Montea (MONT) Q4 2024 earnings summary

Executive summary

• 2024 marked a record year with portfolio growth nearing €513 million, bringing total value to €2.8 billion, the launch of the Track27 program, and the first investment-grade rating (BBB+ by Fitch).

• EPRA result reached €99.3 million, up 10% year-over-year, with recurring activities contributing €95.6 million (+17% y/y), and net result was €171.5 million, including €85.4 million positive portfolio revaluation.

• EPS from recurring activities was €4.55 per share, with a total EPS of €4.73 per share after a one-off from FBI recognition.

• Dividend from recurring activities increased 7% to €3.60 per share, with a proposed total dividend of €3.74 per share for 2024.

• Track27 growth plan targets €3.5 billion portfolio value and €5.60 EPRA EPS by 2027.

Financial highlights

• Net rental income rose 8% to €115.1 million, driven by acquisitions, developments, and like-for-like rental growth of 3.4%.

• Operating margin remained stable at 88.5%; financial expenses reduced by 29%.

• EPRA NTA increased 4.4% to €77.63 per share.

• Net debt/EBITDA at 6.9x, EPRA LTV at 34.8%, and interest cover ratio at 4.5x.

• Cost of debt stable at 2.3%; liquidity at €204 million.

Outlook and guidance

• 2025 EPRA result guidance of €4.90 per share, targeting 8% year-over-year growth (excluding potential one-off from FBI recognition).

• Dividend target for 2025 is €3.90 per share, also 8% growth.

• EPS target for 2027 is €5.60 per share, with average annual EPS growth of 6% under Track27.

• Operating margin expected to reach 90% by 2027; cost of debt not to exceed 2.5%.

• Investment capacity of over €600 million available for growth.