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Entra
Quarterly Report • Apr 30, 2020
3596_rns_2020-04-30_7e1c1d3d-a9d2-46e5-8416-b1ace5500558.pdf
Quarterly Report
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Highlights
2 Entra first quarter 2020
- Adapting to the Covid-19 situation
- Rental income of 587 million (585 million)
- Net income from property management of 357 million (375 million)
- Net value changes of -337 million (462 million), reflecting no changes in value of investment properties and changes in value of financial instruments of -337 million
- Profit before tax of 58 million (857 million)
- Net letting of 15 million
- Finalised new-build project in Trondheim
Rental income
+ 2 mill.
Property management
- 17 mill.
EPRA NAV
- 7 %
144 145 147 151 153 100 120 140 160 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 EPRA NAV (NOK per share) 1)
1) See section "Alternative performance measures"
Key figures
| All amounts in NOK million | Q1-20 | Q1-19 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|
| Rental income | 587 | 585 | 2 338 | 2 243 | 2 075 | 1 899 |
| Change period-on-period | 0 % | 7 % | 4 % | 8 % | 9 % | 8 % |
| Net operating income | 545 | 542 | 2 149 | 2 058 | 1 913 | 1 740 |
| Change period-on-period | 0 % | 8 % | 4 % | 8 % | 10 % | 11 % |
| Net income from property management1) | 357 | 375 | 1 471 | 1 434 | 1 259 | 1 070 |
| Change period-on-period | -5 % | 7 % | 3 % | 14 % | 18 % | 34 % |
| Profit before tax | 58 | 857 | 3 735 | 3 073 | 5 030 | 3 306 |
| Change period-on-period | -93 % | 0 % | 22 % | -39 % | 52 % | 8 % |
| Profit after tax | 52 | 707 | 3 225 | 2 735 | 4 514 | 2 722 |
| Change period-on-period | -93 % | -4 % | 18 % | -39 % | 66 % | 0 % |
| Market value of the property portfolio1) | 49 428 | 46 438 | 48 964 | 45 630 | 40 036 | 35 785 |
| Net nominal interest bearing debt1) | 19 535 | 18 508 | 19 585 | 18 941 | 17 852 | 17 454 |
| Loan to value1) | 39.7 % | 40.1% | 40.2 % | 41.3 % | 43.3 % | 47.6 % |
| Interest coverage ratio1) | 3.2 | 3.5 | 3.3 | 3.6 | 3.0 | 2.7 |
| Average outstanding shares (million) | 182.1 | 182.7 | 182.4 | 183.6 | 183.7 | 183.7 |
| All amounts in NOK per share | Q1-20 | Q1-19 | 2019 | 2018 | 2017 | 2016 |
| EPRA NAV1) | 153 | 144 | 151 | 141 | 127 | 101 |
| Change period-on-period | 5 % | 8 % | 7 % | 11 % | 26 % | 14 % |
| EPRA NNNAV1) | 142 | 133 | 141 | 131 | 118 | 93 |
| Change period-on-period | 5 % | 8 % | 9 % | 11 % | 26 % | 15 % |
| EPRA Earnings1) | 1.42 | 1.46 | 5.81 | 5.59 | 5.23 | 4.27 |
| Change period-on-period | -3 % | 8 % | 4 % | 7 % | 22 % | 31 % |
| Cash earnings1) | 1.94 | 2.03 | 8.01 | 7.74 | 6.81 | 5.80 |
| Change period-on-period | -5 % | 8 % | 3 % | 14 % | 17 % | 17 % |
| Dividend per share2) | 0.00 | 0.00 | 4.70 | 4.50 | 4.10 | 3.45 |
| Change period-on-period | 0 % | 0 % | 4 % | 10 % | 19 % | 15 % |
Reference
1) Refer to section "Alternative performance measures" for calculation of the key figure
2) Entra pays semi-annual dividends. Dividend for 2019 of 4.70 per share constitute dividend of 2.30 per share approved and paid for the first half 2019 and dividend of 2.40 per share proposed for the second half of 2019.
Financial developments
Strong position in a challenging period
Due to the COVID-19 pandemic, Norway went into a partial lockdown from 12 March 2020. All schools were closed and everyone that could were asked to work from home. Since then Entra's top priority has been to safeguard life and health and take responsibility for helping to reduce the spread of infection by following the advice of national and local authorities. Further, the recent and sudden decline in oil and gas prices will most likely impact the Norwegian economy.
Entra's rental income and results from property management has to a limited extent been impacted by these situations in Q1 2020.
Entra is in a robust situation with a solid tenant base comprising 58 per cent public tenants. Less than 10 per cent of Entra's rental income stems from industries that are most affected by the current situation. These include companies within retail and restaurants, tourism, co-working, training centers, companies with less than 15 employees, parking as well as companies within the oil and gas sector.
Entra's financial position is strong. Currently, Entra has available cash and unutilized credit facilities amounting to 7.3 billion, more than three times all debt falling due next 12 months. The debt portfolio has a well staggered maturity profile and is diversified with a good financing mix.
Results
Rental income
Rental income was 587 million in Q1 2020. Despite significant contribution from finalised projects, the top line growth is currently relatively flat as several of Entra's large assets has been vacated and prepared for redevelopment over the last 12 months. The underlying changes in rental income can be explained by the factors in the below income bridge.
| All amounts in million | Q1-19 Q1-20 |
|---|---|
| Rental income previous period | 585 |
| Development projects | 6 |
| Acquisitions | 7 |
| Divestments | -9 |
| Other | -14 |
| Like-for-like growth | 12 |
| Rental income | 587 |
Net positive contribution from development projects was 6 million in Q1 2020 compared to Q1 2019. During the last 12 months Entra has finalised the new-build projects Powerhouse Brattørkaia, Brattørkaia 12, Holtermanns veg 1-13 and Tullinkvartalet adding a total of 29 million in annual rent. However, during the year the properties Tordenskjolds gate 12, Schweigaards gate 15 and parts of Stenersgata 1 have been vacated and are awaiting redevelopment.
The acquisition of Møllendalsveien 6-8 in Bergen contributed with 7 million compared to the same quarter last year whereas divestment of five properties in Oslo during 2019 has reduced the rental income by 9 million.
Other effects stems from the same quarter last year whereas Entra recognised an extraordinary lease buy-out related to a termination of a lease contract two years prior to expiration.
Since Q1 last year rental income has been positively affected by an underlying like-for-like growth of 2.3 per cent (12 million), of which the underlying CPI adjustment was 1.6 per cent. Near all of Entra's lease contracts are 100 per cent linked to positive changes in CPI. The annual adjustment is mostly made on a November to November basis.
Average 12 months rolling rent per square meter was 2,134 (2,071) as of 31.03.20. The increase mainly stems from properties vacated during the year awaiting redevelopment that have been reclassified to the project portfolio in 2020.
RENT (12M ROLLING) PER SQM AND OCCUPANCY RATE
Compared to the previous quarter, the occupancy rate went up by three basis points to 97.4 per cent. The market rental income of vacant space as of 31.03.20 was approximately 60 million on an annualised basis.
QUARTERLY NET LETTING
Gross letting, including re-negotiated contracts, was 86 million in the quarter of which 2 million is attributable to letting in the project portfolio. Lease contracts with an annual lease of 45 million were terminated in the quarter. Net letting defined as new lease contracts plus lease-up on renegotiated contracts less terminated contracts came in at 15 million (1 million) in the quarter. The timing difference between net letting in the management portfolio in the quarter and its effect on the financial results is normally 6-12 months, while new contracts signed in the project portfolio tend to have a later impact on the results.
RENTAL INCOME DEVELOPMENT
The graph above shows the estimated development of contracted rental income based on all reported events, including income effect from divestments and acquisitions, development projects, net letting based on new and terminated contracts in the management portfolio, and other effects such as estimated CPI adjustments. It does not reflect any letting targets on the vacant areas in the portfolio or on contracts that will expire, but where the outcome of any renegotiation process is not known, i.e. not yet reported in "Net letting". The graph therefore does not constitute a forecast, but rather aims to demonstrate the rental income trend in the existing contract portfolio on the balance sheet date based on all reported events. The graph does not include potential effects of the COVID-19 pandemic.
Operating costs
Operating costs is stable from the first quarter of 2019 and is split as follows:
| All amounts in NOK million | Q1-20 | Q1-19 |
|---|---|---|
| Maintenance | 5 | 6 |
| Tax, leasehold, insurance | 12 | 13 |
| Letting and prop. adm. | 15 | 14 |
| Direct property costs | 11 | 10 |
| Operating costs | 42 | 43 |
Net operating income
As a consequence of the effects explained above, net operating income came in at 545 million (542 million) in the quarter.
Other revenue and other costs
Other revenue was 18 million (69 million) and other costs were 9 million (60 million). Other revenue and other costs in the quarter mainly consists of income and costs related to inventory properties (properties in the Bryn portfolio which is expected to be zoned for residential development and subsequently sold to a third party) and from extra services provided to tenants.
In Q1 2019, 47 million of other revenue and 42 million of other costs were related to the development of Tollbugata 1A in Oslo, which was forward-sold and delivered to the buyer in the fourth quarter of 2019.
Administrative costs
Administrative costs amounted to 50 million (48 million) in the quarter. The increase in 2020 is primarily related to Entra's technology and digitalization initiatives.
