Euro (\u20ac) is used as functional and presentation currency, and is rounded off to the nearest thousand.
Statement of conformity
The consolidated annual accounts are drawn up in accordance with accounting standards which are consistent with the International Financial Reporting Standards as implemented by the BE-REIT legislation.
Application of IFRS 3 Business Combinations
Corporate transactions of the past financial years were not processed as business combinations as defined by IFRS 3 based on the finding that this standard was not applicable given the nature and the scale of the acquired companies. The companies in question owned a limited number of properties. Their employees have not been retained and their activities have been discontinued. They were not intended to be kept on as independent businesses. The companies are fully consolidated. Please refer to note 41 for more information on this matter.
Endorsement status of the new standards as at 31\u00a0December\u00a02024 (EFRAG status report 23\u00a0December\u00a02024)
The following new standard and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2023 and have been endorsed by the European Union:
\u2013Amendments to IAS 1 \u2018Presentation of Financial Statements: Classification of Liabilities as current or non-current\u2019 (effective 01/01/2024), affect only the presentation of liabilities in the statement of financial position \u2014 not the amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose about those items. They:
\u2022Clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the \"right\" to defer settlement by at least twelve months and make explicit that only rights in place \"at the end of the reporting period\" should affect the classification of a liability;
\u2022Clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.
\u2022Clarify how conditions with which an entity must comply within 12 months after the reporting period, such as covenants, affect the corresponding liability\u2019s classification.
\u2013Amendments to IAS 7 \u2018Statement of Cash Flows\u2019 and IFRS 7 \u2018Financial Instruments: Disclosures\u2019: Supplier Finance Arrangements. The amendment describes the characteristics for which reporters will have to provide additional disclosures regarding the impact of supplier finance arrangements on liabilities, cash flows and exposure to liquidity risk.
\u2013Amendments to IFRS 16 \u2018Leases\u2019: Lease Liability in a Sale and Leaseback (effective 1 January 2024). The amendments explain how an entity accounts for a sale and leaseback after the date of the transaction, specifically where some or all the lease payments are variable lease payments that do not depend on an index or rate. They state that, in subsequently measuring the lease liability, the seller-lessee determines \u2018lease payments\u2019 and \u2018revised lease payments\u2019 in a way that does not result in the seller-lessee recognising any amount of the gain or loss that relates to the right of use it retains. Any gains and losses relating to the full or partial termination of a lease continue to be recognised when they occur as these relate to the right of use terminated and not the right of use retained.
The following new standards and amendments have been issued, are mandatory for the first time for the financial year beginning 1 January 2024 but have not been endorsed by the European Union:
\u2013None
The following amendments have been issued, but are not mandatory for the first time for the financial year beginning 1 January 2024 and have been endorsed by the European Union:
\u2013Amendments to IAS 21 \u2018The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability\u2019 (effective 1 January 2025). IAS 21 previously did not cover how to determine exchange rates in case there is long-term lack of exchangeability and the spot rate to be applied by the company is not observable. The narrow scope amendments add specific requirements on:
\u2022Determining when a currency is exchangeable into another and when it is not;
\u2022Determining the exchange rate to apply in case a currency is not exchangeable;
\u2022Additional disclosures to provide when a currency is not exchangeable.
The following standards and amendments have been issued, but are not mandatory for the first time for the financial year beginning 1 January 2024 and have not been endorsed by the European Union:
\u2013Amendments to IFRS 9 and to IFRS 7: the Classification and Measurement of Financial Instruments (effective on 1 January 2026). On 30 May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to:
\u2022Clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
\u2022Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
\u2022Add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement environment, social and governance (ESG) targets); and
\u2022Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).
\u2013Amendments to IFRS 9 and to IFRS 7: Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7 (effective on 1 January 2026). On 18 December 2024, the IASB issued amendments to IFRS 9 and IFRS 7:
\u2022clarify the application of the \u2018own-use\u2019 requirements;
\u2022permit hedge accounting if these contracts are used as hedging instruments; and
\u2022new disclosure requirements to enable investors to understand the effect of these contracts on a company\u2019s financial performance and cash flows.
\u2013IFRS 18 Presentation and Disclosure in Financial Statements (effective on 1 January 2027). The IASB has issued IFRS 18, the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:
\u2022the structure of the statement of profit or loss;
\u2022required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity\u2019s financial statements (that is, management-defined performance measures); and
\u2022enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its \u2018operating profit or loss\u2019.
IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information. The changes in presentation and disclosure required by IFRS 18 might require system and process changes.
\u2013IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective on 1 January 2027). The International Accounting Standard Board (IASB) has issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 \u2018Subsidiaries without Public Accountability: Disclosures\u2019 permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries\u2019 financial statements while maintaining the usefulness of the information for users of their financial statements.
\u2013Annual improvements Volume 11 (effective 1 January 2026). The amended Standards are:
\u2022IFRS 1 First-time Adoption of International Financial Reporting Standards;
\u2022IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
\u2022IFRS 9 Financial Instruments;
\u2022IFRS 10 Consolidated Financial Statements; and
\u2022IAS 7 Statement of Cash Flows.
The following standard is mandatory since the financial year beginning 1 January 2016 (however not yet subjected to EU endorsement). The European Commission has decided not to launch the endorsement process of this interim standard but to wait for the final standard:
\u2013IFRS 14, \u2018Regulatory deferral accounts\u2019 (effective 1 January 2016). It concerns an interim standard on the accounting for certain balances that arise from rate\u2013regulated activities. IFRS 14 is only applicable to entities that apply IFRS 1 as first-time adopters of IFRS. It permits such entities, on adoption of IFRS, to continue to apply their previous GAAP accounting policies for the recognition, measurement, impairment and derecognition of regulatory deferral accounts. The interim standard also provides guidance on selecting and changing accounting policies (on first\u2013time adoption or subsequently) and on presentation and disclosure.
Presentation principles
Euro (\u20ac) is used as functional and presentation currency, and is rounded off to the nearest thousand.
Below is a summary of the most important principles for financial reporting. The accounting principles were applied consistently throughout the relevant period.
Consolidation principles
Consolidation principles
Subsidiaries
Subsidiaries are legal entities controlled by the company. The companies controlled by the Group are consolidated through the application of the full consolidation method.
Full consolidation consists in incorporating all the assets and liabilities of the consolidated companies as well as the costs and revenues, carrying out the necessary eliminations. Non-controlling interests are the interests in subsidiaries that are not held by the Group, neither directly nor indirectly. On 31\u00a0March\u00a02024, only non-controlling interests were recognised for the company Alex Invest NV. The real estate owned by Alex Invest is recorded at 100% in the cluster report relating to the portfolio (like in the balance sheet).
\u2018Control\u2019 is defined as Retail Estates nv's ability to directly or indirectly determine the financial and operational policy of the subsidiary, to benefit from the variable cash flows and the results of this subsidiary and to influence its variable cash flows by controlling the subsidiary.
Joint ventures and associated companies
Joint ventures are companies over which the Group exercised joint control, as determined by contract. This joint control applies when the strategic, financial and operational decisions relating to the activities require the unanimous consent of all parties sharing control (the participants in the joint venture).
Associated companies are companies on which the Group is found to have a significant influence.
As defined in IAS 28, the result and the balance sheet impact of the associated company Veilinghof \u2019t Sas (in which Retail Estates has a 26.19% participating interest) are processed in accordance with the change in equity method. Participating interests in companies to which the change in equity method is applied are recorded in the consolidated balance sheet under a separate item of the financial fixed assets (\u201cCompanies to which the change in equity method is applied\u201d).
If the change in equity method is applied to a participating interest, this interest is recorded in the consolidated balance sheet for the amount corresponding to the part of the shareholders\u2019 equity of the company concerned, including the result of the financial year, that reflects this participating interest.
The result of the associated companies and joint ventures is recognised in the result under \u201cshare in the result of associated companies and joint ventures\u201d.
The real estate relating to Veilinghof \u2019t Sas is not included in the cluster report relating to the portfolio.
Foreign currency conversion
Foreign currency transactions are booked by applying the exchange rate valid on the transaction date. Monetary assets and liabilities in foreign currencies are valued by applying the closing rate on the balance sheet date. Exchange rate differences ensuing from foreign currency transactions and the conversion of monetary assets and liabilities into foreign currencies are booked in the income statement in the period in which they arise. Non-monetary assets and liabilities in foreign currencies are converted at the exchange rate applicable on the transaction date.
Financial derivatives
Fair value hedge accounting
The Group uses financial derivatives (interest rate swaps) to hedge interest rate risks arising from operational, financial and investment activities. Derivative financial products are initially recognised at their fair value.
After the initial recognition, financial derivatives are valued in the annual accounts at their fair value.
Gains or losses resulting from changes in the fair value of the financial derivatives are immediately recognised in the income statement unless a derivative meets the conditions for cash flow hedge accounting.
The fair value of the financial interest rate derivatives is the amount that the company expects to receive or pay if the financial interest rate derivative is terminated as of the balance sheet date, taking into account the prevailing interest rate.
Cash flow hedge accounting
If a financial derivative can be documented as an effective hedge against any cash flow fluctuations, attributable to a risk linked to an asset or liability, or a highly probable future transaction, the part of the result ensuing from the change in value of the financial interest rate derivative that has been recognised as an effective hedge shall be posted directly to equity under \u201cChanges in the fair value of financial assets and liabilities\u201d. The ineffective part of the financial interest rate derivative shall be recognised in the income statement.
Investment properties
Valuation at initial recognition
Investment properties comprise all real estate properties that are ready to be let. Investment properties are initially valued at acquisition cost, including additional expenses and non-deductible VAT. The exit tax, owed by companies over which the public BE-REIT acquires direct or indirect control, is furthermore in principle deducted from the value of the underlying property as it concerns a tax on the latent capital gain existing in the acquired company prior to the acquisition unless these companies do not qualify for a merger with the public BE-REIT (as decided by the board of directors). The commissions related to the acquisition of buildings are regarded as additional costs of the acquisition and are added to the acquisition cost.
If a property is acquired through non-monetary contributions, any third-party costs directly attributable to the issuance of new shares shall be deducted from equity. The contributed properties are valued at contribution value at initial recognition.
The user rights recognised in the balance sheet for concessions, long leases or similar lease agreements (following the entry into force of IFRS 16) are also regarded as a real estate investment.
Valuation after initial recognition
At the end of each quarter, an independent real estate expert shall provide an exact assessment of the following elements:
\u2013the immovable properties, the properties that are immovable by their intended use, and the rights in rem on immovable properties held by Retail Estates nv or, where appropriate, by a subsidiary it controls;
\u2013the option rights on immovable properties held by Retail Estates nv or, where appropriate, by a subsidiary it controls, as well as the immovable properties to which these rights apply;
\u2013the contractual rights by which one or more immovable property assets are leased to Retail Estates nv or, where appropriate, to a subsidiary it controls, including the underlying immovable property.
The experts perform their assessments in accordance with national and international standards and their application procedures, including those in the field of the valuation of Belgian regulated real estate companies (pursuant to the provisional decrees; the experts reserve the right to adapt the valuation in the event of any amendments to the decrees).
Fair value is specifically defined as the price that would be received upon sale of an asset or that would have to be paid upon the transfer of an obligation in an arm\u2019s length transaction between market parties on the valuation date.
From the point of view of the seller, it must be construed minus the transaction taxes. The estimated amount of the transaction taxes is immediately deducted from the results at initial recognition.
Comments on the real estate transfer tax in Belgium
The transfer of ownership of real estate is subject to transfer taxes in Belgium. The amount of these taxes depends on the manner of transfer, the capacity of the buyer and the geographical location of the property. The first two elements, and hence the full amount of the taxes due, are therefore only known when the transfer of ownership has been completed. The different transfer of ownership possibilities and the corresponding taxes are:
\u2013real estate sales agreements: 12.50% for properties located in Brussels-Capital Region and in the Walloon Region, 12% for properties located in the Flemish Region;
\u2013sale of real estate under the broker system: 4% to 8% depending on the Region;
\u2013long-term lease agreements for real estate (up to 50 years for the right of superficies and up to 99 years for the long-term lease right): 5%
\u2013real estate sales agreements where the purchaser is a public body (e.g. an entity of the European Union, the Federal Government, a regional government or a foreign government): exemption from duties;
\u2013non-monetary contribution of real estate in return for the issuance of new shares to the benefit of the contributor: exemption from duties;
\u2013sales agreement for shares of a real estate company: absence of duties;
\u2013merger, demerger and other company reorganisations: absence of duties; etc.
As a result, the actual percentage of the transfer taxes varies from 0% to 12.50%; it is furthermore impossible to predict which percentage is applicable to the transfer of a given Belgian property before the actual transfer takes place.
In January 2006, all experts involved in determining the value of Belgian BE-REITs were asked to determine a weighted average percentage of the actual taxes for the real estate portfolios of the BE-REITs. For transactions of properties with a value of over \u20ac 2.50 million, and in view of the range of methods for transferring ownership (see above), the experts calculated the weighted average taxes at 2.50% based on a representative sample of 220 market transactions with a total worth of \u20ac 6 billion that took place between 2003 and 2005. As regards transactions involving buildings of which the total value is lower than \u20ac 2.50 million, transfer duties are applied depending on the Region in which the premises are located. It was decided to adjust this percentage by multiples of 0.5% if necessary.
In 2016, an update of this calculation was made according to the methodology used in 2006 based on a sample of 305 large or institutional transactions (threshold of \u20ac 2.5 million) that occurred between 2013 and the 1st quarter of 2016 (this is 70% or 8.18 billion of the estimated total number of investment transactions during this period). The experts came to the conclusion that the 0.5% threshold was not exceeded. Consequently, the weighted average of 2.5% was retained.
Retail Estates nv considers its real estate portfolio as a whole which can be disposed of as a whole or as a limited number of larger parts. Retail Estates manages its real estate at portfolio level whenever possible (\u201cretail cluster and retail parks\u201d, see management report and chapter \u201coverview of real estate portfolio\u201d in the real estate report for an overview of the clusters). Consequently, the fair value is determined by deducting 2.5% from the value of the properties (in accordance with the valuation at \u201cfair value\u201d of its valuation appraisers Cushman & Wakefield, CBRE, Colliers and Stadim). In accordance with its strategy, Retail Estates does in principle not have the intention to sell individual properties within the clusters with an investment value below \u20ac 2.5 million.
Comments on the real estate transfer tax in the Netherlands
As from 1 January 2023, the Dutch real estate transfer tax is 10.4% (8% since 1 January 2021, previously 6%). For the other costs (e.g. notary fees) Retail Estates charges between 0.08% and 1% extra.
Any gains or losses resulting from fluctuations in the fair value of an investment property are recognised in the income statement in the period in which they arise and assigned to the reserves for the balance of fluctuations in the fair value of real estate properties during the appropriation of profits.
Expenditure for works on investment properties
The expenditure for works on investment properties is charged to the operating property result if the expenditure does not have a positive effect on the expected future economic benefits, and is capitalised if it substantially increases the expected economic benefits it brings to the entity. There are two major types of expenditure:
a)costs of maintenance and repairs to roof coverings and car parks: if this involves a complete roof renovation (including new insulation in line with the company's sustainability strategy), these costs are capitalised and therefore added to the fair value of the investment property. Pure maintenance and repair work is charged to the operating result;
b)renewal of windows: investments made as part of the company's sustainability strategy (which significantly improve the existing level of comfort) are capitalised and added to the fair value of the investment property;
a)the costs of major transformation and renovation works: transformations are occasional projects that add an additional function to the building or considerably improve the existing comfort. These costs relate to materials, fees, contracting works and the like. Internal management and supervisory costs are not capitalised. As soon as they have commenced, such works are included in the assessed value of the building in question (initially on a provisional basis and then permanently following a visit by the real estate expert). Any works that remain to be done are deducted from the valuation. Once these works have been completed, the costs are capitalised and hence added to the fair value of the investment properties.
Disposal of investment properties
The gains or losses realised from the sale of an investment property are classified as \u201cResult from sales of investment properties\u201d in the income statement and are allocated to the result carried forward upon the appropriation of results. The commissions paid for sales and the liabilities resulting from transactions are deducted from the selling price in order to determine the gain or loss realised.
Non-current assets under construction
Under the adjusted IAS 40 standard, non-current assets under construction are included in the investment properties. If purchased, they are valued at the acquisition value, including incidental costs and non-deductible VAT.
If the Group believes that the fair value of the investment properties under development cannot be determined in a reliable manner but assumes it will be possible to determine the fair value once the properties have been contracted, licensed and rented, the investment properties under development will be registered at
cost price until the fair value can be determined (when they have been contracted, licensed and rented or until construction is completed (whichever happens first)) in accordance with IAS 40.53. This fair value is based on the valuation by the real estate expert after deducting the work that remains to be performed.
A non-current asset under construction can relate to a plot of land, a building to be demolished or an existing building that needs to be given a new purpose, requiring considerable renovation work to realise the desired purpose.
Other tangible non-current assets
Tangible non-current assets other than land and buildings the use of which is limited in time are valued at acquisition cost and then depreciated over their expected useful life using the straight-line method.
In the financial year of the investment, depreciation is recorded in proportion to the number of months that the asset was in use.
The following annual depreciation and amortisation percentages apply:
Facilities, machinery and equipment | 6,66 - 20% |
Furniture | 3,03 - 20% |
Vehicles | 20 - 33,33% |
IT equipment | 20 - 33,33% |
Standard software | 33,33% |
Customised software | 6,66 - 33,33% |
Own use properties | 3,03% |
Technical equipment | 6,66% |
Lease agreement
In the limited cases where Retail Estates is the lessee in lease agreements (and these agreements are not among the exceptions referred to in IFRS 16), Retail Estates, in its capacity as lessee, will recognize a user right and corresponding liability in the consolidated annual accounts. Subsequently all user rights qualifying as real estate investments are valued at fair value in accordance with the valuation rules described in the section relating to real estate investments. The minimum lease payments are recorded partly as financing costs and partly as repayment of the outstanding liability. The financing cost is recognised in the item \u201cChanges in fair value of financial assets and liabilities\u201d.
If there are indications that an asset may have suffered an impairment loss, the book value is compared with the realisable value.
If the book value is higher than the realisable value, an impairment loss is recognised.
When other tangible non-current assets are sold or retired, their acquisition value and any related depreciations cease to be recognised in the balance sheet and the realised gains or losses are recognised in the income statement.
Trade receivables and other non-current assets
Trade receivables and other non-current assets are valued at fair value at initial recognition and are subsequently valued at amortised cost on the basis of the effective interest rate method. A write-down is recorded if uncertainty exists concerning the collectability of the receivable at maturity.
Real estate certificates
Valuation
1.General principle
If the holder of the certificates does not have a material interest (more than 75%) in a real estate certificate, the certificates shall be booked on the closing date at the weighted average quoted price during the preceding 30 days and classified as \u201cnon-current financial assets\u201d.
The aforementioned rule does not apply if, on the basis of publicly available information and the issue conditions for the real estate certificate, a net asset value is noted that is substantially below the stock market price. The value is then limited to the net asset value.
2.Ownership of material interest (more than 75%) in certificates issued (as of 31\u00a0March\u00a02025 only applicable to the \u201cDistriLand\u201d real estate certificates)
The quoted price of these real estate certificates as listed on the Euronext \u2013 Second Market cannot be considered as a reliable reference given the limited liquidity of this real estate certificate. Retail Estates nv\u2019s policy is to revalue its real estate certificates on every closing date in view of:
a)the fair value of the immovable properties owned by the issuer by analogy with the valuation of the company\u2019s own real properties. This is done on the basis of a periodic valuation by a real estate expert hired jointly by Retail Estates nv and Immobili\u00e8re Distri-Land nv. Where one or more buildings are sold by the real estate certificate issuer, the sales price shall be used as valuation until the distribution of the sale\u2019s proceeds;
b)the contractual rights of the holder of the real estate certificate in compliance with the prospectus that was published at the time of issue of the real estate certificate.
Retail Estates nv only invests in certificates issued for the financing of out-of-town retail real estate. The real estate owned by the issuer is the type of out-of-town retail real estate in which Retail Estates nv aims to invest. Although Retail Estates nv is not the legal owner of this real estate, it considers itself to be the economic beneficiary in proportion to its contractual rights in ownership. In addition, an investment in real estate certificates is regarded as an investment in real estate pursuant to Article 2, sub. 5\u00b0, x, of the BE-REIT Act.
Taking these considerations into account, the certificates are classified as real estate investments at their acquisition value, including additional expenses. Any gains or losses resulting from fluctuations in the fair value of an investment property are recognised in the income statement in the period in which they arise and assigned to the unavailable reserves at the time of the appropriation of profits. On 31\u00a0March\u00a02025, the value of the investment properties related to the Distri-Land certificates amounts to \u20ac 19.45 million (\u20ac 17.35 million on 31\u00a0March\u00a02024) compared to a total portfolio of Retail Estates of \u20ac 2,069.54 million.
Processing of coupons\u00a0
1.Processing of current operating result
As a holder of real estate certificates, Retail Estates nv has a contractual right, in proportion to the number of real estate certificates in its possession, to a share of the operating result realised by the issuer. This result is calculated by deducting the operating and maintenance expenses from the total rental income collected. The entire decrease or increase in value is recognised by re-estimating the value of the real estate certificate. As a result, no part of the coupon relating to the operating result should be regarded as compensation for any reduction in value of the issuer\u2019s buildings. The entire coupon is therefore treated as net rental income and is classified as turnover.
2.Processing of the liquidation balance in case of sale of real estate
Whenever a particular property in the issuer\u2019s portfolio is sold, the following applies:
the net proceeds, after retention of any withholding tax liability, are only recognised as realised capital gains in Retail Estates nv\u2019s accounts equal to the amount of the difference between the book value of the real estate certificate on the closing date increased by the net liquidation coupon on the one hand and the book value on the previous closing date on the other. The book value of the real estate certificate is calculated at each closing date by performing a valuation of the certificate holder\u2019s contractual rights as they appear in the issue prospectus based on the fair value of the immovable property owned by the issuer as validated by the real estate expert of Retail Estates nv on the closing date. Any gains or losses resulting from fluctuations in the fair value of an investment property are recognised in the income statement and incorporated in the period in which they arise and are assigned to the reserves available for distribution at the time of the appropriation of profits.
Non-current assets or groups of assets held for sale
These assets concern real estate for which the book value will primarily be realised by the sale of the assets and not by further letting. Like the investment properties (see above), these assets are recognised at fair value, which is equal to investment value less transaction fees.
A property is recorded as an asset held for sale if a declaration of intent to sell has been signed.
Current assets
The receivables payable within one year are recognised at nominal value less write-downs for doubtful or bad debts. Bank deposits, sight or term deposits, are valued at amortised cost. Any supplementary costs are charged directly to the income statement. Listed securities are valued at their quoted price.
Shareholders\u2019 equity
The capital includes the funds obtained when the company was incorporated and those received following mergers or capital increases. Any third-party costs directly attributable to the issuance of new shares shall be deducted from shareholders' equity. When share capital recognised as equity is repurchased by Retail Estates nv, the paid amount, including any directly attributable costs, shall be recognised as a change in shareholders\u2019 equity. Purchased own shares are presented as a decrease in the total shareholders\u2019 equity.
Dividends are included in the result carried forward until they been approved by the shareholders' meeting.
Liabilities
A provision is taken if:
\u2013Retail Estates nv has an existing \u2013 legally enforceable or actual \u2013 commitment resulting from an event in the past;
\u2013an outflow of funds will probably be required to settle the commitment; and
\u2013the amount of the commitment can be estimated reliably.
Trade debts are presented at nominal value on the balance sheet date. Interest-bearing borrowings are initially recognised at cost price less transaction costs. The interest-bearing borrowings are subsequently valued on the basis of the effective interest rate method,
recognising each difference between the initial book value and the redemption value as an interest cost in the income statement over the term of the loan.
Benefits for the staff and executive officers
Retail Estates nv provides a defined contribution pension scheme for its employees and for the members of the management committee. For the members of the management committee this scheme has been entrusted to an insurance company that is independent of the company.
The scheme for employees is largely handled via the fund of the joint committee. It is therefore a sector scheme, and it is the organiser of this pension scheme (Fonds Tweede Pijler PC 323) who is to assume the legal responsibilities and obligations.
Contributions paid during the financial year are recognised as expenses.
Property result
The net rental result includes the rent, operating lease income and other revenues related to the aforementioned sources of income less rent-related expenses, i.e. the rent payable on leased assets, impairment losses on receivables and write-backs of impairment losses on receivables.
The recovery of property expenses includes the revenue obtained from charging costs for major repairs and maintenance.
The charges and taxes payable by tenants on let properties and the recovery of these expenses refer to costs that, under law or custom, are at the tenant\u2019s expense. The owner will either charge or not charge these costs to the tenant depending on the contractual arrangements made with the tenant.
Income is valued at fair value of the compensation received and is recognised in the income statement in the period to which it refers using the straight-line method.
Property expenses
The property expenses are valued at the fair value of the compensation that has been paid or is due and are recognised in the income statement in the period to which they refer using the straight-line method.
The technical costs include, among other things, structural and occasional maintenance costs (including expenses made within the context of the sustainability strategy) and losses resulting from incidents partially covered by the insurance companies. The commercial costs include brokers\u2019 commission fees. The property management costs mainly consist of the relevant personnel costs, the operating costs of the company\u2019s registered office and fees paid to third parties.
Management fees received from tenants or third parties which partially cover the management costs of the properties are deducted.
Corporate operating costs and other current operating
income and expenses
The corporate operating costs include the fixed operating costs of the company, which operates as a legal entity that is listed on the stock market and benefits from the BE-REIT status. These costs are incurred in order to obtain transparent financial information, to be economically comparable with other types of investments and to offer investors the opportunity to participate directly in a diversified real estate investment in a liquid manner. Part of the costs incurred in the context of Retail Estates nv\u2019s growth strategy are also included in this category.
Financial result
The financial result consists of the borrowing costs and additional funding costs, such as the negative variations in hedging instruments where these are not effective within the meaning of IAS 39, less income from investments.
Corporate income tax
Corporate income tax comprises the current tax burden on the profit or loss for the year. Corporate income tax is recognised directly in the income statement, except when relating to items recognised directly in shareholders\u2019 equity. In that case the tax is also recognised directly in shareholders\u2019 equity. The current tax burden includes the expected tax payable on the taxable income for the year as well as any adjustment to the tax payable for previous years.
Exit tax
Exit tax is the corporate income tax on capital gains arising from the merger of a BE-REIT with a company that is not a BE-REIT. When this company first enters the consolidation scope of the Group, a provision for exit tax liabilities is recorded.
Statement of conformity
The consolidated annual accounts are drawn up in accordance with accounting standards which are consistent with the International Financial Reporting Standards as implemented by the BE-REIT legislation.
Euro (\u20ac) is used as functional and presentation currency, and is rounded off to the nearest thousand.
Application of IFRS 3 Business Combinations
Corporate transactions of the past financial years were not processed as business combinations as defined by IFRS 3 based on the finding that this standard was not applicable given the nature and the scale of the acquired companies. The companies in question owned a limited number of properties. Their employees have not been retained and their activities have been discontinued. They were not intended to be kept on as independent businesses. The companies are fully consolidated. Please refer to note 41 for more information on this matter.
Endorsement status of the new standards as at 31\u00a0December\u00a02024 (EFRAG status report 23\u00a0December\u00a02024)
The following new standard and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2023 and have been endorsed by the European Union:
\u2013Amendments to IAS 1 \u2018Presentation of Financial Statements: Classification of Liabilities as current or non-current\u2019 (effective 01/01/2024), affect only the presentation of liabilities in the statement of financial position \u2014 not the amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose about those items. They:
\u2022Clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the \"right\" to defer settlement by at least twelve months and make explicit that only rights in place \"at the end of the reporting period\" should affect the classification of a liability;
\u2022Clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.
\u2022Clarify how conditions with which an entity must comply within 12 months after the reporting period, such as covenants, affect the corresponding liability\u2019s classification.
\u2013Amendments to IAS 7 \u2018Statement of Cash Flows\u2019 and IFRS 7 \u2018Financial Instruments: Disclosures\u2019: Supplier Finance Arrangements. The amendment describes the characteristics for which reporters will have to provide additional disclosures regarding the impact of supplier finance arrangements on liabilities, cash flows and exposure to liquidity risk.
\u2013Amendments to IFRS 16 \u2018Leases\u2019: Lease Liability in a Sale and Leaseback (effective 1 January 2024). The amendments explain how an entity accounts for a sale and leaseback after the date of the transaction, specifically where some or all the lease payments are variable lease payments that do not depend on an index or rate. They state that, in subsequently measuring the lease liability, the seller-lessee determines \u2018lease payments\u2019 and \u2018revised lease payments\u2019 in a way that does not result in the seller-lessee recognising any amount of the gain or loss that relates to the right of use it retains. Any gains and losses relating to the full or partial termination of a lease continue to be recognised when they occur as these relate to the right of use terminated and not the right of use retained.
The following new standards and amendments have been issued, are mandatory for the first time for the financial year beginning 1 January 2024 but have not been endorsed by the European Union:
\u2013None
The following amendments have been issued, but are not mandatory for the first time for the financial year beginning 1 January 2024 and have been endorsed by the European Union:
\u2013Amendments to IAS 21 \u2018The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability\u2019 (effective 1 January 2025). IAS 21 previously did not cover how to determine exchange rates in case there is long-term lack of exchangeability and the spot rate to be applied by the company is not observable. The narrow scope amendments add specific requirements on:
\u2022Determining when a currency is exchangeable into another and when it is not;
\u2022Determining the exchange rate to apply in case a currency is not exchangeable;
\u2022Additional disclosures to provide when a currency is not exchangeable.
The following standards and amendments have been issued, but are not mandatory for the first time for the financial year beginning 1 January 2024 and have not been endorsed by the European Union:
\u2013Amendments to IFRS 9 and to IFRS 7: the Classification and Measurement of Financial Instruments (effective on 1 January 2026). On 30 May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to:
\u2022Clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
\u2022Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
\u2022Add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement environment, social and governance (ESG) targets); and
\u2022Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).
\u2013Amendments to IFRS 9 and to IFRS 7: Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7 (effective on 1 January 2026). On 18 December 2024, the IASB issued amendments to IFRS 9 and IFRS 7:
\u2022clarify the application of the \u2018own-use\u2019 requirements;
\u2022permit hedge accounting if these contracts are used as hedging instruments; and
\u2022new disclosure requirements to enable investors to understand the effect of these contracts on a company\u2019s financial performance and cash flows.
\u2013IFRS 18 Presentation and Disclosure in Financial Statements (effective on 1 January 2027). The IASB has issued IFRS 18, the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:
\u2022the structure of the statement of profit or loss;
\u2022required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity\u2019s financial statements (that is, management-defined performance measures); and
\u2022enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its \u2018operating profit or loss\u2019.
IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information. The changes in presentation and disclosure required by IFRS 18 might require system and process changes.
\u2013IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective on 1 January 2027). The International Accounting Standard Board (IASB) has issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 \u2018Subsidiaries without Public Accountability: Disclosures\u2019 permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries\u2019 financial statements while maintaining the usefulness of the information for users of their financial statements.
\u2013Annual improvements Volume 11 (effective 1 January 2026). The amended Standards are:
\u2022IFRS 1 First-time Adoption of International Financial Reporting Standards;
\u2022IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
\u2022IFRS 9 Financial Instruments;
\u2022IFRS 10 Consolidated Financial Statements; and
\u2022IAS 7 Statement of Cash Flows.
The following standard is mandatory since the financial year beginning 1 January 2016 (however not yet subjected to EU endorsement). The European Commission has decided not to launch the endorsement process of this interim standard but to wait for the final standard:
Endorsement status of the new standards as at 31\u00a0December\u00a02024 (EFRAG status report 23\u00a0December\u00a02024)
The following new standard and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2023 and have been endorsed by the European Union:
\u2013Amendments to IAS 1 \u2018Presentation of Financial Statements: Classification of Liabilities as current or non-current\u2019 (effective 01/01/2024), affect only the presentation of liabilities in the statement of financial position \u2014 not the amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose about those items. They:
\u2022Clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the \"right\" to defer settlement by at least twelve months and make explicit that only rights in place \"at the end of the reporting period\" should affect the classification of a liability;
\u2022Clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.
\u2022Clarify how conditions with which an entity must comply within 12 months after the reporting period, such as covenants, affect the corresponding liability\u2019s classification.
\u2013Amendments to IAS 7 \u2018Statement of Cash Flows\u2019 and IFRS 7 \u2018Financial Instruments: Disclosures\u2019: Supplier Finance Arrangements. The amendment describes the characteristics for which reporters will have to provide additional disclosures regarding the impact of supplier finance arrangements on liabilities, cash flows and exposure to liquidity risk.
\u2013Amendments to IFRS 16 \u2018Leases\u2019: Lease Liability in a Sale and Leaseback (effective 1 January 2024). The amendments explain how an entity accounts for a sale and leaseback after the date of the transaction, specifically where some or all the lease payments are variable lease payments that do not depend on an index or rate. They state that, in subsequently measuring the lease liability, the seller-lessee determines \u2018lease payments\u2019 and \u2018revised lease payments\u2019 in a way that does not result in the seller-lessee recognising any amount of the gain or loss that relates to the right of use it retains. Any gains and losses relating to the full or partial termination of a lease continue to be recognised when they occur as these relate to the right of use terminated and not the right of use retained.
The following new standards and amendments have been issued, are mandatory for the first time for the financial year beginning 1 January 2024 but have not been endorsed by the European Union:
\u2013None
The following amendments have been issued, but are not mandatory for the first time for the financial year beginning 1 January 2024 and have been endorsed by the European Union:
\u2013Amendments to IAS 21 \u2018The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability\u2019 (effective 1 January 2025). IAS 21 previously did not cover how to determine exchange rates in case there is long-term lack of exchangeability and the spot rate to be applied by the company is not observable. The narrow scope amendments add specific requirements on:
\u2022Determining when a currency is exchangeable into another and when it is not;
\u2022Determining the exchange rate to apply in case a currency is not exchangeable;
\u2022Additional disclosures to provide when a currency is not exchangeable.
The following standards and amendments have been issued, but are not mandatory for the first time for the financial year beginning 1 January 2024 and have not been endorsed by the European Union:
\u2013Amendments to IFRS 9 and to IFRS 7: the Classification and Measurement of Financial Instruments (effective on 1 January 2026). On 30 May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to:
\u2022Clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
\u2022Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
\u2022Add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement environment, social and governance (ESG) targets); and
\u2022Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).
\u2013Amendments to IFRS 9 and to IFRS 7: Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7 (effective on 1 January 2026). On 18 December 2024, the IASB issued amendments to IFRS 9 and IFRS 7:
\u2022clarify the application of the \u2018own-use\u2019 requirements;
\u2022permit hedge accounting if these contracts are used as hedging instruments; and
\u2022new disclosure requirements to enable investors to understand the effect of these contracts on a company\u2019s financial performance and cash flows.
\u2013IFRS 18 Presentation and Disclosure in Financial Statements (effective on 1 January 2027). The IASB has issued IFRS 18, the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:
\u2022the structure of the statement of profit or loss;
\u2022required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity\u2019s financial statements (that is, management-defined performance measures); and
\u2022enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its \u2018operating profit or loss\u2019.
IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information. The changes in presentation and disclosure required by IFRS 18 might require system and process changes.
\u2013IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective on 1 January 2027). The International Accounting Standard Board (IASB) has issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 \u2018Subsidiaries without Public Accountability: Disclosures\u2019 permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries\u2019 financial statements while maintaining the usefulness of the information for users of their financial statements.
\u2013Annual improvements Volume 11 (effective 1 January 2026). The amended Standards are:
\u2022IFRS 1 First-time Adoption of International Financial Reporting Standards;
\u2022IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
\u2022IFRS 9 Financial Instruments;
\u2022IFRS 10 Consolidated Financial Statements; and
\u2022IAS 7 Statement of Cash Flows.
The following standard is mandatory since the financial year beginning 1 January 2016 (however not yet subjected to EU endorsement). The European Commission has decided not to launch the endorsement process of this interim standard but to wait for the final standard:
Consolidation principles
Consolidation principles
Subsidiaries
Subsidiaries are legal entities controlled by the company. The companies controlled by the Group are consolidated through the application of the full consolidation method.
Full consolidation consists in incorporating all the assets and liabilities of the consolidated companies as well as the costs and revenues, carrying out the necessary eliminations. Non-controlling interests are the interests in subsidiaries that are not held by the Group, neither directly nor indirectly. On 31\u00a0March\u00a02024, only non-controlling interests were recognised for the company Alex Invest NV. The real estate owned by Alex Invest is recorded at 100% in the cluster report relating to the portfolio (like in the balance sheet).
\u2018Control\u2019 is defined as Retail Estates nv's ability to directly or indirectly determine the financial and operational policy of the subsidiary, to benefit from the variable cash flows and the results of this subsidiary and to influence its variable cash flows by controlling the subsidiary.
Joint ventures and associated companies
Joint ventures are companies over which the Group exercised joint control, as determined by contract. This joint control applies when the strategic, financial and operational decisions relating to the activities require the unanimous consent of all parties sharing control (the participants in the joint venture).
Associated companies are companies on which the Group is found to have a significant influence.
As defined in IAS 28, the result and the balance sheet impact of the associated company Veilinghof \u2019t Sas (in which Retail Estates has a 26.19% participating interest) are processed in accordance with the change in equity method. Participating interests in companies to which the change in equity method is applied are recorded in the consolidated balance sheet under a separate item of the financial fixed assets (\u201cCompanies to which the change in equity method is applied\u201d).
If the change in equity method is applied to a participating interest, this interest is recorded in the consolidated balance sheet for the amount corresponding to the part of the shareholders\u2019 equity of the company concerned, including the result of the financial year, that reflects this participating interest.
The result of the associated companies and joint ventures is recognised in the result under \u201cshare in the result of associated companies and joint ventures\u201d.
The real estate relating to Veilinghof \u2019t Sas is not included in the cluster report relating to the portfolio.
List of consolidated companies and changes in the circle of consolidation
As per 31\u00a0March\u00a02025, the following subsidiaries are part of the consolidation perimeter of Retail Estates nv:
Subsidiary | External financial debts5 (in \u20ac 000) | Investment properties5 (in \u20ac 000) | Rental income6 (in \u20ac 000) | Participation percentage |
Retail Warehousing Invest | 51,363 | 3,173 | 100.00% | |
Inducom | 92,464 | 0 | 100.00% | |
Finsbury Properties | 0 | 17 | 100.00% | |
Regreen | 8,279 | 548 | 100.00% | |
Veilinghof 't Sas | 0 | 26.19% | ||
Retail Estates Nederland | 54,268 | 5,608 | 100.00% | |
Venlo Invest | 34,057 | 2,540 | 100.00% | |
Cruquius Invest | 80,701 | 5,914 | 100.00% | |
Spijkenisse Invest | 10,250 | 46,871 | 3,227 | 100.00% |
Heerlen I Invest | 68,285 | 4,910 | 100.00% | |
Heerlen II Invest | 59,562 | 4,441 | 100.00% | |
Retail Estates Middelburg Invest | 33,339 | 2,815 | 100.00% | |
Breda I Invest | 41,631 | 3,240 | 100.00% | |
Breda II Invest | 25,735 | 2,052 | 100.00% | |
Naaldwijk Invest | 21,153 | 1,976 | 100.00% | |
Alex Invest | 37,307 | 3,475 | 50.00% | |
Zaandam Invest | 36,453 | 2,081 | 100.00% | |
Osbroek Invest | 74,930 | 5,593 | 100.00% | |
Aquarius Invest | 41,284 | 2,502 | 100.00% | |
Waterman Invest | 39,214 | 2,730 | 100.00% | |
SVK | 3,268 | 221 | 100.00% | |
5 Value at closing date of the consolidated figures (31.03.2025) including non-current assets under construction (IAS 40). | ||||
6 For the period the companies are part of the Group in the current financial year. |
Aquarius Invest nv and Waterman Invest nv
On 13 June 2023 the subsidiaries\u00a0 \u201cAquarius Invest N.V.\u201d and \"Waterman Invest N.V.\" were incorporated within the framework of the acquisition of retail park Alexandrium Megastores in Rotterdam (the Netherlands). The investment in the acquisition of the retail park amounts to \u20ac 81.5 million (including transfer tax, due diligence and transaction costs).
Alexandrium Megastores is part of the largest out-of-town retail area in the Randstad region. The structural connection between Woonmall Alexandrium, the regional Shopping Center Alexandrium (Alexandrium I \u2013 owned by Kl\u00e9pierre) and the retail park Alexandrium II Megastores creates a very complementary mix and a retail offer that is exceptional for the Netherlands, with a total of 200 retail units over a surface area of 110,000 m\u00b2. All shops are open 7 days a week and attract 15 million visitors each year.
Inducom nv
The statutory financial statements of Inducom have been prepared for the first time in accordance with accounting standards consistent with International Financial Reporting Standards as implemented by the FIIS legislation. This follows the registration of the company as a FIIS from 14 November 2023 on the list of specialized real estate investment funds in application of the Royal Decree of 9 November 2016 relating to specialized real estate investment funds.
The company has applied all IFRS standards and interpretations applicable on the balance sheet date of 31 December 2023, for the figures as of the date of transition to IFRS (i.e. 1 January 2022).
On 29 March 2024, Retail Estates, as the sole shareholder of RWI, decided on the partial demerger of RWI, with the result that part of RWI's real estate portfolio was transferred to Inducom N.V. The acquired value of Retail Warehousing Invest N.V. includes a significant number of bare property rights (\u201ctr\u00e9fonds\u201d) whose ground lease is held by Retail Estates N.V. with a current market value of approximately \u20ac 78.19 million.
Retail Warehousing Invest nv
Retail Estates has held a participating interest in Retail Warehousing Invest nv, an institutional Belgian real estate investment trust (BE-REIT) (\u201cRWI\u201d), since 2012. Originally, Retail Estates had a co-shareholder in RWI, holding a 37.5% minority interest. In 2016, this minority shareholder \u201cswapped\u201d the share participation interest in RWI for a share participation in Retail Estates by means of a contribution in kind within the context of the authorised capital.\u00a0 Retail Estates has been the sole shareholder of RWI ever since.
