DEFAMA Deutsche Fachmarkt (DEF) H1 2024 earnings summary

Executive summary

• Revenue rose to €13.2 million in H1 2024, up from €11.0 million year-over-year, with net income at €3.0 million versus €1.8 million, aided by a €1.5 million gain from a property sale.

• Focuses on acquiring established retail parks and shopping centers in small to mid-sized cities, targeting sustainable double-digit equity returns through a buy-and-hold strategy.

• Four property acquisitions and one sale increased the portfolio to 68 sites, with a 96% occupancy rate and annualized net rents of €24.6 million.

• Major lease extensions and new tenant wins secured €1.3 million in annual rents, with €1.5 million invested in tenant fit-outs.

• Achieved significant rental successes and portfolio growth, with four acquisitions in 2024 adding approximately €1 million in annual net rents.

Financial highlights

• Revenue for H1 2024 rose 19% to €13.2 million compared to H1 2023.

• Net income increased 62% year-over-year to €3.0 million for H1 2024.

• Funds From Operations (FFO) reached €5.1 million (+10%) for H1 2024; FFO per share at €1.06.

• EBITDA reached €9.5 million, up from €7.1 million; EBIT was €6.2 million, up from €4.3 million year-over-year.

• Net Asset Value (NAV) per share rose to €24.70 from €23.79 at year-end 2023.

Outlook and guidance

• 2024 targets: net income >€5 million, FFO €12 million, annualized FFO €11.3 million, dividend >€0.57 per share.

• Targeting FY 2024 net income of €5.0 million (excluding further one-offs), FFO of €10.6 million, and a dividend increase.

• Mid-term plan aims for portfolio value of €350 million, annualized rents of €28 million, and FFO of at least €13 million (>€2.70 per share) by 2025.

• Annualized FFO expected to reach €12 million by year-end, driven by acquisitions, lease-ups, and index-linked rent increases.

• Ongoing acquisition pipeline and increased transaction capacity support continued growth.