Q3-2023 Report (936.8 KB

Rental income

+44 mill.

Rental income (NOKm)

-87 mill. -14 %

Results

Rental income

Rental income was up 6 per cent from 788 million in Q3 2022 to

833 million in Q3 2023, and 9 per cent from 2,352 to 2,559 for the first nine months of 2023. The changes in rental income are

explained by the factors in the income bridge below.

Net contribution from development projects was 50 million compared to the same quarter last year. During the last 12 months, Entra has finalised several redevelopment and newbuild projects, contributing a total of 145 million on rental income compared to the same quarter last year. Divestments reduced rental income in the quarter by 33 million.

Compared to Q3 last year, rental income has been positively affected by an underlying like-for-like growth of 3.6 per cent (26

million). The CPI adjustment was 6.5 per cent (47 million). The

like-for-like growth is lower than the CPI adjustment due to reduced occupancy in the period. Near all of Entra's lease contracts are 100 per cent linked to positive changes in CPI. The annual adjustment is mostly made on a November to November basis, effective 1 January the following year.

Average 12 months rolling rent per square meter was 2,473 (2,329) as of 30.09.23. The increase in 12 months rolling rent over the last four quarters is mainly a result of finalised projects and CPI growth with higher income per sqm.

Rent (12m rolling) per sqm and occupancy rate

Compared to the same quarter last year, the occupancy rate went down by 100 basis points to 95.6 per cent (96.6 per cent as of 30.09.22), in line with the occupancy rate as of 30.06.23 of 95.6 per cent. The market rental income assessment of vacant space as of 30.09.23 is estimated to 162 million on an annualised basis.

Operating costs

Total operating costs amounted to 70 million (66 million) in the quarter, and is split as follows:

The increase in direct property costs is mainly driven by increased vacancy. For areas occupied by tenants, the tenants are paying the full energy costs.

Net operating income

As a consequence of the effects explained above, net operating income came in at 763 million (723 million) in the quarter.

Other revenues and other costs

Other revenues were 18 million (21 million) in the quarter and other costs were 12 million (15 million). Other revenue and

other costs mainly consist of additional services provided to tenants and income and costs related to inventory properties

(properties in the Bryn portfolio which will be zoned for residential development and subsequently sold to a third party

at a predetermined price).

Administrative costs

Administrative costs amounted to 44 million (45 million) in the

quarter.