Merlin earned €55.7M during Q1

Merlin earned €55.7M during Q1

The company qualified this quarter’s behaviour as excellent, following a contraction of more than 143.000 sqm, including new developments, and more than 70.000 sqm in rentals, which are now expected to be fully occupied by the end of the year.

On the other hand, the strong job loss registered across Spain last year, caused the office segment to reach an occupancy rate below 90% and its revenues to drop around 3% due to the increase in vacant assets and the CPI’s negative indexation.

The company’s shopping centre activity had a 2.9% loss in rents, caused by the loss of clients after the implementation of strong travel restrictions took place. Nevertheless, the company has been applying a policy of aids and bonus to retailers within its shopping centres estimated at 11.6 million euro.

The REIT further admitted that, despite the costs remaining high, some retailers in their shopping centres «are near their limit» due to the prolonged negative effect caused by Covid-19 on their activity.

Rental revenues on all areas of business reached 124.6 million euro and the EBITDA was 87.9 million euro, 15.5% less yoy.

Despite the 15.3% operational profit loss during the first three months of the year, to 63.3 million euro, the company intends to surpass the estimates initially forecast for the whole year, provided activity resumes its normal levels throughout the rest of the year

Merlin Properties’ Vice-Chairman & CEO Ismael Clemente, assured the company has a «very solid» balance, and a liquidity position of 1.291 billion euro, and will continue working to reduce its level of debt to 39.7%.

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