CA Immo returns to profit in first half of 2025

CA Immo, the real estate company specialising in high-quality office space across Germany, Austria and Central and Eastern Europe, reported a return to profit in the first half of 2025, supported by higher rental income, lower indirect expenses and successful property sales.

The group’s net rental income rose 8 percent year-on-year to €105.8 million, reflecting completions of earlier development projects, stronger rental income from investment properties, and greater efficiency in rental operations. Total rental income increased by 2.3 percent to €124.2 million, offsetting declines linked to the disposal of non-strategic properties and the temporary reclassification of assets under refurbishment.

Operating profit (EBITDA) reached €89.4 million, up 15 percent compared with €77.5 million a year earlier. The consolidated net result stood at €31.3 million, a marked improvement from a loss of €49.1 million in the first half of 2024. Recurring earnings (FFO I) climbed 14 percent to €62.9 million, and CA Immo confirmed full-year guidance of more than €104 million (€1.08 per share).

CEO Keegan Viscius said the business had delivered stable performance despite a challenging market backdrop. “We grew net rental income by 8 percent and recurring earnings by 14 percent while maintaining a strong occupancy rate of 94 percent and reducing indirect expenses by 8 percent. Importantly, we returned to profit with a consolidated net result of €31 million,” he said.

The company’s active asset management strategy helped raise the portfolio occupancy rate to 93.9 percent as of June 30, compared with 93.1 percent at year-end 2024. Leasing activity covered about 67,800 square metres, achieving average rents 3 percent above expected rental values. Around 22 percent of the vacant space reported in June has already been leased with future start dates.

CA Immo’s development pipeline is concentrated in Berlin, where two major office projects are under construction. Upbeat, a fully pre-let office building near Berlin Central Station, is scheduled for completion in early 2026. Construction of Anna Lindh Haus began in late 2024, and preparations are underway for three further Berlin projects, including two new developments and one refurbishment.

Capital rotation remained active, with 11 non-core property disposals completed in the first half of 2025 at an average premium of 3 percent to book value. Transactions included the group’s final Serbian property, a Berlin hotel, a parking garage, and several plots for residential, logistics, or mixed-use. Additional disposals, including four properties already signed, are expected to close in the second half of the year. These moves reduced the portfolio to around €4.8 billion in total assets, down from €5.0 billion at the end of 2024, while improving its quality and focus.

CA Immo’s balance sheet remains solid, with an equity ratio of 42.7 percent and net loan-to-value (LTV) of 37.2 percent. Liquidity stood at €786.8 million in cash and deposits at the half-year mark. Net asset value (IFRS NAV) was €25.72 per share, slightly below the €26.37 recorded at the end of 2024.

Looking ahead, the company expects German office markets to remain divided, with prime central assets showing resilience while weaker properties face pricing pressure. With limited new supply under construction and steady demand, management anticipates falling vacancy rates over time. Strategic priorities remain focused on accelerating disposals, simplifying the business model, disciplined investment, and maintaining strong financing metrics.