• The company's ESG Report for FY24 outlines the initiatives and milestones delivered by the company on environmental, social and governance aspects in its 2024 financial year

• Castellana Properties CEO Alfonso Brunet said: “At Castellana Properties we deploy far-reaching measures across all areas of sustainability with a view to delivering a positive impact on the communities we operate in."

Castellana Properties, the specialist listed retail property firm, has published its ESG Report for financial year 2024, which runs from April 2023 to March 2024, in line with its commitment to sustainability.

Throughout its 2024 financial year, Castellana Properties successfully grew the total value of its portfolio by 7.4% to stand at €1,201 million in March 2024, including a Gross Lettable Area of 373,815 sqm and its shareholding in Lar España Real Estate. This growth drove a 5.9% increase in the EPRA Net Tangible Asset Value (EPRA NTA), which closed the period at €687 million. The company also posted a record high footfall of 44.8 million, an 11% increase in its NOI to €64.4 million and an occupancy rate of 98.9%.

To meet the pressing need to build a more sustainable future and with a view to improving its impact on local communities, Castellana Properties has published its annual ESG Report again this year, covering the period from April 2023 to March 2024.

This commitment to sustainability is evidenced by the four-star rating achieved in the 2023 Global Real Estate Sustainability Benchmark (GRESB), a global benchmark in corporate ESG assessment. The company has also been awarded SGS certifications in Environmental and Energy Management, in accordance with ISO 14.001 and ISO 50.001. For the second year running, the company received the EPRA Gold Award in the Sustainability Best Practices (sPBR) category from the European Real Estate Association. It has also successfully steered 100% of its portfolio through the international BREEAM certification process.

In the environmental area, with a view to supporting the battle against climate change, Castellana Properties has launched initiatives such as the Smart Building project and the Sustainable Mobility Plan. A major milestone this year was the creation of the joint venture Castellana Green, which is rolling out self-consumption solar PV plants throughout the portfolio to deliver locally-generated renewable energy.

In line with its goal of using natural resources responsibly, Castellana Properties uses electricity from renewable sources at 100% of its assets and has reduced its gas consumption by 88%. The company has completed water audits at all its shopping centres, moving one step closer to achieving Zero Waste. Castellana Properties is also the first SOCIMI to have joined the Green Building Council España (GBCe).

The company has deployed a broad range of initiatives across all its assets to deliver on its commitment to supporting the social well-being of its stakeholder groups. As well as volunteering programmes and corporate donations, Castellana Properties' shopping centres have also helped raise awareness and held a range of ESG initiatives, including "Una Animalá de Cariño" to help combat animal abandonment. As for its people, the company improved its employee benefits in FY24, held more team building events and launched a new career development and training programme, earning an outstanding score of 92% in the Great Place To Work (GPTW) index. To support the well-being of retailers and visitors, Castellana Properties improved air quality and accessibility at all its centres, securing AIS accessibility certification.

In corporate governance, Castellana Properties has stepped up its oversight and governance system, placing particular emphasis on its core values of ethics, compliance and transparency. Key developments in FY24 included the first model for internal control over non-financial reporting, providing a robust, efficient framework for the management and oversight of key non-financial data and anticipating the requirements under CSRD.

In innovation, Castellana Properties has consolidated and added to the innovation initiatives in place, reaching a robust degree of maturity in data management and developing advanced analysis models to improve its operations. It has launched new digital platforms and applications to improve both the tenant and the visitor experience, and continues to work with technology centres on open innovation initiatives to discover new business models.

ESG is the cornerstone of the company's strategy

In the last year, Castellana Properties has announced a new ESG strategy entitled Beyond ESG Boundaries, featuring short (FY27), medium (FY30) and long term (FY40) goals and commitments intended to position the company as a retail sector sustainability leader.

At the environmental level, the company is forging ahead with its strategic actions to mitigate climate change and reduce climate risk by protecting natural resources. Castellana Properties works relentlessly to improve its ESG certifications and ratings.

In the field of governance, improving the corporate governance structure and internal control system is a priority for Castellana Properties, with a view to building a structure that underpins its progress and best practices in sustainability.

To enhance social well-being, the company has set clear targets geared towards generating a positive impact on the communities where it operates and on employee well-being, as well as developing a responsible supply chain.

Castellana Properties CEO Alfonso Brunet said: “At Castellana Properties we understand the challenges facing the retail sector today, especially in relation to sustainability. Given these challenges and the impact of our activity on the environment where we operate, it is important that we continue to deploy measures that generate a positive impact at all levels”.