Lighthouse/ Spanish Institute of Analysts | Rental income (€17.4 million; up 13.6% against 9M24) maintained its growth rate for two reasons: (i) organic growth of 6.5%, mainly due to price updates, and (ii) growth of 7.1% due to the impact of last year’s purchase of a 150-unit building that was not consolidated in 9M24. At the consolidated level, Cevasa recorded revenues of €19.0 million (up 12.4% against 9M24).
The recurring EBITDA margin for 9M25 in the property business reached 66.9% (down 3.6 p.p. against 9M24), with recurring EBITDA standing at €12.7 million (up 6.7% against 9M24). The decline in margins is explained by the consolidation of a new asset, whose margin is below Cevasa’s standard, due to a less efficient cost structure and higher portfolio renewal expenses compared to the previous year.
Total EBITDA (€14.4 million, up 20.4% against 9M24; including the non-recurring contribution from the residential development business) includes the impact of sales from a real estate development in L’Hospitalet (Barcelona), which contributed €0.9 million to the income statement, taking into account financial and marketing expenses. In 9M24, there was no income from this item. In 9M25, 23 homes were delivered in the l’Hospitalet development (1 unit in 3Q25), in addition to the 53 delivered in 2024, completing all 76 units in the development, with only a few storage rooms and parking spaces remaining for sale. Construction has continued on another development in Montgat (Barcelona) with 24 homes being marketed off-plan.
Cevesa continues to demonstrate its ability to increase its rents while maintaining high occupancy levels.
The start of the new development cycle, together with the updating of old rents from 2025 onwards, are the catalysts in the medium term. Cevasa is positioned in the Spanish real estate market as a conservative option with low risk. The share performance -12m up 6.8% (up 9.4% versus the sector) means that CEV is trading at a discount of 57.0% to NAV. We expect the development business to continue to be an additional catalyst in the coming years, with the delivery of one or two developments per year. Furthermore, given its low leverage, the purchase of rental assets in its main market should come as no surprise.
