Merlin Properties Socimi, S.a. · BME:MRL
Merlin Properties Socimi — Investor Presentation (September 2023)
58 slides from Merlin Properties Socimi's investor presentation, September 2023
Slide 1: Company Presentation September 2023
COMPANY PRESENTATION SEPTEMBER 2023
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared certain assumptions and estimates. These offering, will not be registered under the This presentation may include forward- by MERLIN Properties SOCIMI, S.A. (the internal analyses may have not been verified U.S. Securities Act of 1933, as amended (the l
Slide 3: Contents
CONTENTS ––– ––– ––– ––– A leading A well-grounded An exciting Appendix company present future
Slide 4: A leading company
A LEADING COMPANY
Slide 5: History
A leading company | History 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Acquisition of 47 assets Acquisition of 3 assets Sale Non-core Acquisition and ZAL Port Acquisition Acquisition Acquisition in Portugal and DCN of Tree assets of 12 assets of 40 assets of 11 assets of 6 assets in Madrid po
Slide 6: Sound financial structure
A leading company | Sound financial structure FINANCIAL DISCIPLINE: LONG MATURITIES AND FULLY HEDGED DEBT 33.9% 2.26% 5.3 98.0% 98.0% € 3,935m € 1,034m LTV Average Interest Years Non-mortgage debt Fixed Net financial Liquidity Rate (hedged) Maturity /total debt rate debt debt position(1) 872 872 727
Slide 7: A snapshot of MERLIN
A leading company | A snapshot of MERLIN 8.2% 8.2% otros otros 2.9% 2.9% 6.8% 16.8% Logistica Logistica 16.7% 16.7% CC CC Gross asset value 56.5% oficinas 56.5% oficinas Gross rental income 53.4% 53.4 (30/06/2023) (30/06/2023) 5% 18.5% 27.0% 27.0% Offices Shopping Centers Logistics Other 7 Note: GAV
Slide 8: Reconvening our strategy
A leading company | Reconvening our strategy A CLEARLY DEFINED STRATEGY INSPIRED BY THE BEST REIT PRACTICES Offices Logistics 50 % Core & Core Plus 20 % • Breadth of prime space Spain & Portugal • Footprint throughout Madrid, Barcelona the Iberian Peninsula and Lisbon • “One-stop shop” solution for
Slide 9: Shareholder's return
A leading company | Shareholder’s return +8.8% +1.4% +7.1% +4.7% (0.5%) +15.2% 16.11 15.39 15.46 15.67 15.36 +21.6% 14.81 +1.8bn € p.s +17.2% 13.25 +1.19 of dividends distributed Total +9.1% 11.23 shareholder’s since IPO return 9.85 9.10 As a consequence NTA of BBVA portfolio disposal 8,20 Current 0
Slide 10: A well-grounded present
A WELL-GROUNDED PRESENT
Slide 11: Positioning
A well-grounded present | Positioning #1 REIT IN OFFICES AND LOGISTICS #1 • Presence in prime cities: Madrid, Barcelona, Lisbon • Flexibility to offer multitenant or headquarter buildings Offices • Capacity to adapt to the needs of the tenant #1 • “One-stop-shop” solution for logistics operators wis
Slide 12: Offices
A well-grounded present | Offices PRIME SPACES IN BOTH CBD AND NBA OFFERING A WIDE VARIETY OF SOLUTIONS TO CLIENTS sqm Prime+CBD NBA Periphery Madrid 239,073 487,680 68,263 Barcelona 137,274 39,600 25,385 Lisbon 125,287 12,260 - Other - - 18,306 By location By product Otros Otros Lisbon Lisbon 16% B
Slide 13: Our clients: Offices
A well-grounded present | Our clients Offices Consulting firms Law firms Financial sector Tech sector Multinationals Leading Leading spanish spanish companies companies Public entities 13
Slide 14: Logistics
A well-grounded present | Logistics NATIONAL FOOTPRINT IN THE MAIN LOGISTICS HUBS sqm Madrid-A2 Madrid-A4 Barcelona(1) Sevilla País Vasco Valencia Zaragoza Lisbon In operation 809,705 154,511 868,317 139,218 99,491 61,604 21,579 45,171 WIP Best II 214,467 - - - - - - - WIP Best III 98,924 - - 15,122
