Haya Real Estate reports transaction volumes of €1,599 million in the first nine months of 2020
- Revenues have reached €126.5 million driving an Adjusted EBITDA of €36.0 million in the period (€71.2 million on a LTM basis)
- Haya experienced a slight recovery in Q3 2020 activity on a QoQ basis, mainly due to a higher commercial activity in REOs and REO Co; however, the performance continues to be impacted by the COVID-19 situation
- The company maintains a strong liquidity position of €93.6 million as of th September 30th, 2020, having achieved FCF generation in the period, up to €46.5 million.
November 12th, 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 nine months of 2020, reporting transaction volumes of €1,599.2 million (€3,050 million on a LTM basis). The company manages around €33.0 billion in Assets under Management (AuMs) as of September 30th, 2020.
The Company reported a slight recovery in the activity during the third quarter of the year versus the previous quarter as a result of a higher commercial activity in REOs and REO Conversion. In particular, RED volumes have reached €288.3 million, REO Conversion volumes €464.8 million, and REO volumes amounted to €846.1 million in the period. With respect to the same quarter of the previous year, excluding large portfolios in both periods, the Company has seen a reduction of 26% vs Q3 ́19.
Revenues have reached €126.5 million in the period (€221.1 million on a LTM basis), which have driven operating results (adjusted EBITDA) to €36.0 million, €71.2 million in the last twelve months. The company continues with its contingency plan focused on cost reduction measures.
Haya reported a solid and strong Free Cash Flow of €46.5 million at the end of the period (€47.0 million on a LTM basis) continuing with an exceptional cash conversion of 129%. The company consolidates a strong liquidity position of €93.6 million as of September 30th, 2020.
Market outlook. Impact of COVID-19 on Haya ́s business
Despite the improvement experienced by the market QoQ, the context for the upcoming months continues to be very challenging. The outlook will be affected by the evolution of the curve post COVID-19 and the recovery of the Spanish macro situation.
As a result, Haya expects a very uncertain macro scenario. In this sense, a potential lock-down, or the application of additional restriction measures due to the negative evolution of the pandemic could impact the performance of the last quarter of the year and potentially the first quarter of 2021. The company will continue focusing on the contingency plan to mitigate top-line impact expected in FY 2020 and focus on collections and cash management, not having any short term liquidity needs.
Additionally, Haya has a solid track record that will be key to continue supporting its clients and could allow to face the challenges of the future, such as the potential consolidation of the Spanish banking sector. In this sense, Haya is the Spanish market leader in the servicing industry which could achieve any new opportunities derived from changes in banking and servicing sector.
Enrique Dancausa, CEO of Haya, said: “Results in this period show an improvement in the performance of the market compared with the previous quarter, which was deeply impacted by the exceptional economic and social context. However, the market is still very challenging, and it will require the company to continue adapting to this unusual situation. We are very focused on supporting and offering the best quality of service to our existing clients and will be monitoring the opportunities and potential impact arising out of the potential consolidation in the Spanish banking sector.”
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 €33.0 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 ~200,000 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 Bankia, BBVA, Cajamar, ING Liberbank, Sareb, and international investment funds such as Cerberus Capital Management. The company employs ~902 professionals, featuring an extensive sales network that covers the entire Spanish geography. Haya has invested ~€57 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: +34 911 140 101
- United Kingdom: +44 20 7194 3759
- United States: +1 646 722 4916
- PIN: 73140170#
The conference call can also be accessed via webcast at:
+34 917 929 777
+34 91 702 71 70