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European Residential Real Estate Investment Trust (ERE-UN) investor relations material
European Residential Real Estate Investment Trust Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Completed €115M in property sales, repaid €83M in debt, and expect €366M in additional dispositions to close in Q3 2025, with proceeds intended for a special distribution of ~€0.90 per unit in September 2025.
Initiated a sale process for all or part of the remaining portfolio to maximize value for unitholders, with no assurance on timing or outcome.
Announced intention to cease regular monthly distributions after major sales, focusing on special cash distributions and liquidation.
NAV per unit (diluted) decreased to €1.84 at June 30, 2025, from €1.97 at March 31, 2025, reflecting asset sales and market conditions.
Balance sheet remains strong with low leverage and limited near-term debt maturities, supporting the dissolution strategy.
Financial highlights
Same property operating revenues declined 3.9% year-over-year due to elevated vacancies and asset sales.
Same property NOI margin decreased to 73.6% for Q2 2025.
Diluted FFO per unit was €0.020 for Q2 2025, down nearly 49% year-over-year.
Net loss for Q2 2025 was €7.9M, compared to net income of €17.4M in Q2 2024, mainly due to fair value losses and lower NOI.
Available liquidity decreased to €23M after reducing borrowing capacity and asset sales.
Outlook and guidance
€366M in additional committed property dispositions expected to close in Q3 2025, with proceeds to fund a special distribution of ~€0.90 per unit.
Remaining 1,036 residential suites in the Netherlands are up for sale; further distributions to be made as additional sales close.
No guidance provided on wind-up costs, which are expected to be significant and depend on transaction structure and timing.
No assurance on timing or completion of pending or future sales; quantum and timing of special distribution not guaranteed.
Ongoing sale process for the remaining portfolio aims to maximize value and distribute net proceeds to unitholders.
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