Aurora Eiendom (AURA) Q2 2024 earnings summary

Executive summary

• Rental income in Q2 2024 was NOK 147 million, up 2.7% like-for-like from Q2 2023, with net income from property management at NOK 120 million, up from NOK 118 million.

• Occupancy decreased to 96.6% due to two large lease expirations, but a new lease was signed in August to replace one.

• Gross tenant turnover in wholly owned centers reached NOK 2,191 million, a 2.5% like-for-like increase year-over-year.

• All shopping centers are now BREEAM In-Use certified, with two rated "Outstanding," four "Excellent," and two "Very Good."

• Alti Forvaltning expanded its managed portfolio to 51 centers across Norway.

Financial highlights

• Net income for Q2 2024 was NOK 16.4 million, compared to a loss of NOK 27.3 million in Q2 2023.

• Rental income for H1 2024 was NOK 297 million, up from NOK 287 million in H1 2023, a 3.2% like-for-like increase.

• Net income from property management for H1 2024 was NOK 247 million, up from NOK 243 million year-over-year.

• Fair value adjustments on investment properties were negative NOK 38 million in Q2 and negative NOK 52 million YTD.

• Profit before tax, including fair value adjustments, was NOK 16 million in Q2 and NOK 81 million YTD.

Outlook and guidance

• Despite geopolitical unrest, weak NOK, and high interest rates, shopping centers performed steadily.

• Market interest rates have stabilized, with Norges Bank forecasting rate cuts in coming years.

• Aurora is well positioned with a solid balance sheet, 53% LTV, and half of debt hedged.

• Management expects continued strong performance due to a diversified portfolio and proactive tenant management.