VALUE CREATION PLANS FLAGSHIP LANDMARK I BEST II

Transcription

1 VALUE CREATION PLANS LANDMARK I BEST II FLAGSHIP

2 DISCLAIMER This presentation has been prepared by MERLÍN 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, and has not been verified by the Company or any other person. The information contained in this document is subject to change 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. 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3 CONTENTS Corporate Landmark I Plan Flagship Plan Best II Plan 3

4 CORPORATE

5 Corporate Strategy pillars A CLEARLY DEFINED STRATEGY INSPIRED BY THE BEST REIT PRACTICES Offices Breadth of prime space Madrid, Barcelona and Lisbon Shopping Centers Urban or Dominant National scale Core & Core Plus Spain & Portugal Best governance practices Investment grade capital structure Logistics National footprint One-stop shop solution for 3PL One of the world s most cost efficient REIT s Dividend policy: 80% of AFFO High Street Retail High triple net cash flow Inflation multiplier 5

6 Corporate Asset categories allocation QUICKLY APPROACHING THE TARGET ALLOCATION BY INCREASING EXPOSURE TO LOGISTICS M 18 PF (1) Target 5 % 14 % 12 % 14 % 3 % 20 % 69 % By GRI 18 % By GRI 45 % By GRI 20 % 40 % 20 % (1) 20 % Offices High Street Retail Shopping centers Logistics Other (2) (1) Pro-forma to include logistics WIP and office WIP (2) Other includes hotels, non core land and miscellaneous also includes rented residential 6

7 Corporate Growth Plans Offices LANDMARK I PLAN Upscaling refurbishments to create prime within the prime SELECTED DEVELOPMENTS 266m 115m Designed by signature architects Organic growth Internally funded Shopping Centers FLAGSHIP PLAN Converting our shopping centers in the flagship store of online retail DEVELOPMENT OF X A BRAND NEW CONCEPT Logistics BEST II PLAN Development of the best footprint in the Iberian market 254m Logistics include forward purchase, spec development and built to suit High Street Retail TREE Lever on inflation growth OTHER Capturing reversion 7

8 Corporate Growth Plans ( million) LANDMARK I PLAN FLAGSHIP PLAN BEST II PLAN Capex Invested Pending Total Invested Pending Total Invested Pending Total Refurbishment Development Total Capex (1) Rent YoC (2) 6.1% 6.5% 8.1% (1) Not including acquisition cost of assets under development (2) Rent divided by Capex plus acquisition cost of assets under development 8

9 Corporate Outlook 2018 Structure Higher critical mass will translate into lower overheads expense which will be reduced from 0.6% of NAV to 0.575% for 2018 and 2019 (0.55% from 2020 onwards) Prudent management of balance sheet to continue reducing leverage Investment activity Compelling, return-enhancing pipeline of ca. 500m Seeking to expand in logistics and add footprint in Portugal + 28m expected rents Divestment activity + 550m non-core disposal program: - Testa Residencial IPO - Aedas homes 1.7% - Selected non-core assets - 19m passing rents 9

10 Corporate Potential rental growth Not considering market rental growth nor inflation Including 6.2 from projects delivered in 3M18 ( m) +32% Gross rents % 0.85 (2) FFO per share /12/17 Reversionary potential Landmark I Flagship Best II Net acquisitions & disposals balance Potential Annual Gross rents (1) Includes Torre Glòries, Torre Chamartín, Adequa and X-Madrid (2) Assuming an EBITDA margin of 84% over gross rents and 120m of net financial expense 10

11 Corporate Shareholders remuneration guidance 2018 DIVIDEND GUIDANCE CALCULATED ON THE BASIS OF 80% OF AFFO + GAINS FROM ASSETS DISPOSALS Payment in two instalments in cash MANAGEMENT GUIDANCE FOR DISTRIBUTION FY 2018: MINIMUM OF 235M ( 0.50 PER SHARE) (+9% VS 2017) INTERIM FINAL (1) 0.20 October AGM 2019 TOTAL 0.50 Total Source: Company (1) Following approval by AGM of 2018 accounts 11

12 LANDMARK I PLAN

13 Landmark I Plan Summary Plan Prime locations Upscaling refurbishments Quick growth in rents and valuation Assets Torre Glòries Monumental Diagonal 605 Marqués de Pombal 3 Castellana 85 Plaza Ruíz Picasso Alcalá 40 Alfonso XI Developments Delivery Torre Chamartín Start of works Adequa Investment 266 million ERV m 13

14 Landmark I Plan Torre Glòries One of the most iconic buildings in Barcelona Reconversion into multitenancy Creation of a unique observatory in Barcelona 14

15 Landmark I Plan Torre Glòries G.L.A. 37,614 sqm Investment 15 million 15

16 Landmark I Plan Monumental Full reburbishment to create the best building in prime CBD Lisbon Façade Lobby Common areas Elevators Installations Retail area 16

17 Landmark I Plan Monumental G.L.A. 16,892 sqm Investment 23 million 17

18 Landmark I Plan Diagonal 605 Full reburbishment Façade Lobby Common areas Installations Diagonal access Flagship unit 18

19 Landmark I Plan Diagonal 605 G.L.A. 14,795 sqm Investment 8 million 19

20 Landmark I Plan Marqués de Pombal 3 Reburbishment of lobby and common areas Creation of a new outdoor area 20

21 Landmark I Plan Marqués de Pombal 3 G.L.A. 12,460 sqm Investment 3 million 21

22 Landmark I Plan Castellana 85 Full reburbishment Façade Lobby Common areas Installations 22

23 Landmark I Plan Castellana 85 G.L.A. 15,254 sqm Investment 25 million 23

24 Landmark I Plan Plaza Ruíz Picasso Full reburbishment to create the building with the largest floorplants and highest specifications in Azca 24

