ER Capital (ERC) H2 2025 earnings summary

Executive summary

• 2025 was a transformative year, marked by a reverse listing on Euronext Amsterdam and a legal demerger, resulting in a new listed structure and expanded real estate activities.

• Focus was on integrating operations, strengthening governance, and expanding the real estate portfolio, with a prudent approach to capital allocation and liquidity.

• The company operates a business model combining direct real estate ownership, (re)development, and fund structuring, generating both recurring and transaction-driven income.

Financial highlights

• Gross rental income rose to €4.7 million in 2025 from €3.1 million in 2024, reflecting portfolio expansion.

• Net rental income increased to €3.7 million (2024: €2.1 million).

• Operating result swung to a loss of €3.5 million (2024: €1.0 million profit), mainly due to non-recurring listing and restructuring costs.

• Total comprehensive loss was €7.0 million (2024: €1.9 million loss).

• Investment property portfolio grew to €90.8 million (2024: €58.5 million); total assets reached €96.6 million (2024: €66.3 million).

• Shareholders' equity declined to €3.0 million (2024: €9.7 million) due to losses and transaction costs.

• Interest-bearing loans increased to €79.4 million (2024: €47.0 million).

• Cash position at year-end was €1.7 million (2024: €1.8 million).

Outlook and guidance

• Management expects improved financial performance in 2026, driven by recurring rental income, increased fee-based activities, and the non-recurrence of one-off costs.

• Operating costs are projected to rise modestly to support fund management growth, but are expected to be offset by higher revenues.

• Return to profitability in 2026 is targeted, contingent on successful execution of planned transactions and stable market conditions.