On 29 March 2024, Retail Estates, being the sole shareholder of RWI, decided to proceed to a partial demerger of RWI. As a consequence, part of the real estate portfolio of RWI was transferred to Inducom nv, a specialised real estate investment fund under Belgian law and also a 100% subsidiary of Retail Estates.
SVK nv
During the past fiscal year, control was acquired of the company S.V.K. N.V. The acquisition provides for the expansion of the site in Sint-Joris-Winge.
Other subsidiaries
All subsidiaries are fully consolidated, with the exception of Veilinghof \u2019t Sas, to which the change in equity method is applied (please refer to \u201cSignificant accounting policies\u201d under the heading \u201cConsolidation principles\u201d for more information about this consolidation method). Retail Estates has a 26.19% participating interest in Veilinghof \u2018t Sas. Retail Estates funded the acquisition of this participating interest by an amount of \u20ac 5 million.
Subsidiaries
Subsidiaries are legal entities controlled by the company. The companies controlled by the Group are consolidated through the application of the full consolidation method.
Full consolidation consists in incorporating all the assets and liabilities of the consolidated companies as well as the costs and revenues, carrying out the necessary eliminations. Non-controlling interests are the interests in subsidiaries that are not held by the Group, neither directly nor indirectly. On 31\u00a0March\u00a02024, only non-controlling interests were recognised for the company Alex Invest NV. The real estate owned by Alex Invest is recorded at 100% in the cluster report relating to the portfolio (like in the balance sheet).
\u2018Control\u2019 is defined as Retail Estates nv's ability to directly or indirectly determine the financial and operational policy of the subsidiary, to benefit from the variable cash flows and the results of this subsidiary and to influence its variable cash flows by controlling the subsidiary.
Joint ventures and associated companies
Joint ventures are companies over which the Group exercised joint control, as determined by contract. This joint control applies when the strategic, financial and operational decisions relating to the activities require the unanimous consent of all parties sharing control (the participants in the joint venture).
Associated companies are companies on which the Group is found to have a significant influence.
As defined in IAS 28, the result and the balance sheet impact of the associated company Veilinghof \u2019t Sas (in which Retail Estates has a 26.19% participating interest) are processed in accordance with the change in equity method. Participating interests in companies to which the change in equity method is applied are recorded in the consolidated balance sheet under a separate item of the financial fixed assets (\u201cCompanies to which the change in equity method is applied\u201d).
If the change in equity method is applied to a participating interest, this interest is recorded in the consolidated balance sheet for the amount corresponding to the part of the shareholders\u2019 equity of the company concerned, including the result of the financial year, that reflects this participating interest.
The result of the associated companies and joint ventures is recognised in the result under \u201cshare in the result of associated companies and joint ventures\u201d.
The real estate relating to Veilinghof \u2019t Sas is not included in the cluster report relating to the portfolio.
Joint ventures and associated companies
Joint ventures are companies over which the Group exercised joint control, as determined by contract. This joint control applies when the strategic, financial and operational decisions relating to the activities require the unanimous consent of all parties sharing control (the participants in the joint venture).
Associated companies are companies on which the Group is found to have a significant influence.
As defined in IAS 28, the result and the balance sheet impact of the associated company Veilinghof \u2019t Sas (in which Retail Estates has a 26.19% participating interest) are processed in accordance with the change in equity method. Participating interests in companies to which the change in equity method is applied are recorded in the consolidated balance sheet under a separate item of the financial fixed assets (\u201cCompanies to which the change in equity method is applied\u201d).
If the change in equity method is applied to a participating interest, this interest is recorded in the consolidated balance sheet for the amount corresponding to the part of the shareholders\u2019 equity of the company concerned, including the result of the financial year, that reflects this participating interest.
The result of the associated companies and joint ventures is recognised in the result under \u201cshare in the result of associated companies and joint ventures\u201d.
The real estate relating to Veilinghof \u2019t Sas is not included in the cluster report relating to the portfolio.
Joint ventures and associated companies
Joint ventures are companies over which the Group exercised joint control, as determined by contract. This joint control applies when the strategic, financial and operational decisions relating to the activities require the unanimous consent of all parties sharing control (the participants in the joint venture).
Associated companies are companies on which the Group is found to have a significant influence.
As defined in IAS 28, the result and the balance sheet impact of the associated company Veilinghof \u2019t Sas (in which Retail Estates has a 26.19% participating interest) are processed in accordance with the change in equity method. Participating interests in companies to which the change in equity method is applied are recorded in the consolidated balance sheet under a separate item of the financial fixed assets (\u201cCompanies to which the change in equity method is applied\u201d).
If the change in equity method is applied to a participating interest, this interest is recorded in the consolidated balance sheet for the amount corresponding to the part of the shareholders\u2019 equity of the company concerned, including the result of the financial year, that reflects this participating interest.
The result of the associated companies and joint ventures is recognised in the result under \u201cshare in the result of associated companies and joint ventures\u201d.
The real estate relating to Veilinghof \u2019t Sas is not included in the cluster report relating to the portfolio.
Joint ventures and associated companies
Joint ventures are companies over which the Group exercised joint control, as determined by contract. This joint control applies when the strategic, financial and operational decisions relating to the activities require the unanimous consent of all parties sharing control (the participants in the joint venture).
Associated companies are companies on which the Group is found to have a significant influence.
As defined in IAS 28, the result and the balance sheet impact of the associated company Veilinghof \u2019t Sas (in which Retail Estates has a 26.19% participating interest) are processed in accordance with the change in equity method. Participating interests in companies to which the change in equity method is applied are recorded in the consolidated balance sheet under a separate item of the financial fixed assets (\u201cCompanies to which the change in equity method is applied\u201d).
If the change in equity method is applied to a participating interest, this interest is recorded in the consolidated balance sheet for the amount corresponding to the part of the shareholders\u2019 equity of the company concerned, including the result of the financial year, that reflects this participating interest.
The result of the associated companies and joint ventures is recognised in the result under \u201cshare in the result of associated companies and joint ventures\u201d.
The real estate relating to Veilinghof \u2019t Sas is not included in the cluster report relating to the portfolio.
Joint ventures and associated companies
Joint ventures are companies over which the Group exercised joint control, as determined by contract. This joint control applies when the strategic, financial and operational decisions relating to the activities require the unanimous consent of all parties sharing control (the participants in the joint venture).
Associated companies are companies on which the Group is found to have a significant influence.
As defined in IAS 28, the result and the balance sheet impact of the associated company Veilinghof \u2019t Sas (in which Retail Estates has a 26.19% participating interest) are processed in accordance with the change in equity method. Participating interests in companies to which the change in equity method is applied are recorded in the consolidated balance sheet under a separate item of the financial fixed assets (\u201cCompanies to which the change in equity method is applied\u201d).
If the change in equity method is applied to a participating interest, this interest is recorded in the consolidated balance sheet for the amount corresponding to the part of the shareholders\u2019 equity of the company concerned, including the result of the financial year, that reflects this participating interest.
The result of the associated companies and joint ventures is recognised in the result under \u201cshare in the result of associated companies and joint ventures\u201d.
The real estate relating to Veilinghof \u2019t Sas is not included in the cluster report relating to the portfolio.
Foreign currency conversion
Foreign currency transactions are booked by applying the exchange rate valid on the transaction date. Monetary assets and liabilities in foreign currencies are valued by applying the closing rate on the balance sheet date. Exchange rate differences ensuing from foreign currency transactions and the conversion of monetary assets and liabilities into foreign currencies are booked in the income statement in the period in which they arise. Non-monetary assets and liabilities in foreign currencies are converted at the exchange rate applicable on the transaction date.
Financial derivatives
Fair value hedge accounting
The Group uses financial derivatives (interest rate swaps) to hedge interest rate risks arising from operational, financial and investment activities. Derivative financial products are initially recognised at their fair value.
After the initial recognition, financial derivatives are valued in the annual accounts at their fair value.
Gains or losses resulting from changes in the fair value of the financial derivatives are immediately recognised in the income statement unless a derivative meets the conditions for cash flow hedge accounting.
The fair value of the financial interest rate derivatives is the amount that the company expects to receive or pay if the financial interest rate derivative is terminated as of the balance sheet date, taking into account the prevailing interest rate.
Cash flow hedge accounting
If a financial derivative can be documented as an effective hedge against any cash flow fluctuations, attributable to a risk linked to an asset or liability, or a highly probable future transaction, the part of the result ensuing from the change in value of the financial interest rate derivative that has been recognised as an effective hedge shall be posted directly to equity under \u201cChanges in the fair value of financial assets and liabilities\u201d. The ineffective part of the financial interest rate derivative shall be recognised in the income statement.
Financial instruments at fair value
Fair value of financial assets and liabilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Fair value of financial derivatives - Liabilities | 0 | |
Fair value of financial derivatives - Assets | 24,597 | 38,275 |
Total fair value of financial assets and liabilities | 24,597 | 38,275 |
The Group makes use of financial derivatives (interest rate swaps, floors and caps) to hedge interest rate risks arising from operational, financial and investment activities. Financial derivatives are initially recognised at cost and revalued to their fair value on the next reporting date. The variation in instruments amounts to \u20ac\u00a0-13.67\u00a0million in the current financial year. The derivatives currently used by Retail Estates nv qualify as cash flow hedges only to a limited extent. Changes in the fair value of the derivatives that do not qualify as cash flow hedges are
recorded directly in the income statement. An amount of \u20ac -13.00 million was recorded in the income statement with respect to the financial instruments. Swaps qualifying as cash flow hedges are booked directly as shareholders\u2019 equity and are not included in the income statement. This financial year, \u20ac\u00a0-0.66 million was recorded directly in equity. The interest rate swaps are level 2 instruments.
Overview of financial instruments:
Other non-current liabilities
Starting date | Ending date | Interest rate | Variable interest rate | Notional amount (in \u20ac 000) | Type of derivative | Hedge accounting | |
1 | July 2016 | April 2026 | 1.26% | Euribor 3 M + | 26,000 | IRS | YES |
2 | March 2018 | March 2026 | 1.10% | Euribor 3 M + | 20,000 | IRS | NO |
3 | December 2018 | December 2026 | 1.06% | Euribor 3 M + | 25,000 | IRS | NO |
4 | January 2018 | January 2026 | 0.74% | Euribor 3 M + | 25,000 | IRS | NO |
5 | July 2016 | April 2026 | -2.25% | Euribor 3 M + | 26,000 | FLOOR | YES |
6 | March 2018 | March 2026 | 0.00% | Euribor 3 M + | 20,000 | FLOOR | NO |
7 | December 2018 | December 2026 | 0.00% | Euribor 3 M + | 25,000 | FLOOR | NO |
8 | June 2023 | June 2026 | 0.68% | Euribor 3 M + | 50,000 | IRS | NO |
9 | December 2024 | December 2028 | 0.70% | Euribor 3 M + | 25,000 | IRS | NO |
10 | December 2024 | December 2028 | 0.72% | Euribor 3 M + | 25,000 | IRS | NO |
11 | March 2024 | March 2029 | 0.40% | Euribor 3 M + | 25,000 | IRS | NO |
12 | March 2024 | March 2029 | 0.37% | Euribor 3 M + | 25,000 | IRS | NO |
13 | March 2024 | March 2029 | 0.28% | Euribor 3 M + | 25,000 | IRS | NO |
14 | June 2024 | March 2029 | 0.03% | Euribor 3 M + | 25,000 | IRS | NO |
15 | March 2024 | June 2029 | 0.21% | Euribor 3 M + | 50,000 | IRS | NO |
16 | December 2026 | December 2029 | -0.06% | Euribor 3 M + | 25,000 | IRS | NO |
17 | June 2021 | June 2027 | 0.85% | Euribor 3 M + | 60,000 | IRS | NO |
18 | June 2022 | June 2026 | 0.63% | Euribor 3 M + | 25,000 | IRS | NO |
19 | June 2022 | June 2026 | 0.83% | Euribor 3 M + | 14,000 | IRS | NO |
20 | June 2022 | June 2026 | 0.62% | Euribor 3 M + | 10,000 | IRS | NO |
21 | July 2022 | July 2027 | 1.44% | Euribor 3 M + | 15,000 | IRS | NO |
22 | June 2022 | June 2026 | 1.21% | Euribor 3 M + | 30,000 | IRS | NO |
23 | December 2023 | December 2029 | 0.89% | Euribor 3 M + | 35,000 | IRS | NO |
24 | March 2024 | March 2027 | 0.49% | Euribor 3 M + | 25,000 | IRS | NO |
Starting date | Ending date | Interest rate | Variable interest rate | Notional amount (in \u20ac 000) | Type of derivative | Hedge accounting | |
25 | June 2026 | December 2029 | 2.61% | Euribor 3 M + | 50,000 | IRS | NO |
26 | June 2026 | December 2029 | 3.08% | Euribor 3 M + | 50,000 | IRS | NO |
27 | June 2026 | December 2029 | 2.76% | Euribor 3 M + | 50,000 | IRS | NO |
28 | March 2027 | March 2028 | 2.42% | Euribor 3 M + | 50,000 | IRS | NO |
29 | December 2025 | December 2031 | 2.32% | Euribor 3 M + | 50,000 | IRS | NO |
30 | March 2028 | March 2032 | 2.54% | Euribor 3 M + | 50,000 | IRS | NO |
31 | March 2025 | March 2028 | 2.22% | Euribor 3 M + | 70,000 | IRS | NO |
32 | December 2029 | March 2032 | 2.11% | Euribor 3 M + | 50,000 | IRS | NO |
33 | December 2026 | March 2031 | 2.40% | Euribor 3 M + | 50,000 | IRS | NO |
Breakdown by maturity of liquidity obligation associated with the derivative products (in \u20ac 000) | 31.03.2025 |
Between zero and two year(s) | -9,651 |
Between two and five years | -7,127 |
More than five years | -1,611 |
Total | -18,389 |
Financial derivatives
Fair value hedge accounting
The Group uses financial derivatives (interest rate swaps) to hedge interest rate risks arising from operational, financial and investment activities. Derivative financial products are initially recognised at their fair value.
After the initial recognition, financial derivatives are valued in the annual accounts at their fair value.
Gains or losses resulting from changes in the fair value of the financial derivatives are immediately recognised in the income statement unless a derivative meets the conditions for cash flow hedge accounting.
The fair value of the financial interest rate derivatives is the amount that the company expects to receive or pay if the financial interest rate derivative is terminated as of the balance sheet date, taking into account the prevailing interest rate.
Cash flow hedge accounting
If a financial derivative can be documented as an effective hedge against any cash flow fluctuations, attributable to a risk linked to an asset or liability, or a highly probable future transaction, the part of the result ensuing from the change in value of the financial interest rate derivative that has been recognised as an effective hedge shall be posted directly to equity under \u201cChanges in the fair value of financial assets and liabilities\u201d. The ineffective part of the financial interest rate derivative shall be recognised in the income statement.
Trade receivables and other non-current assets
Trade receivables and other non-current assets are valued at fair value at initial recognition and are subsequently valued at amortised cost on the basis of the effective interest rate method. A write-down is recorded if uncertainty exists concerning the collectability of the receivable at maturity.
Current assets
The receivables payable within one year are recognised at nominal value less write-downs for doubtful or bad debts. Bank deposits, sight or term deposits, are valued at amortised cost. Any supplementary costs are charged directly to the income statement. Listed securities are valued at their quoted price.
Financial derivatives
Fair value hedge accounting
The Group uses financial derivatives (interest rate swaps) to hedge interest rate risks arising from operational, financial and investment activities. Derivative financial products are initially recognised at their fair value.
After the initial recognition, financial derivatives are valued in the annual accounts at their fair value.
Gains or losses resulting from changes in the fair value of the financial derivatives are immediately recognised in the income statement unless a derivative meets the conditions for cash flow hedge accounting.
The fair value of the financial interest rate derivatives is the amount that the company expects to receive or pay if the financial interest rate derivative is terminated as of the balance sheet date, taking into account the prevailing interest rate.
Cash flow hedge accounting
If a financial derivative can be documented as an effective hedge against any cash flow fluctuations, attributable to a risk linked to an asset or liability, or a highly probable future transaction, the part of the result ensuing from the change in value of the financial interest rate derivative that has been recognised as an effective hedge shall be posted directly to equity under \u201cChanges in the fair value of financial assets and liabilities\u201d. The ineffective part of the financial interest rate derivative shall be recognised in the income statement.
Financial derivatives
Fair value hedge accounting
The Group uses financial derivatives (interest rate swaps) to hedge interest rate risks arising from operational, financial and investment activities. Derivative financial products are initially recognised at their fair value.
After the initial recognition, financial derivatives are valued in the annual accounts at their fair value.
Gains or losses resulting from changes in the fair value of the financial derivatives are immediately recognised in the income statement unless a derivative meets the conditions for cash flow hedge accounting.
The fair value of the financial interest rate derivatives is the amount that the company expects to receive or pay if the financial interest rate derivative is terminated as of the balance sheet date, taking into account the prevailing interest rate.
Cash flow hedge accounting
If a financial derivative can be documented as an effective hedge against any cash flow fluctuations, attributable to a risk linked to an asset or liability, or a highly probable future transaction, the part of the result ensuing from the change in value of the financial interest rate derivative that has been recognised as an effective hedge shall be posted directly to equity under \u201cChanges in the fair value of financial assets and liabilities\u201d. The ineffective part of the financial interest rate derivative shall be recognised in the income statement.
Financial derivatives
Fair value hedge accounting
The Group uses financial derivatives (interest rate swaps) to hedge interest rate risks arising from operational, financial and investment activities. Derivative financial products are initially recognised at their fair value.
After the initial recognition, financial derivatives are valued in the annual accounts at their fair value.
Gains or losses resulting from changes in the fair value of the financial derivatives are immediately recognised in the income statement unless a derivative meets the conditions for cash flow hedge accounting.
The fair value of the financial interest rate derivatives is the amount that the company expects to receive or pay if the financial interest rate derivative is terminated as of the balance sheet date, taking into account the prevailing interest rate.
Cash flow hedge accounting
If a financial derivative can be documented as an effective hedge against any cash flow fluctuations, attributable to a risk linked to an asset or liability, or a highly probable future transaction, the part of the result ensuing from the change in value of the financial interest rate derivative that has been recognised as an effective hedge shall be posted directly to equity under \u201cChanges in the fair value of financial assets and liabilities\u201d. The ineffective part of the financial interest rate derivative shall be recognised in the income statement.
Financial instruments on 31\u00a0March\u00a02024
Summary of financial instruments as at closing date | 31.03.2025 | 31.03.2024 | ||||
(in \u20ac 000) | Categories | Level | Book value | Fair value | Book value | Fair value |
I. Non-current assets | ||||||
Finance lease receivables | A | 2 | 1,030 | 1,030 | 1,030 | 1,030 |
Loans and receivables | A | 2 | 32 | 32 | 40 | 40 |
Financial non-current assets | A/C | 2 | 31,172 | 31,172 | 44,924 | 44,924 |
II. Current assets | ||||||
Trade receivables and other receivables | A | 2 | 17,467 | 17,467 | 21,938 | 21,938 |
Cash and cash equivalents | B | 2 | 2,917 | 2,917 | 7,089 | 7,089 |
Total financial instruments on the assets side of the balance sheet | 52,617 | 52,617 | 75,021 | 75,021 | ||
I. Non-current liabilities | ||||||
Interest-bearing liabilities | A | 2 | ||||
Credit institutions | A | 2 | 648,655 | 646,878 | 686,535 | 680,578 |
Long term financial lease | A | 2 | 4,557 | 4,557 | 5,079 | 5,079 |
Bond loan | A | 2 | 175,743 | 174,504 | 175,572 | 171,544 |
Other non-current liabilities | A | 2 | ||||
Other financial liabilities | C | 2 | 0 | 0 | 0 | 0 |
II. Current liabilities | ||||||
Interest-bearing liabilities | A | 2 | 61,484 | 61,484 | 46,682 | 46,682 |
Current trade debts and other debts | A | 2 | 17,237 | 17,237 | 19,871 | 19,871 |
Total financial instruments on the liabilities side of the balance sheet | 907,675 | 904,660 | 933,739 | 923,754 |
The categories correspond to the following financial instruments:
A.Financial assets or liabilities (including receivables and loans) held to maturity at amortised cost.
B.Investments held to maturity at amortised cost.
C.Assets or liabilities held at fair value through profit and loss except for financial instruments designated as hedging instruments that are subject to hedge accounting.
The majority of the financial instruments of the Group correspond to level 2 in the fair values hierarchy. Fair value valuation is carried out regularly.
Level 2 in the fair value hierarchy includes other financial assets and liabilities of which the fair value can be determined by reference to other inputs which are directly or indirectly observable for the relevant assets or liabilities.
The valuation techniques regarding the fair value of level 2 financial instruments are the following:
\u2013The item \u201cother financial liabilities\u201d refers to interest rate swaps of which the fair value can be determined by means of interest rates applicable on active markets; these rates are generally provided by financial institutions.
\u2013The fair value of the other level 2 financial assets and liabilities is virtually equal to their book value:
\u2022either because they have a short-term maturity (e.g. trade receivables and debts);
\u2022or because they have a variable interest rate.
The fair value of debts with a fixed interest rate is estimated by discounting their future cash flows at a rate that reflects the Group\u2019s credit risk.
Financial instruments at amortised cost
Since trade receivables and trade debts are short-term instruments, the fair value approximates the nominal value of these financial assets and liabilities.
On 31\u00a0March\u00a02025, Retail Estates nv had \u20ac 553.79\u00a0million of financial debts at a variable interest rate and \u20ac\u00a0332.10\u00a0million of financial debts at a fixed interest rate1. 100.70% of the loans have a fixed interest rate or
are hedged using an interest rate swap contract. The fixed interest rates at which these long-term debts were originally concluded in most cases no longer correspond to prevailing money market rates, resulting in a difference between their book value and their fair value. The table below compares the total amount of fixed-rate debts at book value and at fair value at the end of the 2024-2025 financial year. The fair value of the fixed-rate debts is estimated by discounting their future cash flows at an interest rate that reflects the Group\u2019s credit risk. The fair value of the fixed-rate debts is mentioned in the table below. The book value is equal to the amortised cost.
31.03.2025 | 31.03.2024 | |||
Financial debts at fixed interest rate | Book value | Fair value | Book value | Fair value |
Financial debts at fixed interest rate | 332,095 | 329,080 | 333,068 | 323,083 |
Financial instruments at fair value
Fair value of financial assets and liabilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Fair value of financial derivatives - Liabilities | 0 | |
Fair value of financial derivatives - Assets | 24,597 | 38,275 |
Total fair value of financial assets and liabilities | 24,597 | 38,275 |
The Group makes use of financial derivatives (interest rate swaps, floors and caps) to hedge interest rate risks arising from operational, financial and investment activities. Financial derivatives are initially recognised at cost and revalued to their fair value on the next reporting date. The variation in instruments amounts to \u20ac\u00a0-13.67\u00a0million in the current financial year. The derivatives currently used by Retail Estates nv qualify as cash flow hedges only to a limited extent. Changes in the fair value of the derivatives that do not qualify as cash flow hedges are
recorded directly in the income statement. An amount of \u20ac -13.00 million was recorded in the income statement with respect to the financial instruments. Swaps qualifying as cash flow hedges are booked directly as shareholders\u2019 equity and are not included in the income statement. This financial year, \u20ac\u00a0-0.66 million was recorded directly in equity. The interest rate swaps are level 2 instruments.
Overview of financial instruments:
Other non-current liabilities
Starting date | Ending date | Interest rate | Variable interest rate | Notional amount (in \u20ac 000) | Type of derivative | Hedge accounting | |
1 | July 2016 | April 2026 | 1.26% | Euribor 3 M + | 26,000 | IRS | YES |
2 | March 2018 | March 2026 | 1.10% | Euribor 3 M + | 20,000 | IRS | NO |
3 | December 2018 | December 2026 | 1.06% | Euribor 3 M + | 25,000 | IRS | NO |
4 | January 2018 | January 2026 | 0.74% | Euribor 3 M + | 25,000 | IRS | NO |
5 | July 2016 | April 2026 | -2.25% | Euribor 3 M + | 26,000 | FLOOR | YES |
6 | March 2018 | March 2026 | 0.00% | Euribor 3 M + | 20,000 | FLOOR | NO |
7 | December 2018 | December 2026 | 0.00% | Euribor 3 M + | 25,000 | FLOOR | NO |
8 | June 2023 | June 2026 | 0.68% | Euribor 3 M + | 50,000 | IRS | NO |
9 | December 2024 | December 2028 | 0.70% | Euribor 3 M + | 25,000 | IRS | NO |
10 | December 2024 | December 2028 | 0.72% | Euribor 3 M + | 25,000 | IRS | NO |
11 | March 2024 | March 2029 | 0.40% | Euribor 3 M + | 25,000 | IRS | NO |
12 | March 2024 | March 2029 | 0.37% | Euribor 3 M + | 25,000 | IRS | NO |
13 | March 2024 | March 2029 | 0.28% | Euribor 3 M + | 25,000 | IRS | NO |
14 | June 2024 | March 2029 | 0.03% | Euribor 3 M + | 25,000 | IRS | NO |
15 | March 2024 | June 2029 | 0.21% | Euribor 3 M + | 50,000 | IRS | NO |
16 | December 2026 | December 2029 | -0.06% | Euribor 3 M + | 25,000 | IRS | NO |
17 | June 2021 | June 2027 | 0.85% | Euribor 3 M + | 60,000 | IRS | NO |
18 | June 2022 | June 2026 | 0.63% | Euribor 3 M + | 25,000 | IRS | NO |
19 | June 2022 | June 2026 | 0.83% | Euribor 3 M + | 14,000 | IRS | NO |
20 | June 2022 | June 2026 | 0.62% | Euribor 3 M + | 10,000 | IRS | NO |
21 | July 2022 | July 2027 | 1.44% | Euribor 3 M + | 15,000 | IRS | NO |
22 | June 2022 | June 2026 | 1.21% | Euribor 3 M + | 30,000 | IRS | NO |
23 | December 2023 | December 2029 | 0.89% | Euribor 3 M + | 35,000 | IRS | NO |
24 | March 2024 | March 2027 | 0.49% | Euribor 3 M + | 25,000 | IRS | NO |
Starting date | Ending date | Interest rate | Variable interest rate | Notional amount (in \u20ac 000) | Type of derivative | Hedge accounting | |
25 | June 2026 | December 2029 | 2.61% | Euribor 3 M + | 50,000 | IRS | NO |
26 | June 2026 | December 2029 | 3.08% | Euribor 3 M + | 50,000 | IRS | NO |
27 | June 2026 | December 2029 | 2.76% | Euribor 3 M + | 50,000 | IRS | NO |
28 | March 2027 | March 2028 | 2.42% | Euribor 3 M + | 50,000 | IRS | NO |
29 | December 2025 | December 2031 | 2.32% | Euribor 3 M + | 50,000 | IRS | NO |
30 | March 2028 | March 2032 | 2.54% | Euribor 3 M + | 50,000 | IRS | NO |
31 | March 2025 | March 2028 | 2.22% | Euribor 3 M + | 70,000 | IRS | NO |
32 | December 2029 | March 2032 | 2.11% | Euribor 3 M + | 50,000 | IRS | NO |
33 | December 2026 | March 2031 | 2.40% | Euribor 3 M + | 50,000 | IRS | NO |
Breakdown by maturity of liquidity obligation associated with the derivative products (in \u20ac 000) | 31.03.2025 |
Between zero and two year(s) | -9,651 |
Between two and five years | -7,127 |
More than five years | -1,611 |
Total | -18,389 |
Financial derivatives
Fair value hedge accounting
The Group uses financial derivatives (interest rate swaps) to hedge interest rate risks arising from operational, financial and investment activities. Derivative financial products are initially recognised at their fair value.
After the initial recognition, financial derivatives are valued in the annual accounts at their fair value.
Gains or losses resulting from changes in the fair value of the financial derivatives are immediately recognised in the income statement unless a derivative meets the conditions for cash flow hedge accounting.
The fair value of the financial interest rate derivatives is the amount that the company expects to receive or pay if the financial interest rate derivative is terminated as of the balance sheet date, taking into account the prevailing interest rate.
Cash flow hedge accounting
If a financial derivative can be documented as an effective hedge against any cash flow fluctuations, attributable to a risk linked to an asset or liability, or a highly probable future transaction, the part of the result ensuing from the change in value of the financial interest rate derivative that has been recognised as an effective hedge shall be posted directly to equity under \u201cChanges in the fair value of financial assets and liabilities\u201d. The ineffective part of the financial interest rate derivative shall be recognised in the income statement.
Financial derivatives
Fair value hedge accounting
The Group uses financial derivatives (interest rate swaps) to hedge interest rate risks arising from operational, financial and investment activities. Derivative financial products are initially recognised at their fair value.
After the initial recognition, financial derivatives are valued in the annual accounts at their fair value.
Gains or losses resulting from changes in the fair value of the financial derivatives are immediately recognised in the income statement unless a derivative meets the conditions for cash flow hedge accounting.
The fair value of the financial interest rate derivatives is the amount that the company expects to receive or pay if the financial interest rate derivative is terminated as of the balance sheet date, taking into account the prevailing interest rate.
Cash flow hedge accounting
If a financial derivative can be documented as an effective hedge against any cash flow fluctuations, attributable to a risk linked to an asset or liability, or a highly probable future transaction, the part of the result ensuing from the change in value of the financial interest rate derivative that has been recognised as an effective hedge shall be posted directly to equity under \u201cChanges in the fair value of financial assets and liabilities\u201d. The ineffective part of the financial interest rate derivative shall be recognised in the income statement.
Trade receivables and other non-current assets
Trade receivables and other non-current assets are valued at fair value at initial recognition and are subsequently valued at amortised cost on the basis of the effective interest rate method. A write-down is recorded if uncertainty exists concerning the collectability of the receivable at maturity.
Current assets
The receivables payable within one year are recognised at nominal value less write-downs for doubtful or bad debts. Bank deposits, sight or term deposits, are valued at amortised cost. Any supplementary costs are charged directly to the income statement. Listed securities are valued at their quoted price.
Liabilities
A provision is taken if:
\u2013Retail Estates nv has an existing \u2013 legally enforceable or actual \u2013 commitment resulting from an event in the past;
\u2013an outflow of funds will probably be required to settle the commitment; and
\u2013the amount of the commitment can be estimated reliably.
Trade debts are presented at nominal value on the balance sheet date. Interest-bearing borrowings are initially recognised at cost price less transaction costs. The interest-bearing borrowings are subsequently valued on the basis of the effective interest rate method,
recognising each difference between the initial book value and the redemption value as an interest cost in the income statement over the term of the loan.
Financial derivatives
Fair value hedge accounting
The Group uses financial derivatives (interest rate swaps) to hedge interest rate risks arising from operational, financial and investment activities. Derivative financial products are initially recognised at their fair value.
After the initial recognition, financial derivatives are valued in the annual accounts at their fair value.
Gains or losses resulting from changes in the fair value of the financial derivatives are immediately recognised in the income statement unless a derivative meets the conditions for cash flow hedge accounting.
The fair value of the financial interest rate derivatives is the amount that the company expects to receive or pay if the financial interest rate derivative is terminated as of the balance sheet date, taking into account the prevailing interest rate.
Cash flow hedge accounting
If a financial derivative can be documented as an effective hedge against any cash flow fluctuations, attributable to a risk linked to an asset or liability, or a highly probable future transaction, the part of the result ensuing from the change in value of the financial interest rate derivative that has been recognised as an effective hedge shall be posted directly to equity under \u201cChanges in the fair value of financial assets and liabilities\u201d. The ineffective part of the financial interest rate derivative shall be recognised in the income statement.
Financial derivatives
Fair value hedge accounting
The Group uses financial derivatives (interest rate swaps) to hedge interest rate risks arising from operational, financial and investment activities. Derivative financial products are initially recognised at their fair value.
After the initial recognition, financial derivatives are valued in the annual accounts at their fair value.
Gains or losses resulting from changes in the fair value of the financial derivatives are immediately recognised in the income statement unless a derivative meets the conditions for cash flow hedge accounting.
The fair value of the financial interest rate derivatives is the amount that the company expects to receive or pay if the financial interest rate derivative is terminated as of the balance sheet date, taking into account the prevailing interest rate.
Cash flow hedge accounting
If a financial derivative can be documented as an effective hedge against any cash flow fluctuations, attributable to a risk linked to an asset or liability, or a highly probable future transaction, the part of the result ensuing from the change in value of the financial interest rate derivative that has been recognised as an effective hedge shall be posted directly to equity under \u201cChanges in the fair value of financial assets and liabilities\u201d. The ineffective part of the financial interest rate derivative shall be recognised in the income statement.
Other non-current financial liabilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Authorised hedging instruments (also refer to note 35) | 0 | |
Deferred taxes | 1,560 | 3,200 |
Total other non-current financial liabilities | 1,560 | 3,200 |
Financial instruments at fair value
Fair value of financial assets and liabilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Fair value of financial derivatives - Liabilities | 0 | |
Fair value of financial derivatives - Assets | 24,597 | 38,275 |
Total fair value of financial assets and liabilities | 24,597 | 38,275 |
The Group makes use of financial derivatives (interest rate swaps, floors and caps) to hedge interest rate risks arising from operational, financial and investment activities. Financial derivatives are initially recognised at cost and revalued to their fair value on the next reporting date. The variation in instruments amounts to \u20ac\u00a0-13.67\u00a0million in the current financial year. The derivatives currently used by Retail Estates nv qualify as cash flow hedges only to a limited extent. Changes in the fair value of the derivatives that do not qualify as cash flow hedges are
recorded directly in the income statement. An amount of \u20ac -13.00 million was recorded in the income statement with respect to the financial instruments. Swaps qualifying as cash flow hedges are booked directly as shareholders\u2019 equity and are not included in the income statement. This financial year, \u20ac\u00a0-0.66 million was recorded directly in equity. The interest rate swaps are level 2 instruments.
Overview of financial instruments:
Other non-current liabilities
Starting date | Ending date | Interest rate | Variable interest rate | Notional amount (in \u20ac 000) | Type of derivative | Hedge accounting | |
1 | July 2016 | April 2026 | 1.26% | Euribor 3 M + | 26,000 | IRS | YES |
2 | March 2018 | March 2026 | 1.10% | Euribor 3 M + | 20,000 | IRS | NO |
3 | December 2018 | December 2026 | 1.06% | Euribor 3 M + | 25,000 | IRS | NO |
4 | January 2018 | January 2026 | 0.74% | Euribor 3 M + | 25,000 | IRS | NO |
5 | July 2016 | April 2026 | -2.25% | Euribor 3 M + | 26,000 | FLOOR | YES |
6 | March 2018 | March 2026 | 0.00% | Euribor 3 M + | 20,000 | FLOOR | NO |
7 | December 2018 | December 2026 | 0.00% | Euribor 3 M + | 25,000 | FLOOR | NO |
8 | June 2023 | June 2026 | 0.68% | Euribor 3 M + | 50,000 | IRS | NO |
9 | December 2024 | December 2028 | 0.70% | Euribor 3 M + | 25,000 | IRS | NO |
10 | December 2024 | December 2028 | 0.72% | Euribor 3 M + | 25,000 | IRS | NO |
11 | March 2024 | March 2029 | 0.40% | Euribor 3 M + | 25,000 | IRS | NO |
12 | March 2024 | March 2029 | 0.37% | Euribor 3 M + | 25,000 | IRS | NO |
13 | March 2024 | March 2029 | 0.28% | Euribor 3 M + | 25,000 | IRS | NO |
14 | June 2024 | March 2029 | 0.03% | Euribor 3 M + | 25,000 | IRS | NO |
15 | March 2024 | June 2029 | 0.21% | Euribor 3 M + | 50,000 | IRS | NO |
16 | December 2026 | December 2029 | -0.06% | Euribor 3 M + | 25,000 | IRS | NO |
17 | June 2021 | June 2027 | 0.85% | Euribor 3 M + | 60,000 | IRS | NO |
18 | June 2022 | June 2026 | 0.63% | Euribor 3 M + | 25,000 | IRS | NO |
19 | June 2022 | June 2026 | 0.83% | Euribor 3 M + | 14,000 | IRS | NO |
20 | June 2022 | June 2026 | 0.62% | Euribor 3 M + | 10,000 | IRS | NO |
21 | July 2022 | July 2027 | 1.44% | Euribor 3 M + | 15,000 | IRS | NO |
22 | June 2022 | June 2026 | 1.21% | Euribor 3 M + | 30,000 | IRS | NO |
23 | December 2023 | December 2029 | 0.89% | Euribor 3 M + | 35,000 | IRS | NO |
24 | March 2024 | March 2027 | 0.49% | Euribor 3 M + | 25,000 | IRS | NO |
Starting date | Ending date | Interest rate | Variable interest rate | Notional amount (in \u20ac 000) | Type of derivative | Hedge accounting | |
25 | June 2026 | December 2029 | 2.61% | Euribor 3 M + | 50,000 | IRS | NO |
26 | June 2026 | December 2029 | 3.08% | Euribor 3 M + | 50,000 | IRS | NO |
27 | June 2026 | December 2029 | 2.76% | Euribor 3 M + | 50,000 | IRS | NO |
28 | March 2027 | March 2028 | 2.42% | Euribor 3 M + | 50,000 | IRS | NO |
29 | December 2025 | December 2031 | 2.32% | Euribor 3 M + | 50,000 | IRS | NO |
30 | March 2028 | March 2032 | 2.54% | Euribor 3 M + | 50,000 | IRS | NO |
31 | March 2025 | March 2028 | 2.22% | Euribor 3 M + | 70,000 | IRS | NO |
32 | December 2029 | March 2032 | 2.11% | Euribor 3 M + | 50,000 | IRS | NO |
33 | December 2026 | March 2031 | 2.40% | Euribor 3 M + | 50,000 | IRS | NO |
Breakdown by maturity of liquidity obligation associated with the derivative products (in \u20ac 000) | 31.03.2025 |
Between zero and two year(s) | -9,651 |
Between two and five years | -7,127 |
More than five years | -1,611 |
Total | -18,389 |
Financial derivatives
Fair value hedge accounting
The Group uses financial derivatives (interest rate swaps) to hedge interest rate risks arising from operational, financial and investment activities. Derivative financial products are initially recognised at their fair value.
After the initial recognition, financial derivatives are valued in the annual accounts at their fair value.
Gains or losses resulting from changes in the fair value of the financial derivatives are immediately recognised in the income statement unless a derivative meets the conditions for cash flow hedge accounting.
The fair value of the financial interest rate derivatives is the amount that the company expects to receive or pay if the financial interest rate derivative is terminated as of the balance sheet date, taking into account the prevailing interest rate.
Cash flow hedge accounting
If a financial derivative can be documented as an effective hedge against any cash flow fluctuations, attributable to a risk linked to an asset or liability, or a highly probable future transaction, the part of the result ensuing from the change in value of the financial interest rate derivative that has been recognised as an effective hedge shall be posted directly to equity under \u201cChanges in the fair value of financial assets and liabilities\u201d. The ineffective part of the financial interest rate derivative shall be recognised in the income statement.
Liabilities
A provision is taken if:
\u2013Retail Estates nv has an existing \u2013 legally enforceable or actual \u2013 commitment resulting from an event in the past;
\u2013an outflow of funds will probably be required to settle the commitment; and
\u2013the amount of the commitment can be estimated reliably.
Trade debts are presented at nominal value on the balance sheet date. Interest-bearing borrowings are initially recognised at cost price less transaction costs. The interest-bearing borrowings are subsequently valued on the basis of the effective interest rate method,
recognising each difference between the initial book value and the redemption value as an interest cost in the income statement over the term of the loan.
Investment properties
Valuation at initial recognition
Investment properties comprise all real estate properties that are ready to be let. Investment properties are initially valued at acquisition cost, including additional expenses and non-deductible VAT. The exit tax, owed by companies over which the public BE-REIT acquires direct or indirect control, is furthermore in principle deducted from the value of the underlying property as it concerns a tax on the latent capital gain existing in the acquired company prior to the acquisition unless these companies do not qualify for a merger with the public BE-REIT (as decided by the board of directors). The commissions related to the acquisition of buildings are regarded as additional costs of the acquisition and are added to the acquisition cost.
If a property is acquired through non-monetary contributions, any third-party costs directly attributable to the issuance of new shares shall be deducted from equity. The contributed properties are valued at contribution value at initial recognition.
The user rights recognised in the balance sheet for concessions, long leases or similar lease agreements (following the entry into force of IFRS 16) are also regarded as a real estate investment.
Valuation after initial recognition
At the end of each quarter, an independent real estate expert shall provide an exact assessment of the following elements:
\u2013the immovable properties, the properties that are immovable by their intended use, and the rights in rem on immovable properties held by Retail Estates nv or, where appropriate, by a subsidiary it controls;
\u2013the option rights on immovable properties held by Retail Estates nv or, where appropriate, by a subsidiary it controls, as well as the immovable properties to which these rights apply;
\u2013the contractual rights by which one or more immovable property assets are leased to Retail Estates nv or, where appropriate, to a subsidiary it controls, including the underlying immovable property.
The experts perform their assessments in accordance with national and international standards and their application procedures, including those in the field of the valuation of Belgian regulated real estate companies (pursuant to the provisional decrees; the experts reserve the right to adapt the valuation in the event of any amendments to the decrees).
Fair value is specifically defined as the price that would be received upon sale of an asset or that would have to be paid upon the transfer of an obligation in an arm\u2019s length transaction between market parties on the valuation date.
From the point of view of the seller, it must be construed minus the transaction taxes. The estimated amount of the transaction taxes is immediately deducted from the results at initial recognition.
Comments on the real estate transfer tax in Belgium
The transfer of ownership of real estate is subject to transfer taxes in Belgium. The amount of these taxes depends on the manner of transfer, the capacity of the buyer and the geographical location of the property. The first two elements, and hence the full amount of the taxes due, are therefore only known when the transfer of ownership has been completed. The different transfer of ownership possibilities and the corresponding taxes are:
\u2013real estate sales agreements: 12.50% for properties located in Brussels-Capital Region and in the Walloon Region, 12% for properties located in the Flemish Region;
\u2013sale of real estate under the broker system: 4% to 8% depending on the Region;
\u2013long-term lease agreements for real estate (up to 50 years for the right of superficies and up to 99 years for the long-term lease right): 5%
\u2013real estate sales agreements where the purchaser is a public body (e.g. an entity of the European Union, the Federal Government, a regional government or a foreign government): exemption from duties;
\u2013non-monetary contribution of real estate in return for the issuance of new shares to the benefit of the contributor: exemption from duties;
\u2013sales agreement for shares of a real estate company: absence of duties;
\u2013merger, demerger and other company reorganisations: absence of duties; etc.
