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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 positively driven by Aedifica's exchange offer, which has progressed with a formal request for approval filed with the Belgian Competition Authority. Robust operational performance also contributed to strong results, with EPRA Earnings reaching €185.8 million, a 4% increase compared to September 2024. A final decision from the BCA is anticipated within 55 working days, adding to the momentum. This development may alleviate uncertainty, potentially bolstering investor confidence.

1.c. Company Highlights

2. Cofinimmo's 2025 Earnings Report: A Strong Performance

Cofinimmo's financial performance in 2025 was robust, with a gross rental income of EUR 355 million, representing a 3% like-for-like increase. The company's net result from core activities, EPRA earnings, rose by 0.7% to EUR 246 million, exceeding guidance. The actual EPS came out at EUR 3.9, significantly higher than the estimated EUR 1.47. The company's strong financial foundation is reflected in its low average cost of debt of 1.5% and a debt-to-asset ratio of 42.8%. As Jean-Pierre Hanin stated, "the idea of returning to 0-interest rate environments is fading, and the current liquidity is more favorable compared to the last 2 years."

Publication Date: Feb -24

📋 Highlights
  • Healthcare REIT Merger: Finalized with Aedifica to create Europe's leading healthcare REIT, offering EUR 4.7 billion fair value portfolio (77% of total)
  • EPRA Earnings Growth: Rose 0.7% to EUR 246 million, exceeding guidance, with net result group share at EUR 213 million (+EUR 150M YoY)
  • Low-Cost Debt Structure: Maintained average cost of debt at 1.5% and debt-to-asset ratio of 42.8%, with EUR 185M new credit lines signed
  • Healthcare Portfolio Expansion: EUR 4.6 billion invested since 2018, achieving 90.4% occupancy and 6% average net yields across 9 countries
  • 2026 Guidance: Forecasts EUR 6.35/share net result and 44% debt-to-asset ratio, with EUR 200M net investment and EUR 310M gross investments

Revenue Growth and Margin Analysis

The company's revenue growth was driven by its active portfolio rotation, which has transformed it into a leading European healthcare REIT. The healthcare portfolio, valued at EUR 4.7 billion, represents 77% of Cofinimmo's overall portfolio. The average net yields are around 6%, with yields stable across segments and geographies. Analysts estimate next year's revenue growth at 2.0%, indicating a continued stable performance.

Valuation Metrics

To understand what's priced into Cofinimmo's stock, we can examine its valuation metrics. The company's P/E Ratio is 4.72, indicating a relatively low valuation compared to its earnings. The P/B Ratio is 0.29, suggesting that the stock is undervalued relative to its book value. Additionally, the Dividend Yield is 6.83%, making it an attractive option for income-seeking investors. The Net Debt / EBITDA ratio is 9.37, indicating a significant debt burden, but the company's low average cost of debt mitigates this concern.

Outlook and Guidance

Cofinimmo expects to be a net investor in 2026, with opportunities on the market, while maintaining its LTV under control. The company has guided for a net result from core activities group share per share of EUR 6.35 and a debt-to-asset ratio of around 44% at the end of 2026. With its strong financial foundation and stable performance, Cofinimmo is well-positioned to navigate the challenges in the healthcare and office markets.

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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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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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
Cofinimmo

A-Score: 6.5/10

Value: 3.9

Growth: 2.3

Quality: 5.8

Yield: 10.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
LondonMetric Property

A-Score: 6.4/10

Value: 4.4

Growth: 5.7

Quality: 6.4

Yield: 8.8

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
MERLIN Properties

A-Score: 6.4/10

Value: 4.2

Growth: 4.0

Quality: 6.6

Yield: 7.5

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Covivio

A-Score: 6.1/10

Value: 3.9

Growth: 4.2

Quality: 3.9

Yield: 9.4

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
LandSec

A-Score: 6.0/10

Value: 4.4

Growth: 3.2

Quality: 6.2

Yield: 8.8

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Unite

A-Score: 5.3/10

Value: 4.5

Growth: 6.3

Quality: 6.2

Yield: 6.9

Momentum: 0.5

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

81.7$

Current Price

81.7$

Potential

-0.00%

Expected Cash-Flows