Slide 15: A strategic stake - CILSA
A well-grounded present | A strategic stake - CILSA WITH A 48.5% STAKE IN ZAL PORT € 37.9 m 736,217 sqm GRI Top tier stock € 20.0m tenants FFO 6M23 figures 15
Slide 16: Shopping Centers
A well-grounded present | Shopping Centers URBAN AND DOMINANT ASSETS OFFERING NATIONAL SCALE IN HIGH GDP/CAPITA AREAS Muy grande sqm Urban Dominant(1) Secondary Spain 225,256 168,501 20,878 Lisbon Portugal - 60,049 - by GAV Other Spain By Type By location Muy grande • Lisboa 21% • Valencia 11% • Urb
Slide 17: Our clients: Logistics and Shopping Centers
A well-grounded present | Our clients Logistics Shopping Centers 17
Slide 18: GAV summary 6M23
A well-grounded present | GAV summary 6M23 Annual gross rents 263 76 121 - 14 474 Gross yield 4.6% 5.4% 5.9% - 4.8% 4.9% 11,301 10,621 6,289 GAV TOTAL with minority stakes Data Centers WIP Shopping centers 2,059 Minority stakes 1,422 Logistics Offices Other(1) TOTAL 650 680 200 18 (1) Other includes
Slide 19: Occupancy and WAULT 6M23
A well-grounded present | Occupancy and WAULT(1) 6M23 98.2% 94.9% Average 96.4% 96.4% occupancy 92.3% 7.1 3.4 3.4 3.2 2.3 Average WAULT Offices Logistics Shopping centers Other 19 (1) WAULT: weighted average unexpired lease term to 1st break
Slide 20: Lease maturity 6M23
A well-grounded present | Lease maturity 6M23 2% 2% Total 2023 4% % of total contracted 10% 4% 10% rents 2024 24% 8% 3% 6% 2025 18% 10% 4% 4% 2026 18% 5% 3% 2% 2027 10% 17% 4% 3% >2028 27% Offices Logistics Shopping Centers % of total for each segment 37% 37%37% 32%32% 32% 24%24% 24% 20%20% 20% 20%2
Slide 21: An exciting future
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Slide 22: Data centers: Main players in Spain
An exciting future | Data centers | Main players in Spain EXCELLENT ENTRY POINT FOR MERLIN WITH NO RELEVANT PLAYERS IN THE MARKET MAIN DC OPERATORS Current market size Under construction Future market size # Operator (MW) (MW) (MW) 1 MERLIN - 9 70 2 Equinix 12 24 36 3 Interxion 11 23 34 4 Nabiax 17
Slide 23: MERLIN investment strategy in DCs
An exciting future | Data centers | MERLIN investment strategy in DCs • 100% ownership of the assets • Design & Construction management • 100% of lease agreements cash-flows • Technological expertise • Local know-how • Staff training Spain 50% • Local staff for the development 50% and project manage
Slide 24: Best-in-class technology
An exciting future | Data centers | Best-in-class technology Triple Net zero Net Zero Carbon footprint with 1.15 PUE(1) 1 Net zero water cooling Edged uses a modular closed-loop 2 100% renewable energy 3 Supplying tenants with photovoltaic Each data center cuts overhead cooling system that supports
Slide 25: The Iberian Peninsula is a strategic enclave
An exciting future | Data centers | The Iberian Peninsula is a strategic enclave THE IBERIAN PENINSULA IS SET TO BECOME THE HUB FOR DATA CENTERS FOR CONTINENTAL EUROPE AND AFRICA, THANKS TO THE SUBMARINE INFRASTRUCTURE THAT CONNECTS THE IBERIAN PENINSULA WITH NORTH AMERICA, EUROPE, SOUTH AMERICA AND
Slide 26: Data centers portfolio overview
An exciting future | Data centers | Portfolio overview 4 STRATEGIC LOCATIONS IN THE IBERIAN PENINSULA TO DEVELOP STATE-OF-THE-ART DATA CENTERS Hyperscale Wholesale colocation Bilbao - Arasur Barcelona - PLZF Total GLA 17,600 - 102,466 sqm Total GLA 22,131 ı Capacity 16 MW Capacity 22 - 100 MW Under
Slide 27: Bilbao-Arasur construction
An exciting future | Data centers | Construction Bilbao-Arasur MAIN DATES Licensing: February 2022 Start of development: April 2022 Early access: 15th of September 2023 Final delivery date: 29th of September 2023 KEY MILESTONES Facade construction: Already completed Building construction: 90% comple
