Norwegian Property (Buy, TP: NOK15.00) - Investing in developments
The Q2 rental operations were better than we expected, but EBIT missed on lower than expected profits in the Hasle development. When the new management team took over in 2018, the development potential in NPRO was limited, in our view. Until Q2, we saw mainly bolt-on investments, refurbishments, and one financial residential deal. However, with its 45% share in Veidekke Eiendom, NPRO is taking a more development-oriented focus, and we expect more real estate development to come. We reiterate our BUY with a NOK15 (14) target price.Norwegian Property operates in management, acquisitions, sales and development of commercial real estate, including participation in other companies as well as businesses which are related as such. Co.'s properties primarily comprise office premises with associated warehousing and car parks, and retail and catering space. Co.'s activities are organized in four business areas: marketing and letting; property management; property development; as well as transactions and financing. As of Dec 31 2013, Co. owned 41 office and commercial properties in Norway, located in Oslo, Baerum, at Gardermoen and in Slavenger.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.