GMP PROPERTY SOCIMI, S.A. ANNUAL REPORT
INDEX
MESSAGE FROM THE CHAIRMAN | 05
KEY ASPECTS OF 2023 | 07
THE COMPANY | 10
BUSINESS EVOLUTION OVER THE FINANCIAL YEAR | 21
COMPANY PORTFOLIO | 35
ESG STRATEGY | 61
AUDIT REPORT AND FINANCIAL STATEMENTS | 116
Gmp AT A GLANCE
KEY OPERATING DATA
AT 31/12/2023
15 / 22
Number of assets / Number of office buildings
97.1%
Occupancy
180
Number of corporate clients
287,793 m2
Gross leasable area above ground
4,337
Parking spaces
74,867 m2
Buildable area for future developments
KEY FINANCIAL DATA 2023ESG KEY DATA 2023
131,4 €m | 86% |
Total revenues | Buildings with LED |
or Q-sostenible Evolution certification | |
655€m | -8.21% |
Net debt | Energy consumption at buildings |
30.2% | +145% |
LTV | Photovoltaic electricity production |
68 €m | 4.5 out of 5 |
EBITDA | Corporate customer satisfaction rating |
2,170 €m | 98% |
GAV | Local suppliers |
1,585€m | 27,988 |
EPRA NRV | Beneficiaries of Gmp Foundation |
Gmp AT A GLANCE | KEY OPERATING DATA | |||||||
BARCELONA | AT 31/12/2023 | |||||||
3 | 37,860 m | 471 | 84.9% | |||||
In May 2023, Gmp acquired three buildings in district 22@ in | 2 | |||||||
Barcelona through a joint venture with GIC, with Gmp contributing 30% | ||||||||
Number of assets | Gross leasable area above ground | Parking spaces | Occupancy | |||||
of the investment and GIC the remaining 70%. The key data on these |
properties are shown below:
NUMBER OF ASSETS IN SPAIN
Barcelona: 3 assets
Madrid: 15 assets
ANNUAL REPORT 2023
MADRID | CBD | City Centre | M-30 | North Madrid | BARCELONA - 22@ | |
A1 | ||||||
2 | Av. | |||||
M40 | Diagonal | |||||
A1 | .Meridiana | |||||
Av | ||||||
Marina | 3 | |||||
A2A2 | ||||||
7 | la | |||||
1 | deCarrer | |||||
5
.Rbla Poblenoudel
A5
A4
A3
A3
M30
ANNUAL REPORT 2023 | Message from the Chairman | Key Aspects of 2023 | The Company | Business Evolution Over the Financial Year | Company Portfolio | ESG Strategy |
Audit Report and Financial Statements | 5 |
MESSAGE FROM THE CHAIRMAN
Francisco Montoro Alemán
Chairman - CEO
Dear shareholders, customers, partners and members of the Gmp team,
It is a pleasure to address you once again on the occasion of the publication of our 2023 Annual Report, which presents the Company's key results, highlighting financial information and environmental, social and governance initiatives.
Business performance over the year was very positive, with increases of 8.5% and 11.3% in turnover and EBITDA, which reached €131.4m and €68.0m, respectively.
We closed the year at almost full occupancy levels of over 97%, thanks to the intense commercial activity of Gmp's core office rental property business. New leases were signed for more than 17,000 m² and renewal contracts for 57,405 m². The favourable impact of the indexation of rents to inflation, together with higher average rents in new contracts and renewals, placed our property business at turnover and EBITDA levels of €106.1m and €66.6m, with double-digityear-on-year increases of 10.4% and 16%, respectively, in like-for-like terms.
Total revenues from our residential tourism development south of Alicante, Las Colinas Golf & Country Club, grew by 5.1% to €25.3m in 2023. Although EBITDA experienced a significant drop of 58.2%, this was as a result of the change in residential business strategy. After cessation of the sale of land to developers, which still carried substantial weight in 2022, business focus shifted towards the development and sale of homes to end customers. In fact, if we exclude the sale of land to developers, the housing marketing margin in 2023 experienced a slight year-on-year increase of close to 1%. Performance of the recurring
Over the years, our bet on quality, sustainability and focus on customer satisfaction have been the levers of our growth and differential positioning in the property sector".
business from the golf course, restaurants and the Golf & Country Club accommodation offering is worth noting, as EBITDA reached break even in 2023. The golf course also continued to reap recognition, entering the ranking of the 100 Top Courses in Continental Europe published by Today's Golfer in 79th position.
