Haya Real Estate reports transaction volumes of €2,384.2 million in 2020
- Revenues have reached €177.0 million driving an Adjusted EBITDA of €52.2 million in the period (29% of adjusted EBITDA margin)
- Assets under Management (AuMs) of €32,287 million as of December 2020
- The company has maintained a strong liquidity position of €54.0 million at year-end, having achieved FCF generation up to €61.2 million
- Haya is focused on ensuring maximum commercial service delivery to its clients in this exceptional market context.
- Uncertain and challenging market context for 2021 but liquidity in the market and potential increased confidence of an economic recovery could drive an upturn of volumes in the second half of the year
March 25th, 2021, 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 full year 2020, reporting transaction volumes of €2,384.2 million. The company manages €32,287 million in Assets under Management (AuMs), which remain at similar levels compared to previous year.
Despite the slight recovery in the activity during the second half of the year, the Covid- 19 crisis has had a significant impact on the Company's commercial activity across all products. In particular, NPL volumes have reached €366.6 million, REO Conversion volumes €700.7 million, and REO volumes amounted to €1,316.9 million in the year.
Revenues have reached €177.0 million in the year, which have driven operating results (adjusted EBITDA) to €52.2 million maintaining an adjusted EBITDA margin of 29% thanks to the Transformation Plan and contingency measures implemented by the company. The operating expenses have decreased by €41.7 million and personnel expenses by €21.2MM as a result of reduction in volumes and the efforts made in the cost structure.
Haya reported a solid and strong Free Cash Flow of €61.2 million at the end of 2020 continuing with an exceptional cash conversion of 117%. The Company also consolidates a strong liquidity position of €54.0 million as of December 2020 after the completion of a bond buy-back transaction in November 2020.
Impact of COVID-19 on Haya ́s business
Despite some improvements experienced during the second half of the year, the crisis resulting from the pandemic has had a significant impact on Haya ́s business. The Company has worked to mitigate this impact implementing measures to adapt the Company's cost structure to the current market situation, while maintaining the quality and delivery service to its clients.
Haya established in January 2020, a two-year Transformation Plan to improve the quality and efficiency of the services. The Transformation Plan will continue in 2021 with further cost efficiency initiatives and new business lines which are expected to produce relevant results in next years.
The efforts made to adapt the cost structure to current business mix and situation have allowed Haya to improve its position to better cope with market and financial challenges ahead.
2021 outlook. Potential recovery in the second half of the year
The Company expects an uncertain and challenging general context for 2021 mainly due to the evolution of the pandemic and the vaccination process which will continue impacting the business activity at least in the first semester of 2021. Moreover, regulatory measures could delay to 2022 the real impact of the crisis and therefore new NPL inflows. Finally, banking sector consolidation and a potential Sareb tender process could be having an impact on the business.
Haya expects a potential recovery of the economic activity in the second half-year of 2021, due to the liquidity in the market and potential increased confidence of an economic recovery. The Company will continue to focus on value prestarvation of its existing contracts and ensure maximum commercial delivery to our clients in this market conditions.
Enrique Dancausa, CEO of Haya, said: “2020 results have been impacted significantly by the exceptional macro situation, however the figures show the resilience and flexibility of our business model adapting to this uncertain scenario. In particular, I would like to thank all of our employees for their tremendous effort during last year. Unfortunately, this challenging context will continue in 2021 nevertheless we have a solid track record, strong capabilities and team to continue supporting our clients in this changing market”.
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 €32.3 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 ~195,000 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, Grupo Cajamar, ING, Liberbank, Sareb, and international investment funds such as Cerberus Capital Management. The company employs ~892 professionals, featuring an extensive sales network that covers the entire Spanish geography. Haya has invested ~€61 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 Álvaro Badiola, CFO, will host a conference call today to present the results, which will be simultaneously broadcast over the internet, at 10:30 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: 63642337#
The conference call can also be accessed via webcast at::https://onlinexperiences.com/Launch/QReg/ShowUUID=6FD88A77-FDB2-44F4-ACF9-D2E0F0849693
+34 917 929 777
+34 91 702 71 70