Fonciere Inea (INEA) H1 2024 earnings summary

Executive summary

• INEA demonstrated operational resilience in H1 2024 despite a challenging economic and political environment, with inflation, rising interest rates, and a subdued investment market.

• No new investments or asset disposals occurred, but three new buildings were delivered, and a sale promise was signed for a Marseille office asset.

• The company created two subsidiaries, SERENEA and SERENYFLEX, to expand renewable energy production on its real estate portfolio.

• Intense leasing activity resulted in 48 leases signed, though leased area declined due to smaller average lease size.

• The portfolio's value showed limited decline (-1.1% over six months), confirming its resilience.

Financial highlights

• Gross rental income rose 17% year-over-year to €38.1m; EBITDA increased 20%.

• Net recurring income grew 6% to €13.4m; recurring EPS up 6% to €1.24.

• Net result was a loss of €5.8m, mainly due to a €18.3m negative fair value adjustment on properties.

• Net asset value (EPRA NDV) per share fell 5.4% to €52.5 over six months; share price dropped 25% to €28.40.

• Dividend of €2.70 per share paid, yielding 7.1% on 2023 year-end price.

Outlook and guidance

• Fundamentals remain strong, supporting continued operational performance and portfolio resilience.

• Seven projects under construction, with three new assets to be delivered in H2 2024, expected to drive rental income growth.

• Potential positive impact from anticipated central bank rate cuts.