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

Corporate www.larespana.com Presentation June 2017

2 Snapshot Shareholder Structure  First IPO of a Spanish REIT listed on the Spanish Stock Exchange 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 Franklin Templeton Institutional; 15.0%  Lar España is a leader in retail, due to the size of the portfolio and Other investors; Columbia the quality of the assets as well as the capacity and quality of its 47.8% Threadneedle; management 5.0% Blackrock Inc.; 3.7% Management; 3.5%  A clear investment opportunity in a unique shopping experience platform Source: CNMV

3 Governance Structure Independent and experienced Board: Critical Activities internalized 5 independent directors (5 out of 7) José Luis del Valle Roger Cooke Pedro Luis Uriarte Sergio Criado Jon Armentia Susana Guerrero Chairman and Independent Independent CFO Corporate Legal Independent Director Director Director Manager Manager Isabel Aguilera Laurent Luccioni Miguel Pereda Hernán San Pedro José Díaz Morales Alec Emmott Independent PIMCO Grupo Lar Head of Investor Interim Independent Director director Relations Internal Audit Juan Gomez-Acebo Susana Guerrero Secretary Vice-secretary Non Member Non Member

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 12% 6% 5% with excellent access and visibility GAV GAV GAV 77% 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 38% 1 Net LTV 38% CAPITAL Diversif 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 1. Net LTV calculated as at March 2017 taking into account new acquisitions in Q1 2017

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 #1 Controlling Stake  economies of scale #2 Investment Volumes  #2 GLA Acquired 

7 Non-Retail Assets Other r assets ts 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 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 ( € Bn) EPRA Annualized Net Rent ( € Mn) Logistics Residential 5% Logistics 8% 6% Offices Offices 6% 12% € 1.4 1 € 72.1 2 Retail 86% Retail 77% Occupancy Rate EPRA Topped-up NIY 7.3% 6.1% 100.0% 94.2% 2 85.5% 5.9% 3 TOTAL 93.8% 3 LAR TOTAL ESPAÑA 4.2% 2 LAR EPRA ESPAÑA Topped-up OCC. RATE NIY Retail Offices Logistics Retail Offices Logistics 1. Total GAV = Asset valuation as of 31 December 2016 + new acquisitions in Q1 2017 + capex Q1 2017 2. EPRA net annualized rent as of 31 March 2017 3. Marcelo Spínola’s EPRA Topped-Up NIY and 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% 125 125 1,400 6.10% 127 1,275 259 46 843 2014 2015 2016 Value Change by Asset Class Since Acquisition LfL 2016 vs 2015 15.8% Total 12.3% 13.5% Retail Acquisition & Acquisitions Revaluation GAV 2016 Acquisitions Est GAV 11.6% Revaluation 2016 2016 2017 Q1 2017 20.7% 2014-15 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 Develo lopments ts 96 14 Exis isti ting Inco come Generatin ting Assets ts c.13 4 78 2 4 New 9 acquisitions made in 2017 63 not considered Annualised Reversionary Reversionary Marcelo Reversionary Vidanova Parc 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 (Vidanova Parc 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 501,505 sqm, 850 shops, c.53 Mn visitors, 16 cities Top 10 players own 159 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 37,785 Peer 1 #2 GLA Acquired Lar España + Dev 1 15 33,434 501,505 Synerg rgies in procurement Portfolio Size gives us Peer 2 15 29,501 of services benefits in: Peer 3 69 4,857 Global Negotia iatio ions with Peer 4 14 23,138 tenants Peer 5 6 46,617 Present in most regions of the Peer 6 Spanish territory 9 28,395 Peer 7 3 83,293 Millions of physical and digital Peer 8 7 30,668 customer contacts Peer 9 7 30,429 Attraction for the development of new Total 3,344,913 159 21,037 commercial formulas Source rce : : AECC 2014, CBRE 2016 & Grupo Lar as of March 2017 (all reported figures are estimates) 1. Lar España Includes development projects (Palmas Altas and Vidanova Parc)

12 Operating assets backed by development projects Rent Genera rating ing Asset ets 2 Ongoing ing Develo elopment pments Capex by asset Offices 5% € 6.5 Mn Retail 21% Development 74% +12% 22 22 € 18 Mn 60% GLA signed ed Rents growth from Operatio ions in Q1 2017 Expec ected ed annual l rental 20% under negot otiation iation renewa wals ls/ relo locatio ions income e in devel elopmen ents in in 1 st st construction ruction phase e 13.3 Mn Mn NOI +3.4% % LfL YoY complet leted ed 1 Visits in Q1 2017 Stable le Sales es in Q1 2017 New tenants signed in in in 10.9% .9% Portfolio lio Effort rate e Palmas Altas: : 7.173 sqm 1 Plot already urbanized and ready for construction