direct vacancy) divided by gross rental income. It is a key measure to enable the meaningful measurement of
the changes in a company’s operating costs.
EPRA Vacancy Rate 31.12.2024 31.12.2023
Market rent vacant areas
5
NOK mill. 95.3 58.1
Total market rent
5
NOK mill. 1,730.1 1,507.9
EPRA vacancy rate Per cent 5.51 3.85
EPRA Cost Ratios 31.12.2024 31.12.2023
Operating costs NOK mill. (246.2) (224.0)
Share of joint venture expenses NOK mill. (1.6) (1.4)
EPRA cost (including direct vacancy cost) NOK mill. (247.8) (225.4)
Direct vacancy cost NOK mill. 33.9 25.5
EPRA cost (excluding direct vacancy cost) NOK mill. (213.8) (199.9)
Gross rental income less ground rent NOK mill. 1,386.4 1,109.6
Share of joint ventures NOK mill. 0.5 0.5
Total gross rental income less ground rent NOK mill. 1,386.9 1,110.1
EPRA cost ratio (including direct vacancy cost) Per cent 17.87 20.30
EPRA cost ratio (excluding direct vacancy cost) Per cent 15.42 18.01
Annual report 2024 Norwegian Property ASA
EPRA Performance Measures 85
EPRA LTV
The EPRA LTV’s aim is to assess the gearing of the shareholder equity within a real estate company. The EPRA LTV
is calculated based on the IFRS reporting with certain defined adjustments. The adjustments include, among
other things, that the EPRA LTV is calculated based on proportional consolidation. This implies that the EPRA LTV
include the group’s share in the net debt and net assets of joint venture and material associates. Assets are
included at fair value and net debt at nominal value.
6) Related to the investments in Nordr and Forusbeen 35.
7) Properties held for sale are related to the properties classified as inventory. The property inventory includes land, residential
projects under development and completed units for sale.
Group as
reported
Share of
JV
6
Combined
Group as
reported
Share of
JV
6
Combined
Bond loans NOK mill. 11,461.3 - 11,461.3 10,177.5 - 10,177.5
Bank/Other loans NOK mill. 4,659.4 2,385.5 7,044.9 3,810.9 3,019.4 6,830.3
Net payables NOK mill. 96.0 657.7 753.7 - 320.1 320.1
Cash and bank deposits NOK mill. (471.3) (159.4) (630.8) (325.6) (102.4) (428.0)
Net debt NOK mill. 15,745.4 2,883.8 18,629.1 13,662.8 3,237.0 16,899.8
Investment properties NOK mill. 27,925.1 1.0 27,926.1 23,893.7 12.3 23,906.0
Properties held for sale
7
NOK mill. - 4,977.5 4,977.5 - 5,402.3 5,402.3
Net receivables NOK mill. - - - 436.2 - 436.2
Total property value NOK mill. 27,925.1 4,978.5 32,903.6 24,329.9 5,414.7 29,744.6
EPRA LTV Per cent 56.4 56.6 56.2 56.8
31.12.2023
EPRA LTV Metric
31.12.2024
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