Cofinimmo FY24 divestment plan completed, all office periphery assets sold

Yesterday Cofinimmo announced the completion of its EUR 215.0m FY24 divestment target. 2 offices are divested and 5 healthcare assets in Belgium and The Netherlands. This comes after Cofinimmo announced 85% of its divestment target was completed last week. At the time, the exact projects were however unknown and the share price did not move on the back of the positive news. All 3 Belgian elderly care assets were leased to Armonea and so it could be a package deal. The Parklane campus was the last office building of Cofinimmo in Brussels periphery. With the updated investment plan given last week, the debt-to-assets ratio of Cofinimmo at 4Q24 will amount to 43% with a limited investment program in the next 2 years of approximately 100m and ample headroom on its financial facilities. We think the market did not believe in the execution of the divestment program and underestimates the quality of the now remaining office portfolio. We repeat our BUY recommendation and EUR 75.0 TP.