Good morning and welcome to Entra's fourth quarter presentation here in Oslo. Before I start, I'd like to just say a few words on the illustration you can see on the front page here. This is one of our buildings in the city center of Oslo, next to the central station, also called Oslo City. This building has a shopping mall on the ground floor and the first four floors, and Entra holds the offices from the fifth floor and upwards. This quarter, we have completed the first phase of the redevelopment of this entire quarter. As you can see on the picture here, the first phase is actually the right side of this building all the way to the back. The left part, we will continue on at a later point in time. The shopping mall is entrance from the center.
This is the busiest shopping mall in Oslo, with 11 million people visiting the mall on an annual basis. So let's move on to some highlights in the quarter. We have had a rental income of NOK 860 million in the fourth quarter. That is 7% up compared to same quarter last year, or 8% rental growth compared to the full year of 2022. Higher interest costs and negative value changes on the portfolio are affecting our results. And net income from property management was NOK 296 million in the quarter, and net value changes came in with a negative of NOK 3.44 billion in the quarter. Out of that, approximately NOK 3 billion is related to the property portfolio, which is then 4% down in the quarter, leaving us then with a loss before tax in the quarter of NOK 3.164 billion.
We have had an active quarter in respect of letting, and net letting then came in with a positive of NOK 23 million. We have also, as I already mentioned, finalized the first phase of the redevelopment in Stenersgata or Oslo City. We were assigned a Baa3 rating with a stable outlook from Moody's, and we have sold three properties in the quarter. And we've also announced in the first quarter that we have signed a letter of intent to sell the entire Trondheim portfolio. Our board's main priority is to strengthen the balance sheets, and they have also therefore decided to propose to the annual general assembly not to pay dividend for the second half of 2023 or the full year of 2023.
Finally, I'm also pleased that we earlier this year could announce that Ole Anton Gulsvik will join the Entra team when Anders leaves us as our new CFO. Ole has extensive experience from capital markets. He's worked as an equity and credit analyst with investment banking and also held CFO positions in other asset-heavy industries. We look forward to welcoming him on board the team. Moving on to operations, we signed new and renewed leases of NOK 180 million in the quarter. That's around 84,000 sq m. If you look at the full year as a whole, we signed leases with a rental value of NOK 483 million or 200,000 sq m. In the quarter, contracts of NOK 40 million were terminated. Out of that, 15 is related to new lease signed with the Norwegian Environmental Agency as one of the largest contracts in the quarter.
Our net letting, as I mentioned, of NOK 23 million. Our occupancy is currently at 95.3%. That is down from 96.5% same quarter last year. Half of this is explained by two factors. Firstly, we have completed five projects in the quarter, and all of these projects are feeding into the management portfolio with some vacancy somewhere between 5%-15%. We have a solid track record of solving that type of vacancy within a year or so after the projects have been completed. Secondly, we do also have some older buildings in our portfolio, which are more or less ready for going into a project phase. Seeing that we now are postponing our project pipeline, these are buildings we are now working on letting. And the quality of these buildings are, of course, less, meaning that also the demand for these type of assets are less.
We do, however, have an ambition to bring our occupancy up again long-term above the 96%. Our average lease duration is 6.3 years, and our share of rental income from public tenants is currently at 57%. If you take a look at the largest contracts signed in the quarter, the Norwegian police signed the entire building in Lagårdsveien, Stavanger. At Tollbugata, the Norwegian Environmental Agency signed 11,000 sq m. In Bergen, the Norwegian tax authorities have renegotiated 8,600 sq m. Here in this building, the Norwegian Post has renegotiated 8,400 sq m. Across the street from here, Galleri Akershus have signed 5,500 sq m. Also in Sandvika, the district court signed 3,400 sq m. There we will now prepare to start the project. In Brynsengfaret 6, Roche Diagnostics have renegotiated 2,400 sq m. We've signed several contracts in that building.
