Merlin Properties Socimi, S.a. · BME:MRL
Merlin Properties Socimi — Investor Day (October 2019)
117 slides from Merlin Properties Socimi's investor day presentation, October 2019
Slide 1: Opening Remarks - Capital Markets Day 2019
OPENING REMARKS C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 2: MERLIN today: five intense years as leading Spanish REIT
Company Overview | MERLIN today FIVE INTENSE YEARS TO POSITION MERLIN AS THE LEADING SPANISH REIT AND AMONG THE TOP 10 EUROPEAN REITS 2014 2015 2016 2017 2018 2019 Acquisition of Tree portfolio Acquisition Acquisition Sale of hotel Investment in Acquisition (888 BBVA Acquisition Acquisition of 47 as
Slide 3: Positioning: #1 REIT across all asset categories
Company Overview | Positioning #1 REIT ACROSS ALL ASSET CATEGORIES WHERE MERLIN OPERATES FULLY CONSOLIDATED(1) 148 ASSETS #1 •F lexibility to offer multitenant or headquarter buildings 1,434 K SQM •C apacity to adapt to the needs Office of the tenant € 6.1 BN GAV € 244 M GRI MINORITY STAKES(2) TRES
Slide 4: Offices | Strategy
Offices | Strategy INTRODUCTION OF HOSPITALITY ROLL OUT 1 LANDMARK I 2 SERVICES ACROSS THE ENTIRE 3 OF LOOM PORTFOLIO • Full refurbishment of • Fully developed cluster of • Flex space brand recently assets with high and quick common services to tenants fully integrated to accelerate reversionary pot
Slide 5: Offices | Landmark I: 2019 deliveries
Offices | Landmark I: 2019 deliveries TORRE CHAMARTÍN TORRE GLÒRIES MARQUÉS DE POMBAL 3 Finished Finished WIP 94% 100% 100% occupied occupied occupied 5
Slide 6: Offices | Landmark I: 2020 deliveries
Offices | Landmark I: 2020 deliveries MONUMENTAL CASTELLANA 85 DIAGONAL 605 Building vacated Building vacated Works started in June Works started in August Works started in September 90% occupied 6
Slide 7: Offices | Excellent trading achievements
Offices | Excellent trading achievements 90.3% 90.0% 6.5% 6.1% 88.2% 87.9% 3.4% 0.6% 2016 2017 2018 6M19 Occupancy rate Release spread 7
Slide 8: Retail | Strategy
Retail | Strategy CREATING EXPERIENCE CALLAO 5 1 FLAGSHIP 2 AND EMBRACING 3 HIGH-STREET TECHNOLOGY • Refurbishing 5 shopping • Digitalization project for • Callao 5 refurbishment, will centers and developing the entire portfolio convert the building into a X-Madrid flagship asset: • Development of a
Slide 9: Retail | Flagship: 2019 deliveries
Retail | Flagship: 2019 deliveries ARTURO SORIA PLAZA LARIOS 100% let 100% pre-let Refurb completed Inauguration on 14-Nov TRES AGUAS X-MADRID 92% pre-let 93% pre-let To finish by Dec-2019 To open on 21-Nov 9
Slide 10: Retail | Flagship: 2020-2022 deliveries
Retail | Flagship: 2020-2022 deliveries EL SALER PORTO PI CALLAO 5 1st phase finished 1st phase finished Works to start 2nd phase started 2nd phase started in 4Q20 on Sep-19 on Sep-19 10
Slide 11: Retail | Excellent trading achievements
Retail | Excellent trading achievements 92.6% 91.0% 89.4% 88.6% 2016 2017 2018 6M19 Occupancy rate 11
Slide 12: Logistics | Strategy
Logistics | Strategy EXPAND PORTFOLIO STATE-OF-THE-ART EXPAND LAST 1 THROUGH DEVELOPMENTS AND BTS(1) 2 FACILITIES SUITABLE FOR 3 PL’S AND E-COMMERCE 3 MILE SOLUTIONS • Reinforce leadership position • Unique footprint to serve • MERLIN has the largest in Spain 100% of client needs footprint in Spain,
Slide 13: Logistics | Best II and III: 2019 deliveries
Logistics | Best II and III: 2019 deliveries Madrid-Pinto IIB Delivered 29K sqm 100% let Guadalajara-Cabanillas III Delivered 22K sqm 100% let Just delivered Guadalajara-Cabanillas F 21K sqm Advanced negotiations Valencia-Ribarroja Delivered 35K sqm 100% let Toledo-Seseña Delivered 29K sqm 20% pre-l
Slide 14: Logistics | Best II and III: 2020-2021 deliveries
