Carmila S.A.: history, ownership, mission, how it works & makes money

A Brief History of Carmila S.A.

Carmila S.A. was established in 2014 as a real estate investment trust (REIT) in France, focusing on shopping centers. Originally a subsidiary of Carrefour, the company was spun off to enhance its focus on retail property management and development.

As of December 2022, Carmila managed a portfolio of 211 shopping centers across France, Spain, and Italy. The total gross leasable area (GLA) was approximately 1.6 million square meters. The company's primary objective is to maximize the value of its assets by improving their attractiveness and performance.

In 2019, Carmila reported revenue of €166.4 million, with a net profit of €114 million. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at €146 million, reflecting a robust operational performance.

By 2021, Carmila expanded its portfolio significantly, acquiring several new sites and renovations worth €75 million. The company's net rental income increased to €125.5 million, representing a year-on-year growth of 3.7%.

As of mid-2023, Carmila’s market capitalization reached approximately €1.5 billion. The company reported a dividend yield of 7.4%, appealing to income-seeking investors.

Carmila has remained proactive in adapting to changing retail trends, embracing digital transformation, and enhancing customer experiences. This adaptability has allowed them to maintain a stable occupancy rate, which stood at 92% in early 2023.

With a strategic focus on sustainability and innovation within their shopping centers, Carmila’s management has initiated several projects aimed at reducing energy consumption and improving ecological footprints. These efforts are expected to yield savings of up to €5 million annually by 2025.

Overall, Carmila S.A. continues to position itself as a major player within the European retail property sector while navigating the challenges posed by market fluctuations and evolving consumer behavior.

A Who Owns Carmila S.A.

Carmila S.A. is a notable player in the retail property sector in Europe, primarily focused on developing and managing shopping centers. As of October 2023, it is important to understand the ownership structure, which plays a vital role in the strategic direction of the company.

The majority of Carmila's shares are held by the French retail giant, Carrefour Group, which owns approximately 38.3% of the company. Carrefour, a multinational corporation specializing in hypermarkets, is a major stakeholder in Carmila and influences its operational strategies. This ownership enables Carrefour to leverage its extensive retail network to maximize the performance of shopping centers managed by Carmila.

Another significant stakeholder is the investment management firm Primonial REIM, which holds around 9.5% of Carmila’s shares. Primonial specializes in real estate investment and asset management, providing a layer of institutional support for Carmila’s growth strategy.

Other institutional investors collectively hold approximately 29% of Carmila S.A. shares, reflecting strong confidence in the company's operational performance and its strategic initiatives. Key institutional shareholders include:

Carmila’s shares are publicly traded on the Euronext Paris under the ticker symbol CARM. As of the latest trading session, the share price was around €24.75, reflecting a market capitalization of approximately €1.59 billion. This positions Carmila as an attractive entity for retail-focused investors looking to capitalize on shifting consumer trends and the evolving landscape of retail real estate.

In 2022, Carmila reported a net rental income of approximately €136.5 million, up from €130.1 million in 2021. This growth is attributed to the effective management of their portfolio and a strategic focus on enhancing tenant relationships.

The company’s portfolio comprises 80 shopping centers across France, Spain, and Italy, with an average occupancy rate of 95%. This indicates a strong demand for retail space in the markets where Carmila operates, further validating the confidence of its shareholders.

In summary, the ownership of Carmila S.A. is characterized by a blend of retail and institutional investors, positioning it strategically to navigate the complexities of the retail real estate market in Europe.

Carmila S.A. Mission Statement

Carmila S.A. is a leading player in the retail property sector, with a distinct mission to enhance the shopping experience within shopping centers across Europe. The company focuses on creating vibrant, accessible, and sustainable retail environments that foster community engagement and drive foot traffic to their properties.

The mission statement underscores Carmila’s commitment to:

• Maximizing asset value through strategic management and innovation.
• Developing long-term partnerships with tenants to ensure mutual growth.
• Promoting sustainability in all operations and developments.
• Adapting to changing consumer habits and retail landscapes.

As of the end of Q3 2023, Carmila reported a robust operational performance, with key metrics reflecting the effectiveness of their mission:

The increase in net rental income demonstrates Carmila's ability to optimize income from its portfolio, while the growth in property valuation highlights its successful asset management strategies. The occupancy rate reflects strong demand and effective leasing strategies, which align with the company's mission to create attractive shopping environments.

