Good afternoon, ladies and gentlemen, and welcome to Lar España's Full-year 2023 Results Presentation. I would now like to turn the conference over to Mr. Hernán San Pedro, Lar España's Investor Relations and Corporate Communication Director. Please, go ahead, Hernán.
Good afternoon, everyone, and thank you for joining us today. This is Hernán San Pedro. Welcome to our 2023 full-year results presentation. As always, the press release has been sent, and the presentation of financial reports are also available in our Lar España official website. Presenting for us today are José Luis del Valle, Chairman of Lar España Board of Directors; Miguel Pereda, Vice Chairman of Lar España and Executive Chairman of Grupo Lar; and Jon Armentia, Corporate Director and CFO of Lar España. After the presentation, we will hold a Q&A session with all the team involved, including José Manuel Llovet, Chief Executive Officer of Commercial Real Estate Iberia at Grupo Lar, and Sergio García, Director Retail Iberia at Grupo Lar.
As the team will explain later, during 2023 Lar España has experienced solid growth and a substantial improvement in all its key business variables, reinforcing the growth of its strategy and business model. Now let me pass the voice over to José Luis del Valle, the Chairman of Lar España Board of Directors.
Thank you, Hernán, and good afternoon, everybody. First of all, I also want to thank you for being here for our 2023 results presentation. Definitely, 2023 has been an exceptional and very important year for the company, as Lar España celebrates a decade of success since its IPO in 2014. As you may see in this slide, it has been a period of intense activity, where we have carried out more than 30 acquisitions, sustainable debt issues, and share buybacks programs, among other significant milestones, and which has given us the possibility of having today an outstanding portfolio of assets managed by the best team possible. A decade in which our positive results have remained recurrent despite the demanding socioeconomic environment, showing the strength and resilience of our business model.
Good business performance, a healthy balance sheet, and sustainable and responsible management are some of the ingredients used to always ensure the best results for our shareholders. Good performance is the result of a clear strategy, focused on the strength of our asset portfolio and our clients, who once again have exceeded EUR 1 billion in sales. The rent, 14% above 2022, and our very positive net result, with a 91% increase, will provide us with the possibility to pay in 2024 a dividend that we can qualify as historic, as we will see afterwards. 2023 represented another year of important achievements for the company, such as the EUR 50 million distributed to our shareholders as dividend, or the repurchase of corporate bonds and its direct positive impact of more than EUR 20 million on our P&L.
Our company management model has been supported from both a financial and solvency point of view, and from the perspective of the sustainable and responsible business model we have. Furthermore, our policy of asset rotation and divestments allows us to end the year in a strong cash position, with close to EUR 240 million available. And now, allow me to leave you with Miguel Pereda, Vice Chairman of Lar España and Executive Chairman of Grupo Lar. Miguel, the floor is yours.
Thank you, José Luis, very much, and hello, everybody. Indeed, 2023 has been a year of good results, as some of our principal metrics show. GRI increased close to 14% from 2022, that is more than 16% on a like-for-like basis, and a very strong occupancy of more than 97% are some of the examples. It is relevant, as you can see in slide number 11, that once again we are closing the year with a very positive performance in sales and also in footfall. The evolution of sales, which exceeds EUR 1 billion, responds to an average growth of 17.2%. In relation to attendance to our assets, we reached a total number of 76.2 million visitors in this year, with an average growth of 12%, showing the good health of the retailers.
We can also affirm that Lar España closed the year 2023 with better results than the average of its comparable companies in key business variables. GRI growth stands at 13.5% compared to the 4.7% of our competitors, and the NOI growth reached 16.5% compared to 4.1% of the market average. Average occupancy of Lar España's assets exceeds 97% compared to 96.1%, with NTA growth close to 4%, above the 1.6% of the market average. Finally, a healthy leverage situation, standing at 31% of net LTV, also lower than our peers. The management of our assets continues to be one of the keys to the strength of our operational performance, backed by Grupo Lar with more than 55 years of experience. The quality and diversity of the portfolio is also a source of attraction and also of loyalty for both tenants and visitors.
