Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — 9M 2018 Earnings Presentation
29 slides from Helios Re Socimi's earnings presentation, Nov 13, 2018
Slide 1: 9M 2018 Results
9M 2018 Results 13th November 2018
Slide 2: Agenda
AGENDA 01 02 03 04 9M 2018 9M 2018 Business Closing Highlights Financial Performance Remarks Results 2
Slide 3: 9M 2018 Highlights
01 9M 2018 Highlights RETAIL _. / Le ACTON,
Slide 4: Lar España maintains its path of strong results in 9M 2018
Lar España maintains its path of strong results in 9M 2018 +12% 21% 11 quarters in Net Profit Developments & €10.76 NAV p.s. outperforming the OPERATING +44% refurbishment revaluation +13% vs 9M 2017 Spanish market RESULTS in Property Operating Result1 since June 2018 in sales & footfall VidaNova Pa
Slide 5: Value crystallized through the logistics portfolio disposal
Lar España crystalizes value during Q3 2018 through the logistics portfolio disposal Lar España shows its ability to unlock the value created over the last years of market improvement and active asset management of the existing portfolio Successful active management of The sale of the logistics port
Slide 6: VidaNova Parc: Successful opening with sales above tenants estimates
VidaNova Parc Successful opening with sales above tenants estimates VidaNova Parc fully opened in September Tenants impressed by initial sales figures Tenants >170,000 100% sales GLA leased visitors above estimates 1st week 45,773 Sqm €49.0 Mn €61.6 Mn GLA Total Investment Valuation1 +40 €5 Mn 6 Mn
Slide 7: Lagoh to become an additional source of value creation
Lagoh to become an additional source of value creation Excellent location, Summer 2019 4 km from Seville’s city centre Opening 76% 8 Inditex Brands signed GLA signed and committed 14 Mn/year c.200 €106.2 Mn Exp. Visits Tenants Valuation1 1.5 Mn inhabitants c.15 Mn €151.6 Mn Estimated Great catchment
Slide 8: Lagasca99 sales reached 90%
Lagasca99 sales reached 90% Most deliveries will occur before year end New residential concept €203 Mn in the centre of Madrid Valuation1 79% 90% 44% FY 2016 FY 2017 9M 2018 First units’ delivery Special dividend November 2018 announced Plot with 4 façades that features Avg. Price c.11,300 €/sqm 44
Slide 9: Successful Business Plan execution
Successful Business Plan execution 2018-2021 Business Plan Execution Arturo Soria Sale Egeo Sale Villaverde & Alisal Sale Logistics Portfolio & Galaria Sale Office Building Office Building Retail Parks Cheste Sale Retail Park 5.8% €32.5 Mn €79.3 Mn €33.2 Mn €119.7 Mn €11.5 Mn Avg. Sale price Sale pr
Slide 10: Investor Day 2018: Omnichannel and customer engagement
Investor Day 2018: Omnichannel and customer engagement Drivers of the day-to-day operations in Lar España Succesful shopping centres performance Winning assets in a moment of change and opportunity by Lar España is leading the digital transformation in the Spanish retail sector DIGITALISATION EXPERI
Slide 11: 9M 2018 Financial Results
02 9M 2018 Financial Results 11
Slide 12: Successful & strong financial key figures delivered in 9M 18
Successful & strong financial key figures delivered in 9M 2018 23 631,448 Assets GLA sqm €1,526 Mn +7% €58.6 Mn +2% €1,018 Mn 13.5% GAV vs 9M 2017 GRI vs 9M 2017 EPRA NAV ROE €607.0 Mn 2.27% €60.6 Mn +45% €10.76 8.0% Financial Debt Cost of Debt EBITDA1 vs 9M 2017 EPRA NAV per share ROA €478.9 Mn 31%
Slide 13: Solid retail performance driven by robust operating results
Solid retail performance driven by robust operating results in 9M 2018 Retail Rest of the portfolio Retail Rest of the portfolio GAV 87% 13% Rental Income 93% 7% Retail yields Operating results Commercial activity 6.5% +3.0% Potential LfL GRI €5.8 Mn 25,461 sqm Negotiated rent Rotated area growth +4
Slide 14: Strong valuation performance in developments & refurbishments
Strong valuation performance in our developments & refurbishments RETAIL & RESIDENTIAL DEVELOPMENTS OFFICES 23.3% 163.5% 5.1% 209.5% Revaluation Revaluation Revaluation Revaluation since 30 June 2018 since Acquisition since 30 June 2018 since Acquisition VIDANOVA PARC LAGOH LAGASCA 99 ELOY GONZALO (
