Aedifica Refuelling the pipeline ahead of imminent BCA decision

Aedifica announced € 108.5m new healthcare investments across Europe in a mixture of new forward funded developments, extensions and acquisitions. Aedifica still awaits the approval of the Belgian competition authorities (BCA) to open its exchange period. In our timeline, a decision is expected by 15/01. As a remedy, Aedifica suggested € 300.0m Belgian asset disposals in the coming years. As argued in earlier notes (See: better too early than sorry), Aedifica needs new investments at 6.5% net yield (KBC estimate) to compensate the rental income loss from these disposals. This is a relatively high yield which can only be achieved with acquisitions, extension on existing assets and new developments in certain jurisdictions (UK/IRE/FI). The € 108.5m falls within these metrics at 6.0-7.0% yield so we support this deal. On operators: Argentum group restructured (+- 1.0% contractual rents) over 2025 and 22 premises were acquired by Lafayette Mittelstand Capital which continued operations under the same brand. BUY rating and € 78.0 TP reiterated.