Aedifica NV/SA: Interim financial report – 1st quarter 2025

Core Insights - Aedifica reported strong operational performance with results exceeding budget expectations [2] - The real estate portfolio is valued at over €6.1 billion as of March 31, 2025 [3] - The company maintains a debt-to-assets ratio below 40% and has strong liquidity [4] - The outlook for 2025 remains positive and on track [5] Financial Performance - EPRA Earnings amounted to €62.6 million, reflecting a 5% increase compared to March 31, 2024, equating to €1.32 per share [7] - Rental income rose to €93.0 million, marking a 13% increase from the same period last year [7] - There was a 3.2% increase in rental income on a like-for-like basis in the first quarter [7] - The weighted average unexpired lease term is 18 years, with an occupancy rate of 100% [7] Portfolio and Asset Management - The company operates 607 healthcare properties serving nearly 48,300 end users across 7 countries [7] - A total of 30 properties, including the entire portfolio in Sweden, were divested for approximately €100 million as part of a strategic asset rotation program [7] - The valuation of marketable investment properties increased by 0.25% on a like-for-like basis in Q1 [7] Investment and Financing - An investment program of €126 million is underway for pre-let development projects, with €66 million remaining to be invested [7] - In the first quarter, 3 projects from the committed pipeline were delivered with a total investment budget of approximately €45.5 million, while 2 new projects were added [7] - The debt-to-assets ratio was 39.9% as of March 31, 2025, and reduced to 39.5% after accounting for cash from disposals [7] - The company has over €800 million of headroom on committed credit lines and cash available for CAPEX and liquidity needs [7] - The average cost of debt, including commitment fees, is 2.2% [7] - A BBB investment-grade credit rating with a stable outlook has been assigned by S&P [7] Shareholder Returns - The EPRA NTA increased to €77.86 per share compared to €76.63 per share as of December 31, 2024 [7] - The proposed dividend for the 2025 financial year is €4.00 per share (gross), representing a pay-out ratio of 80% of consolidated EPRA Earnings [7]