As a result, the actual percentage of the transfer taxes varies from 0% to 12.50%; it is furthermore impossible to predict which percentage is applicable to the transfer of a given Belgian property before the actual transfer takes place.
In January 2006, all experts involved in determining the value of Belgian BE-REITs were asked to determine a weighted average percentage of the actual taxes for the real estate portfolios of the BE-REITs. For transactions of properties with a value of over \u20ac 2.50 million, and in view of the range of methods for transferring ownership (see above), the experts calculated the weighted average taxes at 2.50% based on a representative sample of 220 market transactions with a total worth of \u20ac 6 billion that took place between 2003 and 2005. As regards transactions involving buildings of which the total value is lower than \u20ac 2.50 million, transfer duties are applied depending on the Region in which the premises are located. It was decided to adjust this percentage by multiples of 0.5% if necessary.
In 2016, an update of this calculation was made according to the methodology used in 2006 based on a sample of 305 large or institutional transactions (threshold of \u20ac 2.5 million) that occurred between 2013 and the 1st quarter of 2016 (this is 70% or 8.18 billion of the estimated total number of investment transactions during this period). The experts came to the conclusion that the 0.5% threshold was not exceeded. Consequently, the weighted average of 2.5% was retained.
Retail Estates nv considers its real estate portfolio as a whole which can be disposed of as a whole or as a limited number of larger parts. Retail Estates manages its real estate at portfolio level whenever possible (\u201cretail cluster and retail parks\u201d, see management report and chapter \u201coverview of real estate portfolio\u201d in the real estate report for an overview of the clusters). Consequently, the fair value is determined by deducting 2.5% from the value of the properties (in accordance with the valuation at \u201cfair value\u201d of its valuation appraisers Cushman & Wakefield, CBRE, Colliers and Stadim). In accordance with its strategy, Retail Estates does in principle not have the intention to sell individual properties within the clusters with an investment value below \u20ac 2.5 million.
Comments on the real estate transfer tax in the Netherlands
As from 1 January 2023, the Dutch real estate transfer tax is 10.4% (8% since 1 January 2021, previously 6%). For the other costs (e.g. notary fees) Retail Estates charges between 0.08% and 1% extra.
Any gains or losses resulting from fluctuations in the fair value of an investment property are recognised in the income statement in the period in which they arise and assigned to the reserves for the balance of fluctuations in the fair value of real estate properties during the appropriation of profits.
Expenditure for works on investment properties
The expenditure for works on investment properties is charged to the operating property result if the expenditure does not have a positive effect on the expected future economic benefits, and is capitalised if it substantially increases the expected economic benefits it brings to the entity. There are two major types of expenditure:
a)costs of maintenance and repairs to roof coverings and car parks: if this involves a complete roof renovation (including new insulation in line with the company's sustainability strategy), these costs are capitalised and therefore added to the fair value of the investment property. Pure maintenance and repair work is charged to the operating result;
b)renewal of windows: investments made as part of the company's sustainability strategy (which significantly improve the existing level of comfort) are capitalised and added to the fair value of the investment property;
a)the costs of major transformation and renovation works: transformations are occasional projects that add an additional function to the building or considerably improve the existing comfort. These costs relate to materials, fees, contracting works and the like. Internal management and supervisory costs are not capitalised. As soon as they have commenced, such works are included in the assessed value of the building in question (initially on a provisional basis and then permanently following a visit by the real estate expert). Any works that remain to be done are deducted from the valuation. Once these works have been completed, the costs are capitalised and hence added to the fair value of the investment properties.
Disposal of investment properties
The gains or losses realised from the sale of an investment property are classified as \u201cResult from sales of investment properties\u201d in the income statement and are allocated to the result carried forward upon the appropriation of results. The commissions paid for sales and the liabilities resulting from transactions are deducted from the selling price in order to determine the gain or loss realised.
Non-current assets under construction
Under the adjusted IAS 40 standard, non-current assets under construction are included in the investment properties. If purchased, they are valued at the acquisition value, including incidental costs and non-deductible VAT.
If the Group believes that the fair value of the investment properties under development cannot be determined in a reliable manner but assumes it will be possible to determine the fair value once the properties have been contracted, licensed and rented, the investment properties under development will be registered at
cost price until the fair value can be determined (when they have been contracted, licensed and rented or until construction is completed (whichever happens first)) in accordance with IAS 40.53. This fair value is based on the valuation by the real estate expert after deducting the work that remains to be performed.
A non-current asset under construction can relate to a plot of land, a building to be demolished or an existing building that needs to be given a new purpose, requiring considerable renovation work to realise the desired purpose.
Real estate certificates
Valuation
1.General principle
If the holder of the certificates does not have a material interest (more than 75%) in a real estate certificate, the certificates shall be booked on the closing date at the weighted average quoted price during the preceding 30 days and classified as \u201cnon-current financial assets\u201d.
The aforementioned rule does not apply if, on the basis of publicly available information and the issue conditions for the real estate certificate, a net asset value is noted that is substantially below the stock market price. The value is then limited to the net asset value.
2.Ownership of material interest (more than 75%) in certificates issued (as of 31\u00a0March\u00a02025 only applicable to the \u201cDistriLand\u201d real estate certificates)
The quoted price of these real estate certificates as listed on the Euronext \u2013 Second Market cannot be considered as a reliable reference given the limited liquidity of this real estate certificate. Retail Estates nv\u2019s policy is to revalue its real estate certificates on every closing date in view of:
a)the fair value of the immovable properties owned by the issuer by analogy with the valuation of the company\u2019s own real properties. This is done on the basis of a periodic valuation by a real estate expert hired jointly by Retail Estates nv and Immobili\u00e8re Distri-Land nv. Where one or more buildings are sold by the real estate certificate issuer, the sales price shall be used as valuation until the distribution of the sale\u2019s proceeds;
b)the contractual rights of the holder of the real estate certificate in compliance with the prospectus that was published at the time of issue of the real estate certificate.
Retail Estates nv only invests in certificates issued for the financing of out-of-town retail real estate. The real estate owned by the issuer is the type of out-of-town retail real estate in which Retail Estates nv aims to invest. Although Retail Estates nv is not the legal owner of this real estate, it considers itself to be the economic beneficiary in proportion to its contractual rights in ownership. In addition, an investment in real estate certificates is regarded as an investment in real estate pursuant to Article 2, sub. 5\u00b0, x, of the BE-REIT Act.
Taking these considerations into account, the certificates are classified as real estate investments at their acquisition value, including additional expenses. Any gains or losses resulting from fluctuations in the fair value of an investment property are recognised in the income statement in the period in which they arise and assigned to the unavailable reserves at the time of the appropriation of profits. On 31\u00a0March\u00a02025, the value of the investment properties related to the Distri-Land certificates amounts to \u20ac 19.45 million (\u20ac 17.35 million on 31\u00a0March\u00a02024) compared to a total portfolio of Retail Estates of \u20ac 2,069.54 million.
Processing of coupons\u00a0
1.Processing of current operating result
As a holder of real estate certificates, Retail Estates nv has a contractual right, in proportion to the number of real estate certificates in its possession, to a share of the operating result realised by the issuer. This result is calculated by deducting the operating and maintenance expenses from the total rental income collected. The entire decrease or increase in value is recognised by re-estimating the value of the real estate certificate. As a result, no part of the coupon relating to the operating result should be regarded as compensation for any reduction in value of the issuer\u2019s buildings. The entire coupon is therefore treated as net rental income and is classified as turnover.
2.Processing of the liquidation balance in case of sale of real estate
Whenever a particular property in the issuer\u2019s portfolio is sold, the following applies:
the net proceeds, after retention of any withholding tax liability, are only recognised as realised capital gains in Retail Estates nv\u2019s accounts equal to the amount of the difference between the book value of the real estate certificate on the closing date increased by the net liquidation coupon on the one hand and the book value on the previous closing date on the other. The book value of the real estate certificate is calculated at each closing date by performing a valuation of the certificate holder\u2019s contractual rights as they appear in the issue prospectus based on the fair value of the immovable property owned by the issuer as validated by the real estate expert of Retail Estates nv on the closing date. Any gains or losses resulting from fluctuations in the fair value of an investment property are recognised in the income statement and incorporated in the period in which they arise and are assigned to the reserves available for distribution at the time of the appropriation of profits.
Result on disposals of investment properties (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Book value of sold real estate properties | 7,345 | 12,652 |
Net sales price of investment properties (sales price - transaction costs) | 7,904 | 12,373 |
Other | -174 | -120 |
Total gain or loss on disposals of investment properties | 386 | -399 |
Changes in fair value of investment properties (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Change in investment properties due to value adjustments | 32,932 | 63,315 |
Change in investment properties due to change in transaction costs | -5,098 | -12,125 |
Total changes in fair value of investment properties | 27,835 | 51,190 |
During the 2022-2025 financial years, actual rents were indexed by an average of 14.60% and 11.61% in Belgium and the Netherlands, respectively. These indexations were included in the expected contractual rents by the real estate experts with a delayed effect. As in the 2023-2024 financial year, there is sufficient market evidence during the 2024-2025 financial year for the real estate experts to assume that the indexations for most properties are permanent in nature, and the expected contractual rents were further aligned with the current rents. The variation in the fair value of investment properties was significantly higher in the previous financial year due to the adjustments already made at that time to bring the expected contractual rents closer to the current rents. This trend continued this year, but to a lesser extent due to the adjustments already made in the previous financial year. In addition, this year we also had the impact of the write-down of the Wetteren site due to its rezoning as an SME park and its lower development value.
31.03.2025 | 31.03.2024 | |
Other result on portfolio | 1,566 | -365 |
Investment and revaluation table (in \u20ac 000) | Investment properties1 | Assets held for sale | Total | |||
31.03.2025 | 31.03.2024 | 31.03.2025 | 31.03.2024 | 31.03.2025 | 31.03.2024 | |
Balance at the end of the previous financial year | 2,028,317 | 1,888,562 | 8,552 | 8,561 | 2,036,870 | 1,897,123 |
Acquisition through purchase of real estate companies | 0 | 3,200 | 0 | 0 | 3,200 | |
Acquisition through contribution real estate companies | 0 | 0 | 0 | 0 | 0 | |
Capitalised interest cost | 95 | 101 | 0 | 95 | 101 | |
Acquisiton of investment properties | 12,859 | 85,115 | 0 | 12,859 | 85,115 | |
Investments that result from subsequent expenses included in the carrying amount of the asset | 8,480 | 8,407 | 0 | 8,480 | 8,407 | |
Contribution of investment properties | 0 | 0 | 0 | 0 | 0 | |
Disposal through sale of real estate companies | 0 | 0 | 0 | 0 | 0 | |
Disposal of investment properties | -3,841 | -8,442 | -3,503 | -4,210 | -7,345 | -12,652 |
Transfers to assets held for sale | -13,408 | -4,201 | 13,408 | 4,201 | 0 | 0 |
IFRS 16 | -217 | 230 | 0 | -217 | 230 | |
Other transfers | 0 | 0 | 0 | 0 | 0 | |
Acquisiton of non-current assets under construction | 9,418 | 4,156 | 0 | 9,418 | 4,156 | |
Completion of non-current assets under construction to portfolio | 11,207 | 3,914 | 0 | 11,207 | 3,914 | |
Transfer of non-current assets under construction to portfolio | -11,207 | -3,914 | 0 | -11,207 | -3,914 | |
Transfer of fixed assets under construction to investments in associated companies | 0 | 0 | 0 | 0 | 0 | |
Change in fair value (+/-) | 27,834 | 51,190 | 0 | 27,834 | 51,190 | |
At the end of the financial year | 2,069,537 | 2,028,317 | 18,457 | 8,552 | 2,087,995 | 2,036,870 |
OTHER INFORMATIONS | ||||||
Investment value of the property | 2,179,677 | 2,134,531 | 18,918 | 8,766 | 2,198,595 | 2,143,297 |
1 Including non-current assets under construction (IAS 40). |
Investments resulting from subsequent expenditure included in the book value of the assets amounted to \u20ac\u00a08.48 million in financial year 2024-2025. In addition, the company realised \u20ac\u00a011.21 million from the development of property for its own account and invested \u20ac\u00a09.42\u00a0million in the development of property for its own account.
Where the evolutions in investment properties and the assets held for sale are concerned, please refer to the \"Comments on the consolidated accounts for financial year 2024-2025\".
As mentioned in the valuation rules, non-current assets under construction are included in the investment properties, in accordance with the adjusted IAS 40 standard. If purchased, they are valued at the acquisition value, including incidental costs and non-deductible VAT.
If the Group believes that the fair value of the investment properties under development cannot be determined in a reliable manner but assumes it will be possible to determine the fair value once the properties have been contracted, licensed and rented, the investment properties under development will be registered at cost price until the fair value can be determined (when they have been contracted, licensed and rented or until construction is completed, whichever happens first) in accordance with IAS 40.53. This fair value is based on the valuation by the real estate expert after deducting the work that remains to be performed.
IFRS 13
IFRS 13 introduced a uniform framework for valuation at fair value and the provision of information on valuation at fair value, where this valuation principle is obligatory or permitted on the basis of other IFRS standards. In this context, fair value is specifically defined as the price that would be received upon sale of an asset or that would
have to be paid upon the transfer of an obligation in an arm\u2019s length transaction between market parties on the valuation date.
Investment properties are recorded at fair value. Fair value is determined on the basis of one of the following levels of the IFRS 13 hierarchy:
\u2013Level 1: valuation based on quoted prices in active markets
\u2013Level 2: valuation based on directly or indirectly observable (external) inputs
\u2013Level 3: valuation entirely or partly based on unobservable (external) inputs
Investment properties fall under level 3 according to the IFRS 13 classification.
Valuation methodology investment properties
Investment properties are recorded on the basis of appraisal reports drawn up by independent expert real estate appraisers. Investment properties are valued at fair value. This fair value is based on the market value (i.e. corrected for transfer tax as described in the \u201cAccounting policies\u201d described above in this Annual Financial Report).
The methods used by the independent real estate appraisers are the following:
The investment value is generally calculated on the basis of a GIY (Gross Initial Yield) capitalisation of the current contractual basic annual rent, taking into account possible corrections like estimated market rental value, vacancy, step-rents, rent-free periods etc. The GIY depends on current output on the investment market, taking into account the location, the suitability of the site, the quality of the tenant and the building at the moment of the valuation.
In case of buildings where the property rights are divided in bare ownership on the one hand and rights of superficies or long lease rights on the other, the value of the superficies or long lease rights is determined by discounting (Discounted Cash Flow) the net rental income, i.e. after deduction of the superficies or ground rent, until the end of the long lease or superficies agreement.
The value of the bare ownership is determined by updating (Discounted Cash Flow) the periodical superficies or leasehold rent until the expiry date of this agreement.
Unobservable inputs for the determination of the fair value:
31.03.2025 | 31.03.2024 | |||||
Country | Method | Input | Range | Weighted average | Range | Weighted average |
Belgium | Gross Initial Yield-capitalization | Capitalisation rate (%) | 5,25%-10% | 6.77% | 5,25% - 10 % | 6.64% |
Annual rent (EUR/m\u00b2) | 25 - 250 | 113.93 | 25 - 250 | 110.75 | ||
Remaining lease duration (expiry date) (in months) | 0-540m | 98m | 0-552m | 92m | ||
Remaining lease duration (first break option) (in months) | 0-192m | 24m | 0-204m | 19m | ||
Vacancy (in months) | 0m - 12 m | / | 0m - 12m | / | ||
DCF (Discounted Cashflow) | Discount rate (%) | 5,75%-10% | 6.65% | 5,7% - 10,00% | 6.80% | |
Annual rent (EUR/m\u00b2) | 25 - 250 | 117.66 | 50-250 | 112.21 | ||
Remaining lease duration (expiry date) (in months) | 0-456m | 91m | 0-468m | 90m | ||
Remaining lease duration (first break option) (in months) | 0-456m | 32m | 0-468m | 38m | ||
Vacancy (in months) | 0m-12m | / | 0m - 12 m | / | ||
The Netherlands | Gross Initial Yield-capitalization | Capitalisation rate (%) | 5,21%-10,51% | 6.80% | 5,58%-10,36% | 8.27% |
Annual market rent (EUR/m\u00b2) | 35 - 364 | 112.36 | 50 - 351 | 107.23 | ||
Remaining lease duration (expiry date) (in months) | 0-156m | 47m | 0-168m | 43m | ||
Remaining lease duration (first break option) (in months) | 0-156m | 44m | 0-168m | 43m | ||
Vacancy (in months) | 0-12m | / | 0-12m | / |
Sensitivity of investment property valuations
The sensitivity of the fair value in relation to changes in the significant unobservable inputs used to determine the fair value of the properties classified in level 3 (in accordance with the IFRS fair value hierarchy) is the following (ceteris paribus):
\u2013the effect of the increase (decrease) of the rental income by 1% leads to an increase (a decrease) in the portfolio\u2019s fair value by \u20ac\u00a020.70 million.
\u2013The effect of an increase (decrease) of the rental income by 2% or 5% is linear. The effect of an increase in the yield by 100 bps leads to a decrease in the portfolio\u2019s fair value by \u20ac 263.64 million.
\u2013A decrease in the yield by 100 bps leads to an increase in the portfolio\u2019s fair value by \u20ac 353.77 million.
Valuation methodology solar panels
Within the framework of ESG objectives, investments are being made in solar panels which, in accordance with GVV legislation, must be valued by a recognized real estate expert. The value of the solar panels is determined using a theoretical model based on the individual potential electricity production of each installation. They are then valued on the basis of the variable market price for electricity at the time of valuation. Hereby abstraction is made of the current operating conditions in order to arrive at a kind of estimated rental value for the installations. By applying a return that would be paid if the installation were taken over by third parties, the market value is determined.
This is an overview of the solar panel investments:
Country | Year of construction | Fair value (\u20ac) | Rental income (\u20ac) | Acquisition value (\u20ac) |
Belgium | 2017-2024 | 6,987,365.46 | 463,280.00 | 4,916,467.48 |
The Netherlands | 2017-2022 | 2,414,035.04 | 102,350.00 | 1,120,775.28 |
Non-observable inputs in determining fair value:
Valuation methodology | Discounted cash flow |
Implicit sunshine duration | The valuation model takes into account 1,088 full-load hours on an annual basis and a yield of 85%, which corresponds to 925 hours per year. On 31 March 2025, the total valued installed capacity will be 8 MWp. |
Energy price | The long-term energy price is determined based on an analysis of historical and expected long-term energy prices. In addition, 65% self-consumption and 35% injection into the grid are taken into account. The valuation on 31 March 2025 takes into account an energy tariff between EUR 270/MWh and EUR 290/MWh. A discount of 20% is applied to the market price. The applicable injection rates are between EUR 35/MWh and EUR 50/MWh. This results in an energy price between EUR 150/MWh and EUR 170/MWh. Any subsidies or green energy certificates are not taken into account. |
Inflation rate | Long-term inflation is based on the percentages applied to the real estate investments by the appraiser, which fell within the range of 2% - 2.5% for both Belgium and the Netherlands. |
Discount rate | The calculated annual net cash flows are discounted at a discount rate of 10%, which corresponds to the minimum return that investors expect for PV installations. This discount rate is derived from a market analysis by the appraiser of realized returns. |
Decline in yield | The solar panel installation has a yield decline of 0.5% per year and will be decommissioned after 25 years. This does not take into account any residual value of the installation or the cost of removing the installation. |
Maintenance and capex | Various operating costs related to the operation of the installation are taken into account. A fixed maintenance fee is charged for the maintenance of the roof and the installation. Insurance costs are also taken into account. If applicable, the right of superficies is included as a cost. |
Sensitivity of solar panels valuations
The sensitivity of fair value to changes in significant unobservable inputs used in determining the fair value of items classified in level 3 according to the IFRS fair value hierarchy is as follows (ceteris paribus):
Impact on fair value at: | ||
Non-observable inputs | decline | increase |
Implicit sunshine duration | negative | positive |
Solar panel efficiency | negative | positive |
Energy price | negative | positive |
Discount rate | positive | negative |
Maintenance and capex | positive | negative |
The effect of a 10% increase (decrease) in energy prices results in an increase (decrease) in the fair value of the solar panels of \u20ac 1.09 million. The effect of a 50 bps increase in the discount rate results in a decrease in the fair value of the solar panels by \u20ac 0.36 million. A 50 bps decrease in the discount rate results in an increase in the fair value of the solar panels by \u20ac 0.38 million.
Valuation process
The valuation process for real estate is determined by the CEO and the CFO after approval by the audit committee. They also decide on the independent real estate expert who will be appointed for the different parts of the real estate portfolio. Typically, contracts are entered into for a renewable term of three years. The fees of the real estate experts are determined for the term of their mandate and are not connected to the value of the properties that are the subject of the valuation.
An independent real estate expert is appointed for each country in order to ensure that the specific characteristics of each geographic region are reflected correctly. The real estate portfolio is valued on a quarterly basis. The valuation method (see above) is determined by the real estate expert. The valuation cycle in the course of a financial year consists of a visit to the property, after which a detailed report is drawn up, as well as three desktop reviews.
The reports of the independent real estate experts are based on:
\u2013Information provided by the company, such as current rents, terms and conditions of lease agreements, possible rent reductions, investments etc. This information originates from the financial and management system of the public BE-REIT and is governed by the company's general monitoring system.
\u2013Assumptions and valuation models put forward by real estate experts. The assumptions mainly relate to the market situation and concern yields and discount rates. They are based on their professional assessment and perception of the market.
The information provided to the real estate experts and the assumptions and valuation models used are checked by the company\u2019s finance manager and the public BE-REIT\u2019s management. All material differences (positive as well as negative) in absolute and relevant terms (versus the previous quarter and versus the previous year) are compared and analysed every quarter. On this basis, the management meets with the real estate experts with a view to accurately and fully reflecting all information regarding the various sites in the valuations. Finally, the final valuations are presented to the audit committee.
Impact of the sale of investment properties
Acquired real estate companies and investment properties
As per 31.03.2025
Acquisitions and in-house developments in financial year 2024-2025 resulted in an increase of the real estate portfolio by \u20ac 24.07 million. As a result of these investments, total rental income increased by \u20ac\u00a00.11\u00a0million in financial year 2024-2025. If the acquisitions had taken place on 1\u00a0April 2024, the rental income would have increased by \u20ac\u00a00,81\u00a0million. The operating result increased by \u20ac 0.10 million as a result of these investments. Please refer to the management report for more information on the structuring and financing of these acquisitions.
As per 31.03.2024
Acquisitions and in-house developments in financial year 2023-2024 resulted in an increase of the real estate portfolio by \u20ac 92.23 million. As a result of these investments, total rental income increased by \u20ac 13.67 million in financial year 2023-2024. If the acquisitions had taken place on 1\u00a0April\u00a02023, the rental income would have increased by \u20ac 5.48 million. The operating result increased by \u20ac 4.38 million as a result of these investments. Please refer to the management report for more information on the structuring and financing of these acquisitions.
Sold real estate companies and investment properties
As per 31.03.2025
Divestments were made during the 2024-2025 financial year for a net sales price of \u20ac 7.90 million, which resulted in a decrease in investment properties by \u20ac 3.84 million and a decrease in assets held for sale by \u20ac 3.50. Rental income declined by \u20ac 0.13 million as a result of these divestments. If the divestments had taken place on 1\u00a0April 2024, the rental income would have decreased by \u20ac 0.38 million.
As per 31.03.2024
Investment properties
Valuation at initial recognition
Investment properties comprise all real estate properties that are ready to be let. Investment properties are initially valued at acquisition cost, including additional expenses and non-deductible VAT. The exit tax, owed by companies over which the public BE-REIT acquires direct or indirect control, is furthermore in principle deducted from the value of the underlying property as it concerns a tax on the latent capital gain existing in the acquired company prior to the acquisition unless these companies do not qualify for a merger with the public BE-REIT (as decided by the board of directors). The commissions related to the acquisition of buildings are regarded as additional costs of the acquisition and are added to the acquisition cost.
If a property is acquired through non-monetary contributions, any third-party costs directly attributable to the issuance of new shares shall be deducted from equity. The contributed properties are valued at contribution value at initial recognition.
The user rights recognised in the balance sheet for concessions, long leases or similar lease agreements (following the entry into force of IFRS 16) are also regarded as a real estate investment.
Valuation after initial recognition
At the end of each quarter, an independent real estate expert shall provide an exact assessment of the following elements:
\u2013the immovable properties, the properties that are immovable by their intended use, and the rights in rem on immovable properties held by Retail Estates nv or, where appropriate, by a subsidiary it controls;
\u2013the option rights on immovable properties held by Retail Estates nv or, where appropriate, by a subsidiary it controls, as well as the immovable properties to which these rights apply;
\u2013the contractual rights by which one or more immovable property assets are leased to Retail Estates nv or, where appropriate, to a subsidiary it controls, including the underlying immovable property.
The experts perform their assessments in accordance with national and international standards and their application procedures, including those in the field of the valuation of Belgian regulated real estate companies (pursuant to the provisional decrees; the experts reserve the right to adapt the valuation in the event of any amendments to the decrees).
Fair value is specifically defined as the price that would be received upon sale of an asset or that would have to be paid upon the transfer of an obligation in an arm\u2019s length transaction between market parties on the valuation date.
From the point of view of the seller, it must be construed minus the transaction taxes. The estimated amount of the transaction taxes is immediately deducted from the results at initial recognition.
Comments on the real estate transfer tax in Belgium
The transfer of ownership of real estate is subject to transfer taxes in Belgium. The amount of these taxes depends on the manner of transfer, the capacity of the buyer and the geographical location of the property. The first two elements, and hence the full amount of the taxes due, are therefore only known when the transfer of ownership has been completed. The different transfer of ownership possibilities and the corresponding taxes are:
\u2013real estate sales agreements: 12.50% for properties located in Brussels-Capital Region and in the Walloon Region, 12% for properties located in the Flemish Region;
\u2013sale of real estate under the broker system: 4% to 8% depending on the Region;
\u2013long-term lease agreements for real estate (up to 50 years for the right of superficies and up to 99 years for the long-term lease right): 5%
\u2013real estate sales agreements where the purchaser is a public body (e.g. an entity of the European Union, the Federal Government, a regional government or a foreign government): exemption from duties;
\u2013non-monetary contribution of real estate in return for the issuance of new shares to the benefit of the contributor: exemption from duties;
\u2013sales agreement for shares of a real estate company: absence of duties;
\u2013merger, demerger and other company reorganisations: absence of duties; etc.
As a result, the actual percentage of the transfer taxes varies from 0% to 12.50%; it is furthermore impossible to predict which percentage is applicable to the transfer of a given Belgian property before the actual transfer takes place.
In January 2006, all experts involved in determining the value of Belgian BE-REITs were asked to determine a weighted average percentage of the actual taxes for the real estate portfolios of the BE-REITs. For transactions of properties with a value of over \u20ac 2.50 million, and in view of the range of methods for transferring ownership (see above), the experts calculated the weighted average taxes at 2.50% based on a representative sample of 220 market transactions with a total worth of \u20ac 6 billion that took place between 2003 and 2005. As regards transactions involving buildings of which the total value is lower than \u20ac 2.50 million, transfer duties are applied depending on the Region in which the premises are located. It was decided to adjust this percentage by multiples of 0.5% if necessary.
In 2016, an update of this calculation was made according to the methodology used in 2006 based on a sample of 305 large or institutional transactions (threshold of \u20ac 2.5 million) that occurred between 2013 and the 1st quarter of 2016 (this is 70% or 8.18 billion of the estimated total number of investment transactions during this period). The experts came to the conclusion that the 0.5% threshold was not exceeded. Consequently, the weighted average of 2.5% was retained.
Retail Estates nv considers its real estate portfolio as a whole which can be disposed of as a whole or as a limited number of larger parts. Retail Estates manages its real estate at portfolio level whenever possible (\u201cretail cluster and retail parks\u201d, see management report and chapter \u201coverview of real estate portfolio\u201d in the real estate report for an overview of the clusters). Consequently, the fair value is determined by deducting 2.5% from the value of the properties (in accordance with the valuation at \u201cfair value\u201d of its valuation appraisers Cushman & Wakefield, CBRE, Colliers and Stadim). In accordance with its strategy, Retail Estates does in principle not have the intention to sell individual properties within the clusters with an investment value below \u20ac 2.5 million.
Comments on the real estate transfer tax in the Netherlands
As from 1 January 2023, the Dutch real estate transfer tax is 10.4% (8% since 1 January 2021, previously 6%). For the other costs (e.g. notary fees) Retail Estates charges between 0.08% and 1% extra.
Any gains or losses resulting from fluctuations in the fair value of an investment property are recognised in the income statement in the period in which they arise and assigned to the reserves for the balance of fluctuations in the fair value of real estate properties during the appropriation of profits.
Expenditure for works on investment properties
The expenditure for works on investment properties is charged to the operating property result if the expenditure does not have a positive effect on the expected future economic benefits, and is capitalised if it substantially increases the expected economic benefits it brings to the entity. There are two major types of expenditure:
a)costs of maintenance and repairs to roof coverings and car parks: if this involves a complete roof renovation (including new insulation in line with the company's sustainability strategy), these costs are capitalised and therefore added to the fair value of the investment property. Pure maintenance and repair work is charged to the operating result;
b)renewal of windows: investments made as part of the company's sustainability strategy (which significantly improve the existing level of comfort) are capitalised and added to the fair value of the investment property;
a)the costs of major transformation and renovation works: transformations are occasional projects that add an additional function to the building or considerably improve the existing comfort. These costs relate to materials, fees, contracting works and the like. Internal management and supervisory costs are not capitalised. As soon as they have commenced, such works are included in the assessed value of the building in question (initially on a provisional basis and then permanently following a visit by the real estate expert). Any works that remain to be done are deducted from the valuation. Once these works have been completed, the costs are capitalised and hence added to the fair value of the investment properties.
Disposal of investment properties
The gains or losses realised from the sale of an investment property are classified as \u201cResult from sales of investment properties\u201d in the income statement and are allocated to the result carried forward upon the appropriation of results. The commissions paid for sales and the liabilities resulting from transactions are deducted from the selling price in order to determine the gain or loss realised.
Non-current assets under construction
Under the adjusted IAS 40 standard, non-current assets under construction are included in the investment properties. If purchased, they are valued at the acquisition value, including incidental costs and non-deductible VAT.
If the Group believes that the fair value of the investment properties under development cannot be determined in a reliable manner but assumes it will be possible to determine the fair value once the properties have been contracted, licensed and rented, the investment properties under development will be registered at
cost price until the fair value can be determined (when they have been contracted, licensed and rented or until construction is completed (whichever happens first)) in accordance with IAS 40.53. This fair value is based on the valuation by the real estate expert after deducting the work that remains to be performed.
A non-current asset under construction can relate to a plot of land, a building to be demolished or an existing building that needs to be given a new purpose, requiring considerable renovation work to realise the desired purpose.
Real estate certificates
Valuation
1.General principle
If the holder of the certificates does not have a material interest (more than 75%) in a real estate certificate, the certificates shall be booked on the closing date at the weighted average quoted price during the preceding 30 days and classified as \u201cnon-current financial assets\u201d.
The aforementioned rule does not apply if, on the basis of publicly available information and the issue conditions for the real estate certificate, a net asset value is noted that is substantially below the stock market price. The value is then limited to the net asset value.
2.Ownership of material interest (more than 75%) in certificates issued (as of 31\u00a0March\u00a02025 only applicable to the \u201cDistriLand\u201d real estate certificates)
The quoted price of these real estate certificates as listed on the Euronext \u2013 Second Market cannot be considered as a reliable reference given the limited liquidity of this real estate certificate. Retail Estates nv\u2019s policy is to revalue its real estate certificates on every closing date in view of:
a)the fair value of the immovable properties owned by the issuer by analogy with the valuation of the company\u2019s own real properties. This is done on the basis of a periodic valuation by a real estate expert hired jointly by Retail Estates nv and Immobili\u00e8re Distri-Land nv. Where one or more buildings are sold by the real estate certificate issuer, the sales price shall be used as valuation until the distribution of the sale\u2019s proceeds;
b)the contractual rights of the holder of the real estate certificate in compliance with the prospectus that was published at the time of issue of the real estate certificate.
Retail Estates nv only invests in certificates issued for the financing of out-of-town retail real estate. The real estate owned by the issuer is the type of out-of-town retail real estate in which Retail Estates nv aims to invest. Although Retail Estates nv is not the legal owner of this real estate, it considers itself to be the economic beneficiary in proportion to its contractual rights in ownership. In addition, an investment in real estate certificates is regarded as an investment in real estate pursuant to Article 2, sub. 5\u00b0, x, of the BE-REIT Act.
Taking these considerations into account, the certificates are classified as real estate investments at their acquisition value, including additional expenses. Any gains or losses resulting from fluctuations in the fair value of an investment property are recognised in the income statement in the period in which they arise and assigned to the unavailable reserves at the time of the appropriation of profits. On 31\u00a0March\u00a02025, the value of the investment properties related to the Distri-Land certificates amounts to \u20ac 19.45 million (\u20ac 17.35 million on 31\u00a0March\u00a02024) compared to a total portfolio of Retail Estates of \u20ac 2,069.54 million.
Processing of coupons\u00a0
1.Processing of current operating result
As a holder of real estate certificates, Retail Estates nv has a contractual right, in proportion to the number of real estate certificates in its possession, to a share of the operating result realised by the issuer. This result is calculated by deducting the operating and maintenance expenses from the total rental income collected. The entire decrease or increase in value is recognised by re-estimating the value of the real estate certificate. As a result, no part of the coupon relating to the operating result should be regarded as compensation for any reduction in value of the issuer\u2019s buildings. The entire coupon is therefore treated as net rental income and is classified as turnover.
2.Processing of the liquidation balance in case of sale of real estate
Whenever a particular property in the issuer\u2019s portfolio is sold, the following applies:
Comments on the real estate transfer tax in Belgium
The transfer of ownership of real estate is subject to transfer taxes in Belgium. The amount of these taxes depends on the manner of transfer, the capacity of the buyer and the geographical location of the property. The first two elements, and hence the full amount of the taxes due, are therefore only known when the transfer of ownership has been completed. The different transfer of ownership possibilities and the corresponding taxes are:
\u2013real estate sales agreements: 12.50% for properties located in Brussels-Capital Region and in the Walloon Region, 12% for properties located in the Flemish Region;
\u2013sale of real estate under the broker system: 4% to 8% depending on the Region;
\u2013long-term lease agreements for real estate (up to 50 years for the right of superficies and up to 99 years for the long-term lease right): 5%
\u2013real estate sales agreements where the purchaser is a public body (e.g. an entity of the European Union, the Federal Government, a regional government or a foreign government): exemption from duties;
\u2013non-monetary contribution of real estate in return for the issuance of new shares to the benefit of the contributor: exemption from duties;
\u2013sales agreement for shares of a real estate company: absence of duties;
\u2013merger, demerger and other company reorganisations: absence of duties; etc.
As a result, the actual percentage of the transfer taxes varies from 0% to 12.50%; it is furthermore impossible to predict which percentage is applicable to the transfer of a given Belgian property before the actual transfer takes place.
In January 2006, all experts involved in determining the value of Belgian BE-REITs were asked to determine a weighted average percentage of the actual taxes for the real estate portfolios of the BE-REITs. For transactions of properties with a value of over \u20ac 2.50 million, and in view of the range of methods for transferring ownership (see above), the experts calculated the weighted average taxes at 2.50% based on a representative sample of 220 market transactions with a total worth of \u20ac 6 billion that took place between 2003 and 2005. As regards transactions involving buildings of which the total value is lower than \u20ac 2.50 million, transfer duties are applied depending on the Region in which the premises are located. It was decided to adjust this percentage by multiples of 0.5% if necessary.
In 2016, an update of this calculation was made according to the methodology used in 2006 based on a sample of 305 large or institutional transactions (threshold of \u20ac 2.5 million) that occurred between 2013 and the 1st quarter of 2016 (this is 70% or 8.18 billion of the estimated total number of investment transactions during this period). The experts came to the conclusion that the 0.5% threshold was not exceeded. Consequently, the weighted average of 2.5% was retained.
Retail Estates nv considers its real estate portfolio as a whole which can be disposed of as a whole or as a limited number of larger parts. Retail Estates manages its real estate at portfolio level whenever possible (\u201cretail cluster and retail parks\u201d, see management report and chapter \u201coverview of real estate portfolio\u201d in the real estate report for an overview of the clusters). Consequently, the fair value is determined by deducting 2.5% from the value of the properties (in accordance with the valuation at \u201cfair value\u201d of its valuation appraisers Cushman & Wakefield, CBRE, Colliers and Stadim). In accordance with its strategy, Retail Estates does in principle not have the intention to sell individual properties within the clusters with an investment value below \u20ac 2.5 million.
Comments on the real estate transfer tax in the Netherlands
As from 1 January 2023, the Dutch real estate transfer tax is 10.4% (8% since 1 January 2021, previously 6%). For the other costs (e.g. notary fees) Retail Estates charges between 0.08% and 1% extra.
Any gains or losses resulting from fluctuations in the fair value of an investment property are recognised in the income statement in the period in which they arise and assigned to the reserves for the balance of fluctuations in the fair value of real estate properties during the appropriation of profits.
Exit tax
Exit tax is the corporate income tax on capital gains arising from the merger of a BE-REIT with a company that is not a BE-REIT. When this company first enters the consolidation scope of the Group, a provision for exit tax liabilities is recorded.
Non-current assets under construction
Under the adjusted IAS 40 standard, non-current assets under construction are included in the investment properties. If purchased, they are valued at the acquisition value, including incidental costs and non-deductible VAT.
If the Group believes that the fair value of the investment properties under development cannot be determined in a reliable manner but assumes it will be possible to determine the fair value once the properties have been contracted, licensed and rented, the investment properties under development will be registered at
cost price until the fair value can be determined (when they have been contracted, licensed and rented or until construction is completed (whichever happens first)) in accordance with IAS 40.53. This fair value is based on the valuation by the real estate expert after deducting the work that remains to be performed.
A non-current asset under construction can relate to a plot of land, a building to be demolished or an existing building that needs to be given a new purpose, requiring considerable renovation work to realise the desired purpose.
Other tangible non-current assets
Tangible non-current assets other than land and buildings the use of which is limited in time are valued at acquisition cost and then depreciated over their expected useful life using the straight-line method.
In the financial year of the investment, depreciation is recorded in proportion to the number of months that the asset was in use.
The following annual depreciation and amortisation percentages apply:
Facilities, machinery and equipment | 6,66 - 20% |
Furniture | 3,03 - 20% |
Vehicles | 20 - 33,33% |
IT equipment | 20 - 33,33% |
Standard software | 33,33% |
Customised software | 6,66 - 33,33% |
Own use properties | 3,03% |
Technical equipment | 6,66% |
Other tangible non-current assets
Tangible non-current assets other than land and buildings the use of which is limited in time are valued at acquisition cost and then depreciated over their expected useful life using the straight-line method.
In the financial year of the investment, depreciation is recorded in proportion to the number of months that the asset was in use.
The following annual depreciation and amortisation percentages apply:
Facilities, machinery and equipment | 6,66 - 20% |
Furniture | 3,03 - 20% |
Vehicles | 20 - 33,33% |
IT equipment | 20 - 33,33% |
Standard software | 33,33% |
Customised software | 6,66 - 33,33% |
Own use properties | 3,03% |
Technical equipment | 6,66% |
Investment and amortisation table (in \u20ac 000) | Intangible non-current assets | Other tangible non-current assets | ||
31.03.2025 | 31.03.2024 | 31.03.2025 | 31.03.2024 | |
Acquisition value | ||||
Balance at the end of the previous financial year | 10,253 | 6,919 | 8,446 | 7,855 |
Acquisitions | 731 | 3,334 | 429 | 705 |
Transfers and disposals of assets | -208 | -115 | ||
Transfers to/from other accounts | ||||
Balance at the end of the financial year | 10,985 | 10,253 | 8,667 | 8,446 |
Amortisation and impairment losses | ||||
Balance at the end of the previous financial year | 1,379 | 727 | 1,995 | 1,516 |
Balance of acquired companies | ||||
Amortisation3 | 909 | 651 | 670 | 593 |
Transfers and disposals of assets | -161 | -113 | ||
Transfers to/from other accounts | ||||
Balance at the end of the financial year | 2,288 | 1,379 | 2,504 | 1,995 |
Net book value | 8,697 | 8,875 | 6,163 | 6,450 |
3 Amortisation of non-current intangible assets and other non-current tangible assets are recognised in the income statement under \u2018property management costs\u2019 and 'corporate operating costs'. The depreciation costs on cars are included in the personnel costs. |
Facilities, machinery and equipment | 6,66 - 20% |
Furniture | 3,03 - 20% |
Vehicles | 20 - 33,33% |
IT equipment | 20 - 33,33% |
Standard software | 33,33% |
Customised software | 6,66 - 33,33% |
Own use properties | 3,03% |
Technical equipment | 6,66% |
Investment and amortisation table (in \u20ac 000) | Intangible non-current assets | Other tangible non-current assets | ||
31.03.2025 | 31.03.2024 | 31.03.2025 | 31.03.2024 | |
Acquisition value | ||||
Balance at the end of the previous financial year | 10,253 | 6,919 | 8,446 | 7,855 |
Acquisitions | 731 | 3,334 | 429 | 705 |
Transfers and disposals of assets | -208 | -115 | ||
Transfers to/from other accounts | ||||
Balance at the end of the financial year | 10,985 | 10,253 | 8,667 | 8,446 |
Amortisation and impairment losses | ||||
Balance at the end of the previous financial year | 1,379 | 727 | 1,995 | 1,516 |
Balance of acquired companies | ||||
Amortisation3 | 909 | 651 | 670 | 593 |
Transfers and disposals of assets | -161 | -113 | ||
Transfers to/from other accounts | ||||
Balance at the end of the financial year | 2,288 | 1,379 | 2,504 | 1,995 |
Net book value | 8,697 | 8,875 | 6,163 | 6,450 |
3 Amortisation of non-current intangible assets and other non-current tangible assets are recognised in the income statement under \u2018property management costs\u2019 and 'corporate operating costs'. The depreciation costs on cars are included in the personnel costs. |
Lease agreement
In the limited cases where Retail Estates is the lessee in lease agreements (and these agreements are not among the exceptions referred to in IFRS 16), Retail Estates, in its capacity as lessee, will recognize a user right and corresponding liability in the consolidated annual accounts. Subsequently all user rights qualifying as real estate investments are valued at fair value in accordance with the valuation rules described in the section relating to real estate investments. The minimum lease payments are recorded partly as financing costs and partly as repayment of the outstanding liability. The financing cost is recognised in the item \u201cChanges in fair value of financial assets and liabilities\u201d.
