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Table of contents Financial update Key figures ........................................................................................................................................................................................... 3 Portfolio valuation ............................................................................................................................................................................... 4 Financing .............................................................................................................................................................................................. 6 Yield spread ......................................................................................................................................................................................... 7 Appendix Highlights ............................................................................................................................................................................................. 8 Tenants lease expiry ........................................................................................................................................................................... 9 Exposure overview............................................................................................................................................................................. 10 Exposure to locations ........................................................................................................................................................................ 11

Emil Eriksrød Chairman


Financial update Overview and key figures Q3-2015 Key figures of 30.09.2015 30.09.2015 Properties

no

13

Portfolio size (ex. New space in development projects)

43 879

Average size per property

3 375

Gross rent per year (run rate)

NOK mill.

57,8

Operational expences per year 1)

NOK mill.

3,5

Net rent per year (run rate)

NOK mill.

54,3

NOK

1 317

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

NOK mill.

810,8

Average value per property

NOK mill.

62,4

Average gross rate per m2 per year

Average value per m2 (including "land")

NOK

18 477

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

5,3

CPI adjustments annual

%

89,8

Vacancy (space including strategic vacancy)

%

5,5

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 Q3-2015 * 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 %

2,3

35,0

15 844

2,45

1 109

6,6 %

2,5

Kjørbekk

6 047

0,0 %

3,1

73,5

12 155

5,50

910

7,0 %

6,7

Porsgrunn Sentrum

5 972

2,4 %

4,9

79,3

13 270

6,55

1 097

7,8 %

6,6

10 657

4,1 %

4,1

202,5

19 002

14,91

1 399

6,9 %

16,0

2 548

0,0 %

4,8

29,5

11 578

2,32

911

7,4 %

2,5

16 446

8,6 %

6,5

353,0

21 464

26,06

1 584

6,9 %

26,5

43 879

5,5 %

5,3

772,8

17 611

57,79

1 317

7,0 %

60,8

43 879

5,5 %

5,3

772,8

17 611

57,79

1 317

7,0 %

60,8

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

1) Based on gross rent as of 30 Sept 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 Q3-2015 Gross space estimated (sqm)

Area

Telemark Powerhouse Telemark Kammerherreløkka 2 Vestfold Nordre Fokserød 14 Development projects

3

1

Valuation (NOK mill.) Before development

Fully developed

Gross rent pr year (NOK mill.)

Letting ratio (%)

Net yield on market rent

11 500

54,8 %

20,0

310,0

22,0

6,7 %

6 000

41,7 %

8,0

185,0

12,5

6,4 %

5 500

69,1 %

12,0

125,0

9,5

7,1 %

4 561

57,3 %

18,0

110,0

7,7

6,6 %

4 561

57,3 %

18,0

110,0

7,7

6,6 %

16 061

55,5 %

38,0

420,0

29,7

6,6 %

1) Powerhouse Telemark is a planned Powerhouse in cooperation with Snøhetta Architecture 2) Kammerherreløkka is a joint venture with Rom Eiendom. All figures are based on 50 % ownership 3) Start of construction will be in Q4-2015. Property tenent ratio is 80 %. Main tenant KPMG.


Financial update Financing Q3-2015 Bank financing Amount DNB Bank ASA

1

3m Nibor

Maturity

579,1

2035

1,05 %

Market int.

Finance composition

Total

1,91 %

1%

3,86 %

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 18,3 mNOK of DNB bank ASA financing are bounded to a 10 year SWAP beginning 10 May 2014 with total interest, 6,00 % Swap 3 7,9 mNOK of DNB Bank ASA financing are bounded to a 10 years SWAP beginning 30. June 2014 with total interest, 5,34 % Swap 4 96,4 mNOK of DNB Bank ASA financing are bounded to a 10 year SWAP beginning 01. March 2013 with total interest, 5,22 % Swap 5 49,4 mNOK of DNB Bank ASA financing are bounded to a 10 year SWAP beginning 01. June 2015 with total interest 4,05 % Swap 6 50,0 mNOK of DNB Bank ASA financing are bounded to a 5 year SWAP beginning 13. August 2015 with total interest 3,49 %

