DEFAMA Deutsche Fachmarkt (DEF) H2 2024 earnings summary

Executive summary

• Achieved record portfolio growth in 2024 with 14 property acquisitions, expanding to 78 sites and €323M portfolio value.

• Annualized FFO rose to €12M (€2.50/share), with FFO for 2024 at €10M, up 4% year-over-year.

• Net income increased 10% to €4.6M; EPS at €0.95, and dividend proposed to rise to €0.60/share, marking the tenth consecutive increase.

• High occupancy (96.6%) and robust tenant structure, with 92% of rental income inflation-protected.

• DEFAMA outperformed sector indices with an 18.1% total shareholder return, nearly matching the DAX.

Financial highlights

• Revenue grew to €27.3M in 2024, up from €23.3M the previous year.

• EBITDA reached €17.8M (+14%), EBIT €11.2M (+15%), and EBT €6.2M (+7%).

• FFO per share increased to €2.09 (from €2.02); NAV per share rose 18.6% to €27.64.

• Loan-to-value improved to 59.1% (from 61.1%), with average interest rate at 3.02% and average debt maturity of 7.9 years.

• Net financial debt at €188.6M; equity ratio stable at 18.7%.

Outlook and guidance

• 2025 targets: net income >€5M (excluding further sales), FFO of €11M, and another dividend increase.

• Pipeline for new acquisitions remains strong, with several deals under review and further asset sales possible.

• Ongoing investments in property upgrades and energy efficiency expected to drive future rental growth.

• DEFAMA expects to benefit from inflation-linked rents and long-term fixed-rate financing.