Aurora Eiendom AS

Annual Report • Feb 16, 2024

Q4 ²⁰²³ REPORT

HIGHLIGHTS AND SUMMARY	06
LETTER FROM THE CEO	08
KEY FIGURES	10
THE REAL ESTATE PORTFOLIO	12
DEVELOPMENT PROJECTS	13
SUSTAINABILITY IN AURORA EIENDOM	16
FINANCIAL DEVELOPMENTS	17
CONSOLIDATED STATEMENT OF PROFIT OR LOSS	22
NOTES	28
ALTERNATIVE PERFORMANCE MEASURES & EPRA REPORTING	32
GLOSSARY	39

AURORA EIENDOM Q4 2023 REPORT

Table of content

• • Rental income in Q4 was NOK 146 million (NOK 139 million), which corresponds to a like-for like growth of 5 %. The increase can mostly be attributed CPI growth.
• • Full year rental income totaled NOK 575 million (NOK 448 million)
• • Aurora Eiendom acquired three shopping centers during 2022 (Alti Buskerud in March, as well as Gulskogen Senter and Arkaden Senter in July). The increase in rental income thus primarily comes from a larger property portfolio.
• Net income from property management was NOK 120 million in the quarter (NOK 116 million)
• • For the year 2023 net income from property management was NOK 477 million (NOK 378 million)
• In Q4, new leases were started on a total area of 8 638 sqm, while leases for 6 957 sqm expired. Occupancy* is 97.7 % by year-end.
• The quarter´s gross tenant turnover in our fully owned centers was NOK 2 742 million, which is a like-for-like growth of 3.4 % compared to Q4 2022.
• • In 2023, like-for-like growth in gross tenant turnover was 4,6 % compared to 2022.
• • During the year 2023 Alti Forvaltning increased its shopping center portfolio by seven centers, now managing a total of 45 centers in across Norway.

*Occupancy: market rent of leased areas divided by estimated market rent of the whole portfolio

HIGHLIGHTS AND SUMMARY OF THE

Fourth quarter of 2023

Gross rental income

Value of investment properties (NOK million)

Year end on a high note

While the shopping centers performed well in the first three quarters, despite rising interest rates and reduced purchasing power among customers, we entered the retail sector's most critical quarter with anticipation. We are now delighted to reflect on robust sales achievements and a holiday season that exceeded the previous year's results.

The fourth quarter concluded with a tenant turnover growth of 3.4 %, with December marking a 1.9 % uplift. This demonstrates that, despite a reduction in spending on big-ticket items, consumers continue to cherish and prioritize the small pleasures of daily life—a core aspect of what our shopping centers provide. We gather for coffee, dress up for parties, and indulge in the latest electronic gadgets.

CEO

For the year as a whole, the wholly owned shopping center portfolio achieved a total tenant turnover of NOK 8.8 billion, making a 4.6 % rise from 2022. Every center within our portfolio experienced an increase, notably Alti Amanda and Alti Nerstranda, which approached double-digit growth. These results not only exceed the market average but also underscore our satisfaction with the vibrant activity across our centers throughout the year.

In the previous quarterly report, we were proud to announce our accolade from EPRA for our sustainability reporting. This quarter, we're seeing the fruitful outcomes of our dedication through the BREEAM In-Use certification process. Embarking on this journey with lofty goals, we're thrilled to report that our project team has not just achieved but surpassed our expectations. Of the seven Lars Ove Løseth

certifications on our properties received so far, two have been awarded the "Very Good" rating, three have achieved "Excellent", and two have reached the pinnacle of "Outstanding". The finalization of the remaining two certifications is anticipated early in 2024.

Over the last six months, we have focused on refinancing loans that are maturing this upcoming summer. We are pleased to report the successful refinancing of one loan and are engaged in positive discussions with banks regarding the second loan, with an expectation that refinancing will be in place during Q1 2024.

We are witnessing an encouraging trend across our shopping centers, marked by increasing sales and visitor numbers, sparking heightened interest in business establishments within our spaces. Throughout the past year, we've welcomed an array of new concepts, leading to a high occupancy rate with very few commercial spaces left available. Despite the challenges posed by increasing financial costs impacting our results and liquidity, the strong performance momentum of our shopping centers fills us with optimism for the new year. We look forward to embracing new opportunities and further elevating our shopping center portfolio.

Key figures

Group Key Figures		Q4 2023	Q4 2022	2023	2022	2021
Rental Income	NOK		145 619 416 138 715 629	574 831 016	447 915 298	158 043 738
Net income from property management	NOK		119 665 152 116 309 335	476 734 706	377 828 438	129 008 000
				31.12.2023	31.12.2022	31.12.2021
Market value of property portfolio	NOK				8 417 600 000 8 813 000 000 5 222 900 000
Net interest bearing debt*	NOK				4 538 019 382 4 681 651 166 2 377 271 564
Outstanding shares				30 962 431	30 962 431	20 550 400
Equity per share	NOK			125.2	130.5	130.7
Alternative performance measures*				31.12.2023	31.12.2022	31.12.2021
Interest coverage ratio				1.9	2.2	3.2
Loan to Value (LTV)	%			53.9	53.1	45.5
EPRA NRV per share	NOK			127	135	139
EPRA NTA per share	NOK			124	130	135
EPRA NDV per share	NOK			125	131	131
EPRA Net Initial Yield	%			6.26	5.76	5.36
EPRA Topped-Up Net Initial Yield	%			6.36	5.85	5.53
Fully Let Net Yield	%			6.53	6.01	5.64
EPRA Vacancy Rate	%			2.3	2.2	1.8

* See Alternative Performance Measures for details.

