7 September 2018 – Expansión
Testa – the residential rental Socimi – has closed the first quarter of the year with a net profit of €8.94 million, down by 81% YoY, due to extraordinary expenses, such as the €107 million it paid to Merlin for the cancellation of management contracts. Excluding those extraordinary items, and others such as variations in asset values, the funds generated from operations (FFO) – equivalent to the firm’s operating cash flow or the recurring profit – increased by 60% to €19.58 million.
In terms of gross revenues from rental income, the company generated €36.98 million, which represented an increase of 69% with respect to the same period as last year. That increase was due to an improvement in the occupancy rate, growth in the number of homes in the portfolio and an improvement in annualised rents (GRI). On a like-for-like basis, revenues grew by 9%. Net rental income, after deducting direct operating costs, amounted to €28.47 million, up by 75%.
Testa Residencial, which had initially scheduled its stock market debut for June, decided to delay its listing plans for the main stock exchange and debut on the Alternative Investment Market (MAB) instead. The company, in which Santander (36.9%), BBVA (25.2%), Acciona (20%) and Merlin Properties (17%) all hold stakes, owns 10,615 homes with a gross asset value (GAV) of €2.637 billion. Moreover, it recently agreed the purchase of a group of 549 rental homes in the province of Madrid for €66.8 million.
Original story: Expansión (by R. Arroyo)
Translation: Carmel Drake