2nd quarter 2016 Oslo, 14 July 2016

Agenda Highlights in the quarter Operations and market Financial update Closing remarks Q&A

2

2nd quarter 2016

Highlights in the quarter Key figures: Q2-16

Q2-15

Rental income

463

423

Net income from property management

258

110

Net value changes

526

521

Profit before tax

790

661

Key events: • Net letting of approximately 83 million • Acquisition of 61,000 sqm portfolio at Skøyen in Oslo • Semi-annual dividend of NOK 1.7 per share Verkstedveien 1, Skøyen, Oslo

3

2nd quarter 2016

to be paid in October 2016

Agenda Highlights in the quarter Operations and market Financial update Closing remarks Q&A

4

2nd quarter 2016

Letting and occupancy • New and renewed leases, 110 mill (37,000 sqm) • Terminated contracts, 19 mill (8,000 sqm) • Net letting of 83 mill

• Occupancy at 95.4 %, WAULT at 7.1 yrs Largest new and renegotiated contracts

Bisnode

3 250 Renegotiated

Q2-16

Langkaia 1, Oslo

Q1-16

1 700 New

Q4-15

Hurtigruten

Q3-15

Langkaia 1, Oslo

Renegotiated New - project pf. Net letting

Q2-15

1 700 New

Q1-15

Norwegian Food Safety Authority

Q4-14

Sundtkvartalet, Oslo

-30

Q3-14

20 000 New

-

Contract Q2-14

University of Oslo

30

Q1-14

Tullinkvartalet, Oslo

60

Q4-13

Tenant

2nd quarter 2016

120

Q3-13

Property

5

Annual rent, NOKm

90

• Uplifts on renegotiations of 10.3 %

Sqm

Quarterly net letting*

New - management pf. Terminated

* Net letting = new contracts + uplift on renegotiations – terminated contracts

Acquisition of office portfolio at Skøyen in Oslo • Three high quality office properties with prime location at Skøyen in Oslo − 61,000 sqm of which 43,100 sqm office and 2,700 sqm retail • Transaction value: NOK 2.5 bn

Update picture

• Financed through new bond issue and existing debt facilities. − Average interest cost of 2.1 % • 2,300 sqm in Verkstedveien 1 let to Norwegian Health Network post signing • Closing on 1.9.2016

6

2nd quarter 2016

Key figures Skøyen portfolio: No of sqm / parking spaces:

61,000 / 370

Occupancy / WAULT:

100 % / 6.2

Gross rent (Fully let annualised Q4 2016):

135 NOKm

Sale of three non-core properties • Kalfarveien 31 in Bergen, Fritzners gate 12 in Oslo and Telemarksgata 11 in Skien • Total consideration of 149 million • 30 % above book values • In accordance with strategy to focus the portfolio on large, central and flexible office properties Kalfarveien 31, Bergen

7

2nd quarter 2016

Fritzners gate 12, Oslo

Telemarksgata 11, Skien

Lease contract for new university building in Tullinkvartalet • Signed lease contract with the University of Oslo for new faculty of law in the city centre − 25 year lease − 20,000 sqm • New-build project of approx. 21,000 sqm − Involves Entra's properties in Kristian

Existing buildings

Augusts gate 15, 19 and 21 − Currently approx. 15,100 sqm • Zoning plan at final stage • Project expected to be finalised in 2019/2020

New Faculty of Law

8

2nd quarter 2016

New Powerhouse at Kjørbo in Sandvika • Renovation of empty office building into a new Powerhouse • Block 3 - 4,200 sqm • Total building cost (incl initial cost): 144 million

Norconsult Police

• 54 % pre let to Asplan Viak

Asplan Viak

Kjørbo

2nd quarter 2016

2 3

• Estimated yield-on-cost: 5.6 %

9

1

Project Portfolio Occupancy (%)

Of which accrued* (NOKm)

Ownership (%)

Location

100 100 100 100

Oslo Oslo Sandvika Trondheim

Dec-16 Dec-16 Jul-17 Nov-17

18 100 4 700 4 200 28 600 55 600

46 100 54 77

433 162 144 680 1 419

294 110 75 284 762

6.6 6.3 5.6 6.4

Jointly controlled companies: Sundtkvartalet MediaCity Bergen Total Jointly controlled companies

