Slide 1: Q3 2024 Oslo, 17 October 2024
Mentra Q3 2024 Oslo, 17 October 2024
Slide 2: Highlights
Highlights Key figures Key events in the third quarter • Underlying rental income growth of 4.4% adjusted for divestments • Positive value changes on the property portfolio • Net asset value (EPRA NRV) increased to NOK 160 per share • Continued debt metrics improvements • Net letting of -76 million
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 28 million (13 000 sqm) • Terminated contracts of 86 million (27 700 sqm) • Net letting of -76 million • Occupancy 94.4% • WAULT at 6.3 years (6.4 years incl. project portfolio) • 52% of rental income from public sector tenants in the management port
Slide 6: Finalised newbuild Malmskriverveien 16 in Sandvika
Finalised newbuild Malmskriverveien 16 in Sandvika Newbuild, close to Sandvika train station 2 750 sqm 100% let (100% at project start) Total project cost: 164 million BREEAM-NOR Excellent Yield on cost: 5.6% (5.0% at project start)
Slide 7: Ongoing development portfolio
Ongoing development portfolio 1 Total project cost (including book value at date of investment decision/cost of land), excluding capitalized interest cost 2 Estimated net rent (fully let) at completion/total project cost (including initial value) 3 Weighted average occupancy of the project portfolio
Slide 8: Recognised for ESG performance and reporting
Recognised for ESG performance and reporting
Slide 9: Market development
Market rental growth and vacancy in Oslo Market development Norwegian economy expected to pick up • Lower interest rates and real wage growth expected to fuel private consumption, combined with increased public spending • Moderate employment growth, expected to pick up as economic activity increases
Slide 10: Market development: transaction and yields
Prime yield Oslo Market development Transaction and yields • Interest rates have topped out, inflation on a downward trend • Property values believed to have bottomed out • Prime yields expected to decrease slightly from 2025 • Financing markets open and available, tighter credit margins • Positive
Slide 11: Financial update
| (~ Financial update Jk
Slide 12: Positive results for the period
Positive results for the period • Underlying rental growth offset by divestments • Profit before tax impacted by hedge instruments value changes Rental income Net income from property management Profit/loss before tax NOK million 12
Slide 13: Stable key financials
Stable key financials NOK per share Cash Earnings1 unchanged EPRA NRV up NOK 2 per share CAGR 5 % CAGR 7 %3 1 Rolling four quarters 3 CAGR 9 % when including dividends in the period 2 Annualized Cash Earnings for Q3 isolated: 6.9 13
Slide 14: Profit and loss statement
Profit and loss statement • Rental income impacted by divestments, partly offset by high CPI and finalised projects • Operational and administrative costs in line with expectations • Financing costs trending downwards due to reduced debt following divestments and lower interest rates • Increased pro
Slide 15: 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 16: Positive value changes in property portfolio
Positive value changes in property portfolio Property value development in Q3-24 • First increase in property value since Q1 22 • Portfolio net yield currently at 4.97% • 5.71% assuming fully let at market rent • Significant value reduction from peak levels • Like-for-like property values written do
Slide 17: Continued improvements in debt metrics
Continued improvements in debt metrics EPRA LTV1 and ICR2 NIBD3/EBITDA L12M • Effective leverage1 down 0.5%-points to 49.9% • ICR2 up to 2.01x from 1.91x in Q2 24 • Improved NIBD3 / EBITDA L12M at 11.8x from 11.9x in Q2 24 1 ’ 49.9 % 2 ICR L12M 1.83x and ICR at 2.01x in Q3 24 isolated 3 Net nominal
Slide 18: Cost of debt expected to decline
Cost of debt expected to decline ’ -in interest rate, including credit margins1,2 • Cost of debt down from peak and expected to decline 4.73 % further in 2025 • Debt portfolio 68% hedged at fixed rate 4.00 % • Interest rate hedge portfolio time to maturity 3.7 years (incl. fwd. start swaps) • Fixed
Slide 19: Significant liquidity buffers available
Significant liquidity buffers available 2024 2025 2026 2027 2028 • Unchanged NIBD1 at 31.9 billion • No exotic debt instruments • Significant liquidity buffers available • 13.1 billion available liquidity per Q3 • Covers debt maturities next 7 quarters • 3.4 years average time to maturity of debt •
Slide 20: Closing remarks
| (~ Closing remarks Jk
Slide 21: Closing remarks and outlook
Closing remarks and outlook • Positive outlook for Norwegian economy • GDP and employment growth expected to pick up • First policy rate cut expected in Q1 2025 • Favorable property market fundamentals with increasing market rents and low vacancy • Limited effect from work-from-home • Low newbuild v
Slide 22: Q&A
Q&A 22
Slide 23: Next event: 4th quarter results
Next event 4th quarter results 12 February 2025 For more information see, www.entra.no/investor-relations