DEFAMA Deutsche Fachmarkt (DEF) Q1 2025 earnings summary

Executive summary

• DEFAMA pursues a buy-and-hold strategy, acquiring established retail centers with strong anchor tenants and low vacancy, aiming for sustainable double-digit equity returns.

• Revenue increased to €7.4 million in Q1 2025, up from €6.6 million year-over-year, with net income stable at €0.9 million.

• Portfolio expanded to 80 locations, with significant leasing successes and new acquisitions in Havelberg and Wienhausen.

• Several major refurbishment and tenant improvement projects initiated, supporting future rental income growth.

• Sale of the Templin retail center will generate a special gain of over €1M and about €2M in post-tax liquidity.

Financial highlights

• Revenue for Q1 2025 was €7.4M, up 12% year-over-year; portfolio value rose 16% to €327M.

• FFO rose 7% year-over-year to €2.7M, or €0.56 per share; net income for Q1 2025 was €0.9M.

• EBITDA reached €4.5M, up from €4.1M; EBIT was €2.7M, up from €2.5M year-over-year.

• NAV per share increased to €28.17 from €27.64 at year-end 2024.

• Loan-to-value ratio improved to 58.3% from 59.1% sequentially; equity ratio slightly increased to 19.0%.

Outlook and guidance

• 2025 targets: FFO > €11M, net income (HGB) > €5M (potentially higher with additional sales), dividend > €0.60 per share.

• Long-term plan for 2030: portfolio value of €500M, annualized rental income of €42M, FFO of at least €19M (>€4.00 per share).

• Pipeline of potential acquisitions at attractive prices under review; further portfolio growth expected.

• Ongoing and planned refurbishments expected to drive additional rental income.

• High average debt maturity (7.9 years) and index-linked leases position the company to benefit from inflation.