Lar Espana Real Estate SOCIMI SA
MAD:LRE
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
52 Week Range |
5.91
8.3
|
Price Target |
|
We'll email you a reminder when the closing price reaches EUR.
Choose the stock you wish to monitor with a price alert.
This alert will be permanently deleted.
Good
afternoon, everyone,
and
thank
you
for
joining
us
today.
This
is
Hernán
San
Pedro.
Welcome
to
our
full
year
2021
results
presentation.
As
always,
the
presentation
and
the
press
release
has
been
sent
to
our
distribution
list
and
all
the
financial
information
is
available,
too, in
our
website
and
at
the
CNMV
official
website.
Presenting
for
us
today
are
José
Luis
del
Valle,
Chairman
of
Lar
España
Board
of
Directors;
Miguel
Pereda,
Chairman
of
Grupo
Lar;
José
Manuel
Llovet,
Chief
Executive
Officer
of
Commercial
Real
Estate
of
Grupo
Lar;
and
Jon
Armentia,
Corporate
Director
and
CFO
of
Lar
España.
After
the
presentation,
we
will
answer
any
questions
you
may
have.
And
now,
let
me
hand
the
call
over
to
José
Luis
del
Valle.
Thank
you,
Hernán.
Good
afternoon
and
welcome
everybody.
2021
has
been
a
busy
year
for
all of
us.
Earlier
in the
year,
we
executed
the
sale
of
our
portfolio
of
22
supermarkets
as
part
of
our
asset
rotation
strategy.
In
June,
we
signed
an
extension
of
our
investment
management
agreement
with
Grupo
Lar
in
revised
and
more
attractive
terms.
Later
in
the year,
we
closed
our
third
share
buyback
program
and
5%
of
our
share
capital
was
later
amortized.
A
key
highlight
of
the
year
was
the
issuance
of
two
green
bonds, achieving
both
maturity
extensions
and
improvement
in
our
cost. €400
million
were
issued
in
June
and
July
and
€300
million
were
issued
in
October.
With
all
this,
we
have
been
able
to
maintain
strong
balance
sheet
and
to
keep
a
sound
cash
position
while
at
the
same
time,
getting
our
operating
results
back
to
pre-pandemic
levels
and
continuing
to
improve
our
portfolio.
Let
me
now
turn
over
the
call
to
our
Vice
Chairman
and
Chairman
of
Grupo
Lar,
Miguel
Pereda
for
more
details.
Thank
you,
José
Luis,
and
good
afternoon,
everybody.
And
thanks
for
joining
us
in
our
full-year
2021
results.
As
José Luis
has
rightly
said,
2021
has
been
the
year
of
recovery
for
Lar
España.
In
2020,
GDP
fell
globally
by
around
4%
and
in
Spain
by
more
than
10%.
In
the
face
of
that
slowdown
in
the
economy,
as
can
be
seen
in
the
IMF
data,
2021
has
returned
to
positive
figures
and
stabilized
in
the
forecast
for
the
following years.
The
phenomenon
is
true
for
all
developed
economies.
This
is
sort
of
the
case
for
Spain
where
the
latest
IMF
data
indicate
growth
forecast
of
5.8%
for
2022
and
3.8%
for 2023.
It
is
important
to note
that
this
growth
comes
with
high
levels
of
inflation,
which
are
lasting
a
little
bit
longer than
initially
was
expected.
Also,
with
the
situation that we
are
facing
with
the
Ukrainian
conflict,
it's
difficult to predict
completely what
the
final impact
might
be
depending
on
the
final
outcome.
We
focus
on
real
estate
sector
and
that's
slide
8.
Experts
also
agree
of
the
recovery
phase
that
is
being
experienced.
Talking
specifically
about
retail,
the
forecast
for
retail
sales
growth
are
strong
for
both
the
Eurozone
and
Spain
and
the
same
for
the
growth
of
rents
in
shopping
centers
directly
linked
to
them
with
a
forecast
between
[ph]
2021
– 2025 (00:04:34)
of
2.2%
for
Spain.
If
we
go
to
next
slide
9,
we
can
see
some
very
interesting
data.
Much
has
been
said
over
the
years
about
the
declining
trend
of
malls
in
the
United
States.