Share of profit from associates and JVs
| Share of profit from associates and JVs | 38 | 23 |
|---|---|---|
| Other income and costs | 38 | 21 |
| Income from property management | 1 | 3 |
| All amounts in NOK million | Q1-20 | Q1-19 |
Other income and costs from associates and JVs in the quarter mainly relates to the net gains from the completion and delivery of residential apartments and the recognition of income and cost related to the completion and sale of forwardsold commercial assets in Bjørvika. For a detailed breakdown
of the results from associates and JVs, see the section Partly owned companies.
Net realised financials
| Net realised financials | -148 | -131 |
|---|---|---|
| Interest and other finance expense | -151 | -134 |
| Interest and other finance income | 3 | 2 |
| All amounts in NOK million | Q1-20 | Q1-19 |
Net realised financials have increased in 2020 compared to 2019 mainly due to higher interest bearing debt and higher Nibor interest rates on floating rate debt in the quarter.
Net income and net income from property management
Net income came in at 394 million (395 million) in the quarter. When including only the income from property management in the results from JVs, net income from property management for the Group was 357 million (375 million). This represents a decrease of 5 per cent, mainly due to higher net realised financials. For calculation of Net income from property management, see the section Alternative performance measures.
NET INCOME FROM PROPERTY MANAGEMENT PER SHARE
(Annualised, rolling 4 quarters)
Value changes
Net value changes amounted to -337 million (462 million) in the quarter.
Changes in value of investment properties was nil (484 million) in the quarter.
Due to the COVID-19 pandemic and the changes in the oil price, valuation of properties as of 31.03.20 is connected with very high uncertainty. Among the most important input factors to valuation of properties are the occupancy, market rent expectations and yield of a property, factors which Entra's two external appraisers (Akershus Eiendom/JLL and Newsec) base on observed market evidence. As the Norwegian transaction market came to a halt in March, the market evidence in the current situation is limited. The COVID-19 and oil situation may however affect future occupancy, market rent expectations and yield levels. Entra's external appraisers performed the valuation as of 31.03.20 on the market conditions without estimating the potential effects from COVID-19 and the lower oil price. Based on the valuations estimated by Entra's external appraisers as of 31.03.20, the fair value of the Entra's investment properties was 50,727 million, reflecting changes in the value of investment properties of 1,168 million due to a strong transaction and letting market in the first part of the quarter. The value changes were attributable to increased market rent, yield compression, new contracts signed in the quarter and reduced risk as the projects in the project portfolio is moving towards completion. Due to the material valuation uncertainty in the current situation, Entra has chosen to base the fair value as of 31.03.20 on the valuations obtained as of 31.12.19.
Net changes in value of financial instruments was -337 million (-22 million) in the quarter The negative value change is mainly due to a sharp reduction in market interest rates, which with a weighted average interest rate duration of 2.7 years on the debt portfolio, implies a net liability increase on interest rate derivatives of 337 million.
Tax
Tax payable of 3 million (3 million) in the quarter is related to the partly owned entity Papirbredden in Drammen. The change in deferred tax was -2 million (-147 million) in the quarter.
The Group, except for certain partly owned companies with marginal tax effect, is currently not in a tax payable position due to tax loss carry forward. At year-end 2019, the tax loss carry forward for the Group's wholly-owned subsidiaries was 68 million (321 million).
Profit
Profit before tax was 58 million (857 million) in the quarter. Profit after tax was 52 million (707 million), which also equals the comprehensive income after tax.
EPRA Earnings
EPRA Earnings amounted to 259 million (266 million) in the first quarter of 2020. Refer to page 26 for further details.
Balance sheet
The Group's assets amounted to 51,789 million (48,564 million) as at 31.03.20. Of this, investment properties amounted to 49,559 million (45,837 million).
Inventory properties of 414 million (408 million) at the end of the quarter relates to the properties in the Bryn portfolio expected to be zoned for residential development and subsequently sold to a third party.
Other receivables and other current assets was 284 million (662 million) at the end of the quarter. The 2019 amount included contract assets related to the forward-sold asset Tollbugata 1A, which was delivered to the buyer in the fourth quarter of 2019.
Other non-current liabilities was 503 million (686 million) at the end of the quarter. The decrease is mainly related to the derecognition of a provision for the contract obligation assumed from the University of Oslo for the remaining lease period at St. Olavs plass 5, following the acquisition of the property in the fourth quarter of 2019.
Book equity totalled 24,551 million (22,913 million). Equity per share was 153 (144) based on the EPRA NAV standard, 142 (133) based on EPRA NNNAV and 158 (147) based on EPRA NRV. Refer to pages 27 and 28 for further details.
Cash flow statement
Net cash flow from operating activities came in at 483 million (430 million) in the quarter. The increase mainly relates to working capital movements.
The net cash flow from investment activities was -432 million (9 million) in the quarter, mainly driven by the cash effect from investment in and upgrades of investment properties of -412 million (-335 million).
Net cash flow from financing acitivites was -107 million (-326 million) in the quarter. During the quarter, Entra had an increase in bond financing of 450 million and a decrease in commercial paper and bank financing of 200 million and 356 million, respectively.
The net change in cash and cash equivalents was -57 million (113 million) in the quarter.
Financing
During the first quarter, Entra's gross interest-bearing nominal debt decreased by 106 million to 19,795 million. The change in interest bearing debt comprised a net increase in bond financing of 450 million and a decrease in commercial paper and bank financing of 200 million and 356 million, respectively.
In the quarter, Entra re-opened two existing green bond loans with a total of 645 million. In connection with a re-opening of a 4-year green bond with 195 million, a short dated bond issue was re-purchased with the same amount, contributing to an extended debt maturity profile. Further, commercial paper loans has been refinanced with 800 million.
In the first quarter, Entra secured a new revolving credit facility of 500 million with maturity 22.06.23. After the balance sheet date, Entra extended the 750 million short-term unutilised
revolving credit facility with one year, bringing the maturity for this credit facility to 31.01.22.
As of 31.03.20, net nominal interest bearing debt after deduction of liquid assets of 260 million (343 million) was 19,535 million (18,508 million).
The average remaining term for the Group's debt portfolio was 4.8 years at 31.03.20 (4.9 years). The calculation takes into account that available long-term credit facilities can replace short-term debt.
Entra's financing is mainly based on negative pledge of the Group's assets, which enables a broad and flexible financing mix. Entra's financing structure includes bank loans, bonds and commercial papers. At the end of the period, 69 per cent (70 per cent) of the Group's financing came from debt capital markets.
Maturity profile and composition interest bearing debt
| Maturity profile | 0-1 yrs | 1-2 yrs | 2-3 yrs | 3-4 yrs | 4+ yrs | Total | % |
|---|---|---|---|---|---|---|---|
| Commercial papers (NOKm) | 1 600 | 0 | 0 | 0 | 0 | 1 600 | 8 |
| Bonds (NOKm) | 700 | 1 105 | 3 000 | 3 495 | 3 750 | 12 050 | 61 |
| Bank loans (NOKm) | 0 | 728 | 500 | 2 710 | 2 208 | 6 146 | 31 |
| Total (NOKm) | 2 300 | 1 833 | 3 500 | 6 205 | 5 958 | 19 795 | 100 |
| Unutilised credit facilities (NOKm) | 750 | 0 | 1 000 | 3 290 | 2 000 | 7 040 |
|---|---|---|---|---|---|---|
| Unutilised credit facilities (%) | 11 | 0 | 14 | 47 | 28 | 100 |
Financing policy and status
| All amounts in NOK million | 31.03.2020 | Target |
|---|---|---|
| Loan-to-value (LTV) | 39.7 % | Below 50 % over time |
| Interest coverage ratio (ICR) | 3.2 | Min. 1.8x |
| Debt maturities <12 months | 12 % | Max 30 % |
| Maturity of hedges <12 months | 41 % | Max 60 % |
| Average time to maturity (hedges) | 2.9 | 2-6 years |
| Back-stop of short-term interest bearing debt | 306 % | Min. 100 % |
| Average time to maturity (debt) | 4.8 | Min. 3 years |
Interest rates and maturity structure
The average interest rate1) of the debt portfolio was 2.91 per cent (2.96 per cent) as at 31.03.20. The change in average interest rate stems mainly from lower Nibor interest rates.
59 per cent (62 per cent) of the Group's financing was hedged at a fixed interest rate as at 31.03.20 with a weighted average maturity of 2.9 years (3.3 years).
The Group manages interest rate risk through floating-to-fixed interest rate swaps and fixed rate bonds. The table below shows the maturity profile and contribution from these fixed rate instruments, as well as the maturity profile for credit margins on debt.
| Fixed rate instruments2) | Forward starting swaps3) | Average credit margin | |||||
|---|---|---|---|---|---|---|---|
| Amount (NOKm) |
Interest rate (%) |
Amount | Interest rate (%) |
Amount (NOKm) |
Credit margin (%) |
||
| <1 year | 200 | 4.0 | 800 | 2.21 | 5.8 | 4 965 | 0.96 |
| 1-2 years | 950 | 3.2 | 1 105 | 0.94 | |||
| 2-3 years | 1 550 | 2.2 | 3 500 | 0.90 | |||
| 3-4 years | 1 250 | 1.9 | 4 975 | 0.93 | |||
| 4-5 years | 1 300 | 2.4 | 0 | 0.00 | |||
| 5-6 years | 1 900 | 2.2 | 1 450 | 0.75 | |||
| 6-7 years | 3 360 | 2.1 | 2 700 | 0.84 | |||
| 7-8 years | 0 | 0.0 | 0 | 0.00 | |||
| 8-9 years | 0 | 0.0 | 0 | 0.00 | |||
| 9-10 years | 0 | 0.0 | 0 | 0.00 | |||
| >10 years | 500 | 4.9 | 1 100 | 0.39 | |||
| Total | 11 010 | 2.4 | 800 | 2.21 | 5.8 | 19 795 | 0.88 |
¹ ) Average reference rate (Nibor) is 1.58 per cent as of the reporting date.
