Public Property Invest (PUBLI) Q4 2024 earnings summary

Executive summary

• Rental income rose 26% year-over-year in Q4 2024 to NOK 177 million, with full-year rental income up 15% and net income from property management up 69% in Q4 and 21% for the year.

• Net profit for Q4 was NOK 221 million, reversing a NOK 347 million loss in Q4 2023; full-year net profit was NOK 13 million.

• Portfolio expanded to 72 properties (394,000 sqm), with 97% occupancy and 92% of income from government-backed tenants.

• Completed IPO and Oslo Børs listing, began process for secondary listing on Nasdaq Stockholm, and acquired 24 properties in 2024.

• Achieved BBB investment grade rating from Fitch, established a EUR 2 billion EMTN program, and issued a EUR 300 million bond.

Financial highlights

• Rental income for 2024 was NOK 662 million, up from NOK 575 million in 2023; net operating income for 2024 was NOK 598 million with an NOI margin of 89.9%.

• EPRA NRV per share was NOK 27.2 at year-end, up from NOK 26.2 last quarter; annualized run rate net income from property management per share increased 10% sequentially.

• Net debt at year-end was NOK 5,078 million; loan-to-value ratio at 42.6%; net debt to run rate EBITDA at 8.0x; interest coverage ratio at 2.0.

• Board proposes NOK 0.5 per share dividend for 2024, to be paid quarterly.

• Portfolio value at year-end was NOK 10.9 billion, up from NOK 8.5 billion at the start of the year.

Outlook and guidance

• Run rate rental income expected at NOK 774 million, with NOI of NOK 698 million and EBITDA of NOK 633 million.

• Four property acquisitions closing in Q1 2025 will add NOK 49 million to annual rental income; run rate rental income expected to increase by 6.3% from signed Q1 2025 transactions.

• Management expects continued growth, steady operations, and believes the market is at or near the bottom of the cycle.

• Plans for a secondary listing on Nasdaq Stockholm in H1 2025 to improve share liquidity.

• Board proposes NOK 0.50 per share dividend for 2024, paid quarterly through April 2026.