Quarterly Report • Feb 11, 2022
Quarterly Report
Open in ViewerOpens in native device viewer
Property management
EPRA NRV
| All amounts in NOK million | Q4-21 | Q4-20 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|
| Rental income | 677 | 590 | 2 508 | 2 353 | 2 338 | 2 243 |
| Change period-on-period | 15 % | -1 % | 7 % | 1 % | 4 % | 8 % |
| Net operating income | 614 | 533 | 2 274 | 2 142 | 2 149 | 2 058 |
| Change period-on-period | 15 % | -3 % | 6 % | 0 % | 4 % | 8 % |
| Net income from property management1) | 392 | 362 | 1 534 | 1 451 | 1 471 | 1 434 |
| Change period-on-period | 8 % | -6 % | 6 % | -1 % | 3 % | 14 % |
| Net value changes1) | 2 832 | 4 533 | 5 264 | 5 705 | 1 955 | 1 486 |
| Change period-on-period | -38 % | 697 % | -8 % | 192 % | 32 % | -58 % |
| Profit before tax | 3 216 | 4 923 | 6 825 | 7 274 | 3 735 | 3 073 |
| Change period-on-period | -35 % | 373 % | -6 % | 95 % | 22 % | -39 % |
| Profit after tax | 2 543 | 3 846 | 5 373 | 5 696 | 3 225 | 2 735 |
| Change period-on-period | -34 % | 273 % | -6 % | 77 % | 18 % | -39 % |
| Market value of the property portfolio1) | 67 547 | 56 746 | 67 547 | 56 746 | 48 964 | 45 630 |
| Net nominal interest bearing debt1) | 26 594 | 20 930 | 26 594 | 20 930 | 19 585 | 18 941 |
| Loan to value1) 2) | 38.4 % | 36.4 % | 38.4 % | 36.4 % | 39.6 % | 40.5 % |
| Interest coverage ratio1) | 3.4 | 3.5 | 3.5 | 3.4 | 3.3 | 3.6 |
| Average outstanding shares (million) | 182.1 | 182.1 | 182.1 | 182.1 | 182.4 | 183.6 |
| All amounts in NOK per share | Q4-21 | Q4-20 | 2021 | 2020 | 2019 | 2018 |
| EPRA NRV1) | 218 | 189 | 218 | 189 | 154 | 144 |
| Change period-on-period | 15 % | 23% | 15% | 23 % | 7 % | 10 % |
| EPRA NTA1) | 216 | 187 | 216 | 187 | 153 | 142 |
| Change period-on-period | 15 % | 23% | 15% | 23 % | 8 % | 10 % |
| EPRA Earnings1) | 1.56 | 1.44 | 6.07 | 5.73 | 5.81 | 5.59 |
| Change period-on-period | 8 % | -6 % | 6 % | -1 % | 4 % | 7 % |
| Cash Earnings1) | 2.11 | 1.92 | 8.32 | 7.83 | 8.01 | 7.74 |
| Change period-on-period | 10 % | -9 % | 6 % | -2 % | 3 % | 14 % |
| Dividend3) | 2.60 | 2.50 | 5.10 | 4.90 | 4.70 | 4.50 |
| Change period-on-period | 4 % | 4 % | 4 % | 4 % | 4 % | 10 % |
Reference
1) Refer to section "Alternative performance measures" for calculation of the key figure
2) The definition of LTV is amended from Q4-21 to be measured by effective leverage. See the section "Definitions" for further information. Comparative figures have been updated to reflect the amended definition.
3) Entra pays semi-annual dividends. Dividend for 2021 constitute dividend approved and paid for the first half of 2021 and proposed dividend for the second half of 2021.
Rental income was up 15 per cent from 590 million in Q4 2020 to 677 million in Q4 2021, and up seven per cent from 2,353 million to 2,508 during the year. The changes in rental income are explained by the factors in the income bridge below.
| All amounts in NOK million | Q4-20 Q4-21 |
2020 2021 |
|---|---|---|
| Rental income previous period | 590 | 2 353 |
| Finalised development projects | 43 | 58 |
| Vacated properties for redevelopment | -2 | -53 |
| Acquisitions | 39 | 91 |
| Divestments | -1 | -3 |
| CPI growth | 4 | 15 |
| Like-for-like growth above CPI | 1 | 35 |
| Other | 3 | 13 |
| Rental income | 677 | 2 508 |
Net contribution from development projects was 41 million in the quarter compared to the same quarter last year. During the last 12 months, Entra has finalised the redevelopment of Universitetsgata 7-9, Universitetsgata 2, Kristian Augusts gate 11, Kristian Augusts gate 13, Hagegata 22-24, Grønland 32 and Holtermanns veg 1-13 phase 1, contributing a total of 43 million on rental income compared to the same quarter last year. However, certain properties have been vacated in the same period for redevelopment and has thus reduced the rental income by 2 million in the quarter.
The acquisition of Lagårdsveien 6 and Kanalpiren in Stavanger, Møllendalsveien 1A and Lars Hilles gate 19 in Bergen and Hagegata 27, Fyrstikkalléen 1 and Universitetsgata 11 (Hotel Savoy) in Oslo contributed with rental income of 39 million compared to the same quarter last year, whereas divestment of Tollbodallmenningen 2A in Bergen in February 2021 reduced rental income by 1 million.
Compared to last year, rental income has been positively affected by an underlying like-for-like growth of 0.9 per cent (5 million) for the quarter and 2.3 per cent (50 million) for the year, of which the underlying CPI adjustment from November 2020 was 0.7 per cent (15 million). 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. The CPI for November 2021 came in at 5.07 per cent.
Other effects stems from an administrative fee of 3 million per quarter during 2021.
Average 12 months rolling rent per square meter was 2,282 (2,210) as of 31.12.21. The increase in 12 months rolling rent over the last four quarters is mainly a result of acquisitions and finalised projects.
RENT (12M ROLLING) PER SQM AND OCCUPANCY RATE
Compared to the same quarter last year, the occupancy rate went down by 10 basis points to 97.8 per cent. The market rental income of vacant space as of 31.12.21 was approximately 60 million on an annualised basis.
Gross letting, including re-negotiated contracts, was 63 million in the quarter of which 34 million is attributable to letting in the project portfolio. Lease contracts with an annual lease of 27 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 22 million (166 million) in the quarter. For 2021, gross letting was 346 million and lease contracts with a total value of 165
million were terminated. Net letting for the year came in at 8 million. 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 an even later impact on the results. Please see the project development section for further information regarding project completion.
The graph above shows the estimated development of contracted rental income based on all reported events, including income effect from acquisitions and divestments, 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.
Total operating costs amounted to 62 million (57 million) in the quarter, and is split as follows:
| All amounts in NOK million |
Q4-21 | Q4-20 | 2021 | 2020 |
|---|---|---|---|---|
| Maintenance Tax, leasehold, |
7 17 |
12 15 |
29 64 |
33 57 |
| insurance Letting and prop. adm. Direct property costs |
24 14 |
15 14 |
89 52 |
70 51 |
| Operating costs | 62 | 57 | 234 | 211 |
As a consequence of the effects explained above, net operating income came in at 614 million (533 million) in the quarter.
Other revenues were 21 million (44 million) in the quarter and other costs were 10 million (37 million). Other revenues and other costs mainly consists of services provided to tenants and 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 at a predetermined price).
Administrative costs amounted to 71 million (55 million) in the quarter. The increase is mainly driven by advisory fees related to the strategic interest for Entra and triggered by Balder's mandatory offer to acquire all outstanding shares in the company.
| All amounts in NOK million |
Q4-21 | Q4-20 | 2021 | 2020 |
|---|---|---|---|---|
| Profit from property management |
-6 | 1 | -9 | 2 |
| Other income and costs | -8 | 28 | 29 | 118 |
| Share of profit from associates and JVs |
-15 | 28 | 19 | 120 |
Share of profit from associates and JVs in the quarter is negative in the quarter, mainly due to lower than anticipated activity in Rebel U2 due to Covid-19 restrictions, and limited completion and delivery of residential apartments and commercial assets in Bjørvika by OSU. See the section Partly owned companies for a detailed breakdown of the results from associates and JVs.
| All amounts in NOK million |
Q4-21 | Q4-20 | 2021 | 2020 |
|---|---|---|---|---|
| Interest and other | 2 | 4 | 7 | 11 |
| finance income | ||||
| Interest and other | ||||
| finance expense | -157 | -128 | -558 | -551 |
| Net realised financials | -155 | -123 | -551 | -541 |
Net realised financials have increased in the fourth quarter of 2021 due to a combination of higher interest rates, higher interest-bearing debt and amortization of discounts on bond issues in the third quarter.
