Retail Estates : 25/05/2021 - Announcement of the annual results of the 2020-2021 financial year

PRESS RELEASE

Periodic statement - regulated information

Ternat, 25 May 2021

ANNOUNCEMENT OF THE ANNUAL RESULTS OF THE 2020-2021 FINANCIAL YEAR

RETAIL ESTATES WITHSTANDS "PERFECT CORONA STORM"

OUT-OF-TOWN RETAIL REVIVED AFTER EACH COMPULSORY CLOSURE - LIMITED LOSS OF PROFIT

INVESTMENT VALUE OF REAL ESTATE PORTFOLIO STABLE THROUGHOUT THE FINANCIAL YEAR

• 111.25 MILLION ADDITIONAL INVESTMENTS IN EXPANSION OF RETAIL PARKS AND BIG BOX UNITS

EPRA RESULT (EXCLUSIVE OF PORTFOLIO RESULT) IS € 62.91 MILLION - € 4.97 PER SHARE - DECLINE COMPARED TO LAST FINANCIAL YEAR LIMITED TO € 0.63 PER SHARE

DIVIDEND INCREASED TO € 4.50 - INCREASE OF 2.27%

DIVIDEND INCREASE FOR THE 16TH CONSECUTIVE YEAR

COMPLETION OF OWN PROJECTS IN JAMBES (NAMUR) AND HOGNOUL (LIEGE). € 28.16 MILLION INVESTMENT CREATES € 6.28 MILLION ADDED VALUE

ANNUAL RESULTS FOR THE PERIOD 01.04.2020 THROUGH 31.03.2021

1. FINANCIAL YEAR 2020-2021 IN A NUTSHELL

The past financial year was overshadowed by the COVID-19pandemic. Shops in Belgium and the Netherlands were alternately closed during a period of three months in total. Only the Belgian food and DIY shops escaped these government measures. The impact of these measures was different for the different sectors represented in the real estate portfolio: the home decoration sector (57.11%) and the food and commodities sector (15.58%) experienced major sales increases because consumers invested more in their homes, as a result of the lockdown measures and the closure of the hospitality establishments boosted home consumption. The considerable restrictions on social life had a strong and long-lasting impact on the fashion retailers, even during the periods when the compulsory closure did not apply. Many consumers preferred shops at out-of-town locations to shops located in the city centre and shopping malls thanks to their easy accessibility, their spacious car parks and their large size. This was reflected in the swift recovery of the sales figures after the reopening and the full resumption of rent payments.

The rent for the periods of compulsory closure was divided between Retail Estates and the impacted tenants. This resulted in rent remissions for a total value of € 11.55 million, i.e. slightly more than 10% of the rent due (including the provision for the settlement of the current negotiations in the Netherlands). In Belgium, COVID-19 caused the premature bankruptcyof three major tenants who already were in a weakened financial position and had a weak management: nv Brantano, nv Ochestra België and nv Piocheur/Megaworld (formerly Blokker). For these three tenants, a provision for € 1.78 million of irrecoverable rent was created. Of the 43 retail properties concerned,

36 were rented out again at a similar rent within the financial year.

The acquisition of two retail parksin the Netherlands yielded additional rental income compared to the 2019-

2020 financial year, so that the losses in the net rental result was limited to € 7.21 million. This loss was partially compensated by various savings in property expenses. The combination of both factors resulted in a decline of the EPRA result to € 62.91 million, i.e. -9.09% compared to the previous financial year 2019-2020. The EPRA result per share is € 4.97 compared to 5.60 on 31 March 2020.

The investment valueof our real estate portfolio (at constant perimeter) has remained stable compared to the value on 31 March 2020. The same cannot be said of the fair value, as the real estate experts fully took into account the 2% increase of the rate of the Dutch real estate transfer tax on the Dutch portfolio. This stability is inextricably linked to the relative success of out-of-town retail properties during this past period.

The real estate investmentswere continued with the acquisition of two retail parks in the Netherlands (Den Bosch and Maastricht) in the first quarter of the financial year and the completion of a newly constructed retail park in Belgium (IKEA Liège-Hognoul site) and the approaching completion of a "big box" BricoPlanit in Jambes (Namur) in the last quarter. These investments represent a growth of the portfolio by € 111.25 million. The amortisation of the transfer tax on the purchase of the Dutch retail parks (consequence of the Dutch method for the calculation of the fair value of these investments) was compensated by the considerable added value of € 10.32 million resulting from owns developments. A total of € 20.71 million was invested in own developments.

Special efforts were also made with respect to the management of the real estate portfoliothrough the sale of real estate for a total value of € 43.79 million. Thanks to these investments, resources were released for not only the financing of the above-mentioned new construction projects in Belgium but also for the drastic reorganisation

of two retail parks in the Netherlands, more specifically in Roosendaal and in Apeldoorn. The sale of real estate

created an added value of € 0.83 million. In a financial year in	which capital increases were not possible due to the
volatility of the financial markets, Retail Estates has managed	avoid an increase in the debt ratio, which would have

resulted from its investment projects, thanks to arbitration within the real estate portfolio.

These past few years, the dividend policyhas in fact been a pay-out policy that left an important part of the profit in the company as a buffer while still observing the legal obligation to pay out 80% of the profit. It is suggested to the general meeting to pay a gross dividend of € 4.50from the EPRA profit per share of € 4.97 for the past financial year, an increase of 2.27% compared to the previous financial year, when a gross dividend of € 4.40 was paid. The dividend is protected against inflation even in difficult circumstances and the payout ratio of 87.17% is reasonable for the sector during this exceptional financial year. Retail Estates had the complete trust of its bankers and bond holdersin the past financial year. All credits that reached their maturity date were renewed and two bond loans were issued with institutional investors for a total amount of € 46 million.

