Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — Investor Presentation (June 2017)
23 slides from Helios Re Socimi's investor presentation, June 2017
Slide 1: Corporate Presentation
Corporate www.larespana.com Presentation June 2017
Slide 2: Snapshot
2 Snapshot Shareholder Structure First IPO of a Spanish REIT listed on the Spanish Stock Exchange PIMCO; 20.0% Focused on creating both sustainable income and strong capital returns for shareholders Brandes Investment Lar España is managed by Grupo Lar, private Real Estate Asset Partners; 5.0%
Slide 3: Governance Structure
3 Governance Structure Independent and experienced Board: Critical Activities internalized 5 independent directors (5 out of 7) José Luis del Valle Roger Cooke Pedro Luis Uriarte Sergio Criado Jon Armentia Susana Guerrero Chairman and Independent Independent CFO Corporate Legal Independent Director
Slide 4: Retail platform + non-retail assets
4 Retail platform + non-retail assets MALL Offices Logistics Residential Retail Offices in consolidated Focus on logistic Development of first homes locations of Madrid and properties on a selective in niche markets without Top retail player Barcelona with good basis with low rents, low zoning risk,
Slide 5: Lar España Strategy
5 Lar España Strategy Special focus on under managed First IPO of a Spanish REIT assets listed on the Spanish Stock Exchanges Real Estate Manager with objective of MANAGEMENT implementing an Active Management Strategy in order to deliver “Alpha” >100 Real Estate Company’s business strategy is to acq
Slide 6: Retail Assets
6 Retail Assets Focus on shopping centres and retail parks Key assets in their catchment areas Locations Locations selected based on: Prime assets in their area of influence Level of competition Close to 500,000 sqm GLA Current GDP per capita and future growth outlook Impact of tourism as
Slide 7: Non-Retail Assets
7 Non-Retail Assets Other assets Core locations Focus on value added assets Luxury residential for sale Management as a key element to make acquisitions and Offices in Madrid and Barcelona generate differential value, taking advantage of Grupo Lar’s Logistics in main markets as a good compleme
Slide 8: Main Figures
8 Main Figures GAV (€Bn) EPRA Annualized Net Rent (€Mn) Logistics Logistics Residential 5% 8% 6% Offices Offices 6% 12% €1.41 €72.12 Retail 86% Retail 77% EPRA Topped-up NIY Occupancy Rate 7.3% 6.1% 100.0% 5.9%3 TOTAL 94.2% 85.5% 2 93.8%3 LAR TOTAL 4.2%2 ESPAÑA LAR EPRA ESPAÑA Topped-up OCC. RATE NI
Slide 9: Valuation
9 Valuation Valuation Bridge Since Acquisition Portfolio Value evolution and LfL Change € Mn € Mn Portfolio Value LfL Value Change 12.30% 125 1,400 127 1,275 6.10% 259 46 843 2014 2015 2016 Value Change by Asset Class Since Acquisition LfL 2016 vs 2015 Total 15.8% 12.3% Retail 13.5% Acquisition & Ac
Slide 10: Significant potential upside in rents from reversion potential and developments project
10 Significant potential upside in rents from reversion potential and developments project – For illustrative purposes – Estimated Future Investments c.110 Existing Developments 14 96 Existing Income Generating Assets c.13 4 2 78 New 4 acquisitions 9 made in 2017 not 63 considered Annualised Reversi
Slide 11: The value of a retail platform
11 The value of a retail platform 501,505 sqm, 850 shops, c.53 Mn visitors, 16 cities Top 10 players own 159 shopping centres which represent c.25% of the total Spanish market Retail Leaders in Spain #1 Controlling Stake Total Assets GLA per Asset #2 Investment Volumes Owned GLA Estimate No. Assets
Slide 12: Operating assets backed by development projects
