Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — FY2021 Earnings Presentation
36 slides from Helios Re Socimi's earnings presentation, Feb 28, 2022
Slide 1: FY 2021 Results Presentation
FY 2021 RESULTS PRESENTATION 28th February 2022 larespana.com
Slide 2: Presenting Team
Presenting Team José Luis del Valle Miguel Pereda José Manuel Llovet Jon Armentia Hernán San Pedro Chairman of Lar España´s Chairman of Grupo Lar Chief Executive Officer of Corporate Director and Investor Relations and Board of Directors Commercial Real Estate of CFO of Lar España Corporate Communic
Slide 3: Index
Index 1 2 3 4 5 FY 2021 Framework & FY 2021 FY 2021 Closing remarks key company operating financial & milestones situation performance ESG Results
Slide 4: FY 2021 Key milestones
FY 2021 Key milestones José Luis del Valle Chairman of Lar España´s Board of Directors 1
Slide 5: A year full of activity
FY 2021 Key milestones 1 Asset rotation: 22 supermarkets divestment (February 2021) 2021 2 Revised IMA extension (June 2021) A year full of activity 3 End of the 3rd share buyback program. 5% of share capital amortized (October 2021) 4 2 green bonds issuance: maturity extension and improvement of co
Slide 6: Framework & company situation
Framework & company situation Miguel Pereda Chairman of Grupo Lar 2
Slide 7: Consolidation of the recovery, with inflation extending beyond expectations
Framework & company situation Consolidation of the recovery, with inflation extending beyond expectations %GDP growth projections Spanish inflation outlook Source: INE, Bank of Spain Source: WEO Jan 2022 IMF Worldwide growth projections remain firm. GDP growth forecasts for Spain are strong, althoug
Slide 8: Real Estate experts agree on the analysis of the retail sector: recovery phase
Framework & company situation Eurozone vs Spain % Annual change in retail sales Average annual growth of rents in shopping centers % 2021-2025 by region Real Estate experts agree on the analysis of the retail sector: recovery phase Source: JLL Source: CBRE Retail sales have positive growth prospects
Slide 9: The shopping center sector in Spain: a good market for retail business
Framework & company situation The shopping center sector in Spain: a good market for retail business US & Spain, two completely different markets Shopping Center Density (sqm/inhabitant) Spanish retailers have only just entered into a mature phase and 2.35 the country’s density of shopping centers (
Slide 10: Lar España's improvement supported by our strategy and positive environment
Framework & company situation Because Lar España has made the right decisions Lar España’s improvement supported by our strategy and positive environment We reinforeced our strategy, its implementation and communication. We strengthened our commitment and relationship with retailers. We have kept th
Slide 11: Best-in-class portfolio: the key to overcome crisis
Framework & company situation FY 21 Market Comparison Best-in-class portfolio: Lar España Market Average1 the key to overcome crisis Occupancy rate 96.1% 94.5% Asset Valuation vs Dec20 +0.5% -1.9% LTV 40.7% 39.3% • Dominant assets with excellent locations. • Appropriate mix of assets and tenants. Av
Slide 12: FY 2021 Operating performance
FY 2021 Operating performance José Manuel Llovet Chief Executive Officer of Commercial Real Estate of Grupo Lar 3
Slide 13: The current situation: 100% open portfolio
FY 2021 Operating performance The current situation: 100% open portfolio Attractive asset mix 67% Shopping centers 33% Retail parks c. 20% essential activities (high % of resilient food and health tenants) Strong presence and loyalty of large operators Shopping centers Retail parks 13
Slide 14: Portfolio meeting the highest standards
FY 2021 Operating performance Portfolio meeting the highest standards Shopping >300K inhabitants Occuppancy Leader in catchment Refurbished/ > 4 Inditex Asset class GLA >40K sqm >4 Million visits Food anchored BREEAM centers catchment area >90% area developed last 5y flags Lagoh Dominant Gran Vía de
Slide 15: Current footfall and declared sales recovery vs 2019
FY 2021 Operating performance Current footfall and declared sales recovery vs 2019 100% 100% GLA opened Footfall recovery Sales recovery 112% 106% 105% 103% 97% 99% 104% 104% 102% 100% 95% 91% 94% 96% 96% 94% 97% 86% 104% 109% 76% 74% 92% 94% 96% 93% 67% 93% 93% 90% 89% 95% 93% 93% 91% 91% 84% 86% 9
Slide 16: One-on-one agreements reached; sales and footfall
FY 2021 Operating performance One-on-one agreements reached c. 100 % GLA On the way to recover Contracts >2024 pre-COVID levels 70 % 2021 Collected rents 95% Sales & Footfall FY 2021 Vs 2020 Vs 20191 Sales Lar España 892.8 €Mn +24.1% -2.1% Footfall Lar España 74.4 Mn visits +16.2% -12.5% +14.5%2 1 L
Slide 17: Leasing activity in 2021
FY 2021 Operating performance Leasing activity in 2021 70% 2.7 27,280 sqm Resilience during the pandemic and already back to pre pandemic levels contracts >2024 years Rotated WAULT 94 Occupancy Operations in FY 2021 3.9% 2 96.1% Rent uplift 95% 95% 95% >1,000 €5.7 Mn 8.4% Negotiated rent Q1 21 Q2 21
Slide 18: Some significant operations in 2021
FY 2021 Operating performance Some significant operations in 2021 Ikea Home Service Point El Rosal Ali Express Lagoh Food Market Vistahermosa Food Court Anecblau Leroy Merlin As Termas Prima Prix Abadía 18
Slide 19: Innovation as a cornerstone of our strategy
