First HalF results 2015

Transcription

1 First Half Results 2015

2 CONTENTS - First Half Results 2015 I. Executive Summary... 3 Ii. Update on Property Investments A. Offices B. Residential C. Hotels D. Events subsequent to the closing of the period Iii. Hispania Activos Inmobiliarios Corporate Transactions A. Capital increase B. General Shareholders Meeting iv. Summary of the Financial Statements A. Statement of Financial Position and Consolidated Income Statement B. Analysis of Financial Statements as of 30 June V. Appendices A. Shareholder Structure B. Composition of the Board of Directors and its Dependent Committees... 40

3 I. Executive Summary First Half Results 2015

4 4 Executive Summary Key information In the second quarter of 2015, Hispania Activos Inmobiliarios, S.A. (hereafter Hispania ) signed a binding agreement with Barceló Group (hereafter Barceló) to create the first hotel REIT (BAY) focused on the resort segment, in which Spain is a world leader. According to this agreement, Hispania will initially acquire 11 hotels (3,946 rooms) and a shopping centre, with the option to acquire a further 5 hotels (2,151 rooms) and another shopping centre. After completing this transaction and exercising the option on the assets contained in the second phase, Hispania will have invested almost 340 million euros, with an 80.5% share in the new REIT. Barceló Group will hold 19.95% with the option of increasing this to 49% in future capital increases. It will continue to operate the hotels acquired through leasing contracts for an initial period of 15 years. Additionally, in the second quarter of the year Hispania acquired four assets: the Gran Hotel Atlantis Bahía Real 5* GL, the Suite Hotel Atlantis Fuerteventura Resort 4* Sup., and the Foster Wheeler and Cristalia 4B office buildings. These assets have a combined value of million euros, excluding transaction costs. As a result, from the time of its stock market listing to the end of the second quarter of 2015, Hispania has invested in 32 assets with a consolidated gross value of 710 million euros (1), implying a gain of 14 million euros on the consolidated book value at the close of the period (2.1%). The initial use of investment capacity as a result of these acquisitions is 669 million euros (2). Further, the net asset value, according to EPRA recommendations, amounted to 894 million euros, or euros per share. In the first half of 2015, the Group recorded total income of 13.2 million euros (13 million euros in rental income), consolidated EBITDA of -0.4 million euros and consolidated net profit of 10.9 million euros. In the second quarter of 2015 the company obtained additional financing amounting to 70.1 million euros, putting total Group financial debt at million euros. (1) Including the appraisals performed by CBRE at the end of June 2015 (2) Considering the purchase price, acquisition costs and net of the sale of the Isla del Cielo units and capex implemented up to 30 June 2015

5 5 Summary of Activity in the Second Quarter The office portfolio has an SLA of almost 120,000 sqm, which is composed of 20 assets managed by the Group. At the end of the first half of 2015, the portfolio had an occupancy rate of 64%, which stands at 83% when discounting the buildings being completely renovated (Murano Building, NCR Building, Orense Building (ground floor) and the building on Av. Burgos (ground floor) and the Cristalia Building). At 30 June 2015, average income from the occupied portfolio was 12.6 euros/sqm. In terms of GAV, the appraisals made at the end of the period added a total value of 321 million euros, divided between Madrid (78%), Barcelona (19%) and Malaga (2%). These appraisals implied a revaluation of 7 million euros (2.3%) With regard to the office portfolio, in the second quarter of 2015 Hispania signed a rental agreement with tenant NCR for the building located at Comandante Azcárraga, 3 for a GLA of 3,139 sqm, putting the occupancy rate at 88%. This agreement will take effect in the third quarter of The residential portfolio includes a total of 684 units, which at the end of the financial year had an occupancy rate of around 83% and average income of 8.8 euros/sqm. In terms of GAV, the appraisals made at the end of the period added a total value of 167 million euros, divided between Madrid (59%) and Barcelona (41%). These appraisals implied a revaluation of 4 million euros (2.7%) In terms of investment in the residential portfolio, in the first half of 2015 the refurbishment of the exterior façade and communal areas of the Isla del Cielo complex was completed, for a total amount of 1.5 million euros, while the housing units continue to be progressively reformed. To date, 13 have been completed. As a result of the investment in the communal areas and housing units these are now being leased for a significantly higher amount than the average building rental. Hispania will continue to reposition the empty units in order to unlock the maximum value from this asset. The hotel portfolio at the end of the first half includes a total of 1,439 rooms. Hispania also has 6,097 rooms from the BAY portfolio, putting the total number of rooms at 7,536. All the hotels are leased by well-known operators. In terms of GAV, CBRE performed appraisals of the buildings at the close of the year, adding a total of 222 million euros for the hotel segment, with a revaluation of close to 3 million euros (1.4%). The GAV of the hotels business at the close of the first half of 2015 is distributed between the Canary Islands (69% excluding the BAY portfolio), the Costa del Sol (17%), Barcelona (17%) and Madrid (6%). With regard to repositioning the hotels portfolio, highlights include the start of the repositioning of the Meliá Jardines del Teide Hotel, which is expected to be completed at the end of the year, following the refurbishment of its communal areas and all the rooms (to a different degree).

6 6 Total GAV of 710 million euros accumulated from the listing of Hispania up to the end of the first half of 2015 is detailed below, divided into the three main asset categories defined in the company s investment strategy: Breakdown of GAV by asset type 30/06/2015 Breakdown of GAV by location 30/06/2015 6% 31% 24% 22% 21% 45% 51% Offices Hotels Residen al Madrid Málaga Barcelona Canarias Hispania has maintained a steady rate of investment since it was listed for trading in 2014 to the first half of 2015, as shown in the diagram below: GAV ( Mn) (1) Y/E 2014 January 2015 Investments (2) 2Q 15 Value upli 2Q 15 TOTAL 2Q GAV in million euros, broken down by acquisi on date and appraisal value except for the acquisi ons made in 1Q 2015, at book value plus capex in 1Q 2. Includes the comple on of the last phase of the Sanchinarro project and the recent acquisi ons of Atlan s, the Cristalia Building and the Foster Wheeler Building Number of assets At the end of June 2015, Hispania s asset portfolio was located mainly in Madrid (51% of total Group GAV), Barcelona (21%) and the Canary Islands (22%).