50 50

Oslo Bergen

Dec-16 Aug-17

31 300 45 000 76 300

49 69

1 055 1 677 2 733

837 1 243 2 080

6.7 6.1

Forward sold property projects: Gullfaks*** Total Forward sold projects

50

Stavanger

Aug-16

17 900 17 900

100

539 539

531 531

6.7

Group: Strømsveien 96 Cort Adelers gate 30 Powerhouse Kjørbo, block 3 Trondheimsporten Total Group

Project area ('000 sqm)

Estimated total project cost* (NOKm)

Expected completion

* Total project cost (Including book value at date of investment decision/cost of land) ** Estimated net rent (fully let) at completion/total project cost (including cost of land) *** Gullfaks; Occupancy is reported as 100 per cent let due to a rental guarantee included in the purchase transaction of Hinna Park AS

10

2nd quarter 2016

Yield on cost**

Market development Rent and vacancy • High activity in the Oslo market − Many and large contract expiries − Limited new supply of new office space and decreasing vacancies − Rental growth expected to pick up • Vacancies levelling out around 10 % in Bergen, Trondheim and Stavanger

Rental growth and vacancy Oslo 10% 7,9 %

8%

7,1 % 8,3 %

7,8 %

8,4 %

8,0 %

7,5 %

7,1 %

8,0 %

6% 4%

4,6 %

4,1 % 3,1 %

2%

2,4 %

2,3 %

0% 0,2 %

− Significant variation between sub markets

-2%

− Entra in a good position with solid and

-4% 2010

centrally located portfolio

7,2 %

7,4 %

-3,0 %

2011

2012

2013

2014

Rental growth central Oslo assets

2015

2016e 2017e 2018e

Vacancy Oslo and Bærum

Source: Entra consensus report, average of estimates from leading market specialists in Norwegian market.

11

2nd quarter 2016

Market development Transactions and yields • Transaction market has had a slow start but volumes are picking up • Demand still high but few large objects / portfolios has been for sale • Prime yield further reduced to 4.0 %

Total transaction volume (NOKbn) 150

123

100 50

28

14

38

35

2010

2011

52

40

67

62

64

2014

2015 2016e 2017e

0 2008

2009

2012

2013

Prime yield Oslo 8% 6%

6,7 % 6,3 % 5,8 %

5,2 % 5,3 % 5,2 % 4,7 %

4%

4,1 % 4,0 % 4,0 %

2% 0% 2008

2009

2010

2011

2012

2013

2014

2015 2016e 2017e

Source: Entra consensus report, estimates from leading market specialists in Norwegian market

12

2nd quarter 2016

Agenda Highlights in the quarter Operations and market Financial update Closing remarks Q&A

13

2nd quarter 2016

Key financials Rental income (NOKm)

9% 500

459* 423

437

454

463

Net income from property management (NOKm) 10 %

Profit before tax

500

900

(NOKm)

19 %

800

400

400

300

300

700

226* 200

200

100

100

228*

278 219

258

661

681

790

717

600 500 400 300

284

200 100

0

0

0 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

* Q215 adjusted for cost related to termination of swaps (115m), actually reported number was 111m * Q315 adjusted for extraordinary rental income in relation to Berner buyout (30m), actually reported number was 258m

14

2nd quarter 2016

Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

Key financials - per share Cash Earnings*

EPRA NAV + Dividends** (NOK per share)

(NOK per share)

28 %

16 %

6,0

100 5,3

5,5 5,0

5,0 4,5

5,5

4,3

4,5

95

80

3,5

75

3,0

70

* Annualised, rolling 4 quarters

15

2nd quarter 2016

89

85

4,0

Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

3

90

90

91

85 81

Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

**Dividends presented in shaded area

Results All figures in NOK millions

Q2-16

Q2-15

YTD Q2-16

YTD Q2-15

2015

Rental income

463

423

916

864

1 760

Repairs & maintenance

-14

-8

-16

-16

-56

Operating costs

-27

-34

-50

-60

-129

Net operating income

421

381

850

787

1 574

Other revenue

54

27

113

192

240

Other costs

-55

-22

-109

-180

-224

Administrative costs

-28

-32

-72

-87

-168

11

32

19

42

44 -625

Share of profit from associates and JVs Net realised financials

-140

-245

-273

-394

Net income

264

140

528

361

840

- of which net income from property management

258

110

536

321

799

Changes in value of investment properties

567

178

749

893

1 818

Changes in value of financial instruments

-41

344

-203

423

417

Profit before tax

790

661

1 074

1 677

3 075

Tax payable

0

0

0

0

0

Change in deferred tax

-187

-155

-250

-223

-354

Profit for period/year

603

506

824

1 454

2 721

16

2nd quarter 2016

Investment property value development 35 000

2 659

34 000

34 023

33 000 32 000 1 459

31 000 30 000 29 000

209

- 90

Investment in portfolio*

Sale of properties

567

31 364

Value changes

Value per 30.06.16

29 218

28 000 27 000 26 000 25 000 Value per 31.03.16

Acqusitions

JV and Associates**

*In addition Entra has invested 142 NOKm through its non-consolidated J/Vs, Sundtkvartalet and Entra OPF (284 NOKm on a 100 % basis) ** Entra´s share of gross market value of JVs and Associates (book value equity = 1 503 million)

