Good morning, welcome to Entra's third quarter presentation, brought to you here from Oslo, where we actually woke up to snow this morning. Let's just jump into the highlights in the quarter. Rental income came in at NOK 639 this quarter versus NOK 589 same quarter last year. Net income from property management of NOK 402 million. Our external appraisers have increased the valuation of our properties with 1.2% in the quarter, thus leaving us with net value changes of NOK 794. Profit before tax in the quarter of NOK 1.126 billion. We have finalized two large projects in this quarter, both on time and cost. We also closed one acquisition of the Hotel Savoy, also in the Tullin Quarter this quarter. We have had a solid letting activity, signed leases on more than 51,000 sq m.
Net letting this quarter at -44, seeing that one of our tenants has chosen not to renew their contract. We have also received two ESG ratings in the quarter from the two standards we report on. Very pleased to see that our GRESB rating came in at 92 points out of 100, giving us also this year a 5 stars ranking and a number 10 out of the European-listed real estate companies. We're also pleased to maintain our EPRA gold level rating in both sustainability and financial reporting. After the quarter on October 12th, Fastighetsbolaget Balder announced that they had passed 1/3 threshold and that they will put forward a mandatory bid for all outstanding shares in the company within the four-week limit in accordance with the Norwegian Securities Trading Act.
The board will carefully evaluate the offer when it's put forward and come back with their statutory recommendation in due time to Entra's shareholders. The third quarter is normally a pretty slow quarter in respect of letting, seeing that we have a summer vacation as part of the quarter. However, we have had quite high activity in this third quarter. As you can see from the bottom graph on the right side, this third quarter was active compared to a normal third quarter. We signed contracts on 51,000 sq m with rental income of NOK 133 million, whereof NOK 29 million in the projects. Normally, we work with somewhere between 150,000 and 200,000 sq m of renegotiations every year. We typically start three to four years on the large contracts.
We've been working for some time now with 2 large contracts which expire in 2023, and we were very pleased to see that the municipality of Oslo with the planning and building authorities in Vahls gate 1-3 have renewed their contract or renegotiated and signed a new contract for 10 years. This building has technical installations, which is reaching the end of their lifetime, meaning that we will do a refurbishment of the building. As part of the renegotiation, we have agreed to move the tenant into an existent vacancy in our Oslo portfolio, meaning that we will maintain the cash flow from the tenant through the refurbishment. In Brynsengfaret 6, we have a multi-tenant building where the largest tenant is the Norwegian Public Roads Administration.
They have been reorganized over the last three years and reduced their space requirements, and they have chosen to move out of the building when the contract expires in the second quarter of 2023. This means that a total volume of NOK 102 million of contracts were terminated in the quarter, whereof NOK 72 million from the contract with the Norwegian Public Roads Administration.
If you take a look at the bottom of the slide, you can see some of the largest contracts which were signed in the quarter. A lot of large contracts this quarter. The one in Vahls gate with the municipality, as I already mentioned. Here next to our main headquarter, the Biskop Gunnerus gate 6, Statsbygg have renegotiated 9,300 sq m. In Bergen, Møllendalsveien 6, one of our projects, the municipality of Bergen signed 7,400 sq m. That brought the occupancy of this project up to 95%.
In Sundtkvartalet, Fellesforbundet has signed 4,400 sq m. This is actually a tenant which is currently sitting in one of our buildings, which we are now preparing for project. Very happy to see that they have chosen to stay within the Entra portfolio. They're actually taking over a space where we have moved another tenant into our Tullin project. This clearly shows that the value of having a large portfolio and also having large customers which want to stay within the Entra portfolio. In Hagegata 22 to 24, Schibsted has also renegotiated for 3,500 sq m. Our occupancy is currently at 97.3% and average lease duration of 7.1 years, including projects. A few words on the Tullin Quarter again. We've spoken a lot about this area through the quarterly presentations.
Very happy to see that two of the largest projects in the quarter have now been completed on time in this area, the two buildings marked in yellow here. Previously, we have completed the buildings in green in front, the university building, where 4,000 students already have moved in, and our pioneer project, Kristian Augusts gate 13, which was the 1st circular economy project we did. Since we started working with this area, we have seen that rental levels have increased with some 20%-25%. Of course, supported by a strong market, but also the fact that we have done quite a big job on creating the right product and also getting the right F&B concept, food and beverage concept, service concepts on the ground.
