Lar Espana Real Estate Socimi S.A.

Investor Presentation • Nov 21, 2022

9 M 2 0 2 2 B U S I N E S S U P D A T E

21st November 2022

Contents

1

Highlights

Financial information and ESG

2

3

Closing remarks

Presenting Team

Jon Armentia Corporate Director and CFO of Lar España

Hernán San Pedro Investor Relations and Corporate Communication Director of Lar España

Highlights

Despite the macro environment, we have achieved major milestones so far this year

PRESENTATION OF OUR NEW BUSINESS PLAN

• >€ 500 Mn investment to consolidate our leadership in retail
• Rotation of up to c.a.30% of current assets to optimize the portfolio
• We expect c.a.7% average growth per annum during the BP Period (2022-2025)

FITCH AFFIRMS LAR ESPAÑA'S RATINGS AT "BBB"

• Fitch Ratings affirmed Long-Term Issuer Default Rating (IDR) and senior unsecured rating at 'BBB'
• The Outlook on the IDR is Stable
• Lar España maintains the highest rating in its segment

DISTRIBUTION OF A € MN 30 DIVIDEND

• A dividend of 0.36 euros per share for a total of 30 million euros.
• It represents a yield per share of 7%, 30 bps higher than that paid the previous year.

LAST VALUATIONS REMAIN STABLE 1

• +53.6% revaluation since the acquisition
• +4.1% revaluation since June 2021
• +3.2% revaluation since December 2021

The company continues to be well prepared for major uncertainties

Rents

Strong results. GRI +7.2%¹ vs 9M 2021 Effort rate including all the expenses: 9.3%

Occupancy

Increase of occupancy levels with ca. 100% agreements with retailers already signed and no relevant loses in the tenant mix.

All our financial debt is at a fixed rate (1.8%) and with maturities beyond 2026.

Interest rates

Portfolio

100% refurbished. Solid valuation of the assets. Stable occupancy 95% in 2018-2022

Essential activities

Higher exposure to food and other essential activities: about 25%.

Retailers

We strengthened our commitment and relationship with retailers.

Inflation

100% of tenant contracts are indexed to the CPI. The average ticket of our centers is medium/low.

Improved capital structure through issuance of 2 green bonds, extending maturity and improving cost of debt.

All energy costs are passed on to tenants. See ESG slide for further information.

We reinforced our business plan, its implementation and communication. We expect ca. 7% average growth per annum in GRI and GAV.

And Lar España has proven to be a resilient company

1 Like for Like excluding Lagoh 2 Declared sales 3 Big Retail Surfaces Index

As these operating indicators show

Highlights

Having a great leasing performance

In short, a quarter of strength

Financial information & ESG

9M 2022 Financial Results

GRI €64.1Mn +7.2%1 vs 9M 2021	NOI €55.4Mn +10.4%1 vs 9M 2021	N E T P R O F I T €68.4 Mn 5x vs 9M 2021	E P R A E A R N I N G S p.s. €0.33 +42% vs 9M 2021	E P R A N T A p.s. €10.882 +5% vs Dec 2021
GAV €1,474 Mn	W A U L T 2.6 years	E P R A " T O P P E D - U P " N I Y 6.0%	O C C U P A N C Y 95.4%	C O L L E C T E D R E N T S 97%

9M 2022 Corporate Results

D I V I D E N D		D I V I D E N D Y I E L D O V E R M A R K E T C A P		L I Q U I D I T Y
30.0 € Mn €0.36 p.s. paid dividend		7.0 %		1 200 ca. € Mn
N E T L T V		A V E R A G E C O S T			G R E E N B O N D I S S U A N C E S
38.9 % 100% debt Maturities		O F D E B T 1.8 July 2021 % €400 at fixed rate. beyond 2026 1.75%		Mn Interest rate	Nov. 2021 €300 Mn 1.84% Interest	rate

Debt evolution

14

Financial information & ESG

With the best in class practices in ESG

Lar España registered its carbon footprint, of 2021 with MITERD, completing 4 years to being eligible for 'Reduzco' label. The company also submitted its Emissions Reduction Plan to the Ministry as another step towards carbon neutrality.

ISO 14001 & 45001 Environmental certifications. Since achieving ISO 14001 & 45001 status for the As Termas and Megapark in 2020, the company has been working to extend this certification to the rest of the portfolio in 2022.

Renewal of the Commitment to the UN Global Compact and SDG goals.

• ➢ Lar España has entered in the SDG Ambition Programme, an accelerator initiative that aims to challenge and support participating companies of the UN Global.
• ➢ Furthermore, the company is currently working to develop an overarching Action Plan, this shows our commitment to align the company's sustainability strategy with UN Agenda 2030.

15

Stable valuations

Attractive dividend: Maintained despite Covid-19 and macro environment

¹ Dividend: +€25 Mn in extraordinary dividend Market Cap at December 31st

P&L 9M 2022

	9M 2022	9M 2021
Consolidated Income Statement 9M 2022 (€ Thousands)	Total		Var %
Revenues	61,830	58,354
Other Income	2,263	2,053
Total Income	64,093	60,407	+6%
Personnel expenses	(690)	(416)
Other expenses	(19,854)	(24,409)
Changes in the Fair Value of investment properties	41,055	(7,564)
Results from Divestment	-	9
EBIT	84,604	28,027	3x
Financial Result	(11,910)	(16,197)
Changes in the Fair Value of financial instruments	(4,336)	865
EBT	68,359	12,695	5x
Income Tax	-	1,623
Profit/(Loss) for the Period	68,359	14,318	5x

Closing remarks

Lar España strengths: Operating results, corporate performance and healthy balance sheet

Resilient through cycles Sales

+16.0% vs 9M 2021 +10.1%¹ vs 9M 2019

Strong operating results

GRI +7.2% vs 9M 2021 NOI +10.4% vs 9M 2021 Net profit 5x vs 9M 2021 Sound balance, moderate debt & strong cash position Net LTV 38.9% ca. €200² Mn of liquidity

Innovative, with focus on omnichannel

Click&Shop strategy and project implemented

Truly committed to value creation & shareholder profitability €30 Mn dividend paid in May

Business Plan in accordance with the current situation

Total Annual Return Target of >10%³

www.larespana.com