Arima Real Estate Socimi Sa · BME:ARM
Arima Real Estate Socimi Sa — Investor Presentation (September 2023)
31 slides from Arima Real Estate Socimi Sa's investor presentation, September 2023
Slide 1: Alpha from transformational, sustainable projects
THE VISION FOR EXCELLENCE Corporate Presentation - September 2023 Alpha from transformational, sustainable projects arimainmo.com
Slide 2: Introducing Árima
INTRODUCING ÁRIMA CORPORATE PRESENTATION We aim to generate alpha for our shareholders by exploiting the significant opportunities mainly in the Madrid office market We look for buildings in areas with potential, turning them into highly desirable, differentiated assets with excellent environmental
Slide 3: The Team
CORPORATE PRESENTATION The Team 3
Slide 4: An experienced team with a long history of working together
THE TEAM CORPORATE PRESENTATION An experienced team with a long history of working together… Previously at Axiare Luis López de Herrera-Oria Founding Partner CEO Chony Fabio Alen Pablo de Castro Fernando Guillermo Stuart W. Carmen Martín Viani Cardo Arenas Fernández-Cuesta McDonald Boyero-Klossner C
Slide 5: … and outperforming the market
THE TEAM CORPORATE PRESENTATION … and outperforming the market Delivering superior performance vs. peers EPRA NTAps CAGR1 vs European Peer Group2 - since Árima IPO in 2018 6% 4% 2% 0% Árima Peer Group Peer Group, assuming similar LTV level to that of Árima NAVps Growth since IPO Discounts to NAV/NTA
Slide 6: The Backdrop
CORPORATE PRESENTATION The Backdrop 6
Slide 7: Quality space remains in short supply in Madrid
THE BACKDROP CORPORATE PRESENTATION Quality space remains in short supply in Madrid › Madrid Grade A office stock only represents 9% of the city’s total office space (GLA)1 › Grade A office vacancy at 1.7% in Madrid1 › Opportunity for the team to leverage expertise in identifying upscaling projects
Slide 8: A unique market with rents still below peak levels
THE BACKDROP CORPORATE PRESENTATION A unique market with rents still below peak levels Rents in Madrid business districts below Pre-GFC1 levels while most other european cities are back to or near peak levels despite pandemic Madrid CBD Prime Rents vs European CBD Prime Rents (€/sqm/month) 160 146 M
Slide 9: A Relatively "Office-Friendly" Culture
THE BACKDROP CORPORATE PRESENTATION A Relatively “Office-Friendly” Culture Madrid recording the highest rate of occupancy across Europe, close to average pre-pandemic levels Average European occupancy rates1 70% Pre-pandemic level 60% 50% 40% 30% 20% 10% 0% Paris CDB Madrid Stockholm Dublin Prague E
Slide 10: The Present
CORPORATE PRESENTATION The Present 10
Slide 11: Since IPO (Oct 2018) and despite the pandemic
THE PRESENT CORPORATE PRESENTATION Since IPO (Oct 2018) and despite the pandemic €402m €313m 22.7% Jun'23 GAV1 EPRA NTA2 NET LTV +25% on total investment EPRA NTA ps €11.9, +24% since IPO 1.6% net finance cost3 10 Assets 92% 100% Acquired thus far Offices 4 Madrid4 All secured below replacement cost
Slide 12: Good Operational Progress
THE PRESENT CORPORATE PRESENTATION Good Operational Progress Delivering on projects and profitable capital recycling CAPITAL RECYCLING DEMAND FOR QUALITY BL INA E BUIL TA T S FOR A SU EN BREEAM VI RONM ES DE EN O C T WELL H E A LT H - S A F E T Y R AT E D Torrelaguna MM39 Habana RMA Recent acquisiti
Slide 13: Overview of portfolio property locations
THE PRESENT CORPORATE PRESENTATION Overview of portfolio property locations ALCOBENDAS offices 1 MADRID 10 Habana FUENCARRAL Madrid CBD EL PARDO 2 MM39 LA MORALEJA 3 Pradillo 4 RMA Inner Madrid 5 Torrelaguna MADRID-BARAJAS AIRPORT 6 Botanic A2/M30 A-1 9 7 Cristalia Campo de las Naciones 7 8 Cadenza
Slide 14: Portfolio at a glance
THE PRESENT CORPORATE PRESENTATION Portfolio at a glance BL INA E BUIL TA T S FOR A SU EN BREEAM VI RONM ES DE EN O C T P L AT I N U M WELL WELL H E A LT H - S A F E T Y H E A LT H - S A F E T Y R AT E D R AT E D 1 Habana 2 MM39 3 Pradillo 4 Torrelaguna 5 RMA Sector Offices Sector Offices Sector Off
Slide 15: Case Study 1: Pradillo - Skilled Deal Sourcing
THE PRESENT CORPORATE PRESENTATION Our work in three case studies / Case Study 1 Pradillo - Skilled Deal Sourcing › Highly complex multi-owner off-market transaction - acquiring three adjacent Before refurbishment After refurbishment buildings (Pradillo 54-56-58) › The site assembly enables us 1) to
Slide 16: Case Study 2: Habana - A transformational makeover
THE PRESENT CORPORATE PRESENTATION Our work in three case studies / Case Study 2 Habana - A transformational makeover › One of our first redevelopment schemes delivered, leased ahead of works completion › Free-standing office building located in Madrid Prime CBD, with spacious floor plates of c.1,00