So also there, we are preparing to start a project. Same goes for the asset in Bergen where Norwegian tax has signed. If you take a look at the transactions we did in the quarter, we sold three properties with Cort Adelers gate 30 consisting of two properties, and Marken 37 in Bergen. Gross asset value of these assets was NOK 1.02 billion. They were sold 3.5% below the Q3 book values. The transactions were closed now in January, and the proceeds have been used to strengthen our balance sheet. We also announced earlier this year that we have signed the letter of intent to sell our portfolio in Trondheim. This is a portfolio consisting of 13 offices in Trondheim, totaling 187,500 sq m. The total value of these assets in the transaction is NOK 6.45 billion. That is 1% below the Q4 book values.
We expect to close this transaction during the second quarter. The letter of intent also includes the forward sale of a development project in Holtermannsveien, phase three, one of our ongoing projects, where closing is expected to take place sometime in 2026. This transaction is subject to customer due diligence and also clearance from the Norwegian competition authorities. This is a significant transaction for us and will strengthen our balance sheet and improve our debt metrics. Pro forma this transaction, and also including the transactions we already have signed, our effective leverage and LTV should be brought down with some 5% compared to the Q4 numbers. The Trondheim portfolio has been developed by Entra over the past 10 years and is now close to fully developed.
Since we started reporting on Trondheim as a separate segment eight years ago, we have increased the number of properties from nine to 13. That includes the five new-built projects, as you can see on the pictures below, and also one divestment. The 12-month rolling rent has increased with 129%, and our portfolio value, including investments, increased with 168%. Our project development has been very profitable in Trondheim. We have developed a total of five extraordinary buildings with a total investment of NOK 2.5 billion, with a return on investment on average on these projects of 29%. The Trondheim portfolio is now almost fully developed, and we only have one ongoing project left, which you can see on the right-hand side. That's the third phase in Holtermannsveien, one to 13. This project will also be completed by Entra.
When finalized as part of the transaction, it will be sold to the buyer. Over time, we have created greatest value when we can work with owning properties with some kind of development potential. We have therefore decided that now it was right for us to sell Trondheim and continue the work on developing our projects and properties in our other clusters in and around Oslo and in Bergen. As you saw on the first page, we finalized then the first phase of that project in Stenersgata, Oslo City. This has been a challenging project for us. I have in previous quarterly presentations talked about how we underestimated the complexity of developing an asset on top of a shopping center metro station where you have 11 million people passing through on an annual basis.
A combination of complexity, delays, cost inflation, and also some quality increases to also comply with the taxonomy has increased the cost in this project. Our yield on cost here is thus down from originally planned 4.5% to 4.4%. The space here, when we reported at closing, is 15,100 sq m. The building has not shrunk. When we started reporting at 15,800 sq m, we had planned for an infill project, which now has been moved to the second phase of the project. We started reporting this project with a pre-let ratio of 57%. Now we are at 84%. I think this also demonstrates the value of our cluster strategy because the tenant which signed in this building is actually the largest tenant in our existing building here, headquarters building. We managed to accommodate for their growth by offering the neighboring building.
They have actually signed the entire 84% now. The remaining 16% are smaller floor plans, which we are starting to or which we are working on in the market currently. The environmental qualities in this building have been lifted from originally planned BREEAM-NOR very good to BREEAM-NOR excellent. If we move on to our ongoing list of development projects, through 2023, we have taken out five projects, and we've added only two new projects. The remaining CapEx for these ongoing projects is currently NOK 670 million. And out of that, around NOK 407 million is related to the project in Trondheim, which now has been forward sold. Our project CapEx is significantly below the NOK 1.5 billion-NOK 2 billion, which we have seen over the recent years. This is intentional from our part as our disciplined approach to strengthening the balance sheet.
