Highlights

• EPRA result¹ (Group) of € 90.86 million (+2.82% compared to 31 March 2024).
• EPRA result per share² (Group) of € 6.21 (compared to € 6.18 EUR on 31 March 2024) (based on the weighted average number of shares).
• Net rental income of € 142.18 million (+2.41%).
• Slight increase of the fair value of the real estate portfolio to € 2,069.54 million (+2.03% compared to 31 March 2024).
• Continued sustainability improvements to the real estate portfolio with € 11.41 million invested in green energy and insulation.
• EPRA occupancy rate at 97.26% (compared to 98.10% on 31 March 2024).
• Debt ratio slightly declined to 42.52% (compared to 44.62% on 31 March 2024).
• Dividend of € 5.10 gross per share. The Board of Directors intends to offer an optional dividend in the course of June 2025.

Notes

¹  The EPRA earnings is calculated as follows: net result excluding changes in fair value of investment properties, exclusive the result on disposal of investment properties and exclusive changes in fair value of financial assets and liabilities, and excluding minority interests relating to the aforementioned elements

²  Taking into account the issue of 331.748 new shares as a result of the capital increase within the context of the optional interim dividend on 27 June 2024. The weighted average number of shares is 14,627,352.

Financial year 2024-2025 in a nutshell

Retail Estates (Euronext Brussels: RET), a specialist in the rental of out-of-town retail properties in Belgium and the Netherlands, posted slightly higher results in the 2024-2025 financial year compared to the previous financial year. 

EPRA result up again

The Group's EPRA result (i.e. profit excluding portfolio results and changes in the fair value of financial assets and liabilities) increased to € 90.86 million, up +2.82% compared to the same period last year.

Per share, this represented EPRA profit of € 6.21 compared to € 6.18 on 31 March 2024. The calculation of EPRA profit per share takes into account the weighted average number of shares on 31 March 2025, which was 14,627,352 shares. Due to the issue of 331,748 new shares in connection with the capital increase following the interim optional dividend, the weighted average number of shares increased in 2024-2025.

The EPRA net tangible asset value (NTA) (including the result for the past financial year, of which € 5.10 is proposed as a gross dividend) per share amounted to € 80.87 on 31 March 2025, compared to € 78.15 on 31 March 2024. 

Retail Estates also managed to sustain its operating margin. In 2024-2025, the operating margin remained stable at 80.41%. The operating margin shows the profitability of the real estate portfolio without taking into account changes in the value of the real estate, taxes, depreciation, financing costs, and one-off items. 

Operating results stable

Rental income amounted to € 143.41 million (+2.78% compared to 31 March 2024) and increased by +0.4% on a like-for-like basis. The increase is mainly due to indexation of existing rents and additional rental income from acquisitions during the 2023-2024 financial year, in particular that of the Alexandrium Megastores retail park in Rotterdam (the Netherlands). The impact on like-for-like is due to (temporary) vacancy, a limited negative impact of contract renewals and discounts. The rental income also includes € 0.7 million in income from green energy flows (solar panels and charging stations). Due to the limited supply of retail parks on the real estate market, Retail Estates only applied arbitrage to its real estate portfolio in the 2024-2025 financial year. A number of properties that no longer fit in with the real estate company's strategy were sold in order to acquire other properties.

The EPRA occupancy rate declined slightly to 97.26%. Retail Estates managed to quickly re-let most of the properties after a few retailers filed for bankruptcy. For a large number of stores that were involved in bankruptcy, the receiver found a new tenant, so there was no loss of rent due to vacancy. In addition, Retail Estates had reduced its exposure to several of these retail chains in recent years. New tenants were found for some of the remaining retail properties thanks to the quality of the locations. Where no new tenants have yet been found, this is partly due to the size of the shops concerned, which deviates from the sector standard of 1,000 m². In Wallonia, the repurposing of vacant properties when there is a change of tenant is slower due to a change in the decree procedure, which is not yet known to all local authorities. In the meantime, inflation has returned to normal, which has a positive impact on rents and operating costs for retailers. 

