Background/administration

Olav Thon Eiendomsselskap ASA was founded and given its present structure in 1982, when a number of properties belonging to the Olav Thon Group were transferred to the company. It was introduced on
the Oslo Stock Exchange in 1983. Since then, the company has grown considerably. The annual rental value of the company’s property portfolio has increased from NOK 27 million in 1983 to NOK 1,940 million as at 1 January 2011. 

The company is a part of the Olav Thon Group, which is a collective term for all operations and companies owned directly or indirectly by Mr. Olav Thon. The Group is mainly involved in real estate and hotel operations. 

Mr. Dag Tangevald-Jensen is the managing director. The company does not have its own administration. A management agreement with the Olav Thon Group ensures that the company draws at all times upon the collective resources of the organisation.

Main strategy

The company’s main strategy is to acquire, develop and own properties in central locations.

Through the redevelopment and efficient operation of the properties, the company aims in the long term to achieve the highest possible added value as a combination of current high operating yield and the long term increase in the value of the properties.

Shareholders

As at 31 December 2010, the company had 1,645 shareholders. After Thon Gruppen AS (owned by Mr. Olav Thon), who holds about 71 % of the shares, the second and third largest shareholders at the turn of the year were Folketrygdfondet (National Insurance Fund) and MP Pensjon Pk with 10.0 % and 1.9 % of the shares respectively. 

HIGHLIGHTS 2010

• Olav Thon Eiendomsselskap again achieved profit growth in 2010 and income from property management increased by 9 % to NOK
  981 million.
• Equity per share rose by 15 % to NOK 890.

• Group’s average interest rate went up 0.3 percentage points to 4.5 %. 
• Turnover in the group’s shopping mall portfolio increased by 30 % to NOK 44.9 billion. On a comparable basis in terms of area, growth is estimated to be 2 %.
  
• The group’s position as Norway’s leading shopping mall company was further strengthened by the purchase of the Vestkanten mall, the extension of several existing malls and the takeover of the                                   management of seven shopping malls for Storebrand. 
• The share price rose by 18 % to NOK 910 at the end of the year. Market capitalisation at the turn of the year was NOK 9.7 billion, making Olav Thon Eiendomsselskap one of the largest listed property companies in the Nordic countries.