Leasing activity has been also very active this year. 2023 has ended with 42,300 square meters rotated in a total of 179 operations, with an annualized rotation rate of 8.1%. We have negotiated rents for more than EUR 11 million, with a rent uplift of 8.1%. This year, 2023, closed with a business performance that combines the good situation of our retailers with the good response also of our customers, who spend more time every day in our shopping centers and retail parks. We can see a 12.8% increase in terms of average time per visit during this year. Comfortable levels of effort rates, very high level of collection rate, and an increase in average stay with our customers is what we could call a virtuous circle of operating performance.
As you can see in slide 16, where it showed that we closed this year with solid sales performance data in all categories: Health and Beauty, an increase of 14.9%; Leisure and Entertainment, 10.4%; All Culture, Tech, and Media, with 10.1%, are some of the examples of the excellent offer of our retailers and the positive response of our customers through this year. In slide 17, you see how we continue with our asset rotation policy that has been very successful but also very active in the past. This year, and as part of this study that I was mentioning, we have executed a sale of 2 assets, Vistahermosa and Rivas Futura Retail Park. The operation, which was carried out with a premium, was closed with a sale price of more than EUR 129 million that represents 24% revaluation acquisition and an exit yield of 6.3%.
In addition to management, as you can see in slide number 19, one of the main reasons for achieving those good results this year is the high quality of our current portfolio. All our assets are leaders in their area, are fully refurbished, and also are food-anchored. Also, they host the top international brands and have very high rates of occupation among other important real estate variables. Finally, I would like to highlight the innovative profile that we have at Lar España. For us, innovation is a clear strategic driver through initiatives that try to complement the offer of our retailers and also bring them closer to their customers, as well as improve their user experience. Initiatives in the field of customer loyalty, omnichannel purchasing, or customer experience were the main examples in this year.
Using different methodologies, we are measuring and also monitoring the satisfaction of our users and also obtaining KPIs that help us to understand them in a better way and to be able to continue offering them a better service. And now, let me hand over to Jon Armentia, Corporate Director and CFO of Lar España.
Thank you very much, Miguel, and good afternoon, everybody. First of all, I would like to highlight the robust operating and financial results that Lar España has achieved in 2023. We registered a positive trend in gross rental income, increasing 16.3%, and net operating income rising 19.5% versus 2022 on a like-for-like basis, excluding the sale of Rivas and Vistahermosa retail parks.
The net profit, without taking into account the changing value of the assets, reached EUR 77.2 million, close to 92% higher than the same figure of last year, which underlines the company's excellent performance in 2023. I would also like to point out our sound portfolio with EUR 1.3 billion of gross asset value, a WAULT that stands at 2.5 years, and an occupancy that continues to grow during the last part of the year, reaching 97.1% at the end of the year, very close to full occupancy.
In addition to these outstanding results, 99% of rents and expenses invoiced in 2023 have been collected during the year. As can be seen in the following slide, the strength and the resilience of the company's business model has been demonstrated over the last years with a very stable net profit quarter by quarter. In the following slide, number 24, we see how Lar España, during 2023, has achieved great progress in all the EPRA indicators. I would like to call attention to, in particular, the EPRA NTA per share, which stands at EUR 10.74, and the significant improvement in EPRA earnings figures, both at total level and at ordinary level, the latter figure key for the dividend of the company.
I would also like to highlight that in 2023, Lar España has received the Financial Report EPRA Gold Award for the ninth consecutive year and also the EPRA Gold Award for ESG information, in this case, six years in a row, in recognition of the quality and transparency of the information published by the company. In the following slide, we can see in the P&L account how the results of Lar España have been very positive in this period. Starting with the line of revenues that reached EUR 95 million at an increase by 13.5% and by 16.3% like-for-like compared to 2022. Additionally, at financial level, it's very important to highlight the extraordinary positive impact registered in our P&L, thanks to the bond buybacks carried out during the year and also the significant improvement of our financial result.
