Half-year results 2026-2027: Strong first half year thanks to higher rental income and strict cost control
13/11/2026

Highlights

• Net rental income of € 75.35 million (+3.65% compared to € 72.69 million on 30 September 2025). At constant portfolio (like-for-like) gross rental income increased by +2.56%, attributable to indexation of existing rents and a higher occupancy rate compared to 30 September 2025.
• Strict cost control has led to a significant improvement in the operating margin (85.24% compared with 80.21% a year earlier).
• EPRA earnings (Group)¹ of the first half of 2026-2027 amounted to € 49.03 million (+7.86% compared to € 45.46 million on 30 September 2025). The increase is the result of higher rental income and an improved operational efficiency, partly offset by higher financing costs.
• EPRA result per share (Group) of € 3.26 (+6.54% compared to € 3.06 on 30 September 2025).
• The forecast for net rental income at the end of the financial year has been raised to €150.5 million (compared with the previously announced €149 million). Expected gross dividend of € 5.25 per share is maintained.
• Watch a recording of the earnings call of the 2026/27 half year results of Retail Estates on Youtube.

First half of the 2026-2027 financial year in a nutshell

In the first six months of the 2026-2027 financial year, Retail Estates (Euronext Brussels: RET) posted a strong increase of its EPRA result thanks to a higher rental income and cost savings.

EPRA result rises sharply

The EPRA result of the Group increased to € 49.03 million, up 7.86% compared to the same period last year.

Per share, this represented an EPRA result of € 3.26 for the first half of the year, +6.54% compared to € 3.06 on 30 September 2025. The calculation of EPRA earnings per share takes into account the weighted average number of shares on 30 September 2026, which is 15,026,370 shares.

The increase in the EPRA result is mainly due to higher rental income and an improved operational efficiency. The like-for-like rental income increased by +2.56% mainly due to indexation and a higher occupancy rate (97.62%) compared to last year (97.40%). Additionally, the property costs decreased thanks to strict cost control and lower vacancy costs. These savings also increased the operating margin to 85.24%, a significant rise from 80.21% a year earlier.

In line with its strategy to build and manage a future-proof real estate portfolio, the investment focus is shifting towards strategic core assets, whilst maintenance expenditure on properties with a more limited long-term strategic outlook is being scaled back. At the same time, a larger proportion of the investments in the core portfolio consists of structural improvements that support the assets’ lifespan, energy performance and lettability. This development leads, on the one hand, to lower maintenance costs and, on the other, to a larger proportion of expenses being added as investments to the real estate portfolio, in accordance with the valuation rules. The positive impact of this on the EPRA result (€ +0.09) is becoming apparent for the first time this semester.

The EPRA net tangible asset value (NTA) of the share was € 82.12 on 30 September 2026, compared to € 83.41 on 31 March 2026. The decline is mainly due to the dividend being paid out in the second quarter.

Operating performance trending positively

Rental income amounted to € 75.18 million (+3.21% compared to 30 September 2025). On a like-for-like basis, it increased by +2.56%, mainly attributable to indexation of existing rents and a higher occupancy rate compared to one year ago.

The occupancy rate² slightly decreased to 97.62% compared to 31 March 2026 (97.82%), but increased in comparison to a year ago (97.40%). In the first half of the year, Retail Estates in Belgium signed contracts with retailers that are very active in the lettings market, such as the Medi-Market pharmacy chain and the discount retailer Wibra. In the Netherlands, it welcomed, amongst others, sports giant Adidas and the discount chain Die Grenze. Visitor numbers in Belgium³ rose by 0.5% compared with last year.

Value of the property portfolio rises slightly

In the first half of the 2026-2027 financial year, the fair value⁴ of the real estate portfolio rose by € +46.87 million to € 2,138.90 million (+2.24% compared to 31 March 2026). The value of the property as estimated by property experts has increased (€ +9.86 million), confirming the stability of the value of out-of-town retail property.

The majority of the increase in the fair value of the property portfolio stems from the purchase of a retail park in France (29 million euros). Retail Estates made its first acquisition there by adding the L'Oseraie retail park in Osny (Val-d'Oise) to its portfolio. This retail park covers an area of 12,734 m² and comprises 10 units. The annual contractual rental income amounts to 1.95 million euros. More information is available in the press release published on 10 April 2026.

On 30 September 2026, the property portfolio consisted of 1,019 properties with a lettable area of 1,203,213.97 m².

Debt ratio and financing

Retail Estates pays a lot of attention to extending current bank financing and hedging interest rate risks. Equity was strengthened by the reservation of undistributed profits. As a result, the debt ratio remains low at 42.11% (compared to 40.39% on 31 March 2026). Retail Estates maintains an investment capacity of € 150 million within the target debt ratio of 45% that it has set for itself at the end of the financial year.

The weighted average interest rate stood at 2.57% on 30 September 2026, compared with 2.12% on 31 March 2026 at the end of the previous financial year. As at 30 September 2026, 93.28% of the interest rate risk is hedged through cash flow hedges. As stated in the publication of the first-quarter interim statement, Retail Estates expects the average interest rate to rise gradually to 2.75% during the current financial year.

The value of the financial hedging instruments has increased by € 13.43 million (non-cash) due to the increasing long-term interest rates in the past months.

The average maturity of the loan portfolio is 3.00 years. The pro forma impact of the USPP issue would extend the maturity to 4.1 years.

Outlook for net rental income and dividend

The expected net rental income as at 31 March 2027 (based on the projected composition of the real estate portfolio) amounts to € 150.5 million (versus the previously communicated amount of € 149 million).

The dividend forecast remains unchanged at € 5.25 gross per share (€ 3.68 net).

Earnings call for analysts and investors

CEO Nicolas Beaussillon and CFO Kara De Smet will discuss the results at 10.00 am on Friday 13 November during a webinar. This webinar can be viewed following registration and will subsequently be available on the Retail Estates YouTube channel.

Notes

[1] The EPRA earnings are calculated as follows: net result excluding changes in fair value of investment properties, excluding the result on disposal of investment properties, exclusive other portfolio income, exclusive changes in fair value of financial assets and liabilities and exclusive minority interests related to the aforementioned elements.

[2] The occupancy rate is calculated as the estimated rental value (ERV) of the let areas as a proportion of the estimated rental value of the total portfolio, expressed in euros.

[3] Based on 15 Belgian retail parks.

[4] The fair value is the investment value as determined by an independent property expert, from which the hypothetical transaction costs have been deducted in accordance with IFRS 13. The fair value is the carrying amount under IFRS (see also Appendix 19 in the 2025-2026 annual report).