Lar España Real Estate SOCIMI (LRE) Q2 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in H1 2024, with high occupancy, increased footfall, and sales growth year-over-year.

• Recurring net profit rose 21.2% year-over-year to €37.6 million in H1 2024.

• Maintained a diversified, high-quality tenant base and continued active portfolio management, including new openings and refurbishments.

• Advanced ESG initiatives, earning top certifications and awards, and integrated sustainability into all operations.

• Announced a voluntary takeover bid by Helios RE, S.A., subject to regulatory approval, after the reporting period.

Financial highlights

• Revenues reached €50.7 million in H1 2024, with recurring operating profit of €39.2 million and net profit of €37.6 million.

• EPRA Earnings totaled €32.4 million (€0.39 per share), up 21% year-over-year.

• Gross Asset Value (GAV) stood at €1,304 million, with a net LTV of 33.4% and average debt cost of 1.8%.

• Occupancy rate remained high at 96.0%, and collection rate at 99.1%.

• Share price rose 11.1% in H1 2024, outperforming sector indices.

Outlook and guidance

• Focus remains on continuous operational improvement, ESG leadership, and value creation for stakeholders.

• Plans to renew BREEAM certifications, update energy efficiency targets, and expand sustainable mobility and accessibility initiatives.

• Ongoing compliance with new EU sustainability reporting standards and double materiality assessment.

• 65% of contracts have maturities beyond 2027, supporting long-term revenue stability.