Eiendomsspar (EISP) Q2 2024 earnings summary

Executive summary

• Rental income increased to NOK 543.7 million for January–June 2024, up from NOK 517.9 million year-over-year, driven by CPI adjustments and higher hotel turnover rents.

• Pre-tax profit was NOK 410.0 million, down from NOK 647.8 million, mainly due to lower sales gains and changes in market-based share write-downs.

• Cash flow before tax per share rose to NOK 15.46 from NOK 15.22 year-over-year.

• Liquidity reserve increased to NOK 2,499 million as of June 30, 2024.

Financial highlights

• Gross operating profit reached NOK 493.3 million, up from NOK 479.9 million year-over-year.

• Net interest-bearing debt stood at NOK 10,740 million, with a cash position of NOK 206 million.

• Average loan interest rate was 4.5%, with 57% of debt at fixed rates and an average maturity of 5 years.

• Equity per share was NOK 33.03, and the share price increased 10% including dividends.

Outlook and guidance

• The company is financially solid with a significant liquidity reserve, well-positioned to handle high interest rates and market volatility.

• Moderate growth in housing prices and continued strong demand for prime retail and office locations are expected.

• Office rental prices may face downward pressure in 2025 due to increased supply.