Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — FY2020 Earnings Presentation
38 slides from Helios Re Socimi's earnings presentation, February 2021
Slide 1: FY 2020 Results
FY 2020 RESULTS February 20 21 www.larespana.com
Slide 2: Presenting Team
Introduction. PRESENTING TEAM Jose Luis del Valle, Chairman of Miguel Pereda, Lar España José Manuel Llovet, Chief Jon Armentia, Corporate Hernán San Pedro, Head of I.R. Lar España Board of Directors Board Director & Chairman of Executive Officer of Director and CFO of Lar España and Corporate Commu
Slide 3: 2020, A Big Challenge: Strategy + Active Management = Resilience
Introduction. 2020, A BIG CHALLENGE: OUR STRATEGY + ACTIVE MANAGEMENT= RESILIENCE CONTEXT OVERVIEW OUR MAIN DECISIONS OUR MAIN ACHIVEMENTS > Keep highest health standards. > Safety measures implemented > Real estate at a mature stage. and health certification. > Capex halted and any new > Economic s
Slide 4: Table of Contents
TABLE OF CONTENTS 01. COVID-19 YEAR, 02. COVID-19 UPDATE 03. FY 2020 04. CLOSING REMARKS & COMPLEX TIMES PORTFOLIO SITUATION RESULTS NEXT DRIVERS 4
Slide 5: Covid-19 year, complex times
01. Covid-19 year, complex times. Miguel Pereda, Lar España Board Director & Chairman of Grupo Lar 5
Slide 6: 2020, A Complicated Year: Worldwide
Covid-19 year, complex times. 2020, A COMPLICATED YEAR: WORLDWIDE Consensus forecasts on world GDP FORECAST DRAMATICALLY DROPS Of all the global recessions that have occurred since 1990, the one caused by the Coronavirus has been the one that has generated the steepest and fastest reductions in cons
Slide 7: 2020, A Complicated Year: Spain
Covid-19 year, complex times. 2020, A COMPLICATED YEAR: SPAIN > GDP in Spain fell by 11% in 2020, the biggest drop in 85 years (in 2009 it was 3.8%). The equivalent is a drop in production of 130 billion. GDP in Spain Annual variation in % > In the six years of financial crisis, between 2008 and 201
Slide 8: 2020, A Complicated Year: Spanish Retail
Covid-19 year, complex times. 2020, A COMPLICATED YEAR: SPANISH RETAIL Retail sector has been one of the most impacted business sector in Spain and abroad, due to the strong restrictions in movements, opening hours and lockdowns as a result of the COVID-19 pandemic fighting measures. Shopping Centre
Slide 9: When It Rains, It Pours: Filomena Storm
Covid-19 year, complex times. WHEN IT RAINS, IT POURS: FILOMENA STORM The storm: 8th to 11th of January. Fast decision making > More than 30 hours of snowfall and 50cm of snow all > Crisis management team called on Friday 8th. over the surface. > Special communication plan with clients, tenants and
Slide 10: A Difficult Year: Lar España Maintains Strength Values
Covid-19 year, complex times. A DIFFICULT YEAR: LAR ESPAÑA MAINTAINS STRENGTH VALUES The composition of Lar España's asset portfolio has shown its strength in the evolution of performance vs previous years due to a balanced portfolio, with resilient and well-managed assets. The portfolio composition
Slide 11: A Difficult Year: Lar España Maintains Strength Performance
Covid-19 year, complex times. A DIFFICULT YEAR: LAR ESPAÑA MAINTAINS STRENGTH PERFORMANCE Thousands of € RENTAL INCOME / EBITDA Despite the complicated economic scenario, we have been able to maintain a good evolution in revenues as well as in our operating performance. (*) Does not include Other in
Slide 12: A Strategy to Follow: The Key Stone to Overcome Crisis
Covid-19 year, complex times. A STRATEGY TO FOLLOW: THE KEY STONE TO OVERCOME CRISIS > Dominant assets and excellent acquisition price > Close relationship with tenants. > Product mix and retailers. > Cost control and strong balance sheet. > Digital and omnichannel management. > Customer knowledge a
Slide 13: Pandemic Evolution and Vaccine Programme
Covid-19 year, complex times. PANDEMY EVOLUTION AND VACCINE PROGRAMME: WILL IMPROVE THE SITUATION In process In process Dec. 2020 Feb. 2021 June 2021 Although it is still progressing very slowly, Stage 0 Stage 1 Stage 2 Stage 3 the vaccination process in Spain is Widely moving forward and its penetr
