Annual report 2025

Notes to the consolidated financial statements for the year ended 31 December 2025.

Selvaag Bolig ASA (the company) and its subsidiaries (together the group) is a housing development group involved in the construction of residential property for sale in the ordinary course of business.

Selvaag Bolig ASA is listed on the Oslo Stock Exchange. The company’s ultimate controlling party is Selvaag AS.

The registered office of the company is Silurveien 2, 0380 Oslo, Norway.

The principal accounting principles are set out below, and have been consistently applied to all accounting periods presented unless otherwise stated.

The group’s consolidated financial statements have been prepared in accordance with the IFRS® Accounting Standards and interpretations issued by the International Accounting Standards Board (IASB), as adopted by the EU.

These consolidated financial statements were authorised for issue by the board of directors on 18 March 2026.

The consolidated financial statements have been prepared on a going concern and historical cost basis, except for derivatives which are recognised at fair value through profit or loss.

The consolidated financial statements are presented in NOK, which also is the parent company’s functional currency.

The consolidated financial statements include the financial statements of the company and entities (including special purpose entities) controlled by the company (its subsidiaries).

A negative comprehensive income in the subsidiaries is attributed to the owners of the parent company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Operating segments are reported in a manner consistent with the internal reporting provided to the CEO and management group (which is the chief operating decision-maker). This group is responsible for allocating resources and assessing the performance of the operating segments.

For the purposes of internal reporting, the group utilises the percentage of completion method for revenues and cost of goods sold, where the degree of completion is estimated on the basis of expenses incurred relative to total estimated cost multiplied by the sales rate. Operating profit (loss) under the percentage of completion method also includes an estimated profit element. The segment results are reconciled to the operating results for the group in the note.

An associate is an entity over which the group has significant influence, and which is neither a subsidiary nor a joint venture. These are typically investments in housing projects in cooperation with partners or landowners where the part each own 50 per cent of the company. In such arrangements, the assessment of joint control is performed in accordance with IFRS 11.

Associates are incorporated in these financial statements using the equity method of accounting.

When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Indicators of a possible impairment could be a fall in land plot prices or housing prices. If there is a loan to an associated company, and the loan is considered to be part of the net investment, any accumulated negative share of the results which exceed the acquisition cost is recognised as a reduction of the carrying amount of the receivable.

Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the group.

Share of income (loss) from associated companies is included in operating profit (loss) since the investments are considered to be an integral part of the group’s operations.

The group does not have any interests in joint arrangements classified as joint operations.

The group reports its interests in joint ventures using the equity method, as described in note 2.6 “Investments in associates” above, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. See note 2.10 below.

Share of income (loss) from joint ventures is included in operating profit (loss), since this is considered integral to the group’s operations.

Where property is acquired through the acquisition of entities, management considers the substance of the assets and activities acquired. When acquiring a group of assets or net assets which do not constitute a business, the cost price is allocated between the individual identifiable assets and liabilities acquired on the basis of their relative fair values at the acquisition date.

Business combinations are accounted for using the acquisition method. For each business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are expensed.

Goodwill
Goodwill arising on an acquisition of a business is recognised at the date of acquisition of the business (see note 2.8 above). Goodwill is not amortised but is tested for impairment annually. For the purposes of impairment testing, goodwill is allocated to each of the group's cash-generating units (or collections of cash-generating units) expected to benefit from synergies of the business combination.

The group’s main activity is to develop residential properties, and revenue is derived primarily from the sale of residential properties. Properties are usually sold to private customers, but there are some professional customers as well.

The group also has some lease revenue and revenue from other services.

Revenue from the sale of residential property (including any sale of projects under development and undeveloped land) is recognised when the control is transferred to the customer. Control is considered transferred at the time of delivery of the property to the customer.

Customer contracts related to sale of residential properties are in accordance with the Norwegian Standard, and will normally include a condition that a minimum percentage of sales in the project is reached. Before commencing the construction phase of a project, the general rule is that the group requires 60 per cent of a project to be sold.

According to Norwegian regulations, the customer is entitled to withdraw from the contract until the property is transferred to them. In such a case, however, the customer is responsible for covering any loss incurred by the group as consequence of their withdrawal. This includes covering the price difference if a lower price is achieved, plus transaction costs.

