NSI (NSI) H2 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2024, with a focus on Amsterdam, sustainability leadership, and selective acquisitions such as Sypesteyn in Utrecht.

• Portfolio remains concentrated in Amsterdam, now representing 55% of assets, with ongoing asset rotation and capital recycling.

• Sustainability leadership maintained, with 44% of assets rated BREEAM Excellent and 95%–96% of assets at EPC label A or higher.

• Year-end LTV at 33.8% provides ample capacity for future growth opportunities.

• EPRA vacancy rate at 5.1% (4.5% excluding Sypesteyn), reflecting strong leasing performance.

Financial highlights

• Like-for-like net rents increased by 5.2%, driving EPRA EPS to €2.09 and supporting a dividend increase to €1.57.

• Gross rental income rose 2.2% to €72.7m; net rental income up 4.5% to €61.1m.

• Portfolio revaluation at -2.7%, a significant improvement from -17.4% in 2023.

• EPRA NTA per share slightly decreased to €35.27; LTV increased to 33.8%.

• OPEX and administrative costs were lower year-over-year, while financing costs increased due to higher variable rates.

Outlook and guidance

• 2025 EPRA EPS guidance set at €2.05–€2.15, reflecting stable earnings with minor negative impact from recent disposals and a small tax increase.

• Continued focus on asset rotation towards Amsterdam and selective acquisitions in core markets.

• Dividend payout policy remains at a minimum of 75% of earnings, with a proposal for a €1.57 per share dividend for 2024.

• First debt maturity in January 2026; anticipate higher cost of debt but no major refinancing issues.

• Open to new asset classes beyond offices, with internal resources allocated to explore opportunities.