In This Article:
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Like-for-Like Net Rents Increase: 5.2% increase.
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Earnings Per Share (EPS): EUR 2.09.
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Dividend: Increased to EUR 1.57.
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Portfolio Value Decline: 2.7% overall decline.
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Asset Disposals: EUR 729 million since 2017.
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Vacancy Rate: 5.1%, would be 4.5% excluding recent acquisition.
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EPRA Earnings Per Share: EUR 2.09.
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Operating Costs: Lower than in 2023.
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Financing Costs: Higher than in 2023.
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Corporate Income Tax Rate: Below 4%.
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Net-Debt-to-EBITDA: Improved due to higher EBITDA and lower debt.
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Loan-to-Value: Well within external hurdle of 60%.
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Interest Coverage Ratio: Affected by higher average variable rates.
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Cost of Debt: Lower at end of 2024.
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EPS Guidance for 2025: EUR 2.05 to EUR 2.15.
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Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NSI NV (FRA:N4RN) reported a strong 5.2% increase in like-for-like net rents, driving earnings to EUR2.09.
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The company increased its dividend to EUR1.57, maintaining its commitment to pay out at least 75% of EPS.
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NSI NV's portfolio is heavily concentrated in Amsterdam, which constitutes about 55% of its assets, indicating a strategic focus on high-demand areas.
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The company successfully executed asset rotation, selling over EUR700 million in assets since 2017, and made its first acquisition in three years with the Sypesteyn building in Utrecht.
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NSI NV remains a leader in sustainability, with 44% of its assets rated as 'excellent' in energy performance, significantly above the Dutch market average.
Negative Points
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NSI NV experienced a small decline in overall asset values by 2.7% in 2024.
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Financing costs increased due to higher variable interest rates and lower income from swaps.
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The company anticipates higher financing costs upon refinancing due to rising interest rates.
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NSI NV's guidance for 2025 suggests stable earnings, with potential negative impacts from asset disposals not fully offset by new acquisitions.
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The company faces challenges in expanding without raising equity due to its current size and balance sheet constraints.
Q & A Highlights
Q: What are the assumptions behind the EUR2.15 EPS guidance for 2025? A: Bernd Stahli, CEO, explained that the guidance assumes a certain level of tenant retention, typically between 60% and 85%. The assumption includes some tenants leaving, but if they are immediately replaced or if existing tenants extend their leases, it could positively impact EPS.