Aedifica Increases guidance to EUR 4.85 EPRA EPS

Aedifica reports results 1.8% above our EPRA earnings expectations and increases the FY24 guidance from EUR 223m EPRA earnings to EUR 231m (+3%) or EUR 4.85 EPRA EPS vs EUR 4.70 EPRA EPS previously. The difference in our model comes from slightly higher gross rental income and lower than expected financial costs. The gross rental income is driven by 3.2% like-for-like growth, above our expectations, of which +0.5% positive exchange rate differences. Active management of the investment program led to EUR 22.0m projects being withdrawn from the pipeline in 2Q24 which results in EUR 101m remaining development capex to be spent over FY24-27. The fair value corrections on the standing assets bottomed out over 1H24 driven by the UK market. The EUR 261m total development pipeline continued to have a -1.0% downward correction over 1H24. We repeat our ACCUMULATE recommendation and will update our model to reflect the new guidance.