BME:LRE

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Lar España Real Estate SOCIMI

Executive Summary

Lar España Real Estate SOCIMI, SA, (hereinafter Lar España) is a SOCIMI (Listed Real Estate Investment Company) that has been listed on the Continuous Market of the Madrid Stock Exchange since March 5, 2014.It was founded at an ideal moment in the Spanish real estate cycle in which prices reached historical lows and the real estate market entered a new phase. More Details


Snowflake Analysis

Very undervalued with moderate growth potential.


Similar Companies

Share Price & News

How has Lar España Real Estate SOCIMI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LRE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.9%

LRE

2.7%

ES REITs

0.9%

ES Market


1 Year Return

-49.9%

LRE

-25.0%

ES REITs

-20.2%

ES Market

Return vs Industry: LRE underperformed the Spanish REITs industry which returned -26.3% over the past year.

Return vs Market: LRE underperformed the Spanish Market which returned -22.3% over the past year.


Shareholder returns

LREIndustryMarket
7 Day0.9%2.7%0.9%
30 Day-8.2%-2.3%-2.1%
90 Day-18.0%-6.7%-7.4%
1 Year-44.3%-49.9%-22.2%-25.0%-17.5%-20.2%
3 Year-36.6%-50.4%1.0%-8.9%-19.4%-26.8%
5 Year-31.0%-54.5%-9.6%-22.4%-15.8%-29.0%

Price Volatility Vs. Market

How volatile is Lar España Real Estate SOCIMI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lar España Real Estate SOCIMI undervalued compared to its fair value and its price relative to the market?

27.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LRE (€3.94) is trading below our estimate of fair value (€5.41)

Significantly Below Fair Value: LRE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LRE is good value based on its PE Ratio (14.7x) compared to the ES REITs industry average (17.6x).

PE vs Market: LRE is good value based on its PE Ratio (14.7x) compared to the Spanish market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: LRE is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: LRE is good value based on its PB Ratio (0.4x) compared to the ES REITs industry average (1x).


Next Steps

Future Growth

How is Lar España Real Estate SOCIMI forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

34.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LRE's forecast earnings growth (34.9% per year) is above the savings rate (1.3%).

Earnings vs Market: LRE's earnings (34.9% per year) are forecast to grow faster than the Spanish market (31.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LRE's revenue (1.9% per year) is forecast to grow slower than the Spanish market (6.2% per year).

High Growth Revenue: LRE's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LRE's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Lar España Real Estate SOCIMI performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LRE has a large one-off loss of €28.9M impacting its June 30 2020 financial results.

Growing Profit Margin: LRE's current net profit margins (25.2%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: LRE's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: LRE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LRE had negative earnings growth (-79.5%) over the past year, making it difficult to compare to the REITs industry average (6.1%).


Return on Equity

High ROE: LRE's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is Lar España Real Estate SOCIMI's financial position?


Financial Position Analysis

Short Term Liabilities: LRE's short term assets (€275.9M) exceed its short term liabilities (€60.5M).

Long Term Liabilities: LRE's short term assets (€275.9M) do not cover its long term liabilities (€752.9M).


Debt to Equity History and Analysis

Debt Level: LRE's debt to equity ratio (84.9%) is considered high.

Reducing Debt: LRE's debt to equity ratio has increased from 57.9% to 84.9% over the past 5 years.

Debt Coverage: LRE's debt is not well covered by operating cash flow (2.1%).

Interest Coverage: LRE's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Lar España Real Estate SOCIMI current dividend yield, its reliability and sustainability?

15.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LRE's dividend (15.95%) is higher than the bottom 25% of dividend payers in the Spanish market (2.47%).

High Dividend: LRE's dividend (15.95%) is in the top 25% of dividend payers in the Spanish market (6.81%)


Stability and Growth of Payments

Stable Dividend: LRE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LRE's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (344.5%), LRE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LRE's dividends in 3 years are forecast to be covered by earnings (61.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average board tenure


CEO

Miguel Pereda Espeso

no data

Tenure

Mr. Miguel Pereda Espeso serves as General Director's Adviser at Inversions Inmobiliarias Lar, S.A. (Grupo Lar). Mr. Pereda served as Managing Director of Grupo Lar since June 2000. Mr. Pereda has been wit ...


Board Members

NamePositionTenureCompensationOwnership
Miguel Pereda Espeso
CEO & Directorno datano data0.035%
€ 117.7k
José Luis del Valle Doblado
Non-Executive Independent Chairman6.5yrs€105.00k0.026%
€ 88.2k
Isabel Aguilera Navarro
Independent Director3.33yrsno data0.0031%
€ 10.3k
Alec Emmott
Independent Director6.5yrs€80.31k0.0014%
€ 4.6k
Laurent Luccioni
Proprietary Director3.33yrsno datano data
Roger Cooke
Independent Director6.5yrs€75.93k0.0029%
€ 9.8k
Leticia Iglesias Herraiz
Independent Director1.92yrsno data0.00041%
€ 1.4k

6.5yrs

Average Tenure

63yo

Average Age

Experienced Board: LRE's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lar España Real Estate SOCIMI, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lar España Real Estate SOCIMI, S.A.
  • Ticker: LRE
  • Exchange: BME
  • Founded:
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: €334.868m
  • Shares outstanding: 85.10m
  • Website: https://www.larespana.com

Number of Employees


Location

  • Lar España Real Estate SOCIMI, S.A.
  • C/ Rosario Pino 14-16
  • 8th Floor
  • Madrid
  • 28020
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LREBME (Bolsas y Mercados Espanoles)YesBearer SharesESEURMar 2014
LREEBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURMar 2014
0QRLLSE (London Stock Exchange)YesBearer SharesGBEURMar 2014
LARE.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDMar 2014
L8EDB (Deutsche Boerse AG)YesBearer SharesDEEURMar 2014
LRE NBMV (Bolsa Mexicana de Valores)YesBearer SharesMXMXNMar 2014

Biography

Lar España Real Estate SOCIMI, SA, (hereinafter Lar España) is a SOCIMI (Listed Real Estate Investment Company) that has been listed on the Continuous Market of the Madrid Stock Exchange since March 5, 201 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 22:29
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.