- The SOCIMI maintains stable income compared to 2022 despite reducing its portfolio, thanks to the escalation of rent from already signed contracts, IPC updates, and commercializations
- Hotels, residential, and shopping cent re s are the segments experiencing the highest growth until September 2023, with the portfolio’s asset occupancy at 80%
- Advances in the asset rotation plan with four transactions until September 2023 (and one more executed in October), at a 5% higher amount compared to the latest RICS property valuation
Madrid, 4 de diciembre de 2023. SILICIUS Real Estate, SILICIUS Real Estate, a SOCIMI specialized in the management of long term properties with stable incomes, has concluded the first nine months of 2023 with gross rents amounting to 22 million euros and net rents of 18 million euros, which remain virtually s table compared to the same period last year. Both show an increase of 9.8% and 11.2%, respectively, in comparable Like for Like terms, an indicator that relates amounts achieved by an asset portfolio in two different periods, excluding divestments or inves tments.
“The results for the first nine months of 2023 demonstrate the robustness and consolidation of our asset portfolio: despite formalizing the sale of five of them, we have managed to maintain our income virtually stable,” explained Juan Diaz de Bustamante, General Director of SILICIUS Real Estate. “The good performance of our portfolio, which maintains rental contracts with a stable duration of over six years, has been possible thanks contracts with a stable duration of over six years, has been possible thanks to new commercializations to new commercializations —— we have signed 60 new lease contracts we have signed 60 new lease contracts —— the the escalation of rent from signed contracts, and IPC updates,” he added.escalation of rent from signed contracts, and IPC updates,” he added.
By segments, and in comparable terms, the sectors showing the highest growth in gross rents have been Hotels with 24.8%, residential with 21.1%, growth in gross rents have been Hotels with 24.8%, residential with 21.1%, and shopping centand shopping centreres with 7.1% (due to new commercializations and s with 7.1% (due to new commercializations and replacement of vacant spaces). The variation is positive in all categories replacement of vacant spaces). The variation is positive in all categories except for retail and offices.except for retail and offices.
The portfolio of assets in operation had an occupancy rate of 80% at the end of September, representing a 3% decrease compared to the same end of September, representing a 3% decrease compared to the same period last year due to the departure of a law firm from the Obenque period last year due to the departure of a law firm from the Obenque building and the recent divestments.building and the recent divestments.
Financially, SILICIUS achieved an operational fund (FFO) of 2.7 million euros during the first nine months of the year, a figure lower than the same euros during the first nine months of the year, a figure lower than the same period last year due to the rise in interest rates. The accounting EBITDA period last year due to the rise in interest rates. The accounting EBITDA remains positive at 14.2 million remains positive at 14.2 million euros, with a slight decrease compared to euros, with a slight decrease compared to 2022.
The result for this period was 12.7 million euros, due to the independent expert’s valuation effect. In turn, as of September, the company has amortized almost 36 million euros of financial debt, ending the period with a net financial debt of 243 million euros at the close of September 2023, with a Loan to Value ratio of 37.1%, down 200 basis points from the end of the 2022 period.
Strategic divestment in five assets
Since the beginning of the year, SILICIUS has been carrying out a plan to rotate non strategic properties, based on selling assets above valuation and amortizing higher cost financial debt. Between January and September, it formalized four divestments in the period (and one more executed in October), for a total of 46.5 million euros. The total amount of the transactions is 5.0% higher than the latest RICS property valuation.
Thanks to these operations, all aimed at divesting non strategic assets and generating value for the shareholder, 36 million euros of debt have been amortized during the period, reducing the LTV ratio by 6.5% compared to the beginning of the year, ending t he third quarter of 2023 at 37.1%.
SILICIUS ended the first nine months with a Gross Asset Value (GAV) of 657.5 million euros, with a portfolio of 36 assets, distributed as follows: 32% hotels, 24% shopping cent re s, 17% offices, 15% retail, 11% residential, and 1% logistics. Madrid represents 47% of the total GAV.
In subsequent events to the end of the period, in November, a commercial space rented to Ibercaja located at Paseo de la Habana 16 in Madrid was sold for a price of 1.4 million euros, and the mortgage associated with the property was amortized.
