Merlin Properties Socimi, S.a. · BME:MRL
Merlin Properties Socimi — 9M 2016 Earnings Presentation
31 slides from Merlin Properties Socimi's earnings presentation, Nov 15, 2016
Slide 1: 9M 2016 Results Presentation
9M 2016 RESULTS PRESENTATION 15 NOVEMBER 2016
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by MERLIN Company and may have not been audited or reviewed THIS PRESENTATION DOES NOT CONSTITUTE OR FORM Properties SOCIMI, S.A. (the “Company”) for informational by the Company’s auditors. Recipients should not PART OF ANY OFFER FOR SALE OR SOLICITATI
Slide 3: Presenters and Contents
9M 2016 RESULTS PRESENTATION Presenters Contents Introduction ISMAEL CLEMENTE CEO 9M 16 Financial results Portfolio performance MIGUEL OLLERO CFO / COO Metrovacesa portfolio performance Investment activity DAVID BRUSH CIO Closing remarks
Slide 4: Fast facts
Fast facts GLA GLA GRI(1) ATTRIBUTED GRI(2) 1,899,999 sqm 502,915 sqm € 310.4 m € 322.0 m IN STOCK EXPANSION PROJECTS ANNUALIZED ANNUALIZED 9M16 9M16 9M16 9M16 € 229.5 m € 202.5m € 148.5 m € 124.1 m GROSS RENTS REC. EBITDA REC. FFO(3) EPRA EARNINGS EPRA EPRA EPRA EPRA 5.0% 4.6% € 3,459 m 10.71 GROSS
Slide 5: Financial Results 9M 2016
FINANCIAL RESULTS 9M 2016
Slide 6: Consolidated profit and loss
9M16 Financial results Consolidated profit and loss OUTSTANDING +59% YOY GROWTH IN RECURRING FFO/SHARE (€m) 30/09/16 30/09/15 YoY Gross rents 229.5 139.4 +64.7% Net rents after incentives 210.9 131.0 +61.0% EBITDA 191.1 99.8 +91.5% FFO(1) 137.1(3) 73.4 +86.8% Recurring EBITDA(2) 202.5 119.6 +69.3% R
Slide 7: Bridge gross rents to FFO
9M16 Financial results Bridge gross rents to FFO EXCELLENT OPERATING EFFICIENCY (92% GROSS-TO-NET & 88% RECURRING EBITDA MARGIN) (€ million) 229.5 (13.3) 7.1 216.2 (5.3) 210.9 (15.5) (11.4) (54.0) 191.1 137.1 nt s ex es es es e g g A ts O re os m in in D FF en iv iv tiv op s rr rr IT co r nt nt G ym
Slide 8: EPRA Metrics
9M16 Financial results EPRA Metrics EPRA NAV PER SHARE GROWS € 0.11 IN THE QUARTER TO REACH € 10.71 9M 2016 1H 2016 €m Per share €m Per share EPRA NAV 3,458.7 € 10.71 3,423.2 € 10.60 EPRA NNNAV 3,075.4 € 9.52 3,045.7 € 9.45 Adjusted EPRA NAV 3,380.5 € 10.46 3,344.9 € 10.35 EPRA NAV MVC PRO-FORMA(3)
Slide 9: Pro-forma debt summary
9M16 Financial results Pro-forma(1) debt summary STRONG CREDIT PROFILE WITH 75% OF DEBT UNSECURED (INCLUDES MVC) (€ million) L/T S/T TOTAL Unsecured bank loans 1,220.0 0.0 1,220.0 Mortgage bank loans 1,128.0 10.7 1,138.7 Mortgage non-bank loans 133.6 0.0 133.6 Unsecured bonds 2,350.0 0.0 2,350.0 Lea
Slide 10: Pro-forma debt schedule and metrics
82 837 914 809 721 64 82 914 837 809 9 721 64 21 9M16 Financial results 837 Pro-forma 809 debt schedule and9metrics (1) 721 64 21 9 21 FLOATING RATE EXPOSURE 137 REDUCED 86 TO A MINIMUM 158 5 23 17 1,220 700 850 800 137 158 86 Pro-forma17 2016 (1) 2017 1,220 debt schedule 2018 700 2019 158 850 2020
Slide 11: Total shareholders return
9M16 Financial results Total shareholders return HIGH RETURN TO SHAREHOLDERS IN THE PERIOD € per share TSR = +9.8% 0.86 10.71 0.11 10.82 9.85 EPRA NAV NAVgrowth EPRA NAV DPS TSR Dec-15 9M16 Sep-16 Apr-16 Sep-16 Source: Company ı 11 ı
Slide 12: Portfolio Performance
PORTFOLIO PERFORMANCE ı 12 ı
Slide 13: Yields, occupancy and WAULT
Portfolio performance 9M 16 Yields, occupancy and WAULT OCCUPANCY SHOWING ROBUSTNESS EPRA Gross Yield per asset type(1) 6.8% 5.4% 5.6% 5.6% 4.9 % 5.0% MERLIN 4.8% 3.8% Average Office Shopping Logistics High Hotels Residential Other centers(2) street retail Occupancy and WAULT per asset type(2) 100%
Slide 14: Leasing activity
Portfolio performance 9M 16 Leasing activity RECORD PERIOD IN LETTING ACTIVITY WITH 469K SQM CONTRACTED Offices Shopping Logistics Logistics Minority centers stock pre-let stakes 147,534 93,350 66,040 59,918 24,663 25,659 18,613 16,551 16,790 (2,685) (1,903) (3,325) (18,693) (21,938) (27,347) 71% re
Slide 15: Leasing clients