If there are indications that an asset may have suffered an impairment loss, the book value is compared with the realisable value.
If the book value is higher than the realisable value, an impairment loss is recognised.
When other tangible non-current assets are sold or retired, their acquisition value and any related depreciations cease to be recognised in the balance sheet and the realised gains or losses are recognised in the income statement.
Lease agreement
In the limited cases where Retail Estates is the lessee in lease agreements (and these agreements are not among the exceptions referred to in IFRS 16), Retail Estates, in its capacity as lessee, will recognize a user right and corresponding liability in the consolidated annual accounts. Subsequently all user rights qualifying as real estate investments are valued at fair value in accordance with the valuation rules described in the section relating to real estate investments. The minimum lease payments are recorded partly as financing costs and partly as repayment of the outstanding liability. The financing cost is recognised in the item \u201cChanges in fair value of financial assets and liabilities\u201d.
If there are indications that an asset may have suffered an impairment loss, the book value is compared with the realisable value.
If the book value is higher than the realisable value, an impairment loss is recognised.
When other tangible non-current assets are sold or retired, their acquisition value and any related depreciations cease to be recognised in the balance sheet and the realised gains or losses are recognised in the income statement.
If there are indications that an asset may have suffered an impairment loss, the book value is compared with the realisable value.
If the book value is higher than the realisable value, an impairment loss is recognised.
If there are indications that an asset may have suffered an impairment loss, the book value is compared with the realisable value.
If the book value is higher than the realisable value, an impairment loss is recognised.
Trade receivables and other non-current assets
Trade receivables and other non-current assets are valued at fair value at initial recognition and are subsequently valued at amortised cost on the basis of the effective interest rate method. A write-down is recorded if uncertainty exists concerning the collectability of the receivable at maturity.
Trade receivables and other non-current assets
Trade receivables and other non-current assets are valued at fair value at initial recognition and are subsequently valued at amortised cost on the basis of the effective interest rate method. A write-down is recorded if uncertainty exists concerning the collectability of the receivable at maturity.
Trade receivables and doubtful debtors
Trade receivables (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Trade receivables | 16,745 | 16,846 |
Invoices to be issued | 2,285 | 1,861 |
Doubtful debtors | -4,859 | -4,563 |
Income to be collected | 0 | 0 |
Coupon real estate certificats | ||
\u00a0 Distri-Land | 250 | 250 |
Other | 206 | 233 |
Total trade receivables | 14,627 | 14,627 |
Outstanding trade receivables, after deduction of doubtful debtors and advance payments, amount to \u20ac\u00a012.09\u00a0million, of which \u20ac 0.20 million relate to the revolving fund and the reserve fund and of which \u20ac\u00a011.32\u00a0million have not yet reached their maturity date. Taking into account the guarantees obtained \u2013 both rental guarantees and bank guarantees \u2013 the credit risk on trade receivables is very limited on 31\u00a0March\u00a02025.
The total prebilling balance amounts to \u20ac 11.09 million on 31\u00a0March\u00a02025 compared to \u20ac 11.86 million last year. The prebilling relates to unexpired rents billed for periods after 31\u00a0March\u00a02025.
For more details about the Distri-Land coupon, please refer to the chapter \u2018Real estate certificates\u2019 in the valuation rules mentioned earlier in this Annual Financial Report.
Impairment on doubtful debtors - roll forward (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
At the end of the previous financial year | -4,562 | -4,025 |
From acquired companies | 0 | 0 |
Provisions | -2,029 | -1,591 |
Recoveries | 2,078 | 1,252 |
Write-offs | -345 | -199 |
At the end of the financial year | -4,859 | -4,562 |
The provision for doubtful debtors is established as follows: the rental arrears list is closely monitored internally. Based on a management assessment, or if obvious and demonstrable reasons exist to suggest that the claim cannot be recovered, a provision is created. Trade receivables are payable in cash. The table below shows an overview of the age structure of the trade receivables for which no value reduction was registered.
Trade receivables - Ageing (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Due < 30 days | 234 | 469 |
Due 30-90 days | 15 | -5 |
Due > 90 days | 317 | 292 |
Not due | 11,319 | 11,528 |
Tax receivables and other current assets (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Taxes | ||
VAT receivable | ||
Witholding tax receivable | 4 | 0 |
Property tax receivable | 1,970 | 1,995 |
Salary and social security | ||
Other | 866 | 5,316 |
Total tax receivables and other current assets | 2,841 | 7,311 |
Trade receivables and other non-current assets
Trade receivables and other non-current assets are valued at fair value at initial recognition and are subsequently valued at amortised cost on the basis of the effective interest rate method. A write-down is recorded if uncertainty exists concerning the collectability of the receivable at maturity.
Trade receivables and other non-current assets
Trade receivables and other non-current assets are valued at fair value at initial recognition and are subsequently valued at amortised cost on the basis of the effective interest rate method. A write-down is recorded if uncertainty exists concerning the collectability of the receivable at maturity.
IFRS 13
IFRS 13 introduced a uniform framework for valuation at fair value and the provision of information on valuation at fair value, where this valuation principle is obligatory or permitted on the basis of other IFRS standards. In this context, fair value is specifically defined as the price that would be received upon sale of an asset or that would
have to be paid upon the transfer of an obligation in an arm\u2019s length transaction between market parties on the valuation date.
Investment properties are recorded at fair value. Fair value is determined on the basis of one of the following levels of the IFRS 13 hierarchy:
\u2013Level 1: valuation based on quoted prices in active markets
\u2013Level 2: valuation based on directly or indirectly observable (external) inputs
\u2013Level 3: valuation entirely or partly based on unobservable (external) inputs
Investment properties fall under level 3 according to the IFRS 13 classification.
Valuation methodology investment properties
Investment properties are recorded on the basis of appraisal reports drawn up by independent expert real estate appraisers. Investment properties are valued at fair value. This fair value is based on the market value (i.e. corrected for transfer tax as described in the \u201cAccounting policies\u201d described above in this Annual Financial Report).
The methods used by the independent real estate appraisers are the following:
The investment value is generally calculated on the basis of a GIY (Gross Initial Yield) capitalisation of the current contractual basic annual rent, taking into account possible corrections like estimated market rental value, vacancy, step-rents, rent-free periods etc. The GIY depends on current output on the investment market, taking into account the location, the suitability of the site, the quality of the tenant and the building at the moment of the valuation.
In case of buildings where the property rights are divided in bare ownership on the one hand and rights of superficies or long lease rights on the other, the value of the superficies or long lease rights is determined by discounting (Discounted Cash Flow) the net rental income, i.e. after deduction of the superficies or ground rent, until the end of the long lease or superficies agreement.
The value of the bare ownership is determined by updating (Discounted Cash Flow) the periodical superficies or leasehold rent until the expiry date of this agreement.
Unobservable inputs for the determination of the fair value:
31.03.2025 | 31.03.2024 | |||||
Country | Method | Input | Range | Weighted average | Range | Weighted average |
Belgium | Gross Initial Yield-capitalization | Capitalisation rate (%) | 5,25%-10% | 6.77% | 5,25% - 10 % | 6.64% |
Annual rent (EUR/m\u00b2) | 25 - 250 | 113.93 | 25 - 250 | 110.75 | ||
Remaining lease duration (expiry date) (in months) | 0-540m | 98m | 0-552m | 92m | ||
Remaining lease duration (first break option) (in months) | 0-192m | 24m | 0-204m | 19m | ||
Vacancy (in months) | 0m - 12 m | / | 0m - 12m | / | ||
DCF (Discounted Cashflow) | Discount rate (%) | 5,75%-10% | 6.65% | 5,7% - 10,00% | 6.80% | |
Annual rent (EUR/m\u00b2) | 25 - 250 | 117.66 | 50-250 | 112.21 | ||
Remaining lease duration (expiry date) (in months) | 0-456m | 91m | 0-468m | 90m | ||
Remaining lease duration (first break option) (in months) | 0-456m | 32m | 0-468m | 38m | ||
Vacancy (in months) | 0m-12m | / | 0m - 12 m | / | ||
The Netherlands | Gross Initial Yield-capitalization | Capitalisation rate (%) | 5,21%-10,51% | 6.80% | 5,58%-10,36% | 8.27% |
Annual market rent (EUR/m\u00b2) | 35 - 364 | 112.36 | 50 - 351 | 107.23 | ||
Remaining lease duration (expiry date) (in months) | 0-156m | 47m | 0-168m | 43m | ||
Remaining lease duration (first break option) (in months) | 0-156m | 44m | 0-168m | 43m | ||
Vacancy (in months) | 0-12m | / | 0-12m | / |
Sensitivity of investment property valuations
The sensitivity of the fair value in relation to changes in the significant unobservable inputs used to determine the fair value of the properties classified in level 3 (in accordance with the IFRS fair value hierarchy) is the following (ceteris paribus):
\u2013the effect of the increase (decrease) of the rental income by 1% leads to an increase (a decrease) in the portfolio\u2019s fair value by \u20ac\u00a020.70 million.
\u2013The effect of an increase (decrease) of the rental income by 2% or 5% is linear. The effect of an increase in the yield by 100 bps leads to a decrease in the portfolio\u2019s fair value by \u20ac 263.64 million.
\u2013A decrease in the yield by 100 bps leads to an increase in the portfolio\u2019s fair value by \u20ac 353.77 million.
Valuation methodology solar panels
Within the framework of ESG objectives, investments are being made in solar panels which, in accordance with GVV legislation, must be valued by a recognized real estate expert. The value of the solar panels is determined using a theoretical model based on the individual potential electricity production of each installation. They are then valued on the basis of the variable market price for electricity at the time of valuation. Hereby abstraction is made of the current operating conditions in order to arrive at a kind of estimated rental value for the installations. By applying a return that would be paid if the installation were taken over by third parties, the market value is determined.
This is an overview of the solar panel investments:
Country | Year of construction | Fair value (\u20ac) | Rental income (\u20ac) | Acquisition value (\u20ac) |
Belgium | 2017-2024 | 6,987,365.46 | 463,280.00 | 4,916,467.48 |
The Netherlands | 2017-2022 | 2,414,035.04 | 102,350.00 | 1,120,775.28 |
Non-observable inputs in determining fair value:
Valuation methodology | Discounted cash flow |
Implicit sunshine duration | The valuation model takes into account 1,088 full-load hours on an annual basis and a yield of 85%, which corresponds to 925 hours per year. On 31 March 2025, the total valued installed capacity will be 8 MWp. |
Energy price | The long-term energy price is determined based on an analysis of historical and expected long-term energy prices. In addition, 65% self-consumption and 35% injection into the grid are taken into account. The valuation on 31 March 2025 takes into account an energy tariff between EUR 270/MWh and EUR 290/MWh. A discount of 20% is applied to the market price. The applicable injection rates are between EUR 35/MWh and EUR 50/MWh. This results in an energy price between EUR 150/MWh and EUR 170/MWh. Any subsidies or green energy certificates are not taken into account. |
Inflation rate | Long-term inflation is based on the percentages applied to the real estate investments by the appraiser, which fell within the range of 2% - 2.5% for both Belgium and the Netherlands. |
Discount rate | The calculated annual net cash flows are discounted at a discount rate of 10%, which corresponds to the minimum return that investors expect for PV installations. This discount rate is derived from a market analysis by the appraiser of realized returns. |
Decline in yield | The solar panel installation has a yield decline of 0.5% per year and will be decommissioned after 25 years. This does not take into account any residual value of the installation or the cost of removing the installation. |
Maintenance and capex | Various operating costs related to the operation of the installation are taken into account. A fixed maintenance fee is charged for the maintenance of the roof and the installation. Insurance costs are also taken into account. If applicable, the right of superficies is included as a cost. |
Sensitivity of solar panels valuations
The sensitivity of fair value to changes in significant unobservable inputs used in determining the fair value of items classified in level 3 according to the IFRS fair value hierarchy is as follows (ceteris paribus):
Impact on fair value at: | ||
Non-observable inputs | decline | increase |
Implicit sunshine duration | negative | positive |
Solar panel efficiency | negative | positive |
Energy price | negative | positive |
Discount rate | positive | negative |
Maintenance and capex | positive | negative |
The effect of a 10% increase (decrease) in energy prices results in an increase (decrease) in the fair value of the solar panels of \u20ac 1.09 million. The effect of a 50 bps increase in the discount rate results in a decrease in the fair value of the solar panels by \u20ac 0.36 million. A 50 bps decrease in the discount rate results in an increase in the fair value of the solar panels by \u20ac 0.38 million.
Valuation process
The valuation process for real estate is determined by the CEO and the CFO after approval by the audit committee. They also decide on the independent real estate expert who will be appointed for the different parts of the real estate portfolio. Typically, contracts are entered into for a renewable term of three years. The fees of the real estate experts are determined for the term of their mandate and are not connected to the value of the properties that are the subject of the valuation.
An independent real estate expert is appointed for each country in order to ensure that the specific characteristics of each geographic region are reflected correctly. The real estate portfolio is valued on a quarterly basis. The valuation method (see above) is determined by the real estate expert. The valuation cycle in the course of a financial year consists of a visit to the property, after which a detailed report is drawn up, as well as three desktop reviews.
The reports of the independent real estate experts are based on:
\u2013Information provided by the company, such as current rents, terms and conditions of lease agreements, possible rent reductions, investments etc. This information originates from the financial and management system of the public BE-REIT and is governed by the company's general monitoring system.
\u2013Assumptions and valuation models put forward by real estate experts. The assumptions mainly relate to the market situation and concern yields and discount rates. They are based on their professional assessment and perception of the market.
The information provided to the real estate experts and the assumptions and valuation models used are checked by the company\u2019s finance manager and the public BE-REIT\u2019s management. All material differences (positive as well as negative) in absolute and relevant terms (versus the previous quarter and versus the previous year) are compared and analysed every quarter. On this basis, the management meets with the real estate experts with a view to accurately and fully reflecting all information regarding the various sites in the valuations. Finally, the final valuations are presented to the audit committee.
Impact of the sale of investment properties
Non-current assets or groups of assets held for sale
These assets concern real estate for which the book value will primarily be realised by the sale of the assets and not by further letting. Like the investment properties (see above), these assets are recognised at fair value, which is equal to investment value less transaction fees.
A property is recorded as an asset held for sale if a declaration of intent to sell has been signed.
Investment and revaluation table (in \u20ac 000) | Investment properties1 | Assets held for sale | Total | |||
31.03.2025 | 31.03.2024 | 31.03.2025 | 31.03.2024 | 31.03.2025 | 31.03.2024 | |
Balance at the end of the previous financial year | 2,028,317 | 1,888,562 | 8,552 | 8,561 | 2,036,870 | 1,897,123 |
Acquisition through purchase of real estate companies | 0 | 3,200 | 0 | 0 | 3,200 | |
Acquisition through contribution real estate companies | 0 | 0 | 0 | 0 | 0 | |
Capitalised interest cost | 95 | 101 | 0 | 95 | 101 | |
Acquisiton of investment properties | 12,859 | 85,115 | 0 | 12,859 | 85,115 | |
Investments that result from subsequent expenses included in the carrying amount of the asset | 8,480 | 8,407 | 0 | 8,480 | 8,407 | |
Contribution of investment properties | 0 | 0 | 0 | 0 | 0 | |
Disposal through sale of real estate companies | 0 | 0 | 0 | 0 | 0 | |
Disposal of investment properties | -3,841 | -8,442 | -3,503 | -4,210 | -7,345 | -12,652 |
Transfers to assets held for sale | -13,408 | -4,201 | 13,408 | 4,201 | 0 | 0 |
IFRS 16 | -217 | 230 | 0 | -217 | 230 | |
Other transfers | 0 | 0 | 0 | 0 | 0 | |
Acquisiton of non-current assets under construction | 9,418 | 4,156 | 0 | 9,418 | 4,156 | |
Completion of non-current assets under construction to portfolio | 11,207 | 3,914 | 0 | 11,207 | 3,914 | |
Transfer of non-current assets under construction to portfolio | -11,207 | -3,914 | 0 | -11,207 | -3,914 | |
Transfer of fixed assets under construction to investments in associated companies | 0 | 0 | 0 | 0 | 0 | |
Change in fair value (+/-) | 27,834 | 51,190 | 0 | 27,834 | 51,190 | |
At the end of the financial year | 2,069,537 | 2,028,317 | 18,457 | 8,552 | 2,087,995 | 2,036,870 |
OTHER INFORMATIONS | ||||||
Investment value of the property | 2,179,677 | 2,134,531 | 18,918 | 8,766 | 2,198,595 | 2,143,297 |
1 Including non-current assets under construction (IAS 40). |
IFRS 13
IFRS 13 introduced a uniform framework for valuation at fair value and the provision of information on valuation at fair value, where this valuation principle is obligatory or permitted on the basis of other IFRS standards. In this context, fair value is specifically defined as the price that would be received upon sale of an asset or that would
have to be paid upon the transfer of an obligation in an arm\u2019s length transaction between market parties on the valuation date.
Investment properties are recorded at fair value. Fair value is determined on the basis of one of the following levels of the IFRS 13 hierarchy:
\u2013Level 1: valuation based on quoted prices in active markets
\u2013Level 2: valuation based on directly or indirectly observable (external) inputs
\u2013Level 3: valuation entirely or partly based on unobservable (external) inputs
Investment properties fall under level 3 according to the IFRS 13 classification.
Valuation methodology investment properties
Investment properties are recorded on the basis of appraisal reports drawn up by independent expert real estate appraisers. Investment properties are valued at fair value. This fair value is based on the market value (i.e. corrected for transfer tax as described in the \u201cAccounting policies\u201d described above in this Annual Financial Report).
The methods used by the independent real estate appraisers are the following:
The investment value is generally calculated on the basis of a GIY (Gross Initial Yield) capitalisation of the current contractual basic annual rent, taking into account possible corrections like estimated market rental value, vacancy, step-rents, rent-free periods etc. The GIY depends on current output on the investment market, taking into account the location, the suitability of the site, the quality of the tenant and the building at the moment of the valuation.
In case of buildings where the property rights are divided in bare ownership on the one hand and rights of superficies or long lease rights on the other, the value of the superficies or long lease rights is determined by discounting (Discounted Cash Flow) the net rental income, i.e. after deduction of the superficies or ground rent, until the end of the long lease or superficies agreement.
The value of the bare ownership is determined by updating (Discounted Cash Flow) the periodical superficies or leasehold rent until the expiry date of this agreement.
Unobservable inputs for the determination of the fair value:
31.03.2025 | 31.03.2024 | |||||
Country | Method | Input | Range | Weighted average | Range | Weighted average |
Belgium | Gross Initial Yield-capitalization | Capitalisation rate (%) | 5,25%-10% | 6.77% | 5,25% - 10 % | 6.64% |
Annual rent (EUR/m\u00b2) | 25 - 250 | 113.93 | 25 - 250 | 110.75 | ||
Remaining lease duration (expiry date) (in months) | 0-540m | 98m | 0-552m | 92m | ||
Remaining lease duration (first break option) (in months) | 0-192m | 24m | 0-204m | 19m | ||
Vacancy (in months) | 0m - 12 m | / | 0m - 12m | / | ||
DCF (Discounted Cashflow) | Discount rate (%) | 5,75%-10% | 6.65% | 5,7% - 10,00% | 6.80% | |
Annual rent (EUR/m\u00b2) | 25 - 250 | 117.66 | 50-250 | 112.21 | ||
Remaining lease duration (expiry date) (in months) | 0-456m | 91m | 0-468m | 90m | ||
Remaining lease duration (first break option) (in months) | 0-456m | 32m | 0-468m | 38m | ||
Vacancy (in months) | 0m-12m | / | 0m - 12 m | / | ||
The Netherlands | Gross Initial Yield-capitalization | Capitalisation rate (%) | 5,21%-10,51% | 6.80% | 5,58%-10,36% | 8.27% |
Annual market rent (EUR/m\u00b2) | 35 - 364 | 112.36 | 50 - 351 | 107.23 | ||
Remaining lease duration (expiry date) (in months) | 0-156m | 47m | 0-168m | 43m | ||
Remaining lease duration (first break option) (in months) | 0-156m | 44m | 0-168m | 43m | ||
Vacancy (in months) | 0-12m | / | 0-12m | / |
Sensitivity of investment property valuations
The sensitivity of the fair value in relation to changes in the significant unobservable inputs used to determine the fair value of the properties classified in level 3 (in accordance with the IFRS fair value hierarchy) is the following (ceteris paribus):
\u2013the effect of the increase (decrease) of the rental income by 1% leads to an increase (a decrease) in the portfolio\u2019s fair value by \u20ac\u00a020.70 million.
\u2013The effect of an increase (decrease) of the rental income by 2% or 5% is linear. The effect of an increase in the yield by 100 bps leads to a decrease in the portfolio\u2019s fair value by \u20ac 263.64 million.
\u2013A decrease in the yield by 100 bps leads to an increase in the portfolio\u2019s fair value by \u20ac 353.77 million.
Valuation methodology solar panels
Within the framework of ESG objectives, investments are being made in solar panels which, in accordance with GVV legislation, must be valued by a recognized real estate expert. The value of the solar panels is determined using a theoretical model based on the individual potential electricity production of each installation. They are then valued on the basis of the variable market price for electricity at the time of valuation. Hereby abstraction is made of the current operating conditions in order to arrive at a kind of estimated rental value for the installations. By applying a return that would be paid if the installation were taken over by third parties, the market value is determined.
This is an overview of the solar panel investments:
Country | Year of construction | Fair value (\u20ac) | Rental income (\u20ac) | Acquisition value (\u20ac) |
Belgium | 2017-2024 | 6,987,365.46 | 463,280.00 | 4,916,467.48 |
The Netherlands | 2017-2022 | 2,414,035.04 | 102,350.00 | 1,120,775.28 |
Non-observable inputs in determining fair value:
Valuation methodology | Discounted cash flow |
Implicit sunshine duration | The valuation model takes into account 1,088 full-load hours on an annual basis and a yield of 85%, which corresponds to 925 hours per year. On 31 March 2025, the total valued installed capacity will be 8 MWp. |
Energy price | The long-term energy price is determined based on an analysis of historical and expected long-term energy prices. In addition, 65% self-consumption and 35% injection into the grid are taken into account. The valuation on 31 March 2025 takes into account an energy tariff between EUR 270/MWh and EUR 290/MWh. A discount of 20% is applied to the market price. The applicable injection rates are between EUR 35/MWh and EUR 50/MWh. This results in an energy price between EUR 150/MWh and EUR 170/MWh. Any subsidies or green energy certificates are not taken into account. |
Inflation rate | Long-term inflation is based on the percentages applied to the real estate investments by the appraiser, which fell within the range of 2% - 2.5% for both Belgium and the Netherlands. |
Discount rate | The calculated annual net cash flows are discounted at a discount rate of 10%, which corresponds to the minimum return that investors expect for PV installations. This discount rate is derived from a market analysis by the appraiser of realized returns. |
Decline in yield | The solar panel installation has a yield decline of 0.5% per year and will be decommissioned after 25 years. This does not take into account any residual value of the installation or the cost of removing the installation. |
Maintenance and capex | Various operating costs related to the operation of the installation are taken into account. A fixed maintenance fee is charged for the maintenance of the roof and the installation. Insurance costs are also taken into account. If applicable, the right of superficies is included as a cost. |
Sensitivity of solar panels valuations
The sensitivity of fair value to changes in significant unobservable inputs used in determining the fair value of items classified in level 3 according to the IFRS fair value hierarchy is as follows (ceteris paribus):
Impact on fair value at: | ||
Non-observable inputs | decline | increase |
Implicit sunshine duration | negative | positive |
Solar panel efficiency | negative | positive |
Energy price | negative | positive |
Discount rate | positive | negative |
Maintenance and capex | positive | negative |
The effect of a 10% increase (decrease) in energy prices results in an increase (decrease) in the fair value of the solar panels of \u20ac 1.09 million. The effect of a 50 bps increase in the discount rate results in a decrease in the fair value of the solar panels by \u20ac 0.36 million. A 50 bps decrease in the discount rate results in an increase in the fair value of the solar panels by \u20ac 0.38 million.
Valuation process
The valuation process for real estate is determined by the CEO and the CFO after approval by the audit committee. They also decide on the independent real estate expert who will be appointed for the different parts of the real estate portfolio. Typically, contracts are entered into for a renewable term of three years. The fees of the real estate experts are determined for the term of their mandate and are not connected to the value of the properties that are the subject of the valuation.
An independent real estate expert is appointed for each country in order to ensure that the specific characteristics of each geographic region are reflected correctly. The real estate portfolio is valued on a quarterly basis. The valuation method (see above) is determined by the real estate expert. The valuation cycle in the course of a financial year consists of a visit to the property, after which a detailed report is drawn up, as well as three desktop reviews.
The reports of the independent real estate experts are based on:
\u2013Information provided by the company, such as current rents, terms and conditions of lease agreements, possible rent reductions, investments etc. This information originates from the financial and management system of the public BE-REIT and is governed by the company's general monitoring system.
\u2013Assumptions and valuation models put forward by real estate experts. The assumptions mainly relate to the market situation and concern yields and discount rates. They are based on their professional assessment and perception of the market.
The information provided to the real estate experts and the assumptions and valuation models used are checked by the company\u2019s finance manager and the public BE-REIT\u2019s management. All material differences (positive as well as negative) in absolute and relevant terms (versus the previous quarter and versus the previous year) are compared and analysed every quarter. On this basis, the management meets with the real estate experts with a view to accurately and fully reflecting all information regarding the various sites in the valuations. Finally, the final valuations are presented to the audit committee.
Impact of the sale of investment properties
Non-current assets or groups of assets held for sale (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Assets held for sale | 18,457 | 8,552 |
Total assets held for sale | 18,457 | 8,552 |
Recorded under assets held for sale are those assets for which an intention to sell has been signed but the final deed of sale had not yet been executed. These assets are usually sold within a year. Properties are only transferred to the assets held for sale if a declaration of intent has been signed with the potential buyer. The sale is not expected to result in a decrease in value of these assets.
On 31\u00a0March\u00a02025, the fair value of these assets amounts to \u20ac 18.46 million, of which \u20ac 12.00 million relates to the sale of the properties at the Veenendaal site and \u20ac\u00a05.60\u00a0million to the Keerdok retail cluster in Mechelen.
The deed of sale of the Veenendaal site was executed on 1 April 2025. The site was sold because it is an atypical real estate site: it concerns a large area with only two tenants. Retail Estates' investment policy in the Netherlands focuses rather on standard properties with an area of 1,500 m\u00b2. The proceeds from the sale of the Veenendaal site have already been reinvested in the purchase of the additional Venlo property (see management report, section \u2018Significant events in the financial year 2024-2025\u2019).
The Keerdok site was rezoned by the local government for apartment construction following the approval of the RUP Rode Kruisplein. A number of tenants have moved to the new Malinas retail park, while others have closed their shops. One retail space was initially still leased.
On 24 December 2021, Retail Estates entered into a framework agreement with the operating company of two real estate developers to sell its retail properties in phases. The total sale price amounts to \u20ac\u00a011.18\u00a0million. On 29 March 2023, the first part of the framework agreement was already implemented and part of the retail properties were sold for \u20ac\u00a03.75\u00a0million. On 29\u00a0February\u00a02024, an addendum to the framework agreement was signed, postponing the deadline for the fulfilment of the last conditions precedent to 30\u00a0June\u00a02024 and requiring the authentic deed of sale for phase 1 to be executed by 30\u00a0September\u00a02024 at the latest. Subsequently, a number of addenda were signed to extend the term for fulfilment of the conditions precedent once again.
Finally, on 11 October 2024, addendum V to the framework agreement was signed.
Contrary to the original framework agreement, the parties agreed that the purchase/sale of the remaining immovable property would no longer be subject to the condition precedent of obtaining a final and enforceable permit, but:
\u2013that the buyer is willing to purchase the property unconditionally (by exercising an option by the buyer or the seller); and
\u2013that the seller is willing to postpone the execution of the authentic deeds of sale until 31 March 2025 respectively 31 March 2026 and to allow a partial deferral of payment of the price.
In implementation of this latter agreement, the notarial deed relating to part of the remaining immovable property was executed no later than 31 March 2025, against payment of a price of \u20ac\u00a01,83\u00a0million in total.
Non-current assets or groups of assets held for sale
These assets concern real estate for which the book value will primarily be realised by the sale of the assets and not by further letting. Like the investment properties (see above), these assets are recognised at fair value, which is equal to investment value less transaction fees.
Non-current assets or groups of assets held for sale
These assets concern real estate for which the book value will primarily be realised by the sale of the assets and not by further letting. Like the investment properties (see above), these assets are recognised at fair value, which is equal to investment value less transaction fees.
Shareholders\u2019 equity
The capital includes the funds obtained when the company was incorporated and those received following mergers or capital increases. Any third-party costs directly attributable to the issuance of new shares shall be deducted from shareholders' equity. When share capital recognised as equity is repurchased by Retail Estates nv, the paid amount, including any directly attributable costs, shall be recognised as a change in shareholders\u2019 equity. Purchased own shares are presented as a decrease in the total shareholders\u2019 equity.
Dividends are included in the result carried forward until they been approved by the shareholders' meeting.
Dividends are included in the result carried forward until they been approved by the shareholders' meeting.
Liabilities
A provision is taken if:
\u2013Retail Estates nv has an existing \u2013 legally enforceable or actual \u2013 commitment resulting from an event in the past;
\u2013an outflow of funds will probably be required to settle the commitment; and
\u2013the amount of the commitment can be estimated reliably.
Trade debts are presented at nominal value on the balance sheet date. Interest-bearing borrowings are initially recognised at cost price less transaction costs. The interest-bearing borrowings are subsequently valued on the basis of the effective interest rate method,
recognising each difference between the initial book value and the redemption value as an interest cost in the income statement over the term of the loan.
Liabilities
A provision is taken if:
\u2013Retail Estates nv has an existing \u2013 legally enforceable or actual \u2013 commitment resulting from an event in the past;
\u2013an outflow of funds will probably be required to settle the commitment; and
\u2013the amount of the commitment can be estimated reliably.
Trade debts are presented at nominal value on the balance sheet date. Interest-bearing borrowings are initially recognised at cost price less transaction costs. The interest-bearing borrowings are subsequently valued on the basis of the effective interest rate method,
recognising each difference between the initial book value and the redemption value as an interest cost in the income statement over the term of the loan.
A provision is taken if:
\u2013Retail Estates nv has an existing \u2013 legally enforceable or actual \u2013 commitment resulting from an event in the past;
\u2013an outflow of funds will probably be required to settle the commitment; and
Benefits for the staff and executive officers
Retail Estates nv provides a defined contribution pension scheme for its employees and for the members of the management committee. For the members of the management committee this scheme has been entrusted to an insurance company that is independent of the company.
The scheme for employees is largely handled via the fund of the joint committee. It is therefore a sector scheme, and it is the organiser of this pension scheme (Fonds Tweede Pijler PC 323) who is to assume the legal responsibilities and obligations.
Contributions paid during the financial year are recognised as expenses.
Benefits for the staff and executive officers
Retail Estates nv provides a defined contribution pension scheme for its employees and for the members of the management committee. For the members of the management committee this scheme has been entrusted to an insurance company that is independent of the company.
The scheme for employees is largely handled via the fund of the joint committee. It is therefore a sector scheme, and it is the organiser of this pension scheme (Fonds Tweede Pijler PC 323) who is to assume the legal responsibilities and obligations.
Contributions paid during the financial year are recognised as expenses.
Personnel costs make up most of the management costs. The table below provides an overview of the employee count in FTE. The increased personnel costs can be explained by the newly filled positions in combination with indexation and higher recruitment and seminar costs.
(in FTE) | 31.03.2025 | 31.03.2024 |
Property department | 26.04 | 26.81 |
Total | 43.10 | 42.00 |
Average | 41.70 | 41.10 |
For more information about the personnel cost and the employee
Property result
The net rental result includes the rent, operating lease income and other revenues related to the aforementioned sources of income less rent-related expenses, i.e. the rent payable on leased assets, impairment losses on receivables and write-backs of impairment losses on receivables.
The recovery of property expenses includes the revenue obtained from charging costs for major repairs and maintenance.
The charges and taxes payable by tenants on let properties and the recovery of these expenses refer to costs that, under law or custom, are at the tenant\u2019s expense. The owner will either charge or not charge these costs to the tenant depending on the contractual arrangements made with the tenant.
Property expenses
The property expenses are valued at the fair value of the compensation that has been paid or is due and are recognised in the income statement in the period to which they refer using the straight-line method.
The technical costs include, among other things, structural and occasional maintenance costs (including expenses made within the context of the sustainability strategy) and losses resulting from incidents partially covered by the insurance companies. The commercial costs include brokers\u2019 commission fees. The property management costs mainly consist of the relevant personnel costs, the operating costs of the company\u2019s registered office and fees paid to third parties.
Management fees received from tenants or third parties which partially cover the management costs of the properties are deducted.
Corporate operating costs and other current operating
income and expenses
The corporate operating costs include the fixed operating costs of the company, which operates as a legal entity that is listed on the stock market and benefits from the BE-REIT status. These costs are incurred in order to obtain transparent financial information, to be economically comparable with other types of investments and to offer investors the opportunity to participate directly in a diversified real estate investment in a liquid manner. Part of the costs incurred in the context of Retail Estates nv\u2019s growth strategy are also included in this category.
Property expenses
The property expenses are valued at the fair value of the compensation that has been paid or is due and are recognised in the income statement in the period to which they refer using the straight-line method.
The technical costs include, among other things, structural and occasional maintenance costs (including expenses made within the context of the sustainability strategy) and losses resulting from incidents partially covered by the insurance companies. The commercial costs include brokers\u2019 commission fees. The property management costs mainly consist of the relevant personnel costs, the operating costs of the company\u2019s registered office and fees paid to third parties.
Management fees received from tenants or third parties which partially cover the management costs of the properties are deducted.
Financial result
The financial result consists of the borrowing costs and additional funding costs, such as the negative variations in hedging instruments where these are not effective within the meaning of IAS 39, less income from investments.
Financial result (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Collected interests and dividends | 105 | 105 |
Other | 52 | 57 |
Total financial result | 157 | 162 |
Net interest charges (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Nominal interest on loans1 | -20,323 | -21,722 |
Other interest costs2 | 95 | 101 |
Total net interest charges | -20,228 | -21,671 |
1 Also includes the interests on Interest Rate Swaps (financial instruments). | ||
2 Capitalised interest costs on non-current assets under construction. The interest rate used is 2,30%. |
The weighted average interest rate amounts to 2.08% on 31\u00a0March\u00a02025, compared to 2.30% on 31\u00a0March\u00a02024 (including the interest costs of the hedging instruments concluded). The company has concluded almost all of its loans as fixed-rate investment loans or as long-term variable-rate loans, for which a fixed interest rate was negotiated via a swap agreement. The evolution of the interest cover ratio (the net rental income versus interest charges on loans) amounts to 7.03 on 31\u00a0March\u00a02025 compared to 6.39 the year before. The company agreed on a minimum interest cover ratio of 2 with some of its bankers and bond holders. Please refer to note 35 for an overview of all swaps and caps.
Financial result
Financial result
Financial result
Financial result
Corporate income tax
Corporate income tax comprises the current tax burden on the profit or loss for the year. Corporate income tax is recognised directly in the income statement, except when relating to items recognised directly in shareholders\u2019 equity. In that case the tax is also recognised directly in shareholders\u2019 equity. The current tax burden includes the expected tax payable on the taxable income for the year as well as any adjustment to the tax payable for previous years.
Corporate income tax (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Company | -1,113 | -865 |
1. Corporate income tax | -1,113 | -865 |
Current year taxes | -1,118 | -1,131 |
Previous year tax adjustment | 5 | 266 |
2. Exit tax | 0 | |
Subsidiaries | -1,242 | 131 |
1. Corporate income tax | -1,233 | 131 |
Current year taxes | -1,228 | -474 |
Previous year tax adjustment | -4 | 605 |
2. Exit tax | -9 | |
Total corporate income tax | -2,355 | -734 |
A BE-REIT is subject to corporate income tax solely in respect of non-tax deductible expenditure and abnormal benefits. Deferred taxes are recorded for the subsidiaries on the difference between the book value after
depreciation in the statutory annual accounts of these subsidiaries and the fair value. These deferred taxes are recognized at a rate of 25% for Belgian companies and 8% for Dutch companies.
Corporate income taxes increased this financial year compared to the previous financial year due to an increase in disallowed expenses and the discontinuation of the FBI regime for Dutch companies from 2025.
FBI status of Dutch companies
On 27 December 2023, the law amending the FBI regime was published, as a result of which an FBI can no longer invest in Dutch real estate, unless through a subsidiary that is subject to the regular Dutch corporate income tax rate. The amendment entered into force on 1\u00a0January\u00a02025. For the financial year ending on 31\u00a0March\u00a02025, the FBI regime will therefore apply to all Dutch companies (with the exception of Alex Invest nv, which is not eligible for this regime) until 31\u00a0December\u00a02024. From 1 January 2025, the FBI regime will no longer apply to Dutch subsidiaries. The impact in the fourth quarter as a result of the discontinuation of the FBI regime amounts to \u20ac 0.83 million.
Corporate income tax
Corporate income tax comprises the current tax burden on the profit or loss for the year. Corporate income tax is recognised directly in the income statement, except when relating to items recognised directly in shareholders\u2019 equity. In that case the tax is also recognised directly in shareholders\u2019 equity. The current tax burden includes the expected tax payable on the taxable income for the year as well as any adjustment to the tax payable for previous years.
Evolution of the interest rates
Higher interest rates result in increased financial expenses and a decrease in the EPRA earnings. Retail Estates nv makes use of financial instruments of the IRS and CAP type to hedge the interest rate risk on non-current loans with variable interest rate. In case of an interest rate swap (IRS), the variable interest rate is exchanged for a fixed interest rate; in case of a CAP, the interest rate is capped. Due to this interest rate policy, 100.70% of the current loans are hedged with a fixed interest rate. An interest hedging has also been concluded for a large part of the still to be renewed credits. The weighted average interest rate of the public BE-REIT is 2.08%.
Financing risk
Long-term financing is concluded in the form of \u201cbullet loans\u201d, i.e. loans for which the principal must be paid back in full after a term of five to eight years. The diversification of financing over various banks limits the Group\u2019s liquidity risk. In the financial year, the Group concluded 100.70% of its loans at a fixed interest rate or at a variable interest rate which is immediately converted to a fixed interest rate. The net result of the financial year was therefore only sensitive to interest rate fluctuations to a limited extent.
Credit risk
Before a new tenant is accepted, a credit risk analysis is carried out on the basis of the available information. Rental arrears are furthermore carefully monitored by Retail Estates nv. In case of non-payment, the company generally holds a bank guarantee.
Please refer to notes 34 and 35 for more details.
Evolution of the interest rates
Higher interest rates result in increased financial expenses and a decrease in the EPRA earnings. Retail Estates nv makes use of financial instruments of the IRS and CAP type to hedge the interest rate risk on non-current loans with variable interest rate. In case of an interest rate swap (IRS), the variable interest rate is exchanged for a fixed interest rate; in case of a CAP, the interest rate is capped. Due to this interest rate policy, 100.70% of the current loans are hedged with a fixed interest rate. An interest hedging has also been concluded for a large part of the still to be renewed credits. The weighted average interest rate of the public BE-REIT is 2.08%.
Credit risk
Before a new tenant is accepted, a credit risk analysis is carried out on the basis of the available information. Rental arrears are furthermore carefully monitored by Retail Estates nv. In case of non-payment, the company generally holds a bank guarantee.
Please refer to notes 34 and 35 for more details.
Breakdown by due date of credit lines (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Non-current | ||
Bilateral loans - variable or fixed rate | 648,655 | 686,535 |
Bond loan | 175,743 | 175,572 |
Subtotal | 824,397 | 862,107 |
Current | ||
Bilateral loans - variable or fixed rate | 21,384 | 4,182 |
Bond loan | 0 | |
Treasury certificates | 40,100 | 42,500 |
Subtotal | 61,484 | 46,682 |
Total | 885,881 | 908,789 |
Breakdown by maturity of non-current financial debts - future interest burden not included (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Between one and two year(s) | 210,259 | 214,813 |
Between two and five years | 378,464 | 495,981 |
More than five years | 235,675 | 151,313 |
Breakdown by the variable or fixed-rate nature of the loans (in \u20ac 000)4 | 31.03.2025 | 31.03.2024 |
Variable rate loans | 553,786 | 575,721 |
Fixed rate loans | 332,095 | 333,068 |
4 Without taking into account hedging instruments |
Retail Estates nv has the following unused credit facilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Expiring within one year | 0 | 0 |
Expiring after one year | 203,262 | 184,012 |
40.10 mio EUR of the unused credit lines is used as a backup line for the drawn amounts of the commercial paper program |
Estimate of the future interest burden | Total future interest burden | |
(in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Within one year | 19,338 | 19,999 |
Between one and five year(s) | 78,005 | 57,293 |
More than five years | 11,597 | 7,946 |
Total | 108,940 | 85,238 |
Reconciliation between changes in financial liabilities and consolidated cash flow statement (in\u00a0\u20ac\u00a0000) | 31.03.2024 | + Cash flows | + Non cash variations | 31.03.2025 |
Financial debts | 913,868 | 890,438 | ||
Bilateral loans - variable or fixed rate | 733,217 | -23,078 | 710,139 | |
Bond loan | 175,572 | 171 | 175,743 | |
Financial lease | 5,079 | -522 | 4,557 | |
* The non-cash movement for finance leases relates to the adoption of IFRS 16. | ||||
** The non-cash movement for the bonds refers to the spread of costs associated with the issuance of the bonds. |
Over the course of the financial year, financial liabilities decreased by a net amount of \u20ac -23.08 million. New loans were taken out or existing loans were extended for an amount of \u20ac 142.35 million while other loans expired and were repaid for an amount of \u20ac 165.35 million. In addition, there are costs linked to the issue of bonds that are incorporated into the result spread over time.
