EuroCommercial, FIRST QUARTER RESULTS 2023.

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Overig advies 05/05/2023 09:16
Key highlights
• The continuation of strong retail sales across all our markets resulted in overall sales growth
during Q1 of 13.1% compared to Q1 2022, and 9.6% compared to the pre-pandemic Q1 2019.
• Higher rental growth of 8.7% (4.7% for calendar year 2022) due mainly to rental indexation.
• Continued strong tenant demand resulted in 7.7% rent uplifts on renewals and relettings from 246
lease transactions signed during the 12-month period ended 31 March 2023.
• EPRA vacancy rate at 31 March 2023 was 1.8% (same level as 31 March 2022).
• Occupancy cost ratio (OCR) was 9.5% at 31 March 2023.
• Rent collection rate for Q1 2023 currently stands at 97%.
• Acquisition of remaining minority interest in Woluwe Shopping on 18 April 2023, which is
therefore now 100% owned by Eurocommercial.
• Gross rental income for the quarter ending 31 March 2023 (on the basis of proportional
consolidation) was €56.2 million compared with €51.7 million in the same period last year.
• Net earnings €0.61 (direct investment result) per share for the quarter ending 31 March 2023
compared to €0.55 per share for the same period last year.
• Loan to value ratio (on the basis of proportional consolidation) stable at 40.4% at 31 March 2023.
Net debt to EBITDA at 8.7x, and ICR at 4.2x.
• SEK 1.2 billion (circa €110 million) green loan with Nordea, secured in Q1 2023 on three properties
in Sweden, extended by three years.
• An interim cash dividend of €0.60 per share was paid on 27 January 2023.
Management board commentary
2023 has seen a continuation of the consistently strong retail sales growth that we reported during 2022.
Although increased living costs, particularly energy and food, have led to rising inflation and higher interest
rates, consumer spending has held up well. As a result, our Q1 retail sales growth across the portfolio was
13.1% compared to Q1 2022, and 9.6% compared to the pre-pandemic Q1 2019.
Rental growth for the 12 months to 31 March 2023 was 8.7% due mainly to significantly higher rental
indexation which has been invoiced since the start of the year, with 97% of Q1 rents collected to date. Despite
these high indexation levels, our leasing teams continue to report strong tenant demand for our shopping
centres resulting in a 7.7% rental uplift from 246 lease renewals and relettings completed during the 12-month
period ending 31 March 2023. Q1 alone saw an uplift of 8.5% from 64 lease transactions completed.
Milan listing
It is the intention of the Company to obtain a dual listing of its shares on Euronext Milan, the Italian regulated
market by Borsa Italiana. The admittance process is now in its final phase and the trading of the shares is
expected to start in the second half of May 2023. Next to its home listing at Euronext Amsterdam, the
Company will then also be listed on Euronext Brussels and Euronext Milan. Eurocommercial is included in
the composition of the AMX and AEX ESG indices of Euronext Amsterdam.
Italy is a very important and strategic country for Eurocommercial as 43% of the value of its property portfolio
is invested in Italy. The Italian portfolio comprises three Italian flagship shopping centres and five dominant
suburban shopping centres, all located in Northern Italy. The Milan listing is expected to contribute to the
visibility, reputation and brand awareness of Eurocommercial in the Italian markets and to Eurocommercial’s
Italian business. The listing could also assist the Company to attract more Italian investors, who can then
invest directly in a diversified property portfolio including important Italian shopping centres via their home
market, giving the Company the opportunity to further expand and diversify its shareholder base.
Move of Amsterdam office
As from 1 June 2023, the Company will move its Amsterdam office to Boelelaan 7, Amsterdam Buitenveldert.
After more than 25 years residing at Herengracht 469, the Board decided to leave the Amsterdam canal area
for cost and accessibility reasons. The new office with a similar surface as the existing office, is an energy
label A building with more efficient space use, close to RAI train station and metro lines and close to the
Amsterdam Ring motorway.
Operational & financial review
Retail sales
Our four markets and most retail sectors have seen the continuation of the strong growth in retail sales
reported during 2022. Overall, retail sales growth during Q1 was 13.1% compared to Q1 2022 and 9.6% above the pre-pandemic 2019.
While sport, home goods and the health and beauty sectors have continued to demonstrate consistently
strong sales growth, it has been most encouraging to see the recovery of the food & beverage sector which had been severely impacted by government restrictions during the COVID-19 period, but is now enjoying a
resurgence with a range of new brands, concepts and formats establishing in our centres. This has also
coincided with further growth in footfall which was 8.5% higher in Q1 2023 compared to Q1 2022 and has almost reached pre-pandemic levels.

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