Vastned Retail N : Half-year report 2022

1 VASTNED RETAIL N.V. HALF-YEARREPORT 2022

PRESS RELEASE

HALF-YEAR REPORT 2022

Vastned maintains strong operational and financial performance

Highlights H1 2022

• Positive earnings of € 2.30 per share (€ 0.50 negative in H1 2021)
• Direct result in H1 2022 of € 0.98 per share (€ 0.88 in H1 2021)
• Indirect result in H1 2022 of € 1.32 per share (€ 1.38 negative in H1 2021)
• Collection rate further increased to 97.6%
• Occupancy rate increased to 98.5%
• Like-for-likegross rental income increased by 1.4% compared with H1 2021
• Value of property portfolio increased by 1.0% compared with 31 December 2021
• Loan-to-valueratio of 43.0% as at 30 June 2022
• Focus remains on operational performance and maintaining high quality of portfolio with right tenant mix
• Interim dividend of € 0.59 per share; 60% payout ratio in line with dividend policy
• Outlook: Vastned reiterates its expected direct result for the full year 2022 between € 1.95 to € 2.05 per share

Hoofddorp, 28 July 2022 - Vastned, the listed European retail property company, has maintained its strong operational and financial performance despite economic uncertainties due to persistently high energy prices, rising inflation and increased recession fears in Europe. Vastned is reporting positive earnings for H1 2022 of € 2.30 euro per share and a direct result for H1 2022 of € 0.98 euro per share, an increase of over 11% compared with the € 0.88 per share reported in H1 2021. The collection rate further increased to 97.6%, and the occupancy rate increased to 98.5%. The value of the property portfolio increased 1.0% during H1 2022, mainly reflecting lower yields in key markets combined with relative stability across most other valuation factors.

Reinier Walta, CEO of Vastned: 'Vastned delivered another strong quarter in terms of the company's operational performance and interim results. Retailers in both 'phygital' and physical brands are showing a healthy demand for retail property. Moreover, transaction values are stabilizing, resulting in a slightly higher valuation of our property portfolio. Our performance has again demonstrated that Vastned has a high-quality portfolio with attractive, distinctive properties in prime locations in "winning cities". We will approach the second half of the year cautiously as a result of the economic situation, which could potentially affect our tenants. Despite the economic uncertainties, we reiterate our expectations for the full year 2022 provided in our Q1 trading update.'

	Vastned Retail N.V.	Mercuriusplein 11	PO BOX 22276	Tel: [phone]
		2132 HA Hoofddorp	1100 CG Amsterdam	[e-mail]	www.vastned.com

2 VASTNED RETAIL N.V. HALF-YEARREPORT 2022

PRESS RELEASE

Strategy execution

Vastned continues to concentrate its unique portfolio of high-street retail and inner-citymixed-use properties in winning cities. Our solid, growing occupancy and collection rates, as well as positive value development, reflect the quality of our portfolio. By adding tenants with strong digital brands and retailers that prioritise phygital (the combination of physical and digital), and by focusing on 'buy online, pick up in store' solutions, Vastned has created a more diverse mix of tenants. Furthermore, in H1 2022, Vastned decreased its exposure to fashion in its total portfolio by half a percentage point. By optimising its portfolio, Vastned expects to further unlock the intrinsic value of its real estate portfolio.

Sustainability

Sustainability is an important core value for Vastned in creating long-term value for its stakeholders.

Converting empty spaces above shops into residential units is making city centres livelier after closing time and increasing the housing stock. These investments also aim to improve the sustainability ratings of Vastned's properties. We carried out three apartment renovations in H1 2022. Five apartments will be delivered in Q3 of 2022.

Impact of COVID-19

During H1 2022, Vastned's portfolio in the Netherlands was impacted by a short period of lockdown, with restrictions on non- essential retail locations, restaurants and bars in January. Most of the restrictive measures were lifted on 15 January 2022. The rent concessions accounted for in H1 2022 as a result of waivers in the Netherlands amounted to € 0.4 million.

Key parameters

The direct result per share in H1 2022 was € 0.98 compared with € 0.88 in H1 2021. Compared with H1 2021, net rental income increased from € 26.9 million to € 28.8 million in H1 2022, due to almost no waivers granted in H1 2022.

The indirect result per share in H1 2022 was € 1.32 positive compared with € 1.38 negative in H1 2021. The positive indirect result in H1 2022 was mainly due to the increased value of the property portfolio (1%) and the increased value of the financial derivatives as a result of higher market interest rates.

