Report
Simen Mortensen
EUR 438.97 For Business Accounts Only

Entra (Buy, TP: NOK130.00) - FFO slipped, and net lettings missed

Entra’s Q4 FFOps was marginally soft versus our forecast and Infront consensus. However, net lettings of NOK-41m, which followed a weak Q3, means Entra’s rental roll has fallen by c3.7% in six months on terminations. The CPI adjustment of rents was also weaker than expected, interest rates are up, and Entra has sold one asset, leading us to lower our 2025–2026e EPS by c7–8%. We have reduced our target price to NOK130 (140) but reiterate our BUY.
Underlying
Entra ASA

Entra ASA (Entra) is a Norway-based real estate company. It is engaged in development, letting and management of energy efficient buildings. Its portfolio comprises over 100 buildings with a total area of more than 1.3 million square meters and focus on office real estate in central locations. Entra is also engaged in project and land development activities. Its business is organized into four segments (regions) around Norway's four largest cities: Central Oslo, Greater Oslo, Southern and Western Norway, and Central and Northern Norway. Its strategic areas of concentration include Oslo and surroundings, Bergen, Stavanger and Trondheim. The Company is focused on the public sector, which represents approximately 80% of Entra's customers and tenants. Its legal structure comprises more than 40 property companies and special purpose vehicles (SPVs), a property management company Papirbredden Eiendom AS, several joint ventures and Oslo S Utvikling AS, a property development company.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Simen Mortensen

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