Selvaag Bolig ASA: Q3 2024: Good sales and more homes under construction

07 Nov 2024 07:00 CET

Selvaag Bolig had operating revenues of NOK 1 473 million and an adjusted
EBITDA result (IFRS) of NOK 233 million for the first nine months of the year.
The company has sold homes worth over NOK 1.2 billion more than in the same
period last year.

In the first nine months of the year, the company sold 446 homes net, started
construction of 261 homes, and delivered 360 homes to buyers. At the end of
the quarter, Selvaag Bolig had 700 homes under construction with a total sales
value of NOK 4.5 billion. 67 percent of these homes were sold by the end of
the quarter, and 85 percent of the homes to be completed this year were sold.

"The results for this quarter alone are low because we have a fixed cost base
and only 54 homes were delivered to buyers. Results are recognized as income
only upon delivery to the customer. Profitability so far this year is good,
considering market conditions, and the outlook for the whole year 2024 is
positive. We have guided to complete 169 homes in the fourth quarter and a
total of 515 for the year overall," says CEO Sverre Molvik.

During the quarter, the number of homes under construction increased from 661
to 700, and the company believes in further growth going forward.

"There has been a positive development in the market so far this year, which
we believe will continue in line with interest rate cuts and more stable
construction costs. So far this year, we have sold homes worth over NOK 1.2
billion more than in the same period last year. If the positive market
development continues, this will result in significantly more project starts
than completions going forward," says Molvik.

The live webcast of the presentation can be viewed from 0830 here.
(https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20241107_5) An
English transcript of the presentation will be made available on the company's
website.

Highlights of the third quarter 2024 (third quarter 2023)

* Gross sales* amounted to 116 homes (85) with a sales value of
NOK 801 million (NOK 543 million)
* Net sales were 100 homes (77) with a sales value of NOK 679 million
(NOK 479 million)
* Net construction starts for 43 homes (57), net completions of 5 (90) and net
deliveries of 54 to buyers (74)
* Net 700 homes under construction (985) with a combined sales value of NOK
4 495 million (NOK 5 292 million)
* 67 per cent (69 per cent) of homes under construction sold at 30 September
* 87 (60) completed homes unsold at 30 September
* IFRS**: Operating revenues of NOK 225 million (NOK 437 million), EBITDA
adjusted for financial expenses NOK 4 million (NOK 44 million),
corresponding to a margin of 1.6 per cent (10.1 per cent)
* Earnings per share: NOK -0.05 (NOK 0.21)
* NGAAP***: Operating revenues of NOK 516 million (NOK 451 million), EBITDA of
NOK 31 million (NOK 37 million), corresponding to a margin of 6 per cent
(8.3 per cent)


Highlights of the first nine months of 2024 (first nine months of 2023)

* IFRS**: Operating revenues of NOK 1 473 million (NOK 2 008 million), EBITDA
adjusted for financial expenses NOK 233 million (NOK 249 million),
corresponding to a margin of 15.8 per cent (12.4 per cent)
* Earnings per share: NOK 1.40 (NOK 1.46)
* NGAAP***: Operating revenues of NOK 1 666 million (NOK 1 588 million),
EBITDA of NOK 124 million (NOK 163 million), corresponding to a margin
of 7.5 per cent (10.3 per cent)
* Gross sales amounted to 505 homes (336) with a sales value of NOK 3
243 million (NOK 1 980 million)
* Net sales were 446 homes (272) with a sales value of NOK 2 824 million
(NOK 1 577 million)
* Net construction starts for 261 homes (145), net completions of 346 (413)
and net deliveries of 360 to buyers (379)

* Units sold are sales contracts entered into with customers pursuant to the
Norwegian Housing Construction Act and the Tenancy Act in Sweden. In
accordance with the IFRS, they are recognised as income on delivery. Net sales
include Selvaag Bolig's share of joint venture projects. Gross sales include
all homes in joint venture projects.
** Pursuant to the IFRS, all profit is recognised when the homes are delivered
to the buyer. Profit pursuant to the IFRS accordingly derives primarily from
homes which began to be built roughly two years ago.
*** The accounts pursuant to Norwegian generally accepted accounting
principles (NGAAP) utilise the percentage of completion method. This means
that profits are recognised on the basis of construction progress and sales in
the projects. That presents ongoing value creation in the company.

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About Us
Selvaag Bolig ASA is a residential development company that manages the entire
value chain from acquisition of land to completed residential and urban areas.
The company represents a continuation of Selvaag's 75-year history and
experience and has several thousand homes under development in growth areas in
and around the largest cities in Norway and Sweden. Selvaag Bolig offers a
broad variety of housing types, including the lifestyle concept Selvaag
Pluss®, which features homes with shared spaces and services.
www.selvaagboligasa.no/en

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This release was distributed by Kristoffer Gregersen, EVP communications and
sustainability, Selvaag Bolig ASA.

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For further information:
Sverre Molvik, CEO
Telephone: +47 40 10 05 85, e-mail: smo@selvaagbolig.no

Christopher Brunvoll, CFO
Telephone: +47 98 82 92 22, e-mail: chbr@selvaagbolig.no
(mailto:chrb@selvaagbolig.no)

Kristoffer Gregersen, EVP communications, sustainability and corporate
strategy
Telephone: +47 95 77 55 93, e-mail: kgr@selvaagbolig.no

This information is subject to disclosure under the Norwegian Securities
Trading Act, §5-12. The information was submitted for publication at
2024-11-07 07:00 CET.

More information:
Access the news on Oslo Bors NewsWeb site

631487_Report 3rd quarter 2024.pdf
631487_Presentation 3rd quarter 2024.pdf