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1. Company Snapshot

1.a. Company Description

Cofinimmo has been acquiring, developing and managing rental properties for over 35 years.The company has a portfolio spread across Belgium, France, the Netherlands, Germany and Spain, with a value of approximately 4.5 billion EUR.With attention to social developments, Cofinimmo has the mission of making high-quality care, living and working environments available to its partners-tenants, from which users benefit directly.


“Caring, Living and Working - Together in Real Estate” is the expression of this mission.Thanks to its expertise, Cofinimmo has built up a healthcare real estate portfolio of approximately 2.6 billion EUR in Europe.As an independent company that applies the highest standards of corporate governance and sustainability, Cofinimmo offers its tenants services and manages its portfolio through a team of approximately 130 employees in Brussels, Paris, Breda and Frankfurt.


Cofinimmo is listed on Euronext Brussels (BEL20) and benefits from the REIT system in Belgium (RREC), France (SIIC) and the Netherlands (FBI).Its activities are supervised by the Financial Services and Markets Authority (FSMA), the Belgian regulator.

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1.b. Last Insights on COFB

Cofinimmo SA's recent performance was driven by a strategic merger with Aedifica, creating Europe's leading healthcare REIT. The deal, expected to generate annual cost savings of around $18.3 million, demonstrates the company's commitment to operational efficiency. This synergy is likely to enhance Cofinimmo's competitive position in the European healthcare real estate market. The merger's successful execution and anticipated cost savings are expected to have a positive impact on the company's financial performance.

1.c. Company Highlights

2. Cofinimmo Outperforms with Strong H1 2025 Results

Cofinimmo reported an impressive set of financial results for the first half of 2025, exceeding its outlook. The company's EPRA earnings rose 2.5% to €122 million, while the net result group share jumped to €112 million, up €70 million compared to H1 2024. Gross rental income increased by nearly 3% like-for-like, driven by a high occupancy rate and a long residual lease length of 13 years on average. The cost of debt remained stable at 1.4%, one of the lowest levels for REITs in Europe. The debt-to-asset ratio stood at 44.4% as of June 30.

Publication Date: Jul -28

📋 Highlights
  • Potential Merger with Aedifica: - The combination is subject to approval from Belgian, Dutch, and German competition authorities.
  • Strong Financial Performance: - EPRA earnings rose 2.5% to €122 million, with a net result of €112 million, up €70 million from H1 2024.
  • Portfolio Shift to Healthcare: - Healthcare now represents 77% of the €6 billion portfolio, while Offices were reduced to 15%.
  • Stable Financial Position: - Cost of debt remains at 1.4%, with a debt-to-asset ratio of 44.4% as of June 30.
  • Strong Market Performance: - Market capitalization increased by €800 million, with a 50% total shareholder return in H1 2025.

Financial Performance and Guidance

The company's strong financial performance led to an EPRA EPS of €3.19, higher than the outlook. The IFRS net result stands at €112 million, or €2.95 per share. Cofinimmo confirmed its 2025 guidance, expecting an EPRA EPS of at least €6.20 per share. The gross dividend outlook for 2025 is €5.20 per share. According to analysts, the company's EPS of €1.62 came out ahead of estimates of €1.57.

Segment Performance and Strategy

Cofinimmo's asset rotation strategy has led to significant growth in Healthcare, which now represents 77% of the €6 billion portfolio. The Office segment was reduced from 38% to 15%. The Healthcare segment, led by Sebastien Berden, has consolidated its leadership position within the European Healthcare sector, with a strategic geographic expansion and diversification across various Healthcare segments.

Valuation and Outlook

At current prices, Cofinimmo trades at a P/E Ratio of 25.99, a P/B Ratio of 0.8, and a Dividend Yield of 8.21%. The EV/EBITDA multiple stands at 24.96. With a stable debt profile and a strong track record of growth, the company's valuation appears attractive. As Jean-Pierre Hanin mentioned during the earnings call, "Cofinimmo's rating could improve by one notch after completing a transaction."

Market Trends and Outlook

The company is seeing a robust business with an increasing occupancy ratio in its office segment. While there has been no significant change in discussions, Cofinimmo remains active in the market. The letting market in Brussels CBD is polarized, but Cofinimmo is on budget, and its Montoyer 10 asset is moving according to plan. Large lease maturities are coming into the office portfolio over the next 6-12 months.