12 Operating assets backed by development projects Rent Generating Assets 2 Ongoing Developments Capex by asset Offices 5% €6.5 Mn Retail 21% Development 74% +12% 22 €18 Mn 60% GLA signed Rents growth from Operations in Q1 2017 Expected annual rental 20% under negotiation renewals/ relocations incom
Slide 13: Lar España Digital Transformation
13 Lar España Digital Transformation Market trends forecasted that individuals will shop increasingly by a combination of online and offline, versus a significant reduction of only online or only offline shopping Customers Retailers Lar España New buying channel Better Customer Service and bette
Slide 14: New sources of value: Residential
14 New sources of value: Residential Q2 2018 Estimated delivery date Construction works on schedule 100% structure completed In process (8 floors, 10 levels) High interest from national and international investors Financing of 100% of Price c.11,000 €/sqm construction costs agreed 58% 44% 49% 30% FY
Slide 15: Financial Results – Q1 2017
Financial Results – Q1 2017 Lagasca 99 Residential Development, Madrid
Slide 16: Successful & Strong Key Facts delivered in Q1 2017
16 Successful & Strong Key Facts delivered in Q1 2017 +47% vs €1.4 Bn GAV 1 Q1 2016 +20.3% vs EPRA NAV €10.5Mn EBT (Net Profit) Q1 2016 €9.27 EPRA NAV €838. per share (€ ‘000s) 1 Rental +39% vs EPRA EPRA €18.0Mn Income Q1 2016 5.9% “topped-up” NIY 5.7% Net Initial Yield €0.33 dividend2 EPRA €30Mn Di
Slide 17: Q1 2017 P&L Consolidated Income Statement
17 Q1 2017 P&L Consolidated Income Statement (€ Millions) Recurrent Q1 2017 Q1 2016 1Q17/1Q16 Recurring Non-Recurring Total Recurring Non-Recurring1 Total Rental Income 18.0 - 18.0 13.0 - 13,0 Other income 0.6 - 0.6 0,3 7,0 7,3 Property Operating Expenses (4.1) - (4.1) (2.7) - (2.7) Base Fee (2.3) -
Slide 18: Solid Company performance in Q1 2017
18 Solid Company performance in Q1 2017 €18.0 Mn Revenues +39% vs Q1 2016 €10.5 Mn EBT (Net Profit) +20% vs Q1 2016 €8.8 Mn EPRA Earnings +50% vs Q1 2016 01 Solid Q1 2017 Results and Balance Sheet €838.1 Mn EPRA NAV +44% vs Q1 2016 38% net LTV; €531 Mn Net Debt (€556 Mn 2.2% cost of debt Gross Debt)
Slide 19: Lar España's Debt Profile
19 Lar España’s Debt Profile Long Term debt maturity and competitive cost of debt Key Figures of the financing 1 2.80% Cost of debt Average maturity8.0 140 2.6% 2.60% 6.9 2.5% 7.0 €531Mn 38% 2.2% 81% 2.40% 6.1 5.8 6.6 5.9 6.0 2.20% Net Loan to Average Hedge/ 2.3% 2.2% Net Debt Value (LTV2) Cost of F
Slide 20: Creating value through wise debt management
20 Creating value through wise debt management Portfolio and Debt evolution since IPO € Mn Q1 2017 New debt of €104 Mn raised 1600 GAV1: €1.4 Bn Leverage to up to 54.6% LTV for Gran Vía & Vistahermosa 1400 In April 2017, refinancing of €20Mn in Lagasca99 Operating Assets & Financing of 100% of c
Slide 21: Two New Directors and Dividend: €30 Mn
21 AGM Two New Dividend: €30 Mn Directors €0.332 ps – May 31st, 2017 40 €0,332 ps 0.4 PIMCO’s representative 30 €30.0 Mn 0.3 Head of the European Commercial Real Estate team €0,201 ps 20 0.2 + 10 €0,033 ps 0.1 €12.0 Mn €1.3 Mn Independent Director 0 0 2014 2015 2016
Slide 22: Closing Remarks
22 Closing Remarks Positive assets evolution during 1st Quarter of 2017 Active Management is stabilizing assets and starting to see reversionary potential in Retail and Office portfolio Attractive portfolio of €1.4 Bn, out of which €1.23 Bn are rents generating assets that produce c.€72.1 Mn
Slide 23: Contact us
Contact us Corporate www.larespana.com Presentation Lar España Real Estate SOCIMI
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