Key financial information
- 2021 recurring earnings per share above guidance given in
October 2021 at €1.24, up +3% versus 2020
- Cash dividend of €1.00 per share to be proposed to
shareholders at the Annual General Meeting
- New €20 million share buyback programme
- Growth in recurring earnings per share1 of +10% per year
expected in 2022 and 2023
Strong balance sheet
- Like-for-like increase in the portfolio valuation of +0.7%
versus end-2020, to €6.21 billion
- EPRA Net Disposal Value per share of €22.99 at end-2021, up
+3.0% vs. end-2020
- Strengthened financial position, with a loan-to-value ratio2
of 37.4% at end-December 2021
- Confirmation in September by S&P of Carmila's BBB
rating, with outlook revised from negative to stable
2021 trading
- H2 2021 retailer sales at 97% of H2 2019 level
- Dynamic leasing activity in 2021 (1,144 leases signed, up
+31% versus 2019)
- Positive reversion in 2021 on new leases (+6.3% above rental
appraisal values) and renewals (+1.9% above)
- Financial occupancy up +60 bps versus end-2020 to 96.3%
(back at pre-crisis level)
- Improvement in rent collection in second half 2021 (H2
collection rate3 of 94%)
- Net rental income up +7% versus 2020
New strategic plan: Building Sustainable Growth
- Carmila’s strategic plan is based on three pillars:
- A new vision for Carmila's role as an incubator and
omnichannel platform
- Leadership in sustainability
- Investment in new business lines
- A new commitment on climate ("net zero" Scopes 1 and 2
emissions by 2030) and BREEAM certification of the
portfolio
- Creation of the Next Tower business line
- Scaling up the expansion of Carmila Retail
Development
Regulatory News:
Carmila (Paris:CARM):
Marie Cheval, Chair and Chief Executive Officer of Carmila
commented:
“2021 demonstrated the quality of Carmila's asset portfolio,
which is reflected in higher appraisal values at year end. Once
lockdowns were lifted, customers came back to Carmila centres and
retailer sales rebounded close to 2019 levels. Leasing activity
reached a record level in terms of new leases signed.
Carmila is rolling out a strategy based on its new role as an
incubator and omnichannel service platform, leadership in
sustainability and investment in new business lines. Carmila's
financial performance in 2021 was above our expectations, and the
Group is now ready to deliver on its new strategic plan and
medium-term financial targets.”
1. Key financial highlights
2021
2020
Change
Like-for-
like change
Gross rental income (€m)
351,8
349.7
0.6%
Net rental income (€m)
289.9
270.8
7.0%
+1.0%4
EBITDA (€m)
238.8
220.2
8.4%
Recurring earnings (€m)
178.2
167.6
6.3%
Recurring earnings per share (€)
1.24
1.20
3.3%
31 Dec. 2021
31 Dec. 2020
Change
Like-for- like
change
Property portfolio valuation (€m)
6,214
6,148
1.1%
0.7%
New Potential Yield
6.18%
6.20%
-2 bps
Loan-to-value (LTV) ratio
37.4%
37.0%
+40bps
EPRA NDV5 per share (€)
22.99
22.32
3.0%
EPRA NTA6 per share (€)
24.54
24.72
-0.7%
2. Trading
2021 was shaped by continued health restrictions, with stores in
Carmila shopping centres closed for an average of 2.2 months versus
an average of 3.0 months in 2020.
H2 2021 retailer sales at 97% of H2 2019 level
In the second half of 2021, when all stores were allowed to
open, retailer sales in Carmila centres were at 97% of the level in
the same period in 2019. For full-year 2021, retailer sales came
out at 82% of the 2019 level (106% of the 2020 level), due to the
health crisis measures enforced in the first half of the year.
Footfall in Carmila centres in 2021 averaged 82% of the level
observed in 2019 (106% of the 2020 level). Although impacted by the
health crisis, this represents a significant outperformance versus
the market (12 percentage points higher than the market in France
and 4 percentage points higher than the market in Spain7), with
Carmila centres benefiting from the draw of Carrefour hypermarkets
during both the health crisis and on reopening.
Record leasing activity in 2021: 1,144 leases signed, up +31%
versus 2019 and up +67% versus 2020
A record number of leases were signed in 2021, for a total
minimum guaranteed rent of €56 million, or 16% of the rental base.