Many
also
predicted
that
the
same
will
happen
in
Spain.
But
as
can
be
seen
in
the
charts,
the
realities
of
the
two
countries
are
very
different. The
shopping
center
sector
in
the
US
was
already
in
its
maturity
phase
but
in
Spain
we
are
far
from
that
point.
With
0.34
square
meters
per
inhabitant
versus
the
2.35
in
the
US,
that
represent
close
to
7
times.
In
addition, shopping
centers
in
Spain
are
much
more
modern
and
much
more
weighted
with
leisure
and
restaurant
activities
which
cannot
be
done
digitally.
On top
of
that,
the
penetration
of
e-commerce
in
Spain
despite
the
pandemic
still
far
from
the
rates
in
the
US
or
other
European
countries.
As
we
said
before,
the
situation
is
not
comparable
and
the realities
are
clearly
very
different.
I
would
like
also
to
elaborate
on
what
José
Luis
commented
earlier.
2021
has
been
the
year
of
recovery,
thanks
to
the
decisions
taken
and
well-managed
by
our
company.
As
a
result,
we
can
see
not
only
the
occupancy
nationally
suffered,
but
that
we
are
already
seeing
clear
signs
of
improvement.
Our
asset
valuations
are
solid
and
have
already
returned
to
positive
figures.
Our
financial
position
is
excellent,
both
in
terms
of
cash
and
debt.
Our
tenant
relationships
maintain
very
strong
and
is one
of
the
pillars
of
our
strategy
and
[indiscernible]
(00:06:41). And
finally,
I
would
also
like
to
highlight
the
high
levels
of
collections.
[indiscernible]
(00:06:48)
very
proud
of
the
results
have
been
an
excellent
demonstration
of
the
resilience
of
the
people.
In
addition, it's
very
important
to
say
that
having
a
full
refurbished
portfolio,
totally
adapted
to
the
industry
trends
and
also
the
use
of
a
broad
set
of
innovation
tools
allowed
us
during
this
period
to
be
very
selective
in
the
CapEx
investments.
Also,
at
the
corporate
level,
we
focus
our
portfolio
in
shopping
centers
and
retail
parks,
divestment
of
the
supermarkets,
renew
the
[ph]
EMA
(00:07:28) and
improved
the
conditions.
At
a
financial
level,
we
achieved
an
excellent
profile,
both
in
terms
of
cost
and
maturity.
All
these
decisions,
together
with
the
quality of
our
portfolio,
have
allowed
us
to
be
in
a
privileged
situation
in
the
market.
As
we
can
see
in
slide
number
11,
Lar
España
stands
out
from
many
European
competitors
in
most
of
the
key
indicators
for
the
sector.
And
now
it
is
José
Manuel
Llovet,
could
we
turn
and
go
into
more
detail
in
more
operational
milestones
of
the
period?
Thank
you,
Miguel.
Hello,
everyone. My
focus
today on
post
pandemic
performance
and
the
fundamentals
of
Lar
España
portfolio
[indiscernible]
(00:08:14)
European
leading
company
in
the
retail
sector
in
the
coming
years.
As
you
can
see
on
slide
13, today,
thanks
to
the
vaccination
strategy
and
the
gradual
elimination
of
restrictions
in
all
regions,
we
have
100%
of
our
portfolio
open
and
operating.
In
the
following
pages
we will
see
why
Lar
España
has
reacted
stronger
– strongly
and
quicker
and
better
than
others.
Two
main
reasons:
first,
quality
of
the
assets;
and
second,
the
professional
management
that
implemented
the
right
strategy
for
extraordinarily
complex
moment.
In
page
14,
we
can
see
at
a
glance
the
mentioned
quality
of
our
portfolio.
Fully
refurbished
centers,
all
with
[ph]
brilliant (00:09:03),
excellent,
or
very
good
certificate,
technically
full
occupancy,
and
leaders
in
their
area
of
influence.
We acquired
excellent
assets
at
good
prices
that
repositioned,
refurbished,
and
brought
the
best
tenants.
The
quality
of
the
assets
and
the
management
strategy
are
the
results
of
success
and
differentiation
within
the
industry.
