Asset DepreciationCap rates continue to trend higher, leading to a fair value loss of €35.3M in the quarter and a decrease in IFRS NAV to €2.90/unit.
Interest Rate ImpactInterest expense headwinds continue to weigh on cash flow, with a significant portion of mortgage debt maturing at higher rates.
Valuation ConcernsERES continues to trade at a deep discount to NAV, with a price target reduced to C$3.00, reflecting interest expense headwinds.