Fideicomiso Irrevocable F/2061 · BIVA:FHIPO/14
Fideicomiso Irrevocable F/2061 — FHipo — Investor Presentation (March 2021)
30 slides from Fideicomiso Irrevocable F/2061's investor presentation, Mar 31, 2021
Slide 1: Corporate Presentation
Inversión que Transforma INVESTOR RELATIONS inverstorrelations@fhipo.com Corporate Presentation Ph: +52 (55) 4744-1100 As of March 31st, 2021 www.fhipo.com 1 [ENGLISH TRANSLATION FOR INFORMATION PURPOSES ONLY, IN THE EVENT OF ANY CONFLICT, THE SPANISH TEXT SHALL PREVAIL]
Slide 2: Investment highlights
Investment highlights 1 About FHipo 8 2 Experienced management Macroeconomic team with robust corporate environment governance 3 7 Attractive Mexican Attractive risk-reward mortgage market profile with strong dividend fundamentals generation \ 4 Co-participation agreements 6 with INFONAVIT, FOVISSST
Slide 3: 1. About FHipo
“Hige 1. About FHipo
Slide 4: FHipo is the first vehicle in Latin America similar to an American Mortgage REIT
FHipo is the first vehicle in Latin America similar to an 1 American Mortgage REIT… REITs market in Mexico Mexican REIT market is created in 2011 2011 First lodging REIT in Mexico is created in 2012 First infrastructure and education 2012 REITs in Mexico 2013 The internalization of FHipo 201
Slide 5: FHipo and its key milestones since its IPO
1 FHipo and its key milestones since its IPO Mortgage origination 1st & ONLY MREIT in Mexico Ps. 8.63 bn IPO in November 2014 and Ps. 3.30 bn Follow-On in April 2016 Created to acquire, originate and manage mortgages in Mexico Co-participation agreements with and , the largest mortgage lenders with
Slide 6: Organizational Structure
1 Organizational Structure Committees: Technical Committee Audit >100% > 50% Corp. Practices >100% Nominations >100% CBFI Holders Independent Members 100% Holders Assembly Technical Committee (TC) Subsidiary of FHipo, formed by Internal Advisor professionals with experience in Internal Advisor and M
Slide 7: FHipo's response to COVID-19 Pandemic
1 FHipo’s response to COVID-19 Pandemic Preventive Measures Taken by FHipo Against COVID-19 Pandemic FHipo’s Strengths Against COVID-19 Pandemic • We have been working remotely since March 17th, 2020, without 1 2 3 impacting FHipo’s operations. Mitigated risk in exposure to exchange rate with no Fin
Slide 8: 2. Macroeconomic environment
2. Macroeconomic environment 8
Slide 9: Occupation, Employment and Mortgage Rates in Mexico
2 Occupation, Employment and Mortgage Rates in Mexico The population contributing to the Mexican Social Security Institute (IMSS) has had a constant growth in the last years and it has stabilized in recent months. Formal economy stability and low levels of unemployment (Insured workers in 000s and u
Slide 10: 3. Attractive Mexican mortgage market fundamentals
3. Attractive Mexican mortgage market fundamentals 10
Slide 11: INFONAVIT's Mortgage Loan Origination
3 INFONAVIT’s Mortgage Loan Origination INFONAVIT expects to originate ~370 thousand loans per year for the next five years (2021 to 2025), which translates in a CAGR (’20 – ’25) of 5.0% INFONAVIT’s mortgage loan origination 2020 - 2025 INFONAVIT’s projected mortgage portfolio registered within its
Slide 12: FOVISSSTE's Mortgage Loan Origination
3 FOVISSSTE’s Mortgage Loan Origination FOVISSSTE’s Main Sources of Financing (TFOVI, FOVISCB and TFOVISCB issuances) (Issued amounts in billion pesos) Historical Average = 12.8 2013 = 17.0 2014 = 16.6 2015 = 16.0 2017 = 10.0 2020 = 14.0 6.9 4.6 5.5 6.0 5.4 5.2 10.2 5.8 7.0 6.8 3.2 12.0 10.0 6.0 8.0
Slide 13: Sub-penetrated mortgage market with steady growth levels
3 Sub-penetrated mortgage market with steady growth levels The market expects to continue with strong growth rates Low penetration of the Mexican mortgage market (Ps. in billion, in nominal values) (% of mortgage loans / GDP) 145.3% $2,687 $2,435 $2,248 $2,079 $2,147 $1,890 $1,720 64.0% $1,515 $1,60
Slide 14: 4. Co-participation agreements with INFONAVIT, FOVISSSTE and YAVE
4. Co-participation agreements with INFONAVIT, 14 FOVISSSTE and YAVE
Slide 15: FHipo currently participates in the following mortgage origination programs
