Merlin Properties Socimi, S.a. · BME:MRL
Merlin Properties Socimi — FY2024 Earnings Presentation
41 slides from Merlin Properties Socimi's earnings presentation, Feb 28, 2025
Slide 1: FY24 Results Presentation
FY24 RESULTS PRESENTATION 28 FEBRUARY 2025
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: Agenda
C TE □ FY24 Financial results EO EN M LE □ Offices C EL A □ Logistics M IS □ Shopping centers TO O EC AN R IR LL □ Valuation and debt position E R A D ÉS □ Value creation IN □ Digital Infrastructure Plan TO AS R EC IV IR R □ Closing remarks & Outlook D CO IS C N A FR
Slide 4: Key highlights
Key highlights OPERATING FINANCIAL VALUE PERFORMANCE PERFORMANCE CREATION • Strong operating momentum, with • Solid FFO generation (+9.4% YoY) • € 73.0m in non-core divestments. satisfactory rental growth (+3.4% LfL) • Valuations have remained broadly € 53.0m already signed, to be executed combined
Slide 5: FY24 Financial results
FY24 FINANCIAL RESULTS Be i. a. 73 ‘uw s
Slide 6: FY24 Financial results: FFO of €0.55 per share
FY24 Financial results FFO OF € 0.55 PER SHARE (€ million) FY24 FY23 YoY Gross rents 500.4 475.6 5.2% Gross rents after incentives 470.6 447.2 5.2% Net rents(1) 418.1 403.7 3.6% EBITDA(2) 379.2 367.0 3.3% Margin 75.8% 77.2% FFO(3) 310.8 284.2 9.4% Margin 62.1% 59.8% AFFO 291.3 263.4 10.6% IFRS net p
Slide 7: GRI bridge: strong operating momentum
FY24 Financial results | GRI bridge STRONG OPERATING MOMENTUM, WITH GOOD RENTAL GROWTH (+3.4% LfL) (€m) +3.9% Offices LfL (1) +3.4% +2.8% Logistics +2.7% Shopping centers 475.6 +15.3 +9.5 500.4 FY23 Like-for-Like Balance acquisitions, FY24 growth disposals & other 7 (1) Portfolio in operation for FY
Slide 8: Occupancy and WAULT
FY24 Financial results | Occupancy and WAULT OVERALL OCCUPANCY AT 96.7% (+58 BPS VS FY23), RECORD HIGH OCCUPANCY FOR THE PORTFOLIO 99.4% 96.5% 96.7% Occupancy and WAULT to first break per asset type(1) n.a. +58 bps MERLIN Average 93.7% 99.4% 96.5% 96.7% n.a. MERLIN Average 93.7% 7.8 7.8 3.6 3.2 3.0
Slide 9: Offices
OFFICES
Slide 10: Offices GRI bridge and breakdown
Offices | GRI bridge and breakdown GOOD LFL RENT INCREASE (+3.9%) AND RELEASE SPREAD (+2.3%) DESPITE SOME WEAKNESS IN BARCELONA LfL(1) (€m) +3.9% 268.0 +9.8 +9.9 287.7 FY23 Like-for-Like growth Balance acquisitions, FY24 disposals & other LfL growth by area Occupancy by area FY23 FY24 Madrid +4.2% M
Slide 11: Offices Leasing activity
Offices | Leasing activity Contracted sqm #Renewed contracts Release spread Tenants contracted Madrid 135,730 83 +1.9% Barcelona 27,999 28 +2.7% Lisbon 16,318 4 +4.4% Total 180,047 119 +2.3% 11
Slide 12: Offices Flex space
Offices | Flex space 5 NEWS SPACES OPENED IN THE YEAR (+31% INCREASE OF FOOTPRINT) KPIs 35,152 sqm 3,439 desks 82% occupancy 14 spaces € 470 ADR(1) New openings 2024 New openings 2025 LARGEST CO-WORKING IN SPAIN Plaza Ruiz Picasso 11 (exp.) Plaza Ruiz Picasso 11 Castellana 280 Events area Torre Glór
Slide 13: Supply and demand imbalance in the Madrid office market
Offices | Supply and demand imbalance in the Madrid office market OUT OF FAVOR FOR INVESTORS, THE OFFICE MARKET IN MADRID HAS ADJUSTED REMARKABLY FAST TO HYBRID WORK MODELS AND DENSIFICATION WITH NO MAJOR SHAKEUP DEMAND SUPPLY / FUTURE SUPPLY CURRENT SUPPLY • Job creation in Madrid +2.7% per annum •
Slide 14: Logistics
LOGISTICS ny \
Slide 15: Logistics GRI bridge and breakdown
Logistics | GRI bridge and breakdown VIRTUAL FULL OCCUPANCY COUPLED WITH RENTAL GROWTH RESULTED IN A GOOD LFL GROWTH (+2.8%) LfL(1) (€m) +2.8% 80.3 +2.2 +1.2 83.7 FY23 Like-for-Like growth Balance acquisitions, FY24 disposals & other LfL growth by location Occupancy by area FY23 FY24 Madrid +3.7% Ma
Slide 16: Logistics Leasing activity
Logistics | Leasing activity Contracted sqm #Renewed contracts Release spread Tenants contracted Madrid 69,186 2 - Barcelona 10,645 1 +5.0% Other 24,778 - - Total 104,609 3 +1.4% 16
Slide 17: Logistics ZAL Port
Logistics | ZAL Port STRONG PERFORMANCE Stock 764,925 sqm Third parties stock (ground leases) 162,633 sqm Stock under management 927,558 sqm Contracted sqm Release spread # contracts €m FY24 FY23 YoY 188,063 (0.1%) 38 Gross rents 76.1 74.8 +1.7% Tenants Net rents 75.2 74.5 +1.0% EBITDA 71.9 71.5 +0.
