Merlin Properties SOCIMI, S.A. · BME:MRL
Merlin Properties SOCIMI — Investor Presentation (May 2023)
57 slides from Merlin Properties SOCIMI's investor presentation, May 2023
Slide 1: Company Presentation May 2023
COMPANY PRESENTATION MAY 2023
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: Contents
CONTENTS ––– ––– ––– ––– A leading A well-grounded An exciting Appendix company present future
Slide 4: A Leading Company
A LEADING COMPANY
Slide 5: History
A leading company | History 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Acquisition of 47 assets Acquisition of 3 assets Sale Disposal of Acquisition and ZAL Port Acquisition Acquisition Acquisition in Portugal and DCN of Tree 2 non-core of 12 assets of 40 assets of 11 assets of 6 assets in Ma
Slide 6: Sound financial structure PF
A leading company | Sound financial structure PF(1) FINANCIAL DISCIPLINE: LONG MATURITIES AND FULLY HEDGED DEBT 32.5% 2.24% 5.6 98.0% 98.1% € 3,792m € 1,178m LTV Average Interest Years Non-mortgage debt Fixed Net financial Liquidity Rate (hedged) Maturity /total debt rate debt debt position(2) 872 8
Slide 7: A snapshot of MERLIN
A leading company | A snapshot of MERLIN 7.7% 15.6% % Gross asset value 57.5% (31/12/2022) 19.2% Offices Shopping Centers Logistics Other 7 Note: GAV of land under develpoment and NTA of equity method included in its respective category (offices, shopping centers and logistics)
Slide 8: Reconvening our strategy
A leading company | Reconvening our strategy A CLEARLY DEFINED STRATEGY INSPIRED BY THE BEST REIT PRACTICES Offices Logistics 50 % Core & Core Plus 20 % • Breadth of prime space Spain & Portugal • Footprint throughout Madrid, Barcelona the Iberian Peninsula and Lisbon • “One-stop shop” solution for
Slide 9: Shareholder's return
A leading company | Shareholder’s return +4.7% +8.8% +1.4% +7.1% +15.2% 16.11 15.39 15.46 15.67 +21.6% 14.81 +1.7bn € p.s As a consequence of dividends +17.2% 13.25 +1.19 of BBVA portfolio disposal distributed Total since IPO shareholder’s +9.1% 11.23 return 9.85 9.10 NTA 7.60 Current share price 0.
Slide 10: A Well-Grounded Present
A WELL-GROUNDED PRESENT
Slide 11: Positioning
A well-grounded present | Positioning #1 REIT IN OFFICES AND LOGISTICS #1 • Presence in prime cities: Madrid, Barcelona, Lisbon • Flexibility to offer multitenant or headquarter buildings Offices • Capacity to adapt to the needs of the tenant #1 • “One-stop-shop” solution for logistics operators wis
Slide 12: Offices
A well-grounded present | Offices PRIME SPACES IN BOTH CBD AND NBA OFFERING A WIDE VARIETY OF SOLUTIONS TO CLIENTS sqm Prime+CBD NBA Periphery Madrid 239,073 535,582 82,263 Barcelona 137,099 39,600 25,385 Lisbon 125,287 12,260 - Other - - 18,306 By location By product Otros Otros Lisbon Lisbon 17% B
Slide 13: Our clients: Offices
A well-grounded present | Our clients Offices Consulting firms Law firms Financial sector Tech sector Multinationals Leading Leading spanish spanish companies companies Public entities 13
Slide 14: Logistics
A well-grounded present | Logistics NATIONAL FOOTPRINT IN THE MAIN LOGISTICS HUBS sqm Madrid-A2 Madrid-A4 Barcelona(1) Sevilla País Vasco Valencia Zaragoza Lisbon In operation 809,789 154,511 868,317 138,777 99,491 61,604 42,343 45,171 WIP Best II 214,467 - - - - - - - WIP Best III 98,924 - - 15,122
Slide 15: A strategic stake - CILSA
A well-grounded present | A strategic stake - CILSA WITH A 48.5% STAKE IN ZAL PORT € 19.0 m 736,217 sqm GRI Top tier warehouses € 4.7m tenants FFO 3M23 figures 15