Logistics | Best II and III: 2020-2021 deliveries Guadalajara-Azuqueca II Works underway 99K sqm 100% Pre-let Zaragoza Plaza II Works underway 11K sqm 100% Pre-let 9K sqm delivered Sevilla Zal WIP 5K sqm underway 14K sqm 100% Pre-let Zal WIP Works underway 258K sqm 97% Pre-let 14
Slide 15: Capital Structure
OPENING REMARKS C A P I TA L S T R U C T U R E C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 16: Capital structure | Debt position
Capital structure | Debt position 210 5,292 3,250 5,076 (216) (€ million) 853 979 Secured Unsecured Unsecured RCF Total Gross Cash Total Net bank loans loans bonds Debt Debt % Gross 18.5% 16.1% 61.4% 4.0% 100.0% financial debt Average cost (%) 2.50% 1.57% 2.10% 0.90% 2.04%(1) % interest rate hedged
Slide 17: Capital structure | Debt maturity profile
Capital structure | Debt maturity profile 1,820 1,820 720 (€ million) 1,077 720 (€ million) 17 867 1,077 716 17 17 776 867 16 776 176 716 17 850 1,100 16 176 850 1,100 700 850 15 600 700 850 8 7 13 15 14 210 600 18 7 2 13 14 14 1 2 14 210 2019 2020 2021 2022 2023 2024 2025 2026-2031 2019 2020 2021 2
Slide 18: Capital structure | Key metrics
Capital structure | Key metrics Unsecured senior notes covenants 6M 2019 LTV 41.0% ICR(1) 3.9x Average debt maturity (years) 6.0 Unsecured debt 81.5% Liquidity position(2) € 706m Rating Outlook BBB Positive Baa2 Stable LTM NOI / LTM finance cost (1) Cash position + undrawns RCF (2) 18
Slide 19: Reclassification
OPENING REMARKS R E C L A S S I F I C AT I O N C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 20: Reclassification of Tree and Caprabo portfolio into net leases
Reclassification TREE AND CAPRABO PORTFOLIO WILL BE RECLASSIFIED WITHIN A NEW NET LEASES CATEGORY Before Reclassification of assets After 3% From To 3% 10% 10% 46% Tree 47% Net leases 19% Caprabo 16% % GRI % GRI Plz. Cubos Offices High Street 22% Retail 24% (HSR) Locales Torre Madrid Other Locales P
Slide 21: Appendix
OPENING REMARKS APPENDIX C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 22: Appendix: Stock and occupancy breakdown
Appendix STOCK BREAKDOWN 1H19 reported 1H19 restated (sqm) Stock WIP Stock incl. WIP Stock WIP Stock incl. WIP Offices 1,316,129 105,722 1,421,851 1,329,657 105,722 1,435,379 Shopping centers 490,996 120,610 611,606 502,625 120,610 623,235 Logistics 1,086,702 1,075,813 2,162,515 1,086,702 1,075,813
Slide 23: Appendix: GRI and GAV breakdown
Appendix GRI BREAKDOWN (P&L) GRI FY18 GRI 1H19 €’000 reported restated GRI 1H19 reported GRI 1H19 restated Offices 224,395 227,181 120,317 121,757 Shopping centers 103,553 109,851 61,095 64,362 Logistics 50,327 50,327 26,168 26,168 Net leases 106,651 96,721 48,675 43,557 Other 14,781 15,628 6,493 6,
Slide 24: Paseo de la Castellana, 257 28046 Madrid info@merlinprop.com
Paseo de la Castellana, 257 28046 Madrid +34 91 769 19 00 info@merlinprop.com www.merlinproperties.com
Slide 25: Offices: More than a place to work
MORE THAN A P L AC E TO WO R K … OFFICES C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 26: Offices | Market trends: shift in landlord-tenant relationship
Offices | Market trends: a shift in the landlord-tenant relationship FROM MANAGING ASSETS TO MANAGING PEOPLE LANDLORD – TENANT RELATIONSHIP IS CHANGING… Lease contract Landlord Tenant …TOWARDS PROVIDING SERVICES FOR THE BENEFIT OF BOTH TENANTS AND EMPLOYEES Lease contract Labour contract Landlord Te
Slide 27: Offices | More than a place to work
Offices | More than a place to work… MERLIN IS WORKING ON SEVERAL INITIATIVES TO ENLARGE AND ENHANCE SERVICES TO TENANTS, REINFORCING TENANT LOYALTY HUB COMMUNAL SERVICES FLEX SPACE EXHIBITIONS & EVENTS Flex space solution as Additional sources of income Cluster of common services a complement to tr
Slide 28: MERLIN Hub
MERLIN HUB OFFICES C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 29: MERLIN Hub | A shift in portfolio management
