Eiendomsspar (EISP) Q4 2024 earnings summary

Executive summary

• Transaction market normalized in 2024, with buyers and sellers aligning and banks showing willingness to lend.

• Value-adjusted equity per share increased 15% year-over-year to NOK 627, driven by strong results from associated companies and higher rental income.

• Office rental growth was solid, but smaller spaces saw slower leasing; vacancy remains low.

• Retail and hotel segments experienced strong performance, with hotels seeing robust growth in occupancy and rates.

• Residential sales surged, especially in new builds, with a strong start to 2025.

Financial highlights

• Rental income increased by 7% in 2024 to NOK 1,130 million, driven by higher turnover-based hotel rents, CPI adjustments, and property acquisitions.

• Pre-tax profit rose by 51% to NOK 793 million, with significant contributions from associates and financial income.

• Cash flow per share before tax was NOK 35.4, up from NOK 33.0 in 2023.

• Dividend proposed at NOK 10.50 per share for 2024.

• Liquidity reserve at NOK 1,803 million at year-end 2024.

Outlook and guidance

• Expectation of an interest rate cut in March 2025, with a possible additional cut after summer if wage growth and NOK remain stable.

• Positive outlook for hotel bookings, with pre-bookings up 22% year-over-year, especially from Asia and the US.

• Residential market expected to remain strong due to low new supply and anticipated lower interest rates.

• Office rental prices may weaken in 2025 due to increased supply, though long-term prospects remain positive.

• Hotel market expected to see continued growth, especially in Northern Norway, supported by international tourism trends and a weak NOK.