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Carmila SA (CRMIF) Full Year 2024 Earnings Call Highlights: Strong Leasing Activity and ...

In This Article:

  • Net Rental Income Growth: 8.3% increase to EUR371 million.

  • Recurring Earnings Per Share (EPS): EUR1.67, up 4.5% from previous guidance.

  • Portfolio Valuation: EUR6.7 billion, a 13% increase including Galimmo assets, and 0.9% like-for-like growth.

  • Net Debt to EBITDA Ratio: 7.4 times.

  • Financial Occupancy Rate: 96.7%.

  • Leasing Activity: Nearly 1,000 new leases signed with a reversion rate of +3% above indexation.

  • Tenant Sales Growth: Nearly 2% increase, with Spain showing over 3% growth.

  • Dividend Proposal: EUR1.25 per share for 2024, with a payout ratio of 75%.

  • 2025 EPS Guidance: EUR1.75, up 4.8%.

  • Share Buyback Program: EUR10 million announced for 2025.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Carmila SA (CRMIF) successfully completed the Galimmo integration, marking a significant consolidation in the retail real estate sector.

  • The company signed nearly 1,000 new leases, showcasing strong leasing activity and an 8.3% growth in net rental income.

  • Recurring earnings per share exceeded guidance, reaching EUR1.67, a 4.5% increase.

  • Carmila SA (CRMIF) maintains a strong balance sheet with a net debt ratio of 7.4 times and plans a new EUR10 million share buyback program.

  • The company achieved a 54% reduction in Scope 1 and Scope 2 emissions, ahead of its sustainability roadmap.

Negative Points

  • The Italian portfolio saw a like-for-like value decline of 1.8%, raising concerns about asset performance in that region.

  • Overhead costs increased due to the Galimmo acquisition, though synergies are expected to mitigate this in the future.

  • The company faces challenges in starting major projects by 2026 due to dependency on local authorizations.

  • Despite strong performance, the macroeconomic environment remains complicated, with potential risks from inflation and interest rates.

  • The reversionary potential of rents remains a concern, with questions about maintaining positive reversion in the future.

Q & A Highlights

Q: Is there a risk of negative reversionary potential in your assets given the current rent levels? A: Marie Cheval, CEO: No, we consistently demonstrate our ability to maintain a positive reversion. The average rent at Carmila is affordable, and we are confident in maintaining positive reversion in the coming years.

Q: What is your strategy regarding the Italian portfolio, and do you consider any assets as non-core? A: Marie Cheval, CEO: The Italian business is performing well with high occupancy and stable appraisal values. We have no plans for strategic changes in Italy. Pierre-Yves Thirion, CFO: We consider core assets based on leadership rather than size. We have disposed of 14 assets in the past 36 months and will continue to recycle capital to invest in value-creating projects.