7 7 LOCATION OF ASSETS ACQUIRED UP TO 30 June 2015: OFFICES HOTELS RESIDENTIAL Comandante Azcárraga, 3 Building (Madrid) Av. de Bruselas Building (Madrid) Arcis Building (Madrid) Talos Building (Madrid) Rafael Morales Building (Madrid) Pechuán Building (Madrid) Mízar Building (Madrid) NCR Building (Madrid) Murano Building (Madrid) Ramírez de Arellano Building (Madrid) Comandante Azcárraga, 5 Building (Madrid) Orense Building (single floor) (Madrid) Av. de Burgos Building (single floor) (Madrid) Príncipe de Vergara Building (Madrid) Foster Wheeler Building (Madrid) Cristalia Building (Madrid) Glòries - Diagonal Building (Barcelona) Glòries - Gran Vía Building (Barcelona) On Building (Barcelona) Málaga Plaza Building (Málaga) Hotel NH Pacífico (Madrid) Hotel NH SS de los Reyes (Madrid) Hotel Hesperia Ramblas (Barcelona) Gran Hotel Bahía Real (Fuerteventura) Suite Hotel Atlantis Fuerteventura Resort (Fuerteventura) Hotel Meliá Jardines del Teide (Tenerife) Hotel Guadalmina (Marbella) Hotel Vincci Málaga (Málaga) Residential Units SS de los Reyes (Madrid) Residential Units Majadahonda (Madrid) Residential Units Sanchinarro (Madrid) Residential Units Isla del Cielo (Barcelona)

8 8 total offices Residential Hotels Gross Asset Value ( 000 ) (1) 709, , , ,700 Number of Assets (3) GLA (2) 119,926 (2) 66,349 (2) n/a Units (3) 684 1,439 Average Occupancy Level (4) 64% 83% n/a Average WALT (5) Years n/a Years Gross Asset Income ( 000 ) 12,992 7,547 2,188 3,257 (1) Gross Asset Value as of CBRE appraisals of 30/06/15 (K ) (2) Gross Leasable Area. Includes in offices 1,286sqm of commercial area and 1,083sqm of commercial area in Residential (3) Units in residential are dwellings, and in hotels equals keys (4) Occupancy of the office space including commercial area, and in residential taking into account the dwellings (commercial area within residential is fully leased) (5) Weighted Average Term Length in years of the existing contracts, taking into account break option and end of contract (or existing extensions in hotels) (without considering WALT of the comercial unit in Hotel Hesperia Ramblas) total 30/06/15 ( 000 ) Rental Income 12,992 Other income 233 EBITDA -383 Asset Revaluation 14,441 Earnings After Tax 10,967 Profit Attributable to Parent Company 10,694

9 9 Hispania Activos Inmobiliarios Corporate Transactions A. Capital increase On 27 April 2015, Hispania successfully finalised a capital increase of 337 million euros aimed at institutional investors. The operation took the form of an accelerated private placement and met strong demand which allowed it to be completed in three hours. Total demand exceeded 844 million euros at the placement price of euros per share, a discount of 4.7% on the closing price of euros on the day of the operation. The funds raised are already allowing Hispania to take advantage of investment opportunities arising -some of which, such as the Atlantis and Deka operations were carried out in June this year- and it is actively working on others that have been identified in the substantial pipeline studied by Hispania to date. B. General Shareholders Meeting On 29 June 2015 Hispania held its first Ordinary General Shareholders meeting. All proposed resolutions were approved by shareholders. The first group of resolutions (items 1 to 3) related to the examination and approval of the Company s Individual and Consolidated Financial Statements, the application of 2014 profit or loss and approval of the management activity of the Board of Directors during the year. Items 4 to 6 concerned proposed changes to the Company s by-laws, General Shareholders Meeting Regulations and Board of Directors regulations in order to adapt their content to the recent amendment of the Corporate Enterprises Act to include improvements in corporate governance and in technical areas. Item 7 referred to specific changes in the Investment Manager Agreement signed by Hispania, Azora Gestión, S.G.I.I.C., S.A.U., and Azora Capital S.L. on 21 February Item 8 sought approval for the shortening of the notice period for Extraordinary General Meetings of Shareholders in accordance with the Corporate Enterprises Act. Item 9 referred to the proposed capital increase for the nominal amount of 41,295 million euros, with the share premium to be determined by the Board of Directors recognising preferential subscriptions rights and allowing for incomplete subscription. Item 10 concerned delegation to the Board of Directors, for a five (5) year period, the authority to increase share capital up to one-half of the share capital existing at the date of delegation and to exclude the preferential subscription rights of the Company up to a maximum nominal amount, overall, equal to 20% of the share capital of the Company on the date of this authorisation Item 11 referred to delegation to the Board of Directors for a period of five (5) years, of the authority to issue debentures or bonds exchangeable and/or convertible into shares of the Company or of other Group and warrants on newly-issued shares or outstanding shares, and the authority to determine the procedures and formats to convert or swap the debentures or bonds for shares. Item 12 requested from shareholders the authorisation to the Board of Directors for the acquisition of treasury stock. Item 13 referred to the directors remuneration policy.

10 10 Item 15 concerned the advisory vote on the Annual Report on Company Remuneration for The content of the resolutions approved is detailed in section III. B) of this report. Events Subsequent to the Close of the Period I. Agreement with the operator of the Guadalmina Hotel Hispania has reached an agreement with the current operator of the Guadalmina Hotel, whereby the latter will cease to manage the hotel from 3 November II. Withdrawal of offer in the VTO for Realia Business, S.A. On 23 July 2015 Hispania notified the CNMV securities market regulator of a Significant Event in which it stated that Hispania was withdrawing from the VTO for the shares of Realia Business, S.A. which was authorised by the CNMV on 11 March 2015, following a competing bid submitted by Inmobiliaria Carso S.A. de C.V. and authorised by the CNMV on 23 June Hispania Real decided not to increase its bid in accordance with the provisions of Royal Decree 1066/2007 of 27 July on public share purchase offers. Consequently, in accordance with the provision of Article 33.5 of this Royal Decree 1066/2007, all and any acceptances of the public offer that may have been made by Hispania Real became null and void as of 23 July 2015.

11 II. Update on Property Investments First Half Results 2015

12 12 II. Update on Property Investments A. Offices In the second half of 2015 Hispania acquired two office buildings in Madrid. Foster Wheeler building LOCATION Foster Wheeler building c/ Gabriel García Márquez, 2. Las Rozas. Madrid DESCRIPTION On 25 June 2015, Hispania Real acquired an office building in located in Calle Gabriel García Márquez, 2, in Las Rozas in the north east of Madrid. The building has a GLA of 11,058 sqm distributed over three floors and 544 parking spaces. The building is fully occupied by the US engineering company Foster Wheeler through a lease contract. The cost of acquisition of the asset was 23.3 million euros (excluding acquisition costs) which were paid in full out of Hispania s equity.

