Merlin Properties SOCIMI S A : 6M 2020 Results Presentation
07/30/2020 | 03:45am EST
30 July 2020
This presentation has been prepared by MERLÍN Properties, SOCIMI, S.A. (the Company) for informational use only.
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GM / COO
A resilient company
6M20 Financial results Offices
Valuation and debt position Value creation
A resilient company |
Excluding minority stakes
LOGISTICS + NET LEASES + OTHER(1)
OFFICES IN PRIME CBD AND NEW BUSINESS AREAS
URBAN AND DOMINANT MALLS
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A resilient company |
Contracted rents exceed € 3bn(1) to first break and € 5bn to maturity
Stable and predictable cash flow stream
Only 15% of rents maturing before end of 2021
Covid-19 incentives fully booked in 2020
(€ 66 million estimated, no change from April disclosure)
Securing a minimum of € 101.1 million of rents from retail in 2021(2) through lease extensions
Only 3%-4% of retail tenants deemed "unrecoverable"
40% LTV (covenant 60%)
3.7x ICR (covenant 2.5x)
No debt repayment until May 2022
Maturity profile extended to 6.5 years
BBB stable rating by S&P
Including contracts on projects pending to be delivered. Not including CPI
(2) Assuming no mall income and 0% renewal rate
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Key highlights |
Positive LfL rental growth of +2.7% YoY, evidencing the strength of our portfolio
FFO per share of € 0.29, affected by Covid -19 incentives (€ 0.06 per share) and assets sold (€ 0.02 per share), otherwise it would show growth when compared to 6M19
Valuations flat vs Dec-19, with offices and logistics on the positive territory while retail down by 4.7%
Debt management resulting in LTV on par with Dec-19 (40.4%). Average maturity extended 6 months to 6.5 years and no floating rate risk
LfL growth in all asset categories, combined with sound release spread
Leasing activity has continued at a good pace during Covid-19, with 150,000 sqm signed in offices in the second quarter. Retail has seen modest activity (ca 6,200 sqm signed) and logistics advancing, with ca 45,000 sqm signed. Leases generally signed above ERV
Occupancy resilience, standing today (94%) where it was at the end of the first quarter. The high adoption rate of our Covid-19 commercial policy (which included an extension of contracts beyond 2021) plus the extension of the Endesa lease, provides greater visibility on future rents
Landmark. Several significant leases signed in the period, in Castellana 85 and Monumental with rents at the same level as the pre-lets negotiated before Covid-19 outbreak. Both projects achieve very compelling returns (yield on cost of 8.3% and 9.4%, respectively). Total secured future rents for Landmark of € 13.3m commencing in 2021
Flagship. Works have progressed on pace in Saler and Porto Pi
Best II & III. 2 projects delivered in Seville and pre-lets signed for Madrid-San Fernando II and Zaragoza-Plaza II. Total secured future rents for Best II & III of € 6.3m commencing in 2021
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6M20 Financial results
6M20 Financial results |
Top-line ahead of 2020 expectations. FFO impact ofCovid-19incentives
MERLIN Properties SOCIMI SA published this content on 30 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2020 07:45:10 UTC