NO EN

R8 Property ASA third quarter report 2021: Growing preference for flexible working conditions continues

Photo: Ida Bjørvik.

Photo: Ida Bjørvik.

Porsgrunn, Norway, 12 November 2021: Solid operational performance was reflected in net income from property management of NOK 15.7 million, corresponding to an improvement of approximately NOK 1 million from Q3 2020, adjusted for transactions in the period. The hotel industry is picking up following Covid-19 and reported strong occupancy. 

During the quarter, the lease contract with Schlumberger Information Solutions AS was confirmed for 2,393 sqm in Fornebuveien 1-3, Lysaker, and an existing lease contract with Comfort Hotel Porsgrunn was extended by five years. Moreover, the agreement to enter a 20-year lease contract with Comfort Hotel Skien Brygge AS in the upcoming development project Skien Brygge is expected to be finalized and signed before year-end.

Growing preference for flexible working conditions continued to boost demand for office sharing concept Evolve (75 per cent ownership) and the technology solutions provider Orbit Technology (35.5 per cent ownership). 

The valuation of the investment portfolio resulted in net positive value changes of NOK 12.9 million in the quarter. Equity per share at 30 September 2021 was NOK 43.2 based on the EPRA NRV standard, compared with NOK 44.3 at the end of the third quarter of 2020.

CEO and founder of R8 Property Emil Eriksrød comments on the performance in the third quarter 2021:

“During the third quarter we saw activity picking up in the hotel and business industry, and the attractiveness of our property portfolio was confirmed through several new lease contracts which were signed or extended during the quarter.

The shift in employees’ preferences for a more flexible and efficient working day with less commute continues. R8 Property identified this trend early on and established our partly owned subsidiary Orbit Technology, which offers technology solutions that enable office sharing at scale, in addition to enhancing the coworking company Evolve. 

The US market represents an exciting untapped potential for Orbit Technology, beyond our Norwegian base. This autumn, Orbit Technology established a US subsidiary called Getorbit.com LCC. to get a presence in the US market. Although this is clearly at an early stage, it is an opportunity we are excited to look more into. 

As part of our growth strategy, we are also actively looking into new projects, both new constructions (greenfield) and development of existing buildings (brownfield). 

The construction industry is responsible for about 40 per cent of global carbon emissions, and in R8 Property we want to take our share of responsibility for helping to reduce climate emissions. In 2020 we completed Powerhouse Telemark, one of the world's most spectacular and energy-efficient buildings, and this year we have launched plans to develop Powerhouse Tønsberg as part of the Slottsfjell Park project. 

Our ambition is that Slottsfjell Park, located at the entrance to Tønsberg, will become the world's very first Paris Proof quarter. The buildings will have climate neutral use of materials, as well as innovative technology from Orbit Technology, which optimize the use of office and meeting spaces. The park will also consist of a hotel and restaurants and will be combined with rehabilitated buildings and a new Powerhouse. The project will be divided into two or three phases, and the expected start is no earlier than 2023,” says Emil Eriksrød, CEO of R8 Property,” says EmilEriksrød.

Please find enclosed the report and presentation of the third quarter of 2021.

For further information, please contact:

About R8 Property
R8 Property ASA is a full-service real estate company focused on the development, ownership and management of centrally located and sustainable commercial properties. Visit the company's website at www.r8property.no.

The information included in this announcement is defined as inside information pursuant to MAR article 7 and is publicly disclosed in accordance with MAR article 17 and section 5 -12 of the Norwegian Securities Trading Act.