Entra Q2 profit jumps 55% despite 10% drop in rental income

Investing.com -- Entra ASA (OL:ENTRA) on Friday reported a 10% decline in rental income to NOK 770 million in the second quarter of 2025, down from NOK 853 million a year earlier. The decrease followed the divestment of its Trondheim portfolio in May. 

Despite the drop, profit before tax rose 55% to NOK 534 million, supported by NOK 289 million in positive property revaluations and reduced financial expenses, the company said in its quarterly report.

Net income from property management increased slightly to NOK 352 million from NOK 348 million. 

Operating costs fell to NOK 58 million from NOK 68 million, while net operating income dropped to NOK 713 million from NOK 785 million. 

Other revenues rose to NOK 101 million, primarily due to the Holtermanns veg 1-13 development in Trondheim. Other costs increased to NOK 79 million from NOK 45 million.

Entra recorded net financial expenses of NOK 333 million, an improvement from NOK 401 million last year. Net income after tax from continuing operations totaled NOK 431 million, compared to a loss of NOK 99 million in Q2 2024. Including discontinued operations, net income remained NOK 431 million.

Occupancy increased to 94.6%, up 0.8 percentage points from the first quarter but down slightly from 94.8% a year earlier. Net letting for the quarter was NOK 22 million. 

Gross letting reached NOK 203 million, with contracts signed for 62,900 square meters. Terminations totaled NOK 102 million. 

Entra recently secured several key lease agreements. They renewed their lease with Yara International (OL:YAR) and signed new agreements with TV2, Gjensidige Pensjonsforsikring, and the Norwegian Directorate for Higher Education and Skills.

Entra reported EPRA NRV per share of NOK 166, up from NOK 158. Its total property portfolio was valued at NOK 62.1 billion. 

The 12-month rolling rent per square meter rose to NOK 2,678 from NOK 2,637. The portfolio’s net yield decreased to 4.94% from 4.99%, mainly due to increased vacancy.

Capital expenditures in the quarter totaled NOK 336 million, including NOK 268 million for development and NOK 139 million for refurbishment. 

Projects under construction included sites in Oslo, Bergen, Sandvika and Trondheim. Refurbishment began at Drammensveien 134 during the quarter.

The company issued a NOK 1 billion 6-year green bond in the quarter, later increased to NOK 1.70 billion in July. 

Net nominal interest-bearing debt stood at NOK 31.6 billion. Entra reported an effective leverage ratio of 49.1% and EPRA LTV of 52.3%. 

Average debt maturity was 3.8 years. The average nominal interest rate was 4.00%, with 66.7% of the portfolio hedged.

Entra’s management portfolio included 71 properties totaling 1.1 million square meters. 

Public sector tenants accounted for 52% of rental income. Energy consumption declined 9% year-over-year on a like-for-like basis. The company’s climate targets were validated by the Science Based Targets initiative.

As of July 10, Castellum AB held 36.95% of Entra’s shares and Fastighets AB Balder held 39.98%. Entra’s share closed at NOK 133.60 on June 30.