Montea FIRST LOOK 1Q24 results : raises FY25 outlook on faster completions

Net Rental Income of EUR 27.2m came below our expectation of 28.1m. The 1Q24 EPRA EPS of 0.98 also came below our 1.01 expectation. We expected a bit more lfl growth and uplift from completions. However, Montea confirmed FY24 EPRA EPS to 4.55 (excl. FBI) and even raised FY25 EPRA EPS from 4.65 to 4.75 thanks to a faster expected completion of its pipeline. We are still awaiting the Tiel (NL, 91k GLA) permit. This could result in a pipeline acceleration FY25. Another positive effect is a flat Net Initial yield at 5.1% after a period of regular yield expansion. Debt% remains in the safe zone at 36.2% thanks to its ABB of EUR 126m at the end FY23. Despite a slow economic outlook, near-shoring and supply chain optimisation keeps demand for logistics space buoyant in their core markets. The price/NTA now stands around 10% premium. We maintain our Accumulate rating and TP of 90 EUR. Analyst call at 11h00 CET.