Merlin Properties SOCIMI, S.A. · BME:MRL
Merlin Properties SOCIMI — Investor Presentation (July 2024)
55 slides from Merlin Properties SOCIMI's investor presentation, July 2024
Slide 1: Company Presentation
C O M PA N Y P R E S E N TAT I O N
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared certain assumptions and estimates. These offering, will not be registered under the This presentation may include forward- by MERLIN Properties SOCIMI, S.A. (the internal analyses may have not been verified U.S. Securities Act of 1933, as amended (the l
Slide 3: Contents
––– A leading company CONTENTS ––– A well-grounded present ––– An exciting future
Slide 4: A leading company
A LEADING COMPANY
Slide 5: MERLIN at a glance
A leading company | MERLIN at a glance(1) € 11,270m Listed GAV in Spain € 476m & Portugal GRI € 284m FFO Part of € 4,050m IBEX-35 NET DEBT 35.0% LTV BBB+ Stable 96.2% AVERAGE Baa2 Positive OCCUPANCY 5 (1) As of FY23
Slide 6: A snapshot of MERLIN
A leading company | A snapshot of MERLIN(1) 8.2% 3.0% 8.2% 3.0% otros 3.0% 0.1% 3.0% 0.1% otros 6.8% 16.8% 16.9% 16.9% Logistica Logistica CC CC Gross asset 56.5% oficinas 56.5% oficinas Gross rental 53.6% 53.6 value income 5% 18.5% 26.4% 26.4% Offices Shopping Centers Logistics Data Centers Other N
Slide 7: Reconvening our strategy
A leading company | Reconvening our strategy DATA CENTER STRATEGY IS TRANSFORMATIONAL FOR MERLIN Actual Mid-term: Mega Plan Phase I & II (260MW) 80% 20% 40% 60% Traditional(1) Digital (2) Traditional(1) Digital (2) Gross rental Gross rental income income (1) Offices + Shopping centers 7 (2) Data cen
Slide 8: A well-grounded present
A WELL-GROUNDED PRESENT
Slide 9: Positioning
A well-grounded present | Positioning #1 REIT IN OFFICES AND LOGISTICS #1 • Presence in prime cities: Madrid, Barcelona, Lisbon • Flexibility to offer multitenant or headquarter buildings Offices • Capacity to adapt to the needs of the tenant #1 • “One-stop-shop” solution for logistics operators wis
Slide 10: Offices
A well-grounded present | Offices PRIME SPACES IN BOTH CBD AND NBA OFFERING A WIDE VARIETY OF SOLUTIONS TO CLIENTS sqm Prime+CBD NBA Periphery Madrid 239,073 484,062 86,157 Barcelona 137,293 39,600 25,385 Lisbon 111,572 12,260 - Other - - 16,265 By location By product Otros Otros Lisbon Lisbon 16% B
Slide 11: Our clients - Offices
A well-grounded present | Our clients Offices Multinationals Leading Leading spanish spanish companies companies Tech sector Financial sector Public entities Consulting firms Law firms 11
Slide 12: Offices - Madrid assets
A well-grounded present | Offices Castellana 259, Madrid Castellana 85, Madrid Plaza Ruiz Picasso 11, Madrid Castellana 280, Madrid Castellana 278, Madrid Castellana 93, Madrid 12
Slide 13: Offices - Madrid HQ assets
A well-grounded present | Offices Endesa HQ, Madrid Indra HQ, Madrid Alfonso XI – IEB HQ, Madrid Pedro de Valdivia, Madrid Alcalá 40, Madrid Uría HQ, Madrid 13
Slide 14: Offices - Madrid assets
A well-grounded present | Offices Adequa Técnicas Reunidas & EDP HQ, Madrid Ática XIX, Madrid Via Norte, Madrid Josefa Valcárcel 48, Madrid Partenón – Amex HQ, Madrid Princesa, Madrid 14
Slide 15: Offices - Barcelona assets
A well-grounded present | Offices Diagonal 199, Barcelona Diagonal 211, Barcelona Diagonal 458, Barcelona Diagonal 514, Barcelona Diagonal 605, Barcelona Ed. Balmes, Barcelona 15
Slide 16: Offices - Barcelona assets
A well-grounded present | Offices Poblenou 22@, Barcelona Vilanova – Endesa HQ, Barcelona WTC 6&8, Barcelona Sant Cugat – Ricoh HQ, Barcelona Plaza Cataluña 9, Barcelona E-Forum – AEAT HQ, Barcelona 16
Slide 17: Offices - Lisbon assets
