Eurocommercial Properties (ECMPA) H2 2025 earnings summary

Executive summary

• Announced acquisition of Avion Shopping in Umeå, Sweden for €110 million, expanding the Nordic portfolio with a modern, dominant regional center anchored by IKEA and 80 shops and restaurants; expected to close by March 2026, increasing Swedish exposure to 23% of the portfolio.

• Asset rotation strategy included disposal of non-core assets such as EKO megastore, optimizing portfolio quality and redeploying capital into higher-growth, multi-anchor retail.

• Achieved strong operational and financial performance in 2025, with like-for-like rental growth of 3.4%, retail sales up 3.4%, and reduced vacancy to 1%.

• ESG achievements include 40% reduction in Scope 1 & 2 emissions, 93% renewable energy in landlord areas, and nearly €1 billion in green and sustainability-linked financing.

• Portfolio value increased by 2% year-over-year, with continued focus on ESG initiatives and accretive acquisitions.

Financial highlights

• Property investments increased by 3.8%, with portfolio valuation exceeding €4 billion.

• Net loan-to-value (LTV) improved to 39.8%, down 1.5% year-over-year.

• EPRA NTA per share rose 2.4% to €42.81; direct investment result reached €131.8 million.

• Dividend increased to €1.83 per share (75% payout ratio).

• No increase in interest expenses despite refinancing nearly €1 billion of debt; average cost of debt stable at 3.2%.

Outlook and guidance

• Guidance for 2026 direct investment result per share set at €2.45–2.50, reflecting cautious assumptions and partial contribution from Avion acquisition, assuming stable macroeconomic and geopolitical conditions.

• Indexation for 2026 expected to be modest: 0% France, 1.1% Italy, 0.9% Sweden, 1.5–2% Belgium.

• Guidance includes scenario analysis for Avion acquisition and potential macroeconomic headwinds.

• Rental growth in 2026 to be driven by active asset management, remerchandising, and new acquisitions.