Carmila Sa · EURONEXT:CARM
Carmila Sa — FY2024 Earnings Presentation
43 slides from Carmila Sa's earnings presentation, Feb 11, 2025
Slide 1: Carmila 2024 Annual Results Presentation
Carmila 2024 Annual Results Presentation 1
Slide 2: Building Sustainable Growth, Activity Overview, Financial Performance, Outlook
1 Building Sustainable Growth 2 Activity Overview 3 Financial Performance 4 Outlook and Conclusion 2
Slide 3: 2024: A milestone year for Carmila
2024: A milestone year for Carmila Successful integration of Galimmo Record leasing activity 942 leases (+14% vs. 2023) Sustained growth in net rental income +8.3% (+4.2% like-for-like) Recurring EPS €1.67 (up 2.5% higher than initial guidance, +4.5% vs. 2023) Positive variation of valuations (€6.7b
Slide 4: Track record of growth and diversification since Carmila's creation 10 years ago
Track record of growth and diversification since Carmila’s creation 10 years ago Strong track record of growth since Carmila’s Resilient operating performance creation, with agile portfolio shift throughout the cycle Stable occupancy 2014 2024 96% 96% 96% 96% 96% 96% 97% 97% 97% 77% 74% Portfolio €2
Slide 5: Supportive macro environment coupled with positive momentum in retail
Supportive macro environment coupled with positive momentum in retail Supportive macro environment Positive momentum in retail Inflation on track to return to normalised Retail sales forecast to grow at a rate of 2.4% levels (2.4% in the eurozone at end-24) in the eurozone and 2% in France2 Rates ar
Slide 6: Key positioning of Carmila's shopping centres portfolio
Key positioning of Carmila’s shopping centres portfolio • The right assets for their catchment areas Local leaders in (~30 stores on average) z 86% of sites are local leaders or joint leaders mid-sized cities • • Benefiting from the renaissance of mid-sized cities • Exclusive synergies Carrefour • C
Slide 7: A unique "Building Sustainable Growth" strategy
A unique “Building Sustainable Growth” strategy that makes Carmila the ideal platform for shopping centres Transforming our Capacity to optimise Long-term vision assets to create value capital in a changing environment Pivoting the merchandising mix Asset rotation Mixed use with Carrefour Incubator
Slide 8: Actively pivoting the merchandising mix
Create value Actively pivoting the merchandising mix Pivoting to new concepts Carmila’s merchandising mix vision % of rental income Target retail mix for a Carmila centre 34.4% 2019 2024 Sport 28.0% Health and beauty Culture, gifts 6% (15% target for and leisure 23% healthcare) 21.7% 16% 17.9% 15.5%
Slide 9: New leaders partnering with Carmila to drive their expansion
Create value New leaders partnering with Carmila to drive their expansion Changes in the number of stores from 2019 to 20241 +34 +24 +21 +21 +13 +11 +9 +9 # of units in 2024 38 14 12 18 21 23 104 42 The go-to retail platform for leading brands 1. Including Galimmo in 2024 9
Slide 10: Dynamic capital optimisation
Capital optimisation Dynamic capital optimisation Optimised capital allocation • Close to €300m of disposals since 2021 • Above initial target of €200m • 14 assets • Price in line with book value (NIY at 6.57%) • Latest transaction: Beaurains in December 2024 (€5.6m) Significant value creation with
Slide 11: Galimmo acquisition: perfect opportunity for Carmila
Capital optimisation Galimmo acquisition: perfect opportunity for Carmila Complementary footprint 51 centres – mainly in the North-east of France €724 million gross asset value as of end 2024 13 shopping assets “Shopping” assets “Convenience” assets Nancy, Shop’In Houdemont 11
Slide 12: Galimmo's successful integration creates further potential for adding value
Capital optimisation Galimmo’s successful integration creates further potential for adding value Integration of Creation of Galimmo additional value Starting from 2025 €5m cost synergies in 2025 Increase standards Carmila Financial occupancy 96.7% Success of Galimmo delisting Collection rate 97.0% I
Slide 13: A complete and ambitious CSR strategy
Long-term vision A complete and ambitious CSR strategy Climate Territories Employees Net zero emissions 400 jobs on average per GEI3 of 95/100 Scopes 1 & 2 by 2030 shopping centre CSR indicators in all incentive Reduce energy consumption 40% of local tenants2 plans -40% by 2030 (vs. 2019) 1,916 loca
Slide 14: On track to achieve net zero emissions
Long-term vision On track to achieve net zero emissions Energy consumption reduction -59% energy consumption vs. 2019 100% LED relamping AI driven Building Management €10m of Green Capex per year ~45% Renewable energy ~45% First solar projects in Spain in 2024 10% Offsetting CO2 2024 Reduce Renewabl
Slide 15: A successful year for Carmila's three growth initiatives
Long-term vision A successful year for Carmila’s three growth initiatives Omnichannel €7.5m incubator Contribution to recurring earnings €2.7m Locked-in rent1 + pipeline €1.8m RETAIL Recurring earnings DEVELOPMENT €12m of incremental annual contribution to recurring earnings from new growth initiati
Slide 16: Beating Strategic Plan Targets
Beating Strategic Plan Targets Strategic Plan Targets As of today Growth in recurring EPS of +4.5% at Building Sustainable Growth €1.67 (+2.5% above 2019 level) Dividend at least €1 per share, in cash, Cash dividend of €1.25 per share1 75% payout of recurring earnings +4.2% vs. prior year Optimised
Slide 17: Building Sustainable Growth, Activity Overview, Financial Performance, Outlook
1 Building Sustainable Growth 2 Activity Overview 3 Financial Performance 4 Outlook and Conclusion 17
Slide 18: Solid activity supporting sustainable OCR
Create value Solid activity supporting sustainable OCR Retailer Stable Occupancy sales growth footfall cost ratio % change in the sales of % change in footfall of OCR of Carmila centres Carmila tenants vs. 2023 Carmila centres vs. 2023 at end-2024 1 168 centres +1.5% +0.4% 10.3% 75 centres +3.2% +1.