I
like very
much
this
slide.
It
is
very
simple
and
everything
is
concentrated
here.
All
these
green
points
are
the
key
of
the
company,
good
performance
and
our
resiliency
in
times
of
pandemic.
It
is
a
unique
portfolio, not
comparable
with
many
others
in
Spain.
Strong,
dominant
centers
are
one
of
the
main
portfolios
of
retail
parks
within
the
continent.
In
page 15,
you
can
see
this
is
a
proof
of
what
I've
been
saying.
The
resiliency
of
our
portfolio,
the
ability
to
recover
both
in
sales
and
visits
once
the
restrictions
have
disappear,
have
been
truly
remarkable.
All
the
sector
of
shopping
centers
and
especially
retail
parks
in
Spain
have
recovered
once
restrictions
were
over.
And
Lar España,
same
as
ever
since
2014,
has
beat
the
market
again.
In
page
16,
let
me,
for
a
second,
recall
what
we
planned
in
March
2020,
and
what
were
our
targets.
First,
[indiscernible]
(00:10:48)
occupancy;
second,
maintain
rents;
third
defend
our
value;
and
fourth,
do
not
judicialized
our
relationship
with
our
tenants.
To achieve
these
targets,
we
met
personally
with
each
of
the
tenants
and
reached
agreements
with
100%
of
the GLA,
more
than
[ph]
1,200
agenda
(00:11:13),
a
huge
effort
of
communication
and
negotiation
never
seen
before.
As
of
December,
94%
of
the
rents
have
been
collected.
More
than
70%
of
the
contracts
expired
beyond
2024.
Eventually,
the
excellent
relationship
with
our
tenants
is
a
must
to
get
high
results.
As
you
can
see
in
this slide,
they
grew
very
significantly
compared
to
2020
and
are
very
close
to
2019
numbers.
Next
page, number
17, we
see
the
leasing
activity.
The
leasing
activity
has
also
improved.
We
have
rotates
27,000
square
meters
within
the
year,
signing
94
deals.
€5.7
million
in
grants
were
negotiated
with
an
increase
of
3.9%.
Effort
ratio
is
fully
controlled,
standing
at
8.4%
below
the
Spanish
and
the
European
averages.
And
all
these,
while
maintaining
high
occupancy
levels
in
the
pandemic
that
during
the
last
quarter
of
2021
even
rise.
In
the
following
page,
number
18,
you
can
see
some
excellent
examples
of
operations
signed
this
year,
which
we
feel
especially
proud.
Names
like
AliExpress,
IKEA, Leroy
Merlin
or
Primaprix,
which
are
– all
of
them
are
leaders
of
their
sectors.
And
just
to
complete
my
part,
in
page
19,
I
could
not
end
my
speech
without
talking
about
one
of
Lar
España
main
growth
drivers,
which
is
innovation
for
increasing
margin.
We
are
now fully
aware
of
the
new
trends
in
the
retail
sectors.
And
we
have
adapted
our
assets
to
offer
solutions
to
our
tenants
that
facilitated
transition
to
the
omni-channel
world.
One
of
the
main
[indiscernible]
(00:13:38)
this
year
is
click
& shop,
which
will
allow consumers
to
shop
online
in
the
stores
of
our
centers. Other
is
pay-per-use
of
the
common
area
for
kiosks
and
promotions
using
online
reservation
and
digital
content.
Our
catalog
of
digital
services
is
very
wide,
and
you
know
that
we
have
been
pioneers
in
these
initiatives,
CRM
of
data
client,
[ph]
feed(00:14:08)
by
loyalty
clubs,
marketing
actions,
digital
services,
online
marketplace,
delivery
services
[indiscernible]
(00:14:15)
et cetera
of
digital
tools.
All of
them
provide
us
with
a
very
important
information
with
the
client,
improve
our
communication
with
them,
and
all
this
for
generating
new
revenues.
And
now,
let
me
turn
– give
the
word
to
Jon
Armentia.
Thank
you, José
Manuel;
and
good
afternoon,
everyone.
Let's
start
by
looking
at
slide
21.
And
I
would
run
you
through
the
highlights
of
the
2021
year.
