Tag: net profit

Meliá’s Profits Up By 18% Despite One-Off Impacts

26 February 2016 – Expansión

Meliá ended 2015 with a net attributable profit of €36 million, which represents a 18% increase compared with the previous year. The hotel chain said, however, that the two periods are not comparable, given that last year’s figures were affected by a higher tax rate, following the results of tax inspections launched in 2014 regarding corporation tax settlements made between 2009 and 2012.

In this regard, and in order to reflect the possible impact of these actions, Meliá made a provision amounting to €33 million. The hotel chain also clarified that having analysed the possible consequences in the years open to inspection, it does not expect any significant additional impact on the consolidated accounts in the future. “The company is cooperating with the authorities and hopes to reach a satisfactory agreement”, added the company in a document that it submitted to Spain’s National Securities Market Commission (CNMV).

Puerto Rico

Excluding extraordinary effects, such as a €29 million impairment on the Group’s hotel in Puerto Rico, and the provisions required for the aforementioned tax adjustment, Meliá’s net profit before tax amounted to €67 million, up by 200%.

In 2015, the company generated revenues of €1,738 million, which represents a 16% increase (compared with 2014).

The chain highlighted the strong performance of all its divisions in the hotel business, which allowed it to increase its revenues per available room (RevPAR) by 15.1%, thanks to the improvement in the general environment and economies in its key markets, as well as its strategy for branding and repositioning its products.

According to the financial plan, Meliá’s net debt amounted to €768.8 million at the end of the year, which represented a reduction of €216 million with respect to 2014.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Axiare’s Profits Quadrupled To €85.3M In 2015

25 February 2016 – Expansión

The Socimi Axiare generated a net profit of €85.3 million in 2015, whereby quadrupling its result from 2014, the year in which it was constituted and first listed on the stock exchange. Axiare will propose the distribution of a dividend amounting to €0.04 per share at its general shareholders’ meeting and will set aside €3 million for the payment.

Original story: Expansión

Translation: Carmel Drake

Meliá Sells Hotel In Mallorca For €24M

21 October 2015 – Expansión

Meliá Hotels International has closed an agreement to sell the 875-room Calas de Mallorca complex, in Palma de Mallorca, for €23.6 million, according to a report filed by the chain with Spain’s National Securities Market Commission (CNMV).

The complex will continue to be operated by Meliá following the sale, under a lease agreement with a variable rental. The identity of the buyer has not been revealed.

The complex is located in an area bordered by cliffs, between the beaches of Cala Domingos and Cala Antena and comprises five buildings (Mastines, Chihuaguas, Balmoral and two blocks of family rooms in the Balmoral gardens).

The hotel chain, owned by the Escarrer family, said that the operation, signed yesterday, represents a “significant milestone” in the achievement of the company’s strategic plan to focus on the reduction of debt through the rotation of assets.

As at 30 June 2015, the hotels and real estate assets included on Meliá Hotels International’s balance sheet were worth €3,555 million, according to the most recent appraisal of the assets, performed by Jones Lang Lasalle.

Meliá Hotels International generated a net profit of €20.3 million during the first half of the year, which represented a three-fold increase compared with 2014.

Original story: Expansión

Translation: Carmel Drake

The Experts’ Favourite Socimi: Merlin Properties

6 July 2015 – Cinco Días

With a market capitalisation of just over €2,100 million, Merlin Properties has become the largest listed company in the Spanish real estate sector. Following the clean up undertaken by the Spanish real estate sector during the years following the burst of the housing bubble in 2007, the Socimis have become the new players in the market. Socimis are required by law to distribute dividends amounting to at least: 80% of the net profit generated from their income; a minimum of 50% of the profits obtained from the transfer of property or shares (the remainder is devoted to other property or shares over a three-year term); and 100% of their capital gains, which guarantees that shareholders receive regular returns.

This special feature makes these instruments a good investment option, although only for investors that have a long-term view. In this context, of the nine Socimis that are now listed on the stock exchange (of which roughly half trade on the MAB)….Merlin Properties is the experts’ favourite. During its first year on the stock market, the Socimi’s share price rose by 21% and by the time it celebrated its first birthday on the Spanish stock exchange last month, Merlin Properties featured on the watchlist of ten analysts, most of which are major players in the market, such as UBS, Goldman Sachs, BBVA and Santander. All of them recommend that investors buy shares in the Socimi and they also assign a potential share price increase of more than 16%. (…).

