Key highlights for the quarter to September 2022
Performance and business highlights
• Following the strong retail sales growth in Q2, sales turnover in Q3 2022 was 7.3% higher than Q3
2021 and 7.7% above the pre-pandemic Q3 2019.
• Strong like-for-like rental growth of 4.1% supported by rental indexation and the lease renewal and
reletting programme.
• Continued strong tenant demand resulted in 5.4% rent uplifts on renewals and relettings
from 261 lease transactions signed during the 12-month period ending 30 September 2022.
• EPRA vacancy rate at 30 September 2022 remains around its long-term historically low level at
1.5%, the same as at 30 June 2022.
• Occupancy cost ratio (OCR) was 9.2% at 30 September 2022.
• Eurocommercial maintained its GRESB 4 Star Rating, achieving its highest score to date, and also
received an EPRA Gold Award for sustainability reporting for the ninth consecutive year (sBPR).
• Cash dividend of €1.50 and one for 75 scrip dividend per share paid on 1 July 2022.
• Loan to value ratio (on the basis of proportional consolidation) at 40.2% after the July dividend
distribution.
• Net earnings €1.77 (direct investment result) per share for the nine months to 30 September 2022
(30 September 2021 €1.57).
• In accordance with the Company’s dividend policy, an interim cash dividend of €0.60 per share
is expected to be paid in January 2023.
• Direct investment result guidance for the full year 2022 confirmed ranging between €2.20 and
€2.30 per share.
Board of Management’s commentary
Retail operations in our 24 shopping centres saw a continuation of the strong growth in retail sales that
we reported for Q2. Retail sales during Q3 2022 increased by 7.3% compared to Q3 2021 and by 7.7%
compared to the pre-pandemic Q3 2019, with all our four markets showing strong positive growth over
both periods. Meanwhile, robust tenant demand has supported our renewal and reletting programme
with 261 lease transactions completed in the last 12 months, producing an overall uplift of 5.4%. This
tenant activity has helped maintain our historically low vacancy rate at its current level of only 1.5%.
Like-for-like rental growth was 4.1%, with a significant contribution from rental indexation where we
remain on track to collect around €7 million during 2022 as previously reported. More will be known
shortly about rental indexation for 2023 which is based on a variety of 2022 inflation indices, the majority
of which are still to be published. Although there will be considerable variance in these inflation indices
across our markets, the resulting levels of rental indexation will be significantly higher next year, and
2
so far only the French government have provided some limitation on indexation, with a cap of 3.5% to
assist smaller retailers and which will apply to around 25% of our rental income in France.
Clearly the main driver behind high inflation has been the sudden and marked increase in energy costs
since the commencement of the war in Ukraine and the general disruption to supply chains, resulting
in higher living costs and interest rates which are dampening consumer confidence, despite the
generous energy support packages for households and businesses being put in place by governments.
However, our shopping centres remain in a good position from which to face any reduction in retail
spending with their high representation of everyday and essential retail, and being almost fully let to
tenants at affordable rental levels, with an overall OCR of only 9.2%.
Assuming no major COVID-19 or energy related restrictions and no major deterioration of the macroeconomic environment in the remaining two months of this calendar year, we confirm the guidance
regarding the direct investment result for the year 2022 to be between €2.20 and €2.30 per share. The
direct investment result is the basis for the applicable dividend policy providing for a cash dividend payout ratio ranging between 65% and 85%, but with a target of 75% of the direct investment result per
share. An interim dividend will be payable in January 2023 and a final dividend payable in July 2023.
The interim dividend is expected to be 40% of the total cash dividend paid in the previous financial year,
which was €1.50 per share, so for January 2023 the interim dividend is expected to be €0.60 per share.
Operational & financial review
Retail sales
Q3 has produced strong retail sales growth being 7.3% above Q3 2021 and 7.7% above the prepandemic Q3 2019, with all countries positive during both periods. For the month of September,
turnover was particularly strong at 10.3% above September 2021 and 10.2% above September 2019.
Footfall has also continued to recover well during Q3 and was around 4% higher than Q3 2021.
Like-for-like retail sales by country*
Q3 2022/Q3 2019 Q3 2022/Q3 2021

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