BREF – 2025 review

2025 Q4 review – Mladost IV asset sold out

• Rental income increased 21.6% to EUR 6.7mln. This is largely the result of new tenants to their Synergy Tower location, which at the end of Q4 2025 had 82.59% occupancy. On a Q4 to Q3 comparison, rental revenues decrease 4% to EUR 1.677mln due to the lack of rental revenues from Bricolage. We are expecting further utilization of the spaces in Synergy Tower in 2026 and increase in rental revenue as well as additional rental indexation with 2.5-3.5% as per inflation stats.
• The 134% spike in total revenue comes from the sale of the Mr Bricolage asset in Q3 2025, which we’ve covered previously.
• Further, BREF entered into a contract to sell the investment property in Mladost IV for EUR 2.8mln. 10% of it were received as a prepayment, the deal will be finalized in March 2026. Most likely scenario is a dividend distribution and no further loan repayment. They expect 2026 to repay EUR 1.28mln as per schedule.
• The fund has 2 more inactive assets with a total appraised value of EUR 2.5mln, but considering their locations, a possible sale would require greater haircut (ca. 5% of the Mladost IV property from its appraisal value).
• Total Expenses marked an increase of 513% to EUR 19mln, which was driven by the rise in Expenses to the servicing company (over 4x increase to EUR 3.7mln influenced by the sale of the Bricolage property) and one off EUR 12.6mln as Value of sold assets.
• Net profit was EUR 12.5mln, reflecting a 19.9% increase YoY. Major contributor was the sale of the Bricolage property and overall rent increase.
• Total assets grew YoY by 10.9%, while net debt decreased by 50.1%. The company used a portion of the sale of the Bricolage property to repay existing debt, which also resulted in lower interest expense.
• Cash increased in 2025 from EUR 3.8mln to EUR 10.8mln as the finishing works at Synergy Tower have practically concluded and the company is actively looking for tenants for the remaining spots.

Notable events:

• C3I Europe – extension of 1,545 sqm in Business Park Sofia
• New Work Sofia Business Park EOOD – release of 636 sqm office space in Business Park Sofia
• Synergy Tower tenant Software AG used their break up clause for their 1,357 sqm space. INSAIT, an anchor tenant, however stepped in and will utilize 100% of that space. The tenant shift will take place in Q2 and will not affect the cashflow.
• 20 March 2026 – expected finalization of the Mladost IV deal
• Shortly after the finalization of the deal and the release of the audited financials for 2025, a GSM will be called, which will vote for a dividend distribution of the proceeds from the Mladost IV deal and the accumulated cash. The management expects the dividend to be in the EUR 0.23-0.28 per share range.

Full review can be downloaded here.