Olav Thon Eiendom (OLT) Q4 2023 earnings summary

Executive summary

• Q4 pre-tax result excluding fair-value adjustments and currency result was NOK 532m, while reported pre-tax loss was NOK 1,826m, reflecting NOK 2,312m in fair-value adjustments.

• FY2023 pre-tax result excluding fair-value adjustments and currency result was NOK 2,259m; reported pre-tax loss was NOK 2,183m.

Financial highlights

• Q4 rental income rose 12.6% YoY to NOK 947m; net rental income was NOK 838m versus NOK 727m.

• FY2023 rental income was NOK 3,720m versus NOK 3,219m, and net rental income was NOK 3,361m versus NOK 2,879m.

• FY fair-value adjustments in investment properties and financial instruments totaled NOK -4,332m; investment-property values fell NOK 4,367m.

• Total assets were NOK 60,492m and equity was NOK 30,385m at year-end.

Outlook and guidance

• Solid market and financial positions are expected to support operating profit development despite higher policy rates and economic uncertainty.

• Norges Bank projected a 4.5% policy rate until autumn 2024, followed by gradual decline; weaker NOK could require higher rates, while sharper slowdown or faster disinflation could bring earlier cuts.

• 2024 forecasts included mainland GDP growth of 0.1%, registered unemployment of 2.1%, wage growth of 5.0%, CPI inflation of 4.4% and a 4.4% policy rate.