European Residential Real Estate Investment Trust (ERE-UN) Q2 2025 earnings summary

Executive summary

• Completed or committed property sales totaling €115 million, with an additional €366 million in dispositions expected to close in Q3 2025, and a separate agreement to sell entities owning 1,446 residential suites for €337.3 million, subject to conditions.

• Proceeds from sales used to repay €83 million in debt, reduce leverage, and fund a planned special distribution of €0.90 per unit in September 2025, pending completion of dispositions.

• NAV per Unit (diluted) decreased to €1.84 as of June 30, 2025, reflecting asset sales and market conditions.

• Launched a sale process for all or part of the remaining portfolio to maximize value for unit holders, with no assurance on timing or outcome.

• Intention to cease regular monthly distributions, subject to closing of pending dispositions, as part of a value-surfacing liquidation strategy.

Financial highlights

• Same property occupied average monthly rent (AMR) increased by 6.8% year-over-year to €1,303 as of June 30, 2025.

• Same property operating revenues declined by 3.9% year-over-year, and same property NOI margin decreased to 73.6% for Q2 2025, impacted by higher vacancies and increased repairs and maintenance costs.

• Diluted FFO per unit was €0.02 for Q2 2025, with AFFO payout ratio at 77.1%, and distributions per unit at €0.015 for the quarter.

• Net (loss) income for Q2 2025 was €(7.9) million, compared to €17.4 million in Q2 2024.

• Operating revenues and NOI decreased by over 50% year-over-year, mainly due to strategic dispositions and related vacancies.

Outlook and guidance

• €366 million in additional committed dispositions are expected to close in Q3 2025, with proceeds to fund a special distribution and mark the end of regular monthly distributions.

• No guidance provided on wind-up costs, which are expected to be significant and will depend on transaction type and timing.

• Remaining portfolio of 1,036 residential suites in the Netherlands is up for sale, with ongoing efforts to maximize value for Unitholders.