PRELIMINARY FINANCIAL RESULTS 2024

28 Feb 2025 15:01 CET

Steen & Strøm’s shopping center portfolio demonstrated continued resilience
towards macro economic events during 2024, posting a 3.1% growth in income.
Steen & Strøm has continued to strengthen the financial position during 2024,
incl. a loan-to-value ratio of 21.8% end of the year, confirmed by an A- rating
from S&P.

Retailer sales has in general been stagnating during 2024 (+0.6%), with the best
performance posted by Oslo City’s continued “return to normal” (+2.3%). This
trend was widely spread across all retail channels incl. e-commerce during 2024,
driven by a general decline in “disposable income”, due to inflation,
reestablishment of private savings and increasing cost of debt. As salary levels
are increasing and cost of debt decreasing, we expect this trend to turn around
in 2025. With several new signings of large retail concepts during second half
of 2024, incl. «New Yorker», «Stadium Outlet» and «Fredrik & Louisa», Steen &
Strøm is ready to welcome this trend in 2025.

Steen & Strøm held nine shopping centers throughout 2024, located in major
regional cities' catchment areas. The portfolio comprises resilient, large, and
modern assets, adapted to consumer needs and expectations. This has to some
extent been confirmed during 2024, despite the ongoing, economic challenges,
with a moderate impact on occupancy levels, an overall satisfying collection
rate, and satisfactory sales performance (in line with general trends).

Net rental income on a like-for-like basis increased by +3.1% in 2024 (Norway
+2.7%, Denmark +3.5% and Sweden +3.0%), fueled by indexation, to some extent
off-set by intermediate vacancies due to bankruptcies. For the Group as a whole,
the index-linked effect on net rental income was +3.1%, and occupancy was
maintained at 95%.

GRESB, the leading Environmental, Social and Governance (ESG) benchmark for Real
Estate, awarded Steen & Strøm a five-star rating in 2024. Steen & Strøm is
recognized as a global sector leader within retail, which means the Group is
amongst the top three most sustainable shopping center operators in Northern
Europe. This confirms the relevance of our Group impact strategy, “Act for
good”.

Total change in fair value of investment properties amounted to NOK 521.1
million in 2024 (NOK 129.9 million in Norway, NOK 169.4 million in Sweden and
NOK 221.8 million in Denmark). The valuations are corresponding to an average
net initial yield of 5.2% (4.6% in Norway, 5.6% in Sweden and 4.9% in Denmark),
7 basis points above 2023. The positive trend is widely spread across the
portfolio, driven by improved cash flow in Norway, and decreasing interest
rates’ influence on discount rates in Sweden and Denmark.

Profit before tax amounted to NOK 1 617.6 million (loss of NOK 521.6 million in
2023). Adjusted for fair value changes related to the investment property
portfolio and income from disposals, the pre-tax profit equals NOK 1 096.4
million.

Total assets for the Group as of 31 December 2024 amounted to NOK 31.3 billion
(NOK 30.4 billion), of which investment properties amounted to NOK 27.3 billion
(NOK 26.3 billion). Booked equity amounted to NOK 18.7 billion at year-end 2024,
corresponding to a book equity ratio of 59.5% (57.0%). Net interest-bearing debt
(not including lease liabilities) decreased by NOK 446.9 million to NOK 6 318.0
million 31 December 2024 and is reflected in the Group’s Loan-to-Value of 21.8%
(24.0%). The average cost of debt was 2.1% in 2024, as in 2023.

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640147_Preliminary Financial Results 2024 Oslos børs_.pdf