A well-grounded present | Offices Marqués de Pombal, Lisbon Marqués de Saldanha, Lisbon Arts Lisbon, Lisbon Galp HQ, Lisbon Liberdade 195, Lisbon TFM, Lisbon 17
Slide 18: Offices - Lisbon assets
A well-grounded present | Offices Torre Zen, Lisbon Central Office, Lisbon Lisbon Expo – Novabase HQ, Lisbon Nestlé HQ, Lisbon 18
Slide 19: Flex space KPIs
A well-grounded present | Flex space 1 NEW SPACE OPENED IN THE YEAR KPIs 26,748 sqm 2,703 desks 84% occupancy 12 spaces € 375 ADR(1) New opening 2023 6 new openings in 2024 Castellana 85. 275 desks Plaza Cataluña 9. exp. 80 desks Plaza Cataluña 9 has received the Architizer A+ Award for the best co-
Slide 20: Logistics national footprint
A well-grounded present | Logistics NATIONAL FOOTPRINT IN THE MAIN LOGISTICS HUBS sqm Madrid-A2 Madrid-A4 Barcelona(1) Sevilla País Vasco Valencia Zaragoza Lisbon In operation 857,134 154,511 889,103 139,218 99,491 61,604 21,579 45,171 Near and mid term pipeline 100,684 - - 6,391 - - - 131,678 Non-c
Slide 21: A strategic stake - CILSA
A well-grounded present | A strategic stake - CILSA WITH A 48.5% STAKE IN ZAL PORT € 74.8 m 757,003 sqm GRI Top tier stock € 38.8m tenants FFO(1) FY23 figures 21 (1) After reducing leasehold concession charge
Slide 22: Logistics assets - A2 and Barcelona
A well-grounded present | Logistics San Fernando, A2 Meco, A2 Cabanillas Park I, A2 Cabanillas, A2 Azuqueca, A2 ZAL Port, Barcelona 22
Slide 23: Logistics assets - A4, Sevilla, Valencia
A well-grounded present | Logistics Seseña, A4 Getafe, A4 Pinto II, A4 Gavilanes, A4 ZAL, Sevilla Ribarroja, Valencia 23
Slide 24: Shopping Centers
A well-grounded present | Shopping Centers URBAN AND DOMINANT ASSETS OFFERING NATIONAL SCALE IN HIGH GDP/CAPITA AREAS Muy grande sqm Urban Dominant(1) Secondary Spain 232,276 186,045 20,878 Lisbon Portugal - 60,089 - by GAV Other Spain By Type By location Muy grande • Lisboa 21% • Valencia 11% • Urb
Slide 25: Shopping Centers assets
A well-grounded present | Shopping Centers Marineda, A Coruña Almada, Lisbon Arturo Soria, Madrid Larios, Málaga Arenas, Barcelona Porto Pi, Mallorca 25
Slide 26: Shopping Centers assets
A well-grounded present | Shopping Centers Artea, Bilbao Saler, Valencia Tres Aguas, Madrid X-Madrid, Madrid Centro Oeste, Madrid Callao, Madrid 26
Slide 27: Our clients - Logistics and Shopping Centers
A well-grounded present | Our clients Logistics Shopping Centers 27
Slide 28: GAV summary FY23
A well-grounded present | GAV summary FY23 Annual gross rents 255 80 126 - 14 476 Gross yield 4.7% 5.6% 6.1% - - 5.1% 11,270 10,597 6,191 GAV TOTAL with minority stakes Shopping centers 2,006 Minority stakes 1,410 Data Centers Logistics Offices Other(1) TOTAL 648 673 342 28 (1) Other includes hotels
Slide 29: Occupancy and WAULT 3M24
A well-grounded present | Occupancy and WAULT(1) 3M24 98.4% 96.0% 97.6% n.a. 95.8% Average 10.8 occupancy 92.2% 6.4 3.3 3.2 3.2 Average 2.2 WAULT Offices Logistics Shopping centers Data Centers Other 29 (1) WAULT: weighted average unexpired lease term to 1st break, calculated as of 31st March 2024
Slide 30: Lease maturity 3M24
A well-grounded present | Lease maturity 3M24 Total 4% 2% 6% % of total 2024 12% contracted 11% 6% 4% rents 2025 21% 12% 4% 4% 2026 20% 6% 4% 3% 2027 13% 25% 4% 5% >2028 34% Offices Logistics Shopping Centers % of total for each 42% 42%42% segment 26%26%26% 26% 26%26% 27%27% 27% 24%24% 24% 20%20% 21
Slide 31: Sound financial structure
72 727 711 600 2 29 602 150 A well-grounded present 2 | Sound 502 financial structure 182 2 725 FINANCIAL DISCIPLINE: LONG MATURITIES AND HEDGED DEBT 302 2 600 800 100 500 600 35.0% 2.38% 4.9 90.6% 500 99.7% € 4,065m 187 € 1,393m LTV Average Interest Years Non-mortgage debt Fixed Net financial 17 Li
