• Gross income reaches 30.9 million euros, thanks to the opening of large properties, new commercialisations and the scaling of contract revenues
  • Improves its Funds From Operations (FFO) by 42.2% to €20.2 million and its accounting EBITDA by 77.6% to €26.1 million
  • The SOCIMI (Spanish REIT) closes 2022 with a Gross Asset Value (GAV) of €709 million and a diversified portfolio of 42 assets

Madrid, February, 27, 2023. Silicius anticipates the results of the year ended in December 31, 2022, prior to the issuance of the audit report by the auditor.  SILICIUS Real Estate, SOCIMI specialized in the management of long-term properties with stable rents, has closed 2022 with an increase in its gross income of 19.8% to 30.9 million euros, thanks to the new commercialisations —38 new leases have been signed for a total area of 38,324 sqm contracted— and to the escalations of rents of the contracts.

The Managing Director of SILICIUS, Juan Diaz de Bustamante, has assessed the company’s results over the past year and has highlighted that “2022 has been the year that demonstrates the consolidation and robustness of the SOCIMI’s portfolio, especially with the delivery and opening of large assets which generate stable long-term incomes such as the 5* UMusic Albéniz Hotel in Madrid and the 5* Iberostar Cala Domingos Hotel in Mallorca, among others“.

In turn, net income has amounted to 27 million euros, after a growth of 39.3% compared to last year. With this, the Net Income/Gross Income ratio has improved to 87%, compared to 75% in the previous year.

By segments, Residential and Hotels lead the increase in gross rental income during 2022, with +138.3% and +101.6%, respectively. An evolution that has been motivated in the Residential field by new commercializations, and in Hotels by the signing of new agreements, scaling and generation of income.

In terms of Like-for-Like — indicator that compares the amounts achieved by a portfolio of assets in two different periods, without taking into account divestments or investments—, gross income has increased by 20.7% at the end of 2022, compared to the same period in 2021, thanks to the signing of new contracts, the escalation of negotiated contracts and the indexation of income.

In 2022, the SOCIMI has achieved 20.2 million euros of Funds From Operations (FFO), which represents a positive variation of 42.2% compared to the same period of 2021. At the consolidated accounting level (IFRS), an accounting result of 0.48 euros per share has been obtained, including the effect of the change in value of the portfolio, with an accounting EBITDA of 26.1 million euros, 77.6% more than in the same period of 2021.

For its part, gross financial debt stood at €279 million at the end of 2022, concluding with an LTV ratio of 39.6%. The average interest rate has increased to 4.98% (three tenths higher than the previous year), motivated by the provision of new indebtedness for the purchase of Merlin A Shares as well as the increase in financial cost. In turn, the average maturity of the debt remains stable in seven years.

SILICIUS improves the occupancy of its portfolio by 4%

SILICIUS has improved the occupancy of its asset portfolio by 4% compared to 2021, reaching 89% occupancy, without taking into account the assets in the process of rehabilitation. In addition, the improvement of the average term of weighted rental contracts to 5.5 years (+1.5 years compared to 2021) also reflects the consolidation of the portfolio.

Among the leasing operations carried out during 2022, stands out the signing of the contract with UMusic Hotels for the management of the Hotel-Teatro Albéniz in Madrid, the total commercialization of Los Madrazo and the occupation of 50% of the Square Garden office complex. In addition, the SOCIMI has carried out two divestments: Muebles Boom Parque Oeste (Alcorcón) and Hotel Playabella (Estepona). There have been no new acquisitions during this period.

Thus, the SOCIMI closed 2022 with a Gross Asset Value (GAV) of 709 million euros. In terms of Like-for-like, the GAV is down 0.6% compared to the previous year, with a decrease in all categories except Hotel and Residential.

As of December 31, 2022, the company had a portfolio consisting of 42 assets that, in its value base, they are distributed as follows, coinciding with what is stated in its strategic plan: 31% hotels, 23% shopping centres, 18% retail, 17% offices, 10% residential and 1% logistics. Of all of them, 48% of the assets that make up the GAV came from properties located in Madrid.

During the year, SILICIUS has made progress in the execution of its strategic Corporate Social Responsibility (CSR) plan, with focus on reinforcing the company-wide commitment to the environment, society and corporate governance.

Within the framework of it, actions such as the campaign “Assets for a sustainable future” have been initiated. An initiative with which SILICIUS intend to strengthen their commitment to the environment through an ambitious collaborative reforestation program, focused on contributing to the implementation of new green areas in different parts of the Spanish geography in which the group develops its business activity.