Non-current and current financial liabilities
Breakdown by due date of credit lines (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Non-current | ||
Bilateral loans - variable or fixed rate | 648,655 | 686,535 |
Financial leases | 4,557 | 5,079 |
Bond loan | 175,743 | 175,572 |
Subtotal | 828,954 | 867,186 |
Current | ||
Bilateral loans - variable or fixed rate | 21,384 | 4,182 |
Bond loan | 0 | |
Treasury certificates | 40,100 | 42,500 |
Subtotal | 61,484 | 46,682 |
Total | 890,438 | 913,868 |
Structure of the financial debt:
On 31\u00a0March\u00a02025, total consolidated financial debt amounted to \u20ac 890.44 million.
This amount is composed as follows:
Non-current liabilities:
\u2013\u20ac 648.65 million in traditional bilateral long-term bank loans, spread over several banks
\u2013\u20ac 4.56 million in financial leases
\u2013\u20ac 175.74 million in bond loans
This is a decrease by \u20ac 38.23 million compared to last year as a result of the acquisitions of the current financial year.
Current liabilities:
\u2013\u20ac 21.38 million in traditional bilateral short-term bank loans
\u2013\u20ac 40.10 million in Commercial Papers
This is an increase by \u20ac 13.77 million compared to last year. This can mainly be explained by the decrease in the commercial paper programme compared to last year (see above).
100.70% of the loans have a fixed interest rate or are hedged using an interest rate swap contract. The estimate of the future interest burden takes into account the debt position as of 31\u00a0March\u00a02024 and interest covers according to the contracts currently in progress.
The company has issued five bond loans:
\u2013\u20ac 30 million, issued on 29 April 2016 with a maturity of 10 years, of which \u20ac 4 million at a fixed interest rate of 2.84% and \u20ac 26 million at a floating interest rate (Euribor 3 months + 2,25%)
\u2013\u20ac 25 million, issued on 10 June 2016 with a maturity of 10 years and an interest rate of 2.84%.
\u2013\u20ac 75 million, issued on 18 December 2019 with a maturity of 7 years and an interest rate of 2.15%
\u2013\u20ac 30 million, issued on 9 December 2020 with a maturity of 5 years and an interest rate of 1.991%.
\u2013\u20ac 16 million, issued on 26 March 2021 with a maturity of 8 years and an interest rate of 2.897%.
\u20ac60 million of the above bond loans has already been extended with the underlying investor via a credit agreement.
Interest charges analysis \u2013 interest sensitivity
The degree to which Retail Estates nv can finance itself significantly impacts its profitability. Property investments generally entail a relatively high level of debt financing. To optimally limit this risk, Retail Estates nv applies a relatively cautious and conservative strategy (see above). This strategy ensures that a rise in the interest rate has no substantial impact on the total result of the current financial year. Interest rate increases or decreases nevertheless have an impact on the market value of the concluded IRS contracts and thus on shareholders\u2019 equity and changes in the fair value of financial assets and liabilities. If the interest rate were to rise by 1%, this would have a positive impact of \u20ac 28.69 million on shareholders\u2019 equity and changes in the fair value of financial assets and liabilities. \u20ac 28.37 million of this amount would be recorded via the income statement and \u20ac 0.32 million of this amount would be recorded directly under shareholders' equity. If interest rate were to decrease by 1%, this would have a negative impact of \u20ac -30.36 million on shareholders\u2019 equity and changes in the fair value of financial assets and liabilities. \u20ac -30.16 million of this amount would be recorded via the income statement account and \u20ac -0.20 million would be recorded directly under shareholders' equity.
In principle, Retail Estates nv concludes an agreement with its banks for a debt ratio covenant of 60%.
Maturity dates
The weighted average term of the outstanding financial debts of Retail Estates was 3.46 years on 31\u00a0March\u00a02025 compared to 3.45 years for the previous year. On 31\u00a0March\u00a02025, the total of unused and confirmed long-term credit lines amounted to \u20ac 203.26 million. This is including the backup lines for the Commercial Paper programme amounting to \u20ac 40.10 million. The net available credit lines therefore amount to \u20ac\u00a0163.16\u00a0million.
First green loan secured
Rental-related expenses (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Rent payable for hired assets and lease costs | 0 | 0 |
Impairments on trade receivables | -1,238 | -705 |
Total rental-related expenses | -1,238 | -705 |
Trade receivables and doubtful debtors
Trade receivables (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Trade receivables | 16,745 | 16,846 |
Invoices to be issued | 2,285 | 1,861 |
Doubtful debtors | -4,859 | -4,563 |
Income to be collected | 0 | 0 |
Coupon real estate certificats | ||
\u00a0 Distri-Land | 250 | 250 |
Other | 206 | 233 |
Total trade receivables | 14,627 | 14,627 |
Outstanding trade receivables, after deduction of doubtful debtors and advance payments, amount to \u20ac\u00a012.09\u00a0million, of which \u20ac 0.20 million relate to the revolving fund and the reserve fund and of which \u20ac\u00a011.32\u00a0million have not yet reached their maturity date. Taking into account the guarantees obtained \u2013 both rental guarantees and bank guarantees \u2013 the credit risk on trade receivables is very limited on 31\u00a0March\u00a02025.
The total prebilling balance amounts to \u20ac 11.09 million on 31\u00a0March\u00a02025 compared to \u20ac 11.86 million last year. The prebilling relates to unexpired rents billed for periods after 31\u00a0March\u00a02025.
For more details about the Distri-Land coupon, please refer to the chapter \u2018Real estate certificates\u2019 in the valuation rules mentioned earlier in this Annual Financial Report.
Impairment on doubtful debtors - roll forward (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
At the end of the previous financial year | -4,562 | -4,025 |
From acquired companies | 0 | 0 |
Provisions | -2,029 | -1,591 |
Recoveries | 2,078 | 1,252 |
Write-offs | -345 | -199 |
At the end of the financial year | -4,859 | -4,562 |
The provision for doubtful debtors is established as follows: the rental arrears list is closely monitored internally. Based on a management assessment, or if obvious and demonstrable reasons exist to suggest that the claim cannot be recovered, a provision is created. Trade receivables are payable in cash. The table below shows an overview of the age structure of the trade receivables for which no value reduction was registered.
Trade receivables - Ageing (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Due < 30 days | 234 | 469 |
Due 30-90 days | 15 | -5 |
Due > 90 days | 317 | 292 |
Not due | 11,319 | 11,528 |
The increase in rental income is mainly the result of the indexations and acquisitions during the past financial year. The rental income stated below does not take into account future indexations.
As a theoretical exercise, the following table shows how much rental income Retail Estates nv is certain to receive based on the current lease agreements.
Rental income (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Within one year | 145,285 | 142,241 |
Between one and five year(s) | 458,847 | 440,050 |
Within more than five years | 497,827 | 495,402 |
This does not alter the theoretical risk that all (Belgian) tenants may make use of their legal termination option at the end of the current three-year period. Without taking into account this legal option, the weighted average remaining term is 8.22 years for the Belgian portfolio and 4.14 for the Dutch portfolio. The weighted average remaining term for the entire portfolio is 6.71 years.
Type of lease agreement
The Group concludes commercial rental contracts for its buildings in Belgium for a minimum period of nine years, which, in most cases, can be terminated by the tenant after the expiry of the third and the sixth year, subject to six months\u2019 notice prior to the expiry date. Standard lease agreements in the Netherlands have a five-year term.
The rents are usually paid in advance on a monthly basis (sometimes quarterly). They are indexed annually on the anniversary of the lease agreement. Taxes and levies, including property tax, the insurance premium and common charges, are in principle borne by the tenant. To guarantee compliance with the obligations imposed on the tenant by virtue of the agreement, some tenants must provide a rental guarantee, usually in the form of a bank guarantee, corresponding to three months\u2019 rent.
The increase in rental income is mainly the result of the indexations and acquisitions during the past financial year. The rental income stated below does not take into account future indexations.
As a theoretical exercise, the following table shows how much rental income Retail Estates nv is certain to receive based on the current lease agreements.
Rental income (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Within one year | 145,285 | 142,241 |
Between one and five year(s) | 458,847 | 440,050 |
Within more than five years | 497,827 | 495,402 |
This does not alter the theoretical risk that all (Belgian) tenants may make use of their legal termination option at the end of the current three-year period. Without taking into account this legal option, the weighted average remaining term is 8.22 years for the Belgian portfolio and 4.14 for the Dutch portfolio. The weighted average remaining term for the entire portfolio is 6.71 years.
Type of lease agreement
The Group concludes commercial rental contracts for its buildings in Belgium for a minimum period of nine years, which, in most cases, can be terminated by the tenant after the expiry of the third and the sixth year, subject to six months\u2019 notice prior to the expiry date. Standard lease agreements in the Netherlands have a five-year term.
The rents are usually paid in advance on a monthly basis (sometimes quarterly). They are indexed annually on the anniversary of the lease agreement. Taxes and levies, including property tax, the insurance premium and common charges, are in principle borne by the tenant. To guarantee compliance with the obligations imposed on the tenant by virtue of the agreement, some tenants must provide a rental guarantee, usually in the form of a bank guarantee, corresponding to three months\u2019 rent.
List of consolidated companies and changes in the circle of consolidation
As per 31\u00a0March\u00a02025, the following subsidiaries are part of the consolidation perimeter of Retail Estates nv:
Subsidiary | External financial debts5 (in \u20ac 000) | Investment properties5 (in \u20ac 000) | Rental income6 (in \u20ac 000) | Participation percentage |
Retail Warehousing Invest | 51,363 | 3,173 | 100.00% | |
Inducom | 92,464 | 0 | 100.00% | |
Finsbury Properties | 0 | 17 | 100.00% | |
Regreen | 8,279 | 548 | 100.00% | |
Veilinghof 't Sas | 0 | 26.19% | ||
Retail Estates Nederland | 54,268 | 5,608 | 100.00% | |
Venlo Invest | 34,057 | 2,540 | 100.00% | |
Cruquius Invest | 80,701 | 5,914 | 100.00% | |
Spijkenisse Invest | 10,250 | 46,871 | 3,227 | 100.00% |
Heerlen I Invest | 68,285 | 4,910 | 100.00% | |
Heerlen II Invest | 59,562 | 4,441 | 100.00% | |
Retail Estates Middelburg Invest | 33,339 | 2,815 | 100.00% | |
Breda I Invest | 41,631 | 3,240 | 100.00% | |
Breda II Invest | 25,735 | 2,052 | 100.00% | |
Naaldwijk Invest | 21,153 | 1,976 | 100.00% | |
Alex Invest | 37,307 | 3,475 | 50.00% | |
Zaandam Invest | 36,453 | 2,081 | 100.00% | |
Osbroek Invest | 74,930 | 5,593 | 100.00% | |
Aquarius Invest | 41,284 | 2,502 | 100.00% | |
Waterman Invest | 39,214 | 2,730 | 100.00% | |
SVK | 3,268 | 221 | 100.00% | |
5 Value at closing date of the consolidated figures (31.03.2025) including non-current assets under construction (IAS 40). | ||||
6 For the period the companies are part of the Group in the current financial year. |
Segmented information - Profit & Loss
Segmented information \u2013 results by segment (in \u20ac 000) | 31.03.2025 | 31.03.2024 | ||||||
Belgium | The Netherlands | Unallocated amounts | TOTAL | Belgium | The Netherlands | Unallocated amounts | TOTAL | |
Rental income | 90,312 | 53,102 | 143,414 | 89,727 | 49,807 | 139,533 | ||
Rental related expenses | -1,047 | -191 | -1,238 | -258 | -447 | -705 | ||
Net rental income | 89,265 | 52,911 | 142,176 | 89,469 | 49,359 | 138,829 | ||
Recovery of property expenses | ||||||||
Recovery of rental charges and taxes normally payable by tenants on let properties | 10,241 | 5,290 | 15,531 | 9,869 | 4,740 | 14,609 | ||
Rental charges and taxes normally payable by tenants on let properties | -10,656 | -7,587 | -18,243 | -10,271 | -6,634 | -16,905 | ||
Other rental related income and expenses | -65 | -40 | -105 | -37 | -64 | -101 | ||
Property result | 88,785 | 50,574 | 139,359 | 89,030 | 47,401 | 136,430 | ||
Technical costs | -4,402 | -2,044 | -6,446 | -4,875 | -3,057 | -7,932 | ||
Commercial costs | -883 | -99 | -981 | -1,127 | -122 | -1,249 | ||
Charges and taxes on unlet properties | -631 | -230 | -860 | -414 | -90 | -504 | ||
Property management costs | -5,544 | -1,717 | -7,261 | -5,108 | -1,544 | -6,653 | ||
Other property costs | -2 | -1 | -2 | -2 | -1 | -3 | ||
Property costs | -11,461 | -4,090 | -15,551 | -11,527 | -4,814 | -16,341 | ||
Operating property result | 77,324 | 46,484 | 123,808 | 77,503 | 42,587 | 120,090 | ||
Operating corporate costs | -9,480 | -9,480 | -8,473 | -8,473 | ||||
Other current operating income and expenses | ||||||||
Segmented information \u2013 results by segment (in \u20ac 000) | 31.03.2025 | 31.03.2024 | ||||||
Belgium | The Netherlands | Unallocated amounts | TOTAL | Belgium | The Netherlands | Unallocated amounts | TOTAL | |
Operating result before result on portfolio | 114,328 | 111,617 | ||||||
Result on disposals of investment properties | 386 | 0 | 386 | -399 | 0 | -399 | ||
Result on sales of other non-financial assets | 0 | 0 | ||||||
Changes in fair value of investment properties | 16,789 | 11,045 | 27,835 | 39,948 | 11,242 | 51,190 | ||
Other result on portfolio | -649 | 2,216 | 1,566 | 12 | -377 | -365 | ||
Operating result | 144,115 | 162,043 | ||||||
Financial income | 157 | 157 | 162 | 162 | ||||
Net interest charges | -20,228 | -20,228 | -21,671 | -21,671 | ||||
Changes in the fair value of financial assets and liabilities | -13,072 | -13,072 | -16,487 | -16,487 | ||||
Other financial charges | -70 | -70 | -63 | -63 | ||||
Financial result | -33,213 | -33,213 | -38,059 | -38,059 | ||||
Result in associated companies | -75 | -75 | -92 | -92 | ||||
Result before taxes | 110,827 | 123,891 | ||||||
Taxes | -1,147 | -1,208 | -2,355 | -879 | 145 | -734 | ||
Net result | 108,472 | 123,157 | ||||||
Attributable to: | ||||||||
Shareholders of the Group | 106,696 | 122,967 | ||||||
Minority interests | 1,776 | 190 |
Recovery of charges and taxes normally payable by tenants on let properties (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Recharging of rental charges borne by the owner | 8,236 | 7,598 |
Recharging of real estate taxes and taxes on let properties | 7,296 | 7,010 |
Total recovery of charges and taxes normally payable by tenants on let properties | 15,531 | 14,609 |
Charges normally payable by tenants on let properties (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Rental charges borne by the owner | -8,988 | -8,247 |
Real estate taxes and taxes on let properties | -9,255 | -8,658 |
Total charges normally payable by tenants on let properties | -18,243 | -16,905 |
The standard lease agreements usually provide for these expenses and taxes to be charged by the owner to the tenants. A number of the Group\u2019s lease agreements nevertheless state that some expenses and taxes remain payable by the owner.
These expenses and taxes principally include the costs of property tax, insurance and utilities.
The buildings (both existing buildings and those under construction) are covered by various insurance policies (providing cover for e.g. fire, storm and water damage) for a total value (new building value without land) of approximately \u20ac 1,343.02 million. This amount represents 65.09% of the fair value of the real estate on the same date (\u20ac 2,063.29 million). The cover is limited to an amount determined by Retail Estates on the basis of the new building value. The value of the land must not be insured due to its nature. Non-current assets held for sale, on the other hand, are insured.
Insurance | 31.03.2025 | 31.03.2024 |
Insurance premiums (in \u20ac 000) | 1,583 | 1,522 |
Percentage of fair value covered by insurance | 65.09 | 69.03 |
Recovery of charges and taxes normally payable by tenants on let properties (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Recharging of rental charges borne by the owner | 8,236 | 7,598 |
Recharging of real estate taxes and taxes on let properties | 7,296 | 7,010 |
Total recovery of charges and taxes normally payable by tenants on let properties | 15,531 | 14,609 |
Charges normally payable by tenants on let properties (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Rental charges borne by the owner | -8,988 | -8,247 |
Real estate taxes and taxes on let properties | -9,255 | -8,658 |
Total charges normally payable by tenants on let properties | -18,243 | -16,905 |
The standard lease agreements usually provide for these expenses and taxes to be charged by the owner to the tenants. A number of the Group\u2019s lease agreements nevertheless state that some expenses and taxes remain payable by the owner.
These expenses and taxes principally include the costs of property tax, insurance and utilities.
The buildings (both existing buildings and those under construction) are covered by various insurance policies (providing cover for e.g. fire, storm and water damage) for a total value (new building value without land) of approximately \u20ac 1,343.02 million. This amount represents 65.09% of the fair value of the real estate on the same date (\u20ac 2,063.29 million). The cover is limited to an amount determined by Retail Estates on the basis of the new building value. The value of the land must not be insured due to its nature. Non-current assets held for sale, on the other hand, are insured.
Insurance | 31.03.2025 | 31.03.2024 |
Insurance premiums (in \u20ac 000) | 1,583 | 1,522 |
Percentage of fair value covered by insurance | 65.09 | 69.03 |
Charges normally payable by tenants on let properties (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Rental charges borne by the owner | -8,988 | -8,247 |
Real estate taxes and taxes on let properties | -9,255 | -8,658 |
Total charges normally payable by tenants on let properties | -18,243 | -16,905 |
The standard lease agreements usually provide for these expenses and taxes to be charged by the owner to the tenants. A number of the Group\u2019s lease agreements nevertheless state that some expenses and taxes remain payable by the owner.
These expenses and taxes principally include the costs of property tax, insurance and utilities.
The buildings (both existing buildings and those under construction) are covered by various insurance policies (providing cover for e.g. fire, storm and water damage) for a total value (new building value without land) of approximately \u20ac 1,343.02 million. This amount represents 65.09% of the fair value of the real estate on the same date (\u20ac 2,063.29 million). The cover is limited to an amount determined by Retail Estates on the basis of the new building value. The value of the land must not be insured due to its nature. Non-current assets held for sale, on the other hand, are insured.
Insurance | 31.03.2025 | 31.03.2024 |
Insurance premiums (in \u20ac 000) | 1,583 | 1,522 |
Percentage of fair value covered by insurance | 65.09 | 69.03 |
Technical costs (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Recurrent technical costs | -5,933 | -6,163 |
Structural maintenance | -5,933 | -6,163 |
Non-recurrent technical costs | -514 | -1,769 |
Occasional maintenance | -845 | -935 |
Claim events covered by insurance companies | 234 | -1,336 |
Compensations received from insurance companies | 97 | 502 |
Total technical costs | -6,446 | -7,932 |
Structural maintenance principally concerns expenses within the context of the sustainability strategy (making buildings more energy efficient) and the regular renovation of car parks and roofs. Occasional maintenance, on the other hand, mainly includes unforeseeable costs for the structure of the let premises that are attributable to wear and tear, uninsured accidents and acts of vandalism.
Expenditure related to ESG initiatives was lower than in the previous financial year due to a saving of \u20ac 1 million on expenditure related to structural maintenance.
Charges and taxes on unlet properties (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Vacancy charges of the financial year | -364 | -197 |
Property tax on vacant buildings | -497 | -308 |
Total charges and taxes on unlet properties | -860 | -504 |
The management costs mainly consist of the relevant personnel costs, the operating cost of the ERP application attributable to management, the operating costs of the offices of Retail Estates in Belgium (Ternat) and the Netherlands (Houten) and fees paid to third parties. Management fees received from tenants which partially cover the management costs of the properties are deducted.
Management property costs (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Office charges | -1,708 | -1,362 |
IT | -1,604 | -1,296 |
Other | -104 | -66 |
Housing costs | -358 | -342 |
Fees to third parties | -266 | -347 |
Public relations, communication and advertising | -78 | -46 |
Personnel expenses | -4,890 | -4,595 |
Salaries | -2,652 | -2,647 |
Social security | -588 | -544 |
Pensions and collective insurances | -12 | -11 |
Other | -1,638 | -1,393 |
Management fees received from tenants | 40 | 40 |
Total property management costs | -7,261 | -6,653 |
Personnel costs make up most of the management costs. The table below provides an overview of the employee count in FTE. The increased personnel costs can be explained by the newly filled positions in combination with indexation and higher recruitment and seminar costs.
(in FTE) | 31.03.2025 | 31.03.2024 |
Property department | 26.04 | 26.81 |
Total | 43.10 | 42.00 |
Average | 41.70 | 41.10 |
For more information about the personnel cost and the employee
The corporate operating costs include the fixed operating costs of the company, which operates as a legal entity that is listed on the stock market and benefits from the BE-REIT status. These costs are incurred in order to obtain transparent financial information, to be economically comparable with other types of investments
and to offer investors the opportunity to participate indirectly in a diversified real estate investment in a liquid manner. A part of the costs incurred in the context of the company's growth strategy are also included in this category.
Corporate operating costs (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Office and IT charges | -1,654 | -1,299 |
IT | -1,575 | -1,230 |
Other | -79 | -69 |
Housing costs | -197 | -185 |
Fees to third parties | -960 | -742 |
Recurrent | -341 | -356 |
- Lawyers | ||
- Auditors | -301 | -291 |
- Other | -40 | -66 |
Non-recurrent | -619 | -386 |
- Lawyers | -25 | -50 |
- Notary costs | -6 | -9 |
- Consultants | -587 | -327 |
Mergers and acquisitions (other than business combinations) | 0 | 0 |
Public relations, communication and advertising | -58 | -123 |
Personnel expenses | -1,892 | -1,688 |
Salaries | -948 | -813 |
Social security | -259 | -218 |
Pensions and collective insurances | -3 | -3 |
Other | -682 | -653 |
Management fees | -2,350 | -2,173 |
Remuneration of board of directors | -436 | -352 |
Taxes and legal costs | -1,933 | -1,911 |
Total operating costs | -9,480 | -8,473 |
The increase in the corporate operating costs is mainly due to an increase in the office and IT costs, the fees to third parties, and personnel expenses.
Office and IT costs rose as a result of the further expansion of the integrated IT system. The increase in fees paid to third parties is due to higher consultancy fees for temporarily filling staff shortages.
Commercial costs (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Brokers' commissions | -237 | -257 |
Publicity related to the properties | -350 | -580 |
Lawyers' fees and legal costs | -123 | -269 |
Other | -271 | -142 |
Total commercial costs | -981 | -1,249 |
Calculation of pay-out ratio (in \u20ac 000) - statutory | 31.03.2025 | 31.03.2024 |
Ordinary net earnings | 106,494 | 122,908 |
Diluted net earnings | 106,494 | 122,908 |
Distributable earnings | 93,165 | 89,263 |
Minimum profit distribution | 74,532 | 71,410 |
Proposed gross dividend | 75,007 | 71,878 |
Pay-out ratio | 80.51% | 80.52% |
Calculation of distributable earnings (in \u20ac 000) - statutory | 31.03.2025 | 31.03.2024 |
Net result | 106,494 | 122,908 |
+ Depreciations | 1,499 | 1,174 |
+ Impairments | 1,537 | 757 |
- Reversal of impairments | -849 | -665 |
- Reversal transferred and discounted rents | 0 | 0 |
+/- Other non-monetary components | 13,160 | 16,553 |
+/- Share in the non recurring result of holding incorporated using the equity method | -24,790 | -20,759 |
+/- Result on the disposal of investment properties | -366 | 269 |
+/- Changes in fair value of investment properties and non-current assets under construction | -3,886 | -30,704 |
ADJUSTED RESULT (A) | 92,799 | 89,532 |
- Capital gains and losses realized on real estate during the financial year 1 | 366 | -269 |
- Capital gains realized on real estate during the financial year exempt from the mandatory payment subject to their reinvestment within a period of 4 years 1 | 0 | |
+ Realized capital gains on real estate previously exempt from the mandatory payment and which were not reinvested within a 4-year period 1 | ||
Net capital gains on realization of real estate not exempt from mandatory payment (B) | 366 | -269 |
Distributable result | 93,165 | 89,263 |
Distributable result x 80% | 74,532 | 71,410 |
Net reduction debt | 0 | 0 |
Minimum profit distribution | 74,532 | 71,410 |
1 relative to the acquisition cost plus capitalised investment costs |
The other non-monetary elements, amounting to \u20ac -13.16 million, concern the variations in the fair value of the financial instruments. The variations in the fair value of investment properties and non-current assets under construction consist of the result on portfolio amounting to \u20ac 3.89 million on the one hand and the \u201cother result on portfolio\u201d on the other hand. The share in the non-distributable result of the subsidiaries relates to the variations in the fair value of the subsidiaries.
In accordance with article 13 of the BE-REIT Belgian Royal Decree, the BE-REIT must (as imposed by its articles of association) at least pay out the positive difference between the following amounts by way of reimbursement of capital :
1.80% of the amount determined in accordance with the table incorporated into Chapter III of Annex C (BE-REIT Belgian Royal Decree); and
Calculation of pay-out ratio (in \u20ac 000) - statutory | 31.03.2025 | 31.03.2024 |
Ordinary net earnings | 106,494 | 122,908 |
Diluted net earnings | 106,494 | 122,908 |
Distributable earnings | 93,165 | 89,263 |
Minimum profit distribution | 74,532 | 71,410 |
Proposed gross dividend | 75,007 | 71,878 |
Pay-out ratio | 80.51% | 80.52% |
Issue premium evolution\u00a0 (in \u20ac 000) | Issue premiums | |
Date | Transaction | |
Previous financial year | 384,498 | |
27 June 2024 | Capital increase through contribution in kind | 12,061 |
Total issue premiums 31.03.2025* | 396,559 | |
*From the financial year commencing on 1 April 2020, the issuance premiums resulting from capital increases can be allocated to the available reserves. On the date of this report, \u20ac 81.15 million in share premium has been allocated to the available reserves, \u20ac 315.41 million is part of the unavailable reserves. |
Calculation of pay-out ratio (in \u20ac 000) - statutory | 31.03.2025 | 31.03.2024 |
Ordinary net earnings | 106,494 | 122,908 |
Diluted net earnings | 106,494 | 122,908 |
Distributable earnings | 93,165 | 89,263 |
Minimum profit distribution | 74,532 | 71,410 |
Proposed gross dividend | 75,007 | 71,878 |
Pay-out ratio | 80.51% | 80.52% |
Calculation of pay-out ratio (in \u20ac 000) - statutory | 31.03.2025 | 31.03.2024 |
Ordinary net earnings | 106,494 | 122,908 |
Diluted net earnings | 106,494 | 122,908 |
Distributable earnings | 93,165 | 89,263 |
Minimum profit distribution | 74,532 | 71,410 |
Proposed gross dividend | 75,007 | 71,878 |
Pay-out ratio | 80.51% | 80.52% |
Events after the balance sheet date
Divestment of retail property in Veenendaal (the Netherlands)
On 1 April 2025 Retail Estates sold a retail property in Veenendaal (the Netherlands) for \u20ac\u00a012\u00a0million. The 18,576\u00a0m\u00b2 property was leased to Eijerkamp, a well-known Dutch family business specializing in home furnishings and furniture. The total annual rent for this retail property amounts to \u20ac 1.48 million. The fair value of the property was \u20ac 12 million on 31 March 2025. The site was sold because it is an atypical real estate site: it concerns a large area with only two tenants. Retail Estates' investment policy in the Netherlands focuses rather on standard properties with an area of 1,500 m\u00b2.
Optional interim dividend
On 28 May 2025, the Board of Directors of Retail Estates decided to distribute, in the form of an optional dividend, a gross interim dividend for financial year 2024-2025 (which started on 1\u00a0April 2024 and ended on 31\u00a0March\u00a02025) amounting to \u20ac5.10 (\u20ac 3.57 net, i.e. the net dividend per share after deduction of withholding tax at a rate of 30%) per share (participating in the profits of financial year 2024-2025).
In the context of its decision to distribute an interim dividend to the shareholders, the Board of Directors offers the shareholders the possibility to contribute the amount of their claims arising from the distribution of the net amount of the interim dividend to the capital of the Company in return for the issue of new shares (in addition to the option to receive the interim dividend in cash and the option to opt for a combination of the two preceding options). The new shares issued within the context of this capital increase will participate in the profits as from 1\u00a0April 2025.
Taking into account the obligation of Retail Estates as a public BE-REIT to pay out dividends pursuant to article 13 of the Royal Decree of 13 July 2014 on regulated real estate investment companies, the Board of Directors will propose to the annual general meeting of 22 July 2024 not to pay any additional dividend for the financial year 2024-2025.
The contribution in kind of claims against Retail Estates in the context of the optional interim dividend and the associated capital increase improve the shareholders\u2019 equity of the company and therefore reduce its (legally capped) debt ratio.
This opens up the possibility for Retail Estates to perform additional debt-financed transactions in the future in order to further realise its growth strategy. The optional interim dividend also makes it possible to retain funds in the Company (in line with the net dividend rights contributed to the company's capital), which in turn reinforces the company's financial position. In addition, it strengthens the ties with the shareholders.
The issue price of the new shares has been set by the board of directors at \u20ac 57.12. Taking into account the aforementioned issue price, each new share to be issued may be subscribed for and will be paid up by the contribution of net dividend rights attached to 16 existing shares of the same form (represented by coupon no. 33).
The option period will run from 5 June 2025 to 19 June 2025, after which the capital increase and the issue of the new shares will be finalised on 26 June 2025.
For more information, please see the press release of 28 May 2025.
Calculation of pay-out ratio (in \u20ac 000) - statutory | 31.03.2025 | 31.03.2024 |
Ordinary net earnings | 106,494 | 122,908 |
Diluted net earnings | 106,494 | 122,908 |
Distributable earnings | 93,165 | 89,263 |
Minimum profit distribution | 74,532 | 71,410 |
Proposed gross dividend | 75,007 | 71,878 |
Pay-out ratio | 80.51% | 80.52% |
Number of shares | 31.03.2025 | 31.03.2024 |
Movements of the number of shares | ||
Number of shares at the beginning of the financial year | 14,375,587 | 14,085,827 |
Number of shares at the end of the financial year | 14,707,335 | 14,375,587 |
Number of dividend bearing shares | 14,707,335 | 14,375,587 |
Weighted average number of shares for diluted earnings per share | 14,627,352 | 14,294,043 |
Calculation of distributable earnings (in \u20ac 000) - statutory | 31.03.2025 | 31.03.2024 |
Net result | 106,494 | 122,908 |
+ Depreciations | 1,499 | 1,174 |
+ Impairments | 1,537 | 757 |
- Reversal of impairments | -849 | -665 |
- Reversal transferred and discounted rents | 0 | 0 |
+/- Other non-monetary components | 13,160 | 16,553 |
+/- Share in the non recurring result of holding incorporated using the equity method | -24,790 | -20,759 |
+/- Result on the disposal of investment properties | -366 | 269 |
+/- Changes in fair value of investment properties and non-current assets under construction | -3,886 | -30,704 |
ADJUSTED RESULT (A) | 92,799 | 89,532 |
- Capital gains and losses realized on real estate during the financial year 1 | 366 | -269 |
- Capital gains realized on real estate during the financial year exempt from the mandatory payment subject to their reinvestment within a period of 4 years 1 | 0 | |
+ Realized capital gains on real estate previously exempt from the mandatory payment and which were not reinvested within a 4-year period 1 | ||
Net capital gains on realization of real estate not exempt from mandatory payment (B) | 366 | -269 |
Distributable result | 93,165 | 89,263 |
Distributable result x 80% | 74,532 | 71,410 |
Net reduction debt | 0 | 0 |
Minimum profit distribution | 74,532 | 71,410 |
1 relative to the acquisition cost plus capitalised investment costs |
The other non-monetary elements, amounting to \u20ac -13.16 million, concern the variations in the fair value of the financial instruments. The variations in the fair value of investment properties and non-current assets under construction consist of the result on portfolio amounting to \u20ac 3.89 million on the one hand and the \u201cother result on portfolio\u201d on the other hand. The share in the non-distributable result of the subsidiaries relates to the variations in the fair value of the subsidiaries.
In accordance with article 13 of the BE-REIT Belgian Royal Decree, the BE-REIT must (as imposed by its articles of association) at least pay out the positive difference between the following amounts by way of reimbursement of capital :
1.80% of the amount determined in accordance with the table incorporated into Chapter III of Annex C (BE-REIT Belgian Royal Decree); and
Calculation of pay-out ratio (in \u20ac 000) - statutory | 31.03.2025 | 31.03.2024 |
Ordinary net earnings | 106,494 | 122,908 |
Diluted net earnings | 106,494 | 122,908 |
Distributable earnings | 93,165 | 89,263 |
Minimum profit distribution | 74,532 | 71,410 |
Proposed gross dividend | 75,007 | 71,878 |
Pay-out ratio | 80.51% | 80.52% |
Shareholders\u2019 equity
Capital
Capital evolution | Capital movement | Total remaining capital after the transaction | Number of shares created | Total number of shares | |
Date | Transaction | (in \u20ac 000) | (in \u20ac 000) | ||
12/07/1988 | Incorporation | - | 74 | 3,000 | 3,000 |
27/03/1998 | IPO and 1st listing on Euronext Brussels | 20,563 | 20,637 | 1,173,212 | 1,176,212 |
30/04/1999 | Capital decrease (incorporation of losses) | -5,131 | 15,505 | - | 1,176,212 |
30/04/1999 | Merger by acquisition | 1,385 | 16,891 | 283,582 | 1,459,794 |
30/04/1999 | Capital decrease (incorporation of losses) | -2,267 | 14,624 | - | 1,459,794 |
30/04/1999 | Incorporation of losses | -174 | 14,451 | - | 1,459,794 |
30/04/1999 | Incorporation of issue premium and revaluation gain | 4,793 | 19,244 | - | 1,459,794 |
30/04/1999 | Cash contribution | 10,854 | 30,098 | 823,348 | 2,283,142 |
1/07/2003 | Cash contribution | 12,039 | 42,137 | 913,256 | 3,196,398 |
31/12/2003 | Public bid on real estate certificates Distri-Land | 4,907 | 47,043 | 372,216 | 3,568,614 |
5/11/2004 | Partial incorporation of issue premium | 33,250 | 80,294 | - | 3,568,614 |
5/11/2004 | Annulment of 20 bearer shares | -1 | 80,293 | -20 | 3,568,594 |
10/08/2005 | Merger by absorption | 1 | 80,294 | 130 | 3,568,724 |
21/11/2006 | Merger by absorption | 10 | 80,303 | 228 | 3,568,952 |
30/11/2007 | Contribution in kind in the context of a partial split | 3,804 | 84,107 | 169,047 | 3,737,999 |
30/06/2008 | Contribution in kind in the context of a partial split | 1,882 | 85,989 | 83,632 | 3,821,631 |
5/09/2008 | Contribution in kind | 534 | 86,523 | 23,750 | 3,845,381 |
30/04/2009 | Contribution in kind | 5,625 | 92,148 | 250,000 | 4,095,381 |
24/11/2009 | Contribution in kind in the context of a partial split | 6,944 | 99,092 | 308,623 | 4,404,004 |
5/02/2010 | Contribution in kind | 4,380 | 103,472 | 194,664 | 4,598,668 |
31/03/2010 | Contribution in kind in the context of a partial split | 910 | 104,382 | 40,459 | 4,639,127 |
05/05/2010 | Contribution in kind | 3,288 | 107,671 | 146,135 | 4,785,262 |
21/06/2010 | Contribution in kind | 2,662 | 110,332 | 118,293 | 4,903,555 |
30/11/2010 | Contribution in kind | 2,212 | 112,544 | 98,301 | 5,001,856 |
30/11/2010 | Contribution in kind | 1,280 | 113,824 | 56,872 | 5,058,728 |
30/11/2010 | Contribution in kind | 66 | 113,890 | 2,935 | 5,061,663 |
16/06/2011 | Contribution in kind | 1,989 | 115,879 | 88,397 | 5,150,060 |
Capital evolution | Capital movement | Total remaining capital after the transaction | Number of shares created | Total number of shares | |
Date | Transaction | (in \u20ac 000) | (in \u20ac 000) | ||
27/06/2011 | Contribution in kind | 5,520 | 121,399 | 245,348 | 5,395,408 |
30/03/2012 | Contribution in kind in the context of a partial split | 937 | 122,336 | 41,666 | 5,437,074 |
4/7/2012 | Contribution in kind | 4,694 | 127,030 | 208,607 | 5,645,681 |
27/7/2012 | Contribution in kind - stock optional dividend | 3,768 | 130,798 | 167,441 | 5,813,122 |
28/6/2013 | Contribution in kind | 540 | 131,338 | 24,009 | 5,837,131 |
28/6/2013 | Capital increase in cash | 32,699 | 164,037 | 1,453,280 | 7,290,411 |
28/11/2014 | Contribution in kind | 6,054 | 170,091 | 269,062 | 7,559,473 |
28/5/2015 | Capital increase in cash | 28,345 | 198,436 | 1,259,740 | 8,819,213 |
29/1/2016 | Contribution in kind | 1,060 | 199,496 | 47,107 | 8,866,320 |
14/12/2016 | Contribution in kind | 2,604 | 202,100 | 115,735 | 8,982,055 |
14/12/2016 | Contribution in kind | 588 | 202,688 | 26,153 | 9,008,208 |
5/4/2017 | Contribution in kind | 3,924 | 206,612 | 174,404 | 9,182,612 |
29/6/2017 | Contribution in kind | 4,500 | 211,112 | 200,000 | 9,382,612 |
29/3/2018 | Contribution in kind | 1,890 | 213,002 | 83,973 | 9,466,585 |
29/3/2018 | Contribution in kind | 519 | 213,521 | 23,076 | 9,489,661 |
27/4/2018 | Capital increase in cash | 42,704 | 256,225 | 1,897,932 | 11,387,593 |
26/9/2018 | Contribution in kind | 788 | 257,013 | 35,000 | 11,422,593 |
1/4/2019 | Contribution in kind | 900 | 257,913 | 40,000 | 11,462,593 |
1/4/2019 | Contribution in kind | 630 | 258,543 | 28,000 | 11,490,593 |
24/6/2019 | Contribution in kind - stock optional dividend | 7,584 | 266,127 | 337,063 | 11,827,656 |
26/6/2019 | Contribution in kind | 16,875 | 283,002 | 750,000 | 12,577,656 |
22/7/2019 | Contribution in kind | 1,187 | 284,189 | 52,758 | 12,630,414 |
20/8/2020 | Contribution in kind - stock optional dividend | 795 | 284,985 | 35,349 | 12,665,763 |
14/10/2021 | Contribution in kind | 12,616 | 297,600 | 560,689 | 13,226,452 |
14/6/2022 | Capital increase in cash | 19,336 | 316,936 | 859,375 | 14,085,827 |
12/7/2023 | stock optional dividend | 6,520 | 323,456 | 289,760 | 14,375,587 |
27/6/2024 | stock optional dividend | 7,464 | 330,921 | 331,748 | 14,707,335 |
As per 31\u00a0March\u00a02025, the capital amounts to \u20ac\u00a0330,920,767.36 and is represented by 14,707,335 shares. There are no preferred shares. Each of these shares represents one vote at the shareholders\u2019 meeting, and these shares represent the denominator for the notification in the context of the transparency declarations.
The difference between the capital as indicated above and the capital included in the consolidated balance sheet is explained by the capital increase costs, which were deducted in the consolidated balance sheet.
The capital has been paid up in full.
Issue premium evolution\u00a0 (in \u20ac 000) | Issue premiums | |
Date | Transaction | |
Previous financial year | 384,498 | |
27 June 2024 | Capital increase through contribution in kind | 12,061 |
Total issue premiums 31.03.2025* | 396,559 | |
*From the financial year commencing on 1 April 2020, the issuance premiums resulting from capital increases can be allocated to the available reserves. On the date of this report, \u20ac 81.15 million in share premium has been allocated to the available reserves, \u20ac 315.41 million is part of the unavailable reserves. |
The corporate operating costs include the fixed operating costs of the company, which operates as a legal entity that is listed on the stock market and benefits from the BE-REIT status. These costs are incurred in order to obtain transparent financial information, to be economically comparable with other types of investments
and to offer investors the opportunity to participate indirectly in a diversified real estate investment in a liquid manner. A part of the costs incurred in the context of the company's growth strategy are also included in this category.
Corporate operating costs (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Office and IT charges | -1,654 | -1,299 |
IT | -1,575 | -1,230 |
Other | -79 | -69 |
Housing costs | -197 | -185 |
Fees to third parties | -960 | -742 |
Recurrent | -341 | -356 |
- Lawyers | ||
- Auditors | -301 | -291 |
- Other | -40 | -66 |
Non-recurrent | -619 | -386 |
- Lawyers | -25 | -50 |
- Notary costs | -6 | -9 |
- Consultants | -587 | -327 |
Mergers and acquisitions (other than business combinations) | 0 | 0 |
Public relations, communication and advertising | -58 | -123 |
Personnel expenses | -1,892 | -1,688 |
Salaries | -948 | -813 |
Social security | -259 | -218 |
Pensions and collective insurances | -3 | -3 |
Other | -682 | -653 |
Management fees | -2,350 | -2,173 |
Remuneration of board of directors | -436 | -352 |
Taxes and legal costs | -1,933 | -1,911 |
Total operating costs | -9,480 | -8,473 |
The increase in the corporate operating costs is mainly due to an increase in the office and IT costs, the fees to third parties, and personnel expenses.
Office and IT costs rose as a result of the further expansion of the integrated IT system. The increase in fees paid to third parties is due to higher consultancy fees for temporarily filling staff shortages.
