Castellana Properties Socimi S A : Financial results presentation FY20

FY2020

April 2019 - March 2020

FINANCIAL RESULTS PRESENTATION

• 100% of our assets have reopened. Dominant shopping centres in its catchment areas

KEY HIGHLIGHTS /RESULTS PRESENTATION

HIGHLIGHTS

COVID - 19

• Portfolio´s health and liquidity status together with an experienced Management allows Castellana to manage the situation and be flexible to changes ahead

  FINANCIAL PERFORMANCE

  • GAV of €1,003 billion as of end March 2020 (-2.38% from September 2019) adjusted for Covid-19 effect

  • GRI of €56 million and NOI €51 million (NOI margin of 92%)

  • EPRA NAV of €559 million or €6.48 per share (-3.0% from March 2019) adjusted for Covid-19 effect

  • Net LTV of 44.68% at an all-in cost of 2.47% and an average maturity of 5y.

  • DPS of €0.47 per share for the FY2020

  (1)Asset purchase price including transaction costs

  OPERATIONAL PERFORMANCE

  • Investments of c. €110 million(1)in FY2020

  • Occupancy of 98.30% by 31stMarch, +0.45% increase on a LfL basis

  • 165 new leases (renewals and new contracts) generating additional annualized NOI of c. €5.4 million

  VALUE CREATION

  • Repositioning Projects starting their final stage with an 85.3% GLA signed and committed. Total capex budget of c. €29 million

  • New rent signed of €12.24 million

COVID-19

• OUR RESPONSE TO COVID

• REOPENING STRATEGY

• CUSTOMERS FEEDBACK

• FOOTFALL SHOPPING CENTRES

• RETAILER SOUNDING

OUR RESPONSE TO COVID

ACTION PLAN HIGHLIGHTS OVER PAST 3 MONTHS - APRIL to JUNE 2020

BUSINESS IS ROBUST

STRONG TENANT & INDUSTRY RELATIONSHIPS

• Extensive scenario modelling undertaken to understand the impacts of the business over the next 12 - 24 months where business was found to be well capitalised and stable

• Legal review of lease agreements where contracts with tenants were found to be robust. Over 93% of tenants are national and international tenants better placed to ride out the pandemic

• Healthy treasury position with large buffer for cash management

• Total support from shareholders

• 100% Rental discounts for April have already been granted with May and the rest of the year currently under discussion - this has facilitated significant goodwill with tenants in future negotiations. Affected tenants have paid service charges in full.

• Castellana is negotiating these discounts in exchange for more favourable leases including longer lease terms, break option waivers and monthly sales reporting

• Promoted Retail Landlords Forum to lobby for government assistance

PARTNERING WITH

DEBT PROVIDERS

• Extensive discussions with banks to communicate Castellana´s strong balance sheet position

• Banks have agreed to waive covenants for 12 months

• Banks agreed to a deferral of amortization on capex loan

• Castellana will continue to service interest payments as normal

VALUATION ASSUMPTIONS

• Valuation prepared as at 31 March 2020 reflects the possible impact of the Covid-19 were applied as follows:

  • Rent discounts considered for the period April to December

  • Potential turnover rents and mall income also impacted

  • Discount rates (IRRs) adjusted to reflect market sentiment

  • Lower market rental growth rates

REOPENING STRATEGY1/2

CASTELLANA PROPERTIES IMPLEMENTED MORE THAN 200 HEALTH AND HYGIENE MEASURES IN EACH SHOPPING CENTRE TO MAKE CENTRES A SAFE PLACE FOR CUSTOMERS, TENANTS AND STAKEHOLDERS

3 MAIN OBJECTIVES

HEALTH & SAFETY

• Identification of risk points within the Health and Hygiene of the asset.

• Regular Disinfection of Assets post COVID - 19.

• Provide personal protective equipment (PPE) to our customers.

• Implementation of Hygiene and Health Protocols.

Creation of a Castellana COVID-19 protocol document for all our centres

Vehicle accesses & Parking

SOCIAL DISTANCING

• Keep social distancing of 2 meters in the assets.

• New signage into the shopping centres to keep customers and employees safe

• Active Access Ratio x people / m2.

AWARENESS

• Behavioral regulations. Awareness of Customers, Personnel and stores of COVID 19 Regulations and Protocols to apply

• Extensive communication campaigns to alert customers to the new normality

Resting areasPrivate premisesSocial Networks & Digital ChannelsPedestrian accesses

MallReception DeskLoading platforms and waste management points

Travellators & Mechanical stairsBreastfeeding roomsSC Management officeTechnical roomsElevatorsToiletsStaff areasPSP (Security 24h)

Measures are especially applied at key interaction points. In total, an average of 18 points have been detected in each shopping mall