Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — Investor Presentation (May 2017)
25 slides from Helios Re Socimi's investor presentation, May 2017
Slide 1: Corporate Presentation
Corporate www.larespana.com Presentation May 2017
Slide 2: Snapshot
2 Snapshot Shareholder Structure First IPO of a Spanish REIT listed on the Spanish Stock Exchange PIMCO; 20,0% Focused on creating both sustainable income and strong capital returns for shareholders Brandes Investment Lar España is managed by Grupo Lar, private Real Estate Asset Partners; 5,0%
Slide 3: Governance Structure
3 Governance Structure Independent and experienced Board: Critical Activities internalized 4 independent directors (4 out of 5) José Luis del Valle Roger Cooke Pedro Luis Uriarte Sergio Criado Jon Armentia Susana Guerrero Chairman and Independent Independent CFO Corporate Legal Independent Director
Slide 4: Retail platform + non-retail assets
4 Retail platform + non-retail assets MALL Offices Logistics Residential Retail Offices in consolidated Focus on logistic Development of first homes Top retail player locations of Madrid and properties on a selective in niche markets without Barcelona with good basis with low rents, low zoning risk,
Slide 5: Lar España Strategy
5 Lar España Strategy Special focus on under managed First IPO of a Spanish REIT assets listed on the Spanish Stock Exchanges Real Estate Manager with objective of MANAGEMENT implementing an Active Management Strategy in order to deliver “Alpha” >100 Real Estate Company’s business strategy is to acq
Slide 6: Retail Assets
6 Retail Assets Focus on shopping centres and retail parks Key assets in their catchment areas Locations Locations selected based on: Prime assets in their area of influence Level of competition Close to 500,000 sqm GLA Current GDP per capita and future growth outlook Impact of tourism as
Slide 7: Non-Retail Assets
7 Non-Retail Assets Opportunistic approach to other assets Core locations Focus on value added assets Luxury residential for sale Management as a key element to make acquisitions and Offices in Madrid and Barcelona generate differential value, taking advantage of Grupo Lar’s Logistics in main
Slide 8: Main Figures
8 Main Figures GAV (€Mn) EPRA Annualized Net Rent (€Mn) Residential Logistics Logistics 8% 6% Offices Offices 6% 12% Retail Dev €1,3861 ̴€702 Retail 4% 86% Retail 73% EPRA Topped-up NIY as of 31 December 2016 Occupancy Rate as of 31 December 2016 7.2% 100.0% 5.9% 93.7% 87.2% 2 93.5%3 5.8%3 TOTAL TOT
Slide 9: Valuation
9 Valuation Valuation Bridge Since Acquisition Portfolio Value evolution and LfL Change € Mn € Mn Portfolio Value LfL Value Change 12.30% 111 1.386 126 1,275 6.10% 259 48 851 2014 2015 2016 Value Change by Asset Class Since Acquisition LfL 2016 vs 2015 Total 15.8% 12.3% Retail 13.5% Acquisition & Ac
Slide 10: Significant potential upside in rents from reversion potential and developments project
10 Significant potential upside in rents from reversion potential and developments project – For illustrative purposes – Estimated Future Investments c.110 Existing Developments 14 96 Existing Income Generating Assets c.13 4 2 78 New 4 acquisitions 9 made in 2017 not 63 considered Annualised Reversi
Slide 11: The value of a retail platform
11 The value of a retail platform 470,000 sqm, 850 shops, c.52 Mn visitors, 13 cities Top 10 players own 167 shopping centres which represent c.25% of the total Spanish market Retail Leaders in Spain #1 Controlling Stake Total Assets GLA per Asset #2 Investment Volumes Owned GLA Estimate No. Assets
Slide 12: New sources of value – Retail Developments
12 New sources of value – Retail Developments Sagunto Palmas Altas c.60% c.25% GLA signed and pre-signed Pre-agreement €4 Mn €14 Mn Expected annual rental Expected annual rental income income 44,252 sqm 100,000 sqm GLA Retail and family leisure space
Slide 13: Lar España Digital
