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Merlin Properties Socimi S.A.
Investor Presentation • Jul 19, 2024
1857_rns_2024-07-19_706e8313-5740-40ee-8637-44d9dfc5feaf.pdf
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Webcast: https://streamstudio.world-television.com/1364-2525-40144/en
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Sólido primer semestre para MERLIN Properties, con un crecimiento en rentas brutas del 4,4% hasta superar los €248 millones
- Buen rendimiento operativo, con un crecimiento de las rentas comparables (LfL) del 2,8% y un release spread positivo en todas las categorías de activos.
- El EBITDA alcanzó los € 188,4 millones, +3,7% comparado con 1S 2023.
- Mejora de beneficio operativo ("FFO") hasta € 147,8 millones.
- Se revierte el deterioro en valoraciones causado por el incremento de tipos gracias a la revalorización de los centros de datos (+13,3% vs. FY23).
- S&P mejora la calificación de la Compañía a BBB+ con perspectiva estable, gracias al menor endeudamiento y un mejor perfil de generación de flujos.
- El valor neto de activos según EPRA ("EPRA NTA") se sitúa en 15,11 euros por acción, tras repartir 24 céntimos de dividendo en el segundo trimestre.
Madrid, 19 de julio – MERLIN Properties ha cerrado el primer semestre de 2024 con unos ingresos totales de €253,7 millones (incluyendo rentas brutas de € 248,2 millones), un EBITDA de €188,4 millones, un beneficio operativo de €147,8 millones (31 céntimos de euro por acción) y un beneficio neto contable de €132,8 millones.
El valor bruto de activos (GAV) se sitúa en € 11.375 millones, sin caída de valoraciones gracias a la revalorización de los centros de datos (+13,3% vs. FY23). El valor neto de activos asciende a €7.097 millones (€15,11 por acción), con un ligero aumento del +0,2% respecto a diciembre 2023.
El nivel de endeudamiento ("LTV") se sitúa en 35,6% (vs. 35,0% en FY23), con una posición de liquidez de €1.572 millones. El 97,2% de la deuda es a tipo fijo y el vencimiento medio de la deuda es de 4,8 años.
Evolución del negocio
En oficinas la compañía continúa creciendo en ingresos comparables (+1,8%) y en renta de renovaciones (+1,1%). La ocupación se mantiene estable, ligeramente al alza, con previsión de superar nuestro máximo histórico a fin de año, alcanzando el 93%. Destaca la recuperación de la A-1 (+70.000 m2 desde 2018), gracias a iniciativas como MERLIN Hub y la proximidad de la Operación Chamartín.
Magnífico comportamiento de la cartera logística, un semestre más, con un crecimiento de las rentas comparables del +4,1%, un incremento de rentas en renovaciones (+2,9%) y una ocupación del 97,6% que mejorará de cara a final de año. En el semestre se ha firmado un proyecto llave en mano con Total para la entrega de una nave en 18.133 m2 en Cabanillas Park II y con XPO para una nave de 2.477 m2 en Sevilla ZAL. De la cartera de suelo (511.000 m2 ), 33.000 m2 se encuentran prealquilados y 179.000 m2 con cartas de interés firmadas, que irán cristalizando en pre-alquileres en los próximos meses.
Magnífico rendimiento operativo en centros comerciales, con fuerte crecimiento de ingresos comparables (+3,3%) y de renta en las renovaciones (+6,4%). La tasa de esfuerzo sigue en mínimos históricos (11,5%) y las afluencias (+3,3%) y ventas (+5,0%) en niveles superiores a 2023.
Dentro de la Fase II de data centers (200 MW), la licencia de construcción de LIS01-VFX ya ha sido obtenida y cuenta con la potencia garantizada para el desarrollo de un campus de inteligencia artificial de 100MW. BIO02-ARA dispone de potencia garantizada para otros 94MW adicionales y la licencia de construcción se espera obtener en 4T24.