17

2nd quarter 2016

Total marketvalue

Balance sheet All figures in NOK millions Book value of property portfolio Investments in associates and JVs Financial derivatives Other assets Cash and bank deposits

30.06.2016

30.06.2015

31.12.2015

31 170

27 939

28 823

1 503

1 170

2 789

640

425

530

1 404

652

1 265

158

72

212

Total assets

34 874

30 259

33 619

Total equity

13 625

12 058

13 354

Interest-bearing debt

15 701

13 396

15 205

Deferred tax liability

3 572

3 178

3 324

Financial derivatives

1 283

941

1 121

Other liabilities Total non-current liabilities

18

2nd quarter 2016

693

685

615

34 874

30 259

33 619

Adapting the financing mix to changing market conditions 2,25

2,25

ENTRA FIXED RATE BOND, 7Y, 2.45% 0,56%

Phase I

2,00

1,18%

1,89%

1,75

Phase II

2,00

1,27%

02.06.2015

1,75

23.05.2016

Interest rate

Credit spread

Phase III

1,50

1,50 1,25

1,25

%

% 1,00

1,00

0,75

0,75

0,50

0,50

0,25

0,25

0,00 jan. 15

0,00 apr. 15

jul. 15

okt. 15

jan. 16

apr. 16

Credit spread 6M

Credit spread 5Y

Credit spread 7Y

NIBOR 3M

SWAP 7Y

BOND ISSUE

CP ISSUE

BANK

jul. 16 SWAP 5Y

Financing activity Q2 2016

Q1 19

Q1 18

Q1 17

30.06.16

Q1 16

• Average interest rate at 3.59 % as of

Q1 15

0.9 bn

Q1-14

• Refinanced commercial paper loans by

Q1-13

• Refinanced bank credit facility of 1.0 bn

Q1-12

5,50% 5,25% 5,00% 4,75% 4,50% 4,25% 4,00% 3,75% 3,50% 3,25% 3,00% 2,75%

Q1-11

• Reduced bank debt by 1.8 bn

Q1-10

Development in average interest rate 2010 – 2019e

• New bond issue of 2.4 bn

Average interest rate Estimated interest rate using swap forward curve • • •

20

2nd quarter 2016

Development in average interest rate 2010-2019(e) as reported per 30.06.16 Changes in average interest rate is caused by expiration of interest rate swaps and start of forward swaps already entered into. Assumptions (2016-2019): • Stable debt level • All debt re-financed at exisiting terms • NIBOR forward curve

Financial update Key debt metrics as of 30.06.16

Composition of interest bearing debt 100% = 15 196 NOKm

Interest bearing nominal debt

15 196mill

Unutilised credit facilities

5 108 mill

Loan-to-value

45.9 %*

Weighted average maturity

4.8 yrs

Average interest rate

3.59 %

Share at fixed rate Average maturity of interest rate hedges

13% 7%

16%

58 % 3.7 yrs

51%

Bank loans subsidiaries

Drawn bank loans

Bonds listed at OSE

Secured Bond 2030

Commercial paper * Pro forma LTV post the Skøyen transaction is 49.8 %

21

2nd quarter 2016

14%

Agenda Highlights in the quarter Operations and market Financial update Closing remarks Q&A

22

2nd quarter 2016

Closing remarks • Significant income and portfolio growth ahead − Recent acquisitions and solid project pipeline fuel growth • Tight and scalable cost base − Continued margin expansion (despite introduction of property tax in Oslo) − Steady growth in dividend yield

Langkaia 1, Oslo

• Improving market sentiment in Oslo − High activity in the letting market and lower vacancies

Sundtkvartalet, Oslo

23

2nd quarter 2016

Agenda Highlights in the quarter Operations and market Financial update Closing remarks Q&A

24

2nd quarter 2016

Next event 3rd quarter results Next event November 1, 2016 2nd quarter results July 14, 2016

For more information see www.entra.no/investor-relations