- Net asset value (NAV) per share of EUR 11.70, up +17.2% on 2014 and 24% since the company’s IPO on July 2014.
- Value-added management of the asset portfolio has helped to lift both gross rental income to EUR 35.5 million (up from EUR 5.9 million in 2014) and the property occupancy rate to 90% on a like-for-like basis.
- The company intends to double the dividend to EUR 3.0 million in respect of FY 2015.
Madrid, 24 February 2016. Axiare Patrimonio ended 2015 with a consolidated net profit of EUR 85.3 million, quadrupling the 2014 figure of EUR 18.9 million. The value-added active management of its asset portfolio has contributed to lift the gross rental income up to EUR 35.5 million, compared to EUR 5.9 million in 2014, as well as having raised the like-for-like occupancy rate for its real estate assets to a 90%. The valuation carried out by CBRE Valuation Advisory under RICS standards, set the portfolio value up to EUR 859 million at year-end, meaning a like-for-like increase of +11.8%, or +15.3% above the acquisition price. EPRA NAV per share was EUR 11.70, which is +17.2% higher than at year-end 2014 and +24% above that at the time of the July 2014 IPO. The company plans to double the FY2015 ordinary dividend to EUR 3.0 million.
Chief Executive Officer of Axiare Patrimonio, Luis López de Herrera-Oria, said: “I am delighted to be able to report very strong results on our first full year of activity. The company is performing well on all fronts: building an exceptional asset portfolio with a disciplined investment approach to deliver substantial returns for shareholders; managing lettings diligently to capture the meaningful reversionary potential across the portfolio; executing our best-in-class redevelopments to further enhance profits; ensuring a solid balance sheet that will allow us to exploit in full the opportunities still laying ahead”
The company has a solid financial position to fund further growth. At year-end 2015, the company has closed bilateral financing agreements for amounting of 333 million, with a gross LTV of 39% versus the 16% of 2014 and 10 years of debt weighted average maturity.
Disciplined investment activity and active asset management
Axiare Patrimonio staunchly keeps to a disciplined strategy of acquiring commercial real estate assets with strong value uplift potential in and boosted its value-added asset management policy. As of year-end 2015 it has already invested 90% of the raised funds in last June’s fully-subscribed capital increase of EUR 395 million -which has allowed the company to double in size with the goal of continuing to add value for its shareholders. It thus invested an amount of EUR 339 million on acquiring 14 assets in 2015. The company has thus doubled the size of its portfolio, which was valued at some EUR 859 million at year-end, compared to EUR 439 million in 2014.
The 84% of these new properties are prime offices and logistics assets in well-established areas of Madrid and Barcelona. Specifically, in 2015 the company added 95,029 sqm of office gross lettable area (GLA) to its asset portfolio and 42,253 sqm of logistics GLA, with 10,447 sqm of hotel space and 21,111 sqm of retail warehousing. These new properties are already producing an annual rent of EUR 13.5 million.
Axiare Patrimonio’s active asset management model consists on applying professionalised added-value management of both rents and tenant relations, on one hand; and carrying out refurbishments to improve the properties quality and sustainability, on the other hand. The company aims to position its assets as beacons of quality and profitability within its submarkets.
With regards to rental management, in 2015 Axiare Patrimonio managed to step up income from its asset portfolio by 8.4% compared to rental income on the same assets in 2014 in like-for-like terms and it renegotiated 21% of its rental agreements. Moreover, three new rental agreements were signed over the year totalling 33,103 sqm of GLA.
In relation to proactive management to enhance the quality and sustainability of buildings, the company is carrying out work of various kinds on several of its properties. As of February 2016 it has already concluded the efficiency improvements in the first phase of the Rivas Vaciamadrid logistics space, which has been awarded the BREEAM certificate for sustainability of a worldwide standard. The other assets undergoing refurbishment are office buildings in Madrid. The first of these is near completion and handover is due to take place this March. It is located at calle Manuel de Falla 7, next to Madrid’s Santiago Bernabéu stadium. The building has undergone a major redevelopment and in accordance with the requirements for LEED-Gold environmental certification, which will be awarded when the works have been completed.
The company is working on the full refurbishment of a further two office buildings, which it plans to complete in the third quarter of 2016 and these will be marketed in the coming month of March.
Dividend and share price performance
The Board of Axiare Patrimonio will propose to the Shareholders Meeting to a FY2015 ordinary dividend of EUR 3.0 million –doubling the amount comparing to the 1.5 million of 2014. This increase means paying out approximately EUR 0.04 per share. The company’s share price on the continuous market rose 27% over the year, closing on 31 December at EUR 13.2 and ending 2015 with a market capitalisation of EUR 948 million.