Merlin Properties Socimi, S.a. · BME:MRL
Merlin Properties Socimi — Non-Deal Roadshow (March 2016)
55 slides from Merlin Properties Socimi's roadshow presentation, March 2016
Slide 1: Company Overview
_ COMPANY OVERVIEW March 2016
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by MERLIN Properties, SOCIMI, S.A. (the Company) for informational use only. The information contained in this presentation does not purport to be comprehensive or to contain all the information that a prospective purchaser of securities of the Company
Slide 3: Index
INDEX MERLIN AT A GLANCE FY15 RESULTS PORTFOLIO PERFORMANCE OUTLOOK APPENDIX
Slide 4: MERLIN at a Glance
MERLIN ATA GLANCE MERLIN OPERTIES
Slide 5: A clearly defined strategy
MERLIN at a glance A clearly defined strategy Company Assets • Focused on high quality commercial • Listed REIT, member of IBEX-35, with a diversified high- real estate (“Core” and “Core Plus”): mainly office yielding asset base of €6.1bn GAV and Market Cap. in assets with support from retail and lo
Slide 6: 18 months of hectic activity
MERLIN at a glance 18 months of hectic activity June 2014 Sep 2015 – Jan 2016 IPO of MERLIN Acquisition of 43 assets Properties with an initial and ZAL port for an market cap. of €1.29bn aggregate amount of €325m July 2014 June 2015 Acquisition of Tree Acquisition of Testa portfolio, consisting of f
Slide 7: Leading Spanish real estate company
MERLIN at a glance Leading Spanish real estate company #1 PLAYER IN OFFICE, HIGH STREET RETAIL AND LOGISTICS #1 #1 Office High street • Capacity to relocate retail tenants within • Negotiation power MERLIN portfolio with tenants • Ability to • Possibility to offer a accommodate the diversity of suit
Slide 8: FY15 Results
FY15 RESULTS SOLID NUMBERS IN A TRANSFORMATIONAL YEAR
Slide 9: Consolidated profit and loss
Consolidated profit and loss FY15 Results (Testa’s results for 2H only) HEADLINE RESULTS REFLECT STRONG GROWTH IN THE PERIOD Consolidated FY 2015 FY 2014 Passing Gross profit and loss rents annualised Gross rents €214.5m € 56.8 m Office € 63.3 m € 3.9 m € 301.7 m(1) High street retail € 91.1 m € 44.
Slide 10: Valuation and balance sheet
FY15 Results Valuation and balance sheet Dec-15 Adjusted Dec-14 Dec-14 Valuation GAV € 6,053 m € 5,389 m(1) € 2,232 m SIGNIFICANT GROWTH IN EPRA NAV € 3,181 m € 2,951 m(2) € 1,355 m GAV AND NAV AFTER EPRA NAV per share € 9.85 € 9.13 € 10.50 INTENSIVE 2015 Adjusted NAV € 2,982 m € 2,751 m € 1,355 m I
Slide 11: Portfolio valuation
FY15 Results Portfolio valuation LFL GAV INCREASE OF 5.1% INCLUDING EFFECT OF NON-CORE LAND (7.8% IF EXCLUDED) LfL Change 31-Dec-15 Asset Category (€ million) 31-Dec-2015 31-Dec-2014 vs 31-Dec-2014 Office € 2,189.6 m € 1,932.4 m 10.0% High Street retail € 1,883.9 m € 1,669.5 m 6.8% Shopping centers
Slide 12: Valuation drivers
FY15 Results Valuation drivers GAV INCREASE MOSTLY DRIVEN BY A PRUDENT YIELD COMPRESSION POTENTIAL FOR FURTHER CAPITAL VALUE GROWTH 31/12/14 GAV bridge to 31/12/15 164 197 (127) 16 17 6,053 374 6,000 3,180 4,000 2,232 2,000 0 GAV GAV Testa MERLIN 2015 MERLIN TESTA Capex Testa 2015 GAV MERLIN MERLIN
Slide 13: Debt summary
FY15 Results Debt summary € 1.7 BN (€ million) Current 31/12/2015 31/12/2014 SUCCESSFULLY Unsecured bank loans € 1,700 m € 350 m €0m REFINANCED Mortgage bank loans € 1,157 m € 2,479 m € 1,010 m ON AN UNSECURED Mortgage non-bank loans € 133 m € 133 m €0m BASIS Leasings € 175 m € 175 m €0m Non-core de
Slide 14: Rating (preliminary)
