After last year’s bloodbath in Norwegian and Swedish property shares, the companies saw an upswing in January this year. Since then, it has only gone one way. The property company Entra is down 10 per cent so far this year, and the share price is at the level of the rock bottom from last autumn.
The well-known stock picker Arne Fredly bought 500,000 Entra shares worth NOK 50 million in March, making him the property company’s 25th largest owner. In April, he sold out completely, before starting again with a buying spree in June. According to the shareholder service Holdings, the investor had 211,782 shares at the start of July.
Calculated at the closing price on the purchase dates, Fredly traded shares for NOK 20.8 million.
On Friday, the property company came out with quarterly figures.
The figures for the second quarter were red and bore the mark of increased costs. The result before tax ended at minus NOK 1.74 billion in the second quarter, compared to minus NOK 327 million for the same period the previous year.
Fredly used the three days before the release of the quarterly figures to sell all his 211,782 shares in the company. The exchange rate was then on average over NOK 100 and gave Fredly a profit of NOK 769,296.
After the presentation of the quarterly figures, the Entra share fell by more than 5 per cent, from NOK 102.50 to NOK 96.80. In the days that followed, the share fell further, and on Tuesday it traded for NOK 95.15.
No wonder
Analyst Simen Mortensen in DNB Markets was not particularly surprised by the property company’s results, but fears rising interest rates could create pressure.
“The result itself is largely as expected, but as we have feared, the ICR and loan-to-value ratio are under pressure as a result of rising interest rates,” Mortensen told Finansavisen.
DNB Markets operates with a hold recommendation and a price target of NOK 105 per share. share for Entra.
The company has sold property for a total of approximately NOK 4 billion in the past year. DNB Markets believes that an answer from Entra could be to sell more property for between NOK 10 and 12 billion.
“It will be able to solve a lot for the company,” said Mortensen.
Betting heavily on Røkke
According to Holdings, it is the Kjell Inge Røkke-dominated investment company Akastor that is Fredly’s largest position with over 17 million shares, and a value of NOK 185 million at today’s exchange rate. Right behind is the niche bank Maritime & Merchant Bank. Fredly has a record in the shipping bank of over 8 million shares.
Fredly is also betting on fellow investors Øystein Stray Spetalen and SD Standard ETC. Here he has 37 million shares, equivalent to NOK 65 million at today’s exchange rate.
2023-07-18 12:14:28
#Sold #price #drop
