Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — Q1 2018 Earnings Presentation
26 slides from Helios Re Socimi's earnings presentation, May 11, 2018
Slide 1: Q1 2018 Results
Q1 2018 www.larespana.com Results May 2018 May 11th, 2018 Q1 2018 Parc, VidaNova Results - Lar España Real Estate Sagunto
Slide 2: Agenda
Agenda 01 02 03 04 Q1 2018 Q1 2018 Corporate Closing Highlights Financial Activity Remarks Results & towards Business Growth and Performance Value Creation Q1 2018 Results - Lar España Real Estate
Slide 3: Successful & strong key facts delivered in Q1 2018
3 Successful & strong key facts delivered in Q1 2018 +10% vs €1,536 Mn GAV 1 Q1 2017 €33.2 Mn Net Profit €10.47 EPRA NAV €968.8 Mn EPRA NAV pre-divestment fee per share 2 Rental +9% vs 5.6% EPRA 5.4% EPRA €19.6 Mn Income Q1 2017 “topped-up” NIY Net Initial Yield €112.5 Mn 2018 +24% Sale Price 93.0%
Slide 4: Q1 2018 Highlights
01 Q1 2018 Highlights Q1 2018 Results - Lar España Real Estate Vistahermosa Retail Park, Alicante
Slide 5: Solid business performance & successful start of asset rotation process
5 Solid business performance & successful start of asset rotation process €19.6 Mn Revenues +9% vs Q1 2017 €968.8 Mn EPRA NAV €10.47 p.s.1 01 Solid Q1 2018 Results and Balance Sheet 33% Net LTV; €589.4 Mn Gross Debt 2.21% cost of debt Retail NOI LfL improvement +5.0% LfL 02 Impressive Performance of
Slide 6: Portfolio at a glance
6 Portfolio at a glance GAV1 €1.54 Bn Other Assets 18% Retail 82% EPRA Annualized Net Rent €73.3 Mn EPRA Topped-up NIY 6.8% 5.8% 5.6% TOTAL Other Assets LAR ESPAÑA 9% EPRA Topped-up NIY 1.8% Retail 91% Retail Offices Logistics 1. Total GAV = asset valuation as of 31st December 2017 + capex invested
Slide 7: Q1 2018 Financial Results & Business Performance
02 Q1 2018 Financial Results & Business Performance Q1 2018 Results - Lar España Real Estate As Termas Shopping Centre, Lugo
Slide 8: Strong valuation performance in our developments & refurbishments
8 Strong valuation performance in our developments & refurbishments <2 MONTHS LEFT <12 MONTHS LEFT <3 MONTHS LEFT FOR THE START FOR VIDANOVA’S OPENING FOR PALMAS ALTAS’ OPENING OF LAGASCA 99 DELIVERY Given the level of progress on the developments and the refurbishment of Eloy Gonzalo, we have asked
Slide 9: Strong valuation performance in our developments
9 Strong valuation performance in our developments € Mn Portfolio Value 1,538 76 113 1 1,536 34 1,275 899 406 2014 2015 2016 2017 Acquisitions Divestments Valuation 31 March 2018 2018 2018 Developments & Refurbishments 1. Includes development’s and refurbishment’s revaluation and differences between
Slide 10: Consolidated Income Statement (€ Millions)
10 Consolidated Income Statement (€ Millions) Chg (%) Rec. Q1 2018 Q1 2017 Q1-18/Q1-17 Recurring Non-Recurring Total2 Recurring Non-Recurring Total2 Rental Income 19.6 - 19.6 18.0 - 18.0 Other Income 0.4 - 0.4 0.6 - 0.6 Property Operating Expenses (4.5) - (4.5) (4.1) - (4.1) Base Fee (2.2) - (2.2) (
Slide 11: Performance fee invested in Lar España shares @ NAV ps
11 Performance fee invested in Lar España shares @ NAV ps Shareholders return rate calculation Remuneration on shareholders return rate 19.4% SRR1 €10.0 Mn ACCRUED IN 2017 30 Performance Fee 131 PAID IN APRIL 2018 ACCRUED IN Q1 2018 THE SALE OF ASSETS, FOR A MINIMUM €17.9 Mn OF €100 MN, ALREADY COMP
Slide 12: Debt structure and cost aimed at delivering value on the business plan
12 Debt structure and cost aimed at delivering value on the business plan Key Figures of the financing Back-loaded Amortization Profile €589.4 Mn € Mn €140 Mn Senior Secured Bond €449.4 Mn Bank Debt 33% Net Loan to Value (LTV) 257.8 208.2 140.0 100.7 3.8 5.5 13.4 117.8 Avg. Cost of Debt 2.2% -41 b.p
Slide 13: New financings reducing average cost of debt
