Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — FY2017 Earnings Presentation
31 slides from Helios Re Socimi's earnings presentation, Feb 26, 2018
Slide 1: FY 2017 Results
FY 2017 www.larespana.com Results Feb 2018 February 26th, 2018 FY de Portal 2017 Results la Marina - Lar España Shopping Real Estate Centre, Alicante
Slide 2: 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 3: Agenda
Agenda 01 02 03 04 05 FY 2017 FY 2017 Corporate Corporate Closing Highlights Financial Activity Governance Remarks Results & towards for the Future Business Growth and Performance Value Creation FY 2017 Results - Lar España Real Estate
Slide 4: Successful & strong key facts delivered in FY 2017
4 Successful & strong key facts delivered in FY 2017 +21% vs €1,538 Mn GAV 1 FY 2016 +24% vs EPRA NAV €145.6 Mn EBT FY 2016 €10.27 €951.5 Mn EPRA NAV pre-performance fee per share Rental +29% vs 5.6% EPRA 5.5% EPRA €77.6 Mn Income FY 2016 “topped-up” NIY Net Initial Yield €32.5 Mn 2017 +13% over Las
Slide 5: Major corporate milestones from 2017
5 Major corporate milestones from 2017 JAN MAR MAY JUL SEP DEC FEB +15.8% Abadía Retail Park Dividend +19.5% Vidanova Parc Analyst Day Rivas Futura Asset Revaluation Acquisition Payment Asset Revaluation Credit for Construction Acquisition since Acq. 22 Retail Units since Acq. Arturo Soria Office Bu
Slide 6: FY 2017 Highlights
01 FY 2017 Highlights FY 2017 Results - Lar España Real Estate Palmas Altas Retail Development, Seville
Slide 7: Solid business performance & successful start of asset rotation process
7 Solid business performance & successful start of asset rotation process €77.6 Mn Revenues +29% vs FY 2016 €36.6 Mn Adjusted EPRA Earnings +41% vs FY 2016 01 Solid FY 2017 Results and Balance Sheet €951.5 Mn EPRA NAV €10.27 p.s. +12% 35% Net LTV; €590.2 Mn Gross Debt 2.2% cost of debt Retail NOI Lf
Slide 8: Portfolio at a glance
8 Portfolio at a glance GAV (€Bn) GLA 899,195 EPRA Annualized Net Rent (€Mn) Residential +27% increase vs FY 2016 Logistics 5% 8% Logistics Offices 7% 5% Offices 10% Retail Dev €1.541 €73.62 Retail 6% 87% Retail 72% EPRA Topped-up NIY Occupancy Rate 6,8% 95.1%3 95,0% 91,1%3 100,0% 5,7% 5.6%3 TOTAL T
Slide 9: FY 2017 Financial Results & Business Performance
02 FY 2017 Financial Results & Business Performance FY 2017 Results - Lar España Real Estate Anecblau Shopping Centre, Barcelona
Slide 10: Strong valuation performance in all asset classes
10 Strong valuation performance in all asset classes Total Portfolio Portfolio Value evolution LfL 2017/16 Since Acquisition € Mn Portfolio Value 28.5% 21.7% 61.5% 11.1% ASSET MANAGEMENT IMPACT Valuation 1.538 1.536 12.5% Growth CAGR1 9.3% 38.5% 1.275 YIELD COMPRESION IMPACT Capex Adj. Total Capex A
Slide 11: Consolidated Income Statement (€ Millions)
11 Consolidated Income Statement (€ Millions) Chg (%) FY 2017 FY 2016 FY17/FY16 Recurring Non-Recurring Total2 Recurring Non-Recurring Total2 Rental Income 77.6 - 77.6 60.2 - 60.2 Other Income 2.2 - 2.2 1.8 - 1.8 Property Operating Expenses (11.3) - (11.3) (10.0) - (10.0) Base Fee (9.0) - (9.0) (6.4
Slide 12: Performance fee invested in Lar España shares @ NAV ps
12 Performance fee invested in Lar España shares @ NAV ps Shareholders Return Rate Calculation Remuneration on Shareholders return rate 19.4% SRR1 30 €10.0 Mn ACCRUED IN 2017 Performance Fee 131 830 WILL BE ACCRUED WHEN €17.9 Mn THE SALE OF ASSETS, FOR A Divestment Fee MINIMUM OF €100 MN, TAKES PLAC
Slide 13: New financings allows for releasing of resources to fund new and existing projects
13 New financings allows for releasing of resources to fund new and existing projects 2017 FINANCINGS 2018 FINANCINGS €139 Mn of operating assets financing @ Avg. fixed rate < 2% and €63 Mn of development credit 2 @ Euribor 3M + 2.34% Total Megapark € Mn € Mn Financing €105 Mn Euribor 3M+ 2.10% €202
Slide 14: Debt structure and cost aimed at delivering value on the business plan
14 Debt structure and cost aimed at delivering value on the business plan Key Figures of the financing Back-loaded Amortization Profile €590.2 Mn € Mn €140 Mn Senior Secured Bond €450.2 Mn Bank Debt 35% Net Loan to Value (LTV) 256.0 140.0 203,9 77,9 11,6 5,2 35,6 116,0 Avg. Cost of Debt 2.2% -41 b.p
Slide 15: Consistent dividend growth per share
15 Consistent dividend growth per share 5.1% 55 0,55 €0.49 ps1 €45.0 Mn 2017 0,45 Dividend1 Dividend Yield 45 on NAV2 €45.0 Mn1 €0.33 ps 0,35 35 +50% 4th VS 2016 LAGASCA 99 €30.0 Mn 0,25 Extraordinary €0.20 ps Dividend in dividend 25 announced 4 years 0,15 15 €0.033 ps 0,05 €12.0 Mn 5 -0,05 Member s