Reversion was positive on new leases, coming out +6.3% above rental
appraisal values on average, and reversion on renewals was a
positive +1.9% on average.
This record level of new leases, which includes only long-term
leases, was achieved without changing standard lease terms or
incentive policy such as fit-out costs or rent-free periods.
Notable leasing transactions in 2021 included:
- New tenants for Carmila: Miniso, Studio
Comme J'aime, Crazy Kids, Kraft, Cuisinella, Five Guys, Weaudition
and Starbucks - Market leaders and fast-growing retailers: Kiabi,
Cultura, Mango, Action, Normal, Hubside, New Yorker and King Jouet
- New concepts: Le Repaire des Sorciers, Even, Bambino, Hem
Concept, Mon Petit Herbier, Maxi Zoo, Crazy Pets, Les Canons and
Marquette
As of 31 December 2021, the rental base was up +0.2% versus
end-2020 on a like-for-like basis and the financial occupancy rate
was +60 bps higher at 96.3%, the same level as at end-2019.
Specifically on short term letting, the pop-up stores business
was also very strong in 2021, with revenue growth not only vs. 2020
(+44%) but also vs. 2019 (+32%), despite closure periods and lower
footfall in the first half of the year. Revenues in the specialty
leasing business increased by +1% vs. 2020 and were down by only
-11% vs. 2019, despite closure periods of 2.2 months on
average.
3. Financial results
Improvement in rent collection in second half 2021:
collection rate of 94%
Rent collection continued to progressively return to normal in
the fourth quarter of the year, resulting in a rent collection rate
for the second half of 94%8. The collection rate9 for full-year
2021 was 86% due to health crisis measures enforced in the first
half of the year and the delay in the roll out of the government
support package in France.
Rent waivers and provisions relating to 2021 rents amounted to
11.6% of billed rents.
Net rental income up +7% versus 2020
Net rental income, including the impact of 2021 rent waivers and
provisions relating to the health crisis, rose +7% year on year to
€289.9 million. The improvement versus 2020 was mainly attributable
to the less pronounced impact of the health crisis in 2021, which
increased net rental income by +5.5%. The Covid-19 impact on net
rental income in 2021 amounted to €42 million, down from €57
million in 2020. The balance of the improvement (+1.5%) resulted
primarily from a +1.0% like-for-like increase in net rental income
and a scope effect further to the completion of the Nice
Lingostière extension. The indexation effect in like-for-like
rental growth amounted to +0.2%.
Gross rental income rose by +0.6% versus 2020, including an IFRS
16 impact in connection with the deferral of rent waivers granted
during the health crisis in exchange for longer lease terms
(negative €5.5 million impact in 2021 versus a positive €19 million
impact in 2020). Rent waivers granted without concessions are
deducted from net rental income and are not therefore included in
gross rental income.
2021 recurring earnings per share slightly above guidance at
€1.24, up +3% versus 2020
Recurring earnings per share for 2021 came out at €1.24, up 3%
versus 2020, slightly higher than guided in October 2021, because
of better rent collection in the second half of the year. As a
reminder, Carmila expected recurring earnings per share to be
stable in 2021 versus 2020.
Excluding the impact of IFRS 16, recurring earnings per share
increased by +20% versus 2020 at €1.27.
Cash dividend of €1.00 per share to be proposed to
shareholders at the Annual General Meeting
The Annual General Meeting to be held on 12 May 2022 will be
asked to approve a per-share dividend of €1.00 in respect of 2021,
to be paid in cash. This corresponds to a payout of 81% of
recurring earnings. As a reminder, Carmila's dividend policy for
the period 2022 to 2026, as announced to the market in December, is
to pay out at least €1.00 per share in cash, with a target payout
ratio of 75% of recurring earnings.
New €20 million share buyback programme
A €20 million share buyback programme will be launched soon, in
order to take advantage of the current discount to net asset
value.
Growth in recurring earnings per share10 of +10% per year
expected in 2022 and 2023
Rent collection is expected to continue to improve in the coming
quarters, while gross rental income is expected to increase. As a
result. Carmila's recurring earnings per share is expected to grow
by +10% per year in both 2022 and 2023 at constant scope11.
