First quarter 2021 financial information
May 06 2021 - 1:30AM
First quarter 2021 financial information
Press
release
First quarter 2021 financial information
- Consolidated revenues for the
first quarter of 2021 of €2.42 million, up 0.8%
-
Resilience
to new restrictions on
shop openings thanks to the
retailer-mix
- Brisk letting
activity
Paris, 6 May 2021: MRM
(Euronext code ISIN FR0000060196), a real estate company
specialising in retail property, today announced its consolidated
revenues for the first quarter of 2021, corresponding to gross
rental income generated over the period.
Restrictions relating to the health crisis
Retail activity was again severely limited
during the first quarter of 2021 by restrictions on shop openings
and curfews introduced by the French government to cope with the
coronavirus pandemic.
In this situation, MRM continued to benefit from
a relatively favourable retailer-mix, with a large proportion of
retailers dedicated to food and household equipment as well as of
discount stores and services. These sectors make up around two
thirds of MRM’s rental base, while the most distressed sectors –
such as personal equipment and beauty – account for just 10%.
During the first quarter of 2021, stores that
remained open represented on average 73% of MRM’s gross annualised
rents1. On 3 April 2021, the measures of strong restriction of
authorized activities have been extended to the whole territory.
MRM’s shopping centres have remained in operation in order to allow
access to authorised shops (food, health, hairdressers and
bookshops). The garden centres in the Gamm Vert portfolio are also
open, while other shops are shut. Reflecting MRM’s retailer mix,
shops that are currently open still make up 51% of MRM’s gross
annualised rents. This compares with 27% during the first French
lockdown in 2020.
Revenue growth
Revenues for the first quarter of 2021 totalled
€2.42 million, an increase of 0.8% compared with the first quarter
of 2020.
Reflecting the letting successes achieved last
year despite the backdrop of the health crisis, MRM benefited
during the first quarter from the full effect of new leases signed
in 2020 for the Valentin shopping centre (near Besançon), the Carré
Vélizy mixed-use complex (Vélizy-Villacoublay), Passage du Palais
(Tours) and Les Halles du Beffroi (Amiens). This positive impact
was partly offset by the decline in revenues relating to the
effects of the crisis (staggering of rent write-offs granted in
respect of 2020 and accompanied by counterparts amending the lease
terms2, as well as the decline in variable3 or ancillary revenues).
The positive effect of indexation is marginal.
Quarterly revenues€m |
Q12021 |
Q12020 |
Change |
Total gross rental income |
2.42 |
2.40 |
+0.8% |
(unaudited
figures)
Letting activity
Leases4 signed during the period for a total
floor area of 2,700 sqm represent rents of €0.5 million, with a
positive reversion rate of 4%. During the first quarter of 2021,
there were no departures and no notices were given.
The physical occupancy rate of the portfolio as
at 31 March 2021 was stable at 87%.
Rent collection
MRM continued to recover arrears in respect of
2020. Overall, the collection rate of rents and charges due after
taking account of rent write-offs agreed with tenants rose from 90%
as at 31 December 2020 to 93% as at 31 March 2021.
The rent collection rate for the first two
quarters of 2021 was 80% and 49% respectively.
In early February 2021, the French government
announced the introduction of measures to help retailers affected
by government-imposed shutdowns since the start of the year to
cover their fixed costs. MRM might grant support measures, on a
case-by-case basis, for the tenants concerned depending on the
practical implementation of this government aid.
Financial position
MRM’s financial position remains healthy with a
solid balance sheet. The next major debt repayment is in June
2022.
MRM has entered into an agreement with its main
partner bank to postpone amortisation payments due in 2021,
representing a total of €1.9 million, until the loan maturity in
June 2022. This agreement strengthens the Group’s liquidity
position under the exceptional circumstances relating to the health
crisis.
Outlook
MRM has taken action to support the upturn in
activity expected as of 19 May and to actively continue to let
available space.
In addition, MRM is planning to complete the
extension of the Valentin shopping centre and outdoor works by June
2021.
MRM maintains its target of total annualised net
rents in excess of €10 million, based on an assumed physical
occupancy rate of 95%. This target is based on the current
portfolio (excluding acquisitions and disposals).
Calendar
The General Meeting of Shareholders called to
approve the financial statements for fiscal year 2020 will be held
on 24 June 2021.
Revenues for the second quarter and 2021
half-year results are due on 30 July 2021 before market
opening.
About MRM
MRM is a listed real estate investment company
that owns and manages a portfolio of retail properties across
several regions of France. Its majority shareholder is SCOR SE,
which owns 59.9% of share capital. MRM is listed in Compartment C
of Euronext Paris (ISIN: FR0000060196 - Bloomberg code: MRM:FP –
Reuters code: MRM.PA). MRM opted for SIIC status on 1 January
2008.
For more information:
MRM5, avenue Kléber75795 Paris Cedex 16FranceT +33
(0)1 58 44 70 00relation_finances@mrminvest.com |
Isabelle Laurent,
OPRG FinancialT +33 (0)1 53 32 61 51M +33 (0)6 42
37 54 17isabelle.laurent@oprgfinancial.fr |
Site Internet:
www.mrminvest.com
1 86% from 1 to 31 January 2021 (restaurants and gyms remaining
shut) then 70% up to 18 March (closure of shopping centres with
useful retail space of over 20,000 sqm apart from to provide access
to essential stores) and finally 58% until the end of the quarter
(introduction of lockdown measures in regions subject to increased
vigilance)2 Counterparts amending the lease terms in the sense of
IFRS 16 (e.g. extension of the lease duration or waiver of the
termination rights at the next break option date)3 Including an
exceptional entry in the first quarter of 2021 relating to
allowances granted on variable rents within the framework of a
lease renewal at the Valentin shopping centre4 New leases or
renewals
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