Nextensa: Interim results per Q3 2023
REGULATED INFORMATION
Brussels, 20 November 2023, 5:40 PM
NEXTENSA: NOTES OF THE BOARD OF DIRECTORS ON Q3 2023
HIGHLIGHTS
• Hybrid model pays off: Nextensa’s hybrid model, which was created 2 years ago, has shown its resilience in a difficult market in recent months. The investment properties help absorb the slowdown in the development activities.
A growth in rental income from the investment properties is recorded. Rental income amounts to €52.6 million compared to €51.6 million last year and this despite the sale of several buildings in 2022. This increase is mainly due to the signing of new leases in Belgium and Luxembourg, to the indexation of ongoing leases, to the 100% occupancy in Austria and to the many events taking place at the Tour & Taxis site. This results in a like-for-like rental growth of 9%.
The operating result of the development projects amounts to €10.9 million, being €4.8 million lower compared to the same period last year:
- Of the 346 appartements of Park Lane phase II at Tour & Taxis, 200 have already been reserved or sold, which can undoubtedly be called a success. The residential buyers at Tour & Taxis appreciate the ‘unique selling proposition’ this site offers through its mix of features.
- Despite a decline in appartement sales in Luxembourg, the developments at Cloche d’Or made a positive contribution of €8.7 million.
• Result: The net result (group share) amounts to €21.8 M or €2.18 per share compared to €41.5 M or €4.15 per share at 30 September 2022. This difference is primarily due to non-cash effects in the profit and loss statement at 30/09, namely the negative revaluation on 30/09 of the participation in Retail Estates based on the closing price and the positive revaluation of the financial hedging instruments in 2022.
• Active financial management: Limited increase in funding costs (+ €3.2 M) given the active hedging strategy (hedge ratio of 68% on 30/09/2023). The financial debt ratio of 44.85% limits the negative impact of rising interest rates on the results. Nextensa continues to work to further reduce this debt ratio, but the limited activity on the institutional real estate market complicates this ambition.
• Sustainable redevelopments: The portfolio was expanded in May 2023 with a building located at Avenue Monterey 18 in Luxembourg City, the neighbour of Nextensa’s office building Monterey 20. A sustainable redevelopment of both buildings into a wooden office building of about 3,000 sqm - inspired by the Monteco building in Brussels - is being prepared. In addition, the office building located at Rue Montoyer 24 in Brussels was also added to the investment portfolio in August 2023. The permit application for this redevelopment was submitted at the end of September. A CO2-neutral wooden office building was chosen, again inspired by the design of the nearby smart Monteco building. In the lead-up to this redevelopment, the building is still partly let.
• Active internal management: Decrease in overhead costs by €0.9 M or 10% compared to the same period last year, against the background of an nevertheless inflationary environment.
FOR MORE INFORMATION
Tim Rens | Chief Financial Officer
Gare Maritime, Rue Picard 11, B505, 1000 Brussels
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ABOUT NEXTENSA
Nextensa is a mixed-use real estate investor and developer.
The company’s investment portfolio is divided between the Grand Duchy of Luxembourg (44%), Belgium (41%) and Austria (15%); its total value as of 30/09/2023 was approximately €1.29 billion.
As a developer, Nextensa is primarily active in shaping large urban developments. At Tour & Taxis (development of over 350,000 sqm) in Brussels, Nextensa is building a mixed real estate portfolio consisting of a revaluation of iconic buildings and new constructions. In Luxembourg (Cloche d’Or), it is working in partnership on a major urban extension of more than 400,000 sqm consisting of offices, retail and residential buildings.
The company is listed on Euronext Brussels and has a market capitalization of €457.1 million (value 30/09/2023).
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