Net income came in at 384 million (390 million) in the quarter. When including only the profit from property management in the results from associates and JVs, net income from property management for the Group was 392 million (362 million), an increase of 8 per cent. For calculation of Net income from property management, see the section Alternative performance measures.
(Annualised, rolling 4 quarters)
Net value changes amounted to 2,832 million (4,533 million) in the quarter.
The valuation of the property portfolio resulted in net positive value changes of 2,771 million (4,469 million) in the quarter. 1,730 million of the total value changes in the fourth quarter of 2021 is related to yield effects. 476 million is attributable to increased market rent expectations mainly in Oslo, but also a significant increase in the other cities. 389 million is related to projects, mainly explained by reduced risk as each project is moving towards completion in combination with improved market conditions. 92 million of the value change is related to the Hinna Park Eiendom portfolio in Stavanger. 62 million is a result of new contracts signed in the quarter, partly offset by effects from terminated contracts. The remaining 22 million stems from other property related changes.
Changes in value of financial instruments were 61 million (64 million) in the quarter. The positive value change is mainly explained by higher long-term interest rates.
Tax payable of 8 million (13 million) in the quarter is mainly related to the partly owned entity Papirbredden in Drammen. The change in deferred tax was 665 million (1,063 million).
Profit before tax was 3,216 million (4,923 million) in the quarter. Profit after tax was 2,543 million (3,846 million), and total comprehensive income was 2,521 million (3,827 million) in the quarter.
EPRA Earnings amounted to 283 million (262 million) in the third quarter.
The Group's assets amounted to 70,292 million (59,141 million) as at 31.12.21. Of this, investment properties amounted to 67,568 million (56,834 million). The property Borkenveien 1-3 in Sandvika is classified as held for sale on 31 December 2021 as the tenant has exercised the option to acquire the property during 2022.
Inventory properties of 469 million (461 million) at the end of the quarter relates to the properties expected to be zoned for residential development at Bryn in Oslo, and subsequently sold to a third party at a predetermined price.
Interest bearing debt were 26,579 million (21,146 million) as of 31.12.21, of which 19,582 million were bonds outstanding, 5,597 million were bank financing and 1,400 million were commercial papers.
Book equity totalled 33,571 million (29,205 million) at 31.12.21. EPRA NRV per share was 218 (189) and EPRA NTA 216 (187).
Net cash flow from operating activities came in at 392 million (285 million) in the quarter. The increase mainly relates to working capital movements.
The net cash flow from investment activities was -437 million (-301 million) in the quarter, mainly driven by the cash effect from investment in and upgrades of investment properties of -653 million (-293 million). Net payment on financial assets of 67 million (72 million) is mainly related to a seller credit in relation to a divestment of a property in 2019.
Net cash flow from financing acitivites was 98 million (-70 million) in the quarter. During the quarter, Entra had an increase in bank and commercial paper financing of 339 million and 250 million, respectively. In addition, Entra paid dividends of 455 million.
The net change in cash and cash equivalents was 53 million (-86 million) in the quarter.
During the fourth quarter, Entra's nominal interest bearing debt increased by 589 million to 26,903 million. The change in interest bearing debt came from an increase in bank and commercial paper financing of 339 million and 250 million, respectively.
In the quarter, Entra secured a ten-year green term-loan facility of 1,000 million with the Nordic Investment Bank. The facility is earmarked to the Entra redevelopment projects in Tordenskiolds gate 12 and St. Olavs plass 5 in Oslo with the aim of improving the energy efficiency of the buildings to increase the value offered to both owners and tenants. Both buildings are expected to be aligned with the EU Taxonomy for climate change mitigation and scheduled for completion in Q3 2022. The targeted certification level for both properties is BREEAM In-Use Excellent.
Further, Entra has extended bank facilities of 2,000 million by by using extension options in the loan agreements. In addition, Entra issued commercial paper loans of 900 million.
As of 31.12.21, net nominal interest bearing debt after deduction of liquid assets of 309 million (217 million) was 26,594 million (20,930 million).
The average remaining term for the Group's debt portfolio was 6.1 years at 31.12.21 (5.4 years as of 31.12.20, 6.1 years as of 30.09.21). 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. As of 31.12.21, 79 per cent (72 per cent) of the Group's financing came from debt capital markets.
| Maturity profile | 0-1 yrs | 1-2 yrs | 2-3 yrs | 3-4 yrs | 4+ yrs | Total | % |
|---|---|---|---|---|---|---|---|
| Commercial papers (NOKm) | 1 400 | 0 | 0 | 0 | 0 | 1 400 | 5 |
| Bonds (NOKm) | 2 345 | 1 579 | 924 | 1 600 | 13 438 | 19 886 | 74 |
| Bank loans (NOKm) | 0 | 1 020 | 272 | 1 420 | 2 905 | 5 617 | 21 |
| Total (NOKm) | 3 745 | 2 599 | 1 196 | 3 020 | 16 343 | 26 903 | 100 |
| Unutilised credit facilities (NOKm) | 0 | 0 | 1 500 | 3 080 | 4 250 | 8 830 | |
| Unutilised credit facilities (%) | 0 | 0 | 17 | 35 | 48 | 100 |
| All amounts in NOK millions | 31.12.2021 | Finance policy |
|---|---|---|
| Loan-to-value (LTV) | 38.4 % | Below 50 per cent over time |
| Interest coverage ratio (ICR) | 3.4 | Min. 1.8x |
| Debt maturities <12 months | 14 % | Max 30% |
| Maturity of hedges <12 months | 53 % | Max 60% |
| Average time to maturity (hedges) | 3.1 | 2-6 years |
| Back-stop of short-term interest bearing debt | 236 % | Min. 100% |
| Average time to maturity (debt) | 6.1 | Min. 3 years |
1) The definition of LTV is amended from Q4-21. See the section "Definitions" for further information.
The average interest rate1) of the debt portfolio was 2.25 per cent (2.38 per cent) as at 31.12.21. The change in average interest rate stems mainly from repurchase of outstanding bonds with high coupon rates.
47 per cent (50 per cent) of the Group's financing was hedged at a fixed interest rate as at 31.12.21 with a weighted average maturity of 3.1 years (2.4 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.
| <1 year | 1-2 yrs | 2-3 yrs | 3-4 yrs | 4-5 yrs | 5-6 yrs | 6-7 yrs | 7-8 yrs | 8-9 yrs 9-10 yrs | >10 yrs | Total | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed rate instruments2) (NOKm) | 1 332 | 745 | 1 300 | 2 700 | 3 839 | 1 050 | 1 000 | 1 400 | 400 | 100 | 0 | 13 866 |
| Interest rate (%) | 1.83 | 2.81 | 2.55 | 1.94 | 1.84 | 2.10 | 0.92 | 1.50 | 5.63 | 1.75 | 0.00 | 1.99 |
| Forward starting swaps³) (NOKm) | 3 000 | 3 000 | ||||||||||
| Interest rate (%) | 1.73 | 1.73 | ||||||||||
| Tenor (years) | 7 | 7 | ||||||||||
| Maturity credit margins (NOKm) | 5 992 | 1 579 | 924 | 2 470 | 4 029 | 2 094 | 2 000 | 3 400 | 3 915 | 500 | 0 | 26 903 |
| Credit margin (%) | 0.99 | 1.06 | 0.80 | 0.75 | 0.77 | 0.86 | 0.84 | 0.76 | 0.74 | 0.85 | 0.00 | 0.84 |
¹ ) Average reference rate (Nibor) is 0.79 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.
Entra's management portfolio consists of 80 properties with a total area of approximately 1.2 million square meters. As of 31.12.21, the management portfolio had a market value of 60.1 billion. The occupancy rate was 97.8 per cent (97.3 per cent). The weighted average lease term for the Group's leases was 6.8 years (6.9) for the management portfolio and 7.1 years (7.1) when the project portfolio is included. For the management portfolio, the public sector represents approximately 56 per cent of the total rental income. The entire property portfolio consists of 96 properties with a market value of 67.5 billion.
Entra's properties are valued by two external appraisers (Akershus Eiendom/JLL and Newsec) on a quarterly basis. The market value of the portfolio in Entra's balance sheet is based on the average of the appraisers' valuation. Valuation of the management portfolio is performed on a property by property basis, using individual DCF models and taking into account the property's current characteristics combined with the external
appraiser's estimated return requirements and expectations on future market development.
The market value is defined as the external appraiser's estimated transaction value of the individual properties on valuation date. The project portfolio is valued based on the same principles, but with deduction for remaining investments and perceived risk as of valuation date. The land and development portfolio is valued based on actually zoned land.
