Eurocommercial Properties (ECMPA) H1 2024 earnings summary

Executive summary

• Portfolio value exceeded €3.8 billion, with 24 shopping centers in four countries and no changes in portfolio composition since December 2023.

• Like-for-like rental growth was 4.5% year-over-year, driven by indexation, turnover rent, and strong tenant demand; retail sales grew 1.8% in H1 2024.

• Leasing activity was robust, with 261 renewals/relettings at a 2.5% uplift and 135–261 new leases signed at a 4.1%–4.8% uplift; vacancy rate remained low at 1.7%.

• Share buyback program for up to €15 million launched in June 2024, with 67.5% completed by August 29, 2024.

• Dividend per share increased to €1.70 (+6.25%–6.5% year-over-year), with 20%–23.7% of shareholders opting for stock dividend.

Financial highlights

• Rental income rose by €2.7 million (+2.5%) to €110.2 million and net property income by €5.3 million (+6%) to €100.2 million year-over-year.

• Direct investment result increased by 2.8% to €66.3 million; indirect investment result turned positive due to property revaluation and derivatives.

• Portfolio valuation increased by 1% to over €3.8 billion, with marginal gains in all countries; EPRA net initial yield at 5.7%.

• EPRA NTA per share decreased slightly to €39.37, mainly due to share issuance for dividends.

• Loan-to-value ratio improved to 41.8%; net debt to EBITDA at 8.5x; ICR at 3.6–3.7.

Outlook and guidance

• Guidance for 2024 direct investment result per share raised to €2.35–2.40, reflecting optimism from lower interest rates and stable operations.

• Management remains cautious due to macroeconomic risks, tenant insolvencies, and inflation, but expects positive effects from further rate cuts.

• Interim dividend for January 2025 will again offer a stock dividend option.