Market: Madrid Symbol: LRE ISIN: ES0105015012 Industry: Real Estate

Company presentation

LAR ESPAÑA began to operate as a listed company on the Spanish Stock Exchanges on 5 March 2014, as a SOCIMI (Spanish REIT) with the aspiration to become a reference for asset management in Europe. Lar España’s aim is to generate high returns for its shareholders via its business strategy of owning, operating and renting its Real Estate portfolio, which is mainly focused on Commercial Property Assets in Spain.

On 4th June 2015, Lar España Real Estate SOCIMI was included on the FTSA EPRA/NAREIT Global Index, a select global index designed to showcase the general trends of listed Real Estate companies around the world.

On September 7, 2020 LAR España Real Estate SOCIMI, S.A. was awarded the European Public Real Estate Association (EPRA) GOLD Awards 2020, in recognition of the quality and transparency of financial information and sustainability reports (ESG). Regarding the recognition of the quality and transparency of financial information, it is the sixth consecutive year that the company has been awarded the EPRA Gold Award, while on the other hand, the EPRA Gold Award in terms of sustainability, related to the quality of the reports Sustainability (ESG) is the third consecutive year that Lar España has been awarded the EPRA Gold Award. These are the most recognized awards in the real estate sector.

Lar España is investing following a value added approach based on an active management strategy. It is externally managed by Grupo Lar, a family owned, Spanish private Real Estate developer, Investor and Asset Manager with a track record of more than 50 years of international experience. Grupo Lar’s Platform in Spain amounts to 274 professionals out of which more than half are dedicated to Lar España.

The manager is a Spanish company, which combines its investment and development skills with an extended experience in property asset management. Grupo Lar is a dynamic and flexible firm with a great understanding of Spanish and international markets, having successfully confronted the various growth and crises cycles of the industry. Grupo Lar is present in 6 countries with on-shore teams in: Spain, Mexico, Peru, Brazil, Poland and Colombia. Currently, Grupo Lar has a wide range of products and markets under its portfolio allowing it to cater for the different demands the market may present it with. The company is active in primary residence, secondary residence, business parks and offices, industrial parks, retail parks.



Key figures

Financial Indicators, In thousands of Euros
FY2019
FY2018
Income Statement
Revenue
81,128
77,841
EBITDA
59,260
54,465
EBITDA margin

73%

70%
EBIT
99,297
124,629
Net Profit
80,730
129,308
Balance Sheet
Total Assets
1,753,252
1,681,603
Equity
982,780
1,008,498
Cash Flows
Cash flows from (used in) operating activities
16,797
19,102
Cash flows used in investing activities
-53,114
139,536
Cash flows from financing activities
5,613
-16,009
Cash and cash equivalents at the end of the period
160,527
191,328
Other Financial Indicators
FY2019
FY2018
Working Capital (€'000)
196,985
223,524
Liquidity Ratio
3.3
4.3
Solvency Ratio
1.1
1.2
Operating indicators
FY2019
FY2018
Total Gross Lettable Area (GLA) (m²)
579,286
622,643
EPRA Indicators
31/12/2019
(Euro Thousands)/%
31/12/2018
(Euro Thousands)/%
Adjusted EPRA Earnings
40,419
29,240
EPRA NAV
1,003,760
1,036,683
EPRA NAV per Share
11.47*
11.14*
EPRA NNAV
982,780
1,013,644
EPRA Net Initial Yield (NIY)
5.6%
5.2%
EPRA "topped-up" NIY
5.9%
5.3%
EPRA Vacancy Rate
3.5%
6.8%
EPRA Cost ratio pre performance fee (including direct vacancy costs)**
21.9**
27.5
EPRA Cost ratio pre performance fee (excluding direct vacancy costs)**
19.2**
24.0
Share information (€)
FY2019
FY2018
Price at the end of the period
7.10
7.45
Performance during the period (%)
-4.7%
-16.2%
Maximum price for the period
8.55
9.87
Minimum price for the period
6.41
7.27
Average price for the period
7.46
8.91

Consolidated statements and under IFRS reporting standards
* 2019: When analyzing this measure it is important to take into account the dividend paid in Q2 2019 (0.80€/share) 2018: When analyzing this measure it is important to take into account the dividend paid in Q2 2018 (0.49€/share)..
** Excluding costs directly related to development projects, as at 31 December 2019, the ratios would be 19.3% and 16.6% respectively. .
** Ratio calculated considering recurring expenses
.

BOARD OF DIRECTORS

5 Independent Directors
Nomination and Remuneration Committee
Mr. José Luis del Valle Dobaldo (Chairman)
Mr. Roger Maxwell Cooke (Chairman)
Mr. Alec Emmott
Mr. Alec Emmott (Member)
Mr. Roger Maxwell Cooke
Mr. Miguel Pereda Espeso (Member)
Ms. Isabel Aguilera Navarro Mr. Laurent Luccioni (Member)
Ms. Leticia Iglesias Herraiz Mr. Juan Gómez-Acebo Sáenz de Heredia (Secretary)
   
Non-Independent Director Audit and Control Committee
Mr. Miguel Pereda Espeso Ms. Leticia Iglesias Herraiz (Chairwoman)
Mr. Laurent Luccioni Mr. José Luis del Valle Doblado (Member)
  Ms. Isabel Aguilera Navarro (Member)
Secretary of the Board

Mr. Juan Gómez-Acebo Sáenz de Heredia (Secretary)

Mr. Juan Gómez-Acebo  
Ms. Susana Guerrero