Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — Q1 2020 Earnings Presentation
36 slides from Helios Re Socimi's earnings presentation, May 14, 2020
Slide 1: Q1 2020 Results
Q1 2020 RESULTS _ 14-May-2020 www.larespana.com
Slide 2: Index
14 05 2020 Index 1. 2. 3. 4. 5. COVID-19 Q1 2020 Q1 2020 Q1 2020 Q1 2020 Current Highlights Financials & Differentiated Remarks & situation ESG business questions model
Slide 3: COVID-19 Current Situation
01 COVID-19 CURRENT SITUATION _
Slide 4: Unique action protocol adopted
14 05 2020 Unique action protocol adopted STRUCTURE AND INTERNAL PROCEDURES UNIQUE ACTION • Same action protocol for Lar España, Grupo Lar and its subsidiary Gentalia. PROTOCOL AND • Work from home for professionals with all necessary tools, devices and technologies to complete all daily INFORMATION
Slide 5: Solid business model to overcome current situation
14 05 2020 Solid business model to overcome current situation DIFFERENTIATED AND DOMINANT ASSETS IN EACH LOCATION 14 SHOPPING CENTRES & • 14 dominant assets in its catchment areas: 96% occupation (full technical occupation). RETAIL PARKS • 22 retail units. + 22 RETAIL UNITS • Full decision making: c
Slide 6: Strong financial structure
14 05 2020 Strong financial structure DEBT AND LIQUIDITY FINANCIAL PRUDENCE • Net LTV: 35%. • Principle of austerity and adapted expenditure to the • Avg. cost of debt: 2.1%. new situation. • 83% fixed rate and no relevant maturities in the next 2 years. • Minimization of costs of shopping centres,
Slide 7: Commitment to society during the health crisis
14 05 2020 Commitment to society during the health crisis Helping neighbours Stay-at-home activities Facilities and services offered to a UME command post Donation campaign in to support health personnel and vulnerable groups Parking places available to healthcare personnel 7
Slide 8: Grupo Lar and its Foundation Altamira-Lar are also making a great contribution
14 05 2020 Grupo Lar and its Foundation Altamira-Lar are also making a great contribution Financial contribution of Grupo Lar and many of its employees to the Help Foundation for the purchase of protection masks for healthcare personnel Involved in the project of Juan Gerstl to produce 1,000 protect
Slide 9: Prepared for the re-opening of shopping centres: safe spaces
14 05 2020 Prepared for the re-opening of shopping centres: safe spaces Tentative calendar1 Commercial area opened PHASE 0 PHASE 1 PHASE 2 PHASE 3 PRE-COVID-19 COVID-19 “TRANSITION PLAN TO A NEW NORMALITY” Before Since Since Since Since Since March 14 March 14 May 4 May 11 May 252 Jun 82 Partial ope
Slide 10: Q1 2020 Highlights
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Slide 11: Operational results in Q1 2020
14 05 2020 Operational results in Q1 2020 +19.7% 1,555 €11.72 NOI vs Q1 2019 +43% +75% GAV1 EPRA NAV p.s.2 EBITDA EPRA Earnings p.s. RESULTS +2.7% vs Q1 2019 vs Q1 2019 +5% +2.2% LfL NOI vs Q1 2019 vs 31 Mar 2019 vs 31 Dec 2019 89 Mn Outperforming the +9% 96% Avg. Stay Spanish market Rent uplift Occ
Slide 12: Corporate results in Q1 2020
14 05 2020 Corporate results in Q1 2020 3rd SBB Net LTV €55 Mn dividend 1 c. €200 Mn liquidity 35% programme €0.63 p.s. Expenses covered CORPORATE maintained Avg. cost of debt Dividend paid over the next 4 years 5% share capital 2.1% 100% AENOR Univesal 100% +20% recommendations of the Accesibility
Slide 13: Lar España performance
14 05 2020 Lar España performance Solid business metrics to overcome the current situation High-quality & 60% contracts with c. €200 Mn liquidity: No significant diversified tenants have Expenses covered maturities in the tenant base. maturities over the next 4 next two years Effort rate of 9.5%1 be
Slide 14: Q1 2020 Financials & ESG
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Slide 15: Financial key figures
14 05 2020 01 Company Description Financial key figures delivered in Q1 2020 15 €24.1 Mn +24.3% Assets GRI vs 2019 €1,555 Mn €17.1 Mn +42.7% €1,002.8 Mn €12.5 Mn GAV1 EBITDA vs 2019 EPRA NAV EPRA Earnings 578,464 €721.2 Mn 2.1% €11.72 €0.14 GLA sqm Financial debt Cost of Debt EPRA NAV per share2 EPR
Slide 16: Retail performance
14 05 2020 Retail performance delivered in Q1 2020 Operating results Commercial activity +2.6% (8.6)% +19.5% +19.7% Non-recoverable €1.9 Mn 7,668 sqm Minimum GRI NOI Negotiated rent Rotated area guaranteed rent1 costs1 +1.1% +2.7% 96% 32 +9% LfL GRI1 LfL NOI1 % Occupancy2 Operations Rent uplift 1. E
Slide 17: Asset valuation
14 05 2020 Asset valuation Our assets make the difference in each of their locations € Mn Portfolio Value 1,538 1,536 1,555 ▪ A resilient portfolio of dominant shopping 161 180 centres in attractive catchment areas 1,275 ▪ Cherry-picked portfolio, assets carefully analysed and selected without buyin
Slide 18: Consolidated Income Statement (€ Millions)
14 05 2020 Consolidated Income Statement (€ Millions) Q1 2020 Q1 2019 Chg% Recurring Q1 2020/19 Recurring Non-Recurring Total Recurring Non-Recurring Total Rental Income 24.1 - 24.1 19.4 - 19.4 +24.3% Other Income 0.8 - 0.8 0.5 - 0.5 Personnel expenses (0.1) - (0.1) (0.1) - (0.1) Other expenses (7.4
Slide 19: Financial pillars and liquidity
