Eiendomsspar (EISP) Q4 2024 earnings summary

Executive summary

• Value-adjusted equity per share increased 15% year-over-year to NOK 627, including dividends, driven by strong results from associated company Pandox and higher rental income and gross operating profit.

• Profit before tax rose to NOK 793 million from NOK 524 million in 2023, with improved contributions from Pandox and increased rental income.

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

• The board proposes an ordinary dividend of NOK 10.50 per share for 2024, up from NOK 10.00.

Financial highlights

• Rental income increased to NOK 1,130 million from NOK 1,055 million year-over-year.

• Gross operating profit reached NOK 1,032 million, up from NOK 971 million.

• Cash flow before tax per share was NOK 35.4, compared to NOK 33.0 in 2023.

• Value-adjusted equity (including minorities) was NOK 20,520 million, with a value-adjusted equity ratio of 59%.

• Net financial income increased due to dividends from Scandic Hotels Group and gains on interest derivatives.

Outlook and guidance

• Market expects Norges Bank to cut rates 2-3 times in 2025, with the first cut likely in March.

• 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.

• Residential prices are forecast to rise in 2025, especially in major cities, driven by low new supply and real wage growth.