Home Invest Belgium FY24 results and feedback analyst call

Yesterday evening Home invest reported its FY24 earnings and had an analyst call. The FY24 results and the FY25 guidance are perfectly in line with our estimates but below CSS. FY25 will be a year where historical asset rotation and renovation temporarily impact the EPS. Operationally the company continues to perform well with a record high operating margin at 76.8% (vs. 5y average at 72.2%) and 98.2% occupancy rate. We are however concerned regarding more rental regulation in the Brussels market that could dampen our topline growth. Despite the strong reference shareholder we think the pay-out ratio is too high. Still the portfolio yield is too low at 5.1% so further NTA uplifts are possible. We repeat our EUR 18.0 TP and HOLD recommendation.