Meaning that this part of the city is now starting to compete with CBD as being one of the most attractive office destinations in Oslo. We do believe now that with both high-quality large buildings and also the product offering we have put in place on the ground level, this part of the city will definitely trend towards CBD rents and yields going forward. I thought I would just share with you a short clip from a film which we've used in marketing of this area. It gives you an idea of the look and feel, which we have tried to create in the development of the Tullin Quarter. Let's see if it rolls. That was just a snippet out of a two minutes long film, which we've used to attract the tenants and help them understand the potential of this area.
Very happy to see that when you walk around in this area now, you can actually recognize what you're seeing in the film. That's a good story. If you look at the Universitetsgata 7-9 building in Oslo, it's a high-quality building, close to 22,000 sq m. It will be certified BREEAM-NOR Excellent. It's currently fully let. We started the project at 25% pre-let ratio, and here we have attracted more high-quality tenants. We have three law firms and also our tenant, Knowit, which moved from our building in Sundtkvartalet. It's a super profitable project. Yield on cost 5.8%. Total project cost of NOK 1.3 billion. The other project which we have completed in the quarter is Universitetsgata 2, where we've put in place the Rebel concept.
This is a building where we have worked to create the product answering to some of the trends which we believe to be most relevant for future workplace solutions. Our ambition has been to create an environment which adds value to our B2B customers and also their employees, so that it can be used actively also in the employee branding for our customers. Based on our experience from developing Media City in Bergen and also together with a partner which has substantial experience in creating arenas for knowledge sharing within the technology industry, hosting lots of events, conferences, et cetera. We launched Rebel with the ambition to become Norway's most important arena for sharing and developing technology competence. We are very proud and happy to see that upon completion now, 55 companies have decided to move into this building.
It's a good mix of mature technology companies. It's project offices from large corporates, IT consultants, IT communities, and also tech-related education. For Entra, this project also represents a lot of innovation. It's a building of 28,000 sq m. As you can see on the sketch on the right side here, the tower has been rented out as more regular offices, but with a full-service offering. In the base, we have a combination of studio offices where you can rent anything from office for two to 20 people, some co-working space, and in the lower floors, we have converted the parking into restaurants, event conference space, and a total of six different food and beverage concepts will be in the building.
If you look at the innovation aspects for Entra, one of the parts has been to create, as I said, an environment which adds value to the customers. As an example, our customers here, when signing the contract, they've actually signed a lease that they will also be obliged to host a minimum of two events, which they share and open up for all the tenants on the house. We're also offering full service lease contracts. Example being that the office space is fully furnished. The meeting rooms is equipped. We will be handling and take care of all the premises in the office space. We're also offering short-term leases, more flexible contracts for an industry which is in rapid change.
This means, of course, that we have put a lot of effort into designing the office space so that we can rent out the space to the next tenant if one moves out. Standardized products, but with an edge, which should fit most customers. It will also be our first test at operating these full-service offices with both co-working and also a lot of event space. The Rebel will be operated in a 50/50 partnership with partners which have experience in the knowledge-sharing part, event conferences. We've also worked on providing digital solutions which support the full service and flexibility which has been put into the building. One example being that if you just want to book a meeting room in this building, you will actually get a pin code on your phone, which brings you into the meeting room which you have booked.
The property has had a fantastic response in the marketplace. We launched it with a 13% prelet ratio. However, after doing a pre-marketing phase where we got very positive response, and we are very pleased to see that we're now at 96% occupancy on the regular office and 86% if you include the project offices and co-working. In respect of the conference space, it's a bit early to say, but we're getting very good attention now as the COVID restrictions were lifted. We have a total project cost in this project of NOK 1.65 billion, a yield on cost of 5.7%, which is up from 5.6% from our last reporting. In respect of the ongoing projects, there is not much to be said other than that they're all progressing according to plan on time and cost. We have good progress on letting in St. Olavs plass 5.
