• Secured final permits for projects for a GDV¹ of EUR 804,8 million, a 266% increase compared to FY 2023, with 63% for residential projects. Total permitted project portfolio reached EUR 2 billion, on total portfolio of EUR 4.7 billion
• On track to deliver 1.315 apartments in 2024
• Rental income from long-term leases in line with annual objective of EUR 16 million² 
• Secured final lease agreements for over 56.000m² of office space, with tenants including the European Defense Agency, Engie and Motel One
• Sold majority of Brouck'R project office space to Nationale Loterij, sold River Place residential units to Ville de Luxembourg and residential units of OXY project are sold out
• Immobel withdraws from Proximus Towers acquisition incurring EUR 48 million impairment charge on the project
• Underlying EBITDA³ of EUR 14,1 million, underlying net result⁴ of EUR 4,3 million
• Liquidity position at EUR 166 million⁵
• Average debt cost at 3.8% with over 80% hedged or fixed up to mid 2026
• Total assets of EUR 1.6 billion (recorded at cost), impaired by EUR 93,4 million (6% of total assets), including Proximus project and with impairments reflecting the impact of real estate turndown
• Gearing ratio⁶ at 68%, with no corporate refinancing planned for 2024

The real estate market continues to face challenges. Persistently high interest rates, ongoing concerns about inflation control and geopolitical instability have hampered market activity in the past six months. In response to these market conditions, the company will maintain its focus on operational excellence, risk management and liquidity management to preserve a healthy balance sheet.

Business update

• Residential sales in Belgium continued to perform well with e.g. Oxy (sold out), Slachthuis and Ilot St Roch.
• 115 units of the River Place project were sold to the Ville de Luxembourg. Residential sales in Luxemburg and Germany remain weak but the company’s exposure is low in these markets. 
• Institutional investment market for offices remains at a standstill.
• The Nationale Loterij has agreed to purchase 6.800 m² of office space at Brouck’R, a prime mixed-use project in the heart of Brussels, marking it as their new headquarters from 2027. The purchase accounts for 65% of the total 10.700 m² of office space available in the development. 
• Office rentals’ have generated EUR 8,3 million⁷ in income during the first half of the year. The European Defense Agency (EDA) signed a usufruct agreement for office space (10.445m2) at The Muse, our project⁸ situated in the heart of Brussels’ European Quarter (Leopold district) while the long-term leasing contracts were confirmed for Engie (31.815m2) and Motel One (14.707m2) at the OXY project in Brussels. Immobel’s office buildings are characterized as green offices, distinguished by high energy efficiency and located in prime locations. These projects are in limited supply, with strong demand for leasing. 
• No less than 1.315 apartments will be delivered in 2024 including 550 residential units for the Granaria project in Poland and 490 units in several projects in Paris.
• The company decided not to exercise the call option on the Proximus Towers after intensive negotiations failed to reach a mutually acceptable solution. Given current market conditions and a purchase price of EUR 143 million, proceeding would significantly impact the company’s finances. An impairment charge of EUR 48 million was incurred, including a EUR 30 million payment to Proximus in December 2023. This adjustment will not impact the liquidity position and Immobel is exploring ways to maximise the recovery the impairment. 

Financial update

• The 1st HY 2024 results reflect the continued challenging environment to which the real estate market remains exposed. Underlying EBITDA was at EUR 14,1 million (internal view) and EUR 5,9 million (external view) with an underlying net result of EUR 4,3 million and a net result of EUR – 89,1 million.
• A EUR 93,4 million impairment was taken on EUR 1,6 billion of total assets (recorded at cost) which equates to 6% of total assets. The impairments reflect the decision to halt the Proximus project (EUR 48 million) and also reflect the weak real estate market in Luxemburg, Germany and France.
• A robust balance sheet and a sound liquidity position of EUR 166 million as of June 2024 continues to provide Immobel with a solid financial footing to continue the development of its existing portfolio.
• Immobel obtained final permits for a GDV of EUR 804,8 million, a 266% increase over FY 2023, with GDV of permitted projects expected to reach nearly EUR 2,0 billion by end FY 2024. Permits were obtained for e.g. Kiem and River Place in Luxemburg, Universalis Park 2 and Lebeau in Brussels, O’Sea fase 4 in Ostend and Slachthuis in Antwerp.
• As of end of June 2024, the gearing ratio stands at 68%. This figure also incorporates the financing of completed office spaces which are currently generating EUR 16 million in indexed rental income through long-term leases. A decrease in the gearing ratio depends on the divestment of offices to institutional investors, which is currently impeded by stagnant market conditions. Furthermore, Immobel employs various financial instruments, including interest-rate swaps, to hedge against exposure to variable interest rates. This risk mitigation approach contributes to maintaining an average cost of debt at 3,8%.

ESG update

In the first half of 2024, we made significant investments in ESG engagement and training opportunities for all our collaborators, as we believe our people are our greatest assets in achieving our ESG ambitions. We conducted sessions in various countries to raise awareness and foster engagement across the ESG spectrum.

Board of Directors

Astrid De Lathauwer (as representative of ADL Comm.V.) has resigned from the Board of Directors. Eric Donnet (as representative of Holding Saint Charles SAS) was appointed as new director on June 26. He joins the Board of Directors, the Investment Committee and the ESG Committee. The Board extends its sincere thanks to Ms. De Lathauwer for her dedication, commitment and valuable contributions to the company and wishes her all the best in the future.

>> Consult our half-year results here. 

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