MERLIN Hub | A shift in portfolio management MERLIN DOES NO LONGER CONCEIVE ITS ASSETS AS ISOLATED MANAGEMENT UNITS BUT RATHER AN INTEGRATED PORTFOLIO MANAGEMENT TRADITIONAL RELATIONSHIP MERLIN VIEW Integrated management 5
Slide 30: MERLIN Hub | The Hub concept
MERLIN Hub | The Hub concept Spaces Integrated Caring about portfolio end-user management Services 6
Slide 31: MERLIN Hub | Madrid Norte pilot program
MERLIN Hub | Madrid Norte pilot program THE HUB CONCEPT WILL START-OFF WITH MADRID NORTE CONNECTING • 32 buildings • ~ 350,000 sqm(1) • > 40,000 daily users(2) (1) Including WIPs (2) ~ 25,000 employees + ~15,000 visitors 7
Slide 32: MERLIN Hub | The Pillars
MERLIN Hub | The Pillars SUSTAINABILITY AND WELLNESS MOBILITY Certifications Public and private transport improvement • Cluster of common services to tenants to be launched in 4Q19 LED lighting • MERLIN Hub App will be Self-comsumption released in December 2019 • The program will be later New mobili
Slide 33: MERLIN Hub | Sustainability and mobility office
MERLIN Hub | Sustainability and mobility office MERLIN MANAGES THE SUSTAINABILITY AND MOBILITY OF ITS PORTFOLIO, IN CONSTANT INTERACTION WITH OUR TENANTS AND BUILDING USERS MOBILITY URBAN ENERGY COMMUNITY CORE INITIATIVES URBAN FARMS 9
Slide 34: Flex Space
F L E X S PAC E OFFICES C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 35: Flex space | Our approach to flex space
Flex space | Our approach to flex space SPACE CLIENT PROFIT CRITERIA • >1.4x ERV • 10% - 25% • Corporates of an owned at stabilization • Start ups office building • ERV + EBITDA Margin of +20% 80% OWNER OPERATED 8 spaces 19,256 sqm 1,734 desks • Max rent of € 20/sqm/m • Full building in special • St
Slide 36: Flex space | What makes LOOM different?
N U E B C HA MA R T Í N Flex space | What makes LOOM different? “Be Real, Be Brave, Be LOOM” ACCESO Planta Baja: vista desde gradas BEST QUALITY PRICE LOWER DENSITY RATIO IN THE MARKET THAN PEERS CAPILARITY WITH FLEX SPACES LOCATED BREADTH OF PRODUCT IN PRIME CBD, NEW WITH PRICES RANGING BUSINESS AR
Slide 37: Flex space | LOOM portfolio
Flex space | LOOM portfolio LOOM Desks Occupancy Owner operated 1 Princesa 123 85% 3rd Party 2 Eucalipto 146 100% 3 Pozuelo 344 70% 4 Torre Chamartín 126 Opening Mar-20 Madrid 5 Tapices 169 96% 6 Salamanca 270 50% 7 Huertas 180 41% 1,358 Opening Dec-19 8 Glòries 160 (78% booked) 9 WTC 200 Opening De
Slide 38: Flex space | LOOM portfolio: owner operated
Flex space | LOOM portfolio OWNER OPERATED Princesa Eucalipto 1,337 sqm ı 123 desks ı 85% occ 1,672 sqm ı 146 desks ı 100% occ Pozuelo Glòries 4,706 sqm ı 344 desks ı 70% occ 2,429 sqm ı 160 desks ı Opening Dec-19 (78% booked) 14
Slide 39: Flex space | LOOM portfolio: owner operated
Flex space | LOOM portfolio OWNER OPERATED WTC Torre Chamartín 1,436 sqm ı 200 desks ı Opening Dec-19 1,340 sqm ı 126 desks ı Opening Mar-20 Ferreteria Plz. Cataluña 2,017 sqm ı 293 desks ı Opening Dec-20 4,319 sqm ı 342 desks ı Opening Dec-20 15
Slide 40: Flex space | LOOM portfolio: 3rd party
Flex space | LOOM portfolio Tapices Salamanca 3RD PARTY 1,011 sqm ı 169 desks ı 96% occ 1,931 sqm ı 270 desks ı 50% occ Huertas 1,188 sqm ı 180 desks ı 41% occ 16
Slide 41: Flex space | Leveraging MERLIN privileged landlord position
Flex space | Levering on MERLIN privileged landlord position MERLIN HAS EXPANDED SOLUTIONS TO CLIENTS BY OFFERING FLEX, RESULTING IN ASSETS COMBINING TRADITIONAL + FLEX Torre Glòries 17
Slide 42: Flex space | Torre Chamartín
Flex space | Levering on MERLIN privileged landlord position Torre Chamartín 18
Slide 43: Flex space | Eucalipto
Flex space | Levering on MERLIN privileged landlord position Eucalipto 19
Slide 44: Flex space | Princesa
Flex space | Levering on MERLIN privileged landlord position Princesa 20
Slide 45: Flex space | What we can offer to corporates
