Helios Re Socimi, S.a. · BME:SCHLR

Helios Re Socimi — Lar España Real Estate SOCIMI — Investor Presentation (June 2016)

49 slides from Helios Re Socimi's investor presentation, June 2016

1. Slide 1: Corporate Presentation: Strategic and Financial Update June 2016

   Corporate presentation Corporate Presentation Strategic and Financial Update June 2016 www.larespana.com Lar España Real Estate SOCIMI, S.A. (LRE) – June 2016 1

2. Slide 2: Disclaimer

   Corporate presentation Disclaimer This document has been prepared by Lar España Real Estate SOCIMI, S.A. (the “Company”) for information purposes only and it is not a regulated information or information which has been subject to prior registration or control by the Spanish Securities Market Commiss

3. Slide 3: Agenda

   Corporate presentation Agenda 1 Company Description 2 Q1 2016 Results and recent developments 3 Active Management Strategy 4 Asset Portfolio Overview Lar España Real Estate SOCIMI, S.A. (LRE) – June 2016 3

4. Slide 4: Introduction to Lar España Real Estate Socimi

   Corporate presentation Introduction to Lar España Real Estate Socimi Lar España’s aim is to generate high returns for its shareholders via its business strategy of owning, operating and renting its Real Estate portfolio (through Active Property Management), which is mainly focused on Commercial Prop

5. Slide 5: Portfolio at a glance

   Corporate presentation Portfolio at a glance GAV Rental Income Rental Properties (88% of GAV) Residential 5.6% Logistics Logistics 1. Prime retail in selected secondary cities 7.1% 9.3% 2. Prime Logistics warehouses in highly consolidated areas Offices 10.6% 3. Office assets in Madrid and Barcelona

6. Slide 6: Delivering value to shareholders through an active asset management

   Corporate presentation Delivering value to shareholders through an active asset management Minimum 12%1 shareholder return per annum 40 years of experience from a unique Manager  The company has already created a portfolio with stable  Grupo Lar has successfully partnered with cash-flow generated

7. Slide 7: Investment strategy – target assets with low risk and high upside potential

   Corporate presentation Investment strategy – target assets with low risk and high upside potential • Focus on value creation through asset management capabilities, beyond macro cycle • Strong track record on specialist approach to property management % weight portfolio Property Class Investment stra

8. Slide 8: Agenda

   Corporate presentation Agenda 1 Company Description 2 Q1 2016 Results and recent developments 3 Active Management Strategy 4 Asset Portfolio Overview Lar España Real Estate SOCIMI, S.A. (LRE) – June 2016 8

9. Slide 9: Strong performance in Q1 through active asset management

   Corporate presentation Strong performance in Q1 through active asset management  €13Mn of Gross Rental Income / EPRA Annualized Net Rent1 of €53.5Mn Strong results start to show  6.1% EPRA Net Initial Yield the run rate potential of the  Increase of NAV to 9.80€ from 9.65€ at the end of the year

10. Slide 10: Delivering strong operating and financial results in Q1

    Corporate presentation Delivering strong operating and financial results in Q1 +104% vs €53.5Mn EPRA €952Mn GAV 1 Q1 2015 Annualised Net Rent3 €13Mn Gross Rental +100% vs €5.9Mn EPRA Earnings Income Q1 2015 38% Net LTV2 2.3% All-in €9.8 EPRA NAV +1.6% vs Cost of Debt per share Dec 2015 Tenants Sales

11. Slide 11: Significant progress of results driven by the positive performance of the portfolio

    Corporate presentation Significant progress of results driven by the positive performance of the portfolio Consolidated Income Statement (Thousands of Euros) Q1 2016 Q1 2015 Chg (%) Recurring Non-Recurring Total Recurring Non-Recurring Total Rental Income 12,985 - 12,985 6,471 - 6,471 Other income 3

12. Slide 12: Attractive recent investments enhance the existing portfolio

    Corporate presentation Attractive recent investments enhance the existing portfolio Vistahermosa acquisition Acquisition of Vistahermosa Retail Park in June 2016 for Asset Type Retail Park €42.5Mn. Location Alicante Vistahermosa RP is located very close to Alicante city Date of Opening 2002 centre,

13. Slide 13: Attractive recent investments enhance the existing portfolio

    Corporate presentation Attractive recent investments enhance the existing portfolio Palmas Altas Full control of Portal de acquisition la Marina (remaining 41.22% stake) Asset Type Regional SC Asset Type Regional SC Location Seville Location Ondara Date of Opening End 2018 Date of Opening 2008 Acqui

