Castellana Properties Socimi S A : books EBITDA of EUR 27.5 million in H1 2022, 12.3% up year-on-year

• The company sees its gross rental income (GRI) rise to EUR 35.3 million in H1 2022, a 12.9% year-on-year increase

• The Castellana Properties portfolio - comprising 16 shopping centres and retail parks - offers a combined gross lettable area of 368,495 sqm and has achieved a value uplift of 2.1% in like-for-like terms, with its gross value climbing to EUR 1,141 million, including its shareholding in Lar España Real Estate

• The occupancy rate stands at 99% and the company continues to receive 98.9% of its rental income, comfortably outperforming the market average in both areas

Castellana Properties, the specialist listed retail property firm, has today published the results for the first half of its fiscal year, from 1 April 2023 to 30 September 2023. The company posted gross rental income (GRI) for the period of EUR 35.3 million, up 12.9% year-on-year and operating profit (EBITDA) of EUR 27.5 million, up 12.3% versus H1 2022.

Its net operating income (NOI) increased by 13% in the same period to reach EUR 32.4 million, primarily reflecting the success of its management strategy. The EPRA Net Tangible Asset Value (EPRA NTA) climbed 0.5% versus 31 March 2023 to EUR 649 million. Consequently, Castellana Properties' recurring net profit came to EUR 19.4 million, an indication of its strong operational performance. Meanwhile, a EUR 5.7 million variation in net asset value left net profits for the period at EUR 16.2 million.

The gross value of the company's portfolio, comprising 16 shopping centres and retail parks and offering a combined gross lettable area of 368,495 sqm, stands at EUR 1,141 million, including its shareholding in Lar España Real Estate, equating to a 2.1% value uplift since 31 March 2023. Excluding its stake in Lar España Real Estate, the gross asset value of its direct portfolio (GAV) grew by 1% in the first half of the fiscal year. This growth was chiefly driven by a rise in income and a EUR 16 million investment that strengthened its portfolio and helped offset the impact of a market-wide variation in net asset value.

In addition, this year between 1 April and 30 September, 81 lettings were completed (40 new leases and 41 renewals), adding an additional 15,507 sqm to the portfolio's total floor area and equating to new rental income of EUR 4.5 million. The occupancy rate stands at 99% and the company continues to receive 98.9% of its rental income, comfortably outperforming the market average in both areas.

Castellana Properties' decision to take a shareholding in Lar España Real Estate has proven sound, with a dividend yield of 12% and potential for capital appreciation over the long term. This very promising acquisition is fully aligned with Castellana Properties' strategy to continue investing in the retail sector and deliver maximum value to shareholders.

Further growth in sales and footfall

The company's shopping centres have continued to build on last year's standout performance, when sales and footfall comfortably exceeded pre-pandemic figures. This upward trend persisted into 2023, with footfall up 7.3% at the end of September versus the same period of 2022. Similarly, accumulated sales rose 9.1% in the same period. Once again, these results serve as a testament to the resilience of the company's portfolio and active management approach. This robust performance should put Castellana Properties on track for another record-breaking year for sales and footfall.

The greatest growth was recorded in leisure (19.7%), health and beauty (17.5%), food & beverage (13.6%), culture and gifts (13.1%), pets (12.8%) and fashion and accessories (10.4%). These segments make up the bulk of the company's portfolio, measured by rental income.

Creating sustainable value

Among various recent transactions, one in particular stands out: the acquisition of a unit at El Faro shopping centre previously occupied by Hipercor in July this year. With this deal, Castellana Properties became the sole owner of the whole property. It will shortly embark on a €23 million refurbishment of this space in preparation for the arrival of six new brands. This move will bolster El Faro's position as the leading shopping and leisure destination in all of Extremadura and the Portuguese region of Alentejo. It comes as further confirmation of the company's proficiency in active property management, as demonstrated by previous projects at the Los Arcos, Bahía Sur and El Faro shopping centres.

Meanwhile, renovation work is progressing on the first floor of Vallsur Shopping Centre, which Castellana Properties aims to transform into the region's number one dining and leisure destination. The company is investing a total of €16.7 million in the project, renovating a gross lettable area of 10,557 sqm. "La Chismería" is set to launch in December, offering visitors a choice of 12 exciting new brands.

In another key development for the year, Castellana Properties teamed up with Booh! Food to create it "Bright Kitchens" concept at Los Arcos Shopping Centre in Seville, making it the first in Spain to adopt the dark kitchen model.

Castellana Properties aspires to be a market leader in sustainability and remains strongly committed to its ESG goals. Indeed, like every other year since 2019, this year brought another wave of awards and certifications for the company, including the EPRA Best Practices Recommendation (BPR) Gold Award and EPRA sBPR Gold Award; inclusion in the prestigious "Great Place to Work" list for the third consecutive year (with a one-point gain on last year's score); a four-star rating in GRESB (one more than last year, the first in which the company took part), the leading international ESG benchmarking scheme for businesses, with a score of 86 out of 100; and a long-term BBB-Investment Grade credit rating from Fitch Ratings for the second consecutive year.

Alfonso Brunet, CEO de Castellana Properties, commented, "The strong results announced today are rooted in our unique business model, which emphasises the active management of our shopping centres and retail parks. At Castellana Properties, we have a record of achieving our goals thanks to the hard work and dedication of every member of our team. That is why we will continue to go from strength to strength, working to make our properties even better and fulfilling our firm commitment to sustainability and innovation while amplifying our position in the Spanish retail sector".