Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — FY2022 Earnings Presentation
38 slides from Helios Re Socimi's earnings presentation, Feb 27, 2023
Slide 1: FY 2022 Results Presentation
LAR ESPAÑA REAL ESTATE FY 2022 RESULTS PRESENTATION 27th February 2023 larespana.com
Slide 2: Presenting Team
Presenting Team José Luis del Valle Miguel Pereda Jon Armentia Hernán San Pedro Chairman of Lar España Vice Chairman of Lar Corporate Director and Investor Relations and Board of Directors España and Chairman of CFO of Lar España Corporate Communication Grupo Lar Director of Lar España 2
Slide 3: Q&A Team
Board of directors Q&A Team José Luis del Valle Miguel Pereda Chairman of Lar España Vice Chairman of Lar Board of Directors España and Chairman of Grupo Lar Lar España Team Jon Armentia Hernán San Pedro Corporate Director and Investor Relations and CFO of Lar España Corporate Communication Director
Slide 4: FY 2022 Key milestones
FY 2022 Key milestones José Luis del Valle Chairman of Lar España´s Board of Directors 1
Slide 5: Permanently committed to our value proposal
FY 2022 Key milestones Permanently committed to our value proposal PROVIDING OUR LEADING THE CONTINOUSLY OFFERING A CUSTOMERS WITH INDUSTRY BASED ON IMPROVING THE DIFFERENTIAL UNIQUE SHOPPING THE SIZE AND RELATIONSHIP WITH PROPOSITION OF HIGH EXPERIENCES QUALITY OF OUR RETAILERS ADDED VALUE AND PORT
Slide 6: 2022 a year full of activity
FY 2022 Key milestones 2022 a year full of activity AMORTIZATION FITCH RATING ANALYST DAY LAGOH DISTRIBUTION OF OF THE SENIOR AGENCY CELEBRATION AWARDED AS A DIVIDEND OF SECURED BOND CONFIRMED THE THE BEST €30 MILLION2 (MATURITY FEB INVESTMENT SHOPPING €0.36 p.s. 2022) GRADE BBB CENTER IN STABLE SPA
Slide 7: 2022 a year full of records
FY 2022 Key milestones 2022 a year full of records FOR THE FIRST ALSO FOR THE HIGHEST NTA PER ONE OF THE TIME, LAR FIRST TIME, OUR SHARE2 HIGHEST ESPAÑA’S FLAGSHIP LAGOH €11.16 p.s. D I V I D E N D S I 1N RETAILERS SURPASSES ONE OUR HISTORY +4.1% vs June 2022 PORTFOLIO MILLION VISITS IN €50 MILLION
Slide 8: Highlights & company situation
FY 2022 Highlights & company situation Miguel Pereda Vice Chairman of Lar España & Chairman of Grupo Lar 2
Slide 9: Lar España's positive results are supported by our strategy
FY 2022 Highlights & company situation Lar España’s positive results are supported by our strategy RESULTS LEVERAGE GRI 37.1% 1 2 +6.9% LTV VS FY2021 OCCUPANCY VALUATIONS c. 97% +3.5% vs Dec 21 1 Like for Like, excluding 22 supermarkets portfolio divested in Q1 2021 2 Pro-forma after Bond buy-back (
Slide 10: Our sales and footfall outperform the Spanish market
FY 2022 Highlights & company situation Our sales and footfall outperform the Spanish market sales… FOOTFALL FY 2022 SALES FY 2022 80.5 Mn of visits € 1,051 Mn +8.1% +13.9% +1.0% vs FY 2021 LfL vs FY 2021 LfL vs FY 2021 -6.1% +10.6% 1 -1.2% vs FY 2019 LfL 1 vs FY 2019 LfL vs FY 2019 10 1 Like for Lik
Slide 11: …and also our European peers' performance…
FY 2022 Highlights & company situation LAR ESPAÑA MARKET AVERAGE1 …and also our GRI vs FY 2021 +6.1% +5.1% European Net Profit vs FY 2021 +182.8% +47.2% peers’ performance… Occupancy rate 96.6% 95.4% Asset Valuation vs Dec21 +3.5% -0.1% NTA per share vs Dec 2021 +7.2%2 +0.3% LTV 37.1%2 38.8% Average
Slide 12: …thanks to an active asset management…
FY 2022 Highlights & company situation …thanks to an active asset management… CHERRY PICKED VERY DOMINANT SHOPPING EXCELLENT MIX OF ASSETS CENTRES IN ATTRACTIVE SHOPPING CENTERS CATCHMENT AREAS AND RETAIL PARKS 100% c.80% 66% 1 34% 1 ownership of the portfolio is classified as Shopping Centers Retai
Slide 13: …and a portfolio that meets the highest standards…
FY 2022 Highlights & company situation …and a portfolio that meets the highest standards… Shopping >300K Occuppancy Leader in Refurbished/ > 4 Inditex centers Asset class GLA >40K sqm inhabitants >4 Million visits Food anchored BREEAM >90% catchment area developed last 5y flags catchment area Lagoh
Slide 14: ...just a simple example