We
have
had good
results
in
terms
of
both
gross rental
income,
€79.1
million;
and
net
operating
income,
€69.9
million.
Also
noteworthy
is
the
improvement
in
net
profit,
€25.8
million,
which
is
impacting
the
[indiscernible]
(00:15:04)
figures
of
2020 marked
by
the
pandemic.
Gross
asset value
increased
to
€1.4
billion,
with
a
positive
valuation
of
0.9%
compared
to
the previous
valuation
in
June
2021.
EPRA
NTA
per
share
reaches
€10.41.
When
analyzing
the
evolution
of
this
figure,
it's
important
to
take
into
account
the
dividend payout
in
Q2
2021,
€0.31
per
share.
As
José Manuel
commented
earlier,
the
collection
figures
are also
doing
very
well,
reaching
to
levels
around
to
95%.
Our
assets are
performing
better
than
the
Spanish
and
European
markets.
And
at
the
end
of
December,
we
present
an
EPRA
topped-up
yield
of
5.9%
and
an
occupancy
rate
of
96.1%.
WAULT
stands
at
2.7
years,
with
70%
of
their
retail
releases
with
expiration
dates
beyond
2024.
On
the
corporate
side,
we're
going
to
propose
to
the
next
annual
general
meeting,
based
on
2021
results,
the
payment
of
€30 million
in
dividends
or
€0.36
per
share,
[ph]
all
in
terms of (00:16:30) dividend.
This
means
a
7%
dividend
yield
over
market
cap.
Our
refinancing
process
has
been successfully
completed,
thanks
to
the
issuance
of
two
green
bonds
for
a
total amount
of
€700 million,
both
with
an
oversubscription
of
more
than
4
times
the
offer. Thanks to this
refinancing
process,
we
have
significantly
improved
the
average
cost
of
debt
and
the
average
debt
maturity
of
the
company.
Our
cash position
as
of
December
2021
stands
at
€313
million.
And
our
leverage
gross
2021
at
a
level
of
40.7%
with
an
average
cost
of
debt
of
1.9%.
This
figure
decreased
to
1.8%
after
the
repayment
of
the
2015 bond
in
February
2022. In September
2021
and
for
the
seventh consecutive
year,
Lar
España
has
been
awarded
the
EPRA
Gold Award
for
the
quality
of
financial
information
made
available
to
its stakeholders.
Regarding the
information
published
about
ESG,
Lar
España
has
also
obtained
the
highest
distinction
by
EPRA,
achieving
for
the
fourth
consecutive
year
the
Gold
Award.
This
highlights
the
international
recognition
for
information
reported
by
Lar
España
are
made
available
to
its
shareholders.
In relation
to ESG, on
slide
23,
you
will know
how
important
it
is
in
Lar
España.
However,
you
can
find
more
details
of
our
policies
and
achievements
in
our
2021
result
report.
I
would
like
to
mention
some
of
them
here.
Firstly,
I
would like
to
highlight
that
we
have
received
a
BBB
ESG
rating
from
MSCI. We
have
also
registered
our
2020 activity
for
carbon
footprint.
And
once
we
registered
our
2021
activities,
we
expect
to
obtain the
Reduzco seal from
the
Spanish
government.
In
relation
to
BREEAM
certification,
we
have
also
made
great
progress.
In
2021,
we
renewed
eight
certifications
with
a
higher
rating
than
they previously
obtained
in
most
of
them.
Besides,
we
have obtained
a
new
certificate
in
Parque
Abadía
with
very
good
rating.
We
now
have
12
certified
assets,
most
of
them
with
an
excellent
or
very
good
rating.
Our
commitment to
governance
remains
very
strong,
and
we
are
constantly
updating
our
policies
to
adopt
them
to
new
recommendations.
Thanks
to
this,
this
year,
the
company
continues
in
compliance
with
100%
recommendations
of
the
CNMV Good
Governance
Code.
Finally,
I
would
like to
highlight
that
for
the
fourth
consecutive
year,
we
have
participated
in
the
GRESB
Assessment,
achieving
a
score
of
86, which
means a 25%
improvement
compared
to
2020.