The net profit, without taking into account the changing value of the assets, reached EUR 77.2 million, 91.6% higher than the same figure of last year. In slide 26, we can see our financial profile. I would like to stress that this good set of results has been achieved while maintaining a very sound financial profile. After the bond buybacks carried out during the year, the company's financial debt is at excellent level, being an optimal combination of debt, cost, and maturity. Our net loan-to-value decreased in this quarter to 31%, with an average cost of debt of 1.78%. Furthermore, I would like to remark that all our debt is at fixed rates, unsecured, and green, with an average term maturity of four years.
If we move to the next slide, number 17, we can see that at the end of the year, our gross asset value stands at EUR 1.3 billion, which represents 54% revaluation since acquisition. The performance of the company's portfolio, from valuations perspective, responds better at the end of 2023 than the average of the European retail peers, a -3.7%, or the average of the retail sector in Spain, -5.1%, demonstrating the excellent management and quality of our assets. The good results achieved in 2023 have allowed us to maintain our commitment to remunerate our shareholders. Thanks to this, this year we will distribute the highest ordinary dividend in our history, EUR 58.7 million. And additionally, and thanks to the successful divestments of the retail parks, we will also distribute an extraordinary dividend of EUR 7.5 million.
Taking into account both of them, ordinary and extraordinary, the total dividend that will be distributed will be EUR 66.2 million, EUR 0.79 per share, which represents a 12.9% dividend yield. It's worth noting that since the birth of Lar España, more than EUR 390 million in dividends will have been distributed to our shareholders. Our dividend policy remains strong even with the shares' appreciation, a clear commitment of Lar España to its shareholders. Despite the positive share valuation in 2023 of more than 45%, our dividend yield has hardly been affected and remains one of the strongest in the Spanish stock market. As mentioned previously, the profitability of Lar España is unquestionable. From the point of view of dividend distribution, in 2024, we will exceed EUR 228 million distributed among our shareholders in 2020.
In addition, we have optimized our capital structure with share buyback programs acquiring up to 13.4% share capital, thereby increasing the profitability and return per share. Finally, we have incorporated a new method to bring profitability to our shareholders, repurchasing EUR 98.5 million in bonds, which, among other things, generates income of more than EUR 20 million in 2023. If we continue to move forward, it's important to highlight the responsibility of our business vision, both in short and long-term vision, and emphasize the importance of ESG for us. First of all, let me introduce our decarbonization strategy for the coming years. Our closest goal will be to achieve climate neutrality by 2030 with a 60% reduction in Scope 1 and 2 versus 2019. In the long term, Lar España will aim to be net zero by 2050 in Scope 1, 2, and 3.
In addition, in 2023, we have also achieved some milestones. 100% of the portfolio is pre-certified, Cálculo y Reduzco Seal for the 2nd year in a row, and we are the first Spanish-listed real estate company participating in the 3rd Climate Ambition Accelerator program by UN Global Compact. In terms of responsible use of resources, we have also analyzed our water footprint, keeping in mind the water consumption analysis for each asset. During 2024, we will design a water consumption strategy at a national level. Throughout 2023, we have maintained our ESG commitment by developing initiatives in different aspects. 100% of our assets are certified with ISO 14001 and ISO 45001. In addition, we add four assets awarded in 2023 with AENOR Universal Accessibility Certification. We have also developed 220 social projects that have involved the dedication of more than 2,000 hours of work.
Additionally, the company has continued in 2023 to push for the inclusion of green clauses in its lease agreements. By the end of 2023, 27% of the company's total contracts already have green clauses. Since the end of 2022, Lar España has assessed risks and opportunities resulting from climate change in line with the global standard TCFD, having completed the analysis and identification of physical and transition risk in 2023. Lar España also continues to advance good corporate governance and diversity practices with recognition from third parties, such as the upgrade from BBB to A in the ESG MSCI rating, the certification of 100% of our debt as green, or the inclusion in the IBEX Gender Equality Index. Now, allow me to return to José Luis del Valle for the closing remarks.
