Release Date: July 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Strong operating performance with excellent leasing activity and high occupancy rates.
- Successful acquisition of Galaxy, which is immediately accretive to net asset value and earnings growth.
- Solid balance sheet and strong leverage metrics, with LTV below 40%.
- Positive reversion in rents and high rent collection rates at 97%.
- Recognition for climate disclosure and sustainability efforts, including inclusion in the CDP A-List.
Negative Points
- Higher financing costs, although offset by rent growth.
- Slight decrease in financial occupancy rates in the Galaxy portfolio.
- Limited impact of synergies from the Galaxy acquisition until 2025.
- Potential need for additional CapEx to upgrade Galaxy assets.
- Ongoing disposal program, which may impact future earnings.
Q & A Highlights
Q: Can you clarify the guidance and provide a breakdown for H2? Are there any disposals impacting the guidance?
A: The performance in H1 was strong with a 2.4% increase in EPS. For H2, we expect similar trends. The Ganymed acquisition will contribute 1.5% to the annualized EPS, leading to a total guidance increase of 3.5%. Disposals are not significantly impacting the guidance.
Q: Could you provide an update on your disposal program?
A: In 2023, Carmila sold assets worth EUR130 million. We aim to sell another EUR100 million by the end of 2024. We are working on additional disposals and have access to local investors interested in resilient retail assets.
Q: Could you provide details on the operational performance of Ganymed assets and how they compare to the overall portfolio?
A: Ganymed assets have stable valuations, good footfall, and retailer sales performance. They had a slight decrease in financial occupancy rates in H1, but we expect to recover this through our strategy of pivoting the mix merchandising.
Q: Have you set any CapEx budget aside to upgrade Ganymed assets?
A: Carmila has a strong track record in value-creating projects. The CapEx for Ganymed will be manageable and similar to what we do for the current Carmila portfolio.
Q: What additional initiatives could you implement in the next 2-3 years to create value with the Ganymed assets?
A: We plan to roll out our efficient mix merchandising strategy, improve specialty leasing, and develop value-creating projects like 5G towers in partnership with Carrefour. We have plenty of projects and are eager to work with the Ganymed team.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
