Covid-19 had limited impact on Merlin Properties’ results

Covid-19 had limited impact on Merlin Properties’ results

Ismael Clemente, CEO of Merlin Properties

The company closed the first quarter with a turnover of 131.8 million euro, only 0.6% less yoy. The 103.9 million euro recurring EBITDA was only 1% below and the 74.7 million euro operational benefits dropped 5.6% yoy.  

Nevertheless, the company points out the 38.6 million euro accounting gain (-35.7 %). But this amount is not comparable to that of the previous year due to the assets sold (Juno and Mercury portfolios) and the inclusion of an allowance for rents because of the Covid-19 crisis. In terms of LfL growth, the numbers were positive with a 3.5% average. If we exclude atypical values, the ordinary net profit reached 62.3 million euro.

The net asset value was 7.384 million euro (15.72 euro per share, +5.2%), despite there not having been any new asset assessment (it is carried out in June and December each year).

The REIT considers that it was a good first quarter, with a limited impact from the coronavirus until March, thanks to its revenue diversification in terms of asset category, tenant typology and sectorial exposure.

Merlin Properties has a 1.277 million euro in cash and cash equivalents and faces no debt maturities for the next two years, although it has adopted a series of measures to reduce spending and preserve capital in order to face the uncertainty caused by the coronavirus crisis.

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