Fideicomiso Irrevocable F/2061 · BIVA:FHIPO/14
Fideicomiso Irrevocable F/2061 — Fideicomiso Hipotecario (FHipo) — Q3 2015 Earnings Presentation
40 slides from Fideicomiso Irrevocable F/2061's earnings presentation, October 2015
Slide 1: Third Quarter 2015 Results
Investment that Transforms [THE FOLLOWING TRANSLATION IS FOR CONVENIENCE PURPOSES ONLY] Third Quarter 2015 Results INVESTOR RELATIONS Daniel Braatz / CFO db@fhipo.com Xavier Martínez / IRO xm@fhipo.com inverstorrelations@fhipo.com Ph: +52 (55) 4744-1100 www.fhipo.com
Slide 2: Index
Index Performance and achievements during the quarter Mexican mortgage market Origination programs Portfolio composition as of 3Q15 Performance of our CBFIs during the 3Q15 CDVITOT (RMBS) issuance Financial results & key metrics Risk assessment Our outlook Financial statements as of 3Q15 2
Slide 3: 1. Performance and Achievements during the Quarter
1. Performance and Achievements during the Quarter
Slide 4: Performance and Achievements during the 3Q15
Performance and Achievements during the 3Q15… During the 3rd quarter of 2015 FHipo consolidated the following results… Successful outcome in the first issuance of the CEDEVI (RMBS) Program in 2015 Closing of a Warehousing Line with Banorte Infonavit RMBS securities Placement of Ps. $4,232 millio
Slide 5: 2. Mexican Mortgage Market
CT1Ip© Hipotecario 2. Mexican Mortgage Market
Slide 6: Housing Demand in Mexico
Housing Demand in Mexico Estimates show that during 2015 there will be 1,159,480 households demanding some type of mortgage loan. Housing Demand by Component Number of Required Loans (2015 Estimate, number of households in 000s) (2015 Estimate, number of mortgages in 000s) 1,159 1,159 1,101 1,101 65
Slide 7: Behavior of the Mortgage Interest Rates in Mexico
Behavior of the Mortgage Interest Rates in Mexico The following charts illustrate the evolution of the average Total Annual Cost (TAC) of Banks and SOFOLES as well as the current and former interest rates of INFONAVIT and FOVISSSSTE. Behavior of the Mortgage Interest Rates (Private Sector) – 5 year
Slide 8: Mortgage Loan Origination - Infonavit
Mortgage Loan Origination - Infonavit In accordance with the social character of Infonavit, it is expected that at least 47% of the mortgage loans granted by the Institute will be for beneficiaries with an income level below 4 VSM. Distribution of the portfolio originated in 2014 From 2008 to date
Slide 9: Occupation and Employment in Mexico
Occupation and Employment in Mexico The population contributing to the Mexican Social Security Institute (IMSS) has increased steadily in recent years, while unemployment rates have remained low and continued with their positive trend in 2015. Population contributing to the IMSS… progressive increas
Slide 10: 3. Origination Programs
LH | FIDEICOMISO | Hipotecario 3. Origination Programs
Slide 11: Attractive vehicle for investors in a sub-penetrated mortgage market
Attractive vehicle for investors in a sub-penetrated mortgage market with high growth potential… Diversified Mortgage Portfolio: Strategic Partnership: - Mitigating Risks - INFONAVIT: Mexico’s Housing - Mortgages all over Mexico Agency, which originates 100% of Strategic its mortgages under payroll
Slide 12: Strategic alliance with Infonavit: Infonavit Total Program
…and with a strategic alliance with Infonavit through the participation in the Infonavit Total Program… Infonavit Total – Program’s Characteristics Description - Infonavit Total Program Infonavit Total is a mortgage program focused on borrowers Characteristics with income levels greater than 4.5 VSM
Slide 13: Infonavit Mas Credito Program
