Key financial information:
Continuous growth in net rental income of 6.2% compared to the first nine months of 2023 (up 3.6% in real terms)
Ordinary earnings per share in 2024 are expected to be 1.65 euros, corresponding to growth of 3.5%.
Net debt to EBITDA ratio as of June 30, 2024 is 7.5x
Trading for the first nine months of 2024:
Retail sales +0.7%, customer traffic -0.8%1
Positive Lease Momentum: 724 leases signed, positive return rate of 2.0%
Financial share is 95.8% (down 20 bps from end of September 2023)1
Important events:
Galimmo acquisition will be completed on July 1, 2024 and will be a revenue contributor in the first quarter.
Successful issuance of the first green bond of 300 million euros with a maturity of 7 years (2032) and a fixed annual coupon of 3.875%
GRESB awarded Carmila a 5-star rating and Green Star certification with a score of 91/100.
PARIS, October 17, 2024–(BUSINESS WIRE)–Regulatory News:
Carmilla (Paris: CARM):
Marie Cheval, Chairman and Chief Executive Officer of Carmila, commented:
“With the integration of Garinmo, Carmilla has taken an important step in its strategic planning, contributing to sustainable growth in rental income and strengthening its position as a leading player in three regions: France, Spain and northern Italy.
Leasing momentum remains strong, confirming the attractiveness of Carmilla’s centers and the validity of our strategy to reorient our merchandising mix towards new retail banners.
The successful launch of its first green bond demonstrates Carmilla’s commitment to sustainable finance, in line with its strategy of building sustainable growth. ”
first 9 people
A few months – 2024
first 9 people
A few months – 2023
change
similar changes
Gross rental income (€ million)
298.1
278.6
+7.0%
Net rental income (€ million)
274.3
258.3
+6.2%
+3.6%
France
189.7
177.1
+7.1%
Spain
67.0
63.9
+4.8%
Italy
17.6
17.3
+1.8%
Net rental income increased 6.2% in the first nine months of this year on a year-over-year basis
During the period, net rental income increased by 6.2%, as follows:
4.2% positive contribution from Garinmo.
3.6% positive contribution from organic growth (in line with the rent index). and
The negative impact of the disposal of three sites in France (Tarnos, Montelimar and Bay 1) and four sites in Andalusia, Spain was 1.7%.
The recovery rate for this period was 96.1%2, consistent with the end of September 2023.
Confirms expected recurring profit per share of €1.65 in 2024
Carmilla’s recurring earnings per share in 2024 are expected to be EUR 1.65, corresponding to year-on-year growth of 3.5%. This reflects Carmilla’s strong performance and the integration of Garinmo from July 1, 2024.
story continues
Garinmo’s contribution to the group’s growth in 2024 is expected to be 1.5%, or 3% on a full-year basis excluding synergies. Estimated annual occupancy synergies from 2025 amount to EUR 5 million, which mainly relate to overhead costs.
Carmilla’s dividend policy, outlined in its strategic plan for 2022-2026, is to pay out at least €1.00 per share in cash, with a payout ratio of 75% of ordinary income.
Compared to the first nine months of 2023, retailer sales increased slightly and foot traffic decreased slightly33
The retailer’s sales rose by just 0.7% year-on-year, supported by the attractiveness of its Carmilla center and the dynamism of its Carrefour hypermarket. The change in admissions during this period is -0.8%.
Lease momentum continues
Carmilla has seen particularly strong rental activity in the first nine months of this year, with 724 rentals signed. Return rates were positive on average by 2.0%, reflecting both new and existing leases on vacant sites.
Highlights of the third quarter include:
Retail momentum confirmed in the sports and leisure sector (Decathlon, Speed Park – Otium Leisure, Intersport, L’Appart Fitness, Fitness Park)
Continuing modernization of food service offerings at Carmilla Center (Krispy Kreme, Maison Pradier, Otacos, Signorizza)
The financial occupancy rate at the end of September 2024 was 95.8%, while the occupancy rate at the end of September 2023 was 96.0%4.
Garinmo integration
On July 1, 2024, Carmila announced the completion of the acquisition of 93% of the share capital of Galimo SCA.
On July 25, 2024, Carmilla acquired all the shares held by Primonial Capimo, increasing its stake in Garimo SCA to 99.8%.
On October 9, 2024, Carmilla completed a short-form tender offer for 59,005 outstanding shares of Garinmo SCA5, and Carmila further held 99.97% of the share capital.
The squeeze-out of Garinmo shares not subscribed to the public offering will take effect on October 31, 2024.
Carmila’s total investment is EUR 299 million, with an average acquisition price of EUR 9.22 per share, representing a 36% discount to EPRA NDV.
