Eiendomsspar (EISP) Q1 2025 earnings summary

Executive summary

• Rental income for Q1 2025 was NOK 290.6 million, up from NOK 253.1 million year-over-year, driven by property acquisitions, higher turnover-based hotel rents, and CPI adjustments.

• Pre-tax profit for Q1 2025 was NOK 72.5 million, down from NOK 160.7 million in Q1 2024, mainly due to lower results from associated companies and higher financial costs.

• Cash flow before tax per share was NOK 6.58, compared to NOK 5.69 in Q1 2024.

• Liquidity reserve at the end of Q1 2025 was NOK 1,765 million.

Financial highlights

• Gross operating profit for Q1 2025 was NOK 270.1 million, up from NOK 233.0 million year-over-year.

• Cash flow before tax (including joint ventures and associates) was NOK 219.1 million, up from NOK 188.9 million.

• Net interest-bearing debt was NOK 12,388 million as of March 31, 2025.

• Average interest rate on debt was 4.6%, unchanged from year-end.

Outlook and guidance

• Norges Bank signaled one to two rate cuts in 2025, with the first expected in June or September.

• Volatility in the interest rate market is expected due to global uncertainties, especially related to US policy and geopolitical risks.

• Rental prices for office space may weaken in 2025 due to increased supply.

• Hotel market expected to remain strong, with limited new capacity and continued high demand, especially from international tourists.

• Residential prices and rents are expected to continue rising, driven by low supply and real wage growth.