(Boursier.com) — The gross rental income of MRM for the year 2022, corresponding to rents paid, amounted to 10.2 million euros, up 4.7%. This change is mainly explained by scope effects: the acquisition of Flins and Ollioules had a positive impact of 0.7 ME (1.5 months of consolidation) while the disposals in October 2021 had a negative impact of 0.2 ME.
On a like-for-like basis, gross rental income is stable, with the entry into effect of new leases and indexation compensating for the temporary vacancy of the medium-sized surface area vacated in January 2022 within Carré Vélizy and whose new lease took effect at the end of April 2022. After taking into account unrecovered property charges, net rental income stands at 8.1 ME, (8 ME in 2021), an increase of 2.4%.
The outcome of the Covid protocols which set the framework for support measures for tenants resulted in the reversal of provisions made in previous years. MRM has also returned to a normalized level of collection of rents and charges with a rate above 95% for the year as a whole.
Given the increase in net rental income, the favorable impact of the outcome of the Covid protocols and the decline in operating expenses, the gross operating surplus is up by 5.4% to reach 5.8 ME in 2022.
The cost of net debt increases from 1.2 ME in 2021 to 1.8 million in 2022. Net operating cash flow stands at 4 ME, an increase of 2.7% compared to 2021.
Over a full year, the additional revenue generated by the two shopping centers acquired at the end of 2022 will enable better absorption of operating expenses. In fact, compared to net rental income, these would come out at 19.1% in 2022 proforma data, compared to 29.5% on the basis of published 2022 data and 31.0% in 2021.
Calculated on the basis of the implementation of the new €42.0 million loan at the start of 2022 and therefore more favorable borrowing conditions than current rates, the cost of financial debt comes to €2.6 million in 2022 proforma data. . By applying the assumption of a 3-month Euribor rate of 3% to the whole of 2022, the cost of financial debt in 2022 pro forma would stand at €4.4 million.
Solid financial situation
In November 2022, MRM set up a new mortgage bank loan in the amount of €42 million maturing at the end of 2029 intended to finance the acquisition of the Flins and Ollioules shopping centres. As of December 31, outstanding debt amounted to €116.7 million (€75.7 million at the end of 2021). The average cost of debt is 2.07%. Fully remunerated at variable rates, the debt is 77% covered by caps (with strike rates between 1% and 2.5%). The next significant repayment deadline is the end of 2028.
At the end of December, MRM had cash and cash equivalents of 10.4 ME (9.7 ME a year earlier).
The financing plan for the acquisition of the two centers has made it possible to maintain a controlled level of net LTV with a ratio of 43.6% at the end of December 2022 (40% a year earlier).
Increase in NAV
NAV per share at the end of 2022 up by 1.3% compared to the NAV per share 2021 restated for the distribution to shareholders
The EPRA NDV NAV reached 139 ME at the end of December 2022. It compares to 97.4 ME a year earlier, i.e. 93.5 ME after distribution to shareholders of 3.9 ME for the 2021 financial year. After distribution , this represents a 48.7% increase in the EPRA NDV ANR amount. At the end of December 2022, the EPRA NDV NAV stood at 43.4 euros per share, an increase of 1.3% despite the increase in the number of shares linked to the capital increases carried out in 2022.
Distribution to shareholders
MRM’s Board of Directors has decided to propose to shareholders a bonus distribution of €1.80 per share for the 2022 financial year, i.e. an amount similar to that paid for the 2021 financial year This distribution would represent a 6.7% return on the share price as of March 6, 2023.
This proposal will be submitted to the approval of the General Assembly of June 7th. The date scheduled for the detachment of the coupon is June 12, for payment on June 14.
Outlook
MRM confirms that these acquisitions allow it to target an amount of net annualized rents of more than 16 ME, and this by 2025 (10 ME previously). This objective is given on the basis of the current portfolio (excluding acquisitions or disposals).
MRM intends to maintain its policy of regular distribution to shareholders.