Nextensa NV/SA: Half Year results 2025

Core Viewpoint - Nextensa demonstrated significant profitability growth in the first half of 2025, driven by development activities, reduced financing costs, and a stronger balance sheet despite a challenging economic environment [1][3]. Financial Performance - Net profit for H1 2025 was €19.9 million, or €1.96 per share, marking a 41% increase from €14.1 million or €1.39 per share in the same period last year [4]. - Underlying rental income saw a like-for-like increase of 5.45%, primarily due to improved occupancy at Tour & Taxis and contributions from major renovations [4]. - Total rental income decreased by 19.6% compared to the previous year, attributed to divestments totaling approximately €230 million [1][4]. Strategic Transactions - The sale of the Knauf shopping centres for €165.75 million bolstered the company's financial position [2]. - Proximus's selection of Tour & Taxis as its new headquarters, with full pre-leasing of the Lake Side office project, highlighted the attractiveness of Nextensa's sustainable urban developments [2]. - The acquisition of the Proximus Towers (BEL Towers) for redevelopment into a mixed-use sustainable project further reinforced Nextensa's sustainability goals [2][11]. Development Projects - The Stairs office building at Cloche d'Or is on track for completion by March 2026, with a lease signed with PwC Luxembourg for 9,500 m² of office space in the Eosys building, scheduled for delivery in September 2027 [6]. - The final phase of D5-D10 at Cloche d'Or has seen 153 apartments sold or reserved, achieving an occupancy rate of 83% as of June 30, 2025 [7]. - At Tour & Taxis, 327 out of 346 residential apartments have been sold or reserved, indicating strong demand [9]. Financial Management - The average financing cost of the investment portfolio decreased from 2.86% to 2.71%, aided by a hedging policy and reduced financial debt [10]. - The financial debt ratio improved to 43.41% following the sale of the Knauf shopping centres, down from 45.39% at the end of 2024 [10]. - The average maturity of credit lines is now 2.85 years, with available headroom of €135 million [10]. Company Overview - Nextensa's investment portfolio is valued at approximately €1.1 billion, with geographical distribution of 32% in Luxembourg, 51% in Belgium, and 17% in Austria [12]. - The company focuses on large urban developments, including the Tour & Taxis project in Brussels and the Cloche d'Or urban extension in Luxembourg [13]. - Nextensa is listed on Euronext Brussels, with a market capitalization of €426 million as of June 30, 2025 [14].