The occupancy rate increased from 96.2% to 98.5%.

Results	H1 2022		H1 2021
Occupancy rate as at 30 June (%)	98.5	96.2
Like-for-like gross rental growth (%)	1.4	(3.2)
Value movements 1 (%)	1.0	(1.9)
Total appraisal value of the portfolio 2 (€ million)	1,452	1,440
Direct result per share (€)	0.98	0.88
Indirect result per share (€)	1.32	(1.38)
Result per share (€)	2.30	(0.50)

1. Excluding acquisitions and divestments
2. Including assets held for sale

	Vastned Retail N.V.	Mercuriusplein 11	PO BOX 22276	Tel: [phone]
		2132 HA Hoofddorp	1100 CG Amsterdam	[e-mail]	www.vastned.com

3 VASTNED RETAIL N.V. HALF-YEARREPORT 2022

PRESS RELEASE

NOTES TO THE PROPERTY PORTFOLIO

Occupancy rate

The occupancy rate of the full portfolio rose in Q2 2022 compared with Q1 2022 and the figures for 31 December 2021.

The occupancy rate in the Netherlands increased mainly due to the new lettings. The occupancy rate in France also increased, due to the new lettings. In Belgium, the occupancy rate remained relatively stable. The portfolio in Spain remained fully let.

Occupancy rate (%)	30 June 2022		31 March 2022		31 December 2021		30 June 2021
Netherlands	98.3	97.7	97.2	96.1
France	98.1	97.5	97.2	94.1
Belgium	98.8	98.9	99.3	97.5
Spain	100.0	100.0	100.0	100.0
Total	98.5	98.1	97.9	96.2

Leasing activity

In the first six months of 2022, Vastned concluded 19 leases for a total annual amount of € 2.1 million, or 2.9% of the total theoretical gross annual rental income. On the 19 leases, Vastned realized a € 0.3 million rent decrease, caused mainly by a new lease to G-Star on Voldersstraat 15 in Gent and the new letting of Etam on Meir 99 in Antwerp. Both rental units were previously over-rented and are now rented in line with the estimated rental value provided by external appraisers. On Zuidplein in Rotterdam, Vastned renewed its lease with Etos and signed a new lease with Snipes.

Leasing activity	H1 2022
Number of leases	19
Rental income (€ million)	2.1
% of total theoretical annual rent	2.9
Rental change (€ million)	(0.3)
% rental change	(13.1)

Appraisal value

The appraisal value of Vastned's total property portfolio was € 1.45 billion as at 30 June 2022. This is an increase of 1% compared with year-end 2021.

Portfolio breakdown (€ million)	30 June 2022		% of total
Netherlands	631.1	43
France	413.5	28
Belgium	323.3	22
Spain	83.8	6
Total	1,451.7	100

	Vastned Retail N.V.	Mercuriusplein 11	PO BOX 22276	Tel: [phone]
		2132 HA Hoofddorp	1100 CG Amsterdam	[e-mail]	www.vastned.com

4 VASTNED RETAIL N.V. HALF-YEARREPORT 2022

PRESS RELEASE

Like for like appraisal value

All properties in operation are appraised at least once a year by independent certified appraisers. As at 30 June 2022, 97.3% of the portfolio has been appraised. The like-for-like appraisal value of the property portfolio excluding acquisitions and divestments at the end of June 2022 increased by 1.0% compared with year-end 2021. The value increase of the portfolios in the Netherlands, France, Belgium and Spain were 1.5%, 0.8%, nihil and 2.1%, respectively.

Appraisal value

(€ million)	H1 2022		vs FY 2021		FY 2021		vs FY 2020		FY 2020
Netherlands	631.1	9.2	621.9	(15.5)	637.5
France	413.5	3.3	410.1	2.9	407.2
Belgium	323.3	0.1	323.2	(9.8)	333.0
Spain	83.8	1.7	82.1	(1.5)	83.6
Total	1,451.7	14.3	1,437.4	(23.8)	1,461.2

Acquisitions and divestments

In Q1 2022, Vastned sold two non-strategic assets on Dorpstraat 21-23 in Renkum and Achter Clarenburg 19 in Utrecht with a total transaction value of € 0.8 million, which was 18.6% above book value. No divestments or acquisitions took place in Q2 2022. After balance sheet date, Vastned acquired Zuidplein Hoog 827 in Rotterdam, which is currently rented to ICI Paris XL.  

