• The company has experienced a year-on-year growth in gross rental income (GRI) of 2.3% and net operating income (NOI) of 2.1% compared to the first half of the previous fiscal year.

• During these first six months, 83 lease transactions were completed, including 67 new contracts and 16 renewals, while the occupancy rate stands at 98.6% and the collection rate at 99%.

• The company's shopping centers saw a year-on-year increase in footfall of 3.2%, while accumulated sales continued to rise with a growth of 4.8%.

Castellana Properties, the publicly listed company specializing in the retail sector, today announced its results for the first half of its fiscal year (H1FY25), covering the period from April 1, 2024, to September 30, 2024. During this period, the company achieved a net profit of 33 million euros, up 103.4% compared to the same semester of the previous year. Similarly, it recorded gross rental income (GRI) of approximately 36 million euros (+2.3% vs. H1FY24) and an operating profit (EBITDA) exceeding 27 million euros.

Net operating income (NOI) increased by 2.1% to 32.8 million euros. Furthermore, the Net Tangible Assets Value (EPRA NTA) reached 816 million euros, a 19% increase compared to the same period of the previous year.

The gross asset value (GAV) of Castellana Properties' portfolio, consisting of 15 shopping centers and retail parks with a gross leasable area (GLA) of 365,543sqm, increased by 2.6%, reaching 1.223 billion euros as of September 30, 2024, including its stake in Lar España Real Estate.

Additionally, between April 1 and September 30 of this year, the company completed a total of 83 leasing transactions with an annual value of 6.9 million euros over 27,088sqm. Of these 83 contracts, 67 were new leases, and 16 were renewals. The occupancy rate stands at 98.6% and the collection rate at 99%, both well above the market average, according to APRESCO data.

Growth in sales, footfall, and expansion to other markets

The company's shopping centers continue their upward trend with a year-on-year increase in footfall of 3.2% from January to September compared to the same period in 2023. Accumulated sales also continue to grow, with a 4.8% increase over the same period. These figures once again demonstrate the strength of the company's portfolio and the active management of the Castellana Properties team.

Furthermore, in October 2024, Castellana Properties made its entry into the Portuguese market with the acquisition of three shopping centers: RioSul Shopping, LoureShopping, and 8ª Avenida, in a transaction valued at 176.5 million euros. All these assets, leaders in their respective areas of influence, offer a wide range of fashion, dining, and other services, providing an attractive entry point into the Portuguese real estate market.

According to Alfonso Brunet, CEO of Castellana Properties, “This semester has been a period of major milestones that will undoubtedly shape the evolution of Castellana Properties in the coming years. The results demonstrate our strategy's success and our team's deep expertise, while our entry into Portugal marks our first expansion beyond Spain. These months provide a strong foundation for the second half of this fiscal year.”

Additionally, in September, the company signed a refinancing agreement with Aareal Bank A.G. for an amount of 254 million euros, with a five-year term and a fixed interest rate under market conditions, with the participation of Banco Santander and BBVA. This transaction increased the fixed-rate debt coverage to 94% and reduced the NET LTV to 33%. The agreement also allows the company to improve its debt amortization schedule and extend the average debt maturity to 4.6 years.

Long-term Value Creation

Castellana Properties continues with value-added projects in its assets. Following the December 2023 opening of "La Chismería," a new leisure and dining area at Vallsur in Valladolid, there was a 14.8% increase in visitor numbers from January to September 2024 compared to the same period in 2023. Sales in the F&B category have also grown by 5.8% since the opening of this space. The project's second phase is scheduled for completion in the first quarter of 2025. The company is currently focused on Phase II, aimed at enhancing the fashion offer of the center, with well-known brands like Álvaro Moreno, AW Lab, and Fifty Factory already confirmed.

Also, after acquiring the Hipercor space at El Faro, the leading shopping center in the Extremadura region, the company is transforming over 16,000 sqm of gross leasable area, where prominent brands like Lefties, which will open its world's largest clothing store spanning over 5,000 square meters, Primor, Mango, and Alvaro Moreno, as well as a new Fitness Park gym, are set to open soon.

During these months, the company has received various awards and certifications in ESG matters, including five stars from GRESB, the EPRA Gold Award in sustainability and finance, and BREEAM certification for its entire asset portfolio. These achievements reflect the positive impact of its sustainable strategy, which was also recognized this year at the AECC 2024 Awards in the “Best Implementation of a Corporate ESG Strategy” category, highlighting companies that have globally integrated sustainable actions and best practices into their business model.