Retail Estates FY24/25 Results slightly below on lower investment volume

RET reported its FY24/25 results (March end) below our estimates. EPRA EPS amounted to EUR 6.21 vs. our expectation of 6.47. NRI grew 2.4% to 142.2m vs. 145.7m expected. Despite many bankruptcies, occupancy remained relatively stable at 97.3% from 97.6% at 1H24/25. The difference with our expectations results from lower net investments of EUR 16.7m than expected (80.0m) as the market for large properties remained slow. The debt ratio improved from 44.52% to 42.52%. RET confirmed its FY24/25 dividend of EUR 5.1, an 82% pay-out. The outlook for FY25/26 is for a 2.0% dividend growth vs. our expectation of 3.5%. The cost of debt declined to 2.08% from 2.30%. The FV of the existing portfolio grew by 2.0% to 2.07bn from FV uplift and net investments. The NTA increased to 80.87 from 78.15. We reduce our Buy to Accumulate, but maintain our EUR 76.0 target. The shares are still cheap on EPRA PE basis. Analyst meeting at 10h30.