Vastned Retail N : Halfjaarlijkse financiële verslaggeving

1 VASTNED RETAIL N.V. HALF-YEARREPORT 2023

PRESS RELEASE

HALF-YEAR REPORT 2023

Vastned reports continued strong operational performance in first half 2023

Outcome strategic reorientation: divesting parts of the portfolio will create most value for all stakeholders

Highlights H1 2023

• Direct result H1 2023 of € 0.95 per share (€ 0.98 in H1 2022)
• Indirect result of € 1.59 negative per share (€ 1.32 positive in H1 2022)
• Occupancy rate of 98.2%, stable at a high level (98.5% in H1 2022)
• Like-for-likegross rental income increased by 7.4% (1.4% in H1 2022)
• Value of property portfolio slightly decreased by 1.8% compared with 31 December 2022
• Loan-to-valueratio of 44.7% as at 30 June 2023 (43.0% as at 30 June 2022)
• Interim dividend of € 0.57 per share; 60% pay-out ratio in line with dividend policy
• Outlook: Vastned reiterates its expected range of direct result of € 1.95 to € 2.05 per share for the full year 2023
• Outcome strategic reorientation: divesting parts of the portfolio will create most value for all stakeholders

Hoofddorp, 27 July 2023 - Vastned, the listed European retail property company, continues its strong operational performance despite economic uncertainties. Vastned reports a direct result for H1 2023 of € 0.95 per share, in line with the € 0.98 per share reported in H1 2022 and a continued high occupancy rate at 98.2%. Like-for-like gross rental income increased by 7.4% as a result of indexation. The value of the property portfolio decreased by 1.8% during H1 2023, mainly reflecting higher yields in key markets based on the higher level of interest rates assumed. As a result, Vastned reports a € 1.59 negative indirect result per share for H1 2023.

Reinier Walta, Vastned CEO: 'We are pleased to deliver stable and predictable operational results for the ninth consecutive quarter. Our portfolio continues to attract a high level of tenant interest, also in these uncertain market circumstances, reflected in a high and stable occupancy rate. Given the robust results in the first half of 2023, we reiterate our outlook for 2023 and expect the direct result to be in the range of € 1.95 to € 2.05 per share.

As announced in February, we have conducted a strategic reorientation in the past months. We have undertaken a thorough process of evaluating and analysing the different strategic options for Vastned. Ultimately, we have concluded that divesting specific parts of our portfolio at the right price, will unlock immediate value for all our stakeholders, including shareholders. It will improve our balance sheet and financial ratios, which will create more flexibility to shape the future portfolio of Vastned. Furthermore, we will continue to explore a new structure, also in light of the dual listing and the potential upcoming changes to the Dutch FBI-regime.'

	Vastned Retail N.V.	Mercuriusplein 11	PO BOX 22276	Tel: [phone]
		2132 HA Hoofddorp	1100 CG Amsterdam	[e-mail]	www.vastned.com

2 VASTNED RETAIL N.V. HALF-YEARREPORT 2023

PRESS RELEASE

Outcome of strategic reorientation

In February 2023 Vastned announced a strategic reorientation in response to the combination of rising interest rates, increasing yields on retail real estate properties and the expected abolishment of the FBI regime as of 2025. The objective of this strategic reorientation is to unlock value for Vastned and its stakeholders and to shape a resilient, future-proof Vastned that has the flexibility to seize potential opportunities in the market when they occur.

Since February 2023, Vastned has undertaken a thorough and diligent analysis and evaluation of different strategic options. As a

first step, Vastned mapped out the different	options to realise its objective within the context of the current	portfolio. Together
with its financial advisors and in consultation	with external experts, the Executive Board analysed the impact	and feasibility of
these options.

Included in this process were several categories: 1) Continuing 'as is'; 2) Divesting parts of the real estate portfolio; 3) A significant financial transaction (e.g. merger) with other real estate companies; 4) Adapting the structure of Vastned in light of the dual listing and the intentions to the abolishment of the Dutch FBI regime.

Subsequently, the different options have been scored against criteria such as value creation for Vastned and its stakeholders, including shareholders, improvements of the balance sheet of the company (e.g. loan to value), and feasibility of execution.

