Markedsrapport NRP Finans AS NRP

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1 Markedsrapport 2010 NRP Mai 2010

2 Markedsrapport 2010 The NRP Group of companies Ness, Risan & Partners AS NRP Finans AS NRP Securities ASA NRP Asset Management ASA NRP Investment Management AS NRP Forretningsførsel AS NRP Investorservice AS NRP Consulting AS NRP Eiendomsdrift AS Project arrangments & syndication Corporate finance Closed end funds Separate accounts Corporate management Accounting, tax and consulting Consulting Real Estate Management Brokerage & Investment advice Capital Asset Management Corporate Management services

3 Side 1 Markedsrapport Mai 2010 Innholdsfortegnelse: 1. Innledning Solgte prosjekter Shipping Shipping markedet Nøkkeltall shippingportefølje Oversikt shippingprosjekter Shipping prosjekter Arendal Offshore DIS Atlantic Seismic DIS Beta DIS Bulk Transloading DIS China Ropax DIS Eastern Reefer DIS Eastern Reefer II DIS E-Tanker DIS Feedermate DIS Gram LPG DIS Inter Carib II DIS Inter Carib III DIS Longa DIS M-Tanker DIS Neptune Seismic DIS Oceanlink Reefer DIS Oceanlink Reefer II DIS Pacific Bulkers DIS Perrine DIS Stril Offshore DIS TDS Containership IV DIS United Cape DIS Eiendom Status eiendomsmarkedet Nøkkeltall eiendomsportefølje Oversikt eiendomsprosjekter Prosjektoversikt eiendom Alingsås Handel AS Alingsås Lager og Handel DIS Brønnøysund Kontorbygg AS Dagligvarelogistikk AS Etterstad Utvikling DIS Gasolin Eiendom DIS Gøteborg Kombi DIS Hallsberg Logistikk DIS Haugenstua Butikksenter AS Holmsbu Invest KS Kongholm Invest KS Lørenskog Kombibygg DIS Martodden Utbygging KS Nye Alfasetveien DIS Nye Bergen Lagerbygg KS Nye Berghagan Næringseiendom AS Nye Nordahl Bruns gate 10 KS Side

4 Markedsrapport Mai 2010 Side 2 Nässjö Logistikkbygg AS Pottemakerveien Kombibygg AS Ringeriksveien KS Stadion Utbygging KS Statens Hus Lillehammer KS Sydsvenskan Lager & Handel AS Sørenga Utvikling KS Tangen Havnelager AS Teknikstaden Utvikling AS TFGS Kombi AS Vestfold Kombibygg AS Forklaring av begreper og nøkkeltall Markedsrapporten er utarbeidet av (NRP). Informasjonen er utarbeidet etter beste skjønn, og NRP kan ikke ta ansvar for at informasjonen er riktig eller fullstendig. NRP fraskriver seg ansvar for ethvert tap som følge av at opplysninger som er gitt er misvisende, feilaktige eller ufullstendige, samt for tap som på annen måte oppstår som følge av anvendelse av de gitte opplysninger. Det understrekes at investering i eiendom, shipping og offshore er beheftet med risiko. Enhver investor må være forberedt på at slik investering kan medføre tap. Enhver som investerer må på egen hånd forsikre seg om at opplysningene som fremkommer er à jour og korrekte. Hvis man benytter dette dokument som underlag for kjøp av andeler på et senere tidspunkt, må man selv sørge for at all relevant og oppdatert informasjon fremskaffes. Opplysninger som fremkommer i markedsrapporten er kun à jour per dato for utarbeidelsen. Mulige investorer oppfordres til å gå gjennom de spesifikke prosjekter grundig All dokumentasjon kan gjennomgås ved henvendelse til vårt kontor.

5 Side 3 Markedsrapport Mai Innledning Siden forrige markedsrapport (november 2009) har tilstanden i verdensøkonomien blitt noe bedre. Dette skyldes i hovedsak at de fremvoksende økonomiene er tilbake til vekst takten som før Lehman Brothers. I tillegg viser ledende indikatorer fra USA en mer positiv utvikling. Europa er tilsynelatende den regionen med størst utfordringer, noe som har blitt synliggjort med gjeldskrisen i de såkalte PIIGS landene ledet an av Hellas som har hatt behov for hjelp fra EU og IMF. For en mer omfattende gjennomgang av makroøkonomisk utvikling viser vi til bidrag fra Lorentzen & Stemoco sitt bidrag i markedrapporten for shippingmarkedet. Norge er i en særskilt gunstig posisjon grunnet solide offentlige finanser, men har utfordringer med rentesettingen da man har lave renter i andre land, samtidig som Norge har stigende boligpriser og en konkurranseutsatt sektor som sliter med sterk krone. Eiendomsmarkedet i Norge har blitt berørt av finanskrisen, men effekten må sies å ha vært mild. Vi har sett en nedgang i yield nivåer siden forrige rapport, og da spesielt for eiendommer med lange kontrakter mot gode leietakere. NRP sitt andre hjemmemarked for eiendom, Sverige, har en langt mer konkurranseutsatt økonomi og har dermed fått føle finanskrisen sterkere enn Norge. Dette har resultert i fall i leienivåer og eiendomsverdier i Sverige. Sverige synes nå å ha passert bunnen i realøkonomien og investering i næringseiendom i Sverige kan, i kombinasjon med svært lave renter, vise seg å være interessant. For mer informasjon rundt eiendomsmarkedet viser vi til Akershus Eiendoms sin sitt bidrag i denne rapporten som omhandler eiendomsmarkedet for Norge og Sverige, med spesiell fokus på logistikk. Avkastningen for NRP Finans ( NRP) sine prosjekter har siden forrige rapport i november 2009, blitt løftet av økte verdier både for shipping- og eiendomsporteføljen. Porteføljeavkastningen er således opp med 16% så langt i Avkastningen på NRP sin totalportefølje av prosjekter ligger nå på 25% p.a. siden etableringen av NRP i 2000, noe som viser at direkteinvesteringer som aktivaklasse bør inngå i enhver investors portefølje. Vårt fokus er og vil være å oppnå den best mulig risikojusterte avkastning for hvert enkelt prosjekt, samt oppnå god porteføljeavkastning over tid. Markedet for direkteinvesteringer Siden forrige markedsrapport har vi tilrettelagt to nye prosjekter innen eiendom, og ingen innen shipping. Vi forventer at aktiviteten innen eiendom vil fortsette sin positive utvikling fremover, da vi ser økt interesse både fra investorer og banker, samtidig som at nøkkeltallene fortsatt er interessante. Innen shipping er det vanskelig å tilrettelegge tradisjonelle finansielle prosjekter da bankene fremdeles er restriktive mht. pantelånsfinansiering, dog ser vi at det er muligheter innen prosjekter hvor man tar større grad av markedsrisiko. De lave inngangsnivåene på verdier innen flere segmenter gjør at vi tror 2010 vil kunne bli en god årgang for investeringer innen shippingprosjekter. Det har ikke blitt solgt noen eiendomsprosjekter siden siste rapport, mens tre shippingprosjekter er avviklet. Av disse ble Indian Chemical Tanker II DIS avviklet med tap av store deler av egenkapitalen, Ross Container II DIS ble solgt med en positiv avkastning på 21% p.a. mens Indian Bulker DIS fikk en negativ avkastning på 37% p.a Markedssituasjonen innen de forskjellige segmentene i shipping er fortsatt svært variert. Tørrlast og stortank preges av gode rater og økte skipsverdier, mens container, kjemikalie, produkt og fryseskip fortsatt sliter med lave rater og skipsverdier. Offshore har hatt en positiv utvikling i rater og en nøytral utvikling i skipsverdier. Forskjellen i segmentene reflekteres også i de respektive shippingprosjekter spesielt med tanke på motpartens soliditet, samt vurderinger rundt restverdi og minimumverdi klausuler i låneavtaler. Det har ikke vært noen innbetalinger av uinnkalt kapital for shippingprosjekter siden forrige markedsrapport, men enkelte prosjekter har økt selskapskapitalen for å tilfredstille krav i låneavtalene og for å styrke likviditetsbeholdningen. For våre eiendomsprosjekter har vi siden forrige markedsrapport opplevd at to leietakere har misligholdt leiekontraktene. Dette gjelder prosjektene Holmsbu Invest KS og Kongholm Invest KS. Det har blitt innbetalt uinnkalt kapital på prosjektet Holmsbu Invest KS for totalt NOK 16 mill.

