Brussels, November 20, 2023, 5:40 PM
NEXTENSA: EXPLANATION FROM THE BOARD OF DIRECTORS ON Q3 2023
• Hybrid model is paying off: Nextensa’s hybrid model, created 2 years ago, has shown its resilience in recent months in a difficult market. The investment properties help compensate for the delay in development activities.
A growth in rental income from the real estate investment portfolio is recorded. Rental income amounts to €52.6 million compared to €51.6 million last year, despite the sales of various buildings in 2022. This increase is mainly due to the signing of new lease agreements in Belgium and Luxembourg, the indexation of the current rental contracts, the 100% occupancy in Austria and the many events taking place on the Tour & Taxis site. This results in a like-for-like rental growth of 9%.
The operating result of the development projects amounts to € 10.9 million, which is € 4.8 million lower compared to the same period last year:
– Of the 346 apartments of Park Lane phase II at Tour & Taxis, 200 apartments have already been reserved or sold, which can without a doubt be called a success. The residential buyers of Tour & Taxis appreciate the ‘unique selling proposition’ that this site offers due to its mix of functions.
– Despite a decline in apartment sales in Luxembourg, the developments at Cloche d’Or are making a positive contribution of €8.7 million.
• Result: The net result (group share) amounts to € 21.8 M or € 2.18 per share compared to € 41.5 M or € 4.15 per share as of September 30, 2022. This difference is mainly due to non-cash effects in the income statement on 30/09, namely to the negative revaluation on 30/09 of the participation in Retail Estates based on the closing price and to the positive revaluation of the financial hedging instruments in 2022.
• Active financial management: Limited increase in financial costs (+ € 3.2 M) given the active hedging strategy (hedge ratio of 68% on 30/09/2023). The debt ratio of 44.85% limits the negative impact of rising interest rates on the results. Nextensa continues to work on further reducing this debt ratio, but the limited activity on the institutional real estate market makes this ambition difficult.
• Sustainable redevelopments: The portfolio was expanded in May 2023 with a building located at Avenue Monterey 18 in Luxembourg City, the neighbor of Nextensa’s Monterey 20 office building. A sustainable redevelopment of both buildings into a wooden office building of approximately 3,000 m² – inspired by the Monteco building in Brussels – is being prepared. In addition, the office building located at Montoyerstraat 24 in Brussels was also added to the investment portfolio in August 2023. The permit application for this redevelopment was submitted at the end of September. A resolute choice was made for a CO2-neutral office building in wood, again inspired by the design of the nearby smart Monteco building. In the run-up to this redevelopment, the building is still partly rented.
• Active internal management: Decrease in overhead costs by € 0.9 M or 10% compared to the same period last year, against the backdrop of an inflationary environment.
FOR MORE INFORMATION
Tim Rens | Chief Financial Officer
Gare Maritime, Picardstraat 11, B505, 1000 Brussels
+32 2 882 10 08 | [email protected]
Nextensa is a mixed real estate investor and developer.
The company’s investment portfolio is divided between the Grand Duchy of Luxembourg (44%), Belgium (41%) and Austria (15%); its total value amounted to approximately € 1.29 billion as of 30/09/2023.
As a developer, Nextensa is mainly active in shaping large urban developments. At Tour & Taxis (development of more than 350,000 m²) in Brussels, Nextensa is building a mixed neighborhood consisting of a revaluation of iconic buildings and new construction. In Luxembourg (Cloche d’Or) it is working in partnership on a large urban expansion of more than 400,000 m² consisting of offices, retail and housing.
The company is listed on Euronext Brussels and has a market capitalization of € 457.1 million (value 30/09/2023).
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