14. Slide 14: Diversified and prudent financing strategy with a highly competitive cost of debt

    Corporate presentation Diversified and prudent financing strategy with a highly competitive cost of debt Amortization Profile Diversification of sources Highly compelling 2.3% cost of debt Net LTV1: 41% Corporate Bond 30% Back loaded debt amortization €140Mn Senior Secured Bond €462Mn profile €322Mn

15. Slide 15: Strong Valuation Performance (last appraisal Dec 2015)

    Corporate presentation Strong Valuation Performance (last appraisal Dec 2015) +€46Mn of revaluation in a holding period of 10.9 months Like for like1 Valuation growth 2015/2014 Valuation Bridge Since Acquisition €million Holding period: 10.9 months Total 6.1% 9943 8992 53 39 46 454 7 Logistic 11.0%

16. Slide 16: Agenda

    Corporate presentation Agenda 1 Company Description 2 Q1 2016 Results and recent developments 3 Active Management Strategy 4 Asset Portfolio Overview Lar España Real Estate SOCIMI, S.A. (LRE) – June 2016 16

17. Slide 17: Our portfolio continues to accelerate through Value-Added Management

    Corporate presentation Retail Our portfolio continues to accelerate through Value-Added Management outperforming a strong market 3 Pillars of operating performance of our +5% Net +4% Gross Rental retail portfolio: Operating Income Income since since acquisition +5% SALES acquisition A. Our selective

18. Slide 18: Lar España portfolio continuously outperforms the market

    Corporate presentation Retail Lar España portfolio continuously outperforms the market driven by an asset management aimed at improving shopping experience +7.2% of Total Sales and +5.3% Comparable Sales Q1 2016 vs Q1 2015 Performance of key Assets vs 2.9% of Spanish Retail Index1 Megapark Footfall

19. Slide 19: Tenants showing great interest in both our operating and under development assets

    Corporate presentation Tenants showing great interest in both our operating and under development assets High quality and diversified tenant base / Retail Projects under development 1 Palmas Altas Seville INDITEX 7.32% 2 MEDIA… 7.28% 3 DECATHLON 4.88% 4 CARREFOUR 4.22% 5 4.13% 6 H&M 2.97% 41% of sal

20. Slide 20: Offices and logistics improving value

    Corporate presentation Offices and logistics Offices and logistics improving value Offices Logistics Evolution Eloy Gonzalo Building  Managing current occupancy to gradually renovate the asset Joan Miró Building  First signs of tenant renovation negotiated upwards Office portfolio occupancy reache

21. Slide 21: Construction works and market commercialization started

    Corporate presentation Residential Construction works and market commercialization started Underground Construction started this quarter  More than €60Mn off-market reservations already prebooked Completed  VIP sales office in place, marketing plan launched  Construction contract signed in Februa

22. Slide 22: Priorities 2016

    Corporate presentation Priorities 2016 Retail Property Management Capex & Repositioning Refurbishment of Las Huertas Shopping Centre during 2016 Target of +5-7% Increase of Sales and ~96% Occupancy rate for the end of 2016. Aggressive letting plan for 50 new leases Capex to implement in most assets

23. Slide 23: A Unique Real Estate Manager

    Corporate presentation A Unique Real Estate Manager Our investment manager, is a seasoned, Spanish private Real Estate developer, Investor and Asset Manager with a 40-year track record of international experience, Joint Ventures with Tier 1 Investors and long-term relationships with Financial Instit

24. Slide 24: Alignment of interests

    Corporate presentation Alignment of interests 1 2 3 Exclusivity Structure and Incentives Management Commitment  The Manager is committed to exclusivity  Critical activities are carried out in-house:  Grupo Lar owns a 2.5% stake in Lar for commercial property investment  CFO España, subject to a

25. Slide 25: Agenda

    Corporate presentation Agenda 1 Company Description 2 Q1 2016 Results and recent developments 3 Active Management Strategy 4 Asset Portfolio Overview Lar España Real Estate SOCIMI, S.A. (LRE) – June 2016 25

26. Slide 26: Portfolio Overview

    Corporate presentation Porfolio Overview Location by asset class 8 Shopping Centres Offices 6 11 4 7 10 1 L’Anec Blau (Barcelona) 15 Egeo (Madrid) 2 Portal de la Marina (Alicante) 16 Arturo Soria (Madrid) 5 3 Albacenter (Albacete) Cardenal Marcelo Spinola 17 20 21 19 (Madrid) 22 23 1 4 Txingudi (Gui

27. Slide 27: Retail Complex: Megapark, Bilbao

    Corporate presentation Portfolio descriptions Retail Complex Megapark, Bilbao Asset Characteristics Asset Name: Megapark Asset Type: Retail complex Opening Date: 2004 Location: Bilbao 63,907 sqm GLA: RP1: 44,532 sqm FOC2: 19,395 sqm Acquisition price: €170Mn Price per sqm: €2,660/sqm No. Tenants: 13