FY15 Results Rating (preliminary) INVESTMENT GRADE BBB RATING FROM S&P INVESTMENT GRADE HIGHEST RATING STABLE BBB EVER FOR A SPANISH OUTLOOK REAL ESTATE COMPANY THE RATING WILL SUPPORT PLANNED BOND ISSUANCE… €m Planned bond issuance will further Bond issuance extend maturity profile 1,139 877 936 27
Slide 15: Portfolio Performance
PORTFOLIO PERFORMANCE DIVERSIFIED ASSET BASE WITH HIGH YIELD, POSITIVE TAKE-UP AND EMERGING LFL RENTAL GROWTH
Slide 16: Portfolio breakdown
Portfolio performance Breakdown MERLIN HAS ACHIEVED BROADER DIVERSIFICATION IN THE PORTFOLIO… 31/12/2014 31/12/2015 GAV BREAKDOWN PER ASSET TYPE 5% 3% 9% 5% 5% 36% 13% 7% 75% 11% 31% RENTS BREAKDOWN PER ASSET TYPE 5% 4% 6% 12% 7% 37% 14% 69% 13% 32% Source: Company Office High Street Retail Shopping
Slide 17: Yields, occupancy and WAULT
Portfolio performance Yields, occupancy and WAULT ...WHILE MAINTAINING HIGH OCCUPANCY AND WAULT EPRA GROSS YIELD PER ASSET TYPE(1) 7.4% 6.9% 5.9% 5.6% 5.1% 5.1% 4.2% 5.3% MERLIN AVERAGE Office High street retail Shopping centres Logistics Hotels Rented residential Other OCCUPANCY AND WAULT PER ASSET
Slide 18: Leasing activity
Portfolio performance Leasing activity STRONG 110,000 97,568 LEASING 87,169 90,000 ACTIVITY WITH 70,134 376K SQM 70,000 SIGNED: 106K 48,375 (1) 50,000 SQM OF NEW 30,210 CONTRACTS 30,000 16,653 AND 270K SQM 15,188 10,772 12,528 12,285 10,000 RENEWALS 1,414 (10,000) (597) (9,358) (17,250) (17,924) (30
Slide 19: Letting highlights
Portfolio performance Letting highlights MERLIN HAS ATTRACTED TOP TIER TENANTS TBWA \ ESPAÑA Office Renewal In Renewal In 29,115 sqm 16,001 sqm 1,837 sqm 603 sqm Princesa 3 Costa Brava 2–4 Atica I Juan Esplandiu Shopping centres Renewal In Renewal In 7,673 sqm 1,877 sqm 1,209 sqm 579 sqm Marineda Po
Slide 20: LfL rental growth
Portfolio performance Lfl rental growth EMERGING LFL(1) RENTAL GROWTH MAINLY CONCENTRATED IN 2H Commercial LfL Rent Evolution (2014-2015) Office Portfolio: Detailed Analysis € 000’s LfL Rent Occupancy Total 144 Office (373) (971) (1,344) Shopping 319 378 697 centres (517) High 545 - 545 Street retai
Slide 21: Shopping centers evolution
Portfolio performance Shopping centers evolution INCREASING CONSUMER CONFIDENCE DRIVING GOOD SALES AND FOOTFALL GROWTH (+7% FOOTFALL / +10% SALES) 130 110 90 70 50 30 Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016 2015 Footfall 2015 Footfall (million) 2015 Sales (million) 2015 Sales vs 2014 v
Slide 22: Lease maturity profile
Portfolio performance Lease maturity profile BALANCED MATURITY PROFILE SUPPORTS CASH FLOW PREDICTABILITY 97% 40% 37% 35% 33% 33% 25% 23% 23% 19% 19% 13% 13% 13% 12% 11% 11% 9% 8% 8% 7% 4% 4% 2% 1% 2016 2017 2018 2019 2020 >2020 Office Shopping centres Logistics High Street retail Hotels 21
Slide 23: Outlook
OUTLOOK
Slide 24: Our Market
OUR MARKET
Slide 25: Outlook: our market
Outlook OUR MARKET 1 MACRO- 2 HEADLINE RENTS 3 VERY SCARCE 4 YIELDS HAVE ECONOMIC STARTING TO NEW SUPPLY ALREADY MOMENTUM GROW COMPRESSED IN IN IBERIA IN OFFICE, LINE WITH CONTINUES TO LOGISTICS OTHER BE FAVOURABLE AND SHOPPING EUROPEAN CENTERS MARKETS. SOME FURTHER YIELD COMPRESSION EXPECTED 24
Slide 26: Macro-economic momentum in Iberia continues to be favourable
Outlook 1 Macro-economic to be favourable momentum in Iberia continues SPAIN’S GDP GROWTH RATE IS GETTING SPAIN IS CURRENTLY EXPECTED TO BE ONE OF CLOSER TO PRE-CRISIS PEAK LEVELS THE FASTEST GROWING ECONOMIES IN EUROPE (% real GDP growth) 2016E average 3.0% 2.7% 1.8% 3.8% 3.2% 2.3% 2017E average 2.
