Retail Estates Sa · EURONEXT:RET
Retail Estates Sa — H1 2024-2025 Earnings Presentation
42 slides from Retail Estates Sa's earnings presentation, November 2024
Slide 1: Half-year results 2024-2025
Half-year results 2024-2025
Slide 2: Highlights, Our portfolio, ESG, Financials, Financing, Outlook, Appendix
Highlights Our portfolio ESG Financials Financing Outlook Appendix 2 RETAIL ESTATES 2024
Slide 3: First half year 2024-2025 (ended 30 September 2024)
FIRST HALF YEAR 2024-2025 (ended 30 September 2024) EPRA earnings EPRA earnings per share € 45.35 € 3.12 million Fair value EPRA occupancy rate EPRA NTA € 2,047.30 million 97.57% € 76.70 per share Debt-to-assets ratio Gross dividend 44.59% € 5.1 3 RETAIL ESTATES 2024
Slide 4: Echoes from the retailers
Echoes from the retailers WHAT HAPPENED IN THE PAST PERIOD ➣ Period up to 30 September 2024 ➣ Consumer mood: indexation wages and residential property market ➣ Food retailers ➣ Non-food retailers ➣ Weather ➣ Travel and horeca ➣ Increased savings / government deficit / geopolitical issues 4 RETAIL ES
Slide 5: Risk management
Risk management ➣ Interpreting red flags and gradually reducing exposure over several years ➣ Relaunch before bankruptcy, direct takeover of lease via curator following a bankruptcy, or reletting on our terms Retailer Exposed shops Number of shops relet Number of shops Estimated Rental (first half o
Slide 6: Echoes from the retailers
Echoes from the retailers WHAT DO WE EXPECT IN THE COMING PERIOD A. Inflation ➣F ull indexation Belgium/the Netherlands: remains at a high level ➣ Evolution contractual rent versus ERV ➣ Rent reviews : renewals/break date ➣P rice leaders versus price followers: hard to increase prices after first in
Slide 7: Circular economy
Circular economy 7 RETAIL ESTATES 2024
Slide 8: Risk Echoes from the retailers/investment market
Risk Echoes from the retailers/investment market ➣ Number of changes following bankruptcies and restructuring, compensated by strong takeup ➙ 22 shops affected on total of 1,022 ➣ Low activity for investors: frozen market except for wealthy individuals/cash buyers/private equity ➣ Out-of-town ➙ low
Slide 9: Retail Estates in the past period and looking ahead
Retail Estates in the past period and looking ahead A. Profitability ➣ Rental income – debt collection ➣ Vacancy ➣ Maintenance costs ➣ Personnel costs ➣ Interest costs ➣ Taxes ➣ Dividend 9 RETAIL ESTATES 2024
Slide 10: Retail Estates in the past period and looking ahead
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 10 RETAIL ESTATES 2024
Slide 11: Highlights, Our portfolio, ESG, Financials, Financing, Outlook, Appendix
Highlights Our portfolio ESG Financials Financing Outlook Appendix 11 RETAIL ESTATES 2024
Slide 12: Portfolio valuation
Portfolio valuation € Result on portfolio: +11.41 mio EUR Result on disposal: +0.11 mio EUR € Change in fair value: +11.43 mio EUR Other result on portfolio: -0.13 mio EUR 12 RETAIL ESTATES 2024
Slide 13: Portfolio valuation: Belgium vs the Netherlands
Portfolio valuation: Belgium vs the Netherlands (30 Sept. 2024) BELGIUM THE NETHERLANDS ➣ Yield BE: 6.67% ➣ Yield NL: 7.17% ➣ Average contractual rent/m2 ➣ Average contractual rent/m2 BE: 125.13 EUR NL: 118.94 EUR ➣ EPRA occupancy rate BE: ➣ EPRA occupancy rate NL: 97.77% 97.24% 13 RETAIL ESTATES 20
Slide 14: Portfolio KPIs
