Varia US Properties AG · SIX:VARN
Varia US Properties — FY2016 Earnings Presentation
30 slides from Varia US Properties's earnings presentation, Apr 26, 2017
Slide 1: Presentation Full-Year 2016 Results
PRESENTATION FULL-YEAR 2016 RESULTS 1 04/2017 Strictly confidential
Slide 2: Disclaimer
DISCLAIMER NEITHER THE INFORMATION IN THIS DOCUMENT NOR ANY RELATED MATERIALS be placed on, the accuracy, completeness or fairness of the information or opinions MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES OR DISTRIBUTED contained herein. None of the Lead Manager, Company or Asset Manager or
Slide 3: Agenda
AGENDA APRIL 26, 2017 Key achievements Financials FY 2016 Portfolio and pipeline Outlook Q&A 3 04/2017 Strictly confidential
Slide 4: Today's Speakers
TODAY’S SPEAKERS MANUEL LEUTHOLD JAUME SABATER MARTOS PATRICK RICHARD ■ Chairman, ■ Vice Chairman, ■ Delegate of the Board of Varia US Properties AG Varia US Properties AG Directors, Varia US ■ CEO of Stoneweg SA, Properties AG the Asset Manager of ■ Head of US Investments Varia US Properties AG of
Slide 5: Key Achievements
KEY ACHIEVEMENTS 5 04/2017 Strictly confidential
Slide 6: History and Milestones of Varia
HISTORY AND MILESTONES OF VARIA Company formation Selected non-strategic Full deployment of new capital September 28, 2015 property disposals expected by June 30, 2017 Sourcing of new IPO and listing of shares at opportunities SIX Swiss Exchange raising CHF 124.7 million Equity raising December 8, 2
Slide 7: Key Achievements 2016
KEY ACHIEVEMENTS 2016 ■ Successful IPO at SIX Swiss Exchange on December 8, 2016, raising USD 124.7 million new equity. The newly raised capital is expected to be deployed until end of June 2017 ■ Swiftly start to deploy the newly raised equity by acquiring a 346 units’ complex called Wood Hollow ne
Slide 8: Varia US Properties at a Glance
VARIA US PROPERTIES AT A GLANCE Geographic breakdown of Varia Properties as of December 31, 2016 8 04/2017 Strictly confidential
Slide 9: Varia on the SIX Swiss Exchange
VARIA ON THE SIX SWISS EXCHANGE STOCK DETAILS PERFORMANCE Listing SIX Swiss Exchange High 39.00 17.03.2017 Ticker symbol VARN Low 35.00 Swiss security number 30 528 529 22.02.2017 ISIN CH 030 528 529 5 Price change 7.14% Product type Mid & small caps Swiss shares Average volume 2,389 Security type R
Slide 10: Financials FY 2016
FINANCIALS FY 2016 10 04/2017 Strictly confidential
Slide 11: FY 2016 Key Figures
FY 2016 KEY FIGURES 1 Calculated on the weighted average number of ordinary shares outstanding. 11 04/2017 Strictly confidential
Slide 12: Consolidated Statement of Profit and Loss
CONSOLIDATED STATEMENT OF PROFIT AND LOSS Period from Sept. 28, 2015 Period from Sept. 28, 2015 In USD million through Dec. 31, 2016 through Jun. 30, 2016 Rental income 36.5 17.4 Other income 2.6 1.4 Bargain on purchase of subsidiary 4.2 4.2 Net gain from fair value adjustment on invest. property 21
Slide 13: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Assets in USD million As of December 31, 2016 As of June 30, 2016 Total current assets 98.0 31.4 Total non-current assets 351.8 303.1 Total assets 449.8 334.5 Liabilities and equity in USD million As of December 31, 2016 As of June 30, 2016 Total current
Slide 14: Operating Results
OPERATING RESULTS Period from Sept. 28, 2015 In USD million through Dec. 31, 2016 Realized income 39.1 Total Operating expenses (19.2) Net Operating Income 19.9 Administrative expenses (2.5) Operating result before debt, taxes and exceptional 17.4 Debt interests (8.4) Operating results before taxes
Slide 15: Portfolio and Pipeline
PORTFOLIO AND PIPELINE 15 04/2017 Strictly confidential
