Castellana Properties' gross revenues from recurring contractual rents amounted to 58 million euros, 5% more than in the previous fiscal year, and Funds from Operations (FFO) reached 13.6 million euros. Currently, the gross value of the firm's portfolio, with a gross leasable area of 367.015 sqm, is close to 1.000 million euros.
The company, which has published the results for its last fiscal year (from April 1, 2020 to March 31, 2021), has supported all its operators and the communities where it is present, starting with the voluntary remission of 100% of the minimum guaranteed rent for those premises that were unable to carry out their usual economic activity in April and May 2020.
In order to strengthen long-term relationships with its tenants, the firm has agreed to temporary pandemic bonuses amounting to 19 million euros, directly impacting the company's profits, which have obtained an EBITDA of 26.5 million euros. However, this aid has enabled it to maintain the portfolio's occupancy ratio at levels close to full occupancy and the duration of the contracts at 13.4 years.
The pandemic has also had an impact on the group's results, with a net loss of 31.9 million euros. This is mainly due to the deterioration in the valuation of its assets over the last 12 months. Even so, Castellana Properties expects to reach pre-covid-19 levels in the coming months.
Assets maintain high occupancy rate
At the end of March, the occupancy rate of the company's assets was close to 100%. In addition, it has signed 116 leasing transactions in the last year, of which 67 correspond to new contracts and 49 to renewals. These transactions have generated an additional net operating income (NOI) of 4.5 million euros and represent the occupation of 34.000 sqm, which represents 10% of the company's total retail portfolio. These transactions have increased the average rent per square meter of these spaces by 7.52%.
Throughout the pandemic, and following the repositioning projects in Los Arcos (Seville), El Faro (Badajoz) and Bahía Sur (Cádiz), after the acquisition of several spaces from El Corte Inglés, 51 new stores have been opened in these shopping centers in which the firm has invested around 29 million euros. In total, these three projects in which the company has been immersed since 2019, occupy 38.000 sqm of GLA. It has also generated an additional NOI of 3.86 million euros.
In line with Castellana's commitment to the active management of its portfolio, the firm has recently acquired an office building of more than 4,600 sqm GLA and four floors annexed to the Los Arcos shopping center, in which it will invest 15,6 million euros. This new space will form part of the asset, where a leisure and restaurant area will be built with the addition of 12 new brands.
The company has also made clear its commitment to innovation and the importance of omnichannel in the retail sector with the launch of the "iCast" project, whose objective is to analyze possible solutions and define new initiatives to further improve and promote Castellana's shopping centers as omnichannel spaces. This initiative involves all the company's employees and positions innovation as one of the key values that the company will promote in the coming years.
Sales and footfall recover
Following the reopening of the shopping centers at the end of May, footfall and sales at Castellana Properties centers have recovered satisfactorily and have registered figures above expectations.For example, during the months of September and October, when restrictions and limitations were reduced, 85% of inflows and 95% of sales recovered.
In addition, conversion rates and the average ticket per visitor have been higher, which has allowed sales to recover more quickly. By type of asset, retail parks, which comprise 43% of Castellana's portfolio, are the ones that have experienced the best data, with very positive growth, higher than in previous years.
«The potential of the retail sector in Spain has been demonstrated by the rapid recovery of footfall and sales in our shopping centers, which have exceeded our expectations. We are convinced that we will reach precovid levels in the coming months. At Castellana Properties, we will continue to focus on retail and active management of our portfolio, keeping our shopping centers at the forefront and meeting the needs and demands of all our customers and tenants», said Alfonso Brunet, CEO of Castellana Properties.
