From GlobeNewswire: 2025-02-12 17:00:00

European Residential Real Estate Investment Trust (ERES) announced its results for the year ended December 31, 2024. The REIT disposed of 3,267 suites in the Netherlands for €768.3 million and paid a special cash distribution of €1.00 per Unit in December 2024, funded by proceeds from dispositions. Operating metrics showed strong rental growth with an increase in Occupied Average Monthly Rents and a decrease in occupancy for both residential and commercial properties.

The REIT’s financial performance saw a decrease in Diluted Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) per Unit for the year ended December 31, 2024, compared to the prior year. Liquidity improved significantly due to proceeds from dispositions being used to repay the Revolving Credit Facility, resulting in lower leverage with an adjusted debt to gross book value ratio of 39.7%.

ERES has disposed of an additional 279 suites in the Netherlands for €56.2 million post-December 31, 2024, and the Board of Trustees approved a reduction in monthly distributions from €0.01 to €0.005 per Unit, effective January 2025. The Board also gained authority to sell assets, distribute proceeds to Unitholders, and wind-up the REIT without further approval.

Management expressed pride in the significant accomplishments of 2024, including strategic dispositions generating capital for a special cash distribution and balance sheet strengthening. CFO Jenny Chou highlighted debt repayment and improved operating metrics for 2024, with a focus on maximizing returns for Unitholders in 2025. Chair of the Board Gina Parvaneh Cody praised the REIT’s commitment to maximizing Unitholder value and expressed confidence in the management team’s ability to drive returns in 2025.

ERES reported strong rental growth with an increase in Occupied Average Monthly Rents for both residential and commercial properties. Suite turnovers and renewals were also highlighted, demonstrating the REIT’s ability to consistently operate in a challenging regulatory landscape. Same property portfolio performance showed a slight decrease in NOI for the three months ended December 31, 2024, but an increase for the full year, driven by higher monthly rents.

Financially, ERES reported a decrease in diluted FFO and AFFO per Unit for the year ended December 31, 2024, attributed to lower total portfolio NOI due to dispositions. Liquidity significantly improved, debt coverage metrics remained strong, and the REIT’s mortgage profile showed a weighted average term to maturity of 2.5 years and a weighted average effective interest rate of 2.27% as of December 31, 2024.



Read more at GlobeNewswire:: European Residential REIT Reports 2024 Annual Results