The customer normally pays NOK 100 000 when signing the contract. This prepayment is paid into an escrow account held by the estate agent. The group does not have a right to the advance payment until it provides financial security in accordance with the Residential Construction Act. Once such security is provided, the advance payment is released from the escrow account and recognised as received cash and other short-term debt (advance payment).

The remaining part of the selling price is paid into the escrow account prior to delivery. The amount is not released from the escrow account until security is provided or all formalities related to the transfer of the property to the customer are finalised. In the period between physical transfer of the property and finalising the formalities by the estate agent, the consideration (reduced by advance payments) is recognised as a trade receivable. Once the right of ownership has been publicly notarised, the remaining consideration is released from the escrow account.

The company identifies one performance obligation in the sale of residential units: the delivery of a completed home to the customer. The transaction price consists of the fixed purchase price agreed in the contract. Variable consideration is limited and primarily relates to potential cancellations in accordance with the Residential Construction Act. The company assesses variable consideration in accordance with IFRS 15 and recognises only amounts for which it is highly probable that a significant reversal will not occur.

Rental income from leasing property (operating leases in which the group is a lessor) is recognised on a straight-line basis over the term of the relevant lease and included in other revenues.

Control over services is considered to be transferred to the customer as the service is delivered. Revenue from sale of services is recognised when the service is performed. Estate agent services directly associated with the sale of property are included in sales revenue. Other services are included in other revenue.

The Group holds land and buildings intended for sale in the ordinary course of business, or that are under construction or development for such sale. Inventory therefore comprises land, property held for resale, property under development and completed units that remain unsold. Inventory is measured at the lower of cost and net realisable value.

The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present condition. The cost of conversion includes costs directly related to the construction of the property (such as amounts paid to subcontractors for construction), and an allocation of fixed and variable overheads incurred during development and construction. Borrowing costs directly attributable to the acquisition, construction or production of property are added to the cost of those assets until the assets are substantially ready for their intended use or sale. That usually occurs when the project is completed and ready for delivery to the customers.

Capitalisation of borrowing costs commences when the plot acquires planning permission. Capitalisation of other directly attributable costs commences when it is probable that the project will be realised. Other costs are included in the cost of inventories only to the extent that they are directly attributable to bringing the inventories to their present location and condition, including planning and design costs, for example. The option premiums in land plot option contracts with Urban Property are recognised as other fixed assets as they are incurred from the time when it is probable that the project will be realised. The option premiums are reclassified as inventory when the option is exercised, and the underlying land plot is acquired.

Net realisable value is the estimated selling price in the ordinary course of business, based on market prices at the reporting date and discounted for the time value of money (if material), less the estimated costs of completion and the estimated selling expenses.

When properties are sold, the carrying amount is recognised as a project expense in the income statement in the same period as the related revenue.

The group has entered into agreements to purchase land in the future (forward contracts and purchase options) for use in the ordinary course of business. The land is recognised on the balance sheet only when the cost is incurred or control has been transferred from the seller. For more information regarding the land portfolio included in the collaboration with Urban Property, see note 26. If a contract to purchase land in the future is a loss contract, a provision is made for the estimated loss.

The company has also entered into agreements for future acquisition of land plots in Sweden through land allocation (“markanvisningar”). These agreements grant the right to acquire land plots at a later stage, but binding purchasing contracts are entered into first when planning permission is issued and any other potential requirements are fulfilled. The land plots are first recognised on the balance sheet upon transfer of title, and when control has been transferred from the seller.

Property, plant and equipment are recognised at acquisition cost less accumulated depreciation and impairment losses. Depreciation is calculated on a straight-line basis, generally over three to 10 years.

Any gain or loss arising on the disposal or retirement of an asset is recognised in the income statement as “Other gain/(loss) net”.

Trade receivables are amounts due from customers in the group’s ordinary housing development business and related services. Where the trade receivables do not include a significant financing component, they are recognised initially at the amount of the consideration. Impairment is recognised if there is evidence that the estimated future cash flow has been impacted. The risk of impairment is low owing to the practice of requiring advance payments into escrow accounts.

Loans and other receivables are held in the group’s normal business model where the objective is to collect payment and interest when due, and measured at amortised cost using the effective interest method, less any impairment. The receivables are classified as current unless they are due more than 12 months from the balance sheet date.