47 % 52 %

85 %

80 %

75 % Amount

Maturity

Totalt interest

Veidekke Eiendom AS

1,67

2018

5,00 %

Dynam AS

1,67

2018

5,00 %

Dione AS

1,67

2018

5,00 %

Vendor financing

Loan to value

Vendor credit 1

Target for LTV ratio

71 % 70 %

65 % 2010

Amount

Total financing (Bank & vendor)

1

584,07

Market int. Margin ² 1,75 %

Total interest ²

1,76 %

1) Amount presented in mNOK 2) Total margin / interest is presented weighted by amount, SWAP contracts taken into account 3) 52 % of bank financing is secured by 6 SWAP contracts, risk diversification

Fixed rate / Swap (DNB)

3,87 %

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 NOV GOV 10Y

3,00

3,00 3 MND Nibor Prime yield 10 Y

2,00

2,00

1)

Source: Norges Bank

2)

Source: Oslo Børs

2015 Q3

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 Highlights in Q3-2015 •

Increasing revenue year on year - Revenues NOK 57,8 million (Q2-2015: NOK 57,1 million)

Positive value changes - Gross increase in property values 1,5 % in Q3-2015. - Total portfolio value is NOK 810,8 million.

7 new contracts signed - Total annual revenue of NOK 3,2 million signed in Q3-2015. - Total area signed 2659 sqm in Q3-2015.

- Dominos Pizza - Amesto Solution - Stena Recycling - R8 Consulting - Ibsensykehuset - Sterner Biotek - Arkitekt Jahren

Storgata 106 Porsgrunn Næringspark Porsgrunn Næringspark Stangsgate 1 Vipeveien 51 Vipeveien 51 Grønlikroken 5

Letting ratio increasing in Q3-2015 - Porsgrunn Sentrum increasing to 97,6 % - Porsgrunn Næringspark increasning to 95,9 % - Total letting ratio portfolio 94,5 %


Appendix Overview portfolio lease expiry

Revenue expiring kr 25 000 000 12 kr 20 000 000

kr 15 000 000 6 kr 10 000 000 4

2015 kr 2016 kr 2017 kr 2018 10 kr 2019 kr 2020 kr 2021 kr 2022 kr 2023 kr 2024 kr 2025 kr kr

Number of contracts expiring 163 278 4 630 000 6 473 103 3 679 725 3 395 000 10 396 242 8 1 795 000 7 562 242 19 925 000 6 156 562 485 000 57 661 152

kr 5 000 000

4 6 12 10 7 8 2 7 1 5 1 63

14 12 10 8

7

6

5

4

2 1

1

kr 0

2 0

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025


Appendix Exposure to locations in Q3-2015

Portfolio gross rent by area

5%

Skien sentrum

4%

Kjørbekk

14 % 10 %

37 % Porsgrunn Sentrum

11 % 45 % 14 %

Porsgrunn NĂŚringspark 26 %

Skjelsvik E18 4% Vestfold

Portfolio total space by area

6%

24 %


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

Stangsgate 1 Tenant: Vacated Total space: 600 m² 3,1 year Duration:

Storgata 106 Tenant: Multi-tenant Total space: 1 640 m² 6,2 year Duration:

Vipeveien 51 Tenant: Multi-tenant Total space: 2 901 m² 3,8 year Duration:

Land for development Total space:

7 000 m²


Appendix Skien - Kjørbekk Bedriftsveien 52 - 58 Tenant: Multi-tenant Total space: 2 878 m² 2,6 year Duration:

Grønlikroken 5 Tenant: Multi-tenant Total space: 3 169 m² 3,6 year Duration:


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


Appendix Porsgrunn Skjelsvik E18 Versvikveien 6B Tenant: Furmanite AS Total space: 2 548 m² 7,7 year Duration:


Appendix Porsgrunn Næringspark Dokkveien 8 Tenant: Multi-tenant Total space: 5 853 m² 4,7 year Duration:

Dokkveien 10 Tenant: Multi-tenant Total space: 5 035 m² 3,6 year Duration:

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


Appendix Tønsberg (Korten) Vinkelbygget Tenant: Multi-tenant Total space: 10 365 m² 6,1 year Duration:

Sentralbygget Tenant: Multi-tenant Total space: 3 781 m² 8,8 year Duration:

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

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

Portfolio report q3 2015 r8 property