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Table of contents Financial update Key figures ........................................................................................................................................................................................... 3 Portfolio valuation ............................................................................................................................................................................... 4 Financing .............................................................................................................................................................................................. 6 Appendix Highlights ............................................................................................................................................................................................. 7 Tenants lease expiry ........................................................................................................................................................................... 8 Exposure overview............................................................................................................................................................................... 9 Exposure to locations ........................................................................................................................................................................ 10

Emil Eriksrød Chairman


Financial update Overview and key figures Q2-2015 Key figures of 30.06.2015 30.06.2015 Properties

no

13

Portfolio size (ex. New space in development projects)

43 850

Average size per property

3 373

Gross rent per year (run rate)

NOK mill.

57,1

Operational expences per year 1)

NOK mill.

3,4

Net rent per year (run rate)

NOK mill.

53,6

NOK

1 301

Gross market value (Inc. Development project "land")

NOK mill.

798,3

Average value per property

NOK mill.

61,4

Average gross rate per m2 per year

Average value per m2 (including "land")

NOK

18 204

Gross yield, actual

%

7,1

Net yield, actual

%

7,0

Gross yield at market rent fullt let ²)

%

7,9

Net yield at market rent fully let ²)

%

7,4

Years

5,6

CPI adjustments annual

%

87,2

Vacancy (space including strategic vacancy)

%

7,1

Duration, WALE ³)

1) Assuming 6% operating expenses on property levels 2) Assuming market rent, adjusted for county and location 3) WALE, stands for "weighted average lease expiry" by rent


Financial update Portfolio valuation by area Q2-2015 * External valuation conducted by Newsec

Telemark

Area

Total space (m2)

Space 3) not generating revenue (%)

Weighted Average Lease Expiry (years)

Valuation NOK mill.

Gross rent pr year

NOK/m2

NOK mill.

NOK/m2

Net yield 1)

Gross marked rent fully let

Skien Sentrum

2 209

18,6 %

2,5

35,0

15 844

2,45

1 109

6,6 %

2,5

Kjørbekk

6 047

0,0 %

3,3

73,5

12 155

5,51

911

7,0 %

6,7

Porsgrunn Sentrum

6 023

9,1 %

5,3

75,8

12 577

6,07

1 008

7,5 %

6,6

10 577

7,1 %

4,4

202,5

19 145

14,66

1 386

6,8 %

15,9

2 548

0,0 %

5,0

29,5

11 578

2,32

911

7,4 %

2,5

16 446

8,6 %

6,7

353,0

21 464

26,06

1 584

6,9 %

26,5

43 850

7,1 %

5,6

769,3

17 543

57,07

1 301

7,0 %

60,7

43 850

7,1 %

5,6

769,3

17 543

57,07

1 301

7,0 %

60,7

Porsgrunn Næringspark Skjelsvik E18 Vestfold Tønsberg (Korten) Running operations Redevelopment projects Total office portfolio

1) Based on gross rent as of 31 March 2015 and estimated operating expences of 6% 2) Estimated fully let gross marked rent, based on local knowledge 3) Parking and storage is excluded from the calculation of space vacancy


Financial update Development projects Q2-2015 Gross space estimated (sqm)

Area

Telemark Telemark House

1

Kammerherreløkka 2 Vestfold Nordre Fokserød 14 Development projects

Valuation (NOK mill.) Before development

Fully developed

Gross rent pr year (NOK mill.)

Letting ratio (%)

Net yield on market rent

10 700

44,9 %

17,0

275,0

23,7

8,1 %

5 200

19,2 %

7,0

150,0

10,5

6,6 %

5 500

69,1 %

10,0

125,0

9,5

7,1 %

4 532

92,7 %

12,0

105,0

7,5

6,7 %

4 532

92,7 %

12,0

105,0

7,5

6,7 %

15 232

59,1 %

29,0

380,0

31,2

7,7 %

1) Telemark Powerhouse is a planned Powerhouse in cooperation with Snøhetta Design 2) Kammerherreløkka is a joint venture with Rom Eiendom. All figures are based on 50 % ownership


Financial update Financing Q2-2015 Bank financing Amount DNB Bank ASA

1

3m Nibor

Maturity

569,9

2035

1,32 %

Market int.