Leasing activity

Leases started / ended		Q4 2023	2023	2022
Total area leases started	sqm	8 638	17 476	8 786
Total area leases expired	sqm	6 957	15 020	6 510
Net area leased	sqm	1 681	2 455	2 276
Net area leased	%	0.8	1.2	1.1
Leases extended		Q4 2023	2023	2022
Total area	sqm	5 665	21 378	24 743
Total area	%	2.9	10.8	12.3

Leases extended are defined as new or extended lease contracts with the same tenant on the same area. All other lease contracts are defined as leases started.

Leasing portfolio summary and leasing activity key figures do not include Jærhagen Kjøpesenter or Maxi Storsenter.

Leasing portfolio summary		31.12.2023	31.12.2022
Properties fully owned	#	8	8
GLA	sqm	198 654	202 323
Occupancy*	%	97.7	97.8
WAULT	year	3.5	3.3
Annualised cash passing rental income**	MNOK	596 977	576 207

* Occupancy; market rent of leased areas divided by estimated market rent of the whole portfolio ** Consumer price index adjusted to rental income per 01.01.2023 and 01.01.2024

Change in GLA could be as a result of acquisition, sale or development of properties, or redefinition of areas from or to common areas or non-lettable areas.

EPRA earnings per share (NOK)

Properties fully owned
gla
Occupancy*
WAULT
Annualised cash passing rental incom

AURORA EIENDOM GROUP

Real estate portfolio

Shopping center portfolio

Associated companies

Alti Amanda Haugesund 100 %

Alti Vinterbro Ås 100 %

Alti Forvaltning Surnadal 50 %

Alti Farmandstredet Tønsberg 100 %

Gulskogen Senter Drammen 100 %

Jærhagen Kjøpesenter Kleppe 10 %

Alti Buskerud Krokstadelva 100 %

Arkaden Senter Stavanger 100 %

Maxi Storsenter Hamar 25 %

Alti Nordbyen Larvik 100 %

Alti Nerstranda Tromsø 100 %

Key figures

198 654 sqm

NOK 8.8bn

NOK

8.4bn

Gross lettable area Annualised cash passing rental income Tenant turnover Portfolio value

Development projects

Hovlandparken, Larvik

At Hovland in Larvik, we have under development approx. 800 housing units on the "old Hovland Trotting Track", combined with retail areas. This is planned to become a residential area just outside the center of Larvik, with Alti Nordbyen as one of the closest neighbours. Planning initiatives politically processed, zoning plan proposal work commenced.

Elveparken, Krokstadelva

At Krokstad in Drammen, we have under development approx. 550 housing units with shoreline to the Drammen river. We are developing what will become a new residential area in Drammen next to Alti Buskerud. Part of the land lot will be developed to retail. Planning initiative submitted.

8 820 Alti Buskerud 1 177 1 219 8 436 Alti Farmandstredet 1 460 1 544 8 176 7 915 Alti Nerstranda 458 503 3.3 % 3.3 % Alti Nordbyen 602 616 Alti Vinterbro 1 666 1 684 1.9 % Arkaden Senter 336 355 Gulskogen Senter 1 615 1 665	% 9.9 %	4.6 %
	3.6 % 5.8 %
	9.8 % 2.4 %
	1.1 % 5.5 %
2020 2021 2022 2023 Total 8 436 8 821	3.1 % 4.6 %

* Gross turnover tenants Alti Amanda and Arkaden Senter includes Coop OBS! & Coop Extra which are not owned by Aurora. Gross turnover tenants Alti Vinterbro includes adjacent big-box retailers not owned by Aurora.

Tenant turnover Q4 2023

Tenant turnover 2023

• We observe that we had very strong figures for November, and the trend is that Christmas shopping is spreading more across November and is not as concentrated for December as before.

• • Aurora's center portfolio had a turnover increase of 4.6 % in 2023
• • For Q4 alone tenant turnover was up 3.4 %
• • December 2023 had a growth of 1.9 % compared to December 2022
• delivering double-digit percentage growth.
• perfumeries experienced significant growth.
• • A few categories experienced setbacks (housing/ home, kiosks and sports)

• All centers deliver positive figures in 2023 and Alti Amanda and Alti Nerstranda are both decimals away from

• Many categories saw good turnover figures, but especially stores within health food, pharmacies, and

Sustainability in Aurora Eiendom

• Alti Vinterbro became the first shopping center in our portfolio to establish solar panels on the roof. The solar panels are expected to produce over 1.1 GWh renewable electricity per year, covering over 20 % of the whole buildings annual energy consumption.
• The process of getting our shopping centers BREEAM In-Use (BIU) certified is near complete, with 7 out of 9 assets receiving their certificate in December. Of the 7 certificates we have received, 2 were at the level "Very Good", 3 at the level "Excellent" and 2 at the highest level "Outstanding". The remaining two certificates will be completed early in 2024.
• Alti Buskerud, one of the shopping centers with the BIU level "Outstanding" holds as of the end of 2023 the highest BIU score in the country, at 93.5 %.
• All shopping centers have gone through an energy efficiency screening, and gotten their energy performance certificate (EPC) updated where needed. Based on the screening and the EPC, measures to improve the buildings energy efficiency will be part of the upcoming budget process.

