Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — H1 2022 Earnings Presentation
37 slides from Helios Re Socimi's earnings presentation, Jul 29, 2022
Slide 1: H1 2022 Results Presentation
for the new retail world! H1 2022 RESULTS PRESENTATION 29th July 2022 larespana.com
Slide 2: Presenting Team
Presenting Team Miguel Pereda José Manuel Llovet Jon Armentia Hernán San Pedro Vice- Chairman of Lar Chief Executive Officer of Corporate Director and Investor Relations and España & Chairman of Commercial Real Estate of CFO of Lar España Corporate Communication Grupo Lar Grupo Lar Director of Lar E
Slide 3: Index
Index 1 2 3 4 Framework & H1 2022 H1 2022 Closing remarks company operating financial & situation performance ESG Results
Slide 4: Framework & company situation
Framework & company situation Miguel Pereda Vice- Chairman of Lar España & Chairman of Grupo Lar 1
Slide 5: Consolidation of the recovery, with inflation extending beyond expectations
Framework & company situation Consolidation of the recovery, with inflation extending beyond expectations %GDP growth forecast Inflation forecast Source: European Economic Forecast - Summer 2022 Source: European Economic Forecast - Summer 2022 2021 2022 2023 2021 2022 2023 % GDP Growth Spain 5.1 4.0
Slide 6: Spain is creating employment
Framework & company situation Spain is creating employment The Spanish economy is capable of creating jobs with a growth rate of 2% Record number of social security contributors since 2008 Source: Secretary of State for Social Security and Pensions 6
Slide 7: Spanish retail sector has proven its resilience
Framework & company situation Spanish retail sector has proven during the past and now its resilience Average annual growth of rents in shopping centers Eurozone vs Spain % Annual change in retail sales % 2022-2026 by country • Rents in Spanish shopping centers have grown above average • Retail sale
Slide 8: The shopping center sector in Spain is a good market for retail business
Framework & company situation The shopping center sector in Spain is a good market for retail business Spanish retailers have entered into a mature phase and the Shopping Center Density E-commerce penetration country’s density is well- below the US and EU markets. (sqm/inhabitant) 2.35 26% Spanish s
Slide 9: Lar España demonstrates again strength over the Spanish sector
Framework & company situation Lar España demonstrates again strength over the €42.1 Mn €54.9Mn GRI H1 2022 +6.8% vs H1 21 Net Profit +7X vs H1 21 Spanish sector 1 €1,470 Mn €10.72 GAV +4.1% vs June 21 EPRA NTA p.s. +5.4% vs H1 21 €35.5 Mn 39.8% NOI +10.4% vs H1 21 LTV -120 bps vs June 21 9 1 When an
Slide 10: It also demonstrates a performance above the European sector
Framework & company situation H1 22 Market Comparison It also demonstrates a Lar España Market Average1 performance above the Net Profit vs Jun21 7X 2X European sector GAV vs Dec21 +3.2% +0.0% EPRA NTA p.s vs Dec21 +3.0% -0.7% Asset Valuation vs Jun21 +4.1% -0.2% Occupancy rate 95.3% 95.6% LTV 39.8%
Slide 11: Once again Lar España is well prepared for major uncertainties
Framework & company situation Once again Lar España is well prepared for major Rents Portfolio uncertainties Strong results. 100% refurbished. 100% agreements GRI +6.8% vs H1 2021 with retailers. Solid valuation of the Effort rate1: 9.3% assets. We have kept the highest health standards. We reinforc
Slide 12: We keep achieving significant milestones during 2022
Framework & company situation PRESENTATION OF OUR NEW BUSINESS PLAN We held an Analyst Day and presented our new business plan for the coming years • More than € 500 Mn investment to consolidate our leadership in retail • Rotation of up to c.a.30% of current assets to optimize the portfolio We keep
Slide 13: H1 2022 Operating performance
H1 2022 Operating performance José Manuel Llovet Chief Executive Officer of Commercial Real Estate of Grupo Lar 2
Slide 14: Really dominant and resilient portfolio
H1 2022 Operating performance Really dominant and resilient portfolio Attractive asset mix 66% Shopping centers 34% Retail Parks +95% Ocuppancy c. 25% essential activities (high % of resilient food and health tenants) Strong presence and loyalty of large operators Shopping centers Retail parks 14
Slide 15: Portfolio meeting the highest standards
H1 2022 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 16: Lagoh awarded as the best shopping center in Spain
H1 2022 Operating performance Lagoh awarded as the best shopping center in Spain Last May… The Asociación Española de Centros y Parques Comerciales (AECC) awarded Lagoh with the 2022 prize for the best large Spanish shopping centre at the closing gala of the XVIII Spanish Congress of Shopping Centre
Slide 17: Leasing KPIs, sales and footfall
H1 2022 Operating performance Already at pre-COVID levels Leasing KPIs 26,307 sqm 10% +2.2 % 2 9.4% Rotated Annualised rotation rate Rent uplift >60% 2.6 y contracts Effort rate >2025 WAULT expenses included 73 5.1 Mn Operations in H1 2022 Negotiated rent Sales & Footfall +21.3% +13.8% 95.3% >1,000
Slide 18: Main operations
H1 2022 Operating performance Main operations RENEWALS RELETTINGS NEW LETTINGS 45 deals have been signed with 19 contracts have been signed with 9 contracts have been signed. MGR Uplift of +0.6% vs Prior Rent. an MGR Uplift of +9.3%*. (*) Like for Like (excluding 7 non comparable operations) 18
Slide 19: Innovation as a cornerstone of our strategy
H1 2022 Operating performance Innovation as a cornerstone of our strategy 1 2 3 4 5 The omnichannel Increased and better data Maximising information Implementation of the experience. Classification and bundling of on more customers visiting on retailers – our main technology that allows us to all th
Slide 20: H1 2022 Financial & ESG Results
H1 2022 Financial & ESG Results Jon Armentia Corporate Director and CFO of Lar España 3
Slide 21: H1 2022 Financial Results
H1 2022 Financial & ESG Results Results Assets H1 2022 € 42.1 Mn +6.8% vs Outperforming the Spanish and European Financial Results GRI H1 2022 H1 2021 market 5.8% € 35.5 Mn +10.4% vs H1 2021 EPRA “topped-up” NIY NOI H1 2022 95.3% € 54.9 Mn 7X vs Occupancy 30th June 2022 H1 2021 Net Profit H1 2022 2.
