- EPRA NAV per share increased by 10% with respect to year end 2016, up to €15.12/share.
- GAV reached 2,339 million euro, having registered a revaluation of 214 million euro.
- Last twelve months returns considering NAV growth and distributed dividends reached 27%
Hispania Activos Inmobiliarios closes its first half 2017 having registered gross rents of 78 million euro and a net consolidated profit of 185 million euro, which equals to €1.48/share. These results translate in a Net Asset Value according to EPRA of €15.12/share, which together with the 34 million euro distributed dividends, represents a total return for Hispania’s shareholders during the last twelve months of 27%.
With 39 hotels and a total of more than 11,200 keys, Hispania has become the largest hotel owner in Spain. Additionally, Hispania owns 25 office buildings with a total surface of 153,000sqm and a land plot where two additional buildings will be built with a total surface of 33,000sqm with the highest market quality under a LEED platinum certificate. Lastly, the company owns 5 residential buildings with close to 730 flats.
Hispania has continued to benefit from the positive tourism evolution in Spain during the first months of 2017, where the number of tourists has grown by 11%, most of which have come to Spain looking for the sun and beach. Average occupancy of Hispania’s hotels during the first half has reached 83% and total RevPAR has increased by 10% against the same period of 2016, resulting in an increase of net rents life-for-like of the hotel portfolio of 9%.
The company has also obtained important improvements of the rest of its assets, reaching a proforma occupancy for the office portfolio during the period of 85% after the last leases were signed, and an increase in renewal rents of 16%. In relation to the residential portfolio, occupancy of the units for lease has reached 95% and average rent grew by 7.7% during the period.
Another relevant aspect of the results has been the high revaluation obtained by Hispania’s assets according to third party valuers, reaching 10% more value during the first half of 2017, which results in a revaluation of 20% for the last twelve months. This important revaluation shows the quality of the portfolio, the attractive acquisition prices and the impact of the repositioning and refurbishments which Hispania is carrying out.
Within the divestment strategy of Hispania, the most important step so far has been to reach an agreement for the sale of its building Aurelio Menendez for a total of 37.5 million euro, equivalent to €7.800/sqm. Such price represents a 39% increase over December’s valuation (including pending capex) and a capital gain over investment of 60%. Additionally, Hispania has continued with the sale of the flats having sold a total of 25 units in Isla del Cielo and Sanchinarro having generated net capital gains of 35% against investment.
It is worth nothing also that during the first semester Hispania has continued with its strong investment pace, having compromised more than 100 million euro in new acquisitions, worth mentioning the acquisition of the NH hotel, the Fergus hotel and the Selomar hotel in Benidorm.
Concha Osacar, board member of Hispania, says: “we are convinced that we have a unique opportunity to generate high returns for our shareholders”. “Our value creating strategy contemplated the completion of the hotel portfolio through the executing of new investment opportunities which we have under analysis, complete the repositioning plans of the hotels and the rest of the portfolio and to continue to generate operating improvements in the whole portfolio, but especially in our hotels”.
Source: Hispania press release