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Merlin ends the first quarter with liquid funds of €66.6 million

Merlin Properties ended the first quarter of 2017 with a total of 120 million euros, a recurrent EBITDA of 99.4 million and a new consolidated profit of 66.6 million euros. 

The net asset value, according to EPRA recommendations, rose to 5.335 million euros (11.36 euros per share).

Merlin Properties has formalised leasing contracts in the first quarter for a total area of 276,646 m2, “with a general rise in rents”, according to the company’s release. Gross annual rents for the company came to 463 million euros, with an occupancy rate of 92.3%.

 

3.6% increase in office rents

The SOCIMI’s offices portfolio has performed well with an increase in rents of 3.6% throughout this period. By market, the rise was 3.6% in Madrid, 2.6% in Barcelona and 7.1% in Lisbon. The occupancy rate has also grown, from 87.9% to 88.5%.

During the quarter, Merlin acquired Torre Glòries in Barcelona, of which the remodelling will begin soon. The building was selected in April to represent Barcelona’s entry in the European Agency of Medicines competition to locate their head offices out of London. The company has informed us that works are also in progress at the Avenida Europa, leased in advance to Renault, at Puerta de las Naciones, leased to Ferrovial, and Balmes in Barcelona.  

Shopping Centres: increases in visitors, rents and occupancy rates

The shopping centre portfolio has recorded a 3.9% increase in visitor numbers and rent increases of 9.7% in the term’s turnover. The occupancy rate went from 99.6% to 90.1%.

Works for the creation of a new sporting themed zone at the Marineda shopping centre are almost complete, with a pre-rent level of 82%. Also of note the renting to Nickelodeon of 5,100 m² in Thader (Murcia), which will be the first entertainment centre of this kind in Spain.

Good time for Logistics

The success that the logistics moment is experiencing at the moment is reflected in Merlin’s portfolio in that the occupancy rate has grown from 95.4% to 97% and rent increases in the period have been 8%.

In May, the logistics park Merlin Cabanillas, inaugurated in May, with 202,600 square metres of gross lettable area. The park is the largest logistics development in Spain since 2007 and was fully occupied before opening.

Remuneration for the Shareholder

Merlin Properties has announced that it will remunerate its shareholders on the 18 May with a distribution, both dividends and premium refund, of 20 céntimos per share. The company is maintaining its estimate for distribution during the 2017 financial year at 207 million euros or 44 céntimos per share, an increase of 10% over 2016.