Slide 16: Shopping Centers
A well-grounded present | Shopping Centers URBAN AND DOMINANT ASSETS OFFERING NATIONAL SCALE IN HIGH GDP/CAPITA AREAS Muy grande sqm Urban Dominant(1) Secondary(2) Spain 225,103 168,517 20,876 Lisbon Portugal - 60,049 - by GAV Other Spain By Type By location Muy grande • Lisboa 21% • Valencia 11% •
Slide 17: Our clients: Logistics and Shopping Centers
A well-grounded present | Our clients Logistics Shopping Centers 17
Slide 18: GAV summary
A well-grounded present | GAV summary(1) Annual 260 72 124 12 469 gross rents Passing 4.4% 5.2% 5.8% 3.9% 4.7% 11,317 yield 10,685 6,388 GAV TOTAL with minority stakes Shopping centers 2,135 Minority stakes 1,400 Logistics Other(2) Offices TOTAL 763 632 (1) Data as of FY22 (2) Other includes hotels
Slide 19: Occupancy and WAULT 3M23
A well-grounded present | Occupancy and WAULT(1) 3M23 95.0% 95.8% PF post disposals 96.8% PF post disposals 98.2% 94.8% Average 94.4% occupancy 92.2% 6.9 3.3 3.5 3.2 2.4 Average WAULT Offices Logistics Shopping centers Other 19 (1) WAULT: weighted average unexpired lease term to 1st break
Slide 20: Lease maturity 3M23
A well-grounded present | Lease maturity 3M23 Total 3% 1% 6% % of total 2023 10% contracted 12% 4% 7% rents 2024 22% 8% 3% 6% 2025 17% 9% 3% 3% 2026 16% 20% 7% 5% >2027 35% % of total Offices Logistics Shopping Centers for each segment 38% 38% 38% 39% 39% 39% 27% 27% 27% 22% 22% 22% 22% 22% 22% 19%
Slide 21: An Exciting Future
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Slide 22: Data centers overview
An exciting future | Data centers | Data centers overview A strong market Excellent entry point 1 boosted by lack of with exponential The compelling returns of this asset class is THE product, subsea cables demand growth attracting more and MARKET arrivals and exponential expected while supply is mo
Slide 23: A trendy market
An exciting future | Data centers | A trendy market 1 INVESTMENT SALE VOLUME IN EUROPE WAS € 1.2BN – 5X HIGHER THAN THE 5-YR AVERAGE • Yield compression drove liquidity • Landsec to Blackstone @ 3.99% NIY • EMEA edge growth 2022 set to eclipse all previous • New investors have entered years combined
Slide 24: Main players in Spain
An exciting future | Data centers | Main players in Spain 1 EXCELLENT ENTRY POINT FOR MERLIN WITH NO RELEVANT PLAYERS IN THE MARKET MAIN DC OPERATORS Current market size Under construction Future market size # Operator (MW) (MW) (MW) 1 MERLIN - 9 70 2 Equinix 12 24 36 3 Interxion 11 23 34 4 Nabiax 1
Slide 25: MERLIN investment strategy in DCs
An exciting future | Data centers | MERLIN investment strategy in DCs • 100% ownership of the assets • Design & Construction management • 100% of lease agreements cash-flows • Technological expertise • Local know-how • Staff training Spain 50% • Local staff for the development 50% and project manage
Slide 26: Best-in-class technology
An exciting future | Data centers | Best-in-class technology 2 Triple Net zero Net Zero Carbon footprint with 1.15 PUE(1) 1 Net zero water cooling Edged uses a modular closed-loop 2 100% renewable energy 3 Supplying tenants with photovoltaic Each data center cuts overhead cooling system that support
Slide 27: The Iberian Peninsula is a strategic enclave
