Good morning, and welcome to Entra's 1st quarter presentation brought to you here from Oslo on a crispy and sunny morning. Let me start with some highlights in the quarter. Rental income this quarter at NOK591 1,000,000. That's up from SEK 587,000,000 in the same quarter last year. Net income from property management of SEK 370,000,000.
And in the quarter, our external appraisers have increased the valuations of our properties with 1.4%, leaving us then with a net value changes of NOK 880,000,000 in the quarter. Profit before tax of NOK 1,200,000,000. We've had a good quarter also in respect of letting, net letting of NOK 18,000,000. That's taking into account that Norway also went into a partial lockdown in the quarter, slowing down the pace, of course, in the letting markets. However, much of the same effect as we saw in the first or Q2 last year, and we expect it to pick up again as soon as society reopens.
We have started up 2 new development projects in the quarter. We have acquired 3 properties and also divested 1. We have proposed a semiannual dividend of NOK 2.50 per share for the second half of twenty twenty to be paid out on May 4. Remains to be approved at the General Assembly later today, but that would leave us then with total dividend for the 2020 year of NOK 4.9 kroners with a 4% dividend growth than last year. A few words on the letting and occupancy in the portfolio.
As I said, we had an active quarter. We signed leases of NOK 57,000,000, around 37,000 square meters. And a few contracts terminated, only NOK 1,000,000 this quarter, thus net letting of NOK 18,000,000 Our occupancy is currently at 98.1%. That's about as close as you can get to fully let, meaning also that net letting going forward predominantly, of course, will be driven by our ongoing project pipeline. Average lease duration currently at 6.7 years or 6.9 if you include the project portfolio.
The largest contract signed in this quarter was with the police of Norway in Stavanger, where we signed a prolongation in the building Lagoswein 6, which was acquired in the quarter. We also signed 2 contracts in Holtmansvein 1 to 13 with Volu and WSP, which was also the basis for us deciding to start the project in this building. In Bergen, Nygren, Nygren, 91 to 90 3, we signed a contract with the law firm Sands of 1400 square meter. Also that the basis for starting a project. And at Lille Torge in Oslo, we We negotiated a contract with alternative to violence of 1100 square meters.
As mentioned, we decided to start a project in Trondheim. This is Holte Manswein 1 to 13, it's a larger development, which has been split into 3 phases. If you take a look at the picture here, you can see Phase 2 marked with a white line in the picture. And the building to the right of that was Phase 1 in this project, which was completed 1 year ago, that building is now fully let. And the higher building on the left in the photo is then going to be Phase 3.
Phase 2 is a fairly large volume for the Trondheim market. Being a regional city, the typical normal Lease size in Trondheim is somewhere between 501,000 square meters, and a large contract is more around 2,000 square meters. Naturally, that also means that you will have to bundle up quite a few contracts to reach normal pre let ratios which we tend to go for. Seeing also that these smaller tenants Normally, signed leases closer to completion. We decided to start the project on the basis of the 2 contracts we have signed.
This building has a very attractive location. It's located right next to the University of Science and Technology In Trondheim, close to the city center, this is a part of the city which has currently low vacancy, around 6%, the overall vacancy in the Trondheim market being around 10%. And the product has been designed in a very Modern attractive building with flexibility enabling us to attract both smaller tenants and also large tenants. We're confident that we will see pre let ratios here pick up towards completion. Estimated project cost here at 703 €1,000,000 and attractive yield on cost of 5.7%.
Fully let, this is a building which should have a market yield somewhere around 4.5%. We're targeting a breamnor excellent environmental for this building, which will be completed in the Q2 of 'twenty three. The second project we started in the quarter is located in Bergen. This is a building which is located right in the city center of Bergen, next to our existing building Media City Bergen, which is then close to the bus central station in Bergen. The situation in Bergen is that you have very few newbuild opportunities in the city center.
