Patrimoine et Commerce (PAT) H1 2024 earnings summary

Executive summary

• Gross rental income rose 6.1% to €26.2m in H1 2024, with net profit up 16.2% to €14.9m year-over-year.

• Occupancy rate increased to 95.2% as of June 2024, with 33 leases signed and a 99.1% rent recovery rate.

• Crédit Agricole Centre France invested €20m for a 5.44% stake, supporting growth and financial stability.

• No new property acquisitions, but a purchase option was exercised in Alençon and a non-strategic gallery in Gaillon was sold.

• Dividend of €1.35 per share (total €20.8m) approved, to be paid July 31, 2024.

Financial highlights

• Net rental income grew 7.2% to €24.2m; normative EBITDA up 4.4% to €21.2m.

• Funds from operations (FFO) increased 2.4% to €15.2m; diluted FFO per share up 2.7% to €1.01.

• Net asset value (NAV) per share at €28.7, down 1.3% from December 2023; adjusted NAV post-dividend €30.1 per share.

• Portfolio value at €859m as of June 2024; capitalization rate stable at 7.3%.

• LTV ratio improved to 42.5% from 43.9% at end-2023.

Outlook and guidance

• Targeting €1bn in assets, maintaining returns above 7% and LTV around 50%.

• Distribution rate close to 60% of FFO.

• Seven projects (~30,000 sqm, €55m investment) underway, with 30+ more identified.

• Rollout of electric charging stations to reach all car parks by 2027, targeting €0.7m in rent.

• High occupancy and strong rent collection expected to be maintained.