Prodea Real Estate Investment Company (PRODEA) H2 2024 earnings summary

Executive summary

• Revenue increased by 34.8% to €227.6m, driven by hotel segment expansion and property sales.

• Net profit reached €106.9m, up from €73.8m, with significant gains from property revaluations.

• Portfolio comprised 299 properties and 4 hotels across Greece, Cyprus, Italy, Bulgaria, and Romania.

• Major investments included acquiring 55% of MHV, expanding logistics and hospitality assets.

• Substantial property sales and a €600m portfolio sale agreement with Aktor were executed.

Financial highlights

• Rental income declined to €149.1m due to asset disposals; hotel revenue was €59.0m (from zero in 2023).

• Adjusted EBITDA was €162.0m, down from €222.5m, reflecting lower recurring rental income.

• Net LTV improved to 43.9% (from 45.8%), and liquidity ratio rose to 2.60x.

• NAV per share was €5.81, slightly down from €5.89.

• Dividends distributed: €63.1m for 2023 and €120.1m as interim for 2024.

Outlook and guidance

• Strategic focus on logistics and hospitality, with further investments in green-certified offices and luxury hotels.

• Ongoing asset rotation, targeting value creation through selective sales and new developments.

• Monitoring macroeconomic and geopolitical risks, with hedging in place for 69.8% of debt.

• Committed to net-zero emissions by 2050 and continuous ESG integration.