Slide 14: Covid-19 Update Portfolio Situation
02. Covid-19 Update Portfolio situation José Manuel Llovet, Chief Executive Officer of Commercial Real Estate of Grupo Lar 14
Slide 15: Footfall and Sales Numbers Recovery
Covid-19: update portfolio situation FOOTFALL AND SALES NUMBERS RECOVERY GLA opened Footfall recovery Sales recovery 112% 105% 95% 94% 96% 96% 109% 91% 104% 86% 94% 96% 76% 91% 92% 93% 70% 72.6% 84% 74% 49% 68% 100% 60% 49% 33% 14% 33% 11% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 14 2
Slide 16: Present Situation: Partial Lockdowns
Covid-19: update portfolio situation PRESENT SITUATION: PARTIAL LOCKDOWNS % GLA Opened % GLA Opened Asset over area Comments Asset over area Comments occupied occupied Time restrictions for Time restrictions for retail and Lagoh 86.1% Txingudi 97.9% restaurants and retail restaurants. Time restricti
Slide 17: 90% of Rent Collected Over Invoiced
Covid-19: update portfolio situation 90% OF RENT COLLECTED OVER INVOICED AGREEMENTS AND CONVERSATIONS WITH TENANTS IMPACT OF COVID-19 IN 2020 One-on-one Contracts agreements reached >2024 Linear impact in P&L c.100% GLA +64% during the duration of each contract Rent reliefs (Avg. 6-7 years) and defe
Slide 18: Leasing Activity in 2020
Covid-19: update portfolio situation LEASING ACTIVITY IN 2020 >64% >1,200 9.5% 3.2y Effort rate1 95.5% contracts Existing Occupancy2 WAULT (including >2024 contracts expenses) 25,658 sqm 5% ANNUALISED ROTATED ROTATION RATE 108 6 Mn OPERATIONS NEGOTIATED IN 2020 RENT 1. Normalized effort rate as of F
Slide 19: Disposal of 22 Retail Units
Covid-19: update portfolio situation DISPOSAL OF 22 RETAIL UNITS 22 Eroski supermarkets sold > Selling operation of 22 comm. premises closed with Blackbrook Capital. > 39,000 sqm (28,000 GLA) leased to Eroski for avg. 10 years. > Price: €59 Mn > 24% revaluation over acquisition price (€47.6 Mn) > 2.
Slide 20: Capacity to Assume This Scenario
Covid-19: update portfolio situation CAPACITY TO ASSUME THIS SCENARIO RESILIENT PORTFOLIO FINANCIAL STRENTGH MULTIPRODUCT OFFER Net LTV >20% Food & Health Balanced portfolio that has been key to High percentage 41.9% react better and sooner than others of food & health tenants closing 2020 2.2% 96%
Slide 21: FY 2020 Results
03. no FY 2020 Results Jon Armentia, Corporate Director and CFO of Lar España 21
Slide 22: Operational Results in FY 2020
FY 2020 Results OPERATIONAL RESULTS IN FY 2020 +29% +12.4% € 1,475 Mn EPRA Earnings +14.8% NOI vs FY 2019 +18% GAV p.s. vs FY 2019 +0.8% EBITDA RESULTS GRI vs FY 2019 (4.9%) €10.42 LfL1 NOI vs FY 2019 vs Dec 2019 EPRA NTA p.s.2 Outperforming the 5.9% 95.5% 3.2 years Spanish market EPRA ‘topped-up’ O
Slide 23: Corporate Results in FY 2020
FY 2020 Results CORPORATE RESULTS IN FY 2020 €27.5 Mn dividend1 c.€140 Mn liquidity Net LTV €0.31 p.s. 3rd SBB Expenses covered 41.9% closing 2020 Proposed dividend Programme over the next 4 years CORPORATE extended Net LTV 6.7% Dividend Yield 5% share capital €59 Mn extra liquidity 39.4% Over marke
Slide 24: Financial Key Figures FY 2020
FY 2020 Results FINANCIAL KEY FIGURES FY 2020 15 €93.3 Mn +14.8% Assets GRI vs FY 2019 €1,475 Mn €69.7 Mn +18% €881.4 Mn €49.9 Mn GAV1 EBITDA vs FY 2019 EPRA NTA EPRA Earnings 578,370 €757.1 Mn 2.2% €10.42 €0.58 GLA sqm Financial debt Cost of Debt EPRA NTA per share2 EPRA Earnings per share 41.9% 39
Slide 25: Financial Key Figures FY 2020
FY 2020 Results FINANCIAL KEY FIGURES FY 2020 Operating Results Retail Yields 6.6% Potential +7.2% +9.8% +14.8% +12.4% growth Food Other resilient GRI NOI FY 2020 FY 2020 sales activities sales2 2020 2020 5.9% 5.7% +1.8% +0.8% 95.5% LfL GRI1 LfL NOI1 Occupancy3 FY 2020 FY 2020 EPRA NIY EPRA topped-
Slide 26: Financial Key Figures FY 2020