² ) Excluding forward starting swaps and credit margins on fixed rate bonds (credit margins are displayed in the table to the right).
³ ) The table displays future starting point, notional principle amount, average fixed rate and tenor for forward starting swaps.
The property portfolio
Entra's management portfolio consists of 76 buildings with a total area of approximately 1.1 million square meters. As of 31.03.20, the management portfolio had a market value of around 44 billion. The occupancy rate was 97.4 per cent (96.3 per cent). The weighted average lease term for the Group's leases was 6.9 years (6.5) for the management portfolio and 7.0 years (7.2) when the project portfolio is included. The public sector represents approximately 58 per cent of the total rental income. The entire property portfolio consists of 90 properties with a market value of about 49 billion.
Entra's properties are valued by two external appraisers (Akershus Eiendom/JLL and Newsec) on a quarterly basis. Due to the COVID-19 pandemic and the recent oil price
development, valuation of investment properties as of 31.03.20 is connected with very high uncertainty. Entra has chosen to base the fair value as of 31.03.20 on the valuations obtained as of 31.12.19. Refer to page 7 for further information.
Year-on-year, the portfolio net yield is reduced from 5.0 to 4.9 per cent. 12 months rolling rent increased from 2,071 to 2,134 mainly driven by properties that are vacated during 2019 awaiting redevelopment have been reclassified to the project portfolio in 2020.
The market rent has increased by 5 per cent, from 2,152 to 2,230 per square meter.
| Properties | Area | Occupancy | Wault | Market value | 12 months rolling rent | Net yield1 | Market rent | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (#) | (sqm) | (%) | (year) | (NOKm) | (NOK/sqm) | (NOKm) | (NOK/sqm) | (%) | (NOKm) | (NOK/sqm) | |
| Oslo | 34 | 557 981 | 97.4 | 6.9 | 26 838 | 48 098 | 1 377 | 2 467 | 4.8 | 1 459 | 2 614 |
| Trondheim | 12 | 166 442 | 96.4 | 7.5 | 4 894 | 29 402 | 272 | 1 632 | 5.2 | 294 | 1 767 |
| Bergen | 8 | 119 538 | 97.2 | 5.9 | 4 794 | 40 104 | 239 | 1 999 | 4.6 | 278 | 2 326 |
| Sandvika | 9 | 98 988 | 99.8 | 8.2 | 2 922 | 29 520 | 173 | 1 746 | 5.5 | 150 | 1 520 |
| Stavanger | 5 | 78 607 | 99.4 | 6.9 | 2 293 | 29 174 | 142 | 1 808 | 5.8 | 133 | 1 691 |
| Drammen | 8 | 70 422 | 97.5 | 5.8 | 2 085 | 29 611 | 129 | 1 825 | 5.8 | 121 | 1 720 |
| Management portfolio |
76 | 1 091 978 | 97.4 | 6.9 | 43 826 | 40 135 | 2 331 | 2 134 | 4.9 | 2 436 | 2 230 |
| Project portfolio | 8 | 120 981 | 9.2 | 4 723 | 39 035 | ||||||
| Development sites | 6 | 114 859 | 0.3 | 832 | 7 248 | ||||||
| Property portfolio | 90 | 1 327 818 | 7.0 | 49 381 | 37 190 |
1) See the section "Definitions". The calculation of net yield is based on the appraisers' assumption of ownership costs, which at 31.03.20 corresponds to 7.3 per cent of market rent.
Letting activity
During the first quarter, Entra signed new and renegotiated leases with an annual rent totalling 86 million (36,400 square metres) and received notices of termination on leases with an annual rent of 45 million (16,500 square metres). Net letting
was 15 million in the quarter. Net letting is calculated as the annualised rent of new lease contracts plus lease-up on renegotiated contracts less terminated contracts.
Significant contracts signed in the quarter:
- New 6-year lease contract with Norwegian Health Network for 5,200 sqm in Verkstedveien 1 in Oslo
- Renegotiated lease contract for 6 years and 3,900 sqm in Verkstedveien 1 in Oslo with the Norwegian Directorate of eHealth
- New 10-year lease contract for 2,400 sqm in Langkaia 1 in Oslo
- New 4-year lease contract for 2,300 sqm in Langkaia 1 in Oslo with Gule sider
- New 8-year lease contract for 1,500 sqm in Fredrik Selmers vei 4 in Oslo with the Norwegian Tax Authority
MATURITY PROFILE OF THE MANAGEMENT PORTFOLIO:
Investments and divestments
Entra has invested a total of 464 million (395 million) in the portfolio of investment properties in the first quarter. The decomposition of the investments is as follows:
| All amounts in NOK million | Q1-20 | Q1-19 | 2019 |
|---|---|---|---|
| Aquisitions | 0 | 23 | 1 174 |
| Developments | 434 | 318 | 1 352 |
| - Newbuild projects | 234 | 262 | 791 |
| - Redevelopment projects1) | 200 | 55 | 561 |
| Investment properties | 23 | 43 | 120 |
| - Incremental lettable space | 0 | 0 | 0 |
| - No incremental lettable space and tenant incentives | 17 | 43 | 112 |
| - Other material non-allocated types of expenditure | 6 | 1 | 8 |
| Capitalised interest | 8 | 10 | 41 |
| Total Capital Expenditure | 464 | 395 | 2 686 |
| Conversion from accrual to cash basis | -52 | -36 | -19 |
| Total Capital Expenditure on cash basis | 412 | 359 | 2 668 |
1)Also includes tenant alterations and maintenance capex when this is done as a part of asset redevelopment
Project development
The portfolio of ongoing project with a total investment exceeding 50 million is presented below.
| Ownership (%) | Location | Expected completion |
Project area (sqm) |
Occupancy (%) |
Estimated total project cost 1) (NOKm) |
Of which accrued1) (NOKm) |
Yield on cost2)(%) |
|
|---|---|---|---|---|---|---|---|---|
| Kristian Augusts gate 13 | 100 | Oslo | Q4-20 | 4 300 | 100 | 304 | 222 | 5.0 |
| Universitetsgata 7-9 | 100 | Oslo | Q3-21 | 21 900 | 52 | 1 235 | 653 | 6.0 |
| Universitetsgata 2 - Rebel | 100 | Oslo | Q3-21 | 28 100 | 18 | 1 650 | 1 109 | 5.6 |
| Total | 54 300 | 3 189 | 1 984 |
1) Total project cost (including book value at date of investment decision/cost of land)
2) Estimated net rent (fully let) at completion/total project cost (including cost of land)
Status ongoing projects
In Tullinkvartalet in Oslo, Entra is building a new 21,900 sqm office property in Universitetsgata 7-9 in Oslo. Occupancy is currently 52 per cent. The property is expected to be finalised in Q3 2021 with high environmental ambitions and aims for a BREEAM-NOR Excellent classification.
Entra is further redeveloping the 4,300 sqm office property in Kristian Augusts gate 13. The project will demonstrate Entra's strong commitment to work for more sustainable solutions by incorporating a target of more than 60 per cent re-use of building materials. Occupancy is at 100 per cent as the property will be let to the co-working operator IWG/Spaces.
The construction project is slightly delayed due to COVID-19 and is expected to be completed in Q4 2020.
Next to Tullinkvartalet, Entra also has the redevelopment project Rebel ongoing in Universitetsgata 2. Rebel will be a hub for large and small tech companies and will be managed 50/50 by Entra and an external partner. The 28,100 sqm building will consist of office space, co-working areas, conference centre and restaurants. Occupancy is currently 18 per cent. Rebel will offer a full-service concept through flexible short-term contracts with access to meeting rooms, wi-fi and more through memberships. The project is expected to be completed in Q3 2021.
Transactions
Entra actively seeks to improve the quality of its property portfolio. Entra focuses on acquisitions of large properties and projects in specific areas within its four core markets; Oslo and the surrounding region, Bergen, Trondheim and Stavanger. Target areas include both areas in the city centers and selected clusters and public transportation hubs outside the city centers, allowing Entra to offer rental opportunities at a price
Projects completed in the quarter
During the first quarter, Entra finalised a new office building in Holtermanns veg 1-13 in Trondheim. This is the first of three planned buildings. The approved zoning allows total construction of approximately 48,000 sqm, where the first building is 11,700 sqm. This new-build includes a 2,000 sqm basement with parking facilities. The property is currently 98 per cent let. The project has high environmental ambitions and aims for a BREEAM-NOR Excellent classification.
range that fits its customer base. Entra's experience, financial strength and knowledge of its tenants makes the company well positioned to make acquisitions that meets these acquisition criteria. The acquisition and divestment strategy is flexible, allowing Entra to adapt to feedback from customers and market changes, and to create and respond to market opportunities as they arise.