6 Markedsrapport Mai 2010 Side 4 Omsetning av andeler Likviditeten i 2. håndsmarkedet har økt i 2010, spesielt i shipping og offshore prosjektene. Det synes nå som om markedet er blitt mer normalisert som følge av generelt mindre usikkerhet, samt at avstanden mellom kjøper og selger ikke er like stor. Det synes fortsatt interessant å utnytte muligheten til å kjøpe andeler i eksisterende prosjekter i annenhånds markedet. Fordelen er at man ofte oppnår en høy finansieringsgrad og at man får lånemarginer langt under det nye lån prises til i dag. På eiendomssiden har de aller fleste leietakere en god underliggende drift, mens man innenfor shipping ser at man kan handle andeler til rabatt i forhold til underliggende stålverdier, og med høy forventet avkastning. Avkastning For prising av alle prosjekter lar vi siste omsatte andelspris være styrende dersom det har vært nylig omsetning i prosjektet. Prising av shippingprosjekter gjøres i hovedsak ved å bestemme riktig avkastningskrav i forhold til de underliggende parametere. For prosjekter hvor certepartier er kansellert og befraktningen er tatt over av eierselskapet eller hvor det kun gjenstår en kort periode av certepartiet, har vi beregnet egenkapitalverdien på basis av CP fri verdi minus nettogjeld og evt. breaking cost for rentesikringer. Prisingen av eiendomsprosjekter er vurdert basert på yield, men hvor også internrente på egenkapitalen tas hensyn til. Merverdier/mindreverdier av rentebindinger er ikke direkte tatt hensyn til i prising av egenkapitalen i eiendomsprosjekter, men gjennom internrente beregningen. I forhold til forrige markedsrapport er yielden gjennomgående satt ned med 25 punkter. Markedet har priset inn et større fall i yield for eiendommer med lange kontrakter enn for eiendommer med korte kontrakter. Dette er hensyntatt i analysene. Shippingporteføljen har i 2010 utviklet seg positivt da verdiene synes å ha passert bunnen i de fleste segmenter. Inntjeningen for enkelte segmenter er fortsatt utfordrende, noe som skaper usikkerhet rundt en del befrakteres soliditet. Så langt i 2010 har shippingporteføljen gitt en økning på 18%. Annualisert er oppgangen for Shippingporteføljen 53%. For shipping porteføljen ligger nå den årlige avkastningen fra slutten av 2000 og frem til i dag på 23% p.a. Disse tallene inkluderer alle innbetalinger som uinnkalt kapital, eventuelle deltakerlån og tilleggsinvesteringer, For eiendomsporteføljen fortsetter den positive utviklingen og vi har opplevd en økning i verdi av egenkapitalen med 15% så langt i Annualisert er oppgangen 45%. Porteføljen for eiendomsprosjekter har dermed gitt en avkastning på 29% p.a. fra slutten av 2000 og frem til i dag. Den vektede totalporteføljen av shipping og eiendomsprosjekter totalt sett, har hatt en økning på 16% så langt i år, og har siden slutten av 2000 gitt en avkastning på 25% p.a Avkastning Shippingporteføljen: 18% p.a. 23% p.a. Avkastning Eiendomsporteføljen: 15% p.a. 29% p.a. Avkastning Totalporteføljen: 16% p.a. 25% p.a. I løpet av 2010 følgende prosjekter solgt: Etablert Solgt Avkastning (IRR) Indian Bulker DIS % p.a Ross Container II DIS % p.a. I tillegg har følgende prosjekter blitt avviket/er under avvikling med tap av mesteparten eller all selskapskapital: Etablert Indian Chemical Tanker II DIS 2008 I avkastningsberegningene er det kun beregnet avkastning fra det tidspunkt egenkapitalen har blitt innbetalt, og dermed ingen kostnad på evt. forpliktelser, uinnkalt kapital eller garantier, før disse faktisk har blitt innbetalt. Avkastning er beregnet i valutaen prosjektet er nominert. På vegne av alle i NRP vil vi benytte anledningen til å bekrefte vår kommitering til våre kunder og forretningsforbindelser hvor vår fokus er å skape en langsiktig høy avkastning for investorer, kombinert med en positiv personlig oppfølging av høy kvalitet.

