Haya Real Estate’s AuM increased 14% in H1, up to €45.3 billion, reinforcing the company’s leadership in the Spanish market

• The company’s free cash flow increased by 13% YoY, reaching €120.4 million in the last twelve months (LTM) ended June 30, 2019
• Proforma Transaction Volumes in H1 of €2.8 billion and Proforma Adjusted LTM EBITDA of €123 million, helped by a large REO and NPL portfolio sold by one of its core clients in July.
• Divarian’s operational capabilities integration process is on track and already consolidating Haya Real Estate’s leading position in the market
• Continuous improvement in the Haya platform, including strong reinforcement of top management, with the appointment of Enrique Dancausa, as new Chief Operations Officer (COO) and other highly experienced senior managers, as well as constant improvement in its IT platform.

August 30, 2019, 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 half of 2019, reporting €45.3 billion in Assets under Management (AuMs) at the end of the period, which represents a 14% increase versus December 2018.

Operating results (adjusted EBITDA) for H1 2019 amounted to €36.4 million (LTM €104.1 million). Including a large portfolio sale of over €1 billion by one of its core clients, completed in July, the adjusted EBITDA for H1 2019 would have been €55 million (LTM €123 million). The Company has been working on a cost reduction plan since the beginning of 2019 aimed at optimizing its cost structure and creating a sustainable and more efficient business model for the future.

During the first half of 2019, Haya also reported a strong Free Cash Flow of €38.6 million (€120.4 million on an LTM basis), representing a cash conversion above 100% in the period due to the improvement in working capital coming from strong collections in the period. The corporate net debt at the end of June’19 was €427 million, with a proforma net leverage ratio of 3.3x including the large portfolio sold by one of its core clients.

The company’s transaction volumes were €1.7 billion in H1 2019, driving total revenues to €118.6 million (LTM €262.2 million) impacted by lower volume fees due to lower activity in REDs and REOs, partially offset by an increase in management fees and other revenues as a result of the contribution from new contracts (Divarian, BBVA and Apple), and other existing contracts, as well as from the good performance of the Advisory division. Including the portfolio sale contribution, transaction volumes would have been above €2.8 billion in the period (+20% YoY).

Divarian integration on good track

The Divarian integration, led by a newly created Integration Management Office (IMO), is on track, with a clearly defined plan focused on business continuity to decouple systems and leverage on combined capabilities to minimize business risk and avoid disruption for both BBVA and Divarian asset servicing.

The plan has a strong commercial focus to maintain current ramp up and ongoing key transformation initiatives at Divarian to achieve targets. The process will give Haya Real Estate the ability to carry out a wide variety of quality services to enhance growth.

Improvement in the Haya platform

During the first half of 2019 Haya has also made continuous improvement in its long term platform, including the reinforcement of top management, with the appointment of a new COO and other highly experienced senior managers, as well as constant improvement in its IT platform. Enrique Dancausa, with over 30 years experience in the management of distressed assets, has joined Haya as new COO effective June 2019. In addition, the Company continues to strengthen its IT platform, aimed at improving its commercial capabilities and service delivery, allowing its clients in turn to speed up the recoveries of their non-performing assets

Carlos Abad, CEO of Haya, said: “I am honored to welcome very strong new talent to the Haya team, who will help us develop a stronger client focused business in the coming years. We have also been very focused this year on efficiencies, cost savings and cash conversion, helping us to maintain a sustainable and more efficient business model for the future”

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: +34911140101
• UK: +442071943759
• US: +1 6467224916
• Pin Code: 37524498#

The conference call can also be accessed via webcast at:

About Haya Real Estate

Haya is one of 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 €26.1 billion of AuMs (Assets under Management) as of June 2022.

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 ~163,000 assets, 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 and underwriting capabilities, rental management, land management, completion of works in progress.

Haya’s main clients include financial institutions such as BBVA, Caixabank, Cajamar, and international investment funds such as Cerberus Capital Management. The company employs ~661 professionals, featuring an extensive sales network that covers the entire Spanish geography. Haya has invested in cutting-edge technology, data analysis and IT tools focused on industrialization, process efficiency and performance delivery which are key to deal with current market environment.

Contact details:

Investor Relations:

+34 917 929 777
ir@haya.es

Pubic Relations / Media:
Kreab.

+34 91 702 71 70
hre@kreab.com