Fonciere Inea (INEA) H1 2026 earnings summary

Executive summary

• Persistent economic and political instability in 2026, with inflation rising to 2.4% in France due to geopolitical tensions and oil price spikes, leading to higher central bank rates and investor caution in real estate.

• Delivered a resilient first half of 2026 despite operational decline mainly due to ongoing asset disposals and stable portfolio value.

• No new investments or acquisitions; focus on asset disposals totaling €7M in H1, with further cessions expected to reach over €40M for the year.

• Debt repayments of €13.6M; total drawn debt at €602M, with average cost rising to 3.75%.

• Rental activity up 9% in signed leases, with over 21,000 m² signed and a diversified, high-quality tenant base.

Financial highlights

• Gross rental income fell 6% year-over-year to €38.8M due to disposals; recurring net income (EPRA) down 11% to €12.5M (€1.15/share).

• Net asset values per share (EPRA): NRV €52.4 (-4.1%), NTA €46.4 (-5.1%), NDV €46.7 (-5.3%) over 6 months.

• Portfolio value at €1,195M, down from €1,210M at year-end 2025, with a stable average cap rate of 6.5%.

• Vacancy rate increased to 13.2% from 11.6% at year-end 2025, mainly due to asset disposals and lease expiries.

• LTV (covenant) at 53.8%, up from 52.3% at end-2025; all covenants respected.

Outlook and guidance

• Cash flow per share guidance for 2026 raised to €5.9–6.5 (from €4.6–5), contingent on successful asset sales.

• Targeting a loan-to-value (LTV) ratio below 50% by year-end, assuming planned disposals are completed.