Retail Estates: Interim statement – ​​Results for the first quarter of the financial year 2022-2023

PRESS RELEASE

Regulated information

Ternat, August 29, 2022

INTERIM STATEMENT BY THE BOARD OF DIRECTORS

FIRST QUARTER 2022 – 2023 1 (closed on 30 . 06 . 2022 ) .

E PRA GAIN IN GS 2 FOR THE FIRST QUARTER OF THE 2022-2023 FINANCIAL YEAR AT €18. 6 M ILLION FOR €18. 54 MILLION DURING THE PREVIOUS YEAR . EPRA EARNINGS PER SHARE ARE €1. 39 .

THE FAIR VALUE OF THE REAL ESTATE PORTFOLIO STANDS 1,781 MILLION EUROS AS OF JUNE 30, 202 2 . THE VALUE HAS INCREASE SLIGHTLY, AT C ON STANT PERIMETER, COMPARED TO THE VALUE S AT 3 1 M ARCH 2022 .

  1. The figures given in this press release are consolidated figures, unaudited and in accordance with IFRS standards.
  2. EPRA earnings are calculated as follows: net earnings excluding changes in fair value of investment properties, excluding income on disposal of investment properties and excluding changes in fair value of financial assets and liabilities.

1. REAL ESTATE ACTIVITIES DURING THE FIRST QUARTER 2022-2023

1.1 Rental income and occupancy rate3

Net rental income amounted to €29.56 million in the first quarter of the financial year, up 3.59% compared to the comparable quarter of the 2021-2022 financial year.

The occupancy rate for the entire portfolio is 97.64% as of June 30, 2022 compared to 97.83% as of March 31, 2022.

1.2 Fair value4 of the real estate portfolio

The fair value of the real estate portfolio (including assets under construction) amounts to € 1,781 million as of June 30, 2022. Despite the corona pandemic, we note that the investment value has increased slightly again at constant scope (€ 21 .15 million). The variation compared to the fair value as of March 31, 2022 (€ 1,760 million) is exclusively the consequence of the active management of the real estate portfolio, with investments and divestments in the first quarter as well as transfers to the heading of properties intended for sale .

1.3 Investments – retail parks

No significant investment took place in the first quarter of fiscal year 2022-2023.

1.4 Assignments

During the last quarter, a building in Sint-Niklaas (Belgium), consisting of two shops and two apartments, was sold. Net turnover amounts to 2.4 million euros. The fair value of these buildings amounted to € 2.46 million. These sales resulted in a net loss of value of 0.06 million euros.

1.5 Post closing events: investment in the retail park in Venlo

July 4, 20225, Retail Estates has invested €35.71 million in the acquisition of a 90% stake in the Tref Center retail park in Venlo (Netherlands – province of Limburg). The investment was made in cooperation with Dutch property investor Westpoort Vastgoed, which acquired a 10% stake in the same transaction.

Retail Estates’ share in the transaction amounts to € 35.71 million and generates rental income of € 2.52 million, ie an initial yield of approximately 7%. According to real estate expert Cushman & Wakefield, the investment value of Retail Estates’ share is 35.5 million euros and the fair value amounts to 32.83 million euros. In the long term, a continued extension of Retail Estates’ stake in the Tref Center retail park and a restriction of the acquired stake are possible.

  1. The occupancy rate is calculated as the ratio of the area actually rented to the area available for rental, expressed in m².
  2. Fair value: investment value as determined by an independent real estate expert, less hypothetical transfer taxes. The fair value is the book value according to IFRS standards (see also note 21 of the annual report 2021-2022).
  3. See press release of July 5, 2022.

2. KEY FIGURES AS OF JUNE 30, 2022

2.1. EPRA result and net result

As of June 30, 2022, the EPRA earnings evolved to 18.59 million euros compared to 18.54 million euros in the comparable period of the 2021-2022 financial year. The calculation of EPRA earnings per share takes into account the weighted average number of shares as of June 30, 2022, i.e. 13,377,551. EPRA earnings per share (based on the weighted average number of shares) amounted to €1.39 as of June 30, 2022, compared to €1.46 as of June 30, 2021 (based on the weighted average number of shares then, i.e. 12.665.763). This temporary decrease results from the capital increase of 55 million euros and the issue of 859,375 new shares.6

As of June 30, 2022, the net result amounts to €60.07 million and takes into account the EPRA result (€18.59 million), the change in the fair value of investment properties (€21.15 million), the result on divestments (€ -0.06 million, see above), the other result on the portfolio (€ 0.16 million) and the change in the fair value of financial assets and liabilities (€ 20.55 million) . In order to limit the interest rate risk on the financing of its investments, Retail Estates has implemented a very cautious hedging strategy (cash flow hedging), whereby variable rate debts are converted into long term fixed rate debts. term. This is an unrealized and non-cash result.