Slide 27: Increasing take up and first signs of rental growth
Outlook 2 Increasing take up and first signs of rental growth STRONG MOMENTUM IN OFFICES TAKE UP… INCREASING CONSUMER CONFIDENCE… (000’s sqm) 110 478 398 366 365 265 282 90 199 186 70 2012 2013 2014 2015 Jan 2014 Jul 2014 Jan 2015 Jul 2015 Jan 2016 Madrid Barcelona … AND OFFICE PRIME RENTS IN CBD GR
Slide 28: Demand and supply fundamentals
Outlook 3 Demand and supply fundamentals RISING DEMAND AND DECREASING GOOD QUALITY OFFICE SPACE PUSHING UP RENTS REGIONAL UNEMPLOYMENT RATE REGIONAL ECONOMIC GROWTH (GDP) (in %) (in %) 24 3 21 1 18 (1) 15 (3) 12 (5) Q1 2009 Q2 2010 Q3 2011 Q4 2012 Q1 2014 Q2 2015 Q1 2009 Q2 2010 Q3 2011 Q4 2012 Q1 2
Slide 29: Ample room for recovery
Outlook 4 Ample room for recovery THE SPANISH AND PORTUGUESE OFFICE MARKETS HAVE ROOM FOR RECOVERY PRIME OFFICE YIELD AS OF Q4 2015 RELATIVE TO ITS PEAK IN THE CURRENT CYCLE 8 KEY TRENDS 6 Yields still offer some room for 4 improvement after having compressed in line with other European 2 Berlin m
Slide 30: Dividend Guidance
DIVIDEND GUIDANCE
Slide 31: Dividend guidance on 2016 results
Outlook Dividend guidance on 2016 results SHAREHOLDER DISTRIBUTION GUIDANCE: MINIMUM OF € 140 M (€ 0.43 + PER SHARE) AGAINST FY 2016 RESULTS WITH THE FOLLOWING CHARACTERISTICS: ALL CASH PAYMENT IN TWO INSTALMENTS Interim Final Total (following approval FY 2016 proposed by AGM of 2016 minimum dividen
Slide 32: AGM 2016 Main Topics
AGM 2016 MAIN TOPICS
Slide 33: AGM 2016 Main topics
Outlook AGM 2016 Main topics PROPOSED RESOLUTION FOR THE ANNUAL GENERAL SHAREHOLDER MEETING IN APRIL 2016 Delegation to the Board (5 years) of the power to increase capital up to 50% of current 1 capital, if done with rights; if done without rights capital increase limited to 20% of current capital
Slide 34: 2015 Shareholder distribution background
Outlook 2015 Shareholder distribution background 2015 Proposed shareholder distribution (€’000s) Per share (€ cents) Interim dividend (Oct-15) 25,035 7.750 Complementary dividend (Apr-16) 1,838 0.569 Share premium distribution (Apr-16) 33,146 10.261 Total 60,019 18.580 33
Slide 35: Appendix: The Assets
APPENDIX THE ASSETS MERLIN OPERTIES
Slide 36: Offices Madrid Location
Offices Madrid Location 16 14 6 A-1 Corridor Costa Brava Avenida de Avenida de 2-4 Bruselas 24-26 3 4 Bruselas 33 Campo de 11 Maria de Arroyo de las Naciones Portugal Valdebebas 5 Castellana 1 259 20 18 Padres 10 Dominicos Ribera del Eucalipto Loira 60 25-33 2 Castellana A-2 corridor Ática 83-85 Cas
Slide 37: Offices Barcelona Location
