DEFAMA Deutsche Fachmarkt (DEF) Q2 2025 earnings summary

Executive summary

• Focus on acquiring established retail and shopping centers with strong anchor tenants and low vacancy or investment needs, mainly in small to mid-sized cities.

• Buy-and-hold strategy aims for sustainable double-digit equity returns.

• Portfolio expanded to 91 properties as of June 30, 2025, with 13 acquisitions and several new tenant agreements.

• Significant operational focus on property takeovers, renovations, and long-term lease signings.

Financial highlights

• Funds From Operations (FFO) for H1 2025 at €5.5M, up 8% year-over-year.

• Revenue for H1 2025 increased 16% to €15.2M compared to H1 2024.

• Net income for H1 2025 at €1.8M, down 38% year-over-year, impacted by a prior-year one-off gain.

• Portfolio value rose 23% to €344M as of June 30, 2025.

• EPS for H1 2025 at €0.62.

Outlook and guidance

• 2025 targets: FFO > €11M, net income (HGB) > €5M, dividend > €0.60 per share.

• Long-term plan for 2030: portfolio value €500M, annualized rental income €42M, FFO €19M or >€4.00 per share.

• Management confirms 2025 targets and expects further property acquisitions and asset sales in H2 2025.

• Ongoing renovations and new leases anticipated to drive future rental income growth.

• Inflation-linked leases and long average debt maturities support resilience in a volatile market.