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Authors
Advisor(s)
Abstract(s)
Entra
is
one
of
Norway’s
leading
real
estate
companies
with
a
property
portfolio
of
approximately
1.2
million
sqm
and
rental
income
of
NOK
1,77
Billion
(2014).
Their
business
concept
is
focused
around
owning,
letting
and
managing
high
quality
office
buildings
with
central
locations.
Rental
market
Despite
a
rapid
fall
in
oil
prices
last
fall,
the
consensus
estimates
points
at
a
short-‐lived
downturn
for
the
Norwegian
economy.
This
downturn
is
expected
to
have
a
relatively
moderate
impact
on
the
office
rental
market.
Yet,
real
rents
are
expected
to
decrease
in
the
following
years.
In
the
long
run,
the
rental
prices
typically
grow
with
inflation.
Financial
The
rental
income
is
expected
to
continue
its
positive
trend,
as
relatively
few
contracts
are
maturing
the
coming
years.
The
strong
presence
of
public
tenants
in
the
portfolio
(76%)
should
also
limit
the
counterparty
risk.
On
the
cost
side,
the
EBIT
margin
is
expected
to
increase
as
the
company
expects
lower
costs
going
forward.
Valuation
An
Enterprise
DCF
model
is
used
to
determine
fair
value
of
Entras
shares.
The
valuation
is
based
on
thorough
analysis
of
t
the
rental
market
in
each
of
Entras
geographical
areas.
Extra
care
has
also
been
taken
to
research
the
Norwegian
tax
Code,
as
it
is
an
important
determinant
of
value
for
real
estate
companies.
Aim
of
thesis
The
aim
of
this
thesis
has
been
to
estimate
the
fair
value
of
Entra
ASA.
The
results
are
also
compared
to
the
fair
value
estimate
given
by
DNB
Markets.