Lighthouse expects to reap further benefits from the Iberian region, as it says it is strategically positioned to drive sustained growth in sales, footfall and net property income.
The group expects a solid financial performance in the 2026 financial year, with growth further supported by full-year contributions from recently acquired properties and value-enhancing capital investments, it said in its interim results for the six months to end-June.
Lighthouse, which invests in dominant malls in major western European cities, confirmed its 2025 financial year distribution guidance of about 2.70 euro cents per share.
The group recorded like-for-like net property income growth of 6.9% for the first half of the 2025 financial year, with tenant sales and footfall rising 7.6% and 3.9%, respectively, based on all assets owned at end-June.
Much of the momentum came from the Spanish portfolio.
“This strong performance was primarily driven by the Spanish portfolio, driven by the introduction of key anchor tenants and the ongoing consolidation of tenant operations from high street locations and secondary malls into dominant retail centres,” Lighthouse said.
Vacancies rose from 2% in December 2024 to 2.7% in June, driven largely by the Spanish portfolio, where vacancies climbed from 0.9% to 2.2%. The group said the increase was temporary, reflecting a planned tenant rotation to bring in more national anchor tenants.
“The strength of Spain’s economy is translating into robust retail performance and increased demand from both new and existing national and international tenants,” the group said.
Spain outperformed the broader eurozone in the second quarter of 2025, recording annual GDP growth of 2.8% compared to the eurozone’s 1.4%.
Retail sales in Lighthouse’s Spanish portfolio rose 8% in the first half of the 2025 financial year, well above the regional inflation rate of 2.3% year on year to June. Footfall increased 4.4% over the same period, boosted by new Primark stores at Alcalá Magna and H2O, as well as the opening of Alcampo at Espai Gironés in June last year.
Sales across Lighthouse’s French portfolio rose 3.8% in the period, well ahead of the country’s inflation rate of 1% year on year to June. France’s economy, however, recorded GDP growth of just 0.7% in the second quarter, below the eurozone’s average of 1.4%.
During the year, Lighthouse secured loans totalling €184.6m (R3.79bn) for mall acquisitions, including €47.1m for Alcalá Magna, €76.2m for Espai Gironés and €61.3m for Espacio Mediterráneo.
The group’s loan-to-value ratio increased from 25% at December 2024 to 35% by June due to acquisitions.
Portugal’s economy grew 1.9% in the second quarter of fiscal 2025, ahead of the eurozone’s 1.4% growth. Lighthouse’s Portuguese portfolio saw sales rise 8.8% in the first half of the 2025 financial year, well above the region’s 2.4% year-on-year inflation rate to June.
“The assets in Portugal remain effectively fully let, underscoring the strength of tenant demand. At Forum Coimbra, construction has commenced on the extension projects for Primark and the Inditex brands (including Zara),” Lighthouse said.
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