Bullboard - Stock Discussion Forum European Residential REIT T.ERE.UN

Alternate Symbol(s): EREUF

European Residential REIT is a Canada-based open-ended real estate investment trust (REIT). The Company owns a portfolio of 157 multi-residential properties, comprised of approximately 6,750 suites and ancillary retail space located in the Netherlands, and owned one commercial property in Germany and one commercial property in Belgium. Its Commercial properties are located in Belgium and... see more

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TSX:ERE.UN - Post Discussion

European Residential REIT > TD

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Post by retiredcf on Feb 24, 2021 8:26am

TD

They have a $5.50 target. GLTA

European Residential REIT

(ERE.UN-V) C$4.25

Q4/20 First Look: Results in Line; 5% Distribution Increase Event

Q4/20 results. A conference call will be held at 9:00 a.m. ET today (1-800-898-3989; passcode: 8612870#).

Impact: NEUTRAL

FFO/unit (f.d.) of €0.035 was +10% versus Q4/19, and in line with our estimate (consensus: €0.04). AFFO/unit of €0.031 was also in line with our estimate.

Distribution Increase. The REIT announced a 4.8% increase in its annual distribution to €0.110, which was slightly ahead of our 3% forecast. The increase is effective March 2021.

Residential Operating Highlights

Q4 Stabilized NOI was +5.3% y/y; 2020 +3.9% (only 35% of suites) on a 1.9% increase in revenues and a 7.3% decline in expenses. Stabilized residential net AMR was +4.7% y/y to €909, led by gains in the regions of Utrecht (+8.1%) and Limburg (+4.0%). All regions reported positive AMR growth. Occupancy was +110bps y/y to 98.8%, led by Utrecht at +240bps. Stabilized NOI margin was +250bps y/y to 75.3%. Total portfolio occupancy was +110bps y/y to 98.3%, while the NOI margin was +250bps y/y to 77.1%.
Despite the pandemic, ERES continued to generate good growth on turnover. For 2020, ERES achieved 9.9% rent uplifts (2019: +7.4%), including 7.5% on liberalized suites (10.9% of suites), 2.9% on regulated suites (1.8% of suites), and 36.8% on suites converted into liberalized (1.4% of suites).
Commercial Portfolio occupancy remained stable at 100%, while net ABR was +3.5% y/y to €17.60.

Portfolio Update

On October 1, acquired a five-property portfolio aggregating 113 suites and 98 parking stalls for €26.3mm (~€233,000/suite). The REIT also completed the acquisition of an 84 suite property on December 1 for €22.3mm (~€265,200/ suite) and the acquisition of a 98 suite property on December 29 for €12.3mm (~€125,000/suite).
2020 acquisitions totalled 415 suites for €80.9mm (~€195,000/suite) with €45.0mm of mortgages (WAIR: 0.97%; WADM: 4 years)
65 suites are under renovation representing 64% of residential vacancy.

Balance Sheet/Other

As at December 31, ERES had liquidity of €102mm (€11mm of cash; €91mm undrawn on credit lines), down from €120mm reported in Q3.
Q4/20 leverage was 47.2%, +100bps q/q (WAIR: 1.61%; WADM: 4.4 years), owing to acquisition activity.

Reported a Q4 €4.4mm IFRS fair value gain (2020: €46.0mm)