Offices Barcelona Location Sant Cugat 25 17 Diagonal 514 15 Sant Cugat I and II Diagonal Pº de Gracia Vilanova 12-14 El Prat 8 22 19 Muntadas I WTC 6 Diagonal 605 29 21 Muntadas II WTC 8 36
Slide 38: Offices (I)
Offices (I) 1. Ribera del Loira 60 2. Partenón 12-14 & 16-18 CITY: MADRID CITY: MADRID LOCATION: NBA LOCATION: NBA GLA: 54,960 GLA: 37,632 PARKING LOTS: 1,253 PARKING LOTS: 663 ASSETS: 1 ASSETS: 2 3. Maria de Portugal T2 4. Arroyo de Valdebebas T7 CITY: MADRID CITY: MADRID LOCATION: NBA LOCATION: NB
Slide 39: Offices (II)
Offices (II) 7. Juan Esplandiú 11-13 8. Muntadas I CITY: MADRID CITY: BARCELONA LOCATION: SEC CBD LOCATION: NBA GLA: 28,008 GLA: 24,380 PARKING LOTS: 436 PARKING LOTS: 640 ASSETS: 1 ASSETS: 1 9. Princesa 3-5 10. Atica CITY: MADRID CITY: MADRID LOCATION: CBD LOCATION: PERIPHERY GLA: 23,598 GLA: 23,40
Slide 40: Offices (III)
Offices (III) 13. Alcalá 45 14. Avenida de Bruselas 24-26 CITY: MADRID CITY: MADRID LOCATION: CBD LOCATION: NBA GLA: 18,655 GLA: 18,058 PARKING LOTS: 40 PARKING LOTS: 457 ASSETS: 1 ASSETS: 2 15. Vilanova 12-14 16. Costa Brava 2-4 CITY: BARCELONA CITY: MADRID LOCATION: CBD LOCATION: PERIPHERY GLA: 16
Slide 41: Offices (IV)
Offices (IV) 19. Diagonal 605 20. Eucalipto 25 & 33 CITY: BARCELONA CITY: MADRID LOCATION: CBD LOCATION: SEC CBD GLA: 14,795 GLA: 14,553 PARKING LOTS: 217 PARKING LOTS: 256 ASSETS: 1 ASSETS: 2 21. WTC 8 22. WTC 6 CITY: BARCELONA CITY: BARCELONA LOCATION: NBA LOCATION: NBA GLA: 14,543 GLA: 14,535 PAR
Slide 42: Offices (V)
Offices (V) 25. Diagonal 514 26. Alcalá 40 CITY: BARCELONA CITY: MADRID LOCATION: CBD LOCATION: CBD GLA: 9,664 GLA: 9,315 PARKING LOTS: 76 ASSETS: 1 ASSETS: 1 27. Lisbon Expo 28. Pedro de Valdivia 10 CITY: LISBON CITY: MADRID LOCATION: CBD LOCATION: CBD GLA: 6,740 GLA: 6,721 PARKING LOTS: 176 PARKIN
Slide 43: High street retail Location
High street retail Location 31 6 96 71 10 33 10 109 63 22 161 93 12 43 15 24 91 RETAIL / BRANCHES SUPERMARKETS 40 42
Slide 44: High street retail
High street retail Tree Caprabo SPAIN CATALUÑA UNITS: 888 UNITS: 33 GLA: 373,157 GLA: 64,252 43
Slide 45: Shopping Centers Location
Shopping Centers Location La Coruña Madrid 1. Marineda 5. Centro Oeste 4. Plaza de los Cubos 6. Arturo Soria Málaga Mallorca 3. Larios 2. Porto Pi 44
Slide 46: Shopping Centers
Shopping Centers 1. Marineda 2. Porto Pi CITY: A CORUÑA CITY: MALLORCA UNITS: 150 UNITS: 124 GLA: 105,795 GLA: 26,559 ANNUAL FOOTFALL: 15.1 M ANNUAL FOOTFALL: 7.6 M PHYSICAL OCCUPANCY: 89% PHYSICAL OCCUPANCY: 95.2% 3. Larios 4. Plaza de los Cubos CITY: MÁLAGA CITY: MADRID UNITS: 99 UNITS: 21 GLA: 21
