MERLIN Properties reports solid first half results
MERLIN Properties has released its 1H 2016 consolidated financial statements with total revenues of € 154.6 million (+136% versus 1H 2015) and a recurring EBITDA of € 135.5 million (+130%). Consolidated net profit, in accordance with IFRS, amounts to € 211.1 million (+77%). The Company has reached a FFO per share level of 31 cents per share, representing a sizeable increase of 32% as compared to 1H 2015, and provides evidence of the company’s ability to deploy the equity provided creating value to shareholders.
These results reflect the outstanding performance of the portfolio. This semester has set a record in terms of leasing activity (over 300,000 sqm contracted). Occupancy has grown to reach 95.5%, and most notably, like for like rental growth has been 6.2%. For offices, the main events have been the renewal of Uría Menendez in Príncipe de Vergara 187, the new lease signed with Porsche in Padres Dominicos as well as the new lease signed with Cellnex in Juan Esplandiú, 11-13. For shopping centers, the most relevant event has been the new lease signed with Leroy Merlin in Marineda and the renewal of Primark in Larios. 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.
Following the appraisal carried out by CBRE and Savills, the gross asset value (GAV) of the portfolio amounts to over 6.5 billion euros, growing 7.8% as compared to December. EPRA net asset value (EPRA NAV) is above 3.4 billion euros, or 10.60 cents per share, compared to 9.85 in December (+7.6%).
MERLIN capital structure captures the intense work performed in the period, starting with the Testa refinancing, followed by an unsecured term loan and ended with the successful inaugural bond issuance completed in April. LTV is now reduced to 47.9%, while average maturity has been extended (6.6 years) and all financing ratios are improved. Total return to shareholders in the period, measured as dividend distributed plus EPRA NAV growth, has been 8.7%.
MERLIN Properties has also announced the acquisition of Saba Parques Logisticos (SPL). SPL is a reference company in logistics in Spain. Renowned for its broad footprint, SPL owns landmark assets such as the Parc Logistic de la Zona Franca (PLZF) in Barcelona or ZAL Sevilla. This will add 375,000 sqm of GLA to MERLIN logistics portfolio, out of which 153,000 sqm are in PLZF (with tenants such as Correos, Air Pharma, Logista, ASM and Cellnex) and 106,000 sqm in ZAL port of Sevilla (tenants such as Decathlon, Airbus or Norbert Dentressangle). Other assets include 83,000 sqm in Vitoria, a logistics park to be developed in Lisbon and land bank for future construction. This transaction reinforces MERLIN consolidated position in Barcelona logistics, being the dominant player in the first isochrone, and expands the footprint on an Iberian scale towards the south (Sevilla), north (Vitoria) and west (Lisbon). The transaction was given clearance by antitrust authorities this week and is due to be completed this quarter.
About MERLIN Properties
MERLIN Properties SOCIMI, S.A. (MC:MRL) is the largest real estate company trading on the Spanish Stock Exchange, with a market capitalization of approximately 3,200 million euros, specialized in the acquisition and management of commercial property in the Iberian region. MERLIN Properties mainly invests in offices, shopping centers and logistics facilities, within the Core and Core Plus segments, forming part of the benchmark IBEX 35, Euro STOXX 600, FTSE EPRA/NAREIT Global Real Estate, GPR Global Index, GPR-250 Index, and MSCI Small Caps indices.