SOLON EIENDOM ASA
STOCK EXCHANGE ANNOUNCEMENT
Solon Eiendom ASA - Q4 2016: All-time high sales
(Oslo, Norway, 28 February 2017) Solon Eiendom ASA (OSE:SOLON) is proud to present its first quarterly report (Q4 2016) as a listed company on the Oslo Stock Exchange after the reverse acquisition of Bionor Pharma ASA in December 2016.
"2016 was the best year in the company's history with all time high activity in terms of sales. Housing prices in the Oslo area continue to increase which is having a positive impact on our results," says Andreas Martinussen CEO at Solon Eiendom ASA.
"This reflects our strategy, where a significant portion of our costs are fixed up front and a majority of the homes are sold before construction starts. When the sales prices of homes increase, the profitability of our projects improves."
Solon Eiendom sold 35 homes for NOK 323 million in the fourth quarter of 2016. Increase in the housing market led to an improved profit margin.
At year-end 2016, Solon Eiendom had 259 units under construction of which 82% were sold.
"We have a positive outlook for our market. In the Oslo area, where we have the majority of our projects, demand is high and supply low." says Martinussen.
HIGHLIGHTS Q4 2016 and 2016
- Revenue increased 36% in Q4 2016 compared to Q4 2015
- All-time high sales in 2016 of NOK 975 million of which NOK 323 million in Q4
- 146 units sold in 2016 including 35 units in Q4
- The number of units delivered in Q4 and for 2016 was 8 and 113 respectively
- The total number of units in production end Q4 amounted to 259
- Real estate segment 2016 EBITDA increased 10,8% from NOK 117 million to NOK 130 million
- Land bank acquisitions in 2016 of NOK 275 million
- A share issue of gross NOK 150 million
- The board will propose a dividend of NOK 50 000 000 for 2016 which is dependent on the approval at an extraordinary shareholders meeting of a share capital reduction.
EVENTS AFTER THE BALANCE SHEET DATE
- A share issue of gross NOK 100 million in January 2017.
- Scott Danielsen appointed as CFO
For further information, please contact:
Andreas Martinussen, Chief Executive Officer, Solon Eiendom ASA
Telephone: +47 400 00 405, email: am@soloneiendom.no
Scott Danielsen, Chief Financial Officer, Solon Eiendom ASA
Telephone: +47 952 55 620, email: sd@soloneiendom.no
About Solon Eiendom ASA
Solon Eiendom ASA is a residential real estate developer controlling the entire value chain from acquisition of land, construction through to marketing and sale of homes. The Company focuses on developing residential real estate projects in the greater Oslo region. The full property portfolio potential of the Company, including projects under development and the land bank combined, amounts to approximately 1,900 residential units. The company is headquartered in Oslo. Please visit our website: www.soloneiendom.no
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