Transactions in 2019 and 2020
| Purchased properties | Area | Transaction quarter |
No of sqm | Transaction value |
Closing date |
|---|---|---|---|---|---|
| Share of Jåttåvågen Fase 2 | Stavanger | Q4 2019 | - | 13 | Q4 2019 |
| Møllendalsveien 6-8 | Bergen | Q4 2019 | 14 500 | 400 | Q4 2019 |
| Section of Kristian Augusts gate 11 | Oslo | Q1 2019 | 23 | Q1 2020 | |
| Sum | 14 500 | 436 | |||
| Sold properties | Transaction quarter |
No of sqm | Transaction value |
Closing date | |
|---|---|---|---|---|---|
| Kristian Augusts gate 23 | Oslo | Q3 2019 | 8 750 | 450 | Q4 2019 |
| Sorgenfriveien 11 | Trondheim | Q3 2019 | - | 50 | Q3 2019 |
| Section of Karoline Kristiansens vei 2 | Oslo | Q2 2019 | 450 | 23 | Q2 2019 |
| Sum | 9 200 | 523 |
Partly owned companies
Papirbredden Eiendom AS (60 %)
Entra and Drammen Municipality own Papirbredden Eiendom AS. The company owns six office properties totalling 59,000 sqm and a future development potential of 60,000 sqm in Drammen.
Hinna Park Eiendom AS (50 %)
Entra and Camar Eiendom own Hinna Park Eiendom AS. The company owns three office properties totalling 28,000 sqm and development potential for two new office properties of 37,000 sqm. The company is consolidated in the Group's financial statements as Entra has a controlling vote on the Board of Directors.
Entra OPF Utvikling AS (50 %)
Entra and Oslo Pensjonsforsikring (OPF) own Entra OPF Utvikling AS. The company owns two properties in Bergen, Lars Hilles gate 30 (Media City Bergen) and Allehelgens gate 6. The company is consolidated in the Group's financial statements as Entra has a controlling vote on the Board of Directors.
Oslo S Utvikling AS "OSU" (33.33 %)
OSU is a property development company that is undertaking primarily residential development in the city district Bjørvika, Oslo's CBD East.
Rebel U2 AS (50 %)
Rebel U2 AS will provide facility management services in Universitetsgata 2 in Oslo – with full-service solutions, flexible and short-term leases, co-working, conferences and events.
Financial figures for partly owned entities and JVs (based on 100 % ownership)
| All amounts in NOK million | Papirbredden Eiendom AS |
Hinna Park Eiendom AS |
Entra OPF Utvikling AS |
Total consolidated companies |
Oslo S Utvikling AS |
Rebel U2 AS | Other | Total associated companies & JVs |
|---|---|---|---|---|---|---|---|---|
| Share of ownership (%) | 60 | 50 | 50 | 33 | 50 | |||
| Rental income | 28 | 18 | 35 | 81 | 1 | 3 | 4 | |
| Net operating income | 28 | 15 | 33 | 75 | -1 | 3 | 1 | |
| Net income | 21 | 5 | 33 | 59 | 128 | -1 | 1 | 129 |
| Changes in value of investment properties | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Changes in value of financial instruments | -8 | -5 | 0 | -13 | 0 | 0 | 0 | 0 |
| Profit before tax | 13 | -1 | 33 | 45 | 128 | -1 | 1 | 129 |
| Tax | -3 | 0 | -7 | -10 | -14 | 0 | 0 | -14 |
| Profit for the period | 10 | -1 | 26 | 35 | 115 | -1 | 1 | 115 |
| Non-controlling interests | 4 | 0 | 13 | 17 | ||||
| Entra's share of profit1) | 38 | 0 | 0 | 38 | ||||
| Book value | 411 | 13 | 24 | 448 | ||||
| Market value properties | 1 861 | 1 216 | 2 880 | 5 956 | 4 081 | 4 081 | ||
| Entra's share: | ||||||||
| Market value properties | 1 116 | 608 | 1 440 | 3 164 | 1 360 | 1 360 | ||
| EPRA NAV | 667 | 237 | 1 481 | 2 386 | 812 | 13 | 24 | 850 |
| EPRA NNNAV | 623 | 216 | 1 440 | 2 279 | 713 | 13 | 24 | 751 |
1) Recognised as Share of profit from associates and JVs
Other information
Organisation and HSE
At 31.03.20 the Group had 179 (170) employees.
In Q1 2020, Entra had no injuries with long term absence from work in the ongoing projects. Entra has a continuous HSE focus both in on-going projects and in the operations and works continually to avoid injuries. The Group had an LTIF rate (number of accidents with lost time per million hours worked in last 12 months) on ongoing projects of 2.2 at the end of the first quarter 2020 vs. 2.0 at the end of the fourth quarter 2019.
Risk management
Entra assesses risk on an ongoing basis, primarily through semiannually comprehensive reviews of the Group's risk maps, which includes assessments of all risk factors in collaboration with all levels of the organization. Each risk factor is described and presented with the possible negative outcome given an increased probability of a situation to occur. Entra's main risk factors consist of both financial and non-financial risk. A thorough description and analysis is included on pages 28-33 in the 2019 annual report.
The main risk factors described in the annual report does not include an evaluation of a pandemic. Depending on the length of the partial lockdown and the strength and effect of the government interventions, the COVID-19 or similar situations may have adverse effects on Entra's business. Entra has a strong tenant base with a seven-year WAULT with a solid backbone of high-quality tenants, including public tenants comprising 58 per cent of revenue. Less than 10 per cent of Entra's rental income stems from industries that are most affected by the current situation. Entra continuously work on risk reducing measures in the portfolio, including rent levels, lease lengths, counter party risk, occupancy ratio, and the overall quality of the portfolio. Entra further maintains a diversified financing structure with a balanced maturity profile and financing mix in order to ensure stable and predictable access to capital. Entra is therefore robust in the current situation.
Events after the balance sheet date
On 2 April 2020, the Norwegian Government proposed a cash support package for companies affected by the COVID-19 situation intending to cover fixed costs, hereunder office rent. The cash support given will correspond to: (Turnover decline in percent) x (fixed costs minus any deductible) x (an adjustment
factor). The adjustment factor is 0.9 for companies that have been shut down by the government and 0.8 for other companies. The cash support package was approved on 17 April 2020. The cash support package is expected to at least partly mitigate the risk related to rental income from tenants most affected by the current situation.
From 20 April 2020 the Norwegian government has decided to gradually reopen the society after the partial lockdown implemented on 13 March 2020.
Share and shareholder information
Entra's share capital is NOK 182,132,055 divided into 182,132,055 shares, each with a par value of NOK 1 per share. Entra has one class of shares and all shares provide equal rights, including the right to any dividends.
As of 21 April 2020, Entra had 7,062 shareholders. Norwegian investors held 28 per cent of the share capital. The 10 largest shareholders as registered in VPS 21 April 2020 were:
| Shareholder | % holding |
|---|---|
| Folketrygdfondet | 10.5 |
| Norwegian Ministry of Trade, Industry and Fisheries | 8.2 |
| State Street Bank (Nominee) | 8.0 |
| The Bank of New York (Nominee) | 3.4 |
| JP Morgan Chase Bank (Nominee) | 1.7 |
| BNP Paribas Securities (Nominee) | 1.6 |
| Danske Invest Norske | 1.5 |
| Morgan Stanley & Co (Nominee) | 1.3 |
| Corem Property Group | 1.2 |
| State Street Bank (Nominee) | 1.1 |
| SUM 10 LARGEST SHAREHOLDERS | 38.6 |
Annual general meeting
The annual general meeting in Entra ASA will be held on 30 April 2020. In line with the dividend policy of distributing approximately 60 per cent of Cash Earnings, the board of Entra will propose to distribute a semi-annual dividend of NOK 2.40 per share for the second half of 2019. The last day the share is traded including the right to receive the dividend is 30 April 2020. The dividend will be paid on or about 12 May 2020.
Outlook
Well into the COVID-19 crisis, it is still difficult to make meaningful assessments of the overall impact on the global and Norwegian economy and the commercial real estate sector. The recent weeks have, however, brought somewhat more clarity about the longevity of the slowdown in economic activity and the cascading impact of supply-and-demand shocks propagating through the system, and it seems possible that economic life only will be allowed to return to normal when the world has access to a vaccine. The opening after a lockdown could be a lengthy process, and thus one should be prepared for an economic decline in 2020 and possibly also into 2021 stemming from COVID-19.
The Norwegian government acted at the outset of the crisis and implemented actions to safeguard the population and to ensure the survival of businesses through extensive support packages, including a targeted cash support initiative to cover fixed costs, including office rents. With solid infrastructure and a strong public funding, including the Government Pension Fund Global, Norway has the fundamentals in place for a recovery post-crisis.
In this situation, Entra has taken the necessary measures to protect the health and safety of our community, our tenants and other users of our buildings, as well as our employees. We have contingency plans, procedures, routines and staff in place that continue to deliver our services and property management without interruption. Entra has during March and April sought to find individual solutions that give tenants that struggle room to return to normal operation after this demanding period. In the first instance, we help tenants that are affected by changing payment schemes from upfront, quarterly to monthly invoices or giving monthly postponements on rent. If the COVID-19 situation persists, we will facilitate further, targeted support to customers particularly affected.
Entra's tenant base is strong with a seven-year WAULT and a solid backbone of public tenants comprising 58 per cent of
revenues. Less than 10 per cent of the rental income stems from industries that are most affected by the COVID-19 situation. These include companies within retail and restaurants, parking, tourism, co-working, training centres, as well as small companies with less than 15 employees.