Slide 32: Shareholder's return
A well-grounded present | Shareholder’s return +8.8% +1.4% +7.1% +4.7% (1.0%) +15.2% 16.11 15.39 15.46 15.67 15.08 +21.6% 14.81 +1.8bn € p.s +17.2% 13.25 +1.19 of dividends distributed Total +9.1% 11.23 shareholder’s since IPO return 9.85 10.50 Current 9.10 As a consequence share price of BBVA NTA p
Slide 33: An exciting future
AN EXCITING FUTURE
Slide 34: Brief history of the company
An exciting future | Brief history of the company 2014 2015 2016 2018 2019 2020 2021 2022 2023 2024 Acquisition Acquisition of 3 assets Value creation of Tree Sale of in Portugal Sale of program in portfolio non-core (€ 112m) office Non-core Sale Non-core Non-core offices and (888 BBVA Acquisition A
Slide 35: Main features of MERLIN Data Center
An exciting future | Data centers | Main features of MERLIN Data Center 99.9999% Estimated “six nines” Leader in energy Zero water cooling 100% renewable of availability efficiency with 1.15 (WUE of 0 liters/kWh) energy for carbon annualized PUE, which Savings of ca. 1.4 bn l/year neutral operations
Slide 36: MERLIN investment strategy in DCs
An exciting future | Data centers | MERLIN investment strategy in DCs • 100% ownership of the assets • Design & Construction management • 100% of lease agreements cash-flows • Technological expertise • Local know-how • Staff training Spain 50% • Local staff for the development 50% and project manage
Slide 37: Main players in Spain
An exciting future | Data centers | Main players in Spain EXCELLENT ENTRY POINT FOR MERLIN WITH NO RELEVANT PLAYERS IN THE MARKET MAIN DC OPERATORS Current market size Under construction Future market size # Operator (MW) / equipment (MW) (MW) 51 1 MERLIN 9 260(1) (just equipment) 2 Equinix 29 18 47
Slide 38: The Iberian Peninsula is a strategic enclave
An exciting future | Data centers | The Iberian Peninsula is a strategic enclave THE IBERIAN PENINSULA IS SET TO BECOME THE HUB FOR DATA CENTERS FOR CONTINENTAL EUROPE AND AFRICA, THANKS TO THE SUBMARINE INFRASTRUCTURE THAT CONNECTS THE IBERIAN PENINSULA WITH NORTH AMERICA, EUROPE, SOUTH AMERICA AND
Slide 39: Data centers portfolio overview
An exciting future | Data centers | Portfolio overview 260 MW LICENSED DC WITH POWER IN SPAIN AND PORTUGAL Phase I Phase II 60 MW 200 MW operating DC Development DC 24 MW + 94 MW Bilbao - Arasur 16 MW + 6 MW Barcelona - PLZF Biggest DC campus in Spain In operation In operation / Under development 20
Slide 40: Phase I - Operating DC (60 MW)
An exciting future | Data centers | Phase I - Operating DC (60 MW) Madrid - Getafe Barcelona - PLZF Bilbao - Arasur IT capacity 20 MW 16 MW 24 MW Electricity (scheduled) Equipment 8 MW in 2024 18 MW in 2024 to be received 16 MW in 2024 12 MW in 2025 6 MW in 2025 Bookings 70% 100% 100% 40
Slide 41: Main highlights of phase I
An exciting future | Data centers | Main highlights of phase I Delay in the Capex increase due Phase I extended Expected YoC electrification of sites to Direct Liquid Cooling (DLC) to 60 MW maintained €m 163 565 14.4% Stabilized GRI 144 YoC 258(1) >10% CAPEX Stabilized NOI YoC FY23 Invested 2024 202
Slide 42: Phase II - DC under development
An exciting future | Data centers | Phase II - DC Under development 200 MW Key 2024 Milestones fully licensed and electrified Under development 100 MW +94 MW +6 MW Construction Begining of works in Lisbon - VFX in Bilbao - Arasur in Barcelona - PLZF tendering (expected in 4Q 24) (extension) (repower
Slide 43: MERLIN's scale is second to none
