Merlin Properties Socimi, S.a. · BME:MRL
Merlin Properties Socimi — H1 2015 Earnings Presentation
27 slides from Merlin Properties Socimi's earnings presentation, 2015
Slide 1: 1H 2015 results presentation
1H 2015 results presentation 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by by any independent sources and there the U.S. Securities Act of 1933, as amended included in this presentation, including, MERLIN Properties SOCIMI, S.A. (the can be no assurance that the assumptions (the “Securities Act”), or the U.S. Investment wit
Slide 3: Presenting team and index
Presenting INDEX team 1. Financial highlights. A strong performance 2. The portfolio. High yielding and gaining diversification 3. Acquisitions. ISMAEL CLEMENTE CEO Accretive investments 4. Testa update Acquisition ahead of timeline DAVID BRUSH CIO MIGUEL OLLERO CFO / COO 3
Slide 4: MERLIN Fast facts
MERLIN Fast facts Lfl GAV Growth Assets GLA GAV +3.6% 906 758k sqm €2,861m vs Dec-14 GRI NRI EPRA EPRA €134.6m €130.2m 5.58% 5.40% Annualized Annualized Gross Yield Net Yield 1H 15 1H 15 June 30 EPRA €65.4m €42.4m 27.7% 10.64 Gross rents Recurring FFO LTV NAV / share(1) Source: Company 1 Shares outs
Slide 5: Financial highlights
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Slide 6: Consolidated profit and loss
Financial highlights Consolidated profit and loss Outstanding gross-to-net ratio drives the strong cash flow generation in the period 1H 2015 Gross rental income € 65.4 m Tree € 44.5 m Annualized GRI € 134.62 m Retail € 9.2 m Office € 8.1 m Consolidated Logistics € 3.6 m profit and loss Net rental i
Slide 7: Bridge gross rents to FFO
Source: Company 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 G r Financial highlights Pr (€ thousand) N re os op e n s et ts re rec rty nt e s har xp b g an ef ea . no d or b t co e le lle inc 65,443.9 -1,557.5 ct en io ti n ve lo s ss in ce Re nt n iv ts C es ol le ct 63,886.4 -346.9 io n lo
Slide 8: Consolidated balance sheet
Financial highlights Consolidated balance sheet Financial discipline and proactive management of the capital structure leads to healthy financial ratios June 2015 December 2014 Total assets € 3,294 m € 2,417 m Total equity € 2,042 m € 1,309 m Consolidated Portolio value € 2,861 m € 2,232 m balance s
Slide 9: GAV increase driven by prudent yield compression
Financial highlights Portfolio valuation GAV increase mostly driven by a prudent yield compression (20 bps) with potential room for further capital value growth €million 4,000 3,500 425.1 20.7 2,861.3 3,000 31/12/2014 2,500 2,231.6 80.1 103.8 GAV 2,000 bridge to 30/06/2015 1,500 1,000 500 0 GAV Lfl
Slide 10: GAV like-for-like increase per asset
Financial highlights Portfolio valuation 5.0% 5.1% Av. MERLIN GAV lfl 3.6% increase per asset 3.4% 2.6% category Tree Retail Office Logistics Source: Company 10
Slide 11: EPRA performance metrics
Financial highlights EPRA metrics MERLIN commercial real estate portfolio is the highest yielding in the Spanish listed market June 2015 December 2014 €m Per share3 €m Per share3 EPRA earnings € 44.8 m € 0.23 € 20.4 m € 0.16 EPRA EPRA NAV € 2,062 m € 10.64 € 1,355 m € 10.49 performance EPRA NNNAV €
Slide 12: EPRA NAV bridge to 30/06/2015
Financial highlights EPRA NAV €million 3,000 2,500 425.1 65.7 11.6 2,061.9 31/12/2014 2,000 124.5 80.1 EPRA NAV 1,500 1,354,9 bridge to 1,000 30/06/2015 500 0 EPRA NAV Lfl GAV Testa 25% Change Change EPRA NAV 31/12/2014 increase Acquisitions 1H stake in net debt in Working 30/06/2015 Capital Source:
Slide 13: The portfolio
The portfolio 13
Slide 14: Portfolio breakdown
The portfolio Portfolio breakdown 26% Tree Inversiones Retail GLA breakdown 49 % per asset type Office 11% Logistics 14% 7% 13% Rents breakdown per asset type 66% 14 % Source: Company 14