Financial developments

Rental income

Gross rental income in the quarter was NOK 145.6 million (NOK 138.7 million). For 2023, gross rental income amounted to NOK 574.8 million (NOK 447.9 million). In 2022, Aurora Eiendom acquired three shopping centers (Alti Buskerud in March, as well as Gulskogen and Arkaden in July). Consequently, the contribution from these three centers is not on a full-year basis in 2022, while the 2023 figures include the entire portfolio. Furthermore, the increase from Q4 2022 to Q4 2023 can mainly be attributed to increased minimum rents due to CPI- adjustments. I addition, we observe a stable development in the level of rent in new and extended contracts, as well as the occupancy rate.

Property related operational expenses and administrative expenses

Property related operational expenses consist of owner´s share of common costs, maintenance, leasehold insurance, and other direct property cost. These amounted to NOK 17.7 million for the quarter (NOK 11.9 million), and NOK 62.9 million (NOK 36.9 million) for the full year. Please see note 5 for further information.

Administrative expenses were NOK 7.0 million (NOK 6.8 million). This represents the fee paid to Alti Forvaltning AS for managing the eight shopping centers in the Aurora portfolio. Alti Forvaltning AS provides management services to the parent company Aurora Eiendom AS, and the cost of this is included in the management fee. Administrative expenses were NOK 28.4 million (NOK 22.6 million) in 2023.

Other operating income and expenses

Other operating income and expenses consists of income and expenses not related to the properties, such as provision and consultancy and auditing fees. These costs amounted to NOK 1.3 million in the quarter/ NOK 6.8 million full year (NOK 3.9 million / NOK 10.8 million). In 2022, these costs included one-off costs incurred as part of the acquisition of new shopping centers.

Net income from property management

Net income from property management amounted to NOK 119.7 million in Q4 (NOK 116.3 million), and NOK 476.7 million in 2023 (NOK 377.8 million).

Fair value adjustments of investment properties

The fair value of the investment properties was adjusted with NOK -179.3 million this quarter, and in total NOK -461.9 million in 2023. The Group´s investment property portfolio consists of eight 100% owned shopping centers and each individual property is valued by the external appraiser Cushman & Wakefield Realkapital on a quarterly basis. The three main drivers of value in the external assessments are valuation yield, market rent, and long-term inflation expectations. We observe that the primary reason for write-downs is the increase in valuation yield.

Financial instrument	Principal amount	Remaining term in years	Swap rate	Start date	Maturity date
Interest rate swap 1	392 000 000	7.8	1.883 %	01.10.2021	01.10.2031
Interest rate swap 2	250 000 000	7.8	1.696 %	17.12.2021	01.10.2031
Interest rate swap 3	139 989 735	7.8	2.050 %	13.10.2021	01.10.2031
Interest rate swap 4	139 296 927	7.8	1.990 %	03.01.2022	01.10.2031
Interest rate swap 5	112 020 535	7.8	2.050 %	03.01.2022	01.10.2031
Interest rate swap 6	110 000 000	7.8	2.135 %	01.10.2021	01.10.2031
Interest rate swap 7	90 000 000	8.0	1.725 %	03.01.2022	02.01.2032
Interest rate swap 8	90 000 000	8.0	1.715 %	03.01.2022	02.01.2032
Interest rate swap 9	88 026 496	8.0	1.884 %	03.01.2022	02.01.2032
Interest rate swap 10	70 000 000	8.2	1.715 %	09.03.2022	09.03.2032
Interest rate swap 11	500 000 000	1.8	2.710 %	30.09.2022	30.09.2025
Interest rate swap 12	150 000 000	0.8	2.640 %	30.09.2022	30.09.2024
	2 131 333 693		2.129 %
Swaption 1	500 000 000		2.710 %	30.09.2025	30.09.2030
Swaption 2	150 000 000		2.640 %	30.09.2024	30.09.2029

Swaption 1 and 2 are based on agreement that the bank has an option, but no obligation, to prolong interest rate swap 11 and 12 for additional 5 years. The exercise of the option is based on the bank's decision alone, and must be communicated to Aurora before the maturity date of the intial interest rate swaps.

The portfolio was valued at a weighted valuation yield of 5.89% in December 2022. By year-end 2023 the weighted valuation yield had increased to 6.45 %. Expectations for market rent are positive. Furthermore, there has been a shift in long-term inflation expectations towards lower levels than previously, affecting the valuation negatively.

Share of results from associated companies

Aurora Eiendom AS has three associated companies:

• Alti Forvaltning AS owned 50 %.
• 10 % indirect ownership in Jærhagen through JHG Invest AS.
• 25 % of Hamar Storsenter Holding AS.