The corporate operating costs include the fixed operating costs of the company, which operates as a legal entity that is listed on the stock market and benefits from the BE-REIT status. These costs are incurred in order to obtain transparent financial information, to be economically comparable with other types of investments
and to offer investors the opportunity to participate indirectly in a diversified real estate investment in a liquid manner. A part of the costs incurred in the context of the company's growth strategy are also included in this category.
Corporate operating costs (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Office and IT charges | -1,654 | -1,299 |
IT | -1,575 | -1,230 |
Other | -79 | -69 |
Housing costs | -197 | -185 |
Fees to third parties | -960 | -742 |
Recurrent | -341 | -356 |
- Lawyers | ||
- Auditors | -301 | -291 |
- Other | -40 | -66 |
Non-recurrent | -619 | -386 |
- Lawyers | -25 | -50 |
- Notary costs | -6 | -9 |
- Consultants | -587 | -327 |
Mergers and acquisitions (other than business combinations) | 0 | 0 |
Public relations, communication and advertising | -58 | -123 |
Personnel expenses | -1,892 | -1,688 |
Salaries | -948 | -813 |
Social security | -259 | -218 |
Pensions and collective insurances | -3 | -3 |
Other | -682 | -653 |
Management fees | -2,350 | -2,173 |
Remuneration of board of directors | -436 | -352 |
Taxes and legal costs | -1,933 | -1,911 |
Total operating costs | -9,480 | -8,473 |
The increase in the corporate operating costs is mainly due to an increase in the office and IT costs, the fees to third parties, and personnel expenses.
Office and IT costs rose as a result of the further expansion of the integrated IT system. The increase in fees paid to third parties is due to higher consultancy fees for temporarily filling staff shortages.
Financial result (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Collected interests and dividends | 105 | 105 |
Other | 52 | 57 |
Total financial result | 157 | 162 |
Financial result (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Collected interests and dividends | 105 | 105 |
Other | 52 | 57 |
Total financial result | 157 | 162 |
Financial result (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Collected interests and dividends | 105 | 105 |
Other | 52 | 57 |
Total financial result | 157 | 162 |
Net interest charges (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Nominal interest on loans1 | -20,323 | -21,722 |
Other interest costs2 | 95 | 101 |
Total net interest charges | -20,228 | -21,671 |
1 Also includes the interests on Interest Rate Swaps (financial instruments). | ||
2 Capitalised interest costs on non-current assets under construction. The interest rate used is 2,30%. |
The weighted average interest rate amounts to 2.08% on 31\u00a0March\u00a02025, compared to 2.30% on 31\u00a0March\u00a02024 (including the interest costs of the hedging instruments concluded). The company has concluded almost all of its loans as fixed-rate investment loans or as long-term variable-rate loans, for which a fixed interest rate was negotiated via a swap agreement. The evolution of the interest cover ratio (the net rental income versus interest charges on loans) amounts to 7.03 on 31\u00a0March\u00a02025 compared to 6.39 the year before. The company agreed on a minimum interest cover ratio of 2 with some of its bankers and bond holders. Please refer to note 35 for an overview of all swaps and caps.
Other financial charges (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Bank costs and other commissions | -70 | -63 |
Total other financial charges | -70 | -63 |
Net interest charges (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Nominal interest on loans1 | -20,323 | -21,722 |
Other interest costs2 | 95 | 101 |
Total net interest charges | -20,228 | -21,671 |
1 Also includes the interests on Interest Rate Swaps (financial instruments). | ||
2 Capitalised interest costs on non-current assets under construction. The interest rate used is 2,30%. |
The weighted average interest rate amounts to 2.08% on 31\u00a0March\u00a02025, compared to 2.30% on 31\u00a0March\u00a02024 (including the interest costs of the hedging instruments concluded). The company has concluded almost all of its loans as fixed-rate investment loans or as long-term variable-rate loans, for which a fixed interest rate was negotiated via a swap agreement. The evolution of the interest cover ratio (the net rental income versus interest charges on loans) amounts to 7.03 on 31\u00a0March\u00a02025 compared to 6.39 the year before. The company agreed on a minimum interest cover ratio of 2 with some of its bankers and bond holders. Please refer to note 35 for an overview of all swaps and caps.
Net interest charges (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Nominal interest on loans1 | -20,323 | -21,722 |
Other interest costs2 | 95 | 101 |
Total net interest charges | -20,228 | -21,671 |
1 Also includes the interests on Interest Rate Swaps (financial instruments). | ||
2 Capitalised interest costs on non-current assets under construction. The interest rate used is 2,30%. |
The weighted average interest rate amounts to 2.08% on 31\u00a0March\u00a02025, compared to 2.30% on 31\u00a0March\u00a02024 (including the interest costs of the hedging instruments concluded). The company has concluded almost all of its loans as fixed-rate investment loans or as long-term variable-rate loans, for which a fixed interest rate was negotiated via a swap agreement. The evolution of the interest cover ratio (the net rental income versus interest charges on loans) amounts to 7.03 on 31\u00a0March\u00a02025 compared to 6.39 the year before. The company agreed on a minimum interest cover ratio of 2 with some of its bankers and bond holders. Please refer to note 35 for an overview of all swaps and caps.
Other financial charges (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Bank costs and other commissions | -70 | -63 |
Total other financial charges | -70 | -63 |
Net interest charges (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Nominal interest on loans1 | -20,323 | -21,722 |
Other interest costs2 | 95 | 101 |
Total net interest charges | -20,228 | -21,671 |
1 Also includes the interests on Interest Rate Swaps (financial instruments). | ||
2 Capitalised interest costs on non-current assets under construction. The interest rate used is 2,30%. |
The weighted average interest rate amounts to 2.08% on 31\u00a0March\u00a02025, compared to 2.30% on 31\u00a0March\u00a02024 (including the interest costs of the hedging instruments concluded). The company has concluded almost all of its loans as fixed-rate investment loans or as long-term variable-rate loans, for which a fixed interest rate was negotiated via a swap agreement. The evolution of the interest cover ratio (the net rental income versus interest charges on loans) amounts to 7.03 on 31\u00a0March\u00a02025 compared to 6.39 the year before. The company agreed on a minimum interest cover ratio of 2 with some of its bankers and bond holders. Please refer to note 35 for an overview of all swaps and caps.
Other financial charges (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Bank costs and other commissions | -70 | -63 |
Total other financial charges | -70 | -63 |
Number of shares | 31.03.2025 | 31.03.2024 |
Movements of the number of shares | ||
Number of shares at the beginning of the financial year | 14,375,587 | 14,085,827 |
Number of shares at the end of the financial year | 14,707,335 | 14,375,587 |
Number of dividend bearing shares | 14,707,335 | 14,375,587 |
Weighted average number of shares for diluted earnings per share | 14,627,352 | 14,294,043 |
Shareholders\u2019 equity
Capital
Capital evolution | Capital movement | Total remaining capital after the transaction | Number of shares created | Total number of shares | |
Date | Transaction | (in \u20ac 000) | (in \u20ac 000) | ||
12/07/1988 | Incorporation | - | 74 | 3,000 | 3,000 |
27/03/1998 | IPO and 1st listing on Euronext Brussels | 20,563 | 20,637 | 1,173,212 | 1,176,212 |
30/04/1999 | Capital decrease (incorporation of losses) | -5,131 | 15,505 | - | 1,176,212 |
30/04/1999 | Merger by acquisition | 1,385 | 16,891 | 283,582 | 1,459,794 |
30/04/1999 | Capital decrease (incorporation of losses) | -2,267 | 14,624 | - | 1,459,794 |
30/04/1999 | Incorporation of losses | -174 | 14,451 | - | 1,459,794 |
30/04/1999 | Incorporation of issue premium and revaluation gain | 4,793 | 19,244 | - | 1,459,794 |
30/04/1999 | Cash contribution | 10,854 | 30,098 | 823,348 | 2,283,142 |
1/07/2003 | Cash contribution | 12,039 | 42,137 | 913,256 | 3,196,398 |
31/12/2003 | Public bid on real estate certificates Distri-Land | 4,907 | 47,043 | 372,216 | 3,568,614 |
5/11/2004 | Partial incorporation of issue premium | 33,250 | 80,294 | - | 3,568,614 |
5/11/2004 | Annulment of 20 bearer shares | -1 | 80,293 | -20 | 3,568,594 |
10/08/2005 | Merger by absorption | 1 | 80,294 | 130 | 3,568,724 |
21/11/2006 | Merger by absorption | 10 | 80,303 | 228 | 3,568,952 |
30/11/2007 | Contribution in kind in the context of a partial split | 3,804 | 84,107 | 169,047 | 3,737,999 |
30/06/2008 | Contribution in kind in the context of a partial split | 1,882 | 85,989 | 83,632 | 3,821,631 |
5/09/2008 | Contribution in kind | 534 | 86,523 | 23,750 | 3,845,381 |
30/04/2009 | Contribution in kind | 5,625 | 92,148 | 250,000 | 4,095,381 |
24/11/2009 | Contribution in kind in the context of a partial split | 6,944 | 99,092 | 308,623 | 4,404,004 |
5/02/2010 | Contribution in kind | 4,380 | 103,472 | 194,664 | 4,598,668 |
31/03/2010 | Contribution in kind in the context of a partial split | 910 | 104,382 | 40,459 | 4,639,127 |
05/05/2010 | Contribution in kind | 3,288 | 107,671 | 146,135 | 4,785,262 |
21/06/2010 | Contribution in kind | 2,662 | 110,332 | 118,293 | 4,903,555 |
30/11/2010 | Contribution in kind | 2,212 | 112,544 | 98,301 | 5,001,856 |
30/11/2010 | Contribution in kind | 1,280 | 113,824 | 56,872 | 5,058,728 |
30/11/2010 | Contribution in kind | 66 | 113,890 | 2,935 | 5,061,663 |
16/06/2011 | Contribution in kind | 1,989 | 115,879 | 88,397 | 5,150,060 |
Capital evolution | Capital movement | Total remaining capital after the transaction | Number of shares created | Total number of shares | |
Date | Transaction | (in \u20ac 000) | (in \u20ac 000) | ||
27/06/2011 | Contribution in kind | 5,520 | 121,399 | 245,348 | 5,395,408 |
30/03/2012 | Contribution in kind in the context of a partial split | 937 | 122,336 | 41,666 | 5,437,074 |
4/7/2012 | Contribution in kind | 4,694 | 127,030 | 208,607 | 5,645,681 |
27/7/2012 | Contribution in kind - stock optional dividend | 3,768 | 130,798 | 167,441 | 5,813,122 |
28/6/2013 | Contribution in kind | 540 | 131,338 | 24,009 | 5,837,131 |
28/6/2013 | Capital increase in cash | 32,699 | 164,037 | 1,453,280 | 7,290,411 |
28/11/2014 | Contribution in kind | 6,054 | 170,091 | 269,062 | 7,559,473 |
28/5/2015 | Capital increase in cash | 28,345 | 198,436 | 1,259,740 | 8,819,213 |
29/1/2016 | Contribution in kind | 1,060 | 199,496 | 47,107 | 8,866,320 |
14/12/2016 | Contribution in kind | 2,604 | 202,100 | 115,735 | 8,982,055 |
14/12/2016 | Contribution in kind | 588 | 202,688 | 26,153 | 9,008,208 |
5/4/2017 | Contribution in kind | 3,924 | 206,612 | 174,404 | 9,182,612 |
29/6/2017 | Contribution in kind | 4,500 | 211,112 | 200,000 | 9,382,612 |
29/3/2018 | Contribution in kind | 1,890 | 213,002 | 83,973 | 9,466,585 |
29/3/2018 | Contribution in kind | 519 | 213,521 | 23,076 | 9,489,661 |
27/4/2018 | Capital increase in cash | 42,704 | 256,225 | 1,897,932 | 11,387,593 |
26/9/2018 | Contribution in kind | 788 | 257,013 | 35,000 | 11,422,593 |
1/4/2019 | Contribution in kind | 900 | 257,913 | 40,000 | 11,462,593 |
1/4/2019 | Contribution in kind | 630 | 258,543 | 28,000 | 11,490,593 |
24/6/2019 | Contribution in kind - stock optional dividend | 7,584 | 266,127 | 337,063 | 11,827,656 |
26/6/2019 | Contribution in kind | 16,875 | 283,002 | 750,000 | 12,577,656 |
22/7/2019 | Contribution in kind | 1,187 | 284,189 | 52,758 | 12,630,414 |
20/8/2020 | Contribution in kind - stock optional dividend | 795 | 284,985 | 35,349 | 12,665,763 |
14/10/2021 | Contribution in kind | 12,616 | 297,600 | 560,689 | 13,226,452 |
14/6/2022 | Capital increase in cash | 19,336 | 316,936 | 859,375 | 14,085,827 |
12/7/2023 | stock optional dividend | 6,520 | 323,456 | 289,760 | 14,375,587 |
27/6/2024 | stock optional dividend | 7,464 | 330,921 | 331,748 | 14,707,335 |
As per 31\u00a0March\u00a02025, the capital amounts to \u20ac\u00a0330,920,767.36 and is represented by 14,707,335 shares. There are no preferred shares. Each of these shares represents one vote at the shareholders\u2019 meeting, and these shares represent the denominator for the notification in the context of the transparency declarations.
The difference between the capital as indicated above and the capital included in the consolidated balance sheet is explained by the capital increase costs, which were deducted in the consolidated balance sheet.
The capital has been paid up in full.
Investment and amortisation table (in \u20ac 000) | Intangible non-current assets | Other tangible non-current assets | ||
31.03.2025 | 31.03.2024 | 31.03.2025 | 31.03.2024 | |
Acquisition value | ||||
Balance at the end of the previous financial year | 10,253 | 6,919 | 8,446 | 7,855 |
Acquisitions | 731 | 3,334 | 429 | 705 |
Transfers and disposals of assets | -208 | -115 | ||
Transfers to/from other accounts | ||||
Balance at the end of the financial year | 10,985 | 10,253 | 8,667 | 8,446 |
Amortisation and impairment losses | ||||
Balance at the end of the previous financial year | 1,379 | 727 | 1,995 | 1,516 |
Balance of acquired companies | ||||
Amortisation3 | 909 | 651 | 670 | 593 |
Transfers and disposals of assets | -161 | -113 | ||
Transfers to/from other accounts | ||||
Balance at the end of the financial year | 2,288 | 1,379 | 2,504 | 1,995 |
Net book value | 8,697 | 8,875 | 6,163 | 6,450 |
3 Amortisation of non-current intangible assets and other non-current tangible assets are recognised in the income statement under \u2018property management costs\u2019 and 'corporate operating costs'. The depreciation costs on cars are included in the personnel costs. |
Investment and amortisation table (in \u20ac 000) | Intangible non-current assets | Other tangible non-current assets | ||
31.03.2025 | 31.03.2024 | 31.03.2025 | 31.03.2024 | |
Acquisition value | ||||
Balance at the end of the previous financial year | 10,253 | 6,919 | 8,446 | 7,855 |
Acquisitions | 731 | 3,334 | 429 | 705 |
Transfers and disposals of assets | -208 | -115 | ||
Transfers to/from other accounts | ||||
Balance at the end of the financial year | 10,985 | 10,253 | 8,667 | 8,446 |
Amortisation and impairment losses | ||||
Balance at the end of the previous financial year | 1,379 | 727 | 1,995 | 1,516 |
Balance of acquired companies | ||||
Amortisation3 | 909 | 651 | 670 | 593 |
Transfers and disposals of assets | -161 | -113 | ||
Transfers to/from other accounts | ||||
Balance at the end of the financial year | 2,288 | 1,379 | 2,504 | 1,995 |
Net book value | 8,697 | 8,875 | 6,163 | 6,450 |
3 Amortisation of non-current intangible assets and other non-current tangible assets are recognised in the income statement under \u2018property management costs\u2019 and 'corporate operating costs'. The depreciation costs on cars are included in the personnel costs. |
IFRS 13
IFRS 13 introduced a uniform framework for valuation at fair value and the provision of information on valuation at fair value, where this valuation principle is obligatory or permitted on the basis of other IFRS standards. In this context, fair value is specifically defined as the price that would be received upon sale of an asset or that would
have to be paid upon the transfer of an obligation in an arm\u2019s length transaction between market parties on the valuation date.
Investment properties are recorded at fair value. Fair value is determined on the basis of one of the following levels of the IFRS 13 hierarchy:
\u2013Level 1: valuation based on quoted prices in active markets
\u2013Level 2: valuation based on directly or indirectly observable (external) inputs
\u2013Level 3: valuation entirely or partly based on unobservable (external) inputs
Investment properties fall under level 3 according to the IFRS 13 classification.
Valuation methodology investment properties
Investment properties are recorded on the basis of appraisal reports drawn up by independent expert real estate appraisers. Investment properties are valued at fair value. This fair value is based on the market value (i.e. corrected for transfer tax as described in the \u201cAccounting policies\u201d described above in this Annual Financial Report).
The methods used by the independent real estate appraisers are the following:
The investment value is generally calculated on the basis of a GIY (Gross Initial Yield) capitalisation of the current contractual basic annual rent, taking into account possible corrections like estimated market rental value, vacancy, step-rents, rent-free periods etc. The GIY depends on current output on the investment market, taking into account the location, the suitability of the site, the quality of the tenant and the building at the moment of the valuation.
In case of buildings where the property rights are divided in bare ownership on the one hand and rights of superficies or long lease rights on the other, the value of the superficies or long lease rights is determined by discounting (Discounted Cash Flow) the net rental income, i.e. after deduction of the superficies or ground rent, until the end of the long lease or superficies agreement.
The value of the bare ownership is determined by updating (Discounted Cash Flow) the periodical superficies or leasehold rent until the expiry date of this agreement.
Unobservable inputs for the determination of the fair value:
31.03.2025 | 31.03.2024 | |||||
Country | Method | Input | Range | Weighted average | Range | Weighted average |
Belgium | Gross Initial Yield-capitalization | Capitalisation rate (%) | 5,25%-10% | 6.77% | 5,25% - 10 % | 6.64% |
Annual rent (EUR/m\u00b2) | 25 - 250 | 113.93 | 25 - 250 | 110.75 | ||
Remaining lease duration (expiry date) (in months) | 0-540m | 98m | 0-552m | 92m | ||
Remaining lease duration (first break option) (in months) | 0-192m | 24m | 0-204m | 19m | ||
Vacancy (in months) | 0m - 12 m | / | 0m - 12m | / | ||
DCF (Discounted Cashflow) | Discount rate (%) | 5,75%-10% | 6.65% | 5,7% - 10,00% | 6.80% | |
Annual rent (EUR/m\u00b2) | 25 - 250 | 117.66 | 50-250 | 112.21 | ||
Remaining lease duration (expiry date) (in months) | 0-456m | 91m | 0-468m | 90m | ||
Remaining lease duration (first break option) (in months) | 0-456m | 32m | 0-468m | 38m | ||
Vacancy (in months) | 0m-12m | / | 0m - 12 m | / | ||
The Netherlands | Gross Initial Yield-capitalization | Capitalisation rate (%) | 5,21%-10,51% | 6.80% | 5,58%-10,36% | 8.27% |
Annual market rent (EUR/m\u00b2) | 35 - 364 | 112.36 | 50 - 351 | 107.23 | ||
Remaining lease duration (expiry date) (in months) | 0-156m | 47m | 0-168m | 43m | ||
Remaining lease duration (first break option) (in months) | 0-156m | 44m | 0-168m | 43m | ||
Vacancy (in months) | 0-12m | / | 0-12m | / |
Sensitivity of investment property valuations
The sensitivity of the fair value in relation to changes in the significant unobservable inputs used to determine the fair value of the properties classified in level 3 (in accordance with the IFRS fair value hierarchy) is the following (ceteris paribus):
\u2013the effect of the increase (decrease) of the rental income by 1% leads to an increase (a decrease) in the portfolio\u2019s fair value by \u20ac\u00a020.70 million.
\u2013The effect of an increase (decrease) of the rental income by 2% or 5% is linear. The effect of an increase in the yield by 100 bps leads to a decrease in the portfolio\u2019s fair value by \u20ac 263.64 million.
\u2013A decrease in the yield by 100 bps leads to an increase in the portfolio\u2019s fair value by \u20ac 353.77 million.
Valuation methodology solar panels
Within the framework of ESG objectives, investments are being made in solar panels which, in accordance with GVV legislation, must be valued by a recognized real estate expert. The value of the solar panels is determined using a theoretical model based on the individual potential electricity production of each installation. They are then valued on the basis of the variable market price for electricity at the time of valuation. Hereby abstraction is made of the current operating conditions in order to arrive at a kind of estimated rental value for the installations. By applying a return that would be paid if the installation were taken over by third parties, the market value is determined.
This is an overview of the solar panel investments:
Country | Year of construction | Fair value (\u20ac) | Rental income (\u20ac) | Acquisition value (\u20ac) |
Belgium | 2017-2024 | 6,987,365.46 | 463,280.00 | 4,916,467.48 |
The Netherlands | 2017-2022 | 2,414,035.04 | 102,350.00 | 1,120,775.28 |
Non-observable inputs in determining fair value:
Valuation methodology | Discounted cash flow |
Implicit sunshine duration | The valuation model takes into account 1,088 full-load hours on an annual basis and a yield of 85%, which corresponds to 925 hours per year. On 31 March 2025, the total valued installed capacity will be 8 MWp. |
Energy price | The long-term energy price is determined based on an analysis of historical and expected long-term energy prices. In addition, 65% self-consumption and 35% injection into the grid are taken into account. The valuation on 31 March 2025 takes into account an energy tariff between EUR 270/MWh and EUR 290/MWh. A discount of 20% is applied to the market price. The applicable injection rates are between EUR 35/MWh and EUR 50/MWh. This results in an energy price between EUR 150/MWh and EUR 170/MWh. Any subsidies or green energy certificates are not taken into account. |
Inflation rate | Long-term inflation is based on the percentages applied to the real estate investments by the appraiser, which fell within the range of 2% - 2.5% for both Belgium and the Netherlands. |
Discount rate | The calculated annual net cash flows are discounted at a discount rate of 10%, which corresponds to the minimum return that investors expect for PV installations. This discount rate is derived from a market analysis by the appraiser of realized returns. |
Decline in yield | The solar panel installation has a yield decline of 0.5% per year and will be decommissioned after 25 years. This does not take into account any residual value of the installation or the cost of removing the installation. |
Maintenance and capex | Various operating costs related to the operation of the installation are taken into account. A fixed maintenance fee is charged for the maintenance of the roof and the installation. Insurance costs are also taken into account. If applicable, the right of superficies is included as a cost. |
Sensitivity of solar panels valuations
The sensitivity of fair value to changes in significant unobservable inputs used in determining the fair value of items classified in level 3 according to the IFRS fair value hierarchy is as follows (ceteris paribus):
Impact on fair value at: | ||
Non-observable inputs | decline | increase |
Implicit sunshine duration | negative | positive |
Solar panel efficiency | negative | positive |
Energy price | negative | positive |
Discount rate | positive | negative |
Maintenance and capex | positive | negative |
The effect of a 10% increase (decrease) in energy prices results in an increase (decrease) in the fair value of the solar panels of \u20ac 1.09 million. The effect of a 50 bps increase in the discount rate results in a decrease in the fair value of the solar panels by \u20ac 0.36 million. A 50 bps decrease in the discount rate results in an increase in the fair value of the solar panels by \u20ac 0.38 million.
Valuation process
The valuation process for real estate is determined by the CEO and the CFO after approval by the audit committee. They also decide on the independent real estate expert who will be appointed for the different parts of the real estate portfolio. Typically, contracts are entered into for a renewable term of three years. The fees of the real estate experts are determined for the term of their mandate and are not connected to the value of the properties that are the subject of the valuation.
An independent real estate expert is appointed for each country in order to ensure that the specific characteristics of each geographic region are reflected correctly. The real estate portfolio is valued on a quarterly basis. The valuation method (see above) is determined by the real estate expert. The valuation cycle in the course of a financial year consists of a visit to the property, after which a detailed report is drawn up, as well as three desktop reviews.
The reports of the independent real estate experts are based on:
\u2013Information provided by the company, such as current rents, terms and conditions of lease agreements, possible rent reductions, investments etc. This information originates from the financial and management system of the public BE-REIT and is governed by the company's general monitoring system.
\u2013Assumptions and valuation models put forward by real estate experts. The assumptions mainly relate to the market situation and concern yields and discount rates. They are based on their professional assessment and perception of the market.
The information provided to the real estate experts and the assumptions and valuation models used are checked by the company\u2019s finance manager and the public BE-REIT\u2019s management. All material differences (positive as well as negative) in absolute and relevant terms (versus the previous quarter and versus the previous year) are compared and analysed every quarter. On this basis, the management meets with the real estate experts with a view to accurately and fully reflecting all information regarding the various sites in the valuations. Finally, the final valuations are presented to the audit committee.
Impact of the sale of investment properties
Valuation methodology investment properties
Investment properties are recorded on the basis of appraisal reports drawn up by independent expert real estate appraisers. Investment properties are valued at fair value. This fair value is based on the market value (i.e. corrected for transfer tax as described in the \u201cAccounting policies\u201d described above in this Annual Financial Report).
The methods used by the independent real estate appraisers are the following:
The investment value is generally calculated on the basis of a GIY (Gross Initial Yield) capitalisation of the current contractual basic annual rent, taking into account possible corrections like estimated market rental value, vacancy, step-rents, rent-free periods etc. The GIY depends on current output on the investment market, taking into account the location, the suitability of the site, the quality of the tenant and the building at the moment of the valuation.
In case of buildings where the property rights are divided in bare ownership on the one hand and rights of superficies or long lease rights on the other, the value of the superficies or long lease rights is determined by discounting (Discounted Cash Flow) the net rental income, i.e. after deduction of the superficies or ground rent, until the end of the long lease or superficies agreement.
The value of the bare ownership is determined by updating (Discounted Cash Flow) the periodical superficies or leasehold rent until the expiry date of this agreement.
Unobservable inputs for the determination of the fair value:
31.03.2025 | 31.03.2024 | |||||
Country | Method | Input | Range | Weighted average | Range | Weighted average |
Belgium | Gross Initial Yield-capitalization | Capitalisation rate (%) | 5,25%-10% | 6.77% | 5,25% - 10 % | 6.64% |
Annual rent (EUR/m\u00b2) | 25 - 250 | 113.93 | 25 - 250 | 110.75 | ||
Remaining lease duration (expiry date) (in months) | 0-540m | 98m | 0-552m | 92m | ||
Remaining lease duration (first break option) (in months) | 0-192m | 24m | 0-204m | 19m | ||
Vacancy (in months) | 0m - 12 m | / | 0m - 12m | / | ||
DCF (Discounted Cashflow) | Discount rate (%) | 5,75%-10% | 6.65% | 5,7% - 10,00% | 6.80% | |
Annual rent (EUR/m\u00b2) | 25 - 250 | 117.66 | 50-250 | 112.21 | ||
Remaining lease duration (expiry date) (in months) | 0-456m | 91m | 0-468m | 90m | ||
Remaining lease duration (first break option) (in months) | 0-456m | 32m | 0-468m | 38m | ||
Vacancy (in months) | 0m-12m | / | 0m - 12 m | / | ||
The Netherlands | Gross Initial Yield-capitalization | Capitalisation rate (%) | 5,21%-10,51% | 6.80% | 5,58%-10,36% | 8.27% |
Annual market rent (EUR/m\u00b2) | 35 - 364 | 112.36 | 50 - 351 | 107.23 | ||
Remaining lease duration (expiry date) (in months) | 0-156m | 47m | 0-168m | 43m | ||
Remaining lease duration (first break option) (in months) | 0-156m | 44m | 0-168m | 43m | ||
Vacancy (in months) | 0-12m | / | 0-12m | / |
Valuation process
The valuation process for real estate is determined by the CEO and the CFO after approval by the audit committee. They also decide on the independent real estate expert who will be appointed for the different parts of the real estate portfolio. Typically, contracts are entered into for a renewable term of three years. The fees of the real estate experts are determined for the term of their mandate and are not connected to the value of the properties that are the subject of the valuation.
An independent real estate expert is appointed for each country in order to ensure that the specific characteristics of each geographic region are reflected correctly. The real estate portfolio is valued on a quarterly basis. The valuation method (see above) is determined by the real estate expert. The valuation cycle in the course of a financial year consists of a visit to the property, after which a detailed report is drawn up, as well as three desktop reviews.
The reports of the independent real estate experts are based on:
\u2013Information provided by the company, such as current rents, terms and conditions of lease agreements, possible rent reductions, investments etc. This information originates from the financial and management system of the public BE-REIT and is governed by the company's general monitoring system.
\u2013Assumptions and valuation models put forward by real estate experts. The assumptions mainly relate to the market situation and concern yields and discount rates. They are based on their professional assessment and perception of the market.
The information provided to the real estate experts and the assumptions and valuation models used are checked by the company\u2019s finance manager and the public BE-REIT\u2019s management. All material differences (positive as well as negative) in absolute and relevant terms (versus the previous quarter and versus the previous year) are compared and analysed every quarter. On this basis, the management meets with the real estate experts with a view to accurately and fully reflecting all information regarding the various sites in the valuations. Finally, the final valuations are presented to the audit committee.
Impact of the sale of investment properties
Financial instruments on 31\u00a0March\u00a02024
Summary of financial instruments as at closing date | 31.03.2025 | 31.03.2024 | ||||
(in \u20ac 000) | Categories | Level | Book value | Fair value | Book value | Fair value |
I. Non-current assets | ||||||
Finance lease receivables | A | 2 | 1,030 | 1,030 | 1,030 | 1,030 |
Loans and receivables | A | 2 | 32 | 32 | 40 | 40 |
Financial non-current assets | A/C | 2 | 31,172 | 31,172 | 44,924 | 44,924 |
II. Current assets | ||||||
Trade receivables and other receivables | A | 2 | 17,467 | 17,467 | 21,938 | 21,938 |
Cash and cash equivalents | B | 2 | 2,917 | 2,917 | 7,089 | 7,089 |
Total financial instruments on the assets side of the balance sheet | 52,617 | 52,617 | 75,021 | 75,021 | ||
I. Non-current liabilities | ||||||
Interest-bearing liabilities | A | 2 | ||||
Credit institutions | A | 2 | 648,655 | 646,878 | 686,535 | 680,578 |
Long term financial lease | A | 2 | 4,557 | 4,557 | 5,079 | 5,079 |
Bond loan | A | 2 | 175,743 | 174,504 | 175,572 | 171,544 |
Other non-current liabilities | A | 2 | ||||
Other financial liabilities | C | 2 | 0 | 0 | 0 | 0 |
II. Current liabilities | ||||||
Interest-bearing liabilities | A | 2 | 61,484 | 61,484 | 46,682 | 46,682 |
Current trade debts and other debts | A | 2 | 17,237 | 17,237 | 19,871 | 19,871 |
Total financial instruments on the liabilities side of the balance sheet | 907,675 | 904,660 | 933,739 | 923,754 |
The categories correspond to the following financial instruments:
A.Financial assets or liabilities (including receivables and loans) held to maturity at amortised cost.
B.Investments held to maturity at amortised cost.
C.Assets or liabilities held at fair value through profit and loss except for financial instruments designated as hedging instruments that are subject to hedge accounting.
The majority of the financial instruments of the Group correspond to level 2 in the fair values hierarchy. Fair value valuation is carried out regularly.
Level 2 in the fair value hierarchy includes other financial assets and liabilities of which the fair value can be determined by reference to other inputs which are directly or indirectly observable for the relevant assets or liabilities.
The valuation techniques regarding the fair value of level 2 financial instruments are the following:
\u2013The item \u201cother financial liabilities\u201d refers to interest rate swaps of which the fair value can be determined by means of interest rates applicable on active markets; these rates are generally provided by financial institutions.
\u2013The fair value of the other level 2 financial assets and liabilities is virtually equal to their book value:
\u2022either because they have a short-term maturity (e.g. trade receivables and debts);
\u2022or because they have a variable interest rate.
The fair value of debts with a fixed interest rate is estimated by discounting their future cash flows at a rate that reflects the Group\u2019s credit risk.
Financial instruments at amortised cost
Since trade receivables and trade debts are short-term instruments, the fair value approximates the nominal value of these financial assets and liabilities.
On 31\u00a0March\u00a02025, Retail Estates nv had \u20ac 553.79\u00a0million of financial debts at a variable interest rate and \u20ac\u00a0332.10\u00a0million of financial debts at a fixed interest rate1. 100.70% of the loans have a fixed interest rate or
are hedged using an interest rate swap contract. The fixed interest rates at which these long-term debts were originally concluded in most cases no longer correspond to prevailing money market rates, resulting in a difference between their book value and their fair value. The table below compares the total amount of fixed-rate debts at book value and at fair value at the end of the 2024-2025 financial year. The fair value of the fixed-rate debts is estimated by discounting their future cash flows at an interest rate that reflects the Group\u2019s credit risk. The fair value of the fixed-rate debts is mentioned in the table below. The book value is equal to the amortised cost.
31.03.2025 | 31.03.2024 | |||
Financial debts at fixed interest rate | Book value | Fair value | Book value | Fair value |
Financial debts at fixed interest rate | 332,095 | 329,080 | 333,068 | 323,083 |
Financial instruments at fair value
Fair value of financial assets and liabilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Fair value of financial derivatives - Liabilities | 0 | |
Fair value of financial derivatives - Assets | 24,597 | 38,275 |
Total fair value of financial assets and liabilities | 24,597 | 38,275 |
The Group makes use of financial derivatives (interest rate swaps, floors and caps) to hedge interest rate risks arising from operational, financial and investment activities. Financial derivatives are initially recognised at cost and revalued to their fair value on the next reporting date. The variation in instruments amounts to \u20ac\u00a0-13.67\u00a0million in the current financial year. The derivatives currently used by Retail Estates nv qualify as cash flow hedges only to a limited extent. Changes in the fair value of the derivatives that do not qualify as cash flow hedges are
recorded directly in the income statement. An amount of \u20ac -13.00 million was recorded in the income statement with respect to the financial instruments. Swaps qualifying as cash flow hedges are booked directly as shareholders\u2019 equity and are not included in the income statement. This financial year, \u20ac\u00a0-0.66 million was recorded directly in equity. The interest rate swaps are level 2 instruments.
Overview of financial instruments:
Other non-current liabilities
Starting date | Ending date | Interest rate | Variable interest rate | Notional amount (in \u20ac 000) | Type of derivative | Hedge accounting | |
1 | July 2016 | April 2026 | 1.26% | Euribor 3 M + | 26,000 | IRS | YES |
2 | March 2018 | March 2026 | 1.10% | Euribor 3 M + | 20,000 | IRS | NO |
3 | December 2018 | December 2026 | 1.06% | Euribor 3 M + | 25,000 | IRS | NO |
4 | January 2018 | January 2026 | 0.74% | Euribor 3 M + | 25,000 | IRS | NO |
5 | July 2016 | April 2026 | -2.25% | Euribor 3 M + | 26,000 | FLOOR | YES |
6 | March 2018 | March 2026 | 0.00% | Euribor 3 M + | 20,000 | FLOOR | NO |
7 | December 2018 | December 2026 | 0.00% | Euribor 3 M + | 25,000 | FLOOR | NO |
8 | June 2023 | June 2026 | 0.68% | Euribor 3 M + | 50,000 | IRS | NO |
9 | December 2024 | December 2028 | 0.70% | Euribor 3 M + | 25,000 | IRS | NO |
10 | December 2024 | December 2028 | 0.72% | Euribor 3 M + | 25,000 | IRS | NO |
11 | March 2024 | March 2029 | 0.40% | Euribor 3 M + | 25,000 | IRS | NO |
12 | March 2024 | March 2029 | 0.37% | Euribor 3 M + | 25,000 | IRS | NO |
13 | March 2024 | March 2029 | 0.28% | Euribor 3 M + | 25,000 | IRS | NO |
14 | June 2024 | March 2029 | 0.03% | Euribor 3 M + | 25,000 | IRS | NO |
15 | March 2024 | June 2029 | 0.21% | Euribor 3 M + | 50,000 | IRS | NO |
16 | December 2026 | December 2029 | -0.06% | Euribor 3 M + | 25,000 | IRS | NO |
17 | June 2021 | June 2027 | 0.85% | Euribor 3 M + | 60,000 | IRS | NO |
18 | June 2022 | June 2026 | 0.63% | Euribor 3 M + | 25,000 | IRS | NO |
19 | June 2022 | June 2026 | 0.83% | Euribor 3 M + | 14,000 | IRS | NO |
20 | June 2022 | June 2026 | 0.62% | Euribor 3 M + | 10,000 | IRS | NO |
21 | July 2022 | July 2027 | 1.44% | Euribor 3 M + | 15,000 | IRS | NO |
22 | June 2022 | June 2026 | 1.21% | Euribor 3 M + | 30,000 | IRS | NO |
23 | December 2023 | December 2029 | 0.89% | Euribor 3 M + | 35,000 | IRS | NO |
24 | March 2024 | March 2027 | 0.49% | Euribor 3 M + | 25,000 | IRS | NO |
Starting date | Ending date | Interest rate | Variable interest rate | Notional amount (in \u20ac 000) | Type of derivative | Hedge accounting | |
25 | June 2026 | December 2029 | 2.61% | Euribor 3 M + | 50,000 | IRS | NO |
26 | June 2026 | December 2029 | 3.08% | Euribor 3 M + | 50,000 | IRS | NO |
27 | June 2026 | December 2029 | 2.76% | Euribor 3 M + | 50,000 | IRS | NO |
28 | March 2027 | March 2028 | 2.42% | Euribor 3 M + | 50,000 | IRS | NO |
29 | December 2025 | December 2031 | 2.32% | Euribor 3 M + | 50,000 | IRS | NO |
30 | March 2028 | March 2032 | 2.54% | Euribor 3 M + | 50,000 | IRS | NO |
31 | March 2025 | March 2028 | 2.22% | Euribor 3 M + | 70,000 | IRS | NO |
32 | December 2029 | March 2032 | 2.11% | Euribor 3 M + | 50,000 | IRS | NO |
33 | December 2026 | March 2031 | 2.40% | Euribor 3 M + | 50,000 | IRS | NO |
Breakdown by maturity of liquidity obligation associated with the derivative products (in \u20ac 000) | 31.03.2025 |
Between zero and two year(s) | -9,651 |
Between two and five years | -7,127 |
More than five years | -1,611 |
Total | -18,389 |
List of consolidated companies and changes in the circle of consolidation
As per 31\u00a0March\u00a02025, the following subsidiaries are part of the consolidation perimeter of Retail Estates nv:
Subsidiary | External financial debts5 (in \u20ac 000) | Investment properties5 (in \u20ac 000) | Rental income6 (in \u20ac 000) | Participation percentage |
Retail Warehousing Invest | 51,363 | 3,173 | 100.00% | |
Inducom | 92,464 | 0 | 100.00% | |
Finsbury Properties | 0 | 17 | 100.00% | |
Regreen | 8,279 | 548 | 100.00% | |
Veilinghof 't Sas | 0 | 26.19% | ||
Retail Estates Nederland | 54,268 | 5,608 | 100.00% | |
Venlo Invest | 34,057 | 2,540 | 100.00% | |
Cruquius Invest | 80,701 | 5,914 | 100.00% | |
Spijkenisse Invest | 10,250 | 46,871 | 3,227 | 100.00% |
Heerlen I Invest | 68,285 | 4,910 | 100.00% | |
Heerlen II Invest | 59,562 | 4,441 | 100.00% | |
Retail Estates Middelburg Invest | 33,339 | 2,815 | 100.00% | |
Breda I Invest | 41,631 | 3,240 | 100.00% | |
Breda II Invest | 25,735 | 2,052 | 100.00% | |
Naaldwijk Invest | 21,153 | 1,976 | 100.00% | |
Alex Invest | 37,307 | 3,475 | 50.00% | |
Zaandam Invest | 36,453 | 2,081 | 100.00% | |
Osbroek Invest | 74,930 | 5,593 | 100.00% | |
Aquarius Invest | 41,284 | 2,502 | 100.00% | |
Waterman Invest | 39,214 | 2,730 | 100.00% | |
SVK | 3,268 | 221 | 100.00% | |
5 Value at closing date of the consolidated figures (31.03.2025) including non-current assets under construction (IAS 40). | ||||
6 For the period the companies are part of the Group in the current financial year. |
Aquarius Invest nv and Waterman Invest nv
On 13 June 2023 the subsidiaries\u00a0 \u201cAquarius Invest N.V.\u201d and \"Waterman Invest N.V.\" were incorporated within the framework of the acquisition of retail park Alexandrium Megastores in Rotterdam (the Netherlands). The investment in the acquisition of the retail park amounts to \u20ac 81.5 million (including transfer tax, due diligence and transaction costs).
Alexandrium Megastores is part of the largest out-of-town retail area in the Randstad region. The structural connection between Woonmall Alexandrium, the regional Shopping Center Alexandrium (Alexandrium I \u2013 owned by Kl\u00e9pierre) and the retail park Alexandrium II Megastores creates a very complementary mix and a retail offer that is exceptional for the Netherlands, with a total of 200 retail units over a surface area of 110,000 m\u00b2. All shops are open 7 days a week and attract 15 million visitors each year.
Inducom nv
The statutory financial statements of Inducom have been prepared for the first time in accordance with accounting standards consistent with International Financial Reporting Standards as implemented by the FIIS legislation. This follows the registration of the company as a FIIS from 14 November 2023 on the list of specialized real estate investment funds in application of the Royal Decree of 9 November 2016 relating to specialized real estate investment funds.
The company has applied all IFRS standards and interpretations applicable on the balance sheet date of 31 December 2023, for the figures as of the date of transition to IFRS (i.e. 1 January 2022).
On 29 March 2024, Retail Estates, as the sole shareholder of RWI, decided on the partial demerger of RWI, with the result that part of RWI's real estate portfolio was transferred to Inducom N.V. The acquired value of Retail Warehousing Invest N.V. includes a significant number of bare property rights (\u201ctr\u00e9fonds\u201d) whose ground lease is held by Retail Estates N.V. with a current market value of approximately \u20ac 78.19 million.
Retail Warehousing Invest nv
Retail Estates has held a participating interest in Retail Warehousing Invest nv, an institutional Belgian real estate investment trust (BE-REIT) (\u201cRWI\u201d), since 2012. Originally, Retail Estates had a co-shareholder in RWI, holding a 37.5% minority interest. In 2016, this minority shareholder \u201cswapped\u201d the share participation interest in RWI for a share participation in Retail Estates by means of a contribution in kind within the context of the authorised capital.\u00a0 Retail Estates has been the sole shareholder of RWI ever since.