Financial liabilities are initially recognised at fair value and subsequently measured at amortised cost. Unpaid option premiums are included in the basis for calculating future option premiums and therefore result in higher option premiums. Nevertheless, the company has chosen to classify and present these as non-interest-bearing liabilities for internal classification purposes.

Borrowings are recognised initially at the received amount, net of transaction expenditures incurred, and subsequently measured at amortised cost.

Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest-method. If the interest element is insignificant, trade payables are carried at the original invoice amount.

The cash flow statement is prepared using the indirect method. Interest payments related to construction loans are classified as cash flows from financing activities. Interest received and interest paid related to operating activities are classified as cash flows from operating activities.

Repurchase of the company's own equity instruments is recognised and deducted directly in equity.

Income tax expense represents current tax expense and changes in deferred tax expense.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the consolidated statement of comprehensive income because of items of income or expense which are taxable or deductible in other years and items which are never taxable or deductible.

When property is acquired through incorporated companies, deferred tax is not recognised.

Deferred tax is recognised for temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the group is able to control the reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future. The group recognises deferred tax for associated companies and jointly controlled entities subject to partnership taxation.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered in the foreseeable future.

The company assesses uncertain tax positions in accordance with IFRIC 23 Uncertainty over Income Tax Treatments. Where it is not probable that the tax authorities will accept the company’s tax treatment, the liability is measured using either the most likely amount or the expected value, depending on which method better reflects the uncertainty.

Provisions in the group are mainly linked to the construction of parking spaces, see note 20. Provisions for expected warranty work are recognised as an expense and as a provision for liabilities. The provision is presented under “Other current liabilities”, and changes in the provision are recognised as an expense.

In accordance with IFRS 16 Leases, leases are recognised as a right-of-use asset and a lease obligation from the time the right-of-use assets is available for use by the lessee (the commencement date).

Right-of-use assets are measured at acquisition cost, which comprises the amount of the initial measurement of the lease liability, adjusted for any lease payments made before the commencement date, less any lease incentives received and any costs necessary to restore the asset to the condition required by the lease.

Liabilities arising from a lease are initially measured on a present value basis using the interest rate implicit in the lease. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used.

When adjustments to lease payments based on an index or interest rate take effect, or the management makes changes in the evaluation of options to extend or terminate the lease, the lease liability is reassessed and recognised as an adjustment to the right-of-use asset.

Lease payments relating to short-term leases or leases of low-value assets are recognised as an expense on a straight-line basis over the lease term. The right-of-use asset is depreciated on a straight-line basis over the shorter of the lease term and the useful life of the asset. Interest expense on the lease liability is recognised over the lease term.

Cash payments relating to interest on lease liabilities are presented as operating cash flows, while repayments of lease liabilities are presented as financing cash flows in the statement of cash flows.

The company applies judgement in determining lease terms, assessing extension and termination options, and determining the appropriate discount rate.

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

Obligations related to early retirement pensions (AFP) are part of a multi-employer defined benefit plan. However, the company’s share of the liability cannot be reliably measured, and the plan is therefore accounted for as if it were a defined contribution plan.

The company has a share savings programme for employees who work in a greater than 50 per cent position where the employees can buy shares with a discount of 20 per cent. This is subject to a sales restriction of two years. The company also has a share purchase programme for its management, where senior management can buy shares at a 30 per cent discount. This is subject to a sales restriction of three years. Discounts related to these programmes are expensed as salary costs.

Changes in accounting principles and information about new standards

The group has not implemented new standards, changes to standards or interpretations with a significant impact for the group in 2025.

As at 18 March 2026, the following standard had been issued but had not yet become effective and may affect the group’s consolidated financial statements:

IFRS 18 Presentation and Disclosure in Financial Statements (effective for accounting periods beginning on or after 1 January 2027).

In April 2025, the International Accounting Standards Board issued IASB® IFRS 18, which replaces IAS 1 Presentation of Financial Statements. The new standard is effective for accounting periods beginning on or after 1 January 2027, although earlier application is permitted. IFRS 18 introduces a defined structure for the statement of profit or loss, with new totals and subtotals. All income and expenses are classified into one of the following categories: operating activities, investing activities, financing activities, income tax and discontinued operations. The first three categories are new. IFRS 18 also requires disclosures of new management-defined performance measures. In addition, IFRS 18 introduces limited amendments to IAS 7 Statement of Cash Flows.

