Eiendomsspar (EISP) Q4 2025 earnings summary

Executive summary

• 2025 marked a record year for property transactions, with strong growth in rental income and pre-tax profit, driven by gains from share sales, improved results from associated companies, and underlying operations.

• Value-adjusted equity per share rose 15% to NOK 669, including dividends.

• Liquidity reserve increased to NOK 2,022 million.

• Major acquisitions and divestments, including increased stakes in key properties and hotel groups, drove significant value creation.

• Ordinary dividend proposed at NOK 11.00 per share, with an additional extraordinary dividend of NOK 40 per share distributed in December 2025.

Financial highlights

• Rental income increased by MNOK 140 for Eiendomsspar and MNOK 11 for Victoria Eiendom in 2025, mainly from acquisitions, new builds, and higher turnover-based rents.

• Pre-tax profit surged to MNOK 2,346 for Eiendomsspar (+196% YoY) and MNOK 1,196 for Victoria Eiendom (+390% YoY), driven by rental growth, investment gains, and one-off items.

• Gross operating profit was NOK 1,168 million (NOK 1,032 million in 2024).

• Financial income surged to NOK 1,417 million, mainly from realized gains on Scandic and Dalata shares.

• Share prices increased 58% and 39% respectively, both trading at a discount to NAV.

Outlook and guidance

• The property market is expected to remain active, with continued rental growth in prime segments and moderate growth in hotel RevPAR for 2026.

• Norwegian interest rates were cut from 4.50% to 4.00% in 2025, with further gradual reductions expected.

• Office vacancy in Oslo is expected to rise as new government buildings are completed, but new office construction will slow in 2026.

• Retail and housing markets are expected to see continued growth, supported by real wage increases and low new housing supply.

• Some moderation in hotel bookings and increased office vacancy are anticipated, but prime locations remain resilient.