…and in the “Infonavit Mas Credito Program” Program Description The Infonavit Law was reformed in January 2012, enabling workers who have previously settled an Infonavit loan, to be able to attain a new loan to purchase a second home. By Law, all loans from this program are originated in co-particip
Slide 14: Origination Process with Infonavit
Origination Process with Infonavit FHipo’s participation in Infonavit’s origination programs FHipo works as an ally in mortgage origination with the Infonavit… Collection of interest and amortization (100%) Interest and Amortizations are paid to FHipo Mortgage House Origination acquisition Servicing
Slide 15: 4. Portfolio Composition - 3Q15
4. Portfolio Composition - 3Q15 As of September 30th, 2015
Slide 16: Portfolio Composition as of 3Q15 – Key Data
Portfolio Composition as of 3Q15 – Key Data Summary of FHipo’s On-balance Portfolio Characteristics (Loan balance as of September 30th, 2015) Total Balance (Infonavit and FHipo) Ps. $7,738 million (1) (5) FHipo's Participation (Total Portfolio) Ps. $5,183 million Total Number of Loans: Infonavit Tot
Slide 17: Geographically diversified portfolio of high credit quality borrowers
Geographically diversified Portfolio, focused on high credit quality borrowers Geographic Distribution of the Portfolio (as % of total loans in the portfolio) 20.4% 14.7% 9.7% 7.9% 5.2% 4.8% 4.0% 3.3% 3.4% 3.0% 5.1% 4.7% 4.3% 3.2% 3.3% 3.0% Veracruz State of Mexico Chihuahua Yucatán Nuevo León Queré
Slide 18: FHipo has co-participated/acquired 28,591 mortgage loans
FHipo has co-participated/acquired 28,591 (1) mortgages loans Distribution by Interest Rate of the Portfolio Infonavit Total, denominated in VSM (2) Invested Capital (as % of total loans in the portfolio) (as % of total assets) 2.1% 43.6% 32.9% Mortgages Loans and Equity 30.4% Residuals 23.6% Govern
Slide 19: 5. Performance of our CBFIs during the 3Q15
5. Performance of our CBFIs during the 3Q15
Slide 20: Performance of FHipo's CBFIs during the 3Q15 and Analysts Coverage
Performance of FHipo’s CBFIs during the 3Q15 and Analysts Coverage FHipo´s Certificados Bursátiles Fiduciarios Inmobiliarios (CBFIs) performance during the 3Q15 # of CBFIs Average Price $ 26.52 FHipo informs the successful issuance of MXN $ Average Volume 165,015 FHipo conducted its Certificados
Slide 21: 6. CDVITOT Issuance
LH | FIDEICOMISO | Hipotecario 6. CDVITOT Issuance
Slide 22: CEDEVI Program (RMBS) – Issuance CDVITOT 15U and 15-2U
CEDEVI Program (RMBS) – Issuance “CDVITOT 15U” and “CDVITOT 15-2U” The CEDEVI program (RMBS) exists since 2004, in a structure under which Infonavit loans are securitized in the capital markets. FHipo used such instruments as a source of financing, seeking to ensure a financial spread between the fi
Slide 23: Performance of the CDVITOT 15U and 15-2U as of 3Q15
Performance of the “CDVITOT 15U” and “CDVITOT 15-2U” as of 3Q15 The issuance of the Certificados Bursátiles Fiduciarios “CDVITOT 15U” and “15-2U” (RMBS transaction) settled in the Mexican Stock Exchange September 10th, 2015. Since that date, the certificates have performed in the following manner (t
Slide 24: Understanding our off-balance leverage
Understanding our off-balance leverage In accordance to the International Financial Reporting Standards (IFRS), FHipo does not consolidate portfolio securitizations that do not have direct recourse to our balance. Therefore, investors should understand the CDVITOT issuance (RMBS) as off-balance leve
Slide 25: 7. Financial Results & Key Metrics
7. Financial Results & Key Metrics
Slide 26: Our Dividend Yield and ROE remain at Attractive Levels
Our Dividend Yield and ROE remain at Attractive Levels… Given that our portfolio is comprised of 63% of mortgages denominated in VSM, it is important to understand our performance in real terms, excluding the decrease of the inflation (“π”) expectations which reduce the indexation revenue. ROE and D
