MRM : Third quarter 2017 financial information
November 09 2017 - 1:30AM
Press release
Third quarter 2017 financial
information
Paris,
9 November 2017: MRM (Euronext code ISIN FR0000060196), a
real estate investment company specialising in retail property,
announced today its consolidated revenues for the third quarter of
2017, corresponding to gross rental income recorded over the
period.
Consolidated revenues for the third quarter of 2017 totalled
€2.8 million, down 11.2% relative to the third quarter of
2016. This fall notably includes the effect of two sales[2] of office
properties since 1 July 2016, in accordance with the strategy
of refocusing MRM's business on retail properties. On a
like-for-like basis1, gross rental
income increased by 2.2%. This performance reflects primarily the
improvement in the occupancy rate for the Nova building to 78%,
which now constitutes a suitable level with a view to its
sale.
Gross rental income for the first nine months of 2017 came to
€8.4 million, down 15.1% compared with the same period last
year. On a like-for-like basis1, gross rental
income increased by 4.2%.
Retail
During the third quarter of 2017, retail properties generated gross
rental income of €2.2 million, up 2.5%. The acquisition in
late June 2017 of the only retail unit not yet owned by MRM within
the Aria Parc retail park in Allonnes represents 1.3 points of
growth. On a like-for-like basis1,[3], revenues
increased by 1.5% thanks to the arrival of new tenants.
Over the first nine months of 2017, gross rental income from retail
properties totalled €6.8 million, up 3.1% or 2.9% on a
like-for-like basis1,3 compared
with the same period in 2016.
It should be noted that while certain leases signed within the
framework of retail property value-enhancement plans have gradually
come into effect since the fourth quarter of 2016, other signed
leases are yet to come into effect until the end of 2018.
Offices
Gross rental income from office properties came to
€0.5 million in the third quarter of 2017. This represents a
fall of 43.4% compared with the third quarter of 2016 as a result
of the sale of Solis in Les Ulis in July 2016 and of Cap Cergy in
Cergy-Pontoise in December 2016. The increase of 5.7% on a
like-for-like basis1 relates to
new leases within the Nova building in La
Garenne-Colombes.
Over the first nine months of 2017, gross rental income from office
properties totalled €1.7 million, down 50.7%. On a
like-for-like basis1, gross rental
income increased by 10.3%.
| Consolidated revenues (€m) |
Q3
2017
|
% of total |
Q3
2016
|
Change
|
Like-for-like change1 |
|
9 months
2017
|
% of total |
9 months
2016
|
Change
|
Like-for-like change1 |
| Retail |
2.24 |
81% |
2.19 |
+2.5% |
+1.5% |
|
6.79 |
80% |
6.58 |
+3.1% |
+2.9% |
| Offices |
0.53 |
19% |
0.94 |
-43.4% |
+5.7% |
|
1.66 |
20% |
3.37 |
-50.7% |
+10.3% |
| Total gross rental income |
2.77 |
100% |
3.13 |
-11.2% |
+2.2% |
|
8.44 |
100% |
9.95 |
-15.1% |
+4.2% |
(Unaudited
figures)
Financial position
MRM took out a new €15.2 million bank loan on 30 October
2017, after the closing date for the third quarter. This new loan
matures at the end of October 2022 (bullet loan), replacing a
€14.8 million credit facility maturing on 8 December
2017, which has therefore been repaid in advance.
With this refinancing transaction, more than 90% of MRM's debt now
has a maturity of four years or more, not including the
€22 million loan from SCOR SE (MRM's majority shareholder)
secured against the Nova office building, which is due to be
sold.
Calendar
Revenues for the fourth quarter and 2017 full-year results are due
on 23 February 2018 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
€200.7 million (excluding transfer taxes) as at end of June
2017, primarily comprising retail properties. Since 29 May
2013, SCOR SE has been MRM's main shareholder, holding a 59.9%
stake. MRM is listed in compartment C of NYSE Euronext Paris (ISIN:
FR0000060196 - Bloomberg code: MRM:FP - Reuters code: MRM.PA).
MRM opted for 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
T +33 (0)1 53 32 61 51
M +33 (0)6 42 37 54 17
isabelle.laurent@ddbfinancial.fr |
Website: www.mrminvest.com
Appendix 1: Asset
sales since 2016
| Assets sold |
Date of sale |
Price excl. transfer taxes
(€m) |
Cytéo
office building,
Rueil-Malmaison (92) |
April
2016 |
6.3 |
Solis
office building,
Les Ulis (91) |
July
2016 |
11.0 |
Cap Cergy
office building,
Cergy-Pontoise (95) |
December
2016 |
21.1 |
| Garden
centre, Montrichard (41) |
April
2017 |
0.1 |
Appendix 2:
Quarterly rental income
Consolidated revenues
(€m) |
Q1
2017 |
Q1
2016 |
Change |
Like-for-like change1 |
|
Retail |
2.29 |
2.21 |
+3.4% |
+3.4% |
|
Offices |
0.59 |
1.21 |
-50.7% |
+20.7% |
| Total gross rental income |
2.88 |
3.42 |
-15.7% |
+6.5% |
Consolidated revenues
(€m) |
Q2
2017 |
Q2
2016 |
Change |
Like-for-like change1 |
|
Retail |
2.25 |
2.18 |
+3.6% |
+3.7% |
|
Offices |
0.53 |
1.22 |
-56.4% |
+4.7% |
| Total gross rental income |
2.79 |
3.40 |
-18.0% |
+3.9% |
Consolidated revenues
(€m) |
Q3
2017 |
Q3
2016 |
Changege |
Like-for-like change1 |
|
Retail |
2.24 |
2.19 |
+2.5% |
+1.5% |
|
Offices |
0.53 |
0.94 |
-43.4% |
+5.7% |
| Total gross rental income |
2.77 |
3.13 |
-11.2% |
+2.2% |
[1] 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 properties sold within the framework of the refocusing of
MRM's activities on retail properties initiated in mid-2013 is
provided in the appendix.
[2] See the
list of assets sold provided in the appendix.
[3] Changes to
the scope of the retail properties portfolio relate to the
acquisition at Aria Parc in Allonnes at the end of June 2017 and
the sale of a garden center in April 2017.
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information contained therein.
Source: MRM via Globenewswire
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