Carmila Sa · EURONEXT:CARM
Carmila Sa — H1 2024 Earnings Presentation
28 slides from Carmila Sa's earnings presentation, Oct 4, 2024
Slide 1: Carmila H1 2024 Results Presentation
Carmila H1 2024 Results Presentation 1
Slide 2: Agenda: Key Highlights
1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 2
Slide 3: Key Highlights
1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 3
Slide 4: Key takeaways from H1 2024
1 Key highlights 2 3 4 Key takeaways from H1 2024 Strong leasing activity 490 new leases signed in H1 2024 (€27 million of annual rent, +24% vs. H1 2023) Appraisal value of assets unchanged in H1: € 5.9bn at end-June 2024 (not including Galimmo1) Growth in rental income from indexation +3.4%, in lin
Slide 5: Closing of the acquisition of Galimmo SCA
1 Key highlights 2 3 4 Closing of the acquisition of Galimmo SCA Attractive terms Total investment €299 million for 99.9% (€9.22 per share, 38% discount vs. EPRA NDV)* Highly accretive 5% Net asset value (EPRA NDV) accretion, up to 5% target recurring earnings accretion including synergies Tender of
Slide 6: Rolling out Carmila's strategy on a complementary portfolio
1 Key highlights 2 3 4 Rolling out Carmila’s strategy on a complementary portfolio Carmila-like assets €675 million portfolio value 13 “Shopping” assets Complementary footprint 52 centres, mainly in THE North-East of France New opportunities for innovation, value creating projects and growth drivers
Slide 7: On track with Carmila's CSR ambition
1 Key highlights 2 3 4 On track with Carmila’s CSR ambition 2023 CO2 Emissions Climate commitments -46% Target impact of driven by measures to reach Six CUBE FLEX 2024 reduced -45% net zero by 2030 consumption awards granted to Carmila 95,8% of assets certified -45% First solar autogeneration projec
Slide 8: Continuation of major trends in retail
1 Key highlights 2 3 4 Continuation of major trends in retail Carmila is well positioned for the Innovative new leisure latest trends in retail complex at Rennes Cesson Sport & Leisure Health & Beauty New food concepts Omnichannel Purchasing power Sustainability 8
Slide 9: The Galimmo acquisition has positioned Carmila for growth
1 Key highlights 2 3 4 The Galimmo acquisition has positioned Carmila for growth Closing of the acquisition of Galimmo SCA 93% of the share capital of Galimmo SCA acquired on 1 July Put option granted to entity managed by Primonial to sell its entire 7% stake in Galimmo SCA Increase in annual 2024 r
Slide 10: Activity Overview
1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 10
Slide 11: Strong operating performance: leasing, occupancy, reversion
1 2 Activity Overview 3 4 Strong operating performance: leasing, occupancy, reversion Dynamic Affordable rents letting activity Positive reversion (+2.7% in H1 2024) and Close to 500 new long-term Occupancy Cost Ratio of leases signed in H1 2024 10.7%* Stable footfall and High occupancy retailer sal
Slide 12: Successful commercial strategy to pivot to new retailers
1 2 Activity Overview 3 4 Successful commercial strategy to pivot to new retailers % of rental income End December 2023 End June 2024 29.7% 29.0% 19.9% 20.4% 14.5% 14.8% 13.6% 13.7% 9.2% 9.2% 7.4% 6.6% 6.1% 6.1% Clothing and Health and Culture, gifts Food & Household Services & Sport accessories Bea
Slide 13: Innovation and marketing to support footfall and rent growth
1 2 Activity Overview 3 4 Innovation and marketing to support footfall and rent growth Pop-up stores Marketing and and events Specialty Leasing innovation Testing new concepts and +16% revenue growth vs. events to drive footfall H1 2024: €7.9 million Kids TV channel tour in 10 centres Online video M
Slide 14: Investing and transforming with agile restructuring projects
1 2 Activity Overview 3 4 Investing and transforming with agile restructuring projects Major Projects Agile Projects Mixed-Use Montesson Orléans Antibes Toulouse Labège Terrassa Transformation projects in Burgos extension in Spain Nantes and Sartrouville Puget (including Kiabi, MediaMarkt) 13 Carmil
Slide 15: Financial Performance
1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 15
Slide 16: Organic growth in net rental income driven by indexation
