Retail Estates SA · EURONEXT:RET
Retail Estates SA — H1 2023-2024 Earnings Presentation
45 slides from Retail Estates SA's earnings presentation, December 2023
Slide 1: Half-yearly results as per 30 September 2023
Half-yearly results as per 30 September 2023
Slide 2: Agenda
IMPORTANT MILESTONES 3 RETAIL ESTATES IN NUMBERS 15 FINANCIAL RESULTS 24 2| RETAIL ESTATES
Slide 3: Important milestones 1998-2023
Important milestones 1998-2023 Independant Value real estate Retail Estates becomes portfolio Retail Estates on the an independently Real estate portfolio stock exchange managed investment reaches the milestone of IPO and first listing on company with fixed EUR 250 million Euronext Brussels capital
Slide 4: Important milestones 1998-2023
Important milestones 1998-2023 Value real estate 20 years Retail Value real estate portfolio Estates on the portfolio Real estate portfolio stock exchange Real estate portfolio reaches the milestone Additional listing on reaches the of EUR 1 billion Euronext Amsterdam milestone of EUR 1,5 billion 20
Slide 5: Expansion of retailpark in Bruges
“ Expansion of retailpark in Bruges with a custom made store for X²O. ” Bruges, Belgium 5| RETAIL ESTATES
Slide 6: Echoes from the retailers
Echoes from the retailers ➤ 1. Sales period July extended to August ➤ 2. Back to school and the office – September ➤ 3. Outlook October-December 23 ➤ 4. Price increases everywhere 6| RETAIL ESTATES
Slide 7: Decreased pressure on P/L retailers
Decreased pressure on P/L retailers A. Inflation ➣ Full indexation Belgium : strongly reduced speed ➣ Full indexation The Netherlands : c orrections to the CBS index since 1 March 2023 ➣ Evolution contractual rent versus ERV ➣ Rent reviews : renewals/break date B. Energy crisis ➣ The calm after the
Slide 8: Outlook for Retail Estates: Profitability
Outlook for Retail Estates A. PROFITABILITY ➣ Rental income – incasso – intervention fund ➣ Vacancy ➣ Maintenance costs ➣ Personnel costs ➣ Interest costs ➣ Taxes ➣ Dividend 8| RETAIL ESTATES
Slide 9: Outlook for Retail Estates: Balance sheet
Outlook for Retail Estates B. BALANCE SHEET ➣ Property value ➣ Investment capacity ➣ Financing capacity ➣ Capital markets 9| RETAIL ESTATES
Slide 10: Outlook for Retail Estates: Mitigating factors
Outlook for Retail Estates C. MITIGATING FACTORS ➣ Low unemployment ➣ Indexation of wages ➣ Mattheus effect indexation and government measures ➣ Who is my client’s client ➣ Financial position various tenants ➣ Trained RE team ➣ Cost control 10| RETAIL ESTATES
Slide 11: 11| RETAIL ESTATES
11| RETAIL ESTATES
Slide 12: Alexandrium Megastores, The Netherlands
Alexandrium Megastores, The Netherlands Alexandrium Megastores, The Netherlands 12| RETAIL ESTATES
Slide 13: Portfolio management
Portfolio management SUM BUY Better debt ratio, Cluster location 2.54 MIO EUR 2.17 MIO EUR better portfolio SELL BUILD Solitary 81.5 MIO EUR (after balance sheet date) 13| RETAIL ESTATES
Slide 14: 14| RETAIL ESTATES
14| RETAIL ESTATES Merksem, Belgium Jambes, Belgium
Slide 15: Retail Estates in numbers
IN NUMBERS RETAIL ESTATES IN A NUTSHELL 16 PORTFOLIO RETAIL ESTATES NV 19 TOP 5 TENANTS 20 EXPANSION IN THE NETHERLANDS 21 ESG REPORTING 22 15| RETAIL ESTATES Hognoul, Belgium
Slide 16: First half of 2023/24 in a nutshell