In the
slide
24,
we
can
see
that
over
the
last
six
months
of
2021, Lar
España
has
achieved significant
improvements
in
all
its
EPRA
figures.
As
at
December
2021,
EPRA
NTA
reached
to
€870
million
and
EPRA
NTA
per
share
rose
to
€10.41,
undoubtedly
a significant
increase
in
both
figures
during
the
period.
EPRA
earnings
amounts to
€23.9
million
and
EPRA
earnings
per
share
rises
to
€0.28
per
share.
In
terms of
yields, EPRA
net
initial
yield
and
EPRA
topped-up
net
initial
yield
rose
to
5.7%
and
5.9%,
respectively.
As
we
can see
in slide
25,
Lar
España's
debt
profile
after
achieving
bond
issuances
for
a
total
amount
of
€700 million
is
remarkable.
As
of
December
2021,
the
net
financial
debt
amounted
to
€579
million,
with
a
net
loan-to-value
at
40.7%. As
of
today
and
after
the
repayment
of
the
2015 bond
in
February 2022,
and the
average
maturity
and
the
average
cost
of
debt
are
6
years
and
1.8%,
respectively,
with
100%
of
the
debt
at
a
fixed
rate,
unencumbered
and
green.
Now,
let's
turn
to
slide
26
to
go
over
the
P&L.
Our
assets
generated
revenues
of
€76.3
million,
a
lower
amount
than
the
figure
obtained
in
2020, as
we
expected.
The
main
reasons
of
this decrease
are
the
lease
incentives
impact
derived
mainly
from
COVID-19
of
€14.6
million
and
the
temporary
impact
due
to
the
supermarkets
divestment in
February 2021
amounting
to
€3.3
million.
Lar
España presented
a positive
operating
result
amounting
to
€49.4
million.
Now,
focusing
on
the
profit
for
the
year,
it
was
up,
reaching
€25.8
million,
which
is
back in the
right
after
the
negative
figures
of
2020
marked
by
the
pandemic.
In
slide
27,
I
would
like
to
focus
on
explaining
the
[ph]
main
reasons (00:22:21)
that
exist
in
the
revenues
and
the
differences
between
P&L
and
cash
flow.
Considering
the
cash impact
of
the
incentives
on
revenues
instead
of
accounting
impact,
cash
revenues
post
incentives
in
2021
amounted
to
€85.2
million
which
represents
a
21%
annual
increase
versus
2020
and
a 27%
increase
on
a
like-for-like
basis.
Let's
now look
at the
portfolio valuation
in
slide
28.
Lar
España gross
value
rose
to
€1.4
billion.
The
total
portfolio
have
risen
48.8%
versus
acquisition
on
price,
7.5%
since
December
2020,
and
0.9%
since
June
2021
recovering
from
the
pandemic.
It's
important to
point
out
that Lar
España
has
a
resilient
portfolio
of
dominant
shopping
centers
and
retail
parks in attractive catchment
areas
with
assets
1% (sic) [100%] (00:23:26)
owned,
delivering
flexibility,
control
and
full
decision
capacity.
Our
solvent
and
diversified tenant
base
with
a
WAULT
of
2.7
years
and
close
medium years
and
close medium
and long-term
relationships
and
an
active
management
in
tracking
the
latest
trends
in
technology,
omni-channel
strategy
and
customer
knowledge
experience.
On
page 29,
we
can
see
how
the
valuation
of
our
portfolio
has
evolved
during
the
pandemic
and
the
rapid
recovery
of
asset
values.
The
reason
for
this
resilience,
the
high
quality
of
our
shopping
centers and
retail parks, which
are
leaders
in
their
area
of
influence,
modern,
sustainable
and
also
adapted
to the
new
trends.
Reflecting Lar España's
financial
strength,
the
board
is
going
to
propose
to
the
next
Annual
General
Meeting
based
on
2021
results,
the
approval
of
a
dividend
of
€0.36
per
share,
amounting
in
total to €30
million,
a
7%
dividend
yield
over
market
cap. This
dividend
positions us
among
the
leading Spanish-listed
companies
in
terms
of
[ph]
drive
to further
remuneration (00:24:44).
As
you
can
see
on
slide 31,
we're
committed
to
profitability,
always
maintaining
a
prudent
cash
position
with
detailed
liquidity
analysis.