Further, the recent and sudden decline in oil and gas prices will most likely impact the Norwegian economy. The effect from the price decline in 2014/15 was primarily seen in Stavanger and in the oil and gas intensive clusters in other cities. Entra's exposure to oil and gas is, however, limited with only around 2 per cent of total revenues through a fully consolidated 50/50 joint venture.
Entra's financial position is strong with a well staggered debt profile, a good financing mix available, and cash and unutilized credit facilities of 7.3 billion, more than three times all debt falling due next 12 months. We have constructive dialogues with our five banks, and the bank market is still open to us. During March and April, we extended a 750 million facility and put in place a new 500 million facility at favourable terms. Entra also has ample headroom to financial covenants, which are Loan-to-value of 75 per cent (39.7 per cent as of Q1) and Interest coverage ratio of 1.4 (3.2 as of Q1).
Uncertainty will prevail also in the months to come. But Entra, with modern, flexible and environmentally friendly assets located in attractive clusters near public transportation hubs, a solid tenant base with long lease contracts, a strong financial position, and an exciting project pipeline for future growth, has a proven and resilient business profile that is well positioned both through the ongoing COVID-19 and oil crisis and for the future thereafter.
Oslo, 29 April 2020
The Board of Entra ASA
Financial statements
Statement of comprehensive income
| All amounts in NOK million | Q1-20 | Q1-19 | 2019 |
|---|---|---|---|
| Rental income | 587 | 585 | 2 338 |
| Operating costs | -42 | -43 | -189 |
| Net operating income | 545 | 542 | 2 149 |
| Other revenue | 18 | 69 | 300 |
| Other costs | -9 | -60 | -260 |
| Administrative costs | -50 | -48 | -171 |
| Share of profit from associates and JVs | 38 | 23 | 312 |
| Net realised financials | -148 | -131 | -551 |
| Net income | 394 | 395 | 1 780 |
| - of which net income from property management | 357 | 375 | 1 471 |
| Changes in value of investment properties | 0 | 484 | 1 909 |
| Changes in value of financial instruments | -337 | -22 | 46 |
| Profit before tax | 58 | 857 | 3 735 |
| Tax payable | -3 | -3 | -11 |
| Change in deferred tax | -2 | -147 | -498 |
| Profit for period/year | 52 | 707 | 3 225 |
| Actuarial gains and losses | 0 | 0 | 5 |
| Change in deferred tax on comprehensive income | 0 | 0 | -1 |
| Total comprehensive income for the period/year | 52 | 707 | 3 229 |
| Profit attributable to: | |||
| Equity holders of the Company | 36 | 654 | 2 946 |
| Non-controlling interest | 17 | 53 | 279 |
| Total comprehensive income attributable to: | |||
| Equity holders of the Company | 36 | 654 | 2 949 |
| Non-controlling interest | 17 | 53 | 279 |
Balance sheet
| All amounts in NOK million | 31.03.2020 | 31.03.2019 | 31.12.2019 |
|---|---|---|---|
| Intangible assets | 117 | 133 | 117 |
| Investment properties | 49 559 | 45 837 | 49 095 |
| Other operating assets | 19 | 20 | 22 |
| Investments in associates and JVs | 448 | 260 | 397 |
| Financial derivatives | 416 | 320 | 274 |
| Long-term receivables and other assets | 242 | 241 | 256 |
| Total non-current assets | 50 801 | 46 811 | 50 161 |
| Inventory properties | 414 | 408 | 413 |
| Trade receivables | 29 | 79 | 43 |
| Other receivables and other current assets | 284 | 662 | 226 |
| Cash and bank deposits | 260 | 343 | 317 |
| Total current assets | 988 | 1 753 | 998 |
| Investment properties held for sale | 0 | 260 | 0 |
| Total assets | 51 789 | 48 564 | 51 160 |
| Shareholders' equity | 22 607 | 21 118 | 22 570 |
| Non-controlling interests | 1 944 | 1 795 | 1 947 |
| Total equity | 24 551 | 22 913 | 24 517 |
| Interest bearing debt | 17 478 | 14 812 | 17 362 |
| Deferred tax liability | 5 369 | 5 005 | 5 367 |
| Financial derivatives | 821 | 501 | 341 |
| Other non-current liabilities | 503 | 686 | 505 |
| Total non-current liabilities | 24 172 | 21 004 | 23 576 |
| Interest bearing debt | 2 323 | 4 039 | 2 539 |
| Trade payables | 251 | 207 | 200 |
| Other current liabilities | 492 | 401 | 328 |
| Total current liabilities | 3 066 | 4 647 | 3 067 |
| Total liabilities | 27 238 | 25 651 | 26 642 |
| Total equity and liabilities | 51 789 | 48 564 | 51 160 |
Changes in equity
| All amounts in NOK million | Share capital |
Treasury shares |
Other paid-in capital |
Retained earnings |
Non controlling interests |
Total equity |
|---|---|---|---|---|---|---|
| Equity 01.01.2019 | 184 | -1 | 3 535 | 16 800 | 1 742 | 22 260 |
| Profit for period | 2 946 | 279 | 3 225 | |||
| Other comprehensive income | 4 | 4 | ||||
| Equity transaction at fair value in JV | 11 | 11 | ||||
| Dividend | -840 | -75 | -915 | |||
| Net equity effect of LTI & employee share saving scheme | 0 | 0 | -2 | -2 | ||
| Repurchase of shares | -1 | -12 | -54 | -66 | ||
| Share capital decrease | -2 | 2 | 0 | |||
| Equity 31.12.2019 | 182 | 0 | 3 523 | 18 865 | 1 947 | 24 517 |
| Profit for period | 36 | 17 | 52 | |||
| Dividend | -20 | -20 | ||||
| Net equity effect of LTI | 0 | 0 | 1 | 1 | ||
| Equity 31.03.2020 | 182 | 0 | 3 524 | 18 902 | 1 944 | 24 551 |
Statement of cash flows
| All amounts in NOK million | Q1-20 | Q1-19 | 2019 |
|---|---|---|---|
| Profit before tax | 58 | 857 | 3 735 |
| Income tax paid | -10 | -8 | -11 |
| Net expensed interest and fees on loans and leases | 148 | 131 | 551 |
| Net interest and fees paid on loans and leases | -131 | -119 | -582 |
| Share of profit from associates and jointly controlled entities | -38 | -23 | -312 |
| Depreciation and amortisation | 1 | 2 | 8 |
| Changes in value of investment properties | 0 | -484 | -1 909 |
| Changes in value of financial instruments | 337 | 22 | -46 |
| Change in working capital | 119 | 51 | -81 |
| Net cash flow from operating activities | 483 | 430 | 1 352 |
| Proceeds from property transactions | 0 | 291 | 1 619 |
| Purchase of investment properties | 0 | -23 | -1 241 |
| Investment in and upgrades of investment properties | -412 | -335 | -1 427 |
| Investment in properties for sale and inventory properties | -2 | -48 | -192 |
| Purchase of intangible and other non-current assets | -7 | -8 | -35 |
| Net payment financial assets | 1 | -7 | -23 |
| Net payment of loans to associates and JVs | 0 | 0 | 1 |
| Net payments in associates and JVs | -13 | 0 | -16 |
| Dividends from associates and JVs | 0 | 140 | 308 |
| Net cash flow from investment activities | -432 | 9 | -1 005 |
| Proceeds interest bearing debt | 3 195 | 4 550 | 16 430 |
| Repayment interest bearing debt | -3 301 | -4 870 | -15 699 |
| Repayment of lease liabilities | -2 | 0 | -9 |
| Proceeds from issue of shares/repurchase of shares | 1 | -6 | -69 |
| Dividends paid | 0 | 0 | -840 |
| Dividends paid to non-controlling interests | 0 | 0 | -75 |
| Net cash flow from financing activities | -107 | -326 | -260 |
| Change in cash and cash equivalents | -57 | 113 | 87 |
| Cash and cash equivalents at beginning of period | 317 | 230 | 230 |
| Cash and cash equivalents at end of period | 260 | 343 | 317 |
NOTE 1 – ACCOUNTING PRINCIPLES
The results for the period have been prepared in accordance with IAS 34 Interim Financial Reporting.
The accounting principles that have been used in the preparation of the interim financial statements are in conformity with the principles used in preparation of the annual financial statements for 2019 with one exception. In the accounting principles in the annual financial statements for 2019, it is stated that investment properties are valued by independent appraisers at each reporting date. Due to the COVID-19 pandemic and the recent oil price development, valuation of investment properties as of 31.03.20 is connected with very high uncertainty. Entra has chosen to base the fair value as of 31.03.20 on the valuations obtained as of 31.12.19. Refer to note 5 for further information.
The financial reporting covers Entra ASA, subsidiaries, associated companies and jointly controlled entities. The interim financial statements have not been audited.
NOTE 2 – SEGMENT INFORMATION
The Group has one main operational unit, led by the COO. The property portfolio is divided into six different geographic areas in Oslo, Sandvika, Drammen, Stavanger, Bergen and Trondheim, with management teams monitoring and following upon each area. The geographic units are supported by a Market and Property Development division, Project Development division and a Digital and Business Development division. In addition, Entra has group and support functions within accounting and finance, legal, investment, procurement, communication and HR.
