Public Property Invest (PUBLI) Q2 2024 earnings summary

Executive summary

• Rental income for H1 2024 was NOK 320 million, with 92% from public tenants backed by AAA-rated credit and 93% occupancy.

• Strong operational performance with NOK 10.8 million positive net letting, no contract terminations, and a low vacancy rate.

• IPO completed in April 2024, raising NOK 1.5 billion in cash proceeds, with NOK 1 billion allocated to debt repayment.

• Acquisition of 13 properties with annualized rental income of NOK 99 million, settled in shares, and transfer of SBB's Norwegian organization.

• Portfolio value at H1 2024 was NOK 9.8 billion, with prudent fair value adjustments of 22% since 2022 peak.

Financial highlights

• Net operating income (NOI) for H1 2024 was NOK 279 million, with an NOI margin of 89.4%.

• Adjusted EBITDA was NOK 263 million, excluding non-recurring IPO-related expenses.

• Cash flow from operations, excluding non-recurring IPO costs, was NOK 254 million.

• Net income from property management was NOK 129 million for H1 2024.

• EPRA earnings per share for H1 2024 was NOK 0.62; EPRA NRV per share was NOK 26.02.

Outlook and guidance

• Run rate rental income projected at NOK 692 million annually, with NOI of NOK 623 million and EBITDA of NOK 575 million.

• Guidance remains consistent with IPO projections; business described as very stable.

• Strong operational performance and liquidity post-IPO, with a robust pipeline for further growth in Norway and the Nordics.

• No further property write-downs expected; valuations seen as having bottomed, with potential for positive effects from decreasing interest rates.

• Targeting quarterly dividend payments of ~60% of cash earnings, with first dividend planned for 2025.