MRM : 3rd quarter 2016 financial information
November 10 2016 - 1:30AM
Press release
3rd quarter 2016
financial information
-
3rd quarter 2016
consolidated revenues: €3.1 million, up 5.8% like-for-like
-
Further refocusing on retail properties
-
Maturity extension for more than 80% of the debt
initially falling due in 2017
Paris, 10
November 2016: MRM (Euronext code ISIN FR0000060196), a mixed
real estate investment company specialising in retail and office
property, announced today its consolidated revenues for the third
quarter of 2016, corresponding to gross rental income recorded over
the period.
Consolidated revenues for the
third quarter of 2016 totalled €3.1 million, down 5.1% relative to
the third quarter of 2015. This decrease includes the effect of two
sales[1] of office
properties since 1 July 2015, in accordance with MRM's
strategy of refocusing its business on retail properties. On a
like-for-like basis[2], rental
income increased by 5.8%. This performance reflects primarily the
improved occupancy rate of the office property portfolio, which
will enable MRM to sell these properties on the best possible
terms.
Gross rental income for the first
nine months of 2016 came to €9.9 million, down 3.6% compared with
the same period last year. On a like-for-like basis2, gross rental
income increased by 2.8%.
Retail
property
During the third quarter of 2016,
retail properties generated gross rental income of €2.2 million,
down 4.9%. The arrival of new tenants only partly made up for
strategic vacancies and the adjustment of rental terms granted
during the phase preceding the implementation of retail property
value-enhancement programs.
Over the first nine months of
2016, gross rental income from retail properties totalled €6.6
million, down 6.8% compared with the same period in 2015.
Note that rental income for the
period benefited only very marginally from leases signed since the
last few months of 2015 within the framework of retail property
value-enhancement programs, with the first of these leases coming
into effect only in the course of the third quarter of 2016: at the
end of September 2016, 11 leases concerning a total of 7,680 sqm
have been signed, representing total additional rental income of €1
million, with leases coming into effect staggered until
mid-2017.
Offices
During the third quarter, the
Solis building in Les Ulis was sold for €11.0 million (excluding
transfer taxes).
Gross rental income from office
properties came to €0.9 million in the third quarter of 2016.
This 5.6% drop relative to the third quarter of 2015 was due
to two asset sales1 carried out
since 1 July 2015, the effect of which has been partly
offset by the very sharp rise in rental income from properties
still in the portfolio at the end of September 2016. On a
like-for-like basis2, this
represents an increase of 43.4%. This relates primarily to new
leases at the Cap Cergy building in Cergy-Pontoise.
Over the first nine months of
2016, gross rental income from office properties totalled €3.4
million, up 3.2%. On a like-for-like basis1, rental
income increased by 28.6%.
Consolidated revenues (€m) |
Q3
2016
|
% of total |
Q3
2015
|
Change
|
Change
like-for-
like2 |
|
9 months
2016 |
% of total |
9
months
2015 |
Change
|
Change
like-for-like2 |
Retail |
2.19 |
70% |
2.30 |
-4.9% |
-4.9% |
|
6.58 |
66% |
7.06 |
-6.8% |
-6.8% |
Offices |
0.94 |
30% |
0.99 |
-5.6% |
+43.4% |
|
3.37 |
34% |
3.26 |
+3.2% |
+28.6% |
Total gross rental income |
3.13 |
100% |
3.29 |
-5.1% |
+5.8% |
|
9.95 |
100% |
10.32 |
-3.6% |
+2.8% |
(Unaudited
figures)
Financial
position
During the third quarter of 2016,
MRM's gross debt - which totalled €101.0 million
at 30 June 2016 - was reduced by €6.0 million
after repayment of the debt relating to the Solis building and bank
loan repayments made during the period.
In addition, MRM announces that it
has accepted today the firm offer from a partner bank for setting
up, by the end of the year, two credit facilities maturing in the
end of 2021. The first €48.6 million credit facility
corresponds to an early refinancing of the credit facility of the
same amount maturing at the end of 2017, and the second €15.2
million credit facility is intended to contribute financing retail
property value-enhancement programs.
