Haya Real Estate reports transaction volumes of €504 million during Q1 2020
- Revenues have reached €45.2 million driving an Adjusted EBITDA of €6.2 million in the quarter (€92.5 million on a LTM basis)
- Strong free cash flow generation of €20.2 million in Q1 2020 (€88.8 million on an LTM basis), leaving a cash position of €89.3 million at the end of the quarter
- Haya’s Q1 2020 activity and business performance has been affected by COVID-19. Q2 is also expected to be weak as compared to previous quarters
May 21st, 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 quarter of 2020, reporting transaction volumes of €504.2 million (LTM €4,682.5 million). In particular, REO volumes have reached €327.8, REO Conversion volumes €123.0 million, and RED volumes amounted to €53.4 million in the quarter.
Revenues have reached €45.2 million which have driven operating results (adjusted EBITDA) to €6.2 million or €92.5 million in the last twelve months. Haya’s Q1 2020 activity and business performance has been affected by COVID-19. Q2 2020 is also expected to be weak as compared to previous quarters, with year-end outlook still very uncertain. To mitigate these impacts, the Company has put together a contingency plan which includes a cost reduction plan for the coming months. Personnel costs in the quarter have been reduced due to the labour restructuring process completed in April, on top of additional leaves, reducing total FTEs by more than 200 since the beginning of the year, which will imply a structural personnel cost reduction of more than €10 million on an annualized basis, helping to improve the efficiency of Haya.
On the other hand, Haya reported a strong Free Cash Flow of €20.2 million at the end of the first quarter (€88.8 million on an LTM basis) with exceptional cash conversion in the quarter, ending with cash position of €89.3 million in March 2020.
The company manages around €34.1 billion in Assets under Management (AuMs) including the perimeter of the new Sareb contract awarded to Haya in October 2019. Haya has initiated in this quarter its activity under this new agreement with Sareb, which consolidates the firm as the flagship real estate servicer in Spain.
Market outlook. Impact of COVID-19 on Haya ́s business
The emerging spread of the global Coronavirus (COVID 19) in the early months of 2020 is causing a general decrease on the Spanish industrial activity, including Haya’s real estate and debt recovery activity. The impact on the Group from this situation will depend in great manner on the evolution and the extension of the pandemic in the upcoming months, together with the adaptability and reaction capacity of all impacted economic agents.
Enrique Dancausa, CEO of Haya, said: “We are confident in the strength of our company and our employees to respond to the changes needed to deal with this crisis and to ensure that Haya succeeds in taking advantage of the opportunities that arise. The context is very challenging, and the outlook for 2020 very uncertain. But we are doing everything we can to mitigate the impacts and will always stay focused on client service to overcome this crisis together”.
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: 42850734#
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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