Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

OSLO-Re-structuring locally based listed hotels and commercial real estate investor Norwegian Property posted profit before tax of NOK251 million (€30 million) for third quarter, turning round a loss of NOK1.37 billion (€163 million) in 3Q08. Portfolio value adjustments were almost flat.

"We are pleased to present a result representing a considerable improvement," said acting CEO Mari Thjømøe. "Stable income, good operations and reduced financial costs gives increased financial flexibility… Through restructuring and repayment of debt, the company has obtained a more solid financial position." Gross rental income in 3Q09 reached NOK445 million (€53 million), adjusted for sale of properties, an increase of 1.4% from Q3 2008.

Operating profit before fair value adjustments was NOK363 million (€43 million), down slightly. NPRO strengthened its financial platform through a private placement of NOK1.2 billion (€143 million) and subsequent 'repair' offering of NOK300m (€36 million), using proceeds for debt repayment.