MRM also announces that it has
accepted the firm offer for a one-year extension, at the same
conditions, of a €22.0 million loan initially maturing in January
2017.
To date, more than 80% of the
financial debt falling due in 2017 is subject to a maturity
extension.
Lastly, MRM announces the
signature on 8 November 2016 of a preliminary sales agreement
concerning the 12,800 sqm Cap Cergy office building in
Cergy-Pontoise at a price in line with the appraisal value as of 30
June 2016. The transaction is due to be closed within two months.
As there is no debt relating to Cap Cergy, the sale of this
property will have a significant impact on MRM's cash position.
Calendar
Revenues for the fourth quarter of
2016 and 2016 full-year results are due on 24 February 2017 before
market opening and will be presented during an information meeting
to be held on the same day.
About
MRM
MRM is a listed real estate company with a portfolio worth €224.4
million (excluding transfer taxes) as at 30 June 2016, comprising
retail properties (66%) and offices (34%). Since 29 May 2013, SCOR
SE has been MRM's main shareholder, holding a 59.9% stake. MRM is
listed in compartment C of Euronext Paris (ISIN: FR0000060196 -
Bloomberg code: MRM: FP - Reuters code: MRM.PA) and opted for the
SIIC status on 1 January 2008.
For more information:
MRM
5, avenue Kléber
75795 Paris Cedex 16
France
T +33 (0)1 58 44 70 00
relation_finances@mrminvest.com |
Isabelle
Laurent, DDB Financial
54, rue de Clichy
75009 Paris
France
T +33 (0)1 53 32 61 51
isabelle.laurent@ddbfinancial.fr |
Website:
www.mrminvest.com
Appendix 1: Asset
sales since 2013
Assets sold |
Date of sale |
Price excl. transfer taxes
(€m) |
Office
building,
Rue de la Bourse, Paris (2nd arrondissement) |
December
2013 |
10.4 |
Office
building,
Rue Cadet, Paris (9th arrondissement) |
April
2014 |
12.0 |
Delta
office complex,
Rungis (94) |
September 2014 |
10.5 |
Plaza
office building,
Rue de la Brêche-aux-Loups, Paris (12th arrondissement) |
April
2015 |
16.8 |
Cytéo
office building,
Rueil-Malmaison (92) |
April
2016 |
6.3 |
Solis
office building,
Les Ulis (91) |
July
2016 |
11.0 |
Appendix 2:
Quarterly rental income
Consolidated revenues
(€m) |
Q1
2016 |
Q1
2015 |
Change |
Change
like-for-like |
Retail |
2.21 |
2.33 |
-4.8% |
-4.8% |
Offices |
1.21 |
1.23 |
-2.4% |
+17.0% |
Total gross rental income |
3.42 |
3.56 |
-4.0% |
+1.9% |
Consolidated revenues
(€m) |
Q2
2016 |
Q2
2015 |
Change |
Change
like-for-like |
Retail |
2.18 |
2.43 |
-10.5% |
-10.5% |
Offices |
1.22 |
1.03 |
+18.4% |
+30.9% |
Total gross rental income |
3.40 |
3.47 |
-1.9% |
+1.0% |
Consolidated revenues
(€m) |
Q3
2016 |
Q3
2015 |
Change |
Change
like-for-like |
Retail |
2.19 |
2.30 |
-4.9% |
-4.9% |
Offices |
0.94 |
0.99 |
-5.6% |
+43.4% |
Total gross rental income |
3.13 |
3.29 |
-5.1% |
+5.8% |
[1] See the
list of assets sold provided in the appendix.
[2] Revenues
are calculated on a like-for-like basis by deducting the rental
income generated by acquired assets from the revenues reported for
the current year and deducting the rental income generated by
assets sold from the revenues reported for the previous
year.
A list of office properties sold within the framework of the
refocusing of MRM's activities initiated in mid-2013 is provided in
the appendix. No acquisitions have been made since this date.
MRM Press release in PDF
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information contained therein.
Source: MRM via Globenewswire
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