The Group's share of profit in these companies amounted to NOK 2.1 million in Q4 and a full-year total of NOK 8.0 million in 2023. This figure includes amortisation of NOK 1.3 million of the excess book value on the shares in Alti Forvaltning per quarter (NOK 5.2 million full-year).

Interest-swap agreements

Financial income

Financial income is mainly interests on cash. In Q4 2023 the financial income also includes a one-off gain on financial items in connection with settlement of liabilities.

Fair value adjustments on interest rate derivatives

Aurora Eiendom AS has twelve swap agreements and two swaptions.

Market value and position of the interest swap agreements amounted to NOK 141.0 million by the end of the quarter. The market value of the swaptions amounted to NOK -9.0 million. The fair value of interest rate derivatives was adjusted with NOK - 91 million from Q3 to Q4 2023, and with NOK 4.7 million from Q4 2022. The adjustment is a result of change in long term interest rates.

Financial expenses

Financial expenses, net of positive cash flow from swap agreements, amounted to NOK 70.4 million in the quarter (NOK 65.3 million). The expenses are mainly related to interest and fees on interest-bearing debt. Financial expenses are recognised using the amortised cost method. For the year 2023 financial expenses amounted to NOK 269 million (NOK 178 million). The increase is due to both higher levels of debt as a result of the acquisitions in 2022 as well as the rise in market interest rates during 2023.

Summary

Q4 2023 profit before income tax excluding fair value adjustments of investment properties and interest rate derivatives was NOK 69.1 million (NOK 76.6 million). For 2023 pre-tax profit excluding fair value adjustments was NOK 243.4 million (NOK 228.2 million).

Interest-bearing debt was NOK 4 709 million (amortised) at the end of the year (NOK 4 717 million in nominal amounts). Nominal value of debt hedged: 45 % per 31.12.2023. The equity totaled NOK 3 876 million (43 %).

Financing

The Group´s debt portfolio consists of long-term and short-term debt with Scandinavian banks. The average remaining term for the debt portfolio is 0.9 years. The proportion of bank loans maturing within 12 months is classified as short-term. In Q4 Aurora Eiendom refinanced Bank Loan 2 in a new three-year facility and a seller´s credit of NOK 200 m was repaid during the quarter.

Composition and repayment profile of the Group´s interest-bearing debt

Aurora Eiendom has a total nominal debt maturity of NOK 3 033 million in 2024. This represents the maturity of Bank Loan 1. This loan is expected to be extended into a new long-term debt facility involving the same banks currently financing Aurora, during Q1 2024. The Group´s investment properties are pledged as security for the bank loans.

The Group's bank loans incorporate financial covenants related to minimum liquidity, loan-to-value and interest coverage ratio. Aurora Eiendom was in compliance with conditions in the credit agreements as of 31.12.2023.

Cash flow and liquidity

Net cash flow from operating activities was NOK 20.2 million (NOK -9.7 million). Net cash flow from investments was NOK -15.5 million (NOK –10.78 million) and net cash flow from financing activities was NOK -197.3 million (NOK -11.5 million).

The net change in cash and cash equivalents was NOK -192.6 million (NOK -31.9 million), and cash and cash equivalents at the end of the period were NOK 179 million (NOK 327 million). Based on the desire to maintain a healthy cash position going into 2024, it is not proposed to pay dividends for 2023.

		Repayment profile
(NOK million)	Nominal amount 31.12.2023	2024	2025	2026	Total
Bank loan 1	3 033	3033	0	0	3 033
Bank loan 2	280	8	8	264	280
Bank loan 3	1 404	44	1360	0	1 404
Total long-term debt	4 717	3 085	1 368	264	4 717

The bank loans have a weighted average credit margin of 2.14 % over 3 month NIBOR.

For Q4 2023 pre-tax profit, including fair value adjustments of investment properties and interest rate derivatives, was NOK -200.6 million (NOK -19.3 million). Full-year figures show a pre-tax profit of NOK -213.9 million (NOK 470.0 million).

Fair-value adjustments on investment properties amounted to NOK -461.9 million and on financial derivatives NOK 4.7 million.

Balance sheet

The Group´s assets amounted to NOK 8 953 million (NOK 9 473 million) Of this, investment properties amounted to NOK 8 418 million (NOK 8 813 million).

The following chart illustrates the contribution of factors such as portfolio growth and increased financial costs on pre-tax profit in 2022 vs 2023

