NSI (NSI) H1 2024 earnings summary

Executive summary

• Strategic focus on Amsterdam, with 21 assets valued at €539 million and ongoing asset rotation to concentrate further in this market, including expansion into life sciences and residential sectors.

• Portfolio diversification includes life science, student housing, school, and residential assets, with plans to convert some office assets to residential in the medium term.

• Sustainability leadership demonstrated by 98% of assets labeled, 96% with EPC A or better, GRESB score of 94, and up to 76% rated BREEAM 'Excellent' or 'Very Good'.

• Growth strategy centers on selective acquisitions, internal CapEx investments, and asset repositioning, supported by a strong balance sheet and low leverage.

• Renovation and repositioning projects, such as HNK Rotterdam Alexander, target Paris-proof standards and net yields over 10%.

Financial highlights

• Gross rental income rose to €36.2m in H1 2024, up 1.8% year-over-year, mainly due to reduced vacancy and like-for-like growth of 3.0%.

• Net rental income declined 1.4% to €27.6m, impacted by a 13% rise in operating expenses and higher taxes.

• EPRA earnings per share for H1 2024 was €0.91, down 10.5% year-over-year; payout ratio increased to 82.4%.

• Portfolio revaluation was -1.7% in H1 2024, a significant improvement from -17.4% in H1 2023.

• Dividend per share maintained at €0.75.

Outlook and guidance

• 2024 EPRA EPS guidance raised to €1.90–2.00, reflecting confidence in operational performance, share buyback impact, and strategic execution.

• No disposals included in current guidance; any disposals in 2024 will mainly impact 2025 earnings.

• Residential conversion projects in Southeast Amsterdam expected to start from 2027, subject to municipal approvals and lease expiries.

• Positive outlook for H2 2024, with focus on accretive opportunities and further development pipeline.