FHipo currently participates in the following mortgage 4 origination programs: Program Characteristics Income Level 4.5 VSM onwards 3.5 VSM to 5.0 VSM 1.0 VSM onwards N/A N/A Target Destination Home acquisition (guaranteed by a valid mortgage) Borrower’s Age 18 - 64 years Maximum Loan ~ USD $86.9 K
Slide 16: INFONAVIT – Green Mortgage
4 INFONAVIT – Green Mortgage At INFONAVIT, every loan has a Green Mortgage. This means that all houses financed through INVONAVIT, have eco-technologies, which are accessories that save water, electricity and gas. What is a Green Mortgage? • It is an additional amount given to every loan in order to
Slide 17: Mortgage origination process
4 Mortgage origination process FHipo works as an strategic ally of INFONAVIT, FOVISSSTE and YAVE through their mortgage loan origination. The charts below show the structure used by FHipo to participate loans with these institutions Participation structure in INFONAVIT’s Programs Structure of the as
Slide 18: Mortgage origination process (Cont.): About YAVE
4 Mortgage origination process (Cont.) About YAVE (Before Smart Lending) Structure of the strategic alliance between FHipo and YAVE YAVE is a technological platform that seeks to penetrate the Mexican mortgage market through the origination of mortgage loans via an 5 efficient, dynamic and accurat
Slide 19: 5. Strong growth potential
5. Strong growth potential19
Slide 20: FHipo's strengths
5 FHipo’s strengths First mover advantage with proven track record 1 regarding origination and financing strategies Strategic investments aimed to maximize the return to 2 the holders of the company's CBFIs Agreements with INFONAVIT, FOVISSSTE and YAVE to 3 acquire and originate mortgage loans Solid
Slide 21: 6. High-quality portfolios
6. High-quality portfolios21
Slide 22: Low-risk mortgage portfolio with predictable low losses
6 Low-risk mortgage portfolio with predictable low losses In this slide we illustrate the development of our Non-Performing Loan (NPL) ratio, as well as our levels of loan reserve coverage. Levels of Non-Performing Loan (“NPL”) Ratio with Conservative Allowance for Loan Losses Allowance for Loan Los
Slide 23: 7. Attractive risk-return profile with quarterly distributions
7. Attractive risk-return profile with quarterly distributions23
Slide 24: Diversified Sources of Funding
7 Diversified Sources of Funding FHipo has achieved financing through different types of leverage structures, through private institutions and the local debt market. Diversified Funding Securitizations Short-Term Unsecured Bonds Issuance of securities/certificates backed by a trust which guarantees
Slide 25: Attractive Risk-Return Profile
7 Attractive Risk-Return Profile Estimated spread between FHipo’s Asset Yield vs. Cost of Debt as of 1Q21 Asset yield per origination program Funding rates (3) Fixed Rate Pesos SWAP TIIE Fixed Rate UDI Spread 14.2% 14.4% (1) 11.9% 12.0% Long-Term Funding Short-Term 10.8% 10.9% Funding 10.0% VSM (2)
Slide 26: 8. Development of the Mexican Housing Sector
8. Development of the Mexican Housing Sector26
Slide 27: Promoting the development of the Mexican Housing Sector
8 Promoting the development of the Mexican Housing Sector Global Offering’s Distribution Improving Mexican Worker’s Savings Part of FHipo’s equity came from abroad: FHipo, as the first MREIT in Mexico, obtained investments from Mexican pension funds (AFOREs). • FHipo, as a new asset class, has g
Slide 28: 9. Financial Results
9. Financial Results 28
Slide 29: Solid Financial Results in 1Q21
9 Solid Financial Results in 1Q21 Consolidated P&L Summary Consolidated Balance Sheet Summary Figures in thousands of MXN, except the Net Income per CBFI 1Q21 1Q20 Figures in thousands of MXN 1Q21 1Q20 Interest on mortgage loans $506,991 $644,828 Cash and cash equivalents $1,153,142 $2,538,144 Inves
Slide 30: Disclaimer
Disclaimer This document was produced for information purposes only, for the exclusive use of the recipient. It should be understand as informative and should not be considered as a basis for any investment or financial transaction, therefore FIDEICOMISO HIPOTECARIO F/2061 (“FHipo”, the “Company” or