Haya Real Estate revenues increased by 7% in the first quarter of 2019

• In April, the company has signed a Business Purchase Agreement with Divarian, which consolidates Haya as the flagship real estate servicer in Spain
• Including the new real estate assets of Divarian, Haya will have €47 billion of AuM, or over 221 thousand REOs

May 23, 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 quarter of 2019, reporting transaction volumes of €846.9 million, which have driven a 7% increase in revenues, up to €59.7 million.

Operating results (adjusted EBITDA) amounted to €19.5 million (LTM €127.7 million), down compared to the same period of last year due to an increase in operational and personnel costs after the strong performance recorded in REOs and the transitory BBVA servicing through Divarian. The company maintained a strong adjusted EBITDA margin of 46%.

Haya reported a strong Free Cash Flow of €105.2 million on an LTM basis at the end of the first quarter, representing a cash conversion of 82% in the period.

The company manages €47 billion in AuMs after winning, as anticipated, the new contract of the Apple portfolio, €2.2 billion of REOs owned by the Joint Venture set up between Cerberus and Santander and the agreement with Divarian to manage more than 60,000 assets.

The company’s transaction volumes were €846.9 million during the quarter. In particular, REO Conversion volumes increased 11% reaching €329.6 million due to the strong activity in Sareb. REO volumes decreased by 1% to €323.8 million because of the high volumes sold from Cajamar, Bankia and Liberbank’s portfolios in 2018, which was offset by a strong performance in Sareb (+74%) due to an increase in retail sales. RED volumes were down by 29% to €193.5 million as the novation of Bankia’s contract in April 2018 removed its REDs from the perimeter, and due to Sareb’s new business strategy with a stronger focus on margins, lowering recovery volumes.

After signing a Business Purchase Agreement with Divarian in April, Haya will have a strong focus on preparing the integration of Divarian during the second quarter. The servicing contract will be in effect by June 1st. This combined transaction will consolidate Haya as the flagship real estate servicer in Spain, with more than 1,240 direct employees and €47 billion assets under management. The company will increase its capillarity, as well as its real estate management and marketing capabilities, throughout the Spanish territory. This will allow Haya to underpin its position as well as to accelerate growth and continue offering a first-class service to its clients. Thanks to this transaction, along with the agreement to manage the Apple portfolio, the company further diversifies its client portfolio.

Carlos Abad, CEO of Haya, said: “I am thrilled with the perspective of the integration of Divarian and Haya. The agreement we have closed will further consolidate Haya's prominent position in the Spanish real estate servicing market. We welcome warmly the significant boost in skills and talent that the Divarian team brings to our now much stronger combined company”.

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 911140101
• UK: +44 2071943759
• US: +1 6467224916
• Pin Code: 21867571#

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