28. Slide 28: Shopping Centre: El Rosal, León

    Corporate presentation Portfolio descriptions Shopping Centre El Rosal, León Asset Characteristics Asset Name: El Rosal Asset Type: Shopping Centre Opening Date: 2007 Location: León GLA: 51,142 Acquisition price: €87.5Mn Price per sqm: €1,711/sqm Location & Profile Investment Rationale No. Tenants:

29. Slide 29: Shopping Centre: Anecblau, Barcelona

    Corporate presentation Portfolio descriptions Shopping Centre Anecblau, Barcelona Asset Characteristics Asset Name: Anecblau Asset Type: Shopping Centre Opening Date: 2006 Location: Barcelona GLA: 28,863 sqm Acquisition price: €80.0Mn Price per sqm: €2,772/sqm No. Tenants: Multi-tenant Location & Pr

30. Slide 30: Shopping Centre: As Termas, Lugo

    Corporate presentation Portfolio descriptions Shopping Centre As Termas, Lugo Asset Characteristics Asset Name: As Termas Asset Type: Shopping Centre Opening Date: 2005 Location: Lugo GLA: 33,151 sqm Acquisition price: €67.0Mn Price per sqm: €2,021/sqm No. Tenants: Multi-tenant Location & Profile In

31. Slide 31: Shopping Centre + Hypermarket: Portal de la Marina, Alicante

    Corporate presentation Portfolio descriptions Shopping Centre+Hypermarket Portal de la Marina, Alicante Asset Characteristics Shopping Center Asset Name: P. De la Marina Asset Type: Shopping Centre Date of Opening: 2008 Location: Alicante GLA: 30,007 sqm Acquisition price: €81.0Mn Price per sqm: 2,6

32. Slide 32: Retail Park: Vistahermosa, Alicante

    Corporate presentation Portfolio descriptions Retail Park Vistahermosa, Alicante Asset Characteristics Asset Name: Parque Vistahermosa Asset Type: Retail Park Date of Opening: 2002 Location: Alicante GLA: 33,550 Acquisition price: EUR 42.5Mn Price per sqm: 1,252 €/sqm Location & Profile Investment R

33. Slide 33: Shopping Centre: Albacenter, Albacete

    Corporate presentation Portfolio descriptions Shopping Centre Albacenter, Albacete Asset Characteristics Asset Name: Albacenter Asset Type: Shopping Centre Opening Date: 1996 Location: Albacete GLA: 27,974 sqm Acquisition price: €39.9Mn Price per sqm: €1,426.3/sqm No. Tenants: Multi-tenant Location

34. Slide 34: Shopping Centre: Txingudi, Guipuzcoa

    Corporate presentation Portfolio descriptions Shopping Centre Txingudi, Guipuzcoa Asset Characteristics Asset Name: Txingudi Asset Type: Shopping Centre Opening Date: 1997 Location: Guipúzcoa GLA: 9,920 sqm Acquisition price: €27.7Mn Price per sqm: €2,789/sqm Location & Profile Investment Rationale

35. Slide 35: Shopping Centre: Las Huertas, Palencia

    Corporate presentation Portfolio descriptions Shopping Centre Las Huertas, Palencia Asset Characteristics Asset Name: Las Huertas Asset Type: Shopping Centre Opening Date: 1989 Location: Palencia GLA: 6,108 sqm Price of acquisition: EUR 11.7Mn Price per s.q.m.: €1,916/sqm No. Tenants: Multi-tenant L

36. Slide 36: Retail Warehouse: Nuevo Alisal, Santander

    Corporate presentation Portfolio descriptions Retail Warehouse Nuevo Alisal, Santander Asset Characteristics Asset Name: Nuevo Alisal Asset Type: Retail Warehouse Opening Date: 2010 Location: Santander GLA: 7,648 sqm Acquisition price: €17.0Mn Price per sqm: €2,223/sqm No. Tenants: Multi-tenant Loca

37. Slide 37: Retail Complex: Cruce de Caminos, Sagunto

    Corporate presentation Portfolio descriptions Retail Complex Cruce de Caminos, Sagunto Asset Characteristics Cruce de Caminos Retail Asset Name: Park & Gallery Asset Type: Retail Complex Opening Date: End 2017 Location: Sagunto 43,091 sqm Retail Park: 25,820 sqm GLA: Hyper: 10,066 sqm Retail Gallery

