Aedifica NV/SA (AED) Q3 2024 earnings summary

Executive summary

• EPRA earnings reached €178.3 million, up 7% year-over-year, or €3.75/share, exceeding budget expectations.

• Rental income rose to €251.0 million, up 7% year-over-year, with like-for-like growth of 3.3%.

• Real estate portfolio exceeded €6.1 billion, spanning 8 countries and 630 healthcare sites.

• Occupancy rate remained at 100% with a weighted average unexpired lease term of 19 years.

• Board reaffirmed 2024 dividend guidance of €3.90/share and raised EPRA earnings outlook to at least €4.90/share.

Financial highlights

• Net profit attributable to owners was €171.0 million (€3.60 per share), up from €89.5 million year-over-year.

• EBIT margin improved to 86.1% from 85.7% year-over-year.

• EPRA cost ratio (including direct vacancy costs) decreased to 13.9% (from 14.7%).

• Net asset value per share (EPRA NRV) increased to €85.41 (from €80.66 at year-end 2023).

• Average cost of debt (including commitment fees) stable at 1.9%.

Outlook and guidance

• 2024 rental income expected at €337 million (+7.3% vs. 2023), EPRA earnings above €233 million (+6.1% vs. 2023).

• EPRA EPS guidance raised to at least €4.90/share; gross DPS of €3.90/share (+3% vs. 2023).

• Pipeline deliveries for 2024 projected at €300 million, with ~€100 million asset rotation.

• Debt-to-assets ratio forecasted at 41% by year-end 2024; average cost of debt expected at 2.1%.

• Medium-term growth supported by demographic trends, market consolidation, and public financing.