Entra ASA · OSL:ENTRA
Entra ASA — Q2 2022 Earnings Presentation
21 slides from Entra ASA's earnings presentation, Jul 13, 2022
Slide 1: Q2 2022
Q2 2022 Oslo,13 July 2022
Slide 2: Agenda
Agenda Highlights in the quarter Operations and market Financial update Closing remarks Q&A 2
Slide 3: Highlights in the quarter
Highlights in the quarter Key figures: Key events in the quarter: • High letting activity, net letting of 64 million • Strong operational performance • Planning for start of two new refurbishment projects Universitetsgata 7-9 3
Slide 4: Agenda
Agenda Highlights in the quarter Operations and market Financial update Closing remarks Q&A 4
Slide 5: Letting and occupancy
Letting and occupancy • New and renewed leases of 134 million (53,900 sqm) • Terminated contracts of 35 million • Net letting of 64 million • Occupancy at 97.0 % • WAULT at 6.2 years (6.5 years incl. project portfolio) Largest new and renegotiated contracts Property Tenant Sqm Contract Schweigaards
Slide 6: Resilient cash flow from premier tenants in major Norwegian cities
Resilient cash flow from premier tenants in major Norwegian cities Large base of public tenants Rent per city Premier, well diversified tenants Proportion of total No. of 20 largest tenants Sector contractual rent properties Norwegian Tax Administration 4.3 % 4 Public Municipality of Oslo 3.9 % 11 P
Slide 7: Status ongoing projects
Status ongoing projects 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 cost of land) 3) Weighted average occupancy of the project portfolio 7
Slide 8: Market development: Rent and vacancy
Market development Rent and vacancy Market rental growth and vacancy in Oslo • Solid Norwegian economy, also benefitting from higher energy prices − Proven robust through earlier market shocks • Record high letting activity • Central Oslo market in particular have very low vacancy and limited supply
Slide 9: Market development: Transactions and yields
Market development Transactions and yields Prime yield Oslo • Transaction market holding up well despite pressure on inflation and interest rates causing more insecurity • 69 % of investors report to be net buyers of office property according to recent Malling & Co* survey • Increasing cost of finan
Slide 10: Agenda
Agenda Highlights in the quarter Operations and market Financial update Closing remarks Q&A 10
Slide 11: Key financials
Key financials NOK million Rental income Net Income from property Profit before tax management +30% +20% 781 783 800 500 433 445 700 677 639 402 392 602 400 370 600 500 300 400 300 200 200 100 100 0 0 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 11
Slide 12: Key financials per share
Key financials per share NOK per share Cash Earnings1) EPRA NRV CAGR: 11 % CAGR: 15 % 1) Annualised, rolling four quarters 12
Slide 13: Profit and loss statement
Profit and loss statement NOK million 13
Slide 14: Rental income development based on reported events
Rental income development based on reported events* NOK million * 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 the ren
Slide 15: Property value development
Property value development NOK million 15
Slide 16: Financial update
Q2-18 16 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Financing mix Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Financial update Q1-22 Q2-22 Q2-18 Q3-18 * Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 EPRA LTV and ICR Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 * Moody’s LTV definition gives LTV of 47,2
Slide 17: Interest rate development
Interest rate development 4.50 % 4.25 % 4.00 % 3.75 % • 50 % of debt portfolio hedged at fixed rate 3.50 % • 5.0 years time to maturity of hedge portfolio 3.25 % (i.e., 2.8 years for entire portfolio) 3.00 % • 2.6 years time to maturity of fixed credit margins 2.75 % 2.50 % • Limited effects of poss
Slide 18: Maturity profile
Maturity profile 20 000 18 008 15 000 • Average time to maturity of debt of 4.2 years • 3 billion of debt maturing next 12 months 10 000 9 079 • 3.2 billion of unutilised credit facilities 6 900 • Solid and transparent balance sheet with no 5 000 exotic debt instruments 2 640 1 463 650 425 470 684 -
Slide 19: Agenda
Agenda Highlights in the quarter Operations and market Financial update Closing remarks Q&A 19
Slide 20: Closing remarks and outlook
Closing remarks and outlook • Solid Norwegian economy; proven resilient through market turmoil in the past • Transaction market holding up well despite pressure on inflation and interest rates • Very active and strong letting market • Tight supply/demand balance for office space providing positive s
Slide 21: Next event
Next event 3rd quarter results 19 October 2022 For more information see www.entra.no/investor-relations