Steen & Strøm’s shopping center portfolio has seen a positive development throughout 1H 2017. Like-for-like increase in net rental income was 4.2%.
The group generated operating income of MNOK 1 580 (MNOK 2 763) and pre-tax profits of MNOK 1 552 (MNOK 2 819) in the first half of the year. The reduction in operating income and profits from last year is mainly due to a lower positive value adjustment of investment properties and projects, from MNOK 2 043 in 1H 2016 to MNOK 720 in 1H 2017, as well as the divestments of Lillestrøm Torv, Åsane Storsenter, Torp Köpcentrum and the office section of Emporia. Net rental income increased in 1H 2017 by 4.2% on a like-for-like basis.
Investment properties and projects were valued at MNOK 37 180 as of 30.06.2017 (MNOK 35 238). The property portfolio valuation is performed by independent external appraisers and is based on an average yield of 4.8% (5.0%).
The proceeds from the disposals have mainly been used for debt redemption. Net interest bearing debt amounted to MNOK 12 200 as of 30.06.2017 (MNOK 15 200). As a result, Steen & Strøm has significantly improved its financial position. The group’s net loan to value ratio improved from 40.9% in 1H 2016 to 33.0% in 1H 2017. Book value of equity amounted to MNOK 21 669 as of 30.06.2017 (MNOK 19 893) corresponding to an equity ratio of 54.5% (51.3%). The average interest cost for the group was 2.4% in 1H 2017 (2.6%).
September 19 2017