Haya Real Estate announces record transaction volumes of €5 billion for the year 2019

• The strong performance in volumes have allowed revenues to reach €293.6 million revenues, a 7% increase YoY
• Adjusted EBITDA has reached €105.7 million in 2019, with a free cash flow generation of €71.3 million (cash conversion of 67%)
• The Company’s cash position at year-end was €64.3 million

March 31, 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 year 2019, reporting record transaction volumes of €5 billion and revenues of €293.6 million, an increase of 5% and 7%, respectively, compared to 2018, mainly driven by higher REOs volume servicing fee, an increase in management fees and other revenues, together with the contribution from new portfolios.

Assets under Management (AuMs) at the end of the year reached €41.1 billion, with increase in the year coming from new contracts, such as Divarian and Apple. Proforma for the effect of the new contract with Sareb, AuMs closed at €33.9 billion.

Operating results (adjusted EBITDA) amounted to €105.7 million in the period. The increase in revenues was offset by a larger increase in operating and personnel costs due to the integration of Divarian starting June 1, 2019. Haya continues with the efforts in cost savings established in early 2019 through a new transformation plan it expects to carry out in 2020.

With respect to Free Cash Flow, Haya generated €71.3 million in the year, representing a cash conversion of 67%, leaving a total cash position at year-end of €64.3 million.

Transformation plan

Haya has launched an internal transformation plan focused on obtaining higher flexibility and scalability of the business model reducing operational costs through the industrialization of operational and specific commercial services and increasing revenues from new business lines. The transformation plan also includes digitalization as a key aspect of reducing costs and improving the quality of services provided to its clients.

Sareb portfolio

In October 2019, Haya and Sareb signed a new servicing contract to manage a portfolio of loans and REO assets valued at €14 billion (gross book value, or GBV) until mid-2022. The new contract, which was effective on January 1st, 2020, will allow Haya to continue supporting Sareb in its gradual transition to its new business model. Under this new servicing model, Haya will lead the commercial activities and leverage its deep knowledge of the local real estate markets to support the new regional strategy of Sareb.

Additionally, Haya has been awarded a new contract for the rental management of more than 3,000 residential and tertiary assets held by Sareb. This new contract provides continuity to the rental management services that Haya has been delivering during the last five years for Sareb, adding value through the extensive experience of a specialized and dedicated team. This agreement was effective on January 1, 2020 and will last two years

Both contracts were awarded to Haya after a highly competitive process.

Market outlook. Impact of COVID-19 on Haya´s business

In order to face the current economic and social scenario generated by the COVID-19 situation in Spain, which has created an unprecedented situation for all people and companies, Haya has activated a contingency plan focused on conducting its business in a socially responsible manner, ensuring the security and health care of all its employees, which has allowed all employees to be working from home in record time thanks to a very flexible IT infrastructure and systems. Haya remains fully focused in serving its clients, with teams fully available remotely, and focusing on actions that can help clients increase sales and recoveries when the current situation normalizes.

Part of the contingency plan is preserving the Company’s strong liquidity position at year-end and monitoring the situation very closely to be able to adapt to then new circumstances as they arise. Haya is also taking advantage of a fairly flexible cost structure and will adopt whatever cost cutting measures are necessary to respond to this global health and economic crisis.

Carlos Abad, Chairman of Haya, stated: “I am proud to be sharing today the positive results of the year 2019 which can only place us in a stronger position as we face the challenges ahead. I am confident that under the new executive leadership with Enrique, who is an expert in this sector, Haya will be ready to carry out the transformation required to remain the leader in the servicing sector in Spain”.

Enrique Dancausa, CEO of Haya, said: “2019 has been a challenging but very rewarding year. We have been able to grow in volumes and revenues and have successfully completed the operational integration of Divarian, taking advantages of the synergies that came with the acquisition. The current global context, with the unprecedented situation caused by COVID-19, will have a significant impact in every business worldwide in the first half of 2020, and in particular, in Spain. We have responded quickly, putting in place our business continuity plan, and have ensured the health safety of all our employees who have been working remotely since day one, keeping client service levels through this tough period. I will continue to monitor this situation daily and trust that Haya’s track record and the commitment of all our employees will get us through this tough time”.

Financial results presentation conference details

Carlos Abad, Executive Chairman of Haya, Enrique Dancausa, CEO, 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: +44 207 194 3759
• United States: +1 646 722 4916
• PIN: 97863168#

The conference call can also be accessed via webcast at:

www.haya.es

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