Year-on-year, the portfolio net yield is reduced from 4.44 to 4.24 per cent. 12 months rolling rent per square meter increased from 2,210 to 2,282 mainly driven by projects that are finalized in Central Oslo and by transactions of new properties to the portfolio.
The market rent per square meter has increased by 0.5 per cent from the fourth quarter of 2020, from 2,320 to 2,332.
| 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 | 635 820 | 97.8 | 7.2 | 39 729 | 62 485 | 1 683 | 2 647 | 3.96 | 1 732 | 2 724 |
| Trondheim | 10 | 152 188 | 98.7 | 6.3 | 5 589 | 36 722 | 297 | 1 953 | 5.01 | 278 | 1 826 |
| Bergen | 8 | 115 695 | 98.0 | 5.0 | 5 560 | 48 056 | 251 | 2 168 | 4.16 | 292 | 2 523 |
| Sandvika | 9 | 98 989 | 99.6 | 6.8 | 3 267 | 33 006 | 177 | 1 783 | 5.14 | 159 | 1 608 |
| Stavanger | 7 | 121 404 | 94.1 | 6.0 | 3 249 | 26 762 | 175 | 1 441 | 4.89 | 189 | 1 559 |
| Drammen | 8 | 69 421 | 99.1 | 8.5 | 2 707 | 38 991 | 141 | 2 034 | 4.94 | 133 | 1 923 |
| Management portfolio |
80 | 1 193 517 | 97.8 | 6.8 | 60 101 | 50 356 | 2 724 | 2 282 | 4.24 | 2 784 | 2 332 |
| Project portfolio | 11 | 154 090 | 9.6 | 6 463 | 41 943 | ||||||
| Development sites | 5 | 109 847 | 0.4 | 984 | 8 956 | ||||||
| Property portfolio | 96 | 1 457 453 | 7.1 | 67 547 | 46 346 |
1) See the section "Definitions". The calculation of net yield is based on the appraisers' assumption of ownership costs, which at 31.12.21 is 6.5 per cent of market rent.
During the fourth quarter, Entra signed new and renegotiated leases with an annual rent totaling 63 million (25,400 square meters) and received notices of termination on leases with an annual rent of 27 million (9,900 square meters). Net letting was 22 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. On an annual basis, Entra signed and renegotiated lease contracts of a total of 346 million, while lease contracts of 165 million was terminated. Net letting was 8 million.
Entra has invested a total of 633 million (433 million) in the portfolio of investment properties in the fourth quarter, and 5,766 million (1,807 million) in 2021. The decomposition of the investments is as follows:
| All amounts in NOK million | Q4-21 | Q4-20 | 2021 | 2020 |
|---|---|---|---|---|
| Acquisitions | -37 | 37 | 3 500 | 193 |
| Developments | 568 | 309 | 1 837 | 1 306 |
| - Newbuild projects | 173 | 37 | 455 | 83 |
| - Redevelopment projects1) | 321 | 241 | 1 090 | 1 176 |
| - Refurbishment1) | 74 | 31 | 294 | 46 |
| Investment properties | 100 | 76 | 387 | 274 |
| - Incremental lettable space | - | - | - | - |
| - No incremental lettable space and tenant incentives | 63 | 62 | 260 | 186 |
| - Other material non-allocated types of expenditure | 37 | 14 | 127 | 88 |
| Capitalised interest | 3 | 12 | 42 | 35 |
| Total Capital Expenditure | 633 | 433 | 5 766 | 1 807 |
| Conversion from accrual to cash basis | 17 | -103 | -149 | 70 |
| Total Capital Expenditure on cash basis | 651 | 330 | 5 617 | 1 877 |
1)Also includes tenant alterations and maintenance capex when this is done as a part of asset redevelopment or refurbishment
The portfolio of ongoing projects 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) (%) |
|
|---|---|---|---|---|---|---|---|---|
| Redevelopment | ||||||||
| St. Olavs plass 5 | 100 | Oslo | Q3-22 | 16 500 | 95 | 1 148 | 939 | 4.9 |
| Tordenskiolds gate 12 | 100 | Oslo | Q3-22 | 13 000 | 92 | 1 182 | 876 | 4.6 |
| Stenersgata 1 | 100 | Oslo | Q2-23 | 15 800 | 57 | 1 166 | 765 | 4.5 |
| Schweigaards gate 15 | 100 | Oslo | Q2-23 / Q1-24 | 22 900 | 34 | 1 362 | 738 | 4.7 |
| Møllendalsveien 6-8 | 100 | Bergen | Q4-21 / Q4-22 | 14 200 | 95 | 673 | 497 | 5.0 |
| Newbuild | ||||||||
| Nygårdsgaten 91-93 | 100 | Bergen | Q4-22 | 11 900 | 58 | 619 | 385 | 5.5 |
| Holtermanns veg 1-13 phase 2 | 100 | Trondheim | Q2-23 | 20 900 | 29 | 703 | 262 | 5.7 |
| Total | 115 200 | 66 3) | 6 853 | 4 463 |
1) Total project cost (including book value at date of investment decision/cost of land), excluding capitalized interest cost
2) Estimated net rent (fully let) at completion/total project cost (including cost of land)
3) Weighted average occupancy of the project portfolio
At St. Olavs plass 5, Entra is redeveloping a 16,500 sqm office property located near Tullinkvartalet in Oslo. The project is scheduled for completion in Q3 2022 with occupancy currently at 95 per cent. The project is planned with a BREEAM-NOR Very Good classification.
In the middle of Oslo's central business district, Entra is redeveloping Tordenskiolds gate 12 for completion in Q3 2022. The property is 13,000 sqm and is 92 per cent pre-let.
Entra is also redeveloping 15,800 sqm in Stenersgata 1. This is the first phase of a redevelopment project comprising the office spaces. The project is 57 per cent pre-let. Tenant optionality has conservatively been taken into consideration in the occupancy rate. The project is expected to be completed in Q2 2023 with a BREEAM-NOR Very Good classification.
Schweigaards gate 15 is a 22,900 sqm office building located near Oslo central station. The redevelopment is estimated for completion in Q2 2023. The project is 34 per cent pre-let.
Entra is further redeveloping the 14,200 sqm property in Møllendalsveien 6-8 in Bergen. The project is now 95 per cent pre-let to two public tenants on 10-year contracts. The property is redeveloped in two phases. The first phase was completed in Q4 2021, and the second phase will be completed in Q4 2022.
Entra is building a new 11,900 sqm office building at Nygårdsgaten 91-93 in central Bergen. The project is planned for completion in Q4 2022, and the project is currently 58 per cent pre-let. The project aims for a BREEAM-NOR Excellent classification.
In Holtermanns veg 1-13 in Trondheim, Entra is constructing a 20,900 sqm office building. This is the second of three planned buildings totaling 48,000 sqm and is currently 29 per cent prelet. Expected completion is in Q2 2023. The project aims for a BREEAM-NOR Excellent classification.
Entra finalised the refurbishment of 10,100 sqm in Hagegata 22-24 at Tøyen in Oslo. The project area made up almost half of the building, and occupancy in the project space remained at about 85 per cent during the construction period. The project was 100 per cent let.
Entra actively seeks to improve the quality of its property portfolio and focuses on acquisitions of selected properties and urban development projects in specific areas within its four core markets: Oslo and the surrounding region, Bergen, Trondheim and Stavanger. Targeted locations include both areas in the city centers and selected clusters on public transportation hubs outside the city centers, allowing Entra to offer rental opportunities at a price 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 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.
| Acquired properties | Area | Transaction quarter |
No of sqm | Transaction value |
Closing quarter |
|---|---|---|---|---|---|
| Oslo Areal portfolio | Oslo | Q4 2021 | 222 500 | 13 550 | Q1 2022 |
| Universitetsgata 11 (Hotel Savoy) | Oslo | Q3 2021 | 5 550 | 185 | Q3 2021 |
| 16.7 % of Oslo S Utvikling | Oslo | Q2 2021 | - | 475 | Q3 2021 |
| Lars Hilles gate 19 | Bergen | Q2 2021 | 5 900 | 298 | Q2 2021 |
| Fyrstikkalléen 1 | Oslo | Q2 2021 | 39 640 | 2 399 | Q2 2021 |
| Kanalpiren (through 50 % owned company Hinna Park Eiendom) | Stavanger | Q1 2021 | 25 900 | 375 | Q2 2021 |
| Møllendalsveien 1A | Bergen | Q1 2021 | 5 800 | 208 | Q2 2021 |
| Lagårdsveien 6 | Stavanger | Q1 2021 | 13 600 | 126 | Q1 2021 |
| Østensjøveien 29 | Oslo | Q4 2020 | 2 000 | 44 | Q4 2020 |
| Hagegata 27 (parking) | Oslo | Q3 2020 | - | 36 | Q3 2020 |
| Total | 320 890 | 17 696 | |||
| Divested properties | Area | Transaction quarter |
No of sqm | Transaction value |
Closing date |
|---|---|---|---|---|---|
| Nytorget 1 (sold to 50 % owned company Hinna Park Eiendom) | Stavanger | Q2 2021 | 5 150 | 92 | Q2 2021 |
| Tollbodallmenningen 2A | Bergen | Q1 2021 | 1 800 | 40 | Q1 2021 |
| Total | 6 950 | 132 |
Entra and Drammen Kommune Eiendomsutvikling own Papirbredden Eiendom. The company owns six properties totalling 61,100 sqm and a future development potential of 60,000 sqm in Drammen.
