Clariane - comment

Clariane continues to see operational improvement, with revenue, EBITDA, and occupancy rates all showing year-on-year growth.  On a country-specific basis, Germany's EBITDAR improved, showing the impact of the efficiency plan plus the higher occupancy rates and better pricing.  

Clariane are a business in transition, with 3 of the four pillars of the refinancing completed.  No further progress was made on the disposal program, the 4th pillar, which remains at 40% completion.  Management reassured the market, stating they are still actively pursuing several options to complete the €1bn target by the end of 2025.  

The other concern is the relatively high LTV, 63%, versus the covenant level of 65%.  The increase is due to a higher cap rate of 6.3%.  Cap rates were 5.9% in December 2023 and 5.5% in June 2023.  The plan is to reduce the real estate loan portion by 2025 to reach 55%, using the proceeds of the planned further asset sales.