13 13 Cristalia 4B building LOCATION CRISTALIA 4B building Vía de los Poblados, 3. Parque Empresarial. Madrid DESCRIPTION On 25 June 2015, Hispania Real acquired an office building in the Cristalia industrial area in the north east of Madrid with a GLA of 10,928 sqm distributed over seven floors and 202 parking spaces. This is a Class A building with LEED Gold certification. The cost of acquisition of the asset was 31.2 million euros (excluding acquisition costs) which were paid in full out of Hispania s equity. The key details of the transaction can be found in the summary of the main parameters of the offices portfolio. Hispania s Office Portfolio Hispania currently manages a portfolio of offices comprising 20 assets with a total gross leasable area (GLA) of 118,640 sqm of office space, 1,286 sqm of commercial space and 2,462 parking spaces. At the end of the first half of 2015, the portfolio had an occupancy rate of 64%, which increases to 83% excluding the buildings being completely renovated (Murano Building, NCR Building, Orense Building (ground floor) and the building on Av. Burgos (ground floor) and the Cristalia Building). At 30 June 2015, average income from the occupied portfolio was 12.6 euros/sqm. In terms of GAV, the appraisals made at the end of the period threw up a total value of 321 million euros, divided between Madrid (78%), Barcelona (19%) and Malaga (2%). This implied a gain of 7 million euros on the consolidated book value at the close of the period (2.3%) During the second quarter, work started on the Málaga Plaza building, the Arcis building, the Avenida de Bruselas building and the Poeta Rafael Morales building. Work is aimed mainly at refurbishing and updating communal areas of the buildings, allowing them to be repositioned on the market. With regard to asset management, in the second quarter of 2015 Hispania signed a rental agreement with tenant NCR for the building located at Comandante Azcárraga, 3 with a GLA of 3,139 sqm, increasing its occupancy rate up to 88%. This agreement will take effect in the third quarter of 2015.

14 14 MAIN OFFICE PARAMETERS AS AT 30 JUNE 2015 gross occupancy net total leasable total monthly office initial investment area investment rent space main walt reversion gav ( Mn) (1) location (sqm) ( / sqm) (1) ( /sqm) (5) (%) tenants (years) (6) Yield (%) (7) ( Mn) (8) Glòries - Diagonal Building 21.7 Barcelona 9,526 (3) 2, % Atos Origin % 23.1 Glòries - Gran Vía Building 19.6 Barcelona 8,680 2, % Bull % 20.2 On Building 18.7 Barcelona 6,908 2, % CINC % 19.0 Comandante 15.6 Madrid 5,138 2, % Inmobiliaria % 15.6 Azcárraga, 3 Chamartín, Building Alpama Av. de Bruselas Building 7.0 Madrid 3,458 2, % Bosch, Flir, IDL % 8.0 Arcis Building 11.0 Madrid 4,691 2, % Incadea Spain, % 11.2 Quental Technologies, Ed.Médica Panamérica Talos Building 8.0 Madrid 3,636 2, % IDEO % 8.3 Rafael Morales 3.9 Madrid 2,763 1, % Orange España, % 4.8 Building Centro Genética Avanzada, Riso Ibérica Pechuán Building 12.7 Madrid 3,579 3, % Grupo Ilunion % 14.5 Av. de Burgos Building (single floor) 1.8 Madrid 762 2, % n/a 0% 5.8% 1.9 Murano Building 18.9 Madrid 7,574 2, % n/a 0% 7.0% 19.0 Orense Building (single floor) 3.4 Madrid 1,535 2, % n/a 0% 7.9% 3.5 NCR Building 26.8 Madrid 11,418 2, % NCR, AT&T % 27.5 Mízar Building 22.1 Madrid 7,348 3, % Grupo Ilunion, Paramount % 24.0 Comandante Azcárraga, 5 Building 8.3 Madrid 3,547 2, % Grupo Ilunion % 8.9 Ramírez de Arellano Building 22.0 Madrid 6,364 3, % Publicis % 22.3 Málaga Plaza Building 6.5 Málaga 4,289 1, % Aegón, Deloitte, Integrated % 6.7 Príncipe de Vergara 25.4 Madrid 6,724 (4) 3, % Babel Sistemas de % 26.6 (2) Building Información, Corporación Mutua Foster Wheeler 23.8 Madrid 11,058 2, % Foster Wheeler % 23.8 (2) Cristalia 4B 31.7 Madrid 10,928 2, % n/a 0% 6.2% 31.8 (2) TOTAL PORTFOLIO ,926 2, % % TOTAL ADJUSTED (9) ,709 2, % % (1) Including acquisition prices, transaction costs and implemented capital expenditure as of 30 June 2015 (2) Excluding transaction costs (3) Includes 728 sqm of commercial area (4) Includes 559 sqm of commercial area (5) Rent of the office and commercial leased area without expenses as of June 2015 (6) Weighted average lease term from 30 June 2015 until first break option and total contract length (7) Based on 100% occupancy rate with current net market rents and total investment as of 30/06/15 (8) According to RICS valuations by CBRE as of 30 June 2015 (9) Adjusted without the buildings under repositioninig (NCR Building, Orense Building (single floor), Av. Burgos Building (single Floor), Murano Building and Cristalia Building)

15 15 B. Residential In the second quarter of 2015, Hispania completed the acquisition of the Sanchinarro residential complex by closing the final phase of the transaction which was left pending at the close of the first quarter This final phase includes 57 unprotected dwellings plus a commercial space leased to a supermarket under a long-term contract. Hispania s Residential Portfolio Hispania currently manages a residential portfolio comprising four assets, three in the Madrid region (Madrid, Majadahonda and San Sebastían de los Reyes) and one in Barcelona. The residential portfolio includes a total of 684 units, which at the end of the financial year had an occupancy rate of around 83% and average income of 8.8 euros/sqm. In terms of GAV, the appraisals made at the end of the period added a total value of 167 million euros, divided between Madrid (59%) and Barcelona (41%). This implied a gain of 4 million euros on the consolidated book value at the close of the period (2.7%). Hispania has completed the refurbishment of the exterior façade and communal areas of the Isla del Cielo complex, for a total amount of 1.5 million euros, in addition to the reform of 13 housing units. The Company will continue to reposition the empty units in order to unlock the maximum value from this asset. As a result of the investment in the communal areas and housing units these are now being leased for a significantly higher amount than the average building rental. This increase in rents should gradually be reflected in Hispania s results, increasing the average income from the asset. In the third quarter of 2015 Hispania will start to reposition the Sanchinarro residential complex. This will include the refurbishment and improvement of communal areas, updating the building s exterior and interior image (façade, foyers, etc) and increasing the services provided to include a swimming pool, padel tennis court and children s play area. This reform will require an investment of approximately one million euros, including the gradual reform of the residential units to maximise the value of the asset. This will allow Hispania to increase rents on the reformed housing units in respect of the building s average rental costs and this is expected to lead to a gradual increase in average rental income and, subsequently, the occupancy rate. MAIN RESIDENTIAL PARAMETERS AS AT 30 JUNE 2015 Gross AVerage total leasable total gross investment a Area (square dewllings investment monthly occupancy giry GAV ( Mn) (1) location meter) (#) ( /sqm) (1) rent ( /sqm) (%) (%) (4) ( mn) (6) Residential Units Isla del Cielo 63.3 Barcelona 22, , % 5.6% 68.6 Residential Units S.S.Reyes 13.5 Madrid 8, , % 6.3% 14.6 Residential Units Majadahonda 17.9 Madrid 9, , % 6.2% 20.5 Residential Units Sanchinarro 61.8 Madrid 24,948 (2) 285 2,255 (3) % 5.8% 63.7 TOTAL PORTFOLIO , , % 5.8% (1) Including acquisition prices, transaction costs and implemented capital expenditure as of 30 June 2015 (2) Additionally the buildings have 1,083 sqm of commercial area (3) /sqm taking into account the price paid for the dwellings, excluding the commercial area and parkings linked to this area (4) Based on 100% occupancy rate and gross market current rents and total investment as of 30/06/15 (5) Yield of book value of the residential part excluding the commercial area (6) According to RICS valuations by CBRE as of 30 June 2015