1 2 3 Financial Performance 4 Organic growth in net rental income driven by indexation Net Rental Income (€million) Organic growth in net rental income +4.5% 176 +4.2% 167 172 175 148 +3.1% +3.4% 128 +1.0% -1.4% H1 H1 H1 H1 H1 H1 2019 2020 2021 2022 2023 2024 Rent collection (in % of total billed)1
Slide 17: Organic growth, cost discipline and limited increase in financing costs
1 2 3 Financial Performance 4 Organic growth, cost discipline and limited increase in financing costs € million H1 23 H1 24 Net rental income 175.0 176.3 Net rental income +0.7% vs. H1 23 Overhead costs -23.8 -23.0 Strict management of the cost base Equity-accounted +2.0 companies +1.9 EBITDA 153.2
Slide 18: H1 recurring EPS and 2024 guidance update
1 2 3 Financial Performance 4 H1 recurring Earnings Per Share and 2024 guidance update H1 2024 Recurring EPS 2024 GUIDANCE UPDATE +2.4% € 0.87 Expected 2024 Recurring € 0.85 EPS : €1.65 v v Strong operating performance Galimmo acquisition closed on 1 July 2024 H1 2023 H1-2022 H1 2024 H1-2023 Earning
Slide 19: Valuation of portfolio unchanged vs. end 2023
1 2 3 Financial Performance 4 Valuation of portfolio : unchanged vs. end 2023 at end-June 2024 Like-for-like change (vs 31 Dec. 2023) Market value € 5.9bn +0.0% Total (like-for-like) € 4.2bn +0.5% Total (like-for-like) € 1.3bn -1.0% Total (like-for-like) € 0.3bn -1.4% Total (like-for-like) 19 Note:
Slide 20: Confidence in the valuation of the portfolio
1 2 3 Financial Performance 4 Confidence in the valuation of the portfolio Increase in cap rates since 2017 6.58% Net Initial Yield • NIY +116bps over the period 6.58% Reasonable appraisal assumptions 6.42% 6.14% • Net Rental Income CAGR : 1.8% 5.89% • Exit cap rate : 6.7% 5.85% 5.64% • Discount rat
Slide 21: Strong balance sheet
1 2 3 Financial Performance 4 Strong balance sheet End-2023 End-June 2024 BBB rating with a stable outlook from S&P Net debt (€M) 2,130 2,213 Significant headroom vs. bank covenants and rating constraints Gross Asset Value1 (€M) 5,885 5,887 Leverage metrics that compare favourably EPRA LTV 36.6% 38.
Slide 22: Strengthened liquidity position and funding structure
1 2 3 Financial Performance 4 Strengthened liquidity position and funding structure Liquidity: Carmila Debt Maturity Profile1 €777M of cash and cash equivalents and an undrawn RCF of €540M €M Average cost of net debt in H1 2024: 2,8% (vs. 2.7% in 2023) 2024 bonds covered by cash Average remaining ma
Slide 23: Financial impact of the acquisition of Galimmo SCA
1 2 3 Financial Performance 4 Financial impact of the acquisition of Galimmo SCA Immediately accretive transaction Limited (ca. 170bps) LTV impact H1-2024 Pro Forma* €5m estimated synergies Net debt (€M) 2,213 ~ 2.6bn Recurring EPS accretion +3-5%1 GAV1 (€M) 5,887 ~ 6.7bn Estimated badwill in P&L of
Slide 24: EPRA Net Tangible Assets per share
1 2 3 Financial Performance 4 EPRA Net Tangible Assets per share H1 2024 Change in EPRA Net Tangible Assets per share EPRA NTA at 30 June 2024 – fully diluted +1.98 25.57 €23.59 / share +0.87 -1.20 24.17 -0.12 -2.4% +5.8% +0.03 -0.16 23.59 vs. end vs. end 2023 2023 Change in HY 24 Fair value recurri
Slide 25: Financial wrap-up
1 2 3 Financial Performance 4 Financial wrap-up €5.9bn +3.4% 38.0% Gross Asset Value Like-for-like rental LTV1 (+0.0% vs. end-2023) growth vs. H1 2024 +2.4% +2.9% €1.65 H1 2024 recurring EPS EPRA NDV pro-forma Revised recurring EPS growth vs. H1 2023 Galimmo acquisition2 guidance for 2024 Predictabl
Slide 26: Conclusion
1 Key Highlights MARIE CHEVAL Chair and Chief Executive Officer 2 Activity Overview SEBASTIEN VANHOOVE Deputy Chief Executive Officer 3 Financial Performance PIERRE-YVES THIRION Chief Financial Officer 4 Conclusion MARIE CHEVAL Chair and Chief Executive Officer 26
Slide 27: Successful execution in the first half of 2024
1 2 3 4 Conclusion Successful execution in the first half of 2024 Delivering on the priorities of the strategic plan Strong commercial performance and pivot strategy Agile projects, growth initiatives and urban transformation Seizing opportunities in the current environment Acquisition of Galimmo on
Slide 28: Q&A session
Q&A session 28