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Samhällsbyggnadsbolaget i Norden AB have put forward voluntary offers for the
Company’s shares, and to ensure that all shareholders have the information
necessary to evaluate these offers, Entra has decided to release an update of
the financial and operational performance in the fourth quarter of 2020. The
full quarterly report will be released on 12 February 2021, as previously
announced.
On an overall note, Entra has continued its strong operational and financial
performance in the final quarter of 2020.
Letting activity
There has been very high letting activity in the quarter, and Entra has signed
new and renegotiated leases with annual rent totalling 256 million (86,000 sqm)
during Q4 2020, compared to 208 million (90,000 sqm) during Q4 2019.
As of 31.12.20, the portfolio occupancy was 98.0 per cent (97.1 per cent), and
the average unexpired lease term of contracts was 7.1 (6.9) years.
Project portfolio
Entra’s project portfolio as of 31.12.20 consist of 152,000 sqm to be finalised
in the period 2021-2023.
During Q4 2020, Entra finalised the re-development of 4,300 sqm in Kristian
Augusts gate 13, an environmental pioneer pilot within circular economy where as
much as 80 % of the building materials used came from re-used materials.
Entra started five new development projects totalling 82,400 sqm during Q4 2020.
The new projects are:
- Redevelopment of 13,000 sqm in Tordenskiolds gate 12 in Oslo. The project is
92 % pre-let
- Redevelopment of 14,200 sqm in Møllendalsveien 6-8 in Bergen. The project is
44 % pre-let
- Redevelopment of 15,800 sqm in Stenersgata 1 in Oslo. The project is 57 %
pre-let
- Redevelopment of 16,500 sqm in St. Olavs plass 5 in Oslo. The project is 60 %
pre-let
- Redevelopment of 22,900 sqm in Schweigaards gate 15 in Oslo. The project is
31 % pre-let
Fully let, the ongoing development projects, including the five redevelopment
projects mentioned above, will add rental income of approximately 450 million to
the management portfolio and will be phased in over the years 2021-2023.
Transactions
Entra has called an option to acquire the property Lagårdsveien 6 in the city
centre of Stavanger for 126 million. Newsec, one of Entra’s external appraisers,
has estimated the fair market value at 313 million. It totals approximately
13,600 sqm and is fully let to the Southwestern Police District with a remaining
lease of approximately 1.1 years where the tenant has the option to extend the
lease for five years on same terms. Entra plans to redevelop the asset together
with the current tenant. The transaction is in accordance with Entra’s strategy
of growth in central areas of the largest cities in Norway. The transaction
closed in January 2021.
Portfolio valuation and EPRA NRV per share
As notified to the market on 9 December 2020, the valuation of Entra’s property
portfolio has increased significantly. Following the uncertainties from
Covid-19, the activity in the transaction market was low during the spring,
yields were relatively stable, and the yield gap increased. During the autumn,
the activity in the transaction market picked up, and a number of transactions
of relevance for Entra’s portfolio were completed. In addition, and as described
above, the letting activity in the fourth quarter has been very high, and Entra
started a total of five new development projects during the quarter.
As of 31.12.20, the value of Entra’s property portfolio is 56.7 billion, and the
EPRA NRV is expected to be reported at NOK 189 per share. The net yield is 4.4
%, and loan to value is approximately 37 %.
Forward looking statement
During 2019 and 2020, several large assets were taken out of the management
portfolio for redevelopment and, as a result, top line growth has recently been
lower than in previous years. Upon completion of these redevelopment projects
during 2021-2023, Entra will continue to deliver strong revenue growth. In
addition, the company, with its strong balance sheet, available liquidity and
low loan-to-value, will continue to re-deploy the capital into profitable
projects and properties that will continue to enhance the portfolio quality in
order to further accelerate growth.
Disclaimer
The information in this statement is based on a preliminary assessment of the
company’s Q4 2020 financial results. The company has not completed all review
and control procedures, and the financial information may be subject to change.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
For further queries please contact: Sonja Horn, CEO, tel: +47 905 68 456, email:
sh@entra.no or Anders Olstad, CFO, tel + 47 900 22 559, email:ao@entra.no
ABOUT ENTRA ASA
Entra is a leading owner, manager and developer of office properties in Norway.
Entra owns and manages around 90 buildings totalling approximately 1.3 million
square meters, located in Oslo and the surrounding region, Bergen, Stavanger and
Trondheim. Entra has a solid customer portfolio with a high proportion of public
tenants. The company’s strategy is focused on delivering profitable growth, high
customer satisfaction and environmental leadership
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