An exciting future | Data centers | The Iberian Peninsula is a strategic enclave 2 THE IBERIAN PENINSULA IS SET TO BECOME THE HUB FOR DATA CENTERS FOR CONTINENTAL EUROPE AND AFRICA, THANKS TO THE SUBMARINE INFRASTRUCTURE THAT CONNECTS THE IBERIAN PENINSULA WITH NORTH AMERICA, EUROPE, SOUTH AMERICA A
Slide 28: Data centers portfolio overview
An exciting future | Data centers | Portfolio overview 2 4 STRATEGIC LOCATIONS IN THE IBERIAN PENINSULA TO DEVELOP STATE-OF-THE-ART DATA CENTERS Hyperscale Wholesale colocation Bilbao - Arasur Barcelona - PLZF Total GLA 17,600 - 102,466 sqm Total GLA 22,131 ı Capacity 16 MW Capacity 22 - 100 MW Unde
Slide 29: Project status
An exciting future | Data centers | Project status Bilbao-Arasur Madrid - Getafe Barcelona - PLZF 1st module MW 3 3 3 Status Construction nearing completion Works on track Works on track Delivery 3Q 4Q 4Q 29
Slide 30: Beyond our most optimistic forecasts
An exciting future | Data centers | Beyond our most optimistic forecasts 236 MW 3 licenses 1 license granted in process 82 MW Lisbon 70 MW Estimated additional 15 MW demand 12 MW Advanced negotiations 2.0- 5.0 MW Advanced negotiations 2.6 MW Pre-let 4.2 MW Demonstration phase Expansion phase Full de
Slide 31: Portfolio overview Phase I & II (70 MW)
An exciting future | Data centers | Portfolio overview Phase I & II (70 MW) 2 Total Phase I & II MW CAPEX Annual YoC installed €m GRI stabilized(1) €m 70 MW € ~600m € ~75m 11.2% (1) Including land cost 31
Slide 32: MERLIN's scale is second to none
An exciting future | Logistics | MERLIN’s scale is second to none THE LARGEST PLAYER IN THE IBERIAN PENINSULA Logistics footprint under management (million sqm) 2.8 1.5 1.4 1.0 0.9 0.8 0.6 32
Slide 33: MERLIN anticipated the logistics boom
An exciting future | Logistics | MERLIN anticipated the logistics boom MERLIN HAS SECURED THE BEST LOCATIONS AT A COMPELLING YoC THANKS TO AN EXCELLENT ENTRY POINT Prime Yields evolution Transacted volume (€m) 2,611 1,562 1,658 1,585 789 854 854 4.8% 604 4.3% 4.0% 2012 2013 2014 2015 2016 2017 2018
Slide 34: A unique footprint
An exciting future | Logistics | A unique footprint Basque Country 99k sqm A-6 Barcelona Zaragoza A-1 A-2 868k sqm 810k sqm 42k sqm 313k sqm Madrid Lisbon A-5 155k sqm A-3 Valencia 45k sqm 62k sqm 180k sqm A-4 97k sqm Seville STOCK 139k sqm WIP 15k sqm 34
Slide 35: Offices | A strategic stake - DCN
An exciting future | Offices | A strategic stake - DCN 35
Slide 36: A strategic stake - DCN
An exciting future | Offices | A strategic stake - DCN THE MOST EXCITING RE-GENERATION PROGRAM IN EUROPE TIMELINE Urbanisation Delivery of the infrastructures first building Jul-2020 Jul-2021 Final approval Signing of of modification framework Tender of the Chamartín of PGM Madrid agreement station
Slide 37: Plaza Ruiz Picasso
An exciting future | Offices | Plaza Ruiz Picasso VIRTUALLY FULLY LET TO TIER-1 TENANTS AT PRIME RENTS GLA 36,899 sqm Delivery After Refurbishment 2023 5,323 sqm created 37
Slide 38: P.E. Cerro de los Gamos
An exciting future | Offices | P.E. Cerro de los Gamos After Before GLA Delivery Leasing 36,861 sqm Q3 23 - 2026 I - 100% (4,338 sqm) After Refurbishment +756 sqm created IV - 100% (6,488 sqm) 38
Slide 39: P.E. Churruca
An exciting future | Offices | P.E. Churruca After Before GLA Delivery Leasing 17,841 sqm 2022 - 2026 100% let After Refurbishment +862 sqm created 39
Slide 40: MERLIN's journey
