Árima faces crisis with "strong balance sheet"

Árima faces crisis with "strong balance sheet"

The company's solid balance sheet has been boosted by two share capital increases – which have allowed it to triple in size since its IPO just over a year ago – and a sound investment strategy based on investing in opportunities at highly attractive prices (20% below market price on average), mentioned the company in a release.

In addition, the company recently signed a sustainable loan in the amount of 27 million euro, meaning it has now «secured competitive and flexible financing for its entire portfolio», revealed the company, further highlighting that controlled expenses also assisted in obtaining a comfortable position.

Up until now, «the Covid-19 crisis has not proved to be a major obstacle for Árima», it mentioned. The socimi continues to collect 100% of its rental income since it operates in the Offices and Logistics sectors and it does not have any exposure to the sectors that have been hit hardest by the pandemic. Its rental income in the first quarter of 2020 amounted to 1.3 million euro, up 131% y-o-y and 6.2% in like-for-like terms.

Committed to the business plan

Committed to achieving the targets set out in its business plan, Árima has terminated the leases on its Habana and Botanic properties in order to move forward with its plans to refurbish them in line with the Company's Capex schedule. Four of the seven properties in Árima's portfolio are currently undergoing refurbishment works. These were temporarily put on hold at the start of the lockdown, however, after resuming works in May the company does not foresee any major delays.

Luis López de Herrera-Oria, CEO of Árima, said that «the awful Covid-19 crisis has acted as a real stress test for a lot of companies. Thankfully, our team is in excellent health, our assets are all fully operational, and we are in constant contact with our tenants and partners. With Árima's strong financial position, our shareholders can rest easy, safe in the knowledge that our team will continue to generate value thanks to its proven management skills and sound investment strategy».

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