FY 2019 RESULTS PRESENTATION 28 February 2020
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ISMAEL CLEMENTE Contents CEO Highlights FY19 Financial results Offjces Shopping centers MIGUEL OLLERO Logistics GM / COO Valuation and debt position ESG & T echnology Value creation Closing remarks DAVID BRUSH CIO
Highlights | FINANCIAL PERFORMANCE • Compelling growth in cash fmow, with FFO per share of € 0.67, +9.2% YoY and +6.4% above guidance • EPRA NAV per share up 5.4% YoY to reach € 15.60 • Leverage reduced to 40.6%, while improving all fjnancial ratios OPERATING PERFORMANCE • Excellent business performance, with solid growth in occupancy, LfL rents and release spread across the board • High LfL rental growth in offices (+7.3% YoY), highest recorded to date, combined with strong rise in occupancy (+264 bps) • Solid numbers in shopping centers with tenant sales up 4% underpinning healthy rental growth and meaningful hike in occupancy (+204 bps) • Logistics continues showing robust performance VALUE CREATION • Strategic asset recycling increasing exposure to logistics and reducing exposure to secondary retail and peripheral offices • Very positive advance in Landmark, Flagship and Best II & III, with 11 projects delivered in 2019, at very attractive returns • ESG at the core of our business, accelerating sustainability initiatives in 2019 • DPS of € 0.52, meeting guidance ı 4 ı
Highlights | Asset categories evolution (by GAV) Logistics gaining weight while reducing retail exposure 2019 PF (2) 2018 (1) (1) 6 % 4 % 10 % 9 % 16 % 50 % 15 % 50 % 21 % 19 % (1) Offjces Net leases Shopping centers Logistics Other (1) Other includes hotels, non core land, miscellaneous and minority stakes including DCN (2) Pro-forma to include logistics WIP and offjces WIP and the disposal of Mercury portfolio (post-closing) ı 5 ı
Highlights | T otal Shareholder Return Compelling return to shareholders achieved in FY 2019 (€ per share) TSR + 8.8% 0.50 16.10 0.80 15.60 14.81 EPRA NAV NAV growth EPRA NAV DPS NAV + Div - 2019 Dec - 18 2019 Dec - 19 2019 Source: Company ı 6 ı
Highlights | Shareholders remuneration FY 2019 dividend to reach € 244m, meeting guidance Interim Complementary (paid) (subject to AGM) Total 0.52 MERLIN 0.32 FY 19 Dividend 0.20 € 244M October 2019 May 2020 Total Source: Company ı 7 ı
FY 2019 Financial results
FY19 Financial results | Excellent year in cash fmow generation (+12.1% AFFO growth YoY) FY 2019 FY 2018 YoY (€ million) 525.9 499.7 +5.2% Gross rents 511.5 475.6 +7.5% Gross rents after incentives 463.3 433.5 +6.9% Net rents 425.5 403.6 +5.4% EBITDA (1) 313.3 286.9 +9.2% FFO 303.3 270.5 +12.1% AFFO 563.6 854.9 (34.1%) IFRS net profit 7,330.7 6,955.9 +5.4% EPRA NAV Includes extraordinary gain on Testa disposal (€ per share) 0.67 0.61 +9.2% FFO Exceeding guidance 0.65 0.58 +12.1% AFFO 1.20 1.82 (34.1%) EPS 15.60 14.81 +5.4% EPRA NAV Source: Company (1) Excludes non-overheads items (€ 4.9m) and LTIP accrual (€ 44.2m) ı 9 ı
FY19 Financial results | Bridge gross rents Robust LfL growth in all asset categories reaching historical high in offjces (+7.3%) Offjces +7.3% Shopping centers +3.1% LfL (1) Logistics +3.6% +4.5% Net leases +1.2% (€m) 525.9 +6.1 +20.1 499.7 FY 2018 Like-for-Like Balance acquisitions, FY 2019 growth disposals, other (1) FY18 (€ 443.6m GRI) vs FY19 (€ 463.7m GRI) ı 10 ı
FY19 Financial results | Occupancy and WAULT Outstanding occupancy growth in offjces (+264 bps YoY) and retail (+204 bps YoY) OCCUPANCY AND WAULT PER ASSET TYPE (1) +140bps 100.0% 97.7% 94.8% VS 93.4% 18.4 93.3% 92.8% (2) MERLIN 2018 72.1% Average 5.6 years 4.0 MERLIN 3.2 Average 3.0 2.4 Offices Shopping centers Net leases Logistics Other Source: Company (1) WAULT by rents means the weighted average unexpired lease term, calculated as of 31 December 2019 (2) 92.0% on a like-for-like basis, excluding assets sold ı 11 ı
Offices
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