Patrimoine et Commerce (PAT) Q2 2025 earnings summary

Executive summary

• Gross rental income rose 9.7% year-over-year to €28.7M for H1 2025, with a resilient retail park portfolio and high occupancy at 95.5% and rent collection at 99%.

• Funds from operations (FFO) increased 9.1% to €16.6M, while net income declined 18.3% to €11.8M due to negative property revaluations.

• Dividend of €1.35 per share for 2024 approved, totaling €21.9M, payable July 31, 2025.

• Maintained robust leasing activity with 56 leases signed and no new property acquisitions; disposed of two units for €5.2M above appraisal.

• Strategic focus on discount retail, energy transition, and portfolio growth toward a €1B asset target.

Financial highlights

• Net rental income rose 7.8% year-over-year to €26.1M; gross rents up 9.7% to €28.7M.

• EBITDA/operating income increased over 6% to €23.1M–€22.0M; recurring net income (FFO) up 9.1% to €16.6M.

• Net income declined 18.3% to €11.8M, impacted by negative property revaluations.

• Portfolio valued at €881.8M–€897.4M, with a capitalization rate of 7.6%.

• NAV per share at €29.47, down 2% from December 2024; would be up 2.6% excluding dividend.

Outlook and guidance

• Targeting portfolio growth to over €1B, with a pipeline of development and acquisitions.

• High occupancy and rent collection rates expected to be maintained; focus on asset rotation and tenant quality.

• Ongoing deployment of EV charging and photovoltaic projects to enhance asset value and sustainability.

• Management expresses confidence for H2 2025, citing strong fundamentals and disciplined management.