Gmp develops a property-owning business model based on long-term leasing contracts with companies that have a strong track record of financial solvency and operate in a broad range of sectors. Moreover, historically it achieves high renewal figures as a result of client satisfaction with the quality, services and management of buildings leased. In general, Gmp’s aim is to sign contracts for the longest possible time period. As of 31 December 2017, more than half the existing rental contracts had an end date of above five years.

As of 31st December 2017, more than half the lease contracts in force expired in more than five years.

Gmp’s top 20 tenants

Breakdown of tenants by business sector (rental revenue)

Termination dates for rental contracts by year (% sq m expired)


Financial year 2017 was characterized by intense commercial activity as contracts for some 41,500 m² were signed. Outgoing tenants accounted for around 24,500 m², giving positive net absorption of 17,000 m². Moreover, contracts representing 47,000 m² were renewed, with some 8,000 m² of these tacit renewals.  As a result of this, occupancy rose from 85% in 2016 to 90% in 2017.

The chart below shows the detail of the evolution of occupancy of the Group’s portfolio in financial year 2017.

Evolution of occupancy in Gmp’s office portfolio in 2017 (000 sq m)

Manuel Cortina 2

The largest tenant movements include the following:

  •   Patrimonio del Estado at Manuel Cortina 2.
  •   Savills Aguirre Newman and Elecnor at Castellana 81.
  •   Wework and Everis at Castellana 77.

Although it is not shown in the chart, in 2017 a contract for increased space of some 8,000 m² at Castellana Norte was signed with Banco Sabadell. What is unusual about this new contract is that it was for an asset currently fully leased by Vodafone. Consequently, Banco Sabadell replaces Vodafone in the space and no new square metres of occupancy are added. Including this contract, during the year incoming tenants accounted for nearly 50.000 m².

  • ADIF at Titán 4.
  • EDP and GFI at Parque Norte.
  • Mapfre and the other tenants at Manuel Cortina 2 on 31st December 2017, as was agreed when the building was acquired.
  • BBVA on the last five floors of Castellana 81 on 31st December 2017.

The evolution of occupancy by location of the asset is broken down in the charts below. Occupancy rates are calculated on the basis of available space.

Thus, in 2016 the space being refurbished, i.e. Castellana 81 and Castellana 77, are excluded. This is not the case in 2017.

Evolution of the occupancy rate by location


The average rental revenue over 2017 was 17.2 €/m², which is similar to the previous financial year. A breakdown of the evolution of average rental income is given below, depending on the location of the property.



Gmp has been an associate member of EPRA since 2016, when it adopted the association’s recommendations on best practices in reporting.

A breakdown of EPRA Performance Measures is shown below.

EPRA 2016-2017 Performance Measures

2016A 2016A 2017A 2017A
EPRA Earnings Earnings from operating activities 25.3 1.32 40.9 2.14
EPRA NAV Net Asset Value adjusted to include
properties and other investment
interests at fair value and to exclude
certain items not expected to crystallise
in a long-term investment property business model
1,070 55.94 1,190 62.23
EPRA NNNAV EPRA NAV adjusted to include the fair
values of (i) financial instruments,
(ii) debt and (iii) deferred taxes
972 50.84 1,106 57.81
EPRA Net Initial Yield (NIY)(1) Annualised rental income based on
the cash rents passing at the balance
sheet date, less non-recoverable
property operating expenses, divided by
the market value of the property,
increased with (estimated) purchasers’ costs
5.4% / 4.5% 4.2% / 3.4%
EPRA “topped-up” NIY(1) This measure incorporates an adjustment
to the EPRA NIY in respect of the expiration
of rent-free periods (or other unexpired
lease incentives such as discounted
rent periods and step rents)
5.5% / 4.4% 4.4% / 3.7%
EPRA vacancy rate Percentage that reflects Estimated
Market Rental Value (ERV) of vacant
space divided by ERV of the
whole portfolio
2.6% 12.6%
EPRA cost ratio (incluyendo
costes de desocupación)
Percentage that reflects administrative
& operating costs divided by gross
rental income
20.0% 23.5%
EPRA cost ratio (excluyendo
costes de desocupación)
EPRA cost ratio excluding administrative and
operating costs associated with unleased properties
19.4% 20.6%

(1)Calculated on the basis of rents for the last 12 months / Calculated on the basis of passing rent.

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