Slide 15: Strong valuation performance in developments & refurbishments
Strong valuation performance in our developments & refurbishments € Mn Portfolio Value GAV by asset class 1,538 76 244 1,526 156 1,275 Retail 87% 899 Residential 7% 406 Offices 6% 2014 2015 2016 2017 Acquisitions Divestments Revaluation 30 Sep 2018 2018 2018 2018 15
Slide 16: Consolidated Income Statement (€ Millions)
Consolidated Income Statement (€ Millions) P&L Chg% RECURRING NON-RECURRING 9M 2018/17 9M 2018 9M 2017 9M 2018 9M 2017 9M 2018 9M 2017 Rental Income 58.6 57.2 58.6 57.2 - - Other Income 3.1 1.6 3.1 1.6 - - Property Operating Expenses (10.3) (9.6) (10.3) (9.6) - - Base Fee (6.5) (6.8) (6.5) (6.8) - -
Slide 17: Solid financial pillars
Solid financial pillars Debt Structure and Amortization Profile As at 30.09.2018 €140 Mn €467.0 Mn Senior Bank Secured Bond Debt Gross Financial Debt € Mn €607.0 Mn 259.2 239.0 Net LTV Avg. Cost of Debt 140.0 31% 2.27% 88.9 119.2 Fixed Interest Cover Rate Ratio1 (ICR) 5.0 14.9 98% 3.02x 2019 2020 20
Slide 18: New €70 Mn credit line granted by the EIB
New €70 Mn credit line granted by the EIB With the support of the Investment Plan for Europe EIB 7-year Credit Line Euribor + 125 bp min. margin October 26th Undrawn Lar España is the first €70.0 Mn entity in securing a €607.0 Mn €128.2 Mn credit line of this amount and characteristics, which, €478.
Slide 19: Share Buy-Back programme
Share Buy-Back programme Another way of distribution to maximize value for our shareholders The purpose of the Buy-Back Program is the €30 Mn Share reduction of Lar España’s share capital, 880,0001 Buy-Back in line with the company’s objective of increasing Shares already total shareholders return b
Slide 20: Business Performance
03 Business Performance f RETAIL 20
Slide 21: Sound retail letting activity keep pushing KPI's above market
Sound retail letting activity keep pushing KPI’s above market, despite 4 shopping centres under refurbishment Lar España continues outperforming the market Letting activity at the core of the strategy Visits 9M 2018 Sales3 9M 2018 +8.0% 41.5 Mn €486.3 Mn RENTAL GROWTH5 Vs 9M 2017 Vs 9M 2017 25,461 s
Slide 22: 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, 2018 Refurbishment pipeline Est. Capex % Execution 14% Albacenter €3.0 Mn 100% executed Extension/ renovation Capex Eloy Gonzalo €4.0 Mn 100% executed Megapark €6.5 Mn 90% ex
Slide 23: Albacenter & Eloy Gonzalo refurbishment projects
Albacenter & Eloy Gonzalo Two full refurbishment projects with a strong value creation Albacenter Shopping Centre Eloy Gonzalo Office Building Renovation of its entrances and create dynamic, feel-good and urban spaces, Full-scale interior refurbishment, including all the facilities, the property by
Slide 24: Retail operating trends keep up throughout the year
Retail operating trends keep up throughout the year All figures refer to 9M 2018 period Vs 9m 2017 Active Asset & Tenant Management LfL NOI LfL GRI Incentives reduction to + LfL Occupancy Rate Growth Growth Growth tenants Smart Capex in Operating Assets +1.5% +4.1% +3.0% 9.7% Total Sales1 Visits Ope
Slide 25: Retail Portfolio's potential
Retail Portfolio’s potential +5.6% +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 26: Closing Remarks
04 Closing Remarks
Slide 27: Closing remarks: 9M 2018 summary
+12% Net Profit in 9M 2018 vs 9M 2017 OPERATING +44% Property Operating Result in 9M 2018 vs 9M 2017 RESULTS +21% developments & refurbishment revaluation in just 3 months VidaNova Parc fully opened and operative with 100% GLA signed Lagoh reached 76% of GLA leased and committed DEVELOPMENTS Lagasca
Slide 28: 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 29: Follow us
Follow us www.larespana.com info@laespana.com Lar España Real Estate SOCIMI Lar España App
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