Good afternoon, ladies and gentlemen, and welcome to Lar España's half-year 2023 results presentation conference call. 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 first half 2023 result presentation. As always, the press release has been sent, and the presentation of financial reports are also available in our website and in the Lar España official website. Presenting for us today is Miguel Pereda, Vice Chairman of Lar España and Chairman of Grupo Lar, José Manuel Llobet, Chief Executive Officer of Commercial Real Estate of Grupo Lar, and Jon Armentia, Corporate Director and CFO of Lar España. After the presentation, we will open the floor for the Q&A session. As our speakers will explain, this first half of 2023 is full of milestone and records for our company. Now let me hand the call over to Miguel Pereda.
Thank you, Hernán, and good afternoon, everybody. First of all, I also want to thank all of you for being here today for our first half 2023 results presentation. I would like to start by pointing out how well-positioned Lar España is in the actual environment. At the macro level, inflation and GDP growth are significantly better in Spain than in the rest of the European Union. In addition, our company, Lar España, is well-prepared to face the macro challenges we are facing in this moment. We are able to cope with inflation, thanks to the fact that all our contracts are indexed. If you look at the occupancy figure, we don't see that the price increase is having any negative effect, as it remains at a very good level of 96%.
In relation to interest rates increases, Lar España has 100% of its debt at a fixed rate of 1.8%, with maturities between 2026 and 2028. In conclusion, as a country and as a company, we will be able to continue growing in the current complex macro environment. As Hernán commented before, this half of the year has been full of major milestones. We continue to focus on the profitability of our shareholders, and we have paid a dividend of EUR 50 million. In addition, we have launched a bond buyback program, achieving EUR 20.4 million in revenues in our P&L account. Fitch has also confirmed our BBB investment-grade rating with a stable outlook. We keep also with our ESG commitments as part of our strategy, increasing the number of certifications we hold.
From an asset standpoint, also, our valuations, last valuations remain stable. Also, finally, I'm very pleased to announce a very relevant milestones. That is a material divestment as part of our announced strategic plan. We just sold two assets, Vistah ermosa and Rivas Futura, for an amount of EUR 129.1 million, at a yield of 6.3%. That represents a 24% revaluation since acquisitions. This sale is completely aligned with the values, external valuations, that are included in our accounts. As I mentioned, the first half of the year has been a period of growth. The good performance of our centers has been reflected in our income statements, and you can see that is shown in slide number 7.
Our sales are up almost 8% compared to last year. They are up 16.1% if we compare to 2019, just before the pandemic. We see also the same behavior for visits, up 4% compared to 2022. This has been reflected in an increase in our gross rentals of 16.4%. That's compared with last year. Our growth in net income is 3.4 times the figure of 2022, without taking into account the change in asset valuations. Now let me hand over to José Manuel, that will dig into how the work has gone at a more operational level.
Okay. Thank you very much, Miguel, and good afternoon, everyone. We are now in page number 9, and we start with the operations. This time, I wanted to start with the leasing activity because we think that it is one of the main KPIs to evaluate the performance and quality of the assets. You can see here that during this, the first 6 months of the year, we have signed 100 leasing deals, which is a 10% of more than the 1,000 contracts that we have. This results in a rotation of 28,000 square meters, and what is more relevant, we've got an increase in rents of 7.7%. On page 10, we will keep on talking about asset base quality. The effort rate stood at 9.5%, including rents and service charges.
The increase of sales, as Miguel mentioned before, of 7.5% on 2022, and 38.6% on 2029, has done that despite the strong indexation and the rent uplift in the new leasing, we have maintained a super stable effort ratio, which provides extra security to our income stream. The level of occupation stays very high, at 96% near virtual occupancy, and our WALE is 2.6 years. Collection rate is also very high. It's virtual full collection. Thanks to these elements, occupancy, increase of rents in leasing and virtual full collection, our GRI growth is 16.4%, well above the average of European peers. In page 11, other interesting point that I wanted to remark today is the strength of sales.
