Eurobank property portfolio gets smaller but its value inches ahead
Eurobank, one of Greece’s top four lenders, reduced the size of its investment real estate portfolio in the first half of the year but the total value of properties held rose, supported by improving market conditions.
In a presentation of its first half earnings, Eurobank said that its real estate investment portfolio has 197 assets, mainly consisting of retail, supermarkets and offices, with a market value of 1.36 billion euros. At the end of last year, the bank held 202 investment properties valued at 1.33 billion euros.
The occupancy rate of its properties is at 94 percent and the gross yield on assets at 7.2 percent, largely unchanged from the end of 2020.
Greece’s rebounding economy is helping support growth in real estate, with demand for prime commercial assets picking up, particularly regarding offices, logistics and mixed use sites. After last year's contraction of 8.2 percent, the Greek economy is seen expanding at a pace of around 5 percent, economists say.
For the first half of the year, Eurobank reported a profit of 195 million euros, up 10.7 percent from the same period a year earlier.