Retail Estates sa

Investor Presentation • Nov 18, 2024

Half-year results 2024-2025

Highlights Our portfolio ESG Financials Financing Outlook Appendix

2

RETAIL ESTATES 2024

FIRST HALF YEAR 2024-2025 (ended 30 September 2024)

Echoes from the retailers

WHAT HAPPENED IN THE PAST PERIOD

• ➣ Period up to 30 September 2024
• ➣ Consumer mood: indexation wages and residential property market
• ➣ Food retailers
• ➣ Non-food retailers
• ➣ Weather
• ➣ Travel and horeca
• ➣ Increased savings / government deficit / geopolitical issues

4

➣ Interpreting red flags and gradually reducing exposure over several years

➣ Relaunch before bankruptcy, direct takeover of lease via curator following a bankruptcy, or reletting on our terms

Retailer (first half of the financial year of Retail Estates)	Exposed shops Retail Estates	Number of shops relet to new tenant	Number of shops without new tenant	Estimated Rental Value (in €)
Big Bazar	2	1	1	57,600
Bristol (Euro Shoe Group)	11	8	3	241,400
Carpetright België	4	3.5	0.5	60,000
Cassis Paprika	2	1	1	105,000
Babykid	3	0	3	328,150

Echoes from the retailers

WHAT DO WE EXPECT IN THE COMING PERIOD

A. Inflation

• ➣ Full indexation Belgium/the Netherlands: remains at a high level
• ➣ Evolution contractual rent versus ERV
• ➣ Rent reviews : renewals/break date
• ➣ Price leaders versus price followers: hard to increase prices after first inflation wave

B. Salary costs

C. Logistics

D. Circular economy

➣ Increasing number of retailers invest and communicate intensively

E. Click and collect

Circular economy

Risk Echoes from the retailers/investment market

• ➣ Number of changes following bankruptcies and restructuring, compensated by strong takeup
  • ➙ 22 shops affected on total of 1,022
• ➣ Low activity for investors: frozen market except for wealthy individuals/cash buyers/private equity

➣ Out-of-town

• ➙ low risk profile thanks to strong operational performance
• ➙ positive sentiment by financial markets

Retail Estates in the past period and looking ahead

A. Profitability

• ➣ Rental income debt collection
• ➣ Vacancy
• ➣ Maintenance costs
• ➣ Personnel costs
• ➣ Interest costs
• ➣ Taxes
• ➣ Dividend

Retail Estates in the past period and looking ahead

B. Balance Sheet

• ➣ Property value
• ➣ Investment capacity
• ➣ Financing capacity
• ➣ Capital markets

C. Mitigating Factors

• ➣ Low unemployment
• ➣ Indexation of wages/ real growth

Highlights Our portfolio ESG Financials Financing Outlook Appendix

Portfolio valuation

Portfolio valuation: Belgium vs the Netherlands (30 Sept. 2024)

Portfolio KPIs

Quality and diversification of tenants (30 Sept. 2024)

Partner of choice

Quality and diversification of tenants Partner

of choice

Based on annual rent

Evolution of occupancy rate (30 Sept. 2024) Partner

➣ Properties at prime locations in high demand

17

RETAIL ESTATES 2024

➣ Extensive retail market knowledge: know your customers

EVOLUTION OF OCCUPANCY RATE

of choice

Current

Highlights Our portfolio

ESG Financials Financing Outlook Appendix

18

ESG: Environment

IMPROVEMENTS IN THE FIRST HALF OF THE FINANCIAL YEAR

Green Retail Estates

new locations with solar panels

5 planned in second half of the year

2.244 kWp

total new capacity of solar panels

production capacity for 577 families1

Agreements with Allego and Sparki for 46 additional locations in 2024-2025

Financials Financing Outlook Appendix

20

RETAIL ESTATES 2024

Key figures

REAL ESTATE PORTFOLIO	30.09.2024	31.03.2024	31.03.2023	31.03.2022
Number of properties	1,022	1,020	1,013	987
Total lettable area in m²	1,225,824	1,228,576	1,211,004	1,177,577
Estimated fair value (in €)	2,047,303,708	2,028,317,000	1,888,562,000	1,759,879,000
Estimated investment value (in €)	2,151,943,798	2,134,531,000	1,983,204,000	1,833,757,000
Average rent prices per m²	121,72	119,06	114.89	104.14
EPRA occupancy rate	97.57%	98.20%