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	Note	Q4 2023	Q4 2022	YTD 2023	YTD 2022
Aurora Eiendom
Rental income		145 619 416	138 715 629	574 831 016	447 915 298
Property-related operational expenses	5	-17 744 558	-11 854 085	-62 946 991	-36 869 249
Net rental income		127 874 858	126 861 544	511 884 025	411 046 049
Other income		14 522	146 518	48 114	182 845
Other operating expenses	5	-1 247 377	-3 883 731	-6 806 279	-10 830 266
Administrative expenses	5	-6 976 851	-6 814 996	-28 391 154	-22 570 190
Net income from property management		119 665 152	116 309 335	476 734 706	377 828 438
Fair value adjustment, investment property	2, 3	-179 275 406	-64 738 315	-461 940 688	105 770 125
Share of profit from JV and associates		2 136 179	16 908 862	8 024 932	19 582 471
Operating profit		-57 474 075	68 479 882	22 818 950	503 181 034
Financial income		17 761 622	8 687 078	27 731 484	8 863 984
Fair value adjustments, interest rate derivatives	2, 4	-90 500 026	-31 100 647	4 678 470	136 059 830
Financial expenses		-70 425 494	-65 341 230	-269 123 511	-178 092 948
Net financial items		-143 163 898	-87 754 799	-236 713 557	-33 169 134
Profit before income tax		-200 637 973	-19 274 918	-213 894 607	470 011 900
Change in deferred tax		52 827 445	14 627 099	75 336 139	-80 404 072
Income tax payable		-7 810 206	-10 386 617	-27 402 440	-26 389 317
Income tax		45 017 239	4 240 482	47 933 699	-106 793 389
Profit		-155 620 734	-15 034 436	-165 960 908	363 218 511

Other Comprehensive income

Note	Q4 2023	Q4 2022	YTD 2023	YTD 2022
Other Comprehensive income
Items to be reclassified to P&L in subsequent periods:
Currency translation differences from foreign operations
Hedging of net investment in foreign operations
Income taxes on other comprehensive income
Total comprehensive income for the period/year	-155 620 734	-15 034 436	-165 960 908	363 218 511
Profit attributable to:
Shareholders of the parent	-155 620 734	-15 034 436	-165 960 908	363 218 511
Total comprehensive income attributable to:
Equity holders of the Company	-155 620 734	-15 034 436	-165 960 908	363 218 511
Basic = diluted earnings per share	-5.03	-0.49	-5.36	13.36

Profit attributable to:

Total comprehensive income attributable to:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

CONSOLIDATED BALANCE SHEET – ASSETS

	Note	31.12.2023	31.12.2022
Non-current assets
Investment properties	3	8 417 600 000	8 813 000 000
Investment in joint ventures and associated companies		144 331 464	136 306 532
Receivables		11 300 509	6 795 922
Derivative financial instruments	4	141 030 143	143 629 940
Total non-current assets		8 714 262 115	9 099 732 394
Current assets
Trade receivables	4	15 703 118	8 461 847
Other current asset		44 319 853	37 298 920
Cash and cash equivalents	4	178 985 292	327 025 464
Total current assets		239 008 263	372 786 231
Total assets		8 953 270 378	9 472 518 625

CONSOLIDATED BALANCE SHEET – EQUITY & LIABILITIES

Long-term liabilities

	Note	31.12.2023	31.12.2022
Equity
Share capital		2 322 182 325	2 322 182 325
Share premium		703 763 154	703 763 154
Retained earnings		850 052 680	1 016 013 587
Total equity		3 875 998 159	4 041 959 066
Long-term liabilities
Loans	4	1 523 310 296	4 635 945 456
Derivative financial instruments	4	8 972 169	16 280 702
Lease liabilities		9 954 254	10 650 491
Deferred tax liabilities		175 076 237	250 412 376
Total long-term liabilities		1 717 312 956	4 913 289 025
Short-term liabilities
Loans	4	3 185 922 770	359 543 176
Income tax payable		27 402 440	35 286 318
Trade payables	4	40 118 164	22 916 574
Current lease liabilities		696 237	1 109 889
Other current liabilities		105 819 652	98 414 576
Total short-term liabilities		3 359 959 263	517 270 533
Total liabilities		5 077 272 219	5 430 559 559
Total liabilities and shareholders' equity		8 953 270 378	9 472 518 625

Short-term liabilities

CHANGES IN EQUITY

	Share capital		Share premium Retained earnings	Total equity
Equity 31.12.2021	1 541 280 000	492 656 586	652 795 077	2 686 731 663
Share issue	780 902 325	219 099 726	-	1 000 002 051
Transaction cost equity issue net of tax	-	-7 993 158	-	-7 993 158
Profit for period	-	-	363 218 510	363 218 510
Equity 31.12.2022	2 322 182 325	703 763 154	1 016 013 587	4 041 959 066
Profit for period	-	-	-165 960 908	-165 960 908
Equity 31.12.2023	2 322 182 325	703 763 154	850 052 679	3 875 998 159