7 Side 5 Markedsrapport Mai 2010 Sammenlignet med Oslo Børs i perioden har NRP s portefølje utviklet seg som følger: Index Vektet NRP portefølje (673) OSEBX (195) Vi har benyttet OSEBX verdier per Oslo 15. februar 2010 Med vennlig hilsen Christian Ness Ragnvald Risan

8 Markedsrapport Mai 2010 Side 6 2. Solgte prosjekter fortsetter Eiendom: Rem Forza DIS % p.a.* Prosjekt Etablert IRR siden oppstart Rem Fosna % p.a.* Rem Odin DIS % p.a.* Shipping: Rem Provider DIS % p.a.* Prosjekt Etablert IRR siden oppstart Rem Songa DIS % p.a.* Maud Reefer KS % p.a. Ross Container DIS % p.a. Multipurpose 2000 KS % p.a. Scandinavian RoRo KS % p.a. Sir Matt Reefer DIS % p.a TDS Containership II KS % p.a. Eiendom: Prosjekt Etablert IRR siden oppstart Skarvenesveien 3 KS % p.a. * Ikke hensyntatt transjevis innbetaling 2007 Shipping: Eiendom: Prosjekt Etablert IRR siden oppstart Prosjekt Etablert IRR siden oppstart Tofelino Shipping KS % p.a. Banebakken 38 AS % p.a. Kapitan Rudnev Shipping Ltd % p.a. Helsingborg Kjøpesenter AS % p.a. Northeast Chemical Carrier KS % p.a. Kombibygg Invest I AS % p.a. Lillsjøvegen Invest AS % p.a Preståsen Park KS % p.a. Pueblo Amistad DIS % p.a. Eiendom: Prosjekt Etablert IRR siden oppstart Shipping: Fornebuveien KS % p.a. Prosjekt Etablert IRR siden oppstart Karihaugen Kombibygg KS % p.a. Asian Tanker DIS % p.a. Nye Skarvenesveien 3 KS % p.a. BOP 15 DIS % p.a. Dynasty DIS % p.a. Shipping: Eagle Shipping DIS % p.a. Prosjekt Etablert IRR siden oppstart Ivory Ace DIS % p.a. North Reefer KS % p.a. Rem Norway DIS % p.a. Southern Chemical Tanker DIS % p.a Eiendom: Prosjekt Etablert IRR siden oppstart Eiendom: Alfasetveien 11 Eiendom KS % p.a. Prosjekt Etablert IRR siden oppstart Datavegen 27 AS % p.a. Hotvedtveien 6 KS % p.a. Shipping: Valløveien 3 KS % p.a. Prosjekt Etablert IRR siden oppstart Selga Kombinasjonsbygg AS % p.a. Chem VI DIS % p.a. Inter Carib DIS % p.a. Shipping: Med Cruise DIS % p.a. Prosjekt Etablert IRR siden oppstart TDS III DIS % p.a. Eastern Chemical Carrier KS % p.a. Gram Chemical Carrier DIS % p.a Korean Chemical Carrier KS % p.a. Lake Eva DIS % p.a. Eiendom: Lake Maya DIS % p.a. Prosjekt Etablert IRR siden oppstart Sir Matt Reefer KS % p.a. Shipping: 2006 Prosjekt Etablert IRR siden oppstart American Bulker KS % p.a. Eiendom: Eastern Chemical Tankers III KS % p.a. Prosjekt Etablert IRR siden oppstart Indian Chemical Tanker DIS % p.a. Akersgaten 16 Invest KS % p.a. Peg Chemical Carrier DIS % p.a. Berghagan Næringseiendom KS % p.a. Entreprenørbygg Invest KS % p.a. Misligholdte/konkurs prosjekter Finnestadveien 44 ANS % p.a. Handy Container DIS % p.a.* Hvamveien 1 KS % p.a. MPP Container DIS % p.a.* Kyrre Grepps gt. 19 KS % p.a. Chem Lily DIS % p.a.* Moss Holmestrand Nærsenter KS % p.a. Swetank DIS % p.a.* Nye Alfasetveien 11 KS % p.a. Swetank III DIS % p.a.* Nygaard Brygge Invest KS % p.a. Swetank IV DIS % p.a.* Scandigade 8 AS % p.a. * Inkluderer innbetalt uinnkalt kapital Shipping: 2010 Prosjekt Etablert IRR siden oppstart China Bulker KS % p.a. Eiendom: China Cape DIS % p.a. Prosjekt Etablert IRR siden oppstart Containership Invest KS % p.a. European Container DIS % p.a. Shipping: European Container II DIS % p.a. Prosjekt Etablert IRR siden oppstart Finn RoRo KS % p.a. Ross Container II DIS % p.a. Indian Tanker KS % p.a. Indian Bulker DIS % p.a. Kapitan Korotaev Shipping Ltd % p.a. Mesa Invest DIS % p.a. Misligholdte/konkurs prosjekter Nye Northeast Chemical Carrier KS % p.a. Indian Chemical Tanker II DIS % p.a.* Olympia DIS % p.a. Rem Balder DIS % p.a.* * Inkluderer innbetalt uinnkalt kapital Rem Fortress DIS % p.a.*