Slide 19: Record leasing activity
Create value Record leasing activity Carmila is well positioned to capitalise on the latest trends 942 Leases signed Sport & Leisure Health & Beauty 96.7%1 Occupancy rate New food concepts Omnichannel +3.0% Reversion uplift Purchasing power Sustainability 1. Including Galimmo: 96.2% 19
Slide 20: Retailers choose Carmila shopping centres to thrive
Create value Retailers choose Carmila shopping centres to thrive Flagship deployment in our centres 90 new brands in 2024 Clothing & accessories Clothing & accessories Health & beauty Toulouse Montesson Montesson As Cancelas Labège Sports Leisure Culture, gifts & leisure Vitrolles Saran Roanne Renne
Slide 21: Vibrant specialty leasing activity driving innovation in our centres
Create value Vibrant specialty leasing activity driving innovation in our centres Total revenue of Experience Innovation €18.2 million Flotte Japan Geek Merci Handy Like-for-like growth of +7% Efficient and rapid deployment Pioneering in capturing and transforming trends A record year contributing t
Slide 22: Scaling local events to spread global emotions
Create value Scaling local events to spread global emotions Attracting influencers and personalities • Inoxtag • Miss France • Soprano Capitalising on known franchises Leveraging digital marketing Partnering with Carrefour • “Été des Champions” during the Olympic games A locally empowered platform 2
Slide 23: Creating value on agile projects – Rosaleda & Vitrolles
Create value Creating value on agile projects – Rosaleda & Vitrolles Acquired in 2022 (Malaga) Restructuring in 2024/2025 Restructured in 2024 (new Mango flagship) (pharmacy extension, new food park and leisure area, photovoltaic, full refurbishment) Financial occupancy up from 89% to 97% Financial
Slide 24: Long-term potential with mixed-use and major projects
Long-term vision Long-term potential with mixed-use and major projects Major Retail Projects Mixed-Use 2 transformation projects in Montesson Orléans No building work currently Nantes and Sartrouville with underway on 5 major projects Carrefour and Altarea (minority stake) €200m in Capex Toulouse La
Slide 25: Building Sustainable Growth, Activity Overview, Financial Performance, Outlook
1 Building Sustainable Growth 2 Activity Overview 3 Financial Performance 4 Outlook and Conclusion 25
Slide 26: Strong growth at all levels setting new highs
Strong growth at all levels setting new highs €1.67 €371m €6.7bn recurring EPS Net rental income Gross asset value1 (+4.5%) (+8.3%) (+13.0%) +4.2% like for like +0.9% like for like €26.12 38.9% EPRA NTA per share LTV2 (+8.1%) Carmila outperformed the 2024 financial guidance 1. Including Galimmo asse
Slide 27: Delivering sustainable growth in net rental income
Delivering sustainable growth in net rental income Net rental income Total growth and drivers +8.3% +8.3% €m 370.7 Total growth Acquisitions (net of disposals)1 +4.1% First six-month of Galimmo 342.4 contribution Organic growth Strong operating results and contribution of agile +4.2% restructuring I
Slide 28: A strong track record on financial and operating metrics
A strong track record on financial and operating metrics NRI organic growth +4.7% 1 +4.2% +4.2% Predictably high occupancy rate (>96% since 2019) Rent collection at record levels with 97% +1.0% (+50 bps vs. 2023) Positive reversion in 2024 with +3.0% 2020 2021 2022 2023 2024 -1.4% Rent collection (i
Slide 29: Rental growth, cost discipline and limited increase in financing costs
Rental growth, cost discipline and limited increase in financing costs €m 2023 2024 Net rental income 342.4 370.7 Net rental income +8.3% Overhead costs -52.9 -59.8 Equity-accounted +2.9 +2.9 Disciplined management companies of the cost base (0% lfl change) EBITDA 292.4 313.8 Equity-accounted compan
Slide 30: Outperforming 2024 EPS guidance
Outperforming 2024 EPS guidance Recurring Earnings Per Share Total EPS growth and drivers +4.5% Total growth +4.5% Total growth €1.67 €1.63 Galimmo €1.60 +1.5% contribution €1.56 1.24 Organic 1.20 +3.0% growth 2019 2020 2021 2022 2023 2024 2024 Well above initial guidance of €1.63 EPS reaching new h
