NSI (NSI) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2025, with a focused Dutch office portfolio, key redevelopments, and asset rotation toward core markets, especially Amsterdam.

• Successfully refinanced €400 million in loans, increasing financial stability and flexibility, and completed asset disposals in Eindhoven and Hoofddorp at significant premiums.

• EPS increased slightly to €2.10, supporting a dividend increase to €1.58 per share, with a minimum payout ratio of 75%.

• Vacancy rate rose to 9.2% in 2025 and is expected to temporarily increase to just under 12% at the start of 2026 due to returned assets.

• Sustainability remains a strategic pillar, with 96% of assets by value labeled EPC A or better and further reductions in energy intensity achieved.

Financial highlights

• Gross rental income increased 1.6% to €73.9 million, while net rental income declined 1.2% to €60.3 million.

• EPRA EPS for 2025 was €2.10, up €0.01 year-over-year, with total EPRA earnings of €40.6 million.

• EPRA NTA per share decreased by 6.4% to €33.03, mainly due to negative portfolio revaluations.

• Full-year revaluation was negative, with a €31 million downward adjustment in H2, mainly due to Glass House and Leiden assets.

• OPEX increased due to higher municipal taxes, absence of prior year insurance compensation, and higher sustainability consultancy costs.

Outlook and guidance

• EPRA EPS guidance for 2026 is €1.90–€2.05, reflecting a decline due to disposals and higher vacancy, partially offset by like-for-like rental growth.

• Vacancy rate expected to rise to around 12% in Q1 2026, then decline as leasing progresses.

• Further investments planned in Vitrum, Glass House, and rebrands of HNK Houthavens and HNK Utrecht Centraal Station.

• Focus remains on operational excellence, leasing, project management, and cost control amid market uncertainty.

• LTV expected to rise above 35% but remain well below 40% by end of 2027 due to CapEx on major projects.