Merlin Properties Socimi, S.a. · BME:MRL
Merlin Properties Socimi — FY2014 Earnings Presentation
28 slides from Merlin Properties Socimi's earnings presentation, 2015
Slide 1: MERLIN Properties FY 2014 results presentation
MERLIN Properties FY 2014 results presentation 1
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: Agenda and presenting team
MERLIN FY 2014 results presentation Agenda Presenting team Financial highlights Ismael Clemente 1 Executive Chairman / CEO A strong start since IPO David Brush 2 The portfolio CIO Exceeding expectations Outlook and AGM call Miguel Ollero 3 COO / CFO Strong pipeline ahead © MERLIN Properties SOCIMI,
Slide 4: 2014 Financial highlights
2014 Financial highlights
Slide 5: Financial highlights
1 Financial highlights Since June 30, 2014 MERLIN has developed one of the largest and highest quality yielding commercial real estate portfolios in the Spanish market December 2014 Consolidated Total assets € 2,417 m balance sheet Total equity € 1,309 m Portolio value € 2,232 m Net financial debt €
Slide 6: Portfolio valuation and debt overview
1 Portfolio valuation and debt overview 5% incremental value vs. acquisition cost as of December 2014 (€ m) December 2014 Acquisition Cost1 (%) Change Acquisition date Tree portfolio 1,669.5 1,577.4 +5.8% July 2014 Marineda 281.1 267.5 +5.1% July 2014 Madrid A-1 Office 131.1 132.2 -0.8% October 2014
Slide 7: EPRA performance metrics
1 EPRA performance metrics +5% NAV increase since IPO EPRA Net Asset Value 31/12/2014 (€ m) 2,232 € 10.5 EPRA NAV 1,355 per share (857) (19) € 10.8 EPRA NAV per share adjusted1 Gross Net Working EPRA Net Asset Value financial debt capital Asset Value Source: Company 1 EPRA NAV adjusted excludes IPO
Slide 8: Overheads
1 Overheads Innovative and shareholder friendly overhead structure Overheads as % of GRI and NAV ● Annual overheads set at the higher of 6% of GRI or 0.6% of Company EPRA NAV – in line with the most efficient international peers ● Under this scheme, the staff compensation is the “buffer” to the annu
Slide 9: The portfolio
The portfolio
Slide 10: High quality yielding portfolio
2 High quality yielding portfolio Well diversified portfolio with attractive yields and long leases Portfolio split by asset type Based on GAV Gross yield per asset type 3% Average yield of 6.1% 10% 9.3% 7.1% 7.2% 13% 5.7% 75% High street retail¹ Shopping center Offices Logistics High street retail
Slide 11: Portfolio metrics
2 Portfolio metrics € 129 million1 annual gross rents / 680,046 sqm owned / 6.1% gross yield Tree Portfolio Madrid A-1 Portfolio Vitoria-Júndiz Zaragoza-Plaza Several locations Madrid Vitoria Zaragoza GRI €89.1m2 GRI €9.8m GRI €2.8m GRI €1.0m GLA 374,181SQM GLA 34,175SQM GLA 72,717SQM GLA 20,764SQM
Slide 12: Outlook 2015
MERLIN PROPERTIES : u* io Wine | J ) 1 Lida
Slide 13: Investment pipeline
3 Investment pipeline Remaining cash of € 280 million and c.€ 2 billion pipeline Pipeline characteristics 13% Estimated size: € 2.0 billion 20% Under exclusivity and / or due diligence: € 230 million 11% Under analysis: € 1,770 million Of which c.60% are off-market transactions 56% Retail Offi
Slide 14: Dividend guidance on 2015 results
3 Dividend guidance on 2015 results MERLIN dividend is ahead of schedule due to the Tree and Marineda refinancings and a faster deployment of equity than anticipated The Management of MERLIN expect to propose to the Board of Directors to formulate a shareholder distribution proposal of a minimum of
Slide 15: Delivering on pre-IPO targets