FY 2021 Operating performance Innovation as a cornerstone of our strategy Good offer of of leisure and Physical sales Safe and restaurants platform Location and hygienic leading environment Best center Commercial Shopping Offer experience Mass Market of the city FINAL Alternative CLIENT RETAILER The
Slide 20: FY 2021 Financial & ESG Results
FY 2021 Financial & ESG Results Jon Armentia Corporate Director and CFO of Lar España 4
Slide 21: FY 2021 Financial Results
FY 2021 Financial & ESG Results Results Assets FY 2021 € 79.1 Mn Outperforming the Spanish and European Financial Results GRI FY 2021 market 5.9% € 69.9 Mn EPRA “topped-up” NIY NOI FY 2021 96.1% € 25.8 Mn Occupancy 31st December 2021 Net Profit FY 2021 2.7 years WAULT €1,424Mn GAV 95% 2021 Collected
Slide 22: Corporate results, liquidity and green bond issuance
FY 2021 Financial & ESG Results Corporate FY 2021 7.0% €313.5Mn2 Corporate Results €30.0 Mn Liquidity Dividend Dividend Yield €0.36 p.s. proposed dividend Over market cap1 Net LTV 40.7% €400 Mn Green Bond issuance July 2021 Closing FY 2021 4x 1.75% Average cost of debt 1.9%3 Over suscription Interes
Slide 23: Best in class practices in ESG
FY 2021 Financial & ESG Results Best in class practices in ESG 100% Recommendations of the CNMV Good Governance Code complied BBB MSCI ESG Rating FTSE Russell Global Index kept Lar España as a constituent We are one of the 30 companies that are part of the IBEX Gender Equality Index. on its FTSE4Goo
Slide 24: EPRA figures
FY 2021 Financial & ESG Results EPRA figures €869.5 Mn vs €853.7 Mn €23.9 Mn 5.7 % vs 5.5% in as of 1H 2021 1H 2021 EPRA NTA EPRA Earnings EPRA NIY €10.41 1 vs €10.17 €0.28 5.9% vs 5.8% in EPRA 1H 2021 EPRA NTA per as of 1H 2021 EPRA Earnings “topped-up” share per share NIY Over the last 6 months of
Slide 25: Debt profile: investment grade and successful bond issuances
FY 2021 Financial & ESG Results Debt profile: investment grade and successful bond issuances BBB As of 31/12/21 As of today €892.7 Mn €770 Mn Gross Financial Gross Financial debt Second party debt Maturity Profile – Post issuances opinion €579.2 Mn €579.2 Mn Debt (€Mn) Net financial debt Net financi
Slide 26: P&L FY 2021: clear recovery of the profit during the period
FY 2021 Financial & ESG Results P&L FY 2021: clear recovery of the profit during the period FY 2021 FY 2020 Consolidated Income Statement FY 2021 (€ Thousands) Total Total Revenues1 76,271 93,324 Other Income 2,836 3,566 Personnel expenses (592) (474) Other expenses (27,888) (26,715) Changes in the
Slide 27: P&L FY 2021: more about revenues
FY 2021 Financial & ESG Results P&L FY 2021: more about revenues Considering the cash impact of the incentives (instead of the accounting impact ) on revenues, cash revenues post-incentives in 2021 amounted to 85,222 thousand Euros, which represents a 21% annual increase vs last year (and a 27% incr
Slide 28: Stable valuations
Financial information & ESG Stable valuations 31st December 2021 Valuation €1,424 Mn Including Capex Invested A resilient portfolio of dominant shopping centres in attractive Asset appraisal variations catchment areas. 48.8% Cherry picked assets carefully selected without acquiring portfolios. Asset
Slide 29: Continuously improving valuations
Financial information & ESG Continuosly improving valuations Valuation evolution on half year basis Reasons of the good performance of our portfolio +0.9% +0.9%: 100% rents, 0% yield effect Dec 2020 Jun 2021 Dec 2021 Leaders in their area of influence -0.4% Fully refurbished assets All shopping cent
Slide 30: Attractive dividend: Maintained despite Covid-19
Financial information & ESG Attractive dividend: Maintained despite Covid-19 8.9% Div Yield over Market Cap 1 Committed to profitability € 0.63 ps € 0.54 ps €55.0 Mn • Prudent cash position control with a detailed € 0.49 ps 7.0% Div 6.7% Div liquidity analysis. Yield over €50.0 Mn Yield over Market
Slide 31: One of the most profitable options for the shareholder in the Spanish market
One of the most profitable options for the shareholder in the Spanish market One of the most profitable One of the largest capital options for investors in the reductions in the Spanish stock Spanish market market Dividends Program SBB 2019 € 55.0 Mn 8.9% Div. Yield1 3.5% Share March 2019 3.1 Mn sha
Slide 32: Closing remarks
Closing remarks José Luis del Valle Chairman of Lar España´s Board of Directors 5
Slide 33: Strong and resilient leadership in Spanish Retail makes Lar España an extremely attractive company
Closing remarks Strong and resilient leadership in Spanish Retail makes Lar España an extremely attractive company 1 4 Retail sector, an opportunity 6.0% yield Attractive dividend policy. 7.0% dividend yield to enter at attractive yields. prime SSCC1 over market cap 2 Strong value creation over the
Slide 34: Portfolio + Management + Profitability
Closing remarks In summary: with significant upside potential Sound balance, Innovative, with Truly committed Leaders in a clearly Resilient through moderate debt & focus on Top in class ESG to value creation recovering market cycles strong cash omnichannel practices & shareholder position profitabi
Slide 35: Disclaimer
Disclaimer This document has been prepared by Lar España Real Estate SOCIMI, S.A. (the “Company”) for information purposes only and the information included in this document is not regulated information or information which has been subject to prior registration with, or control by, the Spanish Nati
Slide 36: www.larespana.com
—_— lar www.larespana.com
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