Castellana Properties Socimi S A : Financial results presentation FY2021

FY2021

FINANCIAL RESULTS PRESENTATION

APRIL 2020 - MARCH 2021

KEY HIGHLIGHTS / RESULTS PRESENTATION

HIGHLIGHTS

COVID-19

• The strength of the portfolio, and the experience of the management team has equipped Castellana to overcome the challenges of the pandemic, while remaining flexible for potential changes in the future
• We have been in constant contact with our tenants from the outset of the pandemic, to collectively reach the best solutions for both parties. We have now closed agreements with 95% of our tenants, providing a level of certainty to our business
• Larger basket sizes contributing to good sales performance and higher conversion rates along the portfolio

FINANCIAL PERFORMANCE

• GAV of €987 million at March 2021 (-1.6% on March 2020) due to the Covid-19 impact and accumulated GAV adjustment of -4.0% in the last 18 months
• Headline GRI of €58.6 million, increased by 5% vs FY2020 (not considering one-off rental discounts amounting €18.8 million) with a NOI margin of 89%.
• EPRA NAV of €501 million or €5.81 per share

(-10.3% vs March 2020) impacted by the pandemic

• Net LTV of 49.69% at an all-in cost of 2.39% per annum and an average maturity of 4 years

OPERATIONAL PERFORMANCE

• Capex investments of c. €29 million in FY2021
• Occupancy stabilised at 98.3% at 31 March 2021
• 116 new leases signed (renewals and new lease agreements) generating additional annualised NOI of c.€4.5 million

VALUE CREATION

• Repositioning projects are close to completion, with 92.8% of the GLA signed and committed. Total capex budget of c. €29 million
• We are fostering innovation and moving forward despite these uncertain and challenging times. The iCast program is continuing and innovation projects are ready to launch

2

COVID-19

• OUR RESPONSE TO COVID
• FOOTFALL & SALES
• E-COMMERCEEVOLUTION
• CUSTOMER TREND
• RETAILER'S SOUNDINGS
• IMPROVING PORTFOLIO METRICS IN THE FACE OF THE PANDEMIC

CASTELLANA PROPERTIES OVERVIEW/ RESULTS PRESENTATION

OUR RESPONSE TO COVID

ACTION PLAN HIGHLIGHTS OVER PAST 12 MONTHS - APRIL 2020 to MARCH 2021

BUSINESS IS	STRONG TENANT	PARTNERING WITH	VALUATION
& INDUSTRY
ROBUST	DEBT PROVIDERS	ASSUMPTIONS
RELATIONSHIPS

• Healthy treasury position with large buffer for cash management
• Headline GRI base income growth of 5% versus FY2020 displaying the strength and resilience of the business
• Total support from shareholders
• Legal review of lease agreements was undertaken where contracts with tenants were found to be robust.
  Over 94% of tenants are national and international tenants better placed to ride out the pandemic

• Total one-offrental discounts for FY2021 of €19 millions to ensure the viability of tenants long-run. Affected tenants have paid service charges in full throughout the pandemic.
• Castellana has negotiated these discounts in exchange for more favourable lease terms including longer lease lengths, break option waivers and more frequent sales reporting
• Through the tenant's support Castellana has made a positive impact in those areas and communities where the centres are located, becoming a key pillar of the economic and social recovery

• Covenants compliance intact as at 31 March 2021.
• Refinancing agreement with the Syndicated Banks completed
• We continue to foster excellent relationships with our financing partners

• Valuations as 31 March 2021 still reflecting the effect of the Covid-19:
• • Potential turnover rents and mall income also impacted
  • Discount rates (IRRs) adjusted to reflect market sentiment
  • Lower market rental growth rates
  • CPI adjusted to the latest available data

4

CASTELLANA PROPERTIES OVERVIEW / RESULTS PRESENTATION

FOOTFALL & SALES

STRONG REBOUND IN FOOTFALL AND SALES ONCE CUSTOMERS ARE ABLE TO RETURN - LARGE RETAIL PARK EXPOSURE CONTRIBUTING TO SALES OUTPERFORMANCE

FOOTFALL & SALES RECOVERY

												1ST WAVE																										2ND WAVE (3)				3RD WAVE (3)
18																																																										120%
16
																																																					100%
14
																																																											80%
12
10
																																																					60%
8
6																																																												40%
4
																																																					20%
2
0																																																										0%
			Jan		Feb		Mar		Apr	May		Jun	Jul			Aug		Sep		Oct		Nov			Dic	Jan		Feb		Mar

2020		2021
Nº of assets open and without highly restricted mobility	Footfall Recovery	Sales Recovery

• Larger basket sizes contributing to good sales performance and higher conversion rates despite lower footfall than previous year
• Retail park sales are above pre-covidlevels. Retail parks comprise 42% of Castellana's portfolio by GLA
• Despite restrictions imposed on shopping malls since November, footfall has recovered to 80% of pre-covidlevels over Christmas period
• In March, footfall and sales recovered to 74% and 81% vs 2019, respectively

1. Footfall Data includes the following shopping centres: El Faro, Bahía Sur, Los Arcos, Vallsur, Habaneras, Puerta Europa and Granaíta Retail Park. There are no counters in the rest of the retail park assets. Granaita Retail Park counts only cars so we have estimated 2 people on average per car.
2. Sales data includes all retail assets.