Spanish REIT, LAR España, reports €80.7M profit

LAR España Real Estate SOCIMI S.A currently (LRES.MC) has published a net profit of €80.7 million from January to September 2018, up 12% year on year.

Revenue growth has largely been due to improved asset management with rental income standing at €58.6M until September and operating income reaching €60.6 million, outperforming 2017 figures.

The results encourage the board to “push forward with the 2018-2021 business plan, via LAR’s management company, and placing technology, user experience and sustainability as core values” according to José Luis del Valle, Chairman of LAR ESPAÑA.

LAR España currently owns 23 properties valued at over €1.5 billion, of which €1,3billion relate to shopping centres (87% of all properties) located in Madrid, Toledo, the Balearic Islands, La Rioja, Navarre, Vigo, Valencia, Seville, Alicante, Lugo, León, Vizcaya, Guipúzcoa, Palencia, Albacete and Barcelona; €99.5M correspond to office buildings (6%); and €101.5M to a residential development (7%).

The Spanish REIT’s shopping centre sales climbed 0.5% y-o-y to €486.3M, outperforming the retail sector average, which posted a 3.1% decline. The group, which is one of Spain’s largest shopping centre owners, is currently immersed in refurbishing four of its properties to adapt to changing customer needs and providing a unique retail offer centred on experience. Footfall, occupancy rates and sales are expected to increase as a result of the refurbishments. One clear example is the already completed refurbishment of Albacenter shopping centre, where improvements have included remodelling the retail and dining areas to create dynamic, feel-good, urban spaces. The fund properties’ occupancy rate has risen to 94.6% and total footfall reached 41.5 million people during the first nine months of the year.

The company has opened new retail parks during 2018, such as VidaNova Parc with an occupancy rate of 100%. The company also ramped up the development and marketing drive at the Lagasca 99 luxury residential development, where 90% of the flats have already been sold. Formerly known as Palmas Altas, the group’s most important retail development is Lagoh shopping centre in Seville for which the REIT has signed a €98.5M syndicated loan to finance the final stages.

LAR España also continued to implement its asset rotation strategy, with successful sales of logistics properties for €119.7M – 87% above the purchase price – and two retail warehouses in Pamplona (Parque Galaria) for €11.5 million, achieving a value uplift of 37% on the purchase price.

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

A %d blogueros les gusta esto: