Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — FY2018 Earnings Presentation
30 slides from Helios Re Socimi's earnings presentation, Feb 27, 2019
Slide 1: FY 2018 Results
FY 2018 Results 27th February 2019
Slide 2: Agenda
AGENDA 01 02 03 04 FY 2018 FY 2018 Business Closing Highlights Financial Performance Remarks Results
Slide 3: FY 2018 Highlights
01 FY 2018 Highlights 3
Slide 4: Lar España improves its solid operative results in FY 2018
Lar España improves its solid operative results in FY 2018 +7.0% 40.0% 12 quarters revaluation since in Net Profit1 acquisition €11.14 NAV p.s. outperforming the OPERATING RESULTS +42.4% 12.1% +8.5% vs FY 2017 Spanish market in Property Operating Result1 in sales & footfall revaluation LfL 2018/17 V
Slide 5: Supported by strong financials in FY 2018
Supported by strong financials in FY 2018 Net LTV Lagoh Rivas Futura & Abadía EIB 28% Financing Financing New Credit Line December 2018 2018 FINANCINGS c. €100 Mn €36.2 Mn €70 Mn Average AND DEBT development facility Mortgage Loan October 2018 Cost of debt 2.16% €75 Mn1 dividend BREEAM® (€25 Mn1 Spe
Slide 6: Major corporate milestones in 2018
Major corporate milestones in 2018 FEB APR JUN AUG OCT DEC Rivas Futura Dividend +34% Galaria Investor Day +40% Acquisition Payment Asset Revaluation Retail Park Asset Revaluation since Acq. Abadía Commercial since Acq. Divestment EIB Joan Miró AGM Financing Gallery Divestment Acquisition Share Buy-
Slide 7: Successful Business Plan execution
Successful Business Plan execution 2018-2021 Business Plan 55.4% Execution Avg. revaluation since acq. DIVESTMENTS Arturo Soria Egeo Villaverde & Alisal Logistics Portfolio Galaria Joan Miró Marcelo Spínola 5.4% Office Building Office Building Retail Parks & Cheste Retail Park Office Building Office
Slide 8: Lagoh to become an additional source of value creation
Lagoh to become an additional source of value creation 211 19 30 00 days hours minutes seconds In process Yelmo Cines 4,283 sqm delivered c.90%1 c.15 Mn c.200 €132.0 Mn GLA signed and committed Exp. Annual Rent2 Tenants Valuation3 1.5 Mn inhabitants 14 Mn/year €151.6 Mn Estimated Great catchment are
Slide 9: Lagasca99 is already a reality
Lagasca99 is already a reality c.75% of the housing units already delivered New residential concept in the centre of Madrid c.75% already delivered as of February 2019 Plot with 4 façades that features €25 Mn special dividend Avg. Price 44 apartments 2 commercial to be paid during the first months o
Slide 10: Eloy Gonzalo, last office building in our portfolio
Eloy Gonzalo, last office building in our portfolio +41.5% revaluation in 2018 Refurbishment Remaining office building in the portfolio. completed and building in Expected to be sold fully operative in the coming months Universal “Very Accessibility good” 100% Physical Occupancy WEWORK 70% GLA lease
Slide 11: FY 2018 Financial Results
02 FY 2018 Financial Results 11
Slide 12: Successful & strong financial key figures delivered in FY 18
Successful & strong financial key figures delivered in FY 2018 18 2 622,643 Assets Acquired in 2018 GLA sqm €1,536 Mn +12.1% LfL €77.8 Mn +0.3% €1,037 Mn 13.4% GAV vs FY 2017 GRI vs FY 2017 EPRA NAV ROE €621.7 Mn 2.16% €80.9 Mn +42.2% €11.14 8.0% Financial Debt Cost of Debt EBITDA1 vs FY 2017 EPRA N
Slide 13: Solid retail performance driven by robust operating results in FY 2018
Solid retail performance driven by robust operating results in FY 2018 Retail Rest of the portfolio Retail Rest of the portfolio GAV 90% 10% Rental Income 94% 6% Retail yields Operating results Commercial activity Potential 6.3% +3.2% growth LfL GRI €8.3 Mn 38,723 sqm Negotiated rent Rotated area 5.