Entra and Camar Eiendom own Hinna Park Eiendom. The company owns five office properties totalling 67,000 sqm and development potential for two new office properties of 48,000 sqm. The company is consolidated in the Group's financial statements as Entra has a controlling vote on the Board of Directors. In January 2022, Entra and Camar Eiendom sold Hinna Park Eiendom to SVG Property. Refer to the Events after the balance sheet date section on page 16 for further information.
Entra and Oslo Pensjonsforsikring (OPF) own Entra OPF Utvikling. The company owns two office properties totalling 59,800 sqm. The company is consolidated in the Group's financial statements as Entra has a controlling vote on the Board of Directors.
Rebel U2 provides facility management services at Universitetsgata 2 in Oslo – with full-service solutions, flexible and short-term leases, co-working, conferences and events.
Oslo S Utvikling ("OSU") is a property development company that is undertaking primarily residential development in Bjørvika, Oslo's CBD East.
| All amounts in NOK million | Papirbredden Eiendom |
Hinna Park Eiendom |
Entra OPF Utvikling |
Total consolidated companies |
OSU | Rebel U2 | Other | Total associated companies & JVs |
|---|---|---|---|---|---|---|---|---|
| Share of ownership (%) | 60 | 50 | 50 | 50 | 50 | |||
| Income | 29 | 25 | 36 | 90 | 0 | 21 | 1 | 22 |
| Net operating income | 27 | 24 | 29 | 79 | 0 | -2 | 1 | -1 |
| Net income | 22 | 11 | 28 | 61 | -20 | -21 | 4 | -38 |
| Net value changes | 93 | 234 | 99 | 426 | 0 | 0 | 0 | 0 |
| Profit before tax | 115 | 245 | 127 | 486 | -20 | -21 | 4 | -38 |
| Tax | -25 | -53 | -27 | -105 | 5 | 5 | -1 | 8 |
| Profit for the period | 90 | 191 | 100 | 381 | -16 | -16 | 2 | -30 |
| Non-controlling interests | 36 | 96 | 50 | 182 | ||||
| Entra's share of profit/* | -8 | -8 | 1 | -15 | ||||
| Book value | 850 | 0 | 22 | 872 |
1) Recognised as Share of profit from associates and JVs
The Norwegian transaction market for commercial real estate reached record levels in 2021, both in terms of volume and in number of transactions. Total transaction value was around 160 billion in 2021 compared to 113 billion in 2020. The transaction pipeline and activity going into 2022 is solid, and the transaction market is expected to remain strong. Investor surveys show that a very high proportion of investors (80-90 per cent) expect to be net buyers in the next 12 months.
New construction volumes in Oslo ended up well below the yearly average construction volume of approximately 140,000 sqm seen over the period 1998-2021. 2022 is expected to see even less new construction due to fluctuating commodity prices and many projects being postponed during the pandemic.
Year-on-year growth in the November CPI, used to adjust most of Entra's leases, came in at 5.07 per cent in 2021. The financing market is well functioning, particularly for solid counterparties like Entra. The Central Bank of Norway increased the policy rate to 0.5 per cent in December 2021 and has signalled further increases over the next 12 months. There is some concern among investors due to projected increase in key policy rates. Yields are, however, not expected to increase significantly as the real interest rate, as a function of the expected interest rate and inflation figures, is expected to be negative for many years to come.
The activity level in the Oslo letting market was very high in the second half of 2021, and rent levels have been slightly positive during the pandemic. According to Entra's Consensus report, the Oslo office vacancy is expected to decrease towards 6.5 per cent as economic activity and employment growth continues. New-build volumes for the coming years is limited, particularly in the city centre of Oslo. Combined with strong underlying CPI growth, there are expectations for solid market rental growth in the years to come.
Bergen has also proven to be robust during the pandemic. Overall office vacancy is currently around eight per cent and seven per cent in the city centre. There is limited supply and fairly strong demand of modern premises in the city centre. Rent levels in Bergen have increased by around seven per cent during 2021, and there has been downward pressure on yields.
In Trondheim, vacancy in the city centre is around seven per cent and around eight per cent overall. Vacancy is highest in the fringe areas of the city. Rent levels in Central Trondheim have increased by around 10 per cent over the last two years.
In Stavanger, vacancy is around nine per cent. For the city centre and at Hinna Park, there is demand for modern, flexible, and centrally located office premises, and rent levels have held up well.
| 2019 | 2020 | 2021e | 2022e | 2023e | 2024e | |
|---|---|---|---|---|---|---|
| Vacancy Oslo, incl. Fornebu and Lysaker (%) | 5.5 | 6.8 | 6.8 | 6.4 | 6.3 | 6.4 |
| Rent per sqm, high standard Oslo office | 3 610 | 3 544 | 3 627 | 3 825 | 3 925 | 4 020 |
| Prime yield (%) | 3.7 | 3.3 | 3.3 | 3.4 | 3.5 | 3.5 |
Source : Entra Consensus report, Q4 2021
At 31.12.21 the Group had 177 (186) employees.
In Q4 2021, Entra had one injury with long term absence from work in the ongoing projects. Entra has a continuous HSE focus and works continually to avoid injuries both in on-going projects and in the operations. Entra had an LTIF rate (number of accidents with lost time per million hours worked in last 12 months) on ongoing projects of 8.1 at the end of the fourth quarter 2021 (4.7 at the end of the fourth quarter 2020).
Entra believes that 100 per cent of its income and investments will be eligible for EU Taxonomy alignment. While actual requirements for alignment are still to be finalised, Entra is prepared to report in accordance with the EU Taxonomy requirements as soon as it is finalised.
Entra assesses risk on an ongoing basis, primarily through semi-annually 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 nonfinancial risk. A thorough description and analysis is included on pages 28-39 in the 2020 annual report.
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 2 February 2022, Entra had 4,583 shareholders. Norwegian investors held approximately 10 per cent of the share capital. The 10 largest shareholders (of which most are nominee accounts) as registered in VPS on 2 February 2022 were:
| Shareholder | % holding |
|---|---|
| Fastighetsbolaget AB Balder | 36.9% |
| Castellum AB | 33.3% |
| J.P. Morgan Securities (Nominee) | 2.3% |
| State Street Bank and Trust (Nominee) | 2.0% |
| The Bank of New York Mellon (Nominee) | 1.3% |
| Danske Invest Norske Institusjoner | 1.0% |
| Verdipapirfondet Alfred Berg Gambak | 0.8% |
| State Street Bank and Trust (Nominee) | 0.7% |
| State Street Bank and Trust (Nominee) | 0.7% |
| State Street Bank and Trust (Nominee) | 0.7% |
| SUM 10 LARGEST SHAREHOLDERS | 79.7% |
On 12 January 2022, Entra closed the acquisition of the Oslo Areal portfolio, with 17 properties in the Greater Oslo Region with property value of 13,550 million.
In January 2022, Entra divested its 50 per cent share in Hinna Park Eiendom to the newly established SVG Property AS ("SVG Property"). As settlement, Entra received 15 per cent of the shares in SVG Property, 64 million through a seller credit and a cash consideration of 99 million. Hinna Park Eiendom will be deconsolidated from Entra's financial statements from closing of the transaction, and the investment in SVG Property will be recognized as a financial asset at fair value through profit and loss.
The annual general meeting in Entra ASA will be held on 22 April 2022. 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 2.60 per share for the second half of 2021. In October 2021, Entra paid out NOK 2.50 per share for the first six months of 2021. For the financial year 2021, Entra will thus have paid out NOK 5.10 per share, compared to NOK 4.90 per share in 2020. Refer to the section "Alternative performance measures" for calculation of Cash Earnings.
When entering what might be the final stage of the Covid-19 pandemic, it is fair to conclude that the Norwegian society and office market has been less affected than most other countries. Further, Entra has proved to be very resilient, and our operations, projects and financial results have been only marginally impacted.