STATEMENT OF CASH FLOWS

	Q4 2023	Q4 2022	YTD Q4 2023	YTD Q4 2022
Profit before tax	-200 637 973	-19 274 917	-213 894 607	470 011 899
Income tax paid	-17 606 092	-23 561 936	-35 286 318	-23 561 936
Net expensed interest and fees on loans and leases	70 022 451	64 997 825	268 720 468	177 749 543
Net interest and fees paid on loans and leases	-69 264 315	-54 795 259	-257 581 763	-153 779 450
Share of profit from associates and jointly controlled entities	-2 136 179	-16 908 862	-8 024 932	-19 582 471
Changes in value of investment properties	179 275 406	64 738 315	461 940 688	-105 770 125
Changes in value of financial instruments	90 500 026	31 100 647	-4 678 470	-136 059 830
Change in working capital	-29 960 774	-56 014 649	84 296	436 594
Net cash flow from operating activities	20 192 550	-9 718 836	211 279 362	209 444 225
Acquisitions of investment properties	-	-4 429 734		- -3 428 414 590
Investment in and upgrades of investment properties	-15 475 406	-2 538 315	-66 540 689	-42 831 193
Net payment of loans to associates and JVs	-	-3 750 000	-	-3 750 000
Investments in associates and JVs	-		-5 000 000	-31 250 000
Dividends from associates and JVs	-		5 000 000	4 250 000
Net cash flow from investment acitivities	-15 475 406	-10 718 049		-66 540 689 -3 501 995 783
Proceeds interest bearing debt	280 000 000	-	280 000 000	2 420 000 000
Repayment interest bearing debt	-477 011 630	-11 025 000	-571 671 956	-77 310 000
Repayment of lease liabilities	-292 003	-469 903	-1 106 889	-1 582 456
Proceeds from issue of shares/repurchase of shares	-		-	989 754 412
Net cash flow from financing activities	-197 303 633	-11 494 903	-292 778 845	3 330 861 956
Change in cash and cash equivalents	-192 586 489	-31 931 788	-148 040 172	38 310 398
Cash and cash equivalents at beginning of period	371 571 781	358 957 252	327 025 464	288 715 066
Cash and cash equivalents at end of period	178 985 292	327 025 464	178 985 292	327 025 464

2 FAIR VALUE

Notes

1	ACCOUNTING PRINCIPLES

INVESTMENT PROPERTIES 3

FINANCIAL ASSETS AND LIABILITIES 4

COSTS 5

NOTE 3 – INVESTMENT PROPERTIES

NOTE 1 – ACCOUNTING PRINCIPLES

The financial statements for Q4-2023 have been prepared in accordance with IAS 34 Interim Financial Reporting. The accounting principles that have been used are described in the annual report of 2022. The interim financial statements for Q4-2023 have not been audited.

NOTE 2 – FAIR VALUE

Fair value hierarchy:
Level 1: Quoted (unadjusted) prices in active markets for identical assets and liabilities. Level 2: Other techniques where all of the parameters that have a significant impact on measuring fair value are either directly or indirectly observable. Level 3: Valuation techniques that use parameters that significantly affect the valuation, but which are not observable.
Aurora Eiendom AS has the following assets and liabilities measured at fair value	Level
Investment properties	3
Derivatives	2

Investment properties are valued at fair value (Level 3) based on independent external valuations. Latest valuation was carried out on 31st of December 2023.

Changes in fair value are recognised as through profit and loss.

	Q4 2023	Q4 2022	2023	2022
Opening balance	8 581 400 000	8 875 200 000	8 813 000 000	5 222 900 000
Additions from acquisitions	0	0	0	3 441 498 682
Investment in the property portfolio	15 475 406	2 538 315	66 540 688	42 831 193
Net gain/loss on changes in fair value	(179 275 406)	(64 738 315)	(461 940 688)	105 770 125
Closing balance	8 417 600 000	8 813 000 000	8 417 600 000	8 813 000 000

NOTE 4 – FINANCIAL ASSETS AND FINANCIAL LIABILITIES

ASSETS AND LIABILITIES - FAIR VALUE

The Group uses derivatives to manage its interest rate risk. The financial derivatives are measured at fair value (Level 2) through profit and loss.

ASSETS AND LIABILITIES - AMORTISED COST

The following of the financial assets and liabilities are measured at amortised cost.

Financial assets measured at fair value	31.12.2023	31.12.2022
Derivatives	141 030 143	143 629 940
Financial liabilities measured at fair value	31.12.2023	30.09.2022
Derivatives	8 972 169	16 280 702

Assets	31.12.2023	31.12.2022
Accounts receivable	15 703 118	8 461 847
Cash and cash equivalents	178 985 292	327 025 464
Total Financial assets	194 688 410	335 487 311
Liabilities	31.12.2023	31.12.2022
Bank Loan 1	3 028 145 412	3 085 508 987
Bank Loan 2	279 920 078	265 897 861
Bank Loan 3	1 401 167 576	1 444 081 784
Seller's credit	0	200 000 000
Trade payables	40 118 164	22 916 574
Total financial liabilities	4 749 351 230	5 018 405 206

NOTE 5 – COSTS

Administrative expenses represent the management fee paid to Alti Forvaltning AS for management of the shopping center portfolio. Alti Forvaltning AS provides management services for the parent company Aurora Eiendom AS, the cost of which is included in the management fee. Board remuneration is paid and invoiced by Alti Forvaltning AS and is thus classified under "Administrative expenses" by the Company.

OTHER COSTS

Expenses directly related to the operation of existing properties are presented as real estate related costs.