Valor de la cartera de activos
El valor bruto de los activos ("Gross Asset Value" o "GAV") de MERLIN asciende a €11.375 millones a 30 de junio de 2024, según tasaciones realizadas por Savills, CBRE y JLL. Por categoría de activos, destaca el valor creado en los desarrollos de centros de datos y logística (€53,5m), que compensa la pérdida de valor de la cartera operativa (€48,7m). El valor neto de activos asciende a €7.097 millones, equivalentes a €15,11 de EPRA NTA por acción.
Acerca de MERLIN Properties
MERLIN Properties SOCIMI, S.A. (MC:MRL) es una de las mayores compañías inmobiliarias cotizadas en la Bolsa española. Está especializada en la promoción, adquisición y gestión de activos terciarios en la península ibérica, invirtiendo principalmente en oficinas, centros comerciales, plataformas logísticas y centros de datos en los segmentos Core y Core Plus. MERLIN Properties forma parte de los índices de referencia IBEX 35, Euro STOXX 600, FTSE EPRA/NAREIT Global Real Estate Index, GPR Global Index, GPR-250 Index, MSCI Small Caps y DJSI.
Visite www.merlinproperties.com para obtener más información sobre la compañía.
Si desea más información, póngase en contacto con:
Nuria Salas, [email protected], +34 629 56 84 71 Sarah Estébanez, [email protected], +34 636 62 80 41
6M24 RESULTS PRESENTATION
22 JULY 2024
This presentation has been prepared by MERLIN Properties SOCIMI, S.A. (the "Company") for informational use only. The information contained in this presentation does not purport to be comprehensive or to contain all the information that a prospective purchaser of securities of the Company may desire or require in deciding whether or not to purchase such securities. The information contained in this document is subject to change, verification and completion without notice. Neither the Company nor any of affiliates, advisors or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of any information contained or referred to in this document. Each of the Company and its affiliates, advisors or agents expressly disclaims any and all liabilities which may be based on this document, the information contained or referred to therein, any errors therein or omissions therefrom. Neither the Company, nor any of its affiliates, advisors or agents undertakes any obligation to provide the recipients with access to additional information or to update this document or to correct any inaccuracies in the information contained or referred to therein.
Certain statements in this document regarding the market and competitive position data may be based on the internal analyses of the Company, which involve
certain assumptions and estimates. These internal analyses may have not been verified by any independent sources and there can be no assurance that the assumptions or estimates are accurate. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in this presentation. Additionally, certain information contained herein may be based on management accounts and estimates of the Company and may have not been audited or reviewed by the Company's auditors. Recipients should not place undue reliance on this information. The financial information included herein may have not been reviewed for accuracy or completeness and, as such, should not be relied upon.
This information is provided to the recipients for informational purposes only and recipients must undertake their own investigation of the Company. The information providing herein is not to be relied upon in substitution for the recipient's own exercise of independent judgment with regard to the operations, financial condition and prospects of the Company.
The distribution of this presentation in some jurisdictions may also be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. The securities of the Company have not been and, should there be an
offering, will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act"). Such securities may not be offered or sold in the United States except on a limited basis, if at all, to Qualified Institutional Buyers (as defined in Rule 144A under the Securities Act) in reliance on Rule 144A or another exemption from, or transaction not subject to, the registration requirements of the Securities Act. The securities of the Company have not been and, should there be an offering, will not be registered under the applicable securities laws of any state or jurisdiction of Canada or Japan and, subject to certain exceptions, may not be offered or sold within Canada or Japan or to or for the benefit of any national, resident or citizen of Canada or Japan. THIS PRESENTATION DOES NOT
CONSTITUTE OR FORM PART OF ANY OFFER FOR SALE OR SOLICITATION OF ANY OFFER TO BUY ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT TO PURCHASE SHARES. ANY DECISION TO PURCHASE SHARES IN ANY OFFERING SHOULD BE MADE SOLELY ON THE BASIS OF PUBLICLY AVAILABLE INFORMATION ON THE COMPANY.
This presentation may include forwardlooking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the financial position, business strategy, management plans and objectives for future operations of the Company are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause such actual results, performance or achievements, or industry results, to be materially different from those expressed or implied by these forward-looking statements. These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of the Company and the environment in which they expect to operate in the future.