Slide 28: Madrid-Getafe construction
An exciting future | Data centers | Construction Madrid-Getafe MAIN DATES Licensing: July 2022 Start of development: July 2022 Early access: Already granted to anchor tenant Final delivery date: 29th of September 2023 KEY MILESTONES Facade construction: 95% completed. Finishing the installation of t
Slide 29: Barcelona-PLZF construction
An exciting future | Data centers | Construction Barcelona-PLZF MAIN DATES Licensing: July 2022 Start of development: August 2022 Early access: Already granted to anchor tenant Final delivery date: 29th of September 2023 KEY MILESTONES Facade construction: 95% completed. Finishing the installation o
Slide 30: Data centers construction
An exciting future | Data centers | Construction Data Hall Cooling system (aireblocks) Generator sets Data Hall (hot aisle) Cooling system (chillers) Meet Me Room (MMR) 30
Slide 31: Capex update
An exciting future | Data centers | Capex update Incurred Jun-23 Expected Dec-23 Additional equipment € 200m € 290m + € 102m 3 fully built shells + 9MW + 24MW 31
Slide 32: Commercialization & GRI
An exciting future | Data centers | Commercialization & GRI GRI 236 MW 2023 2024 € 1.1m € 11.2m 82 MW 70 MW Options and 15 MW additional demand 12 MW Advanced negotiations 2.0- 5.0 MW Advanced negotiations 2.6 MW Pre-let 4.2 MW Demonstration phase Expansion phase Full development phase 2024 2027 +20
Slide 33: Portfolio overview Phase I & II (70 MW)
An exciting future | Data centers | Portfolio overview Phase I & II (70 MW) Total Phase I & II MW CAPEX Annual YoC installed €m GRI stabilized(1) €m 70 MW € ~600m € ~75m 11.2% (1) Including land cost 33
Slide 34: MERLIN's scale is second to none
An exciting future | Logistics | MERLIN’s scale is second to none THE LARGEST PLAYER IN THE IBERIAN PENINSULA Logistics footprint under management (million sqm) 2.8 1.5 1.4 1.0 0.9 0.8 0.6 34
Slide 35: MERLIN anticipated the logistics boom
An exciting future | Logistics | MERLIN anticipated the logistics boom MERLIN HAS SECURED THE BEST LOCATIONS AT A COMPELLING YoC THANKS TO AN EXCELLENT ENTRY POINT Prime Yields evolution Transacted volume (€m) 2,873 2,611 1,562 1,658 1,585 789 854 854 809 5.7% 604 5.0% 5.1% 2012 2013 2014 2015 2016
Slide 36: A unique footprint
An exciting future | Logistics | A unique footprint 160k sqm with agreed Head of Terms +20k sqm 84k sqm speculative Cabanillas Park II 21k sqm 58k sqm Azuqueca III 51k sqm To start construction San Fernando III 14k sqm 2H23(1) 85k sqm Lisboa Park 61k sqm 119k sqm Valencia-Bétera 97k sqm Total remain
Slide 37: Offices: A strategic stake - DCN
An exciting future | Offices | A strategic stake - DCN 37
Slide 38: A strategic stake - DCN
An exciting future | Offices | A strategic stake - DCN THE MOST EXCITING RE-GENERATION PROGRAM IN EUROPE TIMELINE Urbanisation Delivery of the infrastructures first building Jul-2020 Jul-2021 Final approval Signing of of modification framework Tender of the Chamartín of PGM Madrid agreement station
Slide 39: Plaza Ruiz Picasso
An exciting future | Offices | Plaza Ruiz Picasso VIRTUALLY FULLY LET TO TIER-1 TENANTS AT PRIME RENTS GLA 36,899 sqm Delivery After Refurbishment 2023 5,323 sqm created 39
Slide 40: P.E. Cerro de los Gamos
An exciting future | Offices | P.E. Cerro de los Gamos After Before GLA Leasing 36,861 sqm Delivered I - 100% (4,338 sqm) After Refurbishment +756 sqm created in July IV - 100% (6,488 sqm) 40
Slide 41: ESG: MERLIN's journey