REAL ESTATE RELATED COSTS

Operating costs	Q4 2023	Q4 2022	2023	2022
Maintenance	7 747 345	3 653 750	26 550 111	8 167 416
Leasehold and property insurance	1 377 904	1 544 659	5 696 372	5 085 641
Other expenses / direct property costs	8 619 309	8 194 865	30 700 508	23 616 192
Sum	17 744 558	13 393 274	62 946 991	36 869 249

Other operating expenses	Q4 2023	Q4 2022	2023	2022
Advertising	-	-	-	175 884
Consultancy fees and external personnel	601 998	561 407	1 824 194	3 655 320
Other operating costs	645 379	3 322 324	4 982 085	6 999 062
Total operating expenses	1 247 377	3 883 731	6 806 279	10 830 266
Administrative expenses	Q4 2023	Q4 2022	2023	2022
Administrative expenses	6 976 851	6 814 996	27 342 189	21 532 790
Board remuneration	-	-	1 048 965	1 037 400
Total	6 976 851	6 814 996	28 391 154	22 570 190

Aurora Eiendom's Alternative performance measures and EPRA reporting

AURORA EIENDOM'S ALTERNATIVE PERFORMANCE MEASURES ARE

• 1. Debt ratio Loan to value (LTV)
• 2. Interest Coverage Ratio
• 3. EPRA Performance Measures
• A. EPRA Earnings EPRA Earnings per share (EPS)
• B. EPRA Net Asset Value metrics EPRA Net Reinstatement Value (NRV) EPRA Net Tangible Assets (NTA) EPRA Net Disposal Value (NDV)
• C. EPRA Net Initial Yield EPRA Topped-Up Net Initial Yield
• D. EPRA Vacancy Rate

Aurora Eiendom AS' financial reporting is prepared in accordance with IFRS. As a supplement to the financial statements, the company reports alternative performance measures. These are intended to be a supplement to the financial statements, to enhance the understanding of the Group's performance.

EPRA metrics are presented in accordance with the best practices defined by the European Public Real Estate Association BPR 2022.

1. DEBT RATIO – LOAN TO VALUE (LTV)

2. INTEREST COVERAGE RATIO (ICR)

Loan to Value (LTV)	31.12.2023	31.12.2022
Fair value of investment properties	8 417 600 000	8 813 000 000
Nominal interest- bearing debt	4 717 004 674	5 008 676 630
Cash and bank deposits	178 985 292	327 025 464
Net interest-bearing debt	4 538 019 382	4 681 651 166
Loan to value	53.9 %	53.1 %

	Q4 2023	Q4 2022	2023	2022
Net income from property management	119 662 152	116 309 335	476 734 706	377 828 348
Financial expenses*	67 662 634	56 654 152	256 390 787	169 228 964
Interest coverage ratio	1.8	2.1	1.9	2.2

* Financial expeneses = amortised interests less interest income for the period.

3. EPRA PERFORMANCE MEASURES

		Unit	Q4 2023	Q4 2022	2023	2022	2021
	A EPRA earnings per share (EPS)	NOK	1.77	1.93	6.16	6.42	6.37
	B EPRA NRV per share	NOK	127	135	127	135	139
	EPRA NTA per share	NOK	124	130	124	130	135
	EPRA NDV per share	NOK	125	131	125	131	131
C	EPRA Net Initial Yield	%	6.26	5.76	6.26	5.76	5.36
	EPRA Topped-Up Net Initial Yield	%	6.36	5.85	6.36	5.85	5.53
	D EPRA Vacancy Rate	%	2.3	2.2	2.3	2.2	1.8

A. EPRA EARNINGS QUARTERLY		Q4 2023
All amounts in NOK million	IFRS reported	EPRA adjustments	EPRA Earnings
Rental income	146		146
Operating costs	-18		-18
Net operating income	128	0	128
Other revenue	0		0
Other costs	-1		-1
Administrative costs	-7		-7
Share of profit from associates and JVs	2		2
Net realised financials	-53		-53
Net income	69	0	69
Changes in value of investment properties	-179	179	0
Changes in value of financial instruments	-91	91	0
Profit before tax / EPRA Earnings before tax	-201	270	69
Tax payable	-8		-8
Change in deferred tax	53	-59	-7
Profit for period / EPRA Earnings	-156	210	55
Average outstanding shares (million)			31.0
EPRA Earnings per share (NOK)			1.77

EPRA Earnings is a measure of operational performance and represents the net income generated from the company's operational activities.

3. EPRA PERFORMANCE MEASURES

A. EPRA EARNINGS YEARLY		2023
All amounts in NOK million	IFRS reported	EPRA adjustments	EPRA Earnings
Rental income	575		575
Operating costs	-63		-63
Net operating income	512	0	512
Other revenue	0		0
Other costs	-7		-7
Administrative costs	-28		-28
Share of profit from associates and JVs	8		8
Net realised financials	-241		-241
Net income	243	0	243
Changes in value of investment properties	-462	462	0
Changes in value of financial instruments	5	-5	0
Profit before tax / EPRA Earnings before tax	-214	457	243
Tax payable	-27		-27
Change in deferred tax	75	-101	-25
Profit for period / EPRA Earnings	-166	357	191
Average outstanding shares (million)			31.0
EPRA Earnings per share (NOK)			6.16

3. EPRA PERFORMANCE MEASURES

B. EPRA NET ASSET VALUE METRICS 31.12.2023 NRV NTA NDV IFRS Equity 3 876 3 876 3 876 Net Asset Value (NAV) at fair value 3 876 3 876 3 876 Deferred tax properties and financial instruments 175 175 Estimated real tax liability 88 Net fair value on financial derivatives -132 -132 EPRA NAV 3 919 3 831 3 876 Outstanding shares at period end (million) 31 31 31 EPRA NAV per share (NOK) 127 124 125

EPRA Net Reinstatement Value (NRV): the objective of this metric is to highlight the value of net assets on a long term-basis, assuming that no selling of assets takes place.