FY 2022 Highlights & company situation ...just a simple example Shopping Centers Calification Certification Type Status Retail Parks Calification Certification Type Status Lagoh Very Good New Building Certified Megapark P1: Very Good Use Certified P2: Excellent Gran Vía P1: Excellent Use Certified P
Slide 15: We are the leading landlord for Tier 1 retailers in Spain
FY 2022 Highlights & company situation We are the leading landlord for Tier 1 retailers in Spain 15
Slide 16: We have innovation as a cornerstone of our strategy
FY 2022 Highlights & company situation We have innovation as a cornerstone of our strategy FINAL CLIENT RETAILER Safe and hygienic environment Location and leading center Lar España is the key link between Tier 1 Best Commercial Offer Physical sales platform retailers and their final clients offerin
Slide 17: convinced that omnichannel is already a reality
FY 2022 Highlights & company situation convinced that omnichannel is already a reality CLICK & WHATSAPP ALIEXPRESS LAR SHOP SHOPPING PLAZA CONECTA An innovative omnichannel Initiative which a new sales One of the few physical It facilitates the digital sales platform with the and personal advice ser
Slide 18: FY 2022 Operating, financial and ESG results
FY 2022 Operating, financial and ESG results Jon Armentia Corporate Director and CFO of Lar España 3
Slide 19: Lar España had an outstanding leasing activity during 2022
FY 2022 Operating, financial and ESG results Lar España had an outstanding leasing activity during 2022 +65% + 1,000 54,128sqm Occupancy Contracts Existing Rotated maturity contracts >2025 176 Operations in FY 2022 96.6% 2 +1.3% 9.2% 2.5 Rent uplift years Effort rate 1 WAULT €11.7Mn Negotiated rent
Slide 20: Top retailers continue to choose our assets
FY 2022 Operating, financial and ESG results Top retailers continue to choose our assets NEW LETTINGS 20 Number of contracts signed c. +90% RELETTINGS 50 176 RENEWALS 106 94 2021 2022 20
Slide 21: P&L FY 2022: strong results during the year
FY 2022 Operating, financial and ESG results P&L FY 2022: strong results during the year FY 2022 FY 2021 Consolidated Income Statement FY 2022 (€ Millions) Total Total % Growth Revenues 80.2 76.3 Other Income 3.4 2.8 Total Income 83.6 79.1 +5.7% Personnel expenses (0.9) (0.6) Other expenses (22.6) (
Slide 22: We have achieved sound financial results
FY 2022 Operating, financial and ESG results We have achieved sound financial results GRI NOI NET PROFIT +6.1% vs FY 2021 +5.5% vs FY 2021 €72.9 Mn +6.9% LfL vs FY 2021 +6.3% LfL vs FY 2021 c. 3x vs FY 2021 1 1 COLLECTED GAV WAULT OCCUPANCY RENTS 2 €1,473 Mn 2.5 years 96.6% 97% 1 Like for Like, excl
Slide 23: EPRA figures
FY 2022 Operating, financial and ESG results EPRA figures €914.3Mn € 40.3 Mn 5.6% 3.5% EPRA NTA EPRA Earnings EPRA NIY EPRA vacancy rate €11.16 1 €0.48 2 EPRA NTA per 5.9% 14.2% EPRA Earnings EPRA “topped- EPRA cost share per share up” NIY ratio Over the last 12 months of 2022, Lar España has achiev
Slide 24: Positive performance of our NTA
FY 2022 Operating, financial and ESG results Positive performance of our NTA €11.16 € 12.0 € 10.0 €10.34 € 8.0 € 6.0 1º SBB 2º SBB 3rd SBB Completed Completed Completed Mar 2019 Dec 2019 Nov 2021 € 400 Mn € 300 Mn Bond Buy- € 4.0 Green bond Green bond Back Jul 2021 Nov 2021 Jan 2023 € 2.0 2019 2020
Slide 25: The evolution of our NTA continues outperforming our peers
FY 2022 Operating, financial and ESG results The evolution of our NTA continues outperforming our peers 2022 2021 % vs 2022 2020 % vs 2022 2019 % vs 2022 1 Lar España 10.93 € 10.41€ +5.0% 10.42€ +4.9% 10.34€ +5.7% Peer 1 121.0€ 123.2 € -1.8% 128.1€ -5.4% 177.6€ -31.9% Peer 2 21.7 € 21.5€ +0.9% 27.7€
Slide 26: Corporate Results: Strong dividend and low leverage
FY 2022 Operating, financial and ESG results FY 2022 Corporate Results: Strong dividend and low leverage DIVIDEND DIVIDEND YIELD LIQUIDITY OVER MARKET CAP €50.0 Mn 14.2% c. € 115 Mn 1 €0.60 p.s. proposed dividend +66.7% vs FY2021 NET LTV AVERAGE COST BOND BUY-BACK OF DEBT Jan. 2023 2 As of today 37.
