Texaf 1H25 Results: Real estate thrives in DRC's though climate

In 1H25, TEXAF demonstrated resilience in Kinshasa's challenging market. Real estate, the core business, had a robust performance. Rental income surged 24.4% to €15.6m, driven by new projects like Promenade des Artistes and Silikin Village Phase III. The occupancy rate remained close to 100%. On a like-for-like basis, rental income rose by 2.3%. The quarry segment faced headwinds, with sales dropping 45% to €1.6m due to lower volumes and prices. However, net income remained positive. The digital segment turned profitable due to a non-recurring gain and contributed €0.3m in net income. TEXAF's business model is anchored in euro-denominated rents to ambassadors, politicians and international organizations. This shields it from DRC currency volatility and ensures reliable tenants. With new real estate projects set to launch, TEXAF is set to strengthen its dominant position in Kinshasa's high-end rental market. That said, the DRC's challenging environment continues to pose a significant, hard-to-quantify risk. We maintain our BUY rating and €45.0 target price.