We are now, however, also planning to start a few redevelopment projects following the lease contracts we have already signed, one project in Bergen, one smaller project in Sandvika, and also one in Oslo. So we will get back to that in the next quarter. So even if we have tightened up on the CapEx expenditure on projects, we continue to work on maturing our land bank to ensure that we also have projects ready to start when market fundamentals and also our capital structure allows for it. We have a very attractive project pipeline for future projects. The ongoing projects we've already been through at the top of this picture. Two of these projects were lifted up from the zoned box below the line to the left, where we have now 100,000 sq m ready sold.
We've also moved in 2023 one project from the long-term pipeline, 14,000 sq m were moved over to sold. The volumes here of 100,000 sold and close to 300,000 long-term is all new sq m, which can be added to the portfolio when we are ready to start these projects. We have a solid track record of profitable project development. On the right-hand side, you can see that we have invested NOK 18.35 billion since the IPO. That's in 31 different projects with an average return of 24% on these projects. That's measured as initial value, including land, and then the valuation the first quarter after we completed the project. A few words on the market. We have seen that the Norwegian economy is holding up well. GDP is expected to be 2.2% in 2024.
Low unemployment rates in Norway are still expected to increase slightly from 3.6% - 3.9%. The key policy rate was increased to 4.5% in September. The central bank has communicated that we now are at the top, but they're still holding back on cuts until they see that they have control over the inflation. The inflation is on a downward curve. December came in at 4.8%, and the numbers for January just came in this morning at 4.7%. The market dynamics in the letting market are also favorable. In the fourth quarter, we saw that the contracts signed in the fourth quarter of 2023 was the second highest fourth quarter since 2008, only beaten by 2022. We can thereby state that we're not seeing any impact on demand from work from home in respect of the volumes signed.
Market trends have seen very strong growth in 2022 and also in the beginning of 2023. Now, market participants are expecting to see that the rental growth will be more moderate going forward, but still on a positive note. Vacancies are low in Oslo, below 6%, expected to increase slightly going forward. Fair to say that also there are differences between the parts of the city where we typically see that the part of the cities where we have an older building structure or group of buildings, or also where you have, in some examples, buildings which have been prepared for project coming now back into the market, adding some vacancies, but then in the more low-quality segments. The building activity has been low since the pandemic, low volumes coming in also this year.
You can see from the bottom right graph that in 2025, there is quite a lot of volume coming in. 65% of that volume is related to two projects. One is the government offices, which will be occupied by the government. They will move out from different parts of the city. The buildings they vacate will need some 18-24 months of refurbishment before they come into the market. The second project is Construction City, which already is somewhere between 70%-80% pre-let. The combination of low vacancies and low new build activity in Oslo clearly provides us with favorable market conditions for renegotiations. In Oslo, more than 80% of the large contracts signed in 2023, also contracts above 5,000 per sq m, were actually renegotiated according to Arealstatistikk database.
For the segment below, between 2.5 and 5,000 sq m, 60% were renegotiated. That is good news for us when we work on our renegotiations going forward. A few words on the transaction markets. It was record low transaction volumes in 2023, NOK 58 billion. We have seen that interest and activity picked up specifically in November when investors got some more clarity on inflation and interests looking forward. We do expect that the transaction activity will be picking up also in 2024, now also supported by more favorable financing markets. We have seen significant interest for enterprise assets and also a lot of more intense interest after November, as also demonstrated by the sales we notified in December and January. The Oslo prime yield is currently somewhere between 4.5%-4.7%. That has also now been evidenced by recent transactions.
Market participants do not expect to see further prime yield expansion. Then in respect of the secondary yields, there are less or more diversified yield expectations. It's difficult to be more firm on the expectations for the secondary yields going forward. The most recent investor survey, which came from Malling, also now in January, also showed that the share of net buyers in the market has increased from 48%-75%, which also tells us that buyers now are more ready to act. From time to time, we find it interesting to look at how our property valuations compare to replacement cost. On this picture, you can see on the left-hand side, the replacement cost first for the CBD prime assets in Oslo is somewhere between 100-120,000 per sq m.