Tullins gate 12, only retail space remains, which will be done closer to completion. In the two remaining projects in the city center of Oslo, they still have a long time to completion. In Bergen, we have a very strong interest for Nygårdsgaten 91-93, we do expect to see that occupancy there will pick up towards 50% based on the ongoing contracts within the year. In Trondheim, we expect to see that occupancy will pick up closer to completion, seeing that it still is a long time to completion. As mentioned in my introduction, we were very happy with achieving our GRESB score and 5-star rating with a total score of 92, representing an improvement for us of five points this year. The rating makes us number one in our peer group and number 10 amongst listed real estate companies in Europe.
GRESB is the most comprehensive ESG reporting framework, which measures ESG performance or excellence on both a management and operational level, asset by asset. It's also the most reputed framework. The GRESB ESG benchmark covers more than $6.4 trillion of assets under management. We're also very happy to have maintained our gold level for compliance with EPRA's best practice reporting in sustainability and financial reporting. This clearly proves our commitment to being an environmental leader and also enables us to capitalize on our environmental qualities in both depth and equity markets. Just a short note on Kristian Augusts gate, this pioneer project which we did, where we actually took, I would say, giant steps in respect on working with circular economy in the industry.
In this project, we have had the entire industry's eyes on the project, as well as regulators, both in Norway and EU. Very happy to see that it's getting a lot of attention for its achievements. A few words on the market situation. Norway has fully opened since September. We're more or less back to normal. Very happy to see that both traffic and also activity in our offices have picked up significantly. In our own office, we are now back to normal. During the COVID situation, I would say that we have experienced that tenants clearly have been using more time to assess what kind of office solutions they need. The decision processes have been much more timely. We have also experienced that more contracts have been renegotiated. However, we do expect that to be more of a temporary effect.
Relocations should pick up again once the companies get their heads around what their future solutions will be. We do note that lease contracts signed during this period have had the same average size and lease duration as before the pandemic. In respect to vacancy, it has picked up from 5.5% and is expected now to trail down again from the peak of around 7%, according to Entra's consensus report. We also clearly see that the activity level in the letting market has steadily increased over the past six months and continue to increase. We have a very positive outlook on the rental market in Oslo going forward, and do also expect to see a pretty strong demand side in the years to come.
In Oslo, we are clearly seeing that if you look at all the lease expiries going forward, there's a huge lump of them coming in 2023, some of those will probably also roll over into 2024. There are solid expectations for economic growth, also supporting a strong letting market going forward. We saw that SSB did an analysis on office-related jobs, employment growth within office-related jobs recently. When they stripped out the sectors within office-related jobs, which were exposed directly to COVID, such as culture, education, and travel agents, they actually saw that they only had one quarter with slightly negative employment growth. As of the second quarter this year, the annualized growth for office-related jobs were 3% in Oslo.
On the general note, we're hearing from our customers now that when they're coming back to the office, they're experiencing that it's a struggle to find enough meeting room capacity, which would imply that they would need more space for these functions. At the same time, when you look at surveys which have done in the market, Akershus JLL has done one on an annual basis, asking customers whether they expect to increase, reduce their occupancy. They're also supporting that customers don't really expect to decrease occupancy, or densify more going forward. We clearly saw before the pandemic that companies were densifying much more the office desk space, but that's been reversed now. If you look into the work solutions that the companies are discussing, more and more are opening up for more flexible work or home office as part of the solution.
However, we're clearly also seeing that they're conscious about maintaining sufficient space or capacity in the office because it is still very difficult to plan when people will come in, when they'll work from home. Also the savings from reducing space is easily outweighed by loss of productivity, seeing that rent cost is only around 3%-5% compared to what you pay on average for a total employee cost. The short-term inflation pressure in Norway is currently high. In September, we saw inflation come out at 4.1%. On our lease contracts, we have November to November adjustments of our leases, and more or less 100% of our lease contracts are CPI linked. The transaction market, we have had record high levels, in 2021, year to date, NOK 87 billion of transaction volume. There is very strong competition for attractive office buildings and also for the projects.
