Haya Real Estate revenues increased by 12.4% in the first nine months of 2018
- Haya Real Estate recorded a strong performance in all of its contracts and products increasing its transaction volumes by 33.3% up to €3,281.5 million for the nine month period ending September 30, 2018
- Total revenues amounted to €186.4 million (+12.4%) and Adjusted EBITDA to €88.8 million (+1.3%)
- Haya generated a strong Free Cash Flow of €87.9 million, an increase of 94.8%, representing a cash conversion of 98.9% in the period
November 15, 2018, Madrid. Haya Real Estate (“Haya”), the Spanish market leader in the management of real estate debt and property assets, announced today its financial results for the first nine months of 2018, reporting transaction volumes of € 3,281.5 million, increased by 33.3% versus the first nine months of 2017.
Total revenues amounted to €186.4 million, which represents a year-over-year growth of 12.4% due to the increase in volume fees, management fees and other revenues. Operating results (Adjusted EBITDA) amounted to €88.8 million, 1.3% up compared to the same period of last year, with a strong Adjusted EBITDA margin of 47.6%.
During the first nine months of 2018, Haya generated a strong Free Cash Flow of €87.9 million, an increase of 94.8% versus September 2017, representing a cash conversion of 98.9% in the period. The corporate net debt was €425.3 million with a net leverage ratio of 2.9x as of September 30, 2018 versus 3.0x as of December 2017.
In this period, Haya has managed €38.2 billion in AuMs after winning two new contracts in the third quarter of €923.8 million. The company’s transaction volumes - up by 33.3% - increased across its three product lines (REDs, REO Conversion and REOs) due to a continued overall strong performance in all of its contracts. In particular, RED volumes increased by 21.8% up to €1,109.9 million, REO Conversion volumes increased more than 25.7% reaching €947.7 million and REO volumes reached €1,223.9 million, 53.6% more than 9M´17.
It is also worth noting that the contract with BBVA for its current REO stock in Spain and future flow came into effect last October, when the larger JV Co transaction between Cerberus and BBVA was closed. Additionally, Haya is expected to be the servicer of the Apple portfolio, €2.8 billion of REOs owned by a Joint Venture to be created between Cerberus and Santander. During 2018, Haya has onboarded eight new contracts, which represent around 4,800 loans and 19,600 assets.
Carlos Abad, CEO of Haya, said: “I am pleased to share with you yet another strong quarter, reaching 33% increase in volumes year to date, 12% growth in revenues, and strong Adjusted EBITDA margins of 48%. Additionally, we have been able to diversify our customer base with new contracts win, as a result of our strong focus on delivering excellent services to our clients, and our demonstrated track record, placing us in a leading position to take advantage of the opportunities and potential consolidation in the Spanish servicing market”
Financial results presentation conference details
Carlos Abad, CEO of Haya and Bárbara Zubiria, CFO, will host a conference call today to present the results, which will be simultaneously broadcast over the internet, at 10:00 AM (Central European Time).
To participate in the conference, please dial in:
- Spain: +34 914142021
- UK: +44 2030432440
- US: +1 6467224907
- Pin Code: 96356177#
The conference call can also be accessed via webcast at:
About Haya Real Estate
Haya is the leading company in the management of Non-Performing Loans and Real Estate Owned assets (NPLs and REOs, respectively) in Spain. The company manages assets as well as financial and real estate vehicles for a wide variety of clients, from financial institutions to international investors. In total, Haya is responsible for €31.8 billion of AuMs (Assets under Management).
Haya offers products and services covering the entire value chain of NPLs and REOs. Its NPL services focus on the management of corporate or individuals’ debt, with a high degree of specialization in the valuation, management and recovery of loans and the conversion of non-performing loans into real estate owned assets. Real estate services are delivered to a portfolio of ~189,000 assets under management, and they range from asset boarding, property management, maintenance and valuation to its commercialization. Haya's services are fully integrated into the lifecycle of each NPL / REO, and also involve portfolio advisory, underwriting capabilities, land management, completion of works in progress and securitization.
Haya’s main clients include financial institutions such as BBVA, Caixabank (former Bankia), Cajamar, Liberbank, Sareb and international investment funds such as Cerberus Capital Management. The company employs ~863 professionals, featuring an extensive sales network that covers the entire Spanish geography. Haya has invested ~€63 million euros in cutting-edge technology, data analysis and IT tools focused in process efficiency and performance delivery.
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