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1. Company Snapshot

1.a. Company Description

Aedifica is a Belgian listed company that offers sustainable real estate solutions to professional operators that provide care to people with care needs throughout Europe.To realise that mission, Aedifica has specialised in investments in quality European healthcare real estate, with a particular focus on the care needs of the elderly.Aedifica has established itself in recent years as a leader in the European listed real estate sector and has the ambition to further expand this position in the coming years.


By investing in quality buildings that generate recurring and indexed rental income and offer potential for capital gains, Aedifica aims to offer its shareholders a reliable and sustainable real estate investment with an attractive yield.Aedifica is listed on Euronext Brussels (2006) and Euronext Amsterdam (2019).Since March 2020, Aedifica is part of the BEL 20, the leading share index of Euronext Brussels.

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1.b. Last Insights on AED

Aedifica SA's recent performance was driven by a robust operational performance, with EPRA Earnings* increasing 7% to €234.6 million or €4.93/share. Rental income rose 8% to €338.1 million, with a 3.3% increase on a like-for-like basis. The company's strong results exceeded budget, driven by efficient operations and a solid real estate portfolio. Aedifica's solid financials and growth prospects support its position in the Belgian real estate market.

1.c. Company Highlights

2. Aedifica's 2025 Annual Results: Strong Performance and Strategic Growth

Aedifica's 2025 annual results show a robust financial performance, with EPRA earnings increasing by 4% to EUR 244 million, or EUR 5.15 per share, driven by an 8% rise in operating result, mainly due to higher net rental income. The EBIT margin is strong at 87%, and the average cost of debt remains low at 2.1%. The actual EPS came out at '1.32', significantly lower than estimates at '5.05'. The company's debt-to-asset ratio stands at 40.8%, slightly below expectations, and the debt outstanding is EUR 2.5 billion.

Publication Date: Feb -16

📋 Highlights
  • Strong Financial Performance:: EPRA earnings rose 4% to EUR 244 million (EUR 5.15/share), driven by 8% operating result growth and a robust 87% EBIT margin.
  • Portfolio Growth and Stability:: Rental income increased 7% (2.7% like-for-like), with occupancy above 90% and average rent covers of 2.4x (UK) to 1.5x (Belgium).
  • Aggressive Investment Activity:: Acquired EUR 300 million in assets, exceeded targets, and expanded a EUR 276 million development pipeline with 6.5% yield-on-cost and 15% margins.
  • Conservative Debt Management:: 40.8% debt-to-asset ratio (EUR 2.5B debt), 2.1% average cost of debt, and strong leverage metrics (6.2x interest coverage, 7.8x net debt/EBITDA).
  • Cofinimmo Merger Progress:: EUR 300M portfolio divestment plan underway, with 18-year WAULT and EUR 370M 2026 rental income guidance (2.5% growth), supported by market confidence.

Operational Highlights

The portfolio's rental income increased by 7%, with a like-for-like increase of 2.7%, driven by 2.6% rent indexation and 0.4% positive rent reversion. The occupancy rate in the portfolio is strong, above 90%, with an average of 91% in mature care homes. Rent covers are also strong, with the UK at 2.4, Ireland at 1.8, Germany at 1.6, and Belgium close to 1.5. As the company mentioned, "the European healthcare real estate market is showing signs of improvement, with strong rent covers and occupancy rates back at pre-COVID levels."

Investment and Development Activity

Aedifica acquired standing assets worth almost EUR 300 million, more than expected, and delivered projects from its development pipeline in line with targets. The company's development pipeline is growing, with a focus on achieving yields on cost of 6.5% and development margins of 15%. The pipeline has increased to EUR 276 million, with a focus on Ireland, Finland, and the UK.

Guidance and Outlook

The company's stand-alone budget for 2026 assumes a rental income of EUR 370 million, up 2.5% from 2025, and an investment target of EUR 300 million. Analysts estimate next year's revenue growth at 3.8%. The average cost of debt is expected to be 2.1%. If Aedifica takes control of Cofinimmo, priorities will include integration, synergy realization, and asset disposals.

