MERLIN Properties continues delivering solid results

MERLIN Properties continues delivering solid results

• Gross rents: €335.0 million (+7.7% vs. 9M21)
• EBITDA: € 249.4 million (+17.0% vs. 9M21)
• Operating profit (FFO): € 224.1 million (+11.0% vs. 9M21)
• Net asset value (NTA) per share: € 16.52 (+5.3% vs. 9M21)
• FFO exceeds €224 million (equivalent to €48 cents per share) and is on track to exceed the revisited guidance for 2022 (€60 cents per share).
• Strong growth in all key financial and operating metrics such as like-for-like rents (+7.0% vs. 9M21) or FFO (+11.0% vs. 9M21).
• LTV at 31.0%, down 821 bps vs. December 2021 after distributing more than €460 million in cash dividend YTD
• Interim dividend of €20 cents per share, to be paid on December 2nd. Total distribution in 2022 at €1.20 per share

Madrid, November 10th. – MERLIN Properties closed 9M22 with total revenues of €340.9 million (o/w gross rents of €335.0 million), EBITDA of €249.4 million and FFO of €224.1 million (€48 cents per share).
The sale of the BBVA portfolio significantly reduced LTV, which stands at 31.0% (vs. 39.2% in 2021). Liquidity position of €1,294 million, with average debt maturity of 5.2 years and all interest rates fixed. This financial situation allows the company to navigate challenging times with relative peace of mind.

Offices

• Business performance

Strong increase in like-for-like rents (+5.6%) and release spread (+5.1%), thanks to higher occupancy and inflation indexation. Fifth consecutive quarter with increased occupancy (90.7%). In October, the Company signed a 13,899 sqm lease contract with EDP in Adequa 1 (A1 corridor, Madrid), that will positively impact guidance provided to market by 100bps (92.5% vs. 91.5%), taking office occupancy to pre-Covid levels one year earlier than planned.

• Landmark Plan

Only Plaza Ruiz Picasso left, with works progressing well.

Logistics

• Business performance

The logistics market continues to experience significant momentum, showing strong like-for-like rental growth (+9.0% vs. 9M21) thanks to rising occupancy, inflation, and capture of reversionary potential.

• Best Plan II & III

Cabanillas Park II A delivered and 100% let to Logista. In October, 45,241 sqm in Cabanillas Park I J delivered to DSV, marking the conclusion of Cabanillas Park I.

Shopping centers

• Business performance

Occupancy continues to grow, reaching 94.8%. Sales nominally above pre-Covid levels both on a YTD (+1.5%) and on a monthly basis (+6.1% vs. September 2019). The effort rate remains at very healthy levels (12.0%).

Mega Plan (Data Centers)

Works in Mega plan are progressing well, with Bilbao’s outer-shell already finished, Madrid outer-shell nearly finished and in Barcelona foundations ready. Deliveries expected between Q2 and Q3 of 2023.

Investment activity

During the quarter, the Company acquired 2 prime office assets for a total consideration of € 131.5m: Liberdade 195, a 16,510 sqm building located in the most exclusive address in Lisbon and a 3,665 sqm building adjacent to our Plaza Ruiz Picasso development in AZCA, Madrid.

About MERLIN Properties
MERLIN Properties SOCIMI, S.A. (MC:MRL) is the largest real estate company trading on the Spanish Stock Exchange. 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, MSCI Small Caps indices and DJSI.
Please visit www.merlinproperties.com to learn more about the company.

For further information please contact:
Nuria Salas, nsalas@tinkle.es, +34 629 56 84 71
Sarah Estébanez, sestebanez@tinkle.es, +34 636 62 80 41