Castellana Properties Socimi S A : reawarded investment-grade BBB credit rating by Fitch

• The company has again obtained a long-term BBB (Investment Grade) rating, with a ratings outlook of stable

• Fitch Ratings commended the company's active management strategy, particularly the refurbishment projects at Los Arcos, Bahía Sur and El Faro shopping centres

• Castellana Properties' sound operational management has driven up rental income, footfall and sales, while keeping occupancy and collection rates at around 99% - the highest in the sector

Castellana Properties, a listed company specialising in the retail sector has obtained a long-term BBB- Investment Grade credit rating for the second year running with a ratings outlook of stable by Fitch Ratings, the internationally renowned credit rating agency. Fitch Ratings evaluates companies, local authorities, regions and countries on their capacity to repay their debts and their potential to attract investment. It looked very positively on Castellana Properties' active management approach, with a special mention for the refurbishment of Los Arcos, Bahía Sur and El Faro shopping centres and the value this has created. The agency praised the latest refurbishment works under way at Vallsur and El Faro shopping centres, as Castellana Properties pursues further growth by investing in its own assets.

The company's portfolio has been performing strongly, reflected in the 2.5% value uplift reported in its most recent financial results, released in May 2023. Furthermore, exceptionally high occupancy and rent collection rates across its portfolio (both in the region of 99%), are a testament to the prominent position of its shopping centres and retail parks within their catchment areas.

In making its assessment, Fitch cited successes including the refurbishment of Los Arcos, Bahía Sur and El Faro shopping centres, coupled with a proactive rental strategy and compelling retail offer; the increase in footfall and sales since 2022, the first year to transcend the pre-pandemic baseline; and a €7.3 million boost to year-on-year income.

Moreover, the agency noted that Castellana Properties has benefited over the last financial year from improvements in operational management and the disbursement of dividends following its investment in Lar España in 2022. Now the majority shareholder, Castellana Properties regards this investment as a further step towards geographical diversification. Its own shopping centres and retail parks are concentrated in the autonomous regions of Andalusia and Extremadura, whereas 50% of Lar España's portfolio is divided between Castilla La Mancha and several northern Spanish regions.

This positive credit rating reflects the dedicated efforts put in by Castellana Properties over the last year. In fact, as Fitch notes, as of 2023 the company is not due to make any significant fixed-term debt repayments until September 2025. Consequently, its highly respected portfolio is currently valued at €1,118 million (gross). The company holds 16 assets, all shopping centres and retail parks.

Débora Santamaría, CFO of Castellana Properties, commented, "We are honoured to once again receive this recognition from one of the world's most trusted credit rating agencies. At Castellana Properties, we will continue to stand behind the Spanish retail sector, investing in projects that underline the significant influence of our portfolio and our position as leaders in innovation and sustainability".