Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — FY2016 Earnings Presentation
36 slides from Helios Re Socimi's earnings presentation, Feb 28, 2017
Slide 1: FY 2016 Results
FY 2016 www.larespana.com Results Feb 2017 28th February, 2017 FY 2016 Results - Lar España Real Estate Vistahermosa, Alicante
Slide 2: 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 3: Lar España's presenting team
3 Lar España’s presenting team MIGUEL PEREDA Board Member and Co-CEO of Grupo Lar SERGIO CRIADO CFO JOSE MANUEL LLOVET Head of Retail Operations of Grupo Lar JON ARMENTIA Corporate Director HERNÁN SAN PEDRO Head of Investor Relations FY 2016 Results - Lar España Real Estate
Slide 4: Agenda
Agenda 01 02 03 04 05 2016 Business FY 2016 Growth Closing Highlights Performance Financial Drivers Remarks Results FY 2016 Results - Lar España Real Estate
Slide 5: 2016 Highlights
1 2016 Highlights FY 2016 Results - Lar España Real Estate As Termas Shopping Centre, Lugo
Slide 6: Successful & Strong Key Facts delivered in 2016
6 Successful & Strong Key Facts delivered in 2016 +42% vs 1,275 Mn GAV 1 FY 2015 +130% vs EPRA NAV EPRA NAV €117Mn EBT2 FY 2015 €9.20 €830.4 per share (€ ‘000s) Rental +69% vs EPRA EPRA €60.2Mn Income FY 2015 5.8% “topped-up” NIY 5.5% Net Initial Yield €0.33 dividend4 EPRA €30Mn Dividend3 2016 per s
Slide 7: Major corporate milestones during 2016
7 Major corporate milestones during 2016 Palmas Altas €141 Mn Investor Day Acquisition Capital Increase +5.4% +15.8% asset revaluation Completion of Portal de Dividend +9.3% asset revaluation Lar España’s Digital asset revaluation since acquisition la Marina acquisition Payment since acquisition Pro
Slide 8: Solid Company performance in 2016
8 Solid Company performance in 2016 €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 Retail +4.
Slide 9: Business Performance
2 Business Performance FY 2016 Results - Lar España Real Estate Albacenter Shopping Centre, Albacete
Slide 10: Portfolio at a glance
10 Portfolio at a glance GAV (€Mn) EPRA Annualized Net Rent (€Mn) Logistics Residential 5% Logistics 6% 9% Offices Offices 6% 14% Retail Dev €1,2751 €62.9 Retail 5% 85% Retail 70% EPRA Topped-up NIY Occupancy Rate 7.2% 100.0% 93.7% 2 93.5%2 TOTAL 5.9% 5.8%2 TOTAL 87.2% LAR ESPAÑA LAR ESPAÑA OCC. RAT
Slide 11: Good prospects for the Spanish economy
11 Good prospects for the Spanish economy Positive Outlook in GDP Growth Spanish economy has been surprising on the upside during the last years % YoY Change Spain Eurozone It is expected to continue outperforming the Eurozone 3.2 3.2 Confidence of consumers keeps growing in line with income a
Slide 12: Strong valuation performance in all asset classes
12 18.06 average holding period Strong valuation performance in all asset classes Valuation Bridge Since Acquisition Portfolio Value evolution and LfL Change € Mn € Mn Portfolio Value LfL Value Change 12.30% 126 1,275 259 6.10% 48 851 2014 2015 2016 Value Change by Asset Class Since Acquisition LfL
Slide 13: Operating assets backed by development projects
13 Retail Operating assets backed by development projects Rent Generating Assets Developments +13.5% +8.8% 2 €18 Mn Retail valuation growth Total Sales growth Ongoing development Expected annual rental since acquisition projects income +5.7% 130 44,252 sqm 100,000 sqm Footfall growth Operations in 2
Slide 14: Major operative milestones during 2016
14 Major operative milestones during 2016 595.4 424.0 130 226.4 94 89.5 53.1 65 Total Sales 39.1 € Mn 32 28,639 21.7 Nº Operations 20,051 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 FY 2016 Results - Lar España Real Estate
Slide 15: Retail Highlights
15 Retail Retail Highlights #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 Rosal
Slide 16: Outperforming the market
16 Retail Outperforming the market Lar España is outperforming the market Top 5 tenants represent >30% retail rents Lar España % RETAIL RENTS Nº UNITS Retail Sales Lar +8.8% España 9% 52 Footfall +5.7% 7% 5 Spain Retail AECC2 +3.6% 7% 2 Index1 Footfall +2.9% Index Spain 4% 4 +0.9% 4% 6 1 INE. Spanis
Slide 17: Active asset management in main shopping centres in 2016
17 Retail Active asset management in main shopping centres in 2016 Megapark, Vizcaya Portal de la Marina, Alicante El Rosal, León Footfall 10.6Mn T. Sales +2% NOI +6.7% Footfall 3.8Mn T. Sales +5% NOI +4.5%1 Footfall 5.4Mn T. Sales +2% NOI +16.5% As Termas, Lugo Albacenter, Albacete Las Huertas, Pal
Slide 18: 12% LfL rent increase per sqm in leasing activity
18 12% LfL Retail Rent increase per sqm in leasing activity: FY 2016 & New shops Anchors ATTRACT NEW AND INNOVATIVE TENANTS CREATE A WELL-BALANCED TENANT MIX 34 Reletting 35 New Lettings 47 Renewals 14 Relocations Main Deals Signed in Q4 2016 28,639 sqm 18% Rotation GLA Leased Rate since acq Vistahe
Slide 19: Active management case study