Slide 17: Case Study 3: Botanic - A new benchmark in Sustainability
THE PRESENT CORPORATE PRESENTATION Our work in three case studies / Case Study 3 Botanic - A new benchmark in Sustainability › Sustainability, wellbeing and technology integrated in the project from inception › 100% of the existing structure retained, resulting in CO2 savings that equate to planting
Slide 18: Continuous shareholder value creation
THE PRESENT CORPORATE PRESENTATION Continuous shareholder value creation Growth driven by our asset management activities GAV +1 properties +1 properties €380m €402m +2 properties €344m +6 properties €276m €222m €40m IPO (Oct 2018) 2019 2020 2021 2022 Jun 2023 NTA per share¹ +24% 10.60 10.89 11.86 1
Slide 19: ... and accretive share buyback programs
THE PRESENT CORPORATE PRESENTATION ... and accretive share buyback programs Returning value to shareholders via share buybacks Current Share Buyback Plan Total Treasury Shares › Current share buyback plan launched in July 2022 › 28% of the share buyback plan executed1, equivalent to 2.0% of the issu
Slide 20: Financial strength
THE PRESENT CORPORATE PRESENTATION Financial strength Low leverage and limited debt maturities until 2026 Debt maturity profile as of 30.06.2023 EURm unless specified 30/06/2023 81.3% Gross Debt 120.520 Net Debt 91.409 Liquidity 1 50.111 Net LTV 22.7% Average debt maturity (years) 3 12.2% Weighted a
Slide 21: Clear focus on sustainability and social responsibility
THE PRESENT CORPORATE PRESENTATION Clear focus on sustainability and social responsibility As recognised by awards and certifications for both our assets and operations Environment Wellness & Social Recognition › Low-carbon repositioning, with strong focus on re- › Responsible landscaping and air fi
Slide 22: Minimising operational and embodied carbon
THE PRESENT CORPORATE PRESENTATION Minimising operational and embodied carbon Significant milestone achieved to date TOP ESG-LINKED CERTIFICATIONS AWARDED AND LOW CARBON REPOSITIONING Portfolio LEED & BREEAM Certifications EMBODIED CARBON ANALYSIS UNDER 2022 2023 YTD 2025 REVIEW 100% of completed re
Slide 23: The Future
CORPORATE PRESENTATION The Future 23
Slide 24: Significant organic growth opportunity
THE FUTURE CORPORATE PRESENTATION Significant organic growth opportunity Rental income projections for current portfolio Current portfolio1 – gross rental income expected evolution (at current market rents) Yield: 3.2%2 Yield: 6.2-6.7%3 › Substantial upside potential remains even when applying a con
Slide 25: Exciting redevelopment projects in progress
THE FUTURE CORPORATE PRESENTATION Exciting redevelopment projects in progress Portfolio reaching inflection point but substantial upside potential remains Redevelopment & Asset Management Plan 2019 2020 2021 2022 2023 2024 2025 M. Molina COMPLETED 100% leased & sale agreed Habana COMPLETED 100% leas
Slide 26: Exciting redevelopment projects in progress
THE FUTURE CORPORATE PRESENTATION Exciting redevelopment projects in progress Current pipeline in detail Dune Location Madrid Las Tablas/Manoteras GLA 12,842 sqm After refurbishment Forecast completion 2025 Quality Class A Sustainability LEED Platinum, WELL Platinum, WELL H&S Leasing - Estimated yie
Slide 27: Completed redevelopment projects
THE FUTURE CORPORATE PRESENTATION Completed redevelopment projects Portfolio reaching inflection point with first schemes completed Habana Offices leased ahead of works completion Location Madrid CBD GLA 4,356 sqm Completion H2 2022 Quality Class A Sustainability LEED Gold, WELL Gold, WELL H&S Leasi
Slide 28: Completed redevelopment projects
THE FUTURE CORPORATE PRESENTATION Completed redevelopment projects Portfolio reaching inflection point with first schemes completed Cadenza Location Madrid Campo de las Naciones GLA 14,302 sqm Completion H1 2023 Quality Class A Sustainability LEED Gold, WELL Platinum, WELL H&S Leasing Starting comme
Slide 29: Final Remarks
THE FUTURE CORPORATE PRESENTATION Final Remarks Although Covid has We are well placed The solidity of our slowed our progress to meet occupiers’ funding structure puts in securing new requirements on greater us in a strong position investments, we have sustainability, flexibility to both withstand c
Slide 30: Disclaimer
APPENDIX CORPORATE PRESENTATION Disclaimer This document is the property of Árima Real Estate SOCIMI, S.A. (the provided by third parties. Neither the Company nor its legal advisors and This document includes certain alternative performance measures ("APMs") "Company" or "Árima") and has been prepar
Slide 31: Árima Real Estate SOCIMI S.A.
Árima Real Estate SOCIMI S.A. Edificio Torre Serrano - Serrano, 47 28001 Madrid www.arimainmo.com
Árima Real Estate SOCIMI — Investor Presentation (September 2023) on 6ix