Slide 15: Portfolio breakdown: gross yield, WAULT and occupancy
The portfolio Portfolio breakdown 8.05% 6.36% 6.34% Gross Yield per 5.58% asset type1 5.16% Av. MERLIN Tree Retail Office Logistics Inversiones 100% 98% 95.8% 22.8 89% Av. MERLIN 79 % 7.3 16.8 Occupancy and Av. MERLIN average lease 3.1 3.2 length per asset type2 Tree Retail Office Logistics Inversio
Slide 16: Letting activity: 60k sqm signed
The portfolio Letting activity (up to 31 July 2015) 60k sqm signed (49k sqm new contracts and 11k sqm renewals) • Marineda occupancy increasing after positive take-up in the period. •Grade A logistics operator signed in Cabanillas (forward-purchase), well ahead business plan timeline, proving the ex
Slide 17: New acquisitions
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Slide 18: Alcalá Office - Madrid
Alcalá Office - Madrid DESCRIPTION Office building located in the heart of Madrid, in Alcalá 38–40 street, in an excellent location, at the junction of the renowned streets of Alcalá and Gran Via, in an area known for its high density and retail concentration. This area is currently undergoing a rem
Slide 19: Madrid - Coslada Logistics
Madrid - Coslada Logistics - Madrid DESCRIPTION Logistics warehouse located in Madrid, in the Logistics Transport Centre in Coslada, a consolidated logistics area, known for its excellent connection to the A-2 highway and proximity to Madrid (18 kms.) and airport (7 kms.). The asset has a GLA of 28,
Slide 20: Madrid - Meco Logistics
Madrid - Meco Logistics - Madrid DESCRIPTION Logistics warehouse located in Madrid, in the Meco industrial area, a consolidated logistics area, known for its excellent connection to the A-2 corridor. The asset has a GLA of 35,285 sqm, fully let to Azkar (subsidiary of Dachser, one of the leading log
Slide 21: Lisbon - Expo Office
Lisbon – Expo Office - Lisbon DESCRIPTION The property, built in 2007, under a project signed by Broadway Malyan, comprises a total of 6,740 sqm of GLA including retail on ground floor and office accommodation above (7 upper floors). The building is L shaped in configuration and has a glazed façade,
Slide 22: Caprabo Retail - Cataluña
Caprabo Retail - Cataluña DESCRIPTION 33 supermarkets long-term leased to Caprabo. The portfolio comprises 19 urban street retail supermarkets and 14 suburban big boxes. 71% of rents of the portfolio are in Barcelona and the remaining 29% in Tarragona, Lérida and Gerona. Caprabo has been operating t
Slide 23: Guadalajara - Cabanillas Logistics
Guadalajara - Cabanillas Logistics - Guadalajara DESCRIPTION 3 logistics facilities with a total G.L.A. of 103,519 sqm located in Cabanillas (third ring of Madrid - 50kms.), in the so-called “Corredor de Henares”, the largest logistic hub in Spain, comprising more than 15 municipalities and 70 km of
Slide 24: Testa update
Testa update 24
Slide 25: Testa acquisition process
Acquisition process Phase 1 Phase 2 Phase 3 49.5% 23% pending completion Stake acquired1 25% 25.1% (not later than 30 June 2016) €431 million €861 million €694 million Capital increase at Acquisition of Acquisition of Consideration Testa fully subscribed secondary shares secondary shares by Merlin f
Slide 26: Testa Fast facts
Testa Fast facts 1H 15 GLA Occupancy GAV 49k 1,044k sqm 93.3% €3,202m Leases GRI NRI EPRA EPRA €157.9m €147.8m 5.49% 5.14% Annualized Annualized Gross Yield Net Yield 1H 15 1H 15 June 30 EPRA €78.9m €68.4m 45.8% 11.09 Gross rents EBITDA LTV NAV / share(1) Source: Testa 2015 first half results presen
Slide 27: Contact
PASEO DE LA CASTELLANA, 42 28046 MADRID +34 91 787 55 30 info@merlinprop.com www.merlinproperties.com 27
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