13 New financings reducing average cost of debt 2018 FINANCINGS € Mn Fixed Cost 2.3% €50.8 Mn Fixed Cost Total Abadía 1.93% Financing €8.7 Mn CAPEX 1.4 FINANCING 27.5 7.3 DRAW FUNDS Galería Abadía Rivas Futura Q1 2018 Results - Lar España Real Estate
Slide 14: Consistent dividend growth per share
14 Consistent dividend growth per share 4th DIVIDEND IN 4 YEARS 55 €0.49 ps 0.55 €45.0 Mn 5.1% DIVIDEND YIELD 0.45 2017 DIVIDEND ON NAV1 45 €0.33 ps €45.0 Mn 0.35 Dividend approved by the AGM 35 +50% and to be paid on VS 2016 €0.20 ps €30.0 Mn 0.25 18th MAY 25 0.15 15 €0.033 ps 0.05 Member since 5th
Slide 15: Sound retail letting activity keep pushing KPI's above market
15 Sound retail letting activity keep pushing KPI’s above market Lar España is outperforming the market Letting activity at the core of the strategy Sales Q1 2018 Visits Q1 2018 +9.3% €147.3 Mn 13.6 Mn RENTAL GROWTH Lar España Lar España Footfall 5% Retail Sales ANNUALIZED +3.9% +1.7% ROTATION RATE
Slide 16: Retail operating trends keep up throughout the year
16 Retail operating trends keep up throughout the year All figures refer to Q1 2018 period Vs Q1 2017 Active Asset & Tenant €18.3 Mn €0.4 Mn Management LfL Occupancy LfL NOI GRI LfL Mall Income Incentives to + Rate Growth Growth Growth Growth Tenants Smart Capex in Operating +1.9 p.p. +5.0% +2.4% +2
Slide 17: Corporate Activity towards Growth & Value Creation
03 Corporate Activity towards Growth & Value Creation Q1 2018 Results - Lar España Real Estate Lagasca 99 Residential Development, Madrid
Slide 18: Asset rotation strategy of non-core assets through core assets
18 Asset rotation strategy of non-core assets through core assets 2018 ACQUISITIONS 2018 DIVESTMENTS €75.6 Mn €112.5 Mn RIVAS FUTURA RETAIL PARK EGEO OFFICE BUILDING NET INITIAL SALE PRICE YIELD LOCATION GLA +22.2% LOCATION GLA c.6.0% Madrid 18,254 sqm Over acq. price Madrid 36,726 sqm ACQUISITION P
Slide 19: Remaining non-core assets will add value in the coming months
19 Remaining non-core assets will add value in the coming months Offices Logistics VALUATION1 VALUATION2 €94 Mn €87 Mn +17 p.p. occupancy 5.3 100% 1.7 increase WAULT Occupancy maintained in all WAULT in Marcelo Spínola our logistics assets ELOY GONZALO REFURBISHMENT Advanced Currently in the June 20
Slide 20: VidaNova Parc will be a reality in less than 2 months
20 VidaNova Parc will be a reality in less than 2 months OPENING SOON 59 VIDANOVA PARC, SAGUNTO (VALENCIA) URBANIZATION TOTAL RP WORKS WORKS Urban retail and leisure park located in an important tourist area, Sagunto (Valencia) 91% 55% ACQUISITION PRICE €14 Mn DAYS MARKET VALUE (MAR 18) €29.8 Mn EST
Slide 21: VidaNova Parc will be a reality in less than 2 months
21 VidaNova Parc will be a reality in less than 2 months ALL TENANTS SIGNED Q1 2018 Results - Lar España Real Estate
Slide 22: Additional sources of value creation
22 Additional sources of value creation PALMAS ALTAS, SEVILLE c.63% 8 Inditex SPRING ’19 c.59% Brands signed Exp. Start of Excellent location, 4 km from Seville’s city centre GLA signed & committed Operations ACQUISITION PRICE €40.5 Mn MARKET VALUE (MAR 18) €82.4 Mn ESTIMATED OPENING H1 2019 RETAIL
Slide 23: Closing Remarks
04 Closing Remarks Q1 2018 Results - Lar España Real Estate Gran Vía de Vigo Shopping Centre
Slide 24: Closing Remarks
24 Closing Remarks +45% of Profit for the period growth vs Q1 2017 shows the impressive performance of our portfolio Rental Income growth of 9% vs. Q1 2017, up to €19.6 Mn Active Management and supportive market environment produce outstanding improvement of Retail KPI’s: 13.6 Mn visits & €147.3 Mn
Slide 25: 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 26: Q1 2018 Results Presentation
Q1 2018 Results Presentation Follow us: www.larespana.com Lar España Real Estate SOCIMI info@larespana.com Lar España App Q1 2018 Results - Lar España Real Estate
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