Carmila's approach to community engagement is exemplified by initiatives aimed at local involvement, ensuring that each shopping center serves as a hub for social interaction. Recent studies have shown that properties actively engaging with their communities see an average foot traffic increase of 20%.

In addition, the commitment to sustainability is evident in Carmila's ongoing projects to minimize carbon footprints. The company reported a reduction of 15% in energy consumption across its portfolio in 2023 compared to 2022, reflecting a proactive stance on environmental responsibility.

With a portfolio of more than 200 retail properties across France, Spain, Italy, and Portugal, Carmila’s mission to enhance the shopping experience continues to resonate within the retail sector. The continuous focus on tenant relationships and sustainable practices positions Carmila as a forward-thinking leader in retail real estate.

How Carmila S.A. Works

Carmila S.A. is a real estate investment company specializing in the development and management of shopping centers in France and Spain. As of the end of 2022, the company managed a portfolio valued at approximately €3.5 billion, comprising around 84 shopping centers with a total surface area of 1.6 million square meters.

In terms of financial performance, Carmila reported a total revenue of €206 million for the fiscal year 2022, with a net income of €66 million. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at €163 million, reflecting a healthy EBITDA margin of approximately 79%.

Carmila operates primarily through a focused acquisition strategy, targeting sites that maximize foot traffic and provide strong rental yields. The average annual rent per square meter was approximately €350 in 2022, indicating robust demand for retail space within its managed properties.

Below is a table detailing Carmila's key financial indicators for the last three fiscal years:

Carmila's investors benefit from a diversified rental income stream, with over 70% of its rental income coming from leading grocery and fashion retailers. The company's tenant mix includes prominent brands that ensure consistent footfall and revenue stability.

In addition, Carmila focuses on enhancing asset value through strategic renovations and expansions. In 2022, the company invested approximately €40 million in capital expenditures aimed at property upgrades, which is expected to yield a return on investment of over 10% over the next five years.

As of 2023, Carmila's portfolio occupancy rate remained high at 95%, which is indicative of strong demand for retail spaces, particularly within urban shopping centers. The company also maintains a strong balance sheet, with a debt-to-equity ratio of 0.55, allowing for sustained growth and possible future acquisitions.

With ongoing changes in consumer spending and retail trends, Carmila continues to adapt by focusing on omnichannel retail strategies, integrating e-commerce facilities within its shopping centers, and enhancing customer experience through improved amenities.

How Carmila S.A. Makes Money

Carmila S.A. is a French real estate investment firm focused on commercial properties, primarily shopping centers. The company generates revenue through three main avenues: rental income, property management fees, and development projects.

Rental Income

Rental income constitutes the majority of Carmila's revenue. As of 2022, Carmila reported a total rental income of approximately €139 million, reflecting a year-over-year increase due to strong lease renewals and acquisition of new properties. The company's portfolio comprises over 200 shopping centers across France, Spain, and Italy, with a strong tenant base including major retailers. The annualized rental income per square meter stood at €175.

Property Management Fees

In addition to rental income, Carmila earns property management fees, which amounted to about €27 million in 2022. These fees are generated through managing properties on behalf of external investors and are typically charged as a percentage of the rental income or as a flat fee. Carmila's ability to efficiently manage properties contributes to its profitability.

Development Projects

Development projects also play a vital role in Carmila's revenue model. In 2022, the company invested around €60 million in development and redevelopment projects, contributing to future rental income streams. The ongoing revitalization of centers has led to an increase in foot traffic and tenant interest, further boosting potential revenues.

Financial Performance Overview

Geographic Revenue Breakdown

Carmila's revenue is diversified across different regions, which helps mitigate risks associated with localized economic downturns. The geographic breakdown of its rental income is as follows:

As of the latest data, Carmila's occupancy rate stood at 95%, showcasing strong demand for its retail properties. The company has implemented various strategies to enhance tenant relationships, leading to an increased retention rate of over 80%.

Future Growth Prospects

Looking forward, Carmila plans to continue focusing on enhancing its property portfolio through sustainable development initiatives. The company aims to achieve a €1 billion valuation for its property assets by 2025, backed by strategic acquisitions and proactive management practices.

Overall, the multifaceted approach to generating revenue, combined with effective asset management and development strategies, positions Carmila S.A. for sustained growth in the competitive real estate market.