16 16 C. Hotels In the second quarter of 2015 Hispania signed a binding agreement with the Barceló Group relating to the BAY transaction and acquired two hotels in the Canary Island operated by the Atlantis Group. Transaction with Barceló Group On 14 April 2015, Hispania Real signed a binding agreement with Barceló Group (hereafter Barceló) to create the first hotel REIT (BAY) focused on the resort segment, in which Spain is a world leader. According to this agreement, Hispania initially acquires 11 hotels (3,946 rooms) and a shopping centre, with the option to acquire a further 5 hotels (2,151 rooms) and another shopping centre. After completing this transaction and exercising the option on the 5 additional hotels, Hispania will have invested almost 340 million euros, with a 80.5% share in BAY. Barceló will hold 19.95% with the possibility of increasing this to 49% in future capital increases. It will continue to operate the hotels acquired through lease contracts for an initial period of 15 years. The purchase price of the 16 hotels and 2 shopping malls was 423 million euros. Once the option has been exercised on the phase, BAY is expected to have equity of 189 million euros (excluding transaction costs) and funding of 234 million euros from a syndicate of banks. Hispania will contribute a maximum of 152 million euros to the capital (total attributable investment of 340 million euros). This transaction includes most of Barceló s resort hotel portfolio under ownership in Spain, which are located in the Canary Islands, Andalusia and the Balearic Islands; these are tourist destinations which have shown a satisfactory performance in recent years, and are expected to continue strengthening their position in the future. Of the 16 hotels, over 90% of the rooms are in the four star category, and the majority of the hotels are leaders in their respective areas of influence. Hispania and Barceló have agreed a further joint investment of 35 million euros to update and reposition some of these properties. The diagram below summarises the proposed structure of the transaction:

17 %(1) 19.5% (1) BAY REIT INVESTMENT PHASE OPTION EXERCISE PHASE Until 15 November December April 2016 JANDÍA PLAYA JANDÍA MAR TEGUISE BEACH VARADERO CALA VIÑAS HAMILTON PONENT PLAYA PUEBLO IBIZA PUEBLO MENORCA ISLA CRISTINA CABO DE GATA CC EL CASTILLO I Holders of Optional Asset Portfolio BARCELÓ HOTELES CANARIAS, S.L. LANZAROTE FUERTEVENTURA CASTILLO BEACH RESORT LAS MARGARITAS CC EL CASTILLO II POBLADO DE VACACIONES, S.A. PUEBLO PARK Implied portfolio value (2) (3) Hispania Equity Contribution (2) (3) Original Asset Portfolio million euros million euros Optional Asset Portfolio million euros 45.9 million euros (1) Barceló has the option of increasing its stake to 49% (2) Assuming the vehicle acquires the Original Asset Portfolio and the put option is exercised. Assuming final ownership of 80.5% for Hispania Real. Excluding capex commitment and transaction costs (3) Data as at the date of this document. Nevertheless, the financing associated to each of the portfolios may vary, with the amount to be paid out changing in each phase

18 18 Gran Hotel Atlantis Bahía Real LOCATION Gran Hotel Atlantis Bahía Real Av. Grandes Playas, s/n Corralejo, Fuerteventura Las Palmas DESCRIPTION On 18 June 2015, the Hispania Group acquired Gran Hotel Atlantis Bahía Real 5* GL. The hotel, which has 242 rooms, was opened in 2003 and is located on the beach front, a stone s throw from the Dunas de Corralejo natural park, whose beaches have recently been classified as among the best in Spain. The hotel is a reference in Fuerteventura and one of the leading 5* GL hotels in the Canary Islands. The acquisition price of the asset was 65 million euros (excluding transaction costs) which was paid in full out of Hispania s equity.

19 19 Atlantis Fuerteventura Resort Suite Hotel LOCATION Suite Hotel Atlantis Fuerteventura Resort c/ Las Dunas, s/n Fuerteventura. Las Palmas DESCRIPTION The 4* Atlantis Fuerteventura Resort Suite Hotel with 383 rooms is also located in the north of the island of Fuerteventura in Corralejo. It has three restaurants, seven bars, a spa, seven outside pools, 3 tennis courts and garden areas distributed over approximately 50,400 square metres. The acquisition price of the asset was 40 million euros (excluding transaction costs) which was paid in full out of Hispania s equity. Hispania s Hotels Portfolio Hispania now has eight hotels in its portfolio which are managed by different operators at different sites throughout Spain. The hotel portfolio at the end of the first half includes a total of 1,439 rooms. Hispania also has 6,097 rooms from the BAY portfolio, putting its total number of rooms at 7,536. In terms of GAV, CBRE performed appraisals of the buildings at the close of the year, adding a total of 222 million euros for the hotel segment, with a revaluation of close to 3 million euros (1.4%) on the consolidated book value at the close of the period. The GAV of the hotels business at the close of the first half of 2015 is distributed between assets in the Canary Islands (69% excluding the BAY portfolio), the Costa del Sol (17%), Barcelona (17%) and Madrid (6%). The reform of the Meliá Jardines del Teide Hotel got underway in the second quarter of The reform involves the reform of the communal areas, refurbishing 70% of the rooms and upgrading the category of the remaining 30%. The work will cost around 6.5 millon euros, and is expected to be completed at the end of 2015.

