Victoria Eiendom (VIEI) Q2 2024 earnings summary

Executive summary

• Rental income for the group increased to NOK 670.7m in H1 2024, up from NOK 637.4m the previous year, with robust activity in office, hotel, and residential segments.

• Pre-tax profit for the group was NOK 428.7m, down from NOK 443.4m in H1 2023, mainly due to lower sales gains and higher financial costs.

• Both Eiendomsspar and Victoria Eiendom reported strong operational performance and increased rental income despite higher interest costs.

• The company executed several property and share acquisitions, including increased ownership in Scandic Hotels Group AB and new properties in Oslo and Lofoten.

Financial highlights

• Eiendomsspar's rental income rose by 5% to NOK 543.7m in H1 2024, while Victoria Eiendom's rental income increased by 6% to NOK 127m.

• Cash flow per share improved: Eiendomsspar at NOK 6.9 (+2%), Victoria Eiendom at NOK 20.4 (+32%).

• Book equity per share was NOK 722 as of 30.06.2024, up from NOK 698 at year-end.

• Net asset value (VEK) per share as of 30.06.2024: Eiendomsspar NOK 584 (+5% YTD), Victoria Eiendom NOK 1,026 (+7% YTD).

• The share price rose to NOK 685 as of 30.06.2024, a 16% increase since year-end, including dividends.

Outlook and guidance

• The market is characterized by uncertainty regarding inflation, interest rates, and geopolitics, but the company is well positioned with strong liquidity reserves.

• Office and hotel markets are expected to remain strong in 2024, with limited new supply, but increased office completions in 2025 may pressure rents.

• Positive booking trends in hotels and continued robust demand in residential rentals; moderate housing price growth expected.