Consumption is very strong, particularly in shopping centers and retail parks, that are improving their global market share to near 20%. Total growth from 2022 is 7.5%, and as you can see here, all the categories have experienced a very strong growth. I want to remark here the strength of fashion apparel, food, sports, and health and beauty, with high contribution on total sales in our shopping centers. Now, we move to page 12, to a short note about CapEx. We can say that we keep on track. We have almost repositioned and renovated all of the centers, and now CapEx is considerably reduced. We are focused on some accretive projects that increase the value of our assets. Good examples are As Termas, Gran Via de Vigo, and Megapark.
In As Termas, with the expansion of Zara Woman and the opening of a Zara Man, additional to the full renovation of the biggest Stradivarius. In Gran Via, we have concluded a global refurbishment, as well as Megapark, where we have renovated and created more space to be rented in the near future. Linked in page 13 with what I told you before about the leasing, here we have some examples of new openings. Inditex Group is growing its footprint in, in the global portfolio, and there are new names of restaurants and fashion. We keep on improving our, our leverage with the, with the best tenants and the best names in Spain. Just to complete a very short note about the technology, we, we cannot forget this.
In technology, you know that we are pioneers, and we are leaders in the market. This is one of the keys of differentiation for clients and tenants. We have consolidated the use of many tools that provide knowledge to us, information to our tenants, and experience to our clients. Now I turn over, to Jon Armentia, our Corporate Director and CFO.
Thank you very much, José Manuel. Good afternoon, everyone. As Miguel commented at the beginning, the good behavior in sales and visits has been reflected in our PNL. We see significant growth in both EBITDA, which is up almost 26% year -on- year, and EBITDA earnings, which is 3.4 x the 2022 figure. EBITDA per share stands at EUR 10.76. The valuations of our assets have remained stable, with a very slight decrease of 0.3% compared to June 2022. In slide 17, 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 buyback carried out in the first half of the year, which we will analyze later, the company's financial debt is at excellent level. I would like to point out that it is an optimal combination of debt, cost, and maturity. We maintain a prudent LTV level of 38.1%, with an average cost of debt of 1.8%. Furthermore, I would like to remark that all our debt is at fixed rates and secure and green, with an average debt maturity of 4.3 years. Additionally, we have a solid cash position of around EUR 95 million. Now, in slide 18, I would like to highlight the fact that Fitch has reaffirmed its BBB investment-grade rating with a stable outlook.
The agency has positively assessed our high occupancy levels, the current effort rate, the full recovery of collections after the pandemic, as well as the quality of the portfolio or the high ticket per visit. Now, I would like to do it on the buyback for an amount of EUR 119 million that we carried out in the first half of the year. After the tender offer launch in Q1, we have continued to report these bonds in the second quarter of the year. It is really a successful transaction in which we obtained an implicit discount on the reported of the bonds of 18%, equivalent to a total final price of EUR 97.7 million, that were fully paid using the company's cash resources.
Thanks to this, an amount of EUR 20.4 million of income has been reflected in the H12023 P&L. If we compare our figures with those of our main competitors, we see that Lar España, once again, shows better results in most of the operating and financial indicators. As for the dividend, this year, one of the highest ordinary dividend in our history was approved at the annual general meeting, EUR 50 million, EUR 0.6 per share, which have been paid in the second quarter of the year and which represents a dividend yield of 14.2%. Our commitment to shareholder returns is demonstrated by the fact that since our founding, the company has distributed more than EUR 325 million in dividends.
In slide number 22, and in relation to valuations, at June 2023, Lar España's gross asset value reached EUR 1.5 billion. I would like to highlight, once again, the strength of our assets, which have risen 53.2% compared to the acquisition price. Compared to our European competitors, our portfolio has also outperformed theirs, and this demonstrates the excellent management and the quality of our assets. As Miguel said before, this year, we are experiencing important milestones. Since our origins, at Lar España, we have carried out a successful asset rotation policy with the aim of creating the best portfolio of shopping centers and retail parks in Spain.
