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, 2021 LAR España Real Estate SOCIMI, S.A. was awarded the European Public Real Estate Association (EPRA) GOLD Awards 2021, 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 seventh 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 fourth 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 successfully issued two unsecured senior green bonds, amounting to a total of EUR 700 million. As part of this issue, ISS-ESG conducted an independent review of the company’s sustainability strategy, based on the 2021 Green Bond Principles issued by the ICMA (International Capital Markets Association).

The rating agency Fitch also assigned an investment grade or BBB rating to both Lar España and its green bond issuances. The issuances were led by Morgan Stanley Europe, acting as global coordinator and advising on the sustainable structure of the matter.

The bonds were ultimately placed with qualified investors and are listed on the Euro MTF market of the Luxembourg Stock Exchange. Lar España used the funds to refinance all or part of a selection of real estate assets, in order to reduce carbon emissions by ensuring that these assets are environmentally friendly.

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
FY2021
FY2020
Income Statement
Revenue*
79,107
96,890
EBITDA
50,691
69,701
EBITDA margin

64%

72%

EBIT
49,386
-30,955
Net Profit
25,782
-53,668
Balance Sheet
Total Assets
1,797,682
1,678,831
Equity
855,387
859,650
Cash Flows
Cash flows from (used in) operating activities
32,069
8,538
Cash flows used in investing activities
47,469
-24,582
Cash flows from financing activities
97,007
-7,570
Cash and cash equivalents at the end of the period
313,199
134,028
Other Financial Indicators
FY2021
FY2020
Working Capital (€'000)
203,914
205,644
Liquidity Ratio
2.4
4.1
Solvency Ratio
1.1
1.1
Operating indicators
FY2021
FY2020
Total Gross Lettable Area (GLA) (m²)
551,326
578,370
EPRA Indicators
31/12/2021
(Euro Thousands)/%
31/12/2020
(Euro Thousands)/%
Adjusted EPRA Earnings
23,936
49,902
EPRA NTA**
869,501
881,376
EPRA NTA per Share
10.41***
10.42***
EPRA NRV**
895,774
881,376
EPRA NDV**
855,387
859,650
EPRA Net Initial Yield (NIY)
5.7%
5.7%
EPRA "topped-up" NIY
5.9%
5.9%
EPRA Vacancy Rate
4.8%
4.5%
EPRA Cost ratio pre performance fee (including direct vacancy costs)
24.3****
15.7****
EPRA Cost ratio pre performance fee (excluding direct vacancy costs)
21.4****
13.5****
Share information (€)
FY2021
FY2020
Price at the end of the period
5.12
4.67
Performance during the period (%)
9.6%
-34.2%
Maximum price for the period
5.74
7.43
Minimum price for the period
4.43
3.06
Average price for the period
5.17
4.77

Consolidated statements and under IFRS reporting standards
* This amount includes Revenues and Other income
** New EPRA ratios calculated according to the latest modifications included in the EPRA “Best Practices and Recommendations” document.
*** 2021: When analyzing the evolution of this measure it is important to take into account the dividend paid in Q2 2021 (0.31 €/share). 2020: When analyzing this measure it is important to take into account the dividend paid in Q2 2020 (0.63€/share).
**** Ratio calculated considering recurring expenses
.

BOARD OF DIRECTORS

5 Independent Directors
Nomination and Remuneration Committee
Mr. José Luis del Valle Doblado (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. Juan Gómez-Acebo Sáenz de Heredia (Secretary)
Ms. Leticia Iglesias Herraiz  
   
Non-Independent Director Audit and Control Committee
Mr. Miguel Pereda Espeso Ms. Leticia Iglesias Herraiz (Chairwoman)
  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