08 Jun 2026
Trade Estates forecasts stronger operating performance in 2026
- RE+D Magazine
While Trade Estates anticipates growth in rental income and operating earnings in 2026, Funds From Operations (FFO) are expected to remain largely flat, as higher taxation and rising financing expenses are likely to absorb much of the improvement in operating performance.
During the company’s Annual General Meeting, management presented its guidance for the current year, forecasting a 4.6% increase in rental income to €43 million, while adjusted EBITDA is expected to rise by 3.8% to €32.5 million.
Despite the improvement in key operating metrics, Funds From Operations (FFO)—a key performance indicator for real estate investment companies and a metric closely linked to dividend-paying capacity—are projected to reach €22 million, remaining broadly unchanged compared with 2025.
Trade Estates Chief Executive Officer Dimitris Papoulis explained that the expected stagnation in FFO is driven by three main factors.
First, he noted that the tax burden for Greek real estate investment companies (REICs) is expected to increase, as the sector’s tax regime is linked to the European Central Bank’s policy rate.
Second, the company will be affected by the increase in Cyprus’ corporate tax rate from 12.5% to 15%, which will weigh on the returns generated by its property asset in the country.
The third factor relates to the commencement of the company’s investment project at Hellinikon, which requires a substantial capital commitment without generating immediate income. Management explained that the development phase will result in additional financing costs while producing no corresponding revenue stream.
Trade Estates’ investment at Hellinikon involves the development of a Big Box retail destination. The project has now entered the construction phase, with commercial operations expected to commence in the second half of 2029.