Cofinimmo (COFB) Q4 2024 earnings summary

Executive summary

• Net result from core activities (EPRA Earnings) rose 1.3% to €244 million, surpassing the €235 million outlook, with net result group share at €64 million, up €119 million year-over-year.

• Gross dividend for 2024 confirmed at €6.20 per share; 2025 dividend set at €5.20 per share, reflecting anticipated office divestments and supporting medium-term growth in healthcare real estate.

• Portfolio now 77% healthcare real estate, 15% offices, 8% distribution networks, with office exposure reduced below €1 billion and focus on Brussels CBD.

• High occupancy rate of 98.5% and long average lease term of 13 years; gross rental revenues up 1.4% despite net divestments.

• Recognized as a sustainability leader, included in Time's World's Most Sustainable Companies 2024 and Financial Times' Europe's Climate Leaders, with significant energy intensity reduction.

Financial highlights

• Gross rental revenues grew 1.4% year-over-year to €358 million, with a like-for-like increase of up to 1.7%.

• EPRA earnings per share reached €6.50, above projections but down from €7.07 in 2023 due to capital increases and divestments.

• IFRS net result was €64 million (€1.70 per share), up €119 million from 2023, driven by positive fair value changes.

• Portfolio result was €152 million, down from €270 million in 2023, with €16 million gains on disposals.

• Cost of debt remained low at 1.4%, with over €1 billion headroom on committed credit lines.

Outlook and guidance

• 2025 investment budget set at €170 million, with half for healthcare development and €100 million in divestments, aiming for a net investment of €70 million and stable debt-to-asset ratio around 43%.

• 2025 EPS guidance at €6.20 per share, with a proposed gross dividend of €5.20 per share (84% payout ratio, ~10% yield).

• Demand for healthcare infrastructure expected to grow across Europe, supporting further portfolio expansion.