Home Invest Belgium Bullish EPRA EPS guidance of EUR 1.15 in FY24

Home Invest Belgium reports FY23 results slightly above our expectations. NRI increases 11.3% YoY on the back of 7.2% like-for-like growth. HOMI expects further top line growth above inflation due to strong market fundamentals like the 98.5% occupancy rate and close to 100% rent collection. In FY24 the focus is on portfolio rebalancing and delivering the committed projects. We increase our FY24 and FY25 EPS estimates by 4% and 5% respectively on the back of lower interest costs and a higher operating margin. However our EPS estimate remains slightly below the EUR 1.15 EPS guidance. We become more positive on the equity story but keep our HOLD recommendation for now due to the continued high leverage and payout ratio.