Over the years, our bet on quality, sustainability and focus on customer satisfaction have proved the levers of our growth and differential positioning in the property sector. In mid-2023, we strengthened this commitment through conducting organizational restructuring that resulted in the creation of two new divisions: ESG and Customer Management.
Customer management plays an essential role in ensuring that our products and services serve as a driver to attract corporations and their teams and generate loyalty. This is accomplished by working to enhance user satisfaction, health, well-being and presence in our spaces, in a context in which the role of offices has undergone substantial changes and hybrid work models seem to have become normalized. Aligned with our people-centric approach, Gmp renewed WELL Health & Safety certification across its multi-tenant portfolio and, in 2023, extended WELL certification to five new buildings that attained gold level. In the first half of 2024, our most recent development, ARQBÓREA in Las
Tablas, has been awarded platinum level and we aim to complete WELL certification for the rest of the multi-tenant buildings in our portfolio this current year. Moreover, our dedication to customer-driven innovation has resulted in Gmp being recognised as the only real estate company in Spain to be part of the WiredScore Portfolio Program, which showcases the company's strong commitment to digital connectivity and future-ready buildings. In 2023, the Company obtained the highest levels of customer satisfaction to date, with corporate and end-user ratings rising to 4.5 and 4.2 out of 5 respectively. Combined with the aforementioned occupancy and turnover figures, this positive evolution demonstrates the effectiveness of our strategic business focus which puts
people first.
"In 2023, the Company obtained the highest levels of customer satisfaction to date, for corporate and end-users".
Our new ESG department was created with the goal of promoting and applying sustainability across the Company as a strategic business pillar, in response to demands from key stakeholders and in compliance with growing regulatory requirements. Once the division was set up, the team dedicated to sustainability was expanded after new specialized professionals joined the ESG committee. Our ESG Plan was designed for the period 2024-2028, which aims to address new market demands and trends through 11 strategic environmental, social and governance pillars. The Plan was approved by the Board of Directors in March 2024.
ANNUAL REPORT 2023 | Message from the Chairman | Key Aspects of 2023 | The Company | Business Evolution Over the Financial Year | Company Portfolio | ESG Strategy |
Audit Report and Financial Statements | 6 |
Over 2023, we implemented 24 environmental sustainability actions amounting to €1m, which enabled us to continue advancing towards the targets set in our 2030 Decarbonisation Plan by boosting energy efficiency in our buildings and promoting electrification from renewable sources. In this time period, we reduced emissions by 253 tCO2eq and achieved energy savings of 663 MWh. I would like to highlight the expansion of photovoltaic panel installations to 75% of our buildings and the substantial increase in renewable energy production for self- consumption, which reached almost double 2022 levels. Another key development was the approval of the climate change policy by the Board of Directors, preceded by analysis into climate change risks and opportunities conducted in 2022. This new policy sets down the principles guiding our actions to combat climate change, which is one of the biggest challenges humanity faces and requires joint efforts from business, government and society as a whole.
A strategic aspect of our sustainable business model is to generate a positive impact on society and the community. The Gmp Foundation, which celebrates its fifteenth anniversary in 2024, is a key driver in this respect. The Foundation continued to develop initiatives to improve the living conditions in Spain for people with intellectual disabilities, acquired brain injury, cerebral palsy and Alzheimer's disease and provide support to their families. In 2023, it collaborated with 34 nonprofit organizations and implemented 29 social projects that improved the lives of around 28,000 people. The Foundation team's hard work was recognized by the ONCE Social Group in the Region of Murcia, which awarded it the Solidarity Award in the category of Institution, Organization, Association and NGO. It also received the Maite León Culture Award from the Maite León Psicoballet Foundation.
As regards our investment activity, as I mentioned in my message last year, in May 2023 we entered the property market in Barcelona by acquiring the MILE business campus, comprising three buildings with a total office space of 37,860 m² in the 22@ district. This transaction was carried out through a joint venture with our partner GIC, in which Gmp holds a 30% stake. At year-end, occupancy of the three buildings stood at 85%. In 2024, at the beginning of June, coinciding with the time of writing this message, we have just completed the purchase of
the Titán 8 building, with a gross leasable area of 11,200 m², in the Méndez Álvaro area, which has an occupancy rate of 81%. Titan 8 is LEED gold certified. This acquisition reinforces our presence in one of Madrid's fastest growing locations and demonstrates our confidence in the sector of high-quality, sustainable office buildings in strategic locations.
