Retail Estates : 22/05/2024 - Van Lanschot Kempen Real Estate Seminar

Kempen European Real Estate Seminar

22-23 May 2024

IMPORTANT MILESTONES	3
RETAIL ESTATES IN NUMBERS	15
FINANCIAL RESULTS	24

2| RETAIL ESTATES

Important milestones 1998-2023

Retail Estates on the stock exchange

IPO and first listing on

Euronext Brussels

1998 1999

Strengthening of the capital

First public capital increase

2015

Strengthening of the capital

Fourth public capital increase

Independant			Value real estate
Retail Estates becomes
		portfolio
an independently
		Real estate portfolio
managed investment
		reaches the milestone of
company with fixed
		EUR 250 million
capital
2002		2003	2008		2011
		Strengthening of			Value real estate
				portfolio
		the capital
				Real estate portfolio
		Second public
				reaches the milestone
		capital increase
				of EUR 500 million

Diversification of
financing sources			Optional stock dividend
bond issue - private
		offered to
placement
		the shareholders for
			the first time
2014		2013	2012
Sicaf becomes		Strengthening of the
Belgian Reit
	capital
(regulated real
	Third public
estate company)
	capital increase

3| RETAIL ESTATES

Important milestones 1998-2023

Value real estate portfolio

Real estate portfolio reaches the milestone of EUR 1 billion

2016

Diversification of	Inclusion in EPRA index
financing sources	The inclusion in the
bond issue - private	EPRA index contributes
placement	to the share's visibility

Full recovery of operating results to

pre-corona level

2023 2022

25th anniversary of Retail Estates

20 years Retail	Value real estate
Estates on the	portfolio
stock exchange	Real estate portfolio
Additional listing on	reaches the
Euronext Amsterdam	milestone of EUR 1,5 billion
2018	2019

Strengthening of the capital

Fifth public capital increase

Expansion to the

Netherlands

Diversification of financing sources

bond issue - private placement of EUR 75 million

2021

2020

Stable portfolio valuations and increasing dividend

Despite months of mandatory shop closures due

to Corona crisis

4| RETAIL ESTATES

• Acquisition of Alexandrium Megastores
  in Rotterdam"

5| RETAIL ESTATES	Rotterdam, The Netherlands

Echoes from the retailers

➤ 1. Increased spending on travel and

	horeca
➤ 2. Seasonal aspects in fashion
➤ 3.	Have and have-nots:
	Belgium versus the Netherlands
➤ 4.	Price increases versus volumes
➤ 5.	Elections everywhere
➤ 6.	Impulsive versus functional buying

6| RETAIL ESTATES

Pressure on P/L retailers: ups and downs

1. Inflation

• Full indexation Belgium : strongly reduced speed
• Full indexation The Netherlands : corrections to the CBS index since 1 March 2023
• Evolution contractual rent versus ERV
• Rent reviews : renewals/break date

1. Energy crisis

• The calm after the storm

C. Salary costs

➣ Inflation in nominal and real terms

D. Logistics

➣ Click and bricks

E. Circular economy

➣ Hidden costs

7| RETAIL ESTATES

Outlook for Retail Estates

1. PROFITABILITY
2. • Rental income - incasso - fund
   • Vacancy
   • Maintenance costs
   • Personnel costs
   • Interest costs
   • Taxes
   • Dividend

8| RETAIL ESTATES

Outlook for Retail Estates

B. BALANCE SHEET

• Property value
• Investment capacity
• Financing capacity
• Capital markets

9| RETAIL ESTATES

Outlook for Retail Estates

C. MITIGATING FACTORS

• Low unemployment
• Indexation of wages
• Who is my client's client
• Financial position various tenants
• Trained RE team
• Cost control: OPEX (ESG/SAP)

10| RETAIL ESTATES