20 20 MAIN HOTEL PARAMETERS AS AT 30 JUNE 2015 total TOTAL Gross Initial INvESTMENT category ROOMS INvESTMENT contract contract Reversion gav ( Mn) (1) location (*) (number) ( /key) (1) operator type lenght yield (%) (3) ( Mn) (5) Hotel Guadalmina 22.5 Marbella 4* ,383 - Fixed Rent Nov-2015 (2) 9-10% 27.0 Hotel NH Pacífico 6.2 Madrid 3* ,587 NH Hoteles Fixed rent + Variable Nov % 6.3 depending on results years extension Hotel NH SS de los Reyes 7.1 Madrid 3* 99 71,584 NH Hoteles Fixed rent + Variable April % 7.2 depending on results years extension Hotel Meliá Jardines del 38.4 Tenerife 4* all inclusive ,093 Meliá Fixed rent + Variable January % 38.8 Teide depending on results years extension Hotel Hesperia Ramblas 17.9 Barcelona 3* ,305 Hesperia Fixed rent + Variable February % (4) 18.4 depending on results (with rent increase until 2019) Hotel Vincci Málaga 10.6 Málaga 4* ,417 Vincci Fixed rent + Variable January % 10.7 depending on results Gran Hotel Bahía Real (6) 70.0 Fuerteventura 5* Deluxe ,059 Atlantis Fixed rent + Variable Jun % 70.0 depending on results years extension Suite Hotel Atlantis 43.0 Fuerteventura 4* ,396 Atlantis Fixed rent + Variable Jun % 43.3 Fuerteventura Resort (6) depending on results years extension TOTAL PORTFOLIO , , ,% (1) Including acquisition prices, transaction costs and implemented capital expenditure as of 30 June 2015 (2) Hispania has reached an agreement with the current operator of the hotel by which he will conclude management by November 2015 (3) Based on actual stabilized contracts signed (after agreed rental increases) and total investment as of 30/06/15, except for the Guadalmina Hotel and Meliá Jardines del Teide, increased by the total capex and contracts expected after capex implementation has been completed (4) Excluding the commercial area (5) According to RICS valuations by CBRE as of 30 June 2015 (6) Includes part of the variable price accounted for in book value but not paid yet ( 6.9M for both hotels)

21 21 D. Events subsequent to the close Agreement with the operator of the Guadalmina Hotel Hispania has reached an agreement with the current operator of the Guadalmina Hotel, whereby the latter will cease to manage the hotel from 3 November The Hispania Group remains in talks with several prestigious operators with regard to the future management of the asset and the reforms to be carried out at the hotel. The scale of the reform will depend largely on the operator that takes over and hotel s category after the reform. Withdrawal of bid in the VTO for Realia Business, S.A. On 23 July 2015 Hispania submitted a significant event notice to the Spanish securities market regulator (CNMV) stating that it was withdrawing its bid for the VTO for shares of Realia Business, S.A. authorised by the CNMV on 11 March 2015 following a competing bid submitted by Inmobiliaria Carso S.A. de C.V. and authorised by the CNMV on 23 June Hispania Real decided not to improve its bid in accordance with the provisions of Royal Decree 1066/2007 of 27 July on public share purchase offers. Consequently, in accordance with the provision of Article 33.5 of this Royal Decree 1066/2007, all and any acceptances of the public offering that may have been made by Hispania Real became null and void as of 23 July 2015.

22 III. Hispania Activos Inmobiliarios Corporate Transactions First Half Results 2015

23 23 III. Hispania Activos Inmobiliarios Corporate Transactions A) Capital increase At the close of the first quarter of 2015 Hispania had invested or committed almost 100% of its initial investment amount of around 890 million euros, having leveraged 40% of the 534 million euros raised in its initial public offering in March Therefore, the consolidated value of the Hispania s portfolio of planned investments is broken down among the following 46 assets as described below: - 16%, Residential 684 units - 27%, Offices 97,940 sqm of GLA - 57%, Hotels (of which approximately 45% corresponds to BAY (phases I and II), 814 hotel rooms from the original portfolio plus 6,097 BAY assets (total: 6,911 rooms). These assets have associated capex which Hispania expects to realise during the second half of 2015 for an approximate amount of 45 million euros (including the BAY assets). In April, Hispania has a sound flow of attractive investment opportunities, most of which are off-market transactions (65%) for a total amount of 2,400 million euros. Of this amount, 214 million euros related to transactions at an advanced stage of development (at exclusivity and/or due diligence phase) and 2,200 million euros were active transactions, under study but less imminent. Following the authorisation approved at the Extraordinary Shareholders Meeting held on 26 December 2014, on 27 April 2015 Hispania successfully completed a capital increase of 337 million euros aimed at institutional investors, the proceeds of which will be used for further investments within the framework of Hispania s strategy. A strategy that focuses on value added transactions offering hidden value, with attractive entry prices and requiring intensive asset management and occasionally corporate restructuring. Excluding preferential subscription rights, the capital increase was carried out by means of an accelerated bookbuilding process that was completed in three hours and oversubscribed by 2.5 times, at a price of euros/share, implying a discount of 4.7% on the previous day s closing price of euros/share. Following the capital increase, Hispania has a net amount of 327 million euros to invest in the next few months. After its most recent acquisitions, capex to 30 June 2015 and the purchase of the complete BAY portfolio, Hispania has used up 70% of its total investment capacity, with a leverage ratio of 40% and following the capital increase in April.

24 24 GAV ( Mn) (1) Y/E 2014 January 2015 Investments 2Q 2015 (2) Value upli 2Q 2015 Total 2Q 2015 Post-Closing (3) 1Q 2015 TOTAL 1. GAV in million euros, broken down by acquisi on date and appraisal value except for the acquisi ons made in 1Q 2015, at book value plus capex in 1Q 2. Includes the comple on of the last phase of the Sanchinarro project and the recent acquisi ons of Atlan s, the Cristalia Building and the Foster Wheeler Building 3. Includes the whole BAY por olio Number of assets B) General Shareholders Meeting Hispania s first General Shareholders Meeting was held on at 12 pm on 29 June 2015 at first call at the Hesperia Castellana Hotel. All the resolutions on the agenda were approved. The breakdown of the shareholders meeting was as follows: Shareholders attending 2,139,628 shares 2.591% of share capital Shareholders represented 59,642,065 shares % of share capital Total shareholders 61,781,693 shares % of share capital

25 25 The tables below show details of the votes and percentage in favour of each item on the agenda voted on: in FAVOUR number RESOLUTIONS OF VOTES % 1 61,775, ,775, ,755, ,397, ,653, ,689, ,689, ,689, ,984, ,396, ,689, ,689, ,396, ,689, ,689, ,091, ,396, ,689, ,396, ,198, ,741, ,537, ,239, ,564, ,482, ,775, ,376, Resolutions adopted The following resolutions were adopted by Hispania s Ordinary General Shareholders Meeting: ONE- Examination and approval of: (i) The Company s 2014 Individual Financial Statements, including: - Balance Sheet - Statement of Comprehensive Income - Statements of Changes in Equity - Statement of Cash Flows and notes to the financial statements - Management Report, and (ii) The Company s 2014 Consolidated Financial Statements, including: - Consolidated Statement of Financial Position - Consolidated Statement of Comprehensive Income

