• The company closed out the year on net profits of €90.8 million, a surge of 305% compared with FY24.

• Its NOI reached €74.5 million, up 6.4% in like-for-like terms.

• Castellana Properties has seen the market value of its portfolio grow by 38% in the space of a single year, from €1,201 million (16 assets) as of 31 March 2024 to €1,660 million (20 assets) in March 2025. Including Forum Madeira, acquired shortly after the end of FY25, the current market value stands at €1,734 million.

• The company has been involved in deals worth €837 million over the last 12 months, including the acquisition of Forum Madeira.

• Once again, it reported industry-leading occupancy and collection rates: 98.4% in both cases.

Castellana Properties, the listed real estate company which specialises in the acquisition and management of shopping centres and retail across Spain and Portugal, has released its annual results for FY25. The final report confirms that net profits increased to €90.8 million, a significant advance from the €22.4 million reported the previous year. The upswing — a 305% increase — was primarily driven by growth in Gross Rental Income (GRI), valuation uplift, and dividend income from the company’s stake in LAR España. In terms of operating profits, Castellana Properties reported an EBITDA of €61.8 million, representing a 12.1% increase compared to FY24.

Net Operating Income (NOI) increased by 6.4% in like-for-like terms, reaching €74.5 million, while Gross Rental Income (GRI) totaled €82.3 million. This equates to a 5% gain on the previous year, again in like-for-like terms.

At the close of the financial year, Castellana Properties held a portfolio comprising 20 shopping centres and retail parks with a total gross lettable area (GLA) of 518,570 sqm. Its Gross Asset Value (GAV) climbed 38% to €1,660 million, as of 31 March 2025. This figure rises to €1,734 million (market value) if Forum Madeira, added to the portfolio in late April 2025, is included.

In September, the company signed a five-year refinancing agreement worth €254 million with Aareal Bank A.G., backed by Banco Santander and BBVA, with interest fixed at prevailing market rates. The revised terms have increased its fixed debt coverage to 96% and significantly reduced the net LTV to 34%. The agreement will allow Castellana Properties to streamline its payment schedule, extending its average debt maturity to 4.7 years.

Alfonso Brunet, CEO of Castellana Properties, commented, “This year marks a real turning point for the company. We’ve posted an exceptional set of results, having quadrupled net profits and seen the value of our portfolio top €1,700 million — a testament to the success of our business strategy and the strength of our management model. International expansion was a dominant theme for this financial year, with strategic acquisitions in Portugal and a growing footprint in Spain, thanks to the incorporation of Bonaire, one of the most iconic retail properties in the country and in Europe. This outstanding performance has been achieved without compromising our industry-leading quality and sustainability standards, as demonstrated by this year’s accumulation of ESG awards. Castellana Properties is looking to the future from a position of strength, confident that our active management model, capacity for innovation, and dynamic leadership culture will continue to drive our growth and mark us out as a positive force in the European retail landscape.”

A landmark year

Over the past 12 calendar months, Castellana Properties has completed deals worth €837 million (including the acquisition of Forum Madeira and the sale of Mejostilla). Of this sum, €628 million was invested in new assets, while divestments totaled €209 million. Standout transactions (in date order) included the sale of Mejostilla retail park for €8.9 million; the acquisition of a portfolio of three properties in Portugal (RioSul, LoureShopping and 8ª Avenida) for €176.5 million; the purchase of a 50% stake in Alegro Sintra for €46.4 million; and the acquisition of Bonaire shopping centre for €305 million. The company has carried this momentum into the current financial year, acquiring Forum Madeira for €63 million.

This figure also accounts for the divestment of its 28.8% stake in Lar España. The proceeds have been reinvested in the company’s portfolio, funding the acquisition of Bonaire shopping centre in 2025, a record deal for the Spanish retail market.

Operating performance remains at record highs across the portfolio

Finally, FY25 saw the signing of 286 leases — between renewals and new contracts — representing a total of €16.9 million in rental income and an average uplift of 17.31%. Castellana Properties, which has built its reputation on an active management approach, remains well ahead in both occupancy and collection rates, at 98.4% in each case.

Visits to its properties across Spain and Portugal reached approximately 90 million in 2024. Specifically, footfall rose by 2.7% in Spain and 2.0% in Portugal, equating to an overall growth of 2.4%. The company’s Spanish shopping centres set a new annual record, registering more than 54 million visits between them. Bahía Sur clinched the lead with 8.35 million visits, just a fraction ahead of El Faro (8.3 million).

Compared to FY24, sales across the portfolio grew by 3.6% in Spain and 5.5% in Portugal (averaging to 4.3% overall). Retail parks performed especially strongly, with a 6.5% increase.

Adding value through capital investment

Castellana Properties launched major value-add projects at several of its shopping centres during the year. At El Faro, an 18,799 sqm unit previously let to Hipercor was given a complete remodel, creating a fitting home for some of shoppers’ most eagerly awaited brands, including Lefties, Mango, Fitness Park and Álvaro Moreno. Footfall to the centre has jumped 13% since the project’s completion.

Meanwhile, an extension to Vallsur is being developed over two phases. Phase 1, focused on F&B, concluded with the opening of La Chismería. This new leisure and dining zone has introduced 12 new brands, resulting in a 8.6% increase in footfall. Phase 2, which focuses on fashion, is now well underway. New brands, such as Fifty Factory and Álvaro Moreno, have already moved in, with work expected to be completed by the end of 2025.

Finally, Los Arcos is undergoing an exterior renovation and is expanding its leisure and dining offer, at an estimated cost of €25.6 million. The project is scheduled for completion in the latter half of 2026.

A leading force for change

Among FY25’s many highlights, the ESG strategy launched in 2021 was completed earlier than anticipated, with its goals successfully met. In recognition of this achievement, Castellana Properties was announced the winner in the “Best Corporate ESG Strategy Implementation” category at the AECC Awards, presented by the Spanish Shopping Centre Association. The company is already making strides with its latest ESG Strategy, covering the period FY25–FY27, with a five-star GRESB rating, its fourth consecutive EPRA Gold Award, and the completion of its carbon footprint calculation (scopes 1, 2, and 3) under ISO 14064. All of its properties are BREEAM certified and aligned with the EU taxonomy’s standards for climate change adaptation.