Slide 27: Bond Buy-Back completed in January 2023
FY 2022 Operating, financial and ESG results Bond Buy-Back completed in January 2023 Key transaction highlights Strong bondholder demand resulting in a successful transaction for Lar España’s shareholders Implied discount achieved on bond repurchase of 18% Significant leverage reduction from an LTV
Slide 28: Debt profile: optimal leverage, cost and maturity
FY 2022 Operating, financial and ESG results Debt profile: optimal leverage, cost and maturity 1 After the Bond Buy-Back (Jan 23) As of 31/12/22 €660 Mn €770 Mn BBB Gross Financial debt Gross Financial debt €547 Mn €567 Mn Maturity Profile Net financial debt Net financial debt Debt (€Mn) 37.1% Net L
Slide 29: Sound valuations
FY 2022 Operating, financial and ESG results Sound valuations 31st December 2022 Valuation €1,473 Mn Including Capex Invested Asset appraisal variations Valuation evolution vs European peers +54.0% Dec 2022 vs Dec 2021 Dec 2022 vs Jun 2022 Lar España +3.5% +0.2% Peer 1 -2.7% -2.3% Peer 2 -0.2% +0.2%
Slide 30: We propose one of the highest ordinary dividends in our history
FY 2022 Operating, financial and ESG results We propose one of the highest ordinary dividends in our history 8.9% Div Since our foundation, we Yield 1 have distributed a total of 14.2% Div € 0.63 ps € 0.54 ps Yield1 >€300 Mn 2 €55.0 Mn € 0.60 ps € 0.49 ps €50.0 Mn €50.0Mn €45.0 Mn 7.0% Div 6.7% Div
Slide 31: One of the most profitable options in the Spanish market
FY 2022 Operating, financial and ESG results One of the most profitable options (not only by dividends) in the Spanish market One of the most profitable options One of the largest capital reductions in the A new way to improve profitability: for investors in the Spanish market Spanish stock market d
Slide 32: The best in class practices in ESG
FY 2022 Operating, financial and ESG results The best in class practices in ESG Over 10% of leases signed by Lar España’s 100% properties in Lar España’s portfolio MSCI has ratified and confirmed their BBB ESG Rating for Lar España Real portfolio include Green Leasing Clauses feature electric vehicl
Slide 33: Closing remarks
Closing remarks José Luis del Valle Chairman of Lar España´s Board of Directors 4
Slide 34: In summary, we have achieved strong results…
Closing remarks In summary, we have achieved strong results… SOLID OPERATING MAJOR INCREASE SOUND RESULTS IN PROFIT VALUATION +6.3% 1 c. 3x 1,473 LfL NOI vs FY21 Net profit vs FY21 GAV +3.5% VS Dec 2021 ONE OF THE HIGHEST MODERATE DEBT IMPROVEMENT IN ORDINARY DIVIDENDS LEVEL EPRA FIGURES IN OUR HIST
Slide 35: …thanks to our focus on…
Closing remarks …thanks to our focus on… STRONG ACTIVE ASSET OMNICHANNEL TOP IN CLASS SHAREHOLDER PORTFOLIO MANAGEMENT STRATEGY ESG PRACTICES PROFITABILITY 35
Slide 36: …as you can see in two minutes
Closing remarks …as you can see in two minutes 36
Slide 37: 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 38: www.larespana.com
—_— lar www.larespana.com
Lar España Real Estate SOCIMI — FY2022 Earnings Presentation on 6ix