13 Lar España Digital Market trends forecasted that individuals will shop increasingly by a combination of online and offline, 1st year Expectations versus a significant reduction of only online or only offline shopping ↑ 5% Customers Retailers Lar España New buying channel Better Customer Servi
Slide 14: New sources of value: Residential
14 New sources of value: Residential 2018 Estimated delivery date Construction works on schedule The building has reached the 10th floor and the structure will be completed in April 50% +21% revaluation sold vs 2015 High interest from national and Strong revaluation due to international investors sc
Slide 15: Financial Results – FY 2016
Financial Results – FY 2016 Lagasca 99 Residential Development, Madrid
Slide 16: FY2016 Highlights
16 FY2016 Highlights 1,275 +42% vs Mn GAV 1 FY 2015 €117 +130% vs €830.4 EPRA NAV EBT2 FY 2015 €9.20 EPRA NAV Mn per share (€ ‘000s) €60.2 Rental +69% vs EPRA 5.5% EPRA Income FY 2015 5.8% “topped-up” NIY Mn Net Initial Yield €0.33 dividend4 93.5% €62.9 EPRA €30Mn Dividend3 2016 per share Occupancy
Slide 17: Major operative milestones during 2016
17 Major operative milestones during 2016 595.4 424.0 130 226.4 94 89.5 53.1 65 Total Sales 39.1 € Mn 28,639 32 21.7 Nº 20,051 Operations 18% 9.6 13,709 Footfall 16% Mn visitors 5,003 GLA Rotated 14% Sqm 10% Rotation Rate Since Acq 1Q 16 1H 16 9M 16 FY 16
Slide 18: FY2016 Operational and Financial Results
18 FY2016 Operational and Financial Results €60.2 Mn Revenues +69% vs 2015 €117.0 Mn EBT1 +129.8 vs 2015 01 Solid 2016 Results and Balance Sheet €25.9 Mn Adjusted EPRA Earnings +38.6% vs 2015 €830.4 Mn EPRA NAV +43.7% vs 2015 33% net LTV; €422 Mn Net Debt 2.2% cost of debt NOI Increase vs 2015 in Re
Slide 19: Retail Operating Performance
19 Retail Operating Performance #2 in GLA/average per shopping centre 01 #1 in ownership per shopping centre in Spain #3 in GLA in retail Spanish market Megapark (+7%, TOR:+85%), Albacenter (+16%; TOR: +311%), As Termas 02 +4.7% in NOI Increase vs 2015 (+13%, TOR: +84%) 03 -14% Discounts vs. 2015 Ro
Slide 20: Offices and logistics Operating Performance
20 Offices and logistics Operating Performance Progressive vacancy reduction in office portfolio Ongoing negotiations in Arturo Soria to increase building occupancy to 01 94.01% Offices and Logistics portfolio 98% after several floors refurbishment occupancy Maintaining 100% occupancy in logistics p
Slide 21: Debt Profile
21 Debt Profile Long Term debt maturity and competitive Key Figures of the financing 1 cost of debt Cost of debt 140 Average maturity 38% 2.2% 81% 2,80% 2,6% 6.9 8,00 5.8 6.6 5.9 2,60% 6,00 Net Loan to Average Cost of 2,40% Value (LTV2) Debt3 Hedge/ Fixed 2,5% 4 2.2% 2,2% 4,00 2,20% 2,00% 2,00 H1 20
Slide 22: FY2016 P&L
22 FY2016 P&L Consolidated Income Statement (€ Millions) Chg (%) FY 2016 FY 2015 FY16/FY15 Recurring Non-Recurring Total Recurring Non-Recurring Total Rental Income 60.2 - 60.2 35.7 - 35.7 Other income 1.8 - 1.8 1.0 - 1.0 Property Operating Expenses (10.0) - (10.0) (5.5) - (5.5) Base Fee (6.4) - (6.
Slide 23: Dividend: €30 Mn
23 Dividends Dividend: €30 Mn1 3rd dividend in 3 years 4.7% Dividend Yield2 €0.331 ps1 – May 26th, 20173 Dividend above 40 €0,331 ps1 0,4 guidance 30 €30.0 Mn1 0,3 €0,201 ps 20 0,2 Highest 10 €0,033 ps 0,1 dividend €12.0 Mn yield in €1.3 Mn 0 0 Spanish RE 2014 2015 2016 1 Dividend to be approved in
Slide 24: Closing Remarks Investment Opportunity
24 Closing Remarks Attractive €30 Mn dividend supported by a Strong set of Results with an €117 Mn EBT Attractive portfolio of €1,386 Mn1, out of which €1,256,5 Mn are rents generating assets that produce c.€70 Mn underpinned by the acquisitions of two excellent assets in Q1 2017 Upside potent
Slide 25: Contact us
Contact us Corporate www.larespana.com Presentation Lar España Real Estate SOCIMI
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