9 Side 7 Markedsrapport Mai Shipping

10 Markedsrapport Mai 2010 Side Shipping market comments by Lorentzen & Stemoco World economic outlook If there was a single lesson learned from the collapse of Lehman Brothers on September 15 th 2008, it was that the failure of one party might lead to the failure of the entire system. The bankruptcy of the US investment bank not only led to a financial crisis, but also brought shocks to the world economy. Now that the world economy is recovering from recession, the lesson learned from the previous crisis will be important in tackling new challenges to ensure that growth and stability can be sustained. The crisis in Greece has made it clear that it is essential to rescue the Mediterranean country, in order to avert a full-scale European crisis with worldwide repercussions. The eurozone nation of Greece has thus been secured a EUR 110 billion package from the European Union and the International Monetary Fund. Moreover, the EU has decided to set up an emergency facility of EUR 500 bn to help eurozone countries that run into debt problems. The IMF has put up an additional 250 bn for the same purpose. European and US central banks are also intervening in the capital markets with buying government bonds and providing liquidity to prevent attacks from speculators. This might appear dramatic, particularly since Greece is not the only European country in doubt. Also Spain, Portugal, Ireland and the United Kingdom are being subject to questions about their deficits and ability to repay debt. However, the swift and decisive response from the EU, IMF, European Central Bank and even the US Federal Reserve is evidence of the concerted effort to pull together in times of difficulties and build on new structures to create a better world economic order. mature economies. In the year to the end of March, industrial production in South Korea rose by 22.1 percent. Asia s emerging economies, led by China and India, have emerged relatively unscathed from the recent debacles. China s economic growth surged to 11.9 percent in the first quarter of 2010, while India possibly recorded growth of 8.9 percent. While China s consumer inflation is low, housing prices are rising along with other capital goods. That offers difficult choices over whether to duplicate the two-year RMB 4000 bn stimulus package and champion the export sector, or alternatively appreciate the RMB against the dollar which would facilitate raising interest rates, consolidate important industries and encourage imports and domestic spending. China has become the world s biggest exporter, taking the lead over Germany. The charts below show the extent to which China s exports have surged in recent years. Interestingly, imports have also increased, even surpassing exports in the month of March. However, preliminary figures for April suggest that exports are once again bigger, leading to a trade surplus. Illustration 1: China s consumer price index, exchange rate, trade surplus and forex reserves: Already, the United States appears to be staging a successful recovery with its dynamic economy. The IMF, in a forecast made after the recent events, predicts that the US will grow by 3.1 percent in In contrast, the IMF believes that European growth will be 1.3 percent, driven by Germany and France. Underpinning European growth will be the export industry, boosted by better prospects particularly in Asia. The IMF estimates Asian growth to be 6.9 percent this year. Japan is still suffering from low growth and is struggling to recover from years of stagnation. Japan s unemployment rate rose to 5 percent in March from 4.9 percent in February. Consumer prices fell by 1.1 percent in the year to the end of March, which was Japan s 14 th consecutive month of deflation. But elsewhere in Asia, things are looking up, also for the

11 Side 9 Markedsrapport Mai 2010 All illustrations by Lorentzen & Stemoco Dry bulk shipping market The dry bulk shipping market continues to be driven predominantly by China s imports of iron ore, used together with coking coal as feedstock in the steelmaking blast furnaces. However, with the economic growth in both China and India, the need for electricity creates demand also for steam coal from overseas suppliers. The increased shipments of these raw materials have so far this year absorbed the many newbuilding deliveries coming, and kept both freight rates and second-hand values firm. This year s negotiations between the Asian steel producers and the global iron ore producers have resulted in an entirely new price regime that could have wide impacts on the dry bulk shipping market, both short-term and long-term. Dissatisfied by giving away the upside potential in the raw materials iron ore and coking coal, the global mining companies Vale, BHP Billiton and Rio Tinto have succeeded in abandoning the 40-year-old benchmark system of annual price contracts, and instead opening up for quarterly prices.

12 Markedsrapport Mai 2010 Side 10 Illustration 2: Iron ore prices USD per ton Port Hedland 62% Fe fines Japan FOB 2004q1 2004q2 2004q3 2004q4 2005q1 2005q2 2005q3 2005q4 2006q1 2006q2 2006q3 2006q4 2007q1 2007q2 2007q3 2007q4 2008q1 2008q2 2008q3 2008q4 2009q1 2009q2 2009q3 2009q4 2010q1 2010q2 Whereas 2009-prices were agreed at USD per ton for 62 percent grade from Port Hedland, the quarterly prices have doubled to over USD 120 per ton for similar grade, starting from April 1 st and running through June 30 th The Chinese steel mills initially sought to rely more heavily on domestically produced iron ore. However, domestic iron ore supplies are generally of lower quality and the cost of production is high at up to USD 100 per ton compared to Australian material at USD 30 per ton. In addition, high restart costs after the Chinese New Year s holidays encouraged domestic miners to raise March-prices to USD 177 per ton on 66 iron grade material, including tax and transport. The last monthly figures just released suggest that domestic production reached 79.7 million tons, up 29.2 percent year-on-year, but insufficient to fill the void. Many Chinese steelmakers and traders have also reduced iron ore inventories, whether in port or at the mills. Inventories in the 20 largest Chinese ports are reportedly 72.9 million tons. Measured against the daily off-takes of 845,000 tons the forward cover is thus 86 days. If the inventories are not replenished, the stocks will be emptied in less than three months from now. about USD 170 per ton in added costs, which could spell USD 900 per ton. If, say, USD 100 per ton of this is priced into a Capesize bulk carrier of 20,000 lightweight tons, that should press up newbuilding costs by USD 2 million. Obviously, shipbuilders will attempt to compensate for these costs in the newbuilding price, but will succeed only if shipowners are standing sufficiently ready to contract new ships. During the last five years, China has accounted for: 17% of dry bulk volumes on a world-wide basis 33% of ton-mile demand, because of trade patterns 80% of dry bulk growth Illustration 3: Seaborne dry bulk volumes Mill. tons Seaborne dry bulk volumes Other Soybean Cement Steel products Grain Steam coal Met coal Iron ore By the end of 2009, there were approximately 7300 dry bulk carriers active in the market ranging from Very Large Ore Carriers to Capesize Bulk Carriers, Panamax Bulk Carriers, Supramax/ Handymax Bulk Carriers and Handysize Bulk Carriers. In total, these vessels measured at 460 million dwt. Illustration 4: Fleet of bulk carriers Historical fleet development, dry bulk carriers As Australia import prices quoted in Shanghai and Qingdao are reaching USD 185 per ton, including the freight element of about USD 10 per ton, Chinese steelmakers have little choice but to accept the April- June quarterly prices. What s more, fearing that the new quarterly prices for the period July-September will be increased additionally, there is a flurry of Pacific and Atlantic fixtures being done in anticipation of further price raises. Mill. dwt 180,0 160,0 140,0 120,0 100,0 80,0 60,0 40,0 20,0 0, e Capesize Panamax Handymax Handysize A continued revival is ultimately dependent on a strong Chinese steel industry. Steelmakers, paying for more costly coking coal and iron ore, will need to find endusers willing to cover the difference and more. For example, even though it a small end-user industry, shipbuilders could be an important bellwether. At the beginning of the year, shipbuilders were taking in steel plates at RMB 4000 per ton. Today, the price is moving rapidly up from RMB 5000 per ton, about USD 735 per ton. The increase in coking coal and iron ore will mean In comparison, there were 3000 bulk carriers on order, totaling 270 million dwt. As such, the orderbook of contracted bulk carriers represent about 60 percent of the existing fleet. Most of the orders are scheduled for delivery in 2010 and 2011, with orders also running into 2012 and An overwhelming majority of the ordered bulk carriers have been contracted at shipyards in Japan, South Korea, China and to a lesser extent in India and Vietnam.