19 Retail Active management case study: Acquisition Date New tenants 16th June 2016 3 new tenants since acquisition: 3,324 sqm Occupancy “take off” in record time Footfall +60.4% increase 2016 vs 2015 89.6% 87.2% New image and renovation 80% Improvement of common spaces and signage replacement 60.2%
Slide 20: A turnaround case study: Value added
20 Retail A turnaround case study: BEFORE Value added strategy AFTER FY 2016 Results - Lar España Real Estate
Slide 21: A turnaround case study
21 Retail A turnaround case study: Since acquisition: +9% 12 new lettings 17 renewals 3 strategic Occupancy growth Rent relocations from Uplift + relettings 26% of Total GLA 92.7% to 97.5%1 The Challenge Out-dated Shopping Centre Oversized Leisure Sector Hypermarket and its Gas 19 years without any
Slide 22: 2 ongoing development projects
22 Retail development 2 ongoing development projects 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 FY 2016 Results - Lar España Real Estate
Slide 23: Case Study: Retail development
23 Retail development Case Study: c.60% >9% GLA signed and pre-signed Expect. Net Initial Yield €4 Mn Q1 2018 Annual Rental Income Expected Opening Date Leroy Merlin & Urban Planet €26 Mn Leases signed with anchors Expected Development Costs 44,252 €14 Mn GLA (Sqm) Acquisition Price Ongoing works FY
Slide 24: Offices and logistics Highlights
24 Non-retail assets Offices and logistics Highlights Progressive vacancy reduction in office portfolio Ongoing negotiations in Arturo Soria to increase building occupancy to 98% 01 94.01% Offices and Logistics portfolio occupancy after several floors refurbishment Maintaining 100% occupancy in logi
Slide 25: Non-retail assets
25 Non-retail assets Offices Logistics 87.2%1 100% Occupancy Occupancy 87.2%1 occupancy . Expected progressive vacancy reduction in 100% occupancy maintained in all our logistics assets office portfolio after ongoing negotiations ERV €8.0 Mn ERV €5.9 Mn Accessibility audit in Eloy Gonzalo,
Slide 26: Marcelo Spínola: works completed on time and on cost
26 Non-retail assets Marcelo Spínola: works completed on time and on cost Stunning city views Great visibility from M-30 ring, BREEAM Certification in a consolidated most travelled highway in awarded office area Madrid Currently in commercialization 8,875 sqm Co-exclusive, main real estate agents in
Slide 27: Lagasca 99: a significant driver of value to Lar España Shareholders
27 Residential Lagasca 99: a significant driver of value to Lar España Shareholders 2018 Estimated delivery date Construction works on schedule Completed structure up to 5th level In process +21% + 44% sold revaluation vs 2015 High interest from national and Strong revaluation due to international i
Slide 28: FY 2016 Financial Results
3 FY 2016 Financial Results FY 2016 Results - Lar España Real Estate Lagasca 99, Madrid
Slide 29: Consolidated Income Statement (€ Millions)
29 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) - (6.4) (3.9) -
Slide 30: Lar España's Debt Profile
30 Lar España’s Debt Profile Long Term debt maturity and competitive cost of debt Key Figures of the financing 1 Cost of debt Average maturity 140 2.70% 2.6% 8.0 6.9 2.60% 6.6 7.0 5.8 5.9 2.50% 6.0 33% 2.2% 78% 2.40% 2.5% 5.0 2.30% 2.20% 2.2% 2.2% 4.0 Net Loan to Average Cost 3.0 Value (LTV2) Hedge/
Slide 31: Performance fee invested in Lar España shares @ NAV ps
31 Performance fee invested in Lar España shares @ NAV ps Shareholders Return Rate Calculation Remuneration on Shareholders return rate Both conditions are met 143 12 1. Shareholders Return Rate >10% 259 2. Relevant High Water Mark < EPRA NAV 2015 + SRR 2016 128 €25.56 Mn of Performance Fee Said amo
Slide 32: Significant potential upside in rents from reversion potential and developments
32 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 4 78 9 63 3 Annualised net rent Reversionary Reversionary Marcelo Spínola
Slide 33: Dividend: €30 Mn
33 Dividends Dividend: €30 Mn1 3rd dividend in 4.7% Dividend Yield2 3 years €0.331 ps1 – May 26th, 20173 Dividend above 40 0.4 €0,331 ps1 guidance 30 0.3 €30.0 Mn1 €0,201 ps 20 0.2 Highest 10 0.1 dividend €0,033 ps €12.0 Mn yield in 0 €1.3 Mn 0 Spanish RE 2014 2015 2016 1 Dividend to be approved in
Slide 34: Closing Remarks
5 Closing Remarks FYOffice Egeo 2016 Results - Lar Building, España Real Estate Madrid
Slide 35: Closing Remarks
Closing Remarks Attractive €30 Mn dividend1 supported by a Strong set of Results with an €117 Mn EBT2 Attractive portfolio of €1,275 Mn, out of which €1,145.8 Mn are rents generating assets that produce €62.9 Mn underpinned by the acquisitions of three excellent assets in 2016 Extensive Active Manag
Slide 36: FY 2016 Results - Lar España Real Estate
FY 2016 Results - Lar España Real Estate
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