Société de la Tour Eiffel (EIFF) H1 2024 earnings summary

Executive summary

• Portfolio value at €1.67bn, down 4.5% like-for-like over six months, with net loss widening to €39.1m from €16.3m in H1 2023.

• Revenues declined 1.2% year-over-year to €41.2m, impacted by asset disposals and market headwinds.

• Cash flow from operations fell to €9.6m, with recurring cash flow per share at €0.58 (vs. €0.93 in H1 2023).

• Transformation roadmap maintained, focusing on asset adaptation, ESG integration, and innovation.

• Dividend suspended for the period; stable shareholder base with Groupe SMA holding 52.3%.

Financial highlights

• EPRA earnings per share: €0.49 for H1 2024, down from €0.90 in H1 2023; EPRA earnings: €15.0m (vs. €21.3m in H1 2023).

• Net current income: €15.0m vs. €21.3m in H1 2023.

• Gross rental income: €41.2m, down from €41.8m year-over-year.

• EPRA NTA per share: €36.4, down from €45.6 in H1 2023.

• Net financial debt: €680.3m–€742.2m; average cost of debt 1.71%; LTV at 44.5%.

Outlook and guidance

• Roadmap supported by the Board, focusing on asset diversification, ESG, and adapting financial structure.

• Ongoing portfolio transformation to reduce office exposure and increase asset diversity, with at least 80% of assets targeted for environmental certification.

• Management anticipates pressure on ICR and LTV covenants due to higher interest rates and is exploring options to strengthen the financial structure.

• Recent asset disposals post-June 2024 support dynamic portfolio management.