Prodea Real Estate Investment Company (PRODEA) H1 2024 earnings summary

Executive summary

• Portfolio consisted of 378 properties (mainly retail and office), with a total lettable area of 1.456 million sqm as of June 30, 2023, valued at €2.57 billion, including assets in Greece, Cyprus, Italy, Bulgaria, and Romania.

• Significant investments included the acquisition of 100% of Thetis Ktimatiki, owner of four logistics centers, and a residential plot in Pefki, Athens.

• Nine properties were sold in Greece and Italy; a major agreement was signed for the sale of 43 properties to National Bank of Greece for €237.3 million.

• Dividend distribution for 2022 amounted to €65.2 million (€0.255 per share).

Financial highlights

• Revenue for H1 2023 was €86.7 million, up 18% year-over-year, mainly due to new investments and rental increases.

• Operating profit (EBITDA) was €87.2 million, down from €102.0 million in H1 2022; adjusted EBITDA rose 32.7% to €59.7 million.

• Net profit attributable to shareholders was €51.8 million, down from €81.1 million in H1 2022; basic EPS was €0.20 (H1 2022: €0.32).

• Funds from Operations (FFO) decreased 17.1% to €19.0 million.

• Net asset value (NAV) per share increased to €5.84 (Dec 2022: €5.77).

Outlook and guidance

• Strategic focus remains on sustainable assets, logistics, hospitality, and selective residential investments.

• Emphasis on ESG principles and further development of green-certified office buildings.

• Management expects continued revenue growth from new investments and rental adjustments, with ongoing portfolio optimization.