On 29 March 2024, Retail Estates, being the sole shareholder of RWI, decided to proceed to a partial demerger of RWI. As a consequence, part of the real estate portfolio of RWI was transferred to Inducom nv, a specialised real estate investment fund under Belgian law and also a 100% subsidiary of Retail Estates.
SVK nv
During the past fiscal year, control was acquired of the company S.V.K. N.V. The acquisition provides for the expansion of the site in Sint-Joris-Winge.
Other subsidiaries
All subsidiaries are fully consolidated, with the exception of Veilinghof \u2019t Sas, to which the change in equity method is applied (please refer to \u201cSignificant accounting policies\u201d under the heading \u201cConsolidation principles\u201d for more information about this consolidation method). Retail Estates has a 26.19% participating interest in Veilinghof \u2018t Sas. Retail Estates funded the acquisition of this participating interest by an amount of \u20ac 5 million.
Key sources of estimation uncertainty in accordance with IAS 1.125:
The implementation of the Group's accounting policies includes important evaluations in the field of classification of lease contracts and acquisition of shares in regulated real estate companies. Accounting estimates are used when the Group determines the fair value of its
investment properties and financial instruments. The most important principles for the performance of assessments are based on the Group's experience and the contribution of the real estate experts. The key sources of estimation uncertainty are discussed in notes 21 (investment properties), 35 (financial instruments) and 41 (list of consolidated companies).", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:5493007CO5W5OBFG7L21", "period": "2024-04-01T00:00:00/2025-04-01T00:00:00" } }, "f-509": { "value": "The sensitivity of the fair value in relation to changes in the significant unobservable inputs used to determine the fair value of the properties classified in level 3 (in accordance with the IFRS fair value hierarchy) is the following (ceteris paribus):\u2013the effect of the increase (decrease) of the rental income by 1% leads to an increase (a decrease) in the portfolio\u2019s fair value by \u20ac\u00a020.70 million.\u2013The effect of an increase (decrease) of the rental income by 2% or 5% is linear. The effect of an increase in the yield by 100 bps leads to a decrease in the portfolio\u2019s fair value by \u20ac 263.64 million.\u2013A decrease in the yield by 100 bps leads to an increase in the portfolio\u2019s fair value by \u20ac 353.77 million.Note 35Financial instruments on 31\u00a0March\u00a02024Summary of financial instruments as at closing date31.03.202531.03.2024(in \u20ac 000)CategoriesLevelBook valueFair valueBook valueFair valueI. Non-current assetsFinance lease receivablesA21,0301,0301,0301,030Loans and receivablesA232324040Financial non-current assetsA/C231,17231,17244,92444,924II. Current assetsTrade receivables and other receivablesA217,46717,46721,93821,938Cash and cash equivalentsB22,9172,9177,0897,089Total financial instruments on the assets side of the balance sheet52,61752,61775,02175,021I. Non-current liabilitiesInterest-bearing liabilitiesA2Credit institutionsA2648,655646,878686,535680,578Long term financial leaseA24,5574,5575,0795,079Bond loanA2175,743174,504175,572171,544Other non-current liabilitiesA2Other financial liabilitiesC20000II. Current liabilitiesInterest-bearing liabilitiesA261,48461,48446,68246,682Current trade debts and other debtsA217,23717,23719,87119,871Total financial instruments on the liabilities side of the balance sheet907,675904,660933,739923,754The categories correspond to the following financial instruments:A.Financial assets or liabilities (including receivables and loans) held to maturity at amortised cost.B.Investments held to maturity at amortised cost.C.Assets or liabilities held at fair value through profit and loss except for financial instruments designated as hedging instruments that are subject to hedge accounting.The majority of the financial instruments of the Group correspond to level 2 in the fair values hierarchy. Fair value valuation is carried out regularly.Level 2 in the fair value hierarchy includes other financial assets and liabilities of which the fair value can be determined by reference to other inputs which are directly or indirectly observable for the relevant assets or liabilities.The valuation techniques regarding the fair value of level 2 financial instruments are the following: \u2013The item \u201cother financial liabilities\u201d refers to interest rate swaps of which the fair value can be determined by means of interest rates applicable on active markets; these rates are generally provided by financial institutions.\u2013The fair value of the other level 2 financial assets and liabilities is virtually equal to their book value:\u2022either because they have a short-term maturity (e.g. trade receivables and debts);\u2022or because they have a variable interest rate.The fair value of debts with a fixed interest rate is estimated by discounting their future cash flows at a rate that reflects the Group\u2019s credit risk.Financial instruments at amortised costSince trade receivables and trade debts are short-term instruments, the fair value approximates the nominal value of these financial assets and liabilities. On 31\u00a0March\u00a02025, Retail Estates nv had \u20ac 553.79\u00a0million of financial debts at a variable interest rate and \u20ac\u00a0332.10\u00a0million of financial debts at a fixed interest rate1. 100.70% of the loans have a fixed interest rate or are hedged using an interest rate swap contract. The fixed interest rates at which these long-term debts were originally concluded in most cases no longer correspond to prevailing money market rates, resulting in a difference between their book value and their fair value. The table below compares the total amount of fixed-rate debts at book value and at fair value at the end of the 2024-2025 financial year. The fair value of the fixed-rate debts is estimated by discounting their future cash flows at an interest rate that reflects the Group\u2019s credit risk. The fair value of the fixed-rate debts is mentioned in the table below. The book value is equal to the amortised cost. 31.03.202531.03.2024Financial debts at fixed interest rateBook valueFair valueBook valueFair valueFinancial debts at fixed interest rate332,095329,080333,068323,083Financial instruments at fair valueFair value of financial assets and liabilities (in \u20ac 000)31.03.202531.03.2024Fair value of financial derivatives - Liabilities0Fair value of financial derivatives - Assets24,59738,275Total fair value of financial assets and liabilities24,59738,275The Group makes use of financial derivatives (interest rate swaps, floors and caps) to hedge interest rate risks arising from operational, financial and investment activities. Financial derivatives are initially recognised at cost and revalued to their fair value on the next reporting date. The variation in instruments amounts to \u20ac\u00a0-13.67\u00a0million in the current financial year. The derivatives currently used by Retail Estates nv qualify as cash flow hedges only to a limited extent. Changes in the fair value of the derivatives that do not qualify as cash flow hedges are recorded directly in the income statement. An amount of \u20ac -13.00 million was recorded in the income statement with respect to the financial instruments. Swaps qualifying as cash flow hedges are booked directly as shareholders\u2019 equity and are not included in the income statement. This financial year, \u20ac\u00a0-0.66 million was recorded directly in equity. The interest rate swaps are level 2 instruments.Overview of financial instruments:Other non-current liabilitiesStarting dateEnding dateInterest rateVariable interest rateNotional amount (in \u20ac 000)Type of derivativeHedge accounting1July 2016April 20261.26%Euribor 3 M +26,000IRSYES2March 2018March 20261.10%Euribor 3 M +20,000IRSNO3December 2018December 20261.06%Euribor 3 M +25,000IRSNO4January 2018January 20260.74%Euribor 3 M +25,000IRSNO5July 2016April 2026-2.25%Euribor 3 M +26,000FLOORYES6March 2018March 20260.00%Euribor 3 M +20,000FLOORNO7December 2018December 20260.00%Euribor 3 M +25,000FLOORNO8June 2023June 20260.68%Euribor 3 M +50,000IRSNO9December 2024December 20280.70%Euribor 3 M +25,000IRSNO10December 2024December 20280.72%Euribor 3 M +25,000IRSNO11March 2024March 20290.40%Euribor 3 M +25,000IRSNO12March 2024March 20290.37%Euribor 3 M +25,000IRSNO13March 2024March 20290.28%Euribor 3 M +25,000IRSNO14June 2024March 20290.03%Euribor 3 M +25,000IRSNO15March 2024June 20290.21%Euribor 3 M +50,000IRSNO16December 2026December 2029-0.06%Euribor 3 M +25,000IRSNO17June 2021June 20270.85%Euribor 3 M +60,000IRSNO18June 2022June 20260.63%Euribor 3 M +25,000IRSNO19June 2022June 20260.83%Euribor 3 M +14,000IRSNO20June 2022June 20260.62%Euribor 3 M +10,000IRSNO21July 2022July 20271.44%Euribor 3 M +15,000IRSNO22June 2022June 20261.21%Euribor 3 M +30,000IRSNO23December 2023December 20290.89%Euribor 3 M +35,000IRSNO24March 2024March 20270.49%Euribor 3 M +25,000IRSNOStarting dateEnding dateInterest rateVariable interest rateNotional amount (in \u20ac 000)Type of derivativeHedge accounting25June 2026December 20292.61%Euribor 3 M +50,000IRSNO26June 2026December 20293.08%Euribor 3 M +50,000IRSNO27June 2026December 20292.76%Euribor 3 M +50,000IRSNO28March 2027March 20282.42%Euribor 3 M +50,000IRSNO29December 2025December 20312.32%Euribor 3 M +50,000IRSNO30March 2028March 20322.54%Euribor 3 M +50,000IRSNO31March 2025March 20282.22%Euribor 3 M +70,000IRSNO32December 2029March 20322.11%Euribor 3 M +50,000IRSNO33December 2026March 20312.40%Euribor 3 M +50,000IRSNOBreakdown by maturity of liquidity obligation associated with the derivative products (in \u20ac 000)31.03.2025Between zero and two year(s)-9,651Between two and five years-7,127More than five years-1,611Total-18,389Note 41List of consolidated companies and changes in the circle of consolidationAs per 31\u00a0March\u00a02025, the following subsidiaries are part of the consolidation perimeter of Retail Estates nv:SubsidiaryExternal financial debts5 (in \u20ac 000)Investment properties5 (in \u20ac 000)Rental income6 (in \u20ac 000)Participation percentageRetail Warehousing Invest51,3633,173100.00%Inducom92,4640100.00%Finsbury Properties017100.00%Regreen8,279548100.00%Veilinghof 't Sas026.19%Retail Estates Nederland 54,2685,608100.00%Venlo Invest34,0572,540100.00%Cruquius Invest80,7015,914100.00%Spijkenisse Invest10,25046,8713,227100.00%Heerlen I Invest68,2854,910100.00%Heerlen II Invest59,5624,441100.00%Retail Estates Middelburg Invest33,3392,815100.00%Breda I Invest41,6313,240100.00%Breda II Invest25,7352,052100.00%Naaldwijk Invest21,1531,976100.00%Alex Invest37,3073,47550.00%Zaandam Invest36,4532,081100.00%Osbroek Invest74,9305,593100.00%Aquarius Invest41,2842,502100.00%Waterman Invest39,2142,730100.00%SVK3,268221100.00%5 Value at closing date of the consolidated figures (31.03.2025) including non-current assets under construction (IAS 40).6 For the period the companies are part of the Group in the current financial year.Aquarius Invest nv and Waterman Invest nvOn 13 June 2023 the subsidiaries\u00a0 \u201cAquarius Invest N.V.\u201d and \"Waterman Invest N.V.\" were incorporated within the framework of the acquisition of retail park Alexandrium Megastores in Rotterdam (the Netherlands). The investment in the acquisition of the retail park amounts to \u20ac 81.5 million (including transfer tax, due diligence and transaction costs). Alexandrium Megastores is part of the largest out-of-town retail area in the Randstad region. The structural connection between Woonmall Alexandrium, the regional Shopping Center Alexandrium (Alexandrium I \u2013 owned by Kl\u00e9pierre) and the retail park Alexandrium II Megastores creates a very complementary mix and a retail offer that is exceptional for the Netherlands, with a total of 200 retail units over a surface area of 110,000 m\u00b2. All shops are open 7 days a week and attract 15 million visitors each year.Inducom nvThe statutory financial statements of Inducom have been prepared for the first time in accordance with accounting standards consistent with International Financial Reporting Standards as implemented by the FIIS legislation. This follows the registration of the company as a FIIS from 14 November 2023 on the list of specialized real estate investment funds in application of the Royal Decree of 9 November 2016 relating to specialized real estate investment funds.The company has applied all IFRS standards and interpretations applicable on the balance sheet date of 31 December 2023, for the figures as of the date of transition to IFRS (i.e. 1 January 2022).On 29 March 2024, Retail Estates, as the sole shareholder of RWI, decided on the partial demerger of RWI, with the result that part of RWI's real estate portfolio was transferred to Inducom N.V. The acquired value of Retail Warehousing Invest N.V. includes a significant number of bare property rights (\u201ctr\u00e9fonds\u201d) whose ground lease is held by Retail Estates N.V. with a current market value of approximately \u20ac 78.19 million.Retail Warehousing Invest nvRetail Estates has held a participating interest in Retail Warehousing Invest nv, an institutional Belgian real estate investment trust (BE-REIT) (\u201cRWI\u201d), since 2012. Originally, Retail Estates had a co-shareholder in RWI, holding a 37.5% minority interest. In 2016, this minority shareholder \u201cswapped\u201d the share participation interest in RWI for a share participation in Retail Estates by means of a contribution in kind within the context of the authorised capital.\u00a0 Retail Estates has been the sole shareholder of RWI ever since. On 29 March 2024, Retail Estates, being the sole shareholder of RWI, decided to proceed to a partial demerger of RWI. As a consequence, part of the real estate portfolio of RWI was transferred to Inducom nv, a specialised real estate investment fund under Belgian law and also a 100% subsidiary of Retail Estates. SVK nvDuring the past fiscal year, control was acquired of the company S.V.K. N.V. The acquisition provides for the expansion of the site in Sint-Joris-Winge.Other subsidiariesAll subsidiaries are fully consolidated, with the exception of Veilinghof \u2019t Sas, to which the change in equity method is applied (please refer to \u201cSignificant accounting policies\u201d under the heading \u201cConsolidation principles\u201d for more information about this consolidation method). Retail Estates has a 26.19% participating interest in Veilinghof \u2018t Sas. Retail Estates funded the acquisition of this participating interest by an amount of \u20ac 5 million.The companies Retail Estates Nederland, Cuquius Invest, Spijkenisse Invest, Heerlen I Invest, Heerlen II Invest, Breda I Invest, Breda II Invest, Zaandam Invest, Naaldwijk Invest, Osbroek Invest, Alex Invest, Venlo Invest, Aquarius Invest, Waterman Invest and Retail Estates Middelburg were incorporated in the Netherlands. The other companies were incorporated in Belgium. Note 44Key sources of estimation uncertainty in accordance with IAS 1.125:The implementation of the Group's accounting policies includes important evaluations in the field of classification of lease contracts and acquisition of shares in regulated real estate companies. Accounting estimates are used when the Group determines the fair value of its investment properties and financial instruments. The most important principles for the performance of assessments are based on the Group's experience and the contribution of the real estate experts. The key sources of estimation uncertainty are discussed in notes 21 (investment properties), 35 (financial instruments) and 41 (list of consolidated companies).", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:5493007CO5W5OBFG7L21", "period": "2024-04-01T00:00:00/2025-04-01T00:00:00" } }, "f-510": { "value": "Note 22Non-current assets or groups of assets held for sale (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Assets held for sale | 18,457 | 8,552 |
Total assets held for sale | 18,457 | 8,552 |
Recorded under assets held for sale are those assets for which an intention to sell has been signed but the final deed of sale had not yet been executed. These assets are usually sold within a year. Properties are only transferred to the assets held for sale if a declaration of intent has been signed with the potential buyer. The sale is not expected to result in a decrease in value of these assets.
On 31\u00a0March\u00a02025, the fair value of these assets amounts to \u20ac 18.46 million, of which \u20ac 12.00 million relates to the sale of the properties at the Veenendaal site and \u20ac\u00a05.60\u00a0million to the Keerdok retail cluster in Mechelen.
The deed of sale of the Veenendaal site was executed on 1 April 2025. The site was sold because it is an atypical real estate site: it concerns a large area with only two tenants. Retail Estates' investment policy in the Netherlands focuses rather on standard properties with an area of 1,500 m\u00b2. The proceeds from the sale of the Veenendaal site have already been reinvested in the purchase of the additional Venlo property (see management report, section \u2018Significant events in the financial year 2024-2025\u2019).
The Keerdok site was rezoned by the local government for apartment construction following the approval of the RUP Rode Kruisplein. A number of tenants have moved to the new Malinas retail park, while others have closed their shops. One retail space was initially still leased.
On 24 December 2021, Retail Estates entered into a framework agreement with the operating company of two real estate developers to sell its retail properties in phases. The total sale price amounts to \u20ac\u00a011.18\u00a0million. On 29 March 2023, the first part of the framework agreement was already implemented and part of the retail properties were sold for \u20ac\u00a03.75\u00a0million. On 29\u00a0February\u00a02024, an addendum to the framework agreement was signed, postponing the deadline for the fulfilment of the last conditions precedent to 30\u00a0June\u00a02024 and requiring the authentic deed of sale for phase 1 to be executed by 30\u00a0September\u00a02024 at the latest. Subsequently, a number of addenda were signed to extend the term for fulfilment of the conditions precedent once again.
Finally, on 11 October 2024, addendum V to the framework agreement was signed.
Contrary to the original framework agreement, the parties agreed that the purchase/sale of the remaining immovable property would no longer be subject to the condition precedent of obtaining a final and enforceable permit, but:
\u2013that the buyer is willing to purchase the property unconditionally (by exercising an option by the buyer or the seller); and
\u2013that the seller is willing to postpone the execution of the authentic deeds of sale until 31 March 2025 respectively 31 March 2026 and to allow a partial deferral of payment of the price.
In implementation of this latter agreement, the notarial deed relating to part of the remaining immovable property was executed no later than 31 March 2025, against payment of a price of \u20ac\u00a01,83\u00a0million in total.
Trade receivables and doubtful debtors
Trade receivables (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Trade receivables | 16,745 | 16,846 |
Invoices to be issued | 2,285 | 1,861 |
Doubtful debtors | -4,859 | -4,563 |
Income to be collected | 0 | 0 |
Coupon real estate certificats | ||
\u00a0 Distri-Land | 250 | 250 |
Other | 206 | 233 |
Total trade receivables | 14,627 | 14,627 |
Outstanding trade receivables, after deduction of doubtful debtors and advance payments, amount to \u20ac\u00a012.09\u00a0million, of which \u20ac 0.20 million relate to the revolving fund and the reserve fund and of which \u20ac\u00a011.32\u00a0million have not yet reached their maturity date. Taking into account the guarantees obtained \u2013 both rental guarantees and bank guarantees \u2013 the credit risk on trade receivables is very limited on 31\u00a0March\u00a02025.
The total prebilling balance amounts to \u20ac 11.09 million on 31\u00a0March\u00a02025 compared to \u20ac 11.86 million last year. The prebilling relates to unexpired rents billed for periods after 31\u00a0March\u00a02025.
For more details about the Distri-Land coupon, please refer to the chapter \u2018Real estate certificates\u2019 in the valuation rules mentioned earlier in this Annual Financial Report.
Impairment on doubtful debtors - roll forward (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
At the end of the previous financial year | -4,562 | -4,025 |
From acquired companies | 0 | 0 |
Provisions | -2,029 | -1,591 |
Recoveries | 2,078 | 1,252 |
Write-offs | -345 | -199 |
At the end of the financial year | -4,859 | -4,562 |
The provision for doubtful debtors is established as follows: the rental arrears list is closely monitored internally. Based on a management assessment, or if obvious and demonstrable reasons exist to suggest that the claim cannot be recovered, a provision is created. Trade receivables are payable in cash. The table below shows an overview of the age structure of the trade receivables for which no value reduction was registered.
Trade receivables - Ageing (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Due < 30 days | 234 | 469 |
Due 30-90 days | 15 | -5 |
Due > 90 days | 317 | 292 |
Not due | 11,319 | 11,528 |
Trade receivables and doubtful debtors
Trade receivables (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Trade receivables | 16,745 | 16,846 |
Invoices to be issued | 2,285 | 1,861 |
Doubtful debtors | -4,859 | -4,563 |
Income to be collected | 0 | 0 |
Coupon real estate certificats | ||
\u00a0 Distri-Land | 250 | 250 |
Other | 206 | 233 |
Total trade receivables | 14,627 | 14,627 |
Outstanding trade receivables, after deduction of doubtful debtors and advance payments, amount to \u20ac\u00a012.09\u00a0million, of which \u20ac 0.20 million relate to the revolving fund and the reserve fund and of which \u20ac\u00a011.32\u00a0million have not yet reached their maturity date. Taking into account the guarantees obtained \u2013 both rental guarantees and bank guarantees \u2013 the credit risk on trade receivables is very limited on 31\u00a0March\u00a02025.
The total prebilling balance amounts to \u20ac 11.09 million on 31\u00a0March\u00a02025 compared to \u20ac 11.86 million last year. The prebilling relates to unexpired rents billed for periods after 31\u00a0March\u00a02025.
For more details about the Distri-Land coupon, please refer to the chapter \u2018Real estate certificates\u2019 in the valuation rules mentioned earlier in this Annual Financial Report.
Impairment on doubtful debtors - roll forward (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
At the end of the previous financial year | -4,562 | -4,025 |
From acquired companies | 0 | 0 |
Provisions | -2,029 | -1,591 |
Recoveries | 2,078 | 1,252 |
Write-offs | -345 | -199 |
At the end of the financial year | -4,859 | -4,562 |
The provision for doubtful debtors is established as follows: the rental arrears list is closely monitored internally. Based on a management assessment, or if obvious and demonstrable reasons exist to suggest that the claim cannot be recovered, a provision is created. Trade receivables are payable in cash. The table below shows an overview of the age structure of the trade receivables for which no value reduction was registered.
Trade receivables - Ageing (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Due < 30 days | 234 | 469 |
Due 30-90 days | 15 | -5 |
Due > 90 days | 317 | 292 |
Not due | 11,319 | 11,528 |
Trade receivables and doubtful debtors
Trade receivables (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Trade receivables | 16,745 | 16,846 |
Invoices to be issued | 2,285 | 1,861 |
Doubtful debtors | -4,859 | -4,563 |
Income to be collected | 0 | 0 |
Coupon real estate certificats | ||
\u00a0 Distri-Land | 250 | 250 |
Other | 206 | 233 |
Total trade receivables | 14,627 | 14,627 |
Outstanding trade receivables, after deduction of doubtful debtors and advance payments, amount to \u20ac\u00a012.09\u00a0million, of which \u20ac 0.20 million relate to the revolving fund and the reserve fund and of which \u20ac\u00a011.32\u00a0million have not yet reached their maturity date. Taking into account the guarantees obtained \u2013 both rental guarantees and bank guarantees \u2013 the credit risk on trade receivables is very limited on 31\u00a0March\u00a02025.
The total prebilling balance amounts to \u20ac 11.09 million on 31\u00a0March\u00a02025 compared to \u20ac 11.86 million last year. The prebilling relates to unexpired rents billed for periods after 31\u00a0March\u00a02025.
For more details about the Distri-Land coupon, please refer to the chapter \u2018Real estate certificates\u2019 in the valuation rules mentioned earlier in this Annual Financial Report.
Impairment on doubtful debtors - roll forward (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
At the end of the previous financial year | -4,562 | -4,025 |
From acquired companies | 0 | 0 |
Provisions | -2,029 | -1,591 |
Recoveries | 2,078 | 1,252 |
Write-offs | -345 | -199 |
At the end of the financial year | -4,859 | -4,562 |
The provision for doubtful debtors is established as follows: the rental arrears list is closely monitored internally. Based on a management assessment, or if obvious and demonstrable reasons exist to suggest that the claim cannot be recovered, a provision is created. Trade receivables are payable in cash. The table below shows an overview of the age structure of the trade receivables for which no value reduction was registered.
Trade receivables - Ageing (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Due < 30 days | 234 | 469 |
Due 30-90 days | 15 | -5 |
Due > 90 days | 317 | 292 |
Not due | 11,319 | 11,528 |
Cash and cash equivalents (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Bank balances | 2,917 | 7,089 |
Total cash and cash equivalents | 2,917 | 7,089 |
Trade debts and other current debts (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Exit tax | 402 | 738 |
Other | 15,311 | 17,979 |
Trade debts | 346 | 774 |
Invoices to be received | 9,799 | 12,165 |
Taxes payable | 4,146 | 4,039 |
Other current debts | 1,020 | 1,002 |
Total trade debts and other current debts | 15,713 | 18,718 |
Other non-current financial liabilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Authorised hedging instruments (also refer to note 35) | 0 | |
Deferred taxes | 1,560 | 3,200 |
Total other non-current financial liabilities | 1,560 | 3,200 |
Breakdown by due date of credit lines (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Non-current | ||
Bilateral loans - variable or fixed rate | 648,655 | 686,535 |
Bond loan | 175,743 | 175,572 |
Subtotal | 824,397 | 862,107 |
Current | ||
Bilateral loans - variable or fixed rate | 21,384 | 4,182 |
Bond loan | 0 | |
Treasury certificates | 40,100 | 42,500 |
Subtotal | 61,484 | 46,682 |
Total | 885,881 | 908,789 |
Breakdown by maturity of non-current financial debts - future interest burden not included (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Between one and two year(s) | 210,259 | 214,813 |
Between two and five years | 378,464 | 495,981 |
More than five years | 235,675 | 151,313 |
Breakdown by the variable or fixed-rate nature of the loans (in \u20ac 000)4 | 31.03.2025 | 31.03.2024 |
Variable rate loans | 553,786 | 575,721 |
Fixed rate loans | 332,095 | 333,068 |
4 Without taking into account hedging instruments |
Retail Estates nv has the following unused credit facilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Expiring within one year | 0 | 0 |
Expiring after one year | 203,262 | 184,012 |
40.10 mio EUR of the unused credit lines is used as a backup line for the drawn amounts of the commercial paper program |
Estimate of the future interest burden | Total future interest burden | |
(in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Within one year | 19,338 | 19,999 |
Between one and five year(s) | 78,005 | 57,293 |
More than five years | 11,597 | 7,946 |
Total | 108,940 | 85,238 |
Other current liabilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Dividends payable | 2 | 1 |
Other | 1,522 | 1,152 |
Total other current liabilities | 1,524 | 1,153 |
Reconciliation between changes in financial liabilities and consolidated cash flow statement (in\u00a0\u20ac\u00a0000) | 31.03.2024 | + Cash flows | + Non cash variations | 31.03.2025 |
Financial debts | 913,868 | 890,438 | ||
Bilateral loans - variable or fixed rate | 733,217 | -23,078 | 710,139 | |
Bond loan | 175,572 | 171 | 175,743 | |
Financial lease | 5,079 | -522 | 4,557 | |
* The non-cash movement for finance leases relates to the adoption of IFRS 16. | ||||
** The non-cash movement for the bonds refers to the spread of costs associated with the issuance of the bonds. |
Over the course of the financial year, financial liabilities decreased by a net amount of \u20ac -23.08 million. New loans were taken out or existing loans were extended for an amount of \u20ac 142.35 million while other loans expired and were repaid for an amount of \u20ac 165.35 million. In addition, there are costs linked to the issue of bonds that are incorporated into the result spread over time.
Non-current and current financial liabilities
Breakdown by due date of credit lines (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Non-current | ||
Bilateral loans - variable or fixed rate | 648,655 | 686,535 |
Financial leases | 4,557 | 5,079 |
Bond loan | 175,743 | 175,572 |
Subtotal | 828,954 | 867,186 |
Current | ||
Bilateral loans - variable or fixed rate | 21,384 | 4,182 |
Bond loan | 0 | |
Treasury certificates | 40,100 | 42,500 |
Subtotal | 61,484 | 46,682 |
Total | 890,438 | 913,868 |
Structure of the financial debt:
On 31\u00a0March\u00a02025, total consolidated financial debt amounted to \u20ac 890.44 million.
This amount is composed as follows:
Non-current liabilities:
\u2013\u20ac 648.65 million in traditional bilateral long-term bank loans, spread over several banks
\u2013\u20ac 4.56 million in financial leases
\u2013\u20ac 175.74 million in bond loans
This is a decrease by \u20ac 38.23 million compared to last year as a result of the acquisitions of the current financial year.
Current liabilities:
\u2013\u20ac 21.38 million in traditional bilateral short-term bank loans
\u2013\u20ac 40.10 million in Commercial Papers
This is an increase by \u20ac 13.77 million compared to last year. This can mainly be explained by the decrease in the commercial paper programme compared to last year (see above).
100.70% of the loans have a fixed interest rate or are hedged using an interest rate swap contract. The estimate of the future interest burden takes into account the debt position as of 31\u00a0March\u00a02024 and interest covers according to the contracts currently in progress.
The company has issued five bond loans:
\u2013\u20ac 30 million, issued on 29 April 2016 with a maturity of 10 years, of which \u20ac 4 million at a fixed interest rate of 2.84% and \u20ac 26 million at a floating interest rate (Euribor 3 months + 2,25%)
\u2013\u20ac 25 million, issued on 10 June 2016 with a maturity of 10 years and an interest rate of 2.84%.
\u2013\u20ac 75 million, issued on 18 December 2019 with a maturity of 7 years and an interest rate of 2.15%
\u2013\u20ac 30 million, issued on 9 December 2020 with a maturity of 5 years and an interest rate of 1.991%.
\u2013\u20ac 16 million, issued on 26 March 2021 with a maturity of 8 years and an interest rate of 2.897%.
\u20ac60 million of the above bond loans has already been extended with the underlying investor via a credit agreement.
Interest charges analysis \u2013 interest sensitivity
The degree to which Retail Estates nv can finance itself significantly impacts its profitability. Property investments generally entail a relatively high level of debt financing. To optimally limit this risk, Retail Estates nv applies a relatively cautious and conservative strategy (see above). This strategy ensures that a rise in the interest rate has no substantial impact on the total result of the current financial year. Interest rate increases or decreases nevertheless have an impact on the market value of the concluded IRS contracts and thus on shareholders\u2019 equity and changes in the fair value of financial assets and liabilities. If the interest rate were to rise by 1%, this would have a positive impact of \u20ac 28.69 million on shareholders\u2019 equity and changes in the fair value of financial assets and liabilities. \u20ac 28.37 million of this amount would be recorded via the income statement and \u20ac 0.32 million of this amount would be recorded directly under shareholders' equity. If interest rate were to decrease by 1%, this would have a negative impact of \u20ac -30.36 million on shareholders\u2019 equity and changes in the fair value of financial assets and liabilities. \u20ac -30.16 million of this amount would be recorded via the income statement account and \u20ac -0.20 million would be recorded directly under shareholders' equity.
In principle, Retail Estates nv concludes an agreement with its banks for a debt ratio covenant of 60%.
Maturity dates
The weighted average term of the outstanding financial debts of Retail Estates was 3.46 years on 31\u00a0March\u00a02025 compared to 3.45 years for the previous year. On 31\u00a0March\u00a02025, the total of unused and confirmed long-term credit lines amounted to \u20ac 203.26 million. This is including the backup lines for the Commercial Paper programme amounting to \u20ac 40.10 million. The net available credit lines therefore amount to \u20ac\u00a0163.16\u00a0million.
First green loan secured
Financial instruments on 31\u00a0March\u00a02024
Summary of financial instruments as at closing date | 31.03.2025 | 31.03.2024 | ||||
(in \u20ac 000) | Categories | Level | Book value | Fair value | Book value | Fair value |
I. Non-current assets | ||||||
Finance lease receivables | A | 2 | 1,030 | 1,030 | 1,030 | 1,030 |
Loans and receivables | A | 2 | 32 | 32 | 40 | 40 |
Financial non-current assets | A/C | 2 | 31,172 | 31,172 | 44,924 | 44,924 |
II. Current assets | ||||||
Trade receivables and other receivables | A | 2 | 17,467 | 17,467 | 21,938 | 21,938 |
Cash and cash equivalents | B | 2 | 2,917 | 2,917 | 7,089 | 7,089 |
Total financial instruments on the assets side of the balance sheet | 52,617 | 52,617 | 75,021 | 75,021 | ||
I. Non-current liabilities | ||||||
Interest-bearing liabilities | A | 2 | ||||
Credit institutions | A | 2 | 648,655 | 646,878 | 686,535 | 680,578 |
Long term financial lease | A | 2 | 4,557 | 4,557 | 5,079 | 5,079 |
Bond loan | A | 2 | 175,743 | 174,504 | 175,572 | 171,544 |
Other non-current liabilities | A | 2 | ||||
Other financial liabilities | C | 2 | 0 | 0 | 0 | 0 |
II. Current liabilities | ||||||
Interest-bearing liabilities | A | 2 | 61,484 | 61,484 | 46,682 | 46,682 |
Current trade debts and other debts | A | 2 | 17,237 | 17,237 | 19,871 | 19,871 |
Total financial instruments on the liabilities side of the balance sheet | 907,675 | 904,660 | 933,739 | 923,754 |
The categories correspond to the following financial instruments:
A.Financial assets or liabilities (including receivables and loans) held to maturity at amortised cost.
B.Investments held to maturity at amortised cost.
C.Assets or liabilities held at fair value through profit and loss except for financial instruments designated as hedging instruments that are subject to hedge accounting.
The majority of the financial instruments of the Group correspond to level 2 in the fair values hierarchy. Fair value valuation is carried out regularly.
Level 2 in the fair value hierarchy includes other financial assets and liabilities of which the fair value can be determined by reference to other inputs which are directly or indirectly observable for the relevant assets or liabilities.
The valuation techniques regarding the fair value of level 2 financial instruments are the following:
\u2013The item \u201cother financial liabilities\u201d refers to interest rate swaps of which the fair value can be determined by means of interest rates applicable on active markets; these rates are generally provided by financial institutions.
\u2013The fair value of the other level 2 financial assets and liabilities is virtually equal to their book value:
\u2022either because they have a short-term maturity (e.g. trade receivables and debts);
\u2022or because they have a variable interest rate.
The fair value of debts with a fixed interest rate is estimated by discounting their future cash flows at a rate that reflects the Group\u2019s credit risk.
Financial instruments at amortised cost
Since trade receivables and trade debts are short-term instruments, the fair value approximates the nominal value of these financial assets and liabilities.
On 31\u00a0March\u00a02025, Retail Estates nv had \u20ac 553.79\u00a0million of financial debts at a variable interest rate and \u20ac\u00a0332.10\u00a0million of financial debts at a fixed interest rate1. 100.70% of the loans have a fixed interest rate or
are hedged using an interest rate swap contract. The fixed interest rates at which these long-term debts were originally concluded in most cases no longer correspond to prevailing money market rates, resulting in a difference between their book value and their fair value. The table below compares the total amount of fixed-rate debts at book value and at fair value at the end of the 2024-2025 financial year. The fair value of the fixed-rate debts is estimated by discounting their future cash flows at an interest rate that reflects the Group\u2019s credit risk. The fair value of the fixed-rate debts is mentioned in the table below. The book value is equal to the amortised cost.
31.03.2025 | 31.03.2024 | |||
Financial debts at fixed interest rate | Book value | Fair value | Book value | Fair value |
Financial debts at fixed interest rate | 332,095 | 329,080 | 333,068 | 323,083 |
Financial instruments at fair value
Fair value of financial assets and liabilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Fair value of financial derivatives - Liabilities | 0 | |
Fair value of financial derivatives - Assets | 24,597 | 38,275 |
Total fair value of financial assets and liabilities | 24,597 | 38,275 |
The Group makes use of financial derivatives (interest rate swaps, floors and caps) to hedge interest rate risks arising from operational, financial and investment activities. Financial derivatives are initially recognised at cost and revalued to their fair value on the next reporting date. The variation in instruments amounts to \u20ac\u00a0-13.67\u00a0million in the current financial year. The derivatives currently used by Retail Estates nv qualify as cash flow hedges only to a limited extent. Changes in the fair value of the derivatives that do not qualify as cash flow hedges are
recorded directly in the income statement. An amount of \u20ac -13.00 million was recorded in the income statement with respect to the financial instruments. Swaps qualifying as cash flow hedges are booked directly as shareholders\u2019 equity and are not included in the income statement. This financial year, \u20ac\u00a0-0.66 million was recorded directly in equity. The interest rate swaps are level 2 instruments.
Overview of financial instruments:
Other non-current liabilities
Starting date | Ending date | Interest rate | Variable interest rate | Notional amount (in \u20ac 000) | Type of derivative | Hedge accounting | |
1 | July 2016 | April 2026 | 1.26% | Euribor 3 M + | 26,000 | IRS | YES |
2 | March 2018 | March 2026 | 1.10% | Euribor 3 M + | 20,000 | IRS | NO |
3 | December 2018 | December 2026 | 1.06% | Euribor 3 M + | 25,000 | IRS | NO |
4 | January 2018 | January 2026 | 0.74% | Euribor 3 M + | 25,000 | IRS | NO |
5 | July 2016 | April 2026 | -2.25% | Euribor 3 M + | 26,000 | FLOOR | YES |
6 | March 2018 | March 2026 | 0.00% | Euribor 3 M + | 20,000 | FLOOR | NO |
7 | December 2018 | December 2026 | 0.00% | Euribor 3 M + | 25,000 | FLOOR | NO |
8 | June 2023 | June 2026 | 0.68% | Euribor 3 M + | 50,000 | IRS | NO |
9 | December 2024 | December 2028 | 0.70% | Euribor 3 M + | 25,000 | IRS | NO |
10 | December 2024 | December 2028 | 0.72% | Euribor 3 M + | 25,000 | IRS | NO |
11 | March 2024 | March 2029 | 0.40% | Euribor 3 M + | 25,000 | IRS | NO |
12 | March 2024 | March 2029 | 0.37% | Euribor 3 M + | 25,000 | IRS | NO |
13 | March 2024 | March 2029 | 0.28% | Euribor 3 M + | 25,000 | IRS | NO |
14 | June 2024 | March 2029 | 0.03% | Euribor 3 M + | 25,000 | IRS | NO |
15 | March 2024 | June 2029 | 0.21% | Euribor 3 M + | 50,000 | IRS | NO |
16 | December 2026 | December 2029 | -0.06% | Euribor 3 M + | 25,000 | IRS | NO |
17 | June 2021 | June 2027 | 0.85% | Euribor 3 M + | 60,000 | IRS | NO |
18 | June 2022 | June 2026 | 0.63% | Euribor 3 M + | 25,000 | IRS | NO |
19 | June 2022 | June 2026 | 0.83% | Euribor 3 M + | 14,000 | IRS | NO |
20 | June 2022 | June 2026 | 0.62% | Euribor 3 M + | 10,000 | IRS | NO |
21 | July 2022 | July 2027 | 1.44% | Euribor 3 M + | 15,000 | IRS | NO |
22 | June 2022 | June 2026 | 1.21% | Euribor 3 M + | 30,000 | IRS | NO |
23 | December 2023 | December 2029 | 0.89% | Euribor 3 M + | 35,000 | IRS | NO |
24 | March 2024 | March 2027 | 0.49% | Euribor 3 M + | 25,000 | IRS | NO |
Starting date | Ending date | Interest rate | Variable interest rate | Notional amount (in \u20ac 000) | Type of derivative | Hedge accounting | |
25 | June 2026 | December 2029 | 2.61% | Euribor 3 M + | 50,000 | IRS | NO |
26 | June 2026 | December 2029 | 3.08% | Euribor 3 M + | 50,000 | IRS | NO |
27 | June 2026 | December 2029 | 2.76% | Euribor 3 M + | 50,000 | IRS | NO |
28 | March 2027 | March 2028 | 2.42% | Euribor 3 M + | 50,000 | IRS | NO |
29 | December 2025 | December 2031 | 2.32% | Euribor 3 M + | 50,000 | IRS | NO |
30 | March 2028 | March 2032 | 2.54% | Euribor 3 M + | 50,000 | IRS | NO |
31 | March 2025 | March 2028 | 2.22% | Euribor 3 M + | 70,000 | IRS | NO |
32 | December 2029 | March 2032 | 2.11% | Euribor 3 M + | 50,000 | IRS | NO |
33 | December 2026 | March 2031 | 2.40% | Euribor 3 M + | 50,000 | IRS | NO |
Breakdown by maturity of liquidity obligation associated with the derivative products (in \u20ac 000) | 31.03.2025 |
Between zero and two year(s) | -9,651 |
Between two and five years | -7,127 |
More than five years | -1,611 |
Total | -18,389 |
Tax receivables and other current assets (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Taxes | ||
VAT receivable | ||
Witholding tax receivable | 4 | 0 |
Property tax receivable | 1,970 | 1,995 |
Salary and social security | ||
Other | 866 | 5,316 |
Total tax receivables and other current assets | 2,841 | 7,311 |
Trade debts and other current debts (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Exit tax | 402 | 738 |
Other | 15,311 | 17,979 |
Trade debts | 346 | 774 |
Invoices to be received | 9,799 | 12,165 |
Taxes payable | 4,146 | 4,039 |
Other current debts | 1,020 | 1,002 |
Total trade debts and other current debts | 15,713 | 18,718 |
Tax receivables and other current assets (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Taxes | ||
VAT receivable | ||
Witholding tax receivable | 4 | 0 |
Property tax receivable | 1,970 | 1,995 |
Salary and social security | ||
Other | 866 | 5,316 |
Total tax receivables and other current assets | 2,841 | 7,311 |
Tax receivables and other current assets (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Taxes | ||
VAT receivable | ||
Witholding tax receivable | 4 | 0 |
Property tax receivable | 1,970 | 1,995 |
Salary and social security | ||
Other | 866 | 5,316 |
Total tax receivables and other current assets | 2,841 | 7,311 |
Tax receivables and other current assets (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Taxes | ||
VAT receivable | ||
Witholding tax receivable | 4 | 0 |
Property tax receivable | 1,970 | 1,995 |
Salary and social security | ||
Other | 866 | 5,316 |
Total tax receivables and other current assets | 2,841 | 7,311 |
Deferred charges and accrued income (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Completed, property returns not due | 17 | 139 |
Rental discounts and rental benefits to be appropriated | ||
Property costs paid in advance | 2,751 | 2,309 |
Interest and other financial costs paid in advance | 548 | 550 |
Other | 298 | 729 |
Total deferred charges and accrued income | 3,614 | 3,727 |
Cash and cash equivalents (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Bank balances | 2,917 | 7,089 |
Total cash and cash equivalents | 2,917 | 7,089 |
Trade debts and other current debts (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Exit tax | 402 | 738 |
Other | 15,311 | 17,979 |
Trade debts | 346 | 774 |
Invoices to be received | 9,799 | 12,165 |
Taxes payable | 4,146 | 4,039 |
Other current debts | 1,020 | 1,002 |
Total trade debts and other current debts | 15,713 | 18,718 |
Trade debts and other current debts (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Exit tax | 402 | 738 |
Other | 15,311 | 17,979 |
Trade debts | 346 | 774 |
Invoices to be received | 9,799 | 12,165 |
Taxes payable | 4,146 | 4,039 |
Other current debts | 1,020 | 1,002 |
Total trade debts and other current debts | 15,713 | 18,718 |
Financial instruments at amortised cost
Since trade receivables and trade debts are short-term instruments, the fair value approximates the nominal value of these financial assets and liabilities.