And in the pre marketing phase, we've had pretty strong interest for this product. It's going to be a Prime project targeting prime rents in Bergen, and we decided to start the project on the basis on the first contract signed with the law firm Sands also confirming that we're achieving the rents we're targeting. That we're achieving the rents we're targeting. This is a building which has an estimated project cost of SEK 6 NOK 19,000,000,000 estimated yield on cost here, 5.3 percent and prime yield currently in Bergen is around 3.7 5%. The building should be completed in the Q4 of 'twenty 2.
And also here, breamnor excellent environmental classification. In respect to the market in Bergen, vacancies in Bergen currently around 9%. However, in the city center, vacancy is below 5%, so an attractive marketplace to work in with good products. Moving on then to Our list of ongoing projects. As you can see, the list is growing, and we've added then the 2 newbuild projects on the middle here of the table.
The ongoing redevelopments, you can see that we have 2 arrows here marking the changes since our last reporting in February. Occupancy is slightly up in our rebuild project from 52% to 54% and also at Sverigorskate 15% from 31% to 34% occupancy. The total then project area under development currently at 180,000 square meters. And average occupancy on all the projects currently at 59%. And once these projects are fully let, they should add revenues of NOK530,000,000 over the next years.
We also acquired 1 building In the quarter, which we previously haven't presented, this is a building which was acquired through our JV Hindaparck, 5050 owned by Entra and Kamar. It's a building of 26,000 square meters located at Hindaparck. We currently own the 2 neighboring buildings to this one, and there are some operational synergies for us in holding also this asset. And the building currently is 60% let to solid tenants with a 7 year average lease duration. So the transaction value here was NOK 3.75 million, leaving us with Initially, yield based on the passing rent around 4.8%.
However, we see a substantial value uplift Potential in working on the vacancy, and we're well set to work on that with our local team at Hinnaparck. So our Base case here is that we should be able to achieve a yield on cost somewhere between 7% and 7.5% once we have solved the vacancy. This transaction closed on April 15 this year. We have been active in the transaction market in the Q1. In total, we have acquired 3 assets and sold 2.
We have previously spoken about Mollnaz 1 and Lagoskvaen 6 and Tolboda Meligen 2 On our Q4 presentation, I just went through Canal Pinn. And Nytorger is an asset we Hold in the city center of Bergen. This is a building which is going to go through a development over the coming years, and we have now sold this building to our JV, Hindaparq, enabling us to make better use of the organization there at Hindaparq in the coming years. A few words on the acquisitions. They're all representing a value added dimension for us.
Starting with Mondalsveien 1, This is a building which is located next to our ongoing project in Merlinalfein 6 to 8. The building has a short lease duration around 2.5 years, And we see that there is a rental lift potential in this building. Lagosvein, as I mentioned, we had an option to acquire this building from the current owner at the price of NOK126,000,000 and it was valued at NOK313,000,000 when we did the transaction. And following that, we've also prolonged the lease contract, and there is still rent uplift potential and some development potential in this building. And I'll come back in, as I said, vacancy to be solved, representing value uplift potential for us.
And on the sales side, we continue to rotate out smaller assets and also assets of nonstrategic interest for us. A few words on the market situation. Starting with COVID, of course, We did see then a 3rd wave of infection coming in the Q1 and experienced new lockdowns from January and also heavy travel restrictions. However, from an overall perspective, Norway has handled the epidemic fairly well. We've had a few casualties, total of 7 0 8 casualties so far and currently around 7 50 people in intensive care.
Infection rates are declining, and our R is currently below 1 at 0.8. Vaccination levels are picking up. Currently, around 20% of the population has received the first shot, And estimates are that the adult population should have received 1st shot of vaccination somewhere between July and August, thereby also reopening society and kick starting economy. A few words then on the office market. As you can see from our consensus report, the graphs to the top right, vacancy is expected to increase slightly towards 7.6% this year.
The picture is fairly nuanced. The highest vacancy levels we See then in the west corridor of Oslo somewhere around 10% and also in the northeastern fringe of Oslo around 10%. Moving into the city center of Oslo. The vacancies are currently much lower, below 5%, and that is also where we have our ongoing projects. And we see few newbuild volumes coming into the market here, which are not already pre let.