38. Slide 38: Shopping Centre: Palmas Altas, Seville

    Corporate presentation Portfolio descriptions Shopping Centre Palmas Altas, Seville Asset Characteristics Asset Name: Palmas Altas Regional Shopping Asset Type: Centre Date of Opening: End 2018 Location: Seville City Area Total: 123,000 Sqm Acquisition price: EUR 36Mn Location & Profile Key elements

39. Slide 39: Retail Complex: Villaverde, Madrid

    Corporate presentation Portfolio descriptions Retail Complex Villaverde, Madrid Asset Characteristics Asset Name: Villaverde Asset Type: Retail Warehouse Date of Opening: 2002 Location: Madrid GLA: 4,391 sqm Acquisition price: €9.1Mn Price per sqm: 2,072 €/sqm No. Tenants: Single-tenant Location & P

40. Slide 40: Retail Warehouses: Galaria, Pamplona

    Corporate presentation Portfolio descriptions Retail Warehouses Galaria, Pamplona Asset Characteristics Asset Name: PC Galaria Asset Type: Retail Units Location: Pamplona GLA: 4,108 Acquisition price: €8.4Mn Price per sqm: €2,045/sqm No. Tenants: 3 Location & Profile Investment Rationale • Located i

41. Slide 41: Office Building: Egeo, Madrid

    Corporate presentation Portfolio descriptions Office Building Egeo, Madrid Asset Characteristics Asset Name: Egeo Asset Type: Office Building Location: Madrid GLA: 18,254 sqm Acquisition price: €64.9Mn Price per sqm.: €3,555/sqm No. Tenants: Multi-tenant Location & Profile Investment Rationale Capex

42. Slide 42: Office Building: Arturo Soria 336, Madrid

    Corporate presentation Portfolio descriptions Office Building Arturo Soria 336, Madrid Asset Characteristics Asset Name: Arturo Soria Asset Type: Office Building Location: Madrid GLA: 8,663 sqm Acquisition price: €24.2Mn Price per sqm.: €2,793/sqm No. Tenants: Multi-tenant Location & Profile Investm

43. Slide 43: Office Building: Joan Miró, Barcelona

    Corporate presentation Portfolio descriptions Office Building Joan Miró, Barcelona Asset Characteristics Asset Name: Joan Miró Asset Type: Office Building Location: Barcelona GLA: 8.610 sqm Acquisition price: €19.7Mn Price per sqm: €2,285/sqm No. Tenants: 4 Location & Profile Investment Rationale Ca

44. Slide 44: Office Building: Card. Marcelo Spínola 42, Madrid

    Corporate presentation Portfolio descriptions Office Building Card. Marcelo Spínola 42, Madrid Asset Characteristics Asset Name: Marcelo Spinola Asset Type: Office Building Location: Madrid GLA: 8,584 sqm Acquisition price: €19.0Mn Price per sqm.: €2,213/sqm No. Tenants: Multi-tenant Location & Prof

45. Slide 45: Office Building: Eloy Gonzalo, Madrid

    Corporate presentation Portfolio descriptions Office Building Eloy Gonzalo, Madrid Asset Characteristics Asset Name: Eloy Gonzalo Asset Type: Office Building Location: Madrid GLA: 6,231 sqm Acquisition price: €12.8Mn Price per sqm.: €2,043/sqm No. Tenants: Multi-tenant Location & Profile Investment

46. Slide 46: Logistics Warehouse: Alovera I & Alovera II, Guadalajara

    Corporate presentation Portfolio descriptions Logistics Warehouse Alovera I & Alovera II , Guadalajara Asset Characteristics Asset Name: Alovera I & Alovera II Asset Type: Logistics W. Date of Opening: 1992-2008 Location: Guadalajara GLA: 119,147 sqm Acquisition price: €44.85Mn Location & Profile In

47. Slide 47: Logistics Warehouse: Alovera C2, C5C6 & Almussafes

    Corporate presentation Portfolio descriptions Logistics Warehouse Alovera C2 & Alovera C5C6, Guadalajara & Almussafes, Valencia Asset Characteristics Asset Name: 3 warehouses Logistics Asset Type: Warehouse Date of Opening: 2007 & 2008 &2005 Guadalajara & Location: Valencia GLA: 42,693 sqm Acquisiti

48. Slide 48: Residential Portfolio: Lagasca99 Building, Madrid

    Corporate presentation Portfolio descriptions Residential Portfolio Lagasca99 Building, Madrid Asset Characteristics Asset Name: Lagasca99 Asset Type: Residential Date of Construction: 2016-2018 Investment Rationale Location & Profile Location: Madrid • Location in Salamanca district, the most exclu

49. Slide 49: Corporate presentation

    Corporate presentation Lar España Real Estate SOCIMI, S.A. (LRE) – June 2016 49

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