13 Side 11 Markedsrapport Mai 2010 However, financial constraints affecting newbuilding contracts and shipyards unable to perform satisfactory on the accepted orders will, to some extent, result in contracts being cancelled. In addition, contracts may also be deferred to a later delivery, thus stretching out the newbuilding schedule. Demolition of ageing ships will also offset the influx of newbuilding deliveries. Market conditions, operating costs and vetting criteria are all factors influencing on the number of vessels exiting the active dry bulk market. Both second-hand and newbuilding prices have reduced markedly and will be set in the market by factors such as access to funding, market assessments and the availability of new orders in the shipbuilding sector. Tanker market The tide has turned in the tanker market. Rates have improved from the deep 2009 trough on increased activity, improving oil demand and resumed trading of crude, petroleum products and liquid chemicals. Meanwhile, activity in the sale and purchase and newbuilding markets has also increased; shipowners and others are again buying, selling and ordering tankers; in turn pushing asset values up. The crude oil tanker market has shown the strongest development so far this year. While average spot rates on the MEG/Japan and MEG/USGC VLCC routes were only USD 27,500 per day in 2010, average rates on these two routes have increased 36 percent to USD 37,500 per day so far this year. Phase out of singleskinned units has contributed in dampening fleet growth during the last quarter of 2009 and the first two quarters of 2010 as a total of 23 single skinned units have been sold for conversion or demolition during this period. Moreover, crude oil tanker demand has rebounded strongly as more oil is being traded on the market. Middle East exports are increasing and are currently 6 percent above levels experienced one year ago. The majority of the rise has come in eastbound directions; however we currently see that buyers West of Suez are increasing purchases as well. This is completely in line with recent developments in oil demand: China and other growth markets enjoy rapid economical growth with an oil demand affected thereafter. Meanwhile, most important developed countries are finally out of recession and oil demand will be impacted positively from now on. The outlook for the crude oil tanker segment in 2010 is strong. Crude oil tanker demand will grow 5.6 percent in 2010, by that clearly outpacing fleet growth. Product and chemical tanker markets are lagging the crude oil tanker segment. On the benchmark TC2 MR route from Europe to the US East Coast with gasoline, the time charter equivalent has stabilized at around USD 9500 per day so far this year, up a small USD 1500 per day from around USD 8000 USD per day on average in Market activity is back and volumes are indeed rising, however product and chemical tanker fleets do not have the same single-hull exposure as the VLCC segment. Thus, relative fleet growth during 2009 and 2010 will be stronger than in the crude oil tanker segment and it will take more time for these markets to recover, despite the expected 7.5 percent demand hike in There are currently 519 VLCCs actively trading on the crude oil tanker market and 177 on order. Of the 519 trading units, 44 are single hulled and will thus be phased out this year. Meanwhile, there are still 58 units scheduled for delivery in 2010, however many of these will be pushed into 2011 and Last year 20 percent of scheduled deliveries were delayed, assuming the same slippage rate this year, fleet growth will be minimal.

14 Markedsrapport Mai 2010 Side 12 The big question mark in the crude oil tanker segment are the years when 119 VLCCs are scheduled for delivery. Corresponding to a fleet growth of 20 percent, demand must develop strongly during these years for the market balance and rates to remain at 2010 levels. While the crude oil tanker market is set for a significant and accelerating fleet growth in 2011 and 2012, product/chemical tanker fleet growth will abate after Considering the Medium Range product/chemical tanker segment, there are currently 1450 units trading while the orderbook consists of 350 ships. From today, the fleet is scheduled to grow 13 percent by 2012 before flattening. Meanwhile, demand for these ships will develop strongly and we expect the market balance to be fully restored by The tide may have turned; however, it is too early to report the tanker markets fit for duty. The product and chemical markets are still limping; earnings are low and will probably stay low for still some time. Meanwhile, the better-performing crude oil tanker market is dependent on a strong demand development in the years to come in order to consume the vast orderbook.

15 Side 13 Markedsrapport Mai Key figures shipping portfolio Index NRP Shipping portfolio vs Oslo Børs Benchmark NRP Shipping Index (574) OSEBX (195) Annual return OSEBX vs NRP Shipping portfolio 80 % 60 % 40 % 47 % 54 % 52 % 48 % 63 % 52 % 39 % 41 % 32 % 47 % 34 % 65 % 20 % 0 % 11 % 0 % 18 % 20 % 14 % 40 % 31 % 35 % 60 % 80 % 54 % 55 % OSEBX NRP Shipping portfolio Shipping portfolio projects Projects established Projects sold Projects in portfolio end of year (right axis)

16 Markedsrapport Mai 2010 Side Shipping projects overview Shipping Projects Estimated value USD Established IRR since established p.a. Arendal Offshore DIS % Atlantic Seismic DIS % Beta DIS NOK % Bulk Transloading DIS % China Ropax DIS % Eastern Reefer DIS % Eastern Reefer II DIS JPY % E-Tanker DIS % Feedermate DIS EUR % Gram LPG DIS % Inter Carib II DIS % Inter Carib III DIS % Longa DIS % M-Tanker DIS % Neptune Seismic DIS NA* 2007 NA* Oceanlink Reefer DIS % Oceanlink Reefer II DIS % Pacific Bulker DIS % Perrine DIS % Stril Offshore DIS NOK % TDS Containership IV DIS % United Cape DIS % *The project has been suspended

