Barcino Property Socimi Sa · BME:YBAR

Barcino Property Socimi Sa — Investor Presentation (July 2019)

39 slides from Barcino Property Socimi Sa's investor presentation, Jul 19, 2019

  1. Slide 1: Hecho Relevante – corporate presentation notice

    Barcelona, 19 de julio de 2019 En virtud de lo previsto en el artículo 17 del Reglamento (UE) nº 596/2014 sobre abuso de mercado y en el artículo 228 del texto refundido de la Ley del Mercado de Valores, aprobado por el Real Decreto Legislativo 4/2015, de 23 de octubre, y disposiciones concordantes,

  2. Slide 2: Barcino Property SOCIMI, S.A. Presentation

    July 19, 2019 Barcino Property SOCIMI, S.A. Presentation Confidential

  3. Slide 3: Disclaimer

    Disclaimer  This presentation (the “Presentation”)has been prepared by Barcino Property SOCIMI, S.A. (“Barcino”). This Presentation does not constitute and should not be construed as an offer, inducement, invitation to sell or issue, or the solicitation, inducement or invitation of an offer to buy,

  4. Slide 4: Summary

    Summary 1. Executive summary 4 2. Market overview 9 3. Portfolio review 14 4. Team 26 5. Financial performance 30 6. Appendix 37 3 Confidential

  5. Slide 5: 1. Executive summary

    1. Executive summary Confidential

  6. Slide 6: Why Barcino?

    Why Barcino?  Barcelona: a top #10 global hub city with solid long-term potential > Major business and travel destination leading the European tech scene > High density and limited residential supply framed by sea and mountains > Current market provides short-term opportunities, long-term dynamic s

  7. Slide 7: Barcelona: a top #10 global hub city with solid fundamentals

    Barcelona: a top #10 global hub city with solid fundamentals  Top #10 global hub > #7 globally, #3 in Europe for attractiveness (2018) > #5 European city with highest volume invested in start-ups (€871m for Barcelona vs €4.7bn for London, €2.4bn for Paris, €2.2bn for Berlin, €0.9bn for Stockholm (1

  8. Slide 8: Strong capital appreciation potential and attractive yields

    Strong capital appreciation potential and attractive yields  Strong capital appreciation potential Value creation since inception (m€) > Purchase at a relevant market discount reaching in some cases 50% over the last 3 years (€2,100/sqm across the portfolio vs market price of 52 €4,217/sqm(1)) + 55

  9. Slide 9: Barcino: who we are

    Barcino : who we are  Publicly traded Spanish REIT (SOCIMI) primarily dedicated to the Residential Rental Market  Focused on creating a portfolio of assets with a stable rental yields and high capital gain potential  Efficient vehicle structured as a Spanish REIT (SOCIMI) taking advantage of tax

  10. Slide 10: 2. Market overview

    2. Market overview Confidential

  11. Slide 11: Macroeconomic strength supporting prices

    Macroeconomic strength supporting prices  Spanish economy growing above EU average  Catalan 2018 GDP growth +2.4% vs +1.7% expected  Catalan GDP grows +2.3% yoy in Q1 2019 (Airef) GDP Growth Unemployment rate 2,6% 17,2% 2,4% 15,3% 2,1% 13,9% 2,0% 2,0% 13,4% 11,3% 1,6% 10,2% 1,4% 1,4% 1,3% 0,9% 0,

  12. Slide 12: Barcelona is attractive for buy-to-let investments

    Barcelona is attractive for buy-to-let investments  Very high density compared to most European cities  Price per sqm at the low end of comparable European cities  Acquisition price / rent ratio is among the lowest among peers Pop density City center City center 1u City Price/Rent (inh/km²) Price

  13. Slide 13: Barcelona's residential market has stabilised

    Barcelona’s residential market has stabilised  Having led the recovery rents in Barcelona have stabilised as affordability has become an increasingly important factor  Despite the impact of recent political events the city is showing its resilience and faces structural positive trends Property pri

  14. Slide 14: Supply – demand imbalance driving prices up

    Supply – demand imbalance driving prices up  Steep decline in housing supply since 2008 (598k in 2008 vs. 59k in 2018) with same local trend in Barcelona (going down from 44k to 6k) driving prices up  Macro environment, mortgage availability and affordability, and increase in the number of househo

  15. Slide 15: 3. Portfolio review

    3. Portfolio review Confidential

  16. Slide 16: Barcino overview

    Barcino overview  Acquisition and refurbishing of residential property to rent WHO ARE WE?  Founded Jan 2015 NUMBER OF 14 BUILDINGS  Specialised in residential property:  For rent NUMBER OF 171  Whole buildings to be refurbished UNITS  Within the Área Metropolitana de Barcelona  Buy and hold

