Investing in Retail Estates
As a listed real estate company, Retail Estates is a typical dividend stock for long-term investors. Our status as a real estate investment trust (REIT) requires us to distribute at least 80% of our profits each year. Recurring rental income and rising property values lead to an annual increase in dividends.
Long-term growth
We focus on the long term, with the primary objective of building, managing and expanding our property portfolio. The location, quality and diversification of our tenants guarantee steady growth resulting from the increase in the value of our assets and rental income. In the short term, we monitor occupancy rates, rent collection and maintenance and management costs.
Diversified property portfolio of € 2 billion
The property portfolio consists of more than 1,000 shops spread across Belgium and the Netherlands. Starting with a modest number of shops worth tens of millions of euros, the value now exceeds € 2 billion. Examples of our retail properties and parks can be found on our portfolio pages. There is a good chance that there is a Retail Estates property in your region.
Our strength lies in our specialisation in retail property on the outskirts of cities, while at the same time offering a highly diversified portfolio. This specialisation has given us extensive market knowledge. We diversify by cleverly spreading our properties across the regions where we operate and by leasing to a wide range of customers, which limits our dependence on individual retailers and the associated risks.
Strong financial management
The entire management team is fully aware of the importance of the long term. Growth must be sustainable, so we never rush into buying new properties. All parameters must be right, such as the demographic composition within the region, the quality of the tenants, the potential value growth of the property or the initial yield. Financing is also carefully considered to avoid a sharp rise in interest costs or debt ratios that could threaten our profitability.
High dividend
Our prudent management has enabled us to increase the dividend for 21 consecutive years. Without a one-off dividend reduction in the early 2000s, the dividend has actually risen every year since Retail Estates was listed on the stock exchange in 1998. As a Belgian REIT, we are required to distribute at least 80% of our profits to our shareholders. In order to secure future dividend payments and maintain our investment capacity, we are sticking to a figure of around 80% and are avoiding a higher payout ratio.
Expertise in retail
Retail Estates sees itself first and foremost as a service provider within the retail sector and only then as a real estate player. Market knowledge is essential: which retail concepts are growing in popularity with consumers, which are losing ground, and how can we adapt to this? This in-depth market knowledge forms the basis for making sound real estate decisions.
Partner of choice
As a partner of choice, we want to take care of everything for retailers by offering them high-quality properties where they can achieve their growth objectives. This is also in our interest: we want to build long-term relationships with retailers who are able to maintain their profitability.
But we are also a partner of choice for other stakeholders: local authorities and residents living near our retail properties, shareholders and our suppliers. Our interests overlap: like them, we want growth that benefits everyone in the long term.
