CA Immobilien Anlagen (CAI) Q3 2024 earnings summary

Executive summary

• Rental income and FFO I rose by 4–5% year-over-year, with 121,000 sqm of new and extended leases at rents 5% above ERV; 40 leases signed for future occupancy, reducing vacancy risk.

• Closed 11 non-core disposals in Q1-3 2024, with additional deals signed and €50m in transaction volume post-period; key sale was Vienna's ViE office building.

• Construction started on Anna Lindh Haus in Berlin; four Berlin projects to add €30m annual GRI and strengthen prime office focus.

• Issued a €350m Green Bond and launched a share buyback program to enhance shareholder value.

• Balance sheet remains robust with equity ratio at 44.3%, net LTV at 37.4%, and strong liquidity.

Financial highlights

• Rental income rose 3.7–4% YoY to €179.1m; net rental income up 4% to €149.2m, driven by development completions and higher rents.

• EBITDA fell 51% to €131.0m; consolidated net result dropped to €-33.4m, mainly from negative revaluation of €119.2m.

• FFO I increased 4.7–5% to €86.5m; FFO II declined 44–45% to €88.1m due to lower sales.

• Operating margin (net rental income/rental income) improved to 83.3%.

• IFRS NAV per share declined 4.2% to €26.70; EPRA NTA per share down 4% to €32.24.

Outlook and guidance

• Recurring earnings (FFO I) target for full year 2024 confirmed to exceed €105m (€1.07 per share).

• Market outlook remains cautious due to higher interest rates, economic volatility, and regulatory changes; prime office focus and agile management seen as strengths.

• Strategic focus on non-core disposals, business model simplification, scale, disciplined investment, and strong balance sheet.

• Office market expected to bifurcate, with weaker assets facing greater pricing pressure.