European Residential Real Estate Investment Trust (ERE-UN) Q1 2025 earnings summary

Executive summary

• Completed sale of 415 residential suites in the Netherlands for €90 million in Q1 2025, using €79 million of proceeds to repay debt and strengthen the balance sheet.

• Entered agreement to sell entities owning 1,446 suites for €337.3 million, with closing expected between August and mid-September 2025.

• Board and management are aligned on a near-term strategic dissolution, with a bid process for the remaining portfolio underway and proposals due in Q3 2025.

• NAV per Unit (diluted) decreased to €1.97 at March 31, 2025, from €2.07 at Q4 2024 and €2.89 a year earlier.

• Portfolio now focused on high-quality, urban-located European assets, with ongoing efforts to sell remaining properties.

Financial highlights

• Same property operating revenues declined by 0.7% year-over-year in Q1 2025, with same property NOI margin at 75.0%, down from 76.4% in Q1 2024.

• Diluted FFO per Unit was €0.018, down from €0.039 in Q1 2024, reflecting significant disposition activity and lower interest costs.

• AFFO payout ratio stood at 86.6%.

• Occupied AMR increased 6.2% year-over-year to €1,248 on the same property portfolio.

• Operating revenues and NOI decreased by over 50% year-over-year, mainly due to strategic dispositions of over 60% of the residential portfolio.

Outlook and guidance

• Proceeds from the €337.3 million sale are intended to fund a special cash distribution of approximately €0.80 per unit, subject to transaction completion.

• The board is launching a bid process for the remaining portfolio, with proposals due in Q3 2025.

• Focus remains on maximizing value and distributing net proceeds to unit holders, net of wind-up costs.