Lighthouse Properties flags strong retail momentum ahead of H1 2026 results

Lighthouse Properties, a real estate firm based in Malta, has reported resilient operational performance across its European retail portfolio, supported by rising tenant sales, steady footfall, and strong leasing activity ahead of its half-year results for the period ending June 30, 2026.

In a pre-close update released June 29, the group said tenant sales rose 7.9% in the first quarter of 2026, outpacing inflation across its core markets of Spain, Portugal, and France. Footfall increased 2.4%, reflecting sustained consumer demand, while EPRA vacancy remained low at 1.4%, broadly in line with the prior year. Rent collections stood at 99% of billings, underscoring the strength of Lighthouse’s tenant base and asset management strategy.

Spain leads growth amid strong macro backdrop

Spain remained the group’s top-performing market, delivering sales growth of 8.6% in the first quarter, significantly above inflation of 3.4%. The performance was supported by the country’s GDP growth of 2.7%, well ahead of the eurozone average.

The group continued to roll out asset upgrades and tenant expansions across key malls. At Salera, major Inditex brands including Bershka and Stradivarius expanded, while new tenants such as Scalpers and Apple reseller Rossellimac are expected to open later this year.

At Espai Gironès, Zara’s ongoing expansion will nearly double its footprint, while new leases with C&A and Cortefiel are set to enhance tenant mix. Across the Spanish portfolio, Lighthouse is advancing a broader repositioning strategy, including flagship store upgrades and space reconfiguration to accommodate larger-format tenants.

Portugal portfolio remains fully let

Portugal also delivered strong results, with tenant sales rising 7% in the first quarter, well above inflation of 2.3%. The portfolio remains effectively fully occupied.

At Forum Coimbra, refurbishments of major Inditex stores were completed on schedule, with all four locations now ranking among top performers in the country. New entrants including Lego and Sephora have strengthened the mall’s retail offering, while Primark’s expansion is ongoing.

At Forum Montijo, leasing momentum continued with new long-term agreements, including a cinema operator and specialty retailers, reinforcing the mall’s position as a regional retail hub.

France shows resilience despite softer economy

In France, where GDP growth was more modest at 0.9%, Lighthouse still recorded sales growth of 6.5%, ahead of inflation of 1.7%.

The group advanced several leasing and redevelopment initiatives across its French assets. New leases with international brands, including New Yorker and Hollister, alongside food and entertainment additions such as Popeyes and Fort Boyard, are expected to boost footfall and diversify income streams.

Leasing activity and refinancing plans

During the first quarter, Lighthouse executed 44 lease agreements, including 26 new leases, covering a total gross lettable area of 21,800 square meters. The deals delivered an average positive rental reversion of 6.2%, excluding indexation.

On the financing side, the group said it is progressing plans to refinance a €105.9 million facility secured against its French portfolio, which matures in March 2027. Discussions with multiple financiers have yielded favorable terms, with completion expected in the fourth quarter of 2026.

Steady growth backed by active asset management

Lighthouse said its strategy remains focused on optimizing its existing portfolio through targeted capital expenditure, tenant repositioning, and disciplined leasing.

The group expects ongoing projects, including store expansions, tenant upgrades, and new brand introductions, to support earnings growth into 2027 as assets stabilize.

The board reaffirmed its full-year 2026 distribution guidance of approximately 2.95 euro cents per share, representing projected growth of 6.9% over 2025.