The geographic areas do not have their own profit responsibility. The geographical areas are instead followed up on economical and noneconomical key figures ("key performance indicators"). These key figures are analysed and reported by geographic area to the chief operating decision maker, that is the board and CEO, for the purpose of resource allocation and assessment of segment performance. Hence, the Group report the segment information based upon these six geographic areas.
| Properties | Area | Occupancy | Wault | Market value | 12 months rolling rent | Net yield1 | Market rent | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (#) | (sqm) | (%) | (year) | (NOKm) | (NOK/sqm) | (NOKm) | (NOK/sqm) | (%) | (NOKm) | (NOK/sqm) | |
| Oslo | 34 | 557 981 | 97.4 | 6.9 | 26 838 | 48 098 | 1 377 | 2 467 | 4.8 | 1 459 | 2 614 |
| Trondheim | 12 | 166 442 | 96.4 | 7.5 | 4 894 | 29 402 | 272 | 1 632 | 5.2 | 294 | 1 767 |
| Bergen | 8 | 119 538 | 97.2 | 5.9 | 4 794 | 40 104 | 239 | 1 999 | 4.6 | 278 | 2 326 |
| Sandvika | 9 | 98 988 | 99.8 | 8.2 | 2 922 | 29 520 | 173 | 1 746 | 5.5 | 150 | 1 520 |
| Stavanger | 5 | 78 607 | 99.4 | 6.9 | 2 293 | 29 174 | 142 | 1 808 | 5.8 | 133 | 1 691 |
| Drammen | 8 | 70 422 | 97.5 | 5.8 | 2 085 | 29 611 | 129 | 1 825 | 5.8 | 121 | 1 720 |
| Management portfolio |
76 | 1 091 978 | 97.4 | 6.9 | 43 826 | 40 135 | 2 331 | 2 134 | 4.9 | 2 436 | 2 230 |
| Project portfolio | 8 | 120 981 | 9.2 | 4 723 | 39 035 | ||||||
| Development sites | 6 | 114 859 | 0.3 | 832 | 7 248 | ||||||
| Property portfolio | 90 | 1 327 818 | 7.0 | 49 381 | 37 190 |
Operating segments Q1–20
1) See the section "Definitions". The calculation of net yield is based on the appraisers' assumption of ownership costs, which at 31.03.20 corresponds to 7.3 per cent of market rent.
Properties Area Occupancy Wault Market value 12 months rolling rent Net yield1) Market rent (#) (sqm) (%) (year) (NOKm) (NOK/sqm) (NOKm) (NOK/sqm) (%) (NOKm) (NOK/sqm) Oslo 38 602 544 96.1 5.8 26 514 44 003 1 375 2 282 4.8 1 476 2 450 Trondheim 9 133 794 95.7 7.5 3 855 28 816 227 1 697 5.5 232 1 738 Bergen 7 104 986 95.0 7.1 4 010 38 200 213 2 027 4.8 240 2 284 Sandvika 9 98 733 99.7 9.0 2 888 29 246 171 1 731 5.5 148 1 504 Stavanger 5 78 612 96.4 8.4 2 174 27 653 141 1 798 6.0 129 1 644 Drammen 8 70 520 98.3 6.7 2 034 28 846 129 1 828 6.0 118 1 679 Management portfolio 76 1 089 189 96.3 6.5 41 475 38 079 2 256 2 071 5.0 2 344 2 152 Project portfolio 8 104 457 15.9 4 148 39 707 Development sites 7 114 859 0.5 815 7 095 Property portfolio 91 1 308 505 7.2 46 438 35 489
Operating segments Q1–19
1) The calculation of net yield is based on the appraisers' assumption of ownership costs, which at 31.03.19 corresponds to 7.3 per cent of market rent.
NOTE 3 – INVESTMENT PROPERTIES
| All amounts in NOK million | Q1-20 | Q1-19 | 2019 |
|---|---|---|---|
| Closing balance previous period | 49 095 | 45 279 | 45 279 |
| Implementation of IFRS 16 | 231 | 231 | |
| Purchase of investment properties | 0 | 23 | 1 174 |
| Investment in the property portfolio | 456 | 361 | 1 472 |
| Capitalised borrowing costs | 8 | 10 | 41 |
| Sale of investment properties | 0 | -291 | -1 010 |
| Changes in value of investment properties1) | 0 | 484 | 1 909 |
| Closing balance | 49 559 | 46 097 | 49 095 |
| Investment properties held for sale | 0 | 260 | 0 |
| Investment properties | 49 559 | 45 837 | 49 095 |
1) Entra has chosen to base the fair value as of 31.03.20 on the valuations obtained as of 31.12.19. Refer to note 5 for further information.
NOTE 4 – INFORMATION ON THE FAIR VALUE OF ASSETS AND LIABILITIES
| Total | 821 | 501 | 341 | |
|---|---|---|---|---|
| - Derivatives | Level 2 | 821 | 501 | 341 |
| Financial liabilities measured at fair value through profit or loss | ||||
| Liabilities measured at fair value: | ||||
| Total | 50 009 | 46 428 | 49 404 | |
| - Equity instruments | Level 3 | 34 | 11 | 36 |
| - Derivatives | Level 2 | 416 | 320 | 274 |
| - Investment properties held for sale | Level 3 | 0 | 260 | 0 |
| - Investment properties | Level 3 | 49 559 | 45 837 | 49 095 |
| Assets measured at fair value through profit or loss | ||||
| Assets measured at fair value: | ||||
| All amounts in NOK million | Fair value level | 31.03.2020 | 31.03.2019 | 31.12.2019 |
NOTE 5 – RISK AND UNCERTAINTIES
The main risk factors described in the 2019 annual report does not include an evaluation of a pandemic. Refer to the Risk management section on page 15 for an assessment of COVID-19 and similar situations.
Due to the COVID-19 pandemic and the recent oil price development, valuation of properties as of 31.03.20 is connected with very high uncertainty. Among the most important input factors to valuation of properties are the occupancy, market rent expectations and yield of a property, factors which Entra's two external appraisers (Akershus Eiendom/JLL and Newsec) base on observed market evidence. As the Norwegian transaction market came to a halt in March, the market evidence in the current situation is limited. The COVID-19 and oil situation may however affect future occupancy, market rent expectations and yield levels. Due to the material valuation uncertainty in the current situation, Entra has chosen to base the fair value as of 31.03.20 on the valuations obtained as of 31.12.19.
NOTE 6 – SUBSEQUENT EVENTS
Refer to the Events after the balance sheet date section on page 15 for information on significant events after period end.
ALTERNATIVE PERFORMANCE MEASURES
Entra's financial information is prepared in accordance with the international financial reporting standards (IFRS). In addition, the company reports alternative performance measures (APMs) that are regularly reviewed by management to enhance the understanding of Entra's performance as a supplement, but not as a substitute, to the financial statements prepared in accordance with IFRS. Financial APMs are intended to enhance comparability of the results and cash flows from period to period, and it is Entra's experience that these are frequently used by analysts, investors and other parties. The financial APMs reported by Entra are the APMs that, in management's view, provide the most relevant supplemental information of a real estate company's financial position and performance. These measures are adjusted IFRS measures defined, calculated and used in a consistent and transparent manner over the years. Operational measures such as, but not limited to, net letting, vacancy and WAULT are not defined as financial APMs according to ESMA's guidelines.
ENTRA'S FINANCIAL APMS:
- Net Income from property management
- Cash earnings
- Market value of the property portfolio
- Net nominal interest bearing debt
- Debt ratio Loan-to-value (LTV)
- Interest coverage ratio (ICR)
- EPRA Earnings
- Net Asset Value EPRA NAV, EPRA NNNAV and EPRA NRV
- EPRA net initial yield
- EPRA cost ratio
NET INCOME FROM PROPERTY MANAGEMENT & CASH EARNINGS
| All amounts in NOK million | Q1-20 | Q1-19 | 2019 |
|---|---|---|---|
| Net income | 394 | 395 | 1 780 |
| Less: | |||
| Other income and costs in associates and JVs | 38 | 21 | 309 |
| Net income from property management | 357 | 375 | 1 471 |
| Tax payable | -3 | -3 | -11 |
| Cash earnings | 353 | 372 | 1 460 |
MARKET VALUE OF THE PROPERTY PORTFOLIO
| All amounts in NOK million | 31.03.2020 | 31.03.2019 | 31.12.2019 |
|---|---|---|---|
| Investment properties | 49 559 | 45 837 | 49 095 |
| Investment properties held for sale | 0 | 260 | 0 |
| Other | -131 | 341 | -131 |
| Market value of the property portfolio | 49 428 | 46 438 | 48 964 |
NET NOMINAL INTEREST BEARING DEBT
| Net nominal interest bearing debt | 19 535 | 18 508 | 19 585 |
|---|---|---|---|
| Cash and bank deposits | -260 | -343 | -317 |
| Nominal value of interest bearing debt | 19 795 | 18 851 | 19 901 |
| All amounts in NOK million | 31.03.2020 | 31.03.2019 | 31.12.2019 |
DEBT RATIO (LTV)
| Debt ratio (LTV) % | 39.7 | 40.1 | 40.2 |
|---|---|---|---|
| - Inventory properties | 414 | 408 | 413 |
| - Market value of the property portfolio | 49 428 | 46 438 | 48 964 |
| Total market value of the property portfolio | 49 842 | 46 846 | 49 377 |
| - Other interest bearing liabilities | 261 | 259 | 261 |
| - Net nominal interest bearing debt | 19 535 | 18 508 | 19 585 |
| Total net nominal interest bearing debt | 19 797 | 18 767 | 19 846 |
| All amounts in NOK million except ratio | 31.03.2020 | 31.03.2019 | 31.12.2019 |
INTEREST COVERAGE RATIO (ICR)
| All amounts in NOK million except ratio | Q1-20 | Q1-19 | 2019 |
|---|---|---|---|
| Net income | 394 | 395 | 1 780 |
| Depreciation | 1 | 2 | 8 |
| Results from associates and joint ventures | -38 | -23 | -312 |
| Net realised financials | 148 | 131 | 551 |
| EBITDA adjusted | 505 | 506 | 2 027 |
| Interest cost | 153 | 139 | 577 |
| Other finance expense | 6 | 6 | 28 |
| Applicable net interest cost | 159 | 145 | 606 |
| Interest Coverage Ratio (ICR) | 3.2 | 3.5 | 3.3 |
EPRA REPORTING
The following performance indicators have been prepared in accordance with best practices as defined by EPRA (European Public Real Estate Association) in its Best Practices Recommendations guide. The EPRA Best Practices Recommendations Guidelines focus on making the financial statements of public real estate companies clearer and more comparable across Europe.
