Victoria Eiendom (VIEI) Q4 2025 earnings summary

Executive summary

• 2025 marked a record year for property transactions, with strong growth in rental income and pre-tax profit, driven by acquisitions, project completions, robust market demand, and gains from sales of listed shares and associated companies.

• Both Eiendomsspar and Victoria Eiendom distributed significant ordinary and extraordinary dividends, reflecting strong cash flow and value creation.

• Major strategic investments and divestments, including the Dalata Hotels Group transaction and Scandic Hotels Group AB share sale, contributed to substantial gains and portfolio optimization.

• Value-adjusted equity per share reached NOK 1,201 at year-end, a 16% increase year-over-year, including dividends.

• The board proposes an ordinary dividend of NOK 16.00 per share and distributed an extraordinary dividend of NOK 63 per share in December 2025.

Financial highlights

• Eiendomsspar's rental income rose by MNOK 140 in 2025, with pre-tax profit surging from MNOK 793 to MNOK 2,346, a 196% increase.

• Victoria Eiendom's rental income increased by MNOK 11, and pre-tax profit jumped from MNOK 244 to MNOK 1,196, up 390%.

• Group rental income for 2025 was NOK 1,551 million, up from NOK 1,398 million in 2024, mainly due to new properties, higher turnover-based rents, and CPI adjustments.

• Net financial income surged to NOK 1,424 million from NOK 213 million, mainly from realized gains on share sales.

• Both companies' share prices outperformed, with Eiendomsspar up 58% and Victoria Eiendom up 39% (including dividends).

Outlook and guidance

• The property market is expected to remain active, with continued rental growth in key segments and moderate RevPAR growth in hotels for 2026.

• The company is financially robust with significant liquidity reserves, well-positioned to handle market volatility and higher interest rates.

• Ordinary dividend proposed at NOK 16.00 per share for 2025, with continued focus on shareholder returns.

• Market outlook remains uncertain due to global economic and geopolitical factors, but moderate growth in property and rental prices is expected.

• Office rental growth is expected to continue, but vacancy rates are rising, especially in non-central areas.