Slide 1: Q4/FY2024
Q4/FY2024 Oslo, 12 February 2025
Slide 2: Highlights
Highlights Key figures Key events in the fourth quarter • Underlying rental income growth of 1.6%, adjusted for divestments • Net income from property management growth of 7.1% • Net letting of -41 million • Positive value changes on the investment properties of 273 million • Net asset value (NRV) i
Slide 3: Agenda
Agenda Operations and market Financial update Closing remarks Q&A
Slide 4: Operations and market
Jf Operations and market Jk 0 | | _ Mentra
Slide 5: Letting and occupancy
Letting and occupancy • New and renewed leases of 105 million (54 100 sqm) • Terminated contracts of 66 million (27 100 sqm) • Net letting of -41 million • Occupancy 94.3% • WAULT at 6.1 years (6.3 years incl. project portfolio) • 52% of rental income from public sector tenants in the management por
Slide 6: Completion of divestment program
Completion of divestment program Transactions in the quarter Grenseveien 78B, Oslo • With the sale of the Trondheim portfolio and other • Total transaction value of NOK 410 million transactions in 2024 • 13.4 per cent above Q3 book values • Two transactions in Q4 • Proceeds used to strengthen Entra'
Slide 7: Ongoing development portfolio
Ongoing development portfolio 1) Total project cost (including book value at date of investment decision/cost of land), excluding capitalised interest cost 2) Estimated net rent (fully let) at completion/total project cost (including initial value) 3) Weighted average occupancy of the project portfo
Slide 8: Well prepared for new EU legislation
Well prepared for new EU legislation Energy class distribution of Entra's assets (market value) NOK 2.3bn in mgmt. portfolio 8
Slide 9: Market development
Market development Rental growth expectations and CPI Norwegian economy expected to pick up • Lower interest rates and real wage growth expected to fuel private consumption, combined with increased public spending • Stable employment going forward • Inflation on a downward trend • November 2024 CPI
Slide 10: Market rents below break-even rents for newbuild projects
Market rents below break-even rents for newbuild projects Development in rental price, CPI and construction costs (2010 = 100) Required rent to start newbuild project in Oslo ∆ ∆ ∆ ∆ 1 Development construction cost for residential construction. Source: DNB Næringsmegling, Arealstatistikk. DNB invest
Slide 11: Market development
Prime yield Oslo Market development Transaction and yields • Interest rates have topped out, inflation on a downward trend • Property values seem to have bottomed out • Prime yields expected to decrease slightly from 2025 • Financing markets open and available, tighter credit margins • Increased tra
Slide 12: Financial update
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Slide 13: Financial highlights
Financial highlights • Stable Rental income adjusted for divestments • Improved Profit before tax supported by hedge instruments and portfolio value changes Rental income Net income from property management Profit/loss before tax 13
Slide 14: Profit and loss statement
Profit and loss statement Q4 comments: Rental income impacted by divestments, partly offset by positive like-for-like including CPI growth • Proforma growth 1.6% Operational and administrative costs in line with expectations Financing costs trending downwards due to reduced debt following divestment
Slide 15: Financials per share
Financials per share NOK per share NOK per share Cash Earnings LTM1 Net Asset Value (NAV)2 and Total return CAGR 5 % CAGR 9 % 1 Cash earnings Last twelve months measured as Income from property management minus tax 2 NAV measured as EPRA NRV – Net Reinstatement Value payable 15
Slide 16: Rental income development
Rental income development Based on reported events per end of quarter. Does not constitute a forecast; aims to demonstrate the rental income development based on all reported events; does not reflect letting targets on either vacant areas or on contracts that will expire, and where the outcome of th
Slide 17: Positive value changes on investment properties
Positive value changes on investment properties Total property portfolio value increased with 0.7% in the quarter Value changes in the investment properties increased with 273 million or 0.5% from Q3 Prime yields expected to decrease slightly from 2025 onwards Portfolio net yield NTM at 4.99% (Q3: 4
Slide 18: Financing strategy
Financing strategy Long-term structure Next steps • Low-risk asset portfolio, benefiting from a stable macro • Board will propose no dividend for 2024 to further environment, centrally located assets and low-risk improve debt and rating metrics public tenants • Continue to explore new bond issuance
Slide 19: Debt metrics
Debt metrics Leverage ratio1 and Interest coverage ratio Net debt to EBITDA2 (ICR) Continued improvement in debt metrics during the quarter Leverage ratio1 down 0.6%-points to 49.3% Interest coverage ratio (ICR LTM) up to 1.91x from 1.83x in Q3 24 • ICR Q4 isolated at 1.96x Improved Net debt to EBIT
Slide 20: Financing position end of quarter
Financing position end of quarter 2025 2026 2027 2028 Long-term financing structure in place after quarter-end Net debt1 down to 31.4 billion in Q4 After end of quarter: • Bond issuance: 3.1bn with net proceeds 2.6bn • Bank commitment: Extended credit facilities with total 20.2 bn from 1.3 years to
Slide 21: Cost of debt development
Cost of debt development ’ -in interest rate, including credit margins1 Cost of debt down from peak Stable interest rates1 going forward supported by interest hedged and fixed credit margins • Average fixed interest term 2.4 years 3.97 % • Fixed credit margins at 2.4 years NIBOR forward curve shifte
Slide 22: Closing remarks
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Slide 23: Closing remarks and outlook
Closing remarks and outlook • Positive outlook for Norwegian economy • GDP growth and stable employment • First policy rate cut expected in March 2025 • Attractive letting market fundamentals • Currently slightly slower letting activity, expected to pick up • Breakeven rents for newbuilds above mark
Slide 24: Q&A
Q&A 24
Slide 25: Next event: 1st quarter results April 2025
Next event 1st quarter results 29 April 2025 For more information see, www.entra.no/investor-relations