Next to that, an example of a high standard quality or high, sorry, a more normal standard quality building on the east fringe of Oslo would cost somewhere between NOK 45,000-NOK 60,000 per sq m. On the right-hand side, you can see Entra's high quality, centrally located portfolio, 95.3% let, 6.3 years of duration, is currently valued at NOK 48,300 per sq m for the management portfolio, 30,600 NOK for the ongoing projects, and NOK 6,200 for our development sites. Now, on the far right, you can see the current stock market pricing, where the share price of NOK 114 per share would imply an implicit valuation of our management portfolio of NOK 37,000 per sq m, which is actually less than the construction cost excluding land. So on that note, Anders, the floor is yours.
Thank you, Sonja.
In terms of the last years, we've really seen the strong correlation between the macro and commercial real estate. And if we look back now at 2022, clearly, the themes were, I mean, Russia, Ukraine, inflation, central bank responses. Into last year, 2023, it changed slightly towards sort of inflation peak. How is it going to have a soft or a hard landing? And what is the path to a new normal? In 2024, we see another change again. And it's now more about what is the are we going to have a disinflation or not? In Norway, we're starting to see now disinflation coming in, which has a sort of a good impact on the interest cost. And also in terms of the, again, rate cut speed and depth. And of course, as well, I mean, a number of geopolitical topics like number of elections. We got protectionism.
You have the sort of Middle East containment or spread. And lately now, sort of China. And do they start growing again, or do we see a continued decline? And in this macro environment, a changing macro environment, a challenging macro environment, we actually see that Entra stands solid. We have an excellent quality on our assets. We have extra special good tenants, I mean, non-comparable to anyone in Europe, high-quality tenants, 58% public. And not the least, a solid financial situation, which will be further enhanced and improved upon completing the transactions that we are currently working on. So on that basis, our operations are pretty much as expected. So I'll go quickly through the P&L. We will spend some time on three topics.
Clearly, the value changes, the financing situation in terms of cost of debt, liquidity, debt maturities as such, and as well, the impact of the transactions that we have signed both and closed now in January and also the LOI regarding the sale return on portfolio and other investment processes that we are working on. So on that note, revenues coming in at NOK 860 million, basically dead on where we expected them to be. We're NOK 27 million up from the NOK 833 million in the third quarter. Recently, it's basically two projects put into operations. If we compare to the fourth quarter in 2022 of NOK 806 million, we're up some NOK 54 million on quarterly revenues. Reasons are threefold. Firstly, we put 11 assets into operations from small and large projects.
We took one asset out of operations that Sonja was talking about earlier, and those project development gave us sort of NOK 49 million net additional revenues in the quarter. Then we have divested a number of assets throughout the year, and the quarterly impact on our revenues was NOK 34 million negative. Thirdly, net letting now, sorry, net letting, for like-for-like growth, coming in at 7.4%, i.e., 90 basis points above the CPI, which CPI in Norway was 6.5% into 2023 and another 4.8% now for 2024. On the full-year basis, i.e., 2023 to 2022, the like-for-like growth was 5.8%, i.e., 70 basis points below the CPI of 6.5. And the reasoning is basically that the occupancy or sort of the vacancy in the portfolio went up by 120 basis points from one year to another.
Net income from property management coming in at NOK 296 million, so NOK 26 million and NOK 24 million below the third quarter 2023 and fourth quarter 2022, respectively. Then net profit before tax coming in at NOK 3.164 million, of course, impacted by the NOK 3 billion or NOK 3.19 billion of value changes on the assets and NOK 422 million negative value changes on the financial derivatives. I think this exhibit really underlines the impact of macro on our numbers, both in terms of the P&L and cash flow represented by the cash earnings now at NOK 7.4 annualized four quarters rolling compared to the NOK 9.2 at the peak in Q1 2022, which was the pinnacle of happiness in commercial real estate, but also impacted clearly on the asset values.
