English summary Eiendomsspar is one of Norway’s leading real estate companies. It is owned by Victoria Eiendom (55.5 % as of 31.12.2021) and close to 700 other shareholders. Eiendomsspar operates through ownership and development of properties, as well as through its 25.8 % shareholding in the listed hotel property company Pandox AB. Office buildings, retail shops and hotels account for the bulk of rental income. (Numbers in brackets refers to figures for same period in 2020 if other is not specified).
The Covid-19 pandemic had a negative impact for Eiendomsspar also in 2021, mainly through its ’s effect on revenue-based rents from own hotels and in Pandox. Low interest rates and high activity in the transaction market led to growth in the value of Eiendomsspar’s real estate portfolio in 2021. Eiendomsspar did also sell its shares in the listed Swedish real estate company, Amasten AB, with profit. Eiendomsspar’s profit before taxes was NOK 1,096 million, compared with NOK 1,426 million in 2020. The reduced profit is mainly explained by less profits from the sale of real estate, but at the same time the profits from Pandox increased. Rental income amounted to NOK 716 million, an increase of NOK 15 million from 2020. The increase is mainly explained by an increase in revenue-based rents from hotels and restaurants. Ordinary cash flow before tax was NOK 605 million (NOK 511 million). The company’s net asset value per share after-tax, based on the estimated market value of the company’s properties, increased by 10 % (including dividend) to NOK 548. The Board proposes an ordinary dividend of NOK 6.75 per share for 2021 (last year NOK 6.50 per share). In addition the company distributed a dividend of NOK 20.00 per share in December 2021.
Investments and sales of properties
Eiendomsspar acquired a portfolio of 111 apartments (15 apartment buildings) in the centre of Bergen in 2021. In addition the company has acquired two storage facilities, Professor Birkelands vei 21 and Stubberudveien 8, in the eastern part of Oslo. Total purchase price for the properties were NOK 910 million. Eiendomsspar has also acquired a 17 % share in Aurora Eiendom, a newly established and stock listed (Euronext Growth Oslo) shopping centre owner. The company’s strategy is to own modern and well operated shopping centres with strong tenants and market share in its region. At year end the company owned five shopping centres in Norway. During 2021 Eiendomsspar sold the Oslo fringe office property Karihaugveien 89, including two adjacent plots, the retail and office property Øvre Slottsgate 11 and Frederik Stangs gate 4.
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Regnskap og noter English summary Finansiell informasjon
In addition the company has sold three apartments in Parkveien 64. The realized accounting gain from these disinvestments amounted to NOK 378 million. Eiendomsspar did also sell its shareholding in Amasten AB for SEK 850 million with an accounting profit of NOK 324 mill. In 2021, Eiendomsspar has acquired 890,558 of its own shares, for a total of NOK 402 million
The investment in Pandox
Pandox has a share capital consisting of 75,000,000 A shares (not listed – each share carries three votes) and 108,849,999 B shares (listed – each share carries one vote), totalling 183,849,999 shares. Eiendomsspar owns 37,314,375 A shares and 10,144,375 B shares, corresponding to 25.8 % of the share capital and 36.6 % of the votes. The holding in Pandox is from 01.01.2016 accounted for based on the company’s IFRS accounts, as accounts are no longer based on historical cost. Pandox’s cash earnings amounted to SEK 712 million, compared with SEK 660 million in 2020. The increase is explained by higher activity in the company’s hotels, mainly through the second half of 2021. In 2021, Pandox completed the acquisition of one hotel property in Edinburgh, Scotland at a total transaction value of SEK 482 million. In addition, Pandox has taken over the operations of one hotel in Nürenberg, Germany and rented out a former operated hotel property in Copenhagen, to the up-and-coming hotel operator Motel One. 2021 was strongly influenced by the tragic passing away of CEO Anders Nissen in May. Anders was CEO in Pandox since 1995 and under his leadership the company developed to become one of the leading hotel owning companies in Europe. Anders has left behind a strong organization and culture, with competent and strongly motivated workers. At August 23rd, Liia Nõu CFO since 2007, was presented as the new CEO. Anneli Lindblom was presented as new CFO at October 20th.
