(Boursier.com) — Despite the still sensitive health situation in 2021, the rental activity of MRM was very strong, with contractual rents of 1.7 million euros, representing 16% of the rental base. The 18 leases signed for a total area of 10,300 m2 generated a positive reversion rate of 1%.
The value of the portfolio stood at €162 million at December 31, 2021, up +0.6% compared to the end of 2020. This change includes an impact of -€4.4 million linked to the disposals carried out in 2021. On a like-for-like basis , the value of the portfolio increased by +3.5%, mainly reflecting the rise in occupancy rates and net rents.
Gross rental income for 2021, corresponding to paid rents, increased by +2.5% compared to 2020 to reach 9.7 ME. On a like-for-like basis, ie after restatement of the impact of disposals, they increased by +3.4%. net rental income increased by +3.9% to 8 ME, (7.7 ME in 2020).
Operating profit before disposals and change in fair value amounted to €4.5 million in 2021, an increase of +16.6% compared to 2020. Operating profit came to €7.6 million (-5.8 million in 2020).
Consolidated net income stands at +5.6 ME in 2021 (-7.2 ME in 2020).
Maintaining a healthy financial situation
In December 2021, MRM set up a new loan for a total amount of €82.1 million with a maturity of 7 years. This new mortgage financing is backed by the entire property portfolio. It is made up of a line of credit in the amount of €75.7 million which enabled MRM to prepay all of its bank debt which was maturing in 2022 and 2023, and a line of credit13 of 6.4 ME intended to finance new investments. The next repayment deadline has therefore been postponed to 2028.
Gross financial debt is down to 74.4 ME at December 31, 2021, compared to 76.8 ME at the end of 2020. Debt, remunerated at a variable rate (Euribor 3 months + 165 bps of margin), is 77% hedged by a heading. At the end of December 2021, MRM had cash and cash equivalents of €9.7 million (€10.2 million a year earlier). The net LTV ratio stands at 40% (41.4% at the end of 2020).
The EPRA NDV NAV increased by +4.6%. It stands at 97.4 ME or 2.23 euros/share (93.1 ME and 2.13 euros/share at the end of December 2020)
Outlook
While all businesses have been able to gradually reopen their doors to the public since May 19, 2021, the context is still marked by the possible risk of new developments in the health crisis.
Despite the disposals carried out in 2021, MRM maintains its objective of a total amount of net annualized rents greater than €10 million, with an assumption of a physical occupancy rate of 95%. This objective is given on the basis of the current portfolio (excluding acquisitions or disposals).
François Matray, Managing Director of MRM, comments: “All of MRM’s management indicators are green in 2021. Thanks in particular to the excellent rental activity, net annualized rents have increased again, portfolio occupancy rates have increased and the value of the portfolio is on the rise. The net operating cash flow reached an amount significantly higher than that of 2019, the last financial year before the health crisis. At the same time, we refinanced all of our bank debt which was coming due. between June 2022 and June 2023, on satisfactory terms reflecting the quality of our assets and with a maturity of 7 years. This was one of our main priorities for 2021. On the strength of its solid financial fully devote itself to the management of its portfolio of diversified retail assets, with a view to exploiting the value potential that it still harbors and continuing to adapt it to changes in retail. Egration of environmental and societal issues will also be a strong focus of our action plan. Physical retail still has a bright future when it is managed dynamically, with a pragmatic vision in line with changing consumer trends. Finally, despite the disposal of two non-strategic assets in 2021, we maintain our objective of achieving at least 10 million euros in annualized net rental income based on the current portfolio”.