Premia Properties stock faces hotel-led growth and funding risks

Premia Properties is positioning hotels and student accommodation as the next drivers of portfolio growth, while leverage and execution remain central risks for investors. In an analysis published on October 26, Edison Investment Research said the proposed acquisition of AKTI Hotels & Resorts could take the company’s total investments to about EUR 1 billion if completed by year-end. The research also highlighted the financing burden attached to the expansion.

Premia reported first-half 2026 revenue of EUR 21.7 million, up 21% from the prior-year period, while adjusted EBITDA rose 34% to EUR 15.0 million, according to Edison’s review. Funds from operations increased 15% to EUR 4.7 million, but net profit fell to EUR 7.1 million as property revaluation gains declined and financing costs increased.

Hotel deal changes the growth profile

The AKTI agreement covers three resorts in Rhodes and Kos. Edison expects the transaction to be completed by the end of 2026, with refurbishment and repositioning continuing through 2029. The analyst’s base case assumes the hotels are wholly owned and debt-funded, which would give Premia direct exposure to hotel revenue and operating costs rather than only contracted rental income.

Premia’s own website describes the company as a Greek real estate investment company focused on logistics, hotels, offices, schools, student accommodation, serviced apartments, wineries and retail properties. Its portfolio strategy combines acquisitions with refurbishment, conversion and long-term leasing.

Funding remains a key variable

Edison reported a net loan-to-value ratio of 61.8% at the end of the first half and forecast that it could approach 68% after the AKTI transaction. The research house expects the deal to support a significant increase in earnings from 2027, but noted that further growth may require additional equity. The terms of any future capital increase would therefore matter for existing shareholders.

The company guides for full-year 2026 revenue of EUR 42 million to EUR 43 million and adjusted EBITDA of EUR 29 million to EUR 30 million, as recent investments become income producing. Edison’s next listed event for Premia is the third-quarter 2026 financial report on November 12.

Premia’s place among Greek REITs

Premia owns and manages a diversified Greek property portfolio spanning income-producing and development assets, with growing exposure to hotels and student accommodation. Edison compares it with Greek real estate groups including BriQ Properties, Trade Estates and Trastor; Premia is more diversified than Trade Estates, which focuses on retail parks and logistics, while its property portfolio is described as substantially larger than BriQ’s despite similar market capitalisation. Its hotel strategy also sets it apart from more purely rental-focused peers.

For investors, the planned hotel expansion offers a route to higher operating income but increases sensitivity to tourism demand, project delivery, interest costs and future funding decisions. Premia’s ability to convert portfolio growth into recurring cash flow will be the key focus as the company approaches its next financial update.