Merlin Properties Socimi, S.a. · BME:MRL
Merlin Properties Socimi — Q3 2015 Earnings Presentation
26 slides from Merlin Properties Socimi's earnings presentation, 2015
Slide 1: 3Q 2015 results presentation
3Q 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 well diversified 3. Acquisitions. ISMAEL CLEMENTE CEO Accretive investments DAVID BRUSH CIO MIGUEL OLLERO CFO / COO 3
Slide 4: MERLIN Fast facts
MERLIN Fast facts 3Q15 results include full consolidation of Testa balance sheet and June to September profit and loss statement 3Q 15 3Q 15 September 30 September 30 €139.4m €93.2m €2,939m 50.6% Gross rents Recurring FFO Net debt LTV GRI Net Rents EPRA EPRA €303.4m €283.3m 5.58% 5.21% Annualized An
Slide 5: Financial highlights
Financial highlights 5
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 3Q 2015 Gross rents € 139.4 m Annualized GRI Offices € 36.0 m € 303.42 m High street retail € 67.1 m Shopping centers € 19.6 m Logistics € 7.9 m Hotels € 5.7 m Consol
Slide 7: Testa business combination
Financial highlights Contingent deferred tax liability (CDTL) The CDTL corresponds to the latent capital gain tax, which would only be materialized if Testa assets were to be sold. Accounting rules dictate that the Group take the latent CDTL as a negative result Thousand euros Ref. Purchase price 1,
Slide 8: Bridge gross rents to FFO
Source: Company 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 G ro ss re nt (€ thousand) pr No s st Ne ope n r ra t e ig re rty co ht n Financial highlights ex ve -li ts pe rab ne be s fo nse le & re s co i 139,374 (6,330) lle nc ct en io tiv n e St los s, ra s ig ht -li ne Re s 133,044 (503
Slide 9: Consolidated balance sheet
Financial highlights Consolidated balance sheet Financial discipline and proactive management of the capital structure leads to healthy financial ratios. The Company is in the process of refinancing Testa’s debt September 2015 Portolio value €5,807 m Consolidated Gross financial debt(1) €3,501 m bal
Slide 10: Portfolio valuation: GAV bridge
Financial highlights Portfolio valuation The portfolio has not been revalued this quarter. GAV increase does only reflect the assets bought in 3Q at acquisition price €million 7,000 6,000 3,202.4 31.0 99.1 35.7 11.2 5,806.8 30/06/2015 5,000 GAV bridge to 30/09/2015 4,000 3,000 2,427.3 2,000 1,000 0
Slide 11: EPRA performance metrics
Financial highlights EPRA metrics MERLIN commercial real estate portfolio is the highest yielding in the Spanish listed market September 2015 €m Per share4 EPRA net earnings 85.3 €0.26 EPRA EPRA NAV 3,071.6 €9.51 performance Adjusted EPRA NAV1 2,794.0 €8.65 metrics EPRA NNNAV 2,740.5 €8.48 EPRA "top
Slide 12: Stock management plan
Financial highlights Stock management plan MERLIN’s management at its own initiative has elected to calculate the stock plan based on the adjusted NAV, deducting atributtable goodwill from EPRA NAV Stock Plan states that EPRA NAV shall apply for the calculation of the year end shareholder return. Ho
Slide 13: The portfolio
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Slide 14: Portfolio breakdown
The portfolio Portfolio breakdown Other 7% Rented residential 5% Office 34% Total GAV1 7% Hotels €5,807m Logistics 4 % Shopping centers 12 % High street retail 32% Rented residential 4% Other 1% Hotels 7% Total GRI2 6%Logistics Office 37% €303.4m Shopping centres 14 % High street retail 32% 1 ased o
Slide 15: Portfolio breakdown: EPRA gross yields, occupancy and WAULT