One of the most important transactions that the company has undertaken in recent months has been the purchase of Testa for a consideration of €1,793 million, to be paid over a period of one year. The company led by Ismael Clemente reached an agreement with the construction company Sacyr to acquire its subsidiary in an operation that will be completed in successive stages, and must be finalised before 30 June 2016. As part of the first phase of this agreement, Testa’s Board of Directors has completed a capital increase, whereby Merlin Properties has taken control of 25% of the company.

Sabadell analyses the operation as follows, “Merlin believes it can achieve its target return of 10% p.a. with this investment and we agree. We expect Testa to perform positively over the next few years. The increase in the spread between real estate and sovereign yields (around 300 basis points) is positive for this asset”, says the firm, which has a target price for Merlin of €12.65 over the next 12 months and a “buy” recommendation. (…).

Another one of the most attractive aspects is the shareholders’ remuneration. The company has announced that it has the capacity to distribute dividends of a minimum of €60 million in 2015, which would represent an EPS of €0.30 per share after the increase and therefore a dividend yield of 2.6%.

Original story: Cinco Días (by Virginia Gómez Jiménez)

Translation: Carmel Drake

Bankia Sells Its 24.9% Stake In Realia To Slim For €44.5M

5 June 2015 – Cinco Días

The Tax Authorities approve Bankia’s sale of its 24.5% stake in the real estate company for €44.5 million, as the Mexican magnate’s takeover bid for the company gathers strength.

On Tuesday, the Tax Authorities approved the sale of Bankia‘s 24.5% stake. The bank required this approval, since it is controlled by the Fund for the Orderly Restructuring of the Banking Sector (the FROB), to execute the transfer of its shares to Inmobiliaria Carso, the property development company owned by Carlos Slim.

As a result, the Mexican magnate now holds 61.3% of Realia, since he indirectly controls the 36.8% stake owned by FCC. Slim is, in turn, the main shareholder of the construction company. The sale paves the way for the second richest man in the world to take ownership of 100% of the Madrilenian real estate company.

The transaction has been closed for €44.5 million, which represents net profits of €9.6 million for Bankia, according to reports submitted by the entity to the CNMV.

There are currently two takeover bids underway for Realia: one from the Socimi Hispania and the other from Slim himself, to take control of 100% of the company.

Hispania submitted the first bid, at a price of €0.49 per share. In March, the Board of Directors of the real estate company rejected that offer from the Socimi, in which George Soros holds a stake, which valued the company at €150.61 million, since it believed that the consideration offered was unreasonable. Moreover, the Socimi conditioned its offer on controlling at least 55% of Realia, which means that its road is now closed.

Meanwhile, the Mexican firm takes control of this stake whilst it waits for the CNMV to approve the takeover that it launched in March, at a price of €0.58 per share. Once this transaction has been authorised, an acceptance period for the two bids will begin.

Slim expressed his interest in the real estate company soon after he became the primary shareholder of FCC at the end of 2014. At that time, the construction company suspended the sales process that it had opened for its 36.8% stake in Realia; a representative of the magnate sits on that company’s board.

In his takeover statement, Slim revealed that his goal is to take control of Realia and clean it up in order to “fully develop the opportunities that it has within its reach, as a leading company in the sector”, which will continue to trade on the stock exchange. Realia refinanced debt amounting to €792 million, relating to its development activity at the end of 2013, whereby extending the repayment period to June 2016.

Original story: Cinco Días (by A. Simón)

Translation: Carmel Drake

‘Melia Hotels’ Doubles Net Profit In Q1 2015 To €16M

13 May 2015 – Expansión

Melia Hotels International’s results are improving, driven (primarily) by the strength (of the recovery in the) Spanish tourism sector. The chain controlled by the Escarrer family increased revenues by 13.64%, to €358.9 million during the first quarter (of 2015). Its gross operating profit (EBITDA) improved by 13.52%, to €60.2 million, whilst net profit doubled, from €8.15 million to €16.17 million.

