Helios Re Socimi, S.a. · BME:SCHLR
Helios Re Socimi — Lar España Real Estate SOCIMI — Investor Presentation (September 2017)
22 slides from Helios Re Socimi's investor presentation, September 2017
Slide 1: Corporate Presentation September 2017
Corporate www.larespana.com Presentation September 2017
Slide 2: Snapshot
2 Snapshot Shareholder Structure First IPO of a Spanish REIT listed on the Spanish Stock Exchange PIMCO; 20.0% Focused on creating both sustainable income and strong capital returns for shareholders Brandes Investment Lar España is managed by Grupo Lar, private Real Estate Asset Partners; 5.0%
Slide 3: Board of Directors & Critical Activities
3 Board of Directors & Critical Activities Independent and experienced Board: Critical Activities internalized 5 independent directors (5 out of 7) José Luis del Valle Roger Cooke Pedro Luis Uriarte Sergio Criado Jon Armentia Susana Guerrero Chairman and Independent Independent CFO Corporate Legal I
Slide 4: Retail platform + non-retail assets
4 Retail platform + non-retail assets MALL Retail Offices Logistics Residential Top retail player Offices in consolidated Focus on logistic Development of first homes locations of Madrid and properties on a selective in niche markets without Leading Shopping Centres Barcelona with good basis with lo
Slide 5: Lar España Strategy
5 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 MANAGEMENT implementing an Active Management Strategy in order to deliver “Alpha” >100 Real Estate Company’s business strategy is to acq
Slide 6: Retail Assets
6 Retail Assets 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 as
Slide 7: Non-Retail Assets
7 Non-Retail Assets 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 main markets as a good compleme
Slide 8: Portfolio at a glance
8 Portfolio at a glance GAV (€Bn) EPRA Annualized Net Rent (€Mn) Logistics Residential 5% Logistics 8% Offices 6% 7% Offices 12% Retail Dev €1.451 €72.32 Retail 5% 85% Retail 72% EPRA Topped-up NIY Occupancy Rate 7.2% 5.9% 100.0% 94.3% 89.5% 3 4.1% 3 5.8%3 TOTAL 94.3%3 LAR TOTAL ESPAÑA LAR EPRA ESPA
Slide 9: Strong valuation performance in all asset classes
9 Strong valuation performance in all asset classes Total Portfolio Retail Portfolio Value evolution € Mn Portfolio Value 19.5% Valuation growth 16.0% 15.2% CAGR1: 9.7% 10.2% 1,508 H1 LfL 2017/16 Since Acquisition H1 LfL 2017/16 Since Acquisition 1,275 Offices Logistics Developments 899 40.0 27.1 31
Slide 10: Significant potential upside in rents from reversion potential and developments project
10 Significant potential upside in rents from reversion potential and developments project – For illustrative purposes – Estimated Future Existing Developments Investments c.110 14 103 Existing Income Generating Assets 4 2 85 c.6 5 6 72 Annualised net Reversionary Reversionary Marcelo Spínola Revers
Slide 11: The value of a retail platform
11 The value of a retail platform 501,505 sqm, 850 shops, c.53 Mn visitors, 16 cities Top 10 players own 159 shopping centres which represent c.25% of the total Spanish market Retail Leaders in Spain #1 Controlling Stake Total Assets GLA per Asset #2 Investment Volumes Owned GLA Estimate No. Assets
Slide 12: On track in the delivery of our developments
12 On track in the delivery of our developments After phase 1 & 2, Construction phase to Construction licenses approved to start start on August 2017 works in Palmas Altas 11,300 New sqm leased c.85% +2 +41% +5 GLA signed & committed 1 Operations signed GLA signed and committed1 Operations signed in
Slide 13: Non-retail assets – Lagasca 99
13 Non-retail assets – Lagasca 99 Q2 2018 Estimated delivery date Construction works on schedule 100% structure completed Façade and rest of the building on In process progress on schedule High interest from national and international investors Financing of 100% of Price c.11,000 €/sqm construction
Slide 14: Financial Results – H1 2017
Financial Results – H1 2017 Lagasca 99 Residential Development, Madrid
Slide 15: Successful & Strong Key Facts delivered in H1 2017
15 Successful & Strong Key Facts delivered in H1 2017 +38% vs 1.448 Mn GAV 1 H1 2016 +50% vs EPRA NAV 65 Mn EBT H1 2016 €9.28 EPRA NAV 859.2 per share (€ Mn) Rental +40% vs EPRA EPRA 37.5 Mn Income H1 2016 5.8% “topped-up” NIY 5.6% Net Initial Yield €0.33 dividend EPRA 30 Mn Dividend 2016 per share
Slide 16: Consolidated Income Statement (Thousands of €)
16 Consolidated Income Statement (Thousands of €) Recurrent H1 2017 H1 2016 1H17/1H16 Recurring Non-Recurring Total Recurring Non-Recurring1 Total Rental Income 37,547 - 37,547 +40.0% 26,872 - 26,872 Other income 1,002 - 1,002 794 - 7,772 Property Operating Expenses (6,303) - (6,303) (4,966) - (4,96
Slide 17: Solid Company performance in H1 2017
17 Solid Company performance in H1 2017 37.5 Mn Revenues +40% vs H1 2016 65.0 Mn EBT (Net Profit) +50% vs H1 2016 01 Solid H1 2017 Results and Balance Sheet 17.0 Mn EPRA Earnings +49% vs H1 2016 859.2 Mn EPRA NAV €9.28 p.s.1 39% net LTV; 590.7 Mn Gross Debt 2.18% cost of debt Retail NOI lfl improvem
Slide 18: Creating value through wise debt management
Financing during H1 2017 18 Creating value through wise debt management €139 Mn of financing @ avge fixed rate < 2% Disciplined and prudent financing targeted at creating value Besides, In April 2017, refinancing of €20Mn in Lagasca99 € Mn & Financing of 100% of construction costs agreed Better
Slide 19: Lar España’s Debt Profile
19 Lar España’s Debt Profile Back-loaded Amortization Profile €590.7Mn Key Figures of the financing 1 € Mn €140Mn Senior Secured Bond €451.3Mn Bank Debt 446.6 140 39% Net Loan to Value (LTV) 90.9 307.1 35.6 9.6 2.4 5.2 2.18% Average Cost of Debt2 1 Year 2 Years 3 Years 4 Years 5 Years > 5 Years -42
Slide 20: ESG - Creating value
20 ESG - Creating value Environment Social Capital Assets (Portfolio) Corporate Governance Positive effect on the People’s talent forms the Our properties have a positive Having a positive community. cornerstone of the effect on their urban effect on the environment Creating employment : economic
Slide 21: Closing Remarks
21 Closing Remarks Positive assets evolution during 2nd Quarter of 2017 Active Management keeps supporting NOI increase in Retail assets Last Asset valuation appraisal yielded a LfL growth of 4.5%, up to €1.45 Bn New accretive acquisitions of €112.9 Mn in 1H 2017 pushes annualised net rent b
Slide 22: Contact us
Contact us Corporate www.larespana.com Presentation Lar España Real Estate SOCIMI
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