| Summary table EPRA performance measures | Unit | Q1-20 / 31.03.2020 |
Q1-19 / 31.03.2019 |
|
|---|---|---|---|---|
| A | EPRA earnings per share (EPS) | NOK | 1.42 | 1.46 |
| B | EPRA NAV per share | NOK | 153 | 144 |
| EPRA NNNAV per share | NOK | 142 | 133 | |
| EPRA NRV per share | NOK | 158 | 147 | |
| C | EPRA net initial yield | % | 4.9 | 5.0 |
| EPRA, "topped-up" net initial yield | % | 4.9 | 5.0 | |
| D | EPRA vacancy rate | % | 2.5 | 3.6 |
| E | EPRA cost ratio (including direct vacancy costs | % | 15.4 | 14.8 |
| EPRA cost ratio (excluding direct vacancy costs) | % | 13.7 | 13.2 | |
The details for the calculation of the key figures are shown in the following tables:
A. EPRA EARNINGS
EPRA Earnings is a measure of the operational performance of the property portfolio. EPRA Earnings is calculated based on the income statement, adjusted for non-controlling interests, value changes on investment properties, changes in the market value of financial instruments and the associated tax effects. In addition, earnings from the jointly controlled entity OSU is adjusted for as the business of this company is development of properties for sale and is not considered relevant for measurement of the underlying operating performance of the property portfolio under management.
| All amounts in NOK million | Q1-20 | Q1-20 | Q1-20 | Q1-20 | Q1-19 | Q1-19 | Q1-19 | Q1-19 |
|---|---|---|---|---|---|---|---|---|
| IFRS reported |
EPRA adjustments |
Non controlling Interests1) |
EPRA Earnings |
IFRS reported |
EPRA adjustments |
Non controlling Interests1) |
EPRA Earnings |
|
| Rental income | 587 | 0 | 38 | 549 | 585 | 0 | 44 | 541 |
| Operating costs | -42 | 0 | -2 | -40 | -43 | 0 | -2 | -41 |
| Net operating income | 545 | 0 | 35 | 509 | 542 | 0 | 41 | 501 |
| Other revenue | 18 | 0 | 1 | 17 | 69 | 0 | 0 | 69 |
| Other costs | -9 | 0 | -2 | -7 | -60 | 0 | 0 | -60 |
| Administrative costs | -50 | 0 | -2 | -48 | -48 | 0 | -2 | -46 |
| Share of profit from associates and JVs | 38 | 38 | 0 | 0 | 23 | 21 | 0 | 3 |
| Net realised financials | -148 | 0 | -6 | -141 | -131 | 0 | -6 | -125 |
| Net income | 394 | 38 | 25 | 331 | 395 | 21 | 33 | 342 |
| Changes in value of investment properties | 0 | 0 | 0 | 0 | 484 | 484 | 0 | 0 |
| Changes in value of financial instruments | -337 | -337 | 0 | 0 | -22 | -22 | 0 | 0 |
| Profit before tax/EPRA Earnings before tax | 58 | -299 | 25 | 331 | 857 | 483 | 33 | 342 |
| Tax payable | -3 | 0 | -1 | -2 | -3 | 0 | -1 | -2 |
| Change in deferred tax | -2 | 73 | -5 | -70 | -147 | -68 | -6 | -73 |
| Profit for period/EPRA Earnings | 52 | -226 | 19 | 259 | 707 | 415 | 26 | 266 |
| Average outstanding shares (million) | 182.1 | 182.7 | ||||||
| EPRA Earnings per share | 1.42 | 1.46 |
1) Excluding non-controlling interests in relation to EPRA adjustments.
B. NET ASSET VALUE
Net Asset Value (NAV) is a key performance measure widely used in the real estate industry. In 2003, EPRA introduced its Best Practices Recommendations (BPR) guidelines for calculating NAV, with two NAV metrics: EPRA NAV and EPRA NNNAV. Since the introduction of EPRA NAV and EPRA NNNAV, European real estate companies have evolved into actively managed entities, including non-property operating activities, which has resulted in more active ownership, higher asset turnover, and balance sheet financing has shifted from traditional bank lending into capital markets. In the BPR guidelines released in October 2019, EPRA introduced three new Net Asset Valuation metrics: EPRA Net Reinstatement Value (NRV), EPRA Net Tangible Assets (NTA) and EPRA Net Disposal Value (NDV). Entra presents EPRA NAV, EPRA NNNAV and EPRA NRV.
EPRA NAV AND EPRA NNNAV
The objective with EPRA NAV is to demonstrate the fair value of net assets given a long-term investment horizon. EPRA NAV is calculated as net asset value adjusted to include market value of all properties in the portfolio, and to exclude certain items not expected to crystallise in a long-term investment property business model such as e.g. financial derivatives and deferred tax on the market value of investment properties.
The objective with EPRA NNNAV is to report the fair value of net assets in the Group on the basis that these are immediately realised. EPRA NNNAV is EPRA NAV adjusted to reflect the fair value of debt and derivatives and in order to include deferred tax on value changes.
| All amounts in NOK million | 31.03.2020 | 31.03.2019 | 31.12.2019 |
|---|---|---|---|
| IFRS equity attributable to shareholders | 22 607 | 21 118 | 22 570 |
| Add: Adjustment to property portfolio | 0 | 0 | 0 |
| Add: Revaluation of investments made in JVs1) | 402 | 756 | 400 |
| Add: Net market value on financial derivatives | 405 | 181 | 68 |
| Add: Deferred tax arising on revaluation moments | 4 452 | 4 177 | 4 517 |
| EPRA NAV | 27 865 | 26 233 | 27 555 |
| Market value on property portfolio | 49 428 | 46 438 | 48 964 |
| Tax value on property portfolio | 19 182 | 17 954 | 18 944 |
| Basis for calculation of tax on gain on sale Less: Market value of tax on gain on sale (5% tax rate) |
30 245 1 512 |
28 483 1 424 |
30 021 1 501 |
| Net market value on financial derivatives | 405 | 181 | 68 |
| Tax expense on realised financial derivatives | 89 | 40 | 15 |
| Less: Net result from realisation of financial derivatives | 316 | 141 | 53 |
| Market value of interest bearing debt2) | 19 847 | 19 103 | 20 212 |
| Carrying value of interest bearing debt | 19 802 | 18 851 | 19 901 |
| Basis for calculation of tax on realisation of interest bearing debt | 45 | 252 | 311 |
| Market value of tax on realisation | 10 | 56 | 68 |
| Less: Net result from realisation of interest bearing debt | 35 | 197 | 242 |
| Less: MV of tax on gain on sale (5% tax rate) & realisation of financial derivatives in JVs | 97 | 147 | 93 |
| EPRA NNNAV | 25 905 | 24 323 | 25 666 |
| Outstanding shares at period end (million) | 182.1 | 182.7 | 182.1 |
| EPRA NAV per share (NOK) | 153 | 144 | 151 |
EPRA NNNAV per share (NOK) 142 133 141
1) The revaluation of investments made in JVs was in the report for Q1 2019 reported as 1,108 million. The correct revaluation should however have been 756 million. Comparative
figures were updated from the report Q2 2019. 2) The market value of interest bearing debt was in the report for Q4 2019 reported as 19,910 million, resulting in a reported EPRA NNNAV of 25,901 million (142 per share. Comparative figures were updated from 2019 annual report.
EPRA NET REINSTATEMENT VALUE (NRV)
The objective of the EPRA NRV measure is to highlight the value of net assets on a long-term basis and assumes that no selling of assets takes place. Assets and liabilities that are not expected to crystallise in normal circumstances such as the fair value movements on financial derivatives and deferred taxes on property valuation surpluses are therefore excluded. Real estate transfer taxes are generally not levied on property transactions in Norway, and such taxes are accordingly not included in the gross value in Entra's valuation certificates. Consequently, no adjustment is in done for real estate transfer taxes in the calculation of NRV.
| All amounts in NOK million | 31.03.2020 | 31.03.2019 | 31.12.2019 |
|---|---|---|---|
| IFRS equity attributable to shareholders | 22 607 | 21 118 | 22 570 |
| Add: Adjustment to property portfolio | 0 | 0 | 0 |
| Add: Revaluation of investments made in JVs | 402 | 756 | 400 |
| Net asset value at fair value | 23 008 | 21 874 | 22 971 |
| Add: Deferred tax in relation to properties and financial instruments | 5 531 | 5 173 | 5 529 |
| Add: Net fair value on financial derivatives | 405 | 181 | 68 |
| Less: Goodwill as a result of deferred tax | -109 | -109 | -109 |
| EPRA NRV | 28 835 | 27 119 | 28 458 |
| Outstanding shares at period end (million) | 182.1 | 182.7 | 182.1 |
| EPRA NRV per share (NOK) | 158 | 147 | 156 |
Bridge to EPRA NAV:
| EPRA NRV | 28 835 | 27 119 | 28 458 |
|---|---|---|---|
| Difference in adjustment for deferred tax1) | -1 079 | -996 | -1 012 |
| Goodwill as a result of deferred tax excluded from NRV, not from NAV | 109 | 109 | 109 |
| EPRA NAV | 27 865 | 26 233 | 27 555 |
1) For the calculation of EPRA NRV, adjustment is made for all deferred taxes in relation to properties and financial instruments. For the calculation of EPRA NAV, adjustment is made for the difference between deferred tax as per the IFRS balance sheet and the balance sheet as per the underlying tax filings.