Flex space | What we can offer to corporates SPACE AS A SERVICE Long-term solutions (2-3 years) eadquarters H epresentative offices R orporate digital C for market prospects nomads Medium-term solutions (1-2 years) pace buffer for peak S eams contracted to T Own-space working periods serve a tempora
Slide 46: Flex space | Clients consuming traditional + flex combined
Flex space | Clients consuming traditional + flex combined Traditional (sqm) Flex (desks) 3,949 sqm 70 desks (Princesa) (LOOM Princesa) 10,380 sqm 55 desks (PE Alvia) (LOOM Pozuelo) 10,619 sqm 32 desks (PE Puerta de las Naciones) (LOOM Eucalipto) 5,189 sqm 146 desks (PE Cerro de los Gamos) (LOOM Poz
Slide 47: Exhibitions & Events
EXHIBITIONS & EVENTS OFFICES C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 48: Exhibitions & Events | Overview
Exhibitions & Events | Overview Devoted to the Dedicated team management To unleash the Delivering a from the exhibition of spaces with value potential differentiated service and hospitality alternative uses of our assets to our clients business within MERLIN’s portfolio 1 ATTRACTIONS Operation of c
Slide 49: Exhibitions & Events | Attractions
Exhibitions & Events | Attractions CREATION OF A WORLD-CLASS OBSERVATORY AT THE TOP OF TORRE GLÒRIES Unique in Barcelona Offering unique views of the city Attracting thousands of visitors Burj Khalifa Tokyo Sky Tree One World Empire State 360° John Eiffel Tower The Shard Rockefeller Center Observato
Slide 50: Exhibitions & Events | The market and potential customers
Exhibitions & Events | Attractions TORRE GLÒRIES IS THE 2ND MOST PHOTOGRAPHED ASSET IN BARCELONA Most visited attractions in Barcelona Who are our competitors?(1) THE MARKET By most recent opening Sagrada Familia Pueblo Español AND POTENTIAL + 4.5 m visits 1.3 m visits Palau Güell (2011) 257,978 vis
Slide 51: Exhibitions & Events | Other venues
Exhibitions & Events | Other venues TORRE GLORIES AUDITORIUM ARENAS DOME ully equipped and refurbished auditorium, F iggest wooden dome in Europe, with a unique B with a capacity for 300 people circular shape, set at 27 meters high and with 2,560 sqm Latest audiovisual technology Maximum capacity: 1
Slide 52: Exhibitions & Events | Other venues rollout
Exhibitions & Events | Other venues MERLIN IS CURRENTLY ROLLING OUT THE EXHIBITIONS AND EVENTS COMPONENTS TO OTHER SUITABLE AREAS WITHIN OUR PORTFOLIO AUDITORIUMS OPEN SPACES VARIOUS LOOM quamarina A Adequa ía Norte Urban Garden V LOOM Salamanca astellana 280 C Marqués de Pombal onumental Cinema M o
Slide 53: MERLIN in Portugal
MERLIN IN PORTUGAL OFFICES C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 54: MERLIN in Portugal | Portfolio composition
MERLIN in Portugal | Portfolio composition MERLIN HAS INCREASED EXPOSURE TO PORTUGAL, A MARKET SHOWING STRONG PERFORMANCE Geographical breakdown 9 % Dual listing to gain visibility Portugal 1 in the local market 91 % 47 Spain % 53 % Spain Portugal By GRI(1) By GRI(1) Continue exploring 2 the possibi
Slide 55: MERLIN in Portugal | Exposure to Portugal
MERLIN in Portugal | Portfolio composition PORTUGAL HAS GAINED RELATIVE WEIGHT IN 2018 Offices Shopping centers Logistics 1 2 3 4 5 10 12 NT ME ISH U RB F RE ER U ND Monumental Marqués Pombal 3 Lisboa Expo Torre Lisboa Central Office Almada Lisbon Park 16,892 sqm 12,460 sqm 6,740 sqm 13,715 sqm 10,3
Slide 56: MERLIN in Portugal | Location: Lisbon
MERLIN in Portugal | Location: Lisbon 32
Slide 57: Paseo de la Castellana, 257 28046 Madrid info@merlinprop.com
Paseo de la Castellana, 257 28046 Madrid +34 91 769 19 00 info@merlinprop.com www.merlinproperties.com
Slide 58: Shopping Centers: It's all about experience
IT’S ALL ABOUT EXPERIENCE SHOPPING CENTERS C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 59: Shopping centers | Overview
