Castellana Properties Socimi S A : Preclosing Update September 2022

FY22 H1

PRE-CLOSE PRESENTATION

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ECONOMIC UPDATE: SPAIN

GDP

OUTLOOK

LABOR

MARKET

TOURISM

• In Q2 2021, Spanish GDP increased by 2.8% vs. Q1 2021 and increased by 19.8% vs. Q2 2020.
• The Spain GDP growth outlook for 2021 has recently been revised upwards from 5.5% to 6.5%.
• This is mainly due to increased consumption attributed to faster than expected vaccination roll-out,pent-up demand from a high level of household savings, expected to be c.€60bn by Q42021, and the NextGenerationEU Plan which aims to distribute 70% of total available funds by the end of 2022 and the remaining 30% by 2023
• GDP is expected to recover to 2019 levels by 2022
• Inflation reached 3.3% in August (YoY) due to increased consumption levels and significant increases in energy-related price levels and commodities. Analyst consensus estimates that 2021 will close with an annual inflation rate of 3.4%
• Unemployment is expected to stabilise back to 2019 levels of just over 14.2% by 2022. As at July 2021, unemployment rate reached c. 14% vs. 16% in July 2020
• In Q2 2021, total unemployment dropped by c. 100k workers to 3.5 million people
• There was a reduction in furloughed workers (ERTE) in Q2 2021 from 4% of enrolled workers to c. 3%
• ERTE program has been extended to the end of September 2021
• Spain received 4.4 million international tourists in July 2021, up 78% from 2020, and 9.8 million for the year to the end of July 2021, however this is still only c. 55% of the levels seen in 2019
• Spain regional governments and the tourism sector are attempting to extend its high season into September and October to increase visitor levels

Source: BBVA, EL PAIS, European Commission, Funcas	2

UPDATE ON COVID-19 IN SPAIN

SPAIN ACHIEVED THE TARGET OF VACCINATING AT LEAST 70% OF THE POPULATION BY THE END OF AUGUST 2021

VACCINATION PROGRAMME

FOLLOWING THE WAVES

Fully Vaccinated	At least 1 shot
73%	78%
of population	of population

• Vaccination campaign enjoys a high acceptance rate by the Spanish population, ranking 3rd in Europe in the level of population fully vaccinated. According to the Spanish Ministry of Health, c. 90% of the population trusts the positive effects of being vaccinated
• Elderly and other vulnerable people have already been vaccinated, significantly reducing deaths and pressure in ICU beds. 100% of people >80 years of age, 99% between 70-79and 98% of people between 60-69years of age have been fully vaccinated
• At the current vaccination rate, 90% of the population will be vaccinated by October 2021

KEY INDICATORS

• Accumulated incidence in last 14 days reached 160 cases per 100,000 people yet deaths remain low compared to previous waves
• Pressure on ICU beds remains at c. 15%, which is considered a medium risk. Currently, there are c. 1,300 COVID-relatedpatients at hospitals
• Total number of accumulated cases: c. 5 million confirmed
• Total deaths: c. 85k confirmed by Ministry of Health

State of Alarm

declared

• hard national lockdown

Announcement of de-escalation plan

"New normal"

Start of

vaccination programme

Spain

under curfew

Main restrictions:

trading hours,

capacity limits and

non-essential

closures

34.3 million people with vaccination

completed (c. 73% of population)

Source: Ministry of Health, Government of Spain. https://www.rtve.es/noticias/coronavirus-graficos-mapas-datos-covid-19-espana-mundo/

3

FOOTFALL & SALES

2020	2021
18	120,0%
1ST WAVE	2ND WAVE (3) 3RD WAVE (3)
16
	100,0%
14
12	80,0%

10

60,0%

8

6

40,0%

4

20,0%

2

Partial restrictions and

0

Essential services only

trading hour limitations

0,0%

Jan

Feb

Mar

Apr May

Jun

Jul

Aug

Sep

Oct

Nov

Dic

Jan

Feb

Mar

Apr May

Jun

Jul

Aug

Nº of Assets open and without highly restricted mobility

Footfall Recovery

Sales Recovery

Footfall Recovery Benchmark

Sales Recovery Benchmark

• Sales continue to strengthen and have surpassed 100% of 2019 levels in June 2021. Larger basket sizes and higher conversion rates continue to drive sales
• Retail park sales are already above 2019 levels. Retail parks comprise
  45.1% of Castellana's portfolio by GLA
• Footfall recovered up to 85.7% of 2019 levels in August 2021, the highest level since March 2020. Over the past 18 months the pandemic waves have affected the performance of the portfolio, however strong growth was evident once restrictions were relaxed

1. Footfall Data includes the following shopping centres: El Faro, Bahía Sur, Los Arcos, Vallsur, Habaneras, Puerta Europa and Granaíta Leisure & Retail Park. There are no counters in the rest of the retail park assets Granaita only counts cars, so we have estimated an average of 2 people per car. Monthly information: evolution of month in 2020 and 2021 vs the same month in 2019
2. Sales Data includes all retail assets. Monthly information: evolution of month in 2020 and 2021 vs the same month in 2019
3. Regional restrictions during 2º and 3º wave: town perimeter closures, trading hours capped, curfews, non-essentials retails closures…). Regional restrictions during 4th and 5th waves: Trading hours and capacity capped

4

OPERATING ACTIVITY

OCCUPANCY RATE 97%(2) CONTINUOUSLY CLOSING AGREEMENTS AND OPENING NEW STORES DURING THE PANDEMIC DUE TO THE STRENGH OF OUR TENANT RELATIONSHIPS AND RETAIL EXPERTISE

	86		€4.3m
	LEASES SIGNED		NEW RENT SIGNED
28	58	€1.2m	€3.1m
RENEWALS	NEW CONTRACTS	RENEWALS	NEW CONTRACTS

	18,170 sqm		1.76%
		GLA SIGNED	AV. RENT INCREASE(1)
2,824 sqm		15,346 sqm	2.34%			1.38%
	RENEWALS		NEW CONTRACTS	RENEWALS			NEW CONTRACTS

1. Considering operations with passing rent as renewals, relocations and replacements
2. Period reported from 1st April 2021 to 31st August 2021

KEY KPI´S YTD 31st August 2021

PORTFOLIO ALMOST FULLY LET

31 AUGUST	97.0%
2021
31 MARCH
98.3%
2021

RENT ARREARS UNDER 5% DESPITE PANDEMIC

31 AUGUST	4.9%
2021
31 MARCH
4.8%
2021

RENT COLLECTION ABOVE 95%

31 AUGUST	95.1%
2021
31 MARCH
95.2%
2021

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