CA Immobilien Anlagen (CAI) Q2 2024 earnings summary

Executive summary

• Rental income rose 3% year-over-year to €121.4m, with FFO I up 4% to €55.0m, reflecting stable operating performance despite a challenging market.

• Net income fell to €-49.1m from €13.5m, mainly due to negative property revaluations and lower sales activity.

• Four non-core asset disposals were completed, with further sales expected to enhance portfolio quality.

• Moody’s confirmed the Baa3 investment grade rating and improved the outlook to stable in Q2 2024.

• The company maintains a prime office focus in major European cities, with 84% of the portfolio certified to sustainability standards.

Financial highlights

• EBITDA dropped 58% year-over-year to €77.5m, mainly due to lower property sales and negative revaluations.

• EBIT was €-35.3m, down from €37.9m, and EBT was €-51.8m versus €9.4m last year.

• Operating cash flow decreased 68% to €51.0m.

• Net debt increased 5% to €1,977.9m; equity ratio at 44.7% (down 1pp), net LTV at 38.9% (up 2.3pp).

• EPS was €-0.50, down from €0.14; FFO II per share fell 57% to €0.58.

• Dividend of €0.80 per share paid in May 2024.

Outlook and guidance

• FFO I for full year 2024 expected above €105m (€1.07 per share).

• Strategic priorities: accelerate non-core disposals, simplify business model, invest in core markets, maintain strong balance sheet, and return surplus capital.

• Cautiously optimistic on prime office markets, expecting continued bifurcation and pricing pressure on weaker assets.