BALANCE SHEET INFORMATION	30.09.2024	31.03.2024	31.03.2023	31.03.2022
Shareholders' equity	1,163,893,366	1,174,361,000	1,104,064,000	920,980,000
Shareholders' equity attributable to the shareholders of the parent company	1,156,426,349	1,167,356,083	1,097,249,112	920,980,000
Debt ratio (RREC legislation, max. 65%)1	44.59%	44.62%	44.77%	49.15%

RESULTS (in € 000)	30.09.2024	30.09.2023	31.03.2023	31.03.2022
Net rental income	70,609	67,712	125,401	115,579
Property result	69,281	66,467	123,482	113,504
Property costs	-7,519	-7,977	-15,332	-10,524
Operating corporate costs and other current operating income and expenses	-4,708	-3,946	-7,097	-6,050
Operating result before result on portfolio	57,055	54,543	101,053	96,930
Result on portfolio	11,413	39,416	51,460	22,096
Operating result	68,469	93,960	152,513	119,026
Financial result	-25,336	-7,199	22,723	16,158
Net result (share Group)	41,877	86,638	180,621	131,837
EPRA earnings (share Group)	45,349	44,515	88,203	75,265

¹ The Royal Decree of 13 July 2014 relating to the regulated real estate companies (the "RREC R.D."), last modified by the Royal Decree of 28 april 2018 in execution of the Law of 12 May 2014 relating to the regulated real estate companies (the "RREC Law"). ² Compared to the EPRA earnings per share of 2022-2023 excluding non-recurring results as a consequence of various refunds of Dutch taxes relating to the previous financial year

Key figures (30 September 2024)

Consolidated income statement (30 September 2024)

INCOME STATEMENT (in € 000)	30.09.2024	30.09.2023
Rental income	71,235	67,851
Rental related expenses	-626	-139
Net rental income	70,609	67,712
Recovery of property expenses	0	0
Recovery of rental charges and taxes normally payable by tenants on let properties	7,629	6,623
Rental charges and taxes normally payable by tenants on let properties	-8,928	-7,777
Other rental related income and expenses	-29	-91
Property result	69,281	66,467
Technical costs	-2,676	-3,992
Commercial costs	-564	-461
Charges and taxes on unlet properties	-723	-342
Property management costs	-3,556	-3,181
Other property costs	0	-1
Property costs	-7,519	-7,977
Operating property result	61,763	58,490
Operating corporate costs	-4,708	-3,946
Operating result before result on portfolio	57,055	54,543
Result on disposals of investment properties	117	-630
Result on sales of other non-financial assets	0	0
Changes in fair value of investment properties	11,427	40,164
Other result on portfolio	-130	-118
Operating result	68,469	93,960
Financial income	75	90
Net interest charges	-10,340	-9,880
Changes in the fair value of financial assets and liabilities	-15,042	2,611
Other financial charges	-29	-21
Financial result	-25,336	-7,199
Share in the result of associated companies and joint ventures	-22	0
Result before taxes	43,111	86,761
Taxes	42,138	86,985
Net result	42,138	86,985
Shareholders of the Group	41,877	86,638
Minority interests	262	347
EPRA earnings (share Group)	45,349	44,515
Result on portfolio	11,413	39,416
Changes in fair value of financial assets and liabilities	-15,042	2,611
EPRA result minorities	418	443

Consolidated balance sheet (30 September 2024)