"As part of Gmp's commitment to mitigating our impact on the environment, the proportion of green financing reached 71% of drawn debt in 2023".
Before concluding my message, I would like to refer to the quality and resilience of our portfolio. The year was marked by sharp interest rate rises, which peaked in September at 4.5%, the highest in the last 23 years. Despite this, the negative impact on the portfolio valuation has been one of the most limited in the market, with a decrease of €114m, or 5.2% overall, and 4.7% for the office property business. The valuation of our assets stood at €2,170m in 2023 versus €2,284m in 2022. Furthermore, 79% of the Company's bank debt is fixed rate or hedged by derivatives, which has protected us against the impact of interest rate increases. Our solvency and liquidity position are very robust, with liquid assets of €207m at year-end. The group's net debt, which had already been reduced in 2022 by €50m, decreased again in 2023 by a further €36m down to €655m, and the net leverage ratio stood at 30.2%, one of the best in the sector, with a financing cost of 2.25% and an average debt maturity of 3 years. Moreover, as part of Gmp's commitment to mitigating our impact on the environment, the proportion of green financing reached 71% of drawn debt in 2023, compared with 69% in 2022.
In short, Gmp's quality and resilience and its people-centric and sustainability-led operational management capacity have enabled us to close the year with very positive results, near-full occupancy levels and substantial growth in revenues, income and EBITDA.
"Gmp's quality and resilience and its people- centric and sustainability-led operational management capacity have enabled us to close the year with very positive results, near- full occupancy levels and substantial growth in revenues, income and EBITDA".
The strong fundamentals of our business model against a backdrop in which Spain is growing above the European average, the employment rate is rising, office attendance rates are increasing, the trend in interest rates is falling and tourism is booming, enable us to be optimistic about the future, both for the property business and the residential tourism business of Las Colinas Golf & Country Club.
Before I sign off, I would like to thank you very much, on behalf of the members of the Board of Directors and myself, for the trust you place in Gmp. Support from our shareholders, customers and partners, the engagement and professionalism shown by our team, together with our solvency, financial and asset quality, will continue to drive us forward towards meeting our commitment to quality, sustainable management at the service of people.
Francisco Montoro Alemán
Chairman - CEO
June 2024
ANNUAL REPORT 2023 | Message from the Chairman |
Key Aspects of 2023 | The Company | Business Evolution Over the Financial Year | Company Portfolio | ESG Strategy |
Audit Report and Financial Statements | 7 |
1. KEY ASPECTS OF 2023
1.1. | Milestones | 08 | |
1.2. | Key data | 09 |
Lobby Parque Norte
ANNUAL REPORT 2023 | Message from the Chairman |
Key Aspects of 2023
The Company | Business Evolution Over the Financial Year | Company Portfolio | ESG Strategy |
Audit Report and Financial Statements | 8 |
1.1. MILESTONES
JANUARY
Construction starts on 24 homes in the Kumquat Community at Las Colinas Golf & Country Club.
FEBRUARY
Renewal of 10,308 m² lease agreement with ADIF at the Titán 4 building.
Successful completion of the AENOR Integrated Quality, Environmental and ORP System audit.
MARCH
Signing of 1,536 m² lease agreement with BDO Auditores at the Génova 27 building, achieving 100% occupancy. Recognition for Gmp as the only real estate company in Spain to be part of the WiredScore Portfolio Program.
APRIL
Signing of 1,107 m² lease agreement with RIC Energy at the Orense 34 complex.
Sale of plot of land for residential use in El Ejido.
MAY
Signing of acquisition of three office buildings in Barcelona through a joint venture with GIC.
Signing 639 m² lease agreement with OVH at the Luchana 23 building.
JUNE
Signing 557 m² lease agreement with Ricardo Consulting at the Orense 34 agreement, achieving 100% occupancy.
Signing 1,236 m² lease agreement with Saeta Yield at Parque Norte business park. Creation of Customer Management and ESG Management.
Recognition for Gmp with the Forbes award - Credit Suisse Sustainability Awards.
JULY
Signing 4,632 m² lease agreement with Hogan Lovells at the Castellana 77 building.
Renewal of 8,556 m² lease agreement with Thales España at Parque Norte business park.
WiredScore and SmartScore Platinum Certification at the Oxxeo building.
SEPTEMBER
Renewal of lease agreement for 1,246 m² retail space with Discesur at Orense 34 complex. "Brain-protected space at Génova 27, Luchana 23 and Orense 34 buildings.
OCTOBER
Construction starts on 46 homes in the Limonero community at Las Colinas Golf & Country Club.
