Entra

Earnings Release • Feb 20, 2014

Entra Eiendom: Press release fourth quarter 2013: Portfolio adjustments and increased rental income

Entra Eiendom: Press release fourth quarter 2013: Portfolio adjustments and increased rental income

(Oslo, 21 February 2014) In the fourth quarter of 2013 rental income increased

to NOK 393.7 million against NOK 376.8 million in the same period in 2012. The

result from property operations was NOK 253.5 million against NOK 263.4 million

in the fourth quarter of 2012. For 2013 as a whole rental income totaled NOK

1 543.9 million (NOK 1 500.3 million) and the result from property operations

was NOK 1 107.0 million (NOK 1 067.8 million).

"We are pleased with the increase in rental income of 2.9% last year. 2013 has

been marked by restructuring, a new organisational model and preparations for

privatisation, which have affected the cost level for the year. During 2013

Entra worked actively on portfolio management with divestment of non-strategic

properties and strengthening of the company's position in core areas. The year's

most important transaction was the purchase of 50% of Hinna Park in Stavanger

and we look forward to further developing this exciting area in the coming

years. We have a positive view for 2014 and expect growth in rental income

combined with more normalised cost levels," comments Klaus-Anders Nysteen, Chief

Executive.

Entra has a negative value change of NOK -115.6 million (NOK 223.7 million) in

the fourth quarter. The value change mainly relates to certain properties with

an increased maintenance requirement and uncertainty regarding the extension of

individual leases.

Net realised financial items amounted to NOK -137.0 million (NOK -176.8 million)

and the net unrealised value change on financial instruments was NOK 10.0

million (NOK -99.6 million). The group's average interest rate was further

reduced during the quarter, mainly as a result of expiration of interest hedging

instruments. The profit before tax was NOK 228.2 million (NOK 290.2 million).

The result for the period after tax was NOK 294.4 million (NOK 226.6 million).

For the year as a whole the result after tax was NOK 470.0 million (NOK 737.8

million).

During the fourth quarter Entra signed new and renegotiated leases with an

annual rental income of NOK 37 million (17 509 m²) of which the largest was a

renegotiated lease for 3 724 m² at Prinsensgate 1 in Trondheim and a

renegotiated lease for 3 718 m² at Langkaia 1 in Oslo.

Entra's business strategy has three pillars: profitable growth, environmental

leadership and customer satisfaction. The company will focus its growth on

office property in the four biggest cities in Norway, Oslo, Bergen Trondheim and

Stavanger.

In December Entra signed an agreement to buy 50% of Hinna Park Eiendom AS in

Stavanger, which consists of three fully let office buildings totaling 28 000

m², zoned land with the potential to develop a further 46 000 m² of office

buildings, as well as a letting, development and management organisation. The

transaction was based on gross property values of approximately NOK 1.3 billion.

In addition five smaller non-strategic properties were sold for a total of NOK

255 million during the quarter.

Figures from the Norwegian Tenant Satisfaction Index show that in 2013 Entra

achieved an aggregate customer satisfaction rating of 72, against 71 in 2012 and

an industry average of 69. In the fourth quarter at Fredrik Selmers vei 4 in

Oslo Entra opened the first refurbished commercial building in Norway that has

achieved passive building standard and satisfies energy class A as well as being

approved as BREEAM Very Good.

For further information, please contact

Klaus-Anders Nysteen, CEO. Mob. + 47 992 65 691, Mail: kan@entra.no

Arve Regland, CFO. Mob. +47 479 07 700 Mail: ar@entra.no

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1763403]