We're
one
of
the
most
profitable
options
in
the
Spanish
stock
market,
both
in
terms
of
dividends
and
share
capital reduction.
And
now,
let
hand
the
presentation
over
to
José
Luis
for
the
closing
remarks.
Thank
you,
Jon.
As
a
result
of
what
has
been
presented
to
you
today,
we
can
conclude
that
our
strong
and
resilient
leadership
in
Spanish
retail
is
what
makes
Lar
España
an
extremely
attractive
company.
The
retail
sector
presents an
opportunity
to
enter
now
at
attractive
values,
with
yields
of
6%
for
prime
shopping
centers.
Our
strong
value
creation
over
the
years
is
not
reflected
in
the
share
price,
particularly
when
the
refurbishment
plan
was
almost
completed
before
the
pandemic.
We
are
now
trading
at
about
a
50%
discount
versus
NTA.
We
have
the
highest
percentage
of
positive
sell-side
recommendations
among
European
peers,
90%
of
them.
And
according
to
them,
we
present
a
potential
revaluation
of
close
to
40%.
We
have an
attractive
dividend
policy,
and
it
has
been
discussed.
Our
proposal
to
the
shareholders'
meeting
represents
a
7%
dividend
yield
over
end-of-year
market
cap.
We
have
achieved
strong
operating
results.
We
have
a
well-balanced
mix
of
tenants
and
solid
relationships
with
the
Tier
1
retailers.
Our
GRI,
on
a
cash
basis,
has
increased
by
over
25%
on
a
like-for-like
basis
versus
2020.
And
70%
of
our
contracts
are
maturing
in
2024
and
beyond.
All
these,
with
the
best-in-class
management
of
assets,
reinforced
by
a
revised
IMA, in
line
with
the
best
practices
and
costs
in
the
sector.
In
summary,
we
have
significant
upside
potential.
As
we
are
leaders
in
a
clearly
recovering
market,
we
have
shown
that
we
are
resilient
through
cycles,
we
have
sound
balance
sheet,
moderate
debt
and
strong
cash
position.
We
are
also
innovative
with
focus
on
omni-channel.
We
are
top
in
class
in
ESG practices
and
truly
committed
to
value
creation
and
shareholder
profitability.
In
summary,
good
portfolio,
good
management,
and
as
a
result,
good
profitability.
Thank
you,
all,
for
attending
your
call.
And
now,
back
to
Hernán.
Thank
you
very
much, José
Luis.
Can
we
remember all
the
people
attending
the
call
the
way
they
have
to
make
questions?
Ladies
and
gentlemen,
we
will
now
start
the
Q&A
session.
[Operator Instructions]
I
now
hand
over
the
call
to
Hernán
San
Pedro.
The
first
question
is
from
buy-side
people
for
Jon
Armentia,
our
CFO
and
Corporate
Director.
Can
you
explain a
little
bit
more
the
level
of net
profit
obtained
during
the
previous
year?
Thank
you, Hernán,
for
the
question.
We
can
see
[indiscernible]
(00:29:15),
we
have
been
able
to
recover
the
net
profit
in
the
company
after 2020
that
we
had.
The
main
difference
when
we
compare
with
2020 has
been
the
performance
of
the
valuation
of
our
portfolio.
While
2020,
we
had
a
decrease
of
4.9%
during
that
year;
in
2021,
we
have
had
a
positive
impact,
increasing
in
0.5%
in
the
market
value
of
our
portfolio.
So,
I
think
that
these
–
the
trends,
the
one
that
explains
things better
the
comparison
of
2021
with
2020.
Thank
you very
much,
Jon.
The
second
question
is
for
you,
too.
A
member
of
sell-side
would
like
to
know,
what
are
the
main
reasons
for
the
results
in
terms
of
valuations?
Well,
in
this
case,
the
increase
that
we
have
had,
the
one
that
I
have said,
0.5%
in
comparison
with
December
2020 and
0.9%
in
comparison
within
2021,
comes
only
because
of
the
increase
of
the
net
operating
income
of
our
assets,
of
our
retail parks
and
shopping
centers.
