Carmila (CARM) H1 2024 earnings summary

Executive summary

• Delivered strong operating performance in H1 2024, with robust leasing activity—490 to 500 new leases signed—and stable appraisal values at €5.9 billion.

• Closed the acquisition of 93% of Galimmo SCA for €272 million, adding 52 assets valued at €675 million, with a put option for the remaining 7%; transaction is immediately accretive to net asset value and earnings.

• Revised up recurring EPS guidance to €1.65 for 2024, a 3.5% increase over 2023, reflecting strong H1 results and Galimmo's contribution.

• Announced and/or completed two €10 million share buybacks in 2024.

• Strategic focus on innovation, value creation, urban transformation, and sustainability, with a 46% CO2 emissions reduction since 2019 and net zero targeted by 2030.

Financial highlights

• Rent growth of +3.4% in H1 2024, in line with indexation; gross rental income up 2.1% to €192.8 million; net rental income up 0.7% to €176.3 million.

• Recurring earnings per share up 2.4% year-over-year in H1 2024 to €0.87.

• Portfolio value stable at €5.9 billion at end-June 2024; net initial yield at 6.58%.

• Rent collection rate at 97%, consistent with 2023.

• Specialty leasing and pop-up store revenue up 16% year-over-year.

Outlook and guidance

• Full-year recurring EPS guidance raised to €1.65, up 3.5% versus 2023, integrating Galimmo's contribution.

• Galimmo expected to contribute 3% to EPS in 2024 (excluding synergies); €5 million in synergies expected from 2025.

• LTV target maintained below 40% (including transfer taxes) for 2024-2026.

• Continued focus on agile restructuring projects, specialty leasing, and innovation to drive future growth.