During 9M 2025, Equinox recorded sales growth of 10% YoY, EBITDA increase of 23%, and a net income of EUR 1.58m, a rise of 7% YoY. Furthermore, during Q3 2025, Equinox recorded revenue of EUR 2.27m, a 15% decline YoY, an EBITDA of EUR 1.85m, a 10% growth YoY, and funds from operations (FFO) of EUR 1.89m, a 13% increase YoY. In today’s quick overview, we’re giving you the details of these results.

Equinox, a leading Slovenian real estate company and a blue-chip member of the LJSE’s SBITOP index, published its 9M 2025 results and Q3 commentary last week. Today, we’re bringing you the highlights. Starting off at the top of the P&L, sales revenue amounted to EUR 6.85m, growing by 10% YoY, while the op. income amounted to EUR 6.89m, also increasing by 10% YoY. Turning our attention to Q3 results alone, revenue amounted to EUR 2.27m, declining by 15% YoY.

The Q3 revenue decline can be attributed to temporary, timing-related effects, with 3 main drivers:

1. The uHotel renovation and the Delo Tower ground-floor refurbishment were ongoing or completed in Q3, but haven’t contributed to revenue for the entire quarter.
2. These renovations typically require the closure of a certain number of rooms or facilities, reducing rental and hotel income during this period of renovations.
3. With some rooms completed in August, much of Q3 saw partial operational downtime.

In other words, the 15% decline marks a shift in the Company’s portfolio mix, as new assets came online. Equinox also mentioned its Fondul Proprietatea investment. More on this, the Company bought a >5% stake in Fondul in early September 2025. As this is a financial investment, it is excluded from the sales revenue.

On the other hand, the 10% growth YoY during the 9M period also came due to several factors:

1. Union hotel and other commercial properties had their renovations completed in 2024, contributing fully across early 2025, boosting H1 revenue before said refurbishments and renovations in Q3
2. Equinox reported a 100% occupancy rate in hotel and commercial assets, with rental indexation and ongoing rent increases continuing from 2024, even before uHotel’s new rent uplift, planned for 2026.
3. Equinox also cited favorable financing, stronger domestic demand, and real-estate price growth as part of its wider macro overview, influencing the Company’s results.

Turning our attention to the EBITDA, in 9M 2025, it amounted to EUR 5.38m, growing by 23% YoY, and implying an EBITDA margin of 78%, an 8.2 p.p. growth YoY, while in Q3, it amounted to EUR 1.85m, growing by 10% YoY, and implying an EBITDA margin of 81.2%, up 18.6 p.p. YoY. One other indicator, widely used in the real estate industry, is funds from operations, FFO. Funds from operations are calculated through a sum of net income and amortization, and it is used as a starting point for dividend payments. In fact, Equinox’s policy states that its dividend is based on a percentage of FFO, with the recent comments from management mentioning a rate of 50%. During 9M 2025, FFO amounted to EUR 5.06m, growing by 1% YoY, while the FFO margin amounted to 73.7%, declining by 6.5 p.p. YoY, mainly as a result of stagnant FFO growth during 9M and double-digit revenue growth during the same period.

EBITDA growth was recorded due to higher margin from stabilized assets, with all hotel and commercial properties fully leased by mid-year, and higher rent indexation and occupancy improving the op. income, positively influencing EBITDA. Earlier renovations, i.e., uHotel and Delo Tower, began contributing to rent and service income from Q2 onwards, with these assets being in a higher-margin segment compared to short-term rentals. Lastly, Equinox recorded solid portfolio management & financial discipline. The report itself implies tight cost discipline and operational focus on margin stability. As a result, Q3 benefited from a stronger mix, with more long-term leases and fewer one-off service costs.

Moving on to OPEX, in total it amounted to EUR 4.99m, declining by 7% YoY. The largest decrease was recorded in cost of goods, materials and services, which declined by 25% YoY to EUR 1.19m, mainly as a result of lower material and energy costs (EUR 313.3k during 9M 2025 vs. EUR 786.3k during the same period last year), amortization and depreciation remained roughly the same (EUR 3.5m, -1% YoY), while other op. expenses grew by 14% YoY to EUR 319.8k.

It should be noted that the financial income always plays a key role in the bottom line for Equinox, as the Company has rather large investments in various bonds, equity funds, and other financial instruments. In total, long-term financial assets amounted to EUR 15.6m at the end of September 2025, growing by 36% YoY. Short-term financial assets, meanwhile, comprised short-term loans, which amounted to EUR 3.1m, declining by 22% YoY, implying the repayment of certain loans back to the Company. The new investment in Fondul certainly played a key role in the asset base growth here.

On the other hand, liabilities also grew, increasing by 22% YoY to EUR 16.6m, driven primarily by increases in bank loans, with non-current loans growing by 24% YoY to EUR 10.1m, short-term bank loans growing by 8x YoY to EUR 279k. At the same time, the Company recorded a deferred tax liability of EUR 208.5k, vs EUR 0 during 9M 2024, as well as other current financial liabilities of EUR 1.17m, growing by 76% YoY. On the other hand, current trade payables to suppliers declined by 74% YoY to EUR 158.4k.

As a result of these changes, the financial income declined by 43% YoY to EUR 767.9k, financial expenses declined by 20% YoY to EUR 295.4k, leading to a net financial result of EUR 472.5k, a 52% decline YoY. Due to all of this, net income amounted to EUR 1.58m during 9M 2025, growing by 7% YoY, while the net income margin amounted to 23%, a 0.7 p.p. decline YoY.

Equinox key financials (9M 2025 vs. 9M 2024, EUR)

Source: Equinox, InterCapital Research