Melia attributed this progress to the good performance of the hotel business, in which RevPar (revenues per available room) increased by 12%. And the increase was not driven by the holiday segment alone, the RevPar of the urban business segment also rose, by 14.8%.

For the full year, the company expects the increase in RevPar to be in the high single digits. Melia experienced a 5% increase in demand in Spain during Semana Santa (Easter), which it expects will be maintained this summer. In the Mediterranean, reservations for the summer season are almost 15% higher than in 2014. During the year to March, the group had signed 14 new contracts. Melia’s share price increased by 0.04% on the stock exchange yesterday to €11.24 per share.

Original story: Expansión (by Y. Blanco)

Translation: Carmel Drake

Colonial Records Profit Of €5.8M In Q1 2015, Up 132%

8 May 2015 – Expansión

The real estate company Colonial increased its rental income by 3.77% during the first quarter (of 2015) to reach €55 million and its net profit rose by 132%, to €5.8 million. These results do not take into account the €674 million profit recorded last year, due to an accounting entry that resulted form the deconsolidation of Asentia.

Colonial attributed its improved result to the recovery in the real estate market in Paris, Madrid and Barcelona, where it owns (most of its) property. The group has improved the occupancy rate of its buildings as well as the rental income it charges.

Original story: Expansión (by M.A.)

Translation: Carmel Drake

Barceló’s Profits Soar By 86% In 2014 To Reach €46.4M

23 April 2015 – Expansión

Barceló’s results are improving thanks to the economic recovery. The tourism group closed 2014 with turnover of €2,056.6 million, up 6.2% from a year earlier. Net income increased by 22.1% to €1,329.7million – €888.4 million in Spain – whilst its gross operating profit (EBITDA) amounted to €216.7 million. The group’s profit for the full year after tax shot up by 85.6% to €46.4 million and its net debt decreased by 15.3% to €717.3 million, to yield a ratio of net debt over EBITDA of 3.3x.

By division, Barceló Viajes, which will soon be renamed B The Travel Brand, recorded revenues of €1,200 million in 2014, up 14.2%. The increase came as a result of the decrease in the number of operators in the Spanish market – after the disappearance of Marsans and Orizonia – and the upturn in domestic demand.

At 31 December 2014, Barceló had 653 agencies, several tour operators and the charter airline Evelop.

Latin America

In the hotel segment, the company highlights the rise in the average daily (room) rate and revenue per room, which allowed it to offset the 0.6% decrease in its occupancy rate. In Latin America, Barceló’s properties recorded EBITDA increases of 30% and overall accounted for 74% of the group’s total profits. In addition to the increase in (room) rates, Barceló’s policy to refurbish its hotels has also had an effect. Since 2007, the group has spent more than €1,000 million in this area – €90 million in 2014.

At 1 March 2015, Barceló operated 95 hotels – it owned 55% of these and rented 27% – and 29,375 rooms in 16 countries. 59% of its properties are four-star hotels and 65% are sun and beach locations. Moreover, Barceló owns a 40% stake in Crestline, a company that manages another 74 properties in the USA.

After opening two hotels in 2014, the Group’s routemap includes resuming growth. As such, the chain has started the year by opening a new hotel in Puebla (Mexico) and will incorporate another six properties (into its portfolio) before 2016.

In parallel, at the beginning of 2015, the Group created a Socimi with Hispania. It will transfer 16 hotels and two shopping centres valued at €421 million to this entity to reduce its exposure to real estate, which is currently at its highest level ever. Similarly, in 2014, Barceló sold a number of its hotels in the USA and Dominican Republic.

This year, the goal of the company, which is controlled by the Barceló family and employs 23,681 people, is to generate EBITDA of €251 million and net profit of €99.8 million.

In 2014, Barceló agreed to distribute €10 million in dividends and has proposed an additional payment of €4.3 million in 2015, which is pending shareholder approval.

Original story: Expansión (by Y. Blanco)

Translation: Carmel Drake

Merlin Increases Its Capital By €614M To Fund New Purchases

16 April 2015 – Expansión

Yesterday, the listed real estate investment company (‘sociedad cotizada de inversión inmobiliaria’ or Socimi) Merlin Properties announced a capital increase amounting to €613.7 million. According to the Socimi, the aim of the operation is to (raise finance) to continue with its purchase of real estate assets.

