Results first quarter 2023
- Consolidates the increase in long-term stable rents thanks to the escaling of contracts, the indexation of income and the signing of 18 contracts, mainly in offices, retail and shopping centres.
- The SOCIMI closes the first quarter of 2023 with a net positive result of 10.3 million, an accounting EBITDA of 4.9 million and Funds From Operations (FFO) of 2.2 million.
- Total occupancy of its portfolio improved by 4% and the average term of weighted rental contract by almost one year to 6.4 years.
Madrid, May 29, 2023 – SILICIUS Real Estate, a SOCIMI specialized in the management of long-term properties with stable rents, has closed the first quarter of 2023 with an increase in its gross income of 11.2% to 7.5 million. This positive performance reflects the robustness of its property portfolio and the results of the SOCIMI’s commercial activity, which is formalising stable long-term incomes.
During the first quarter of 2023, gross income has increased by 11.2% compared to the same period of the previous year, while net income amounted to 7.2 million, an increase of 14.8%. In terms of Like-for-Like – excluding investments and divestments – gross income increased by 16.8%, well above inflation, showing the hotel (+63.9%) and residential (+49.5%) segments the strongest growth.
The positive performance was driven by the escalation of rents of the contracts, the indexation of income and new commercialisations. Up to March 2023, SILICIUS has signed 18 new leases for a total contracted area of 11,960 sqm, concentrated in the office, retail and shopping centre segments.
The SOCIMI increased the total occupancy of its portfolio by 4% compared to the same period in 2022. In addition, it has improved the average term of weighted rental contract to 6.4 years, an increase of 0.9 years compared to year-end 2022.
SILICIUS achieves a net positive result of 10.3 million euros
The SOCIMI has achieved a net positive result (IFRS) of EUR 10.3 million at the end of the first quarter of 2023 (excluding revaluation in the period). Al the same time, an accounting EBITDA for accounting purposes amounted to EUR 4.9 million, an increase of 11.5%. Funds from operations (FFO) amounted to 2.2 million.
During this period, the SOCIMI has closed the divestment of two assets (a commercial property in San Sebastián and a property in the Nassica retail park in Getafe) through two transactions that have been formalised for an aggregate amount of EUR 24.6 million, 7.4% higher than the last RICS valuation of the properties. Both operations are part of the strategic plan for asset rotation and generation of shareholder value that SILICIUS has implemented.
As a result of the divestments, earnings per share reached €0.33/share, up 231% compared to the first quarter of last year. At the same time, the SOCIMI has managed to pay off the mortgage debt associated with both assets and reduced its Loan to Value ratio to 37.4%. At the end of the first quarter, gross financial debt stood at 272 million.
On 31 March 2023, the company had a portfolio of 41 assets which, based on their value, are distributed as follows: 32% hotels, 24% shopping centres, 17% offices, 15% retail, 11% residential and 1% logistics. Of these, 47% of the assets comprising GAV came from properties located in Madrid.