Shopping centers | Overview CREATING EXPERIENCES AND EMBRACING TECHNOLOGY TO SATISFY BOTH TENANTS AND CONSUMERS 2
Slide 60: Shopping centers | Design
Shopping centers | Design CONCENTRATING CAPEX ON UPDATING AND REPOSITIONING EXISTING CORE ASSETS TO BETTER ALIGN WITH EVOLVING CONSUMER TASTES LARIOS CENTRO, MÁLAGA Before After PORTO PI, MALLORCA Before After 3
Slide 61: Shopping centers | Design
Shopping centers | Design SALER, VALENCIA Before After TRES AGUAS, MADRID Before After 4
Slide 62: Shopping centers | Design: flagship centers
Shopping centers | Design OUR FLAGSHIP CENTERS ALSO INCLUDE WOW EFFECTS ARENAS, BARCELONA MARINEDA CITY, LA CORUÑA Digital WOW effects Art WOW effects 1st Shopping Center in Spain with a A 3,960 tennis balls sculpture full digital experience to impress our visitors 5
Slide 63: Shopping centers | Design: kids WOW effects
Shopping centers | Design KIDS WOW EFFECTS LARIOS CENTRO, MÁLAGA SALER, VALENCIA New food court anchored by a 1st Shopping Center with a giant kids fish playground huge circular slide 6
Slide 64: Shopping centers | Design
Shopping centers | Design OUR FLAGSHIP PLAN ENHANCES OUR MALLS TO A MUCH MORE FRIENDLY FEEL Creating warm atmospheres The nicest rest areas 7
Slide 65: Shopping centers | Services
Shopping centers | Services A WIDE RANGE OF CUSTOMER SERVICES INCLUDING… PHYSICAL AND DIGITAL CLICK & COLLECT WAYFINDING POINT PROVIDERS NEW GENERATION APP EMBRACING OUR IMPLEMENTED ACROSS SERVICE CULTURE THE PORTFOLIO 8
Slide 66: Shopping centers | Tenant mix
Shopping centers | Tenant mix BRINGING THE BEST IN CLASS TENANTS TO OUR MALLS MARINEDA CITY, LA CORUÑA LARIOS CENTRO, MÁLAGA ZARA Flagship store, one of the fewest Primark Flagship store, largest shop in the world with click&collect automatic silo in a shopping center in Spain 9
Slide 67: Shopping centers | Tenant mix
Shopping centers | Tenant mix OUTBREAK OF NEW PLAYERS IN THE MARKET MARINEDA CITY, LA CORUÑA FORUM ALMADA, LISBON Xiaomi concept store, Hawkers concept store, 2nd in a shopping center in Spain 1st store in Portugal 10
Slide 68: Shopping centers | Tenant mix
Shopping centers | Tenant mix CONTINUE TO RE-TENANT MALLS BY ATTRACTING NEWER, MORE DYNAMIC RETAILERS ARTURO SORIA PLAZA, TRES AGUAS, MADRID ARENAS, BARCELONA MADRID Yelmo Cinemas, one of the Metropolitan high-end 1st Goiko Grill to open first in Spain with kids & family fitness center in a Shopping
Slide 69: Shopping centers | Marketing
Shopping centers | Marketing Unique art 1 3 5 exhibitions Music festivals Contemporary • Unplugged Cool sports art in Arturo concerts with events Soria Plaza since local artists 1991 and is now From surf… to street style • Massive concerts present in several with more than locations across 10,000 pe
Slide 70: Paseo de la Castellana, 257 28046 Madrid info@merlinprop.com
Paseo de la Castellana, 257 28046 Madrid +34 91 769 19 00 info@merlinprop.com www.merlinproperties.com
Slide 71: Logistics: From omnichannel to omniclient
FROM OMNICHANNEL TO O M N I C L I E N T LO G I S T I C S C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 72: Supply chain logistics evolution
From omnichannel to omniclient | Supply chain logistics evolution 1970s Suppliers Shops Direct store replacements carried out by suppliers or wholesalers Main national Retail distribution Shops 1980s suppliers centers Centralized delivery through retail distribution centers International Imports dis
Slide 73: Supply chain logistics evolution: whole value chain
From omnichannel to omniclient | Supply chain logistics evolution MERLIN IS THE ONLY LOGISTIC PLAYER COVERING THE WHOLE VALUE CHAIN 2000s Distribution networks shifted by the e-commerce 3rd Isochrone 1st & 2nd Isochrone Last-mile logistics E-fulfillment Packaging Classification center Delivery Retur
Slide 74: From omnichannel...