We continue to see price levels being challenged. The financing market is very competitive, and we're seeing margins are under pressure. Combined with expectations for market rental growth, we do believe that this will have some balancing effects on rising interest rates when it comes to property pricing. Prime yield currently still at 3.25%-3.30% in Oslo. I think that's it from me now, and I'll leave the floor to you, Anders.
Thank you. Looking at the numbers side, there are a couple of key takeaways that we would like to leave with you. Firstly, on the P&L, revenues are a tad higher than we actually expected. The Hotel Savoy brings it up, and also we've seen very positive development in our co-working relationship or partnerships with IWG, and also the positive development in the Rebel concept. That basically explains the pickup from the NOK 631 that we sort of expected and the NOK 639 where we ended up. Second, value changes were also strong this quarter. Thirdly, we see that the financing market has been extremely good this quarter, and we have utilized that to the extent possible. Fourthly, with the development pipeline and the two projects we have delivered, we are solidly back on the growth track.
I think those are the sort of four key takeaways from the numbers side this quarter. Diving into the details. Revenues at NOK 639, we're up NOK 37 million from the NOK 602 in the second quarter. Primarily driven by acquisitions, NOK 27 million, the introduction of those two projects at NOK 6 million. If we compare the revenues to the quarter last year at NOK 589, we're up at full NOK 50 million. Again, net acquisitions, we acquired six assets and divested one, yielded another NOK 37 million in positive revenue contribution on the quarter. We put four assets into operations from our project pipeline and took two larger assets out of operations, which yielded in total a net of negative NOK 2 million. We have, also this quarter, a strong like-for-like growth of 2.1%, which equals NOK 16 million on the quarter.
This 2.1%, as we discussed every quarter, is to also be compared with the CPI, which was only 0.7% last year. There's an underlying, very strong like-for-like growth driven by basically the renegotiations and the increased occupancy on our assets from last quarter. Net income from property management coming in at NOK 402, and you see that profit before tax at NOK 1,192, primarily driven by the value changes.
As you see, in the last three quarters, the value changes have been between NOK 724 and NOK 781, NOK 780 in this quarter, while it was in the third quarter last year, a full NOK 4.6 billion. That explains the big uptick in the profit before tax on that quarter alone. Moving into the numbers per share, we see that the cash earnings annualized four quarter rolling is picking up at NOK 8.3, which actually is a CAGR of 11% since 2014. Look at the NRV.
It comes at NOK 205. We have not deducted the dividends that were paid out earlier in October. It's basically apples to apples to the share price as of September 30. With a CAGR of 14%, quite solid since 2014. Also, if we include the dividends that we have paid out at NOK 27, it actually gives a CAGR of 17%. On the number part, a few words on the operating cost coming in at NOK 58 million. We said last quarter and the quarter before, we are working on getting our operating costs down. We're currently at 9.1% of revenues is in this quarter, compared to 9.4% year-to-date. Clearly, we're trending in the right direction, but there's still more work to do from our side.
If you compare to the NOK 46 million of the third quarter of last year, please bear in mind that also includes those NOK 46 million. That also includes a negative provision of NOK 5 million. Basically, we made accruals in the second quarter for possible COVID-19 effects. When we saw that it basically didn't materialize, we reversed that in the Q3 of NOK 5 million. Real like-for-like comparisons to it that way would be NOK 51 million, not NOK 46. Other revenues, other costs coming in at NOK 8 million. Pretty standard. We see that admin costs coming at NOK 43 million, basically in line with previous. We will, in the fourth quarter, have triggered some advisory costs due to the Balder mandatory offer for all the shares in Entra, which will give us another give or take NOK 25 million in additional costs on the fourth quarter.
That means admin costs for this year would be probably slightly north of NOK 200 million, of which total NOK 37 million will be one-off or extraordinary costs. Baseline is that we're okay with the situation being in the NOK 170-ish range for admin cost, but it will be higher for this year. I'll come back to developer changes afterwards. If you're looking at the rental income bridge, you see that we revised the numbers somewhat. The biggest change has been on the CPI, where we had in our Q2 numbers put in 1.7% CPI. Currently, September to September in Norway is 4.1%, driven by high electricity prices. We have in these figures used 2.5%, which clearly drives up the numbers for Q1 next year and thereafter. We put in 2% in Q1 2023, back to normalized levels.
