Fideicomiso Irrevocable F/2061 · BIVA:FHIPO/14
Fideicomiso Irrevocable F/2061 — Fideicomiso Hipotecario (FHipo) — Investor Presentation (August 2018)
28 slides from Fideicomiso Irrevocable F/2061's investor presentation, August 2018
Slide 1: Corporate Presentation
Investment that Transforms Corporate Presentation INVESTOR RELATIONS Ignacio Gutierrez / CFO db@fhipo.com Xavier Martínez / IRO xm@fhipo.com inverstorrelations@fhipo.com Ph: +52 (55) 4744-1100 [THE FOLLOWING TRANSLATION IS FOR CONVENIENCE PURPOSES ONLY] www.fhipo.com
Slide 2: Investment highlights
Investment highlights 1 8 About FHipo 2 Experienced management team Solid with robust macroeconomic governance backdrop standards 7 3 Attractive risk- Attractive Mexican reward profile with \ mortgage market strong dividend fundamentals generation 6 4 High quality Strategic alliance portfolios with
Slide 3: 1. About FHipo
IH] | FIDEICOMISO | Hipotecario 1. About FHipo
Slide 4: FHipo is the first Mortgage REIT in Latin America…
1 FHipo is the first Mortgage REIT in Latin America… Market development Opportunity overview Commercial, Mexican REIT market is created in office and 2011 industrial REITs 2011 First lodging REIT in Mexico is created in 2012 Lodging REITs 2012 In 2014, FHipo is created: − First mover advantage
Slide 5: FHipo and its key milestones since its IPO
1 FHipo and its key milestones since its IPO Partnership with Infonavit and Fovissste , the largest 1st & ONLY MREIT in Mexico mortgage lenders with collection through payroll deduction Ps. $8.6 bn IPO in November 2014 and Ps. $3.1 bn mechanisms in LatAm (residential mortgage origination) Follow-On
Slide 6: Organizational Structure
1 Organizational Structure Public Float Sponsor Trust CBFIs First mortgage REIT in Mexico 90.7% 9.3% (1) Issuer Holders Assembly Professionals with experience Technical Committee (TC) Manager & in the financial, real estate (Manager) Advisor and mortgage sectors Management and TC Appointed by CB
Slide 7: 2. Solid macroeconomic backdrop and favorable country demographics
2. Solid macroeconomic backdrop and favorable country demographics
Slide 8: 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 increased steadily in recent years, while unemployment rate has remained low and continues its positive trend. Progressive increase in the formal economy and downward
Slide 9: 3. Attractive Mexican mortgage market fundamentals
3. Attractive Mexican mortgage market fundamentals
Slide 10: Infonavit's Mortgage Loan Origination
3 Infonavit’s Mortgage Loan Origination Infonavit expects to originate ~372 thousand loans per year for the next five years (2018 to 2022), which translates in a CAGR (’18 – ’22) of 7.2% Infonavit’s mortgage loan origination 2017 - 2022 Infonavit’s projected mortgage portfolio registered within its
Slide 11: Fovissste's Mortgage Loan Origination
3 Fovissste’s Mortgage Loan Origination External Financing (TFOVI issuances) (amounts in billions of pesos) Annual Average = 12.7 2015 = 16.0 2013 = 17.0 2014 = 17.0 10.2 2016 = 7.0 2017 = 6.8 6.9 7.0 6.8 6.4 5.8 5.5 5.4 5.2 4.6 TFOVI TFOVI TFOVI TFOVI TFOVI TFOVI TFOVI TFOVI TFOVI TFOVI 13U 13 2U 1
Slide 12: Sub-penetrated mortgage market with steady growth and stable asset quality
Sub-penetrated mortgage market with steady growth levels 3 while maintaining stable levels of asset quality The mortgage market has exhibited constant growth The Mexican mortgage market continues to have low penetration (Ps. $ in billions, in nominal values) (% of mortgage loans / GDP, 2016) $2,248
Slide 13: 4. Strategic alliance with Infonavit, Fovissste and Smart Lending
4. Strategic alliance with Infonavit, Fovissste and Smart Lending
Slide 14: FHipo currently participates in the following mortgage origination programs
FHipo currently participates in the following mortgage 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 $96.6 K (
Slide 15: Mortgage origination process
4 Mortgage origination process FHipo works as a strategically of INFONAVIT, FOVISSSTE and Smart Lending through their mortgage loan origination. Below, the structure used to participate loans with such institutions Participation structure in INFONAVIT’s Programs Structure of the assignment of collec
Slide 16: Mortgage origination process (Cont.) - Smart Lending
4 Mortgage origination process (Cont.) About Smart Lending Structure of the strategic alliance between FHipo and Smart Lending Smart Lending is a technological plataform that seeks to penetrate the Mexican mortgage market through the origination of mortgage 5 loans via an efficient, dynamic and ac
Slide 17: 5. Strong growth potential, coupled with high barriers to entry
5. Strong growth potential, coupled with high barriers to entry
Slide 18: We continue to benefit from high entry barriers
5 We continue to benefit from high entry barriers First mover advantage with proven track record regarding 1 origination and financing strategies Strategic investments aimed to maximize the return to the 2 holders of the company's CBFIs Agreements with Infonavit, Fovissste and Smart Lending to 3 acq
Slide 19: 6. High-quality portfolios
r LOO Hipotecario 6. High-quality portfolios
Slide 20: Low-risk mortgage portfolio with predictable low losses - INFONAVIT
Low-risk mortgage portfolio with predictable low losses 6 coupled with improving labor fundamentals - INFONAVIT 15% of employees lose their job during a 10yr period… (Infonavit’s portfolio) …however, expected credit losses are only 3% (Infonavit’s portfolio) Collection effectiveness is reduced to 60
Slide 21: 7. Attractive risk-return profile
7. Attractive risk-return profile
Slide 22: 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 Competitive Funding rates Long-Term Funding Short-Term Securitizations Short-Term Unsecured bonds Issuance of secu
Slide 23: Attractive risk-return profile
7 Attractive risk-return profile Attractive Financial Margin (Asset Yield vs. Debt Cost) FHipo continues to have an efficient financial margin even after having considered the recent surges of the local benchmark rate. Our assets continue to have competent yields and this coupled with competitiv
Slide 24: 8. Development of the Mexican Housing Sector
8. Development of the Mexican Housing Sector
Slide 25: Promoting the development of the Mexican Housing Sector
8 Promoting the development of the Mexican Housing Sector Global Offering’s Distribution Improving 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 generated
Slide 26: 9. Experienced management team with robust governance standards
9. Experienced management team with robust governance standards
Slide 27: Experienced management team and strong governance standards
Experienced management team and strong governance 9 standards Organizational structure Technical Committee structure Technical Committee 21 > 50% Daniel Braatz CEO Audit Corporate Practices Nominations Subcommittee Subcommittee Subcommittee Ignacio Gutiérrez Jesús Gómez Diego Gutierrez ≥3 100% ≥3 10
Slide 28: 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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