Slide 47: Logistics Location
Logistics Location 2. Guadalajara- 4. Guadalajara- 3. Vitoria-Júndiz 14. Zaragoza-Plaza 18. Zaragoza-Pedrola Cabanillas II Cabanillas I 13. Barcelona-LliÇa del 7. Guadalajara-Alovera A1 / A68 corridor Vall A2 corridor AP-7 / Barcelona 15. Barcelona- 20. Guadalajara- Azuqueca Miralcampo 11. Guadalaja
Slide 48: Logistics (I)
Logistics (I) 1. Barcelona-ZAL Port 2. Guadalajara-Cabanillas II CITY: BARCELONA CITY: GUADALAJARA GLA: 567K GLA + 407K SQM GLA: 151,704 OF LEASED LAND LOCATION: A-4 CORRIDOR LOCATION: BARCELONA PORT 3. Vitoria-Júndiz 4. Guadalajara-Cabanillas I CITY: VITORIA CITY: GUADALAJARA GLA: 72,717 GLA: 70,13
Slide 49: Logistics (II)
Logistics (II) 7. Guadalajara-Alovera 8. Madrid-Coslada Complex CITY: GUADALAJARA CITY: MADRID GLA: 38,763 GLA: 36,234 LOCATION: A-2 CORRIDOR LOCATION: A-2 CORRIDOR 9. Madrid-Meco 10. Madrid-Coslada CITY: MADRID CITY: MADRID GLA: 35,285 GLA: 28,490 LOCATION: A2 CORRIDOR LOCATION: A2 CORRIDOR 11. Gua
Slide 50: Logistics (III)
Logistics (III) 13. Zaragoza-Pedrola 14. Zaragoza-Plaza CITY: ZARAGOZA CITY: ZARAGOZA GLA: 21,579 GLA: 20,764 LOCATION: A-2 CORRIDOR LOCATION: ACCESS TO AP7 15. Barcelona-Sant Esteve 16. Barcelona-Granada del Penedés CITY: BARCELONA CITY: BARCELONA GLA: 16,812 GLA: 16,758 LOCATION: A2-AP7 HIGHWAY LO
Slide 51: Logistics (IV)
Logistics (IV) 19. Madrid-Getafe (Olivos) 20. Guadalajara-Azuqueca Miralcampo CITY: GUADALAJARA CITY: GUADALAJARA GLA: 11,488 GLA: 100,000 LOCATION: A-4 CORRIDOR LOCATION: A2-CORRIDOR 50
Slide 52: Hotels Location
Hotels Location Madrid Barcelona 1. Eurostar 6. AC Forum**** GL***** 9. Eurostars AV Vega**** 33 4. Tryp aeropuerto**** 7. NH Sanvy**** 3. Puerta Castilla**** 2. Eurostars Gran Marina***** Jerez Valencia Malaga 10. Tryp Jerez**** 5. Tryp Oceancic**** 8. Tryp Alameda**** 51
Slide 53: Hotels (I)
Hotels (I) 1. Eurostars GL***** 2. Eurostars Gran Marina**** CITY: MADRID CITY: BARCELONA LOCATION: CBD / URBAN LOCATION: URBAN GLA: 31,800 GLA: 20,030 # ROOMS: 474 # ROOMS: 274 3. Puerta Castilla**** 4. Tryp Aeropuerto**** CITY: MADRID CITY: BARCELONA LOCATION: CBD / URBAN LOCATION: URBAN GLA: 13,1
Slide 54: Hotels (II)
Hotels (II) 7. NH Sanvy**** 8. Tryp Alameda**** CITY: MADRID CITY: MALAGA LOCATION: CBD / URBAN LOCATION: URBAN GLA: 12,182 GLA: 6,000 # ROOMS: 149 # ROOMS: 136 9. Eurostars Av Vega**** 10. Tryp Jerez**** CITY: MADRID CITY: JEREZ LOCATION: URBAN LOCATION: URBAN GLA: 3,581 GLA: 4,637 # ROOMS: 100 # R
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MERLIN Properties SOCIMI — Non-Deal Roadshow (March 2016) on 6ix