Slide 27: Our Levered Mortgage Portfolio's Yield Breakdown
Our Levered Mortgage Portfolio’s Yield Breakdown Since our results consider a negative carry period, we took on the task of breaking down the performance of our levered mortgage portfolio and the returns on our investments in liquid securities (government risk free bonds) Breakdown of our levered mo
Slide 28: Solid financial results in 3Q15
Solid financial results in 3Q15 P&L Summary Income from assets on balance. The additional financial margin (the RMBS P&L off-balance portfolio), is registered in the valuation of securitized figures in 000s, except the Net Income per CBFI 3Q15 2Q15 transactions. (+) Interests on mortgage loans $156,
Slide 29: Yield of our CBFIs and Invested Capital
Yield of our CBFIs and Invested Capital The following charts illustrate the yield per CBFI for the second quarter of 2015 and the yield of the invested capital since the settlement date of our global offering. FHipo’s Distribution and Yield Distributions since IPO settlement (on invested capital in
Slide 30: Our Key Metrics and Relevant Financial Information in 3Q15
Our Key Metrics and Relevant Financial Information in 3Q15 Main Financial Metrics Figures are presented according to each metric (%, $) 3Q15 YTD 2015 We closed the 3Q15 with a Financial Margin and Interest Revenues Financial Margin of Ps. $ 164.1 Financial Margin - "interest revenue - interest expen
Slide 31: 8. Risk Assessment
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Slide 32: Risk Assessment: Credit Risk
Risk Assessment 1. Credit Risk As of 2015, FHipo determines the allowance for loan losses through the expected loss method, 12 month forward-looking.. In accordance with the internal methodology for the probability of default and considering a loss given default of 49.6%(1) and a loan exposure (ou
Slide 33: Risk Assessment (Cont.): Market Risk
Risk Assessment (Cont.) 2. Market Risk As of September 30th, 2015, the VaR is of Ps. $13.98 million. We determined the VaR considering: 1. The use of historical method. 2. We considered a 99% confidence level for 10 days. 3. Our Market VaR limit is established at 1.00% of FHipo’s equity. 4. The co
Slide 34: 9. Our Outlook
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Slide 35: Guidance - Outlook
Guidance - Outlook 1 We expect that our Net 3 Continue with the execution, development Interest Margin will and implementation continue with a of FHipo’s leverage Leverage Net Interest positive Strategy. Strategy Margin performance. FHipo will be consolidated in 2015 as the first mortgage REIT \ con
Slide 36: 10. Financial Statements - 3Q15
10. Financial Statements - 3Q15
Slide 37: Financial Statements – Balance Sheet
Financial Statements – Balance Sheet Balance Sheet 3Q15 (figures in 000s of Mexican pesos) 3Q15 ASSETS Cash and cash equivalents $993,169 Debt securities 1,831,516 Current mortgage loans 5,181,481 Past due mortgage loans 1,794 Accrued interest 66,651 Indexation on mortgage loans 61,259 Allowance for
Slide 38: Financial Statements – P&L
Financial Statements – P&L Income Statement (figures in 000s of Mexican pesos, except Net Income per CBFI) 3Q15 YTD 2015 REVENUES Interests on mortgage loans $156,138 $601,648 Investment income 7,979 45,887 Total net interest income 164,117 647,535 Financing interest expenses 0 0 Financial margin 16
Slide 39: Financial Metrics
Financial Metrics Financial Metrics (Figures are presented according to each metric %,$) 3Q15 YTD 2015 Financial Margin and Interest Revenue Financial Margin - "interest revenue - interest expense / total interest revenue" 100.0% 100.0% Adjusted Financial Margin - "adjusted by allowance for loan los
Slide 40: 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
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