Garinmo’s integration is proceeding as planned and its 51 assets are geographically complementary to Carmilla’s portfolio. Run-rate synergies of approximately 5 million euros per year will contribute to the Group’s growth from 2025 onwards.
Successfully issued the first green bond
On September 17, 2024, Carmilla issued its first green bond of €300 million. With a maturity of just over seven years, the notes mature on January 25, 2032 and pay an annual interest rate of 3.875%. The financing was raised at a spread of 160 basis points above the benchmark rate and with no issue premium.
The issue was oversubscribed approximately seven times and was a huge success among ESG investors in France and abroad.
The transaction was conducted under Carmila’s Green Bond Framework, which was published in October 2022. The proceeds from this issue will be used to finance assets that meet strict and transparent eligibility criteria and achieve BREEAM’s ‘Very Good’ or ‘Excellent’ certification.
In parallel, on September 24, 2024, Carmilla finalized a proposed redemption of its existing bonds maturing in 2027 and 2028 for a nominal amount of EUR 200 million. All redeemed bonds were cancelled.
These transactions allowed Carmilla to optimize its balance sheet on attractive terms (extension of maturity, optimization of debt profile and average cost of debt).
Carmila was recognized for the quality of its financial and sustainability reporting (EPRA BPR, sBPR Gold and GRESB awards)
For the fifth time, Carmila has been awarded the EPRA sBPR6 Gold award for alignment with the highest sustainability reporting standards. Carmila also received the EPRA BPR Gold award for transparency in financial disclosure.
GRESB, which evaluates the environmental, social and governance (ESG) practices of real estate companies around the world, once again singled out Carmilla. After achieving a score of 80/100 in 2023, Carmilla received a score of 91/100 this year. This is higher than the average score of our peers and 2024 GRESB respondents (76/100). Carmila achieved the Benchmark’s highest category, ‘Green Star’ designation.
These awards demonstrate Carmilla’s commitment to sustainable growth. We received particular recognition for reducing greenhouse gas emissions and improving the environmental credentials of our assets.
Stock buyback
In 2024, Carmilla announced two share buyback programs worth 10 million euros.
The first transaction will be completed on July 11, 2024, and the shares repurchased under this program (representing approximately 0.4% of the share capital) are expected to be canceled in 2024.
The second program began on July 29, 2024 and is currently ongoing. Shares purchased under this program are also subject to cancellation.
Investor Agenda
February 12, 2025 (after market close): 2024 annual results
February 13, 2025: 2024 Annual Results Presentation
April 17, 2025 (after market close): Financial information for the first quarter of 2025.
About Carmilla
Carmilla, Europe’s third largest listed commercial real estate owner, was founded by Carrefour and major institutional investors to transform and enhance the value of shopping centers adjacent to Carrefour hypermarkets in France, Spain and Italy. It was done. As of December 31, 2023, the Company’s portfolio was valued at €5.9 billion and consisted of 201 shopping centers with leading positions in the catchment area.
Carmilla is listed on Euronext Paris Compartment A under the symbol CARM. Benefits from the French tax regime for real estate investment trusts (“SIICs”).
Carmilla has been a member of SBF 120 since June 20, 2022.
Important notice
Some of the statements contained in this document are not historical facts and are forward-looking statements, estimates and other forward-looking statements that are based on management’s beliefs. These statements reflect beliefs and assumptions prevailing as of the date they are made and are subject to known and unknown risks that may cause future results, performance or events to differ materially from those expressed or implied by such statements. involve risks and uncertainties. For additional information regarding such factors, risks and uncertainties, please refer to Carmilla’s most recent Universal Registration Document filed in French with the Financial Markets Authority. Carmilla does not intend, and undertakes no obligation, to update or review the forward-looking statements above. Therefore, Carmilla is not responsible for any consequences arising from the use of the above statements.
This press release is available from the Publications section of Carmila’s financial webpage.
https://www.carmila.com/en/publications/
1 Data excluding Garinmo.
2 Excluding Garinmo (including Garinmo: 96.0%).
3 Sales and foot traffic of retailers excluding Garinmo (no change including Garinmo).
4 Data excluding Garinmo (including Garinmo: 95.3% as of the end of September 2024).
5 Representing 0.18% of the share capital and voting rights, EUR 14.83 per share.
6 Best Practice Recommendations for Sustainability.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241017090583/en/
contact address
Investor and Analyst Contacts
Pierre Yves Thirion – CFO
pierre_yves_thirion@carmila.com
+33 6 47 21 60 49
press contact
Elodie Arcayna – Corporate Communications and CSR Director
elodie_arcayna@carmila.com
+33 7 86 54 40 10
