Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — Investor Presentation (April 2019)
37 slides from Helios Re Socimi's investor presentation, April 2019
Slide 1: Corporate Presentation
Corporate Presentation April 2019
Slide 2: Index
INDEX 01 02 03 04 05 Company Investment Financial ESG Appendix Description Highlights Results Summary Recognitions 2
Slide 3: Company Description
O1 Company Description RETAIL _. / Le ACTON,
Slide 4: Snapshot
Snapshot Shareholder Structure First IPO of a Spanish REIT listed on the Spanish Stock Exchange PIMCO Other investors 19.9% Focused on creating both sustainable income and strong capital returns for 47.8% shareholders Manager Lar España is managed by Grupo Lar, private Real Estate Asset Manager, Gru
Slide 5: Board of Directors & critical activities
Board of Directors & critical activities Independent and experienced Board: 5 independent directors (5 out of 7) Critical Activities internalized José Luis del Valle Roger Cooke Leticia Iglesias Jon Armentia Susana Guerrero Hernán San Pedro Chairman and Independent Independent Independent Corporate
Slide 6: Major corporate milestones in 2018
Major corporate milestones in 2018 FEB APR JUN AUG OCT DEC Rivas Futura Dividend +34% Galaria Investor Day +40% Acquisition Payment Asset Revaluation Retail Park Asset Revaluation since Acq. Abadía Commercial since Acq. Divestment EIB Joan Miró AGM Financing Gallery Divestment Acquisition Share Buy-
Slide 7: Portfolio at a glance
Portfolio at a glance 90% of GAV concentrated in retail assets Assets GLA 18 €1,536 Mn 622,643 2 acquisitions in 2018 Gross Asset Value1 sqm Retail Rest of the portfolio 1 GAV 90% 10% Rental 94% 6% Income 1 Retail Offices (1 asset): In process of divestment Residential (1 asset): In process of deliv
Slide 8: Investment Strategy focused on retail
Investment Strategy focused on retail Unique shopping centres & retail parks SHOPPING CENTRES & RETAIL PARKS MAIN CHARACTERISTICS Dominant in its Value-creation Core+ catchment areas potential 100% Target levered ownership IRR>12% Unique exposure to real estate retail assets, the Resilient prime dom
Slide 9: The value of a retail platform
The value of a retail platform Main market players by owned GLA, including GLA under development1 Lar España has consolidated among the top retail operators in Spain. Now, the target is to selectively increasing GLA to generate revenue synergies Owned GLA (est.) Nbr. Assets Avg. ownership per asset
Slide 10: Strong Transformation + Innovation
Strong Transformation + Innovation TRANSFORMATION STRATEGY DIGITAL INNOVATION Customer Tenant Big Data Full Connectivity journey mix Customer Webs analysis enhancing Intelligence APPS WIFI Social Media Capex and On-site shopping Market Place Seeketing improvement centre intensive Click & Collect Mar
Slide 11: External manager: A real estate reference
External manager: A real estate reference Grupo Lar now owns Investment Management a 10.2% stake Agreement in Lar España, subject to a lock-up period Manager New IMA signed in 2018 Grupo LAR Key Facts 1 Family owned Company +50Y of experience Retail Offices 39 Shopping centres invested, 9 Office bui
Slide 12: Business Plan Guidance 2018-2021
Business Plan Guidance 2018-2021 Target Returns ▪ 12% Target Annual Return on investments ▪ €403 Mn of divestments From Office, residential and non-core retail assets 38% realized 1 Divestments ▪ >€119 Mn of divestments From all logistics portfolio (100% realized) 100% realized ▪ Finance all existin
Slide 13: Investment Highlights
02 Investment Highlights 13
Slide 14: Lar España 12 Ideas Clock
Lar España 12 Ideas Clock Attractive ordinary, special dividend & SBB Debt management aim to reduce interest 12 rates risk & financing costs Retail leaders in Spain 11 1 Acquisition pipeline focus on Economic growth in Spain, increase our retail platform value outperforming Europe 10 2 Strong Operat