Like-for-like increase in the portfolio valuation of +0.7%
versus end-2020
As of 31 December 2021, the gross asset value of the portfolio,
including transfer taxes, stood at €6.21 billion, up +1.1% versus
end-2020. On a like-for-like basis the value of the portfolio
increased by +0.7%, the rise being entirely attributable to the
improvement in the rental base. At 6.18%, the portfolio
capitalisation rate (net potential yield) was down -2bps year on
year, decreasing for the first time since 2017. The solid rental
base, dynamic leasing activity and lower vacancy rate all attest to
the quality of Carmila's assets at year-end 2021.
EPRA Net Disposal Value per share of €22.99 at end-2021, up
+3.0% vs. end-2020
Carmila's EPRA Net Disposal Value (NDV) per share was €22.99, up
+3.0% vs. end 2020. The improvement in the EPRA NDV can be
explained by higher appraisal values (positive €0.07 impact),
recurring earnings for the period (positive €1.24 impact), the 2020
dividend (negative €1.00 impact), the dilutive effect of the scrip
portion of the dividend, partially offset by share buybacks and
subsequent cancellation of €8 million worth of shares (negative
€0.19 impact), changes in the fair value of financial instruments
(positive €0.49 impact), and other effects (positive €0.07
impact).
EPRA Net Tangible Assets (NTA) per share was €24.54, down
slightly (-0.7%) compared to the end of 2020. This indicator is not
adjusted for the change in fair value of financial instruments.
Strengthened financial position: loan-to-value ratio12 at
end-2021 at 37.4%
Carmila’s financial position was strengthened in 2021 through
several transactions:
- On 25 March 2021, Carmila issued a €300
million bond maturing in April 2029 and paying a coupon of 1.625%.
- During the year, Carmila partially reimbursed a bank loan falling
due in June 2024 in the amount of €300 million. - In 2021, Carmila
also signed a new €810 million sustainability-linked revolving
credit facility, in two tranches maturing in 2025 and 2027,
including two one-year extension options. The facility replaced an
existing €759 million revolving credit facility maturing in 2024,
and includes two sustainability criteria designed to support
Carmila’s ambitious CSR strategy.
At end-2021 Carmila’s gross debt stood at €2,561 million, with
no major borrowings falling due before the second half of 2023,
€238 million in cash and cash equivalents and liquidity of €1,048
million, including the revolving credit facility.
At end-2021, the average maturity of Carmila’s debt was 4.3
years (versus 4.5 years at end-2020). Carmila’s financial position
is solid, with a loan-to-value ratio (LTV) of 37.4%. The -200 bps
decrease in the LTV ratio versus end-June 2021 was driven by the
reduction in net debt over the period resulting from the improved
collection rate as well as from the increase in the gross asset
value of the portfolio.
At 31 December 2021, the net-debt-to-EBITDA ratio stood at 9.7x,
versus 10.3x one year earlier.
The interest coverage ratio at 31 December 2021 stood at 3.9x,
unchanged on one year earlier.
On 14 September 2021, S&P confirmed Carmila’s BBB rating and
revised its outlook from negative to stable.
4. Building Sustainable Growth
New strategic plan: Building Sustainable Growth
Carmila presented its 2022-2026 Strategic and Financial Plan at
a Capital Markets Day in Paris on 7 December 2021. It is Carmila’s
response to structural changes in retail, which have gathered pace
with the Covid crisis. The plan is based on three pillars:
- A new vision for the role of Carmila as an
incubator and an omnichannel platform for retailers - Leadership in
sustainability, notably through a new generation of development
projects based on mixed-use and a commitment to reach “net zero” by
2030 - Investment in new business lines: digital infrastructure and
new retail concepts
In addition to the financial targets that have already been set
out in this press release, the strategic plan also includes the
following targets:
- New growth initiatives are expected to
contribute an incremental €30 million to recurring earnings by 2026
- The disposal of €200 million of assets by year-end 2023, with a
portion of the proceeds to be used for share buybacks - A
commitment to maintain a solid balance sheet and a target (LTV)
ratio of 40% over the 2022-2026 period
An incubator and omnichannel platform for retailers
Carmila is accelerating the adaptation of its core business
through a new approach to working with retailers. To meet changing
customer expectations, Carmila centres are acting as incubators for
new brands, concepts and pop-up stores, with an offering based on
modestly priced rents (€257 per sq.m. at end-2021). Carmila is also
stepping up the development of its service platform for retailers
with a particular focus on omnichannel, by combining them in the
Carmila Services Hub, which was launched in 2021. Through
partnerships with an ecosystem of start-ups, Carmila is also
enhancing its service offering to retailers at every stage of the
customer experience. These initiatives will support the omnichannel
development of centres and retailers.
