International News

MAS achieves almost double adjusted total earnings for its half-year results ended Dec 2021

CEO of MAS, Martin Slabbert.

JSE-listed MAS plc has achieved adjusted total earnings of €91.4 million in the 6 months to December 2021, compared to adjusted total earnings of €47.4 million for the previous 6 months. This consists of adjusted distributable earnings of €20 million and adjusted non-distributable earnings of €71.4 million.

Tangible net asset value increased 5.6% to €1.31 per share from €1.24 per share at the end of June 2021. Adjusted distributable earnings increased 5.3% for the period to 2.96 eurocents per share from 2.81 eurocents per share.

Occupancy levels in the company’s Central and Eastern European (CEE) assets improved to 95.3% as at 31 December 2021 compared to 93.2% as at 30 June 2021. This was attributable to ongoing asset management initiatives and new developments opening with high occupancies. Until September 2021, footfall in CEE was satisfactory, with open-air malls consistently performing better than the same period in 2019.  Thereafter, additional restrictions were imposed affecting footfall.

Tenants’ sales were almost on par with pre-pandemic levels for the six months to the 31st of December 2021.  DIY, pet store, toys and grocery tenants’ sales continued to outperform.  Leisure, specialist, home appliances, furnishing and fashion tenants’ sales remained negatively affected by restrictions.

Overall, collection rates for the 6 months to December 2021 were 98%, driven by tenants’ solid operational performance, as well as MAS’ high proportion of anchor tenants at 82% of gross lettable area. Properties opened by the development joint venture during the pandemic have achieved collection rates similar to standing assets.

There was a 7.2% improvement in CEE property valuations during the reporting period based on independent external valuations. 

Two commercial developments were completed and opened during the period – the 16 400m² GLA Barlad Value Centre opened on the 30th of November 2021 with an occupancy of 99% and the first phase of Prahova Value Centre opened on the 3rd of December 2021, with 96% of the 21 700m² GLA occupied. Several residential developments are underway, all of which are in the permitting, sales, or construction phases. Substantial new development projects at an estimated total cost of €752.1 million, have been secured in Bucharest, Cluj, and Brasov.

MAS has advised that the recent Russian invasion of Ukraine and the sanctions imposed by the European Union, amongst others, may affect its growth plans, especially in light of higher energy prices, that are expected to put downward pressure on disposable income in the group’s markets. It is difficult to foresee the likely trajectory and extent of this at present. Moreover, the company will not hesitate to adopt changes in strategy, or to take action that will impact negatively on distributable income per share, if this is considered appropriate from a long-term, risk-adjusted, total return perspective.