Vbare Iberian Properties Socimi S.a. · BME:SCVBA
Vbare Iberian Properties Socimi — FY2020 Earnings Presentation
28 slides from Vbare Iberian Properties Socimi's earnings presentation, March 2021
Slide 1: 2020 Results Presentation and Activity Update
2020 RESULTS PRESENTATION AND ACTIVITY UPDATE March 2021 1
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by VBARE Iberian Properties SOCIMI, S.A. (the “Company”) and its subsidiaries (the “Group”). This Presentation does not constitute or form part of, and should not be construed as, any offer to sell or issue or invitation to purchase or subscribe for, or any
Slide 3: Index
INDEX 1. 2020 OPERATING PERFORMANCE 2. 2020 FINANCIAL PERFORMANCE 3. SPANISH ECONOMY & MARKET INFORMATION UPDATE 4. ANNEX: PORTFOLIO OVERVIEW 3
Slide 4: Highlights
HIGHLIGHTS 105 LEASES SIGNED IN 2020 WITH A RELETTING SPREAD OF +15.11% (+6.93% ON STABILIZED ASSETS) DECREASE IN OCCUPANCY DUE TO NEW STOCK COMING TO THE MARKET AND STRINGENT VBARE’S REQUIREMENTS INCREASE OF GRI +11.1% vs. 2019 INCREASE OF RENT DEFAULTS POST COVID BUT STILL LIMITED AND ACTIVELY MAN
Slide 5: 1. 2020 Operating Performance
1. 2020 OPERATING PERFORMANCE 5
Slide 6: Strong Leasing Activity and Relletting Spread
2020 LEASING PERFORMANCE 105 ¹ +15.11% LEASES SIGNED IN 2020 2020 RELETTING SPREAD (vs 135 ² IN 2019) (vs +29.58% IN 2019) 20 85 +19.92% +13.63% RENEWALS NEW CONTRACTS RENEWALS NEW CONTRACTS +6.93% RELETTING SPREAD IN 2020 OF STABILIZED UNITS STRONG LEASING ACTIVITY AND RELETTING SPREAD ALTHOUGH WEA
Slide 7: Occupancy Negatively Impacted by Weak Demand, Growing Supply
2020 OCCUPANCY OVERVIEW AVERAGE GROSS OCCUPANCY ¹ 90.01% 91.59% 85.95% 2018 2019 2020 OCCUPANCY NEGATIVELY IMPACTED BY WEAK DEMAND, CONTINUOUSLY GROWING SUPPLY 7 ¹ Average Gross Occupancy calculated over Stabilized Assets (Stabilized Assets are those assets that do not require significant capex inve
Slide 8: Significant (But Controlled) Default Increase
OVERALL PORTFOLIO LEASE RENTS COLLECTION UPDATE ¹ STABILIZED ASSETS % GRI COVERED BY DEFAULT INSURANCE AND DEFAULT YTD BANK GUARANTEES ¹ ¹ Net Debt ² Gross Debt ³ 71.7% +53% 46.8% 4.57% 21.6% 3.18% 3.56% 2.45% 2019 2020 2018 2019 2020 SIGNIFICANT (BUT CONTROLLED) DEFAULT INCREASE SINCE APRIL DUE TO
Slide 9: Year-End Rental Analysis
2020 YEAR-END RENTAL ANALYSIS ANNUALIZED GRI EVOLUTION (€ k) ¹ ANNUALIZED RENTS POTENTIAL GROWTH (€ k) ² +82% -9% Rents Dec. New Leases of New Vacancy of Divestments Increase Rents Dec. Units Rented Vacant Units Under Reversionary 2019 Vacant Dec. 2019 Leases Dec. 2019 2020 in Rents ³ 2020 Below ERV
