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Introduction & Market Context
Cofinimmo SA (EBR:COFB), a leading Belgian real estate investment trust (REIT), presented its H1 2025 results on July 25, 2025, showcasing continued progress in its strategic transformation toward healthcare real estate. The company reported solid financial performance with its net result from core activities up 2.4% compared to the previous year, outperforming its own outlook. Cofinimmo’s stock closed at €76.20 on July 24, near the upper end of its 52-week range of €51.75-€79.55.
The company has maintained its strong position in the European healthcare real estate market, with 77% of its €6.0 billion consolidated portfolio now invested in healthcare properties across nine European countries, reflecting its long-term strategic shift away from office properties.
Quarterly Performance Highlights
Cofinimmo reported strong operational and financial results for H1 2025, with its net result from core activities – group share increasing by 2.4% to €122 million, exceeding the company’s outlook. The EPRA Earnings Per Share reached €3.19, despite the dilutive effects of divestments and capital increases totaling -€0.26 per share.
As shown in the following key performance metrics:
Gross rental income reached €177 million, representing a nearly 3% increase on a like-for-like basis. The company maintained an impressive occupancy rate of 98.6%, demonstrating the resilience of its portfolio and the quality of its tenant base.
The company’s like-for-like rental growth was positive across all segments, with healthcare real estate growing by 2.9%, offices by 2.2%, and property of distribution networks by 3.4%, resulting in an overall like-for-like growth of 2.8% for the total portfolio.
Strategic Initiatives
Cofinimmo has continued its strategic transformation from an office-focused REIT to a healthcare-dominated portfolio. This evolution is clearly illustrated in the following chart showing the dramatic shift in portfolio composition over the past two decades:
Simultaneously, the company has expanded its geographical footprint beyond Belgium to establish a pan-European presence. Healthcare assets are now distributed across nine countries: Belgium (21%), France (35%), Netherlands (15%), Germany (10%), Spain (9%), Finland (3%), Ireland (2%), Italy (5%), and the United Kingdom (TADAWUL:4280) (1%).
During H1 2025, Cofinimmo completed €36 million in gross investments, primarily in healthcare real estate, while executing €56 million in divestments, resulting in net divestments of €20 million. This capital recycling strategy aligns with the company’s focus on optimizing its portfolio and strengthening its healthcare real estate position.
Detailed Financial Analysis
Cofinimmo maintained a solid financial structure with a debt-to-assets ratio of 44.4% as of June 30, 2025. The company benefits from a very low average cost of debt at 1.4% and has maintained its BBB/Stable/A-2 rating from S&P, which was confirmed on March 25, 2025.
The company’s net asset value metrics according to EPRA standards show strong underlying asset values:
Cofinimmo has been active in sustainable financing, with multiple green bonds and sustainability-linked credit facilities. As of June 30, 2025, the company had €825 million outstanding under its Sustainable Notes Programme and several sustainability-linked credit lines totaling over €690 million.
The company’s debt structure is well-balanced between bonds and long-term commercial paper (32.5%) and bank facilities (67.5%), with well-spread maturities to minimize refinancing risk:
Sustainability Initiatives
Cofinimmo has positioned itself as a pioneer in sustainability, with ISO 14001 certification since 2008 and ambitious science-based targets for reducing the energy intensity of its portfolio. The company aims for a 30% reduction in energy intensity by 2030 (Project 303) and has already made significant progress, reducing from 190 kWh/m²/year in 2017 to 138 kWh/m²/year in 2024.
The company’s sustainability efforts have been recognized through multiple benchmarks and awards, including Green Star status with a score of 70%, inclusion in the Climate Leaders 2025 list, and various other sustainability certifications.
Forward-Looking Statements
For the full year 2025, Cofinimmo has confirmed its outlook for EPRA Earnings Per Share of at least €6.20 and a gross dividend of €5.20 per share, payable in 2026.
The company plans to continue its strategic focus on healthcare real estate with projected gross investments of €170 million for 2025, offset by planned divestments of €100 million, resulting in net investments of €70 million. This investment strategy is expected to be nearly neutral on the debt-to-assets ratio, which is projected to be around 43% by year-end.
Cofinimmo’s outlook for 2025 reflects its confidence in the continued execution of its strategy and the resilience of its healthcare-focused portfolio:
With its strong financial position, high-quality portfolio with long-term leases (weighted average residual lease term of 13 years), and strategic focus on the growing healthcare sector, Cofinimmo appears well-positioned to continue delivering stable returns to shareholders while advancing its sustainability objectives.
Full presentation:
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