• The international agency has highlighted that the improvement responds to the positive evolution of Castellana’s business profile after the acquisition of Bonaire and five assets in Portugal.

• Fitch highlights in the analysis Castellana Properties’ ability to create value through repositioning projects and active management of assets such as the El Faro project or that of Vallsur.

Fitch Ratings has announced the improvement of Castellana Properties’ credit rating from ‘BBB-’ to ‘BBB’, with a stable outlook. The international agency has highlighted that the upgrade mainly responds to the positive evolution of Castellana Properties’ business profile following the acquisition of the Bonaire shopping centre in Valencia and five additional assets in Portugal, which has made it possible to broaden the diversification of the portfolio, reduce the concentration of tenants and assets, and incorporate Portugal as a second key market together with Spain.

The operations have been financed through the sale of the stake in Lar España, the capital support of Vukile Property Fund, and bank financing. With this, the company replaces subordinated dividends with stable income coming from rentals, strengthening its cash flows structurally and sustainably. In addition, it is mentioned that the company has a solid liquidity position and no significant short-term maturities.

Fitch underlines that the performance of Castellana Properties’ real estate portfolio remains solid, supported by the increase in footfall in the shopping centres and the improvement in tenant sales in different categories — factors that make it possible to consolidate growth in affordable and competitive rents. Likewise, the diversification achieved has significantly reduced dependence on certain operators, placing the contribution of the ten main tenants at 23.8 % of rents, compared with 37 % recorded in 2024. This greater breadth of the tenant base increases the resilience of the Group’s income.

Fitch also values positively the stability of the average lease term, which stands at around 2.5 years, supported by more than 280 renewals and new contracts during fiscal year 2025. In addition, key indicators such as the occupancy cost ratio show the strength of the business model.

Another aspect highlighted in the analysis is Castellana Properties’ ability to create value through repositioning projects and active management of its assets. Recent initiatives, such as the El Faro project and its transformation through the incorporation of new brands such as Lefties, Mango or Fitness Park, or the repositioning project of Vallsur, have demonstrated the company’s ability to generate additional income with high investment returns.

Débora Santamaría, CFO of Castellana Properties, commented that “the improvement of our rating by Fitch represents an important endorsement of our growth and active management strategy implemented in recent years. It reaffirms confidence in our ability to continue generating long-term value, maintain strong financial discipline and continue developing projects that strengthen our commitment to shareholders, customers and the communities in which we operate.”