Retail Estates enjoyed the full confidence of its bankers and bondholdersduring the past financial year. Credits that came to maturity were all renewed and two bond loans were issued with institutional investors for a total amount of EUR 46 million.

The occupancy ratedeclined from 97.97% on 31 March 2020 to 97.07% on 31 March 2021. The management is of the opinion that this decrease, which is entirely attributable to the Belgian retail portfolio, is only temporary and expects that the target of 98%, which was reached in the past 22 financial years, will again be reached by the end of this financial year.

2. OPERATIONAL ACTIVITIES

2.1. Investments

Investments - retail parks

The Netherlands

Acquisition of retail park "De Bossche Boulevard" (the Netherlands, province of North Brabant)

Retail Estates acquired the retail park "De Bossche Boulevard" on 7 April 2020. This retail park has a surface area of approximately 50,000 m². The customer zone is located in the centre of the Breda-Utrecht-Eindhoven triangle. The retail park comprises 29 retail units, all of which are let, mainly to retail chains like Praxis, Mediamarkt, Leen Bakker, Kwantum, Prenatal and X2O.

The amount invested is € 68.70 million and the fair value1 calculated by the real estate expert Cushman & Wakefield amounts to € 65.42 million. This acquisition was entirely financed with the proceeds of the successful issue of a bond loan of € 75 million, which was completed by Retail Estates in late December 2019.

Acquisition of retail park Belvédère Maastricht (the Netherlands, province of Limburg)

The retail park Belvédère was completed on 1 June 2020, and Retail Estates subsequently acquired the complex. It consists of 7,850 m² of retail area subdivided into five retail units, which will all be let to retail chains from the home decoration section (i.a. Jysk, Beter Bed, Leen Bakker, Carpetright). The investment amounts to € 10 million (exclusive of recoverable VAT) and generates a rental income of € 0.66 million. The real estate expert Cushman & Wakefield set the fair value at € 9.97 million.

Acquisition of retail property at Duiven (the Netherlands, province of Gelderland)

On 22 December 2020, Retail Estates acquired a retail property situated at Duiven, a suburb of Arnhem. The ground floor of the property is approximately 3,000 m² and is entirely let to Leen Bakker, a retail chain specialised in home decoration articles. The annual rent amounts to € 0.27 million. The acquisition represents a € 4.5 million investment and is still subject to a price adjustment formula which, depending on the outcome of the current price adjustment procedure, may represent an additional investment for Retail Estates of maximally € 0.57 million. The real estate expert CBRE estimated the fair value of the acquired property at € 4.93 million on the basis of their estimate of the new rent that would be payable as from December 2021 depending of the expected outcome of the current price adjustment procedure.

1 In the Netherlands the fair valuecorresponds to the cost-to-buyer valuation (i.e. the total investment excluding 8% real estate transfer fax, notary fees and other costs of transfer). At the time of this acquisition the transfer tax in the Netherlands was still 6%.

Non-current assets under construction - development - overview of the main own developments

The company is in the final phase of the extension of its retail cluster at Jambes (Namur-South). It concerns a forward-financing operation, which will have the legal form of a real estate leasing. The extension concerns the construction of a new building on the one hand and the renovation of an existing building on the other hand, resulting in a total retail area of 15,905 m². The building is constructed especially for BricoPlanit but is designed as a multipurpose building. The total investment was contractually limited to € 17.95 million. The investment was made according to the "open book" principle, with a yield of 6.50% determined in advance. Construction started in September 2019. The building was put at the disposal of the tenant in March 2021. The project was valued on 31 March 2021; an added value of € 2.83 million was created compared to the cost.

In Brugesan obsolete retail property is demolished and reconstructed to be let to X20. The total investment is estimated at € 1.1 million; on 31 March 2021. An amount of € 0.13 million has been invested.

Within the context of the CSR strategy,Retail Estates invests in the installation of photovoltaic panels on the roof of its new retail park in Hognoul. Solar panels with a total capacity of 368 kWp are installed. The panels are expected to generate over 340 Mwh of green electricity on an annual basis. This € 0.30 million investment will also have a positive impact on the tenants' operational expenses. They will be able to cover their entire energy consumption with the green power generated from this installation. Retail Estates will receive an annual compensation in exchange for making the photovoltaic system available to the tenants. Completion of this installation is scheduled for the first quarter of the 2021-2022 financial year.

Finally, the company invests in the restyling of its retail park in Roosendaal. The permits for this renovation were obtained and the commercialisation has been started. The total investment is expected to amount to approximately € 4.44 million. The project consists of 3 phases. Phases 1 and 2 have been completed. On 31 March 2021, the total investment made amounts to € 3.87 million.

Non-current assets under construction - overview of the completed projects.

A completely new retail park was constructed next to the existing IKEA store of Liège-Hognoul. The park was completed in March 2021 and comprises four retail units, for a total retail area of 5,672 m². The total investment amounts to € 10.21 million. On 31 March 2021, a total of € 3.15 million must still be invoiced. An added value of € 3.14 million was created compared to the estimated fair value, which was € 13.35 million on 31 March 2021.

Optimisation of real estate portfolio

Retail Estates nv pays close attention to the changing needs of its tenants with respect to retail area. Several tenants systematically expand their product range and regularly request an extension of their retail area. This can be done by acquiring space from adjacent tenants who sometimes have too much space or by constructing a new addition to the retail unit. Sometimes a combination of both is opted for.

Renovations sometimes include more than just an expansion of the retail area. Retail Estates nv regularly seizes the opportunity to remove an existing shop façade and replace it with a contemporary version that better fits the tenant's image.

Such investments allow us to build "win-win" relations with the tenants. Available lands are made profitable in this manner and revenue growth allows the tenant to pay the rent increase.