Based on this analysis, the Executive Board has concluded that divesting specific parts of its real estate portfolio will generate the most value for Vastned and its stakeholders. On the one hand, this will unlock immediate value and at the same time improve the balance sheet and financial ratios, which will create flexibility to seize future opportunities in the markets, while on the other hand making Vastned future proof delivering stable and predictable returns to its shareholders.

The Executive Board has therefore decided to start the divestment process in the coming period, with a tailored and pragmatic approach. Vastned has already identified properties that can be considered for divestment. As a next step, Vastned has started a selection process of brokers in various markets to explore divestment opportunities.

In the meantime, Vastned will also continue to explore how to create a structure that fits the size and nature of Vastned on the one hand - with a preferred single listing - and that will also mitigate the impact of the announced intention for the abolishment of the FBI regime in the Netherlands. Notwhitstanding the uncertainty that has been cast over this intention by the recent collapse of the Dutch Government, Vastned believes it is prudent to prepare itself for the legislation to be enacted in the future.

Parallel to these strategic actions the Executive Board is in discussion with lenders on refinancing the outstanding debt, taking into account potential strategic scenarios.

Key parameters

The direct result of € 0.95 per share in H1 2023 was in line with last year's € 0.98. Compared with H1 2022, net rental income increased from € 28.8 million in H1 2022 to € 30.8 million in H1 2023 as a result of indexation.

The indirect result per share in H1 2023 was € 1.59 negative compared with € 1.32 positive in H1 2022. The negative indirect result in H1 2023 was mainly due to the decreased value of the property portfolio (1.8%) and the lower valuation of the financial derivatives as the increase in market interest rates eased, the time to maturity is shorter and pay-outs have been received.

The occupancy rate remains at a high level with a minor decrease compared with H1 2022 from 98.5% to 98.2%, although it increased from the 97.9% rate seen in Q1 2023.

	Vastned Retail N.V.	Mercuriusplein 11	PO BOX 22276	Tel: [phone]
		2132 HA Hoofddorp	1100 CG Amsterdam	[e-mail]	www.vastned.com

3 VASTNED RETAIL N.V. HALF-YEARREPORT 2023

PRESS RELEASE

Results	H1 2023		H1 2022
Occupancy rate as at 30 June (%)	98.2	98.5
Like-for-like gross rental growth (%)	7.4	1.4
Value movements (%) 1	(1.8)	1.0
Total appraisal value of the portfolio (€ million) 2	1,395	1,452
Direct result per share (€)	0.95	0.98
Indirect result per share (€)	(1.59)	1.32
Result per share (€)	(0.64)	2.30

1. Excluding acquisitions and divestments
2. Including assets held for sale

NOTES TO THE PROPERTY PORTFOLIO

Occupancy rate

The occupancy rate of the overall portfolio of 98.2% remained almost stable at a high level compared to 30 June 2022 (98.5%). The occupancy rate in the Netherlands decreased mainly due to the strategic relocation changes of Ziggo in Amsterdam and Vinted in Utrecht. Despite new lettings in France of Tezenis on 8 Avenue Jean Médecin in Nice and Le Nom on 19 Rue des Rosiers in Paris, the occupancy rate in France decreased to 97.1%. The decrease was primarily due to the departure of Semic Distribution on Rue des Archives in Paris. In Belgium, the occupancy rate remained stable. A new letting to New Balance on Calle Fuencarral 23 in Madrid ensures that the Spanish portfolio remains fully let.

Occupancy rate (%)	30 June 2023		31 Dec 2022		30 June 2022
Netherlands	98.0	98.3	98.3
France	97.1	97.9	98.1
Belgium	99.3	99.4	98.8
Spain	100.0	100.0	100.0
Total	98.2	98.6	98.5

Leasing activity

IIn the first six months of 2023, Vastned concluded 44 leases for a total annual amount of € 9.0 million, or 11.7% of the total theoretical annual gross rental income. On the 44 leases, Vastned realised a 1.4% rent increase. Vastned has signed new lettings to Tezenis on 8 Avenue Jean Médecin in Nice; Le Nom on 19 Rue des Rosiers in Paris; Elbenwald on Kalverstraat 9 in Amsterdam. Vastned also signed lease renewals with Jimmy Choo on Calle de José Ortega y Gasset in Madrid; H&M on Bondgenotenlaan

69 - 73 in Louvain and Zara on Schapenmarkt 17- 19 in 's-Hertogenbosch were also secured.

