Montea (MONT) Q2 2024 earnings summary

Executive summary

• Achieved 4% like-for-like rental growth and maintained 100% occupancy for the sixth consecutive quarter.

• EPRA earnings from recurring activities rose 16% year-over-year to €44.9 million, with EPRA EPS at €2.22, up 4% despite a 12% increase in shares outstanding.

• Net result reached €95.6 million, including €43.7 million positive property revaluation.

• Portfolio value increased by 9% over six months to €2.5 billion, with a strong focus on core Western European logistics corridors.

• Fitch assigned a first-time BBB+ rating with a stable outlook, reflecting strong portfolio quality and financial discipline.

Financial highlights

• Net rental income increased by 6% year-over-year to €55.0 million; total property result up 6% to €59.3 million.

• Operating margin remained high at 87.4% (vs. 88.1% prior year); EPRA cost ratio (incl. vacancy) at 13.3%.

• EPRA NTA grew 7% year-over-year to €75.2 per share, mainly from project development margins.

• Net result per share was €4.73, up from €2.87 in H1 2023.

• Total income from solar panels grew 7% despite lower electricity prices.

Outlook and guidance

• 2024 EPRA EPS guidance at €4.55 (excluding potential €0.18 one-off), DPS at €3.60 per share; 2025 guidance at €4.75 per share.

• Annual investment target remains €200 million, with €260 million planned for 2024; 60% already invested by mid-year.

• Occupancy expected to remain above 98%; cost of debt capped at 2.5%, with operational margin rising to 90% by 2027.

• Total return projected above 10% per year on average for 2024–2025, driven by development margins.

• Potential additional positive impact on EPRA earnings if Dutch FBI status is granted for 2023/2024.