European Residential Real Estate Investment Trust (TSE:ERE.UN) used its fourth-quarter 2025 results conference call to review progress on its portfolio disposition strategy, debt reduction, and ongoing plans to complete a wind-down of the business. Chief Executive Officer Mark Kenney and Chief Financial Officer Jenny Chou led the call, which did not include analyst questions during the Q&A portion.
Asset sales and capital return in 2025
Kenney said that in 2025 the REIT completed the sale of nearly 2,000 residential suites in the Netherlands, along with close to 300,000 square feet of commercial gross leasable area (GLA) in Belgium and Germany. He put total consideration for those transactions at EUR 490 million.
Additional dispositions and a smaller remaining portfolio
Management said disposition activity continued into 2026. Kenney noted that the REIT had sold or entered into agreements to sell an additional 410 suites for EUR 89 million so far in 2026.
As a result of 2025 and early 2026 transactions, Kenney said the portfolio has been reduced from approximately 3,000 units at the beginning of 2025 to a remaining 619 residential suites and just over 100,000 square feet of ancillary retail space in the Netherlands. He characterized the remaining assets as “an attractive integrated portfolio for sale.”
Operating metrics: AMR growth, NOI margin, and occupancy
Despite the shrinking portfolio, Kenney highlighted operating performance for the remaining assets. He said the portfolio produced 5.9% growth in same property occupied AMR to EUR 1,458 as of year-end, and that the REIT’s same property NOI margin was 72.3% in 2025.
Kenney also addressed occupancy, noting that total residential occupancy declined to 90.6% as of December 31, 2025. He described the lower occupancy as a deliberate outcome tied to “elevated vacancies” associated with the REIT’s “value surfacing disposition strategy.”
Balance sheet positioning and liquidity
Chou said the REIT has been actively managing leverage and coverage ratios to maintain compliance with all covenants. She reported EUR 37 million in available liquidity at year-end.
Chou also noted that the REIT has no mortgages maturing in 2026. She said this provides financial flexibility to continue advancing the disposition strategy while managing “tax and structural matters prudently.”
Path toward a potential final transaction
With most of the portfolio sold or under contract, Kenney said the REIT is positioned to pursue a potential final transaction for the remaining assets. He added that the REIT continues to work with BMO Capital Markets as its financial advisor.
Kenney said management is reaffirming its commitment to completing the wind-down “with discipline and transparency” and with the interests of unitholders as the priority.
- 2025 dispositions: Nearly 2,000 Netherlands suites and ~300,000 sq. ft. of commercial GLA sold for EUR 490 million
- Debt reduction: EUR 245 million in mortgage debt repaid; leverage ratio 30.5% at year-end
- Capital return: Special cash distribution of EUR 0.90 per unit
- 2026 activity to date: 410 additional suites sold or under agreement for EUR 89 million
- Remaining portfolio: 619 suites plus just over 100,000 sq. ft. of ancillary retail in the Netherlands
No questions were asked during the call’s Q&A session. Kenney closed by inviting investors to contact the company with additional questions.
About European Residential Real Estate Investment Trust (TSE:ERE.UN)
European Residential Real Estate Investment Trust – ERES is an unincorporated, open-ended real estate investment trust. ERES’s REIT units are listed on the TSX under the symbol ERE.UN. ERES is Canada’s only European-focused multi-residential REIT, with a current initial focus on investing in high-quality multi-residential real estate properties in the Netherlands. ERES owns a portfolio of 137 multi-residential properties, comprised of 5,865 suites and ancillary retail space located in the Netherlands, and owns one office property in Germany and one office property in Belgium.
