Entra (ENTRA) Q1 2025 earnings summary

Executive summary

• Rental income for Q1 was NOK 774 million, down from NOK 878 million in Q1 2024 due to divestments, but underlying like-for-like rental growth was 2.6% year-over-year.

• Net income from property management was NOK 320 million, down 2% year-over-year, with profit before tax at NOK 280 million, a significant improvement from a loss of NOK 1,313 million in Q1 2024.

• Net asset value (NRV/EPRA NRV) increased to NOK 163 per share, up from NOK 162 in the previous quarter and up 3% year-over-year.

• Occupancy stood at 93.8%, with negative net letting of NOK 73 million due to higher terminations than new leases.

• Debt metrics improved, with average debt maturity extended to 4.0 years and leverage ratio down to 49.1%.

Financial highlights

• Rental income was NOK 774 million, down from NOK 878 million in Q1 2024 due to divestments, but flat when adjusted for the Trondheim divestment.

• Net income from property management was NOK 320 million, slightly down from NOK 325 million year-over-year.

• Profit before tax was NOK 280 million, including NOK 32 million in negative value adjustments, a marked improvement from a loss of NOK 1,331 million in Q1 2024.

• OpEx was NOK 66 million (8.5% of rental income), down from NOK 78 million year-over-year.

• Net operating income was NOK 708 million, down from NOK 799 million in Q1 2024.

Outlook and guidance

• Norwegian macroeconomic fundamentals remain strong, with expectations of two to three interest rate cuts in 2024–2025 and low unemployment.

• Rental income for Q2 is expected at NOK 771 million, slightly down from Q1, reflecting ongoing negative net letting.

• Rental growth is expected to continue, supported by limited new supply, urbanisation, and break-even rents above market rents.

• Occupancy is targeted to return to 95%, but this may take until next year.

• No dividend proposed for 2024 to support financial resilience and potential rating upgrade.