Q3 2024 Entra ASA Earnings Call Transcript
Key Points
- Entra ASA (LTS:0R3Y) reported a rental income growth of 4.4% when adjusted for divestments and one-offs.
- The company's net asset value increased for the first time since Q1 2022, currently at NOK160 per share.
- Entra ASA's effective leverage is now below 50%, indicating improved debt metrics.
- The company completed a project in Sandvika Malmskriverveien 16 on time and NOK11 million below the initial project cost, achieving a yield on cost of 5.6%.
- Entra ASA achieved the highest ranking in the GRESB score with five stars and received EPRA gold level for sustainability reporting.
- Rental income for the quarter was NOK63 million below the same quarter last year due to divestments.
- The company experienced a negative net letting of NOK76 million in the quarter.
- Occupancy rate decreased to 94.4%, below the company's targets.
- The Board decided not to pay out dividends for the first half to focus on strengthening the balance sheet.
- The letting market activity slowed down in the third quarter, with a less progressed leads pipeline.
Good morning all, and welcome to Entra's third quarter presentation. Moving on directly to the highlights, NOK770 million of rental income in the quarter, that is NOK63 million below same quarter last year affected by divestments in the past year. Our rental income growth currently then at 4.4% when adjusted for divestments and oneoffs.
Net income from property management of NOK318 million in the quarter and net value changes was minus NOK164 million in the quarter due to negative value changes on financial instruments. We were pleased to see that the property valuations came out positive in the quarter.
Leaving us then with a profit before tax of NOK156 million this quarter. We have seen that our net asset value has increased in the quarter for the first time now since Q1 '22, currently at the NOK160 per share and we have continued to see improvements in our depth metrics in the quarter. Effective leverage is now below 50% and ICR in the quarter above 2.0.
We have had a negative net letting of NOK76 million in the quarter. And
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