ASSETS (in € 000)	30.09.2024	31.03.2024
Non-current assets	2,092,970	2,089,636
Goodwill
Intangible non-current assets	8,913	8,874
Investment properties1	2,047,304	2,028,317
Other tangible non-current assets	6,275	6,450
Financial non-current assets	29,409	44,924
Financial instruments	22,782	38,275
Participations accounted for using the equity method	1,627	1,649
Receivables towards participations accounted for using the equity method	5,000	5,000
Finance lease receivables	1,030	1,030
Trade receivables and other non-current assets	40	40
Deferred taxes	8	8
Other	32	32
Current assets	33,717	41,306
Assets or groups of assets held for sale	8,654	8,552
Trade receivables	16,633	14,627
Tax receivables and other current assets	1,761	7,311
Cash and cash equivalents	2,891	7,089
Deferred charges and accrued income	3,777	3,727
TOTAL ASSETS	2,126,687	2,130,942

¹ Including investment properties under construction (IAS 40).

Consolidated balance sheet (30 September 2024)

SHAREHOLDERS' EQUITY AND LIABILITIES (in € 000)	30.09.2024	31.03.2024
Shareholders' equity	1,163,893	1,174,361
Shareholders' equity attributable to the shareholders of the parent company	1,156,426	1,167,356
Capital	322,499	315,035
Issue premiums	396,581	384,498
Reserves	395,469	344,857
Net result of the financial year	41,877	122,967
Minority interests	7,467	7,005
Liabilities	962,794	956,581
Non-current liabilities	863,330	870,386
Provisions	0	0
Non-current financial debts	860,199	867,186
Credit institutions	679,352	686,535
Long term financial lease	5,190	5,079
Bonds	0	0
Other non-current financial liabilities	175,657	175,572
Deferred taxes	0	0
Current liabilities	3,130	3,200
Current financial debts	99,464	86,194
Credit institutions	60,408	46,682
Bonds	60,408	46,682
Short term financial lease
Trade debts and other current debts	16,159	18,718
Exit tax	738	738
Other	15,420	17,979
Other current liabilities	1,320	1,153
Accrued charges and deferred income	21,578	19,642
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	2,126,687	2,130,942

DEBT RATIO	30.09.2024	31.03.2024
Debt ratio2	44.59%	44.62%

² The debt ratio is calculated as follows: liabilities (excluding provisions, accrued charges and deferred income, financial instruments and deferred taxes), divided by the total assets (excluding hedging instruments).

EPRA key performance indicators

	30.09.2024		31.03.2024
	EUR/1000	EUR per share	EUR/1000	EUR per share
EPRA earnings	45.35	3.12	88,366	6.18
EPRA net tangible assets (NTA)	1,128,025	76.70	1,123,482	78.15
Share price on 30/09/2024		65.50		65.00

26 RETAIL ESTATES 2024

Highlights Our portfolio ESG Financials Financing Outlook Appendix

2 3 Interest rates and maturity

OVERVIEW DEBT MATURITY (IN EUR)

31/03/24 31/03/25 31/03/26 31/03/27 31/03/28 31/03/29 31/03/30

0%

20%

40%

60%

80%

100%

120%

0

FY2022Q1TD

FY2022Q2TD

FY2022Q3TD

FY2022

FY2023

FY2024

FY2025

FY2026

FY2027

FY2028

FY2029

FY2030

1

4

5

6

Interest rates and maturity

29 RETAIL ESTATES 2024

Hedging

OVERVIEW FIXED RATE DEBT, HEDGED FLOATING RATE DEBT AND UNHEDGED FLOATING RATE DEBT (in %)

Structure of debt

STRUCTURE OF THE FINANCIAL DEBT

Highlights Our portfolio ESG Financials Financing Outlook Appendix

OUTLOOK AND GUIDANCE 2024-2025

Calendar

Half-year results 2024-2025 Monday	Monday 18 November 2024
Third quarter results 2024-2025	Monday 24 February 2025
Full year results 2024-2025 Monday	Monday 26 May 2025

Contact

Jan De Nys Chief Executive Offficer +32 (0)2 568 10 20 Jan.DeNys@retailestates.com

Kara De Smet Chief Finance Officer +32 (0)2 568 10 20 Kara.DeSmet@retailestates.com

"Retail Estates was again included in the EPRA annual report survey and received a gold award for its financial reporting and a silver award for its sustainability reporting."

