Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — 9M 2019 Earnings Presentation
30 slides from Helios Re Socimi's earnings presentation, Nov 15, 2019
Slide 1: 9M 2019 Results
9M 2019 Results 15th November 2019
Slide 2: Agenda
AGENDA 01 02 03 04 9M 2019 9M 2019 Business Closing Highlights Financial Performance Remarks Results
Slide 3: 9M 2019 Highlights
01 9M 2019 Highlights RETAIL y,
Slide 4: Strong operational results in 9M 2019
Strong operational results in 9M 2019 +12.8% +131.8% Portfolio revaluation LfL Lagoh revaluation €11.40 +9% +19% since Dec 2018 since Dec 2018 EPRA NAV p.s.1 EBITDA EPRA Earnings p.s. RESULTS vs 9M 2018 vs 9M 2018 +54.6% +45.7% +10%2 Portfolio revaluation LfL Lagoh revaluation vs 31 Dec 2018 since a
Slide 5: Lar España performance: A story of growth
Lar España performance A story of growth Retail Occupancy Rate RETAIL GAV (€ Mn) Retail GAV 98% Total GAV Revaluation since acquisition 96% 1,199 1,376 1,552 96% 95% 95% 94% 962 55% 94% 92% 614 40% 92% 24% 90% 4% 14% Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q3 2019 2015 2016 2017 2018 Sep 2019 Retail EPRA to
Slide 6: Non-core assets divestment plan completed with lagasca99 fully sold
Non-core assets divestment plan completed with the lagasca99 fully sold 5.2% 87.5% Average Avg. Exit revaluation Yield over acq price Arturo Soria Sale Egeo Sale Villaverde & Alisal Logistics Portfolio Galaria Sale Joan Miró Marcelo Spínola Eloy Gonzalo Lagasca99 Office Building Office Building Sale
Slide 7: Lagoh: Successful opening with rental income above estimates
Lagoh: the future is here Successful opening with rental income above estimates EXPERIENCE RENTAL INCOME ABOVE ESTIMATES +15% 17.2 15.0 F&B Expected annual rent Annual topped-up net rent RETAIL 1 Mn visits Full in the first weeks occupancy 7
Slide 8: Lagoh +46% revaluation in the last quarter, up to €306 Mn
Lagoh +46% revaluation in the last quarter, up to €306 Mn 350 €306 Mn1 300 250 +132% +46% Revaluation Revaluation 200 since Dec’18 since Jun’19 150 100 50 0 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 Acquisit
Slide 9: 9M 2019 Financial Results
02 9M 2019 Financial Results 9
Slide 10: Successful & strong financial key figures delivered in 9M 19
Successful & strong financial key figures delivered in 9M 2019 16 €57.8 Mn +1.8% LfL1 Assets GRI vs 9M 2018 €1,562 Mn €37.8 Mn +9% €1,010.6 Mn 12.9% GAV EBITDA vs 9M 2018 EPRA NAV ROE 579,014 €671.4 Mn 2.2% €11.42 7.5% GLA sqm Financial debt Cost of Debt EPRA NAV per share ROA €92 Mn €516.2 Mn 33% 5
Slide 11: Solid retail performance driven by robust operating results in 9M 2019
Solid retail performance driven by robust operating results in 9M 2019 Retail yields Operating results Commercial activity Potential growth 6.2% +1.8% +2.0% LfL GRI1 LfL NOI1 €7.2 Mn 42,060 sqm Negotiated rent Rotated area 5.9% +30.5% (16.6)% Turnover rent1 Lease incentives1 5.6% 99 +11.1% 96.0% Ope
Slide 12: Lar España Asset Appraisal
Lar España Asset Appraisal Developments boost valuations despite the advanced RE cycle Total Portfolio Lagoh Market Value GAV €306 Mn 31.12.17 1,538 54.6% Revaluation 694.8% 273 since acquisition 2018 76 195 150 2019 176 12.8% GAV Revaluation 1,562 since Dec 18 Q3 2019 45.7% 131.8% Revaluation since
Slide 13: Consolidated Income Statement
Consolidated Income Statement (€ Millions) P&L Despite the change in the perimeter, following the 9M 2019 9M 2018 non-core assets divestment plan, P&L 9M 2018 and 9M 2019 results remain at same levels Revenues 57.8 58.6 Other income 1.7 3.1 Asset Typology Divestment Date Personnel expenses (0.3) (0.
Slide 14: Consolidated Income Statement Pro-forma Retail Portfolio
Consolidated Income Statement Pro-forma Retail Portfolio Consolidated Income Statement (€ Millions) (€ Millions) Chg% P&L Retail portfolio P&L 9M 2019/18 9M 2019 9M 2018 9M 2019 9M 2018 Revenues 57.8 58.6 Revenues 57.5 54.2 +6.1% Other income 1.7 3.1 Other income 1.7 3.1 Personnel expenses (0.3) (0.
