Merlin Properties Socimi, S.a. · BME:MRL
Merlin Properties Socimi — Q1 2016 Earnings Presentation
24 slides from Merlin Properties Socimi's earnings presentation, May 12, 2016
Slide 1: 1Q 2016 Results Presentation
1Q 2016 RESULTS PRESENTATION 12 M AY 2016
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by MERLIN Company and may have not been audited or reviewed THIS PRESENTATION DOES NOT CONSTITUTE OR FORM Properties SOCIMI, S.A. (the “Company”) for informational by the Company’s auditors. Recipients should not PART OF ANY OFFER FOR SALE OR SOLICITATI
Slide 3: Introduction and highlights
1Q 2016 RESULTS PRESENTATION Introduction and highlights Ismael Clemente. CEO inancial results 1Q 2016 F Miguel Ollero. CFO / COO ortfolio performance P David Brush. CIO ssets disposals A Ismael Clemente. CEO
Slide 4: MERLIN Fast facts (31/03/16)
MERLIN Fast facts (31/03/16) GLA GLA GRI(1) ATTRIBUTED GRI(2) 1,901,589 sqm 452,915 sqm € 310.1 m € 325.5 m IN STOCK EXPANSION PROJECTS ANNUALIZED ANNUALIZED 1Q 16 1Q 16 1Q 16 1Q 16 € 76.8 m € 67.0 M € 48.5 m € 49.6 m GROSS RENTS EBITDA RECURRING FFO(3) EPRA EARNINGS EPRA EPRA EPRA EPRA 5.3% 4.9% €
Slide 5: Financial Results 1Q 2016
FINANCIAL RESULTS 1Q 2016
Slide 6: Consolidated profit and loss
1Q 16 Financial highlights Consolidated profit and loss 1Q 2016 1Q 2015 Consolidated Gross rents €76.8 m €32.2 m Passing Gross rents annualized profit and loss Office €28.5 m €3.7 m High street retail €24.0 m €22.3 m € 310.1 m 1 Shopping centers €10.5 m €4.7 m Logistics €4.9 m €1.5 m Hotels €5.7 m €
Slide 7: EPRA performance metrics
1Q 16 Financial highlights EPRA Metrics 1Q 2016 EPRA €m Per share performance metrics EPRA earnings 49.6 € 0.15 EPRA NAV 3,218.3 € 9.96 EPRA NNNAV 2,927.2 € 9.06 EPRA net initial yield(1) 4.9% EPRA "topped-up" NIY(2) 5.0% EPRA vacancy 5.5% Recurring EPRA Costs 14.3% Includes Property expenses 6.3% I
Slide 8: Debt summary (after bond issuance)
1Q 16 Financial highlights Debt summary (after bond issuance) Mar-2016 € million L/T S/T TOTAL Unsecured bank loans 850.0 - 850.0 Corporate bonds 850.0 - 850.0 Mortgage bank loans 1,142.8 11.0 1,153.8 Mortgage non-bank loans 133.6 - 133.6 Leasings 160.9 11.8 172.6 Non-core debt 110.4 1.0 111.4 Total
Slide 9: Portfolio Performance
PORTFOLIO PERFORMANCE
Slide 10: Yields, occupancy and WAULT
Portfolio performance 1Q 2016 Yields, occupancy and WAULT EPRA Gross Yield per asset type(1) 6.9 % 7.5% 5.8 % 5.9% 5.3% 5.2 % 5.1 % 4.2 % MERLIN Average Office Shopping Logistics High Hotels Residential Other centers(2) street retail(2) Occupancy and WAULT per asset type(3) 89.9% 92.8% 93.5% 100% 10
Slide 11: Leasing activity
Portfolio performance 1Q 2016 Leasing activity 156K SQM SIGNED, OUT OF WHICH 103K SQM CORRESPOND TO FULLY CONSOLIDATED ASSETS AND 53K SQM TO MINORITY STAKES. NEW CONTRACTS ACCOUNT FOR 74K SQM AND RENEWALS AMOUNT TO 81K SQM 60,000 48,468 50,000 46,130 40,000 30,000 22,768 20,000 12,425 10,147 10,000
Slide 12: Leasing highlights
Portfolio performance 1Q 2016 Leasing highlights Office IN RENEWAL IN RENEWAL 1,694 sqm 7,267 sqm 1,089 sqm 13,037 sqm CASTELLANA 83-85 AV. BRUSELAS 24 MUNTADAS I SEVILLA - BORBOLLA Shopping centers IN RENEWAL 11,984 sqm 2,026 sqm MARINEDA LARIOS Logistics IN RENEWAL RENEWAL 48,468 sqm 7,171 sqm 2,9
