Cofinimmo (COFB) Q2 2024 earnings summary

Executive summary

• Healthcare real estate now comprises 75% of the €6.2 billion portfolio, with a significant shift from offices and distribution networks since 2018 and classification in the EPRA healthcare sector.

• Net result from core activities (EPRA Earnings) reached €119 million, up 4% year-over-year; net result group share was €42 million, up 55% year-over-year.

• High occupancy rate of 98.6% and long average lease term of 13 years, with healthcare segment outperforming market averages.

• Recognized among Europe's and the world's most sustainable companies, with multiple ESG awards, certifications, and inclusion in major indices.

• H1 2024 results support confirmation of 2024 EPRA Earnings outlook at €6.40/share and gross dividend at €6.20/share.

Financial highlights

• Gross rental revenue grew 3% year-over-year, with a like-for-like increase of 2.1% driven by lease indexation and new leases.

• Net result from core activities per share was €3.21, exceeding budget, despite dilution from divestments and share issuances.

• IFRS net result was €42 million (€1.14 per share), down 55% year-over-year due to property value changes.

• Portfolio fair value at €6.17 billion as of 30.06.2024, with a fair value change of -1.4% in H1 2024.

• Operating margin at 83.2% in H1 2024.

Outlook and guidance

• 2024 EPRA Earnings outlook confirmed at €6.40/share; gross dividend guidance at €6.20/share.

• Targeted divestments for 2024 reaffirmed at €270 million, with most expected in H2.

• Gross investment estimate for 2024 revised down to €250 million, mainly in healthcare developments.

• Debt-to-asset ratio expected to return to ~44% by year-end, with average cost of debt around 1.4%-1.5%.