RETAIL ESTATES SA Half-yearly financial report
#22/23
IN RETAIL WE TRUST
2| HALF-YEARLY FINANCIAL REPORT 22-23RETAIL ESTATES
In retail we
trust
The Belgian public real estate investment trust | |
Retail Estates nv is a niche player specialised | |
in making in out-of-town retail properties | |
located on the periphery of residential areas | |
or along main access roads to urban centres | |
available to users. Retail Estates nv acquires | |
these real properties from third parties or | |
builds and commercialises retail buildings for | |
its own account. The buildings have useful | |
areas ranging between 500m² and 3,000m². A | |
> | typical retail building has an average area of |
1,000 m². |
The most important long-term goal for Retail Estates nv is to assemble, manage and expand
- portfolio of out-of-town retail real estate which ensures steady, long-term growth due to its location and the quality and diversifi- cation of its tenants. The projected growth results both from the value of the assets and the income generated from leasing.
4
KEY FIGURES
6
MANAGEMENT REPORT
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HALF-YEARLY FINANCIAL REPORT
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46
REPORT
ON THE SHARE
52 | |||
REAL ESTATE | |||
REPORT | |||
62 | > | ||
MISCELLANEOUS |
77
INFORMATION SHEET
TABLE OF CONTENTS | TABLE OF CONTENTS |
4| HALF-YEARLY FINANCIAL REPORT 22-23RETAIL ESTATES
22/23 first semester
Geographical | Type of | Commercial activities | |||
distribution | building | of tenants | |||
0.31% | 11.69% Individual | 1.43% Horeca | 5.62% Other | ||
29.33% Wallonia | 36.50% Flanders | Other | peripheral | ||
retail properties | 2.43% Leisure | ||||
12.17% Retail- | 14.96% | ||||
clusters | Commodities | ||||
+ Food | |||||
75.84% | 16.93% | 58.62% | |||
Retail parks | Fashion | ||||
Home | |||||
34.17% The Netherlands | improvement | ||||
734 | 268 | 1002 | |||
Retail properties | Retail properties in | Retail properties | 14 | 25 | |
in Belgium | The Netherlands | ||||
The real estate portfolio of | |||||||||
Retail Estates nv consists | |||||||||
of retail properties located | "We strive to create the right worklife | ||||||||
> | outside the largest cities of | balance for our compact and | |||||||
Belgium and | dynamic team with attention to | ||||||||
everyone's personal needs." | |||||||||
the Netherlands. | |||||||||
GROWTH PORTFOLIO RETAIL ESTATES NV BETWEEN 1998 AND 2022 | ||||||||||||||||||||||||
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 |
Retail area | Fair value | |||
1 186 521m² | 1 817 160 KEUR | |||
Retail Estates invests in acquisitions, investments | Retail Estates nv has concentrated on continuously improving | |||
in project developments and investments in the | the quality of its properties and the expansion of its real | |||
optimisation of its real estate portfolio. | estate portfolio. | |||
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Key figures
REAL ESTATE PORTFOLIO | 30.09.22 | 31.03.22 | |
Number of properties | 1 002 | 987 | |
Total lettable area in m² | 1 186 521 | 1 177 577 | |
Estimated fair value (in EUR) | 1 817 160 000 | 1 759 879 000 | |
Estimated investment value (in EUR) | 1 894 556 000 | 1 833 757 000 | |
Average rent prices per m² | 109,51 | 104.14 | |
Occupancy rate | 97.37% | 97.83% | |
BALANCE SHEET INFORMATION | 30.09.22 | 31.03.22 | |
Shareholders' equity | 1 022 157 000 | 920 980 000 | |
Debt ratio (RREC legislation, max. 65%)* | 47.54% | 49.15% | |
RESULTS | 30.09.22 | 30/09/2022 | |
Net rental income | 60 622 000 | 57 385 000 | |
Property result | 59 646 000 | 56 354 000 | |
Property costs | -5 622 000 | -4 694 000 | |
Operating corporate costs and other current operating income and expenses | -3 792 000 | -3 103 000 | |
Operating result before result on portfolio | 50 232 000 | 48 558 000 | > |
Result on portfolio | 22 697 000 | 3 165 000 | |
Operating result | 72 929 000 | 51 723 000 | |
Financial result | 34 911 000 | -5 800 000 | |
Net result | 106 013 000 | 44 218 000 | |
EPRA earnings | 39 060 000 | 37 426 000 | |
INFORMATION PER SHARE | 30.09.22 | 31.03.22 | |
Number of shares | 14 085 827 | 13 226 452 | |
Number of dividend bearing shares | 14 085 827 | 13 226 452 | |
Net asset value (NAV) per share IFRS | 72.57 | 69.63 | |
EPRA NTA | 67.97 | 68.46 | |
Net asset value per share (investment value) excl. dividend excl. | |||
the fair value of authorised hedging instruments | 71.35 | 69.67 | |
EPRA earnings per share | 2.84 | 5.84 | |
Share price on closing date | 57.00 | 73.90 | |
Over-/undervaluation compared to net asset value IFRS | -21.45% | 6.13% |
- The Royal Decree of 13 July 2014 (the "RREC R.D."), last modified by the Royal Decree of 23 april 2018 in execution of the Law of 12 May 2014 on regulated real estate companies (Belgian REITs) (the "RREC Law"), last modified by the Law of 18 April 2022. .
