Retail Estates : 20/03/2024 - KBCS Real Assets Conference

KBCS Real Assets Conference

19 & 20 March 2024

Important milestones 1998-2023

Echoes from the retailers

• ➤ 1. Increased spending on travel and horeca

  2. Seasonal aspects in fashion

• ➤ 3. Have and have-nots:

  Belgium versus the Netherlands

• ➤ 4. Price increases versus volumes

• ➤ 5. Elections everywhere

• ➤ 6. Impulsive versus functional buying

Pressure on P/L retailers: ups and downs

• A. Inflation

• • ➣ Full indexation Belgium : strongly reduced speed

  • ➣ Full indexation The Netherlands : corrections to the CBS index since 1 March 2023

  • ➣ Evolution contractual rent versus ERV

  • ➣ Rent reviews : renewals/break date

• B. Energy crisis ➣ The calm after the storm

• C. Salary costs ➣ Inflation in nominal and real terms

• D. Logistics ➣ Click and bricks

• E. Circular economy ➣ Hidden costs

A. PROFITABILITY

• ➣ Rental income - incasso - intervention fund

• ➣ Vacancy

• ➣ Maintenance costs

• ➣ Personnel costs

• ➣ Interest costs

• ➣ Taxes

• ➣ Dividend

B. BALANCE SHEET

• ➣ Property value

• ➣ Investment capacity

• ➣ Financing capacity

• ➣ Capital markets

C. MITIGATING FACTORS

• ➣ Low unemployment

• ➣ Indexation of wages

• ➣ Who is my client's client

• ➣ Financial position various tenants

• ➣ Trained RE team

• ➣ Cost control: OPEX (ESG/SAP)