Lar España Doubles Its Profits In H1 To €43.3M

13 September 2016 – El Economista

Lar España Real Estate recorded a net profit of €43.32 million during the first half of this year, which represents a two-fold increase compared with a year ago, when its profit amounted to €19.34 million, according to reports from the Socimi.

At the end of June, the company chaired by José Luis del Valle, owned a portfolio of properties amounting to €1,050 million. That amount is equivalent almost twice the value of its assets a year earlier and represents a revaluation of 9.3% with respect to the amount paid to acquire them.

The investment made to incorporate new assets into the portfolio of buildings and improvements that, according to the firm, has been performed under its management, boosted the Socimi’s rental income by 9%, to €26.9 million.

In turn, the gross operating profit (EBITDA) amounted to €23.80 million between January and June, whereby tripling the €8.30 million recorded during the same period in 2015.

The retail group Carrefour, the textile company Inditex, Media Markt and the public engineering company Ineca are Lar’s largest four tenants, given that they generate between 5.1% and 8.1% of their total rental income.

Reduce debt

In terms of financing, Lar España ratified its commitment to continue advancing towards its dual aim of reducing its cost of debt, which amounted to €456 million at the end of June, and extending its average maturity period, which currently amounts to almost seven years, on average.

The Chairman of the Socimi thinks that the half-yearly accounts will allow the company “to successfully tackle its commitments to shareholders”.

Original story: El Economista

Translation: Carmel Drake