As can be seen in slide 23, our asset rotation policy has been very successful over the years, with an average exit yield of 5.2% and an average revaluation over acquisition price of 87.5%. At Lar, we are particularly proud to announce our two latest divestment, as they demonstrate our commitment to the strategic plan presented last year. These Vistahermosa and Rivas Futura retail parks have been sold for a price of more than EUR 129 million, which represents a revaluation compared to the acquisition price of 24%. These divestments, with a sale price above the book value, are a good example of the veracity of the values recorded in the company's balance sheet. For Lar España, ESG commitment is a cornerstone of our strategy. These are some of the last milestones and achievements of the company.
One of the most relevant is the climate risk analysis carried out on the company's asset portfolio in accordance with the international TCFD standard. In addition, the company has become a supporter of this international initiative. In terms of accessibility, the work carried out has enabled us to obtain three new universal accessibility certification in Alcampo, Megapark, and Parque Abadía , so that more than 60% of the portfolio now has this certification. From the corporate point of view, we continue to receive recognitions from international indices for the ESG strategy developed. An example of this is the ratification in 2023 of the triple B ESG rating granted by MSCI. Most important of all, these are not just words. As can be seen in slide 26, our scores are improving year-on-year, thanks to the implementation of pollution reduction measures and the commitment of everyone in this company.
During the first half of 2023, there is a clear reduction in water, electricity, and fuel consumption compared to H12022. Additionally, we have been able to reduce significantly emissions, and we are improving in waste recycling. At Lar, we seek to create a positive impact in the communities where we operate, as evidenced by the more than 1,500 hours dedicated to social actions and initiatives. Every day, we collaborate with NGOs, companies, and organizations to make the world we live in a better place, because at Lar, we truly believe that each and every one of us can make a difference if we put our minds to it. At asset level, we have also been recognized. We have obtained the ISO 14001 certification that recognizes Lar España's commitment to the environment as it promotes sustainability internally and externally.
We have also obtained the ISO 45001 certification for implementing a health and safety prevention system that ensures that Lar España shopping centers are safe and healthful. Finally, Lar España achieved that its entire portfolio, made up of 14 assets, was certified by BREEAM, which includes the degree of environmental sustainability in buildings. Finally, I would like to take a look at the P&L in slide 28. As you can see, the good operating results have resulted in a very healthy income statement. Starting with the line of revenues, that reached EUR 47.2 million, and that increased by 17% compared to 2022. Additionally, it is very important to highlight the extraordinary positive impact registered in our P&L, thanks to the bond buyback carried out during the first half of the year.
If we don't take into account the change in asset valuation, which is minimal and not related to the most essential operations of the business, net profit is 3.4 x higher than last year. That's all from my side, and now I give the floor again to Miguel for some final thoughts.
Thank you, Hernán . After all this, if I had to summarize this first half of the year, I would say that it has been very positive in all operational, financial, and also in corporate terms. Our rental income has grown strongly compared to the last year, and our net profit is 3.4 x higher than the last year figures, including asset valuations. Our financial profiling remains solid and prudent, with an LTV of 38% after paying the EUR 50 million dividend. Also, the execution of the bond buyback program has brought EUR 20.4 million of income to our income statement. Our asset valuations remain stable, and we continue with our shareholders' remuneration policy in the distribution of dividends that I just described.
Our ESG commitment remains very high, and we continue to achieve new milestones in these fields, with we consider crucial to our company. Finally, we made progress in fulfilling our strategic plan with the divestment of those two assets in the month of July, with a total value of EUR 129 million, which implies a revaluation of 25% over our acquisition price. Thank you very much for your attention. Hernán, if you, you're there, please, open the floor to questions.
Okay, perfect. Thank You very much, Miguel. Please, World TV, can you remember us the way the people have to send questions?
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.
Okay, thank you very much. We have several questions. The first one is from sell side. Good afternoon, I have a question regarding the disposals just announced. When will both transaction be formalized, and how do the transaction prices compare with the December's gross asset value? Thank you very much. This question, I think, that is for José Manuel Llobet.
