Retail Estates Sa · EURONEXT:RET
Retail Estates Sa — Non-Deal Roadshow (May 2024)
42 slides from Retail Estates Sa's roadshow presentation, May 28, 2024
Slide 1: Roadshow Degroof Petercam
Roadshow Degroof Petercam 28 May 2024
Slide 2: Highlights, Our portfolio, ESG, Financials, Financing, Outlook
Highlights Our portfolio ESG Financials Financing Outlook Appendix 2 RETAIL ESTATES 2024
Slide 3: 2023-2024: Resilience of retail parks supports operating results
2023-2024: Resilience of retail parks supports operating results of the past financial year and provides stable valuation EPRA earnings CONTINUING OUR GROWTH EPRA earnings per share PATH BY STRENGTHENING OUR € 88.37 million € 6.18 PORTFOLIO +9.77% +6.81% 1 ➣A cquisition of Alexandrium Megastores (re
Slide 4: Echoes from the retailers: past period
Echoes from the retailers WHAT HAPPENED IN THE PAST PERIOD ➣ Period up to 31 March 2024 ➣ Consumer mood: indexation wages and residential property market ➣ Have and havenots ➣ Food retailers ➣ Non-food retailers ➣ Weather ➣ Travel and horeca 4 RETAIL ESTATES 2024
Slide 5: Echoes from the retailers: coming period
Echoes from the retailers WHAT DO WE EXPECT IN THE COMING PERIOD A. Inflation ➣F ull indexation Belgium/the Netherlands: slowing down but still positive ➣ Evolution contractual rent versus ERV ➣ Rent reviews : renewals/break date B. Energy crisis ➣ SME versus larger ➣ Alternatives C. Salary costs D.
Slide 6: Retail Estates in the past period and looking ahead: Profitability
Retail Estates in the past period and looking ahead A. PROFITABILITY ➣ Rental income – incasso ➣ Vacancy ➣ Maintenance costs ➣ Personnel costs ➣ Interest costs ➣ Taxes ➣ Dividend 6 RETAIL ESTATES 2024
Slide 7: Retail Estates in the past period and looking ahead: Balance sheet
Retail Estates in the past period and looking ahead B. BALANCE SHEET ➣ Property value ➣ Investment capacity ➣ Financing capacity ➣ Capital markets C. MITIGATING FACTORS ➣ Low unemployment ➣ Indexation of wages/ real growth 7 RETAIL ESTATES 2024
Slide 8: Our portfolio
Highlights Our portfolio ESG Financials Financing Outlook Appendix 8 RETAIL ESTATES 2024
Slide 9: Portfolio changes: pipeline update
Portfolio changes PIPELINE UPDATE ROTTERDAM Alexandrium Megastores (17 units) 1 Woonmall Alexandrium (2 winkelunits) 2 Gouden Kruispunt (2 units) (Sint-Joris-Winge/Leuven) 3 SINT-JORIS-WINGE Sold 14 individual properties 4 9 RETAIL ESTATES 2024
Slide 10: Portfolio changes: sell, buy, build
Portfolio changes 11.98 MIO EUR 92.23 MIO EUR 4.16 MIO EUR SUM SELL BUY BUILD Maintaining a debt ratio Solitary Retail park properties below internal target of 45% ASSETS UNDER CONSTRUCTION (IN 000 €) Landbank 0.94 Prospective 8.84 Pre-development 0.10 In progress 2.90 Sustainability 0.96 TOTAL 13.7
Slide 11: Portfolio valuation
Portfolio valuation € Result on portfolio: +50.43 mio EUR Result on disposal: - 0.40 mio EUR € Change in fair value: +51.19 mio EUR Other result on portfolio: -0.37 mio EUR 11 RETAIL ESTATES 2024
Slide 12: Portfolio valuation: Belgium vs the Netherlands
Portfolio valuation: Belgium vs the Netherlands BELGIUM THE NETHERLANDS ➣ Yield BE: 6.63% ➣ Yield NL: 7.08% ➣ Average contractual rent/m2 ➣ Average contractual rent/m2 BE: 120.06 EUR NL: 117.38 EUR ➣ Occupancy rate BE: ➣ Occupancy rate NL: 98.10% 97.54% The average contractual rent/m² is calculated
Slide 13: Portfolio evolution
Portfolio evolution GROWTH PORTFOLIO RETAIL ESTATES NV BETWEEN 1998 AND 2024 Fair value Entry € 2,028,317 into the Retail Estates nv focuses on Netherlands continuously strengthening 2024 the quality of its property and expanding its 2 bn property portfolio 2019 Retail area 1.5 bn 1,228,576 m² 2016
Slide 14: Portfolio KPIs
