Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — H1 2023 Earnings Presentation
32 slides from Helios Re Socimi's earnings presentation, Jul 28, 2023
Slide 1: 1H 2023 Results Presentation
1H 2023 RESULTS PRESENTATION 28th July 2023
Slide 2: Presenting Team
Presenting Team Miguel Pereda Jose Manuel Llovet Jon Armentia Hernán San Pedro Vice-Chairman of Lar España & Chief Executive Officer of Corporate Director and CFO of Investor Relations and Corporate Chairman of Grupo Lar Commercial Real Estate of Grupo Lar Lar España Communication Director of Lar Es
Slide 3: Index
Index 1 Highlights 2 Active management 3 Operating, financial and ESG results 4 Closing remarks 3 1H 2023 RESULTS PRESENTATION
Slide 4: Highlights
1 Miguel Pereda Highlights Vice- Chairman of Lar España & Chairman of Grupo Lar
Slide 5: Spain comparative position and Lar España strengths
1H 2023 RESULTS PRESENTATION Spain comparative position and Lar España strengths CPI interanual June 2023 100% of tenant contracts are 5.5% 1.9% indexed to the CPI. Collection rate stands at 98% Interest rates eurozone All our financial debt is at a fixed 4.25% rate (1.8%) and with maturities beyond
Slide 6: 2023, a year of relevant milestones
1H 2023 RESULTS PRESENTATION 2023, a year of relevant milestones 1 Dividend distribution 2 Bond Buy-Back repurchase 3 Fitch confirms its investment grade €50 Mn +€20.4 Mn Fitch again confirms Lar 14.2% Dividend yield over in the P&L España’s BBB investment grade market cap rating and stable outlook
Slide 7: Once again, 1H 2023 has been a semester of growth
1H 2023 RESULTS PRESENTATION Once again, 1H 2023 has been a semester of growth… Our centers Sales1 Footfall €505.1 Mn +7.5% vs 1H 2022 39.5 Mn visits +3.7% vs 1H 2022 +16.1% vs 1H 20192 -2.9% vs 1H 20192 How it has been reflected in our P&L GRI Net profit €48.9 Mn +16.4% vs 1H 2022 €35.1 Mn 3.4x vs
Slide 8: Active management
2 Jose Manuel Llovet Active management Chief Executive Officer of Commercial Real Estate of Grupo Lar
Slide 9: Leasing activity 1H 2023
1H 2023 RESULTS PRESENTATION Leasing activity 1H 2023 EXISTING GLA ROTATED NEGOTIATED RENT UPLIFT ANNUALIZED CONTRACTS RENTS ROTATION RATE > 1,000 28,149 sqm €7.1 Mn +7.7%1 10% 100 8 22 70 Operations New lettings Relettings Renewals 1 In addition to the indexation of contracts 9 Active management
Slide 10: Operating results in 1H 2023
1H 2023 RESULTS PRESENTATION Operating results in 1H 2023 9.5% 2.6 c.65% 98% EFFORT years contracts COLLECTION RATE1 MATURITY > RATE2 WAULT 2026 +16.4% +3.7% 96% 95% GRI EUROPEAN EUROPEAN MARKET AVERAGE OCCUPANCY MARKET AVERAGE VS 1H 2022 1 Including expenses 2 Percentage of rents and expenses colle
Slide 11: Sales by activity 1H 2023
1H 2023 RESULTS PRESENTATION Sales by activity 1H 2023 Sales 1H 20231: €505.1 Mn +7.5% vs 1H 2022 FOOD CULTURE, TECH LEISURE AND HOME FASHION AND MULTIMEDIA ENTERTEINMENT +9.1% vs 1H 2022 +11.5% vs 1H 2022 +13.6% vs 1H 2022 -2.9% vs 1H 2022 +7.5% vs 1H 2022 DINING HEALTH AND SERVICES SPORTS AND OTHE
Slide 12: €4.3 Mn invested in the improvement of our assets
1H 2023 RESULTS PRESENTATION €4.3 Mn invested in the improvement of our assets: generating more value €4.3 Mn As Termas with close to €2 Mn lead the investment made during the first six months of the Invested in capex year, mainly due to an agreement with the Inditex Group for the remodeling, expans
Slide 13: New openings in our shopping centers and retail parks
1H 2023 RESULTS PRESENTATION New openings in our shopping centers and retail parks 100 Operations 13 Active management
Slide 14: With permanent focus on innovation
1H 2023 RESULTS PRESENTATION With permanent focus on innovation Continuous Increase customer Optimizing management Increase the visibility improvement of awareness and improving of retailers customer experience communication Amazon & CRM Inpost salesforce Mallcomm Lar lockers Conecta Click & Smart M
Slide 15: Operating, financial & ESG results
3 Jon Armentia Operating, financial & ESG results Corporate Director and CFO of Lar España
Slide 16: Strong set of results
1H 2023 RESULTS PRESENTATION Strong set of results €33.5 Mn +25.6% €47.2 Mn 3.4x EBITDA vs 1H 22 EPRA EARNINGS vs 1H 22 €10.76 p.s. +6.0%1 €1,465.3 Mn -0.3% vs 1H 22 GAV vs June 22 EPRA NTA PER SHARE 1 Taking into account the dividend distributed in Q2 2023 16 Operating, financial & ESG results
Slide 17: A solid financial profile
1H 2023 RESULTS PRESENTATION with a solid financial profile BBB 1 NET FINANCIAL DEBT 2 NET LTV 3 AVERAGE COST OF DEBT €558.2 Mn 38.1% 1.8% 4 AVERAGE DEBT MATURITY 5 GREEN, FIXED RATE AND UNENCUMBERED 6 SOLID CASH POSITION 4.3 years 100% c. €95 Mn 17 Operating, financial & ESG results