A shift to hybrid work seems abundantly clear for office and knowledge workers. However, both market data and Entra's experience throughout the last two years suggest only marginal cuts in demand for office space, primarily driven by three factors. Firstly, high density at the office is uncomfortable, and employees in general want more room around their desks than previously. Secondly, the office of the future must be more inviting to attract talent, and many tenants plan to implement more spacious, lounge-style, open seating plans and meeting rooms that accommodate a mix of in-person and remote participants. Thirdly, many employees want to work from home on Mondays and Fridays. As such, the need to facilitate for simultaneity in the office means that the shift towards hybrid office solutions might only offers meagre opportunities to economize on office space. In short, employers are reshaping offices to become more inviting social spaces that encourage face-to-face collaboration, creativity, and serendipitous interactions, which will benefit landlords like Entra.
Office rents in Norway have held up well throughout the pandemic, and the activity in the letting market has picked up. Entra is thus well positioned in a solid Norwegian economy supported by strong public funding and a property market with low office vacancy rates and expectations for continued rental growth.
Long-term interest rates have during recent months trailed upwards, which in isolation should impact investors' yield requirements. However, strong CPI growth, that is fully implemented into Entra's tenant contracts, and an expected very positive rental market particularly in Oslo, combined with solid macro and continued good investor appetite for
commercial real estate, should provide a strong mitigating force. The investment market is very active and competitive, and prime yields have remained stable.
Sustainability has been an integrated part of Entra's business model for more than 10 years. Entra is working actively to reduce the CO2 footprint of its property portfolio and has a firm ambition to become a net zero carbon company by 2030. Assets representing almost 69 per cent of the value of the management portfolio are, or in the process of being, BREEAM certified. Entra issued its first green bond in 2016 and currently has 69 per cent of its debt portfolio in green bonds and bank loans.
With the acquisition of Oslo Areal, a portfolio of 17 properties located within Entra's existing clusters that was closed on 12 January 2022, Entra has significantly increased its exposure to Oslo and enhanced and expanded Entra's attractive project development pipeline for the years to come.
Even after the fully debt-financed 13.5 billion acquisition of Oslo Areal, Entra has a strong balance sheet, a well staggered debt maturity profile, and a diversified financing mix with an ample supply of unutilized credit facilities. Going forward, Entra will optimize and grow its high-quality portfolio and continue to build and progress the development pipeline. Entra will focus on its role as an urban developer and leverage its competitive advantages, including expertise, network and ESG leadership.
Entra owns and manages modern, flexible and environmentally friendly assets located in selected clusters near public transportation hubs. Combined with a solid tenant base with long lease contracts, a strong financial position, and an extensive project pipeline for future growth, Entra has a proven and resilient business profile that is well positioned for the future.
Oslo, 10 February 2022
The Board of Entra ASA
| Rental income 677 590 2 508 2 353 Operating costs -62 -57 -234 -211 Net operating income 614 533 2 274 2 142 Other revenues 21 44 73 113 Other costs -10 -37 -43 -79 Administrative costs -71 -55 -210 -186 Share of profit from associates and JVs -15 28 19 120 Net realised financials -155 -123 -551 -541 Net income 384 390 1 561 1 569 - of which net income from property management 392 362 1 534 1 451 Changes in value of investment properties 2 771 4 469 5 057 5 980 Changes in value of financial instruments 61 64 206 -275 Profit before tax 3 216 4 923 6 825 7 274 Tax payable -8 -13 -19 -26 Change in deferred tax -665 -1 063 -1 433 -1 552 Profit for period/year 2 543 3 846 5 373 5 696 Actuarial gains and losses -29 -25 -29 -25 Change in deferred tax on comprehensive income 6 5 6 5 Total comprehensive income for the period/year 2 521 3 827 5 351 5 677 Profit attributable to: Equity holders of the Company 2 362 3 728 5 064 5 460 Non-controlling interest 182 118 309 236 Total comprehensive income attributable to: Equity holders of the Company 2 339 3 709 5 042 5 440 Non-controlling interest 182 118 309 236 |
All amounts in NOK million | Q4-21 | Q4-20 | 2021 | 2020 |
|---|---|---|---|---|---|
| All amounts in NOK million | 31.12.2021 | 31.12.2020 |
|---|---|---|
| Intangible assets | 109 | 109 |
| Investment properties | 67 568 | 56 834 |
| Other operating assets | 28 | 17 |
| Investments in associates and JVs | 872 | 527 |
| Financial derivatives | 254 | 347 |
| Long-term receivables and other assets | 225 | 252 |
| Total non-current assets | 69 056 | 58 086 |
| Inventory properties | 469 | 461 |
| Trade receivables | 77 | 64 |
| Other receivables and other current assets | 295 | 279 |
| Cash and bank deposits | 309 | 217 |
| Total current assets | 1 149 | 1 021 |
| Investment properties held for sale | 87 | 33 |
| Total assets | 70 292 | 59 141 |
| Shareholders' equity | 31 263 | 27 136 |
| Non-controlling interests | 2 308 | 2 069 |
| Total equity | 33 571 | 29 205 |
| Interest bearing debt | 22 788 | 19 095 |
| Deferred tax liability | 8 307 | 6 914 |
| Financial derivatives | 355 | 690 |
| Other non-current liabilities | 650 | 554 |
| Total non-current liabilities | 32 099 | 27 253 |
| Interest bearing debt | 3 791 | 2 051 |
| Trade payables | 465 | 281 |
| Other current liabilities | 367 | 350 |
| Total current liabilities | 4 622 | 2 683 |
| Total liabilities | 36 722 | 29 936 |
| Total equity and liabilities | 70 292 | 59 141 |
| Other | Non | |||||
|---|---|---|---|---|---|---|
| Share | Treasury | paid-in | Retained | controlling | Total | |
| All amounts in NOK million | capital | shares | capital | earnings | interests | equity |
| Equity 31.12.2019 | 182 | 0 | 3 523 | 18 865 | 1 947 | 24 517 |
| Profit for period | 5 460 | 236 | 5 696 | |||
| Other comprehensive income | -19 | -19 | ||||
| Dividend | -874 | -114 | -989 | |||
| Net equity effect of LTI & employee share saving schemes | 0 | 0 | -1 | 0 | ||
| Equity 31.12.2020 | 182 | 0 | 3 524 | 23 430 | 2 069 | 29 205 |
| Profit for period | 5 064 | 309 | 5 373 | |||
| Other comprehensive income | -23 | -23 | ||||
| Dividend | -911 | -70 | -981 | |||
| Net equity effect of LTI & employee share saving schemes | 0 | 0 | -4 | -4 | ||
| Equity 31.12.2021 | 182 | 0 | 3 524 | 27 557 | 2 308 | 33 571 |
| All amounts in NOK million | Q4-21 | Q4-20 | 2021 | 2020 |
|---|---|---|---|---|
| Profit before tax | 3 216 | 4 923 | 6 825 | 7 274 |
| Income tax paid | 0 | -2 | -11 | -11 |
| Net expensed interest and fees on loans and leases | 155 | 123 | 551 | 541 |
| Net interest and fees paid on loans and leases | -131 | -109 | -603 | -553 |
| Share of profit from associates and jointly controlled entities | 15 | -28 | -19 | -120 |
| Depreciation and amortisation | 2 | 9 | 5 | 13 |
| Changes in value of investment properties | -2 771 | -4 469 | -5 057 | -5 980 |
| Changes in value of financial instruments | -61 | -64 | -206 | 275 |
| Change in working capital | -31 | -98 | 3 | 83 |
| Net cash flow from operating activities | 392 | 285 | 1 488 | 1 521 |
| Proceeds from property transactions | 1 | 0 | 42 | 15 |
| Acquisition of investment properties | 3 | -37 | -3 540 | -194 |
| Investment in and upgrades of investment properties | -653 | -293 | -2 078 | -1 683 |
| Investment in properties for sale and inventory properties | -2 | -42 | -7 | -48 |
| Acquisition of intangible and other non-current assets | -2 | -3 | -13 | -21 |
| Net payment financial assets | 67 | 72 | 70 | 73 |
| Net payment of loans to associates and JVs | 0 | 0 | -16 | -1 |
| Investments in associates and JVs | 0 | 0 | -476 | -13 |
| Dividends from associates and JVs | 150 | 2 | 152 | 3 |
| Net cash flow from investment activities | -437 | -301 | -5 865 | -1 868 |
| Proceeds interest bearing debt | 2 750 | 4 000 | 23 348 | 14 635 |
| Repayment interest bearing debt | -2 161 | -3 536 | -17 888 | -13 390 |
| Repayment of lease liabilities | -2 | -2 | -10 | -9 |
| Dividends paid | -455 | -437 | -911 | -874 |
| Dividends paid to non-controlling interests | -33 | -94 | -70 | -114 |
| Net cash flow from financing activities | 98 | -70 | 4 469 | 246 |
| Change in cash and cash equivalents | 53 | -86 | 92 | -100 |
| Cash and cash equivalents at beginning of period | 256 | 303 | 217 | 317 |
| Cash and cash equivalents at end of period | 309 | 217 | 309 | 217 |
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 2020.