17 Side 15 Markedsrapport Mai 2010 Arendal Offshore DIS - financial offshore project Contact: Henrik Ness (henrik.ness@nrp.as) Date of analysis: Estimated share price (USD): 1 % Estimated share price (USD):* Key figures: 100 % Paid in equity (USD): Accumulated dividend (USD): Residual value sensitivity on IRR : LOW CASE BASE CASE HIGH CASE Residual value end C/P 2015: IRR estimated share price: 3,11 % 26,49 % 37,28 % IRR total capital: 2,27 % 10,17 % 15,83 % * The Share price includes a 5% deduction on the the tax position of the company. Corporate details The Vessel Corporate Management: Ness, Risan & Partners AS Vessel's name: M/V KL Arendalfjord Commercial Management: ADS Offshore AS Type: Offshore Supply Ship (PSV), UT 755 L Flag: NOR Purchase price vessel: USD Class: DNV +1A1 -SF -E0 -Clean and Solas, Paid in capital: USD Dyn Pos Aut& T-MON -FIFI Uncalled capital: USD Built: 2004 Commencement of C/P: Yard: Aker Brevik, Norway Expiry of C/P: Design: Rolls Royce, UT 755L Dwt: Approx. 3,300 tonnes Base case assumptions: LOA/Breath/Depth:: 72m/16m/7m BB rate net per day year 1-7: USD Free deck area 680m2 Main Engine KRMB 9, 2005 KW (2725 BHP) 825 rpm Charterer: K-Line Offshore AS Estimated Cashflow Financing ( ) Estimated Cashflow Balance Annual inst. 09 Interest Balloon Operating revenue Mortgage debt ,70 % * Administration expenses Total Net operating cashflow * Quarterly instalments: Interest earned Year 1-7: USD Interest expenses Repayment long term debt Net financial items Net project cashflow % of the mortgage is fixed at interest 3.77% incl. margin until % of the mortgage is fixed at interest 4.037% incl. margin until The remaining mortgage interest rate is not fixed, and assumed interest rate is 3.50% incl. margin for the remaining period. Estimated dividend Estimated Balance (31.12) Working capital Vessel* Total assets Additional information K-Line Offshore AS has an option to extend the charter period with 60 days after the end of the charter period. Outstanding debt 1. Prior Total outstanding debt * Vessel value is calculated based on a depreciation of annual annuity factor of 8.2%

18 Markedsrapport Mai 2010 Side 16 Atlantic Seismic DIS - financial shipping project Contact: Ragnvald Risan (r.risan@nrp.as) Date of analysis: Estimated share price (USD): 1 % Estimated share price (USD):* Key figures: 100 % Paid in equity (USD): Accumulated dividend (USD): Residual value sensitivity on IRR : LOW CASE BASE CASE HIGH CASE Residual value end C/P 2012: IRR estimated share price: 11,40 % 27,07 % 39,50 % IRR total capital: 6,15 % 16,73 % 27,13 % * The Share price includes a 5% deduction on the the tax position of the company. Corporate details The Vessel Corporate management: Ness, Risan & Partners AS Vessel's name: M/V GGS Atlantic Commercial management: Arne Blystad AS Type: Seismic Research Vessel (2D) Seismic recording system: Sercel SEAL-24 bit Purchase price vessel: USD Seismic streamer: 10 km Sercel Seal Fluid Paid in capital: USD Compressors: 2 X 1600 SCFM 2000 PSI Cherko Uncalled capital: USD Yard: North American Shipbuilding Inc. Louisiana, USA Commencement of C/P:* 4. September 2006 Built: 1981 (rebuilt 2007) Expiry of C/P: 4. September 2012 Class/flag: ABS/ Marshall Islands Delivery:* 23. April 2007 Main engine: Caterpillar D-399X2NOS LOA/beam/depth: 52m/12,5m/14ft Base case assumptions: Accommodation: 41 persons BB rate net per day:(up to 4. Dec 10): USD BB rate net per day:(up to 4. Dec 11): USD BB rate net per day:(up to 4. Sep 12): USD Charterer: Guarantor: Spectrum ASA Global Geo Services ASA * With economic effect for buyers from 1. March 2007 Estimated Cashflow Financing ( ) Estimated Cashflow Balance Annual inst. 09 Interest Balloon 2012 Operating revenue Mortgage debt ,37 % * 0 Administration expenses Mortgage debt ,00 % * 0 Net operating cashflow Total Interest earned Interest expenses Repayment long term debt Net financial items Net project cashflow Estimated dividend * Aggregated instalments for mortgage debt as follows: 2008: USD : USD : USD : USD Mortgage 1 has a "Flipable Swap" from 23. October 2007 to 23. October 2011 at a fixed rate of 6.37%. Nordea has an option to cancel the swap after 23. Ocober 2008 and every quarter thereafter. In this case Nordea can convert the fixed rate to LIBOR -0.10% quarterly, but only once. We have assumed that the option is not decleared. Mortgage 2 interest rate is not fixed where assumed interest rate is 4.0% incl. margin for the remaining period. Estimated Balance (31.12) Working capital Vessels* Total assets Additional information Vessel was rebuilt and upgraded in March Outstanding debt 1. Prior Total outstanding debt * Vessel value is calculated based on a depreciation of annual annuity factor of 12.6%