Portfolio KPIs The Netherlands: 460.241 m² EPRA Net Yield on Initial Yield Portfolio ‘RANDSTAD’ (NIY) (based on actual rents) 6.61% 6.79% ‘GOLDEN TRIANGLE’ Rotterdam AXIS EAST-WEST Venlo 302 Retail properties in the Netherlands 718 Retail properties in Belgium 157 sites 141 in BE + 16 in NL Belgium:
Slide 15: Quality and diversification of tenants
Quality and diversification of tenants Partner of choice GEOGRAPHICAL TYPE COMMERCIAL ACTIVITIES DISTRIBUTION OF BUILDING OF TENANTS 0.22% 1.64% 37.46% 34.59% Other 10.70% Horeca 5.73% The Flanders Individual peripheral Other Netherlands 77.20% retailproperties 2.64% Retail parks Leisure 58.76% 11.8
Slide 16: Quality and diversification of tenants: top tenants
Quality and diversification of tenants Partner of choice Important changes to tenants / leases TOP TENANTS (IN%) e.g. FUN 6.17% 4.59% 3.25% ■ Gilde (Kwantum / Leen Bakker) 2.48% 2.08% ■ Mandemakers Groep Weighted average ■ Maxeda DIY Group lease length ■ Krëfel ■ Aldi ■ Others 6.35 YEARS 81.43% Base
Slide 17: Stable evolution of occupancy rate
Stable evolution of occupancy rate Partner of choice ➣ Properties at prime locations in high demand ➣ Extensive retail market knowledge: know your customers STABLE EVOLUTION OF OCCUPANCY RATE Current occupancy rate 99 97 97.89 % 95 93 91 89 87 85 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 202
Slide 18: ESG
Highlights Our portfolio ESG Financials Financing Outlook Appendix 18 RETAIL ESTATES 2024
Slide 19: ESG: Environment
ESG: Environment Green Retail ONGOING SUSTAINABILITY IMPROVEMENTS TO OUR PORTFOLIO Estates 9.5 mio EUR 13 invested in energy locations with solar panels efficiency of buildings (=100 rental units) (mainly roofs & windows) 6 planned in 2024-2025 (+/- 40.000 m² roof) 4.868 kWp total capacity of our so
Slide 20: ESG: Social & Governance
ESG: Social & Governance Partner of choice HAPPY EMPLOYEES & EMBEDDING ESG SOCIAL ➣N ew team members to improve operational capabilities and bring in outside experience and knowledge ➣ Talent development by trainings ➣ A healthy & close team: RE @ Mont Ventoux GOVERNANCE ➣ Cybersecurity awareness ➣
Slide 21: Financials
Highlights Our portfolio ESG Financials Financing Outlook Appendix 21 RETAIL ESTATES 2024
Slide 22: Key figures
Key figures 31.03.2023 (excluding non- REAL ESTATE PORTFOLIO 31.03.2024 recurring income2) 31.03.2023 31.03.2022 Number of properties 1,020 1,013 987 Total lettable area in m² 1,228,576 1,211,004 1,177,577 Estimated fair value (in €) 2,028,317,000 1,888,562,000 1,759,879,000 Estimated investment val
Slide 23: Key figures
Key figures Net rental income Like for Like EPRA earnings Debt ratio 138.83m€ +6.50% 88.37m€ 44.62% € 6.18 / share Operational Margin EPRA NTA Net debt/EBITDA 80.40% € 78.15 / 7.79 share 23 RETAIL ESTATES 2024
Slide 24: Consolidated income statement
Consolidated income statement INCOME STATEMENT (in € 000) 31.03.2024 31.03.2023 Rental income 139,533 125,856 Rental related expenses -705 -455 Net rental income 138,829 125,401 Recovery of property expenses Recovery of rental charges and taxes normally payable by tenants on let properties 14,609 13
Slide 25: Consolidated balance sheet: assets
Consolidated balance sheet ASSETS (in € 000) 31.03.2024 31.03.2023 Non-current assets 2,089,636 1,964,347 Goodwill Intangible non-current assets 8,874 6,192 Investment properties 1 2,028,317 1,888,562 Other tangible non-current assets 6,450 6,339 Financial non-current assets 44,924 62,056 Financial
Slide 26: Consolidated balance sheet: equity and liabilities
Consolidated balance sheet SHAREHOLDERS’ EQUITY AND LIABILITIES (in € 000) 31,03,2024 31,03,2023 Shareholders’ equity 1,174,361 1,104,064 Shareholders’ equity attributable to the shareholders of the parent company 1,167,356 1,097,249 Capital 315,035 308,515 Issue premiums 384,498 374,308 Reserves 34
Slide 27: EPRA key performance indicators