From omnichannel to omniclient | From omnichannel... THE ABILITY TO INTEGRATE PHYSYCAL AND DIGITAL CHANNELS IS BECOMING KEY TO SURVIVE TO THE CURRENT COMPETITIVE LANDSCAPE OFFLINE OMNICHANNEL ONLINE hysical and digital P Customers are The integration channels are no demanding between offline longer
Slide 75: ... to omniclient
From omnichannel to omniclient | … to omniclient MERLIN HAS BECOME THE “TOP OF MIND” SOLUTION PROVIDER FOR OMNICHANNEL CUSTOMERS MERLIN RETAIL FOOTPRINT MERLIN LOGISTICS FOOTPRINT #1 player #1 player > 600k sqm ca. 3m sqm > 110 million pax annual footfall ERLIN Properties is the only M ERLIN has bec
Slide 76: Omniclients in our portfolio
From omnichannel to omniclient | Omniclients in our portfolio CUSTOMER OFFLINE/RETAIL ONLINE / LOGISTICS RATIONALE Initially a pure offline customer e have developed W on-line solutions (inc. Click&Collect) in Seville and Barcelona he online delivery is T 10 SHOPPING 26,593 SQM GLA 3 WAREHOUSES 29,7
Slide 77: Omniclients in our portfolio
From omnichannel to omniclient | Omniclients in our portfolio CUSTOMER OFFLINE/RETAIL ONLINE / LOGISTICS RATIONALE xploring retail growth E opportunities we ended up studying their online necessities in Madrid e tailor-made our W warehouse in Pinto into their main hub in Spain 1 SHOPPING 3,880 SQM G
Slide 78: Omniclients in our portfolio
From omnichannel to omniclient | Omniclients in our portfolio CUSTOMER OFFLINE/RETAIL ONLINE / LOGISTICS RATIONALE ercadona will cover M the distribution of all of its frozen products from Getafe-Gavilanes 3 SHOPPING 7,713 SQM GLA 1 WAREHOUSE 19,231 SQM GLA CENTERS urrently our tenant C in 33(1) sup
Slide 79: Omniclients in our portfolio
From omnichannel to omniclient | Omniclients in our portfolio CUSTOMER OFFLINE/RETAIL ONLINE / LOGISTICS RATIONALE onversations held C during Marineda’s renewal provided us with the opportunity to offer them their new platform for Southern Europe 2 SHOPPING 11,313 SQM GLA(1) 2 WAREHOUSES 126,187 SQM
Slide 80: Ahead of our clients' needs
From omnichannel to omniclient | Ahead of our clients’ needs MERLIN OFFERS A UNIQUE VALUE PROPOSITION AND UNMATCHED BENEFITS TO OUR CUSTOMERS DEMAND PLANNING SUPERIOR FLEXIBILITY AS OUR DEEP RETAIL THANKS TO A AND CUSTOMER WELL ROUNDED KNOWLEDGE ALLOWS OMNICHANNEL US TO ADJUST OUR STRATEGY, PROVIDIN
Slide 81: Logistics Special Projects
SPECIAL PROJECTS LO G I S T I C S C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 82: Last Mile Solutions
1 LO G I S T I C S LAST MILE S P E C I A L P R OJ E C T S S O LU T I O N S
Slide 83: Last mile solutions | A challenging environment
Last mile solutions | A challenging environment THE CURRENT LOGISTICS MODEL PRESENTS NOTEWORTHY LIMITATIONS E-COMMERCE POLLUTED EXPONENTIAL AND OVERCROWDED GROWTH URBAN AREAS ACCESS RESTRAINTS DUE TO INCREASING DELIVERY ENVIRONMENTAL COSTS AND CUSTOMER CONCERNS ARE DISSATISFACTION EXTENDING THE LEAD
Slide 84: Last mile solutions | MERLIN model
Last mile solutions | MERLIN model OUR MODEL CENTRALIZES THE LAST MILE LOGISTICS AROUND PARKING AREAS LOCATED INSIDE THE CITY MERLIN TRADITIONAL LOGISTICS MERLIN LAST MILE SOLUTION E-COMMERCE CUSTOMERS XXL CROSS DOCK MERLIN LAST WAREHOUSE WAREHOUSE MILE CENTER 3RD 1ST & 2ND ISOCHRONE ISOCHRONE RETUR
Slide 85: Last mile solutions | MERLIN model
EHOURS HOURS AYTIME HOURS NIGHT-TIME NIGHT-TIME HOURS NIGHT-TIME HOURSHOURS DAYTIME HOURS DAYTIME DAYTIME HOURSHOURS Last mile solutions | MERLIN model DAYTIME HOURS NIGHT-TIME HOURS DAYTIME HOURS LOGISTICS LOGISTICS LOGISTICS ELECTRIC DELIVERY ELECTRIC ELECTRIC VEHICLE DELIVERY DELIVERY VEHICLE VEH
Slide 86: Last mile solutions | Differences vs traditional logistics
Last mile solutions | Differences vs the traditional logistics COMPARED TO TRADITIONAL LOGISTICS LAST MILE SOLUTIONS OPTIMIZE THE DELIVERY AND REDUCE THE POLLUTION CURRENT LAST MILE SOLUTIONS MERLIN LAST MILE SOLUTIONS PROPOSAL ALCOBENDAS ALCOBENDAS SAN FERNANDO DE HENARES BARAJAS BARAJAS TORREJÓN D
Slide 87: Last mile solutions | Pilots
Last mile solutions | Pilots MARÍA DE PORTUGAL Operator ADEQUA Operator 17
Slide 88: Last mile solutions | Our model advantages
