German High Street Properties (GERHSP) Q4 2024 earnings summary

Executive summary

• Portfolio of 13 German high street properties valued at EUR 91.1 million as of December 31, 2024, with nearly full occupancy and stable rental income; focus remains on prime urban locations in Germany and future expansion in Denmark.

• Revenue increased to EUR 4.7 million in 2024 (up EUR 0.2 million year-over-year), driven by higher rental income and improved letting activity.

• Result before tax and value adjustments was EUR 0.1 million, in line with expectations; net result after tax was a loss of EUR 0.1 million, a significant improvement from a EUR 4.0 million loss in 2023.

• Completed a capital increase of EUR 6.0 million and repaid EUR 5.5 million in bank debt, reducing total financial debt to EUR 27.9 million.

• Sale of Danish property Hesselvang 11, Grenaa, generated a profit of EUR 0.13 million and improved liquidity, supporting further deleveraging.

Financial highlights

• Revenue: EUR 4.7 million in 2024 (EUR 4.5 million in 2023); rental income increased by EUR 150,000 year-over-year.

• Operating income: EUR 1.7 million after a net value adjustment of EUR -0.2 million.

• Result before value adjustments and financial items: EUR 1.8 million (EUR 1.6 million in 2023).

• Net result after tax: EUR -0.1 million (EUR -4.0 million in 2023); earnings per share (EUR): -0.04 (continuing), -0.10 (discontinued).

• Equity ratio: 64.6% (56.5% in 2023); loan-to-value: 39.2% (34.7% in 2023); cash holdings: EUR 3.6 million.

Outlook and guidance

• 2025 result before value adjustments and tax expected in the range of EUR 0.3–0.7 million, assuming stable rent and vacancy levels and slightly lower interest rates.

• Management expects demand for well-located premises to increase slightly in 2025, with easier reletting but requiring property improvements.

• Guidance is subject to risks from higher-than-expected interest rates and ongoing geopolitical uncertainties.