Home Invest Belgium Model update after 3Q24 and Brussels legislation

The 3Q24 results are slightly above our expectations on the back of an improved operating margin. The guidance of EUR 1.15 EPRA EPS is reiterated. Home invest is one of the best performers to date among Belgian REITs. However, in the last month there was profit taking and negative news on regulation. As of 01/11/2024, rent increases in Brussels (66% portfolio) are on hold for 9 consecutive years. This was already the case for the 3-6-9 contracts but now impacts short term contracts and tenant departures. Indexation (HICP) can still be passed on in full but is corrected for the energy level. The latter is one of the key strengths of Home Invest with its young portfolio at 115KwH. Given the strong fundamentals of the RESI market we were banking on a like-for-like rental growth of 1% above inflation in our model. We bring this down to 0.5% to account for the changes in the Brussels regulation. Furthermore we increase our operating margin and financial costs. EUR 18.0 TP and hold recommendation repeated.