19 Side 17 Markedsrapport Mai 2010 Beta DIS - offshore asset play Contact: Ragnvald Risan (r.risan@nrp.as) Date of analysis: Estimated share price (NOK) 1 % Estimated share price (NOK):* Key figures: 100 % Paid in equity (NOK): Accumulated dividend (NOK): Residual value sensitivity on IRR : LOW CASE BASE CASE HIGH CASE Residual value end 2010: IRR estimated share price: -34,16 % 10,11 % 62,28 % * The Share price includes a 5% deduction on the the tax position of the company. Corporate details The Vessel Corporate management: Ness, Risan & Partners AS Vessel name: M/V Beta Technical management: Buksèr og Berging AS Type: Anchor Handling Tug/Supply vessel (AHTS) Commercial management: Buksèr og Berging AS Dwt: mt LOA: 67,8m Purchase price vessel: NOK Breadth: 14,5m Paid in capital: NOK Yard/Built: H.Surken West Germany/ 1982 Uncalled capital: NOK Class: DNV +1A1, Tug, Supply vessel, Oilrec, SF, E0 Delivery: 29. September 2006 Flag: NOR Deck cargo 720 sqm * The vessel is fixed on timecharter to from Buksèr og Speed: 15,5 knots Berging AS to Kystverket. Beta AS has the vessel on timecharter to Main engine: 4 x Wichmann 6AXAG, BHP Buksèr & Berging AS on a back to back basis as TC to Kystverket Assumed operating expenses per day: Approx. NOK per day Estimated Cashflow Financing ( ) 2010 Balance Annual inst. 09 Interest Balloon 2010 Operating revenue Mortgage debt ,50 % * 0 Operating expenses Investor loan ,51 % ** Dry docking & other Total Administration expenses Net operating cashflow *The interest rate is not fixed. Assumed interest rate for 2010 is 4.5% incl. Interest earned margin. The mortgage loan has been repaid in full. Interest expenses Repayment long term debt 0 ** The investor loan is a short term loan to fund a NOX reclassification Repayment investor loan rebuilding. Net financial items Sale of vessel Net project cashflow Estimated dividend Estimated Balance (31.12) 2010 Working capital Vessel Total assets Outstanding debt 0 Total outstanding debt 0 Net asset value pre dividen #REF! * Vessel value is calculated based on a depreciation of annual annuity factor of 17.7%. Additional information The vessel is being rebuilt to meet new NOX classifications. To fund the upgrade an investorloan of NOK has been provided by the partcipants. An additional loan from the investors of NOK was provided by the participants in Q1 2010, interest of 5.6% will be paid.

20 Markedsrapport Mai 2010 Side 18 Bulk Transloading DIS - financial shipping project Contact: Ragnvald Risan (r.risan@nrp.as) Date of analysis: Estimated share price (USD): 1 % Estimated share price (USD):* Key figures: 100 % Paid in equity (USD): Accumulated dividend (USD): Residual value sensitivity on IRR : BASE CASE Residual value en bloc end C/P 2022: IRR estimated share price: 29,83 % IRR total capital: 13,05 % * The Share price includes a 5% deduction on the the tax position of the company. Corporate details The Vessels Corporate management: Ness, Risan & Partners AS Vessel's name: M/V Trans Bay/Trans Emirates/Trans Gulf Commercial management: Arne Blystad AS Type: Bulk Transloader Dwt: 68,857/68,857/71,398 Purchase price vessels: USD GRT: 37,550/37,550/46,996 Paid in capital: USD Yard: Daewoo/ Daewoo/ Italcantinieri Uncalled capital: USD 0 Built: 1996/1993/1982 Commencement of C/P: Sept.2007 Converted: 1996/1999/1998 Expiry of C/P: Sept.2022 Class: DnV/DnV/Lloyd's Flag: Marshall Islands/ Marshall Islands/ Liberia Base case assumptions BB hire/day: Trans Bay Trans Emirates Trans Gulf Sept/oct 07 until until sept/oct Sept/oct 09 until until sept/oct Sept/oct 2012-sept/oct Charterer: Star Universal Marine Limited, Cyprus guaranteed by ETA Star Holdings Ltd., Dubai Estimated Cashflow Financing ( ) Estimated Cashflow Balance Annual inst. 09 Interest Balloon Operating revenue Mortgage debt ,88 % * 0 Administration expenses Sellers Credit ,00 % ** Net operating cashflow Total Interest earned * Annual instalments: Interest expenses Year 1-2: USD Repayment long term debt Year 3-5: USD Repayment sellers credit Year 6-15: USD Net financial items An extraordinary repayment of USD on the mortgage loan was Net project cashflow paid in during Q %of the mortgage loan is fixed at interest rate 6,88% incl. margin until Estimated dividend october ** The sellers credit runs as a bullet until 2022 and is not interest bearing. Estimated Balance (31.12) Working capital Vessels* Total assets Outstanding debt 1. Prior Sellers credit Total outstanding debt * Vessel value is calculated based on a depreciation of annual annuity factor of 7.4% Additional information USD of the uncalled capital has been called upon in 09 due to breach with minimum value clause. Remaining uncalled capital is 0. The Charterer has an obligation to purchase the vessels as follows: M/V Trans Gulf: USD after year 5. M/V Trans Bay: USD after year 15. M/V Trans Emirates: USD after year 15. The charterer has options to purchase the vessels at pre-agreed prices from year 5 and onwards. The project is considered as a financial lease. Dividends assumed to be postponed until 2012 due to breach with minimum value clause. There is a waiver on the minimum value clause until

21 Side 19 Markedsrapport Mai 2010 China Ropax DIS - financial shipping project Contact: Henrik Ness (henrik.ness@nrp.as) Date of analysis: Estimated share price (USD): 1 % Estimated share price USD* Key figures: 100 % Paid in equity (USD): Accumulated dividend (USD): Residual value sensitivity on IRR : BASE CASE Residual value end C/P 2010: 1 IRR estimated share price: 22,86 % * The Share price includes a 5% deduction on the the tax position of the company. Corporate details The Vessel Corporate management: Ness, Risan & Partners AS Vessel's name: M/V Tian Ren Commercial management: Atlantica Shipping AS Type: Ro Ro Cargo passenger vessel Dwt: Purchase price vessel: USD LOA: 186,5 m Paid in capital: USD Beam: 24,8 m Uncalled capital: USD Yard/Built: Kanda Shipyard, Japan 1990 Commencement of C/P: 23. September 2004 Class/flag: KR/Panama Expiry of C/P: 23. September 2010 Passenger capacity: 610 Cargo capacity: 170 containers Base case assumptions: Speed: 23,2 knots BB rate net per day: USD Main engine: Diesel United (Pielstick) 9PC-40L X 2 sets Charterer: Marine Dragon Shipping Inc, Panama. Guaranteed by TianHai Group Co. Ltd., China Estimated Cashflow Financing ( ) 2010 Balance Annual inst.09 Interest Balloon Operating revenue Mortgage debt ,84 % * 0 Administration expenses Sellers credit ,00 % 0 Net operating cashflow Total Interest earned Interest expenses Repayment long term debt Repayment sellers credit Net financial items * 75% of the loan is secured by a step up interest swap agreement for 6 years. The remaining 25% has not been fixed, where assumed interest rate is 3.5% incl. margin. Net project cashflow Estimated dividend Estimated Balance (31.12) 2010 Working capital Vessel* 0 Total assets Additional information The charterer has an obligation to purchase the vessel for USD 1 at the end of the charter. The project is considered as a financial lease. Outstanding debt 1. Prior 0 Sellers credit 0 Total outstanding debt 0 *Vessel value is calculated based on a depreciation of annual annuity factor of 9.7%

