Altarea (ALTA) H1 2025 earnings summary

Executive summary

• Performance aligned across all business segments, with FFO up 7.3% year-over-year and 2025 guidance confirmed.

• Retail REIT showed strong operational metrics, with net rents up 3.5% and revenue up 7.5%; residential segment saw new orders rise 16% in volume and 4% in value.

• FFO rose to €62.2m, while net income group share fell to €9.5m, impacted by negative fair value changes.

• Robust financial position with €2.1bn liquidity, LTV at 29.8%, and S&P BBB- rating with negative outlook.

• 72.4% of activities/revenue aligned with EU Taxonomy, highlighting sustainability focus.

Financial highlights

• Revenue fell 20.3% year-over-year to €954.7m, mainly due to lower residential and business property contributions.

• FFO (Group share) increased 7.3% to €62.2m, driven by retail and new-generation residential growth.

• EBITDA for residential dropped 24.1% to €71.3m; retail EBITDA rose 7.5% to €146.7m.

• Net income group share was €9.5m, down from €26.8m in H1 2024.

• NAV (fully diluted): €100.9/share, down 7.7%–8.4% from end-2024.

Outlook and guidance

• 2025 guidance confirmed: slight FFO increase and stable dividend per share expected, barring major external shocks.

• H2 2025 strategy includes leveraging retail portfolio, ramping up new-generation residential, and developing new businesses.

• No major business property transactions planned unless exceptional opportunities arise.

• New Businesses to pursue investments and partnerships in photovoltaics and data centers.

• Residential and Business Property segments expected to accelerate in H2 2025, with a ramp-up in commercial launches and land acquisitions.