Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — Investor Presentation (June 2020)
35 slides from Helios Re Socimi's investor presentation, June 2020
Slide 1: Corporate Presentation June 2020
Corporate Presentation _ June 2020 www.larespana.com
Slide 2: Index
June 2020 Corporate Presentation | The Spanish Retail Specialist Index 1. 2. 3. 4. COVID-19 Company Financial ESG Update Overview Results Summary
Slide 3: COVID-19 Update
Pe lar Real Estate laselg- Bd 01 COVID-19 UPDATE
Slide 4: Safety and winner asset model to overcome current situation
June 2020 Safety and winner asset model to overcome current situation DIFFERENTIATED AND DOMINANT ASSETS IN EACH LOCATION RETAIL MULTIPRODUCT • 14 dominant and prime assets in its catchment areas. 96% occupation. PLAYER • High exposure to food retailers: 22 retail units anchored by supermarkets. 25%
Slide 5: Strong financial structure, transparency and governance
June 2020 Strong financial structure, transparency and governance DEBT AND LIQUIDITY FINANCIAL PRUDENCE • Net LTV: 35%. • Principle of austerity and adapted • Avg. cost of debt: 2.1%. expenditure to the new situation. • 83% fixed rate and no relevant maturities in the next 2 • Minimization of costs
Slide 6: Performance and survey data supports our shopping centres in their reopening
June 2020 Performance and survey data supports our shopping centres in their reopening Customer survey to c.7,000 customers during the first days of reopening • The plans of consumption • Although the client has • Most of our customers • Customers consider in a • Customers consider that after quaran
Slide 7: How are we taking care of our employees and customers?
June 2020 How are we taking care of our employees and customers? A really safe portfolio of assets Capacity control in real time using Shopper Trak technology. Constant cleaning and disinfection of common areas. Access lanes and queue management in stores to guarantee physical distance. Multiple dis
Slide 8: Well positioned for the new times with new assets
June 2020 Well positioned for the new times with new assets Safe and integrated spaces SECTOR NEEDS LAR ESPAÑA’S OFFERING 1 Get clients to go to shopping centres Dominant and prime assets in each of its catchment areas 2 Assets that guarantee all health and hygiene safety measures and social distanc
Slide 9: Company Overview
Pe lar Real Estate Lge Bd 02 COMPANY OVERVIEW
Slide 10: Lar España
June 2020 Lar España Real retail value First Spanish REIT to IPO on the Spanish Stock Exchange with an 15 +19.7% outstanding quality, dominant and 100% owned portfolio. Assets NOI vs Q1 2019 Focused on creating both sustainable income and strong capital growth for shareholders. Solid and recurrent o
Slide 11: Diversified, multiproduct and dominant portfolio
June 2020 Diversified, multiproduct and dominant portfolio To be the retail leaders in Spain Lagoh Gran Vía de Vigo Megapark 69,720 sqm Size: 41,453 m2 81,561 sqm Visits: 2.6 Mn1 Visits: 7.3 Mn Visits: 11.8 Mn Sales: €44.5 Mn1 Sales: €109.6 Mn Sales: €115 Mn Dominant SC Dominant SC Dominant SC RP Àn
Slide 12: Company structure & shareholder overview
June 2020 Company structure & shareholder overview INDEPENDENT AND EXPERIENCED BOARD: SHAREHOLDER OVERVIEW 5 INDEPENDENT DIRECTORS (OUT OF 7) José Luis del Valle Roger Cooke Leticia Iglesias PIMCO Chairman and Independent Independent Independent 20.7% Director Director Director Alec Emmott Isabel Ag
Slide 13: Retail leadership in Spain
June 2020 Retail leadership in Spain Lar España has consolidated its position among the top retail operators in Spain Main shopping centres and retail parks market players RETAIL LEADERS IN SPAIN Avg. GLA #1 IN SPAIN #1 IN SPAIN #1 IN SPAIN Owned GLA (est.) # Shopping Centres ownership per asset sqm
Slide 14: Strong management capacity
June 2020 Strong management capacity External manager: Grupo Lar, real estate reference with 50y track-record Family-owned Company +50Y of 1 experience 2 Strong Management Team Investment Management Agreement International Experience with Tier 1 3 New IMA signed in 2018 investors 4 Geographical Dive
Slide 15: Spanish retail market
June 2020 Spanish retail market Differences vs UK/US OMNICHANNEL CHALLENGE DIFFERENT RETAIL MARKETS Vs. Retailers are having fewer stores but more spaced to provide customer experience but at the same time an online product RENTS COMMERCIAL DENSITY collection point. Rents in shopping centres and med
Slide 16: The results of our strategy
June 2020 The results of our strategy: A different company for a changing market STRONG BALANCE SHEET PREPARED FOR THESE TECHNOLOGICAL FOCUS ON FINAL ESG AS ANOTHER ESSENTIAL & OPERATING RESULTS NEW TIMES DEVELOPMENT CUSTOMER & RETAILERS BUSINESS METRIC Leaders in Spain with Assets c.100% owned, TES
Slide 17: Investment highlights: Assets in Action
June 2020 Investment highlights “Assets in Action” ASSETS IN ACTION • Large areas to avoid crowding • Grupo Lar +50y track-record OPTIMAL 1 SAFE • • Technology to control flows Best practices in accessibility 1 MANAGEMENT • • Retail experience in past crisis Active management • Optimal mix of stores
Slide 18: Financial Results Q1 2020
