Eurocommercial Properties (ECMPA) H2 2024 earnings summary

Executive summary

• Portfolio of 24 shopping centers valued at €3.9 billion across Italy, France, Sweden, and Belgium, with Italy representing 45% of value and strong operational and financial performance in 2024.

• Net property income rose 5.9% to €197.9 million, driven by rental growth, reduced property expenses, and re-merchandising of flagship centers like Woluwe and Carosello.

• Vacancy rate reduced to 1.4%, with industry-leading occupancy cost ratio of 9.8% and 275 lease transactions completed.

• Retail sales grew 2.7% year-over-year, with all markets contributing positively; health & beauty, sport, and food & beverage sectors led growth.

• Strong ESG progress: 12% reduction in carbon emissions, 87% renewable electricity, and 73% of centers achieved zero waste to landfill.

Financial highlights

• Property investments increased by 3.1% to €3.9 billion; net property income up 5.9% to €197.9 million year-over-year.

• EPRA NTA per share up 5.6% to €41.79; direct investment result per share up over 3% to €2.39.

• Dividend proposal of €1.80 per share for 2025, a 5.9% increase, with a 75% payout ratio and 7.5% yield.

• Loan-to-value ratio improved to 41.3%; net debt stable at €1.618 billion; net debt to EBITDA improved to 8.5x.

• Average cost of debt stable at 3.2%; 80% of debt hedged against interest rate risk; interest coverage ratio at 3.5x.

Outlook and guidance

• Direct investment result for 2025 expected between €2.40 and €2.45 per share, assuming stable macroeconomic conditions.

• Continued focus on re-merchandising and development projects in Italy, Belgium, and Sweden, with further internal growth anticipated.

• Rental growth in 2025 to benefit from indexation, renewals, and higher turnover rents, with some temporary vacancy from re-merchandising.