European Residential Real Estate Investment Trust (ERE-UN) Q3 2025 earnings summary

Executive summary

• Nearly €500 million in property sales completed year-to-date, including almost €400 million in Q3 2025, as part of a strategic wind-down and value maximization process.

• Special cash distribution of €0.90 per Unit paid in September 2025, funded by asset sales; regular monthly distributions ceased after August 2025.

• Proceeds from sales used to repay €238 million to €244.6 million in debt, strengthening the balance sheet.

• Remaining portfolio consists of 1,033 residential suites and ancillary retail space in the Netherlands, with ongoing sale processes and active buyer interest.

• Ongoing focus on maximizing value from remaining assets and distributing net proceeds to Unitholders.

Financial highlights

• Same property occupied AMR increased by 4.7% to €1,349 as of September 30, 2025.

• Residential occupancy declined to 90.8% due to intentional vacancies supporting the disposition strategy.

• Same property NOI margin dropped to 67.8% in Q3 2025, down from 76.2% year-over-year, with a 9.1% decline in same property NOI.

• Diluted FFO per Unit for Q3 2025 was €0.013, a 67.5% decrease year-over-year.

• NAV per Unit (diluted) decreased to €0.91 at period end, primarily due to the special distribution.

Capital allocation and financing

• Adjusted debt to market value ratio improved to 34% from 53% year-over-year; adjusted debt to gross book value was 31.5%.

• No mortgages maturing for the remainder of 2025 and 2026, supporting financial flexibility.

• Weighted average mortgage term to maturity is 1.9 years, with all debt at fixed interest rates.

• Debt service coverage and interest coverage ratios remain above covenant requirements, at 3.2x and 3.8x respectively.

• Available liquidity decreased to €24.2 million, reflecting reduced credit facility size.