Recognition for Las Colinas Golf & Country Club with the 2023 Corporate Social Responsibility Award, awarded by the Asociación de Personas con Diversidad Funcional, ADIS.
Recognition for the Gmp Foundation in the 2023 Murcia region ONCE Solidary Awards.
NOVEMBER
Renewal of 1,786 m² lease agreement with Penguin Random House at Luchana 23.
Recognition for Gmp, for third year running, achieving Gold in the EPRA sBPR (Sustainability Best Practices Recommendations).
Platinum WiredScore and Gold SmartScore certifications at the Castellana 77 building.
Gold SmartScore at the Orense 34 building.
Recognition for Las Colinas Golf & Country Club as one of the top 100 golf courses in Continental Europe from the prestigious publication Today´s Golfer.
Recognition for the Luchana 23 building with the AIS Award for Excellence in a space built before 2010.
DECEMBER
Signing 899 m² lease agreement with Cellnex at the Castellana 81 building.
Signing lease 687 m² agreement with Sulzer at the Castellana 81building.
Renewal of 1,338 m² lease agreement with Kroll at Castellana 81.
WELL Gold certification of the Madroño and Álamo buildings -both belonging to Parque Norte-, Génova 27, Luchana 23 and Orense 34.
Gold WELL recertification at the Castellana 81 and Castellana 77 buildings.
Platinum WiredScore and SmartScore certification at the ARQBÓREA building, making it the first property in the world to achieve SmartScore recertification.
Opening of a new MEETING PLACE at the Luchana 23 building.
mplementation of 24 actions for the Strategic Decarbonisation Plan, with 1€m investment and estimated saving of 253 TnCO2 eq (location-based) and 663 MWh. The stand-out actions include: installing photovoltaic panels for self-consumption at several buildings, installing frequency variators at Génova 27, Luchana 23 and Orense 34, replacing the pressure sets at Luchana 23 and replacing natural gas boilers for heat pumps at Hermosilla 3, which eliminated fossil consumption.
Hosting 2nd Las Colinas Trophy.
ANNUAL REPORT 2023 | Message from the Chairman |
Key Aspects of 2023 | The Company | Business Evolution Over the Financial Year | Company Portfolio | ESG Strategy |
Audit Report and Financial Statements | 9 |
1.2. KEY DATA
€m | 2022A | 2023A |
OPERATING | ||
Occupancy rate at year end | 96.4% | 97.1% |
Average rental (€/m2/month) | 21.7 | 23.6 |
INCOME STATEMENT ITEMS | ||
Total income | 121.2 | 131.4 |
EBITDA | 61.1 | 68.0 |
Net profit | 78.9 | (77.3) |
BALANCE SHEET STATEMENT ITEMS | ||
GAV | 2,284 | 2,170 |
Net debt | 691 | 655 |
Cost of debt at year end | 1.57% | 2.25% |
LTV1 | 29.2% | 30.2% |
ICR | 4.95x | 4.94x |
EPRA RATIOS | ||
EPRA Earnings | 44.8 | 38.6 |
EPRA NRV | 1,673 | 1,585 |
EPRA NTA | 1,629 | 1,531 |
EPRA NDV | 1,640 | 1,515 |
EPRA Net Initial Yield (NIY) | 3.8% | 4.2% |
EPRA "topped-up" NIY | 3.7% | 4.2% |
EPRA vacancy rate | 4.0% | 2.9% |
EPRA cost ratio (including vacancy costs) | 24.4% | 22.7% |
EPRA cost ratio (excluding vacancy costs) | 23.2% | 22.0% |
EPRA LTV | 31.1% | 31.7% |
12022 adjusted for the outstanding collection of the deferred amount of €24m from the sale of Condesa de Venadito 1.
ARQBÓREA
ANNUAL REPORT 2023 | Message from the Chairman |
Key Aspects of 2023 | The Company | Business Evolution Over the Financial Year | Company Portfolio | ESG Strategy |
Audit Report and Financial Statements | 10 |
2. THE COMPANY
2.1. Mission, vision and core values | 11 | ||||||
2.2. Business areas: | 12 | ||||||
strategy and business model | |||||||
2.3. Financial structure | 16 | ||||||
2.4. Company structure | 18 | ||||||
2.5. Shareholders | 19 | ||||||
2.6. Corporate governance | 20 | ||||||
Headquarter Gmp - Luchana 23
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GMP Property SOCIMI SA published this content on 01 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 July 2024 09:38:11 UTC.