EPRA key performance indicators 31.03.2024 31.03.2023 EUR/1000 EUR per share EUR/1000 EUR per share EPRA earnings 88,366 6.18 88,203 6.34 EPRA NET REINSTATEMENT VALUE 1,238,330 86.14 1,138,570 80.83 EPRA NET TANGIBLE ASSETS VALUE 1,123,482 78.15 1,039,312 73.78 EPRA NET DISPOSAL VALUE 1,177,341 81.9
Slide 28: Financing
Highlights Our portfolio ESG Financials Financing Outlook Appendix 28 RETAIL ESTATES 2024
Slide 29: Interest rates and maturity
3 Interest rates and maturity 2 1 0 D D D 22 23 24 25 26 27 28 29 30 1T 2T 3T 20 20 20 20 20 20 20 20 20 Q Q Q FY FY FY FY FY FY FY FY FY 22 22 22 20 20 20 FY FY FY Average interest rate OVERVIEW DEBT MATURITY (IN EUR) 2.30% 250 000 000 200 000 000 150 000 000 100 000 000 Average debt maturity 50 00
Slide 30: Interest rates and maturity: debt ratio
Interest rates and maturity Debt ratio EVOLUTION DEBT RATIO (IN %) 44.62% 60 58 56 Net debt/EBITDA 54 52 44.62 7.79 50 48 % 46 44 42 Investment capacity 40 (debt rate max 50%) 2019 2020 2021 2022 2023 2024 218.17m€ 30 RETAIL ESTATES 2024
Slide 31: Hedging
Hedging OVERVIEW FIXED RATE DEBT, Hedge ratio HEDGED FLOATING RATE DEBT AND UNHEDGED FLOATING RATE DEBT (in %) 95.52% 100 80 60 40 Interest cover ratio (min 2) 20 6.38 0 31/03/2024 31/03/2025 Fixed rate debt 31/03/2026 Hedged floating 31/03/2027 31/03/2028 Unhedged floating rate debt rate debt 31 RE
Slide 32: Structure of debt
Structure of debt STRUCTURE OF THE FINANCIAL DEBT Unused credit facilities (excl back-up for commercial paper) 138.60m€ 4.68% Commercial paper 19.32% Bond loans New or extended credit lines 76.00% 215.75 m€ Bank loans 32 RETAIL ESTATES 2024
Slide 33: Outlook
Highlights Our portfolio ESG Financials Financing Outlook Appendix 33 RETAIL ESTATES 2024
Slide 34: Outlook and guidance 2024-2025
OUTLOOK AND GUIDANCE 2024-2025 Net rental income Net dividend 143 m€ 3.57 € Gross dividend 5.10 € Interim optional dividend 34 RETAIL ESTATES 2024
Slide 35: Calendar
Calendar Annual report 17 June 2024 Annual General Meeting 22 July 2024 To be determined by the board Dividend made available for payment of directors at a later date First quarter results 2024-2025 29 July 2024 Half-year results 2024-2025 18 November 2024 35 RETAIL ESTATES 2024
Slide 36: Contact
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 “Retail Estates was again included in the EPRA annual report survey and received a gold award for its financial reporting and
Slide 37: Appendix
Highlights Our portfolio ESG Financials Financing Outlook Appendix 37 RETAIL ESTATES 2024
Slide 38: Profile of Retail Estates
Profile of Retail Estates 302 Retail properties 718 Retail properties in the Netherlands in Belgium REspect 1 020 Retail properties Green Partner The real estate portfolio of retail Estates nv consists of retail properties located outside Retail Estates of Choice the largest cities of Belgium and th
Slide 39: Shareholder structure
Shareholder structure ■ 5.31% AXA ■ 3.12% Blackrock ■ 4.98% FPIM, Belfius ■ 9.40% Nextensa ■ 2.94% Petercam Degroof Asset management ■ 35% Retail investors ■ 4.07% Shopinvest ■ 35.18% Other institutionals 39 RETAIL ESTATES 2024
Slide 40: Share evolution versus NAV / Share versus index
Share evolution versus NAV / Share versus index? RETAIL ESTATES - EPRA NTA - IFRS NAW 100 90 80 70 60 50 40 30 20 10 0 1/04/2014 1/04/2015 1/04/2016 1/04/2017 1/04/2018 1/04/2019 1/04/2020 1/04/2021 1/04/2022 1/04/2023 1/04/2024 Retail Estates nv EPRA NTA IFRS NAW 40 RETAIL ESTATES 2024
Slide 41: Milestones of Retail Estates
Milestones of Retail Estates 2019 2016 Value real estate 2022 portfolio Full recovery Value real estate portfolio Real estate portfolio reaches the milestone Operating results to 2012 Real estate portfolio of EUR 1,5 billion 1998 reaches the milestone of pre-corona level Optional stock EUR 1 billion
Slide 42: 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