CA Immo reports solid first-quarter performance in 2025 despite ongoing portfolio streamlining

CA Immo has reported a strong start to the year, delivering improved operational results in the first quarter of 2025, despite a continued strategy of disposing non-core assets. The company recorded growth across key performance indicators, supported by higher rental income and disciplined cost management.

Net rental income rose by 12% year-on-year to €54.1 million, largely due to increased income from investment properties and the successful completion of development projects. Recurring earnings (FFO I) reached €34.2 million, representing a 28% increase compared to the same period last year. EBITDA was up 33% to €49.1 million, while consolidated net profit rose by 40% to €22.5 million.

The occupancy rate for CA Immo’s investment portfolio increased slightly to 93.5% by the end of March, up from 93.1% at the end of 2024. Leasing activity totalled around 35,000 sqm in the quarter, with achieved rents averaging approximately 16% above estimated rental values. Around 22% of the vacant space at the reporting date has already been leased with future occupancy scheduled.

The company’s development pipeline progressed in line with expectations. Two office buildings are under construction near Berlin’s main train station—Upbeat, which is fully pre-let and on track for completion in early 2026, and Anna Lindh Haus, which broke ground in late 2024. Preparations for additional projects in central Berlin are underway, including two new developments and a refurbishment of an existing asset.

Three properties were sold in the first quarter: one office property each in Budapest and Warsaw, and a parking garage in Cologne. These sales were part of a broader capital rotation strategy aimed at focusing on core assets. Since the reporting date, CA Immo has sold its final asset in Serbia and a hotel property in Berlin, and has signed agreements to sell five additional assets, including land plots in Munich, a logistics asset in Berlin, and an office property in Vienna.

Despite these disposals, rental income rose by 7.1% to €68.5 million. This increase was attributed to gains from retained investment properties, which offset the impact of sales and asset reclassifications. Indirect expenses declined by over 21% to €8.8 million, primarily due to reduced personnel costs.

The company’s total property assets amounted to approximately €4.9 billion at the end of March, compared with €5.0 billion at year-end 2024. Investment properties represent 85% of the total, with the remainder in developments or held for sale. Germany continues to account for the largest share of the portfolio at 69%, followed by Central and Eastern Europe at 26%, and Austria at 5%.

CA Immo’s balance sheet remains strong, with an equity ratio of 42.3%, net loan-to-value (LTV) of 34.7%, and cash and deposits totaling €897.9 million. The IFRS NAV per share rose to €26.65, while EPRA NTA per share reached €32.22.

Looking ahead, the company is closely monitoring market conditions amid elevated interest rates and political uncertainty, including trade policies affecting European economic performance. CA Immo anticipates further divergence in office market performance, with central, high-quality assets expected to retain value better than peripheral or ageing stock.

The company is also exploring unsolicited interest in its CEE portfolio and may consider a full or partial exit from Austria and CEE depending on pricing and investor appetite. While no final decision has been made, CA Immo remains committed to selling assets that do not align with its long-term strategic focus.

Strategic priorities for 2025 include simplifying the business model, scaling in core markets, continuing development of income-producing assets in Berlin and Munich, maintaining financial discipline, and returning capital to shareholders. The company’s full-year FFO I target will be published with the second-quarter results.