In Belgium, median consumer wealth rose by +11% in 2024, significantly outpacing inflation. As a result, consumers saw their real prosperity and purchasing power increase. In the Netherlands, purchasing power increased due to real wage growth caused by the tight labor market. Residential real estate prices also continued to rise in both Belgium and the Netherlands. This is good news for Retail Estates' customers: when consumers see the value of their homes rising, they are more inclined to invest in improving their homes because this supports the value of their property.

Continuation of sustainability improvements in real estate portfolio

Retail Estates also continues to invest in sustainability and has installed solar panels on various properties and carried out roof and facade renovations for a total of € 11.41 million, which corresponds to 12.5% of its EPRA result. These investments are in line with the strategic objectives for sustainable investments and demonstrate that Retail Estates walks the walk when it comes to ESG. For the first time, Retail Estates has also taken out a green loan in 2024-2025. With this green loan, the company is embedding sustainability in its financing strategy. Furthermore, the real estate company is making room for charging stations for electric cars, which will be installed by external partners in the car parks of its retail properties.

Value of the real estate portfolio rises slightly

In the 2024-2025 financial year, the value of the real estate portfolio increased again to € 2,069.54 million (+2.03% compared to 31 March 2024). This is mainly due to general developments related to estimated rental values (ERV), indexations, and returns on the existing portfolio (€ +34.15 million). On 31 March 2025, the real estate portfolio consisted of 1,023 properties with a lettable area of 1,231,205 m². The limited increase in the value of the real estate portfolio is partly due to a catch-up of the estimated rental values, which are now closer to the contractual rents. Due to the low number of transactions in the peripheral real estate market, there was also little movement in yields.
In 2024-2025, the market for peripheral retail real estate remained largely frozen, especially for properties with a value above € 10 million. This is not surprising in itself: occupancy rates at retail parks remain high and cash flows are holding up, partly supported by rent indexation (+14.6% in Belgium and +11.61% in the Netherlands, both since 1 April 2022). As a result, owners are holding on to their retail parks unless they sell to strengthen their balance sheets or, in the case of some funds, to pay out shareholders. This confirms the excellent profitability of this type of property. The trend that began during the coronavirus period, with retail parks outperforming, is continuing. Moreover, this performance is also attracting more new players to the out-of-town segment.

Due to the lack of movement in the market for out-of-town retail real estate, Retail Estates was unable to acquire any large retail parks in the past financial year. The only noteworthy transaction in Belgium was the sale of the Brixton retail park in Zaventem, which was sold by Nextensa to private investors. Otherwise, properties on the market are mainly in secondary locations.
Despite this frozen market, Retail Estates has continued to arbitrage its real estate portfolio. On 16 July 2024, Retail Estates acquired an additional retail unit in Woonmall Alexandrium (Rotterdam, Netherlands) for € 1.8 million. On 21 February 2025, Retail Estates invested € 10.00 million (including transfer tax) in a retail property in Venlo (Netherlands). These acquisitions were offset by the sale of four individual properties, the sale of two properties on the Keerdok site in Mechelen, and the sale of land positions for apartments developed by real estate developers on the Houthalen and Halle sites, with a combined proceeds of € 7.90 million. Retail Estates also completed properties in Ghent, Houthalen, and Eupen, and expanded a retail property in Aiseau-Presles. 

Debt ratio and interest rate risks under control

Retail Estates pays close attention to extending its current bank financing and hedging interest rate risks. Shareholders' equity was strengthened by a capital increase of € 19.74 million in June 2024 and the allocation of undistributed profits to reserves. As a result, the debt ratio remains low at 42.52% (compared to 44.62% on 31 March 2024). Retail Estates maintains an investment capacity of € 89.56 million within the target debt ratio of 45% that it has set for itself. The average interest rate was 2.08% on 31 March 2025. Assuming a stable perimeter, financing costs will remain at the same level in 2025-2026.

Intention to pay an interim dividend of € 5.10 gross per share

The Board of Directors of Retail Estates intends to pay an interim dividend in the form of an optional dividend of € 5.10 gross (or € 3.57 net, i.e. the net dividend per share after deduction of 30% withholding tax) per share (participating in the results of the 2024-2025 financial year) in the course of June 2025.