A few words on the market rent situation. As you also can see from the consensus report, we are back on the growth Rental growth track, expected rent growth to be around 1.8% this year. Our experience in the marketplace is that rents are holding up very well. We're not seeing any downward pressure in respect of rent levels. A few words also on the transaction market.
It's been a very continued high interest for property investments through the quarter, particularly for office and logistics buildings And also strong demand for attractive properties with long leases and solid tenants, which is also then reflected in N for us valuations. Things do, however, take more time. It's more challenging to go through with site visits and the full process of a transaction under the circum the current restrictions. But interest for property investments It's still very strong in the marketplace. And the sentiment seems to be both amongst investors and tenants that activity is going to pick up and continue with strength as soon as society opens up again.
Entrance active in the transaction market through the quarter, and we've also experienced that there's been a lot of competition and strong interest in the processes we've been involved in. Prime yield currently at 3.3 percent expected to stay there also going forward, and the yield spreads to the regional cities have been narrowing in. Financing markets are well functioning and open. Interest swap rates have increased in the quarter. However, that's not put or reduced interest for property investments.
And we can see that the increase in interest rates have somewhat also been offset by reducing credit margins. I think that's it on the market situation, and
2021 started on a good note for us. Except for slightly higher uplift in valuations, the P and L is pretty much as we expected. And with the strong decent, very strong Net netting of SEK 18,000,000 strong balance sheet, capital debt, capital markets coming into action again for us And the strong project pipeline, it is clearly a good start. Revenues coming in at €591,000,000 So Pretty much exactly as we expected them to be. So up SEK1 1,000,000 from the 4th quarter and up SEK4 1,000,000 from the Q1 2020.
Into the uplift from 2020, we acquired one asset in Stavanger, Giving us NOK 3,000,000 in extra or additional revenues. Then we have taken out a number of assets for redevelopment, which Had a negative impact of SEK 20,000,000 in the quarter, but this was more than offset by the CPI, which came in at 0.7% for 2020, so unusually low for Norway. March to March CPI this year is at 3.1%. So actually it's higher than the sort of normalized 2% that we expect. Nevertheless, like very strong like for like growth in the quarter at 3.2%.
Of that, 0.7% is CPI and the remaining 2.5% is coming from our operations. So a very strong net like for like growth this quarter. Net income from probably mentioned SEK370,000,000 up SEK8 1,000,000 and SEK13 1,000,000 from 4th and the first quarter, respectively. And then you see Great volatility in the profit before tax coming in at SEK12.90. And in you will recall that in the Q4, we wrote up Our assets by almost SEK 4,500,000,000 while in the Q1 to 2020 due to the COVID-nineteen Pandemic that just was at the start.
We did not take any value uplift in our P and L at all. So that sort of explains the volatility in the P and L. I'll come back to the cost side in later exhibits. Cash earnings coming in Flat at NOK8 per share as expected, but NRV continuing to grow now at NOK194. EPRA installed 3 new measurements, replacing NAV and triple net.
Last year, we for the up until the Q4, we provided figures on all those 5 different Asset specifics, NRV, NTA and NDV, We're now leaving NAV and triple net and only will continue with the new 3 ones from EPRA. NRV is shown in this exhibit, showing a 15% CAGR. If we include the dividends that we have paid out since 2015 of SEK 24.65, The CAGR is a solid 17%. Also a note on the NTA and the NDV It's enclosed in the back of our annual of the quarterly report. NDV is not a relevant figure for Norwegian Commercial Real Estate As the tax treatment in the NDV is based on asset sales, while in Norway, All assets are sold through SPVs and thus with a very different or very marginal tax effect.
