Carmila stock rises following strong 2024 earnings

Published 12/02/2025, 11:56
© Reuters.

Investing.com -- Shares of Carmila (PARIS:CARM) climbed 5% after the company announced its 2024 operating results, which showed a recurring earnings per share (EPS) of €1.67, marking a 4.5% increase YoY. The results slightly surpassed the management’s guidance of €1.65 and matched analysts’ predictions.

Carmila’s performance was bolstered by a robust like-for-like rental growth of 4.2% YoY, which outpaced previous quarters, and a 3.4% increase from indexation. Retailer sales and footfall also saw upticks of 1.8% and 0.6% respectively, with the latter focusing on the company’s top 50 centers.

These positive trends were attributed to the strong performance of Carrefour (EPA:CARR) hypermarkets. Additionally, leasing rates showed a positive reversion of 3.0%, and the rent collection rate improved to a record high of 97%, up 50 basis points YoY.

The company’s 2024 EPRA Net Tangible Assets (NTA) per share reached €26.1, an 11% increase compared to the first half of the year and 1% higher than analyst estimates. This rise was driven by the successful integration of Galimmo, which positively impacted asset values. Despite a mixed regional performance, France led with the strongest valuation recovery. The portfolio net initial yield stood at 6.57% at the end of the fiscal year, up 15 basis points YoY.

The acquisition of Galimmo, completed in July 2024, has already proven to be accretive, contributing 5% annually to recurring earnings and EPRA Net Disposal Value (NDV). Carmila’s investment in the acquisition was approximately €300 million, at an acquisition price of €9.22 per share, representing a 38% discount to NDV.

Looking ahead to 2025, Carmila’s management anticipates a recurring EPS increase of 4.8% YoY to €1.75, aligning closely with analyst expectations of €1.76. This forecast is supported by expected solid indexation and the full-year impact of the Galimmo acquisition, although it may be slightly tempered by higher financing costs.

Furthermore, the company plans to initiate a third €10 million share buyback program in February 2025, following the successful completion of two previous buybacks in 2024.

Bernstein, a market analyst, commented on the results, stating, "Carmila reported a solid set of results, with all numbers in line with expectations." This analyst sentiment reflects the market’s positive reception to Carmila’s financial disclosures and strategic moves.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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