22 Markedsrapport Mai 2010 Side 20 Eastern Reefer DIS - financial shipping project Contact: Ragnvald Risan (r.risan@nrp.as) Date of analysis: Estimated share price (USD): 1 % Estimated share price USD:* Key figures: 100 % Paid in equity (USD): Accumulated dividend (USD): Residual value sensitivity on IRR : BASE CASE Residual value end C/P: See additional information IRR estimated share price: 21,89 % * The Share price includes a 5% deduction on the the tax position of the company. Corporate details The Vessels Corporate management: Ness, Risan & Partners AS Vessel Name Built Dwt Cargo cap Commercial management: Oceanlink Ltd. (cbft) Purchase price vessels: USD M/V Baron Paid in capital: USD M/V Dinok Uncalled capital: USD M/V Jacha Delivery: 8. December 2006 M/V Mabah Expiry of C/P: See Additional information M/V Mononok Base case assumptions: M/V Seed Leaf* BB rate en bloc net per day year 1: BB rate en bloc net per day year 2: Type: Reefer BB rate en bloc net per day year 3: Flag: Marshall Island BB rate en bloc net per day year 4: BB rate en bloc net per day year 5: * Seed Leaf has been sold, expected delivery 20. June 2010 BB rate en bloc net per day year 6: BB rate en bloc net per day year 7: BB rate en bloc net per day year 8: 112 Charterer: Khana Enterprise Co. Ltd., Oswego Ltd., Glory Endeavour S.A. Estimated Cashflow Financing ( ) Estimated Cashflow Balance Annual inst. 09 Interest Balloon Operating revenue Mortgage debt ,23 % * 0 Administration expenses Total Net operating cashflow Interest earned Interest expenses Repayment long term debt Net financial items Sale of vessels Net project cashflow * This mortgage has not fixed the interst rate. Assumed interest rate is 3,00% incl margin. Annual instalments: 2010: USD : USD In addition there will be an extraordinary repayment when M/V Mabah is sold (estimated in 2011). Estimated dividend Estimated Balance (31.12) Working capital Vessels* Total assets Outstanding debt 1. Prior Total outstanding debt Additional information There are options and obligations to buy and sell the vessels as follows: M/V Mabah: Call option 10. April 2011: USD M/V Mabah: Put option 10. April 2011: USD M/V Baron: Call option 20. October 2013: USD M/V Mononok: Call option 20. February 2013: USD M/V Dinok: Call option 20. February 2013: USD M/V Jacha: Call option 8. February 2014: USD The project is considered as a financial lease. * Vessel value is calculated based on a depreciation of annual annuity factor of 9.2%

23 Side 21 Markedsrapport Mai 2010 Eastern Reefer II DIS - financial shipping project Contact: Ragnvald Risan (r.risan@nrp.as) (All figures in 1000 JPY) Date of analysis: Estimated share price (JPY): 1 % Estimated share price (JPY):* Key figures: 100 % Paid in equity (JPY): Accumulated dividend (JPY): Residual value sensitivity on IRR : BASE CASE Residual value end C/P 2017: IRR estimated share price: 22,15 % IRR total capital: 8,23 % * The Share price includes a 5% deduction on the the tax position of the company. Corporate details The Vessels Corporate management: Ness, Risan & Partners AS Vessel's name: M/V Jochoh M/V Pohah No. 2 Commercial management: Oceanlink Ltd. Type: Reefer Reefer Cargo Cap: 235,050 cbft 235,039 cbft Purchase price vessels: JPY Dwt: ,134 Paid in capital: JPY LOA/ Beam: 113,3m/16,6m 113,4m /16,6m Uncalled capital: JPY Yard: Kyokuyo Shipyard Corp, Japan Commencement of C/P M/V Pohah No.2: 27. March 2007 Built: Expiry of C/P M/V Pohah No.2: 27. March 2017 Class/flag: N.K N.K. Commencement of C/P M/V Jochoh: 27. October 2008 Main engine: Kobe, 8UEC37LA Akasaka, 8UEC37LA Expiry of C/P M/V Jochoh: 27. April 2015 Base case assumptions: BB rate net per day year 1-10 M/V Pohah No 2.: JPY 401,5 BB rate net per day year 1-10 M/V Jochoh: JPY 355 Charterer: Guarantor: NOK Co. Ltd., Panama Khana Enterprises Co. Ltd., Japan and Oswego Ltd., Korea Estimated Cashflow Financing ( ) Estimated Cashflow Balance Annual inst. 09 Interest Balloon Operating revenue Mortgage debt ,75 % * Administration expenses Mortgage debt ,25 % ** 0 Net operating cashflow Sellers Credit ,00 % Interest earned Total Interest expenses *Mortgage debt 1 has annual instalments of JPY Repayment long term debt % of the mortgage is fixed until 26. March 2014 at 2.78% incl. margin. Net financial items **Mortgage debt 2 has annual instalments of JPY Net project cashflow The loan is not fixed, assumed interest is 2.25% incl. margin for the remaining period. Estimated dividend Estimated Balance (31.12) Working capital Vessels* Total assets Outstanding debt 1. Prior Outstanding debt 1. Prior Sellers credit Total outstanding debt * Vessel value is calculated based on a depreciation of annual annuity factor of 8.2% Additional information All JPY figuers in 1000 JPY. The charterer has an obligation to purchase the M/V Pohah No. 2 for JPY 500 million at the end of the Bareboat Charter (2017). The charterer has an obligation to purchase the M/V Jochoh for JPY 100 million at the end of the Bareboat Charter (2015). The project is considered as a financial lease.