KMC Properties ASA

Earnings Release • Aug 27, 2020

Storm Real Estate ASA - Interim Report H1 2020

Storm Real Estate ASA - Interim Report H1 2020

- Total Comprehensive Income of USD 5.3 million in the first half of 2020.

- NAV per share at NOK 11.1 as at 30 June 2020 (The reversed share split came into effect on 10 July 2019).

- As described in the attached interim report the company has entered into an agreement with Swedbank AB and Aconcagua Management Ltd (wholly owned by Morten E. Astrup), which, according to IFRS 9, requires the company to perform a fair value adjustment of the bank loan. Accordingly, the bank loan has been reduced by approximately USD 9.1 million from its face value of app. USD 20.6 million to an estimated present value of USD 11.5 million. The change in value (USD 9.1 million) has been recognised as a financial income during the first half of 2020, thus having a large effect on the total comprehensive income, the Group equity and the net asset value (NAV) per share.

- In addition to the fair value adjustment of the bank loan, the fair value adjustment of the investment property of USD -3.4 million (of which USD -3.1 million was currency translation from RUB to USD) has also had a large effect on the total comprehensive income.

Interim report and presentation attached. As part of the company's cost cutting program, the company only broadcasts the presentation by video stream on the Internet.

If you wish to receive the video presentation, please email kristoffer@stormcapital.no to receive the video stream details.

For further information, please contact:

Kristoffer Holmen, interim general manager

kristoffer@stormcapital.no

Phone: +4792814862