Information in English: The Norwegian Church Endowment
The Norwegian Church Endowment (OVF) is regulated in the Norwegian constitution and its assets date back to the Middle Ages and the presence of the Roman Catholic Church in Norway. The fund is an independent legal entity, with the majority of assets in real property and financial assets.
Sustainable administration in accordance with church values
The aim of OVF is to create sustainable financial results and deliver the financial outcome and provide homes to the benefit of the Norwegian Church. In managing property and securities for the fund, we are committed to taking into account ethical, cultural heritage and environmental considerations. We strive to ensure that the management and operations are in line with the ethical values and also commercially justifiable.
About OVF and yearly summary 2020
One of the fund’s major obligations is to provide homes for the Norwegian Church’s clergy. OVF owns 300 vicarages, including bishops’ residences. 84 of these residences are listed cultural heritage properties. The total area of the buildings, including garages etc. is approximately 197,000 square meter.
Leaseholds, Agriculture and Cultural heritage properties
By the end of 2020, OVF had approximately 6,246 leaseholds, of which near 4,200 are let for residential and leisure purposes. OVF has a total of 132 farm leases. The 20 farms are primarily kept due to their cultural and historical heritage importance.The long history and foundation of the fund has resulted in an extensive portfolio of cultural heritage properties. OVF’s strategy is to maintain this portfolio.
The long history and foundation of the fund has resulted in an extensive portfolio of cultural heritage properties. OVF’s strategy is to maintain this portfolio.
OVF owns 918,000
hectar of forests and uncultivated land. Around 56% (516,000 hectar)
is operated as commercial forestry. 91,200 m3 of timber is felled in the
course of 2020, 10% more than the previous year. Regeneration through
growth and replanting of the forest accounted for approximately 173,000
m3 in 2020. Total forestry income was NOK 49 million in 2020.
Real property and estate development
OVF is working with a substantial portfolio of property development prospects, including a few real estate developments. The main purpose of the property development is to regulate the sites before selling them. Some major sites, in high value areas, are to be developed and kept with a view to further increasing the fund’s annual operational cash flow. Many of the projects are to be transferred (sold) to Clemens Eiendom, OVF’s wholly owned subsidiary.
Clemens Eiendom is a real estate company which is engaged in commercial development of OVF’s properties. Clemens Eiendom is also the manager of OVF’s commercial real estate properties.
Small Hydro-Electric Power (HEP) plants
Small Hydro Electric Power is a business area that exploits OVF’s waterfall rights. The business area is organized in its own subsidiary; Clemens Kraft. Clemens Kraft AS has partial ownership in 43 operational power plants. The business area is organized in a joint venture company; Clemens Kraft Holding AS. By the end of 2020, Clemens Kraft Holding AS has partial ownership in 43 operational power plants. Clemens Kraft is a leading player in this field in Norway. Clemens Kraft is a leading player in this field in Norway.
Grants for ecclesiastical purposes
Pursuant to section 2 of the Act governing the Norwegian Church Endowment, OVF’s activities shall benefit the Norwegian Church as a whole. Grans and contributions are given in various forms, both financial and in terms of the endowment maintaining homes for clergy in the Norwegian Church. The Endowment provides services of various kinds which the recipient does not pay market prices or cost absorption prices for.
Total disbursements of the Norwegian Church, including the rehabilitation of housing for the clergy, amounted to NOK 93 million in 2020, compares to NOK 112 million in 2019.
In 2020, OVF spent a net NOK 45 million on operation and refurbishment of homes for the clergy. This figure includes operating costs, maintenance costs and upgrading costs, adjusted for rental income.
OVF is offering better-than-market loans to church related purposes and has per the end of 2020 almost NOK 76 million in outstanding loans. The benefits in kind amounts to NOK 1.2 million as a result of subsidized interest margins.
In addition to the benefits mentioned above, the Endowment has made various financial contributions for ecclesiastical purposes. In 2020, these aggregated to NOK 47 million. These financial contributions comprise contributions for ecclesiastical purposes and contributions to country council owned rectories/clergy homes
In 2020, financial terms contributed a book profit of NOK 90 million compared to NOK 78 million in 2019.
Summary of annual accounts
OVF’s net operating income was NOK 349 million in 2020, at the same level as in 2019. Operating costs totaled NOK 228 million, 11 million more than in the previous year. OVF’s net income in 2020 was NOK 164 million, slightly above the number for 2019.OVF’s net operating income was NOK 349 million in 2020, at the same level as in 2019. Operating costs totaled NOK 228 million, 11 million
level as in 2019. Operating costs totaled NOK 228 million, 11 million more than in the previous year.
OVF’s net operating income was NOK 349 million in 2020, at the same level as in 2019. Operating costs totaled NOK 228 million, 11 million more than in the previous year.OVF’s net income in 2020 was NOK 164 million, slightly above the number for 2019.
OVF’s net income in 2020 was NOK 164 million, slightly above the number for 2019.
(Amounts in NOK 000s)
- Net income 164
- Capital Fund 124 280
- Other Equity 39 802
- Total allocations 164 082