- The Company headed up by Luis López de Herrera-Oria obtained a net profit between January and March of EUR 13.1 million after increasing gross rents by 36%
- During the quarter, the Socimi has invested EUR 157.9 million in the acquisition of four properties and continue advancing with its pipeline
Madrid, 11 May 2017.
- So far this year, a total of 93,400 sqm of new leases have been signed; 16,200 sqm of new office lettings and 77,200 sqm of new logistics lettings, establishing a new company record. This validates Axiare’s property repositioning strategy to convert its assets into the best in their respective catchment areas
- So far this year, the Socimi has signed 93,400 sqm of new lettings
The financial results support the road map set out by the management team. Axiare Patrimonio has obtained a net profit of EUR 13.1 million in Q1 2017, a 156% increase y-o-y. Gross rental income in Q1 2017 reached EUR 13.4 million, representing a 36% increase y-o-y. Like-for-like, rental growth has increased 4.9% against Q1 2016.
Axiare Patrimonio’s management team remains strongly committed to the investment plan. It continues to purchase high quality properties in established areas of Madrid and Barcelona at attractive prices with the aim of maximising shareholder returns. So far this year, the Socimi has acquired four properties for EUR 158 million, reaching a record property portfolio value of over EUR 1,500 million. In addition to the EUR 93 million raised via the share capital increase carried out on 8 March, Axiare Patrimonio has gained bank financing for EUR 119 million, capitalising on current low interest rates. The funds raised will allow Axiare to continue to develop its real estate investment strategy and provide strong value uplift.
Letting activity has been extremely active since the start of the year. Just in Q1 2017 the Company has signed 4,485 sqm of new office lettings, which is a new record; in logistics it has signed two new leases totalling 26,165 sqm, taking occupancy in this sector up to 97% and has also renegotiated a further 23,456 sqm. Portfolio occupancy at 31 March therefore stands at 92.6%, a y-o-y increase of 1.516 bps. In addition to this, over 63,000 sqm of new office and logistics leases have been signed to date since 31 March, including recently repositioned properties such as Manuel de Falla and Don Ramón de la Cruz.
The property repositioning strategy to transform properties into the best in their respective catchment areas is progressing perfectly to plan, both inside and outside of the CBD. Four of the five main repositionings in 2016 are now fully let and the Company is positive about the leasing outlook for the property repositionings currently underway.
Axiare Patrimonio’s CEO, Luis López de Herrera-Oria, confirmed: “These excellent financial and operational results are yet another demonstration of the capabilities of the management team to carry out the strategy applied when we first listed on the stock exchange”. López de Herrera-Oria added: “this quarter we have turned to the capital markets to continue to take advantage of the opportunities that we see in the market. We are currently in advanced negotiations valued at EUR 350 million.”
Following the four acquisitions completed in 2017, Axiare Patrimonio consolidates a well-balanced portfolio of over 1.5 billion euros, comprising stable, income-producing assets and those with significant potential upside. The portfolio breakdown stands at 75% offices, 16% logistics assets and 9% other commercial properties, primarily retail warehouses.
About Axiare Patrimonio:
Axiare Patrimonio is a Spanish company that has been listed on the Madrid Stock Exchange as a SOCIMI (Sociedad Anónima Cotizada de Inversión Inmobiliaria
), since July 9, 2014. Its primary activity is the identification of investment opportunities in the Spanish real estate market and the creation of a prime property portfolio with strong potential value uplift that provides an attractive yield for its shareholders.
The company’s value creation strategy is based on the active management of its portfolio, carried out by an expert team solely dedicated to this task – in order to maximise its quality, occupancy and value and transform the properties in to the leading schemes in their catchment area. Axiare Patrimonio’s investment activity is focused on the acquisition of Grade A office buildings – or that have the potential to be – in the CBD and the most sought after business districts in Madrid and Barcelona; logistics platforms on the main distribution highways and retail schemes in established areas in Spain.