We
have
not
had
any
kind
of
deal
comparison
during
this
year
in
our
valuations.
So,
100%
coming
from
the
increase
of
the
net
operating
income
of
the
cash
flow
of
our
assets.
Another
question for
you,
Jon,
from
the
same
person,
Look
–
looking
at
page
27.
Do
you
consider
P&L
revenue
and
cash
flow
figures
for
2022
are
going
to
be
the
same,
better,
worst?
Okay.
Thank
you
for
the question.
Well,
what
we
expect
is
that
the
amount
– as
you
know,
when
we
compare
cash
flow
and
P&L,
we
have to
take
into account
that
the
cash
flow
effect
comes
just
in
the
year
that
we give that
lease
– those
lease
incentives to
our
tenants.
But
how
we'll
register
this
in
our
accounting
and
following
IFRS
standard
is
that
impact,
we
divide it
during
the
term
of
the
lease
agreement.
[indiscernible]
(00:31:54)
we
have
presented
these,
the
differences. And
when
we
analyze
the
performance
of 2021,
it's
very
important
to
take
into
account
that
in
terms
of
cash
flow
we
have
improved
significantly
the
picture
versus 2020.
For
2022,
we
don't
expect
to
have
additional
COVID-19
lease
incentives
in
our
portfolio.
But
what
is
true
is
that
as
at
December
2021,
we
have
in
our
balance
sheet
[ph]
€17 million that are
(00:32:30) – will be an impact,
will
be
an
amount
that
will
have
P&L
effect
in
the
coming
year for our
[indiscernible]
(00:32:42)
that
impact
won't
have
any
kind
of
cash
flow
effect
in
our
company.
Okay.
Thank
you
very
much,
Jon.
The
next
one
is
for
our
Chairman, José
Luis
del
Valle.
Please,
can
you
explain
us
a
little
bit
your
vision
about
[indiscernible]
(00:33:07)
shareholders
base after Castellana
Properties
bought
21%
of
[ph]
real
estate (00:33:10)?
Thank
you,
Hernán.
The
entry
of
a
new
shareholder
such
as
Castellana
Properties
could
be
a
sign
of
our
current
undervaluation
in
the
public market,
as
well
as
it
shows
the
support
and
confidence
of
a
relevant
international
investor
in
our
strategy.
What
we
can
tell
all
our
shareholders
is
that
we
will
continue
to
work
in
their
best
interests
to
deliver
our
business
plan
and
the
strategy
that
we
have
communicated
to
the
market
that
we
expect
will
yield
substantial
value
over
time
for
all
our
shareholders.
Thank
you
very
much, José
Luis.
The
next
one
is
for
the
Chairman
and
Vice
President
of
Lar
España,
Chairman
of
Grupo
Lar,
about
can
you
please
comment,
Miguel,
on
the
sale
process
of
the
two
assets
that
you
had,
in
the
past,
held
for
sale?
Well,
I
mean,
it's
part
of
the
strategy
of
the
company,
having
an
active
rotation
strategy
for
assets
that
we
consider
are
more
mature,
but
also
it's
looking
for
the
best
moment
to
proceed
with
this.
So,
as
you
might
seen
in
the
past
two
years,
liquidity
in
the
market
has
been
low
because
of
the
situation
with
COVID.
But
we
will
– I
mean,
we
are
not
in
a
pressure.
Our
financial
situation
is
super
strong.
So,
we
will
look
for
the best
moment
to
implement
investments
and
divestments.
Thank
you
very
much,
Miguel.
The
next
one
is
for
José
Manuel
Llovet.
We
don't
hear
you,
Hernán.
Yeah.
We
don't
hear
you.
Okay.
One moment
because
I
have
lost
the
program
where
I
can
see
all
the
questions.
Only
one
moment.
Okay.
Okay.
The
next
one
is
for José
Manuel
Llovet,
can
you
elaborate
a
little more
your
expectations
about
footfall
and
sales
in
January
and
February?
Can
you
give
us
a
vision
about
what
can
happen
during
2022?
Well, yes,
we
have
already
done
our
business
plan
for
all
the
assets.
