FREY: Revenues Up by 21%, But €650M in Acquisitions to Digest
FREY concludes 2025 in a position of strength. With revenues up by 21%, recurring business profits growing by 12.3%, asset portfolio increased by 24%, and dividends raised for the fourth consecutive year, the figures show an upward trajectory. However, beneath this impressive financial facade lies a significant challenge the group must face: the need to homogenize and synergize a now decidedly pan-European but potentially fragmented portfolio. The €650 million spent on acquisitions in 2025 are the drivers of this growth but also represent an unprecedented operational management test.
Financial Performance and Asset Integration
The group reports consolidated revenue of €231.4 million, up by 21%, including €158.5 million from gross rental income, up by 16.8%. Based on annualized rental income, organic growth stands at 4.1% on a like-for-like basis, versus 21% in reported figures. This significant difference indicates that the majority of the accounting progress stems from two major purchases in 2025: the acquisition of Designer Outlet Berlin for €245 million in May, and the entry into the capital of three Italian brand villages (Franciacorta, Valdichiana, Palmanova) for €410 million in August, as part of a strategic partnership with Cale Street Partners. Recurring business profits increased by 12.3% to €121.2 million, reflecting an improvement in operational margins, but the integration of new assets is just beginning.
Financial Stability Amidst Growth
FREY maintains its financial balance by strengthening its LTV ratio to 39.7% (compared to 41.1% at the end of 2024), with a medium-term goal of 45%. Available liquidity reaches €384 million, providing leeway to seize other growth opportunities. However, the cost of debt has risen to 3.1% in 2025 from 2.7% in 2024, indicating more expensive financing in a context of persistently high rates. The group now operates across 10 countries and manages more than 300 employees across about 40 sites. The 'One Jersey' project aimed at unifying the identity of these diverse teams under a single FREY banner represents more than just a branding challenge: it is a significant organizational challenge, as each acquisition brings its own culture, systems, and management teams.
Operational Efficiency and Future Prospects
The occupancy rate remains high at 97.4%, while rent reviews and re-lettings show an average increase of 4.2%. Tenant revenues have grown by 2.0%, driven particularly by a strong performance in the Iberian Peninsula (+4.7%), but the group suffers from the backlash of major works at Shopping Promenade Riviera, where traffic has decreased by 2.3% in France. FREY reports an EPRA NTA NAV of €1,124.7 million, up by 4.8%, supporting a dividend raised to €2.00 per share. The development pipeline reaches €591 million, with two major deliveries expected from the summer of 2027, likely to generate about €21 million in net rental income. It is on this foundation that FREY's demonstration that it is more than just an acquisition machine will rest: its ability to generate organic growth and synergize its new assets will determine its future valuation.
