Haya Real Estate transaction volumes increased by 9% allowing €199.1 million of revenues in the first nine months of 2019

• Transaction volumes have increased by 9%, achieving €3.6 billion for the nine-month period ending September 30, 2019, due to strong performance in REO volumes
• Revenues have increased by 7% to €199.1 million, while adjusted EBITDA has amounted to €70.5 million over the same period
• Strong free cash flow generation of €70.8 million in the first nine months of 2019
• New servicing agreement signed with Sareb to service a portfolio of loans and REOs amounting to €15 billion AuM through mid-2022

November 19, 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 nine months of 2019, reporting €42 billion in Assets under Management (AuMs) at the end of the period, which represents a 7% increase versus December 2018.

In the first nine months of 2019, Haya has registered transaction volumes of €3.6 billion with an increase of 9% YoY, hitting record volumes of €5.1 billion on an LTM basis, mainly due to strong performance in REO volumes.

During the period, revenues have also increased by 7% YoY, to €199.1 million driven by higher REOs volume fee, management fee and other revenues. Operating results (adjusted EBITDA) amounted to €70.5 million in the period (LTM €114.3 million); the company continues to focus on the cost reduction plan established, reducing operating costs (ex Divarian) quarter by quarter.

Haya generated a strong Free Cash Flow of €70.8 million (€105.6 million LTM), representing a cash conversion above 100% in the period due to the improvement in working capital coming from strong collections. The corporate net debt at the end of September 2019 was €402.0 million, representing a net leverage ratio of 3.5x.

Regarding Divarian, the integration continues in line with the plan established, focusing on retention of key talent and commercial ramp up. Some synergies between Haya and Divarian are already being captured.

New Servicing contract signed with Sareb

Haya signed a new contract with Sareb after a very competitive process. The company has been selected to carry out the transition to Sareb ́s new business model. Under this new agreement, Haya will manage €8.4 billion at Net Book Value (~€15 billion at Gross Book Value).

The new contract, which will be effective on 1st January 2020, demonstrates once again the capacity of the company to maintain its core clients due to the quality of the service offered. In this sense, Haya will lead commercial activities and will leverage its in-depth knowledge of local real estate markets to support Sareb's new strategy. Sareb will assume the direct management of certain positions (large debtors and a list of specific REOs) and certain non-commercial functions.

New Debt Service unit

During the first nine months of the year, Haya has also created a new debt servicing unit to manage the entire recovery value chain for its clients. The objective is to provide a service that covers all stages of the recovery process, creating potential synergies with existing clients and targeting new clients.

Carlos Abad, CEO of Haya, said: “I am very pleased to share once again the recent developments in Haya. On top of another strong quarter of financial results, we have recently signed a new servicing contract with Sareb, we are expanding our service offering in the debt recovery space, and we continue to prove our leadership in the Spanish market. Additionally, we continue to focus on the Divarian integration, which is progressing according to plan to optimize the synergies obtained, and on the continuous improvement and streamlining of our operations to achieve maximum efficiency in an increasingly competitive environment.”

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: 45011423#

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