Looking at the P and L, operational costs coming in at NOK51,000,000. So we're up from the NOK42,000,000 last year Q1 last year and down from the 57 that we had in the 4th quarter. We believe that the €51,000,000 now annualized is a good proxy for the full year. Net other revenues, other costs coming in at SEK6 1,000,000 as compared to SEK9 1,000,000 in the Q1 of last year and SEK7 1,000,000 in the Q4. Admin cost at SEK 49,000,000, so on par with Q1 last year and down from SEK 55,000,000 in the 4th quarter.
We expect that admin cost will come somewhat down in the next three quarters, and we should end up not far away from the 2020 figures. Then one note on the tax payable. Entra has 1 subsidiary partly owned that It's in a tax payable position, and we normally pay around NOK 12,000,000 to NOK 14,000,000, NOK 15,000,000 per year in taxes on that subsidiary. Last year, Entra as a group also came into a tax payable position with Including the subsidiary, we had a SEK 26,000,000 tax payable. For 2021 and the at least the 2 to 3 years to come, The group as such, we do not expect that us to come in a tax payable position.
And as such, we will only have back to the Again, give or take SEK 12,000,000 to SEK 15,000,000 in tax payable for the year. Looking at the sort of expected revenues, future revenues for next 6 quarter based on Communicated events, including project starts, assets taken out of production for redevelopment, Known acquisitions and net letting announced. We do see that from this quarter to next quarter, we will increase it by Close to will be close to SEK 600,000,000 primarily due to the acquisition of the one the small asset in Bergen and the small asset in Stavanger. Then finally, we're starting to see the effect and the impact of the assets that we have taken out for development that will be put back into operations. So starting off with the Unnuschalkata 2, Unnuschalkata 7 to 9 In the Q3 this year, following up with the Melendal's rand 6% to 8% in the Q4, then the CPI adjustment for the Q1 2022, we have put that possibly because we're at 1.7%.
We will see if we'll update that throughout the year. And then finally in the Q3 of 2022, we get the effect from Turunuskate 12 and some Turunuskate 5. And then the other projects will follow. As Sander mentioned, the 11 projects that we have currently Working on, they would lead fully let to a net revenue of SEK 530,000,000 which will be The signed contracts. And as such, if you look at the table of projects, we're now at 59% pre let.
So then there is some upside in the revenue figures as we continue to sign up new tenants. But it's good to see that we are back on a growth trajectory again. Looking at the property Value development starting at SEK56,900,000. Invested SEK 390,000,000 in the project that will increase over the next three quarters. We expect to invest probably at least SEK 5,000,000,000 in the next 2 years.
The value changes came in at SEK 781,000,000. If you look at the circle on the very right hand of the exhibit, you will see that The bulk of that at 34%, I'm just going to check my numbers, came from the projects. 22%, NOK 174,000,000 coming from transactions. The reason is the Acquisition of the small asset in Stavanger, where we had an old option to buy that asset for at a very favorable price. In our NAV calculation, it was included as a financial asset.
But as we acquired the asset, It was a move into the inventory or the investment portfolio, I. E, this portfolio came up about SEK 174,000,000. Then you see there's a healthy further write up stemming From the letting as the smallest project and yields and market rents. So it's a fairly Widespread reasoning for the value update this quarter. On the financial side, it was a very Quiet quarter in the Q1.
Most of our debt capital markets investors Looked from the sideline at the strategic interest in Entra, and they were worried that we would be acquired by a company with a lesser credit quality than Of Entra. And as such, they would have a lower sort of counterparty quality. So the only thing we did on the Financing is basically to roll a small commercial paper. If you look at the as is Status as at quarter end, we have around 70% in market based debt. So this is pretty much similar to the previous quarters.
We have now with the 2 new bond taps that we did in April, A bit more than 50% of our financing in green financing, a combination of green bonds and green bank debt. As we talked about before, This has positive implication both on the pricing that we pay for our financing and also on the Debt and the wideness of our investor base. LTV getting lower now to 36.4%, so which gives us a significant War chest in terms of both financing the Porto Porto Follow-up and also looking selectively at acquisitions. And with the ICR at 3.6%, again, it's a very solid ship that we're running on that part. Interest cost at €2.37 and you will see that will increase somewhat during the following quarters due to the Higher long term interest rate, if that should end up as the forward curve now It's looking.
