The highlights are:
- The group´s rental income in 2004 came to NOK 705.6 million
- Other operating income amounted to NOK 102.7 million
- Operating profit was NOK 513.4 million
The group´s rental income in 2004 came to NOK 705.6 million, compared with NOK 678.6 million in 2003. Investments and a rise in rental income from the group´s retail properties contributed to the increase, whilst slightly lower rental income from the group´s officeproperties dampened it.
Other operating income amounted to NOK 102.7 million (NOK 104.5 million), and relates to the part of the operating expenses of the properties which is charged to the lessees (service charges).
Operating profit was NOK 513.4 million (NOK 456.6 million) after deducting ordinary depreciation of NOK 48.4 million (NOK 45.9 million) andother operating expenses of NOK 246.5 million (NOK 280.6 million). The decrease in operating expenses was due to a smaller volume of maintenance and rehabilitation projects than in 2003. Maintenance costs totalling NOK 54.8 million (NOK 82.5 million) were charged to the accounts.
Net financial items amounted to NOK 174.4 million (NOK 202.8 million). The decrease is due primarily to lower borrowing rates than in 2003, but it was moderated by costs of NOK 15.7 million in connection with the early refinancing of a fixed-interest bond issue. This entry also includes equity in net income of associated companies totalling NOK 29.9 million (NOK 21.8 million).
Pre-tax profit was NOK 339.0 million (NOK 253.8 million), and profit for the year after provision for taxes was NOK 252.4 million (NOK 188.4 million).
The group´s rental income in the fourth quarter came to NOK 179.1 million (fourth quarter 2003: NOK 170.8 million). Other operating income amounted to NOK 19.2 million (NOK 32.1 million), and relates mainly to the services charges charged to the group´s lessees. Service charges are included in the accounts with the same amount under both other operating income and other operating expenses, and therefore do not
influence the group´s results. The size of the amount for the fourth quarter was affected by the fact that the annual allocation was smaller than for earlier interim accounts.
Operating profit in the fourth quarter came to NOK 132.5 million (NOK 118.8 million) after deducting ordinary depreciation of NOK 12.1 million (NOK 12.0 million) and other operating expenses of NOK 53.7 million (NOK 72.2 million). Maintenance costs in the fourth quarter amounted to NOK 17.5 million (NOK 9.4 million).
Net financial items came to NOK 50.5 million (NOK 45.9 million), and were affected by costs of NOK 15.7 million in connection with the early refinancing of bond issues. The entry also includes equity in net income of associated companies totalling NOK 9.1 million (NOK 7.0 million).
Pre-tax profit was NOK 82.0 million (NOK 72.8 million) and after-tax profit for the fourth quarter was NOK 61.9 million (NOK 53.2 million).
For the accounting year 2004, the Board proposes a dividend payment of NOK 10.00 per share, amounting to a total of NOK 107.1 million. The payout ratio is higher than the group has operated with to date, and must be seen in the light of the fact that dividend tax for private shareholders will be introduced from 2006.
New accounting standard
From and including 2005, Olav Thon Eiendomsselskap ASA will report its consolidated accounts in accordance with the International Financial Reporting Standards (IFRS). These are accounting standards which are obligatory for all listed companies in the EU and the EEA from 2005.
Investments and projects
In 2004 investments totalled NOK 167.9 million (NOK 130.8 million).
In the first half-year Olav Thon Eiendomsselskap acquired ownership interests corresponding to about 25% of the Sartor Senter shopping mall in the Municipality of Fjell, west of Bergen. In addition, the company acquired a neighbouring commercial building of 4,000 mÂ². The Sartor Senter mall is among Norway´s 20