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 24th September 2015, the Company received the ‘Gold Award‘ from the European Public Real Estate Association (EPRA) in recognition of the quality of the information provided by Lar España within the Index standards framework. It has become the first Spanish SOCIMI to receive this award, the most prestigious 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 40-year track record of international experience. Grupo Lar’s Platform in Spain amounts to 157 employees 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 7 countries with on-shore teams in: Spain, Poland, Romania, Mexico, Brazil, Colombia and Peru. 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
FY2018
FY2017
Income Statement
Revenue
77,841
77,600
EBITDA
54,465
46,904
EBITDA margin
70%
60%
EBIT
124,629
148,447
Net Profit
129,308
135,606
Balance Sheet
Total Assets
1,681,603
1,554,352
Equity
1,008,498
918,219
Cash Flows
Cash flows from (used in) operating activities
18,756
48,688
Cash flows used in investing activities
139,536
-129,142
Cash flows from financing activities
-15,663
97,945
Cash and cash equivalents at the end of the period
191,328
45,617
Other Financial Indicators
FY2018
FY2017
Working Capital (€'000)
223,524
115,198
Liquidity Ratio
4.3
2.1
Solvency Ratio
1.2
1.1
Operating indicators
FY2018
FY2017
Total Gross Lettable Area (GLA) (m²)
622,643
899,195
EPRA Indicators
31/12/2018
(Euro Thousands)/%
31/12/2017
(Euro Thousands)/%
Adjusted EPRA Earnings
29,240
36,579
EPRA NAV
1,036,683
951,489
EPRA NAV per Share
11.14*
10.27*
EPRA NNAV
1,013,644
936,687
EPRA Net Initial Yield (NIY)
5.2%
5.5%
EPRA "topped-up" NIY
5.3%
5.6%
EPRA Vacancy Rate
6.8%
4.9%
EPRA Cost ratio pre performance fee (including direct vacancy costs)
27.5**
29.1**
EPRA Cost ratio pre performance fee (excluding direct vacancy costs)
24.0**
25.5**
Share information (€)
FY2018
FY2017
Price at the end of the period
7.45
8.89
Performance during the period (%)
-16.2%
26.2%
Maximum price for the period
9.87
8.90
Minimum price for the period
7.27
6.83
Average price for the period
8.91
7.87

Consolidated statements and under IFRS reporting standards
* 2017: When analyzing this measure it is important to take into account the shareholders remuneration amounting 30,000 thousand euros in Q2 2017 (0.33€/share), relating to 2016 financial year. 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 2017, the ratios would be 26.0% and 22.4% respectively. 2018: 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)

Juan Gómez-Acebo  
Susana Guerrero