Victoria Eiendom (VIEI) Q4 2024 earnings summary

Executive summary

• Strong financial performance in 2024 with significant increases in rental income and pre-tax profit, including a group result before tax of NOK 803 million, mainly due to improved results from Pandox, higher rental income, and better gross operating profit.

• Value-adjusted equity per share reached NOK 1,100 as of 31.12.2024, a 15% increase year-over-year, including dividends.

• The board proposes an ordinary dividend of NOK 15.00 per share for 2024, up from NOK 13.00.

• Real estate market normalized with active transaction volume and robust demand in office, hotel, and residential segments.

• Notable investments and acquisitions in hotels and logistics properties, and continued focus on sustainability and energy efficiency.

Financial highlights

• Group rental income was NOK 1,398 million in 2024, up from NOK 1,292 million in 2023; Eiendomsspar rental income up 7% to MNOK 1,130; Victoria Eiendom rental income up 14% to MNOK 269.

• Group result before tax was NOK 803 million (NOK 260 million in 2023); Eiendomsspar pre-tax profit up 51% to MNOK 793; Victoria Eiendom pre-tax profit up 38% to MNOK 244.

• Value-adjusted equity for the group was NOK 13,081 million, with an 80% equity ratio.

• Cash flow before tax per share (Victoria Eiendom excl. Eiendomsspar) was NOK 25.6, up from NOK 19.8.

• Liquidity reserves: MNOK 1,803 for Eiendomsspar, MNOK 381 for Victoria Eiendom.

Outlook and guidance

• Market expects Norges Bank to cut rates 2-3 times in 2025, with the first cut likely in March.

• Positive outlook for hotel and residential markets, with strong pre-bookings and robust new home sales, especially in Northern Norway.

• Rental prices for offices and residential expected to rise due to limited supply and high demand, though office rental prices may weaken in 2025 due to increased supply.

• Uncertainty remains due to global macro factors, Norwegian elections, and ESG regulations.

• Solid financial position and liquidity reserve position the company well for future opportunities.