Results first half of 2022
- The SOCIMI intensifies its commercial activity with the signing of 20 new rental contracts and improves its gross rents by 4.9% in Like-for-Like terms
- The company improves the occupancy of its properties in operation by 0.6% and increases the occupancy of its total portfolio of assets by 3.6% thanks to the signing of a new contract with Universal Music Hotels in Carretas and the first rental contracts in Square Garden (Rivas Vaciamadrid)
- SILICIUS closes the first half of 2022 with a Gross Asset Value (GAV) of 745.6 million euros, which represents a growth of 1.8% in Like-for-Like terms
Madrid, August 02, 2022. SILICIUS Real Estate, a SOCIMI specialized in long-term real estate management with stable rents, has experienced excellent growth in net rents during the first half of 2022 thanks to the increase in Like- for-Like terms of the rents and the reduction of the bonuses and incentives to the tenants. In turn, the company has intensified its commercial activity by signing 20 new rental contracts.
The amount of gross income after incentives has increased by 15.4% in the first half of 2022, to 14.8 million euros. In turn, net rents have reached 12.1 million euros, after experiencing a growth of 20.5% compared to last year.
In terms of Like-for-Like — an indicator that compares the amounts obtained by a portfolio of assets in two different periods, without taking into account divestments or investments —, gross rents have increased by 4.9% at the end of June, in compared to the same period in 2021, thanks to the signing of new contracts and the indexation of rents. The Residential (+416.6%) and Hotel (+13.8%) segments lead the growth of these revenues, both in percentage and absolute terms, due to increases in rent, commercialization and the escalation of rental contracts. On average, the portfolio of assets in operation presented an occupancy of 89% in the first half of 2022 (+0.6% compared to the first quarter of 2022) motivated by the sale of commercial and residential assets.
Similarly, the occupancy of the total asset portfolio has also increased by 3.6% as a result of the signing of a new contract with Universal Music Hotels in Carretas (Madrid), as well as the first rental contracts in Square Garden (Rivas Vaciamadrid). In addition, the average period of the rental contracts has grown significantly to 5.8 years due to the mandatory compliance periods of the new leases.
On the other hand, the SOCIMI has achieved in the first half of 2022 a Funds From Operations (FFO) of 7.9 million euros, which represents a positive variation of 123.1% compared to the same period of 2021. At the consolidated accounting level (IFRS), an accounting result of 0.56 euros per share has been obtained, including the effect of the change in value of the portfolio, with an accounting EBITDA of 9.1 million euros, a 62.6% more than in the first half of 2021.
In addition, gross financial debt stood at 235 million euros at the end of June 2022, ending with a Loan to Value ratio of 30.1%. The interest rate is around 1.73%, while the average maturity of the debt remains stable at seven years.
The value of the SILICIUS asset portfolio reaches 745.6 million euros
SILICIUS ends this first half of the year with a Gross Asset Value (GAV) of 745.6 million euros, which represents an increase of 3.1% compared to the previous year. In terms of Like-for-Like —an indicator that compares the asset portfolio in two different periods, without taking into account divestments or investments—, the GAV has increased by 1.8% compared to the previous year, with a positive growth in All Categories.
During this period, the SOCIMI has closed the divestment of a non-strategic asset, Muebles Boom Parque Oeste, for an amount of 4 million euros, which corresponds to -0.5% of the divestments made in the period. In turn, there have been no new acquisitions within this same year.
Thus, as of June 30, 2022, the company had a portfolio made up of 44 assets that, based on value, are distributed as follows: 31% hotels, 25% shopping centres, 18% retail, 16% offices, 9% residential and 1% logistics. Of all of them, 45% of the assets that make up the GAV came from real estate located in Madrid.
The execution of the 2022 Capex Plan maintains its planned schedule with extensions due to a new contract with Universal Music Hotels in Carretas. The Hotel Carretas is currently in phase II of its rehabilitation works, which are expected to end in the third quarter of this year.