14 05 2020 Financial pillars and liquidity No significant maturities in the next two years Expenses covered over Debt Structure and As at 31.03.2020 the next 4 years Amortization Profile € Mn € Mn Gross Net €140 Mn €581.2 Mn financial debt financial debt c.200 Senior Secured Bond Bank Debt €721.2 Mn
Slide 20: Capacity to maintain the planned dividend payment schedule
14 05 2020 Capacity to maintain the planned dividend payment schedule Following a detailed liquidity analysis +€5 Mn vs 2018 Among the leading Spanish listed companies in terms of direct +111% €0.63 ps 2 shareholder remuneration CAGR1 Cash dividend €0.54 ps €0.49 ps 2019 dividend paid on April 16th
Slide 21: Capacity to maintain the current share Buy-Back Programme
14 05 2020 Similarly, capacity to maintain the current share Buy-Back Programme 51.7% of targeted share capital already acquired The purpose of the Buy-Back Programme is the further reduction of Lar España’s share capital through the amortization of shares 1st 2nd 3rd Share Buy-Back Programme Share
Slide 22: Exemplary property management and good governance
14 05 2020 Exemplary property management and good governance Most stringent environmental, social & corporate governance standards AGENDA 2030 AND LONG TERM VALUE CREATION SUSTAINABLE DEVELOPMENT GOALS Ahead of the requirements set out in the new Good Governance Code for The UN Global Compact recomm
Slide 23: Q1 2020 Differentiated Business Model
04 Q1 2020 DIFFERENTIATED BUSINESS MODEL _
Slide 24: Well positioned for the new times with new assets
14 05 2020 Well positioned for the new times with new assets Safe and integrated spaces SECTOR NEEDS LAR ESPAÑA’S OFFERING 1 Get clients to go to shopping centres Dominant assets in its catchment areas 2 Assets that guarantee all health and hygiene safety measures and social distancing Large areas t
Slide 25: Consistently outperform the Spanish market
14 05 2020 Consistently outperform the Spanish market Seeketing and customer journey at the core of the strategy to increase dwell time and sales STRONG JANUARY & FEBRUARY OUTPERFORMING THE SPANISH MARKET Increasing dwell time in our SCs 89 min +2% Sales Jan & Feb 2020 1 Footfall Jan & Feb 2020 AVG.
Slide 26: 60% of contracts with tenants have maturities beyond 2024
14 05 2020 60% of contracts with tenants have maturities beyond 2024 Solid, diversified and high-quality tenant base with long-term relationships Solid ratios convey comfort to our retailers Yearly maturity of contracts (end of contract) % c.60% 9.5% 3.4y Effort rate1 96% 89 min contracts WAULT (inc
Slide 27: Capex programme nearly completed before health crisis
14 05 2020 Capex programme nearly completed before health crisis Shopping centres ready for re-opening with the latest retail trends Shopping centres ready to re-open Financial prudence in capex ▪ Capex programme almost ▪ Remaining capex programme completed before the health has been reduced to a cr
Slide 28: Anec Blau ready to open
14 05 2020 Anec Blau ready to open Refurbishment completed to be the leading fashion, leisure and dining hub in the region RENTAL INCOME NEW FASHION SQUARE NEW FOOD COURT, INCREASE FULLY REFURBISHED LEISURE AREA & GARDEN Inditex c.€2 Mn Expanding and renewing the Expected rental image 20 new restaur
Slide 29: Lagoh is ready to show full capacity in 2020
14 05 2020 Lagoh is ready to show full capacity in 2020 Expected to ramp-up when it reaches its second semester fully opened Opened in Ready to contribute to rental income with its full second semester opened September 2019 €17 Mn Full Top tier-1 The sector & Annual topped-up net rent occupancy bran
Slide 30: How are we going to take care of customers?
14 05 2020 How are we going to take care of customers? A really safe portfolio of assets Gentalia, operator of our shopping centres, together with SGS have developed a verification certificate of all safety and hygiene measures against COVID-19 ▪ Complete mist disinfection for reopening. ▪ Single ac
Slide 31: How are we going to attract customers and what we will offer them
14 05 2020 How are we going to attract customers and what we will offer them in the SC? A really attractive portfolio of assets ATTRACTION ▪ Social networks and web information campaign ▪ Coordinate marketing and reopening with ▪ Generate trust and reasons to go to the SC, call- retailers to-action
Slide 32: Q1 2020 Remarks & Questions
05 Q1 2020 REMARKS & QUESTIONS _
Slide 33: Closing remarks
14 05 2020 Closing remarks Lar España is prepared for this new times No significant maturities AGM celebrated with c. €200 Mn liquidity: in the next two years and health and security Dividend maintained SBB maintained Expenses covered over Comfortable level of measures the next 4 years net LTV at 35
Slide 34: Q&A: Maximum transparency, no unanswered questions
14 05 2020 Q&A: Maximum transparency, no unanswered questions MEASURES ADOPTED ▪ Health and safety measures adopted for employees, clients and suppliers since the beginning of the health crisis. ▪ Continuous and fluid dialogue with all tenants of different assets. ▪ Common operating costs have been
Slide 35: Disclaimer
14 05 2020 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 do
Slide 36: Follow us
Follow us www.larespana.com info@laespana.com Lar España Real Estate SOCIMI Lar España App
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