Carmila's Strategic Expansion and Sustainable Growth Trajectory

Carmila, a leading commercial property owner in Europe, has reported strong financial and operational performance for the first nine months of 2024. The company's sustained growth in net rental income, confirmation of expected recurring earnings per share, and successful integration of the Galimmo acquisition demonstrate its strategic focus on expansion and sustainable development. Carmila's commitment to sustainable finance and recognition for its financial and sustainability reporting further solidify its position as a key player in the industry.

Unlocking Value Through Strategic Expansion and Operational Excellence

Sustained Growth in Net Rental Income

Carmila's net rental income grew by 6.2% in the first nine months of 2024, with a 3.6% increase on a like-for-like basis. This growth was driven by the positive contribution from the Galimmo acquisition, as well as organic growth in line with rent indexation. The company's focus on optimizing its portfolio through strategic disposals also contributed to this strong performance.

Confirmation of Recurring Earnings Per Share Growth

Carmila has confirmed its expected recurring earnings per share of €1.65 in 2024, representing a 3.5% year-over-year growth. This growth is attributed to Carmila's strong operational performance and the integration of Galimmo, which is expected to contribute 1.5% to the Group's 2024 growth, or 3% on a full-year basis, excluding synergies. The company's estimated annualized run-rate synergies from 2025 amount to €5 million, primarily related to overhead cost savings.

Maintaining Financial Discipline and Optimizing the Balance Sheet

Carmila's net-debt-to-EBITDA ratio stood at 7.5x as of June 30, 2024, demonstrating its commitment to financial discipline. The company's successful inaugural €300 million Green Bond issue, with a seven-year maturity and a fixed annual coupon of 3.875%, has enabled it to optimize its balance sheet at attractive terms, extending maturity and improving the debt profile and average cost of debt.

Integrating Galimmo for Synergistic Growth

The acquisition of 93% of Galimmo SCA's share capital, completed on July 1, 2024, has been a key strategic move for Carmila. The integration of Galimmo's 51 assets, which are geographically complementary to Carmila's portfolio, is proceeding according to plan. The estimated annual run-rate synergies of around €5 million are expected to contribute to the Group's growth starting in 2025.

Maintaining Operational Resilience

Despite the challenging retail environment, Carmila has demonstrated operational resilience, with retailer sales up 0.7% and footfall down 0.8% in the first nine months of 2024. The company's strong leasing momentum, with 724 leases signed and a positive reversion of 2.0%, reflects the appeal of its shopping centers and the relevance of its strategy to pivot the merchandising mix towards new retail banners.

Commitment to Sustainable Finance and ESG Excellence

Carmila's successful inaugural Green Bond issue, which was seven times oversubscribed, demonstrates its commitment to sustainable finance. The funds raised will be used to finance assets that meet stringent eligibility criteria and have obtained BREEAM "Very Good" or "Excellent" certification, aligning with the company's sustainability strategy.Furthermore, Carmila's recognition by GRESB, with a score of 91/100 and a "Green Star" designation, as well as its EPRA BPR Gold and sBPR Gold awards, highlight the company's excellence in financial and sustainability reporting. These accolades underscore Carmila's dedication to sustainable growth and its position as a leader in the industry.