Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — 9M 2020 Earnings Presentation
31 slides from Helios Re Socimi's earnings presentation, Nov 12, 2020
Slide 1: Situation Update & 9M 2020 results
Situation Update & 9M 2020 results 12-November-2020 www.larespana.com
Slide 2: Disclaimer
12 11 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 with, or control by, the Spanish National Securities Market Com
Slide 3: Index
12 11 2020 Index 1. 2. 3. 4. RETAIL COVID-19 9M 2020 SUMMARY & SECTOR & UPDATE RESULTS NEXT DRIVERS LAR ESPAÑA
Slide 4: Retail Sector & Lar España
— lor ae Real Estate 01 RETAIL SECTOR & LAR ESPANA
Slide 5: Retail world: appreciation, discounts… and reality
12 11 2020 Retail world: appreciation, discounts… and reality 1 DIVIDEND YIELDS Spain, a different market Retail REITs dividend yields (pre-COVID) well above other sectors COMMERCIAL DENSITY Low 13.9% 13.4% 4.6% 3.7% 3.5% 3.3% ASSETS Modern & adapted Shopping Lar Sector Industrial/ Student Residenti
Slide 6: Undeniable facts that make Lar España different
Undeniable facts that make Lar España different DIFFERENTIATION DIVERSIFICATION MANAGEMENT INNOVATION RESPONSIBILITY
Slide 7: Differentiation
12 11 2020 Differentiation PRIME ASSETS IN DOMINANT CATCHMENT AREAS The reference in every catchment area BUSINESS MODEL HIGHLY PROTECTED Outstanding quality: optimal size, tenant mix, prime locations and high occupancy SHOPPING CENTRES Among the only 74 prime SSCC in Spain ASSETS RETAIL PARKS 42% G
Slide 8: Diversification
12 11 2020 Diversification MULTIPRODUCT OFFER Different types of shopping centres, retail parks and retail units ASSETS ADAPTED TO THE DIVERSITY OF CUSTOMER NEEDS Transformation plan almost completed before COVID outbreak RETAILERS INTEGRATION Retailers as commercial partners with low effort rates R
Slide 9: Management
12 11 2020 Management MANAGER EXPERIENCE Grupo Lar real estate experience of +50y PROPERTY MANAGEMENT CRITICAL ACTIVITIES NOT-EXTERNALIZED Strong internal management team SOLID RELATIONSHIP Tailored solutions for each retailer's strategy RELATIONSHIP MANAGEMENT STRENGTHENED RELATIONSHIPS WITH COVID
Slide 10: Innovation
12 11 2020 Innovation LEADING THE DIGITAL TRANSFORMATION Incorporating technology as a key element for retailers and customers DIGITALIZATION BIG DATA FOR ASSET MANAGEMENT Evaluate the visitor experience and optimize the management of the assets OPTIMIZATION OF THE CUSTOMER JOURNEY Detection of new
Slide 11: Responsibility
12 11 2020 Responsibility RECURRENT INCOME GENERATION & RESILIENCE NOI +23.6% vs 9M 2019, +2.5% LfL. EBITDA +42% vs 9M 2019. FINANCIAL RESPONSIBILITY STRONG FINANCIAL STRUCTURE & LIQUIDITY Low LTV, no significant maturities in the next 16 months. ESG AS ANOTHER KEY BUSINESS DRIVER 100% shopping cent
Slide 12: What we have achieved
12 11 2020 What we have achieved ASSETS & MANAGEMENT CLIENTS & INNOVATION Multiproduct retail offer 43% GLA Highly protected SSCC (65%), RRPP (31%) & Optimal and comfortable crisis resilient activities: and resilient portfolio RRUU (4%)1 activity mix food (18%) and other3 (25%) Capex plan almost com
Slide 13: COVID-19 Update
— lar fue) Real Estate 02 COVID-19 UPDATE
Slide 14: Footfall and sales numbers recovered
12 11 2020 Footfall and sales numbers recovered GLA opened Footfall recovery Sales recovery 112% 105% Pre-COVID 95% 94% 96% levels 109% 91% 104% 94% 96% Partially 91% 92% recovered 49% 100% 98% 49% 33% 14% 33% COVID-19 impact 11% Jan Feb Mar Apr May Jun Jul Aug Sep 14 21 State of Alarm Mar Jun 14
Slide 15: Outperforming operating performance with a fast recovery
12 11 2020 Outperforming operating performance with a fast recovery Footfall1 Sales1, 3 Vs 9M 2019 Vs 9M 2019 June July August September June July August September -3.9% (23.8%)1 (22.5%)1,3 -8.7% -7.9% -6.5% LERE YTD LERE YTD Total Total -4.0% -19.8% -22.4% -5.5% -25.2% -6.1% (34.7%) -8.7% -36.9% SP
Slide 16: Present situation: 85% GLA opened and in operation
12 11 2020 Present situation: 85% GLA opened and in operation. Asset GLA Opened Comments Asset GLA Opened Comments Regional closing: 22:00 to 07:00h and Regional closing: 23:00 to 06:00h and Lagoh 95.3% from Nov.10 non-essential activities Txingudi 85.4% restaurants closed for 1 month from closed fr
Slide 17: 85% of rent collected over invoiced up to September