Status on the financing market, the CP market It's active. It's attractive. We're typically doing now 6 months CPs at around 20%, 22% margin. Bond market is getting increasingly attractive. We added another 2 taps now of total of SEK 750,000,000 7 year bonds at in the high 70s.
So very, very attractive pricing on the bond. And we continue to have The same good, open, long lasting relationship with our 5 banks. So on the financing side, It's pretty much business as usual for Entre. Thank you.
Thank you, Anders. So moving on to some Closing remarks from us. First of all, solid market fundamentals. We are Experiencing that the rental market is holding up well and also transaction market very active and strong through the quarter. COVID-nineteen uncertainty prevails.
We are, however, seeing that new cases are dropping, and The vaccination program is picking up currently at 20% vaccinated with 1st shots. And Fair to say also that it's had a very marginal effect on the operating results for Entra. Very pleased to see that Entronau is back on a growth track, and we have a strong balance sheet and also financial capacity to support further growth. And we continue to build our project pipeline. Currently, we have 180,000 square meters ongoing, And that will add, once fully let, NOK 530,000,000 to our rental income.
And we continue to work selectively also with acquisitions. So that was all from me now, and I think we would have some questions From the audience, Tonne. Tonne, Any questions?
Yes, we have some questions. Rental growth in Oslo is mentioned as a reason for value changes. However, certain market reports state that market rents are falling. Could you please comment?
Yes. What we've seen is that the ideal statistic has a database supporting or suggesting that some areas have seen declining rents. However, what we experienced is that the data points there are very different from quarter to quarter. So if you look at the changes from 1 quarter to the next, it could very well be that the product qualities and micro locations are different between the quarters. We work in the market with the same products over time and clearly see that We're not experiencing any declining rent or downward pressure on these products.
I think it's fair to say also that N trust products are in the not the high end prime prime yield or rent segments. So less also exposed there. But we also hear that the same goes also from the landlords working in the prime segment.
Maybe I can add also if you look at the same database, the rents in Oslo were up 12% in the 4th quarter And then down 9% in the Q1. And we didn't see the prices go up by 12% in our figures in the Q4, and we didn't see it going to go down the 9% this quarter. So there's clearly quite a bit of noise in this. And so when we look at the data sets from Brokers and companies like Real Estate Stik, we tend to take sort of a longer view and Average it out because it's just plain wrong to do it on a quarter by quarter basis. It create headlines in newspapers And you get sort of bipolar in terms of looking at them, but it's not the way you can run the business.
It's we have to look at the longer lines and a quarter by quarter basis.
Yes.
Are the interest costs on developments, do they include Or the interest cost on developments, are they included in the development overview? Is the interest rate taken of the P and L or is it capitalized?
The interest cost on the project, that's Lukasheen. The interest cost on the projects are capitalized on the balance sheet, but they are not included in the Table on the project overview. So then basically the cost what we include there is the cost of the initial cost of the land And the CapEx that we will spend on the projects. When we IPO ed in 2014, we went through sort of the natural peers in Europe and especially the Nordics To understand how they presented their figures. And basic standard was that we one did not include the Interest cost the capitalized interest cost in those tables.
That said, when we look at the project from our internal, When we add that in projects, we do include the interest cost in on that in the IRR development in the IRR calculations. And it doesn't really change much. For this year, we say we expect to CapEx of SEK3 1,000,000,000 this year. The capitalized interest cost on those projects It's around SEK40 1,000,000. So it could have been in there, but we it has no material effect anyway.
It's in a footnote now on the project table that it is not included in the project overview, but it is capitalized on the balance sheet.
Can you comment on what dialogues are being run with the new owners of Entre, Baldur, Kaselem and SPB?
We are talking to them at the same as we do with all our investors And good discussions with them, very interesting parties to discuss with. So we look forward to having close contact with them also going forward.
That was the last question.
Thank you. Okay. So that's it