The financial reporting covers Entra ASA, subsidiaries, associated companies and jointly controlled entities. The interim financial statements have not been audited.
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 and a Project Development division. In addition, Entra has group and support functions within accounting, finance, legal, investment, digitalisation, procurement, communication and HR.
The geographic areas do not have their own profit responsibility. The geographical areas are instead followed up on economical and non-economical 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 | 38 | 635 820 | 97.8 | 7.2 | 39 729 | 62 485 | 1 683 | 2 647 | 3.96 | 1 732 | 2 724 |
| Trondheim | 10 | 152 188 | 98.7 | 6.3 | 5 589 | 36 722 | 297 | 1 953 | 5.01 | 278 | 1 826 |
| Bergen | 8 | 115 695 | 98.0 | 5.0 | 5 560 | 48 056 | 251 | 2 168 | 4.16 | 292 | 2 523 |
| Sandvika | 9 | 98 989 | 99.6 | 6.8 | 3 267 | 33 006 | 177 | 1 783 | 5.14 | 159 | 1 608 |
| Stavanger | 7 | 121 404 | 94.1 | 6.0 | 3 249 | 26 762 | 175 | 1 441 | 4.89 | 189 | 1 559 |
| Drammen | 8 | 69 421 | 99.1 | 8.5 | 2 707 | 38 991 | 141 | 2 034 | 4.94 | 133 | 1 923 |
| Management portfolio |
80 | 1 193 517 | 97.8 | 6.8 | 60 101 | 50 356 | 2 724 | 2 282 | 4.24 | 2 784 | 2 332 |
| Project portfolio | 11 | 154 090 | 9.6 | 6 463 | 41 943 | ||||||
| Development sites | 5 | 109 847 | 0.4 | 984 | 8 956 | ||||||
| Property portfolio | 96 | 1 457 453 | 7.1 | 67 547 | 46 346 |
1) See the section "Definitions". The calculation of net yield is based on the appraisers' assumption of ownership costs, which at 31.12.21 is 6.5 per cent of market rent.
| Properties | Area | Occupancy | Wault | Market value | 12 months rolling rent | Net yield | Market rent | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (#) | (sqm) | (%) | (year) | (NOKm) | (NOK/sqm) | (NOKm) | (NOK/sqm) | (%) | (NOKm) | (NOK/sqm) | |
| Oslo | 34 | 550 010 | 98.0 | 6.9 | 31 158 | 56 650 | 1 388 | 2 524 | 4.1 | 1 506 | 2 738 |
| Trondheim | 11 | 158 940 | 97.1 | 7.1 | 5 157 | 32 445 | 288 | 1 813 | 5.3 | 281 | 1 770 |
| Bergen | 7 | 105 045 | 97.1 | 5.4 | 4 712 | 44 859 | 218 | 2 080 | 4.3 | 258 | 2 458 |
| Sandvika | 9 | 98 988 | 99.4 | 7.5 | 3 157 | 31 893 | 177 | 1 790 | 5.3 | 154 | 1 556 |
| Stavanger | 5 | 78 607 | 99.0 | 6.3 | 2 272 | 28 900 | 139 | 1 762 | 5.6 | 129 | 1 641 |
| Drammen | 7 | 62 107 | 97.6 | 9.5 | 2 281 | 36 729 | 119 | 1 909 | 4.9 | 116 | 1 863 |
| Management portfolio |
73 | 1 053 697 | 97.9 | 6.9 | 48 737 | 46 253 | 2 329 | 2 210 | 4.44 | 2 444 | 2 320 |
| Project portfolio | 11 | 162 785 | 9.7 | 7 048 | 43 294 | ||||||
| Development sites | 6 | 128 195 | 5.3 | 961 | 7 497 | ||||||
| Property portfolio | 90 | 1 344 677 | 7.1 | 56 746 | 42 200 |
| Investment properties | 67 568 | 56 834 | 67 568 | 56 834 |
|---|---|---|---|---|
| Investment properties held for sale | 87 | 33 | 87 | 33 |
| Closing balance | 67 655 | 56 867 | 67 655 | 56 867 |
| Changes in value of investment properties | 2 771 | 4 469 | 5 057 | 5 980 |
| Divestment of investment properties | -1 | 0 | -35 | -15 |
| Capitalised borrowing costs | 3 | 12 | 42 | 35 |
| Investment in the property portfolio | 668 | 385 | 2 224 | 1 580 |
| Acquisition of investment properties | -37 | 37 | 3 500 | 193 |
| Closing balance previous period | 64 250 | 50 736 | 56 867 | 49 095 |
| All amounts in NOK million | Q4-21 | Q4-20 | 2021 | 2020 |
Acquisition of investment properties in 2021 is related to the acquisition of Lagårdsveien 6 and Laberget 24-28 (Kanalpiren) in Stavanger, Møllendalsveien 1A and Lars Hilles gate 19 in Bergen, and Fyrstikkalléen 1 and Universitetsgata 11 (Hotel Savoy) in Oslo. Divestment of investment properties in 2021 is related to the divestment of the property Tollbodallmenningen 2A in Bergen.
The property Borkenveien 1-3 in Sandvika is classified as held for sale at 31 December 2021 as the tenant has exercised the option to acquire the property. The transaction is expected to close in the first quarter of 2022.
In addition to the transactions mentioned above, the property Nytorget 1 in Stavanger was in 2021 sold by Entra to Hinna Park Eiendom, a partly owned company controlled by Entra. As Hinna Park Eiendom is consolidated in Entra's financial statements, the transaction is not reflected in the Group's financial statements. In January 2022, Entra and Camar Eiendom sold Hinna Park Eiendom to SVG Property. Refer to the Events after the balance sheet date section on page 16 for further information.
| Total | 355 | 690 | |
|---|---|---|---|
| - Derivatives | Level 2 | 355 | 690 |
| Financial liabilities measured at fair value through profit or loss | |||
| Liabilities measured at fair value: | |||
| Total | 67 941 | 57 251 | |
| - Equity instruments | Level 3 | 32 | 37 |
| - Derivatives | Level 2 | 254 | 347 |
| - Investment properties held for sale | Level 3 | 87 | 33 |
| - Investment properties | Level 3 | 67 568 | 56 834 |
| Assets measured at fair value through profit or loss | |||
| Assets measured at fair value: | |||
| All amounts in NOK million | Fair value level | 31.12.2021 | 31.12.2020 |
Refer to the Events after the balance sheet date section on page 16 for information on significant events after period end.
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.
| All amounts in NOK million | Q4-21 | Q4-20 | 2021 | 2020 |
|---|---|---|---|---|
| Net income | 384 | 390 | 1 561 | 1 569 |
| Less: | ||||
| Other income and costs in associates and JVs | -8 | 28 | 28 | 118 |
| Net income from property management | 392 | 362 | 1 534 | 1 451 |
| Tax payable | -8 | -13 | -19 | -26 |
| Cash Earnings | 384 | 349 | 1 515 | 1 425 |
| All amounts in NOK million | Q4-21 | Q4-20 | 2021 | 2020 |
|---|---|---|---|---|
| Changes in value of investment properties | 2 771 | 4 469 | 5 057 | 5 980 |
| Changes in value of financial instruments | 61 | 64 | 206 | -275 |
| Net value changes | 2 832 | 4 533 | 5 264 | 5 705 |
| Market value of the property portfolio 67 547 |
56 746 |
|---|---|
| Other -108 |
-121 |
| Investment properties held for sale 87 |
33 |
| Investment properties 67 568 |
56 834 |
| All amounts in NOK million 31.12.2021 |
31.12.2020 |
| All amounts in NOK million | 31.12.2021 | 31.12.2020 |
|---|---|---|
| Nominal value of interest bearing debt | 26 903 | 21 146 |
| Cash and bank deposits | -309 | -217 |
| Net nominal interest bearing debt | 26 594 | 20 930 |
| All amounts in NOK million except ratio | 31.12.2021 | 31.12.2020 |
|---|---|---|
| Total debt | 26 996 | 21 545 |
| - Carrying amount of interest bearing debt | 26 579 | 21 146 |
| - Other interest bearing liabilities | 418 | 399 |
| Total assets | 70 292 | 59 141 |
Debt ratio (LTV) % 1) 38.4 36.4 1) The definition of LTV is amended from Q4-21 to be measured by effective leverage. See the section "Definitions" for further information. Comparative figures have been updated to reflect the amended definition.