Delivering on pre-IPO targets Target Target ActualActual MERLIN has invested faster Full deployment Full deployment within 24 months within 6 months Shopping Shopping Investing at higher yields Centers 5.7% - 6.2% Centers 7.1% Offices 5.0% - 6.0% Offices 7.2% Portfolio with annualized gross rent
Slide 16: Q&A
Q&A Q&A © MERLIN Properties SOCIMI, S.A 16
Slide 17: Appendix – The Portfolio
Appendix – The Portfolio A Portfolio location B Portfolio metrics C Portfolio case studies
Slide 18: Portfolio location
A Portfolio location Marineda Vitoria Zaragoza-Plaza 31 7 72 100 A-1 Madrid 10 WTC Almeda Edificios 1,2,3 10 23 Park, Edificio 8 123 67 158 12 A-1 Madrid 90 WTC Almeda Edificio 4 10 Park, Edificio 6 33 77 22 A-1 Madrid Valencia- Edificio 5 Almussafes 40 Madrid-Getafe Shopping centre Offices¹ Logisti
Slide 19: Portfolio metrics
B Portfolio metrics Madrid Office WTCAP Vitoria- Madrid- Valencia- Zaragoza- Combined at Tree Marineda Portfolio 6&8 Júndiz Getafe Almussafes Plaza Present Acquisition Date 3 July 31 July 2 Oct. 13 Aug. / 10 Dec. 30 Dec. 12 December 29 Sep. 5 August – Acquisition Price (€ m) 1,577.5 260.0 130.0 83.2
Slide 20: Tree
C Tree High street retail Description 880 branches and 5 buildings fully leased to BBVA with a long term agreement, 30 years for the branches (25 years left) and 20 for the buildings (15 years left). The portfolio has a total area of approximately 375,000 sqm, located in Spain across 442 municipalit
Slide 21: Marineda
C Marineda Shopping Center – A Coruña Description Marineda is the leading shopping complex in Galicia and the second largest in Spain. Opened in 2011 as part of the “Marineda City” shopping and leisure complex, the entire complex has a built area of more than 500,000 sqm and a gross leasable area (“
Slide 22: Madrid A-1
C Madrid A-1 Office - Madrid Description The portfolio has a total GLA of 34,175 sqm and includes 5 office buildings, one with total GLA of 10,856 sqm and 331 parking spaces fully let to Vestas, an office complex with 3 buildings with total GLA of 17,139 sqm and 392 parking spaces let to Philips and
Slide 23: World Trade Center Almeda Park 6 & 8
C World Trade Center Almeda Park 6 & 8 Office - Barcelona Description The property consists of two office buildings (building no.6 & 8) located in WTC Almeda Park (Cornellá) WTCAP 6 is a five-storey building built in 2008 with a GLA of 14,535 sqm and 213 parking spaces, and is currently occupied on
Slide 24: Vitoria - Júndiz
C Vitoria - Júndiz Logistics – Vitoria Description On a plot of 107,183 sqm, the constructed area of the property is 72,717 sqm, and is fully leased on a long-term basis to Norbert Dentrenssangle, one of the leading international logistics operator. The property benefits from 33 sheltered loading do
Slide 25: Madrid - Getafe
C Madrid - Getafe Logistics - Getafe Description This asset, built in 2000 following the highest standards for logistics facilities, has a gross lettable area of 16,242 sqm and is fully leased on a long-term basis to Transportes Souto, one of the leading logistics operator in the Spanish market. The
Slide 26: Valencia - Almussafes
C Valencia - Almussafes Industrial - Valencia Description The property consists of seven modules with a total gross lettable area of 26,612 sqm comprising 24,757 sqm for storage and 1,856 sqm for office. The property is located in the Sollana industrial area of the town of Almussafes (22km from Vale
Slide 27: Zaragoza - Plaza
C Zaragoza - Plaza Logistics – Zaragoza Description Industrial facilities comprising 3 buildings (2 for logistics use and one for office use) leased on a long-term basis to the renowned retail operator Imaginarium, a leading brand in the educational toys sector. The asset benefits from approximately
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