03 FINANCIAL RESULTS Q1 2020 _
Slide 19: Operational results in Q1 2020
June 2020 Operational results in Q1 2020 +19.7% 1,555 €11.72 NOI vs Q1 2019 +43% +75% GAV1 EPRA NAV p.s.2 EBITDA EPRA Earnings p.s. RESULTS +2.7% vs Q1 2019 vs Q1 2019 +5% +2.2% LfL NOI vs Q1 2019 vs 31 Mar 2019 vs 31 Dec 2019 89 Mn Outperforming the +9% 96% Avg. Stay Spanish market Rent uplift Occu
Slide 20: Corporate results in Q1 2020
June 2020 Corporate results in Q1 2020 3rd SBB Net LTV €55 Mn dividend 1 c. €200 Mn liquidity 35% programme €0.63 p.s. Expenses covered CORPORATE maintained Avg. cost of debt Dividend paid over the next 4 years 5% share capital 2.1% 100% AENOR Univesal 100% +20% recommendations of the Accesibility C
Slide 21: Lar España performance
June 2020 Lar España performance Solid business metrics to overcome the current situation High-quality & 60% contracts with c. €200 Mn liquidity: No significant diversified tenants have Expenses covered maturities in the tenant base. maturities over the next 4 next two years Effort rate of 9.5%1 bey
Slide 22: Financial key figures
June 2020 01 Company Description Financial key figures delivered in Q1 2020 15 €24.1 Mn +24.3% Assets GRI vs 2019 €1,555 Mn €17.1 Mn +42.7% €1,002.8 Mn €12.5 Mn GAV1 EBITDA vs 2019 EPRA NAV EPRA Earnings 578,464 €721.2 Mn 2.1% €11.72 €0.14 GLA sqm Financial debt Cost of Debt EPRA NAV per share2 EPRA
Slide 23: Retail performance
June 2020 Retail performance delivered in Q1 2020 Operating results Commercial activity +2.6% (8.6)% +19.5% +19.7% Non-recoverable €1.9 Mn 7,668 sqm Minimum GRI NOI Negotiated rent Rotated area guaranteed rent1 costs1 +1.1% +2.7% 96% 32 +9% LfL GRI1 LfL NOI1 % Occupancy2 Operations Rent uplift 1. Ex
Slide 24: Asset valuation
June 2020 Asset valuation Our assets make the difference in each of their locations € Mn Portfolio Value 1,538 1,536 1,555 ▪ A resilient portfolio of dominant shopping 161 180 centres in attractive catchment areas 1,275 ▪ Cherry-picked portfolio, assets carefully analysed and selected without buying
Slide 25: Consolidated Income Statement (€ Millions)
June 2020 Consolidated Income Statement (€ Millions) Q1 2020 Q1 2019 Chg% Recurring Q1 2020/19 Recurring Non-Recurring Total Recurring Non-Recurring Total Rental Income 24.1 - 24.1 19.4 - 19.4 +24.3% Other Income 0.8 - 0.8 0.5 - 0.5 Personnel expenses (0.1) - (0.1) (0.1) - (0.1) Other expenses (7.4)
Slide 26: Financial pillars and liquidity
June 2020 Financial pillars and liquidity No significant maturities in the next two years Expenses covered over Debt Structure and As at 31.03.2020 the next 4 years Amortization Profile € Mn € Mn Gross Net €140 Mn €581.2 Mn financial debt financial debt c.200 Senior Secured Bond Bank Debt €721.2 Mn
Slide 27: Capacity to maintain the planned dividend payment schedule
June 2020 Capacity to maintain the planned dividend payment schedule Following a detailed liquidity analysis +€5 Mn vs 2018 Among the leading Spanish listed companies in terms of direct +111% €0.63 ps 2 shareholder remuneration CAGR1 Cash dividend €0.54 ps €0.49 ps 2019 dividend paid on April 16th €
Slide 28: Consistently outperform the Spanish market
June 2020 Consistently outperform the Spanish market Seeketing and customer journey at the core of the strategy to increase dwell time and sales STRONG JANUARY & FEBRUARY OUTPERFORMING THE SPANISH MARKET Increasing dwell time in our SCs 89 min +2% Sales Jan & Feb 2020 1 Footfall Jan & Feb 2020 AVG.
Slide 29: ESG Summary
Pe lar Real Estate on action! 04 ESG SUMMARY
Slide 30: Lar España's approach to ESG
June 2020 Lar España´s approach to ESG E S G Environment Corporate Governance Lar España promotes Lar España’s portfolio Lar España continues Sustainability assets generate social to make great strides Creating shared certification measures. In impacts that transform forward in terms of value for ou
Slide 31: Environmental
June 2020 Environmental Responsible management Sustainable Management Energy 100% of shopping centres are BREEAM® certified, rated “good” or PV solar panels in retail assets. “very good” Home automation systems to maximise energy efficiency in residential properties. New developments are designed an
Slide 32: Social
June 2020 Social Society-based initiatives in our communities AACESIBILITY 100% AENOR 67% €834,000 Accessibility of SCs & RPs have Universal Accessibility of assets are in the undergone process of obtaining invested diagnosis certification in 13% of in improving In collaboration with accessibility a
Slide 33: Governance
June 2020 Governance Structure BoD Composition (7 members, 5 independent) Board & Committees General Shareholders Meeting Jose Luis del Valle Chairman Board of Directors Alec Emmott Leticia Iglesias 17 Meetings in 2019 Audit & Control Appointments & Remuneration Miguel Pereda Roger Maxwell Cooke Com
Slide 34: Disclaimer
June 2020 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 with, or control by, the Spanish National Securities Market Comm
Slide 35: Follow us
Follow us www.larespana.com info@laespana.com Lar España Real Estate SOCIMI Lar España App
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