KEY FIGURES | KEY FIGURES |
6| HALF-YEARLY FINANCIAL REPORT 22-23RETAIL ESTATES
Management
report
>
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>
MANAGEMENT REPORT | MANAGEMENT REPORT |
8| HALF-YEARLY FINANCIAL REPORT 22-23RETAIL ESTATES
Management report
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2 Activity report for the first half-year2022-2023 ending on 30 September 2022
>
Rental income and occupancy rate
The net rental income amounted to € 60.62 million in the first six months of the financial year, an increase by 5.64% with respect to the comparable six months in the 2021- 2022 financial year. The net rental income in that period amounted to € 57.38 million. The occupancy rate on 30 September 2022 was 97.37%, compared to 97.83% on 31 March 2022.
Fair value1 of the real estate portfolio
The fair value of the real estate portfolio (including investment properties under construction) on 30 September 2022 amounted to € 1,817.16 million, which represents an increase by € 57.28 million (3.25%) compared to the fair value on 31 March 2022 (€ 1,759.88 million). This is attributable to the investments and divestments (in particular the acquisition of a 90% stake in the retail park Tref Center in Venlo (see below) for an amount of € 35.71 million) in the first six months and the variations in the fair value of investment properties.
The variation in the fair value of the real estate portfolio amounts to € 22.57 million and can mainly be explained by an increase in the value of the real estate portfolio amounting to € 27.67 million.
Estates in the transaction amounts to € 35.71 million and generates a rental income of € 2.52 million, representing an initial yield of approximately 7%. According to real estate expert Cushman & Wakefield, the investment value of Retail Estates' share is € 35.5 million and the fair value amounts to € 32.83 million.
The retail park Tref Center has been developed around Tref Box, a hypermarket that is not included in the transaction. It is a combination of food and non-food retailers that is seldom seen in the Netherlands but is quite common in the United Kingdom. The park comprises 19 retail properties with a total surface area of 31,295 m2 and a petrol station. The main tenants include Lidl, Pets Place, Basic Fit, KFC, Kwantum, Leen Bakker, Jysk, Bever Sport (AS Adventure) and Beter Bed. The retail park has been widely known in the Venlo region
for some 50 years and has a customer zone extending > from Venlo (100,000 inhabitants) to across the German border. Venlo is the second largest city of the province of
de province of Limburg, after Maastricht. Retail Estates already invested in this region in the past, in particular in in Maastricht and in Heerlen.
Investment properties under construction
1 Introduction
General
Retail Estates nv is a leading Belgian retail estate company specialised in out-of-town retail real estate. The real estate portfolio of Retail Estates nv consists of 1,002 properties located in Belgium and the Netherlands, accounting for a total retail area of 1,186,521m² and a fair value of € 1,817.16 million.
Retail Estates nv is a listed company (Euronext Brussels and Amsterdam). The company's stock market capitalisation amounted to € 802.89 million on 30 September 2022.
Risk management
While management tries to minimise the risk factors, a number of risks must be carefully taken into account. For an overview of the risks, we refer to the chapter "Risk management" of the 2021-2022 annual report.
Based on the contractually owed rent, rent return (versus investment value) on the portfolio as determined by the real estate experts amounts to 6.77%.
As of 30 September 2022, the real estate portfolio consists of 1,002 properties with a lettable surface of 1,186,521 m².
Investments2 - retail parks
On 4 July 2022, Retail Estates invested € 35.71 million in the acquisition of a 90% interest in retail park Tref Center in Venlo (the Netherlands - province of Limburg). The investment took place in cooperation with the Dutch real estate investor Westpoort Vastgoed, which acquired a 10% interest in the same transaction. The share of Retail
On 30 September 2022 the total amount of the investment properties under construction is € 16.92 million. We distinguish five types of investment properties under construction: speculative land positions (the so-called "land bank", i.e. residual lands of existing portfolios that are intended for possible development or will be sold at a later stage if no redevelopment is possible); prospective projects, projects under predevelopment, projects under development and projects specifically linked to sustainability.
On 30 September 2022, the speculative land positions represented € 1.57 million, the prospective projects represented € 9.21 million, the projects under pre- development represented € 5.22 million, the projects under development represented € 0.72 million and the
- Fair value: investment value as determined by an independent real estate expert, with hypothetical transfer taxed deducted in accordance with IFRS13. The fair value is the book value under the IFRS (see also note 21 of the 2021-2022 annual report).
- The purchase and sales values of the investments and divestments are in line with the fair value estimated by the real estate experts.
MANAGEMENT REPORT | MANAGEMENT REPORT |
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Disclaimer
Retail Estates NV published this content on 21 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2022 08:18:02 UTC.