There might be some upside on the CPI adjustment for 2022, we left it at 2.5% for the time being. We're basically seeing that when we put assets into operations from our project development pipeline, it takes about two, maybe up to three quarters to get the full effect. Universitetsgata 2, Universitetsgata 7-9 will also yield an additional revenues in the fourth quarter and into the first quarter. We see that in the third quarter of next year, Tullins gate 12 and St. Olavs plass 5 will add revenues, which also spills into the fourth quarter of 2022. Clearly, if this plays out, please bear in mind this is a summary of known effects, what is known in the market, we will have a revenue growth of 6% from 2020 to 2021, another 11% in income growth from 2021 to 2022.
We're happy to say that we are clearly back on the growth track for Entra. It feels good. Looking at the balance sheet, starting off at NOK 62.7 million, adding acquisition of Savoy, another NOK 604 million in CapEx for the quarter, the NOK 780 million on value changes on the properties. If you look at the pie chart to the right of the exhibit, you will see that the biggest part is yield effects totaling 41% of the NOK 780 million, which comes from two places, to be specific, Trondheim and Skøyen, the area west of the Oslo City Center. We have another 21% attributable to the project pipeline, mainly the two projects that have been put into operations, and also the one project we're doing in Trondheim. We have another 18% of market rents primarily in Oslo. Finally, 16% attributable to net letting.
All in all, a very strong rent or value changes development also this quarter. Adding the portfolio that will be sold to a residential developer and the value of our joint ventures, we now have total assets of about NOK 66.1 billion. On the financing part. Q1 this year was a very silent and quiet quarter on the financing side. Basically, given the strategic interest for Entra, we were in a standstill position. It picked up again in the second quarter. We did NOK 3.8 billion in new bonds or new green bonds, and then we continued that momentum into the third quarter, basically leveraging a very attractive financing market. We rolled our NOK 1.2 billion commercial portfolio or CP portfolio. We extended about NOK 8.3 million of bank debt for one more year, so increased duration on our return to maturity on those.
In two major operations, we issued a total of NOK 7.4 billion in new green bonds in four new issues and two taps, and at the same time repurchased a total of 10 different tranches of bonds. Net increase in the bond portfolio was NOK 2.9 billion, which also leaves us, as you can see, both with a very solid liquidity position, NOK 8.2 billion, and also a maturity profile on the debt now going from five to 6.1 years. Again, a very solid quarter on the financing side. The debt mix you can see on the graph to the left. Interestingly enough, due to the number of green bonds issues in the quarter, we now have 67% of the Entra financing that is green, both in terms of bond financing and green bank loans. 67%. To the middle graph.
With our, again, tenant quality, the long WALT, the assets where we see very low residual risk, and an ICR of 3.5 and an LTV of 40.7, it clearly is a very solid ship we're running with significant fresh gunpowder in case we want to explore new opportunities. Interest costs on the very right, stable at 2.12%, we expect that to pick up in the following quarters, mainly following the forward curve on the interest rates. It's dampened by our hedge positions, still, we will feel the impact, as you can see. All in all, on the CP market, open, attractive. We're basically doing them at typical margin of NIBOR plus 20 basis points. Even with a fully backstop by bank facilities, it's still a very good, very strong, and attractive financing.
Bond market has been simply fantastic for the last half year, and we utilized it to the extent possible. The bank market, again, open, supportive from our five banks, and flexible in terms of financing. On the funding side, on the financing side, it's all good from Entra. I think that concludes the financial part. Thank you.
Okay. Thank you, Anders. Some closing remarks. The market fundamentals are very solid. In Norway, most people seem to be now going back to life and also into the office post-COVID. The letting activity is picking up, and we have a limited near-term supply, which is positive for the market situation right now. We believe this is preparing the ground for further rental growth going forward. The transaction market continues to be strong and very competitive. On our hand, we are progressing on our highly profitable project pipeline according to time and cost. We completed two large projects in the quarter, with yield on costs of 5.7 and 5.8%. This also enhancing the attractiveness of the Tullin area. We have ongoing projects of 125,000 sq m, which when completed, will be delivered at yield on costs between 4.4% and 5.7%.