Forward-looking statements speak only as of the date of this presentation and the Company expressly disclaim any obligation or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation, any change in their expectations or any change in events, conditions or circumstances on which these forward-looking statements are based.
In reviewing this presentation, the recipient is agreeing to, and accepting, the foregoing restrictions and limitations.
DISCLAIMER
- 6M24 Financial results
- Offices
- Logistics
- Shopping centers
- Valuation and debt position
- Logistics Best Plan
- Digital Infrastructure Plan
- Closing remarks & Outlook
Ismael Clemente CEO
Miguel Ollero COO
Operating performance
-
-
• Strong operating performance overall, with solid LfL rental growth (+2.8%), positive release spread and high occupancy levels • Continued performance in Offices with robust release spreads, good LfL growth and guiding to higher occupancy in FY24 (ca. 93%) • Good dynamics in Logistics with +4.1% LfL and positive release spread (+2.9%). Virtual full occupancy (97.6%), set to increase towards year-end • Shopping centers continue outperforming with +6.4% release spread and 96% occupancy, while OCR stands at a record-low 11.5%
Financial performance
• Robust financial position: LTV at 35.6%, 97.2% fixed interest rate, no debt maturities until November 2026 and € 1.6bn liquidity
- • € 0.31 FFO per share, +0.3% versus 6M23
- • Flat valuations thanks to Data Centers uplift (+13.3% in 6M24)
- • S&P has upgraded the Company's rating to BBB+ thanks to a lower leverage and improved cash flow generation profile
Value creation
- • € 90m non-core disposals either signed or in advanced negotiations at a high single digit premium to GAV
• Best II & III: 212k sqm of the Landbank with pre-let or agreed HoT. WIP will continue adding to logistics revenues until 2027
• Mega Plan:
- • Current focus is equipment of Phase I and preparatory works for construction of Phase II
- • Ongoing conversations on pre-bookings for Phase II
- • Licensing of new projects on track:
- • BIO-ARA02: Construction permit expected to be received in 4Q24
- • Value creation: early stages of appraisal uplift for Phase I. Phase II currently at historical land cost
• Lisbon-VFX: Construction permit received. Urbanization by end of August. Land compaction and piloting to start in September.
Key highlights | Overview
FINANCIAL RESULTS
(1) Net of incentives
(2) Excludes non-overhead costs items (€ 5.7m) plus LTIP accrual (€ 1.4m)
(3) FFO equals EBITDA less net interest payments, less minorities, less recurring income taxes plus share in earnings of equity method APM: definitions and reconciliation of APMs to the latest audited financial accounts can be found on page 51 of https://ir.merlinproperties.com/wp-content/uploads/2024/07/Results-report-6M24.pdf
| M24 | 6M23 | YOY |
|---|---|---|
| 48.2 | 237.8 | +4.4% |
| 34.5 | 222.4 | +5.4% |
| 08.6 | 201.1 | +3.7% |
| 88.4 | 181.7 | +3.7% |
| 5.9% | 76.4% | |
| 47.8 | 147.4 | +0.3% |
| 9.5% | 62.0% | |
| 42.5 | 140.8 | +1.2% |
| 32.8 | (47.5) | |
| .097 | 7,216 |
| رامج | ||
|---|---|---|
| ( X |
||
| 5 | C |
