The Socimi Lar España earned €80.7 million last year. That figure represents a decrease of 37.6% with respect to its earnings in 2018. And that, despite the fact that the company managed to increase its revenues by 4.2% YoY, to €81.8 million.
The reason for this decline in net income is due to a lower valuation of the company’s real estate assets. Lar España, whose entire portfolio is made up of commercial assets, registered capital gains of around €40 million in 2019, compared with €70 million a year earlier. The company did not acquire any new assets in 2019, instead, it focused on improving its portfolio and on the opening of a large real estate asset, the Lagoh shopping centre. That property, located in Sevilla, was valued at €312 million as at 31 December 2019. Meanwhile, Lar’s second most valuable property was the Megapark complex in Bilbao, worth €217 million. Currently, 80% of the Socimi’s portfolio is made up of shopping centres, 17% correspond to retail parks and the remaining 3% comprise other commercial assets.