Helios Re Socimi, S.a. · BME:SCHLR

Helios Re Socimi — Lar España Real Estate SOCIMI — Q1 2017 Earnings Presentation

23 slides from Helios Re Socimi's earnings presentation, May 12, 2017

  1. Slide 1: Q1 2017 Results

    Q1 2017 www.larespana.com Results May 2017 12th May, 2017 Q1 2017 Results - Lar España Real Estate Gran Vía de Vigo Shopping Centre

  2. 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

  3. Slide 3: Agenda

    Agenda 01 02 03 Q1 2017 Q1 2017 Closing Highlights Financial Remarks Results & Business Performance Q1 2017 Results - Lar España Real Estate

  4. Slide 4: Q1 2017 Highlights

    1 Q1 2017 Highlights Q1 2017 Results - Lar España Real Estate As Termas Shopping Centre, Lugo

  5. Slide 5: Successful & Strong Key Facts delivered in Q1 2017

    5 Successful & Strong Key Facts delivered in Q1 2017 +47% vs €1.4 Bn GAV 1 Q1 2016 +20.3% vs EPRA NAV EPRA NAV €10.5Mn EBT (Net Profit) Q1 2016 €9.27 €838.1 per share (€ ‘000s) 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 Divi

  6. Slide 6: Solid Company performance in Q1 2017

    6 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 Gross Debt) 2.2% cost of debt

  7. Slide 7: Q1 Financial Results

    2 Q1 Financial Results Q1 2017 Results - Lar España Real Estate Megapark, Bilbao

  8. Slide 8: Consolidated Income Statement (€ Millions)

    8 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) - (2.3) (1.5)

  9. Slide 9: Creating value through wise debt management

    9 Creating value through wise debt management Portfolio and Debt evolution since IPO € Mn Q1 2017  New debt of €104 Mn raised 1600 Leverage to up to 54.6% LTV for Gran Vía & Vistahermosa GAV1: €1.4 Bn 1400  In April 2017, refinancing of €20Mn in Lagasca99 Operating Assets Development Revaluation 1

  10. Slide 10: Lar España's Debt Profile

    10 Lar España’s Debt Profile Long Term debt maturity and competitive cost of debt Key Figures of the financing 1 2.70% 2.6% Cost of debt Average maturity 7.5 140 2.60% 6.9 7.0 2.5% 2.50% €531Mn 38% 2.2% 81% 2.40% 6.1 6.5 6.6 2.30% 5.8 5.9 6.0 Net Debt Net Loan to Average Cost 2.20% 2.3% Hedge/ Fixed

  11. Slide 11: Portfolio at a glance

    11 Portfolio at a glance GAV (€Bn) EPRA Annualized Net Rent (€Mn) Logistics Residential 5% Logistics 8% 6% Offices Offices 6% 12% Retail Dev 4% €1.41 €72.12 Retail 86% Retail 73% EPRA Topped-up NIY Occupancy Rate 7.3% 6.1% 100.0% 5.9%3 TOTAL 94.2% 93.8%3 TOTAL LAR ESPAÑA 85.5% 2 LAR ESPAÑA EPRA Topp

  12. Slide 12: Operating assets backed by development projects

    12 Retail Operating assets backed by development projects Rent Generating Assets 2 Ongoing Developments Capex by asset Offices 5% Retail 21% €6.5 Mn Development 74% +12% 22 €18 Mn 60% GLA signed Rents growth from Operations in Q1 2017 Expected annual rental 20% under negotiation renewals/ relocation

  13. Slide 13: Retail: leasing activity and rent increase

    13 12% LfL Retail Rent increase per sqm in leasing activity: FY 2016 & New shops Anchors ATTRACT NEW AND INNOVATIVE TENANTS CREATE A WELL-BALANCED TENANT MIX 4 Reletting 10 New Lettings 7 Renewals 1 Relocations Top 5 rent generating core dominant Sqm GLA rotated per year / 19% since shopping center

  14. Slide 14: New Acquisition: Parque Abadía

    14 Retail New Acquisition: Parque Abadía Prime retail park in Toledo with a 100% occupancy and Net Initial Yield of 6.0% With this acquisition Lar España becomes #1 player in retail parks in Spain Excellent Tenant Line-up €63.1 Mn 54,100 sqm (inc. gallery) Acquisition Price GLA 100% 37,114 sqm (69%)

  15. Slide 15: New Acquisition: 22 Retail Units

    15 Retail New Acquisition: 22 Retail Units 100% occupied by Eroski supermarkets, in the north of Spain and Balearic Islands Cantabria Basque Country <5% Effort Rate 11% total sales 53% total sales 4.2% Effort rate in more than 80% supermarkets 5.2% Effort rate 2 10 2 Selling > 3,000 €/sqm 1 Navarre

  16. Slide 16: Non-retail assets - Offices

    16 Non-retail assets - Offices Stabilised Assets Non-Stabilised assets Joan Miró 4.7% EPRA Topped Up Yield Eloy Gonzalo 43% GLA under refurbishment to generate >rents per sqm Arturo Soria 5.5% EPRA Topped Up Yield Marcelo Spínola Under commercialization – initial offers received Egeo Rent will incre

  17. Slide 17: Non-retail assets - Logistics

    17 Non-retail assets - Logistics 161,841 100% Logistics GLA Occupancy €1.4 Mn €5.9 Mn +7% GRI Q1 2017 Annualized GRI YoY 9.23% Initial yield on Cost 7.3% EPRA Topped-up Net Initial Yield Q1 2017 Results - Lar España Real Estate

  18. Slide 18: New Acquisition: Logistic plot of land in Cheste

    18 Logistics New Acquisition: Logistic plot of land in Cheste Prime and strategic location along the main logistics axis of 118,160 Sqm Valencia, a key location for international trade within the GLA Mediterranean Corridor €85 per Sqm Excellent opportunity in an attractive logistic market Land Cost

  19. Slide 19: Non-retail assets – Lagasca 99

    19 Non-retail assets – Lagasca 99 Q2 2018 Estimated delivery date Construction works on schedule 100% structure completed In process (8 floors, 10 levels) Financing of 100% High interest from national and international investors of construction Price c.11,000 €/sqm costs agreed 49% 58% 44% 30% FY 20

  20. Slide 20: Two New Directors and Dividend: €30 Mn

    20 AGM Two New Dividend: €30 Mn1 Directors €0.332 ps1 – May 31st, 2017 40 0.4 PIMCO’s representative €0.332 ps1 Head of the European Commercial Real Estate team 30 0.3 €30.0 Mn1 20 €0.201 ps 0.2 + 10 €0.033 ps €12.0 Mn 0.1 Independent Director 0 €1.3 Mn 0 Currently in selection process 2014 2015 201

  21. Slide 21: Closing Remarks

    3 Closing Remarks Q1 2017 Lagasca 99Results - Lar España Residential Real Estate Development, Madrid

  22. Slide 22: Closing Remarks

    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 €72.1 Mn €103.9 Mn of

  23. Slide 23: Q1 2017 Results - Lar España Real Estate

    Q1 2017 Results - Lar España Real Estate

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