An exciting future | ESG | MERLIN’s journey DISTINCT TRACK RECORD ON ESG SINCE INCEPTION, WHICH POISES MERLIN TO SUCCESSFULLY IMPLEMENT OUR PATHWAY TO NET ZERO 2015 2016 2018 Baseline 2020 2022 • Launch of the certification • Obtained first LEED v4 • Procurement of renewable • Pathway to Net Zero pr
Slide 41: Pathway to net zero
An exciting future | ESG | Pathway to net zero MERLIN HAS LAUNCHED ITS PATHWAY TO NET ZERO, ENSURING A BOTTOM-UP ANALYSIS TO SHAPE AND DEFINE THE PATHWAY The backbone of our strategy Sustainable Wellbeing Reshaping assets of people cities Pillars 1 Reducing 2 Reducing 3 Reducing 4 Offsetting operati
Slide 42: Renewable energy
An exciting future | ESG | Renewable energy Project Sun 1 A Coruña 33 assets 1 Vitoria across all asset categories 2 5 Barcelona Total 2 Investment 7 Madrid Valencia 10 1 € 30.4m 1 2 Palma de Mallorca Capacity Seville installed 1 Malaga • Offices • Logistics 39.8 Mwp 1 • Shopping centers Procurement
Slide 43: Recognitions
An exciting future | ESG | Recognitions Inclusion for MERLIN B- Average score B C 7.2 Top 1% A- 2 nd year in a row Financial Europe Global (negligible risk) services average 79% 70% #1 Average peers: 68% Average sector: 21% IBEX-35 43
Slide 44: Technology
An exciting future | ESG | Technology MERLIN IS FOCUSING ITS TECHNOLOGY EFFORTS THROUGH 3 PILLARS Deployment in our portfolio Mentoring Sponsoring Sensorization Proptech challenge MERLIN has invested in Fifth Wall, MERLIN teamed up with a venture capital proptech fund ISDI and Impact accelerator The
Slide 45: Appendix
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Slide 46: Offices
Appendix | Offices Castellana 259, Madrid Castellana 85, Madrid Plaza Ruiz Picasso II, Madrid Castellana 280, Madrid Castellana 278, Madrid Castellana 93, Madrid 46
Slide 47: Offices
Appendix | Offices Endesa HQ, Madrid Indra HQ, Madrid L’Oréal HQ, Madrid Pedro de Valdivia, Madrid Alcalá 40, Madrid Uría HQ, Madrid 47
Slide 48: Offices
Appendix | Offices Adequa – Técnicas Reunidas HQ, Madrid Ática XIX, Madrid Via Norte, Madrid Alfonso XI – IEB HQ, Madrid Partenón – Amex HQ, Madrid Princesa, Madrid 48
Slide 49: Offices
Appendix | Offices Diagonal 199, Barcelona Diagonal 211, Barcelona Diagonal 458, Barcelona Diagonal 514, Barcelona Diagonal 605, Barcelona Ed. Balmes, Barcelona 49
Slide 50: Offices
Appendix | Offices Poblenou 22@, Barcelona Vilanova – Endesa HQ, Barcelona WTC 6&8, Barcelona Sant Cugat – Ricoh HQ, Barcelona Plaza Cataluña 9, Barcelona E-Forum – AEAT HQ, Barcelona 50
Slide 51: Offices
Appendix | Offices Marqués de Pombal, Lisbon Marqués de Saldanha, Lisbon Arts Lisbon, Lisbon Galp HQ, Lisbon Nestlé HQ, Lisbon TFM, Lisbon 51
Slide 52: Offices
Appendix | Offices Torre Zen, Lisbon Central Office, Lisbon Lisbon Expo – Novabase HQ, Lisbon Liberdade 195, Lisbon 52
Slide 53: Logistics
Appendix | Logistics San Fernando, A2 Meco, A2 Cabanillas Park I, A2 Cabanillas, A2 Azuqueca, A2 ZAL Port, Barcelona 53
Slide 54: Logistics
Appendix | Logistics Seseña, A4 Getafe, A4 Pinto II, A4 Gavilanes, A4 ZAL, Sevilla Ribarroja, Valencia 54
Slide 55: Shopping Centers
Appendix | Shopping Centers Marineda, A Coruña Almada, Lisbon Arturo Soria, Madrid Larios, Málaga Arenas, Barcelona Porto Pi, Mallorca 55
Slide 56: Shopping Centers
Appendix | Shopping Centers Artea, Bilbao Saler, Valencia Tres Aguas, Madrid X-Madrid, Madrid Centro Oeste, Madrid Callao, Madrid 56
Slide 57: Contact
Paseo de la Castellana, 257 28046 Madrid +34 91 769 19 00 info@merlinprop.com www.merlinproperties.com
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