Slides
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Q2 2025 Oslo, 11 July 2025 Media City Bergen
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Key events in the second quarter • Rental income of 770 million (853 million) • Net income from property management of 352 million (348 million) • Reduction in rental income offset by lower interest costs • Value changes of investment properties of 289 million • Profit before tax of 534 million (344 million) • Net asset value (NRV) increased to NOK 166 per share (163 per share per Q1) • Positive net letting of 22 million, occupancy increased to 94.6 per cent (93.8 per cent per Q1) • Climate targets validated by the SBTi Highlights Key figures 2
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Agenda Operations and market Financial update Closing remarks Q&A
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Operations and market
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• New and renewed leases of 203 million (62 900 sqm) • Terminated contracts of 102 million (28 200 sqm) • Net letting of 22 million • Occupancy 94.6% (up from 93.8% per Q1) • WAULT at 5.9 years (6.1 years incl. project portfolio) • 52% of rental income from public sector Letting and occupancy Largest new and renegotiated contracts * Net letting = new contracts + uplift on renegotiations – terminated contracts 5
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Started refurbishment project in Drammensveien 134 in Oslo Total area 21 000 sqm Occupancy 66 % let to existing tenants1 Total project cost NOK 986 million (incl initial book value) Expected completion Q2-26 / Q3-27 Energy class C and taxonomy-aligned Yield on cost 5.8 % Refurbishment, close to Skøyen train station 1 Tenants will remain in the property throughout the refurbishment period. 6
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Ongoing development portfolio 7 1 Total project cost (including initial book value/cost of land), excluding capitalised interest cost 2 Estimated net rent (fully let) at completion/total project cost (including initial book value/cost of land) 3 Holtermanns veg 1-13 phase 3 has been forward sold with closing upon completion of the project. Occupancy and yield on cost on this project is not reported. 4 The project is 66% let to existing tenants who remain in place throughout the refurbishment period 5 Weighted average occupancy of the project portfolio. 5
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• Entra aims to reach net-zero greenhouse gas (GHG) emissions across the value chain by 2050 and has set near-term and long- term science-based targets for emission reduction • Targets have been developed in accordance with the Science Based Targets initiative's (SBTi) Buildings Sector Framework • Targets focus on reducing emissions from energy consumption in the property portfolio, emissions from the construction of new buildings, and other scope 3 emissions Climate targets validated by the Science Based Targets initiative (SBTi), as the first company in Norway • Capitalising on green investments already made • ’ -efficient property portfolio keep energy-related emissions low • Entra's largest emissions stem from the production and transportation of materials used in projects, and from the operation and maintenance of buildings ➢ By achieving our climate goals, we can reduce costs in both new projects and the management portfolio SBTi Net-Zero Targets SBTi Near-Term 2030 Targets 8
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Norwegian economy remains solid Market development Newbuild volumes (1,000 sqm) - Oslo Rental growth, vacancy and CPI - Oslo • Strong Norwegian economy, supported by the sovereign wealth fund, fiscal policy and public spending will continue to stabilise the performance of the economy • Lower interest rates and real wage growth expected to fuel private consumption and investments • Stable employment growth expected going forward • June CPI at 3.0%, in line with expectations • Key policy rate reduced to 4.25% in June • The Central Bank of Norway expects up to two further rate cuts in 2025 Promising long-term letting market fundamentals • Work-from-home trend largely reversed, letting processes take more time as tenants reassess workplace solutions • Increasing tenant search activity • Low overall vacancy and limited new office supply • Market rents and break-event rents for new builds converging in certain areas 2 1 9 ’ - ’ us year. 2 Approximately 200 000 sqm is related to the new Government Quarter and Construction City planned to be completed in 2025 an d 2026, these projects are close to fully let. : ’ SSB and Norges Bank.
