Eurocommercial Properties (ECMPA) Q3 2024 earnings summary

Executive summary

• Retail sales grew 2.3% for the nine months to September 2024 year-over-year, with Q3 up 3.1%; like-for-like rental growth was 3.8% and net property income rose 3.5% over the same period.

• Direct investment result per share increased to €1.83 from €1.81 year-over-year; full-year 2024 direct investment result expected at the upper end of €2.35–€2.40 per share guidance.

• Strong leasing momentum with 264 renewals/relettings in 12 months, achieving 4.0% rent uplift overall and 9.4% uplift for new lettings; portfolio vacancy at 1.8%.

• Major remerchandising projects completed at Woluwe and Carosello, with new flagship stores for Inditex brands and other international retailers.

• Achieved GRESB 5 Star Rating and 11th consecutive EPRA Gold Award for sustainability reporting.

Financial highlights

• IFRS net profit for nine months to September 2024 was €93.6 million (€1.75 per share), up from €66.5 million (€1.26 per share) year-over-year, driven by €42.9 million higher property revaluation.

• Gross rental income rose 2.3% to €173.9 million; net property income increased 3.5% to €149.2 million year-over-year.

• Direct investment result for nine months was €98.2 million, up 2.3% from €96.0 million year-over-year.

• Adjusted net asset value per share at 30 September 2024 was €40.08, up from €39.55 at 31 December 2023.

• Net loan to value ratio at 42.7% after July dividend distribution; average interest rate stable at 3.1%.

Outlook and guidance

• Full-year 2024 direct investment result expected at the upper end of €2.35–€2.40 per share, assuming no major macroeconomic deterioration.

• Cash interim dividend of €0.68 per share to be paid in January 2025, with stock dividend option.

• Interest expenses for Q4 2024 expected to be slightly lower than Q4 2023.