26 26 - Consolidated Statements of Changes in Equity - Consolidated Statements of Cash Flows - Notes to the consolidated financial statements - Management Report TWO. Examination and approval of the proposed allocation of profit or loss for the year ended 31 December THREE. Examination and approval of the management of the Company by the Board of Directors in FOUR. Amendments to the By-laws in order to adapt their content to Law 31/2014, of 3 December, by which the Corporate Enterprises Act is amended for the improvement of corporate governance, and to incorporate other improvements of a technical nature Amendment of article relating to the issue of bonds and other securities Amendment of articles relating to the General Meeting: participation of the Meeting in matters of management, notice and right to attend Amendment of articles relating to the Board of Directors: duties, remuneration, appointment of positions, meeting procedures, Audit Committee and Appointments and Remuneration Committee. Amendment of articles relating to the Annual Corporate Governance Report, Annual Report on the Remuneration of the Board Members and web page Removal of the transitional provision. FIVE. Amendments to the Regulations of the General Shareholders Meeting in order to adapt their content to Act 31/2014, of 3 December, by which the Corporate Enterprises Act is amended for the improvement of corporate governance, and to incorporate other improvements of a technical nature Amendment relating to the competencies of the General Shareholders Meeting Amendments relating to the notice of the General Shareholders Meeting Amendments relating to the right to information of the shareholders Amendments relating to the right to attendance and representation Amendment and introduction of the article relating to the adoption of resolutions Renumbering of articles Removal of the transitional provision. SIX. Information on the amendment to the Regulations of the Board of Directors, in order to adapt their content to Law 31/2014, of 3 December, by which the Corporate Enterprises Act is amended for the improvement of corporate governance, and to incorporate other improvements of a technical nature. SEVEN. Examination and approval of changes to certain aspects of the Investment Manager Agreement between the Company and Azora Gestión, S.G.I.I.C., S.A.U., as agreed and amended on 21 February 2014, and authorisation for the proposed changes to the general authority granted to the aforementioned investment manager Modifications and clarifications on the functioning and interpretation of the investment restrictions under section 1 of Schedule 3 (Investment Restrictions) of the Investment Manager Agreement Modifications and clarifications on matters requiring the prior approval of the Executive Committee and of the Board of Directors of the Company under paragraphs 2 and 3, respectively, of Schedule 3 (Investment Restrictions) of the Investment Manager Agreement Other modifications and clarifications of a technical nature Modification of the terms of the general power of attorney granted by the Company to the Investment Manager.

27 27 EIGHT. Approval of the shortening of the notice period for Extraordinary General Meetings of Shareholders in accordance with article 515 of the Corporate Enterprises Act. NINE. Share capital increase for the nominal amount of 41,295,000 euros through the issue and circulation of 41,295,000 new ordinary shares with a par value of 1 euro each, along with the share premium to be determined by the Board of Directors, which will be fully subscribed and paid through monetary contributions, recognising preferential subscription rights and allowing for incomplete subscription. Delegation to the Board of Directors, along with the power to sub-delegate, of the precise powers needed to carry out the resolution and to determine the conditions thereof for all aspects not foreseen in the Resolution, by virtue of article a) of the Corporate Enterprises Act, as well as to modify article 5 of the By-laws. TEN. Delegation to the Board of Directors, with the express power to sub-delegate and for a five (5) year period, of the authority to increase share capital in accordance with article b) of the Corporate Enterprises Act, up to one-half of the share capital existing at the date of delegation. Delegation of the power to exclude preferential subscription rights in respect of any capital increases that may be resolved by virtue of this authorisation. This authorisation is limited to a maximum par value, overall, equal to 20% of share capital at the date of this authorisation. ELEVEN. Delegation to the Board of Directors, with express power of substitution, for the period of five (5) years, of the power to issue debentures or bonds exchangeable and/or convertible into the shares of the Group or non-group company, and warrants on newly issued shares or outstanding shares of the Group or non-group company. Establishment of the criteria for determining the conditions and ratios for conversion, exchange or exercise. Delegation to the Board of Directors, with express power to sub-delegate, of the necessary powers for establishing the conversion, exchange or exercise conditions and ratios, and, in the case of convertible bonds and warrants on newly-issued shares, to increase capital by the amount necessary to meet requests for the conversion of bonds or the exercise of the warrants, with the power, in the case of the issuing of convertible securities and/or warrants on newlyissued shares, to exclude the preferential subscription rights of the Company s shareholders, although this power will be limited to a maximum nominal amount, overall, equal to 20% of the share capital of the Company on the date of this authorisation. TWELVE. Authorisation to the Board of Directors for the derivative acquisition of treasury stock in accordance with the limits and conditions laid down in the Corporate Enterprises Act. Delegation of powers to the Board for the execution of this resolution. Revocation of the previous authorisations. THIRTEEN. Approval of the Remuneration Policy for board members. FOURTEEN. Delegation of powers for the formalisation and execution of all the resolutions adopted by the ordinary General Shareholders Meeting, for conversion thereof into a public instrument and for its interpretation, amendment, addition, development and registration. FIFTEEN. Advisory vote of the Annual Report on Company Remuneration for 2014.

28 IV. Summary of the Financial Statements at 30 June 2015 First Half Results 2015

29 29 IV. Summary of the Financial Statements at 30 June 2015 A. Consolidated Balance Sheet and Profit and Loss Account Thousands of euros 30/06/15 31/12/14 Intangible assets Investment property 709, ,365 Equity instruments Non-current financial assets 98,328 2,556 Deferred tax assets 13,210 13,210 NON-CURRENT ASSETS 821, ,515 Trade and other receivables 2,765 2,150 Accounts receivable from public authorities 3,724 2,719 Other current financial assets 57,397 2,379 Cash and cash equivalents 241, ,201 CURRENT ASSETS 305, ,449 TOTAL ASSETS 1,126, ,964 Thousands of euros 30/06/15 31/12/14 Share capital 82,590 55,060 Share premium and other reserves 794, ,909 Parent s treasury shares -1,001 - Net profit/(loss) 10,693 17,132 Non-controlling interests 10,410 10,137 EQUITY 897, ,238 Long-term provisions Non-current bank borrowings 177,293 56,414 Current borrowings with third parties 10,000 10,000 Other non-current financial liabilities 6,230 4,380 Deferred tax liabilities 6,009 4,913 NON-CURRENT LIABILITIES 199,674 75,105 Current bank borrowings 7,476 5,254 Current borrowings with third parties Other current financial liabilities 1,684 1,619 Trade and other payables 19,443 5,988 Accounts payable to public authorities CURRENT LIABILITIES 29,385 13,621 TOTAL LIABILITIES AND EQUITY 1,126, ,964 The comparative information contained in the Consolidated Statement of Financial Position corresponds to the period of eleven months and nine days ending 31 December At that date the Hispania Group was formed by Hispania Activos Inmobiliarios, S.A. (parent), Hispania Real SOCIMI, S.A.U. and Hispania Fides, S.L. Hespérides Bay, S.L., Dunas Bay Resort, S.L. and Hospitia, S.L. were included in the consolidation scope in June 2015.

