Vbare Iberian Properties Socimi S.a. · BME:SCVBA
Vbare Iberian Properties Socimi — Investor Presentation (June 2018)
32 slides from Vbare Iberian Properties Socimi's investor presentation, Jun 1, 2018
Slide 1: Relevant Fact: presentation for shareholders and investors
THIS RELEVANT FACT IS A TRANSLATION OF THE SPANISH VERSION. IN CASE OF ANY DISCREPANCIES, THE SPANISH VERSION SHALL PREVAIL. Madrid, 1 June, 2018 Pursuant to the terms set forth in Article 17 of EU Regulation No. 596/2014 with regard to abuse of markets and Article 228 of the Consolidated Text of th
Slide 2: Investors Presentation 1Q 2018
VBARE Iberian Properties SOCIMI, S.A. Investors Presentation 1Q 2018 June 1st , 2018
Slide 3: Who we are
Who we are - First listed Spanish REIT exclusively dedicated to the Residential Rental Market (traded on the Spanish Alternative Investment Market – MAB) - Focused on creating an assets portfolio with a stable rental yield and high capital gain potential - Founded by VALUE BASE and AURA Real Estate
Slide 4: Who we are – Sponsors
Who we are – Sponsors VALUE BASE AURA REE • Leading Investment Bank in Israel • Spanish leading portfolio valuation advisor with more than 5 million • Established in 2013 by Victor transactions Shamrich and Ido Neuberger, previously co-CEOs of Meitav-Dash, • Specialized in advising Spanish and secon
Slide 5: Who we are – Team
Who we are – Team Results driven Management team and Board of Directors with strong track-record Fernando Acuña, MRICS Ido Nouberger Chairman of the board Director Founder & CEO of Aura REE CEO & Co-Founder, Value Base Ltd Over 10 years of experience in Real Estate More than 20 years of experience i
Slide 6: Our Strengths
Our Strengths Unique database Fully compliant vehicle Exclusive access to a unique proprietary data base Vehicle 100% compliant with Stock Exchange with more than 50 million comparables allowing Regulator requirements a very precise underwriting of each transaction Advised by Renta 4 Corporate as Re
Slide 7: Main events
Main events 2015 2016 2017 2018 • Incorporation of the Company • € 1.7 mn fund raising • € 7.2 mn fund raising • Bank financing € 1.5 mn • Application to REIT Regime • Bank financing € 4.4 mn • Bank financing € 2.2 mn • New fund raising (currently in (SOCIMI) • Listing at the Spanish progress) • € 1
Slide 8: Why we invest in the Spanish Residential Rental Market (1/3)
Why we invest in the Spanish Residential Rental Market (1/3) Solid growth of the Spanish economy over performing Strong job creation and increasing private consumption other OECD countries in Spain 30% 4% 27% 3% 26% 3,40% 24% 3% 3,1% 25% 22% 2,90% 2% 20% 19% 2,5% 2,5% 1% 17% 2,2% 2,2% 15% 15% 0% 1,8
Slide 9: Why we invest in the Spanish Residential Rental Market (2/3)
Why we invest in the Spanish Residential Rental Market (2/3) Robust demographic growth Social trends making rental residential more attractive to young generation 140 +32% population growth 15,50% +40% Still lagging 21,80% 130 behind Europe 30,50% 120 +16% 110 vs 69,50% 84,50% 100 78,20% 90 80 Spain
Slide 10: Why we invest in the Spanish Residential Rental Market (3/3)
Why we invest in the Spanish Residential Rental Market (3/3) House prices steadily increasing since 2013 bottom values Increasing residential rental prices backed by high demand and product shortage, especially in Madrid 200 Rental evolution (€/m2) Thousands Pre-crisis level 18,0 190 +10% 180 16,0 +
Slide 11: Creating long term value
Creating long term value Minimum target 4% stabilized net yield unlevered Metropolitan At least 10% areas in top discount over cities of Spain market prices Main investment criteria Value added strategy: No Refurbishing Development or renovation 10
Slide 12: Portfolio Overview (1)
Portfolio Overview (1) Portfolio evolution (assets units) 261 (2) 260 • Number of assets: 210 240 220 210 197 200 182 180 • GLA: 9,324 sqm 160 140 120 • Average sqm per unit: 44 sqm/unit 100 80 60 52 • Total acquisition cost: € 17.2 mn 40 20 0 Q4 2015 Q4 2016 Q4 2017 Q1 2018 Q2 2018 • Acquisition co
Slide 13: Extraordinary performance
Extraordinary performance GAV as of 31/03/2018 12% • Portfolio total GAV € 30.8 mn € 30,8 mn 50% 38% • Units total GAV € 30.5 mn Whole building Assets in the same building Scattered units • Units GAV €/sqm € 3,273 GAV Evolution • Fair value gain over total 63% 35.000 invested cost 30.000 25.000 + 63
Slide 14: Portfolio location
Portfolio location 39.9% of GAV located in Madrid center (inside M-30) 49.5% of GAV located in Madrid (outside M-30) 10.6% of GAV in the rest of Madrid metropolitan area 100% of the portfolio is currently located in Madrid metropolitan area, benefiting from fast-growing rents and asset values 13
Slide 15: Our assets – examples
Our assets – examples Juan Pascual Bariloche Santa Julia Vicente Carballal Carnicer Antonia Ruiz Soro 14
Slide 16: Strong operating results
Strong operating results Occupancy Rent growth 92% 1.600 € 9% 91% Thousands ERV yield 8% 1.400 € 8% 90% 89% 7% 7% 88% 1.200 € 6% 6% 86% 1.000 € 5% 84% 800 € 1.481 € 4% 3% 1.278 € 600 € 82% 1.076 € 3% 81% 400 € 80% 2% 483 € 200 € 1% 78% - € 0% 76% Income 2016 Income 2017 Income 2018 ERV (Annualized)