Slide 15: Retail leaders in Spain; Economic growth
Retail leaders in Spain Economic growth 1 Assets Retail GAV Retail Annualised Retail GLA Net Rent 15 #1 Retail leaders 581,1642 retail park in Spain €1,376 Mn1 €69.0 Mn1 Best location sqm owner in Spain Best Retailers mix Prime Assets, dominants in their catchment areas, 100% ownership 2 • Economic
Slide 16: Strong Operating Results; Technology
Strong Operating Results Technology 3 Strong Results, active asset Time per GRI NOI visit Footfall Sales management, Growth Growth 12 quarters 87 min +0.8%1 +2.2% +3.2% +3.7% outperforming +6% vs 2017 Spanish market FY 2018 vs 2017 4 DIGITALISATION EXPERIENCE ESG Customer ▪ Retail & Tech: the need f
Slide 17: ESG Developments
ESG Developments 5 Environmental Social Governance Lar España promotes Lar España’s portfolio Lar España continues sustainability certification assets generate social impacts to make great strides measures & adopts new that transform and build shared forward in terms of ESG a strong pillar technolog
Slide 18: Asset revaluation; Capex investments
Asset revaluation Capex investments 7 € Mn Portfolio Value 1,538 1,536 76 273 195 1,275 Continuous asset 899 revaluation, including asset 406 disposals 2014 2015 2016 2017 Acquisitions Divestments Revaluation Dec 2018 2018 1 2018 2 2018 8 Extension/ Renovation Capex Expected for 2018-2021 75% Expect
Slide 19: Rents upside; Acquisition pipeline
Rents upside Acquisition pipeline 9 Ongoing Future Investments Existing Income Development Generating Assets 15 110 4 15 95 6 Rents upside from 80 existing retail 70 portfolio Annualized Topped Reversionary Reversionary Reversionary Lagoh 3 Potential Annualized Future Potential Annualized Up Net Ren
Slide 20: Debt management; Attractive dividend
Debt management Attractive dividend 11 Debt management Gross Net Net Avg. Cost Avg. Debt aim to reduce Financial Financial LTV of Debt Maturity interest rates risk Debt Debt (31/12/2018) and reduce financing costs €621.7 Mn €431.5 Mn 28% 2.16% 5.6y 12 Attractive ordinary, €75.0 Mn including 7.5% 10.
Slide 21: Financial Results FY 2018
03 Financial Results FY 2018 21
Slide 22: Lar España improves its solid operative results in FY 2018
Lar España improves its solid operative results in FY 2018 +7.0% 40.0% 12 quarters revaluation since in Net Profit1 acquisition €11.14 NAV p.s. outperforming the OPERATING RESULTS +42.4% 12.1% +8.5% vs FY 2017 Spanish market in Property Operating Result1 in sales & footfall revaluation LfL 2018/17 V
Slide 23: Supported by strong financials in FY 2018
Supported by strong financials in FY 2018 Net LTV Lagoh Rivas Futura & Abadía EIB 28% Financing Financing New Credit Line December 2018 2018 FINANCINGS c. €100 Mn €36.2 Mn €70 Mn Average AND DEBT development facility Mortgage Loan October 2018 Cost of debt 2.16% €75 Mn1 dividend BREEAM® (€25 Mn1 Spe
Slide 24: Successful & strong financial key figures delivered in FY 18
Successful & strong financial key figures delivered in FY 2018 18 2 622,643 Assets Acquired in 2018 GLA sqm €1,536 Mn +12.1% LfL €77.8 Mn +0.3% €1,037 Mn 13.4% GAV vs FY 2017 GRI vs FY 2017 EPRA NAV ROE €621.7 Mn 2.16% €80.9 Mn +42.2% €11.14 8.0% Financial Debt Cost of Debt EBITDA1 vs FY 2017 EPRA N
Slide 25: Solid retail performance driven by robust operating results in FY 2018
Solid retail performance driven by robust operating results in FY 2018 Retail Rest of the portfolio Retail Rest of the portfolio GAV 90% 10% Rental Income 94% 6% Retail yields Operating results Commercial activity Potential 6.3% +3.2% growth LfL GRI €8.3 Mn 38,723 sqm Negotiated rent Rotated area 5.
