Steen & Strøm’s shopping center portfolio demonstrated continued resilience towards macroeconomic events during 2024, posting a 3.2% growth in Net rental income on a like-for-like basis. 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 sectors incl. e-commerce, 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 +3.2% in 2024 (Norway +2.7%, Denmark +3.5% and Sweden +3.0%), fuelled 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 +3.0%, and occupancy was maintained at 95%.

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.