Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — FY2019 Earnings Presentation
33 slides from Helios Re Socimi's earnings presentation, Feb 14, 2020
Slide 1: FY 2019 Results
FY 2019 RESULTS _ 14-Feb-2020 www.larespana.com
Slide 2: Index
14 02 2020 Corporate Presentation | The Spanish Retail Specialist Index 1. 2. 3. 4. 2019 2019 2019 Future The results of Strong Outperforming Different, our strategy financial the market innovative, results again experiential & profitable
Slide 3: The Results of Our Strategy
01 2019 THE RESULTS OF OUR STRATEGY _
Slide 4: The results of our strategy: A different company for a changing market
14 02 2020 2019 The results of our strategy: A different company for a changing market STRONG BALANCE SHEET VALUE TECHNOLOGICAL FOCUS ON FINAL ESG AS ANOTHER ESSENTIAL & OPERATING RESULTS CREATION DEVELOPMENT CUSTOMER & RETAILERS BUSINESS METRIC Leaders in Spain with Divestment plan TES Project “Cus
Slide 5: Strong operational results in 2019
14 02 2020 Strong operational results in 2019 €11.47 +9% +45% +13% +55% EPRA NAV p.s.1 EBITDA Adj. EPRA Earnings p.s. Portfolio revaluation LfL Portfolio revaluation LfL RESULTS vs 2018 vs 2018 since Dec 2018 since acquisition +10.1%2 vs 31 Dec 2018 16 +25% 96.5% 64.5 Mn quarters outperforming +9% A
Slide 6: Strong corporate results in 2019
14 02 2020 Strong corporate results in 2019 €55 Mn dividend1 1st & 2nd SBB 3rd SBB Net LTV €0.63 p.s. completed programme 34% CORPORATE Dividend yield1 launched Avg. cost of debt 9% over market cap2 7.8 Mn shares amortized 5% share capital 2.1% 100% AENOR Univesal 100% +20% recommendations of the Ac
Slide 7: Lar España performance: A story of growth
14 02 2020 Lar España performance A story of growth Retail Occupancy Rate1 Retail GAV (€ Mn) Retail GAV 98.0% Total GAV Revaluation since acquisition 96.5% 1,199 1,376 1,552 96.0% 95.0% 94.8% 93.7% 962 55% 94.0% 92.1% 614 40% 92.0% 24% 90.0% 4% 14% Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q4 2019 2015 2016 2
Slide 8: Non-core assets divestment plan completed
14 02 2020 Non-core assets divestment plan completed with the lagasca99 fully sold 5.2% 87.5% Average Avg. Exit revaluation Yield over acq price Arturo Soria Sale Egeo Sale Villaverde & Alisal Logistics Portfolio Galaria Sale Joan Miró Marcelo Spínola Eloy Gonzalo Lagasca99 Office Building Office Bu
Slide 9: Lar España Asset Appraisal
14 02 2020 2019 Lar España Asset Appraisal Total Portfolio 31st December 2019 Valuation €1,552 Mn 54.5% 12.7% 6.9% Since June 2019 Since December 2018 Since Acquisition Including Capex Invested 9
Slide 10: Strong Financial Results
02 2019 STRONG FINANCIAL RESULTS _
Slide 11: Successful & strong financial key figures delivered in 2019