Thank you, Jon. To conclude our summary of Lar España's business evolution in 2023, I would like to emphasize some of the most important elements that reflect the good progress of the company. On the one hand, revenues grew by around 14% compared to 2022, more than 16% on a like-for-like basis, with an operating result that increases by more than 16%, 19.5% on a like-for-like basis. Both magnitudes are a clear sign of the good health of the business, and if I may say, of good management by the Lar España team. Our net profit increases by more than 91%, while our leverage remains steady at 31%, a sign of a business that is committed to growing in a solid and reliable manner. As a result of all this, we will be able to offer our shareholders EUR 66.2 million in dividends, one of the largest in our history.
Finally, it is worth saying that all this has been possible thanks to our focus on the high quality and size of our portfolio, which has the best assets located in the best catchment areas. The active and personalized asset management we carry out in all our centers, our commitment to omnichannel, and the support to our retailers in this front, with constant initiatives that facilitate their job and support their performance. Our first commitment to society wherever we operate and to the highest standards of governance. And of course, our commitment to our shareholders, to their profitability. At Lar España, we strive every day to create value for them. Thank you very much.
Thank you very much, José Luis. Now we can open the Q&A session.
Ladies and gentlemen, we will now start the Q&A session. If you want to ask a question, please use the webcast functionality, "Ask a Question." I now hand over the call to Hernán San Pedro.
The first question we have is for Jon Armentia, our Corporate Director and CFO, from the buy side. I would like to ask if the board is considering repurchasing its own stock in bonds in the close future, and it has a big discount with respect to the net asset value. Jon, please.
Okay. Thank you for the question. Well, at this moment, and speaking about 2024, we don't expect to carry out additional bond buybacks as we did last year. Last year, we know that was a very successful operation, but at the moment, for this year, we don't expect to carry out a new one.
Thank you very much, Jon. The second one is for José Manuel Llovet, Chief Executive Officer of Commercial Real Estate of Grupo Lar. José Manuel, please, from the buy side too, under which kind of criteria you can think in new assets? What kind of assets?
Okay, Hernán, thank you. Thank you for the question. I think you have in the presentation the acquisition and sales that we have done during these 10 years, and I think all of them have been done in the right moment. Now, thanks to the strong cash generation and the sale last year of the 2 retail parks at the price of valuation, the company has a capacity to buy and will do it, as always, in a selective manner as we have been doing so far. There are opportunities in the market that we are analyzing, and the criteria is the same as ever. Just to recall, big dominant shopping center with the best tenants, high number of visits, and control of the property to create as quick as possible new value. This is the target.
We are aware of the market, and we will see how the market evolves in searching for these kinds of assets and maintaining the same investment thesis as we have been doing.
Thank you very much, José Manuel. The next one is for our Chairman, José Luis del Valle. Please, José Luis, comments about the evolution of the dividends in 2023.
Thank you, Hernán. In 2023, we have applied our dividend policy, which is to distribute 100% of our recurrent EPRA earnings. In this case, it has been a little more than that because, as last year, we have adjusted upwards our recurrent EPRA earnings in the amount of the amortization charges made in the year or the discounts that we offer to tenants during the pandemic. That's why it's a little bit higher than the recurrent EPRA earnings, and that's why we reached a level of EUR 58.7 million there. On top of that, and again, as part of our dividend policy, we are also distributing 50% of the capital gains on the sales of assets. That's another EUR 7.5 million in total. As it was mentioned, EUR 66.2 million that will be submitted to our shareholders for approval at the shareholders' meeting.
Thank you very much, José Luis. The next one is for our Vice Chairman and Executive Chairman of Grupo Lar, Miguel Pereda. Please, Miguel, can you give us some color from sell-side people, any color about the disposal and acquisitions plan?
