Financial Information
1. Key Indicators
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During 2021 Lar España generated revenues of 79,107 thousand Euros and a EBITDA of 50,691 thousand Euros, being the most relevant figures the following:
2021
2020
(*) Includes Revenues and Other income.
Other Financial Indicators
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The Group presents the following financial indicators:
2021
2020
At 31 December 2021, and 31 December 2020, the Group exhibited ratios related to liquidity (working capital and liquidity ratio) with very high values, showing that the Group has sufficient liquidity and a high safety margin to meet its payments.
At 31 December 2021, the ROE (“Return on Equity”), which measures Group’s profitability as a percentage of shareholders equity, amounted to 3.03% (-5.92% at 31 December 2020), whilst the ROA (“Return on Assets”), which measures the efficiency of Group’s total assets regardless of the sources of financing used, i.e. the ability of a company’s assets to generate income, was 1.51% (-3.14% at 31 December 2020).
2. Consolidated Financial Statements 31.12.2021 (IFRS)
3. Financial debt
At 31 December 2021, Lar España’s debt stood at 892,700 thousand Euros, with an average cost of 1.9% and a net LTV ratio of 40.7%. The average debt maturity stood at 5 years.
The main debt indicators and the amortisation schedule is detailed below:
(1) Full consolidation and equity method figures included.
(2) Only available cash considered.
(3) On February 2022 the Company refunded the outstanding amount of €122.7 million related to the first bond issued by the Company in 2015.
Thus, as of the the date of publication of of this report, Lar España’s financial debt amounts to €770 million, with an average cost of 1.8% and an average maturity period of 5.4 years.
Back-Loaded Amortisation Profile
(€ Million)
In 2021, Lar España successfully issued two unsecured senior green bonds, amounting to a total of EUR 700 million.
As part of this issue, ISS-ESG conducted an independent review of the company’s sustainability strategy, based on the 2021 Green Bond Principles issued by the ICMA (International Capital Markets Association).
4. Green Bond Issuance
On July 2021, Lar España successfully placed an issue of unsecured senior green bonds maturing in July 2026. The pre-established maximum amount of €400 million was almost five times oversubscribed, with an annual coupon set at a fixed rate of 1.75%.
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Afterwards, on November 2021, Lar España successfully placed a new issue of unsecured senior green bonds maturing in 7 years. The pre-established maximum amount of €300 million was again more than four times oversubscribed. This new issuance, along with the preceding, represent the culmination of the refinancing process of Lar España’s debt, with a total of €700 million green bonds issued.
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The rating agency Fitch assigned an investment grade or BBB rating to both Lar España and its green bond issue, qualification that was ratified in the second issue.
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The annual coupon was set at a fixed rate of 1.843%, 9 basic points higher than the bond issued in July 2021. However, those rates involve a significant decrease as compared with a 2.9% interest rate of the bond issued in 2015, and consequently they allow the Company to reduce its average cost of debt from 2.2% to 1.8%.
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This will also bring liquidity to a very robust level, with long-term debt at around 41% of the asset value, turning all the Company’s debt into unsecured while keeping mostly fixed interest rates. In addition, it has been possible to extend the average maturity period of debt from 2.6 years to 6 years.
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Both issues were led by Morgan Stanley Europe, acting as the global coordinator and advising on the issue’s sustainable structure. The issues were placed with qualified investors and are quoted on the Luxembourg Stock Exchange’s Euro MTF market. Lar España plans to use the green bonds funds to fully or partially refinance a selection of real estate assets so as to reduce carbon emissions by assuring that the assets are environmentally friendly and meet the 2021 Green Bond Principles of the ICMA (International Capital Markets Association).
Average
Pre-Refinancing cost of debt
2.2%
Average
After-Refinancing cost of debt
2.2%
Thanks to its green bond issues, Lar España has refinanced virtually all of its debt. The only type of financing that the Company now has is unsecured debt, and it has significantly reduced its average cost of debt, extending the average maturity from 2.6 to 6 years.
5. Shareholder Return
The shareholder rate of return in 2021 stood at 2.88%. To calculate the rate of return, we use the growth per share over the financial year, which is the sum of:
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La variación en el EPRA NTA por acción de la Compañía.
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El dividendo por acción distribuido durante el ejercicio.
Shareholder Rate of Return
2.88%
6. Proposed Shareholder Remuneration
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Lar España was founded with the aim of generating strong returns for its shareholders via a significant dividend payout. In line with recent company notifications, and despite the unprecedented situation experienced in recent years, the Company has confirmed that it will continue to retain an attractive dividend policy.
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Based on the cash generated in 2021, the dividend pay-out will amount to €30.0 million.
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Therefore, the pay-out to shareholders for the financial year ended on 31 December 2021 to be presented at the Annual General Meeting would be €30.0 million, equating to earnings of €0.36 per share.
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Lar España has formed part, once again, of the Ibex Top Dividendo, a group comprising 25 shares listed on the Ibex 35, the Ibex Medium Cap or the Ibex Small Cap that offer shareholders the highest return in terms of dividends. This has further advanced our aim of generating value for our investors.
Dividend
30,0
€ Million
Dividend per share
0,36
€/ share
Dividend Yield over NAV (*) (31.12.21)
3,4%
Dividend Yield over market capitalization
(31.12.21)
7,0%
(*) EPRA NTA
6. Share Price Performance
The share price performance during 2021 compared with the IBEX 35 and EPRA Index performance can be seen in the following graph:
Lar España share price performance vs Ibex 35 and EPRA Index
(January-December 2021)
