Corporate www.larespana.com Presentation March 2017 2 Snapshot - PowerPoint PPT Presentation

Corporate www.larespana.com Presentation March 2017

2 Snapshot Shareholder Structure  First IPO of a Spanish REIT listed on the Spanish Stock Exchange Other investors; 39.9% 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% Manager, Investor and Developer with a 40 year track record of international experience Credit Suisse Group; 4.3% Franklin  Lar España is a leader in retail, due to the size of the portfolio and Templeton the quality of the assets as well as the capacity and quality of its Institutional; Management; 15.0% management 3.5% Bestinver Gestion; Columbia Blackrock Inc.; 4.2% Threadneedle; 3.1% 5.0%  A clear investment opportunity in a unique shopping experience platform Source: CNMV

3 Governance Structure Independent and experienced Board: Critical Activities internalized 4 independent directors (4 out of 5) Sergio Criado Jon Armentia Susana Guerrero José Luis del Valle Roger Cooke Pedro Luis Uriarte Chairman and Independent Independent CFO Corporate Legal Manager Manager Independent Director Director Director Juan Gomez-Acebo José Díaz Morales Alec Emmott Miguel Pereda Hernán San Pedro Independent Grupo Lar Secretary Head of Investor Interim Internal Audit Director Non Member Relations

4 Retail platform + non-retail assets MALL Offices Logistics Residential Retail Offices in consolidated Focus on logistic Development of first homes locations of Madrid and properties on a selective in niche markets without Top retail player Barcelona with good basis with low rents, low zoning risk, limited supply connections / public capital values and high and clear demand Leading Shopping Centres transport yields in their catchment area Recurrent activity with Retail parks with proven selective rotation demand and profitability potential Good quality properties 14% 6% 5% with excellent access and visibility GAV GAV GAV 75% GAV

5 Lar España Strategy Special focus on under managed assets s First t IPO of a Spanish sh REIT listed on the Spanish Stock Real Estate Manager with objective of Exchanges MANAGEMENT implementing an Activ ive Management t Strategy in order to deliver “Alpha” >100 00 Real l Estate te Company’s business ss strategy is experts ts contributing to acquire primarily retail to Lar España’s value delivery property with high return COMPANY potential for rental purposes 33% Net LTV CAPITAL Diver ersif sific ication tion of sources of funding Focused on creating both including bank and debt capital markets STRUCTURE sustaina inable le income and strong capital ital returns for shareholders Highly compelling 2.2% cost t of debt Back k loaded debt amortization profile

6 Retail Assets Focus on shopping centres res and retail ail 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 an additional factor in some assets  Unique platform Strength of the portfolio A unique platform, which provides an attractive position Strength based on: with retailers and the opportunity to consolidate existing Size of the portfolio (top-3)  economies of scale Average size of the centres (2 nd in Spain)  Quality and attractiveness of assets 

7 Non-Retail Assets Opport rtunistic c appro roach ach to other r assets ets 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 complement to platform in Spain  retail All assets ts Development Asset Rotation Using experience and capacity of development as a Rotation of assets held for at least three years based on differentiating element to achieve better returns with value generation and returns moderate risk

8 Main Figures GAV ( € Mn) EPRA Annualized Net Rent ( € Mn) Logistics Logistics 9% Residential 5% 6% Offices 6% Offices 14% € 1,275 1 € 62.9 Retail Retail Dev 85% 5% Retail 70% Occupancy Rate EPRA Topped-up NIY 7.2% 100.0% 93.7% 93.5% 2 5.9% 87.2% 2 5.8% 2 TOTAL TOTAL LAR 4.3% LAR 2 ESPAÑA ESPAÑA EPRA OCC. RATE Topped-up NIY Retail Offices Logistics Retail Offices Logistics 1. Total GAV = Valuation of assets as of 31December 2. Marcelo Spínola’s EPRA Topped-Up NIY and EPRA Occupancy rate is not calculated due to the lack of representativeness. To calculate the Topped-up NIY for the total portfolio we have excluded the data from Marcelo Spínola.

9 Valuation Valuation Bridge Since Acquisition Portfolio Value evolution and LfL Change € Mn € Mn Portfolio Value LfL Value Change 12.30% 1,275 126 259 6.10% 48 851 2014 2015 2016 Value Change by Asset Class Since Acquisition LfL 2016 vs 2015 15.8% Total 12.3% 13.5% Retail 11.6% Acquisitions Revaluation GAV 2016 2016 2016 20.7% Logistic 8.6% Revaluation Acquisitions 21.7% Office 14.2% 1 Market Value determined by JLL and C&W as of 31 December 2016.

10 Significant potential upside in rents from reversion potential and developments project – For illustrative purposes – Estimate ated Future re c.110 Investm tments nts Exis isti ting Deve velo lopmen ents ts 96 14 Exis isti ting Inco come Generatin ting Assets ts c.13 4 78 2 4 9 63 Annualised Reversionary Reversionary Marcelo Reversionary Sagunto Palmas Altas Potential Firepower Potential 3 3 net rent potential – potential – Spínola Office net rent annualized Invested at an annualized Market rent Vacancy Refurbish. net rent average of 6% 4 net rent with 1 Reduction current growth 2 platform 1. Illustrative potential additional rent in 2016 calculated as the difference between the market net rent estimated by the Company ’s appraisal done by Cushman & JLL, as part of their valuation exercise and the annualized net rent obtained by the Company i n 2016. Difference applied only to the current EPRA occupancy rate, considering the occupancy rate of the Company's properties as of 31 st December 2016. 2. Illustrative potential additional rent in 2016 calculated, assuming the full occupancy of the Company's properties, as the appli cation of the market net rent estimated by the Company’s appraisers as part of their valuation exercise with respect to the v acant spaces in each of the Company's properties. Full occupancy has been estimated at 97% for Shopping Centres given structural vacancy and 100% for the remaining portfolio 3. Potential rent that may be derived from certain of the Company's assets under development (Sagunto and Palmas Altas) based on the announced yield at the moment of their respective acquisition (9.2% and 8.0% respectively) as applied to the acquisition price and building capex for each asset 4. Estimated Rental Income assuming an average yield of assets acquired @ 6%

11 The value of a retail platform 470,000 sqm, 850 shops, c.52 Mn visitors, 13 cities Top 10 players own 167 shopping centres which represent c.25% of the total Spanish market Retail Leaders in Spain #1 Contro rolli ling Stak ake Total Assets GLA per Asset Owned GLA Estimate No. Assets (sqm) #2 Investment Volumes 14 38,985 Peer 1 #3 GLA Acquired Peer 2 15 30,743 Synerg rgies in procurement Portfolio Size gives us Lar España + Dev 1 12 37,538 450,451 of services benefits in: Peer 3 7 57,100 Global Negotia iatio ions with Peer 4 15 23,848 tenants Peer 5 69 4,857 Present in most regions of the Peer 6 Spanish territory 10 32,742 Peer 7 3 98,960 Millions of physical and digital Peer 8 8 31,710 customer contacts Peer 9 14 14,499 Attraction for the development of new Total 3,360,899 167 21,742 commercial formulas Source rce : : AECC 2014, CBRE 2015 & Grupo Lar as of July 2016 (all reported figures are estimates) 1. Lar España Includes development projects (Palmas Altas and Vidanova Parc)

New sources of value – Retail Developments 12 c.60% c.25% GLA signed and pre-signed Pre-agreement € 14 Mn € 4 Mn Expected annual rental Expected annual rental income income 100,000 sqm 44,252 sqm GLA Retail and family leisure space