| All amounts in NOK million except ratio | Q4-21 | Q4-20 | 2021 | 2020 |
|---|---|---|---|---|
| Net income | 384 | 390 | 1 561 | 1 569 |
| Depreciation | 2 | 9 | 5 | 13 |
| Results from associates and joint ventures | 15 | -28 | -19 | -120 |
| Net realised financials | 155 | 123 | 551 | 541 |
| EBITDA adjusted | 555 | 494 | 2 098 | 2 002 |
| Interest cost | 145 | 131 | 552 | 555 |
| Other finance expense | 18 | 8 | 49 | 30 |
| Applicable net interest cost | 163 | 139 | 600 | 585 |
| Interest Coverage Ratio (ICR) | 3.4 | 3.5 | 3.5 | 3.4 |
The following performance indicators have been prepared in accordance with best practices as defined by EPRA (European Public Real Estate Association) in its latest edition of the Best Practices Recommendations Guidelines. Accordingly, Entra presents only the three new NAV metrics; EPRA NRV, EPRA NTA and EPRA NDV; which has replaced the previous NAV metrics EPRA NAV and EPRA NNNAV. The EPRA Best Practices Recommendations Guidelines focus on making the financial statements of public real estate companies clearer and more comparable across Europe. For further information about EPRA, see www.epra.com.
| Summary table EPRA performance measures | Unit | Q4-21 / 31.12.2021 |
Q4-20 / 31.12.2020 |
|
|---|---|---|---|---|
| A | EPRA earnings per share (EPS) | NOK | 1.56 | 1.44 |
| B | EPRA NRV per share | NOK | 218 | 189 |
| EPRA NTA per share | NOK | 216 | 187 | |
| EPRA NDV per share | NOK | 174 | 149 | |
| C | EPRA Net Initial Yield (NIY) | % | 4.21 | 4.42 |
| EPRA, "topped-up" NIY | % | 4.21 | 4.42 | |
| D | EPRA Vacancy Rate | % | 2.0 | 1.9 |
| E | EPRA Cost Ratio (including direct vacancy costs) | % | 19.5 | 18.6 |
| EPRA Cost Ratio (excluding direct vacancy costs) | % | 17.6 | 16.4 |
The details for the calculation of the performance measures are shown on the following pages.
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 residential 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 | Q4-21 IFRS reported |
Q4-21 EPRA adjustments |
Q4-21 Non controlling Interests1) |
Q4-21 EPRA Earnings |
Q4-20 IFRS reported |
Q4-20 EPRA adjustments |
Q4-20 Non controlling Interests1) |
Q4-20 EPRA Earnings |
|---|---|---|---|---|---|---|---|---|
| Rental income | 677 | 0 | 42 | 635 | 590 | 0 | 38 | 552 |
| Operating costs | -62 | 0 | -5 | -57 | -57 | 0 | -2 | -54 |
| Net operating income | 614 | 0 | 37 | 577 | 533 | 0 | 36 | 497 |
| Other revenues | 21 | 0 | 1 | 21 | 44 | 0 | 1 | 43 |
| Other costs | -10 | 0 | 0 | -10 | -37 | 0 | -4 | -33 |
| Administrative costs | -71 | 0 | -2 | -70 | -55 | 0 | -2 | -53 |
| Share of profit from associates and JVs | -15 | -8 | 0 | -7 | 28 | 29 | 0 | 0 |
| Net realised financials | -155 | 0 | -7 | -148 | -123 | 0 | -5 | -118 |
| Net income | 384 | -8 | 28 | 363 | 390 | 29 | 25 | 336 |
| Net value changes | 2 832 | 2 832 | 0 | 0 | 4 533 | 4 533 | 0 | 0 |
| Profit before tax/EPRA Earnings before tax | 3 216 | 2 824 | 28 | 363 | 4 923 | 4 562 | 25 | 336 |
| Tax payable | -8 | 0 | -2 | -6 | -13 | 0 | 0 | -12 |
| Change in deferred tax | -665 | -586 | -4 | -74 | -1 063 | -997 | -5 | -61 |
| Profit for period/EPRA Earnings | 2 543 | 2 238 | 22 | 283 | 3 846 | 3 565 | 20 | 262 |
| Average outstanding shares (million) | 182.1 | 182.1 | ||||||
| EPRA Earnings per share | 1.56 | 1.44 |
1) Excluding non-controlling interests in relation to EPRA adjustments.
| All amounts in NOK million | 2021 IFRS reported |
2021 EPRA adjustments |
2021 Non controlling Interests1) |
2021 EPRA Earnings |
2020 IFRS reported |
2020 EPRA adjustments |
2020 Non controlling Interests1) |
2020 EPRA Earnings |
|---|---|---|---|---|---|---|---|---|
| Rental income | 2 508 | 0 | 164 | 2 344 | 2 353 | 0 | 153 | 2 199 |
| -234 | 0 | -17 | -217 | -211 | 0 | -12 | -199 | |
| Operating costs Net operating income |
2 274 | 0 | 147 | 2 127 | 2 142 | 0 | 142 | 2 000 |
| Other revenues | 73 | 0 | 1 | 72 | 113 | 0 | 2 | 110 |
| Other costs | -43 | 0 | 0 | -43 | -79 | 0 | -4 | -75 |
| Administrative costs | -210 | 0 | -7 | -203 | -186 | 0 | -8 | -179 |
| Share of profit from associates and JVs | 19 | 32 | 0 | -13 | 120 | 121 | 0 | -1 |
| Net realised financials | -551 | 0 | -27 | -524 | -541 | 0 | -23 | -517 |
| Net income | 1 561 | 32 | 113 | 1 417 | 1 569 | 121 | 109 | 1 339 |
| Net value changes | 5 264 | 5 264 | 0 | 0 | 5 705 | 5 705 | 0 | 0 |
| Profit before tax/EPRA Earnings before tax | 6 825 | 5 295 | 113 | 1 417 | 7 274 | 5 826 | 109 | 1 339 |
| Tax payable | -19 | 0 | -6 | -13 | -26 | 0 | -6 | -20 |
| Change in deferred tax | -1 433 | -1 115 | -19 | -299 | -1 552 | -1 259 | -18 | -274 |
| Profit for period/EPRA Earnings | 5 373 | 4 180 | 88 | 1 105 | 5 696 | 4 567 | 85 | 1 044 |
| Average outstanding shares (million) | 182.1 | 182.1 | ||||||
| EPRA Earnings per share | 6.07 | 5.73 |
1) Excluding non-controlling interests in relation to EPRA adjustments.
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 Entra's valuation certificates. Consequently, no adjustment is done for real estate transfer taxes in Entra's calculation of EPRA NRV.
| All amounts in NOK million | 31.12.2021 | 31.12.2021 | 31.12.2021 | 31.12.2020 |
|---|---|---|---|---|
| Attributable to | Attributable | Attributable | ||
| Total | non-controlling interests |
to shareholders (EPRA NRV) |
to shareholders (EPRA NRV) |
|
| IFRS equity | 33 571 | -2 308 | 31 263 | 27 136 |
| Revaluation of investments made in JVs | 426 | 0 | 426 | 249 |
| Revaluation of purchase option | 0 | 0 | 0 | 176 |
| Net Asset Value (NAV) at fair value | 33 996 | -2 308 | 31 689 | 27 561 |
| Deferred tax properties and financial instruments | 8 514 | -462 | 8 053 | 6 673 |
| Net fair value on financial derivatives | 101 | -6 | 94 | 329 |
| Goodwill as a result of deferred tax | -109 | 55 | -55 | -55 |
| EPRA Net Reinstatement Value (NRV) | 42 502 | -2 721 | 39 781 | 34 508 |
| Outstanding shares at period end (million) | 182.1 | 182.1 | ||
| EPRA NRV per share (NOK) | 218 | 189 |
The EPRA NTA is focused on reflecting a company's tangible assets and assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax liability. Entra has adopted second option in the EPRA BPR guidelines to adjust for deferred tax, estimating the real tax liability based how the company has completed property transactions in recent years.
| All amounts in NOK million | 31.12.2021 | 31.12.2021 | 31.12.2021 | 31.12.2020 |
|---|---|---|---|---|
| Attributable to | Attributable | Attributable | ||
| Total | non-controlling interests |
to shareholders (EPRA NTA) |
to shareholders (EPRA NTA) |
|
| IFRS equity | 33 571 | -2 308 | 31 263 | 27 136 |
| Revaluation of investments made in JVs | 426 | 0 | 426 | 249 |
| Revaluation of purchase option | 0 | 0 | 0 | 176 |
| Net Asset Value (NAV) at fair value | 33 996 | -2 308 | 31 689 | 27 561 |
| Reversal deferred tax liability as per balance sheet | 8 307 | -386 | 7 921 | 6 607 |
| Adjustment estimated real tax liability1) | -249 | -51 | -301 | -294 |
| Net fair value on financial derivatives | 101 | -6 | 94 | 329 |
| Goodwill as a result of deferred tax | -109 | 55 | -55 | -55 |
| Intangible assets | 0 | 0 | 0 | 0 |
| EPRA Net Tangible Assets (NTA) | 42 045 | -2 696 | 39 349 | 34 148 |
| Outstanding shares at period end (million) | 182.1 | 182.1 | ||
| EPRA NTA per share (NOK) | 216 | 187 |
1) Estimated real deferred tax liability related to temporary differences of properties has been calculated to 1.2 per cent of the based on a discount rate of 5.0 per cent and the assumption that 50 per cent of the property portfolio are realized over 50 years in transactions structured as sale of properties in corporate wrappers, with an average tax discount of 6.5 per cent. Further, the real tax liability related to the gains/losses account is estimated by assuming an amortisation of 20 per cent annually and a discount rate of 5.0 per cent.