Last mile solutions | Our model advantages MERLIN´S PROPOSAL ENABLES OPERATORS TO JUGGLE LOGISTICS AND URBAN LIFE WHILE ACHIEVING SUBSTANTIAL COST REDUCTIONS OFFER THE OPERATORS THE LARGEST DISTRIBUTION ENABLES THE URBAN NETWORK OPERATORS TO AVAILABLE ON THE CIRCUMNAVIGATE IBERIAN PENINSULA, CURRENT
Slide 89: Photovoltaic Project
2 LO G I S T I C S P H OTOVO LTA I C S P E C I A L P R OJ E C T S P R OJ E C T
Slide 90: Photovoltaic project
Photovoltaic project SOLAR INSTALLATIONS WILL IMPROVE THE LOGISTICS PORTFOLIO WHILE REDUCING POLLUTION TENANT LOYALTY ENERGY TRANSITION IMPROVEMENT OF ASSETS • MERLIN gains a unique competitive • Unique opportunity to lead the energy • Logistics assets with solar installations advantage to retain an
Slide 91: Photovoltaic project: up to €4.5M annual income
Photovoltaic project ASSUMING FULL IMPLEMENTATION, SOLAR INSTALLATIONS COULD BRING UP TO € 4.5M IN ANNUAL INCOME(1) Total CAPEX € 45M Ready to install Capacity Income EXISTING ~80% ~35 MW (1.2-1.3m sqm) +€ 4.5M annual 100% ~ 40 MW income WIP (1.4-1.5m sqm) Note: including Zal Port (1) The pace of im
Slide 92: Photovoltaic project | Pilot
Photovoltaic project | Pilot 605 kWp Pilot project in Madrid-Meco I CAPACITY 261,740 CO2 emissions avoided ESTIMATED (kg/year)… ANNUAL … the equivalent of Photovoltaic installation prepared for self-consumption PRODUCTION 5,355 trees/year with spare electricity exported 892,401 kWh to the grid Desti
Slide 93: Paseo de la Castellana, 257 28046 Madrid info@merlinprop.com
Paseo de la Castellana, 257 28046 Madrid +34 91 769 19 00 info@merlinprop.com www.merlinproperties.com
Slide 94: Proptech and Technology
PROPTECH A N D T E C H N O LO GY C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 95: Proptech Program
1 PROPTECH PROPTECH A N D T E C H N O LO GY PROGRAM
Slide 96: Proptech program | Why we are interested in Proptech
Proptech program | Why we are interested in Proptech engagement THERE ARE SEVERAL GLOBAL PROPTECH TRENDS THAT WILL RESHAPE THE INDUSTRY COMMERCIAL Consumerization Transportation Space utilization CAPITAL Online marketplaces MARKETS DIRECT REAL ESTATE THEMES Data & analytics Smart buildings Construct
Slide 97: Proptech program | MERLIN actions
Proptech program | MERLIN actions MERLIN PROPTECH ENGAGEMENT MENTORS AND SPONSORS STARTUPS THAT COULD REINFORCE MERLIN’S COMPETITIVE ADVANTAGE MENTORING Successful initiatives SPONSORING will be rolled out MERLIN has held MERLIN has invested the first Proptech to our portfolio to in Fifth Wall, Chal
Slide 98: Proptech program | Mentoring
Proptech program | Mentoring MERLIN Properties The program allowed teamed up with ISDI and us to identify Proptech the award-winning IMPACT opportunities. Promising Accelerator to discover startup technology has cutting-edge technology already been implemented to solve commercial RE in MERLIN’s port
Slide 99: Proptech program | Sponsoring
Proptech program | Sponsoring MERLIN HAS INVESTED IN FIFTH WALL, A VENTURE CAPITAL FUND SPECIALIZED IN REAL ESTATE Description With over $1 billion AuM(1) and more than 50 corporate strategic investors, Fifth Wall has assembled the largest consortium of real estate ESTABLISHED owners to invest in cu
Slide 100: MERLIN Initiatives
2 PROPTECH MERLIN A N D T E C H N O LO GY I N I T I AT I V E S
Slide 101: Sensorisation and Dynamic BMS
MERLIN initiatives | Sensorisation and Dynamic BMS TECHNOLOGICAL INVESTMENTS WILL IMPROVE THE SERVICE LEVEL AND USER EXPERIENCE INFRASTRUCTURE SENSORISATION ELEMENTS BIG DATA ANALYSIS • Communication network • Dynamic BMS •R eading and interpretation software • Data centers • IoT • Online management
Slide 102: Sensorisation: offices
MERLIN initiatives | Sensorisation: offices INTEGRATED The sensors will allow us to collect all kid of signals from our buildings SENSORISATION (temperature, movement, number of users, geolocation, humidity, light…) SYSTEM CUSTOMER The analysis of the information gathered will allow us to improve EX
Slide 103: Sensorisation: offices, LOOM Salamanca
MERLIN initiatives | Sensorisation: offices MERLIN HAS INSTALLED CUTTING EDGE LIGHTING AND SENSORISATION SYSTEMS IN LOOM SALAMANCA Dynalite control system Tunable White LIFI wireless system DMX regulation (color) Interact Office Wireless (Dali) It utilizes different Internet connection egulation and
