Nextensa (NEXTA) H1 2025 earnings summary

Executive summary

• Net profit rose 41% year-over-year to €19.9M, driven by development activities, lower financing costs, and portfolio optimization, confirming the strategic direction despite market challenges.

• Major transactions included the €165.75M sale of Knauf shopping centres, acquisition of BEL Towers, and full pre-leasing of Lake Side to Proximus, highlighting significant portfolio activity.

• Strategic focus on sustainable, mixed-use urban developments reinforced by new projects and successful leasing.

• Major mixed-use redevelopment projects in Brussels and Luxembourg are advancing, supporting future growth.

Financial highlights

• Net result increased to €19.9M from €14.1M year-over-year; rental income declined to €29.1M from €36.2M due to asset sales.

• Development contribution rose to €7.7M from €5.2M; net financial debt reduced to €707M from €763M.

• Financial debt ratio improved to 43.41% from 45.39%; average funding cost decreased to 2.71% from 2.86%.

• NAV per share at €81.81, with a 48% discount to the closing share price of €42.90 at end June 2025.

• Like-for-like rental growth of 5.45% offset by €7.2M rental income loss from building sales.

Outlook and guidance

• Recent transactions and ongoing development pipeline set the stage for future growth, with strong pre-letting in offices and residential sales.

• Focus on completing Park Lane Phase II, launching Lake Side residential units, and starting BEL Towers reconversion in 2026.

• Cloche d'Or office developments on track, with Stairs and Eosys projects progressing and strong pre-leasing.

• Extended loan maturities and 99% hedge ratio provide stability against interest rate risk.