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Market development Total transaction volume (NOK billion) Prime yield - Oslo 10 : ’ Transaction market • Financing markets available • Lending sentiment trending positive, but still somewhat selective • Favorable credit margin development • Transaction market remains active and expected to pick up with further rate cuts • Prime yield around 4.5% supported by recent transactions, expected to ’
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Financial update
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Rental income Net income from property management 12 Profit/loss before tax Financial highlights • Reduced rental income compared to last year from divestment and increased vacancy • Improved financial performance driven by lower operational and financing costs, as well as positive property value changes
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Profit and loss statement Q2 comments: Rental income negatively impacted by divestments, and vacancy, partly offset by finalised projects and CPI growth Operational costs reduced with divestments and lower energy consumption Administrative costs in line with expectations Financing costs trending downwards due to reduced debt following divestments and lower interest rates Positive value changes from investment properties and equity investments, partly offset by negative adjustment of the financial derivatives 13
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Cash Earnings LTM1 Net Asset Value (NAV)2 and Total return Financials per share 1 Cash earnings Last twelve months measured as Income from property management minus tax payable CAGR 5 % NOK per share CAGR 9 % NOK per share 2 NAV measured as EPRA NRV – Net Reinstatement Value 14
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Rental income development Based on reported events per end of quarter. Does not constitute a forecast; aims to demonstrate the rental income development based on all reported events; does not reflect letting targets on either vacant areas or on contracts that will expire, and where the outcome of the renegotiation process is not known. Assumes 2.75 % CPI from Q1 2026 Upside potential with regards to letting of vacant space, with annual market rental income estimated to 188 million, and rent uplift on tenant renegotiations. There is also an upside in rental income from vacant space in the ongoing project portfolio totalling 55 million. Downside risk is mostly related to leases that are not renewed or renegotiated below current terms. 15
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Property value development Total property portfolio value increased with 1.1% to 63.8 billion Value changes in the investment properties up with 289 million (0.5%) • Reduction in discount rates from external appraisers and higher market rent expectation Value changes in equity investment 83 million Portfolio net yield at 4.94% • 5.72% assuming fully let at market rent 16
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Interest coverage ratio (ICR) Interest coverage ratio (ICR LTM) up to 2.03x from 1.98x in Q1 25 • ICR for Q2 isolated at 2.10x Leverage ratio1 flat at 49.1% Stable Net debt to EBITDA2 at 11.7x 17 Leverage ratio1 and Net debt to EBITDA2 Key debt metrics 1 ’ 2 Net nominal interest-bearing debt divided by EBITDA LTM.
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Debt financing mix Net nominal debt 31.6bn • Average time to maturity of total debt at 3.8 years New 6-year green bond issue of 1.0bn in the quarter, of which 500m settled after quarter- end • Following quarter-end, the 6-year bond was re- opened with another 700m • Credit margins tightening Liquidity buffers reduced to 8.2bn • Less commercial papers financing • Continue to optimise total funding cost • Debt maturity coverage remains above 24 months1 18 Maturity profile Financial position 1 Excluding operating cash flows and investments. 2025 2026 2027 2028 2029 and onwards
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Interest rate on interest-bearing debt and all-in net financial costs 4.00 % Cost of debt development Assumptions in graph: • Historical nominal interest rate on interest-bearing debt as of the last day of the quarter • Forecasted interest rate based on 3M NIBOR forward curve (03 July), existing hedges, as -is debt levels, and refinancing upon debt expiry at market terms • Historical all-in net financing cost is net realised financials divided by the average net nominal interest-bearing debt in the quarter • See note 4 in the quarterly report for further details 19 4.23 % All-in net financial costs down reduced • Down to 4.23% from 4.44% in Q1-25 Stable interest rates going forward supported by rate cuts, interest hedges and fixed credit margins • Average fixed interest term 2.4 years • Fixed credit margins at 2.2 years
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Closing remarks
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Closing remarks and outlook Stenersgata 1 • Positive Q2 development • Positive net letting and lower vacancy • Lower NOK interest rates, bond credit margins and all-in financial costs • Growth in net income from property management • Increased property values and NRV • Solid and stable Norwegian economy • Lower interest rates and real wage growth expected to fuel private consumption and investments • Up to two policy rate cuts expected in 2025 • Stable employment growth expected going forward • Promising long-term letting market fundamentals • Increasing tenant search activity • Market rents and break-event rents for new builds converging in certain areas • Future rental income growth driven by CPI, projects, rent uplift potential and letting of vacant space 21
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Q&A
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Next event Q3 results 16 October 2025 For more information see, www.entra.no/investor-relations