Slide 14: FY 2018 Asset Appraisal
FY 2018 Asset Appraisal 40% asset revaluation since acquisition Total Portfolio LfL Revaluation Total Retail LfL Revaluation 31/12/2018 Valuation 31/12/2018 Valuation €1,536 Mn €1,376 Mn 40.0% 36.9% 12.1% 11.7% LfL FY 2018/17 Since Acquisition LfL FY 2018/17 Since Acquisition Including capex investe
Slide 15: Strong valuation performance throughout the years
Strong valuation performance throughout the years € Mn Portfolio Value 1,538 76 273 195 1,536 1,275 899 406 2014 2015 2016 2017 Acquisitions Divestments Revaluation Dec 2018 1 2 2018 2018 2018 1. Parque Abadía commercial gallery and Rivas Futura retail park. 2. Egeo and Joan Miró office buildings, l
Slide 16: Consolidated Income Statement (€ Millions)
Consolidated Income Statement (€ Millions) P&L Chg% RECURRING NON-RECURRING FY 2018/17 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Rental Income 77.8 77.6 77.8 77.6 - - Other Income 3.7 2.2 3.7 2.2 - - Property Operating Expenses (12.6) (11.3) (12.6) (11.3) - - Base Fee (8.7) (9.0) (8.7) (9.0) -
Slide 17: Solid financial pillars
Solid financial pillars Debt Structure and Amortization Profile As at 31.12.2018 €140 Mn €481.7 Mn Gross Net Senior Bank financial debt financial debt € Mn Secured Bond Debt €621.7 Mn €431.5 Mn 257.8 260.0 Average debt Average maturity cost of debt 140.0 5.6y 2.16% 85.4 117.8 Fixed rate Net LTV 13.5
Slide 18: Dividend
Dividend €0.80 ps2 €75.0 Mn €25.0 Mn2 €75.0 Mn2 LAGASCA99 +122% 2018 Dividend2 €25 Mn2 Special dividend Special CAGR1 €0.49 ps +67% VS 2017 €0.33 ps 7.5% 10.7% €45.0 Mn Dividend Yield Dividend Yield €0.20 ps on NAV3 on Market Cap4 Ordinary €50 Mn2 €30.0 Mn €0.033 ps 13.24% Return to €12.0 Mn Appoint
Slide 19: Share Buy-Back programme & Amortisation of shares
Share Buy-Back programme & Amortisation of shares Another way to create value for our shareholders As a result of the Share Buy-Back As a result of the Share Buy-Back Programme, Programme, we amortized the total number of 1.5 Mn 1,544,490 shares of Lar shares bought 3.0 Mn Shares España’s share capi
Slide 20: Business Performance
03 Business Performance f RETAIL 20
Slide 21: Footfall above Spanish market despite shopping centres under refurbishment
Footfall above Spanish market despite 5 shopping centres under refurbishment Footfall FY 2018 63,000,000 visits Vs FY 2017 c.300,000 +0.8% sqm GLA 87 min +6% affected by refurbishments AVG. STAY vs FY 2017 during the year 0.0%1 “Customer Journey” project implemented in all shopping centres 1. Shoppe
Slide 22: Sales also beating the Spanish market driven by strong letting activity
Sales also beating the Spanish market driven by a strong letting activity in our shopping centres Sales1 FY 2018 Letting activity at the core of the strategy €708.4 Mn Vs FY 2017 +12.4% RENTAL GROWTH3 +2.2% 38,723 sqm ROTATED 8% ROTATION RATE 154 €8.3 Mn 0.0% 2 OPERATIONS IN FY 2018 NEGOTIATED RENT
Slide 23: Capex: A tool to create value
Capex: A tool to create value Every investment is decided based on ROI, to generate revenues Accumulated Capex till Dec 31st, 2018 Refurbishment pipeline Est. Capex % Execution 19% Albacenter €3.0 Mn 100% executed Extension/ renovation Capex Eloy Gonzalo €4.0 Mn 100% executed Megapark €6.5 Mn Phase
Slide 24: Obtaining excellent results from our full refurbishment projects
Obtaining excellent results from our full refurbishment projects Albacenter Shopping Centre As Termas Shopping Centre €3.0 Mn €2.1 Mn CAPEX Image redesign and entrance improvement CAPEX Image redesign and new dining area invested invested Pre- Post- Pre- Post- Growth Growth refurbishment refurbishme
Slide 25: Retail operating trends keep up throughout the year
Retail operating trends keep up throughout the year All figures refer to FY 2018 period Vs FY 2017 Active Asset & Tenant Management LfL GRI LfL NOI LfL incentives reduction + Growth Growth to tenants Smart Capex in Operating Assets +3.2% +3.7% 13.9% Sales Visits Operations € Mn Mn # 708.4 63.0 154 €
Slide 26: Retail Portfolio's potential
Retail Portfolio’s potential +5.5% +c.8% >6% +57% Retail Expected Expected Estimated Rental Topped-Up NIY NIY NIY Increase Potential Future Investments Ongoing Development Existing Income Generating Assets 15 110 15 6 4 95 80 70 Annualised Topped Up Reversionary Potential – Reversionary Potential –
Slide 27: Closing Remarks
04 Closing Remarks
Slide 28: Strong set of valuations, solid operating performance & excellent financial results
+7.0% Net Profit1 in FY 2018 vs FY 2017 Strong set of +42.4% Property Operating Result1 in FY 2018 vs FY 2017 OPERATING RESULTS +12.1% LfL revaluation in the year valuations, solid operating performance & VidaNova Parc fully opened and operative with 100% GLA signed Lagoh reached c.90%2 of GLA lease
Slide 29: 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 30: Follow us
Follow us www.larespana.com info@laespana.com Lar España Real Estate SOCIMI Lar España App
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