C. EPRA NET INTIAL YIELD
EPRA Net initial yield measures the annualised rental income based on the cash rents passing at the balance sheet date, less nonrecoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchasers' costs.
EPRA "topped-up" net initial yield incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentives such as discounted rent periods and step rents).
| All amounts in NOK million | Oslo | Trondheim | Sandvika | Stavanger | Drammen | Bergen | Total |
|---|---|---|---|---|---|---|---|
| Investment property - wholly owned | 31 723 | 5 029 | 2 952 | 1 316 | 225 | 2 180 | 43 425 |
| Investment property - share of JVs/Funds | 0 | 0 | 0 | 608 | 1 116 | 1 440 | 3 164 |
| Total property portfolio | 31 723 | 5 029 | 2 952 | 1 924 | 1 341 | 3 620 | 46 589 |
| Less projects and land and developments | -4 885 | -135 | -30 | -119 | 0 | -266 | -5 436 |
| Completed management portfolio | 26 838 | 4 894 | 2 922 | 1 805 | 1 341 | 3 354 | 41 154 |
| Allowance for estimated purchasers' cost | 52 | 15 | 10 | 4 | 5 | 8 | 94 |
| Gross up completed management portfolio valuation |
26 890 | 4 909 | 2 932 | 1 809 | 1 346 | 3 362 | 41 247 |
| 12 months rolling rent | 1 377 | 272 | 173 | 111 | 86 | 169 | 2 186 |
| Estimated ownership cost | 101 | 18 | 12 | 8 | 5 | 16 | 160 |
| Annualised net rents | 1 276 | 253 | 161 | 103 | 81 | 153 | 2 026 |
| Add: Notional rent expiration of rent-free periods or other lease incentives |
0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Topped up net annualised net rents | 1 276 | 253 | 161 | 103 | 81 | 153 | 2 026 |
| EPRA NIY (net initial yield) | 4.7% | 5.2% | 5.5% | 5.7% | 6.0% | 4.6% | 4.9% |
| EPRA "topped-up" NIY (net initial yield) | 4.7% | 5.2% | 5.5% | 5.7% | 6.0% | 4.6% | 4.9% |
All figures are adjusted for actual share of ownership of each property
D. EPRA VACANCY
Estimated Market Rental Value (ERV) of vacant space divided by ERV of the whole portfolio.
| All amounts in NOK million | Oslo | Trondheim | Sandvika | Stavanger | Drammen | Bergen | Total |
|---|---|---|---|---|---|---|---|
| Market rent vacant areas | 38 | 11 | 0 | 1 | 2 | 5 | 57 |
| Total market rent | 1 459 | 294 | 150 | 101 | 80 | 206 | 2 290 |
| Vacancy | 2.6% | 3.6% | 0.2% | 0.5% | 2.8% | 2.4% | 2.5% |
All figures are adjusted for actual share of ownership of each property
E. EPRA COST RATIO
Administrative & operating costs (including & excluding costs of direct vacancy) divided by gross rental income.
| All amounts in NOK million | Q1-20 | Q1-19 | 2019 |
|---|---|---|---|
| Operating costs | -42 | -43 | -189 |
| Administrative costs | -50 | -48 | -171 |
| Share of joint ventures expences | 0 | 0 | 0 |
| Less: Ground rent cost | 2 | 4 | 9 |
| EPRA Cost (including direct vacancy cost) | -90 | -87 | -351 |
| Direct vacancy cost | -9 | -9 | -38 |
| EPRA Cost (excluding direct vacancy cost) | -81 | -77 | -313 |
| Gross rental income less ground rent | 587 | 585 | 2 338 |
| Share of joint ventures and fund (GRI) | 0 | 0 | 0 |
| Total gross rental income less ground rent | 587 | 585 | 2 338 |
| Epra cost ratio (including direct vacancy cost) | 15.4% | 14.8% | 15.0% |
| Epra cost ratio (excluding direct vacancy cost) | 13.7% | 13.2% | 13.4% |
For further information about EPRA, go to www.epra.com.
DEFINITIONS
| 12 months rolling rent | - The contractual rent of the management properties of the Group for the next 12 months as of a certain date, adjusted for (i) signed new contracts and contracts expiring during such period, (ii) contract based CPI adjustments based on Independent |
|---|---|
| Capital expenditure | Appraisers' CPI estimates and (iii) the Independent Appraisers' estimates of letting of current and future vacant areas. - Property related capital expenditure, split into four components: (i) Acquisition, (ii) Development, (iii) Like-for-like portfolio and (iv) Other. The components Development and Like-for-like portfolio combined ties to the line item Investment in the property portfolio in the investment properties rollforward, while the two other categories ties to separate line items in the rollforward. |
| Back-stop of short-term interest bearing debt |
- Unutilised credit facilities divided by short-term interest bearing debt. |
| Cash Earnings | - Net income from property management less tax payable |
| Contractual rent | - Annual cash rental income being received as of relevant date |
| Gross yield | - 12 months rolling rent divided by the market value of the management portfolio |
| Interest Coverage Ratio ("ICR") | - Net income from property management excluding depreciation and amortisation for the Group, divided by net interest on interest bearing nominal debt and fees and commitment fees related to investment activities |
| Independent Appraisers | - Akershus Eiendom/JLL and Newsec |
| Land and dev. properties | - Property / plots of land with planning permission for development |
| Like-for-like | - The percentage change in rental income from one period to another given the same income generating property portfolio in the portfolio. The figure is thus adjusted for purchases and divestments of properties and active projects |
| Loan-to-value ("LTV") | - Total net nominal value of interest bearing debt divided by the total market value of the property portfolio. |
| Management properties | - Properties that are actively managed by the company |
| Market rent | - The annualised market rent of the management properties, fully let as of the relevant date, expressed as the average of market rents estimated by the Independent Appraisers |
| Market value of portfolio | - The market value of all properties owned by the parent company and subsidiaries. The figure does not include Inventory properties. |
| Net income from property | - Net income from property management is calculated as Net Income less value changes, tax effects and other income and other |
| management | cost from associates and JVs |
| Net letting | - Net letting is calculated as the annualised rent of new lease contracts plus lease-up on renegotiated contracts less terminated |
| contracts | |
| Net nominal interest bearing debt | - Nominal interest bearing debt less cash and bank deposits |
| Net rent | - 12 months rolling rent less the Independent Appraisers' estimate of ownership costs of the management properties of the Group |
| Net yield | - Net rent divided by the market value of the management properties of the Group |
| Occupancy | - Estimated market rent of occupied space of the management properties, divided by the market rent of the total space of the management portfolio. |
| Outstanding shares | - The number of shares registered with a deduction for the company's own repurchased shares at a given point in time. EPRA Earnings and Cash Earnings per share amounts are calculated using the weighted average number of ordinary shares outstanding during the period. All other per share amounts are calculated using the number of ordinary shares outstanding at period end. |
| Period-on-period | - Comparison between one period and the equivalent period the previous year |
| Property portfolio | - Properties owned by the parent company and subsidiaries, regardless of their classification for accounting purposes. Does not include the market value of properties in associates and jointly controlled entities |
| Project properties | - Properties where it has been decided to start construction of a new building and/or renovation |
| Total area | - Total area including the area of management properties, project properties and land / development properties |
| Total net nominal interest bearing | - Net nominal interest bearing debt and other interest bearing liabilities, including seller's credits and lease liabilities for land and |
| debt | parking lots in connection with the property portfolio |
| WAULT | - Weighted Average Unexpired Lease Term measured as the remaining contractual rent amounts of the current lease contracts of |
| the management properties of the Group, including areas that have been re-let and signed new contracts, adjusted for | |
| termination rights and excluding any renewal options, divided by Contractual rent, including renewed and signed new contracts. |
Contact info
Sonja Horn CEO Phone: + 47 905 68 456 [email protected]
Anders Olstad CFO Phone: + 47 900 22 559 [email protected]
Tone K. Omsted Head of IR Phone: + 47 982 28 510 [email protected]
Entra ASA Post box 52 Økern 0508 Oslo, Norway Phone: + 47 21 60 51 00 [email protected]
Financial calendar
Third quarter 2020 16.10.2020
Fourth quarter 2020 12.02.2021
Head office Biskop Gunnerus' gate 14 A 0185 Oslo, Norway
Postal address Post box 52 Økern 0508 Oslo, Norway
Phone: +47 21 60 51 00 [email protected]
Customer service centre Phone: +47 800 36 872 [email protected]
www.entra.no