Olav Thon Eiendomsselskap (OLT) Q3 2024 earnings summary

Executive summary

• Q3 2024 profit before income tax was NOK 502 million, a significant turnaround from NOK -763 million in Q3 2023.

• Net rental income reached NOK 831 million, up from NOK 825 million year-over-year.

• Fair value adjustments in investment properties and derivatives totaled NOK 48 million, compared to NOK -1,332 million last year.

• The Group's financial position remains solid with an equity ratio of 51% and liquidity reserves of NOK 9,221 million.

• Retail sales in the shopping center portfolio increased by 1% year-over-year to NOK 14,597 million.

Financial highlights

• Rental income for Q3 was NOK 946 million, up from NOK 922 million in Q3 2023.

• Net rental income for Q3 was NOK 831 million, compared to NOK 825 million last year.

• Profit before tax, fair value adjustments, and currency result was NOK 518 million, down from NOK 541 million year-over-year.

• Net cash flow from operations in Q3 was NOK 433 million, down from NOK 531 million in Q3 2023.

• Market value of properties at quarter-end was NOK 57,052 million, with an average yield of 6.1%.

Outlook and guidance

• Norwegian economic growth remains low, but unemployment is low and wage growth is relatively high.

• Norges Bank's policy rate is expected to remain at 4.50% through the year.

• Persistent inflation and geopolitical uncertainty contribute to a cautious outlook.

• The Group expects its strong market and financial position to support continued good operating profit despite macroeconomic uncertainty.