Yeah, thank you, Hernán. Well, it's very linked to what José Manuel was just explaining. I think clearly rotation is a strong part of our strategy, so we are always looking for a smart rotation. So that means that we think that we will be selling more mature assets and trying to see, look, and probably buy those where we see that the return makes sense. Saying that, and because of the liquidity position that we have today, clearly we are more focused on buying than selling at the moment. This will do that because two things, because our position, liquidity position, and also because we think that the market will bring more opportunities to buy than to sell. But both things are open. I think the most important thing is, well, I mean, following the criteria that José Manuel was explaining.
So, I mean, assets that fit well in our portfolio and are aligned with our strategy and also doing it in a smart way in terms of pricing and timing. But yes, we will be on the top of that. Last year was a dry investment market for the whole industry. But even though we were able to sell at very attractive prices, if you compare the yields where we were selling and the yields that we have in our portfolio today, you see the difference, and that's part of the study that we are implementing.
Thank you very much, Miguel. Next one is for José Manuel Llovet. José Manuel, can you give us your thoughts about the asset valuation for 2024?
Well, first, I'm going to give you my impression on asset valuation 2023. You have seen that there has been a very slight decrease of value of 2.4%, which is clearly below the peers. And the reasons are two. One, you have seen following the company that we have been applying to this compression of yields during the last three years. But on the other side, we have been able to create new rents. And this creation of rents has made us to maintain the value, to offset the effect of the decompression with the increase of rent. And this is the reason for us. This is a robust and continuous increase in rent, what really offset the increase of rates, despite they have happened only in three years. We have done a plan of increasing rents and also after the COVID and all the things that have happened recently.
We have accelerated the production of rent, and we have controlled also the CapEx once we finalized the CapEx and reposition investment program finalized in the last years. So these are the reasons why Lar España is decreasing slightly and clearly less than other peers in the market. And in 2024, well, let's see. We need to know we need to see what is going to happen with the interest rates. If we are in a peak of interest rates, reasonably, we will see a compression movement in real estate rates. So if we are able to continue creating new rents, probably the value will perform in a similar way.
Thank you very much, José Manuel. The next one is for Miguel Pereda. Miguel, considering the different results presented by peers in Europe, we have seen a very different performance between one asset and another asset. Can you give us some color about the success keys in the asset management put up by Grupo Lar over the Lar España portfolio?
Thank you for the question. Well, without making any comparison in that respect, because I suppose that the difference is due to many factors. But talking specifically about our asset management, at the end, it's based in a few things. One is experience. I mean, many years doing that and learning every year of what you did right and wrong the year before. A strong, big, and very professional team that also is absolutely key. But not all see it as smart. So being able to build a strong relationship with retailers, that in this specific case of retail, is very, very important. And I suppose that also working very hard. That probably will be the formula: simple but effective.
Okay. Thank you very much, Miguel. The last question we have is for Jon. Jon, how comfortable do you feel with the debt situation of the company? And have you any plan in the short term for the debt?
Okay. Thank you for the question. Well, we have seen the current debt profile that we have is excellent at the company in terms of LTV, in terms of cost, very low, and being a little bit unsecured. But it's also true that this 31% of net LTV that we have is a temporary net LTV. Why? Because of the cash available that the company has today that, as you know, is very high. So if we, after several months, carry out new investments, we'll be reducing that cash available. And what we expect for the company is to be levels of net LTV between 35%-39%. That is the target that the company has in a normal way.
Thank you very much, Jon. World TV people, please, can you remember all the audience, the way they have to ask to send us questions?
As a reminder, if you want to ask a question, please use the webcast functionality, "Ask a Question." I now hand over the call to Hernán San Pedro.
Okay. Thank you very much. There are no more questions. Thank you very much for attending the call, the full year 2023 results of Lar España Real Estate. Remember that all the teams of Lar España and our manager, Grupo Lar, are at your complete disposal for any additional question or information you could need. Thank you very much, and good afternoon.