Highlights

• Net rental income of € 145.79 million (+2.54%).
• EPRA result (Group)¹ of € 91.90 million (+1.14% compared to 31 March 2025).
• EPRA result per share (Group) of € 6.15 (compared to € 6.21 EUR on 31 March 2025) (based on the weighted average number of shares)₂.
• Slight increase of the fair value of the real estate portfolio to € 2,101.66 million (+1.55% compared to 31 March 2025).
• EPRA NTA (attributable to the shareholders of the parent company) of € 83.41 (versus € 80.87 on 31 March 2025).
• Continued sustainability improvements to the real estate portfolio with € 13.02 million invested in insulation and green energy.
• Occupancy rate of 97.82% (versus 97.26% on 31 March 2025).
• Debt ratio decreased to 40.39% (versus 42.52% on 31 March 2025).
• First acquisition of a retail park in France (post-balance sheet date). This acquisition is in line with the property company’s growth and internationalisation strategy.
• USPP concluded (post-balance sheet date), enabling Retail Estates to strengthen its access to international capital markets and spread its financing risk across various sources and maturities.
• Proposed dividend of € 5.20 gross per share.
• Outlook for 2026-2027: net rental income of € 149 million and gross dividend of 5.25 EUR per share.

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, exclusive other portfolio income, 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 319,035 new shares as a result of the capital increase within the context of the optional interim dividend on 27 June 2025. The weighted average number of shares is 14,950,326.

Financial year 2025-2026 in a nutshell

Retail Estates (Euronext Brussels: RET), a specialist in the letting of out-of-town retail property in Belgium and the Netherlands, reported a slight increase in results for the 2025-2026 financial year compared with the previous financial year.

EPRA earnings up again

The Group’s EPRA earnings (i.e. profit excluding portfolio gains and losses and changes in the fair value of financial assets and liabilities) rose to € 91.90 million, an increase of +1.14% compared with the same period last year (€ 90.86 million). The past financial year 2025-2026 was the first in which Dutch taxes were paid in all quarters. This additional impact of € 1.98 million was largely offset.

On a per-share basis, this resulted in an EPRA earnings of € 6.15 compared to € 6.21 as at 31 March 2026. This represents a slight decrease compared to the previous financial year, mainly due to the issue of new shares in connection with the capital increase following the interim optional dividend in June 2025. The calculation of EPRA earnings per share takes into account the weighted average number of shares as at 31 March 2026, being 14,950,326 shares. Due to the issue of 319,035 new shares in connection with the capital increase following the interim optional dividend, the weighted average number of shares increased in 2025-2026. Based on the total number of shares entitled to dividend, the EPRA earnings amount to € 6.11 per share, compared with € 6.18 as at 31 March 2025.

The EPRA net tangible asset (NTA) value of the share (including the result for the past financial year, of which € 5.20 is proposed as a gross dividend) stood at € 83.41 on 31 March 2026, compared with € 80.87 on 31 March 2025.

In 2025-2026, the operating margin rose slightly to 80.97% (compared with 80.41% in the previous financial year). The operating margin reflects the profitability of the property portfolio without taking into account changes in property values, taxes, depreciation, financing costs and one-off items.

Operating results stable

Rental income amounted to € 146.12 million (+1.89% compared with 31 March 2025) and increased by +2.0% on a like-for-like basis. The increase is mainly due to indexations of existing rents.

The occupancy rate rose to 97.82%. This high occupancy rate shows that tenants at Retail Estates locations continue to achieve good results and few shops are closing. Where this did happen, Retail Estates managed to re-let most properties quickly thanks to the quality of the locations. This was the case, for example, after Leen Bakker in Belgium and Carpetright in the Netherlands filed for bankruptcy. For a large number of the Belgian Leen Bakker shops concerned, the liquidator found a new tenant, meaning there was no loss of rent due to vacancy. In the Netherlands, seven of the eight Carpetright properties were re-let by Retail Estates at higher rents. Furthermore, the property company had reduced its exposure to several of these retail chains in recent years.

Continuation of sustainability measures in the property portfolio

Retail Estates continues to invest in sustainability and has carried out roof and façade renovations on various properties and installed solar panels for a total sum of € 13.02 million. These investments are in line with the strategic objectives for sustainable investments and demonstrate that Retail Estates continues to take concrete steps to reduce the carbon footprint of its property portfolio. Furthermore, the property company is making space for electric vehicle charging points, which are being installed by external partners in the car parks of its retail properties.

Value of the property portfolio rises slightly

In the 2025-2026 financial year, the value of the property portfolio increased again to € 2,101.66 million (+1.55% compared with 31 March 2025). This is mainly due to the positive revaluation of the existing property portfolio amounting to € 27.54 million. As at 31 March 2026, the property portfolio comprised 1,006 properties with a lettable area of 1,191,234 m². The modest increase in the value of the property portfolio is partly due to a catch-up in estimated rental values, which are now closer to the contractual rents.

Asset rotation

In 2025–2026, there was clearly more activity in the market for out-of-town retail property, with a significant increase in the number of transactions in Belgium and, to a lesser extent, in the Netherlands. In line with its strategy, Retail Estates focused primarily on asset rotation in both countries. In the Netherlands, the property company sold a residential mall in Veenendaal (€ 12 million) at the start of the financial year. On the other hand, it acquired three retail units in Woonmall Alexandrium in Rotterdam (Netherlands). With this purchase, Retail Estates increased its stake via Alex Invest to 49.52% of the voting rights in the co-ownership. In Belgium, Retail Estates sold a site in Zaventem as part of the widening of the Brussels Ring Road (€ 11.63 million). Retail Estates recorded a capital gain of € 1.19 million on this transaction. In addition, it sold the remaining retail units at the Keerdok site in Mechelen, properties in Sint-Martens-Latem, Jodoigne, Kuurne, Fléron and various smaller units at just above book value.

Growth through France

After the end of the financial year, Retail Estates acquired its first retail park in France: L’Oseraie in Osny (Val-d’Oise). This acquisition is in line with the property company’s growth and internationalisation strategy. Following this initial acquisition in Île-de-France, Retail Estates will focus on investments on the outskirts of Paris and other major French cities.

Debt ratio and interest rate risks under control

Retail Estates pays close attention to renewing its current bank financing and hedging interest rate risks. Equity was strengthened by a capital increase of € 18.22 million in June 2025 and the retention of undistributed profits. As a result, the debt ratio remains low at 40.39% (compared to 42.52% as at 31 March 2025). Retail Estates retains an investment capacity of € 125 million, within the target debt ratio of 45% that it has set for itself. The average interest rate stood at 2.12% on 31 March 2026.

Following the end of the financial year, Retail Estates concluded a US Private Placement (USPP) with a US institutional investor for USD 150 million with a maximum term of 12 years. The terms will be determined at a later date. With this transaction, Retail Estates secures its access to financing to realise its growth plans. Furthermore, the property company is strengthening its access to international capital markets and spreading its financing risk across various sources and maturities.

Proposed dividend of € 5.20 gross per share

The Board of Directors of Retail Estates will propose to the General Meeting of Shareholders, to be held on 20 July 2026, propose the payment of a gross dividend of € 5.20 (or € 3.64 net, i.e. the net dividend per share after deduction of 30% withholding tax) per share for the 2025-2026 financial year (which represents a share in the profit for the 2025-2026 financial year). The dividend will be paid in cash at the end of July 2026. In view of the available investment capacity and the objectives to safeguard earnings per share, an optional dividend will not be offered.