Slide 15: Solid financial pillars
Solid financial pillars Debt Structure and Amortization Profile As at 30.09.2019 €140 Mn €531.4 Mn Gross Net Senior Bank financial debt financial debt € Mn Secured Bond Debt €671.4 Mn €516.2 Mn 315.2 255.2 140.0 Average debt Average maturity cost of debt 4.3y 2.2% 85.5 115.2 Fixed rate Net LTV 10.5
Slide 16: New share buy-back programme of up to 5%
New share buy-back programme of up to 5% Maximizing additional value for our shareholders The purpose of the Buy-Back Program is the further reduction of Lar España’s share capital through the amortization of shares 1st 2nd Share Buy-Back Programme Share Buy-Back Programme 100% 3,091,141 3.1% 89% €4
Slide 17: Business Performance
03 Business Performance 17
Slide 18: Footfall above Spanish market despite shopping centres under refurbishment
Footfall above Spanish market despite 8 shopping centres under refurbishment Footfall 9M 2019 49.8 Mn visits 86 min Vs 9M 2018 AVG. STAY 331,856 +2.4%1 sqm GLA affected by refurbishments during 9M 2019 (1.2%)2 1. Anec Blau´s data has not been taken into account because the asset is going through a c
Slide 19: 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 Letting activity at the core of the strategy Sales2 9M 2019 €529.2 Mn +11.1% Vs 9M 2018 RENTAL GROWTH1 42,060 sqm 10% +2.2%3 ROTATED ROTATION RATE 99 €7.2 Mn OPERATIONS NEGOTIATED +1.1%4 IN 9M 2019 RENT
Slide 20: 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 Sep 30th, 2019 Refurbishment pipeline Est. Capex % Execution 8% Megapark €7.3 Mn Retail Park + FOC completed Extension/ Leisure area: 10% executed renovation Capex Image & access compl
Slide 21: Value Creation Case 1: Lagoh, a new concept of retail complex
Value Creation Case 1 Lagoh, a new concept of retail complex Experience F&B Retail ✓ Wind tunnel ✓ Gaming ✓ Gourmet market ✓ Optimal commercial mix ✓ Giant wave ✓ Yelmo premium cinemas ✓ Casual dining ✓ Flagship stores ✓ Zipline ✓ Boat ride in the lake ✓ Food-court ✓ Tier-1 retailers ✓ Trampoline pa
Slide 22: Value Creation Case 2: As Termas refurbishment completed
Value Creation Case 2 As Termas refurbishment completed 8 screen Renovated image 6 new contracts New dinning area cinema complex New materials and furniture, 3,597 sqm Redesign of the food court 1,265 seats specific and adapted lighting of the with wood coatings to Highest quality space and new elem
Slide 23: Value Creation Case 3: El Rosal refurbishment completed
Value Creation Case 3 El Rosal refurbishment completed New and attractive image Combining ✓ Renovated F&B area tradition and modernity ✓ Exterior terrace adapting to the tastes and ✓ Hammocks area to enjoy in Summer demands of a ✓ Interior vegetation: public always loyal Tree over six meters high to
Slide 24: Value Creation Case 4: Megapark FOC and retail park refurbishment
Value Creation Case 4 Megapark FOC and retail park refurbishment ✓ Improved image Transformation into an urban, modern and attractive space ✓ New exterior garden integrated with its Competition of the refurbishment of the retail park surroundings and the outside of the Fashion Outlet Centre ✓ Vegeta
Slide 25: 23% increase in retail annualised topped up net rent after the opening of Lagoh
23% increase in retail annualised topped up net rent after the opening of Lagoh +5.9% >6% 24% Retail Expected Estimated Rental Topped-Up NIY NIY Increase Potential Future Investments Existing Income Generating Assets 15 7 114 99 92 Annualised Topped Up Net Rent Reversionary Potential – Market & Reve
Slide 26: Closing Remarks
04 Closing Remarks
Slide 27: Closing remarks: Summary of key figures
Closing remarks Summary of key figures RESULTS ASSETS CORPORATE +9% 15 quarters 89% of 2nd Share Buy-Back EBITDA in Programme completed 9M 2019 vs 9M 2018 outperforming the Spanish market in sales and footfall Comfortable leverage +46% @ 33% Net LTV Lagoh revaluation since June 2019 Lagoh EPRA BPR A
Slide 28: Strong and consistent operating results are driven by a clear and unique strategy
Strong and consistent operating results are not by chance They are driven by a clear and unique strategy Top dominant retail assets fully owned, optimizing decision making. Strong 1 bargaining power with retailers driven by the presence of top retailers in our assets and our diversified portfolio in
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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