First half of 2023/24 in a nutshell Geographical Type of Commercial activities of distribution* building* tenants* 11.39% Individual 0.24% Other peripheral 35.57% The Netherlands 0.15% B2B 1.44% Horeca 35.58% Flanders retailproperties 6.29% Other 2.45% Leisure 14.79% 12.02% R etail Commodities clust
Slide 17: Growth portfolio Retail Estates nv between 1998 and 2023
Growth portfolio Retail Estates nv between 1998 and 2023 Surface area m² Fair value (in thousands EUR) ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 '21 '22 03'23 09’23 Fair value 1 930 244 € Retail area 1 208 564m² Retail Estates nv has Retail Estates e
Slide 18: 18| RETAIL ESTATES
18| RETAIL ESTATES Roosendaal, The Netherlands
Slide 19: Portfolio Retail Estates
Portfolio Retail Estates The Netherlands: 15 sites 429.938 m² ‘RANDSTAD’ ‘GOLDEN TRIANGLE’ AXIS EAST-WEST 81 Flanders: 33 sites 430.058 m² sites 1 208 564 m2 Wallonia: 33 sites 348.570 m² ‘GREEN AXIS’ 19| RETAIL ESTATES
Slide 20: Top 5 tenants 2023
Top 5 tenants 2023 GILDE MAXEDA DIY GROUP PARDIS AUCHAN Client MANDEMAKERS GROEP (KWANTUM / LEEN BAKKER) (BRICO / PRAXIS) (FUN-TRAFIC) (KRËFEL) Annual Rent 6.44% 4.50% 3.27% 2.81% 2.50% Historical occupancy rate (%) Average 98,4 98,3 98,3 98,2 98,2 98,1 98,2 98,8 98,2 98,1 98,0 98,3 98,0 97,1 97,8 9
Slide 21: Expansion in the Netherlands
Expansion in the Netherlands Groningen Friesland 1 Drenthe EXPANSION IN THE NETHERLANDS Noord-Holland Flevoland Overijssel Acquisition of Alexandrium II Megastores (Rotterdam) Gelderland 81.5 mio EUR investment Utrecht 18 units Zuid-Holland 1 Rotterdam Noord-Brabant Zeeland Limburg Antwerpen West-Vl
Slide 22: ESG reporting
ESG reporting* IN RETAIL WE TRUST “Green Retail Estates” ➣ Solar panels : investment in progress Improvement of energy efficiency Sustainable and safe work environment • 1ste half of the year: A ntwerp (Merksem), Screen properties to determine their energy- Create a safe, healthy and flexible work e
Slide 23: 23| RETAIL ESTATES
23| RETAIL ESTATES Den Bosch, The Netherlands
Slide 24: Results
RESULTS FINANCIAL 01 KEY FIGURES H1 2023-2024 25 02 CONSOLIDATED INCOME STATEMENT 27 03 CONSOLIDATED BALANCE SHEET 29 04 OPERATIONAL KEY FIGURES 32 05 EPRA FIGURES 34 06 FINANCIAL KEY FIGURES 36 07 FINANCIAL DEBTS 38 08 PROPERTY PORTFOLIO 40 09 GUIDANCE 2023-2024 42 24| RETAIL ESTATES Maastricht, Th
Slide 25: Key figures
Key figures REAL ESTATE PORTFOLIO 30.09.2023 30.09.22 30.09.21 Number of properties 1 008 1002 988 Total lettable area in m² 1 208 564 1 186 521 1 176 886 Estimated fair value (in EUR) 1 930 244 000 1 817 160 000 1 725 159 000 Estimated investment value (in EUR) 2 025 624 000 1 894 556 000 1 796 172
Slide 26: 26| RETAIL ESTATES
26| RETAIL ESTATES Maastricht, The Netherlands
Slide 27: Consolidated income statement
CONSOLIDATED INCOME STATEMENT INCOME STATEMENT (in € 000) 30.09.23 30.09.22 Rental income 67 851 60 831 Rental related expenses -139 -209 Net rental income 67 712 60 622 Recovery of property expenses - - Recovery of rental charges and taxes normally payable by tenants on let properties 6 623 6 215 R
Slide 28: 28| RETAIL ESTATES
28| RETAIL ESTATES Beringen, Belgium