Slide 18: Shopping Centers
SHOPPING CENTERS
Slide 19: Shopping centers GRI bridge and breakdown
Shopping centers | GRI bridge and breakdown STRONG MOMENTUM IN TERMS OF FOOTFALL AND SALES WHILE MAINTAINING HISTORICALLY LOW OCR AT 11.2% LfL(1) (€m) +2.7% 126.3 +3.3 126.8 (2.7) FY23 Like-for-Like growth Balance acquisitions, FY24 disposals & other Footfall evolution Tenant sales evolution OCR evo
Slide 20: Shopping centers: occupancy at record-high levels
Shopping centers | GRI bridge and breakdown OCCUPANCY AT RECORD-HIGH LEVELS (96.5%) Release spread # contracts Tenants All portfolio +3.3% 144 Contracted sqm Total 69,262 20
Slide 21: Valuation and Debt Position
VALUATION AND DEBT POSITION ~
Slide 22: GAV summary
Valuation and debt position | GAV summary VALUE CREATION IN DATA CENTERS (€ 60.3M) HAVE OFFSET THE ADJUSTMENT OF THE REMAINING PORTFOLIO Passing yield 4.9% 5.8% 6.3% - - 5.3% 11,540 10,820 6,488 GAV TOTAL with minority stakes (€ million) Shopping centers Minority stakes 2,014 Data Centers 1,392 Logi
Slide 23: GAV drivers
Valuation and debt position | GAV drivers 21 BPS EXPANSION DURING THE YEAR ACROSS THE PORTFOLIO 16.9% GAV LIKE-FOR-LIKE (0.0%) EVOLUTION(1) MERLIN (0.1%) (0.9%) average(2) (2.4%) Offices Logistics Shopping centers Data Centers +26 +21 bps +20 +19 MERLIN average YIELD (COMPRESSION) / EXPANSION(3) Off
Slide 24: Sound financial structure: rating upgrade
Valuation and debt position | Sound financial structure RATING UPGRADE BY BOTH S&P & MOODY’S 31/12/2024 31/12/2023 Net debt € 3,347m € 4,050m LTV 28.3% 35.0% Average cost (spot) 2.46% (2.55%) 2.38% (2.71%) Fixed rate debt 100% 99.7% Average maturity (years) 4.3 5.1 Liquidity(1) € 2,364m € 1,309m Rat
Slide 25: Sound financial structure: 2025 refinancing
2 600 800 500 400 500 136 600 Valuation and debt position | Sound financial structure 136 25 3 22 2025 REFINANCING 2025 TO BE REPAID 2026 2027 WITH AVAILABLE 2028 CASH2029 2030 2031 2032 >2032 941 (€ million) Unsecured loans Unsecured bonds Secured bank loans 941 871 Secured bank loans 727 71 711 30
Slide 26: Value Creation
ra VALUE CREATION
Slide 27: Investments & divestments
Value creation | Investments & divestments Investments • Consolidating 100% ownership in Plaza Ruiz • DC Landbank: Picasso extension (ca. 4,500 sqm) • Bilbao - Arasur DC • Purchase options in Navalmoral de la Mata & Valdecaballeros Bilbao - Arasur DC • Madrid-North Madrid-North Plaza Ruiz Picasso Na
Slide 28: Logistics roll-out: committed pipeline
Value creation | Logistics roll-out: commercialization & pending capex | WIP 340k sqm Committed pipeline To be delivered by Vitoria-Jundiz 73k sqm (refurbishment) 1H26 Total remaining Cabanillas Park II 58k sqm investment € 171m San Fernando III 43k sqm Expected stabilized GRI Lisboa Park(2) 135k sq
Slide 29: Logistics roll-out: landbank
Value creation | Logistics roll-out: commercialization & pending capex | Landbank 244k sqm Non-committed pipeline Pending Capex € 121m Cabanillas Park II 56k sqm Azuqueca III 55k sqm San Fernando III 57k sqm Expected stabilized GRI € 13.8m Valencia-Bétera 70k sqm YoC(1) ±7.0% Sevilla Zal 6k sqm YoC
Slide 30: Digital Infrastructure Plan (MEGA)
DIGITAL INFRASTRUCTURE PLAN (MEGA)
Slide 31: Onboarding electrified land at reasonable prices