Highlights Our portfolio ESG Financials Financing Outlook Appendix

Portfolio evolution

GROWTH PORTFOLIO RETAIL ESTATES NV

37 RETAIL ESTATES 2024

Profile of Retail Estates

Shareholder structure

• 9.19% Nextensa
• 5.19% AXA
• 4.87% FPIM, Belfius
• 4.52% Blackrock
• 3.98% Vleterinvest
• 2.87% Petercam Degroof Asset management
• 34.37% Other institutionals
• 35% Retail investors

RETAIL ESTATES - EPRA NTA - IFRS NAW

Milestones of Retail Estates

1998

1999

2002 Independant

capital

Strengthening of the capital First public capital increase

Retail Estates becomes an independently managed investment company with fixed

Retail Estates on the stock exchange

IPO and first listing on Euronext Brussels

2003

Strengthening of the capital

Second public capital increase

2013

2012

first time

Optional stock dividend Offered to the shareholders for the

Strengthening of the capital

Third public capital increase

Diversification of financing sources

Bond issue - private placement

Belgian Reit

Real estate portfolio reaches the milestone of EUR 250 million

Value real estate portfolio

2011

2008

Value real estate portfolio

Real estate portfolio reaches the milestone of EUR 500 million

Sicaf becomes

2015

Strengthening of the capital Fourth public capital increase

2016

Value real estate portfolio

Real estate portfolio reaches the milestone of EUR 1 billion

Diversification of financing sources

Bond issue - private placement

2017

2018

Inclusion in EPRA index

The inclusion in the EPRA index contributes to the share's visibility

2019

Value real estate portfolio Real estate portfolio

reaches the milestone of EUR 1,5 billion

2020

Diversification of financing sources

Bond issue private placement of EUR 75 million

pre-corona level 2023

25th anniversary of Retail Estates

2022

Full recovery Operating results to

Purchase Alexandrium Megastores

Value portfolio

Real estate portfolio reaches the EUR 2 billion

Strengthening of the capital

20 years Retail Estates on the stock exchange Additional listing on Euronext Amsterdam

Fifth public capital increase Expansion to the Netherlands

valuations and increasing

2021

Stable portfolio dividend

Despite months of mandatory shop closures due to Corona crisis

Public BE-REIT under the laws of Belgium

Industrielaan 6 B- 1740 Ternat T. +32 (0)2 568 10 20 F. +32 (0)2 581 09 42

info@retailestates.com www.retailestates.com

This presentation has been prepared by the management of Retail Estates NV, Belgian public real estate investment company ("Retail Estates" or the "Company"), solely for your information and background and is subject to updating, completion, revision and amendment and such information may change materially. No person is under any obligation to update or keep current the information contained in this document and any opinions expressed in relation thereto are subject to change without notice. "Presentation" means this document, any oral presentation, the question and answer session and any written or oral material discussed or distributed during the presentation. The Presentation comprises written material/slides which provide information on the Company and its subsidiaries.

This Presentation includes forward-looking statements that reflect the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results, condition, performance, prospects, growth, strategies and the industry in which the Company operates. These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company's actual results, condition, performance, prospects, growth or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. The Company cautions you that forward-looking statements are not guarantees of future performance and that its actual results and condition and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this document. In addition, even if the Company's results, condition, and growth and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in future periods. The Company and each of its directors, officers and employees expressly disclaim any obligation or undertaking to review, update or release any update of or revisions to any forward-looking statements in this Presentation or any change in the Company's expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.