In This Article:
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Retail Property Portfolio: EUR3.9 billion, comprising 24 shopping centers.
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Like-for-Like Rental Growth: 3.5%, above the 10-year average of 2.8%.
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Net Property Income Uplift: 5.9% increase.
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Average Rental Uplift on Renewals and Relettings: 4.5% on 275 transactions.
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EPRA Vacancy Rate: Reduced to 1.4% by the end of December 2024.
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Occupancy Cost Ratio: 9.8% as of December 2024.
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Retail Sales Increase: 2.7% compared to 2023.
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Net Property Income: EUR197 million, a 5.9% increase.
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Loan-to-Value Ratio: Decreased to 41.3% from 42.5%.
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EPRA NTA per Share: Increased by 5.6% to EUR41.7.
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Dividend Proposal: EUR1.80 per share, a 5.9% increase from the previous year.
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Direct Investment Result: EUR127.9 million for 2024.
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EBITDA: EUR190 million, a 5% increase from the previous year.
Release Date: March 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Eurocommercial Properties NV (FRA:N4SA) achieved a like-for-like rental growth of 3.5% in 2024, surpassing their 10-year average of 2.8%.
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The company reported a 5.9% increase in net property income, driven by strong operational performance and cost savings.
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The remerchandising projects at Carosello in Italy and Woluwe in Belgium resulted in significant increases in turnover and footfall.
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The company maintained a low EPRA vacancy rate of 1.4% by the end of December 2024, indicating high occupancy levels.
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Eurocommercial Properties NV (FRA:N4SA) successfully executed a share buyback program to avoid dilution from stock dividends, purchasing 640,000 shares.
Negative Points
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The company's loan-to-value ratio, although improved, remains at 41.3%, indicating a significant level of debt.
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Interest coverage ratio decreased from 3.7% to 3.5% due to a EUR5 million increase in interest expenses.
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The company faces potential challenges from geopolitical tensions and macroeconomic uncertainties impacting future performance.
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In France, rental renewals showed a slight decrease, indicating potential challenges in the leasing market.
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Investment expenses doubled in 2024 due to aborted acquisition costs and other factors, impacting financial results.
Q & A Highlights
Q: Can you discuss Eurocommercial's capital allocation plans for the next two years, including CapEx, share buybacks, and potential disposals or acquisitions? A: Evert van Garderen, CEO, explained that capital allocation will focus on remerchandising projects in Italy and Sweden. The company is considering another share buyback to neutralize stock dividend dilution, depending on market conditions. They are open to disposals, particularly of non-core assets, to reinvest in core shopping centers.