Varia Us Properties Ag · SIX:VARN
Varia Us Properties — H1 2019 Earnings Presentation
21 slides from Varia Us Properties's earnings presentation, Aug 29, 2019
Slide 1: Presentation Half-Year 2019 Results
PRESENTATION HALF-YEAR 2019 RESULTS 1 04/2017 Strictly confidential
Slide 2: Important Notice
IMPORTANT NOTICE This presentation includes forward-looking information and Although we believe that its expectations reflected in any statements, including statements concerning the outlook for such forward-looking statement are based upon reasonable our business. These statements are based on curr
Slide 3: Agenda
AGENDA AUGUST 29, 2019 Key achievements Financials HY 2019 Portfolio and growth strategy Outlook 3 Strictly confidential
Slide 4: Key Achievements
KEY ACHIEVEMENTS 4 04/2017 Strictly confidential
Slide 5: Key Achievements Half-Year 2019
KEY ACHIEVEMENTS HALF-YEAR 2019 ■ Key figures ■ Total income of USD 66.1 million (HY 2018: USD 46.4 million) ■ EBITDA* of USD 19.4 million (HY 2018: USD 16.4 million) ■ Net gain from fair value adjustment on investment property of USD 19.0 million (HY 2018: 7.4 million) ■ Total portfolio value of US
Slide 6: Varia US Properties at a Glance
VARIA US PROPERTIES AT A GLANCE Geographic breakdown of Varia Properties as of June 30, 2019 ■ Portfolio value of USD 793.7 million (end of 2018: USD 767.5 million) ■ 52 assets ■ 9,737 units ■ 19 different States in the US ■ Geographical diversification: ■ 16% of the properties are located in Arizon
Slide 7: Financials HY 2019
FINANCIALS HY 2019 7 04/2017 Strictly confidential
Slide 8: HY 2019 Key Figures (1/2)
HY 2019 KEY FIGURES (1/2) TOTAL EFFECTIVE FAIR VALUE INCOME GROSS PORTFOLIO HY 2018: USD 46.4 million INCOME (EGI) 1 ADJUSTMENT HY 2018: USD 39.0 million HY 2018: USD 7.4 million USD million 66.1 USD million 47.0 USD million 19.0 OPERATING OPERATING OPERATING PROFIT PROFIT MARGIN (including revaluat
Slide 9: HY 2019 Key Figures (2/2)
HY 2019 KEY FIGURES (2/2) PROFIT FOR THE EARNINGS NAV PERIOD PER SHARE PER SHARE HY 2018: USD 12.2 million HY 2018: USD 1.38 (excluding deferred taxes) HY 2018: USD 37.19 USD million 22.2 USD 2.47 USD 37.61 EBITDA1 EBITDA NAV HY 2018: USD 16.4 million MARGIN PER SHARE2 (without revaluation) HY 2018:
Slide 10: Consolidated Statement of Profit and Loss
CONSOLIDATED STATEMENT OF PROFIT AND LOSS In USD million (For the six months ended) June 30, 2019 June 30, 2018 Rental income 42.4 35.3 Other income and insurance proceeds 4.7 3.6 Net gain from fair value adjustment on investment property 19.0 7.4 Total income 66.1 46.4 Total operating expenses 27.7
Slide 11: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Assets in USD million As of June 30, 2019 As of December 31, 2018 Total current assets 75.9 47.8 Total non-current assets 804.5 776.7 Total assets 880.4 824.5 Liabilities and equity in USD million As of June 30, 2019 As of December 31, 2018 Total current
Slide 12: Portfolio and Growth Strategy
PORTFOLIO AND GROWTH STRATEGY 12 04/2017 Strictly confidential
Slide 13: Portfolio HY 2019 Key Figures (1/2)
PORTFOLIO HY 2019 KEY FIGURES (1/2) PORTFOLIO NUMBER OF NUMBER OF VALUE1 PROPERTIES UNITS 2018: USD 767.5 million 2018: 52 2018: 9,737 USD million 793.7 52 9,737 AVERAGE INTEREST- GROSS MONHTLY RENT BEARING POTENTIAL PER UNIT DEBT RATIO INCOME 1 2018: USD 760 2018: 55.2% 2018: USD 101.0 million USD
Slide 14: Portfolio HY 2019 Key Figures (2/2)
PORTFOLIO HY 2019 KEY FIGURES (2/2) AVERAGE MARKET OCCUPANCY EFFECTIVE VALUE PER UNIT RATE GROSS 2018: USD 78,823 2018: 93.7% INCOME 1 2018: USD 94.0 million USD USD 81,509 93.8% million 96.2 1 Data appraised by Colliers 14 Strictly confidential
Slide 15: Adding Value to the Portfolio
ADDING VALUE TO THE PORTFOLIO ▪ In the first half-year 2019, a total of 391 units have been rehabbed ▪ An average rent increase of USD 74 per month has been achieved ▪ The average rehab cost per unit is USD 3,202 ▪ Average annual ROCE of 28% 15 Strictly confidential
Slide 16: Green Initiative
GREEN INITIATIVE ■ Varia continued to execute the 2018 started Company-wide green initiative in order to save between 25% and 35% of the water and electricity consumption benefitting residents, investors and the environment ■ Water conservation program ■ Full execution of this program in the first s
Slide 17: 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 18: Outlook
OUTLOOK 18 04/2017 Strictly confidential
Slide 19: Outlook 2019
OUTLOOK 2019 INVESTMENT → Further expansion of the portfolio with targeted acquisitions → Two additional deals in Missouri and Tennessee closed in August → A third one in Missouri will be completed and closed in September → Divestment of non strategic assets (small, remote and below distribution ave
Slide 20: Information
INFORMATION INVESTOR INFORMATION CONTACT INFORMATION Listing: SIX Swiss Exchange Jürg Stähelin, IRF Currency: USD Investor Relations / Corporate Ticker symbol: VARN Communications ISIN: CH 030 528 529 5 Phone: +41 43 244 81 51 Listing date: December 8, 2016 E-mail: investors@variausproperties.com FI
Slide 21: Strictly confidential
21 04/2017 Strictly confidential