Release Date: October 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you confirm how much annualized IFRS rental income is expected to be lost in 2025 due to tenant departures? Also, can you provide an update on the disposal of the Italian healthcare portfolio and the sale of the French portfolio to Primonial? A: For 2024, we expect a rent loss of EUR24 million year-to-date and an additional EUR25 million by year-end. For 2025, we anticipate a total annual rent of EUR60 million, with 60% concerning the first semester. Regarding the healthcare disposal, discussions with Primonial and other investors are ongoing, with no major updates since July. The Italian portfolio marketing is ongoing, with expected LOIs by mid-November. The agreement with Primonial is nonbinding, allowing room for negotiations with other investors.
Q: On the property development business, what does the current market context mean for margins, and how quickly can you restore them? Also, do the recent disposals ahead of book value make you confident about asset values in H2? A: We are seeing positive signs like falling interest rates and increased orders, but remain cautious due to political and fiscal uncertainties. We are highly selective in launching new operations, focusing on better profitability. Regarding asset values, we believe the main adjustments are behind us, but further value adjustments are possible, especially for to-be repositioned assets.
Q: Could you provide more details on the level of rents for leases signed this quarter compared to previous rents in the same areas? A: New leases and renewals are in line or above ERVs with market-aligned incentives. The gap between rents and ERVs is slightly widening due to strong indexation. We will provide an update in the full-year release.
Q: What is the expected share of leases that expired in 2024 to be relet by next year? A: Most departures are from assets to be repositioned, where we don't expect to sign new leases. The strategy is to reposition and sell these assets. For the Pulse building, reletting will take time due to the current market environment.
Q: Can you provide more color on your hedging profile and any potential refinancing activities? A: We are fully hedged until the end of 2024, with a cost of debt at 1.52%. We implemented EUR200 million in forward swaps starting in 2026 and 2027, aiming to keep the cost of debt below 2% until 2026.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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