12 11 2020 85% of rent collected over invoiced up to September AGREEMENTS AND CONVERSATIONS WITH TENANTS ESTIMATED IMPACT OF COVID-19 IN P&L2 One-on-one Contracts agreements reached >2024 >95% GLA +60% Agreed rent reliefs INVOICED COLLECTED RENTS and deferrals RENTS OVER INVOICED due to COVID e.Impa
Slide 18: Leasing activity in 9M 2020
12 11 2020 Leasing activity in 9M 2020 >60% >1,000 9.5% 96% contracts 3.4y Existing Effort rate1 WAULT (including Occupancy2 >2024 contracts expenses) 18,679 sqm 5% ROTATED ANNUALISED ROTATION RATE 81 4.4 Mn OPERATIONS NEGOTIATED IN 9M 2020 RENT 1. Normalized effort rate as of February 2020. 2. Rati
Slide 19: Capacity to assume this scenario
12 11 2020 Capacity to assume this scenario RESILIENT PORTFOLIO FINANCIAL STRENTGH MULTIPRODUCT OFFER c.20% Food NO RELEVANT MATURITIES IN THE NEXT 16 MONTHS Balanced portfolio that has been key to High percentage react better and sooner than others of food tenants 65% 31% 4% BIG BRANDS 41% 2.2% 100
Slide 20: 9M 2020 Results
— lar fue) Real Estate 03 9M 2020 RESULTS
Slide 21: Operational results in 9M 2020
12 11 2020 Operational results in 9M 2020 +23.6% NOI vs 9M 2019 +42% +61% €10.79 +2.5% EBITDA Adj. EPRA Earnings EPRA NAV RESULTS vs 9M 2019 p.s.2 LfL1 NOI vs 9M 2019 p.s. vs 9M 2019 Outperforming the 5.9% 96% 3.4 years EPRA ‘topped-up’ Occupancy3 ASSETS Spanish market NIY 30 Sep 2020 WAULT 1. Like
Slide 22: Corporate results in 9M 2020
12 11 2020 Corporate results in 9M 2020 3rd SBB Net LTV €55 Mn dividend 1 c.€140 Mn liquidity2 41% Programme €0.63 p.s. Expenses covered CORPORATE extended Avg. cost of debt Dividend paid over the next 4 years 5% share capital 2.2% 100% AENOR Univesal 100% 100% Recommendations of the Accesibility Ce
Slide 23: Financial key figures 9M 2020
12 11 2020 Financial key figures 9M 2020 15 €71.4 Mn +24% Assets GRI vs 9M 2019 €1,509 Mn €53.6 Mn +42% €915.7 Mn €38.3 Mn GAV1 EBITDA vs 9M 2019 EPRA NAV EPRA Earnings 578,345 €729.3 Mn 2.2% €10.79 €0.45 GLA sqm Financial debt Cost of Debt EPRA NAV per share2 EPRA Earnings per share 3.4 y €621.1 Mn
Slide 24: Retail performance 9M 2020
12 11 2020 Retail performance 9M 2020 Operating results Retail yields Potential 6.5% +22.9% +23.6% +12.4% +11.0% growth Food Other resilient GRI NOI 9M 2020 9M 2020 sales activities sales2 September 2020 September 2020 5.9% 5.7% +1.6% +2.5% 96% LfL GRI1 LfL NOI1 Occupancy3 9M 2020 9M 2020 EPRA NIY E
Slide 25: Consolidated Income Statement 9M 2020 (€ Millions)
12 11 2020 Consolidated Income Statement 9M 2020 (€ Millions) Chg% 9M 2020 9M 2019 Recurring 9M 20/19 Recurring Non-Recurring Total Recurring Non-Recurring Total Rental Income 71.4 - 71.4 57.8 - 57.8 +24% Other Income 1.7 - 1.7 1.7 - 1.7 Personnel expenses (0.4) - (0.4) (0.3) - (0.3) Other expenses
Slide 26: Financial pillars and liquidity: No significant maturities in the next 16 months
12 11 2020 Financial pillars and liquidity: No significant maturities in the next 16 months Expenses covered over Debt Structure and As at 30.09.2020 the next 4 years Amortization Profile € Mn € Mn Gross Net €140 Mn €589.3 Mn financial debt financial debt Senior Bank €729.3 Mn €621.1 Mn c.1401 Secur
Slide 27: Exemplary property management and good governance
12 11 2020 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 SOCIETY COMMITMENT CORPORATE GOVERNANCE Data automation in shopping malls 100% of the portfolio a
Slide 28: Summary & Next Drivers
— lor ae Real Estate 04 SUMMARY & NEXT DRIVERS
Slide 29: Reasons to be confident in Lar España
12 11 2020 Reasons to be confident in Lar España MARKET OPPORTUNITY UNIQUE PORTFOLIO STRONG COMPANY 1 4 7 10 13 Solid relationships with Fast recovery of footfall in retailers Spain, Only prime assets Multiproduct offer with Sep 2020 (96%), a differentiated in dominant catchment shopping centres , r
Slide 30: Next drivers
12 11 2020 Next drivers TARGET COMMENTS Maintaining prudent control Dividends ▪ To maintain attractive dividend of the cash position Additional 22 supermarkets, Txingudi & ▪ Disposals Las Huertas held for sale cash generation Commitment to not increase capital Capital increase ▪ No share capital inc
Slide 31: www.larespana.com
www.larespana.com info@laespana.com Lar España Real Estate SOCIMI Lar España App
Lar España Real Estate SOCIMI — 9M 2020 Earnings Presentation on 6ix