On 31\u00a0March\u00a02025, Retail Estates nv had \u20ac 553.79\u00a0million of financial debts at a variable interest rate and \u20ac\u00a0332.10\u00a0million of financial debts at a fixed interest rate1. 100.70% of the loans have a fixed interest rate or
are hedged using an interest rate swap contract. The fixed interest rates at which these long-term debts were originally concluded in most cases no longer correspond to prevailing money market rates, resulting in a difference between their book value and their fair value. The table below compares the total amount of fixed-rate debts at book value and at fair value at the end of the 2024-2025 financial year. The fair value of the fixed-rate debts is estimated by discounting their future cash flows at an interest rate that reflects the Group\u2019s credit risk. The fair value of the fixed-rate debts is mentioned in the table below. The book value is equal to the amortised cost.
31.03.2025 | 31.03.2024 | |||
Financial debts at fixed interest rate | Book value | Fair value | Book value | Fair value |
Financial debts at fixed interest rate | 332,095 | 329,080 | 333,068 | 323,083 |
Other non-current financial liabilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Authorised hedging instruments (also refer to note 35) | 0 | |
Deferred taxes | 1,560 | 3,200 |
Total other non-current financial liabilities | 1,560 | 3,200 |
Breakdown by due date of credit lines (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Non-current | ||
Bilateral loans - variable or fixed rate | 648,655 | 686,535 |
Bond loan | 175,743 | 175,572 |
Subtotal | 824,397 | 862,107 |
Current | ||
Bilateral loans - variable or fixed rate | 21,384 | 4,182 |
Bond loan | 0 | |
Treasury certificates | 40,100 | 42,500 |
Subtotal | 61,484 | 46,682 |
Total | 885,881 | 908,789 |
Breakdown by maturity of non-current financial debts - future interest burden not included (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Between one and two year(s) | 210,259 | 214,813 |
Between two and five years | 378,464 | 495,981 |
More than five years | 235,675 | 151,313 |
Breakdown by the variable or fixed-rate nature of the loans (in \u20ac 000)4 | 31.03.2025 | 31.03.2024 |
Variable rate loans | 553,786 | 575,721 |
Fixed rate loans | 332,095 | 333,068 |
4 Without taking into account hedging instruments |
Retail Estates nv has the following unused credit facilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Expiring within one year | 0 | 0 |
Expiring after one year | 203,262 | 184,012 |
40.10 mio EUR of the unused credit lines is used as a backup line for the drawn amounts of the commercial paper program |
Estimate of the future interest burden | Total future interest burden | |
(in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Within one year | 19,338 | 19,999 |
Between one and five year(s) | 78,005 | 57,293 |
More than five years | 11,597 | 7,946 |
Total | 108,940 | 85,238 |
Reconciliation between changes in financial liabilities and consolidated cash flow statement (in\u00a0\u20ac\u00a0000) | 31.03.2024 | + Cash flows | + Non cash variations | 31.03.2025 |
Financial debts | 913,868 | 890,438 | ||
Bilateral loans - variable or fixed rate | 733,217 | -23,078 | 710,139 | |
Bond loan | 175,572 | 171 | 175,743 | |
Financial lease | 5,079 | -522 | 4,557 | |
* The non-cash movement for finance leases relates to the adoption of IFRS 16. | ||||
** The non-cash movement for the bonds refers to the spread of costs associated with the issuance of the bonds. |
Over the course of the financial year, financial liabilities decreased by a net amount of \u20ac -23.08 million. New loans were taken out or existing loans were extended for an amount of \u20ac 142.35 million while other loans expired and were repaid for an amount of \u20ac 165.35 million. In addition, there are costs linked to the issue of bonds that are incorporated into the result spread over time.
Non-current and current financial liabilities
Breakdown by due date of credit lines (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Non-current | ||
Bilateral loans - variable or fixed rate | 648,655 | 686,535 |
Financial leases | 4,557 | 5,079 |
Bond loan | 175,743 | 175,572 |
Subtotal | 828,954 | 867,186 |
Current | ||
Bilateral loans - variable or fixed rate | 21,384 | 4,182 |
Bond loan | 0 | |
Treasury certificates | 40,100 | 42,500 |
Subtotal | 61,484 | 46,682 |
Total | 890,438 | 913,868 |
Structure of the financial debt:
On 31\u00a0March\u00a02025, total consolidated financial debt amounted to \u20ac 890.44 million.
This amount is composed as follows:
Non-current liabilities:
\u2013\u20ac 648.65 million in traditional bilateral long-term bank loans, spread over several banks
\u2013\u20ac 4.56 million in financial leases
\u2013\u20ac 175.74 million in bond loans
This is a decrease by \u20ac 38.23 million compared to last year as a result of the acquisitions of the current financial year.
Current liabilities:
\u2013\u20ac 21.38 million in traditional bilateral short-term bank loans
\u2013\u20ac 40.10 million in Commercial Papers
This is an increase by \u20ac 13.77 million compared to last year. This can mainly be explained by the decrease in the commercial paper programme compared to last year (see above).
100.70% of the loans have a fixed interest rate or are hedged using an interest rate swap contract. The estimate of the future interest burden takes into account the debt position as of 31\u00a0March\u00a02024 and interest covers according to the contracts currently in progress.
The company has issued five bond loans:
\u2013\u20ac 30 million, issued on 29 April 2016 with a maturity of 10 years, of which \u20ac 4 million at a fixed interest rate of 2.84% and \u20ac 26 million at a floating interest rate (Euribor 3 months + 2,25%)
\u2013\u20ac 25 million, issued on 10 June 2016 with a maturity of 10 years and an interest rate of 2.84%.
\u2013\u20ac 75 million, issued on 18 December 2019 with a maturity of 7 years and an interest rate of 2.15%
\u2013\u20ac 30 million, issued on 9 December 2020 with a maturity of 5 years and an interest rate of 1.991%.
\u2013\u20ac 16 million, issued on 26 March 2021 with a maturity of 8 years and an interest rate of 2.897%.
\u20ac60 million of the above bond loans has already been extended with the underlying investor via a credit agreement.
Interest charges analysis \u2013 interest sensitivity
The degree to which Retail Estates nv can finance itself significantly impacts its profitability. Property investments generally entail a relatively high level of debt financing. To optimally limit this risk, Retail Estates nv applies a relatively cautious and conservative strategy (see above). This strategy ensures that a rise in the interest rate has no substantial impact on the total result of the current financial year. Interest rate increases or decreases nevertheless have an impact on the market value of the concluded IRS contracts and thus on shareholders\u2019 equity and changes in the fair value of financial assets and liabilities. If the interest rate were to rise by 1%, this would have a positive impact of \u20ac 28.69 million on shareholders\u2019 equity and changes in the fair value of financial assets and liabilities. \u20ac 28.37 million of this amount would be recorded via the income statement and \u20ac 0.32 million of this amount would be recorded directly under shareholders' equity. If interest rate were to decrease by 1%, this would have a negative impact of \u20ac -30.36 million on shareholders\u2019 equity and changes in the fair value of financial assets and liabilities. \u20ac -30.16 million of this amount would be recorded via the income statement account and \u20ac -0.20 million would be recorded directly under shareholders' equity.
In principle, Retail Estates nv concludes an agreement with its banks for a debt ratio covenant of 60%.
Maturity dates
The weighted average term of the outstanding financial debts of Retail Estates was 3.46 years on 31\u00a0March\u00a02025 compared to 3.45 years for the previous year. On 31\u00a0March\u00a02025, the total of unused and confirmed long-term credit lines amounted to \u20ac 203.26 million. This is including the backup lines for the Commercial Paper programme amounting to \u20ac 40.10 million. The net available credit lines therefore amount to \u20ac\u00a0163.16\u00a0million.
First green loan secured
Other current liabilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Dividends payable | 2 | 1 |
Other | 1,522 | 1,152 |
Total other current liabilities | 1,524 | 1,153 |
Accrued charges and deferred income (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Upfront received property income | 16,628 | 16,228 |
Completed, not due interests and other financial costs | 3,151 | 3,390 |
Other | 50 | 24 |
Total accrued charges and deferred income | 19,829 | 19,642 |
Accrued charges and deferred income (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Upfront received property income | 16,628 | 16,228 |
Completed, not due interests and other financial costs | 3,151 | 3,390 |
Other | 50 | 24 |
Total accrued charges and deferred income | 19,829 | 19,642 |
Financial instruments at fair value
Fair value of financial assets and liabilities (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Fair value of financial derivatives - Liabilities | 0 | |
Fair value of financial derivatives - Assets | 24,597 | 38,275 |
Total fair value of financial assets and liabilities | 24,597 | 38,275 |
The Group makes use of financial derivatives (interest rate swaps, floors and caps) to hedge interest rate risks arising from operational, financial and investment activities. Financial derivatives are initially recognised at cost and revalued to their fair value on the next reporting date. The variation in instruments amounts to \u20ac\u00a0-13.67\u00a0million in the current financial year. The derivatives currently used by Retail Estates nv qualify as cash flow hedges only to a limited extent. Changes in the fair value of the derivatives that do not qualify as cash flow hedges are
recorded directly in the income statement. An amount of \u20ac -13.00 million was recorded in the income statement with respect to the financial instruments. Swaps qualifying as cash flow hedges are booked directly as shareholders\u2019 equity and are not included in the income statement. This financial year, \u20ac\u00a0-0.66 million was recorded directly in equity. The interest rate swaps are level 2 instruments.
Related parties
The company\u2019s related parties are its subsidiaries and its directors and members of the management committee. Transactions with subsidiaries are eliminated in the consolidation.
The company has not concluded any transactions with related parties (as defined under IFRS) during the financial years 2023-2024 and 2024-2025, nor in the period between 1\u00a0April 2025 and the date of this report.
Directors and members of the management committee
The remuneration for directors and members of the management committee is recorded under \"corporate operating costs\" (see note 10).
Management fees (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Management fees | 2,350 | 2,173 |
Remuneration of board of directors | 436 | 352 |
Total | 2,786 | 2,525 |
Related parties
The company\u2019s related parties are its subsidiaries and its directors and members of the management committee. Transactions with subsidiaries are eliminated in the consolidation.
The company has not concluded any transactions with related parties (as defined under IFRS) during the financial years 2023-2024 and 2024-2025, nor in the period between 1\u00a0April 2025 and the date of this report.
Directors and members of the management committee
The remuneration for directors and members of the management committee is recorded under \"corporate operating costs\" (see note 10).
Management fees (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Management fees | 2,350 | 2,173 |
Remuneration of board of directors | 436 | 352 |
Total | 2,786 | 2,525 |
Related parties
The company\u2019s related parties are its subsidiaries and its directors and members of the management committee. Transactions with subsidiaries are eliminated in the consolidation.
Auditor\u2019s fee (VAT excl.) | 31.03.2025 | 31.03.2024 |
Remuneration of the auditor for the audit assignment | 163 | 165 |
Remuneration for exceptional duties or special assignments | ||
Other assignments provided by the CCA | 57 | 28 |
Other audit assignments | 0 | 28 |
Tax consultancy assignments | ||
Other assignments outside the audit assignment | 29 |
Events after the balance sheet date
Divestment of retail property in Veenendaal (the Netherlands)
On 1 April 2025 Retail Estates sold a retail property in Veenendaal (the Netherlands) for \u20ac\u00a012\u00a0million. The 18,576\u00a0m\u00b2 property was leased to Eijerkamp, a well-known Dutch family business specializing in home furnishings and furniture. The total annual rent for this retail property amounts to \u20ac 1.48 million. The fair value of the property was \u20ac 12 million on 31 March 2025. The site was sold because it is an atypical real estate site: it concerns a large area with only two tenants. Retail Estates' investment policy in the Netherlands focuses rather on standard properties with an area of 1,500 m\u00b2.
Optional interim dividend
On 28 May 2025, the Board of Directors of Retail Estates decided to distribute, in the form of an optional dividend, a gross interim dividend for financial year 2024-2025 (which started on 1\u00a0April 2024 and ended on 31\u00a0March\u00a02025) amounting to \u20ac5.10 (\u20ac 3.57 net, i.e. the net dividend per share after deduction of withholding tax at a rate of 30%) per share (participating in the profits of financial year 2024-2025).
In the context of its decision to distribute an interim dividend to the shareholders, the Board of Directors offers the shareholders the possibility to contribute the amount of their claims arising from the distribution of the net amount of the interim dividend to the capital of the Company in return for the issue of new shares (in addition to the option to receive the interim dividend in cash and the option to opt for a combination of the two preceding options). The new shares issued within the context of this capital increase will participate in the profits as from 1\u00a0April 2025.
Taking into account the obligation of Retail Estates as a public BE-REIT to pay out dividends pursuant to article 13 of the Royal Decree of 13 July 2014 on regulated real estate investment companies, the Board of Directors will propose to the annual general meeting of 22 July 2024 not to pay any additional dividend for the financial year 2024-2025.
The contribution in kind of claims against Retail Estates in the context of the optional interim dividend and the associated capital increase improve the shareholders\u2019 equity of the company and therefore reduce its (legally capped) debt ratio.
This opens up the possibility for Retail Estates to perform additional debt-financed transactions in the future in order to further realise its growth strategy. The optional interim dividend also makes it possible to retain funds in the Company (in line with the net dividend rights contributed to the company's capital), which in turn reinforces the company's financial position. In addition, it strengthens the ties with the shareholders.
The issue price of the new shares has been set by the board of directors at \u20ac 57.12. Taking into account the aforementioned issue price, each new share to be issued may be subscribed for and will be paid up by the contribution of net dividend rights attached to 16 existing shares of the same form (represented by coupon no. 33).
The option period will run from 5 June 2025 to 19 June 2025, after which the capital increase and the issue of the new shares will be finalised on 26 June 2025.
For more information, please see the press release of 28 May 2025.
Retail Warehousing Invest - transaction equivalent to a merger
The boards of directors of Retail Estates and Retail Warehousing Invest (a wholly owned subsidiary of Retail Estates) intend to decide on a transaction equivalent to a merger within the meaning of Section 12:7 of the Companies and Associations Act, as a result of which the entire assets of Retail Warehousing Invest will be transferred to Retail Estates following dissolution without liquidation.
List of consolidated companies and changes in the circle of consolidation
As per 31\u00a0March\u00a02025, the following subsidiaries are part of the consolidation perimeter of Retail Estates nv:
Subsidiary | External financial debts5 (in \u20ac 000) | Investment properties5 (in \u20ac 000) | Rental income6 (in \u20ac 000) | Participation percentage |
Retail Warehousing Invest | 51,363 | 3,173 | 100.00% | |
Inducom | 92,464 | 0 | 100.00% | |
Finsbury Properties | 0 | 17 | 100.00% | |
Regreen | 8,279 | 548 | 100.00% | |
Veilinghof 't Sas | 0 | 26.19% | ||
Retail Estates Nederland | 54,268 | 5,608 | 100.00% | |
Venlo Invest | 34,057 | 2,540 | 100.00% | |
Cruquius Invest | 80,701 | 5,914 | 100.00% | |
Spijkenisse Invest | 10,250 | 46,871 | 3,227 | 100.00% |
Heerlen I Invest | 68,285 | 4,910 | 100.00% | |
Heerlen II Invest | 59,562 | 4,441 | 100.00% | |
Retail Estates Middelburg Invest | 33,339 | 2,815 | 100.00% | |
Breda I Invest | 41,631 | 3,240 | 100.00% | |
Breda II Invest | 25,735 | 2,052 | 100.00% | |
Naaldwijk Invest | 21,153 | 1,976 | 100.00% | |
Alex Invest | 37,307 | 3,475 | 50.00% | |
Zaandam Invest | 36,453 | 2,081 | 100.00% | |
Osbroek Invest | 74,930 | 5,593 | 100.00% | |
Aquarius Invest | 41,284 | 2,502 | 100.00% | |
Waterman Invest | 39,214 | 2,730 | 100.00% | |
SVK | 3,268 | 221 | 100.00% | |
5 Value at closing date of the consolidated figures (31.03.2025) including non-current assets under construction (IAS 40). | ||||
6 For the period the companies are part of the Group in the current financial year. |
Aquarius Invest nv and Waterman Invest nv
On 13 June 2023 the subsidiaries\u00a0 \u201cAquarius Invest N.V.\u201d and \"Waterman Invest N.V.\" were incorporated within the framework of the acquisition of retail park Alexandrium Megastores in Rotterdam (the Netherlands). The investment in the acquisition of the retail park amounts to \u20ac 81.5 million (including transfer tax, due diligence and transaction costs).
Alexandrium Megastores is part of the largest out-of-town retail area in the Randstad region. The structural connection between Woonmall Alexandrium, the regional Shopping Center Alexandrium (Alexandrium I \u2013 owned by Kl\u00e9pierre) and the retail park Alexandrium II Megastores creates a very complementary mix and a retail offer that is exceptional for the Netherlands, with a total of 200 retail units over a surface area of 110,000 m\u00b2. All shops are open 7 days a week and attract 15 million visitors each year.
Inducom nv
The statutory financial statements of Inducom have been prepared for the first time in accordance with accounting standards consistent with International Financial Reporting Standards as implemented by the FIIS legislation. This follows the registration of the company as a FIIS from 14 November 2023 on the list of specialized real estate investment funds in application of the Royal Decree of 9 November 2016 relating to specialized real estate investment funds.
The company has applied all IFRS standards and interpretations applicable on the balance sheet date of 31 December 2023, for the figures as of the date of transition to IFRS (i.e. 1 January 2022).
On 29 March 2024, Retail Estates, as the sole shareholder of RWI, decided on the partial demerger of RWI, with the result that part of RWI's real estate portfolio was transferred to Inducom N.V. The acquired value of Retail Warehousing Invest N.V. includes a significant number of bare property rights (\u201ctr\u00e9fonds\u201d) whose ground lease is held by Retail Estates N.V. with a current market value of approximately \u20ac 78.19 million.
Retail Warehousing Invest nv
Retail Estates has held a participating interest in Retail Warehousing Invest nv, an institutional Belgian real estate investment trust (BE-REIT) (\u201cRWI\u201d), since 2012. Originally, Retail Estates had a co-shareholder in RWI, holding a 37.5% minority interest. In 2016, this minority shareholder \u201cswapped\u201d the share participation interest in RWI for a share participation in Retail Estates by means of a contribution in kind within the context of the authorised capital.\u00a0 Retail Estates has been the sole shareholder of RWI ever since.
On 29 March 2024, Retail Estates, being the sole shareholder of RWI, decided to proceed to a partial demerger of RWI. As a consequence, part of the real estate portfolio of RWI was transferred to Inducom nv, a specialised real estate investment fund under Belgian law and also a 100% subsidiary of Retail Estates.
SVK nv
During the past fiscal year, control was acquired of the company S.V.K. N.V. The acquisition provides for the expansion of the site in Sint-Joris-Winge.
Other subsidiaries
All subsidiaries are fully consolidated, with the exception of Veilinghof \u2019t Sas, to which the change in equity method is applied (please refer to \u201cSignificant accounting policies\u201d under the heading \u201cConsolidation principles\u201d for more information about this consolidation method). Retail Estates has a 26.19% participating interest in Veilinghof \u2018t Sas. Retail Estates funded the acquisition of this participating interest by an amount of \u20ac 5 million.
List of consolidated companies and changes in the circle of consolidation
As per 31\u00a0March\u00a02025, the following subsidiaries are part of the consolidation perimeter of Retail Estates nv:
Subsidiary | External financial debts5 (in \u20ac 000) | Investment properties5 (in \u20ac 000) | Rental income6 (in \u20ac 000) | Participation percentage |
Retail Warehousing Invest | 51,363 | 3,173 | 100.00% | |
Inducom | 92,464 | 0 | 100.00% | |
Finsbury Properties | 0 | 17 | 100.00% | |
Regreen | 8,279 | 548 | 100.00% | |
Veilinghof 't Sas | 0 | 26.19% | ||
Retail Estates Nederland | 54,268 | 5,608 | 100.00% | |
Venlo Invest | 34,057 | 2,540 | 100.00% | |
Cruquius Invest | 80,701 | 5,914 | 100.00% | |
Spijkenisse Invest | 10,250 | 46,871 | 3,227 | 100.00% |
Heerlen I Invest | 68,285 | 4,910 | 100.00% | |
Heerlen II Invest | 59,562 | 4,441 | 100.00% | |
Retail Estates Middelburg Invest | 33,339 | 2,815 | 100.00% | |
Breda I Invest | 41,631 | 3,240 | 100.00% | |
Breda II Invest | 25,735 | 2,052 | 100.00% | |
Naaldwijk Invest | 21,153 | 1,976 | 100.00% | |
Alex Invest | 37,307 | 3,475 | 50.00% | |
Zaandam Invest | 36,453 | 2,081 | 100.00% | |
Osbroek Invest | 74,930 | 5,593 | 100.00% | |
Aquarius Invest | 41,284 | 2,502 | 100.00% | |
Waterman Invest | 39,214 | 2,730 | 100.00% | |
SVK | 3,268 | 221 | 100.00% | |
5 Value at closing date of the consolidated figures (31.03.2025) including non-current assets under construction (IAS 40). | ||||
6 For the period the companies are part of the Group in the current financial year. |
Aquarius Invest nv and Waterman Invest nv
On 13 June 2023 the subsidiaries\u00a0 \u201cAquarius Invest N.V.\u201d and \"Waterman Invest N.V.\" were incorporated within the framework of the acquisition of retail park Alexandrium Megastores in Rotterdam (the Netherlands). The investment in the acquisition of the retail park amounts to \u20ac 81.5 million (including transfer tax, due diligence and transaction costs).
Alexandrium Megastores is part of the largest out-of-town retail area in the Randstad region. The structural connection between Woonmall Alexandrium, the regional Shopping Center Alexandrium (Alexandrium I \u2013 owned by Kl\u00e9pierre) and the retail park Alexandrium II Megastores creates a very complementary mix and a retail offer that is exceptional for the Netherlands, with a total of 200 retail units over a surface area of 110,000 m\u00b2. All shops are open 7 days a week and attract 15 million visitors each year.
Inducom nv
The statutory financial statements of Inducom have been prepared for the first time in accordance with accounting standards consistent with International Financial Reporting Standards as implemented by the FIIS legislation. This follows the registration of the company as a FIIS from 14 November 2023 on the list of specialized real estate investment funds in application of the Royal Decree of 9 November 2016 relating to specialized real estate investment funds.
The company has applied all IFRS standards and interpretations applicable on the balance sheet date of 31 December 2023, for the figures as of the date of transition to IFRS (i.e. 1 January 2022).
On 29 March 2024, Retail Estates, as the sole shareholder of RWI, decided on the partial demerger of RWI, with the result that part of RWI's real estate portfolio was transferred to Inducom N.V. The acquired value of Retail Warehousing Invest N.V. includes a significant number of bare property rights (\u201ctr\u00e9fonds\u201d) whose ground lease is held by Retail Estates N.V. with a current market value of approximately \u20ac 78.19 million.
Retail Warehousing Invest nv
Retail Estates has held a participating interest in Retail Warehousing Invest nv, an institutional Belgian real estate investment trust (BE-REIT) (\u201cRWI\u201d), since 2012. Originally, Retail Estates had a co-shareholder in RWI, holding a 37.5% minority interest. In 2016, this minority shareholder \u201cswapped\u201d the share participation interest in RWI for a share participation in Retail Estates by means of a contribution in kind within the context of the authorised capital.\u00a0 Retail Estates has been the sole shareholder of RWI ever since.
On 29 March 2024, Retail Estates, being the sole shareholder of RWI, decided to proceed to a partial demerger of RWI. As a consequence, part of the real estate portfolio of RWI was transferred to Inducom nv, a specialised real estate investment fund under Belgian law and also a 100% subsidiary of Retail Estates.
SVK nv
During the past fiscal year, control was acquired of the company S.V.K. N.V. The acquisition provides for the expansion of the site in Sint-Joris-Winge.
Other subsidiaries
All subsidiaries are fully consolidated, with the exception of Veilinghof \u2019t Sas, to which the change in equity method is applied (please refer to \u201cSignificant accounting policies\u201d under the heading \u201cConsolidation principles\u201d for more information about this consolidation method). Retail Estates has a 26.19% participating interest in Veilinghof \u2018t Sas. Retail Estates funded the acquisition of this participating interest by an amount of \u20ac 5 million.
Segmented information
IFRS 8 defines an operating segment as follows: An operating segment is a component of the entity (IFRS 8.5):
\u2013that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of an same entity);
\u2013of which the operating results are reviewed regularly by the chief operating decision maker (CODM) in order to take decisions about resources to be allocated to the segment and assess its performance; and
\u2013for which separate financial information is available.
Since the 2018-2019 financial year, Retail Estates has distinguished between two geographical segments: Belgium and the Netherlands.
Segmented information
IFRS 8 defines an operating segment as follows: An operating segment is a component of the entity (IFRS 8.5):
\u2013that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of an same entity);
\u2013of which the operating results are reviewed regularly by the chief operating decision maker (CODM) in order to take decisions about resources to be allocated to the segment and assess its performance; and
\u2013for which separate financial information is available.
Since the 2018-2019 financial year, Retail Estates has distinguished between two geographical segments: Belgium and the Netherlands.
Segmented information - Profit & Loss
Segmented information \u2013 results by segment (in \u20ac 000) | 31.03.2025 | 31.03.2024 | ||||||
Belgium | The Netherlands | Unallocated amounts | TOTAL | Belgium | The Netherlands | Unallocated amounts | TOTAL | |
Rental income | 90,312 | 53,102 | 143,414 | 89,727 | 49,807 | 139,533 | ||
Rental related expenses | -1,047 | -191 | -1,238 | -258 | -447 | -705 | ||
Net rental income | 89,265 | 52,911 | 142,176 | 89,469 | 49,359 | 138,829 | ||
Recovery of property expenses | ||||||||
Recovery of rental charges and taxes normally payable by tenants on let properties | 10,241 | 5,290 | 15,531 | 9,869 | 4,740 | 14,609 | ||
Rental charges and taxes normally payable by tenants on let properties | -10,656 | -7,587 | -18,243 | -10,271 | -6,634 | -16,905 | ||
Other rental related income and expenses | -65 | -40 | -105 | -37 | -64 | -101 | ||
Property result | 88,785 | 50,574 | 139,359 | 89,030 | 47,401 | 136,430 | ||
Technical costs | -4,402 | -2,044 | -6,446 | -4,875 | -3,057 | -7,932 | ||
Commercial costs | -883 | -99 | -981 | -1,127 | -122 | -1,249 | ||
Charges and taxes on unlet properties | -631 | -230 | -860 | -414 | -90 | -504 | ||
Property management costs | -5,544 | -1,717 | -7,261 | -5,108 | -1,544 | -6,653 | ||
Other property costs | -2 | -1 | -2 | -2 | -1 | -3 | ||
Property costs | -11,461 | -4,090 | -15,551 | -11,527 | -4,814 | -16,341 | ||
Operating property result | 77,324 | 46,484 | 123,808 | 77,503 | 42,587 | 120,090 | ||
Operating corporate costs | -9,480 | -9,480 | -8,473 | -8,473 | ||||
Other current operating income and expenses | ||||||||
Segmented information \u2013 results by segment (in \u20ac 000) | 31.03.2025 | 31.03.2024 | ||||||
Belgium | The Netherlands | Unallocated amounts | TOTAL | Belgium | The Netherlands | Unallocated amounts | TOTAL | |
Operating result before result on portfolio | 114,328 | 111,617 | ||||||
Result on disposals of investment properties | 386 | 0 | 386 | -399 | 0 | -399 | ||
Result on sales of other non-financial assets | 0 | 0 | ||||||
Changes in fair value of investment properties | 16,789 | 11,045 | 27,835 | 39,948 | 11,242 | 51,190 | ||
Other result on portfolio | -649 | 2,216 | 1,566 | 12 | -377 | -365 | ||
Operating result | 144,115 | 162,043 | ||||||
Financial income | 157 | 157 | 162 | 162 | ||||
Net interest charges | -20,228 | -20,228 | -21,671 | -21,671 | ||||
Changes in the fair value of financial assets and liabilities | -13,072 | -13,072 | -16,487 | -16,487 | ||||
Other financial charges | -70 | -70 | -63 | -63 | ||||
Financial result | -33,213 | -33,213 | -38,059 | -38,059 | ||||
Result in associated companies | -75 | -75 | -92 | -92 | ||||
Result before taxes | 110,827 | 123,891 | ||||||
Taxes | -1,147 | -1,208 | -2,355 | -879 | 145 | -734 | ||
Net result | 108,472 | 123,157 | ||||||
Attributable to: | ||||||||
Shareholders of the Group | 106,696 | 122,967 | ||||||
Minority interests | 1,776 | 190 |
Segmented balance
31.03.2025 | 31.03.2024 | |||||
Segmented information \u2013 assets by segment (in \u20ac 000) | Belgium | The Netherlands | TOTAL | Belgium | The Netherlands | TOTAL |
Investment properties7 | 1,374,749 | 694,788 | 2,069,537 | 1,348,893 | 679,424 | 2,028,317 |
Assets or groups of assets held for sale | 6,457 | 12,000 | 18,457 | 8,552 | 0 | 8,552 |
7 Including non-current assets under construction (IAS 40). |
Key sources of estimation uncertainty in accordance with IAS 1.125:
The implementation of the Group's accounting policies includes important evaluations in the field of classification of lease contracts and acquisition of shares in regulated real estate companies. Accounting estimates are used when the Group determines the fair value of its
investment properties and financial instruments. The most important principles for the performance of assessments are based on the Group's experience and the contribution of the real estate experts. The key sources of estimation uncertainty are discussed in notes 21 (investment properties), 35 (financial instruments) and 41 (list of consolidated companies).", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:5493007CO5W5OBFG7L21", "period": "2024-04-01T00:00:00/2025-04-01T00:00:00" } }, "f-539": { "value": "9. STATUTORY INCOME STATEMENTChapters 9 to 12 contain an abridged version of the statutory annual accounts. The integral version of the statutory annual accounts as well as the related reports can be consulted on the website of Retail Estates (ww.retailestates.com) or can be obtained free of charge upon request.
INCOME STATEMENT (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Rental income | 86,515 | 86,172 |
Rental related expenses | -983 | -252 |
Net rental income | 85,531 | 85,920 |
Recovery of property expenses | ||
Recovery of rental charges and taxes normally payable by tenants on let properties | 9,910 | 9,457 |
Rental charges and taxes normally payable by tenants on let properties | -10,263 | -9,834 |
Other rental related income and expenses | -59 | -37 |
Property result | 85,120 | 85,506 |
Technical costs | -4,203 | -4,172 |
Commercial costs | -770 | -932 |
Charges and taxes on unlet properties | -524 | -345 |
Property management costs | 25 | -762 |
Other property costs | -2 | -2 |
Property costs | -5,474 | -6,213 |
Operating property result | 79,645 | 79,293 |
Operating corporate costs | -7,310 | -7,233 |
Other current operating income and expenses | ||
Operating result before result on portfolio | 72,335 | 72,060 |
Result on disposals of investment properties | 366 | -269 |
Result on sales of other non-financial assets | 0 | 0 |
Changes in fair value of investment properties | 4,263 | 30,704 |
Other result on portfolio | -377 | -537 |
INCOME STATEMENT (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Operating result | 76,587 | 101,958 |
Financial income | 13,795 | 12,130 |
Net interest charges | -21,562 | -21,923 |
Changes in the fair value of financial assets and liabilities | -13,160 | -16,553 |
Other financial charges | -41 | -47 |
Financial result | -20,968 | -26,394 |
Share in the result of holding incorporated using the equity method (1) | 51,987 | 48,209 |
Result before taxes | 107,606 | 123,773 |
Taxes | -1,113 | -865 |
Net result | 106,494 | 122,908 |
Note: | ||
EPRA earnings | 90,611 | 88,803 |
Result on portfolio | 4,252 | 29,898 |
Changes in fair value of financial assets and liabilities | -13,160 | -16,553 |
Share in the non recurring result of holding incorporated using the equity method | 24,790 | 20,759 |
(1) Until 31 March 2019, the holdings of the subsidiaries were valuated as financial instruments as per IFRS 9. Since 1 April 2019, the holdings have been valuated using the equity method as per IAS 28. Due to this change in the valuation rules, the dividend paid out from the holdings is recognised as a reduction in the book value of the holding,\u00a0 and the result of the affiliated companies is recognised under the section \u201cShare in the result of holdings incorporated using the equity method\u201d. The subsidiaries dividend of 14.70 million euros that was paid out to the parent company in 2021 is now incorporated in the section \u201cShare in the result of holdings incorporated using the equity method\u201d, instead of under section\u00a0 Financial income. |
(Statement of other comprehensive income)
Statement of the comprehensive result (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Net result | 106,494 | 122,908 |
Other components of the\u00a0 comprehensive result, recyclable in income statements: | ||
Impact on the fair value of estimated transaction rights and costs resulting from the hypothetical disposal of investment properties | 0 | |
Changes in the fair value of authorised hedging instruments qualifying for hedge accounting as defined by IFRS | -660 | -549 |
Variations in fair value of available-for-sale financial assets | ||
Conversion differences arising from the conversion of a foreign activity | ||
Actuarial gains and losses of defined benefit pension schemes | ||
Income tax on the \u201cother elements of the comprehensive result\u201d | ||
Other elements of the comprehensive result, after tax | ||
COMPREHENSIVE RESULT | 105,834 | 122,359 |
ASSETS (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Non-current assets | 2,124,163 | 2,105,075 |
Goodwill | ||
Intangible non-current assets | 8,697 | 8,874 |
Investment properties | 1,223,685 | 1,213,338 |
Other tangible non-current assets | 5,930 | 6,153 |
Financial non-current assets | 884,813 | 875,671 |
Finance lease receivables | 1,030 | 1,030 |
Trade receivables and other non-current assets | 8 | 8 |
Current assets | 33,150 | 28,045 |
Assets or groups of assets held for sale | 861 | 1,212 |
Trade receivables | 8,000 | 8,305 |
Tax receivables and other current assets | 20,744 | 12,059 |
Cash and cash equivalents | 1,889 | 4,293 |
Deferred charges and accrued income | 1,656 | 2,175 |
TOTAL ASSETS | 2,157,314 | 2,133,119 |
SHAREHOLDERS\u2019 EQUITY AND LIABILITIES (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
Shareholders\u2019 equity | 1,215,948 | 1,162,380 |
Capital | 322,533 | 315,069 |
Issue premiums | 396,729 | 384,580 |
Reserves | 390,191 | 339,822 |
Net result of the financial year | 106,494 | 122,908 |
Liabilities | 941,366 | 970,739 |
Non-current liabilities | 822,408 | 859,885 |
Provisions | ||
Non-current financial debts | 822,249 | 859,722 |
Credit institutions | 638,405 | 676,285 |
Long term financial lease | 8,102 | 7,865 |
Other | 175,743 | 175,572 |
Other non-current financial liabilities | 159 | 164 |
Deferred taxes | ||
Current liabilities | 118,958 | 110,854 |
Current financial debts | 61,484 | 46,682 |
Credit institutions | 61,484 | 46,682 |
Short term financial lease | ||
Trade debts and other current debts | 44,079 | 50,592 |
Other current liabilities | 401 | 453 |
Accrued charges and deferred income | 12,993 | 13,127 |
TOTAL SHAREHOLDERS\u2019 EQUITY AND LIABILITIES | 2,157,314 | 2,133,119 |
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (in \u20ac 000) | Capital ordinary shares | Issue premiums\u00a0 non-distributable | Issue premiums\u00a0 distributable | Reserves* | Net result of the financial year | Minority interests | TOTAL Shareholders\u2019 Equity |
Balance according to IFRS on 31\u00a0March\u00a02023 | 308,549 | 315,410 | 58,898 | 228,535 | 180,843 | 1,092,236 | |
Net appropriation of profits 2023-2024 | |||||||
Transfer of portfolio result to reserves | 50,604 | -50,604 | 0 | ||||
Transfer changes in fair value of authorised hedging instruments | 41,649 | -41,649 | 0 | ||||
Transfer of EPRA earnings to reserves | 19,569 | -19,569 | 0 | ||||
Reclassification between reserves | |||||||
Dividends of the financial year 2022-2023 | -69,021 | -69,021 | |||||
Capital increase | 6,520 | 10,376 | 16,896 | ||||
Capital increase through contribution in kind | |||||||
Costs of capital increase | -104 | 13 | -91 | ||||
Increase in shareholders' equity as a result of mergers | |||||||
Other | |||||||
Comprehensive result 31\u00a0March\u00a02024 | -549 | 122,908 | 122,359 | ||||
Balance according to IFRS on 31\u00a0March\u00a02024 | 315,069 | 315,410 | 69,171 | 339,822 | 122,908 | 1,162,379 | |
Net appropriation of profits 2024-2025 | 0 | ||||||
Transfer of portfolio result to reserves | 50,927 | -50,927 | 0 | ||||
Transfer changes in fair value of authorised hedging instruments | -16,553 | 16,553 | 0 | ||||
Transfer of EPRA earnings to reserves | 16,656 | -16,656 | 0 | ||||
Reclassification between reserves | 0 | ||||||
Dividends of the financial year 2023-2024 | -71,878 | -71,878 | |||||
Capital increase | 7,464 | 12,275 | 19,739 | ||||
Capital increase through contribution in kind | 0 | ||||||
Increase in shareholders' equity as a result of mergers | 0 | ||||||
Costs of capital increase | -126 | -126 | |||||
Other | 0 | ||||||
Comprehensive result 31\u00a0March\u00a02025 | 0 | 0 | -660 | 106,494 | 105,834 | ||
Balance according to IFRS on 31\u00a0March\u00a02025 | 322,533 | 315,410 | 81,319 | 390,191 | 106,494 | 0 | 1,215,948 |
* Detail of the reserves (in \u20ac 000) | Legal reserve | Reserve for the positive/negative balance of changes in the fair value of real estate properties | Available reserves | Impact on the fair value of estimated transfer rights and costs resulting from the hypothetical disposal of investment properties | Changes in the effective part of the fair value of authorised hedging instruments qualifying for hedge accounting as defined by IFRS | Changes in the effective part of the fair value of authorised hedging instruments are not subjected to qualify for hedge accounting as defined by IFRS | Results carried forward from previous financial years | TOTAL |
Balance according to IFRS on 31\u00a0March\u00a02023 | 5 | 137,994 | 4,846 | -28,672 | 1,450 | 12,071 | 100,840 | 228,535 |
Net appropriation of profits 2023-2024 | ||||||||
Transfer of portfolio result to reserves | 51,574 | -970 | 50,604 | |||||
Transfer changes in fair value of authorised hedging instruments | 41,649 | 41,649 | ||||||
Transfer of EPRA earnings to reserves | 19,569 | 19,569 | ||||||
Reclassification between reserves | -1,255 | 1,255 | 127 | -127 | 0 | |||
Capital increase through contribution in kind | ||||||||
Increase in shareholders' equity as a result of mergers | ||||||||
Costs of capital increase | 14 | 14 | ||||||
Other | ||||||||
Comprehensive result 31\u00a0March\u00a02024 | 0 | -549 | 0 | -549 | ||||
Balance according to IFRS on 31\u00a0March\u00a02024 | 5 | 188,312 | 6,101 | -29,514 | 901 | 53,720 | 120,295 | 339,822 |
Net appropriation of profits 2024-2025 | ||||||||
Transfer of portfolio result to reserves | 51,929 | -1,002 | 50,927 | |||||
Transfer changes in fair value of authorised hedging instruments | -16,553 | 0 | -16,553 | |||||
Transfer of EPRA earnings to reserves | \u00a0 | \u00a0 | 16,656 | 16,656 | ||||
Reclassification between reserves | -1,302 | 1,302 | 298 | \u00a0 | \u00a0 | -298 | 0 | |
Capital increase through contribution in kind | \u00a0 | \u00a0 | 0 | |||||
Increase in shareholders' equity as a result of mergers | \u00a0 | \u00a0 | 0 | |||||
Costs of capital increase | \u00a0 | \u00a0 | 0 | |||||
Other | 0 | |||||||
Comprehensive result 31\u00a0March\u00a02025 | -660 | -660 | ||||||
Balance according to IFRS on 31\u00a0March\u00a02025 | 5 | 238,939 | 7,404 | -30,218 | 242 | 37,167 | 136,653 | 390,191 |
Statutory appropriation of result (in \u20ac 000) | 31.03.2025 | 31.03.2024 |
A. Net result | 106,494 | 122,908 |
B. Allocation to / transfer from reserves | ||
Allocation to / transfer from the reserves for the balance of changes in fair value of investment properties | ||
Financial year | -4,321 | -31,169 |
Previous financial years | ||
Realisation of properties | ||
Allocation to / transfer from the reserves of estimated transfer rights and costs resulting from the hypothetical disposal of investment properties | 435 | 1,002 |
Allocation to / transfer from the reserves for the balance of changes in fair value of authorised hedging instruments not subject to hedge accounting | ||
Financial year | -11,630 | -4,206 |
Previous financial years | ||
Transfer of the reserve for the balance of the exchange rate differences on monetary assets and liabilities (- / +) | ||
Transfer of the tax deferred tax reserve with regard to real estate located abroad (- / +) | ||
Transfer of the reserve for the dividends received for the repayment of financial debts (- / +) | ||
Allocation to / transfer from other reserves | -298 | -127 |
Transfer of carried forward results from previous financial years (- / +) | 0 | 0 |
C. Remuneration of capital, following article 13, \u00a7 1, first paragraph | 75,007 | 71,878 |
D. Remuneration of capital - other than C | ||
Result to be carried forward | 15,672 | 16,529 |