Mas P.l.c. · JSE:MSP
Mas P.l.c — Investor Presentation (May 2022)
16 slides from Mas P.l.c's investor presentation, May 2022
Slide 1: Investor Presentation: Proposed Transactions
GREEN PROPERTY INVESTOR IN CENTRAL AND EASTERN EUROPE Investor Presentation Proposed Transactions May 2022
Slide 2: Table of Contents
TABLE OF CONTENTS 3 COMPANY PROFILE 4 PROGRESS WITH STRATEGIC TARGETS 5 CURRENT DEVELOPMENT JOINT VENTURE STRUCTURE 6 TRANSACTIONS' RATIONALE 7 TRANSACTION SUMMARY - AQUISITION OF ASSETS FROM THE DJV 8 TRANSACTION SUMMARY - EXTENSION OF THE DJV RELATIONSHIP 9 DIRECT IMPACT FOR MAS 10 VALUATION 11 VA
Slide 3: Company Profile
52+13+51911S COMPANY PROFILE Dec 21 ANNUAL PASSING NET RENTAL AND DIVIDEND INCOME 52% CEE direct assets €37.6m MAS is an internally managed green €71.8m 13% 5% CEE DJV WE direct assets €9.3m €3.4m property investor and operator 19% DJV preferred shares €13.5m 11% Listed securities €8.0m focused on r
Slide 4: Progress with Strategic Targets
PROGRESS WITH STRATEGIC TARGETS Dec 21 OPERATIONAL COMMERCIAL RESIDENTIAL ACQUISITIONS DEVELOPMENTS SALES 4% €600m* €200m* €150m annualised LFL NRI growth to Jun 2026 completion of developments (at cost) per annum, 20% net after tax by Jun 2022 and a further at a weighted initial net yield of more m
Slide 5: Current Development Joint Venture Structure
CURRENT DEVELOPMENT JOINT VENTURE STRUCTURE UNIQUE LOW-RISK ACCESS TO EXCEPTIONAL DEVELOPMENT PIPELINE WITH PRE-EMINENT CEE RETAIL DEVELOPER • Prime Kapital employs an unique, vertically integrated development approach that consistently results in high development margins. • DJV provided MAS with co
Slide 6: Transactions' Rationale
TRANSACTIONS' RATIONALE Acquisition of assets from the DJV The acquisition allows outperformance of acquisition Strategic acquisition targets outperform targets to 2023, with attractive high growth rates, by approximately €145m. Medium-term potentially higher MAS' current high cash balances negative
Slide 7: Transaction Summary – Acquisition of Assets from the DJV
TRANSACTION SUMMARY – ACQUISITION OF ASSETS FROM THE DJV • Sale of six operating commercial assets owned by the DJV to MAS at an agreed total price of €319.7m (external valuations of ~€316m in aggregate). • Transfer of debt at attractive weighted average interest of 3-month EURIBOR plus a margin of
Slide 8: Transaction Summary – Extension of the DJV Relationship
TRANSACTION SUMMARY – EXTENSION OF THE DJV RELATIONSHIP 5-year extension of the DJV relationship with the result that • Preferred equity drawdown period and exclusivity period for developments carried out by Prime Kapital in the DJV extends to December 2030. • MAS' optional preferred shares redempti
Slide 9: Direct Impact for MAS
DIRECT IMPACT FOR MAS • NAV per share neutral at inception with expected growth in property values thereafter fully accruing to MAS (leading to higher Tangible NAV per share growth than currently implied). • DEPS accretive from 1 July 2022 and positively impacting MAS’ DEPS guidance and strategic DE
Slide 10: Valuation
VALUATION • DJV asset valuations improved compared to December 2021 primarily due to: - Passing NRI increase of 8% since December 2021; and - Discount rates reverting to pre-pandemic levels. • Post-pandemic asset value improvements in line with management's expectations; outlook is for robust growth
Slide 11: Value Creation Track Record
VALUE CREATION TRACK RECORD 9.8% NRI growth since opening Average annual NRI growth 39% 32% 24% 25% 20% 20% 18% 13% 5% 11 % 6% 6% 9% 12 % 14 % 18 % n/a** n/a** CAGR CAGR CAGR CAGR CAGR CAGR CAGR CAGR CAGR Nov 2018 Dec 2018 Dec 2018 Nov 2019 Dec 2019 Aug 2020 Mar 2021 Nov 2021 Dec 2021 Roman Value St
Slide 12: Potential Impact of Sanctions on Russia on Performance of Completed DJV Assets
POTENTIAL IMPACT OF SANCTIONS ON RUSSIA ON PERFORMANCE OF COMPLETED DJV ASSETS • High energy costs expected to cause higher inflation in the short to medium-term resulting in higher CPI indexation, independent valuer's assumption is 2% medium-term indexation. • Long-term fundamentals for CEE (robust
Slide 13: Macroeconomic Tailwinds
MACROECONOMIC TAILWINDS Addressable consumption* Household consumption per person per person total per person per person total Country CAGR 1999-2019 2019 2019 CAGR 1999-2019 2019 2019 % € thousand € billion % € thousand € billion 1 CEE-Romania 9.9% 4.0 77 9.9% 7.0 136 2 CEE-Bulgaria 8.4% 2.6 18 8.6
Slide 14: Annex
ANNEX 1 COICOP Retail consumption category code CP011 Food CP012 Non-alcoholic beverages CP021 Alcoholic beverages CP022 Tobacco CP031 Clothing CP032 Footwear CP051 Furniture and furnishings, carpets and other floor coverings CP052 Household textiles CP053 Household appliances CP054 Glassware, table
Slide 15: Glossary
GLOSSARY BV Book value based on independent market valuations in respect Land bank Land plots held for future developments of Income property or Income property held for sale LFL Like-for-like, measure of growth adjusted to exclude new or disposed properties CAGR Compound annual growth rate LTV Loan
Slide 16: MAS Real Estate
MAS REAL ESTATE