Olav Thon Eiendomsselskap (OLT) Q4 2024 earnings summary

Executive summary

• Achieved stable rental income and increased property values, resulting in strong Q4 2024 results and a profit before tax of NOK 1,262 million, reversing a loss in Q4 2023.

• Maintained a solid financial position with a 51% equity ratio and liquidity reserves of NOK 6,561 million.

• Retail sales in shopping centers grew 2–2.3% year-over-year in Q4 2024.

• The board proposes a dividend of NOK 7.25 per share for 2024.

• Marked the passing of founder Olav Thon in November 2024 at age 101.

Financial highlights

• Q4 2024 profit before tax: NOK 1,262 million (vs. -1,821 million in Q4 2023); value changes: NOK 725 million (vs. -2,310 million).

• Gross rental income Q4 2024: NOK 958 million (Q3 2024: 946); full year 2024: NOK 3,806 million (2023: 3,722).

• Net rental income for Q4: NOK 790 million (down from 843 million); for 2024: NOK 3,316 million (down from 3,366 million).

• Market value of properties at year-end: NOK 58,612 million, up from NOK 56,568 million.

• Liquidity reserves: NOK 6,561 million (Q4 2023: 5,382 million).

Outlook and guidance

• Norges Bank signals likely interest rate cuts in 2025, with 1–2 reductions expected.

• Solid market position and financial strength expected to support continued operational performance despite macroeconomic and geopolitical uncertainty.

• Low leverage and high liquidity enable pursuit of attractive investment opportunities.

• Norwegian economic growth remains low but is improving; unemployment is low and wage growth is high.