Slide 31: Increase in portfolio valuation in 2024
Increase in portfolio valuation in 2024 €6.7bn Market value €6.7bn €5.0bn €5.9bn €1.4bn €0.3bn GAV 2023 Organic growth Galimmo contribution GAV 2024 Sustained growth of portfolio valuation at +13% 31
Slide 32: Confidence in portfolio valuation
Confidence in portfolio valuation Net Initial Yield Reasonable assumptions Stable like-for-like portfolio valuation 2020 – 2024 Exit cap rate 6.58% 6.57% 6.7% 6.42% 6.14% Discount rate 5.85% 5.89% 8.2% 5.64% 5.50% 5.42% Net rental CAGR1 1.8% 2017 2018 2019 2020 2021 2022 2023 H1 2024 2024 Stabilisat
Slide 33: Galimmo acquisition driving a strong growth in EPRA NTA per share
Galimmo acquisition driving a strong growth in EPRA NTA per share 2024 Change in EPRA Net Tangible Assets per share EPRA NTA fully diluted 26.12 €26.12 /share 24.17 +8.1% 2023 Share Change in FY 24 dividend Other Galimmo buyback Fair value recurring(100% cash) acquisition earnings (badwill + deferre
Slide 34: Best-in-class balance sheet unlocking opportunities
Best-in-class balance sheet unlocking opportunities Cost of debt and key credit metrics Significant credit headroom BBB rating €2,539m Net debt €694m Cash and liquidity Stable outlook 7.4x Average Net debt / EBITDA Confirmed in October 2024 3.0% Cost of debt 4.5x Interest coverage Success of the gre
Slide 35: Solid balance sheet
Solid balance sheet Debt Maturity Profile1 Liquidity €154m of cash and cash equivalents €m and an undrawn RCF of €540m 550 Average cost of net debt in 2024 3.0% Average remaining maturity: 4.5 years 703 425 Interest rate hedging 400 247 276 Cost of net debt fully hedged in 2025 and 2026 42 50 2025 2
Slide 36: Carmila Capex and investment outlook
Carmila Capex and investment outlook Green Capex Agile restructuring projects €10 million /year, including €50 million /year on agile investment in solar energy restructuring projects As well as €15 million /year +€10 million vs. 2024 in maintenance Capex linked to Galimmo Major projects Next Tower
Slide 37: Building Sustainable Growth, Activity Overview, Financial Performance, Outlook
1 Building Sustainable Growth 2 Activity Overview 3 Financial Performance 4 Outlook and Conclusion 37
Slide 38: Serving our shareholders
Serving our shareholders Dividend €1.25 €1.25 Proposed dividend per share for 20241 €1.20 €1.17 +4.2% Dividend growth vs. 2023 €1.00 75% Payout ratio2 in line with the strategic plan target 2021 2022 2023 2024 A growing cash distribution and an attractive dividend yield 1. Distribution per share in
Slide 39: 2025 guidance
2025 guidance 2025 outlook €1.75 Dividend policy Expected 2025 recurring EPS (+4.8% vs. 2024) 75% payout of recurring earnings, at least €1 per share, in cash Supported by: Share buyback program1 • Positive indexation Launch of a new 2025 share buyback program of €10 million • Strong operating perfo
Slide 40: Q&A session
Q&A session 40
Slide 41: Carmila, the 3rd largest listed operator of shopping centres in Europe
Carmila, the 3rd largest listed operator of shopping centres in Europe 251 sites anchored by Carrefour hypermarkets 75 sites 21% 168 sites 74% €6.7bn (Spain) (France) GAV 5% 8 sites (Italy) Carmila + Galimmo €276 per sq.m. 86%1 of shopping centres 600+ million visitors average rent are leaders or jo
Slide 42: Next Tower ramp-up: potential confirmed, full deployment targeted from 2028
Long-term vision Next Tower ramp-up: potential confirmed, full deployment targeted from 2028 213 Towers in operation in France and Spain €2.7m 5G Tower Annualised rent (secured1 + pipeline) Infrastructure and 5G are two powerful investment trends 2 €34m Activation of Carmila’s regional network Gross
Slide 43: Carmila is well positioned to create value in Spain
Create value Carmila is well positioned to create value in Spain National coverage with strong presence in coastal areas 75 477,500 €1.4bn Centres sq.m. of GLA Gross asset value 21% of total GAV Fan, Mallorca #1 in Spain by number of sites GLA: 38 120 m² Lots: 105 Carmila Assets Pipeline of 19 restr