Slide 16: Sound retail letting activity keep pushing KPIs above market
16 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 2017 Visits 2017 +13% €636.2 Mn 56.9 Mn RENTAL GROWTH Lar España 10% Retail Sales 2017 ROTATION +3.3% RATE Lar España Footfall3 +2.7% +36% 12,845
Slide 17: Retail operating trends keep up throughout the year
17 Retail operating trends keep up throughout the year All figures refer to FY 2017 period Vs FY 2016 Active Asset & Tenant €67.4 Mn €1.8 Mn Management LfL Occupancy LfL NOI GRI LfL Mall Income Incentives to + Rate Growth Growth Growth Growth Tenants Smart Capex in Operating +3.1 p.p. +4.7% +3.4% +2
Slide 18: Adding value to office assets & enhancing stability of logistics
18 Adding value to office assets & enhancing stability of logistics Offices Logistics VALUATION1 VALUATION1 +29.8% +35.9% Over acq. Price Over acq. Price (Capex Adjusted) (Capex Adjusted) New leasings signed Refurbishments 100% +26% in Marcelo Spínola at (Eloy Gonzalo & Joan Miró) Occupancy maintain
Slide 19: Corporate Activity towards Growth & Value Creation
03 Corporate Activity towards Growth & Value Creation FY 2017 Results - Lar España Real Estate Lagasca 99 Residential Development, Madrid
Slide 20: Lar España's recent retail acquisitions
20 Lar España´s recent retail acquisitions 2017 2017 ACQUISITIONS 2018 ACQUISITIONS €119.4 Mn €75.6 Mn ABADÍA RETAIL PARK 22 RETAIL UNITS MAR Acquisition Price Acquisition Price €63.1 Mn €47.6 Mn Bilbao Market Value Market Value Megapark Leisure Area €65.0 Mn €52.5 Mn Cantabria 2 Retail Units Basque
Slide 21: Asset Rotation kicks off with the sale of two office assets
21 Asset Rotation kicks off with the sale of two office assets Lar España starts the divestment process of its office portfolio as part of its asset rotation strategy of non-core assets through core assets ARTURO SORIA OFFICE BUILDING DIVESTMENT SALE PRICE +34.5% LOCATION GLA Over acq. price Madrid
Slide 22: Both Retail Developments construction works on schedule
22 Both Retail Developments construction works on schedule VIDANOVA PARC, SAGUNTO (VALENCIA) Q3 2018 Exp. Start of URBANIZATION TOTAL RP GLA signed & committed WORKS WORKS Urban retail and leisure park located in an important Operations tourist area, Sagunto (Valencia) 88% 95% +79.0% +41.5% ACQUISIT
Slide 23: Additional sources of value creation
23 Additional sources of value creation CAPEX INVESTMENT TO GENERATE MORE VALUE Retail Logistics 8 BREEAM® In-Use “Very Good” Certificated €11.4 Mn €0.3 Mn EL ROSAL MEGAPARK VISTAHERMOSA AS TERMAS GRAN VÍA DE VIGO ALBACENTER ANECBLAU PORTAL DE LA MARINA Offices €4.5 Mn 2 BREEAM® New-Build “Very Good
Slide 24: Innovation Strategy
24 Innovation Strategy Disruptive projects differentiating among our competitors To position Lar España To create shared value to lead economic and social as the leader in digital transformation progress, and also generate financial returns for our in the retail sector shareholders To change relatio
Slide 25: Corporate Governance for the Future
04 Corporate Governance for the Future FY 2017 Results - Lar España Real Estate Albacenter Shopping Centre, Albacete
Slide 26: Highlights of the new Investment Management Agreement
26 Highlights of the new Investment Management Agreement 1 Alignment with current Business Plan 7 2 Unanimously approved by the seven REINFORCING PRESENCE Enhanced Corporate Provides continuity and members of the Board OF INDEPENDENT Governance certainty DIRECTORS IN THE BOARD (5 independents + 2 pr
Slide 27: Strategy in line with December Analyst Day guidance
27 Strategy in line with December Analyst Day guidance Target Returns ▪ 12% Target Annual Return on investments ▪ €380m of divestments over the next 24 months From Office, residential and non-core retail assets Divestments ▪ >€90 Mn of divestments From all logistics assets ▪ Finance all existing cap
Slide 28: Closing Remarks
05 Closing Remarks FY 2017 Results - Lar España Real Estate Txingudi Shopping Centre, Guipuzcoa
Slide 29: Closing Remarks
29 Closing Remarks Corporate focus on realizing value on office assets through asset rotation confirmed with the sale of Arturo Soria & Egeo €121.6 Mn in 4 Acquisitions in 2017 and already 2 assets for €75.6Mn in 2018 New IMA brought forward to sooner benefit shareholders and the delivery of the Bus
Slide 30: Lar España APP
30 Lar España APP Get full information of the company on Lar España App for iPhone, iPad and Android devices FY 2017 Results - Lar España Real Estate
Slide 31: FY 2017 Results - Lar España Real Estate
FY 2017 Results - Lar España Real Estate
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