The EPRA NDV measure provides readers of financial reports with a scenario where deferred tax, financial instruments, and certain other adjustments are calculated as to the full extent of their liability. This enables readers of financial reports to understand the full extent of liabilities and resulting shareholder value under an orderly sale of business and/or if liabilities are not held until maturity. The measure should not be viewed as a "liquidation NAV" for Entra, as fair values may not represent liquidation values, and as an immediate realization of Entra's assets may be structured as sale of property-owning companies, resulting in the deferred tax liabilities only partially crystallising.
| All amounts in NOK million | 31.12.2021 | 31.12.2021 | 31.12.2021 | 31.12.2020 |
|---|---|---|---|---|
| Attributable to | Attributable | Attributable | ||
| Total | non-controlling interests |
to shareholders (EPRA NDV) |
to shareholders (EPRA NDV) |
|
| IFRS equity | 33 571 | -2 308 | 31 263 | 27 136 |
| Revaluation of investments made in JVs | 426 | 0 | 426 | 249 |
| Revaluation of purchase option | 0 | 0 | 0 | 176 |
| Net Asset Value (NAV) at fair value | 33 996 | -2 308 | 31 689 | 27 561 |
| Fair value adjustment fixed interest rate debt, net of tax | -5 | 0 | -5 | -378 |
| Goodwill as a result of deferred tax | -109 | 55 | -55 | -55 |
| EPRA Net Disposal Value (NDV) | 33 882 | -2 253 | 31 629 | 27 128 |
| Outstanding shares at period end (million) | 182.1 | 182.1 |
EPRA Net Initial Yield (NIY) measures the annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchasers' costs.
EPRA "topped-up" NIY 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 | 45 004 | 6 220 | 3 365 | 1 611 | 389 | 3 449 | 60 038 |
| Investment property - share of JVs | 0 | 0 | 0 | 954 | 1 391 | 1 642 | 3 986 |
| Total property portfolio | 45 004 | 6 220 | 3 365 | 2 565 | 1 780 | 5 091 | 64 025 |
| Less projects and land and developments | -5 275 | -632 | -98 | -135 | 0 | -1 172 | -7 312 |
| Completed management portfolio | 39 729 | 5 589 | 3 267 | 2 430 | 1 780 | 3 918 | 56 713 |
| Allowance for estimated purchasers' cost | 59 | 17 | 10 | 6 | 6 | 11 | 107 |
| Gross up completed management portfolio valuation | 39 788 | 5 605 | 3 277 | 2 436 | 1 785 | 3 929 | 56 820 |
| 12 months rolling rent | 1 683 | 297 | 177 | 133 | 94 | 176 | 2 560 |
| Estimated ownership cost | 109 | 17 | 8 | 12 | 5 | 15 | 166 |
| Annualised net rents | 1 574 | 280 | 168 | 121 | 89 | 161 | 2 393 |
| 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 | 1 574 | 280 | 168 | 121 | 89 | 161 | 2 393 |
| EPRA NIY | 3.96% | 5.00% | 5.13% | 4.96% | 5.00% | 4.11% | 4.21% |
| EPRA "topped-up" NIY | 3.96% | 5.00% | 5.13% | 4.96% | 5.00% | 4.11% | 4.21% |
Estimated Market Rental Value (ERV) of vacant space divided by the ERV of the whole portfolio. All figures are adjusted for actual share of ownership of each property.
| All amounts in NOK million | Oslo | Trondheim | Sandvika | Stavanger | Drammen | Bergen | Total |
|---|---|---|---|---|---|---|---|
| Market rent vacant areas | 38 | 4 | 1 | 6 | 1 | 4 | 53 |
| Total market rent | 1 732 | 278 | 159 | 137 | 88 | 214 | 2 609 |
| EPRA vacancy rate | 2.2% | 1.3% | 0.4% | 4.1% | 1.2% | 1.9% | 2.0% |
Administrative & operating costs (including & excluding costs of direct vacancy) divided by gross rental income.
| All amounts in NOK million | Q4-21 | Q4-20 | 2021 | 2020 |
|---|---|---|---|---|
| Operating costs | -62 | -57 | -234 | -211 |
| Administrative costs | -71 | -55 | -210 | -186 |
| Less: Ground rent cost | 2 | 2 | 8 | 9 |
| EPRA cost (including direct vacancy cost) | -132 | -110 | -437 | -388 |
| Direct vacancy cost | -13 | -13 | -44 | -44 |
| EPRA cost (excluding direct vacancy cost) | -119 | -97 | -393 | -343 |
| Gross rental income less ground rent | 677 | 590 | 2 508 | 2 353 |
| Total gross rental income less ground rent | 677 | 590 | 2 508 | 2 353 |
| EPRA cost ratio (including direct vacancy cost) | 19.5% | 18.6% | 17.4% | 16.5% |
| EPRA cost ratio (excluding direct vacancy cost) | 17.6% | 16.4% | 15.7% | 14.6% |
| 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 Appraisers' CPI estimates and (iii) the Independent Appraisers' estimates of letting of current and future vacant areas. |
|---|---|
| Capital expenditure | - 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 |
| EPRA NDV – Net Disposal Value | - EPRA NDV is a NAV metric reflecting the IFRS equity including the full extent of the deferred tax liability as per the balance sheet, |
| including fair value of fixed interest rate debt and excluding goodwill as a result of deferred tax. | |
| EPRA NRV – Net Reinstatement Value | - EPRA NRV is a NAV metric reflecting the IFRS equity excluding (i) deferred tax liability as per the balance sheet in respect of properties and financial instruments, (ii) fair value of financial instruments and (iii) goodwill as a result of deferred tax. |
| EPRA NTA – Net Tangible Assets | - EPRA NTA is a NAV metric reflecting the IFRS equity including only the estimated real tax liability, and excluding (i) fair value of financial instruments, and (ii) goodwill and intangible assets as per the balance sheet. |
| 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 acquisition and divestments of properties and active projects |
| Loan-to-value ("LTV") | - Effective leverage, measured by total interest bearing liabilities, including debt, lease liabilities, pension liabilities and seller's credits, divided by total assets. |
| 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 the property portfolio | - The market value of all properties owned by the parent company and subsidiaries. The figure does not include Inventory properties. |
| Net Asset Value ("NAV") | - Net Asset Value the total equity that the company manages for its owners. Entra presents NAV calculations in line with EPRA recommendation, where the difference mainly is explained by the expected turnover of the property portfolio. |
| 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 | costs from residential development in 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 |
| Newbuild | - A new building on bare land |
| Occupancy | - Estimated market rent of occupied space of the management properties, divided by the market rent of the total space of the |
| Outstanding shares | management portfolio. - The number of shares registered less 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 |
| Project properties | include the market value of properties in associates and jointly controlled entities - Properties where it has been decided to start construction of a new building and/or renovation |
| Redevelopment | - Extensive projects such as full knock-down and rebuild, and projects where external walls are being materially impacted (e.g. taking a building back to its core or changing brick facades to glass). |
| Refurbishment | - Projects extensively impacting an existing building, but not knocking it down or materially affecting external walls |
| Total area | - Total area including the area of management properties, project properties and land / development properties |
| Total net nominal interest bearing debt | - Net nominal interest bearing debt and other interest bearing liabilities, including seller's credits and lease liabilities for land and 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.
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]
| First quarter 2022 | 22.04.2022 |
|---|---|
| Second quarter 2022 | 13.07.2022 |
| Third quarter 2022 | 18.10.2022 |
| Fourth quarter 2022 | 09.02.2023 |
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
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.