German High Street Properties (GERHSP) Q2 2024 earnings summary

Executive summary

• Revenue increased to EUR 2.6 million for H1 2024, up from EUR 2.2 million in H1 2023, driven by higher rental income and an extraordinary rental payment in Q2 2024.

• Result before value adjustments and taxes was a profit of EUR 49,000, but after value adjustments and taxes, the period ended with a loss of EUR -1.44 million, mainly due to a EUR -1.6 million fair value adjustment of investment properties.

• The property portfolio consists of 13 German high street properties valued at EUR 89.5 million as of June 30, 2024, down from EUR 91.0 million at year-end 2023.

• The result is in line with management expectations, considering market and economic conditions.

Financial highlights

• Revenue for H1 2024: EUR 2.6 million (H1 2023: EUR 2.2 million); Q2 2024: EUR 1.35 million (Q2 2023: EUR 0.99 million).

• Result before value adjustments and interests: EUR 959,000 (H1 2023: EUR 770,000).

• Net loss for H1 2024: EUR -1.44 million (H1 2023: profit of EUR 148,000), mainly due to negative fair value adjustments.

• Investment properties valued at EUR 89.5 million (June 2023: EUR 96.0 million).

• Equity as of June 30, 2024: EUR 56.3 million; solvency ratio 58.4%.

Outlook and guidance

• Management expects 2024 result before value adjustments and tax to be at the lower end of EUR 0.0–0.3 million.

• Lower interest expenses and stable rent/vacancy levels are anticipated, but higher interest rates or geopolitical risks could negatively impact results.

• Investments in lease improvements and re-letting are expected to continue.