DEFAMA Deutsche Fachmarkt (DEF) Q2 2025 earnings summary

Executive summary

• Revenue increased to €15.2 million in H1 2025, up from €13.2 million year-over-year, with FFO rising to €5.5 million and the portfolio expanding to 91 properties through acquisitions and new tenant agreements.

• Net income for H1 2025 was €1.8 million, down 38% year-over-year, impacted by a prior-year one-off gain.

• Significant operational focus on property takeovers, renovations, and long-term lease signings, with major tenant wins and lease extensions.

• Buy-and-hold strategy targets sustainable double-digit equity returns, focusing on retail and shopping centers in small to mid-sized cities.

• Portfolio reached 91 properties as of June 30, 2025, with 13 acquisitions and 3 sales year-to-date.

Financial highlights

• FFO for H1 2025 at €5.5M, up 8% year-over-year, and revenue increased 16% to €15.2M compared to H1 2024.

• Net income for H1 2025 at €1.8M, with a positive one-time effect of €1.1M from a property sale.

• Portfolio value rose 23% to €344M as of June 30, 2025.

• EPS for H1 2025 at €0.62.

• EBITDA reached €9.0 million, down from €9.5 million year-over-year.

Outlook and guidance

• 2025 targets: FFO > €11M, net income (HGB) > €5M, dividend > €0.60 per share, with management reaffirming guidance.

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

• Additional property acquisitions and asset sales expected in H2 2025.

• Ongoing renovations and new leases anticipated to drive future rental income growth.

• Inflation-linked leases and long average debt maturities support resilience in a volatile market.