The new approach will generate an additional annual contribution
to recurring earnings of €10 million by 2026.
As part of this strategy, Carmila carried out several
initiatives in 2021, including:
- bolstering its online presence by
developing a geo-located customer database of 4.1 million opt-in
contacts in France, Spain and Italy; - continuing to develop
interactions with its customer community by partnering with a
network of 263 local influencers, publishing over 16,000 posts; -
maintaining a high level of visibility for Carmila shopping centres
on social media, including TikTok.
Carmila is also accompanying the changing the face of retail
with quick commerce and live shopping pilot projects:
- In partnership with the startup MADEINLIVE,
organising its first live shopping events for customers on social
media; - teaming up with Glovo in Spain to develop a premium
30-minute delivery service for stores at five shopping centres; -
piloting a purchasing tool in Spain that connects customers via
WhatsApp with a personal shopper.
Lastly, in June 2021, Carmila launched the “DNVB Ready”
competition aiming to identify innovative concepts with a mostly
online presence, and develop them in its centres. Carmila is
committed to helping the four winners of its DNVB Ready competition
roll out their brand in its shopping centres. Flotte, Le Beau Thé,
Baya and Bandit will be supported in setting up their own store, a
sales corner in the Marquette concept store or a pop-up store. The
competition's success attests that brands first developed online
see the value of having a physical presence in shopping
centres.
A new climate commitment ("net zero" on Scopes 1 and 2
emissions by 2030) and BREEAM certification for the entire
portfolio
Carmila is targeting “net zero” Scopes 1 and 2 carbon emissions
by 2030, by which time it will have cut emissions by 90% versus
2019 through reducing energy consumption and transitioning to
renewable energy for its centres. The remaining 10% of emissions
will be offset, in keeping with the recommendations of the Science
Based Targets initiative (SBTi), through the financing of the
environmental transition of local farms in partnership with
TerraTerre. Carmila will also continue to reduce its Scope 3
emissions, with the aim of becoming fully carbon neutral by
2040.
At the end of 2021, Carmila’s Scopes 1 and 2 greenhouse gas
emissions were 10% lower than in 2019, due notably to a 15%
reduction in energy consumption compared to 2019.
In 2021, Carmila's BREEAM In-Use certification rate stood at
93.4% of the portfolio by value, with 57% of sites rated Very
Good.
A leader in the sustainable transformation of local
regions
As part of its new strategy, Carmila’s development pipeline has
been completely revamped with a new focus on mixed-use projects and
environmental excellence. The five major extension projects
(Toulouse Labège, Antibes, Orléans Place d’Arc, Barcelona –
Tarrassa and Montesson), representing €550 million of investments
for a yield of 6.6%, consist of brownfield retail developments that
also include housing, public parks, office space and renewable
energy infrastructure.
Work on these five projects will start with Montesson in 2023.
This €150 million project, which was approved by the national
commercial development authority (CNAC) in 2021, will be financed
by asset rotation.
In 2021, Carmila opened the extension of the Nice Lingostière
shopping centre. The extension was a commercial success, with 100%
of space leased to tenants at opening and new stores for key
accounts such as Cultura and H&M.
Carmila also completed a major restructuring project at Calais
Coquelles, Cité Europe, including the opening of a new Primark
store in January 2021, as well as another 20 significant
restructuring projects for a total GLA of 24,000 sq.m. and
generating €3 million of additional rent for Carmila.
Mixed-use projects
In partnership with Carrefour, Carmila has identified several
sites suitable for big-bang mixed use transformation projects that
will completely change shopping centres’ presence in the city.
These currently 100% retail sites will become new neighbourhoods,
with homes, offices, local services and green spaces.
In 2021 Carmila and Carrefour continued to prepare two projects
at Sartrouville and Nantes, in partnership with Altarea. Work will
start on the first projects from 2025, with delivery from 2030.
Creation of the Next Tower business line
Carmila is developing a new business line by investing in
digital infrastructure through its subsidiary Next Tower.
