Selvaag Bolig (SBO) Q2 2024 earnings summary

Executive summary

• Achieved highest quarterly sales value ever, with net homes sold reaching 207 and sales value of NOK 1,385 million.

• Delivered 127 homes in Q2 2024, supported by joint venture deliveries and property sales.

• Solid Q2 results with EPS of NOK 0.85, despite challenging market conditions.

• Construction costs have stabilized, enabling more sales starts.

• Dividend decision postponed due to ongoing market uncertainty; no interim dividend declared.

Financial highlights

• Q2 2024 operating revenues (IFRS) at NOK 620.2m, down from NOK 836.9m in Q2 2023; H1 2024 at NOK 1,247.9m vs NOK 1,571.1m in H1 2023.

• Adjusted EBITDA for Q2 2024 at NOK 124m (Q2 2023: NOK 95m); margin 19.9% (11.4%).

• EPS for Q2 2024 at NOK 0.85 (Q2 2023: NOK 0.55); H1 2024 at NOK 1.45 (H1 2023: NOK 1.25).

• One-off property sales contributed NOK 230m in Q2 2024.

• Book value of equity at NOK 25 per share; equity ratio 51.7%.

Outlook and guidance

• Housing shortage in Oslo and Akershus supports favorable conditions for new housing.

• Interest rates expected to fall from H2 2024, improving market conditions.

• More construction starts and increased sales of completed unsold units anticipated.

• Well positioned for market recovery with ~425 units for sale as of August 2024 and strong land bank.

• Dividend for 2024 to be assessed in February 2025 based on annual results and outlook.