3. NewsRoom

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Aedifica NV/SA: Interim financial report – 3rd quarter 2025

Oct -28

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LVMH: Share transactions disclosure

Sep -09

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The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

Sep -09

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Cointreau Launches First-Ever Ready-To-Serve Range – Introducing Cointreau Citrus Spritz

Sep -09

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What Does the Steep 20% Drop Mean for Rémy Cointreau’s 2025 Outlook?

Sep -09

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Société Foncière Lyonnaise (ENXTPA:FLY): Assessing Valuation After a Year of Solid Share Price Gains

Sep -09

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Minor Hotels Europe & Americas (BME:NHH): Exploring Valuation After Steady Share Performance

Sep -09

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What Recent Earnings Mean for Forvia’s 2025 Value Prospects

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.12%)

6. Segments

Healthcare Real Estate

Expected Growth: 7.95%

Cofinimmo SA's 7.95% growth in Healthcare Real Estate is driven by increasing demand for healthcare services, aging population, and government initiatives to improve healthcare infrastructure. Additionally, the company's strategic acquisitions, strong property portfolio, and long-term rental agreements with healthcare operators contribute to its growth.

Offices

Expected Growth: 4.83%

Cofinimmo SA's 4.83% office segment growth is driven by increasing demand for high-quality office spaces, particularly in Brussels and Paris. Strong economic growth, low unemployment, and a growing services sector contribute to rising rents and occupancy rates. Additionally, Cofinimmo's strategic acquisitions and development projects enhance its portfolio, further fueling growth.

Property of Distribution Networks

Expected Growth: 5.6%

Cofinimmo SA's 5.6% growth in Property of Distribution Networks is driven by increasing demand for healthcare services, an aging population, and a growing need for modern healthcare infrastructure. Additionally, strategic acquisitions, efficient asset management, and a strong balance sheet contribute to the company's growth momentum.

7. Detailed Products

Office Buildings

Cofinimmo SA offers high-quality office spaces for rent, providing a comfortable and productive work environment for businesses.

Healthcare Real Estate

Cofinimmo SA provides specialized healthcare properties, including nursing homes, hospitals, and medical offices, designed to meet the specific needs of healthcare providers.

Distribution Centers

Cofinimmo SA offers strategically located distribution centers, providing efficient logistics and storage solutions for businesses.

Retirement Homes

Cofinimmo SA develops and manages retirement homes, offering comfortable and supportive living environments for seniors.

Nursing Homes

Cofinimmo SA provides specialized nursing homes, offering 24/7 care and support to elderly residents.

8. Cofinimmo SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Cofinimmo SA operates in the healthcare real estate sector, which has a moderate threat of substitutes. While there are alternative investments available, the company's focus on healthcare real estate provides a unique value proposition.

Bargaining Power Of Customers

Cofinimmo SA's customers are primarily healthcare providers and operators, who have limited bargaining power due to the company's strong market position and diversified portfolio.

Bargaining Power Of Suppliers

Cofinimmo SA's suppliers are primarily construction companies and contractors, who have a moderate level of bargaining power due to the company's scale and negotiating power.

Threat Of New Entrants

The healthcare real estate sector has high barriers to entry, including regulatory hurdles and significant capital requirements, which limits the threat of new entrants.

Intensity Of Rivalry

The healthcare real estate sector is highly competitive, with several established players competing for market share, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.10%
Debt Cost 3.95%
Equity Weight 56.90%
Equity Cost 7.44%
WACC 5.93%
Leverage 75.75%

11. Quality Control: Cofinimmo SA passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
MERLIN Properties

A-Score: 6.4/10

Value: 5.8

Growth: 4.0

Quality: 6.9

Yield: 6.9

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
LondonMetric Property

A-Score: 6.4/10

Value: 4.5

Growth: 5.7

Quality: 7.3

Yield: 8.8

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Cofinimmo

A-Score: 6.4/10

Value: 4.8

Growth: 2.3

Quality: 5.9

Yield: 10.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Covivio

A-Score: 5.7/10

Value: 4.0

Growth: 4.2

Quality: 3.9

Yield: 9.4

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
LandSec

A-Score: 5.7/10

Value: 4.5

Growth: 3.2

Quality: 6.2

Yield: 8.1

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Unite

A-Score: 5.6/10

Value: 4.5

Growth: 6.3

Quality: 6.2

Yield: 6.9

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

76.7$

Current Price

76.7$

Potential

-0.00%

Expected Cash-Flows