Well, Both transactions have been completed this morning in front of the notary, so they are done right now. In terms of the value, we are slightly over the last valuation of both assets.
Okay. Thank you very much, José Manuel. The second one is from buy side. Do you think it is possible to make valuable acquisitions in this current environment? What areas are you focusing? I think that for José Manuel could answer the question, too.
Well, you know, that we, we monitor the market very closely, and, and we, we think that there are, there will be opportunities of assets to do good quality, following the thesis, the investment thesis of the company, of Lar España. Assets in, in which, you can unlock value with a proper, you know, professional and intensive management, and the, and the plans that we always create for, for the assets, and the marketing plans, and, and leasing plans that we implement. The answer is yes, there, there are opportunities in the market, and we are monitoring very closely.
Thank you very much, José Manuel. The next one is from buy side, too, for Miguel. Miguel, what are you thinking to use...? How are you thinking to use the EUR 129 million of the sale, applying to new acquisitions or another different thing?
Well, I think that the, the, the rotation plan that was announced is what is in the first part of our strategy. Of course, cash can be used for many, many things, but the first item that we are considering is rotation. selling assets that are more mature and buying assets, as José Manuel was explaining, where we think that with our work and, and with the management there is more more return to be, to be achieved. That would be the preference. Of course, there are others, and, and, and, but this will be the, the main topic.
Okay, thank you very much, Miguel. We have a similar question for Jon. Do you plan to launch a new bond buyback offer for bonds with part of the proceeds of the disposal?
Thank you for the question. Well, if we maintain, the discounts that our bonds, both of them, are trading as of today during this, this year, an additional bond buyback, is an option that we have on the table, and that could be interesting for the company. Well, it could be, it could be possible. It could be possible, yeah.
Thank you very much, Jon. Another one from buy side people for José Manuel. José Manuel, how easy or difficult has been the process to sell the couple of assets you have announced today?
Yeah. You know, you know, they are very complex transactions and all. They, they have always been, but it is true that in this moment, it's probably a little bit more difficult because the market is very tight right now. We haven't seen many transactions. Now, you, you know, to understand and to have a high knowledge of, of the market and, and also of the investors, because there are only not, you know, as much investors willing to buy than in the past. You need to know the momentum of different investors, the preferences, and then try to, try to contact in a good way. The element at the end is to have a good product. A real quality product is, is the, the, the keystone of any transaction, and is what we have.
We have a portfolio of excellent assets, and with this, you know, you have this, this possibility to do, to do transactions, as we have done with the, the KPIs that we have obtained. This is it. Hopefully, the market will open a little bit more in the coming months, but, at the end, it's going to be a very specialized market for specialized investors.
Thank you, José Manuel. We have another question for Miguel from sell side people. Miguel, as first responsible of the external manager of Grupo Lar, how do you see the performance of the company, the operating performance of the company for the next months, taking in account the difficult moments we are living in the macro side?
We, we don't see many changes. Of course, the, the, the environment is not making our life easier, but I think that the strength of the assets, the management platform that we have in place, makes our position strong. Strong to go through moments that clearly are not, are not the easiest ones. It's, it's today what we are seeing, and it's not for the future, it has been also for the past, is that best assets are performing better than the others. That put us in a clearly better and stronger position than many others to go through a market that is not a disaster, but it's, it's more challenging than, than it was.
Thank you very much, Miguel. last question for Jon. in terms of dividend, are you thinking to maintain the declared dividend policy as, 100% of EPRA earnings, + 50% of the, net effect of the divestments?
Well, at this moment, yes, the idea is to maintain the policy that we have, announced to the market on that. 100% of EPRA earnings, plus this year, and after the divestment, 50% of the divestment gains that we, that we'll take.
Thank you, John. There are no more question. Please, World TV, can you remember us the way all the people have in order to send the, the 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.
No more questions. Thank you very much to all for attending the meeting. Remember that all the company added to disposals, that you can call us in the moment you prefer, and we will try to complete all the information you could need. Thank you very much. Thank you for attending the call, and good afternoon.