Slide 18: Fitch again confirms Lar España's BBB rating
1H 2023 RESULTS PRESENTATION that has been recognized again by Fitch Maintenance of a high occupancy rate of 96% Affordability of rents again confirms Lar España’s BBB Rapid normalisation of rent collection after the pandemic investment grade rating and stable outlook because of… Higher spending per
Slide 19: Successful bond buy-back program
1H 2023 RESULTS PRESENTATION Successful Bond-buy-back program Key transaction terms Sources and uses Strong bondholder demand Implied discount achieved on Sources €mm resulting in a successful bond repurchase of 18% Cash from Balance Sheet 1Q 2023 90.5 transaction for Lar España’s Cash from Balance
Slide 20: Outperforming again the market average
1H 2023 RESULTS PRESENTATION Outperforming again the market average LAR ESPAÑA MARKET AVERAGE2 GRI vs 1H 2022 +16.4% +3.7% NOI vs 1H 2022 +21.6% +1.1% Occupancy 96% 95% Asset Valuation vs Dec 22 -0.5% -3.0% Asset Valuation vs Jun 22 -0.3% -4.8% NTA per share2 vs Dec 22 -1.6% -5.6% Dividend Yield ove
Slide 21: Paying one of the highest ordinary dividends in our history
1H 2023 RESULTS PRESENTATION Paying one of the highest ordinary dividends in our history Since our foundation, we have distributed a total of CAGR >€325 Mn 2014-2022 57.81%1 € 0.80 ps 14.2% Div Yield1 €75.0 Mn € 0.63 ps € 0.49 ps € 0.60 ps € 25 Mn2 €55.0 Mn €50.0 Mn € 0.33 ps €45.0 Mn € 0.36 ps € 0.
Slide 22: And our valuations keep stable
1H 2023 RESULTS PRESENTATION And our valuations keep stable 30th June 2023 Valuation €1,465.3 Mn Asset appraisal variations Valuation evolution vs European peers1 +53.2% June 2023 vs December 2022 Lar España -0.5% Peer 1 -2.9% Peer 2 -2.3% -0.3% -0.5% Peer 3 -3.4% Peer 4 -2.3% Since Jun 2022 Since D
Slide 23: Successful asset rotation policy
1H 2023 RESULTS PRESENTATION From the very beginning, we have been pursuing a successful asset rotation policy… 5.2% 87.5% Average Avg. Exit revaluation Yield over acq price Logistics Egeo Sale Joan Miró Eloy Gonzalo 22 Eroski Portfolio & Office Building Office Building Office Building Supermarkets
Slide 24: Divestment confirmed once again
1H 2023 RESULTS PRESENTATION …which we have confirmed once again GLA €129.1 33,763 sqm Mn Sale Price WAULT 2.8 years Occupancy +24.0% VISTAHERMOSA 97.9% Revaluation since acquisition GLA 36,447 sqm WAULT 6.3% 2.3 years Average Exit Yield1 RIVAS FUTURA Occupancy 92.4% 1 Transaction costs included 24
Slide 25: We continue with our focus on ESG
1H 2023 RESULTS PRESENTATION We continue with our focus on ESG… Accessibility Awarded 3 new Universal Accessibility certifications under the UNE- 170001 standard, meaning more than 60% of the portfolio is currently Carbon footprint certified under this standard. Working in registration of Company’s
Slide 26: Improving our ESG KPIs
1H 2023 RESULTS PRESENTATION …improving our ESG KPIs… Environmental data for effective reporting Social impact for better communities Electricity consumption GHG emissions Electricity -9.8% Scope 1+2 -39.4% +1,500 hours +€160,000 consumption vs H1 2022 vs H1 2022 dedicated to social invested in soci
Slide 27: ESG certifications at asset level
1H 2023 RESULTS PRESENTATION …and also our ESG certifications at asset level Recognizes Lar España's commitment to the ISO 14001 environment, as it promotes sustainability internally and externally. Recognizes the health and safety prevention system ISO 45001 that ensures that Lar España shopping ce
Slide 28: P&L 1H 2023
1H 2023 RESULTS PRESENTATION P&L 1H 2023 1H 2023 1H 2022 Consolidated Income Statement 1H 2023 (€ Million) Total Total % Revenues 47.2 40.5 +16.6% Other Income 1.7 1.6 Total Income 48.9 42.1 +16.4% Personnel expenses (0.4) (0.5) Other expenses (15.1) (14.9) Changes in the fair value of investment pr
Slide 29: Closing Remarks
4 Miguel Pereda Closing Remarks Vice- Chairman of Lar España & Chairman of Grupo Lar
Slide 30: In summary: another semester of strong results
1H 2023 RESULTS PRESENTATION In summary: another semester of strong results at operating, financial and corporate level GROWING MAJOR INCREASE IN MODERATE DEBT BOND BUY-BACK RENTS PROFIT LEVEL +16.4% 3.4x 38.1% +€20.4 Mn GRI vs 1H 2022 Net Profit1 vs 1H 2022 Net LTV Profit in the P&L STABLE STRONG D
Slide 31: 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 32: www.larespana.com
— lar = The REIT for thenew retail w€9rld www.larespana.com
Lar España Real Estate SOCIMI — H1 2023 Earnings Presentation on 6ix