LAR ESPAÑA: 4Q’20 RESULTS (ANÁLISIS BANCO SABADELL)
4Q'20 vs. 4Q'19 Results:GRI: € 21.9 M
Recurring EBITDA: € 20.9 M
Net Profit (EPRA): € 11.6 M
FY2020 vs. FY2019 Results:
GRI: € 93.3 M (+15.0% vs. +17.0% BS(e));
Recurring EBITDA: € 76.7 M (+29.4% vs. +22.5% BS(e));
Net Profit (EPRA): € 49.9 M (-38.2% vs. -36.4% BS(e));
The 4Q’20 results are basically in line with expectations, slightly below in rental revenues but above in recurring EBITDA thanks to lower net costs. The accumulated level for the year still shows significant growth in rents from the inclusion in the scope of consolidation of the Lagoh shopping centre in Seville. Adjusted for this effect, rental revenues and NOI grew +1.8% and +0.8%, respectively, with a highly resilient portfolio. The tenancy ratio ended the year at 96% (no changes vs. Sep’20).
As we saw in past quarters, part of reported revenues would not have been collected, but rather deferred, and thus the rental revenues figure does not coincide with cash inflow. The company estimates € 22 M of incentives and deferrals for the full year (which should be collected in the next few years).
The asset appraisal shows a -4.9% drop in value LfL for the full year, and thus 2H’20 has fallen less than 1H’20 (-2.9%). The appraisal is in line with expectations and is better than we expect on the retail side for other Spanish peers, such as Merlin (where we expect -8%) or Unibail, which also reported -8% LfL in its Spanish assets. NAV ended the year at € 10.42/sh. (vs. € 10.24/sh. BS(e)). BUY. T.P. € 6.08/sh. (upside +27.06%).
Lar Espana Real Estate SOCIMI SA is a Spain-based company primarily engaged in the operation of retail Real Estate Investment Trusts (REITs). The Company specializes in acquiring, managing and renting real estate assets within the Spanish market. Its business activities are divided into three segments: Shopping Centers, Offices, as well as Logistics. The Shopping Centers area is responsible for operation of a number of shopping malls, namely Txingudi, Las Huertas, Albacenter, Anec Blau, Hiper Albacenter, and Nuevo Alisal, among others. The Offices segment invests in office properties, such as Arturo Soria, Cardenal Marcelo Spinola, Egeo and Eloy Gonzalo. The Logistics division focuses on managing logistics warehouses, including Alovera I and Alovera II. The Company also owns a plot for residential properties development. It is a parent of a number of entities, such as Lar Espana Inversion Logistica SA, Gran Via Centrum Holdings SAU, Global Noctua and Puerta Maritima Ondara.
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