Q3 2015 Financial Results 13 th November, 2015 www.larespana.com - PowerPoint PPT Presentation

Q3 2015 Financial Results 13 th November, 2015 www.larespana.com Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015

Q3 2015 Financial Results - Lar España Real Estate Lar España’s presenting team MIGUEL PEREDA Board Member of Lar España and Co-CEO of Grupo Lar SERGIO CRIADO CFO of Lar España JON ARMENTIA Corporate Manager of Lar España JORGE PEREZ DE LEZA Head of European Operations of Grupo Lar JOSE MANUEL LLOVET Head of Retail Operations of Grupo Lar Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 2

Q3 2015 Financial Results - Lar España Real Estate Financial Highlights Accelerating business performance and portfolio growth Strong asset contribution Solid signs of asset value generation and confirmation of consumption improvement +2% Growth in Footfall; +6% in average sales per customer ; +7% in total sales, vs. market (+4%) Rental Income of € 23.5m in 9M 2015 vs. € 14.1m in 1H 2015 € 223m Investment ( ex-Megapark) added to the portfolio throughout the year Accelerating Portfolio Growth since 1H2015 Excellent accretive deals since last capital increase strengthens portfolio’s rent generation: € 393m in assets year to date On track to finish the year with more than 1 Billion Euros of investments Very attractive pipeline of more than € 800m Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 3

Agenda 1 Financial Results Q3 2015 Excellent accretive deals since July’s capital increase 2 3 On track to meet targets / Attractive pipeline ahead Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 4

Q3 2015 Financial Results - Lar España Real Estate Consolidated P&L (IFRS) and Consolidated Balance Sheet (IFRS) Positive financial performance, but still expecting ramp-up phase Consolidated Income Statement (Thousands of Euros) Consolidated Balance Sheet (Thousands of Euros) 9M 2015 9M 2014 Assets Sep 30, 2015 Dec 31, 2014 23,507 (1) Revenues 3,822 Investment properties 594,937 357,994 Other income (2) 3,131 355 Equity-accounted investees 30,278 18,087 Change in fair value of investment properties 11,943 -42 Other non-current assets 32,507 3,841 Total Non-Current Assets 657,722 379,922 Personnel costs -243 -36 Other expenses (3) -9,243 -4,623 Cash & cash equivalents 146,987 20,252 Results from operations 29,095 -524 Other current assets 54,659 36,981 Total Current Assets 201,646 57,233 Financial Income 1,701 1,998 Total Assets 859,368 437,155 Financial Expenses -4,391 - Impairment and results of disposals fin. instruments -250 - Liabilities and Equity Sep 30, 2015 Dec 31, 2014 Share in profit (loss) of equity-accounted companies 181 - Total Equity 547,723 389,493 Profit/loss before Tax 26,336 1,474 Fin. Liabilities from issue bonds 138,166 - Income Tax - - Profit/loss for the period 26,336 1,474 Loans and borrowings 143,429 37,666 Other non-current liabilities 10,180 5,143 Total Non-Current Liabilities 291,775 42,809 Fin. Liabilities from issue bonds 2,480 - Revenues from Portal de la Marina amounts to € 3,748m . This amount is included in the line “Share in profit (loss) of (1) equity accounted companies” because this shopping center is accounted for using the equity method. Loans and borrowings 5,517 156 (2) Other Income : Mainly made up of the difference between the cost of the business combination and the value of the identifiable assets acquired and the liabilities taken on corresponding to the acquisition of the company El Rosal Other current liabilities 11,873 4,697 Retail, S.L.U. (3) Other Expenses: Mainly related to: Total Current Liabilities 19,870 4,853 • Management fees for management services provided to the Company by Grupo Lar Inversiones Inmobiliarias (“ Grupo Lar”) (2,907 thousand Euros ). Total Equity and Liabilities 859,368 437,155 • Professional services (accounting and legal advisory services, audit and property valuations) amounting to 2,564 thousand Euros. Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 5

