LUXEMBOURG--(BUSINESS WIRE)--Logicor announces strong financial performance for the year ended 31 December
- Net Operating Income (NOI): €639 million, which represents year on year growth of 2.5%, reflecting our strategic focus on increasing occupancy and capturing market rental growth. Over 60% of NOI is generated in the key markets of the UK (26%), Northern Europe1 (21%) and France (15%).
- Gross Asset Value: €12.5 billion, a 3.3% increase in valuation, which reflects the strong performance of our portfolio, in particular in Northern Europe.
- EPRA Occupancy: 94.4%, with physical occupancy up 70 bps over the year, underpinned by strong growth in each of our three largest regions of the UK (+120 bps), Northern Europe (+110 bps) and France (+220 bps).
- LTV: 51%, down from 52% at year end 2017 following increases in property values. At year end, our debt to EBITDA ratio was 11.3x.
Capital Structure
In 2018 Logicor (rated BBB (Stable) by S&P) established a Euro Medium Term Note (‘EMTN’) programme and raised €1.8 billion of unsecured fixed-rate debt in the public capital markets alongside a €750 million unsecured Revolving Credit Facility (‘RCF’).
Through a combination of the bond proceeds, €300 million drawn under the RCF and €207 million of cash, Logicor repaid a portion of the secured, floating-rate facility, allowing us to move to a more flexible, diversified capital structure and increasing our weighted average maturity to 4.4 years.
Development and Expansion
In 2018 we invested €80 million in developing and expanding new logistics space for our customers, with four development projects completing in Italy, Finland, Germany and Romania with a total project cost of €74 million and an average yield on cost of 11%. We have eight further projects under way in Germany (4), Finland (2), UK (1) and Poland (1), with total projected costs of €79 million and a projected average yield on cost of 8%. All of these projects were 100% fully pre-leased before commencement.
Additionally, we have client-led development opportunities consisting of 18 projects that are primarily located in our core markets of Germany and France. These projects would deliver approximately 390,000 sqm of additional GLA with a total projected cost of €292 million.
Commenting on the results, Mo Barzegar, CEO & Chairman said:
“2018
was a great year for Logicor where we made excellent progress across a
range of strategic initiatives including overall portfolio occupancy
increases, capturing market rental growth and selective portfolio
expansion based on strong customer demand.
With the high-quality of
the assets that we own and operate and the continued excellence
demonstrated by our customer-facing asset management teams across all of
our markets, I am confident that the business is in excellent shape to
continue to deliver strong performance in 2019.”
Simon Clinton, CFO added:
“Our successful debut capital
markets issuance provides us with a more flexible and diversified
capital structure and demonstrates strong investor support for our
high-quality assets. Additionally, our strong operational results, which
were driven by the combination of our deep customer relationships and
well-located assets, exhibit our ability to generate stable cash flow.”
Results summary
|
As at |
As at |
||||||||||
| EPRA Occupancy Rate | 94.4% | n/a | |||||||||
| GLA (million sqm) | 13.6 | 13.5 | |||||||||
| GAV (€ million) | 12,501 |
12,106 |
|||||||||
| NOI (€ million) | 639 | n/a | |||||||||
| LTV | 51% | 52% |
1 Northern Europe includes Austria, Belgium, Germany and Netherlands.
END
About Logicor
Logicor is the largest owner and operator of modern logistics and distribution properties in Europe. As at 31 December 2018 we own a portfolio of 621 high-quality properties with a lettable area of approximately 13.6 million square metres located in key European logistics markets. Logicor is headquartered in London and Luxembourg.