NOTES TO THE FINANCIAL RESULTS

Financial results (€ million)	H1 2022		H1 2021
Direct result	16.9	15.1
Indirect result	22.6	(23.7)
Result attributable to Vastned Retail shareholders	39.5	(8.6)
Result attributable to non-controlling interests	2.8	(0.1)
Result after taxes	42.3	(8.7)

Result attributable to Vastned Retail shareholders

The result attributable to Vastned's shareholders, which comprises the direct and indirect results, was € 39.5 million positive in H1 2022 (H1 2021: € 8.6 million negative). The main cause was the increase of the indirect result from € 23.7 million negative in H1 2021 to € 22.6 million positive in H1 2022. Within the indirect result, the value increase of the property portfolio in H1 2022 amounted to € 14.6 million (H1 2021: value decrease of € 28.7 million). As a result of higher market interest rates, the value movements of the financial derivatives were € 9.6 million positive in H1 2022 (H1 2021 € 1.6 million positive). The indirect result also included a positive result on the sale of property of € 0.2 million, deferred taxes of € 0.6 million and abortive purchase costs of € 0.7 million.

The direct result increased from € 15.1 million in H1 2021 to € 16.9 million in H1 2022. Net rental income was higher

(€ 28.8 million in H1 2022 compared with € 26.9 million in H1 2021); however, this effect was partly compensated by higher income taxes.

Result per share

The result per share attributable to Vastned shareholders was € 2.30 positive in H1 2022 (H1 2021: € 0.50 negative).

The result comprises the direct result per share of € 0.98 (H1 2021: € 0.88) and the indirect result per share of € 1.32 positive

(H1 2021: € 1.38 negative).

	Vastned Retail N.V.	Mercuriusplein 11	PO BOX 22276	Tel: [phone]
		2132 HA Hoofddorp	1100 CG Amsterdam	[e-mail]	www.vastned.com

5 VASTNED RETAIL N.V. HALF-YEARREPORT 2022

PRESS RELEASE

NET INCOME FROM PROPERTY

Gross rental income

The gross rental income was € 32.8 million in H1 2022 compared with € 31.0 million in H1 2021. A breakdown of the movements per country is provided in the table below.

Total (€ thousand)	Netherlands	France	Belgium	Spain	Total
Gross rental income H1 2021	14,333		6,723		8,680		1,290		31,026
Acquisitions	-		-		-		-		-
Divestments	(175)	-		(212)	(12)	(399)
Waivers of rent arrears (LfL)	614		522		588		-		1,724
Like-for-like rental growth	242		162		(227)	242		419
Gross rental income H1 2022	15,014		7,407		8,829		1,520		32,770
Other income	-		158		45		-		203
Addition to provision for expected credit losses	104		(266)	25		-		(137)
Operating expenses	(2,589)	(612)	(736)	(94)	(4,031)
Net rental income H1 2022	12,529		6,687		8,163		1,426		28,805
Net rental income H1 2021	11,183		6,211		8,236		1,265		26,895
Operating expenses as % of gross rental income 2022	16.6		11.9		8.1		6.2		12.7
Operating expenses as % of gross rental income 2021	22.0		7.6		5.1		1.9		13.3

Divestments (€ 0.4 million decrease)

In H1 2022, Vastned made € 0.8 million worth of divestments. In 2021, Vastned sold properties totalling € 17.7 million, which caused the gross rental income to fall by € 0.4 million compared with H1 2021. These divestments were made in the Dutch, Belgian and Spanish property portfolios.

Waivers in the context of COVID-19 (€ 1.7 million increase)

As a result of COVID-19, an amount of € 0.4 million in rent arrears was waived in H1 2022 (H1 2021: € 2.1 million). The waivers of rent arrears in H1 2022 were granted in the Netherlands.

Like-for-like gross rental growth (€ 0.4 million increase)

The like-for-like rental growth of the gross rental income was € 0.4 million positive. The like-for-like rental growth in the Netherlands, France and Spain was respectively € 0.2 million positive, € 0.2 million positive and € 0.2 million positive.

In Belgium, the like-for-like rental growth was € 0.2 million negative, as a result of lease renewals with a rent decrease. The like-for-like growth of the gross rental income was 1.4% positive for the total property portfolio.

Operating expenses (including net service charge expenses)

Total operating expenses, excluding the allocation to the provision for expected credit losses, increased from € 3.8 million in H1 2021 to € 4.0 million in H1 2022, mainly as a result of increased letting costs.

	Vastned Retail N.V.	Mercuriusplein 11	PO BOX 22276	Tel: [phone]
		2132 HA Hoofddorp	1100 CG Amsterdam	[e-mail]	www.vastned.com