Slide 17: Proven Asset Management Capabilities
Proven Asset Management Capabilities 243 new leases signed + 11,8 % rent uplift € 7,4K Avg. CapEx invested per unit +200% occupancy growth > 26K Avg. views per month on online +63% GAV increase leasing platforms Outstanding performance through active Value Add Asset Management 16
Slide 18: Case Study – Brihuega
Case Study – Brihuega • Asset located in the south-west area of Madrid with good transport connections and nearby services • Avg. purchase price per unit € 69.6K • Additional CapEx invested per unit of € 3.2 K • Rents increase +12,8% • 8,85% stabilized yield on total invested capital • +102% GAV rev
Slide 19: Case Study - Tetuán
Case Study - Tetuán • Tetuan is one of the most attractive and fast- growing neighborhood in Madrid • 38% of portfolio units are located in this area • € 7,8 mn total invested capital • Additional CapEx invested of € 587K • Rents increase +13,8% • +50% GAV portfolio revaluation 18
Slide 20: Case study – Vicente Carballal
Case study – Vicente Carballal • 31 residential units located in the south east of Madrid • Acquisition price € 2.1 mn • Additional CapEx invested of € 100K • Rents increase over initial underwriting +9,7% • 9,1% stabilized yield on total invested capital • +106% GAV revaluation 19
Slide 21: Market opportunities
Market opportunities Pipeline by Location € 13 mn 64% € 104 mn € 11 mn 36% € 78 mn Initial analysis Advanced analysis Expected to close in Q2 Madrid Other • € 24 mn of investment opportunities in advanced analysis matching our investment strategy • Increasing volume of investment opportunities outsi
Slide 22: Key financial figures
Key financial figures 31 March 31 December € Thousand 2018 2017 GAV 30.781 28.542 Gross financial debt 7.865 6.423 Gross LTV 25,55% 22,50% Gross LTC 45,41% 39,61% Weighted average cost 1,75% 1,77% Fixed interest rate 75,0% 69,1% Average maturity (years) 13,54 13,98 Cash 5.663 8.374 • Strong balance
Slide 23: Capital structure
Capital structure (1) Share value evolution (€) 13,48 13,5 12,96 12,90 13 13 12,28 12,00 • Market capitalization € 29 mn 10,00 10,00 10,43 10,74 11,57 • Share actual listing price € 13.5 • EPRA NAV € 30.4 mn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 • EPRA NAV per share € 14.28 2015 2015 2015 2015 2016
Slide 24: Closing Remarks
Closing Remarks • Excellent operating results driven by active asset management • Outstanding portfolio revaluation of 63% over invested capital • Solid financial position to fund future investments • Strong investment momentum with € 24 mn of identified opportunities in advanced analysis 23
Slide 25: Annex
Annex 24
Slide 26: Annex – CVs of Board and Management team (1/3)
Annex 1 – CVs of Board and Management team (1/3) Fernando Acuña – Board of Directors and Management team Founder & CEO of Aura Ree & Taurus (a Spanish real estate broker company) CEO of Mortgage & Consumer Finance Bank - Deutsche Bank Credit (former) McKinsey & Company, engagement manager, Madrid
Slide 27: Annex – CVs of Board and Management team (2/3)
Annex 1 – CVs of Board and Management team (2/3) Yair Ephrati – Board of Directors and Management team CEO of Value Base M&A and director in various private and public companies, with over 20 years of investment banking and corporate finance experience CEO of Meitav-DS Mergers & Acquisitions, a le
Slide 28: Annex – CVs of Board and Management team (3/3)
Annex 1 – CVs of Board and Management team (3/3) Fabrizio Agrimi – General Manager Former Managing Director and Partner in Altan Capital (real estate arm of the Altamar Group, leading alternative asset manager in Spain) Previously part of the Investment Team at Aguirre Newman (2004-2006) Worked i
Slide 29: Annex – SOCIMI Requirements
Annex 2 – SOCIMI Requirements Requirement Legal form The SOCIMI must be a Spanish stock corporation (SA – Sociedad Anónima). Capital requirements Nominal capital of a SOCIMI must be at least €5m. There is no maximum threshold for external debt. Listing requirements SOCIMIs must be listed on an organ
Slide 30: Annex – Financial Statements
Annex 3 – Financial Statements Assets 31 March 31 December € Thousand 2018 2017 Non- Current Assets 32.881 28.620 Continuing operations 31 March 31 March Property plant and equipment 3 4 € Thousand 2018 2017 Investment properties 32.781 28.542 Non - Current financial assets 97 74 Current Assets 5.76
Slide 31: Disclaimer
Disclaimer This presentation has been prepared by VBARE Iberian Properties SOCIMI, S.A. (“VBARE”). This presentation does not constitute and should not be construed as an offer to sell or issue, or the solicitation of an offer to buy or acquire securities. This Presentation is solely for information
Slide 32: General Company Information & Contact
General Company Information & Contact VBARE Iberian Properties SOCIMI, S.A. C/ Almagro, 3 – 5º Izq. 28010 Madrid (Spain) www.vbarealestate.com Ticker: YVBA ISIN: ES0105196002 Fabrizio Agrimi General manager +34 91 277 75 78 +34 607 734 783 fabrizio.agrimi@vbarealestate.com Alberto Garcia de Novales
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