| (€ million) | 6M24 | 6M23 | YoY |
|---|---|---|---|
| Gross rents | 248.2 | 237.8 | +4.4% |
| Gross rents after incentives | 234.5 | 222.4 | +5.4% |
| Net rents(1) | 208.6 | 201.1 | +3.7% |
| EBITDA(2) | 188.4 | 181.7 | +3.7% |
| Margin | 75.9% | 76.4% | |
| FFO(3) | 147.8 | 147.4 | +0.3% |
| Margin | 59.5% | 62.0% | |
| AFFO | 142.5 | 140.8 | +1.2% |
| IFRS net profit | 132.8 | (47.5) | |
| EPRA NTA | 7,097 | 7,216 | |
| (€ per share) | |||
| FFO | 0.31 | 0.31 | +0.3% |
| AFFO | 0.30 | 0.30 | +1.2% |
| EPS | 0.28 | (0.10) | |
| EPRA NTA | 15.11 | 15.36 | (1.6%) |
6M24 Financial results
6M24 Financial results | GRI bridge
6M24
248.2
Balance acquisitions, disposals & other
+3.9
STRONG OPERATING PERFORMANCE RESULTING IN A GOOD RENTAL GROWTH (+2.8%)
(1) WAULT by rents means the weighted average unexpired lease term to first break, calculated as of 30th June 2024
Offices | GRI bridge and breakdown
(1) Portfolio in operation for 6M23 (€ 123.2m of GRI) and for 6M24 (€ 125.5m of GRI)
MADRID OVERTAKING BARCELONA IN OCCUPANCY
3 new openings in 2H24
28,845 sqm 2,868 desks 82% occupancy € 399 ADR(1) 13 spaces
KPIs
3 NEW SPACES OPENED IN THE SEMESTER PLUS 3 SPACES TO OPEN BEFORE YEAR-END
El Viso 70 desks Torre Glòries (extension) 75 desks Plaza Cataluña (extension) 80 desks
Plaza Ruiz Picasso 358 desks Castellana 280 198 desks Campo de las Naciones 169 desks
OCCUPANCY IN THE A-1 HAS INCREASED BY CA. 80K SQM SINCE 2018, EQUIVALENT TO 18% OCCUPANCY GAIN
Largest Business Hub concept in Europe
25k sqm Vacant FY24(1)
LOGISTICS
(1) Portfolio in operation for 6M23 (€ 39.5m of GRI) and for 6M24 (€ 41.1m of GRI)
STRONG PERFORMANCE
Stock 765,006 sqm
Third parties stock (ground leases) 156,306 sqm
| Contracted sqm 115,953 |
Release spread (1.7%) |
# contracts 32 |
|||||
|---|---|---|---|---|---|---|---|
| Occupancy by area | (48 bps) | 97.9% | |||||
| €m | 98.4% | 6M24 | 6M23 | YoY | |||
| Gross rents | 37.7 | 37.9 | (0.3%) | ||||
| EBITDA | 36.4 | 36.4 | - | ||||
| FFO(1) | 19.7 | 20.0 | (1.5%) |
Stock under management 921,312 sqm
Tenants
(1) After deducting leasehold concession charge
TENANT SALES SURPASSING PRE-COVID LEVELS WHILE MAINTAINING HISTORICALLY LOW OCR AT 11.7%
(1) Portfolio in operation for 6M23(€ 61.3m of GRI) and for 6M24 (€ 63.3m of GRI)
VIRTUALLY FULL OCCUPANCY (96.0%)
Contracted sqm
VALUATION AND DEBT POSITION
PORTFOLIO YIELDS OVERALL ABOVE 5%
(1) GAV of WIP projects included under its respective asset class for LfL purposes (2) Including equity method (3) Based on passing rent
Offices Shopping centers
Data Centers
| 30/06/2024 | 31/12/2023 | |
|---|---|---|
| 30/06/2024 | 31/12/2023 | |
|---|---|---|
| Net debt | € 4,157m | € 4,050m |
| LTV | 35.6% | 35.0% |
| Average cost (spot) | 2.49% (2.77%) | 2.38% (2.71%) |
| Fixed rate debt | 97.2% | 99.7% |
| Average maturity (years) | 4.8 | 5.1 |
| Liquidity(1) (€ million) | 1,572 | 1,309 |
| Rating | Outlook |
|---|---|
| BBB+ | Stable |
| Baa2 | Positive |
(€ million) Unsecured loans Unsecured bonds Secured bank loans
2025 REFINANCING ALREADY TACKLED, DEMONSTRATING ONCE AGAIN A PRO-ACTIVE LIABILITY MANAGEMENT
Logistics Best Plan | Short term: commercialization & pending capex
