Carmila Sa · EURONEXT:CARM
Carmila Sa — Investor Presentation (November 2023)
31 slides from Carmila Sa's investor presentation, November 2023
Slide 1: Carmila Investor Presentation November 2023
Carmila Investor Presentation November 2023 1
Slide 2: Agenda
1 Key Highlights 2 Galimmo Acquisition 3 Activity Overview 4 Financial Performance 5 Conclusion 2
Slide 3: Agenda
1 Key Highlights 2 Galimmo Acquisition 3 Activity Overview 4 Financial Performance 5 Conclusion 3
Slide 4: Key takeaways from H1 2023
1 Key highlights 2 3 4 Key takeaways from H1 2023 Higher footfall and retailer sales Footfall up 3% and retailer sales up 7% vs. H1 2022 Strong leasing activity, high occupancy: 417 leases signed, reversion +0.4%, 96.1% financial occupancy Appraisal value of assets -0.6% like-for-like: € 6.0bn at en
Slide 5: The strategic plan has positioned Carmila for growth
1 Key highlights 2 3 4 The strategic plan has positioned Carmila for growth Executing the asset rotation strategy Target to sell a further € 100 million of assets by end-2024, one asset already sold for €8 million €20 million share buyback completed in H1 2023 On track with the strategic plan: “Buil
Slide 6: Agenda
1 Key Highlights 2 Galimmo Acquisition 3 Activity Overview 4 Financial Performance 5 Conclusion 6
Slide 7: Agreement to acquire Galimmo SCA
1 2 Galimmo acquisition 3 4 5 Agreement to acquire Galimmo SCA Acquisition of Galimmo SCA Carmila to acquire the shopping business of Louis Delhaize group in France, Galimmo SCA Galimmo owns and operates 52 shopping centers in France, all anchored to hypermarkets Transaction Context Carrefour to acq
Slide 8: Executing Carmila's roadmap on a complementary portfolio
1 2 Galimmo acquisition 3 4 5 Executing Carmila’s roadmap on a complementary portfolio Perfect fit for Carmila’s strategy Attractive deal terms Value creation opportunity on the type of Secured transaction with the acquisition of assets Carmila knows how to manage and transform 93% of the shares1 of
Slide 9: Galimmo: the right assets for the Carmila platform
1 2 Galimmo acquisition 3 4 5 Galimmo: the right assets for the Carmila platform Complementary Geographical footprint Local leaders like Carmila 52 centres, mainly in the North-East of France Top 5 “Shopping” assets (by % of total GAV) 1 13 “Shopping” assets representing 79% of Nancy Houdemont total
Slide 10: Indicative transaction timetable
1 2 Galimmo acquisition 3 4 5 Indicative transaction timetable 12 July 2023 Signing of agreement to acquire 93% of Galimmo SCA Antitrust and regulatory approvals Summer 2024 Acquisition of the 93% block of shares Q3 2024 Offer period 10
Slide 11: Financial impact of the acquisition of Galimmo SCA
1 2 Galimmo acquisition 3 4 5 Financial impact of the acquisition of Galimmo SCA Immediately accretive transaction Limited (ca. 160bps) LTV impact Recurring EPS accretion +3-5%1 H1-2023 Pro Forma Immediately accretive from closing in summer 2024 Net debt1 (€M) 2,244 ~2.6bn GAV1 (€M) 6,022 ~6.7bn EPR
Slide 12: Agenda
1 Key Highlights 2 Galimmo Acquisition 3 Activity Overview 4 Financial Performance 5 Conclusion 12
Slide 13: Footfall and retailer sales up over the last 6 months
1 2 3 Activity Overview 4 5 Footfall and retailer sales up over the last 6 months H1 2023 retailer sales: 106% of H1 2022 level H1 2023 footfall: 102% of H1 2022 level 111% 107% 109% 105% 105% 102% 103% 104% 104% 102% 99% 100% January February March April May June H1 2023 retailer sales: 110% of H1
Slide 14: Solid fundamentals: leasing activity, occupancy, positive reversion
1 2 3 Activity Overview 4 5 Solid fundamentals: leasing activity, occupancy, positive reversion Strong letting Affordable rents activity Positive reversion 417 new long-term (+0.4% in H1 2023) leases signed in H1 and Occupancy Cost 2023 Ratio of 10.4%* Growth of High occupancy specialty leasing 96.1
Slide 15: The right mix of retailers for each Carmila centre
1 2 3 Activity Overview 4 5 The right mix of retailers for each Carmila centre % of rental income End December 2022 End June 2023 30.6% 29.7% 19.5% 19.8% 15.3% 15.7% 13.2% 13.7% 7.9% 8.2% 7.6% 7.1% 5.8% 5.8% Clothing and Health and Culture, gifts Food & Household Services & Sport accessories Beauty
Slide 16: Flagship assets in Spanish tourist destinations outperforming
1 2 3 Activity Overview 4 5 Flagship assets in Spanish tourist destinations outperforming HOLEA FAN AS CANCELAS* GLA: 33,509 m² GLA: 50,262m² GLA: 38,141 m² Lots: 103 Lots: 121 Lots: 106 Footfall vs. H1 2022 : +6.4% Footfall vs. H1 2022 : +6.2% Footfall vs. H1 2022 : +8.5% Retailer sales vs. H1 2022
Slide 17: Omnichannel partnerships and projects for retailers and customers
