SILICIUS Real Estate, SOCIMI specialized in the management of long-term real estate with stable income, closed the first quarter of 2023 with a 11.2% increase in gross income up to 7.5 million euros. This positive development demonstrates the robustness of its real estate portfolio and the results of SOCIMI’s commercial activity, which formalizes leases with stable long-term rents.
In the first quarter of 2023, gross rents increased by 11.2% compared to the same period last year, while net rents stood at 7.2 million euros, an increase of 14.8%. On a comparable basis – excluding investments and divestments – gross rents rose by 16.8%, well above the rate of inflation, with the hotel (+63.9%) and residential (+63.9%) segments up +49.5% increased those showing the greatest growth.
Its positive development was achieved through the increase in rents from the contracts, indexation of rents and new sales. By March 2023, SILICIUS has signed 18 new leases for a total area of 11,960 m2, focusing on the office, retail and shopping center segments.
SOCIMI increased the overall occupancy of its portfolio by 4% compared to the same period in 2022. In addition, the average length of the weighted leases has improved to 6.4 years, an increase of 0.9 years by the end of the financial year 2022.
SILICIUS achieves a consolidated net result of EUR 10.3 million
At the end of the first quarter of 2023, SOCIMI achieved a consolidated net result (IFRS) of EUR 10.3 million – revaluation not taken into account in this period. Accounting EBITDA, in turn, reached 4.9 million, after an increase of 11.5%. The operating fund (FFO, Funds from Operations, in English), for its part, amounted to an amount of 2.2 million.
During this period, SOCIMI completed the sale of two assets (a commercial area in San Sebastián and a premises in the Nassica commercial area in Getafe) through separate transactions, formalized for a total amount of 24.6 million euros, 7.4%. higher than the latest RICS rating of the property. Both operations are part of the strategic asset rotation and shareholder value creation plan that SILICIUS has launched.
Due to individual divestments, earnings per share reached €0.33/share and thus recorded strong growth of 231% compared to the first quarter of the previous year. At the same time, SOCIMI managed to repay the mortgage debt associated with both assets and reduced its LTV to 37.4%. At the end of the first quarter, gross financial debt amounted to EUR 272 million.
As of March 31, 2023, the company has a portfolio consisting of 41 properties, which are broken down by value as follows: 32% hotels, 24% shopping centers, 17% offices, 15% retail, 11% residential and 1% logistics. Of this, 47% of the assets making up the GAV came from real estate in Madrid.