The real estate asset investment company Merlin Properties It has earned 38.6 million euros in the first quarter, 35.7% less, due to the impact of the coronavirus crisis.
"Following the outbreak of the Covid pandemic, the company implemented a commercial policy offering a 100% income bonus to commercial tenants whose stores were closed by law due to the state of alarm. First quarter results include the impact of 17 days with said extraordinary bonus"he explained in a statement.
The quarterly income of the socimi have fallen slightly 0.6%, to 131.8 million euros, while the Ebitda it has dropped 1%, to 103.9 million euros.
The company's three plans, Landmark I, Flagship and Best II & III continue to progress properly. Due to the Covid-19, has reviewed its Capex plans, focusing on the execution of assets that are already pre-leased.
The company affirms that "it has a wide diversification of income by asset category, type of tenants and sector exposure, which has contributed to mitigating the impact of the pandemic." 47% of its leased assets are offices and have not been affected by 96.5%.
Instead, 22% of its rental assets are shopping centers, which have been affected by 89%. For these clients, Merlin has offered the 100% rent bonus from March 15 (state of alarm) until the first thing that happens: the end of the forced closure or July 31. Most tenants have accepted.
On March 19, Merlin quantified the impact of this trade policy. as less than 10% of income, but his forecast is that all the stores in the shopping malls will reopen from 25 of May (in territories that pass to phase 2), with a 60% reduction in traffic and with distance restrictions between users.
As of June 8, the reduction in traffic in shopping centers will be 50%. "Therefore," says the company, "the impact of trade policy will be less than originally projected ". However, Merlin "is designing a new partial bonus policy for the post-Covid-19 period. Details will be announced once they are communicated to our tenants."
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