Retail Estates Results 3m25/26, full year outlook maintained

NRI 3m25/26 amounts to €36.4m, +3.1% YoY vs. our expectation of €36.2m. The lfl growth amounted to a respectable 2.6%. EPRA EPS came in at €1.52, -2.5% YoY vs. 1.52 expected. The EPS was diluted by the scrip dividend that raised 18m and added 2.2% to the share count (35% acceptance). RET confirmed its FY25/26 dividend of €5.20. Despite many bankruptcies, occupancy remained relatively stable at 97.45%, a slight improvement from last March at 97.26%. The debt ratio increased to 44.06% on the dividend. The dividend outlook for FY25/26 remained at €5.2 per share. The cost of debt declined further to 2.04% from 2.10%. The NTA increased to 76.6 vs. 74.4 a year ago. We maintain our Accumulate rating and € 76.0 target. The shares are still cheap on EPRA PE basis and the discount to the EPRA NTA amounts to > 20%. The new co-CEO Nicolas Beaussillon will start on 6/10, a bit earlier than first announced. We also noted that Koen Nevens has been added to the board. We now expect a smooth transition.