Slide 22: Corporate Results
H1 2022 Financial & ESG Results Corporate H1 2022 7.0% €215 Mn Corporate Results €30.0 Mn Liquidity 2 Dividend Dividend Yield €0.36 p.s. approved dividend Over market cap1 Net LTV 39.8% €400 Mn Green Bond issuance July 2021 Closing H1 2022 4x 1.75% Over suscription Interest rate Average cost of debt
Slide 23: With the best in class practices in ESG
H1 2022 Financial & ESG Results With the best in class practices in ESG Governance The data automation platform for Social Environmental environmental indicators was put into operation in 2021.The company 100% Recommendations of the 6 assets certified is currently completing the roll-out CNMV Good G
Slide 24: Debt profile: investment grade and successful bond issuances
H1 2022 Financial & ESG Results Debt profile: investment grade and successful bond issuances BBB As of 30/06/22 €770 Mn Gross Financial debt Second party Maturity Profile – Post issuances opinion €585 Mn Debt (€Mn) Net financial debt 24.5 45.5 1.8% average cost of debt (40 bps improvement vs 1H21) 4
Slide 25: BBB stable outlook - Rating affirmed
H1 2022 Financial & ESG Results BBB stable outlook - Rating affirmed BBB Fitch underlines that: • Its rating reflects both the regional dominance and the high retail space of Lar España's portfolio of 14 shopping centers and retail parks, as well as its valuation of more than 1.4 billion euros at th
Slide 26: Strong valuations demonstrates the quality of the portfolio
H1 2022 Financial & ESG Results Strong valuations demonstrates the quality of the portfolio 30th June 2022 Valuation €1,470 Mn Including Capex Invested A resilient portfolio of dominant shopping centers in attractive Asset appraisal variations +53.6% catchment areas. Cherry picked assets carefully s
Slide 27: Attractive dividend: Maintained despite Covid-19
H1 2022 Financial & ESG Results Attractive dividend: Maintained despite Covid-19 8.9% Div CAGR2 14/21 Yield over Market Cap 41% 1 Paid last Committed to profitability € 0.63 ps May 27th € 0.54 ps • Prudent cash position control with a detailed € 0.49 ps 6.7% Div 7.0% Div liquidity analysis. Yield ov
Slide 28: P&L H1 2022: clear recovery of the profit during the period
H1 2022 Financial & ESG Results P&L H1 2022: clear recovery of the profit during the period H1 2022 H1 2021 Variation Consolidated Income Statement 1H 2022 (€ Thousands) Total Total Revenues 40,493 38,752 Other Income 1,558 1,226 Personnel expenses (519) (276) Other expenses (14,891) (17,185) Change
Slide 29: New Business Plan 2022-2025: Strategy
H1 2022 Financial & ESG Results New Business Plan 2022-2025: Strategy Preserve Support Recover Reinvest in the Maintain a Return to occupancy tenants in leasing assets that strategy of pre-pandemic levels the recovery activity levels, need it most in proximity to the valuation of their returning to
Slide 30: New Business Plan 2022-2025: Asset Rotation
H1 2022 Financial & ESG Results New Business Plan 2022-2025: Asset Rotation Lar España has a tier-one retail The disposal strategy of this type of After a detailed analysis of all the portfolio, with certain assets that will assets would generate CF in order to assets in the portfolio and their grow
Slide 31: New Business Plan 2022-2025: Assumptions
H1 2022 Financial & ESG Results New Business Plan 2022-2025: Assumptions MANAGEMENT 1 LEVERAGE 2 SHARE CAPITAL 3 AGREEMENT 40%-45% No capital increases considered currently Moderate Net LTV levels Investment Management Agreement with best-in-class practices across European REITs 4 SHARE BUY-BACK PRO
Slide 32: New Business Plan 2022-2025: Targets
H1 2022 Financial & ESG Results New Business Plan 2022-2025: Targets (2) GAV ca. 7% Average growth per annum Annualized GRI ca. 7% Average growth per annum (2) NAV/NTA ca. 7% Average growth per annum Annualized NOI ca.8% Average growth per annum ca.41% (1) (2) Net LTV BBB EPRA Earnings ca.45% Averag
Slide 33: Closing remarks
Closing remarks Miguel Pereda Vice- Chairman of Lar España & Chairman of Grupo Lar 4
Slide 34: 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 2 3 Increase in rental income. Solid operating results. Major increase in revenues. +6.8% GRI vs H1 2021 +10.4% NOI vs H1 2021 +7X net profit vs H1 2021 4 5 6 Moderate debt level. Imp
Slide 35: In summary: with significant upside potential
Closing remarks In summary: with significant upside potential Sound balance, Innovative, with Truly commited to Leaders in a clearly Resilient through moderate debt & focus on Top in class ESG value creation & recovering market cycles strong cash omnichannel practices shareholder position profitabil
Slide 36: 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 37: www.larespana.com
—_— lar www.larespana.com
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