BREF – 2025 Q3 review – Continued stability through Q3

Continued stability through Q3

• Rental income increased 24.1% to BGN 9.8mln. This is largely the result of new tenants to their Synergy Tower location, which at the end of Q3 2025 had 82.45% occupancy. We are expecting further utilization of the spaces in Synergy Tower in 2025 and in 2026.
• The BoD made a decision to sell the Mr Bricolage asset in Sofia (15,174 sqm area, lettable area 7,868 sqm, annual rental income BGN 1,243,900 (EUR 636,000) for EUR 18mln (bought in 2006 for EUR 6mln). 10% of the price was received as a deposit (BGN 3.5mln under short term liabilities) and BREF will continue to receive the rental income until deal finalization (deadline 10.11.2025).
• Operating Expenses marked an increase of 10.1% to BGN 3.9mln, which was driven by the slight rise in Management Fee and the larger areas, where tenants should be accommodated (Synergy Tower).
• Total expenses marked an increase of 5.8% YoY to BGN 4.5mln. The largest contributor for that was the growth of the repair and maintenance cost account, which is a consequence of the more leasable areas.
• Expenses to the servicing company increased 14.4% to BGN 1.12mln as a result of the increased assets under management. Interest expense decreased by 15.1% to BGN 0.615mln as a result of the decrease of LT debt by BGN 3.7mln.
• Net profit was BGN 5.4mln, reflecting a 43.4% increase YoY. The increase in rent and property management revenue played a major role here.
• Total assets grew YoY by 10.9%, while net debt decreased by 17.1%. Simultaneously, the company reduced its long-term debt significantly. The drop YoY was 16.5%, or BGN 3.7mln to reach BGN 18.9mln.
• Cash increased in Q3 2025 from BGN 3.29mln to BGN 3.94mln as the finishing works at Synergy Tower have practically concluded and the company is actively looking for tenants for the remaining spots.
• In our last quarterly review we expected a dividend of ca. BGN 0.10 per share to be announced on the GSM on 16.06.2025, which would be the result of the completed Mr. Bricolage deal. Our expectations were very close as the announced dividend was for BGN 0.107777899 representing a dividend yield of 2.18%.

Notable events:

• Ave Bulgaria Logistic – rented 431.28 sqm in Kambani Green Office till March 2028. Occupation at Kambani Green Office stands at 88.8%.
• Redis Bulgaria rented additional areas (1,368.63 sqm) of the entire 5th floor till Aug 2030 bringing total occupation at Synergy Tower to 82.45%.
• Skilline Business Solutions – rented 456.27 sqm for 3 yrs at Kambani Green Office location.
• Private elementary school “Canadian Bear” signed an agreement for additional areas in the Kambani Green Office until 15.09.2033.

Read the full report here.