An exciting future | ESG | MERLIN’s journey DISTINCT TRACK RECORD ON ESG SINCE INCEPTION, WHICH POISES MERLIN TO SUCCESSFULLY IMPLEMENT OUR PATHWAY TO NET ZERO 2015 2016 2018 Baseline 2020 2022 • Launch of the certification • Obtained first LEED v4 • Procurement of renewable • Pathway to Net Zero pr
Slide 42: Pathway to net zero
An exciting future | ESG | Pathway to net zero MERLIN HAS LAUNCHED ITS PATHWAY TO NET ZERO, ENSURING A BOTTOM-UP ANALYSIS TO SHAPE AND DEFINE THE PATHWAY The backbone of our strategy Sustainable Wellbeing Reshaping assets of people cities Pillars 1 Reducing 2 Reducing 3 Reducing 4 Offsetting operati
Slide 43: Renewable energy
An exciting future | ESG | Renewable energy Project Sun 1 A Coruña 33 assets 1 Vitoria across all asset categories 2 5 Barcelona Total 2 Investment 7 Madrid Valencia 10 1 € 30.4m 1 2 Palma de Mallorca Capacity Seville installed 1 Malaga • Offices • Logistics 39.8 Mwp 1 • Shopping centers Procurement
Slide 44: Recognitions
An exciting future | ESG | Recognitions Inclusion for MERLIN B- Average score B C 7.2 Top 1% A- 2 nd year in a row Financial Europe Global (negligible risk) services average 79% 70% #1 Average peers: 68% Average sector: 21% IBEX-35 44
Slide 45: Technology
An exciting future | ESG | Technology MERLIN IS FOCUSING ITS TECHNOLOGY EFFORTS THROUGH 3 PILLARS Deployment in our portfolio Mentoring Sponsoring Sensorization Proptech challenge MERLIN has invested in Fifth Wall, MERLIN teamed up with a venture capital proptech fund ISDI and Impact accelerator The
Slide 46: Appendix
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Slide 47: Offices: Madrid
Appendix | Offices Castellana 259, Madrid Castellana 85, Madrid Plaza Ruiz Picasso 11, Madrid Castellana 280, Madrid Castellana 278, Madrid Castellana 93, Madrid 47
Slide 48: Offices: Madrid
Appendix | Offices Endesa HQ, Madrid Indra HQ, Madrid Josefa Valcárcel 48, Madrid Pedro de Valdivia, Madrid Alcalá 40, Madrid Uría HQ, Madrid 48
Slide 49: Offices: Madrid
Appendix | Offices Adequa Técnicas Reunidas & EDP HQ, Madrid Ática XIX, Madrid Via Norte, Madrid Alfonso XI – IEB HQ, Madrid Partenón – Amex HQ, Madrid Princesa, Madrid 49
Slide 50: Offices: Barcelona
Appendix | Offices Diagonal 199, Barcelona Diagonal 211, Barcelona Diagonal 458, Barcelona Diagonal 514, Barcelona Diagonal 605, Barcelona Ed. Balmes, Barcelona 50
Slide 51: Offices: Barcelona
Appendix | Offices Poblenou 22@, Barcelona Vilanova – Endesa HQ, Barcelona WTC 6&8, Barcelona Sant Cugat – Ricoh HQ, Barcelona Plaza Cataluña 9, Barcelona E-Forum – AEAT HQ, Barcelona 51
Slide 52: Offices: Lisbon
Appendix | Offices Marqués de Pombal, Lisbon Marqués de Saldanha, Lisbon Arts Lisbon, Lisbon Galp HQ, Lisbon Nestlé HQ, Lisbon TFM, Lisbon 52
Slide 53: Offices: Lisbon
Appendix | Offices Torre Zen, Lisbon Central Office, Lisbon Lisbon Expo – Novabase HQ, Lisbon Liberdade 195, Lisbon 53
Slide 54: Logistics assets
Appendix | Logistics San Fernando, A2 Meco, A2 Cabanillas Park I, A2 Cabanillas, A2 Azuqueca, A2 ZAL Port, Barcelona 54
Slide 55: Logistics assets
Appendix | Logistics Seseña, A4 Getafe, A4 Pinto II, A4 Gavilanes, A4 ZAL, Sevilla Ribarroja, Valencia 55
Slide 56: Shopping Centers
Appendix | Shopping Centers Marineda, A Coruña Almada, Lisbon Arturo Soria, Madrid Larios, Málaga Arenas, Barcelona Porto Pi, Mallorca 56
Slide 57: Shopping Centers
Appendix | Shopping Centers Artea, Bilbao Saler, Valencia Tres Aguas, Madrid X-Madrid, Madrid Centro Oeste, Madrid Callao, Madrid 57
Slide 58: Contact
Paseo de la Castellana, 257 28046 Madrid +34 91 769 19 00 info@merlinprop.com www.merlinproperties.com
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