Slide 13: Shopping centers evolution
Portfolio performance Shopping centers evolution STEADY GROWTH IN SALES AND FOOTFALL CONTINUES (+8.3% FOOTFALL / +7.3% SALES) LTM Footfall LTM Footfall LTM Sales LTM Sales (million) evolution (million) evolution Marineda 16.7 +8.2% 166.6 +7.5% Porto Pi 8.7 +15.0% 88.0 +12.9% Larios 10.8 +6.5% 56.8 +
Slide 14: LfL Rental growth
Portfolio performance LfL Rental growth POSITIVE LFL RENTAL GROWTH IN OFFICES, HIGH STREET RETAIL AND HOTELS Commercial annualized LfL rent evolution (passing 31/03/16 vs. passing 31/12/15) LfL €’000 Change Occupancy CPI Rent % Offices(1) (56) (102) (151) 197 0.18% Shopping centers (223) (148) (29)
Slide 15: LEED/BREAAM program
Other initiatives LEED/BREAAM program 3 NEW LEED CERTIFICATES OBTAINED TO A TOTAL OF 6 OFFICE BUILDINGS (1 PRE-CERTIFIED) EUCALIPTO 25 EUCALIPTO 33 PARTENON 16-18 NEW NEW NEW AV. BRUSELAS 33 PEDRO VALDIVIA 10 PARTENON 12-14 PRE CERT ı 15 ı
Slide 16: Investment Activity
INVESTMENT ACTIVITY
Slide 17: Investment activity: Monumental
Investment activity Monumental DESCRIPTION Mixed used property (office and retail) located in the Duque the Saldanha square, one of the top prime areas in Lisbon for both office and retail. The office area comprises a total GLA 16,892 sqm and is currently let at 88.6% to top multinational companies
Slide 18: Investment activity: Torre Lisboa
Investment activity Torre Lisboa DESCRIPTION Office building part of Lisboa Business Park, an office complex that includes 8 buildings (7 office buildings and 1 hospital). Strategically located in the intersection of Segunda Circular (Lisbon main ring road) and the IP-7 highway, 5 minutes from the a
Slide 19: Investment activity: Meco II Land
Investment activity Meco II Land R-2 Highway DESCRIPTION Plot with approved logistics use, located in a highly consolidated logistics park. The plot benefits from excellent visibility from the A-2 corridor and has good accessibility to both the A-2 and R-2 highways. The driving distance is approxima
Slide 20: Investment activity: Cabanillas III Land
Investment activity Cabanillas III Land DESCRIPTION Plot with approved logistic use in Cabanillas del Campo, in the same logistics park where MERLIN is already engaged in several turn-key projects. The warehouses will benefit from good accessibility from the A-2 highway and R-2 radial. The driving d
Slide 21: Projects: additional rents from development projects
Investment activity Projects ADDITIONAL RENTS OF +€24M DERIVING FROM DEVELOPMENT PROJECTS 2016-2017 CABANILLAS II 2017 GAVILANES 2017 MECO II 2017 PINTO GLA: 151,809 sqm GLA: 39,576 sqm GLA: 59,891 sqm GLA: 70.000 sqm Expected Rents: € 5.9m Expected Rents: € 2.7m Expected Rents: € 2.6m Expected Rent
Slide 22: Assets Disposals
ASSETS DISPOSALS
Slide 23: Assets disposals: BBVA branches
Assets disposals MISCELLANEOUS ASSETS BEING DISPOSED ON TRACK WITH MERLIN’S TARGET: CAPITAL GAIN + PORTFOLIO QUALITY ENHANCEMENT 3 offers received for BBVA bank 3 €50.3M branches and 1 non-core asset Sales proceeds 34 Assets BVA branches buyers value: B • The strength of the lease contract. +22.6% o
Slide 24: Contact
Paseo de la castellana, 42 28046 MADRID +34 91 787 55 30 info@merlinprop.com www.merlinproperties.com
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