Slide 29: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET ASSETS (in € 000) 30.09.23 31.03.23 Non-current assets 2 010 462 1 964 347 Goodwill Intangible non-current assets 8 150 6 192 Investment properties 1 1 930 244 1 888 562 Other tangible non-current assets 6 370 6 339 Financial non-current assets 64 633 62 056 Financial inst
Slide 30: Shareholders' equity and liabilities
SHAREHOLDERS’ EQUITY AND LIABILITIES (in € 000) 30.09.23 31.03.23 Shareholders’ equity 1 138 803 1 104 064 Shareholders’ equity attributable to the shareholders of the parent company 1 131 641 1 097 249 Capital 315 035 308 515 Issue premiums 384 585 374 308 Reserves 345 383 233 804 Net result of the
Slide 31: 31| RETAIL ESTATES
31| RETAIL ESTATES Den Bosch, The Netherlands
Slide 32: Operational key figures
Operational key figures Epra result per share Weighted Average lease length 3.13€ 6.46years Like for Like Operational Margin 7.62 % 80.55% 32| RETAIL ESTATES
Slide 33: 33| RETAIL ESTATES
33| RETAIL ESTATES Baelen, Belgium
Slide 34: EPRA figures
EPRA figures EPRA Key performance indicators 30.09.2023 30.09.2022 EUR/1000 EUR per share EUR/1000 EUR per share EPRA result 44 515 3.13 39 060 2.84 EPRA NRV (Net Reinstatement Value) 1 172 448 81.56 1 138 570 80.83 EPRA NTA (Net tangible assets) 1 068 841 74.35 1 039 312 73.78 EPRA NDV (Net Disposa
Slide 35: 35| RETAIL ESTATES
35| RETAIL ESTATES Spijkenisse, The Netherlands
Slide 36: Financial key figures
Financial key figures Average Interest rate Average Debt maturity Investment capacity Debt Ratio (Debt rate max. 60%) 2.12 % 3.48 years 769.80m€ 44.54 % Hedge Ratio Interest cover ratio Unused Credit facilities Net debt/EBITDA (excl. back-up for commercial paper) (min 2.00) 97.22 % 6.85 178.26 7.91
Slide 37: 37| RETAIL ESTATES
37| RETAIL ESTATES Breda, The Netherlands
Slide 38: Financial debts
80000 1995 40000 60000 1990 30000 Financial debts 40000 1985 20000 20000 1980 10000 0 1975 0 OVERVIEW FIXED RATE DEBT, HEDGED FLOATING RATE DEBT AND EVOLUTION DEBT RATIO (IN %) 6 UNHEDGED FLOATING RATE DEBT (in %) 5 3% 13% 3% 24% 55% 60 100 53% 62% 4 55 49% 80 55% 50 3 60 45 2 41% 40 40 1 44% 38% 35
Slide 39: 39| RETAIL ESTATES
39| RETAIL ESTATES Mons, Belgium
Slide 40: Property portfolio
Property portfolio PROPERTY PORTFOLIO ASSETS UNDER CONSTRUCTION IN €000 1.800.000 1.600.000 Assets under construction (in € 000) 1.400.000 Landbank 0.930 1.200.000 Prospective 8.760 1.000.000 Pre-development 2.110 800.000 In progress 3.450 600.000 Sutainability 1.950 400.000 Belgium 200.000 TOTAL 17
Slide 41: 41| RETAIL ESTATES
41| RETAIL ESTATES Westerlo, Belgium
Slide 42: Guidance 2023-2024
Guidance 2023-2024 Gross Dividend Net Dividend Net rental income 5 € 3.50 € 137 m€ 42| RETAIL ESTATES
Slide 43: 43| RETAIL ESTATES
43| RETAIL ESTATES Jambes, Belgium
Slide 44: For more information contact
For more information contact: Jan De Nys Kara De Smet Chief Executive Offficer Chief Finance Officer +32 (0)2 568 10 20 +32 (0)2 568 10 20 Jan.DeNys@retailestates.com Kara.DeSmet@retailestates.com AWARDS Retail Estates was again included in the EPRA annual report Survey and received a gold award. Fo
Slide 45: Disclaimer
This presentation has been prepared by the management of Retail Estates NV, Belgian public real estate investment company (“Retail Estates” or the “Company”), solely for your information and background and is subject to updating, completion, revision and amendment and such information may change mat