• The Company sees its gross rental income (GRI) rise to EUR 31.2 million in H1 2022, a 7.6% year-on-year increase.

• The Castellana Properties portfolio – comprising 16 shopping centres and retail parks – offers a combined gross lettable area of 350,085 sqm and has achieved a value uplift of 1.1% in like-for-like terms, with its gross value climbing to €1,105 million, including its shareholding in Lar España Real Estate.

• The occupancy rate remains above 98% and the Company continues to receive 99% of its rental income, comfortably outperforming the market average in both areas.

Castellana Properties, the specialist listed retail property firm, has today published the results for the first half of its fiscal year, from 1 April 2022 to 30 September 2022. The company posted net profit for the period of €26.4 million, up 55.4% year-on-year and gross rental income (GRI) of €31.2 million, up 7.6% versus H1 2021.

The gross value of the Company’s portfolio, comprising 16 shopping centres and retail parks and offering a combined gross lettable area of 350,085 sqm, stands at €1,012 million, equating to a 1.1% value uplift since March 2022. If the Castellana Properties shareholding in Lar España is included, the portfolio’s gross value reaches the EUR 1,105 million mark. In like-for-like terms, Net Operating Income (NOI) grew 7.5% to EUR 29 million, a percentage that rises to 12.1% if the recovery of the temporary rental discounts offered due to Covid-19 during H1 2021 are included. The EPRA Net Tangible Asset value (EPRA NTA) climbed 1.03% to EUR 622 million.

In addition, this year between 1 April and 30 September, 105 lettings were completed (49 new leases and 56 renewals), adding an additional 17,173 sqm to the portfolio’s total floor area and equating to new rental income of €4.6 million. The occupancy rate remains above 98% and the Company continues to receive 99% of its rental income, comfortably outperforming the market average in both areas.

The firm remains committed to its investment programme, increasing its stake in Lar España to 25.7%, with an average price of EUR 5.25 per share, which equates to a 52% discount on the EPRA NTA. This deal was made after an excellent opportunity was identified in capital markets, one that offered both a high dividend yield and the potential to secure long-term potential capital value uplift.

Exceeding pre-pandemic levels

Footfall at the Company’s shopping centres continues to trend upwards, reaching pre-pandemic levels in the reporting period and even exceeding 2019’s figures in September 2022. Sales have posted double-digit growth since the start of April this year, booking an overall increase of +12%. Both indicators have outperformed the sector benchmarks and are a testament to the resilience of the Company’s portfolio and the way in which the Castellana Properties team actively manages its assets.

By sectors, the top performers were DIY and the pet industry, with a comparison versus H1 2019 figures showing the former to have grown 66.3% and the latter 61.1%. The fashion and F&B segments have been steadily regaining lost ground in recent months, with both categories now outperforming pre-pandemic levels.

Castellana Properties – firmly committed to sustainability

The first half of the year saw Castellana Properties publish its first ESG Report, for which it received an EPRA BPR Gold Award and the Most Improved Award special mention for being one of the SOCIMIs in Europe to achieve the greatest improvement in its ESG score compared to the previous year. The Company has set out a strategic ESG plan that it plans to put in place over the next three years between now and 2025. In the plan, which focuses on 8 of the 17 Sustainable Development Goals (SDGs) identified in the UN’s 2030 Agenda, the Company commits to rolling out an ISO 14001 and 50001-compliant environmental and energy management system, to procuring renewable energy supplies across 100% of the portfolio and setting up self-consumption renewable energy facilities at 75% of its shopping centres, as well as implementing a range of energy efficiency measures (SDG 7) and several other initiatives. In fact, Castellana Properties has already signed agreements to install the electric vehicle charging stations required by Royal Legislative Decree 29/2021, which will see 370 EV charging points installed across its portfolio (with a capacity of circa 25 MW).

100% of its shopping centres are BREEAM certified, with most rated either “outstanding” or “excellent”, and the Company is preparing to renew their certifications over the coming year. Castellana Properties has also calculated and reported its carbon footprint to Spain's Ministry for the Ecological Transition (MITECO), as a first step towards achieving its decarbonisation plan which was designed using the Carbon Risk Real Estate Monitor (CRREM). The Company also obtained a 3-star rating, scoring 75 points out of a possible 100, in its first year participating in the GRESB ranking – GRESB is the leading global benchmark in assessing the ESG performance of listed companies.

Meanwhile, the Company has also renewed the prestigious ‘Great Place to Work’ certification, increasing the score achieved last year by a total of 4 points, with a Trust Index score of 91%, and outperforming the real estate sector average by 21%.

In March this year, Castellana Properties also obtained a long-term BBB- Investment Grade rating with a ratings outlook of stable by Fitch, the internationally renowned credit rating agency.

For Alfonso Brunet, CEO of Castellana Properties, “the strong results posted today demonstrate the excellent work we are doing here at Castellana Properties. Which is why I would like to extend a special thank you to everyone who forms a part of this family, for the effort that we as a team make to ensure the company continues to grow. Over the coming months, we will continue to improve our portfolio, tailoring it to the needs and requirements of our clients, remaining firmly committed to sustainability and innovation and particularly focusing on creating value uplift for our shareholders”.