Leasing activity	H1 2023
Number of leases	44
Rental income (€ million)	9.0
% of total theoretical annual rent	11.7%
Rental change (€ million)	0.1
% rental change	1.4%

	Vastned Retail N.V.	Mercuriusplein 11	PO BOX 22276	Tel: [phone]
		2132 HA Hoofddorp	1100 CG Amsterdam	[e-mail]	www.vastned.com

4 VASTNED RETAIL N.V. HALF-YEARREPORT 2023

PRESS RELEASE

Appraisal value

The appraisal value of Vastned's total property portfolio was € 1.4 billion as at 30 June 2023, which is a decrease of 1.8% compared with year-end 2022.

Portfolio breakdown (€ million)	30 June 2023		% of total
Netherlands	593.3	42.5
France	400.5	28.7
Belgium	321.8	23.1
Spain	79.6	5.7
Total	1,395.2	100.0

Like for like appraisal value

All properties in operation are appraised at least once a year by independent certified appraisers. As of 30 June 2023, 98.1% of the portfolio was appraised. The like-for-like appraisal value of the property portfolio, excluding acquisitions and divestments, as of the end of June 2023, decreased by 1.8% compared with year-end 2022. The value changes of the portfolios in the Netherlands, France, Belgium and Spain were 2.8% negative, 1.6% negative, 0.3% positive and 3.2% negative, respectively.

Appraisal value

(€ million)	HY 2023		vs FY 2022		FY 2022		vs FY 2021		FY 2021
Netherlands	593.3	(2.8%)	610.5	(1.7%)	620.9
France	400.5	(1.6%)	407.0	(0.7%)	410.1
Belgium	321.8	0.3%	320.8	(0.8%)	323.2
Spain	79.6	(3.2%)	82.1	0.0%	82.1
Total	1,395.2	(1.8%)	1,420.4	(1.1%)	1,436.3

Acquisitions and divestments

No acquisitions or divestments were made during the first half of 2023.  

	Vastned Retail N.V.	Mercuriusplein 11	PO BOX 22276	Tel: [phone]
		2132 HA Hoofddorp	1100 CG Amsterdam	[e-mail]	www.vastned.com

5 VASTNED RETAIL N.V. HALF-YEARREPORT 2023

PRESS RELEASE

NOTES TO THE FINANCIAL RESULTS

Financial results (€ million)	H1 2023		H1 2022
Direct result	16.3	16.9
Indirect result	(27.3)	22.6
Result attributable to Vastned Retail shareholders	(11.0)	39.5
Result attributable to non-controlling interests	2.5	2.8
Result after taxes	(8.5)	42.3

Result attributable to Vastned Retail shareholders

The result attributable to Vastned's shareholders, which comprises the direct and indirect results, was € 11.0 million negative in the first half of 2023 (H1 2022: € 39.5 million positive). The main cause was the decrease of the indirect result from

€ 22.6 million positive in H1 2022 to € 27.3 million negative in H1 2023. Within the indirect result, the value decrease of the property portfolio in the first half of 2023 amounted to € 26.5 million (H1 2022: value increase of € 14.6 million). As a result of easing increases in market interest rates, a shorter time to maturity and received pay-outs, the value movements of the financial derivatives were € 1.3 million negative in H1 2022 (H1 2022: € 9.6 million positive).

The direct result decreased from € 16.9 million in H1 2022 to € 16.3 million in H1 2023. Net rental income came out higher (€ 30.8 million in H1 2023 compared with € 28.8 million in H1 2022). However, net financing costs and general expenses increased which resulted in a slightly lower direct results.

Result per share

The result per share attributable to Vastned shareholders was € 0.64 negative in H1 2023 (H1 2022: € 2.30 positive).

The result comprises the direct result per share of € 0.95 (H1 2022: € 0.98) and the indirect result per share of € 1.59 negative

(H1 2022: € 1.32 positive).

	Vastned Retail N.V.	Mercuriusplein 11	PO BOX 22276	Tel: [phone]
		2132 HA Hoofddorp	1100 CG Amsterdam	[e-mail]	www.vastned.com