Portfolio KPIs The Netherlands: 461 516 m² EPRA Net Yield on Initial Yield Portfolio ‘RANDSTAD’ (NIY) (based on actual rents) 6.70% 6.91% ‘GOLDEN TRIANGLE’ Rotterdam AXIS EAST-WEST Venlo 304 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 (30 Sept. 2024) Partner of choice GEOGRAPHICAL TYPE COMMERCIAL ACTIVITIES DISTRIBUTION OF BUILDING OF TENANTS 0.24% 1.81% 37.65% 34.52% Other 10.45% Horeca 6.57% The Flanders Individual peripheral Other Netherlands 77.48% retailproperties 2.43% Retail parks Lei
Slide 16: Quality and diversification of tenants: top tenants
Quality and diversification of tenants Partner of choice TOP TENANTS (IN%) 5.92% 4.47% 3.25% ■G ilde (Kwantum / Leen Bakker) 2.49% 2.37% ■ Mandemakers Groep Weighted average ■ Maxeda DIY Group lease length ■ Colruyt Group ■ Auchan Group ■ Others 6.3 YEARS 81.50% Based on annual rent 16 RETAIL ESTATE
Slide 17: Evolution of occupancy rate
Evolution of occupancy rate (30 Sept. 2024) Partner of choice ➣ Properties at prime locations in high demand ➣ Extensive retail market knowledge: know your customers EVOLUTION OF OCCUPANCY RATE Current EPRA occupancy rate 99 97 97.57 % 95 93 91 89 87 85 2013 2014 2015 2016 2017 2018 2019 2020 2021 2
Slide 18: Highlights, Our portfolio, ESG, Financials, Financing, Outlook, Appendix
Highlights Our portfolio ESG Financials Financing Outlook Appendix 18 RETAIL ESTATES 2024
Slide 19: ESG: Environment
ESG: Environment Green Retail IMPROVEMENTS IN THE FIRST HALF OF THE FINANCIAL YEAR Estates 2.1 mio EUR 3 invested in energy new locations with solar efficiency of buildings panels (mainly roofs & windows) 5 planned in second half of the year 2.244 kWp total new capacity of solar panels production ca
Slide 20: Highlights, Our portfolio, ESG, Financials, Financing, Outlook, Appendix
Highlights Our portfolio ESG Financials Financing Outlook Appendix 20 RETAIL ESTATES 2024
Slide 21: Key figures
Key figures REAL ESTATE PORTFOLIO 30.09.2024 31.03.2024 31.03.2023 31.03.2022 Number of properties 1,022 1,020 1,013 987 Total lettable area in m² 1,225,824 1,228,576 1,211,004 1,177,577 Estimated fair value (in €) 2,047,303,708 2,028,317,000 1,888,562,000 1,759,879,000 Estimated investment value (i
Slide 22: Key figures (30 September 2024)
Key figures (30 September 2024) Net rental income Like for Like EPRA earnings Debt ratio 70.61m€ +0.80% 45.35m€ 44.59% € 3.12 / share Operational Margin EPRA NTA Net debt/EBITDA 80.80% € 76.70 / 7.83 share 22 RETAIL ESTATES 2024
Slide 23: Consolidated income statement (30 September 2024)
Consolidated income statement (30 September 2024) INCOME STATEMENT (in € 000) 30.09.2024 30.09.2023 Rental income 71,235 67,851 Rental related expenses -626 -139 Net rental income 70,609 67,712 Recovery of property expenses 0 0 Recovery of rental charges and taxes normally payable by tenants on let
Slide 24: Consolidated balance sheet (30 September 2024)
Consolidated balance sheet (30 September 2024) ASSETS (in € 000) 30.09.2024 31.03.2024 Non-current assets 2,092,970 2,089,636 Goodwill Intangible non-current assets 8,913 8,874 Investment properties 1 2,047,304 2,028,317 Other tangible non-current assets 6,275 6,450 Financial non-current assets 29,4
Slide 25: Consolidated balance sheet (30 September 2024)
Consolidated balance sheet (30 September 2024) SHAREHOLDERS’ EQUITY AND LIABILITIES (in € 000) 30.09.2024 31.03.2024 Shareholders’ equity 1,163,893 1,174,361 Shareholders’ equity attributable to the shareholders of the parent company 1,156,426 1,167,356 Capital 322,499 315,035 Issue premiums 396,581