Slide 10: Year-End Yield Analysis
2020 YEAR-END YIELD ANALYSIS YIELD ON TOTAL INVESTED CAPITAL OVER YIELD ON GROSS ASSET VALUE OVER STABILIZED ASSETS ¹ STABILIZED ASSETS ² GROSS YIELD NET YIELD GROSS YIELD NET YIELD 8.6% 7.5% 7.5% 7.0% 6.9% 7.7% 6.4% 6.6% 5.5% 5.8% 6.0% 4.6% 4.5% 4.4% 4.9% 3.8% 4.0% 3.8% 2017 2018 2019 2020 Reversio
Slide 11: Operational Performance: Divestments
2020 OPERATIONAL PERFORMANCE: DIVESTMENTS €2.0mn SALES EXECUTED IN 2020 WITH EXCELLENT RETURNS UNLEVERED IRR 16% AND MOIC 1.91x (4.5%>GAV & €1.3mn FREE CF) €2.0mn 4.5% TOTAL SELLING PRICE TOTAL PROFIT ABOVE GAV ¹ 15.95% 1.91x UNLEVERED IRR UNLEVERED MM 11 ¹ Gross Profit Above GAV calculated with Sav
Slide 12: 2. 2020 Financial Performance
2. 2020 FINANCIAL PERFORMANCE 12
Slide 13: Stand-Alone Profit & Loss Account
2020 STAND ALONE PROFIT & LOSS ACCOUNT ¹ STAND-ALONE PROFIT & LOSS ACCOUNT (€ k) ² December 31, 2020 December 31, 2019 Variation Gross Rental income 1,868 1,715 9.0% Other operating income 22 25 -10.7% Property Operating expenses -520 -487 6.8% Gross profit 1,371 1,253 Capital Gains on sales 805 111
Slide 14: Consolidated Profit & Loss Account
2020 CONSOLIDATED PROFIT & LOSS ACCOUNT ¹ CONSOLIDATED PROFIT & LOSS ACCOUNT (€ k) December 31, 2020 December 31, 2019 Variation Gross Rental income 2,037 1,833 11.1% Other operating income 22 26 -15.4% 11% GRI INCREASE MAINLY DUE TO 2019 YEAR-END ACQUISITIONS Property Operating expenses -597 -553 8
Slide 15: Consolidated Balance Sheet: Assets
2020 CONSOLIDATED BALANCE SHEET ¹ ASSETS (€ k) December 31, 2020 December 31, 2019 Non- Current Assets 69,459 73,113 Property, plant and equipment 35 4 Investment properties 69,210 72,945 Non - Current financial assets 214 164 Current Assets 4,065 2,938 Advance to suppliers 56 44 Trade and other rec
Slide 16: GAV Evolution
2020 GAV ¹ EVOLUTION 2.43% LIKE FOR LIKE PORTFOLIO DEPRECIATION DUE TO COVID IMPACT BASED ON EXTERNAL INDEPENDENT APPRAISAL (2.8%) +2.1% -4.5% OVERALL GAV DECREASE OF 5.1% INCLUDING SALES 16 ¹ GAV is based on Savills Aguirre Newman Valoraciones y Tasaciones S.A.U. external independent appraisal
Slide 17: Consolidated Balance Sheet: Liabilities
2020 CONSOLIDATED BALANCE SHEET ¹ LIABILITIES (€ k) December 31, 2020 December 31, 2019 Net Equity 49,870 55,626 Share capital 18,049 18,049 Share Premium 20,605 22,007 Treasury shares -518 -420 Retained earnings 11,734 15,990 Non-current Liabilities 22,350 19,373 Non-current financial liabilities 2
Slide 18: NAV Evolution
2020 NAV EVOLUTION 10.3% NAV DECREASE IN 2020 DUE TO: (7.7%) -% (2.5%) €4.3mn NET CONSOLIDATED LOSS (€ 1.19 PER SHARE) €1.4mn SHARE PREMIUM DISTRIBUTED (€ 0.422 PER SHARE) 18