25 Landmark I Plan Plaza Ruíz Picasso G.L.A. 31,576 sqm Investment 30 million 25

26 Landmark I Plan Alcalá 40 Full reburbishment and creation of ground floor + mezzanine area for flagship store 26

27 Landmark I Plan Alcalá 40 G.L.A. 9,315 sqm Investment 12 million 27

28 Landmark I Plan Alfonso XI Full reburbishment Façade Lobby relocation Common areas Installations Outdoor garden 28

29 Landmark I Plan Alfonso XI G.L.A. 9,945 sqm Investment 10 million 29

30 Landmark I Plan Selected developments Torre Chamartín Strategic location between the M-30 and M-11 Excellent vilisibility and accesses LEED Platinum building 30

31 Landmark I Plan Selected developments Torre Chamartín G.L.A. 17,733 sqm Investment 31 million 31

32 Landmark I Plan Selected developments Adequa PHASE I Integrated complex Demolition of physical barriers Parking Services building PHASE II Development of tower + building 32

33 Landmark I Plan Selected developments Adequa PHASE I G.L.A. 75,928 sqm PHASE II G.L.A. 44,886 sqm Investment 10 million Investment 60 million 33

34 FLAGSHIP PLAN

35 Flagship Plan Summary Plan Refurbishment of shopping centers Create experience Implement technology Convergence of online and physical sales Convert our shopping centers in the flagship store of online retail Assets Arturo Soria Plaza Larios El Saler Tres Aguas Porto Pi Artea Developments Start of works X-Madrid Investment 115 million ERV + 8.9m 35

36 Flagship Plan Arturo Soria Deep renovation Façade Common areas Terraces Parking 36

37 Flagship Plan Arturo Soria G.L.A. 6,959 sqm Investment 5 million 37

38 Flagship Plan Larios Full refurbishment Façade Common areas Vertical communication Convert part of supermarket into fashion Reconversion of cinemas into F&B 38

39 Flagship Plan Larios G.L.A. 45,076 sqm Investment 21 million 39

40 Flagship Plan El Saler Full refurbishment in 3 phases PHASE I Accesses from parking completed PHASE II Common areas PHASE III Façade + extension (2,700 sqm) 40

41 Flagship Plan El Saler G.L.A. 47,013 sqm Investment 15 million 41

42 Flagship Plan Tres Aguas Full refurbishment Façade Common areas Terraces 42

43 Flagship Plan Tres Aguas G.L.A. 67,009 sqm Investment 20 million 43

44 Flagship Plan Porto Pi Full refurbishment Façade Common areas Vertical communication Terraces 44

45 Flagship Plan Porto Pi G.L.A. 58,779 sqm Investment 16 million 45

46 Flagship Plan Developing a new concept X-Madrid Creation of a unique and groundbreaking concept Shopping center focused on experiences and cutting edge retailers Diving Surf Climbing Gourmet dining VIP cinemas 46

47 Flagship Plan Developing a new concept X-Madrid G.L.A. 47,424 sqm Investment 32 million 47

48 BEST II PLAN

49 Best II Plan Favourable market conditions SPAIN HAS ONE OF THE LOWEST ONLINE SHARE OF TOTAL RETAIL SALES IN EUROPE BUT ONLINE RETAIL PENETRATION IS GROWING RAPIDLY % online retail share of home market 2016 % online share of total retail sales Spain +17% 4.1% 17% 3.5% 14% 2.5% 3.0% 10% 10% 9% 9% 4% 4% 3% UK Germany EU France Sweden Netherlands Spain Poland Italy Source: Centre for Retail Research, SG Cross Asset Research/Equity 49

50 Best II Plan Favourable market conditions Exports/imports Logistics outsourcing SPANISH EXPORTS (23.3% GDP) ARE AMONG THE STRONGEST IN THE EUROPEAN UNION (+8% IN 2017) RECOVERY IN INTERNAL CONSUMPTION HAS INCREASED SPANISH IMPORTS, WHICH HAS STRENGTHENED DEMAND OF LOGISTICS SPACES Spanish exports ( ) billion 52 % of Spanish companies outsource logistics operations (90%+ in UK/US) % of increase in outsourcing among Spanish companies in the last 7 years Source: JLL, Ministerio de Economía 50

51 Best II Plan Summary Plan Development of the best footprint in the Iberian market Best specifications Best locations Widest array of product Assets Madrid Pinto II B Madrid San Fernando II Madrid Azuqueca II Guadalajara Cabanillas Park I F Madrid Azuqueca III Guadalajara Cabanillas Park II Seseña Cabanillas X Investment 254 million Foot print +493K GLA +20.5m ERV 8.1% YoC 51

52 Best II Plan Projects breakdown GLA (sqm) ERV ( m) Investment ( m) ERV YoC Madrid-Pinto II B 29, % Madrid-San Fernando II 34, % Guadalajara-Azuqueca II 98, % Guadalajara-Azuqueca III 51, % Guadalajara-Cabanillas Park I F 19, % Guadalajara-Cabanillas Park II 210, % Guadalajara-Cabanillas X 21, % Toledo-Seseña 28, % Total 493, % 52

53 Best II Plan A EXPANDED FOOTPRINT TO REINFORCE OUR LEADERSHIP 2,098 (1) 000sqm 1, Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Comp 7 PARTICULARY IN THE MAIN HUBS OF MADRID A2 corridor ( 000sqm) Now After Best II Now After Best II A4 corridor ( 000sqm) (1) GLA under management once Best II is completed 53

54 Paseo de la Castellana, Madrid