Montea reported a 21.4% increase in rental income for the 2025 fiscal year, with receipts reaching €139.8 million. The company attributed the gain to an expanded portfolio, the effect of contractual indexation clauses and a programme of lease renegotiations.
Occupancy across the company's logistics estate remained at an elevated level, recorded at 99.8% for the year compared with 99.9% the prior year. Operating efficiency showed modest improvement: the operating margin rose to 88.9% from 88.5% in 2024. Financing costs eased slightly as the average cost of debt fell by 20 basis points to 2.1%.
On an earnings basis, EPRA Earnings increased by 13.6% to €112.8 million. EPRA earnings per share advanced 3.7% to €4.90. When isolating recurring performance by excluding one-off effects from the previous year, EPRA earnings per share grew by 7.7% on a clean basis.
Leasing activity in the back half of the year included agreements covering a total of 135,000 square metres, though momentum slowed notably in the fourth quarter when only 20,000 square metres were signed. Over the full year, Montea renegotiated leases totalling 250,000 square metres, achieving an average uplift in rent of 9%. Reported agreed rents were higher than the company's average estimated rental values.
Valuation trends improved in the second half of the year, with a positive portfolio revaluation of €44 million compared with €13.5 million in the first half. Overall, the portfolio was revalued up 0.7% for the year, which translated to an EPRA Net Initial Yield (NIY) of 4.8% - a decline of 30 basis points from the prior year.
Balance-sheet and net asset metrics showed gains: EPRA Net Tangible Assets (NTA) per share reached €81.6, a 5.2% increase year over year. The company reported an EPRA Loan-to-Value (LTV) ratio of 40.0%, down from 40.8% at the midpoint of 2025.
Looking ahead, Montea issued guidance for 2026 with EPRA earnings per share expected at €5.23 and a dividend per share set at €4.19, both described as slightly below market expectations. The company maintained its 2027 target of €5.60 in earnings per share.
Investment activity remained substantial: Montea invested in excess of €300 million during 2025 and has now deployed €747 million of the €1.15 billion growth plan covering 2024-2027.
Summary
Montea saw rental income climb 21.4% to €139.8 million in 2025, supported by portfolio growth, indexation and lease renegotiations. The group sustained very high occupancy, improved its operating margin slightly, and reduced its average cost of debt. EPRA Earnings and EPRA EPS increased during the year. Portfolio revaluations were stronger in H2, and the company provided 2026 guidance for EPS and dividend that is modestly below market expectations while reaffirming its 2027 EPS target.
Key points
- Rental income rose 21.4% to €139.8 million, driven by portfolio expansion, indexation and lease uplifts.
- EPRA Earnings increased 13.6% to €112.8 million; EPRA EPS was €4.90, up 3.7% (7.7% on a clean basis).
- Occupancy remained extremely high at 99.8%; portfolio revaluation improved in H2 with a total annual uplift of 0.7% and EPRA NIY at 4.8%.
Risks and uncertainties
- Fourth-quarter leasing slowed markedly to 20,000 square metres, which may signal variability in leasing momentum that could affect short-term rental growth - relevant to logistics real estate operators and investors.
- 2026 guidance for EPRA EPS and dividend is slightly below market expectations, introducing potential downside risk to investor returns and market sentiment toward the stock - relevant to equity investors and REIT-focused funds.
- A decline in EPRA NIY by 30 basis points from the prior year reflects yield compression that could affect valuation metrics and total returns for real estate portfolios - relevant to asset managers and fixed-income investors tracking property yields.