Slide 16: Portfolio Summary as of December 31, 2016
PORTFOLIO SUMMARY AS OF DECEMBER 31, 2016 16 04/2017 Strictly confidential
Slide 17: Portfolio Overview as of December 31, 2016 (1/2)
PORTFOLIO OVERVIEW AS OF DECEMBER 31, 2016 (1/2) 17 04/2017 Strictly confidential
Slide 18: Portfolio Overview as of December 31, 2016 (2/2)
PORTFOLIO OVERVIEW AS OF DECEMBER 31, 2016 (2/2) 18 04/2017 Strictly confidential
Slide 19: Examples of the Portfolio
EXAMPLES OF THE PORTFOLIO COUNTRYSIDE WOODLAND MANOR CITY STATE ACQUISITION DATE CITY STATE ACQUISITION DATE Daytona Beach Florida December 2015 Tulsa Oklahoma April 2016 NUMBER OF SURFACE GROSS NUMBER OF SURFACE GROSS UNITS AREA POTENTIAL RENT UNITS AREA POTENTIAL RENT 74 10,890 m2 638,500 USD 305
Slide 20: Investment Strategy
INVESTMENT STRATEGY THREE INDIVIDUAL INVESTMENT STRATEGIES ■ Investment in US multifamily real estate properties situated in strong urban locations in supply- constrained markets ■ Mid- to long-term investment perspective through three individual investment strategies: A: Value-adding → Acquisition,
Slide 21: Portfolio Expansion (since IPO)
PORTFOLIO EXPANSION (since IPO) Deals analyzed (72 discarded) 99 Selected for offer (7 lost) 27 ($596M) Under review (10) and awarded (2) 12 ($336M) Acquired 8 ($161M) ▪ The accelerated dynamics from the IPO will continue to support Varia’s growth strategy. The speed of the deployment of the new cap
Slide 22: Acquisitions since Capital Increase
ACQUISITIONS SINCE CAPITAL INCREASE CROWNE LAKE MARYLAND CITY STATE ACQUISITION DATE CITY STATE ACQUISITION DATE Columbia South Carolina February 7, 2017 St. Louis Missouri February 28, 2017 NUMBER OF SURFACE GROSS NUMBER OF SURFACE GROSS UNITS AREA POTENTIAL RENT UNITS AREA POTENTIAL RENT 272 27,78
Slide 23: Acquisitions since Capital Increase
ACQUISITIONS SINCE CAPITAL INCREASE BRIDGE HOLLOW WOODSTONE CITY STATE ACQUISITION DATE CITY STATE ACQUISITION DATE Fort Worth Texas March 15, 2017 Fort Worth Texas April 10, 2017 NUMBER OF SURFACE GROSS NUMBER OF SURFACE GROSS UNITS AREA POTENTIAL RENT UNITS AREA POTENTIAL RENT 280 19,384 m2 2.476.
Slide 24: Outlook
OUTLOOK 24 04/2017 Strictly confidential
Slide 25: Current Trends in the US Real Estate Market
CURRENT TRENDS IN THE US REAL ESTATE MARKET ■ Shift from home ownership to renting: Home ownership at just 63.7%, the lowest level in over 30 years ■ Demand for rental properties outpaces supply: Since 2010, the construction of multifamily houses has been increasing. To meet the high demand, more th
Slide 26: The Trump Impact
THE TRUMP IMPACT UNEXPECTED POSITIVE EFFECTS FOR VARIA Economic → Investments in infrastructure and defence stimulation → Tax reductions (individual, corporate), deregulation → Personal income growth accelerates and increases buying power → Higher wages for blue collar workers residing in secondary
Slide 27: Outlook 2017
OUTLOOK 2017 THREE PRIORITIES HAVE BEEN SET FOR 2017 INVESTMENT → Deployment and acquisition of new properties in the first semester 2017 → As of March 31, 2017 more than USD 106.6 million were already invested in six different properties located in TX, SC, WA and MO → Two additional deals in MO and
Slide 28: Q&A
Q&A 28 04/2017 Strictly confidential
Slide 29: Information
INFORMATION INVESTOR INFORMATION CONTACT INFORMATION Listing: SIX Swiss Exchange Michael Dueringer Currency: USD Investor Relations / Corporate Ticker symbol: VARN Communications ISIN: CH 030 528 529 5 Phone: +41 43 244 81 42 Listing date: December 8, 2016 E-mail: investors@variausproperties.com FIN
Slide 30: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION 30 04/2017 Strictly confidential