An exciting future | Logistics | MERLIN’s scale is second to none THE LARGEST PLAYER IN THE IBERIAN PENINSULA Logistics footprint under management (million sqm) 2.8 x1.8 1.5 1.4 1.0 0.9 0.8 0.6 43
Slide 44: MERLIN anticipated the logistics boom
An exciting future | Logistics | MERLIN anticipated the logistics boom MERLIN HAS SECURED THE BEST LOCATIONS AT A COMPELLING YoC THANKS TO AN EXCELLENT ENTRY POINT Prime Yields evolution Transacted volume (€m) 2,873 2,611 1,562 1,658 1,585 1,150 789 854 854 5.8% 604 5.3% 5.3% 2012 2013 2014 2015 201
Slide 45: Logistics roll-out: near term
An exciting future | Logistics | Logistics roll-out: commercialization & pending capex NEAR TERM 47k sqm delivered and let 113k sqm with agreed Head of Terms 28k sqm speculative Cabanillas Park II 47k sqm To be delivered by 58k sqm 2025 San Fernando III 14k sqm Lisboa Park 28k sqm Total remaining in
Slide 46: Logistics roll-out: mid and long term
An exciting future | Logistics | Logistics roll-out: commercialization & pending capex MID & LONG TERM 416k sqm Mid & long term pipeline with 98k sqm under HoT Pending Capex Cabanillas Park II 56k sqm Azuqueca III 53k sqm € 223m San Fernando III 57k sqm Lisboa Park 30k sqm (2H25) Valencia-Bétera Exp
Slide 47: Offices | A strategic stake - DCN
An exciting future | Offices | A strategic stake - DCN 47
Slide 48: A strategic stake - DCN
An exciting future | Offices | A strategic stake - DCN THE MOST EXCITING RE-GENERATION PROGRAM IN EUROPE TIMELINE Urbanisation Delivery of the infrastructures first building Jul-2020 Jul-2021 Final approval Signing of of modification framework Tender of the Chamartín of PGM Madrid agreement station
Slide 49: Redevelopment: Plaza Ruiz Picasso
An exciting future | Offices | Redevelopment projects: Plaza Ruiz Picasso Case Study FULLY LET TO TIER-1 TENANTS GLA 36,899 sqm Post Refurbishment 5,323 sqm created 49
Slide 50: ESG - MERLIN's journey
An exciting future | ESG | MERLIN’s journey DISTINCT TRACK RECORD ON ESG SINCE INCEPTION, WHICH POISES MERLIN TO SUCCESSFULLY IMPLEMENT OUR PATHWAY TO NET ZERO 2015 2016 2018 Baseline 2020 2022 • Launch of the certification • Obtained first LEED v4 • Procurement of renewable • Pathway to Net Zero pr
Slide 51: Pathway to net zero
An exciting future | ESG | Pathway to net zero MERLIN LAUNCHED ITS PATHWAY TO NET ZERO IN 2022, ENSURING A BOTTOM-UP ANALYSIS TO SHAPE AND DEFINE THE PATHWAY The backbone of our strategy Sustainable Wellbeing Reshaping assets of people cities Pillars 1 Reducing 2 Reducing 3 Reducing 4 Offsetting ope
Slide 52: Project Sun
An exciting future | ESG | Project Sun Projects Capacity (Mwp) 28 14.9 executed executed 35 30.5 under execution under execution or to be executed # households(1) we can supply 6,467 executed 13,205 under execution 52 (1) Using as reference 3.49 MWh/year consumption of an average house in Spain
Slide 53: ESG Recognitions
An exciting future | ESG | Recognitions Inclusion for MERLIN B Average score B C 7.2 Top 1% A- 3rd year in a row in the Europe DJSI Financial Europe Global (negligible risk) +1st time in the World DJSI services average 83% 69% #1 Average peers: 69% Average sector: 37% IBEX-35 53
Slide 54: ESG Technology
An exciting future | ESG | Technology MERLIN IS FOCUSING ITS TECHNOLOGY EFFORTS THROUGH 3 PILLARS Deployment in our portfolio Mentoring Sponsoring Sensorization Proptech challenge MERLIN has invested in Fifth Wall, MERLIN teamed up with a venture capital proptech fund ISDI and Impact accelerator The
Slide 55: Contact
Paseo de la Castellana, 257 28046 Madrid +34 91 769 19 00 info@merlinprop.com www.merlinproperties.com
MERLIN Properties SOCIMI — Investor Presentation (July 2024) on 6ix