The company has reviewed the requirements of IFRS 18. Preliminary analyses indicate that implementation will result in changes to the grouping of income and expenses in the statement of profit or loss, including separate categories for operating, investing and financing items. An assessment is ongoing of how the new requirements will affect the company’s internal reporting structure and segment presentation. The final impact will depend on the full implementation and endorsement of the standard by the EU.

Management expects that IFRS 18 will be adopted from the stated effective date, subject to approval by the EU.

There are no other standards, interpretations or amendments effective from 1 January 2025 or later that are expected to have a material impact on the group’s financial statements.

The preparation of financial statements in accordance with the IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group's accounting policies.

The following are the key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Real estate development projects are classified as inventory in accordance with IAS 2. Inventories comprise undeveloped land, work in progress and finished units, and are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. In determining the net realisable value, management assesses important factors relevant for the valuation, including macroeconomic factors such as expected housing prices and rental levels as well as expected yields, approvals from the authorities, construction costs and project progression. When considered appropriate, management uses reports from external valuation experts to estimate property values or to corroborate the company’s own estimates. Changes in circumstances and in management’s assessments and assumptions will result in changes in the estimated net realisable value. See also Note 5 .

Selvaag Bolig (SBO) has a collaborative agreement with Urban Property (UP), see note 26. The agreement means that SBO has options to purchase land plots from UP to pre-determined prices. The accrued option premium is recorded on the SBO balance sheet and classified as other fixed assets until the option is exercised. When the option is exercised, the option premium is reclassified as inventory and a part of the acquisition cost of the land plot.

Management has determined the operating segments based on reports reviewed by the CEO and management group, and which are used to make strategic decisions. The figures below were reported to the CEO and the management group at the end of the reporting period. The main segment is defined as property development ("Boligutvikling"). The income in the other segment comes mainly from services and project management, see also Note 25 . The costs in the other segment mainly relate to salary costs for administration and management which cannot be directly attributed to the projects and thus are not allocated to the housing development segment, see also Note 6 .

The group utilises the percentage of completion method in its internal reporting, where the degree of completion is estimated on the basis of expenses incurred relative to total estimated costs and the sales rate. Operating revenues under the percentage of completion method also include an estimated profit element for sold units. The consolidated income statement is based on the completed contract method, in which revenue is recognised at the time of transfer of risk and control, being the point of delivery of the property. A reconciliation of this effect (from percentage of completion to completed contract) can be found in the segment reporting under "Reconciliation EBITDA to operating profit (loss)". In addition, the operating profit from IFRS contains items from IFRS 16 Leases, which are not included in the segment reporting. Effects are specified in the table below.

Group management considers segment results based on the percentage of completion method for determining EBITDA. The measurement method is defined as operating profit (loss) before “Depreciation and amortisation”, “Other gain (loss), net”, and “Share of income (losses) from associated companies”. Financial income and expenses are not allocated to operating segments since this type of activity is managed by a central finance function focused on managing the group’s liquidity.

Capitalisation rates utilised to determine the amount of borrowing costs eligible for capitalisation were between 5.9 per cent and 8.1 per cent during 2024. Corresponding rates were between 6.3 per cent and 8.5 per cent during 2024.

Land loans are normally converted to construction loans in line with the progress of the respective construction projects. They are capitalised against the site from the day the project secures planning permission and recognised in profit and loss as part of the cost of sales when the units are delivered. Interest charges of NOK 17.6 million related to land loans were capitalised in 2025, compared with NOK 22.1 million in 2024. Interest charges on construction loans are capitalised during the construction period and recognised under cost of sales in the same way. Capitalised interest on construction loans is included in additions to capitalised project expenses in the table above. Interest charges of NOK 147.9 million related to construction loans were capitalised in 2025, compared with NOK 71.1 million in 2024.

Other operating expenses include expenses related to operation of the group headquarters, in addition to NOK 4.5 million (2024: NOK 1.6 million) in services purchased from Selvaag AS and group companies. See also Note 23 on related-party transactions for further specification.

The Group's trade receivables and other receivables are in NOK.

Losses on receivables have historically been minimal. There were no new provisions for losses on receivables in 2025 as the expected credit loss is insignificant.