30 30 Thousands of euros 30/06/15 30/06/14 REVENUE 12, Other operating income Operating expenses -13,608-1,681 EBITDA ,126 % of revenue -2.9% % Depreciation and amortisation -4-2 Proceeds from disposal of assets - 2 Revaluation of assets 14,441 - NET OPERATING INCOME 14,054-1,126 % of revenue 108.2% % Finance income 135 1,537 Finance costs -2,127 - NET FINANCE INCOME/(EXPENSE) -1,992 1,537 PROFIT/(LOSS) BEFORE TAX 12, % of revenue 92.8% 74.2% Income tax -1, NET PROFIT/(LOSS) 10, % of revenue 84.4% 65.7% Non-controlling interests PROFIT/(LOSS) FOR THE PERIOD ATTRIBUTABLE TO THE PARENT 10, The comparative information included in the consolidated statement of comprehensive income corresponds to 30 June At that date, the Hispania Group was formed by Hispania Activos Inmobiliarios, S.A. (Parent) and Hispania Real SOCIMI, S.A.U. Hispania Fides, S.L. was included in the consolidation scope on 8 July 2014 while Hespérides Bay, S.L., Dunas Bay Resort, S.L. and Hospitia, S.L. were included in the consolidation scope in June 2015.

31 31 B. Consolidated Cash-flow Statement Thousands of euros 30/06/15 30/06/14 Profit/(loss) for the period before tax Adjustments to profit/(loss): Depreciation and amortisation 4 2 Impairment corrections Gain/(loss) on sale of investment property - -2 Finance income Finance costs Change of fair value in financial instruments Change in fair value of investment property Adjusted profit/(loss) Interest received Interest paid Other amounts received/paid (Increase) / decrease in receivables (Increase) / decrease in other current assets Increase / (decrease) in payables Increase / decrease in other assets and liabilities Other non-current assets and liabilities Total net cash flows from operating activities Investment in: Group companies and associates Intangible assets Investment property Financial assets Disposals of: Investment property Other financial assets Total net cash flows from investing activities Proceeds from/(payments for) equity instruments: Issue of equity instruments Purchase of own equity instruments Interest on bank payables Reimbursements and repayments to banks Total net cash flows from financing activities NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at start of period of continuing operations Cash and cash equivalents at end of period The comparative information included in the consolidated statement of comprehensive income corresponds to 30 June At that date the Hispania Group was formed by Hispania Activos Inmobiliarios, S.A. (Parent) and Hispania Real SOCIMI, S.A.U. Hispania Fides, S.L. was included in the consolidation scope on 8 July 2014 while Hespérides Bay, S.L., Dunas Bay Resort, S.L. and Hospitia, S.L. were included in the consolidation scope in June 2015.

32 32 B. Analysis of the consolidated financial statements of the Hispania Group at 30 June 2015 The main highlights of the interim condensed consolidated financial statements at the end of the first six months of 2015 are as follows: The Group s investment activities, entailing the acquisition of seven assets for a total price of 266 million euros (Hotel Vincci Málaga, the Sanchinarro Residential Complex, the Príncipe de Vergara building, the Foster Wheeler building, the Cristalia Building, Gran Hotel Atlantis Bahía Real and Atlantis Fuerteventura Resort Suite Hotel). The Group signed new bank borrowing agreements for a total nominal amount of 127 million euros, with an average repayment date of around 9 years. Interest rate risk on borrowing was covered by 5-7 year hedges on 100% of the nominal amount pending payment. The share capital increase of 337,243 thousand euros in April 2015 through the issue of 27,530,000 new shares of par value 1 euro each, with an euro share premium. Capital gains generated by the Group s assets portfolio at the end of the first six months of 2015, in the amount of 14.4 million euros. The investment agreement with the Barceló Group signed on 14 April 2015 to create the first hotel REIT (BAY), leading to an initial disbursement of 95 million euros in the first six months of the year. Under this agreement 16 hotels and two shopping centres will be acquired for a total of 423 million euros. Consolidated Income Statement At the end of the first half of 2015 the Group reported a net profit of 10,693 thousand euros (364 thousand euros at 30 June 2014) due to the income obtained from real estate assets and capital gains generated by these following the appraisals performed by CBRE using RICS methodology at 30 June Revenue The Group reported revenue of 12,992 thousand euros. This amount includes the income obtained from rentals as well as the costs passed on to tenants, net of discounts and rebates.

33 33 The graphs below show the breakdown of revenue by type of asset at 30 June 2015 and their share of the total. Thousands of euros % 3,257 2,188 25% 17% 7,547 58% Offices Hotels Residen al Offices Hotels Residen al Breakdown by type of asset Thousands of euros Offices Residential Hotels Corporate expenses GrOUP REVENUE 7,547 2,188 3,257-12,992 EBITDA 4,069 1, , % of rental income 54% 56% 24% n/a -3%

34 34 Results by business line include general expenses relating to the corresponding investment department and are shaped by the repositioning and improvement processes carried out on specific assets as part of the Group s strategy to position its assets as high quality real estate investments, expenses incurred by the Group in the Barceló operation - included in the Hotels business line- and the recognition of the full annual impact of taxes associated with the operation of real estate assets, primarily Property Tax of 2,664 thousand euros, in accordance with the prevailing regulatory framework. Operating expenses The operating expenses in the consolidated income statement at 30 June 2015 may be broken down as follows: 4,593 thousand euros in fees paid to Azora Gestión, SGIIC, S.A. in respect of its management contract with the Group; these are calculated on the basis of the NAV following the EPRA criteria: 998 thousand euros at 30 June Group corporate management and analysis of investment opportunities which were not followed up: 1,876 thousand euros. The total expense in 2015 relating to Property Tax on each of the Group s real estate assets: 2,664 thousand euros. Operating expenses relating to property investments made by the Group and investment studies currently underway: 3,422 thousand euros. At 30 June 2015, all operating expenses corresponded to costs related to investment studies and advisory services for the Company. Financial profit/(loss) In the first half of 2015, the Group obtained financial income of 135 thousand euros. The financial costs corresponded to the cost of loans of Group companies, including hedging costs, together with those of the guarantees relating to the Realia Business, S.A. VTO. The weighted average interest rate of the Group s debt at 30 June 2015 was 2.6%. At that date, 83% of the Group s financial debt was hedged against changes in interest rates. Income tax Income tax expense incurred by the Group at the close of the first half of 2015 corresponds mainly to the tax impact of the revaluation of property investments made by Group companies not registered as REITs.