The portfolio Portfolio breakdown EPRA gross yields1 7.7% 5.6 % 5.3 % 6.3% 5.7% 5.6% 4.6% 4.0 % Average gross yield Office High Shopping Logistics Hotels Rented Other2 street retail centers residential Occupancy and WAULT1 100% 100% 96% 100% 95% 21.5 Average 93% 92% Occupancy 91% 10.9 4.4 4.0 6.5 3
Slide 16: Letting activity
The portfolio Letting activity Positive net lease-up accross all asset classes. 159.3k sqm lease-up of which 66.2k sqm are new contracts and 93.2k sqm are renewals 120,000 100,000 93,151 78,885 80,000 66,183 60,000 45,667 40,000 14,266 15,123 20,000 11,019 9,497 12,529 1,901 693 - (9,117) (8,804) (2
Slide 17: Pipeline vs reality
The portfolio Pipeline vs reality On track with the latest €370m pipeline reported €m Status Deals invested Estimated Up to 3Q15 €179m ✓ Caprabo/Cabanillas/Arturo Soria/Gefco/Office land c.€370m Zal Port/Sant Esteve/ pipeline 4Q15 €69m ✓ La Granada Up to 1Q17 €122m Pending Turn-keys funding + others
Slide 18: New acquisitions
New acquisitions 18
Slide 19: Madrid – Getafe (Olivos)
New acquisitions Madrid – Getafe (Olivos) DESCRIPTION This asset, built in 2004 following the highest standards for logistics facilities, perfectly suited for cross-docking requirements, has a gross lettable area of 11,488 sqm and is fully leased on a long-term basis to Gefco, one of the leading Fre
Slide 20: Madrid - Getafe (Gavilanes)
New acquisitions Madrid - Getafe (Gavilanes) DESCRIPTION Logistics asset comprising 6 modules with a total GLA of 39,576 sqm located in the industrial area known as Gavilanes, in Getafe, with immediate access to the A-4 highway, M-50, R-4 and M-45. Getafe is a prime logistics area in Madrid (16 kms.
Slide 21: Arturo Soria (Madrid)
New acquisitions Arturo Soria (Madrid) DESCRIPTION Prime urban shopping center in Arturo Soria, East of Madrid, within a high-end residential area, and excellent connections to the A2 and the busy M30/M40 highways. The property comprises a total GLA of 6,965 sqm, divided into two floors of retail an
Slide 22: Barcelona-Sant Esteve
New acquisitions Barcelona-Sant Esteve DESCRIPTION Logistic asset, with 16,812 sqm of GLA, located in Sant Esteve Sesrovires (Barcelona, in the conjunction of the A-2 and AP-7 highways), in a consolidated logistics park in close proximity to the SEAT car factory in Martorell, mostly accommodating te
Slide 23: Barcelona-Granada del Penedés
New acquisitions Barcelona-Granada del Penedés DESCRIPTION Logistic asset, with 16,758 sqm of GLA, located in the logistics park of La Granada del Penedés, (Barcelona, facing the AP-7 highway) fully leased to Norwood, a wholly-owned subsidiary of BIC and one of the leading suppliers of imprinted pro
Slide 24: Barcelona-ZAL Port
New acquisitions Barcelona-ZAL Port DESCRIPTION The ZAL in the Port of Barcelona is the most renowned logistics platform in the Mediterranean corridor with a total surface of 212 hectares. The platform benefits from a unique location inside the Port of Barcelona, only 2 km from the airport and 10 mi
Slide 25: Enhanced footprint in logistics
Logistics Enhanced footprint in logistics MERLIN has become a key logistics player with 1.2m sqm of GLA under management and presence in all main logistic hubs 17. Guadalajara-Cabanillas II 18. Guadalajara-Cabanillas I 1. Vitoria-Júndiz 2. Zaragoza-Plaza 3. Zaragoza-Pedrola 4. Barcelona-LliÇa del Va
Slide 26: Contact details
PASEO DE LA CASTELLANA, 42 28046 MADRID +34 91 787 55 30 info@merlinprop.com www.merlinproperties.com 26
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