Aedifica's Post-Merger Integration Delivers Synergies as Portfolio Shifts to Pure-Play Healthcare

Half-year results show EPS growth, strong rent covers, and a clear roadmap to divest non-core assets.

AED.BR · Earnings Call · 2026-09-01

Integration and Synergies on Track

The defining story of Aedifica's half-year report is not the headline EPRA earnings beat, but the confirmation that the €4.2 billion merger with Cofinimmo is already generating tangible value. Management stressed that integration is progressing exactly to plan: “We are well on track in terms of integration. So ExCom and the Board of Directors are in place… we can confirm that we will reach at least EUR 16 million of run rate synergies in 2027, but already also expecting that in the course of this year, roughly EURO 5 million or even a bit above EUR 5 million of run rate synergies will already start kicking in, in 2026.” — Stefaan Gielens, Chief Executive Officer (CEO) · 2026-09-01 The mid-year results speak to this: EPRA EPS rose 5% to €2.71, while rental income jumped 62% as the combined portfolio took hold. The rent cover across the healthcare portfolio—now at 1.5x in Germany and 1.4x in Belgium—reflects an underlying operator performance that has fully recovered to pre-COVID levels, a point the CEO was keen to emphasise: “I think that we're now reaching the point I mentioned that I should stop talking about a market recovering from COVID… It's now a market that's going into, I think, more normal business mode.” — Stefaan Gielens, Chief Executive Officer (CEO) · 2026-09-01

A Deliberate Pivot Toward Pure-Play Healthcare

The most strategic shift is the divestment roadmap. The Belgian care home portfolio worth €300 million—required by competition authorities—is now in an off-market sales process with an ambition to land in Q1 2027. The CEO explained: “The main criteria will be deal certainty and timing… if you do not have the deal certainty we want coming out of the off-market talks, we still have the opportunity to switch to a structured process.” — Stefaan Gielens, Chief Executive Officer (CEO) · 2026-09-01 Similarly, the Brussels office portfolio is being prepped for a sale or a joint-venture with potential co-investors, though without a fixed timeline. Meanwhile, the pubs (or distribution network) remain on ice, yielding at 7.4% and not a priority. This asset rotation is meant to be EPS-neutral, with proceeds redeployed into higher‑growth healthcare markets such as Spain, Finland, and the U.K. The existing development pipeline, which will deliver over €450 million of pre‑let projects in the next 18 months, already provides a partial reinvestment outlet. What makes this pivot compelling is that it is not merely defensive. The company is actively seeking to expand its healthcare footprint, including the standing asset market and potential M&A. As the CEO put it: “There are a couple of asset managers sitting on portfolios that we know will be selling… there are some more private owned portfolios where we know because some of these people already reached out to us in the recent past that they contemplate on selling.” — Stefaan Gielens, Chief Executive Officer (CEO) · 2026-09-01 The team is clearly positioning for a larger, more focused entity.

Valuation Stability and a Cautious Yet Confident Outlook

Like-for-like valuations ticked up 0.25% for the full portfolio and 0.5% for healthcare, driven by operational gains in the U.K., the Netherlands, and Spain. This stability, combined with a like-for-like rental growth of 1.7% (1.9% for healthcare), gives management confidence to guide to full-year EPRA EPS of €5.35 and a DPS of €4.20—slightly ahead of consensus. The CFO noted that potential upside could come from faster synergy realisation or a stronger GBP, but the guidance already embeds a possible bond issue later this year that would add only €0.5‑1.0 million in financial charges while still keeping the EPS number intact. The solid cost of debt at 1.9% and a hedge ratio of 90% provide a comfortable cushion against rate volatility. Leverage, at 42.7% debt-to-asset, is at the top of the desired range, but management sees this as temporary and maintains a cap of 45%. One of the more intriguing revelations is the experiment in the Netherlands, where Aedifica is converting three assets from B2B to a B2C model—leasing directly to residents—which boosted like-for-like growth to 5.1%. The CEO admitted this could be replicated:

If you do it well, of course, it will have a positive impact on your rental income… and secondly, it has a positive impact on valuation… It's something that we think we might be doing more if this goes well in the portfolio in the Netherlands.
Stefaan Gielens, Chief Executive Officer (CEO) · 2026-09-01

In a sector increasingly defined by consolidation and scale, Aedifica is demonstrating that its merger is not just about size but about becoming a more agile, higher-quality owner. The road ahead—divesting non-core assets, recycling capital into pre‑let developments, and potentially inking new M&A—paints a picture of a company confidently steering its own future.