Overview

* European Residential REIT Q3 operating revenue decreased 57.1%

* Company announced special distribution of €0.90 per Unit following asset sales

* Company ceased regular monthly distributions effective September 2025

Outlook

* Company continues to explore strategic alternatives for asset sales

* ERES anticipates distributing sale proceeds to unitholders after expenses

* Company has ceased regular monthly cash distributions as of September 2025

Result Drivers

* ASSET SALES - Disposition of 1,976 residential suites and commercial properties for €489.2 mln drove revenue decline

* RENTAL GROWTH - Occupied AMR increased by 4.7% due to indexation and turnover

* OCCUPANCY DECLINE - Same property residential occupancy fell to 90.8% due to intentional vacancies for value maximization

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EUR

Operatin 10.05

g mln

Revenue

Q3 NOI 65.20%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the residential reits peer group is "buy."

* Wall Street's median 12-month price target for European Residential REIT is C$1.25, about 16% above its November 4 closing price of C$1.05

* The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 66 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)