Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — Investor Presentation (December 2016)
20 slides from Helios Re Socimi's investor presentation, December 2016
Slide 1: Corporate Presentation December 2016
Corporate www.larespana.com Presentation December 2016
Slide 2: Snapshot
2 Snapshot Shareholder Structure First IPO of a Spanish REIT listed on the Spanish Stock Exchanges Focused on creating both sustainable income and strong capital returns PIMCO for shareholders 20.03% Other investors 46.1% Brandes Investment Lar España is externally managed by Grupo Lar, privat
Slide 3: Governance Structure
3 Governance Structure Independent and experienced Board: Critical Activities internalized 4 independent directors (4 out of 5) José Luis del Valle Roger Cooke Pedro Luis Uriarte Sergio Criado Jon Armentia Susana Guerrero Chairman and Independent Independent CFO Corporate Legal Independent Director
Slide 4: Retail platform + non-retail assets
4 Retail platform + non-retail assets MALL Offices Logistics Residential Retail Offices in consolidated locations of Focus on logistic properties on Development of first homes in Madrid and Barcelona with good a selective basis with low rents, prime niche markets without Top retail player connection
Slide 5: Portfolio distribution
5 Portfolio distribution Location by asset class 6 10 13 4 15 RETAIL 9 7 12 5 75% GAV 5 OFFICES 21 22 20 23 1 24 14% GAV 17 16 26 19 18 11 5 LOGISTICS 6% GAV 14 25 3 1 RESIDENTIAL 2 8 5% GAV 15
Slide 6: Lar España Strategy
6 Lar España Strategy Special focus on under managed First IPO of a Spanish REIT assets listed on the Spanish Stock Exchanges Real Estate Manager with objective of implementing MANAGEMENT an Active Management Strategy in order to deliver “Alpha” >100 Real Estate Company’s business strategy is to acq
Slide 7: Retail Assets
7 Retail Assets 1 Focus on shopping centres and retail parks Key assets in their catchment areas Locations Locations selected based on: Prime assets in their area of influence Level of competition Close to 500,000 sqm GLA Current GDP per capita and future growth outlook Impact of tourism a
Slide 8: Non-Retail Assets
8 Non-Retail Assets 2 Opportunistic approach to other assets Core locations Focus on value added assets Luxury residential for sale Management as a key element to make acquisitions and Offices in Madrid and Barcelona generate differential value, taking advantage of Grupo Lar’s Logistics in mai
Slide 9: Main Figures
9 Main Figures EPRA Net Initial Yield: 5.8% & EPRA Topped-up NIY GAV (€ Mn) 6.2% 6.3% Residential Developments Retail Logistics 5% 10% 6% Offices 2.9%2 4.4% 14% Offices €1,2011 €1,2011 7.0% 7.2% Logistics Retail 75% Rental Properties 90% EPRA Occupancy Rate: EPRA Annualized Net Rent (€ Mn) 92.8% Log
Slide 10: Valuation
10 Valuation Valuation Bridge Since Acquisition € Mn (2) 1,201 Revaluation H1 2016 42 1,050 (1) 118 €42Mn 48 47% Yield Impact 851 53% Management Impact Acquisition & Acquisitions H12016 Revaluation H12016 GAV Revaluation 2014-15 Aquisitions Revaluation 1. Market Value determined by JLL and C&W as of
Slide 11: 9M 2016 Highlights
11 9M 2016 Highlights €1,201 +71% vs GAV 1 Q3 2015 Mn €42.2 Rental +80% vs EPRA NAV EPRA NAV Income Q3 2015 €8.4 €757.9 (€ ‘000s) Mn per share 35% Net LTV2 2.24% 6.1% EPRA “topped-up” NIY 5.8% EPRA Cost of Debt Net Initial Yield Tenants Sales Growth outperforming the market €18.8 EPRA +56% vs €62.7
Slide 12: LAR España has a clear objective
12 LAR España has a clear objective Consolidate among the top 3 retail operators in Spain: Target to selectively increasing GLA to generate revenue synergies Spain Total Retail GLA by Size Owned GLA Estimate % Ownership Other Very Large Peer 1 15.5 M sqm 15% 15% Retail Park Peer 2 12% Lar España + L
Slide 13: Retail Operating Performance
13 Retail Operating Performance 16% Rotation rate +20,051 Sqm leasing activity Since Acquisition 9M 2016 Average holding period 16.3 months REPOSITIONING +4.9% NOI Since Acquisition +4% Improvement in revenues of common areas Average holding period 16.3 months Since Acquisition VALUE CREATION 92.6%
Slide 14: Portfolio Annualized Rental Growth
14 Portfolio Annualized Rental Growth Estimated Future Investments c.110 Existing Developments c.14 Existing Income Generating Assets c.96 c.13 c.4 c.4 c.2 c.77 c.8 63 3 3 1 4 Annualised Reversionary Reversionary 2 Marcelo Reversionary Vidanova Palmas Altas Potential Firepower Potential net rent pot
Slide 15: Key targets & assumptions 2017-2020
15 Key targets & assumptions 2017-2020 Expected Expected Average Growth Return Targets 2016 End per annum Total Annual Return >12% >12% NAV c. €780 Mn c. 9-10% Expected Expected Average Business Plan Assumptions 2016 End Growth per annum Annualized GRI c. €70 Mn c. 14% Annualized NOI1 c. €63 Mn c. 1
Slide 16: Dividends
16 Dividends Predictable and sustainable dividend and distribution schedule Dividend policy Competitive in the International Real Estate market objectives Attractive vs Spanish equity market As a result of a solid cash flow generation 1 2016 More than 4%1 over NAV (> 5% on current Market Cap
Slide 17: Closing Remarks
17 Closing Remarks Unique exposure to real estate retail assets and the Spanish consumer recovery Resilient prime dominant shopping centres in attractive catchment areas Recurrent cash flow generation from a 5.8% Net Initial Yield Upside potential from acquisitions done at attractive
Slide 18: Right timing, right resources, right platform
18 Going forward 1 RIGHT TIMING Cycle 2 RIGHT RESOURCES Operational Opportunity Financial Know-How 3 RIGHT PLATFORM Size RESULTS Synergies Operation Developments Revaluation Rotation potential Dividends
Slide 19: Disclaimer
19 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 n
Slide 20: Contact us
Contact us Corporate www.larespana.com Presentation Lar España Real Estate SOCIMI
Lar España Real Estate SOCIMI — Investor Presentation (December 2016) on 6ix