The increase will be conducted through the issue of 64.6 million new shares with a nominal value of one euro and a premium of €8.50, said the company. The current shareholders, which include large funds and fund managers such as Marketfield and UBS, will have pre-emptive purchase rights. Two rights will be required to subscribe each new share. It is hoped that CNMV will publish the prospectus today following its approval.

The increase in the share capital of Merlin Properties comes less than a year after its IPO on 30 June 2014.

The company, which first floated on the stock exchange with capital of €1,250 milllion and a pre-agreement to purchase almost 900 branches and a number of banking offices from BBVA, has already invested all of its own funds and has also made use of bank financing to fund additional purchases. One of the most desirable assets in its portfolio is the Marineda shopping centre in La Coruña, which it acquired for €260 million.

Rising share price

At the General Shareholders’ Meeting, which was held just a few weeks ago, Ismael Clemente, the Chairman of the Socimi, said that the company was working on investment transactions with a value of up to €2,000 million, including office buildings, asset portfolios and shares in companies.

The Socimi closed 2014 with rental income of €56.6 million, a gross operating profit of €38 million and a net profit of €49.7 million. Yesterday, the real estate company’s shares closed at €13.10, up 0.77%.

Merlin’s recent purchases include the acquisition of an office building on Calle Alcalá in Madrid and a logistics warehouse in Coslada (Madrid), for which it paid almost €58 million in total.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Hispania Records Net Profit Of €17.5m In Its First 9 Months

25 February 2015 – Hispania Press Release

GAV as of year-end amounted to €422M, with an EPRA NAV of €555M

CBRE’s valuation has recognised capital gains in the acquired assets of €14 M, 5.5% above purchase price and 3.4% over its book value

As of 31 December 2014, €433M for investment had been committed

With the hotel investment announced earlier today (c. €368M total investment in a resort hotel REIT along with Grupo Barceló), Hispania will have invested fully the proceeds raised in its IPO and reaches committed investments for c.€800M, equivalent to 90% of its full investment firepower

Hispania Activos Inmobiliarios, S.A., (hereinafter, Hispania) closes its first year of activity with Net Profit amounting to 17.5 million euro. As of 31 December, 25 assets had been acquired, 55% in offices, 23% in residential and 22% in hotel assets.

In just 9 months, Hispania has implemented the strategy announced in its IPO and has fulfilled the commitments acquired with its investors. As of year-end, according to CBRE’s valuations, consolidated GAV amounted to 422 million euro. This implies the recognition of capital gains amounting to 14 million euro, which represent a revaluation of 5.5% on purchase prices and of 3.4% on book value.

NAV according to EPRA’s recommendations amounted to 555 million euro, implying an NAV of €10.08 per share (vs. NAV of €9.77 per share as of 30 September 2014).

It is remarkable that 76% of these acquisitions have been executed as a result of off-market negotiations with a relevant degree of complexity. This has allowed Hispania to access high-quality assets, with important repositioning possibilities and at exceptionally attractive entry prices.

Outlook for 2015

Considering the hotel investment announced today, Hispania will have committed total investments amounting to c.800 million euro in hotels (60%), offices (22%) and residential (12%). Moreover, Hispania still has an abundant pipeline of opportunities which perfectly fit the strategy and return targets of its business plan.

Regarding the assets which currently conform Hispania’s portfolio, the company foresees a relevant total capex investment of 27 million euro for its improvement and repositioning to be implemented in 2015 and a further 12 million euro over subsequent years.

“2014 has been a very fruitful year in terms of our investment activity, thanks to the abilities of the management team when it comes to identifying and executing the acquisition of assets with a clear revaluation potential, as it is already becoming evident”, highlighted Concha Osácar, Board Member of Hispania. “2015 has started with the announcement of the Barceló transaction, which will represent a total investment for Hispania of c. 368 million euro. During the rest of this year it will be equally important for Hispania to continue with an intense investment activity as to go on managing, repositioning and financing the assets which already conform our portfolio”, she added.

Original press release: Hispania

Edited by: Carmel Drake