Texaf FY25 Results: Robust real estate drives +3% recurring operating profit

In FY25, TEXAF delivered solid results amid a complex DRC environment, marking its 100th anniversary with continued resilience. Real estate, the group's core driver, performed strongly with rental income up 13% to €30.8m. This was supported by full-year contributions from Promenade des Artistes and Silikin Village III, a near-100% residential occupancy, and 95% office occupancy. Like-for-like growth was 2.7%. The quarry segment struggled with a 17% revenue decline to €4.2m due to a 26% drop in average selling prices despite 10% volume growth. This resulted in an operating loss of €0.5m. The digital segment achieved its first positive operating result at Silikin Village (proof-of-concept), though data center commercialization lagged expectations. TEXAF's model remains anchored in euro-denominated rents to high-quality tenants (embassies, international organizations, diplomats). With new projects underway the group is well-positioned for sustained real estate expansion. We maintain our BUY rating and €45.0 target price, pending the full year report.