Slide 19: VBARE NAV per Share vs. Share Price
VBARE NAV PER SHARE Vs. SHARE PRICE (13.8%) (7.7%) (9.5%) (17.0%) (21.1%) 15.55 15.16 14.92 14.00 14.58 13.94 13.40 13.50 12.10 11.00 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Closing Share Price NAV per Share INCREASE IN GAP BETWEEN SHARE PRICE AND NAV MAKING VBARE AN APPEALING INVESTMENT OPPORTUNITY
Slide 20: Debt Evolution
2020 DEBT EVOLUTION 2020 DEBT EVOLUTION (€ k) 22,900 19,719 4,285 -644 -460 PRINCIPAL OUTSTANDING LOANS WITHDRAWN EARLY AMORTIZATION FOR SALES PRINCIPAL AMORTIZED PRINCIPAL OUTSTANDING 31/12/2019 31/12/2020 3 NEW LOANS (€1.1mn) FORMALIZED IN 2020 (€300k NOT WITHDRAWN AT DEC.31, 2020) €3.5mn LOAN SIG
Slide 21: Financing Information
FINANCING INFORMATION OUTSTANDING DEBT MORTGAGE LOANS LOAN TO VALUE ¹ BY INSTITUTION INTEREST RATE 2020 34.2% 10% 2% 7% 2019 32.50% 49% 38% 2018 33.50% 93% Sabadell Banca Pueyo Bankinter Other Variable Fixed 1.75% 15.5 YEARS PORTFOLIO AVERAGE PORTFOLIO AVERAGE INTEREST RATE LOANS MATURITY LOW LTV OF
Slide 22: 3. Annex: Portfolio Overview
3. ANNEX: PORTFOLIO OVERVIEW 22
Slide 23: Main KPIs Performance
MAIN KPIs PERFORMANCE 331 21,372 17,892 85.95% 1.55 TOTAL NUMBER TOTAL GLA TOTAL RESIDENTIAL 2020 AVERAGE TENANTS OF UNITS ¹ (SQM) GLA (SQM) ² GROSS PER UNIT OCCUPANCY ³ OPERATIONAL & COMMERCIAL 105 15.11% 35.0 29.64% TOTAL LEASES 2020 AVERAGE LEASE AVERAGE VBARE SIGNED IN 2020 RELETTING SPREAD TERM
Slide 24: Main KPIs Performance
MAIN KPIs PERFORMANCE € 2.0mn € 12.77 € 668 € 3.6mn CURRENT ANNUAL MONTHLY PASSING MONTHLY PASSING ANNUAL PASSING RENT RENT PER RENT PER REVERSIONARY RENT RESIDENTIAL SQM ¹ RESIDENTIAL UNIT ¹ € 51.2mn € 2,395 € 69.2mn € 3,238 FINANCIAL TOTAL INVESTED CAPITAL ² TOTAL INVESTED CAPITAL ² 2020 GAV 2020
Slide 25: 2020 Operational Performance
2020 OPERATIONAL PERFORMANCE GLA (SQM) ¹ UNITS ¹ 2020 21,372 2020 331 2019 22,070 2019 345 2018 16,200 2018 272 MADRID CITY CENTER INSIDE M30 ² BUILDING OWNERSHIP > 50% ² 2020 65.54% 2020 84.93% 2019 63.91% 2019 82.21% 2018 57.89% 2018 72.98% ¹ Only Residential and Retail units taken into account (n
Slide 26: Portfolio Description and Location
PORTFOLIO DESCRIPTION AND LOCATION TYPE OF OWNERSHIP ¹ PORTFOLIO LOCATION ¹ INSIDE M30 LOCATION ¹ 4% 3% 2% 3% 17% 12% Inside M30 Entire Building Chamberí 28% Outside M30 Tetuán Units in the same building 15% (>50%) 50% Metropolitan Malasaña Units in the same building Area of Madrid Salamanca (<50%)
Slide 27: Portfolio Gallery
PORTFOLIO GALLERY 27
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