Socimi Lar España has achieved a net profit of 72.9 million euros in 2022, almost tripling the 25.8 million euros it obtained in the previous year. In addition, the socimi's total income grew by 5.7% to 83.6 million euros, compared to 79.1 million euros in 2021.
According to the retail specialised socimi itself, the independent valuation of its 14 assets increased by 46 million euros between January and June and by a further three million euros between July and December, reaching a final valuation of 1,473 million euros in 2022, 3.5% higher than the 1,424 million euros in 2021.
The two half-yearly valuations, like their 2021 equivalents, were carried out by the consulting firms JLL and Cushman & Wakefield. Occupancy closed the year at 96.6% of the socimi's 550,391 square metres of gross leasable area, 50 basis points higher than in 2021. Last year, it turned over 10% of the gross leasable area and obtained an average rent increase of 1.3% on new leases. More than 65% of the leases have maturities beyond 2025.
Last year Lar España's operating profit (EBIT) amounted to €92.6 million, almost double the €49.4 million in 2021. EBITDA in 2022 was €60 million, up 18.4% on the previous year's equivalent. The significant growth in all items of the income statement has led Lar España to propose to the next Shareholders' Meeting the payment of a dividend of 60 cents per share, a 66% increase. If accepted, it would represent a total payout of 50 million euros. It would offer a yield per share of 14.2% on last year's year-end capitalisation.
"The partial repurchase of green bonds for a value of
110 million and a discount of 18% will have a positive impact of around
a positive impact of around EUR 20 million on the income statement of EUR 20 million.
20 million in the 2023 income statement".
For José Luis del Valle, Chairman of the Board of Directors of Lar España, "the combination of recurring and rising revenues, occupancy close to record highs, record final purchases, a significant net profit and a good financial structure, with long-term maturities and fixed rates, has led us to redouble our dividend proposal and raise it by 66%, to 50 million euros, if shareholders approve it. The company goes into 2023 strengthened and, in addition, the partial repurchase of green bonds for 110 million euros and a discount of 18% will have a positive impact of around 20 million euros on the 2023 income statement".
Sustainability and final sales of Lar España
The socimi invested 17 million euros last year in the modernisation of different areas, mainly in MegaPark and Gran Vía de Vigo, two of its main assets. In this way, it completed the upgrading of its entire portfolio, culminating the year with the renewal and obtaining of BREEAM certificates for all its assets. In addition, the socimi Lar España was also the first listed real estate company to obtain the Reduzco seal, awarded by the Ministry of Ecological Transition and Demographic Challenge, which certifies the cumulative decrease in its carbon emissions over the four years analysed.
In its sustainability policy, the company benefits from the fact that it owns practically 100% of its 14 assets, which enables it to control strategic and commercial decision-making in each of them. The effectiveness of this policy has been certified, according to the socimi, by the value of the final sales declared by its tenants, which reached 1,051 million euros in 2022.
This is the first time that Lar España's final sales
Lar España's final sales have exceeded
1 billion euros
This figure marks a milestone for Lar España, as in the nine years of the socimi's life, it is the first time that final sales have exceeded one billion euros, with annual growth of 13.9% compared to 2021 and 10.6% compared to 2019. Last year also saw 80.5 million visits, up 8.1% on the previous year.
Already in January 2023, Lar España completed a green bond buyback for a total amount of 110 million euros at a discount of 18%, representing a final price of 90.5 million euros paid entirely with the company's cash. Corporate liquidity remains above 115 million and net debt is reduced to 37.1% of asset valuation following the recent bond buyback. The latter will have a positive impact of around EUR 20 million on the income statement in the first quarter of 2023.