Olav Thon Eiendomsselskap (OLT) Q2 2024 earnings summary

Executive summary

• Profit before tax in Q2 2024 was NOK 286 million, with total value changes at NOK -254 million compared to Q2 2023.

• Equity ratio at 50% and liquidity reserves increased to NOK 7,782 million.

• Shopping center sales grew 3.1% year-over-year in Q2 and 3.9% for H1 2024.

• Rental income stable at NOK 944 million in Q2; net rental income slightly down to NOK 829 million.

Financial highlights

• Gross rental income for H1 2024 was NOK 1,902 million, up 3% from H1 2023.

• Net rental income for Q2 was NOK 829 million; H1 2024: NOK 1,694 million.

• Result before tax, value changes, and currency was NOK 523 million in Q2 2024.

• Dividend of NOK 7 per share paid in May 2024, up from NOK 6.5 in 2023.

• Fair value adjustments of investment properties in Q2 were NOK -328 million.

Outlook and guidance

• Operative results expected to remain satisfactory despite high interest rates and economic uncertainty.

• Strong market position and financial strength expected to support continued good results and investment opportunities.

• Norges Bank signals policy rate to remain at 4.5% for the near term.