NRV now at NOK 167, so down from NOK 235 at peak valuations, which is still 8% CAGR back to 2015 and 11% if we include that we paid out dividends of NOK 37 in that period. But again, clearly, a large decline in values. I'll come back to the value changes on the later exhibit. On the P&L part, as we talked about the revenues, basically no surprises at all, operating costs coming in at NOK 71 million in the quarter, NOK 282 million for the full year, basically 8.3% of revenues, which is pretty much in line where we expect to be. We said we're going to be between 8% and 8.5%. That sort of runs well. That's sort of a good figure in our type of business. Other revenues, other costs coming in at net NOK 6 million, NOK 25 million for the full year, again, pretty much as expected.
Admin costs coming in at NOK 44 million. That is lower than we expected, NOK 185 million for the full year. If you look at 2022, we were at NOK 210 million. But in 2022, we had NOK 16 million in one-off effects from the acquisition of Oslo Areal and also our support to Ukraine. So again, comparisons apples to apples will be NOK 194 million between 2022 towards NOK 185 million in 2023. So still a bit lower than expected. I'm happy with that. Again, financing cost being the largest cost factor, NOK 456 million in the quarter, NOK 1.620 million in the full year, pretty much as expected, but still, of course, a significant step up in financing cost driven by the increased interest rate. Our net debt is down by some NOK 1.5 billion between 2022 and 2023. But again, the cost of debt has come up by 59 basis points since from Q4 2022 to Q4 2023.
So that, of course, has a great impact on our numbers with NOK 40 billion or NOK 39 billion in debt. Okay, looking at the next quarterly revenues, starting off with the 860 today or today as a fourth quarter, we sold three assets in January or we closed three assets in January, net negative of NOK 11 million. We're going to put the effect of two projects that have been put into operations, but will have increased revenues as the tenants are gradually moving into those assets of NOK 5 million. We have a net negative net letting of NOK 12 million. That's one asset that we are emptying and preparing for redevelopment. And then the CPI at NOK 40 million, 4.8% CPI adjustment. We basically have 100% CPI adjustment on all our contracts. And it was 4.8% for 2024. We had in our estimate 5%. So it's slightly below our estimate, but still.
January-to-January CPI just came in this morning. It ended up at 4.7%. So we do see some disinflation trends in Norway, which again is positive for further interest rate cuts. We also put in here the effect of the divestment of the Trondheim portfolio. As Sonja said, it's a letter of intent, but we are fairly certain that this transaction will go through. And it will have a negative impact of approximately NOK 400 million on our top-line revenues, and which parts of that comes in the second quarter. We have, in this case, estimated the closing in June 1 and the rest in Q3. And we also put in 3.5% CPI adjustment for 2025. Okay, in terms of the property value development or the asset side, I just want to make two comments.
Firstly, on the CapEx part, we ended up at NOK 448 million for the quarter, NOK 1,765 million for the year, so slightly higher than we had expected. We had sort of put in mind our own spreadsheet around NOK 1,600 million, NOK 1,650 million, so marginally above, still significantly below previous years. We had NOK 2.2 billion in 2021 and NOK 2.6 billion in 2022 and now NOK 1,765 million in 2023. For this year, we expect to be somewhere in the range of NOK 1 billion-NOK 1.4 billion. It really will depend on the number and the scope of our projects that we initiate during the year. The second comment I would like to make is on the value changes. And as you can see, we are writing down our assets with NOK 3 billion for this quarter, so another 4% or 4.2% to be exact of the portfolio. And this might seem a bit strange.
During the fourth quarter, I mean, what we saw was transaction market is opening up again, as evidenced by sort of pretty prime assets being sold in Oslo. We do see the bond market is opening up again. We see that the base interest rate has come down significantly, as also evidenced by our writing down the value of financial derivatives with NOK 422 million in the quarter. And also important, the credit margins are the spreads are coming in on our credit margin on the bond. So basically, it's been a number of positive factors during the quarter. Still, we are writing down our assets by 4.2%. The way Entra does appraisals, we use two external appraisers every quarter and on all assets. And then we basically take the average of those two appraisals down into our books.