14 02 2020 01 Company Description Successful & strong financial key figures delivered in 2019 15 €81.1 Mn +4.2% Assets GRI vs 2018 €1,552 Mn €59.3 Mn +8.8% €1,003.8 Mn 8.21% GAV EBITDA vs 2018 EPRA NAV ROE 579,286 €697.9 Mn 2.1% €11.471 0.63 GLA sqm Financial debt Cost of Debt EPRA NAV per share Div
Slide 12: Solid retail performance
14 02 2020 Solid retail performance driven by robust operating results in 2019 Retail yields Operating results Commercial activity Potential growth 6.2% +1.2% +1.6% LfL GRI1 LfL NOI1 €9.5 Mn 52,961 sqm Negotiated rent Rotated area 5.9% +18.6% (8.7)% Turnover rent1 Operating costs1 5.6% 135 +9% 96.5%
Slide 13: Strong valuation performance
14 02 2020 Strong valuation performance Increasing portfolio’s value despite the execution of the divestment plan in 2018 and 2019 € Mn Portfolio Value 1,538 1,536 161 177 1,552 1,275 899 406 2014 2015 2016 2017 2018 Divestments Revaluation 2019 2019 1 2019 1. During 2019 Lar España sold Marcelo Spí
Slide 14: Consolidated Income Statement
14 02 2020 Consolidated Income Statement (€ Millions) Perimeter’s change P&L Affecting: FY 2019 FY 2018 14 26% 16% Revenues 81.1 77.8 assets GLA rents Other income 3.3 3.7 Asset Typology GLA Rental income Personnel expenses (0.4) (0.5) Divested in 2019 Amortization expenses - (0.3) Lagasca99 Residen
Slide 15: Consolidated Income Statement Pro-forma Retail Portfolio
14 02 2020 Consolidated Income Statement Pro-forma Retail Portfolio Consolidated Income Statement (€ Millions) (€ Millions) Chg% P&L Retail portfolio P&L FY 2019/18 FY 2019 FY 2018 FY 2019 FY 2018 Revenues 81.1 77.8 Revenues 80.9 73.2 +10.5% Other income 3.3 3.7 Other income 2.5 3.7 Personnel expens
Slide 16: Solid financial pillars
14 02 2020 Solid financial pillars Debt Structure and Amortization Profile As at 31.12.2019 € Mn €140 Mn €557.9 Mn Gross Net Senior Bank Secured Bond Debt financial debt financial debt €697.9 Mn €531.2 Mn 254.9 219.2 Average debt Average 140.0 maturity cost of debt 173.4 4y 2.1% 40.3 114.9 Fixed rat
Slide 17: New financings in Vidanova Parc and Rivas Futura
14 02 2020 New financings in Vidanova Parc and Rivas Futura Improving the cost and the maturity of the Company’s debt VIDANOVA CURRENT NEW RIVAS CURRENT NEW PARC CONDITIONS CONDITIONS FUTURA CONDITIONS CONDITIONS Lender Lender Amount €17.1 Mn €28.0 Mn +€11 Mn Amount €27.5 Mn €34.5 Mn +€7 Mn Interest
Slide 18: Dividend
14 02 2020 Dividend At the top of the Spanish Stock Market Exchange +€5 Mn vs 2018 +111% CAGR1 €0.63 ps 2 Cash dividend €0.54 ps €0.49 ps €55.0 Mn 2 €50.0 Mn 5.5% 8.9% €0.33 ps €45.0 Mn Dividend Yield Dividend Yield +€25 Mn special on NAV3 on Market Cap3 €0.20 ps €30.0 Mn dividend LG99 €0.033 ps 10.
