Olav Thon Eiendomsselskap (OLT) Q1 2025 earnings summary

Executive summary

• Q1 2025 pre-tax profit reached NOK 1,004 million, up from NOK 814 million year-over-year, driven by rental growth and increased property values.

• Financial position remains solid with a 52% equity ratio, 35% loan-to-value, and liquidity reserves of NOK 10,067 million.

• Shopping center turnover and visitor numbers continued to rise, with Q1 2025 turnover up 1.5% and retail sales up 2% from Q1 2024.

• Rental income for Q1 2025 was NOK 1,009 million, a 5% increase from Q1 2024.

• Fair value adjustments of investment properties totaled NOK 442 million, mainly due to rental growth.

Financial highlights

• Net rental income was NOK 918 million, up from NOK 865 million year-over-year.

• Pre-tax profit excluding value changes and currency was NOK 598 million (Q1 2024: NOK 562 million).

• Net cash flow from operations was NOK 542 million, compared to NOK 527 million in Q1 2024.

• Share price increased 14% in Q1 2025, with a 25% total return over the last 12 months.

• Market capitalization at quarter-end was NOK 26.3 billion, up from NOK 22.5 billion.

Outlook and guidance

• Solid market position and strong financials expected to support continued operational performance despite higher interest rates and macroeconomic uncertainty.

• High liquidity and low leverage provide capacity for attractive investment opportunities ahead.

• Inflation remains above target, but a policy rate cut is expected in 2025.