What they did this quarter was basically stepping up the required rate of return by approximately 30 basis points. This means that Entra as a whole has written down our portfolio by approximately 16% since peak valuations in Q1 or 110 basis points yield expansion on our portfolio. During that part, as we said before, because our yield was 388 back in Q1, and now it's 390. Now it's 498, so 110 basis points up. In that period, the CPI has also increased a lot more than expectations we had back in Q1 2022. So the real sort of yield expansion of our portfolio, taking CPI higher than expected CPI into account, is actually 135 basis points. So it's been a significant write-down on our portfolios. And as we see, our approach with having two external appraisers is different from what we see from many other companies.
Okay, on the financing part, it has been 1.5 extremely active years on our financing. We have got NOK 5 billion in new bank debt. We have extended NOK 13 billion of bank debt, extending them with debt maturities. And we also did 2 bond taps in January last year of about NOK 1 billion. So a very active 1.5 years. For the fourth quarter, we only extended NOK 280 million bank our bank facility. And I'll come back in the later exhibit for why we really didn't have the need to do anything more than this. What we see is that our key debt metrics have deteriorated during the quarter. LTV now at 57% according to EPRA. According to the Moody's definition, which is kind of the important one, we're at an LTV of 54%. ICR now 2.18 and clearly below where we wanted to be. What's going to happen now?
It's with the divestments that we, we closed NOK 1 billion in January and expecting to close another NOK 6.5 billion then during the second quarter as well as getting about NOK 500 million from some vendor notes that we issued last year. The LTV is going to increase by at least 5 percentage points. Sorry, not increase. It's going to improve by 5 percentage points, i.e., going down. And we see that the ICR by the divestments alone will improve by 20-30 basis points. That comes in addition to the effect of the CPI that will come into our revenues now for 2024 and also the expected lower interest rates that we will see the effect of starting in the third quarter this year.
So clearly, our debt metrics now are not how we want to see them, but we are on a positive trajectory and a strong one as well. In terms of the market, bond market is opening up. We see a number of Swedish CRE companies issuing new bonds. And also margins are tightening. We're still not at the levels where we want to issue bonds, and we don't need to issue bonds at above 200 basis points. So we expect the market to continue to improve from the issuers' side also on the bond market. And clearly, our stable outlook on our Baa3 rating also helps on the investor interest in the bond market as well as the expectations of the increased liquidity or improved liquidity position from the future divestments. CP market is still fairly dry. Bank markets are open but selective, basically as it has before.
If you have good assets, if you've got good tenants, if you're a good company, and if you've got long-lasting relationships, the banks are with you. And I'm happy to say that we are in that category. On the interest rate development, this is a normal graph that we always use. We basically put in what's the forward NIBOR curve, existing hedges. We got the refinancing at current market rate, bank market rates. And we do see that according to the forward rate, we will be peaking our cost of debt, all-in cost of debt in the first quarter this year at 4.34. Then it will come down again. 58% of our portfolio is hedged. When we now are closing the transactions, we're going to use that money to repay debt, bank debt most likely.
And that's going to have a significant impact on our cost of debt as well because what's going to happen then? Well, we're going to pay down on the debt that has a floating NIBOR, of course, which currently is 4.7% compared to the 2.17% that we have as an average hedge cost. So we're basically going to take down the most expensive floating NIBOR debt. In addition, we're going to repay the most expensive debt interest or credit margins. So when you're looking at basically just the pure effect of the divestments, you see that our cost of debt will go down by some average cost of debt will go down by some 30 or 40 basis points, which has a massive impact both on our cash flow and also, of course, on the debt metrics.