Digital Infrastructure Plan | Overview - Onboarding electrified land at reasonable prices SECURING THE FUTURE OF PLAN MEGA Bilbao-Arasur 180 MW Bilbao-Arasur Bilbao-Arasur 22 MW 96 MW BCN-PLZF 16MW BCN-PLZF 6 MW (repowering) Madrid-North Madrid-North 130 MW 30 MW Madrid-Getafe Madrid-Getafe Lisboa-V
Slide 32: MEGA Plan Overview
Digital Infrastructure Plan | MEGA Plan Overview Phase I Phase II Upsizing Pipeline Total IT Capacity (MW) 64 203 410 2,130 Stabilization year 2027 2029 Capex (€m) 608 2,106 Stabilized GRI (€m) 88 313 Gross YoC 14.5% 14.2% Funded Madrid MAD01-GET MAD01-GET MAD-NTH MAD-NTH (20 MW) (+7 MW) repowering
Slide 33: Data Center plan Phase I roll-out highlights
Digital Infrastructure Plan | Snapshot of MERLIN’s Data Center plan - Phase I (64 MW): Roll-out highlights ADVANCED NEGOTIATIONS FOR PHASE I LEASES BRING ONE YEAR CLOSER GRI STABILIZATION TO 2027 €m 75 608(1) 152 14.5% >10% Stabilized Stabilized Gross YoC Net YoC(2) 381 ~70% 21.2 MW CAPEX Stabilized
Slide 34: Data Center Phase I overview
Digital Infrastructure Plan | Snapshot of MERLIN’s Data Center plan - Phase I overview DATA CENTER PHASE I DEVELOPED ACROSS THREE SITES, WITH 26MW EQUIPMENT INSTALLED AS OF FY24 % let 100 Barcelona - PLZF Bilbao - Arasur Madrid - Getafe In operation In operation In operation IT capacity 22 MW(1) 22
Slide 35: Data Center plan Phase II roll-out highlights
Digital Infrastructure Plan | Snapshot of MERLIN’s Data Center plan - Phase II (203 MW) roll-out highlights TIME-TO-MARKET IS THE KEY DRIVER FOR PHASE II Fully Construction First rents Powered licensed ongoing expected in 2027 €m 409 55 2,106 886 14.2% >10% Stabilized GRI Stabilized YoC(1) Net YoC C
Slide 36: Phase II overview
Digital Infrastructure Plan | Phase II overview Biggest DC campus in Spain Biggest DC campus in Portugal Madrid - Getafe Bilbao - Arasur Lisbon - VFX In operation Under development Licensed DC development IT capacity 7 MW 96 MW 100 MW (Repowering) Power Granted 10 MW(1) 140 MW 250 MW • BIO-ARA02: 70
Slide 37: Phase III overview - Upsizing (410 MW)
Digital Infrastructure Plan | Phase III overview - Upsizing (410 MW) Lisbon-DC Bilbao - Arasur Madrid-North 80 MW repowering (Ongoing redensification of buildings) 30 MW IT 180 MW extension + in adjacent landplot Power sourced & granted 120 MW extension in adjacent landplot TOTAL 200 MW 37
Slide 38: Phase IV overview - Pipeline (2.1 GW)
Digital Infrastructure Plan | Phase IV overview - Pipeline (2.1 GW) • Navalmoral de la Mata • Extremadura • Access to the dark • Focused on • Our ultra-efficient and Valdecaballeros produces fiber networks generative AI and technology reduces stand out for their approximately six coming from Lisbon
Slide 39: Closing Remarks & Outlook
CLOSING REMARKS & OUTLOOK
Slide 40: Closing remarks & Outlook
Closing remarks & Outlook OPERATIONS VALUE CREATION OUTLOOK • MERLIN has delivered strong • Logistics: efforts are focused on the • 2025 will be a year focused on performance in all key financial development portfolio distributed the development of Data Centers, and operating metrics (LfL rental amo
Slide 41: Contact
Paseo de la Castellana, 257 28046 Madrid +34 91 769 19 00 info@merlinprop.com www.merlinproperties.com
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