Slide 26: EPRA key performance indicators
EPRA key performance indicators 30.09.2024 31.03.2024 EUR/1000 EUR per share EUR/1000 EUR per share EPRA earnings 45.35 3.12 88,366 6.18 EPRA net tangible assets (NTA) 1,128,025 76.70 1,123,482 78.15 Share price on 30/09/2024 65.50 65.00 RETAIL ESTATES - EPRA NTA - IFRS NAW 100 90 80 70 60 50 40 30
Slide 27: Highlights, Our portfolio, ESG, Financials, Financing, Outlook, Appendix
Highlights Our portfolio ESG Financials Financing Outlook Appendix 27 RETAIL ESTATES 2024
Slide 28: 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) 2.13% 250.000.000 200.000.000 150.000.000 100.000.000 Average debt maturity 50.00
Slide 29: Interest rates and maturity: debt ratio
Interest rates and maturity Debt ratio EVOLUTION DEBT RATIO (IN %) 44.59% 60 58 56 Net debt/EBITDA 54 52 44.59 7.83 50 48 % 46 44 42 Investment capacity 40 (debt rate max 50%) 2019 2020 2021 2022 2023 2024 220.26m€ 29 RETAIL ESTATES 2024
Slide 30: Hedging
Hedging OVERVIEW FIXED RATE DEBT, Hedge ratio HEDGED FLOATING RATE DEBT AND UNHEDGED FLOATING RATE DEBT (in %) 97.50% 100 80 60 40 Interest cover ratio (min 2) 20 6.83 0 31/09/2024 31/03/2025 Fixed rate debt 31/03/2026 Hedged floating 31/03/2027 31/03/2028 Unhedged floating rate debt rate debt 30 RE
Slide 31: Structure of debt
Structure of debt STRUCTURE OF THE FINANCIAL DEBT Unused credit facilities (excl back-up for commercial paper) 134.26m€ 4% 1% Commercial Financial paper leasing 32% Bond loans and alternative financing New or extended credit lines 63% Funding with 60m € major banks 31 RETAIL ESTATES 2024
Slide 32: Highlights, Our portfolio, ESG, Financials, Financing, Outlook, Appendix
Highlights Our portfolio ESG Financials Financing Outlook Appendix 32 RETAIL ESTATES 2024
Slide 33: Outlook and guidance 2024-2025
OUTLOOK AND GUIDANCE 2024-2025 Net rental income Net dividend 143 m€ 3.57 € Gross dividend 5.10 € 33 RETAIL ESTATES 2024
Slide 34: Calendar
Calendar Half-year results 2024-2025 Monday Monday 18 November 2024 Third quarter results 2024-2025 Monday 24 February 2025 Full year results 2024-2025 Monday Monday 26 May 2025 34 RETAIL ESTATES 2024
Slide 35: 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 36: Highlights, Our portfolio, ESG, Financials, Financing, Outlook, Appendix
Highlights Our portfolio ESG Financials Financing Outlook Appendix 36 RETAIL ESTATES 2024
Slide 37: Portfolio evolution
Portfolio evolution GROWTH PORTFOLIO RETAIL ESTATES NV BETWEEN 1998 AND 2024 Fair value Entry € 2,047.30 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 1,225,824 m² 2016 R
Slide 38: Profile of Retail Estates
Profile of Retail Estates 304 Retail properties 718 Retail properties in the Netherlands in Belgium REspect 1 022 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 ■ 9.19% Nextensa ■ 5.19% AXA ■ 4.87% FPIM, Belfius ■ 4.52% Blackrock ■ 3.98% Vleterinvest ■ 2.87% P etercam Degroof Asset management ■ 34.37% Other institutionals ■ 35% Retail investors 39 RETAIL ESTATES 2024
Slide 40: Share evolution
Share evolution RETAIL ESTATES - EPRA NTA - IFRS NAW 100 90 80 70 60 50 40 30 20 10 0 30/09/2014 30/09/2015 30/09/2016 30/09/2017 30/09//2018 30/09/2019 30/09/2020 30/092021 30/09/2022 30/09/2023 30/09/2024 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