Valuation Metrics

Using the provided valuation metrics, Aedifica's P/E Ratio is 16.15, indicating a relatively high valuation compared to its earnings. The P/B Ratio is 1.02, suggesting that the stock is trading close to its book value. The Dividend Yield is 5.04%, which is attractive for income investors. The Net Debt / EBITDA ratio is 7.92, indicating a significant level of debt relative to EBITDA.

3. NewsRoom

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Aedifica NV/SA: 2025 annual results

Feb -13

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

Oct -28

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Assessing Aedifica (ENXTBR:AED): Is the Current Valuation Justified After Recent Share Price Movements?

Sep -09

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Aedifica NV/SA: 2025 half year financial report

Jul -30

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Aedifica NV/SA: Interim financial report – 1st quarter 2025

Apr -29

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Aedifica NV/SA: 2024 annual results

Feb -19

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Aedifica NV/SA: Interim financial report – Q3 2024

Oct -29

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Aedifica NV/SA: 2024 half year financial report

Jul -31

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.00%)

6. Segments

Healthcare Real Estate

Expected Growth: 14%

Aedifica SA's 14% growth in Healthcare Real Estate is driven by increasing demand for senior housing, aging population, and government incentives for healthcare infrastructure development. Additionally, the company's strategic acquisitions, strong property management, and diversified portfolio across Europe and North America contribute to its growth momentum.

7. Detailed Products

Nursing Homes

Aedifica SA provides high-quality nursing homes that offer a comfortable and safe living environment for elderly people, with 24/7 care and medical assistance.

Assisted Living Facilities

Aedifica SA's assisted living facilities offer a supportive environment for people who require some level of care, but still want to maintain their independence.

Home Care Services

Aedifica SA's home care services provide personalized care and support to individuals in the comfort of their own homes.

Day Care Centers

Aedifica SA's day care centers offer a safe and engaging environment for elderly people who require social interaction and stimulation during the day.

Hospitals and Clinics

Aedifica SA's hospitals and clinics provide high-quality medical care and treatment for patients with various medical conditions.

8. Aedifica SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Aedifica SA is moderate, as there are alternative options available for customers, but they are not highly attractive.

Bargaining Power Of Customers

The bargaining power of customers for Aedifica SA is low, as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Aedifica SA is moderate, as suppliers have some negotiating power, but the company has a diversified supply chain.

Threat Of New Entrants

The threat of new entrants for Aedifica SA is high, as the industry has low barriers to entry and new players can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry for Aedifica SA is high, as the industry is highly competitive and companies are constantly competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.94%
Debt Cost 3.95%
Equity Weight 61.06%
Equity Cost 8.01%
WACC 6.43%
Leverage 63.77%

11. Quality Control: Aedifica SA passed 2 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
CTP

A-Score: 6.9/10

Value: 5.0

Growth: 6.8

Quality: 7.0

Yield: 6.9

Momentum: 7.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
National Health Investors

A-Score: 6.8/10

Value: 2.8

Growth: 4.4

Quality: 7.6

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
NEPI Rockcastle

A-Score: 6.3/10

Value: 5.3

Growth: 6.4

Quality: 7.1

Yield: 10.0

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Aedifica

A-Score: 6.2/10

Value: 3.7

Growth: 3.4

Quality: 6.1

Yield: 8.1

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
CA Immobilien

A-Score: 5.5/10

Value: 4.1

Growth: 2.3

Quality: 5.5

Yield: 8.8

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Impact Healthcare REIT

A-Score: 5.1/10

Value: 4.7

Growth: 5.2

Quality: 7.3

Yield: 6.2

Momentum: 4.0

Volatility: 3.3

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

76.85$

Current Price

76.85$

Potential

-0.00%

Expected Cash-Flows