FY 2020 Results FINANCIAL KEY FIGURES FY 2020 Expenses covered over the next 4 years Gross Net € Mn financial debt financial debt €757.1Mn €617.8 Mn 1 59 Fixed rate Avg. debt maturity 96% c.140 3y Avg. cost of debt 2.2% Net LTV FY 2020 41.9% Covenants Net LTV 100% Cash position 39.4% complied c.€200
Slide 27: Refinancing: Negotiations Expected to Be Completed by Summer 2021
FY 2020 Results REFINANCING: NEGOTIATIONS EXPECTED TO BE COMPLETED BY SUMMER 2021 Debt Structure and As at 31.12.2020 Amortization Profile € Mn €140 Mn €617.1 Mn Senior Bank > Despite the fact that Lar España does not have Secured Bond Debt significant maturities to face until 2022, the company has
Slide 28: Asset Appraisal December 2020
FY 2020 Results ASSET APPRAISAL DECEMBER 2020 31st December 2020 Valuation €1,475.5 Mn > A resilient portfolio of dominant shopping 46.9% centres in attractive catchment areas. Including Capex Invested > Cherry-picked portfolio, assets carefully analysed and selected without buying portfolios. -2.0%
Slide 29: Market Confirms Assets at Appraisal Values: Sale of 22 Supermarkets
FY 2020 Results MARKET CONFIRMS ASSETS AT APPRAISAL VALUES: SALE OF 22 SUPERMARKETS 24% 2.2% revaluation over over June 2020 acq price appraisal value Disposal operation successfully closed notwithstanding COVID scenario. Arturo Soria Sale Egeo Sale Villaverde & Logistics Galaria Sale Office Buildin
Slide 30: Effect of Valuations
FY 2020 Results EFFECT OF VALUATIONS Effect on Valuations Effect on P&L 15.0% increase in rental income vs Jun 20 vs Dec 19 Chg% FY 2020 FY 2019 Recurring FY 20/19 Including Capex Invested (2.0%) (4.9%) Rental Income 93.3 81.1 15.0 % Changes in the Fair Value of (100.7) 41 Investment Properties Excl
Slide 31: P&L FY 2020
FY 2020 Results P&L FY 2020 Chg% FY 2020 FY 2019 Recurring FY 20/19 Consolidated Income Statement FY 2020 (€ Millions) Recurring Non-Recurring Total Recurring Non-Recurring Total Rental Income 93.3 - 93.3 81.1 - 81.1 +15.0% Other Income 3.6 - 3.6 3.3 - 3.3 Personnel expenses (0.5) - (0.5) (0.4) - (0
Slide 32: Exemplary Property Management and Good Governance
FY 2020 Results EXEMPLARY PROPERTY MANAGEMENT AND GOOD GOVERNANCE EPRA Gold Award - Financial Reporting EPRA Gold Award - Sustainability Reporting 6th year in a row 3rd year in a row ENVIRONMENTAL COMMITMENT SOCIAL COMMITMENT CORPORATE GOVERNANCE Carbon footprint analysis 5 assets certified accordin
Slide 33: Closing Remarks & Future Drivers
04. Closing remarks & future drivers Jose Luis del Valle, Chairman of Lar España Board of Directors 33
Slide 34: Reasons to Be Confident About Lar España
Closing remarks & next drivers REASONS TO BE CONFIDENT ABOUT LAR ESPAÑA LAR ESPAÑA UNIQUE PORTFOLIO AND UNIQUE STRENGHTS 1 2 Prime assets in dominant High exposure areas with right mix of to resilient activities with shopping centres, retail >20% of GLA from food & parks and retail units. health ten
Slide 35: Attractive Dividend Maintained
Closing remarks & next drivers ATTRACTIVE DIVIDEND MAINTAINED Committed to profitability € 0.63 ps > Prudent cash position control with a € 0.54 ps detailed liquidity analysis. €55.0 Mn € 0.49 ps €50.0 Mn > >90% cashflow generated in 2020 . € 0.33 ps €45.0 Mn > 3.1% dividend yield on NAV. € 0.31 ps
Slide 36: Future Drivers: Strong Financials, Active Management, Safety Portfolio and Profitability
Closing remarks & next drivers FUTURE DRIVERS: STRONG FINANCIALS, ACTIVE MANAGEMENT,SAFETY PORTFOLIO AND PROFITABILITY TARGET COMMENTS Attractive dividend while maintaining Dividends > €27.5 Mn dividend proposed prudent control of cash position Additional 22 supermarkets sold to Blackbrook in > €59
Slide 37: Disclaimer
DISCLAIMER This document has been prepared by Lar España Real Estate SOCIMI, S.A. (the “Company”) for information purposes only and the information included in this document is not regulated information or information which has been subject to prior registration with, or control by, the Spanish Nati
Slide 38: www.larespana.com
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