Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tenant sales, malls, and hypermarkets are all experiencing growth, with footfalls increasing.
- The collection rate for 2024 was high, at 98.4% for Italy and 97% for Romania.
- Core business EBITDA increased by 4.1%, and net rental income on a like-for-like basis rose by 4.6%.
- The company exceeded its FFO guidance, closing at EUR35.6 million, nearly 5% above the initial target.
- A EUR0.10 dividend per share payout was proposed, indicating a return to dividend distribution.
Negative Points
- The financial side of the business showed some weaknesses, impacting FFO despite core business growth.
- The company's financial position was affected by a EUR13.2 million increase in financial debt compared to 2023.
- A one-shot impairment had a significant impact on the group net result, although it is not expected to recur in 2025.
- The refinancing project, while reducing the average cost of debt by 34 basis points, has not yet fully realized its benefits.
- The company faces challenges with two master leases expiring in 2026 and 2027, requiring ongoing impairments.
Q & A Highlights
Q: Can you elaborate on the guidance for 2025, particularly regarding the implicit debt cost and the perimeter of the guidance?
A: The guidance is consistent with our business plan assumptions, including the disposal of EUR10-12 million in Romania. This will result in some loss of net rental income, but with growth and reduced repayments, we aim to reach EUR38 million. The guidance accounts for disposals and assumes a decline in rates, with a focus on like-for-like growth and new initiatives.
Q: Were there any changes in asset disposal values in the second half of the year compared to the first half? What are the expectations for 2025?
A: In the second half, there were no yield declines, and the discount rate was flat. The reduction in value for hypermarkets, particularly in Naples, was due to a perimeter reduction. The expectation is for yields to potentially decrease, with a focus on consumption trends and a positive outlook for certain product categories.
Q: When will the newly set up vehicle start operating, and how will it be used?
A: The vehicle is set up as a non-listed REIT, allowing for potential aggregation of portfolios. It has 18 months to be filled with content, and while currently empty, it presents an opportunity for growth. The board is committed to growth, and the vehicle is seen as a strategic tool for future expansion.
Q: How have shopping malls performed in the first few weeks of 2025, and what is the CapEx plan for the year?
A: January and February showed similar performance to last year, with a slight improvement over Q1 2024. The CapEx plan focuses on sales and efficiency improvements, with a cautious approach to remodeling. The investment is expected to be below the EUR23 million included in the business plan.
Q: Will the EUR38 million FFO guidance for 2025 include the negative impact from disposals?
A: Yes, the EUR38 million FFO guidance includes the negative impact from disposals, accounting for a decline in net rental income. The first quarter of 2025 will still reflect the disposed portfolio, affecting comparisons with 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