We are also progressing on our shadow pipeline according to plan. We continue to have a very strong balance sheet and capital structure, which supports a potential to add significant also further growth in the years to come. That concludes the presentation from our side, and I think we're ready to move to Q&A, Tone.
We have received some questions. The first one being, when will the board make a statement on the Balder offer?
Balder has a four weeks period before they have to put forward their offer. The offer has to be in the market for between four and six weeks, depending on the amount of American shareholders we have. The board is then inclined to put forward their recommendation within 1 week prior to the expiry of the mandatory offer.
What are your plans for Brynsengfaret 6 following the termination by the Public Roads Administration? Will there be need to refurbishment? How long has the tenant been in the building, and how old is the building?
Well, we've already started working with the letting. We do expect that we will have to do a refurbishment. The building will be 20 years old when they move out. We will probably see that we'll take that part of the building out, do a refurbishment, and hopefully we will have signed contracts before we get to as two years ahead of time into the future.
What can you say about the estimates for the 2022 CPI adjustment, and what is valued into the books?
Well, we have used 2.5% in our communication on the known effects on the next six quarter revenues. Again, all our contracts or 98% of our contracts are 100% linked to the CPI in Norway from November to November the previous year. Last year, it said it was only 2.7%, mainly driven by low electricity prices in Norway. For this year, the opposite has happened. Electricity prices are skyrocketing, and September, December is 4.1%, somewhere north of 2.5. I think we're on a safe side on 2.5%. I think that's the way it looks like right now. On our appraisers, they actually use different estimates on the 2022 CPI expectations. One has 2%, another has 2.9%. I guess on average, they feel we're quite happy with that. They're also taking a sort of slightly conservative view on the CPI.
Going forward, we expect a 2% standard CPI in Norway. If you look at the CPI from 2000 till 2020, on average, it's been 1.9%. 2% seems like a fair figure. It was extraordinarily low last year, and it's probably is going to be extraordinarily high this year.
Should we expect Rebel or Universitetsgata 2 to result in negative contribution from associates and JVs in Q4 as well? What do you expect for 2022 in terms of contribution from associates and JVs?
Yeah. Our JVs are basically two companies. The question was about Rebel, right? They're two companies. Let me just take both of them. One is Oslo S Utvikling, the residential developer in Bjørvika in the central Oslo, which we own 50% now. We went up from 33% to 50% last quarter. As a residential developer, they will recognize the profits when they sell the apartments. Right now, they're basically just done or finished off selling one chunk, actually taking over the apartment by the new owners, not selling. We are now into another stage, and we expect them to be negative for the full 2022. There will be a big chunk of profits coming in afterwards. They were on our books about NOK 3 million to NOK 4 million negative for the third quarter, and we expect that to pretty much continue in the coming quarters.
On Rebel, as Sonja said, we own the asset, the building, and then we have a 50/50 partnership with another company, which is basically running the asset with. Our revenues from that asset is, we expect to be, give or take, in a full run rate scenario, pretty much about NOK 80 million or so.
We expect that of those NOK 80 million, NOK 20 million or so comes from the base of that building, being the events and the flexible part of it. That has not picked up yet. Until that picks up, we will not make a profit in that joint venture. We expect it to be negative also in the fourth quarter, but the underlying trend is positive. They are getting business and events coming in now. We expect them to break even in 2022. It will not be a humongous profit on that because that will be on our books because we own the asset.
The final question being, you mentioned the margins you are seeing on bonds and commercial papers, but you did not say anything about the bank margins. What are they?
We deliberately did not say anything about the bank margins. We do business with five of the top six Nordic banks, and on a five-year bond, now we'll be in the low 70 margins. I don't want to go into details on the bank financing, but I think it's fair to say that we have the cheapest bank financing in Norway. It's more expensive than the bond market, but it's significantly cheaper than what our peers and customers and friends are getting. Sorry, I cannot go into details on that one.
Thank you. That concludes the Q&A for today.
Okay. Thank you. Thanks.