Aedifica NV/SA, a Belgian healthcare real estate specialist, reported a 19 percent surge in first-quarter earnings after its successful exchange offer for rival Cofinimmo created one of Europe's largest healthcare REITs and triggered a credit rating upgrade from S&P.
The company's EPRA Earnings, a key profitability metric for real estate, reached €74.5 million, up from the prior-year period. The result was driven by a 22 percent climb in rental income to €113.4 million, reflecting both acquisitions and a 1.6 percent increase in like-for-like rental income. Aedifica's portfolio now boasts a 99.2 percent occupancy rate and a weighted average unexpired lease term of 15 years.
The strong operational performance comes as Aedifica integrates Cofinimmo, having acquired 80 percent of its shares on March 10, 2026. The move expands Aedifica's portfolio to €12.4 billion, with €11.0 billion concentrated in 923 healthcare properties serving nearly 80,000 people. The legal merger is set to be approved by shareholders in June and will take effect from July 1, 2026, a step the company says will accelerate the realization of synergies.
The Cofinimmo acquisition and robust finances prompted S&P Global Ratings to raise Aedifica's long-term credit rating to 'BBB+' with a stable outlook. The rating agency also assigned a short-term 'A-2' rating, citing the combined entity's enhanced scale and market leadership. This improved rating profile strengthens Aedifica's access to capital markets and has already been followed by the contracting of €150 million in new long-term bank financing.
The full legal merger planned for July 1 is the next major step in combining the two companies. Aedifica's management expects the full run-rate impact of synergies from the integration of teams and portfolios to be realized during 2027. The company's debt-to-assets ratio stood at a solid 40.4 percent as of March 31, 2026, slightly down from 40.8 percent at the end of 2025, demonstrating a disciplined approach to leverage during a major corporate action. With €1.82 billion of headroom on committed credit lines, the company has substantial liquidity to finance its €539 million investment pipeline.
The transaction solidifies Aedifica's position as a leading pure-play investor in European healthcare real estate, a sector with strong demographic tailwinds from an aging population. The combined portfolio spans nine countries, offering significant geographic diversification. In the first quarter alone, Aedifica announced €50 million in new investments and delivered four projects totaling €29 million, signaling continued growth even as it digests the Cofinimmo acquisition. The company's focus on long-lease terms and high occupancy in a non-cyclical sector provides a defensive foundation for future earnings growth.
This article is for informational purposes only and does not constitute investment advice.