We
have
the
strategy
[ph]
for all of them (00:36:17) and we
have
done
the
analysis
on
all
the
clients
surveys
we
used
to
do
yearly
basis.
Of
course,
what
we
see
is
the
recovery
path
is
there.
We
have
seen
in
general, as
I
said
before,
that
as soon
as shopping
centers
were
open,
the
people
came
back,
customer
came
back.
So, we
are
very
confident
on
these
in
the
centers
and
more
in
lifestyle
assets.
So,
we
have
beaten
the
market
again.
We
are
growing.
We
are
in
very
close
numbers
to
2019
and
we
have
to
take
into
account
that
there
are
still
some
activities
that
are
a
little
bit
below,
like
cinemas
or
laser
in
which
we
are
having
–
a
return
has
been
a
little
bit
less
fast
than
in
others.
In
general,
what
we
think
about
2022,
of
course,
last
news
of
the
last
days,
the
unfortunate
news
that
we
are
having
from
Russia
and
Ukraine
is
a
new
question
mark,
and
what's
going
with
the impact.
But
if
we
move
this
apart,
our
perspective
is
quite
positive
in
2022.
We
see
in
Spain
employment
increasing
the
level
of
savings
of
the
people
is
bigger
than
ever.
Consumer
confidence
is
growing.
We
are
now
similar
the
percentage
that
we
had
in
2019,
in
the
second
half of
2019.
We
are
seeing
also
how
the
minimum
salary
is
growing,
so
this
is
going
to
provide
more
purchasing
power
to
the
people.
It
is
true
that
on
the
other
side,
there
is
an
impact
of
the
CPI
growth.
We
have
to
take
this
into
account.
This
is
an
impact
in
first
round
and
also
in
the
second
round
and
what
we
are
seeing
is
that
the
forecast
of
CPI
in
Spanish
is
growing
very
much.
It
is
about
7%.
So
this
is
going
to
be
an
opposite
driver
and
whilst
the
other
getting
through
the
purchasing
power
this
CPI, it is
decreasing
the
same.
In
terms
of
general
activity
in
the
operational
point
of
view,
we
think
that
there
are
not
going
to
be
a
strong
impact
on
tenants
once
the
help
that
we
are
providing
are
over
because
the
[indiscernible]
(00:38:55)
that
the
old
tenants
have
in
our
centers
is
quite
controlled,
as
I
said
before,
below
the
average
in
Spain.
So,
we
do
not
perceive
problems
of
Chapter
11
bankruptcy
in
the
tenants
that
we
have.
And
just
a
quick
view
on
the
investment
market,
we
see
how
in
Europe
it
is
coming
back.
We
are
seeing
transactions
in
many
different
places
around
Europe,
first
focalizing
supermarkets
then
it
was
– and
it has
been retail
parks,
and
now
we
understand
and
we
anticipate
that
we
are
going
to
see
transactions
of
shopping
centers
in
the
coming
months.
So,
the
general
perspective
is
positive.
Of
course,
taking
into
account
what
I
said
before,
the
moment
is
again
complicated
and
we
have
to
see
how
this
problem
evolve
in
the
coming
weeks.
Thank
you
very
much,
José
Manuel.
One
question
more
from
buy
side
people. Given
the
high
discount
in
the
price
NAV,
can
we
expect
another
buyback
program?
I
think
that
José Luis
could
answer
the
question.
Thank
you,
Hernán,
and
thank
you
for
the
question.
At
the
present
time,
we
are
not
contemplating
any
additional
share
buyback
programs,
but
we
will
always
review
the
situation
in
light
of
the
value
creation
and
the
opportunities
that
we
might
have
in
the
market.
Okay.
Thank
you very
much,
José
Luis.
There
are
no
more
questions.
And
please
remember
the
way
they
have
all
the
people
connected
in
order
to
make
questions.
[Operator Instructions]
Okay,
no
more
question.
In
the
name
of
Lar
España
and
our
manager,
Grupo
Lar
[indiscernible]
(00:41:13)
for
attending
the
call.
Please
remember
that
all
the
teams
are
here
to
complete
–
your
complete
disposal.
Please
feel
free
to
contact with
us
for
any
additional
information
you
could
have.
Thank
you very
much
and
good
afternoon.