Q2 2024 Eurocommercial Properties NV Earnings Call Transcript
Key Points
- Eurocommercial Properties NV (CHIX:ECMPAa) reported a like-for-like rental growth of 4.5% for the first half of 2024, driven by lower inflation and indexation.
- The company achieved an average rental uplift of 2.5% on 261 renewals and relettings, with new lettings achieving an uplift of 5.8%.
- The EPRA vacancy rate remains very low at 1.7%, indicating high occupancy and quality of properties.
- Significant progress in ESG initiatives, including additional green and sustainability-linked loans and high scores in the BREEAM certification for French assets.
- The share buyback program is expected to be earnings and net asset value per share accretive, with 440,000 shares already bought back at an average price of EUR 22.74.
- Sales in the stores of shopping centers were up by only 1.8% compared to a year ago, with Italy's sales hampered by remerchandising projects and poor weather.
- The company reported a slight increase in the occupancy cost ratio to 9.8%, up from 9.5% in December 2023.
- Vacancy in Sweden temporarily increased due to the relocation of a hypermarket, although part of the space has been relet.
- The net EPRA initial yield decreased slightly from 5.8% in December to 5.7%, indicating a minor decline in property yield.
- The company remains cautious about potential tenant insolvencies due to competition and macroeconomic uncertainties, which could impact rental growth.
Hello, and welcome to the Eurocommercial Half Year Results 2024. My name is Laura, and I will be your coordinator for today's event. (Operator Instructions). I will now hand you over to your host, Luca Lucaroni, Investor Relations Director, to begin today's conference.
Good morning to everybody. My name is Luca Lucaroni, Investor Relations Director. I'm happy to open the call where our CEO, Evert van Garderen and our CFO, Roberto Fraticelli, will present our commercial results for the half year 2024. The agenda for the conference call is presented on this slide. Evert van Garderen will talk about the operational results of the company, including the recent activity during the first 6 months of the year and about ESG. Roberto Fraticelli will discuss in more detail the property valuation and the financial results. We will then open the call for any questions and remark you may have.
Thank you, Luca, for introducing us and presenting the agenda for today. Good morning, everyone, and thank you for joining us
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