In This Article:
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Net Result from Core Activities: EUR244 million, higher than the outlook.
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Gross Rental Revenue: Up nearly 2% on a like-for-like basis.
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Cost of Debt: Stable at 1.4%.
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Debt to Asset Ratio: 42.6%.
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Healthcare Real Estate Portfolio: 77% of the EUR6 billion portfolio.
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Occupancy Rate: Very high at 98.5%.
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Gross Yield: Slightly expanded at 5.9%, net yield at 5.6%.
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EPRA Earnings Per Share (EPS): EUR6.50 per share.
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IFRS Net Result: EUR64 million or EUR1.7 per share.
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Fair Value of Healthcare Portfolio: EUR4.6 billion.
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Office Segment Fair Value: EUR829 million.
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Total Assets: Approximately EUR6.4 billion.
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Dividend Proposal for 2024: EUR6.20 per share.
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Investment Budget for 2025: EUR170 million.
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Target Divestment for 2025: EUR100 million.
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Projected Net Investment for 2025: EUR70 million.
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2025 EPS Target: EUR6.20 per share.
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Projected 2025 Dividend: EUR5.20 per share.
Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cofinimmo SA/NV (WBO:COFB) achieved a net result from core activities higher than the outlook at EUR244 million.
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The company maintained a high occupancy rate of 98.5% across its property portfolio.
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Healthcare real estate now constitutes 77% of Cofinimmo's EUR6 billion portfolio, reflecting strategic growth in this sector.
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Cofinimmo's cost of debt remains stable at 1.4%, one of the lowest levels for REITs in Europe.
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The company is recognized as one of the most sustainable companies in Europe by the Financial Times and Time Magazine.
Negative Points
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The office segment has been reduced significantly, now representing only 15% of the portfolio, which may limit diversification.
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The fair value of investment properties decreased by 1.9% in 2024, reflecting market challenges.
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The company anticipates a slight increase in the cost of debt to 1.5% in 2025, with a gradual rise expected to 2.2% by 2028.
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Cofinimmo's dividend for 2025 is projected to decrease to EUR5.20 per share, reflecting a payout ratio of 84%.
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The company faces challenges in the office market, with a muted environment in Belgium affecting divestment strategies.
Q & A Highlights
Q: Your operating margin improved significantly during the year. Is this sustainable, or was it a one-off in 2024? A: Jean-Pierre Hanin, CEO: We maintain tight control over costs and company management. While inflation indexation is present, we compensate through other measures to sustain this margin.
Q: Regarding investments, are you seeing more opportunities in acquisitions or developments? A: Jean-Pierre Hanin, CEO: It varies by geography. In some areas, development is limited due to high construction costs, while in others, healthcare operators are considering growth. Our guidance considers both acquisitions and developments.