And that means also the hedge ratio will go from today's 58% to in the low 70s somewhere, which basically also sets the ground for sort of further predictability in the future cash flows. The last exhibit is starting on a ending on a happy note on this one is, of course, our debt maturity schedule. And we all know that in times like these, liquidity is key for companies with asset-heavy companies. And just so everybody understands the debt duration or maturities, a typical bank debt in Norway has a term to mature between three to four years. It used to be five, then it went to four. Now it's like three to four years. A typical bond debt for us is typically in the five to eight years range. That's our sweet spot in terms of the refinancing risk versus the cost of debt.
So what we see here is a very healthy debt maturity profile that we are happy with. And of course, getting another NOK 8 billion, give or take, in net proceeds from the planned divestments during the year will increase this position even further or enhance the position even further. This is without any divestments. We are summing up. Liquidity is key in asset-heavy companies, especially in times like these. We are comfortable with the situation as it is, and we will be even more comfortable with another NOK 8 billion coming in through the door during the first half of this year. Thank you.
Thank you, Anders. A few closing remarks before we move on to the Q&A. First of all, we are seeing some more comfort on how inflation and interest rates are going.
And we have seen positive signs in the transaction markets and also that the financing markets have opened more up. There is significant interest for Entra's assets, as we also have demonstrated with some of the transactions we now have announced. In respect of the letting market, we are experiencing that the demand is holding up well, specifically for high-quality offices with central locations. And we see favorable market dynamics going forward with the low vacancies and low new build activity we have in our markets. Our balance sheet is solid, and we have ample of available liquidity. And the transactions we now have of a total of NOK 7.5 billion expecting to close in the first half will also strengthen our balance sheet further and improve our debt metrics, as Anders said, bringing our LTV down with some 5%.
I think we'll leave it at that and just check with Tone if we have any questions coming in. Anders, join me.
We have a few quick questions to sum this up. Are there any further divestments in the pipeline?
Well, we have some other investments ongoing, which we will continue to proceed. But also having done what we've communicated so far, we are more now back to the normal portfolio rotation activity, which we typically do as a real estate business.
Have you set a divestment target going forward?
I think I answered that. Business as usual, portfolio rotation.
Can you comment on the difference between the two appraisers' valuations? Anders?
Yeah. It's 3.6% for this quarter. Normally, it's between 1%-4%, so to speak. So it's within the normal line, basically normal variance. And to us at least, 3.6% when you're doing an Excel sheet on the value of an asset, 3% is like you don't need to change much in terms of that. So we're happy with that. And it's always been like this, except in one quarter. And then in that one quarter, it's like two years ago, we added another third appraiser just to do a sanity check on those two. But no, 3.6%. So it's well within the borders that we set.
What are the comments from the appraisers related to the value changes in this quarter? And also, what are their comments on the outlook?
Comments on this quarter? Well, they are positive in terms of the outlook for the rental market. I think that's sort of a fair fundamental for their assumptions. We haven't really seen any large effects of work from home in Norway, either in Entra's contract or in sort of general market. So I think they're positive in terms of the market rents. They did take up the rate of return requirements for about 30 basis points. So the prime yield in their valuations are now 4.5% for one of them and 4.7% for the other, which is basically well supported by the transactions that we saw in December. In terms of the outlook, basically what they that was the second part of the question, right?
Well, they're saying, as Sonja said, that prime yields seem well substantiated, well supported by at least three transactions in Oslo during the last couple of months. And then there is sort of uncertainty, or they're not quite sure what they're going to do with the secondary yields. But on direct questions, are we now at the bottom of the cycle in terms of valuations? Their response is, "Well, if we're not at the bottom, at least we're very close to it." And that's sort of their statement. So it's qualitative, but I think it's fair to say that we're getting close to the bottom in terms of the appraisals. Yeah.
Thank you very much. That concluded the Q&A.
Thank you. Thanks for joining us. See you again next quarter.