Finance composition

Total

2,02 %

3%

3,93 %

3M Nibor + margin (DNB)

Swap 1 80 mNOK of DNB bank financing are bounded to a 10 year SWAP beginning 7.July 2014 with total interest, 4,63 %. Swap 2 18,7 mNOK of DNB bank ASA financing are bounded to a 10 year SWAP beginning 10.June 2014 with total interest, 5,95 % Swap 3 8 mNOK of DNB Bank ASA financing are bounded to a 10 years SWAP beginning 30. June 2014 with total interest, 5,34 % Swap 4 99 mNOK of DNB Bank ASA financing are bounded to a 10 year SWAP beginning 01. March 2013 with total interest, 5,27 % Swap 5 50 mNOK of DNB Bank ASA financing are bounded to a 10year SWAP beginning 01. June 2015 with total interest 4,05 %

44 %

Fixed rate / Swap (DNB) 53 %

Vendor financing

Loan to value 85 % 80 %

Vendor credit Amount

1

Maturity

Totalt interest

Kjelleveien 21 AS

13,0

2015

5,00 %

Veidekke Eiendom AS

1,67

2018

5,00 %

Dynam AS

1,67

2018

5,00 %

Dione AS

1,67

2018

5,00 %

75 %

Target for LTV ratio

71 % 70 % 65 % 2010

Amount

Total financing (Bank & vendor)

1

587,92

Market int. Margin ² 2,00 %

Total interest ²

1,97 %

1) Amount presented in mNOK 2) Total margin / interest is presented weighted by amount, SWAP contracts taken into account 3) 44 % of bank financing is secured by 5 SWAP contracts, risk diversification

3,96 %

2011

2012

2013

Net LTV incl. Vendor credit Net LTV

2014

2015


Financial update Yield spread 9,00

9,00

8,00

8,00

7,00

7,00

6,00

6,00

5,00

5,00

4,00

4,00 NOK GOV 10 Y 1)

3,00

3,00 3 MND Nibor 2) Prime yield 10 Y

2,00

2,00

1)

Source: Norges Bank

2)

Source: Oslo Børs

2015 Q2

2015 Q1

2014 Q4

2014 Q3

2014 Q2

2014 Q1

2013 Q4

2013 Q3

2013 Q2

2013 Q1

2012 Q4

2012 Q3

R8 Property net yield 1,00

1,00


Appendix Overview portfolio lease expiry Total revenue expiring kr 25 000 000

14

13

kr 20 000 000

kr 15 000 000 6 kr 10 000 000

Number of leases expiring

5

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

kr kr kr kr kr kr8 kr kr kr kr

848 825 4 630 000 6 473 103 3 022 825 3 395 000 9 793 417 1 7957000 19 562 242 925 000 6 723 126

7

kr 5 000 000

5 6 13 8 7 7 2 7 1 6 62

12 10

8

7 6

6 4 2 2

1 kr 0

0 2015

2016

2017

2018

2019

2020

2021

2022

2023

2024


Appendix Exposure to locations in Q2-2015

Portfolio gross rent by area

5%

Skien sentrum

4%

Kjørbekk

14 % 10 %

37 % Porsgrunn Sentrum

11 %

44 %

14 %

Porsgrunn NĂŚringspark 27 %

Skjelsvik E18 Vestfold

Portfolio total space by area

4% 6%

24 %


Appendix Porsgrunn Sentrum Storgata 171 - 175 Tenant: Børve & Borchenius AS Total space: 850 m² 5,8 year Duration:

Stangsgate 1 Tenant: Vacated Total space: 600 m² 0,5 year Duration:

Storgata 106 Tenant: Multi-tenant Total space: 1 640 m² 6,1 year Duration:

Vipeveien 51 Tenant: Multi-tenant Total space: 2 901 m² 4,1 year Duration:

Land for development Total space:

7 000 m²


Appendix Skien - Kjørbekk Bedriftsveien 52 - 58 Tenant: Multi-tenant Total space: 2 878 m² 2,9 year Duration:

Grønlikroken 5 Tenant: Multi-tenant Total space: 3 169 m² 3,8 year Duration:


Appendix Skien sentrum Hessel berggaten 4 Tenant: DNB, multi-tenant Total space: 2 209 m² 2,5 year Duration:


Appendix Porsgrunn Skjelsvik E18 Versvikveien 6B Tenant: Furmanite AS Total space: 2 548 m² 8,0 year Duration:


Appendix Porsgrunn Næringspark Dokkveien 8 Tenant: Multi-tenant Total space: 5 853 m² 5,0 year Duration:

Dokkveien 10 Tenant: Multi-tenant Total space: 5 035 m² 3,9 year Duration:

Land for development Total space: 2 500 m² (Telemark Powerhouse)


Appendix Tønsberg (Korten) Vinkelbygget Tenant: Multi-tenant Total space: 10 365 m² 6,4 year Duration:

Sentralbygget Tenant: Multi-tenant Total space: 3 781 m² 9,1 year Duration:

Parkbygget Tenant: Multi-tenant Total space: 2 300 m² 3,5 year Duration:

Land for development Total space: 7 000 m² (Nordre Fokserød 14

Portfolio report q2 2015 r8 property