EPRA Net Tangible Assets (NTA): the calculation assumes entities buy and sell assets, thereby crystallising certain levels of deferred tax liability. Aurora Eiendom has chosen option (iii) in the EPRA BPR Guidelines. In this calculation 50 % of the deferred taxes are added back.

EPRA Net Disposal Value (NDV) provides the reader with a scenario where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax, this to illuatrate shareholder value in a scenario of orderly sale of all the company's assets.

3. EPRA PERFORMANCE MEASURES

C. EPRA NIY AND 'TOPPED-UP' NIY		31.12.2023	31.12.2022	31.12.2021
(NOK million)
Investment property - wholly owned		8 418	8 813	5 224
Less: developments		-140	-156	-92
Completed property portfolio		8 278	8 657	5 132
Allowance for estimated purchasers' costs		17	17	10
Gross up completed property portfolio valuation	B	8 294	8 674	5 142
Annualised cash passing rental income*		597	576	315
Property outgoings		-78	-76	-40
Annualised net rents	A	519	500	275
Add: notional rent expiration of rent free periods or other lease incentives		8	8	9
Topped-up net annualised rent	C	527	508	284
Add: market rent of vacant space		15	13	6
Fully let net annualised rent	D	542	521	290
EPRA NIY	A/B	6.26 %	5.76 %	5.36 %
EPRA "topped-up" NIY	C/B	6.36 %	5.85 %	5.53 %
Fully let net yield	D/B	6.53 %	6.01 %	5.64 %
Valuation yield		6.45 %	5.89 %	5.56 %

EPRA initial yields do not include Jærhagen Kjøpesenter or Maxi Storsenter.

Market value of investment properties and development projects are independently valued by Cushman & Wakefield Realkapital. The latest valuation was carried out 31.12.2024.

The allowance for estimated purchaser's costs is an estimate based on the company's experiences. The property outgoings are based on the owner's costs estimated in the independent valuation. The market rent of vacant space is based on the independent valuation. The valuation yield is set by the independent valuer, based on reference transactions and adjusted for conditions specific to the individual properties.

* Consumer price index adjusted to rental income per 01.01.2023 and 01.01.2024

3. EPRA PERFORMANCE MEASURES

D. EPRA VACANCY RATE		31.12.2023	31.12.2022
(NOK million)
Estimated rental value of vacant space	A	15	13
Estimated rental value of the whole portfolio	B	619	597
EPRA Vacancy Rate	A/B	2.3 %	2.2 %

The market rent of vacant space is based on the independent valuation. EPRA vacancy rate does not include Jærhagen Kjøpesenter or Maxi Storsenter. GLOSSARY

EPRA NDV EPRA Net Disposal Value (NDV) provides the reader with a scenario where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax, this to illuatrate shareholder value in a scenario of orderly sale of all the company's assets

EPRA NRV Net Reinstatement Value (NRV): the objective of this metric is to highlight the value of net assets on a long term-basis, assuming that no selling of assets takes

EPRA NTA EPRA Net Tangible Assets (NTA): the calculation assumes entities buy and sell assets, thereby crystallising certain levels of deferred tax liability. Aurora Eiendom has chosen option (iii) in the EPRA BPR Guidelines. In this calculation 50 % of the deferred taxes are added back

EPRA	European Public Real Estate Association
EPRA NDV	EPRA Net Disposal Value (NDV) provides the reader with a scenario where
	place
EPRA NTA	EPRA Net Tangible Assets (NTA): the calculation assumes entities buy and 50 % of the deferred taxes are added back
EPRA sBPR	EPRA sustainability best practice recommendations
	properties
External / Independent Appraisers	Cushman & Wakefield Realkapital AS
GLA	Gross Lettable Area, areas exclusive to the tenant including storage units
	amortised interest less interest income for the period
	divided by fair value of investment properties
Occupancy	Market rent of leased areas divided by estimated market rent of the whole portfolio
WAULT	Weighted Average Unexpired Lease Term

Exit Yield Valuation yield set by external appraiser, used in the valuation of investment

GLA Gross Lettable Area, areas exclusive to the tenant including storage units

ICR Interest Coverage Ratio, Net income from property management divided by amortised interest less interest income for the period

LTV Loan To Value, Nominal Interest-bearing debt minus cash and cash deposits divided by fair value of investment properties

Occupancy Market rent of leased areas divided by estimated market rent of the whole

Contact information

Financial calendar

Lars Ove Løseth CEO Aurora Eiendom AS lars.ove.loeseth@alti.no +47 928 17 859 Kathrine Mauset CFO Aurora Eiendom AS kathrine.mauset@alti.no +47 464 48 411

Friday 22.03.2024 Tuesday 14.05.2024

Report

Annual Report 2023 Q1 2024 Report

www.aurora.no