Premia Properties targets €1B portfolio as profitability gains momentum

According to the analysts, the real estate investment company’s strategy focuses on generating stable, long-term income through a diversified property portfolio that has expanded significantly over the past five years.

The company has demonstrated its ability to identify and acquire high-yielding properties, maintaining its portfolio’s gross yield consistently above 7% while keeping occupancy levels close to full capacity.

Recent investments are expected to significantly boost profitability and shareholder distributions over the next two years, while management’s ambitions extend over a longer time horizon. Support from the company’s key shareholders has also been instrumental in its growth, with their contributions of capital, properties and expertise strengthening its development prospects. At the same time, they have helped broaden the shareholder base and increase trading activity in the company’s shares.

Investment Portfolio Grows More Than Sevenfold Since 2020

Since Sterner Stenhus acquired control of Premia in 2020, the total value of its investment properties has increased more than sevenfold, reaching €755 million in the first half of 2026. This expansion has created a substantially larger and more diversified company, with growing opportunities to capture synergies and improve operational efficiency.

Growth has been driven by acquisitions, developments and strategic partnerships, with hotels and student accommodation now serving as the company’s main expansion pillars.

The agreed transaction involving the AKTI hotels, which is expected to be completed by the end of 2026, is projected to increase the total value of the investment portfolio to close to €1 billion. Upon completion, hotels will account for more than half of the portfolio.

Meanwhile, the income-generating student accommodation portfolio is expected to nearly double in the second half of 2026, reaching 765 units. This represents an intermediate milestone towards the company’s target of building a portfolio of 2,000 student accommodation units.

EBITDA Growth and Dividend Doubling by 2030

Premia expects full-year 2026 adjusted EBITDA to increase by 20%–24%. Profitability is forecast to accelerate further in 2027, as recent investments, including the AKTI hotels, begin contributing to financial results.

Over the 2026–2030 period, forecasts point to average annual growth in adjusted EBITDA of approximately 20%, a doubling of the dividend per share and an average annual total return on net asset value (NAV) of around 8.7%.

Returns are supported by the company’s relatively high leverage. At the end of the first half of 2026, the net loan-to-value ratio (Net LTV) stood at 62% and is expected to rise to approximately 68% following the financing of the AKTI hotel transaction.

Capital recycling through the disposal of mature investments could provide an additional source of funding for new acquisitions. However, sustaining strong net portfolio growth without compromising financial strength will also require additional equity capital.

Premia’s strategic shareholders have consistently supported the company’s growth trajectory, while minority shareholders have had the opportunity to participate in capital increases, as was the case in 2021 and 2025. In addition, the oversubscription of the €150 million bond issue in April highlighted the company’s access to debt capital markets and demonstrated investor confidence.

Share Valuation and Upside Potential

Despite the prospects for higher profitability and dividends, Premia’s market valuation continues to reflect a discount to its net asset value. The stock offers a dividend yield of 4.7%, broadly in line with those of selected Greek real estate investment companies. At the same time, the shares trade at approximately 0.6 times NAV, compared with around 0.7 times for comparable companies in the sector.

This valuation is considered relatively low in view of the anticipated growth in earnings and distributions expected to result from the company’s existing investment programme. From 2028 onwards, forecasts indicate an annual total return on NAV of more than 10%.