33k sqm pre-let 73k sqm agreed HoT 57k sqm under commercialization
To be delivered by 2H25
Total remaining investment
€ 91m
Expected stabilized GRI
€ 9.5m
YoC(1) 7.5%
SHORT TERM
Logistics Best Plan | Mid & long term: commercialization & pending capex
349k sqm Mid & long term pipeline
w/106k sqm with agreed HoT
Pending Capex € 175m
Expected stabilized GRI € 19.7m
YoC(1) 7.2%
Lisboa Park
DIGITAL INFRASTRUCTURE PLAN (MEGA)
20 MW
260 MW DC CAPACITY WITH POWER IN SPAIN AND PORTUGAL
Phase II 200 MW Development DC
100 MW
Licensed DC development Biggest DC campus in Portugal In operation
| Biggest DC campus in Spain | |||
|---|---|---|---|
| Barcelona - PLZF | Bilbao - Arasur | Madrid - Getafe | |
| In operation | In operation / Under development | In operation | |
| IT capacity | 16 MW | 24 MW | 20 MW |
| Electricity supplied |
(phased) | ||
| Equipment | 10 MW in 4Q24 | 10 MW in 4Q24 | 6 MW in 4Q24 |
| to be received | +6 MW in 1Q25 | +14 MW in 2Q25 | +14 MW in 1Q26 |
| Bookings | 100% | 100% | 70% |
INITIAL DATA CENTER PHASE DEVELOPED ACROSS THREE SITES AND 90% BOOKED BY 1H24
INVESTMENT AND STABILIZED GRI ALIGNED WITH PREVIOUS GUIDANCE, DESPITE DEPLOYMENT DELAYS
Digital Infrastructure Plan | Phase II (200 MW): Bilbao-Arasur extension (94 MW)
MERLIN'S DC CAMPUS IN THE NORTH OF SPAIN, WITH 118 MW IT FOR NOW
Digital Infrastructure Plan | Phase II (200 MW): Lisbon-DC campus (100 MW)
LARGEST DATA CENTER CAMPUS IN PORTUGAL WITH 100MW FOR NOW
Digital Infrastructure Plan | Phase II overview
TIME-TO-MARKET IS THE KEY DRIVER FOR PHASE II
(1) Extension license for BIO02-ARA already submitted (2) Including estimated land value (3) In line with 1H24 audited accounts
Current focus
Snapshot of MERLIN's Data Center plan Installed Capacity, MW
HIGHLY VISIBLE NEAR-TERM CAPACITY AND SIZEABLE IDENTIFIED PIPELINE TO SUSTAIN FUTURE GROWTH
60 Phase I Operating Capacity
380 Identified Future Pipeline with power
Arasur Pipeline
Digital Infrastructure Plan | Long term future pipeline: Bilbao-Arasur extension
180MW ADDITIONAL IT CAPACITY THROUGH EXTENSION IN ADJACENT PLOTS OWNED BY MERLIN…
+80 MW IT repowering of Lisbon DC Campus
+120 MW IT extension in adjacent plot
Digital Infrastructure Plan | Long term future pipeline: Lisbon-DC Campus repowering opportunity and extension
…80MW REPOWERING PLUS 120MW EXTENSION IN ADJACENT PLOT OWNED BY MERLIN
CLOSING REMARKS & OUTLOOK
Operations
• Strong performance in all key financial and operating metrics (LfL rental growth, occupancy, release spread
• Healthy occupancy levels in all three asset classes with offices performing very solidly and virtual y full occupancy
- and FFO generation)
- in logistics and shopping centers
Outlook
• We estimate higher occupancy in offices (93%) and full occupancy in logistics ( 99%), with shopping centers flat (96%)
• Uneventful period in terms of debt with no maturities until November 2026, following refinancing of May 2025
- • FFO 2024 guidance confirmed at €0.59 p.s.
- • Dividend recommendation to BoD at € 0.44 p.s. for fiscal year 2024
Paseo de la Castellana, 257
28046 Madrid
+34 91 769 19 00
www.merlinproperties.com