Selvaag Bolig ASA: Q1 2025: Good Sales and More Homes Under Construction
Selvaag Bolig sold homes worth over NOK 1.2 billion gross in the first quarter. Several construction starts have increased the number of homes under construction to 1,012 with a value of NOK 7.2 billion.
“Sales in the quarter were very good, and we have had several successful sales starts. Due to the good sales we have been able to start the construction of several new projects. We now have 1,012 homes in production with a sales value of NOK 7.2 billion. We also aim to further increase this order backlog going forward,” says CEO Sverre Molvik.
64 percent of the homes under construction are sold, and 85 percent of the homes that will be completed in 2025 are sold. During the quarter, Selvaag Bolig started construction of 183 homes, completed no new homes, and handed over 34 homes to buyers.
Few deliveries cause a negative IFRS result this quarter. However, the ongoing value creation in the company is good, due to an increased number of homes under construction and good profitability in the projects.
“The high activity combined with good project margins will yield good results going forward,” says Molvik.
During the quarter, Selvaag Bolig sold 169 homes net and now has approximately 450 homes for sale. The company plans several sales starts going forward, with a potential of an additional 500 homes for sale in the market in 2025.
A webcast of the presentation can be followed from 08:30 here. An English transcript of the presentation will be made available on the company’s website.
Highlights of Q1 2025 (Q1 2024)
- Gross sales* amounted to 196 homes (154) with a sales value of NOK 1,244 million (NOK 868 million)
- Net sales* amounted to 169 homes (139) with a sales value of NOK 1,038 million (NOK 760 million)
- Net construction starts of 183 homes (123), no new homes completed (236), and net deliveries of 34 homes to buyers (179)
- Net 1,012 homes under construction (671) with a combined sales value of NOK 7,153 million (3,948)
- 64 percent of homes under construction sold by the end of the quarter (62 percent)
- 50 completed homes unsold at the end of the quarter (126)
- IFRS**: Operating revenues of NOK 167 million (NOK 628 million). EBITDA adjusted for financial expenses NOK -19 million (NOK 106 million), corresponding to a margin of -12 percent (17 percent)
- Proforma IFRS** including Selvaag Bolig's share of joint venture projects: Operating revenues of NOK 194 million (NOK 868 million). EBITDA adjusted for financial expenses NOK -8 million (NOK 134 million), corresponding to a margin of -4 percent (15 percent)
- Earnings per share: NOK -0.22 (NOK 0.60)
- NGAAP***: Operating revenues of NOK 678 million (NOK 547 million). EBITDA of NOK 65 million (NOK 45 million), corresponding to a margin of 10 percent (8 percent)
- Proforma NGAAP*** including Selvaag Bolig's share of joint ventures: Operating revenues of NOK 729 million (NOK 707 million). EBITDA of NOK 72 million (NOK 72 milllion), corresponding to a margin of 10 percent (10 percent).
* Units sold are sales contracts entered into with customers pursuant to the Norwegian Housing Construction Act and the Tenancy Act in Sweden. In accordance with the IFRS, they are recognised as income on delivery. Net sales include Selvaag Bolig’s share of joint venture projects. Gross sales include all homes in joint venture projects.
** Pursuant to the IFRS, all profit is recognised when the homes are delivered to the buyer. Profit pursuant to the IFRS accordingly derives primarily from homes which began to be built roughly two years ago.
*** The accounts pursuant to Norwegian generally accepted accounting principles (NGAAP) utilise the percentage of completion method. This means that profits are recognised on the basis of construction progress and sales in the projects. That presents ongoing value creation in the company.