Slide 19: New share buy-back programme of up to 5%
14 02 2020 New share buy-back programme of up to 5% Maximizing additional value for our shareholders The purpose of the Buy-Back Programme is the further reduction of Lar España’s share capital through the amortization of shares 1st 2nd 3rd Share Buy-Back Programme Share Buy-Back Programme Share Buy
Slide 20: Outperforming the Market Again
03 2019 OUTPERFORMING THE MARKET AGAIN _
Slide 21: Sales and footfall outperforming the Spanish market
14 02 2020 16 quarters outperforming the Spanish market Maximizing additional value for our shareholders Sales1 2019 Footfall 2019 815.2 Mn € 64.5 Mn visits Vs 2018 Vs 2018 334,850 +1.9%3 +4.4% 3 sqm GLA 87 min affected by Avg. stay refurbishments +2.1%2 +2.1%3 in 2019 Lagoh (1.9%)4 higher avg. stay
Slide 22: Strong letting activity with 9% rental growth
14 02 2020 Strong letting activity with 9% rental growth Optimal mix portfolio with leading brands Letting activity at the core of the strategy Solid ratios convey comfort to our retailers 3.5y 9.8% +9% Wault Effort rate (including RENTAL GROWTH1 expenses) Key openings in 2019 52,961 sqm 11% ROTATED
Slide 23: Capex: Extension and renovation to create value
14 02 2020 Capex: Extension and renovation to create value Every investment is decided based on ROI, to generate revenues Capex 2019 Refurbishment pipeline Est. Capex % Execution 19% Megapark €7.3 Mn Retail Park + FOC: completed Extension/ Leisure area: 20% executed renovation Capex Image & access:
Slide 24: Lagasca99: Value Creation Case
14 02 2020 Lagasca99: Value Creation Case 1 Luxury residential development in Madrid, fully sold and delivered New residential concept in the centre of Madrid 100% €25 Mn sold and delivered special dividend paid in May 2019 REDUCES THE ENVIORONMENTAL IMPACT Higher insulation LED lighting Class A or
Slide 25: Refurbishments: Value Creation Case
14 02 2020 Refurbishments: Value Creation Case 2 Major refurbishments completed in 2019 PORTAL DE LA MARINA PARQUE ABADÍA PORTAL DE LA MARINA REFURBISHMENT PARQUE ABADÍA REFURBISHMENT ENHANCE CUSTOMERS EXPERIENCE SIDEWALKS AND TERRACES EXTENSION ✓ Food court terraces & more comfortable spaces ✓ New
Slide 26: Lagoh: Value Creation Case
14 02 2020 Lagoh: Value Creation Case 3 Best example of new generation experiential retail Experience F&B Retail ✓ Wind tunnel ✓ Gaming ✓ Gourmet market ✓ Optimal commercial mix ✓ Giant wave ✓ Yelmo premium cinemas ✓ Casual dining ✓ Flagship stores ✓ Zipline ✓ Boat ride in the lake ✓ Food-court ✓ Ti
Slide 27: Anec Blau: Value Creation Case
14 02 2020 Anec Blau: Value Creation Case 4 In a complete transformation to be the leading fashion, leisure and dining hub in the region NEW FASHION SQUARE FULLY REFURBISHED NEW FOOD COURT, LEISURE AREA & GARDEN 70% completed Inditex c.€2 Mn Expanding and renewing the Expected rental image 20 new re
Slide 28: Visible potential for growth of our portfolio
14 02 2020 Visible potential for growth of our portfolio 25% potential future growth +5.9% >6% 25% Retail Expected Estimated Rental Topped-Up NIY NIY Increase Potential Future Existing Income Investments Generating Assets 15 8 115 100 92 Annualised Topped Up Net Rent Reversionary Potential – Market
Slide 29: Future: Different, Innovative, Experiential & Profitable
04 FUTURE DIFFERENT, INNOVATIVE, EXPERIENTIAL & PROFITABLE _
Slide 30: Closing remarks
14 02 2020 Closing remarks Summary of key figures RESULTS ASSETS CORPORATE Increasing NAV Maximizing value +10.1% EPRA NAV p.s. 16 quarters for our shareholders outperforming the Increasing valuations Spanish market €55 Mn dividend 1 +13% portfolio revaluation in sales and footfall announced for 201
Slide 31: Next steps
14 02 2020 Next steps More different, more innovative, more experiential & more profitable 1 Constant focus on income generation 2 Recurrent and solid rental growth 3 Top level, high and sustained dividend for our shareholders Maximize value for our shareholders through SBB programmes 4 with full am
Slide 32: Disclaimer
14 02 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 or control by the Spanish Securities Market Commission. This do
Slide 33: Follow us
Follow us www.larespana.com info@laespana.com Lar España Real Estate SOCIMI Lar España App
Lar España Real Estate SOCIMI — FY2019 Earnings Presentation on 6ix