Haya Real Estate reports transaction volumes of €947 million during H1 2020
- Revenues have reached €83.4 million driving an Adjusted EBITDA of €20.6 million in the semester (€90.0 million on a LTM basis)
- Q2 2020 has been completely affected by COVID-19, with very low activity in April and May and some recovery indicators seen in June 2020. Very challenging context in the upcoming months due to the uncertain evolution of the pandemic in Spain, which will impact the outlook for H2 2020
- The company, however, faces the COVID-19 crisis with a strong liquidity position of €90.5 million at June 30th 2020, having achieved significant FCF generation in the H1 2020 period, up to €41.4 million
July 30th, 2020, 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 2020, reporting transaction volumes of €947.2 million (€4,280.3 million on a LTM basis). In particular, REO volumes have reached €563.7 million, REO Conversion volumes €280.5 million, and RED volumes amounted to €103.0 million in the period. The company manages around €33.8 billion in Assetsunder Management (AuMs) as of June 30th , 2020.
Revenues have reached €83.4 million in the first half of 2020, which have driven operating results (adjusted EBITDA) to €20.6 million. As previously announced, Haya ́s Q2 2020 activity and business performance has been affected by the COVID-19 situation, with activity impact across clients and businesses, mostly in April and May, and slightly recovery in June.
In order to partially mitigate the already expected COVID-19 impact on Haya’s business performance, the company implemented a contingency plan focused on strong cost reduction measures. During the quarter, Haya’s total operational expenditures decreased by 39% versus Q1 2020 due to the lower activity in REO retail volumes, reduction of IT opex, professional services and travel expenses. In addition, a labour restructuring process was completed in April 2020.
Finally, Haya reported a solid and strong Free Cash Flow of €41.4 million at the end of the period (€74.1 million on an LTM basis) maintaining a strong cash conversion through the crisis. As of June 30th 2020, the company’s cash position was €90.5 million.
Market outlook. Impact of COVID-19 on Haya ́s business
The context in the upcoming months continues to be very challenging and the outlook for the Spanish industrial activity, including Haya’s real estate and debt recovery activity, very uncertain. The Company’s activity will greatly depend on the consolidation of the macro situation in Spain (employment data, economic & pandemic evolution) which will determine the type of recovery curve post COVID-19.
Haya expects to have a gradual recovery during Q3 2020, with September being an inflection point and critical month for the evolution of Q4 2020. The evolution of the pandemic in Spain, as well as restrictions or any new measure adopted by the Government in the coming months will impact the outlook for the rest of the year.
Enrique Dancausa, CEO of Haya, said: “Results in this period are in line with our expectations; the second quarter of the year has been fully impacted by the pandemic and the exceptional economic and social context. Even so, we have been able to respond, adapting the company to the new situation, and will continue to focus on the COVID-19 contingency plan and on supporting our clients with their own needs through this challenging and unpredictable environment.”
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 €33.8 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 ~191,000 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, Bankia, Sareb, Cajamar, Liberbank, and international investment funds such as Cerberus Capital Management. The company employs ~908 professionals, featuring an extensive sales network that covers the entire Spanish geography. Haya has invested ~€54 million euros in cutting- edge technology, data analysis and IT tools focused in process efficiency and performance delivery.
Financial results presentation conference details
Enrique Dancausa, 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
- United Kingdom: +442071943759
- United States: +1 6467224916
- PIN: 71827007#
The conference call can also be accessed via webcast at:https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=A25F300D-1060-4A2A-AF1B-637E9CB9A048
+34 917 929 777
+34 91 702 71 70