Carmila

Financial Information as At 30 September 2020 - Seite 2

The additional adverse impact on 2020 gross rental income in the fourth quarter of Covid-19 rent abatements currently being negotiated as at 30 September 2020, or for which the associated legal agreements are in the process of being finalised, is expected to be between €16 million and €20 million.
Allowances for variable rents have also been adjusted downwards (negative impact of €3.8 million) and allowances for irrecoverable receivables have been set aside (negative impact of €4.0 million).

2. Retailer trading

Retailer sales and footfall

Compared with the third quarter of 2019, Carmila's shopping centres saw their average footfall drop 12.5% in third-quarter 2020 (down 8.8% in France, 20.6% in Spain and 23.5% in Italy). However, their locations within the heart of the regions helped them to outperform the sector* by almost 5 percentage points in France and Spain over the period.

Retailer sales saw a contained 6.5% decline over the period (slight declines of 2.4% in France and of 2.5% in Italy, and a steep 18.7% drop in Spain). The Ready-to-wear segment was up by 1.7% in France, but fell back in Spain (down 20%) and Italy (down 5.2%). Household Furnishings maintained its strong recovery in all three countries (up 14.1% in France, 4.7% in Spain and 13.2% in Italy).

Update on Covid-19 negotiations with tenants

Since the start of the pandemic, Carmila has worked tirelessly to support its retailers, suspending all second-quarter 2020 rents and charges and deferring payment dates to 30 September 2020 in France and Italy, and to 30 June and 31 July in Spain.

Besides waiving three months’ rent for small businesses (“TPE”) in France, Carmila also initiated individual negotiations with its 3,700 other retailers in the Group's three countries, granting individual relief based on the concessions agreed by the tenants (e.g., lease term extensions or renewals, or the signing of new leases).

To date, finalised negotiations represent 48% of gross rental income in France, 68% in Spain and 70% in Italy. Negotiations and the finalisation of the associated legal agreements will continue at least until the first quarter of 2021.

Based on the concessions agreed, the total impact of the rent-free periods granted remains contained, representing a rent-free period of around 1.7 months in France, 1 month in Spain and 1.5 months in Italy.

Ongoing negotiations with tenants have resulted in satisfactory collection rates in all three countries, which are continuously improving.

Collection rate

In France, the collection rate for third-quarter rents (quarterly rent invoiced and payable on 1 July 2020) stood at 85%, 94% of which was for signed negotiations. For second-quarter rents (quarterly rent invoiced and payable on 30 September 2020), the collection rate was 61%, 75% of which was for signed negotiations. Continuing negotiations over second-quarter rents temporarily weighed on the collection rate for fourth-quarter rents (quarterly rent invoiced and payable on 1 October 2020), which stood at 58%, 86% of which was for signed negotiations.