2.2. Weighted average interest chargesseven

As of June 30, 2022, the weighted average interest rate was 1.96%, compared to 1.95% as of March 31, 2022 and 1.99% as of June 30, 2021, and results from the change in the composition of the credit portfolio , partly due to the reallocation of appropriations in the past financial year and partly due to new appropriations. Retail Estates combines bilateral credits with various banking partners with private bond placements with institutional investors and with a commercial paper program (fully covered by back-up lines). The average maturity of the loan portfolio is 3.6 years.

2.3. Information per share

30.06.2022

31.03.2022

Number of shares outstanding

14,085,827

13,226,452

Weighted average number of shares

13,377,551

12,893,111

Net asset value per share IFRS8

73.57

69.63

ANR EPRA9

70.79

68.46

Net asset value per share (investment value) excluding

dividend excluding fair value of authorized hedges

70.74

69.67

instruments

  1. See press release of June 10, 2022.
  2. Interest expense (including the credit margin and the cost of hedging instruments) divided by the weighted average financial debt for the current period.
  3. This net asset value as of June 30, 2022 includes dividends and contains both the dividend fiscal year 2021-2022 and the proposed dividend for the first quarter of fiscal year 2022-2023.
  4. ERPA NAV is calculated as follows: shareholders’ equity (excluding the fair value of authorized hedging instruments corrected for the deduction of intangible fixed assets and deferred taxes) divided by the number of shares.

PRO FORMA EPRA NTA after deduction of the dividend

03/31/2022 paid on 07/25/2022

66.19

63.96

30.06.2022 30.06.2022

EPRA earnings per share (based on the weighted average

1.391.46

number of shares)

EPRA earnings per share (based on the number of shares

1.321.46

right to dividends)

2.4. Rate of endettement

The debt ratio is 45.43% as of June 30, 2022 compared to 49.15% as of March 31, 2022.

The decrease in the debt ratio as of June 30, 2022 results from the €55 million capital increase of June 14, 2022, the proceeds of which will in principle be invested during the financial year.

3. OUTLOOK

Macroeconomic uncertainties make it impossible to predict changes in the fair value of investment properties or changes in the fair value of interest rate hedging instruments. The evolution of the intrinsic value of the shares, which is sensitive to it, is therefore uncertain.

The expected dividend is maintained at €4.70 gross per share.

4. FINANCIAL CALENDAR

Announcement of the half-year results for the 2022-2023 financial year

November 21, 2022

Announcement of the annual results for the 2022-2023 financial year

May 29, 2023

ABOUT RETAIL ESTATES SA

The Belgian public property investment fund Retail Estates nv is a niche player specializing in providing users with commercial properties located on the outskirts of residential areas or along the main access roads to urban centres. Real Estates NV acquires these properties from third parties or constructs and markets commercial properties for its own account. The buildings have usable areas of between 500 m² and 3,000 m². A typical commercial building has an average area of ​​1,000 m².

As of 30 June 2022, Retail Estates nv has 983 properties in its portfolio with a total commercial area of ​​1,161,282 m², spread over Belgium and the Netherlands. The occupancy rate for the entire portfolio is 97.64% as of June 30, 2022 compared to 97.83% as of March 31, 2022.

The fair value of the consolidated real estate portfolio of Retail Estates NV as of 30 June 2022 is estimated at € 1,781 million by independent real estate experts.

Retail Estates NV is listed on Euronext Brussels and Euronext Amsterdam and is registered as a public regulated real estate company.

FORWARD-LOOKING STATEMENTS

This press release contains a number of forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the results that could be assumed in this press release based on these forward-looking statements. The main factors likely to influence these results are the evolution of the economic, commercial, fiscal and environmental situation.

Ternat, August 29, 2022

Jan De Nys, CEO of Retail Estates nv

For more information please contact:

Retail Estates nv, Jan De Nys – CEO, T: +32 2/568 10 20 – F:+32 475/27 84 12

Retail Estates nv, Kara De Smet – CFO, tel. +32 2/568 10 20

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