Earnings per share are calculated by dividing the profit (loss) for the period with the weighted average number of shares in issue. There were no diluting effects related to the share capital in 2025 and 2024.

The company has established a policy of paying dividends twice a year from 2015. The board has proposed a dividend of NOK 1.00 per share for 2025, corresponding to NOK 93.8 million. This equals 70 per cent of net income. In 2024, an ordinary dividend of NOK 117.2 million was paid, corresponding to NOK 1.25 per share. That was equal to 66 per cent of net income. The dividend for 2025 is subject to approval by the AGM on 30 April 2026 and is not reflected in the financial statements for 2025. See the table below for specification of the amounts.

Dividend paid is calculated on the basis of the total number of shares, which amounts to 93 765 688. To find the net amount paid, the dividend related to treasury shares owned by Selvaag Bolig ASA at the time of approval is deducted.

The ordinary dividend paid in 2025 was NOK 117.2 million. This consisted of NOK 117.2 million for the second half of 2024. No dividend was paid for the first half of 2025.

The ordinary dividend paid in 2024 was NOK 93.6 million. This consisted of NOK 93.6 million for the second half of 2023. No dividend was paid for the first half of 2024.

The group’s interest-bearing debt falls primarily into four categories: 1) liabilities in parent company Selvaag Bolig ASA (top-up loans), 2) land loans, 3) repurchase agreements and seller credits with Urban Property and 4) construction loans.

At 31 December, the group had no top-up loans, land loans were NOK 33 million, repurchase agreements and seller credits with Urban Property totalled NOK 730 million and construction loans were NOK 2 273 million.

Interest rates are based on three-month Nibor plus a margin. At 31 December 2025, the average interest rate was 8.0 per cent for the land loans and 6.2 per cent for the construction loans. The differences between the disclosed nominal interest rates and effective interest rates are deemed to be insignificant. The duration of construction loans and seller credits to Urban Property follow the completion rate and delivery of housing units, so final redemption occurs when the project is completed.

Interest rates are based on three-month Nibor plus a margin. At 31 December 2024, the average interest rate was 8.4 per cent for the land loans and 6.7 per cent for the construction loans. The differences between the disclosed nominal interest rates and effective interest rates are deemed to be insignificant. The duration of construction loans and seller credits to Urban Property follow the completion rate and delivery of housing units, so final redemption occurs when the project is completed.

Obligations related to the construction of parking areas amount to NOK 62 million and are linked to previously completed projects, which included an obligation to provide a specific number of parking spaces. These obligations are currently being met through temporary parking areas. Future development of the areas will determine when the temporary car parking areas are to be removed, and construction of permanent car parking facilities must commence. The obligations accordingly fall due when the projects are realised. The car parking obligations are expected to fall due some years into the future.

The group is subject to the following contingent liabilities as a result of ownership interests in subsidiaries and associated companies:

Parent company guarantees of NOK 822.1 million had been given in 2025 and NOK 567.4 million in 2024. These related to guarantees issued by Selvaag Bolig ASA as additional guarantees for seller credits related to land purchases from Urban Property, a land plot purchase in Sweden and land loans. The group fulfils legal requirements pursuant to sections 12 and 47 of the Housing Construction Act through purchased guarantees. In addition, it provides guarantees to contractors. The obligations related to these guarantees are not recognised on the balance sheet.

Pursuant to the Residential Construction Act, Selvaag Bolig ASA provides a five-year guarantee following delivery of completed homes. As the company primarily enters into turnkey contracts, this guarantee obligation is in practice covered by the contractors and, ultimately, by the contractors’ insurers. Historically, Selvaag Bolig has only carried out a very limited amount of guarantee work itself. As a result, no guarantee provision has been recognised on the balance sheet. In any event, such a provision would have been offset by a corresponding receivable from the executing contractor.

Receivables, liabilities and transactions between Selvaag Bolig ASA and its subsidiaries, which are related parties to the company, have been eliminated on consolidation and are not disclosed in this note. Selvaag AS owns 53.5 per cent of the shares in Selvaag Bolig. Purchases and sales of services involving Selvaag AS and its related parties are based on market terms. These relate mainly to rent, payroll services, use of the brand and the acquisition of land from Urban Property (UP). Details of significant transactions between the group and other related parties are disclosed below.