Care Property Invest (CPINV) H2 2023 earnings summary

Executive summary

• FY2023 rental income rose 21.2% to €65.9m and adjusted EPRA earnings increased 10.6% to €38.0m; adjusted EPRA EPS fell to €1.03 from €1.24 after share issuance.

• Reported net result was a €5.8m loss, chiefly reflecting fair-value movements in real estate and financial instruments.

• Five acquisitions totaled €57m; the proposed gross dividend was €1.00/share, with the same level intended for FY2024.

Financial highlights

• Rental income was €65.9m versus €54.4m in FY2022; like-for-like rental income growth was 10.46%, supported by rent indexation.

• Operating result before portfolio result rose 24.0% to €52.6m; operating result was €26.8m versus €61.8m, including a €25.8m fair-value decrease in investment properties.

• Adjusted EPRA earnings rose to €38.0m from €34.3m; adjusted EPRA EPS declined to €1.03 from €1.24 following issuance of 9.25m new shares.

• Total assets were €1,219.9m, investment properties €994.5m and equity €638.1m at FY2023 year-end; rent collection was 99% at the release date.

Outlook and guidance

• FY2024 rental income is forecast at €69.5m, up ~5% YoY; adjusted EPRA result is expected at €1.00–€1.02/share.

• A €1.00 gross dividend/share is intended for FY2024, equivalent to €0.85 net after 15% withholding tax.

• FY2024 growth is to be managed against a target debt ratio at or below 50%; leverage is expected to rise with acquisitions and development completions.

• Committed development pipeline totaled €84m, with €22.5m remaining to spend; projects were 100% pre-let, with a 5.3% initial yield on cost.