Summary

• EPRA earnings for the Group¹ of the first half of the 2025-2026 of the financial year amounted to € 45.46 million (+0.25% compared to 30 September 2024) or € 3.06 per share (compared to 3.12 on 30 September 2024).
• Rental income of € 72.84 million (+2.26% compared to 30 September 2024). At constant portfolio rental income increased by +2.20%.
• Debt ratio almost stable at 42.80% (compared to 42.52% on 31 March 2025).
• Slight increase of the fair value of the real estate portfolio to € 2,087.06 million (+0.85% compared to 31 March 2025).
• Occupancy rate slightly higher at 97.40% (compared to 97.26% on 31 March 2025).
• 19 of the 1,020 shops involved in judicial reorganisation proceedings or bankruptcy. Two properties have now been transferred to new tenants. Preliminary agreements have been concluded with prospective tenants for ten properties.
• Expected gross dividend of € 5.20 per share is maintained.
• Half-year report 2025-2026 available.

First half of the 2025-2026 financial year in a nutshell

In the first six months of the 2025-2026 financial year, Retail Estates (Euronext Brussels: RET) posted stable operating results in a challenging environment for the retail sector.

Stable operating performance

Rental income amounted to € 72.84 million (+2.26%compared to 30 September 2024), was fully indexed and increased by +2.20% on a like-for-like basis. The occupancy rate increased slightly to 97.40% compared to 31 March 2025.

Leen Bakker Belgium and Carpetright Netherlands recently ran into difficulties. Retail Estates leases a total of 19 properties to both retail chains out of a total portfolio of 1,020 shops.

In Belgium, home furnishings retailer Leen Bakker Belgium requested the transfer of its 44 sales outlets under judicial authority in August 2025. Retail Estates leases eleven shops to Leen Bakker Belgium with a combined annual rental income of € 2 million or 1.39% of total annual rental income. The rents up to and including November have been paid. The liquidators are looking for new tenants for the retail properties. Retail Estates is supporting the candidacy of some of its tenants for six of the eleven properties, including furniture chain Jysk, which has confirmed that it will take over five stores in Bruges (V-Mart), Dendermonde, Kuurne, Liège and Marche-en-Famenne. There is also interest in the five remaining properties, but not necessarily within the currently licensed commercial activities.

In the Netherlands, Carpetright Nederland, a home furnishings chain specialising in floor coverings, filed for bankruptcy in September 2025. Retail Estates leases eight retail properties to the chain. Together, they represent an annual rental income of € 1.05 million or 0.71% of total annual rental income. The rents for September, October and November have not yet been paid. Two properties were transferred to new tenants in recent days (Den Bosch, Maastricht). The new leases have been concluded at higher rents. In addition, Retail Estates has preliminary agreements for Heerlen, Apeldoorn, Venlo and Cruquius. Discussions are still ongoing for two retail properties (Spijkenisse and Breda). The interest is partly due to the favourable size of the properties.

Retail Estates has reduced its exposure to both Leen Bakker and Carpetright in recent years, either by reducing the number of retail properties leased or by reducing the retail space. The remaining properties are all in attractive locations, which facilitates re-letting.

According to Retail Estates, the problems at these chains are linked to their weak financial basis as a result of the disappearance of their parent/sister companies. The rental market for home furnishings retail remains dynamic, as evidenced by the interest of prospective tenants in all vacant properties. In addition, the retail climate is improving: Dutch consumption is rising on an annual basis, while consumer confidence in Belgium has been increasing for several months.

Value of the property portfolio rises slightly

In the first half of the 2025-2026 financial year, the fair value of the property portfolio rose again to EUR 2,087.06 million (+0.85% compared to 31 March 2025). The value of the property as estimated by property experts has increased (€ ++8.50 million), confirming the stability of the value of out-of-town retail property. On 30 September 2025, the property portfolio consisted of 1,020 properties with a lettable area of 1,213,544 m².

In the first half of the current financial year, Retail Estates acquired three retail units in Woonmall Alexandrium in Rotterdam (the Netherlands) for € 5.1 million, slightly above fair value (€ 4.7 million). These units were acquired through Alex Invest nv, a 50% subsidiary incorporated under Dutch law. With this purchase, Retail Estates increases its interest via Alex Invest to 49.52% of the voting rights in the co-ownership. 

Retail Estates continues to make its portfolio more sustainable. In line with its sustainability strategy, € 5.76 million was invested in making retail parks in Belgium and the Netherlands more sustainable as at 30 September 2025. During the first half of the year, four solar panel installations were commissioned, bringing the total to 20 locations with solar panels. In addition to solar panel installations, sustainability investments also include investments in roof renovations, heat pump installations and exterior joinery at 22 locations.

In addition, there is a recurring, limited positive impact from the installation of charging stations by third parties in car parks leased by Retail Estates (€ +0.7 million). Programmes are underway at various sites whereby partners are installing fast and/or slow chargers. On 30 September 2025, there were 48 locations with charging stations for electric cars in Belgium and the Netherlands combined.

EPRA result increased

The Group's EPRA result (i.e. profit excluding portfolio results and changes in the fair value of financial assets and liabilities) increased to € 45.46 million, up 0.25% compared to the same period last year.

Per share, this represented an EPRA profit of € 3.06 for the first half of the year, compared to € 3.12 on 30 September 2024. The calculation of EPRA earnings per share takes into account the weighted average number of shares on 30 September 2025, which is 14,874,698 shares. The issue of 319,035 new shares in connection with the capital increase following the interim optional dividend on 26 June 2025 has increased the weighted average number of shares in 2025. The newly issued shares will participate in the profit from 1 April 2025, resulting in a slight dilution of earnings per share in the first half of the year. The funds raised will be invested in the expansion of the property portfolio. Pending investment opportunities, the funds were used to reduce bank debt, thereby lowering the debt ratio.

The EPRA net tangible asset value (NTA) of the share was € 78.99 on 30 September 2025, compared to € 80.87 on 31 March 2025. This decrease is also due to the increase in the weighted average number of shares.

Debt ratio and interest rate risks under control

Retail Estates pays a lot of attention to extending current bank financing and hedging interest rate risks. Equity was strengthened by a capital increase of € 18.22 million in June 2025 and the reservation of undistributed profits. As a result, the debt ratio remains low at 42.80% (compared to 42.52% on 31 March 2025). Retail Estates maintains an investment capacity of € 78.44 million within the target debt ratio of 45% that it has set for itself.

Dividend maintained at EUR 5.20 gross per share

The dividend forecast remains unchanged at € 5.20 gross per share (€3.64 net). This represents an increase of 2% compared to the 2024-2025 financial year.

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.