35 35 Consolidated Statement of Financial Position Non-current assets Investment property As noted above, the Group made seven new property investments in the first half of 2015 for a total purchase price of 266 million euros. The net variation in investment property was due to the aforementioned acquisitions, the capital gains on property investments following their allocation at fair value in line with the appraisals carried out by CBRE at 30 June 2015 under RICS standards, and capex during the period. The table below shows movements in investment property in the first half of 2015 (million euros): Trend in property investment (million euros) Investment at 31/12/2014 Capex and Teide LFL Capital gain LFL New investment 2015 Capex Capital gain new new investment investment 30/06/2015 The breakdown of the value of the assets by type is as follows: Thousand euros % 221, ,400 31% 24% 320,596 45% Offices Hotels Residen al Offices Hotels Residen al

36 36 Non-current financial assets The Group is obliged as part of its rentals business to place the deposits paid by the tenants of the leased properties with the relevant public agencies in the Autonomous Communities where the leased properties are located. This item includes all the amounts deposited with such bodies, as well as other deposits and additional guarantees delivered by the lessees. In the first six months of 2015 the Group recognised 95 million euros under this heading in favour of Barceló Corporación Empresarial, S.A. as an advance payment for the shares of BAY Hotels & Leisure, S.A.U., by virtue of the investment agreement signed between the subsidiary Hispania Real SOCIMI, S.A.U. and the Barceló Group. Deferred tax assets Deferred tax assets correspond to negative taxable income which the Group expects to recover in a reasonable period of time. The deferred assets have been contributed mainly by Hispania Fides, S.L. and they mainly arise as a result of prior years losses and other temporary differences. The Group recognised these assets at a tax rate of 25% in accordance with the corporation tax rates established under Law 26/2014 for the years beginning 31 December 2015 onwards since most of the deferred tax assets are expected to be recovered from this year onwards. Current assets Trade and other receivables At 31 March 2015, the amount of 2,765 thousand euros (2,150 thousand euros at 31 December 2014) mainly represented trade receivables expected to be collected in the short term and to accrued revenues to be billed to customers for Property Tax accordance with the prevailing regulatory framework (1.1 million euros). Accounts receivable from public authorities The detail of this item at 30 June 2015 and 31 December 2014 corresponds to VAT refundable and withholdings on movable property with regard to interest received. Other current financial assets At the end of the first half of 2015 this heading mainly includes interest in term deposits which the Group can convert to cash in the short term in the amount of 55,000 thousand euros at 30 June 2015 (2,000 thousand euros at 31 December 2014), and pre-paid expenses rising from the Group s operations, mainly related to insurance policies that will be accrued during the year. Cash and cash equivalents Cash and Cash Equivalents include the Group s current accounts and other liquid assets with financial institutions with excellent credit ratings. At 30 June 2015, 157,709 thousand euros of Cash and Cash Equivalents are restricted to securing the maximum price arising from the VTO for the Hispania Real Group company to acquire the shares from the shareholders of Realia Business, S.A. This restriction will remain in force until Hispania Real meets the obligations arising from this offer or until the offer is cancelled or annulled.

37 37 Equity and liabilities Share capital, share premium, parent company shares and other reserves. On 27 April 2015 an agreement was reached to increase the Parent s share capital by 27,530 thousand euros by issuing 27,530,000 new shares of par value 1 euro each and a share premium of euros. Therefore, on 30 June 2015 the Company s share capital was represented by 82,590,000 shares of par value 1 euro each, fully subscribed and paid up (55,060,000 shares of par value of 1 euro each and a share premium of 9 euros at 31 December de 2014). This heading also includes contributions from shareholders of 540 thousand euros and the measurement of interest rate hedging derivatives arranged by the Group to hedge the risk of interest rate rises with respect to its mortgage loans. At the close of the first half, the Parent had acquired 76,000 own shares for a total amount of 1,001 thousand euros (it held not treasury stock at 31 December 2014). On 30 June 2015 the Parent drew up a liquidity contract with Beka Finance, S.V., S.A. to assist the liquidity of its transactions and the stability of its quoted share price. Non-controlling interests The change in non-controlling interests is due to the Once Group s holding in the results of Hispania Fides, S.L. during the first half of Non-current liabilities Long-term provisions Long-term Provisions corresponds to a provision recognised by Hispania Fides, S.L. to address various technical disputes and litigation. The Group considers that the current provision covers the costs that may derive from such litigation. Non-current and current borrowings from banks and others During the first half of 2015, the Group signed new borrowing agreements with credit institutions for a total nominal amount of 127 million euros, with an average maturity of around eight years. The interest rate risk on these borrowing agreements has been hedged with 5-7 year swaps, which hedge 100% thereof during their lifetime. The maturity profile of the borrowings from banks and others at 30 June 2015 is shown in the graph below. This includes the non-current loan signed with Corporación Empresarial Once, the interest accrued but not paid on that loan, the interest accrued on the associated hedging instruments, and the transaction costs of the borrowing which will be included in the consolidated income statement depending on the corresponding effective interest rate.

38 38 Thousands of euros 161, ,210 7,917 6,241 9,496 10,125 1 year 2 years 3 years 4 years Over 5 years Total At 30 June 2015, 83% of the Group s financial debt was hedged against changes in interest rates. This debt is made up mainly of borrowings with maturity dates of over 10 years. However, given the repayment schedule over the life of these borrowings, the weighted average duration of total Group debt stands at 7.5 years. Other non-current financial liabilities Other Non-current Financial Liabilities also includes the guarantees and deposits paid by tenants to secure their rental agreements. The deposits and guarantees are expected to mature at long term. This heading also includes liabilities arising from the marking to market of the interest rate hedges of the Group s borrowings, discussed above. Deferred tax liabilities This heading is essentially made up of deferred tax liabilities arising from the capital gains on the property investments of Hispania Fides, S.L. at 31 December 2014 and 30 June Current Liabilities Other current financial liabilities This heading includes mainly deposits received from tenants which are expected to be returned in the short term, in the amount of 679 thousand euros (726 thousand euros at 31 December 2014), together with the options to purchase of certain tenants of housing developments in the amount of 1,005 thousand euros (893 thousand euros at 31 December 2014). Trade and other payables The balance under this item consists mainly of amounts pending payment to third parties in respect of services provided to the Group in the course of its usual activities.

39 39 V. Appendices First Half Results 2015