Slide 26: Consolidated Income Statement (€ Millions)
Consolidated Income Statement (€ Millions) P&L Chg% RECURRING NON-RECURRING FY 2018/17 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Rental Income 77.8 77.6 77.8 77.6 - - Other Income 3.7 2.2 3.7 2.2 - - Property Operating Expenses (12.6) (11.3) (12.6) (11.3) - - Base Fee (8.7) (9.0) (8.7) (9.0) -
Slide 27: ESG Summary
04 ESG Summary 27
Slide 28: Lar España's approach to ESG
Lar España´s approach to ESG Environmental Social Governance Responsible management Active listening Ethics and Integrity Sustainability certifications Social initiatives Independent Board Environmental awareness Accessibility Risk Management Innovation Wealth creation Transparency 100% shopping cen
Slide 29: Environmental Innovation
Environmental Innovation Energy efficiency Water management Air quality Lighting Presence detector Complex control systems for ventilation Climate control Watering systems Air purifier systems Building systems Cooling towers Solar power Other lines of initiative Alternative energy sources Tri-genera
Slide 30: Social Society-based initiatives
Social Society-based initiatives Business Citizen Social climate Health and oportunities participation & values well-being + 225 days + 28 NGOs +€212,000 + 25,500 Kg + 25,000 Kg of environmental and charities earmarked to of clothing donated of food collected in initiatives at our collaborated with
Slide 31: Governance Action plan
Governance Action plan ✓ Experienced and mostly independent Board of Directors (5 of 7 members): Complying with the best 16 meetings in 2018 practices in the corporate governance field ✓ Action Plan main objectives: Strong governance TRANSPARENCY Transparency, business ethics, corporate social respo
Slide 32: Appendix
05 Appendix RETAIL _. / Le ACTON, 32
Slide 33: Retail Assets
Retail Assets Megapark Gran Vía Lagoh P. Marina El Rosal Anec Blau As Termas Abadía Bilbao Vigo Seville Alicante Ponferrada Barcelona Lugo Toledo Development Market Value €222.2 Mn €173.0 Mn €132.0 Mn €129.2 Mn €110.2 Mn €97.1 Mn €87.6 Mn €83.4 Mn (Dec 2018) GLA (Sqm) 83,349 41,432 100,0002 40,158 5
Slide 34: Retail Assets
Retail Assets Rivas Albacenter Vidanova Parc Vistahermosa Madrid Albacete Valencia Alicante Other Assets2 Market Value €67.5 Mn €60.4 Mn €59.9 Mn €50.5 Mn €103.1 Mn (Dec 2018) GLA (Sqm) 36,447 27,890 45,568 33,363 44,888 30 Jul ’14 Acquisition Date 6 Feb ´18 3 Aug ’15 16 Jun ’16 NA 19 Dec ’14 Acquis
Slide 35: Other Assets
Other Assets Eloy Gonzalo Residential Office Building in process of divestment Lagasca99 in process of delivery Market Value Market Value €39.4 Mn €166.8 Mn2 (Dec 2018) (Dec 2018) GLA (Sqm) 6,401 GLA (Sqm) 26,203 Acquisition Date NA Acquisition Date 30 Jan ´15 Acquisition Price €12.7 Mn Acquisition
Slide 36: Disclaimer
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 Commission. This document neit
Slide 37: Follow us
Follow us www.larespana.com info@laespana.com Lar España Real Estate SOCIMI Lar España App
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