Portfolio performance 9M 16 Leasing clients ATTRACTING LEADING CLIENTS Office Renewal Renewal Renewal In 6,352 sqm 5,644 sqm 1,897 sqm 1,012 sqm Avenida Atica 2 Avenida Juan Esplandiú 11-13 de Bruselas 24 de Bruselas 24 Shopping centers In Renewal Renewal In 991 sqm 553 sqm 352 sqm 200 sqm Porto Pi
Slide 16: LfL rental growth
Portfolio performance LfL Rental growth REAL, POSITIVE LFL RENTAL GROWTH ACROSS THE BOARD Commercial annualized LfL rent evolution (passing 30/09/16 vs. passing 31/12/15) Like for like (€ thousand) % LfL % LfL % # Rent effect same Renewed Leases Change Occupancy CPI Rent in total space Office 15% 54
Slide 17: Shopping centers evolution
Portfolio performance Shopping centers evolution RETAIL METRICS WITH STRONG PERFORMANCE LTM Footfall LTM Footfall LTM Sales LTM Sales (million) evolution (million)(1) evolution(1) Marineda 16.7 +3.8% 165.3 +3.9% 9.3 +15.1% 86.0 +1.7% Porto Pi 11.2 +6.4% 58.6 +5.4% Larios 6.9 +4.2% 45.0 +0.7% Centro
Slide 18: Metrovacesa Portfolio Performance
METROVACESA PORTFOLIO PERFORMANCE ı 18 ı
Slide 19: Yields, occupancy and WAULT
Metrovacesa portfolio performance 9M 16 Yields, occupancy and WAULT POTENTIAL TO INCREASE SUBOPTIMAL OCCUPANCY AND SHORT WAULT EPRA Gross Yield per asset type(1) 6.4% 4.5% 4.8% 4.1 % MVC Average 2.7% Office Shopping Hotels Other centers(2) Occupancy and WAULT per asset type(2) 100% 82% 77% 83% 5.0 M
Slide 20: Occupancy evolution since acquisition
Metrovacesa portfolio performance Portfolio performance – Occupancy evolution STRONG INCREASE IN OCCUPANCY SINCE ACQUISITION Offices Shopping centers (w and w/o Opción) 82% 78% 77%/86% 75 85 %/ % At acquisition 30/09/2016 At acquisition 30/09/2016 ı 20 ı
Slide 21: Leasing clients
Metrovacesa portfolio performance 9M 16 Leasing clients ATTRACTING LEADING CLIENTS Office Renewal Renewal Renewal In 10,619 sqm 2,533 sqm 1,633 sqm 844 sqm PE Puerta PE Cerro PE Atica XIX PE Cerro de las Naciones de los Gamos de los Gamos Shopping centers Renewal In In In 10,007 sqm 316 sqm 258 sqm
Slide 22: Investment Activity
INVESTMENT ACTIVITY ı 22 ı
Slide 23: Adequa business park
Investment activity Adequa LARGE CLASS A BUSINESS PARK WITH THE CLOSEST LOCATION TO MADRID CBD DESCRIPTION KEY METRICS Arroyo de la Vega • Best located business park within the A-1 corridor, one the most consolidated 100% A-1 Ownership office markets in Madrid, benefiting from Telefónica HQ an excel
Slide 24: Adequa buildings
Investment activity Adequa 4 CLASS A OFFICE BUILDINGS / 2 BUILDINGS FOR FUTURE DEVELOPMENT / 1 SERVICE BUILDING Building 1 27,399 sqm Renault Building 6 Renault 13,789 sqm Building 5 13,790 sqm Renault Building 7 (Projected) 29,095 sqm Building 4 Building 2 (Projected) 5,013 sqm Building 3 14,790 sq
Slide 25: Adequa Overview
Investment activity Adequa OVERVIEW ı 25 ı
Slide 26: Adequa Overview
Investment activity Adequa OVERVIEW ı 26 ı
Slide 27: Arturo Soria Plaza
Investment activity Arturo Soria Plaza ACHIEVED FULL OWNERSHIP OF A LANDMARK URBAN SHOPPING CENTER DESCRIPTION KEY METRICS • Prime urban shopping center in Arturo Soria (East of Madrid) in a high-end 100% Ownership residential area. Excellent connections to the A2 and the M30/M40 highways. Freehold
Slide 28: Ática V office building
Investment activity Ática V office building CONSOLIDATION IN ATICA BUSINESS PARK DESCRIPTION KEY METRICS • Ofice building located in the Ática Business Park in Pozuelo de Alarcón 100% Ownership Atica XIX (Madrid), where MERLIN now owns Business Park 6 of the 7 buildings in the park. Freehold Title •
Slide 29: Closing Remarks
CLOSING REMARKS ı 29 ı
Slide 30: Closing remarks
Closing remarks • +59.4% Rec. FFO per share • +45.4% EPRA EPS EXCELLENT SET • Total shareholders return of 9.8% in the 9M 16 period OF RESULTS • Robust financial pro-forma(1) position: maturities extended and floating interest exposure reduced to a minimum HIGH QUALITY • Great performance across the
Slide 31: Contact
Paseo de la castellana, 42 28046 MADRID +34 91 787 55 30 info@merlinprop.com www.merlinproperties.com
MERLIN Properties SOCIMI — 9M 2016 Earnings Presentation on 6ix