MERLIN Properties reaches cruise speed in 1Q 2016: reports an EBITDA of € 67 million and starts asset rotations
MERLIN Properties has released its 1Q 2016 consolidated financial statements with total revenues of € 78.4 million (+141% versus 1Q 2015) and a recurring EBITDA of € 67.4 million (+127%). Consolidated net profit, in accordance with IFRS, amounts to € 45.2 million (+131%).
EPRA NAV, according to EPRA recommendations, amounted to 3,218.3 million euros (9.96 euros per share). It is important to highlight that no new appraisal for the assets has been carried out this quarter as, in accordance with the Company’s policy, new appraisals of the portfolio are carried out on a semi-annual basis. MERLIN portfolio generates annualized gross rental income above € 310 million.
The Company has accepted offers for more than 30 assets, for an aggregate consideration above € 50 million, and will use most of the proceeds to early repay debt.
During this quarter, MERLIN Properties has acquired assets for almost € 150 million, including the acquisition of 2 office buildings in Lisbon and 3 logistics assets in Madrid.
Following these acquisitions, MERLIN owns a portfolio of 1,028 assets, as of March 31, 2016, with a total gross leasable area of 1.9 million sqm. If minority stakes are added, MERLIN owns 1,077 assets with a GLA of 2.1 million sqm. Average occupancy is 94.5%, with an average EPRA gross yield of 5.3%.
MERLIN Properties leasing activity continues at a good pace, with total contracted area of 155,588 sqm in the period. For offices, the main events have been the new lease signed with Amazon in Castellana, 83-85 as well as the renewal with Procter & Gamble in Avenida de Bruselas, 24. For shopping centers, the most relevant event has been the new lease signed with Leroy Merlin in Marineda. For logistics it is noteworthy the pre-let signed with Luis Simões in Cabanillas II (48,000 sqm of GLA), raising the level of pre-lets to 60%, one year ahead of construction works ending.