Slide 104: Sensorisation: shopping centers
MERLIN initiatives | Sensorisation: shopping centers SENSORISED SHOPPING CENTERS (E.G SMART WI-FI, SC APP) AND BIG DATA ANALYTICS WILL ALLOW FOR BETTER CUSTOMER KNOWLEDGE Key parameters Data segmentation Outdoors Provenance analysis: • Penetration rate • By time band monitoring of the main • Visit f
Slide 105: Dynamic BMS
MERLIN initiatives | Dynamic BMS AN ADVANCED BMS WILL ALLOW US TO ESTABLISH AN EFFICIENT AND CENTRALIZED PORTFOLIO MANAGEMENT CENTRALIZED MANAGEMENT ADVANCED SOFTWARE SPOT OPTIMIZATION OPPORTUNITIES FROM A SINGLE CONTROL POINT pen access, open support, O implifies the management S Identifies ineffic
Slide 106: Tenant engagement app
MERLIN initiatives | Tenant engagement app MERLIN HAS TEAMED UP WITH DISTRICT TO CREATE A TENANT ENGAGEMENT APP Highlights User interfaces he app will fully T ilot program under P MERLIN App LOOM App digitalize tenant development to be Customized by asset Customized by space interactions, improving
Slide 107: Tenant engagement app
MERLIN initiatives | Tenant engagement app CUSTOMERS WILL INTERACT WITH THE BUILDING DIGITALLY Core functionalities Home page (news and events) Building information page Help desk Push notifications Space bookings Concierge (services & discounts) Foods & drinks information Directories (community & u
Slide 108: ESG
ESG C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
Slide 109: ESG achievements
ESG | ESG achievements MERLIN HAS ACHIEVED A REMARKABLE PROGRESS IN ESG ESG Benchmarks Certifications MERLIN has obtained Accesibility Efficiency an excellent mark in the 2019 edition 82% 71% 72% 62% 100%(1) Target 99% 100% 97% Actual 66% 64% 66% MERLIN European Global Our average average peers Shop
Slide 110: ESG achievements: certifications
BREEAM BREEAM €€6.2bn 6.2bn LEED LEED 43,6% 43,6% 56,4% 56,4% ESG | ESG achievements 66% 66% 64% 64% BREEAM € 6.2bn LEED 43,6% 56,4% Offices 40% 40% 36% 36% Breeam BREEAM BREEAM Leed LEED LEED 66% 64% Platinum Platinum 6%6% 40% 2016 2016 2019H1 2019H1 36% > 760k sqm 2016 2016 2019H1 2019H1 BREEAM Ve
Slide 111: ESG | Environmental
ESG | Environmental LARGEST SUSTAINABILITY-LINKED FINANCING TO DATE IN THE EUROPEAN RE SECTOR # Largest in the European KPI’s Real Estate sector to date # Second largest 1 Continuous investment in 2 xternal LEED/ E BREEAM energy ever in Spain across all industries energy efficiency certifications ac
Slide 112: ESG | Environmental: European Investment Bank funding
ESG | Environmental EUROPEAN INVESTMENT BANK FUNDING Projects funded € 115m logistics loan funded by the AZUQUECA II AZUQUECA III European Investment Bank € 51m € 64m Tranche I Tranche II SESEÑA CABANILLAS PARK II Advantageous terms 10 years loan Assets exceeding 400,000 sqm Fixed or variable rates
Slide 113: ESG | Environmental: urban farm initiative
ESG | Environmental MERLIN HAS DEVELOPED AN INNOVATIVE URBAN FARM INITIATIVE WITH A SPANISH LEADING NON-PROFIT ORGANIZATION SCOPE ADVANTAGES 1 Urban farms in Business parks •F acilitate the integration of handicapped people(1) to the labor market, through a partnership with Juan XXIII Roncalli found
Slide 114: ESG | Environmental: two urban farms installed
ESG | Environmental TWO URBAN FARMS HAVE ALREADY BEEN INSTALLED AVENIDA EUROPA URBAN FARM VIA NORTE URBAN FARM 120 sqm 600 Kg/year 20 sqm 112 Kg/year EXTENSION PRODUCTION EXTENSION PRODUCTION Companies embracing the initiative 21
Slide 115: ESG | Social
ESG | Social MERLIN COLLABORATES WITH FOUNDATIONS AND NGO’S AS PART OF ITS CORPORATE SOCIAL RESPONSIBILITY 0.1% of the yearly GRI to support Promotion of the affordable Program our social agenda education 2018 development Direct contribution 2x • Employee contribution • Volunteering hours 220,000 €
Slide 116: ESG | Governance
ESG | Governance MERLIN´S CORPORATE GOVERNANCE MAIN FEATURES Lead Independence Director Director Gender Director Independent Mandate Remuneration Diversity Dedication Director • 67% independent • Two years. This • Independent • Female directors •T he directors of • Lead members in the ensures a good
Slide 117: Capital Markets Day
C A P I TA L M A R K E T S DAY 2 0 1 9 MADRID, OCTOBER 2019
MERLIN Properties SOCIMI — Investor Day (October 2019) on 6ix