1 2 3 Activity Overview 4 5 Omnichannel partnerships and projects for retailers and customers Fibre to the mall Second Hand From physical… …to digital New partnership with New partnership with SFR Camille Cerf Vinted, the leading second Capitalising on Carrefour’s (former Miss France) hand online ma
Slide 18: Investing and transforming with three kinds of project
1 2 3 Activity Overview 4 5 Investing and transforming with three kinds of project RESTRUCTURING MAJOR PROJECTS MIXED-USE • Restructuring of Vitrolles • Carmila projects: Nantes and • Mid-sized stores : Action at Sartrouville Toulouse Purpan • NoPuget building work currently • 13 Carmila sites in th
Slide 19: Carmila's energy strategy in practice on the ground
1 2 3 Activity Overview 4 5 Carmila’s energy strategy in practice on the ground Indicative split of Green Capex Case Study: Toulouse Purpan Energy transition investments carried € 10 million per year out prior to 2023+ Green capex plans z Voltage regulation, upgrading systems, smart Annual energy co
Slide 20: Agenda
1 Key Highlights 2 Galimmo Acquisition 3 Activity Overview 4 Financial Performance 5 Conclusion 20
Slide 21: Like-for-like valuation of assets -0.6% in H1 2023
1 2 3 4 Financial Performance 5 Like-for-like valuation of assets -0.6% in H1 2023 Like-for-like change 30 Jun 2023 (vs 31 Dec. 2022) (vs 31 Dec. 2022) Market value € 6.0bn -2.3% -0.6% Total (reported) Total (like-for-like) € 4.3bn -1.5% -0.8% € 1.4bn -5.3% -0.1% € 0.3bn -0.4% -0.4% 21
Slide 22: Confidence in the valuation of the portfolio
1 2 3 4 Financial Performance 5 Confidence in the valuation of the portfolio Increase in cap rates since 2017 6.26% Net Initial Yield • NIY +84bps over the period Reasonable appraisal assumptions 6.26% 6.14% • Net Rental Income CAGR : 2.0% • Exit cap rate : 6.4% 5.89% 5.85% • Discount rate : 7.8% 5.
Slide 23: Record level of net rental income
1 2 3 4 Financial Performance 5 Record level of net rental income Net Rental Income (€M) Net rental income up +1.6% vs. H1 2022 COVID period 155 167 172 175 • Organic rental growth +4.5%, driven by 148 128 indexation (+3.7%) • Net impact of acquisitions and disposals of -2.9% H1 H1 H1 H1 H1 H1 Organ
Slide 24: H1 2023 recurring earnings +1.5% vs. H1 2022
1 2 3 4 Financial Performance 5 H1 2023 recurring earnings +1.5% vs. H1 2022 H1 2022 H1 2023 €M Net rental 172.2 175.0 Net rental income +1.6% vs. H1 income 2022 -23.9 -23.8 Strict management of the cost Overhead costs base Equity-accounted +1.2 +2.0 companies EBITDA 149.5 153.2 EBITDA +2.4% vs. H1
Slide 25: Recurring Earnings Per Share and confirmation of full year outlook
1 2 3 4 Financial Performance 5 Recurring Earnings Per Share and confirmation of full year outlook H1 2023 Recurring EPS 2023 OUTLOOK +2.6% € 0.83 € 0.85 €1.57 recurring EPS expected in 2023 v v effect on rents Positive indexation Confident on rent collection Impact from disposals +8% organic growth
Slide 26: EPRA Net Tangible Assets per share
1 2 3 4 Financial Performance 5 EPRA Net Tangible Assets per share H1 2023 Change in EPRA Net Tangible Assets per share EPRA NTA at 30 June 2023 – fully diluted €24.35 / share +0.85 -1.17 25.26 -0.52 +0.10 -0.17 24.35 -3.6% vs. end 2022 Like for like FY 2023 change in recurring 2022 Other Share asse
Slide 27: Strong balance sheet
1 2 3 4 Financial Performance 5 Strong balance sheet H1-2022 End-2022 H1-2023 Net debt (€M) 2,272 2,204 2,244 BBB rating with a stable outlook from S&P GAV1 (€M) 6,165 6,166 6,022 Significant headroom vs. bank covenants and rating constraints LTV2 36.9% 35.8% 37.3% Stable like-for-like portfolio val
Slide 28: Strong liquidity and funding position
1 2 3 4 Financial Performance 5 Strong liquidity and funding position Carmila Debt Maturity Profile1 New secured loan: € 276 million euros, secured by 4 assets €M New bond issue: € 500 million, maturing in 2028, 5.5% coupon Average cost of net debt in H1 2023: 550 2024 bonds 2.5% (vs. 2.4% in 2022)
Slide 29: Financial wrap-up
1 2 3 4 Financial Performance 5 Financial wrap-up €6.0bn 37.3% +4.5% Gross Asset Value Like-for-like rental (-0.6% like-for-like vs. LTV1 growth vs. H1 2022 end-2022) +2.6% Dividend policy €1.57 H1 2023 recurring EPS Cash dividend, 75% recurring EPS growth vs. H1 2022 payout expected in 2023 Deliver
Slide 30: Agenda
1 2 3 4 5 1 Key Highlights 2 Galimmo Acquisition 3 Activity Overview 4 Financial Performance 5 Conclusion 30
Slide 31: Successful execution has positioned Carmila for growth
1 2 3 4 5 Conclusion Successful execution has positioned Carmila for growth Delivering on the priorities of the strategic plan Confirmation of the quality of Carmila’s portfolio and asset rotation in line with appraisal values Strong leasing activity and high occupancy supported by incubator strateg