Q3 2015 Financial Results - Lar España Real Estate Financial Indicators as of September 30 th , 2015 + 10% of EPRA Annualized rent compared to Q2 2015 GAV 1 Relative growth figures by segment up to June 2015 8% 6.10% EPRA Annualized Net Rent of c. € 40m as of 6% 3.50% 30 th of September, +10% more than Q2 4% 3% 2.30% 2% 0% Logistics Offices Retail Total Financial Indicators EPRA Indicator 30/09/2015 31/12/2014 30/09/2015 31/12/2014 %Chg EPRA Earnings ( €’000) 12,062 2,516 299.9% EPRA Net Initial Yield (NIY) 6.3% 7.0% EPRA Earnings per share ( € ) (2) 0.20 0.07 185.7% EPRA “topped - up” NIY 6.6% 7.1% EPRA NAV ( €’000) 549,313 389,862 41% EPRA NAV per share ( € ) (2) 9.18 9.87 -7% EPRA Vacancy Rate 7.22% 7.27% EPRA NNAV ( €’000) 547,722 389,493 41% EPRA Cost Ratio 41.3% 91.3% EPRA NNAV per share ( € ) (2) -7% 9.15 9.86 EPRA Cost Ratio (excluding costs of direct 37.7% 86.0% 31% (3) LTV 16.60% vacancy) Last asset appraisal on 30 th of June 2015: For assets acquired during 2014, valuation growth from 31th December 2014 to 30 th June 2015. For assets acquired during 2015, valuaton growth from acquisition date to 30th June 2015. (1) (2) Calculated excluding treasury shares (3) LTV = Total Loans & Borrowings & Notes (Net of Cash) / Total GAV Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 6

Q3 2015 Financial Results - Lar España Real Estate Q3 2015 Portfolio Breakdown and EPRA KPI’s Lar España’s portfolio at a glance (Q3’15) Residential Logistics 4% 17% GLA Logistics Rental Income 41% breakdown by Retail Retail by asset class Offices 58% 62% asset class 21% Offices 9% EPRA Net Initial Yield breakdown by asset class EPRA Occupancy Rate by asset class 7.5% 100% 6.6% 92.78% (2) TOTAL 93.16% (2) 6.3% (2) TOTAL 91.46% LAR ESPAÑA LAR ESPAÑA EPRA OCC. 4.9 % (2) EPRA NIY RATE Retail Offices Logistics Retail Offices Logistics (2) Marcelo Spinola’s EPRA NIY is not calculated due to the lack of representativeness. During Q4 2014, the office was prepared and evicted to refurbish the property. The refurbishment was started during Q2 2015 and is expected to be finished during Q2 2016. To calculate the NIY for the total portfolio we have excluded the data from Marcelo Spinola. Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 7

Q3 2015 Financial Results - Lar España Real Estate Retail Active management in place to enhance shopping experience Top anchored tenant mix with a balanced offer of attractive retailers, leisure activity and food & drink 960 mall operators and 81 pop-up stores 28.2 million visits Intense letting activity to refresh customer experience +10% sales increase YTD vs. Letting Activity: 2.3m of new rent and +6% over 4% Spanish retail sales total GLA c. € 38m 1 of expected Retail Annualized Net Rent per year 1 Future rent contribution of Sagunto Retail development has not been included Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 8

Q3 2015 Financial Results - Lar España Real Estate Retail Strong performance grounded on intense letting activity and boosting shopping experience Strong business evolution Diversified retail portfolio 8,516 Total 9 1 GLA, of 7 5 Retail il +64 which 1,193 12 8 Comple plex signed GLA are new contracts 6 lettings +10% Sales +2.7% (15 of which 2 Increase Shopping ping Average are new Centre lettings) footfall 11 growth 10 4 Footfall Sales increase Business Evolution Letting Activity 9M 2015 9M 2015 9M 2015 9M 2015 3 Develo lopm pment 14% 7% 6% 5% Top 10 tenants 1 Megapark 7 6. As Termas 5% represent 48% of 1. L’Anec Blau 2 8 9. El Rosal 4% retail sales 9 3 2. Portal de la Marina 7. Nuevo Alisal 3% 10 4 3. Albacenter Cruce de Caminos 2% 11 5 4. Txingudi 8. Villaverde 2% 12 6 1% 5. Las Huertas 12. Galaria Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 Lar España Real Estate SOCIMI, S.A. (LRE) – November, 2015 9