Hispania Activos Inmobiliarios SOCIMI : ANNOUNCEMENT OF FY 2016 RESULTS

• NAV per share increased by 25% compared with the adjusted 2015 year end's figure, reaching €13.72/share.
• GAV, according to CBRE's valuation, reached 2,008 million euro, increasing more than 580 million euro against 2015 year end's figure.

With 38 hotels and more than 10,775 keys, Hispania has become the first owner non-operator of hotels in Spain. Additionally, Hispania owns 25 office buildings with a total GLA of more than 153,000sqm and a land plot where two buildings with a GLA of more than 33,000sqm will be constructed under the highest possible quality standards and with a LEED Platinum certificate. Lastly, the company has five residential assets with more than 750 units under rent.

Hispania has continued to benefit from the positive evolution of the tourism industry in 2016, year when Spain has registered 76 million tourists, the majority of which came looking for the sun and beach. The average occupancy of Hispania's hotels during the year has reached 84% and the total RevPar has increased by 15% compared with 2015, resulting in a like-for-like rental increase of the hotel portfolio of 18%.

The company has also obtained relevant improvements in the rest of its other asset classes, having increased its office rents by 6% like-for-like and having reached proforma occupancy for 2016 of 85% after the latest contracts signed. As per residential, the occupancy of the flats for rent reached 95% and rents increased by 12%.

Other relevant aspect of the results has been the high revaluation obtained in Hispania's assets, according to third party valuators, adding a total of 17% more value in 2016 and together with new acquisitions has resulted in a GAV of 2,008 million euro. This important revaluation demonstrates the quality of the portfolio, the attractive prices at which transactions were closed, and the positive impact of the repositioning and renovations which Hispania is carrying out in its hotels, offices and residential assets.

During 2016 Hispania has continued with a strong investment pace having committed 360 million euro in new acquisitions. Furthermore, the company has shown its capacity to close unique opportunities, with high complexity attached and which allows to continue obtaining returns above market averages.

In the hotel segment, the largest and most relevant for Hispania, the Company seeks to build a unique resort portfolio thanks to the investment opportunities still available including the creation of large resorts, with unique characteristics and great attractiveness for international tourists. Examples of these strategies include the hotels in the San Miguel Cove in Ibiza (Balearic Islands), where Hispania plans to perform a full repositioning of the three hotels which were acquired in 2016, the extension of the Bahia Real hotel in the Island of Fuerteventura (Canary Islands) or the joint operation and possible expansion of the hotels Lanzarote Playa and Oasis in the Island of Lanzarote (Canary Islands).

Simultaneously to the publication of the 2016 results, Hispania has communicated through a relevant fact that Azora, Hispania's manager, has decided to pursue with the value return proposal contemplated in the IPO, consistent of the sale of all the assets of the company, individually, in portfolios or through the

sale or change of control of the company before 14 March 2020. At the same time, the Company has communicated its intention to ask for the approval from shareholders in the coming general shareholder's meeting, of the extension of the investment period up to 31 December 2017 (currently it expires on 14 March 2017), in order to invest the remaining investment capacity which is estimated at approximately 230 million euro.

Concha Osacar, Board Member of Hispania says: "we are convinced that we have a unique opportunity to generate high profitability for our shareholders in all our assets".

"Our plan includes the completion of the hotel strategy through the execution of the investment opportunities we have in the pipeline, the completion of the repositioning projects in hotels and the two other asset classes and to continue to generate operating improvements in our portfolio".

"The value return proposal which we have communicated, along with the extension of the investment period if it gets the relevant approval, will allow Hispania to maximize the value of the investments made and to crystalize it for its shareholders, with a perfect interest's alignment between shareholders and the managing team".

Noemí Sánchez: noemi@irazustacomunicacion.comNacho Miquel:nacho.miquel@irazustacomunicación.com Phone: +34 91 563 41 79

Isabel Troya: isabeltroya@azora.es

Pilar Vico de Haro: pilarvicodeharo@azora.es Phone: +34 91 310 6370

Hispania became listed on the Spanish Stock Exchange on the 14th of March of 2014 and as of today it has raised €1,083 million. Hispania's current portfolio includes more than 209,600 sqm in offices, more than 750 dwellings and more than 10,700 keys.

Hispania's goal is to capture investment opportunities in the Spanish Real Estate markets and creating a portfolio of high quality assets in the residential, hotel and offices sectors.

Hispania is part of the FTSE EPRA / NAREIT Global Real Estate Index, Ibex Mid Cap Index, Euronext IEIF REIT Europe Index and S&P Global Real Estate Index.

In accordance with best corporate governance international practices, Hispania´s Board of Directors, chaired by Rafael Miranda, has a majority of independent Board Members.

Hispania is externally managed by Azora Gestión S.G.I.I.C., S.A., which has granted it total exclusivity for all of its investment deal flow in Spain, except for student housing.

Grupo Azora (hereinafter "Azora") is a leading Spanish independent asset manager, founded in 2004 and with more than

€4,000 million of assets under management. Azora manages Hispania through its subsidiary Azora Gestión S.G.I.I.C., S.A., a regulated asset management company under the supervision of the Spanish Stock Exchange regulator (CNMV).

Azora's platform is one of the largest in Spain, with a team close to 400 professionals with extensive experience across the Real Estate value chain, including deal origination, structuring and investment, new developments and repositioning, asset and property management as well as disposal of individual assets or portfolios. Azora is specialized in four assets classes: residential (Azora manages the biggest portfolio under rent in Spain, with 12,391 dwellings), student housing (also managing the biggest portfolio in the country, with 8,530 beds) and the biggest hotel portfolio under rent in Spain, with more than 11,900 rooms.