Next Tower is aiming to develop a total of 470 sites by 2026 in
France and Spain. In 2026, Next Tower will deliver an annual
contribution of €10 million to Carmila’s recurring earnings, with
assets worth an estimated €180 million and €50 million in value
created.
At 31 December 2021, Next Tower operated 71 sites with a shared
rental rate13 of 1.2, annualised rent of €905 thousand, and an
estimated value of €13 million.
Scaling up the expansion of Carmila Retail
Development
Carmila Retail Development (CRD) makes early-stage venture
capital investments to test new concepts and scale them up rapidly
once they have demonstrated that they can be successful in shopping
centres.
By 2026, CRD is targeting a portfolio of 20 brands, representing
more than 700 stores in both Carmila and third-party centres.
CRD will become a new business line consisting of a €40-million
portfolio of minority venture capital investments in new retail
concepts. It is targeting an annual contribution to Carmila
recurring earnings of €10 million by 2026.
At end-2021, CRD had 12 partnerships, five of which were signed
in the year. These partner retail brands represent a total of 235
stores (112 in Carmila centres), including 81 stores opened over
the year (35 in Carmila centres).
Additional information
The presentation of Carmila’s 2021 annual results will be
broadcast live on 17 February 2022 at 2:00 p.m. (CET) on Carmila’s
website (www.carmila.com).
The presentation in English is available on the Carmila website
at:
https://www.carmila.com/en/finance/financial-presentation/
A replay of the webcast will then be available online later that
day.
A document containing the 2021 consolidated financial statements
and detailed business commentary for 2021 is available on the
Carmila website at:
https://www.carmila.com/en/finance/financial-press-releases/
The audit procedures on the consolidated financial statements
have been completed and the audit report is being issued.
INVESTOR AGENDA 17 February 2022: Investor and
Analyst Meeting 21 April 2022 (after market close):
First-quarter 2022 Financial Information 12 May 2022: Annual
General Meeting
ABOUT CARMILA As the third-largest listed owner of
commercial property in continental Europe, Carmila was founded by
Carrefour and large institutional investors in order to transform
and enhance the value of shopping centres adjoining Carrefour
hypermarkets in France, Spain and Italy. At 31 December 2021, its
portfolio was valued at €6.21 billion, comprising 214 shopping
centres, all leaders in their catchment areas.
Carmila is listed on Euronext-Paris Compartment A under the
symbol CARM. It benefits from the tax regime for French real estate
investment trusts (“SIIC”).
Carmila became part of the FTSE EPRA/NAREIT Global Real Estate
(EMEA Region) indices on 18 September 2017. Carmila became part of
the Euronext CAC Small, CAC Mid & Small and CAC All-tradable
indices on 24 September 2018.
Important notice Some of the statements contained in this
document are not historical facts but rather statements of future
expectations, estimates and other forward-looking statements based
on management’s beliefs. These statements reflect such views and
assumptions prevailing as of the date of the statements and involve
known and unknown risks and uncertainties that could cause future
results, performance or events to differ materially from those
expressed or implied in such statements. Please refer to the most
recent Universal Registration Document filed in French by Carmila
with the Autorité des marchés financiers for additional information
in relation to such factors, risks and uncertainties. Carmila has
no intention and is under no obligation to update or review the
forward-looking statements referred to above. Consequently, Carmila
accepts no liability for any consequences arising from the use of
any of the above statements.
This press release and the presentation of
Carmila’s 2021 annual results are available on Carmila’s Finance
webpage: https://www.carmila.com/en/finance/
1 At constant scope 2 Including transfer taxes 3 As of 10
February 2022 4 Excluding the Covid-19 impact. 5 Net Disposal Value
6 Net Tangible Assets 7 Versus the Quantaflow panel for France and
Shopper Trak for Spain 8 As of 10 February 2022 9 As of 10 February
2022 (79% in Q1, 79% in Q2, 93% in Q3, 94% in Q4) 10 At constant
scope 11 Based on the assumption that all stores in Carmila centres
remain fully open throughout 2022 and 2023. 12 Net debt over value
of the asset portfolio, including transfer taxes. 13 Average number
of antennae per tower
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220216005855/en/
INVESTOR AND ANALYST Jonathan Kirk – Head of Investor
Relations jonathan_kirk@carmila.com +33 6 31 71 83 98
PRESS Morgan Lavielle - Communications Director
morgan_lavielle@carmila.com +33 6 87
77 48 80
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