Aedifica S.A.

Aedifica reported H1 2026 EPRA earnings per share of EUR 2.71, up 5% versus H1 2025. Rental income was up 62%, and the reported EBIT margin was 86.6% or 85.5% on a normalized basis. Average cost of debt was 1.9%, debt-to-asset ratio was 42.7% at end-June, and outstanding financial debt was EUR 5.3 billion. On the portfolio side, like-for-like rental growth was 1.7% overall and 1.9% for health care, while H1 integration costs were approximately EUR 5 million. For full-year 2026, management guided to EPRA EPS of EUR 5.35, rental income of EUR 656 million, EPRA earnings of EUR 436 million, dividend of EUR 4.20 per share, and year-end debt-to-asset ratio close to 42%. Management also reiterated EUR 60 million of run-rate synergies in 2027, with EUR 5.5 million expected in H2 2026.

Stefaan Gielens said the merged group is “well on track” on integration, with ExCom and the board in place, country leaders appointed, IT systems selected, and the operating model being rolled out. He emphasized that the portfolio is still seeing strong operator performance across Europe, with occupancy back to pre-COVID levels and rent cover generally healthy. His tone was constructive and confident, especially around the company’s ability to grow through a mix of pipeline development, standing-asset buying, and larger M&A.

Ingrid Daerden framed the quarter around the financial benefits of the merger and the ongoing balance sheet work. She highlighted H1 EPRA EPS of EUR 2.71, rental income up 62%, EBIT margin of 86.6% (85.5% normalized), and a 1.9% average cost of debt. She also noted approximately EUR 5 million of integration costs in H1, a 42.7% debt-to-asset ratio at June 30, EUR 5.3 billion of financial debt, and more than EUR 900 million of refinancing completed in the first half, including a sustainability-linked facility of more than EUR 600 million. She added that the debt plan assumes a possible bond in autumn, which could add EUR 500,000 to EUR 1 million of financial charges in 2026 while still leaving EPRA EPS at EUR 5.35.

Analysts focused on the timing and mechanics of the planned disposals, especially the Belgian EUR 300 million health care sale requirement and the office portfolio. Management said any switch from off-market to a structured process would depend on deal certainty and timing, with a structured process possible before year-end if needed, and that they aim to land the Belgian divestment in Q1 2027 and the office portfolio in 2027, likely later in the year. Questions also centered on operator profitability, Belgium rent cover, Netherlands B2C conversions, and whether inflation or renegotiations were weakening tenant health; management said there is no current broad trend of operator distress, any renegotiations are incident-specific, and the Netherlands B2C model is being tested because it can lift rent income and valuation. There was also discussion of office discounts and whether synergies would offset dilution; management said they are not expecting high discounts, want at least EPS-neutral outcomes, and are modeling redeployment more than relying on synergies alone.