Cofinimmo Slower divestment pace pushes results ahead of guidance
The 3Q24 results are ahead of the initial guidance due to a slower divestment pace in the office portfolio. At 1H24 the target was changed to EUR 270.0m divestments and EUR 250.0m investments. Now the guidance has again changed to EUR 215m investments and divestments. This will allow to keep the debt-ratio at 44% by YE24. Now that fair value corrections are bottoming out (-0.20% in 3Q24) we believe the fear regarding the debt ratio has somewhat settled. The focus is now on the pay-out ratio and the FY25 dividend. In our model the dividend remains covered as the financial costs are hedged at 1.5% in FY25. However, all depends on the divestment pace. As this is slowing down, chances of a cut could decrease. Based on the fundamentals we keep our EUR 75.0 TP and BUY rating.Cofinimmo is a fixed capital real estate investment trust. Co. specializes in rental property. Its core investment segments are office property and nursing and care institutions. The portfolio also includes a Distribution property networks segment. Most of Co.'s assets are in Belgium. The foreign part consists of nursing homes/ clinics and the MAAF agencies network in France and the Pubstone portfolio in the Netherlands. Co.'s operations are organized into four segments: Offices, Nursing homes/Clinics, Distribution property networks, and Public-Private Partnerships.
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