Eurocommercial Properties (ECMPA) H1 2025 earnings summary

Executive summary

• Like-for-like rental growth reached 3% year-over-year in H1 2025, with 296 lease transactions and an average uplift of 2.9% on renewals and relettings; new lettings delivered a 6.6% uplift, reflecting strong retailer demand and a high occupancy rate of 98.8%.

• Retail sales rose 2.6% overall, with notable category growth in health & beauty (+7.6%), services (+7%), hyper/supermarkets (+6.9%), and books & toys (+4.4%).

• Major remerchandising projects at Carosello (Italy) and Woluwe (Belgium) drove retail sales increases of 14.9% and 9.8% respectively, with significant footfall growth and reduced vacancies.

• Sustainability remains central: 100% BREEAM-certified centers, 62% increase in green loans, 12% reduction in carbon emissions, and 41% increase in on-site solar energy production.

• CEO review highlights resilient demand, rental growth, and a focus on customer-centric growth and sustainability.

Financial highlights

• Direct investment result per share increased to €1.25 (H1 2024: €1.24), with total direct investment result at €66.9 million, up 1% year-over-year.

• IFRS profit after tax was €42.3 million (€0.79 per share), down from €89.9 million (€1.68 per share) in H1 2024, mainly due to a €49.2 million increase in deferred tax charges related to Italian substitute tax.

• Net property income rose to €101.9 million, driven by higher rental income from indexation and leasing activity.

• Loan-to-value ratio improved to 40.5% from 41.3% at year-end 2024, supported by €415 million in refinancing and asset sales.

• EPRA Net Initial Yield stable at 5.7%; EPRA NTA per share at €41.46 (31 Dec 2024: €41.79); net borrowings at €1,527 million.

Outlook and guidance

• Full-year 2025 direct investment result expected at the upper end of €2.40–€2.45 per share guidance, assuming stable macroeconomic conditions.

• CapEx for remerchandising projects is moderate, spread over several years, and funded from retained earnings.

• Further non-core asset disposals possible, especially in Sweden, to reinvest in core assets.