EgnsINVEST Ejendomme Tyskland (EGNETY) Q2 2024 earnings summary

Executive summary

• Achieved profit before tax of DKK 35.4 million for H1 2024, driven by positive fair value adjustments of investment properties, especially in Q2.

• Net asset value per share increased 1.62% to DKK 248.86 during Q2 2024.

• Vacancy rates as of June 30: 0.79% for residential, 7.87% for commercial, totaling 1.52%.

• Ongoing lease renegotiations and new contracts contributed to value gains and lower commercial vacancy.

Financial highlights

• Net revenue for H1 2024 was DKK 30.0 million, up from DKK 28.8 million year-over-year.

• Profit before tax for H1 2024 reached DKK 35.4 million, compared to a loss of DKK 26.7 million in H1 2023.

• EBVAT (profit before fair value adjustments and tax) for H1 2024 was DKK 5.0 million, down from DKK 10.0 million in H1 2023.

• Fair value adjustments of investment properties contributed DKK 30.4 million in H1 2024, versus a negative DKK 36.7 million in H1 2023.

• Net profit after tax for H1 2024 was DKK 29.6 million, compared to a loss of DKK 22.6 million in H1 2023.

Outlook and guidance

• EBVAT for full year 2024 expected in the range of DKK 11.1–12.6 million, assuming current interest rates.

• Potential ECB rate cuts in H2 2024 could positively impact results.

• Lease renegotiation and tenant replacement efforts to continue throughout 2024.