Nextensa (NEXTA) H1 2024 earnings summary

Executive summary

• Net result group share for H1 2024 was €14.1M, or €1.39 per share, reflecting an 18% decrease year-over-year, mainly due to lower development project contributions and higher financial expenses.

• Like-for-like rental income increased by 5% due to growth at Tour & Taxis and indexation, with total rental income rising to €36.2M in H1 2024 from €35.2M in H1 2023.

• Major asset sales included the forward sale of the Stairs office building in Luxembourg for €107.5M and the sale of Hygge, generating a €1.6M capital gain at a 4.5% yield.

• 71% of shareholders opted for the optional dividend, strengthening equity by €7.5M.

• The company continues to focus on sustainable projects and targeted divestments to reduce debt and enhance portfolio quality.

Financial highlights

• Rental income rose to €36.2M in H1 2024 from €35.2M in H1 2023, up 3% year-over-year.

• Net result group share declined to €14.1M from €17.1M year-over-year.

• Fair value of the investment portfolio decreased to €1.27B from €1.30B at year-end 2023.

• Net asset value per share was €82.66, with a 47% discount to the closing share price.

• Result from development projects dropped to €5.2M from €9.6M year-over-year.

Outlook and guidance

• Residential and divestment programs are on track, with continued focus on resilience amid challenging market conditions.

• Rental income for 2024 expected to remain stable versus 2023, despite asset sales.

• Further targeted divestments planned to support portfolio sustainability and reduce debt.

• First deliveries of Park Lane phase II (Brussels) and D5-D10 apartments (Luxembourg) expected by end-2024.

• Forward sales and new developments, such as Stairs and Montree, are expected to support future results.