Lar España’s revenues increased in 2020

Lar España’s revenues increased in 2020

Lar España increased in around 15% its revenue for 2020, from 81.1 million euro to 93.3 million euro. In terms of yoy revenues, and excluding shopping centre Lagoh in Seville, which opened on the 27th of September 2019, those revenues would have increased around 2%. The EBITDA was 69.7 million euro, with an 18% increase and the net recurring profit reached 53.7 million euro, 30.3% more than the 41.2 million euro obtained in 2019.

In terms of the whole year and including the confinement months, the company’s shopping centres and retail parks received 63.9 million visits, which represents an 11.8% yoy increase. The sales declared throughout the entire year in its shopping centres reached 696.1 million euro. During the third wave, the company’s shopping centres’ open areas have been subject to the different regional restrictions. The average for the whole of the country currently is 72.6% of areas open.

The independent assessment of Lar España’s assets indicated 1.475 million euro at the end of 2020, with a 4.9% annual adjustment, or of 2% when concerning the first semester of 2020. The 76 million euro reduction reflects the 53.7 million euro loss, without practical repercussions neither on the liquidity nor on the company’s dividends policy. The end of year recurrent profit was 53.7 million euro, a 30.3% annual increase.

«We prioritised the safety of our professionals and clients and protecting the interests of our shareholders. We were the first to define and certify safe spaces, with traffic areas and open spaces capable of preventing and reducing sanitary risks, with a new model which will be key to the normalisation of social living and commercial activity», said José Luis del Valle, Lar España’s chairman of the board. «We have cared for and improved our relation with our tenants and we have an attractive model which allows us to protect our value and revenues. We maintained our liquidity and strengthened our balance so as to come out on top after the sanitary crisis and face the future with optimism. We have also been constantly committed to society, developing multiple solidary and responsible initiatives concerning the environment and corporate government. The company and its teams carried out strenuous work, which allows us to offer a significant dividend for 2020, another one of our differential characteristics, maintaining the restraint demanded by this type of situations».

Occupancy remained at 95.5% throughout the year and almost all the leasing contracts were negotiated one by one. The discounts agreed upon represented a total 22 million euro. At the end of 2020, Lar España maintained a high level of liquidity at 140 million euro, which was reinforced with an additional 59 million euro, up to almost 200 million euro, following the sale of 22 commercial stores leased to Eroski to investment fund Blackbrook.

This operation also represented a financial leverage reduction down to 39.4%, with an average cost of 2.2%, around 96% of the same at a fixed rate. The company extended until the 14th of April 2021 its share rebuy program, which seeks to increase the shareholders’ profit with the subsequent repayment of the acquired shares. The maximum total amount allowed is 45 million euro, or 4.5 million shares, of which, up until now, 68% were rebought.

The Board has raised the approval of a 31 cents per share up to a total 27.5 million euro, with a 6.7% profit dividend on behalf of the 2020 results to the Shareholders Meeting.

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