  17. Slide 17: Business model

    Business model  Value created via 4 main levers  Targeting gross yield in the mid to high single digits 1  Invest in ‘off-market’ opportunities below post-refurb market price  Refinance post-refurb Sourcing  Recycle equity for new acquisitions 4 2 Refinance Refurbs 3  Refurbished cost effectiv

  18. Slide 18: Portfolio location

    Portfolio location  Focus on residential buildings with a surface between 700 and 1,500sqm BARCELONA CITY CENTRE 4 Assets 1 Vistalegre 24 458 2 Buenos Aires 35 2 9 3 Montjuïc 68 4 Berga 21 5 Sepúlveda 107 5 13 6 Ramon Turró 23 7 Poeta Cabanyes 40 12 10 8 Sant Bertran 8 11 1 14 9 Girona 92 7 10 Oliv

  19. Slide 19: Asset valuation (1/2)

    Asset valuation (1/2)  Prime locations in Barcelona ensures strong letting performance  Barcino asset values significantly below recent transactions  +55% capital appreciation since inception Acquisition Acq. Price Latest Value yoy growth Capital LTV (2) Gross ‘18 Gross ‘17 Asset Date Area (sqm)

  20. Slide 20: Asset valuation (2/2)

    Asset valuation (2/2) Acquisition Purchase Latest Valuation Capital Gross Yield Asset Date Area (sqm) LTV (2) (%) Price k€ (1) Price €/sqm RICS k€ (2) Appreciation (5) (%) 10 Olivera (7) May 18 1,195 2,315 € 1,937 k€ 3,350 45% 32% N/A 11 Pedreres (7) Sep 18 790 2,015 € 2,551 k€ 2,250 12% 27% (9) N/A

  21. Slide 21: Portfolio overview

    Portfolio overview  14 buildings in prime locations  Piecemeal approach to refurbishment focusing on vacant or vacated units  Working on further financings Key facts Portfolio evolution (# buildings)  Number of buildings: 14 14 9  Gross Floor Area: 16,154sqm 7  Average area/building: 1,154sqm

  22. Slide 22: Barcino's assets - examples

    Barcino’s assets - examples Berga Sepúlveda Buenos Aires Montjuïc 21 Confidential

  23. Slide 23: Barcino's assets - examples

    Barcino’s assets - examples Poeta Cabanyes Girona Lluna Pedreres 22 Confidential

  24. Slide 24: Case Study Montjuïc 68 – Barcelona (2016)

    Case Study Montjuïc 68 – Barcelona (2016)  89% capital appreciation since 2016  Increase in rental prices when contracts are renewed  Increasing gross yield thanks to rental management Our Tenants  Remote professionals  Mid-term contracts  Occupancy rate 2017 of 60% and 2018 of 90% Purchase Su

  25. Slide 25: Case Study Buenos Aires 35 – L'Hospitalet de Llobregat (2015)

    Case Study Buenos Aires 35 – L’Hospitalet de Llobregat (2015)  Refurbishment in 2016. Increased rental prices in 2017  Strong occupancy thanks to rental management  111% capital appreciation since 2015 Our Tenants  Remote professionals  Mid-term stays  Occupancy rate 2017 of 94% and 2018 100%

  26. Slide 26: Achievements during 2018

    Achievements during 2018  2018 has been a transformative year from both an operational and financial perspective Operational achievements Financial achievements  5 buildings acquired  € 9.8m Capital increase  1 building fully refurbished  5 new mortgages  8 units refurbished  4 buildings remo

  27. Slide 27: 4. Team

    4. Team Confidential

  28. Slide 28: Local operational management

    Local operational management  Result-driven operational team with complementary skills  Local network of highly qualified advisors in different areas of the Real Estate industry  Excellent track record Laura Turró | Managing Director @ Vistalegre* Roser Mateu | Construction Manager @ Barcino  15

  29. Slide 29: Dedicated Board of Directors

    Dedicated Board of Directors  Experts in architecture and Town Planning  Extensive knowledge in real estate investments and capital markets  Deep understanding of Barcelona real estate Mateu Turró | President of the Board of Directors Francesc Ventura  Honorary Director European Investment Bank

  30. Slide 30: Advisory committee with strong track-record

    Advisory committee with strong track-record  International well-renowned professionals  Extensive knowledge in real estate investments and capital markets  Having worked together for 20 years Josep Turró | President of the advisory committee Rémi Buttiaux  17 years in business development, distr

  31. Slide 31: 5. Financial performance

    5. Financial performance Confidential

  32. Slide 32: Strong underlying growth in asset values

    Strong underlying growth in asset values  Very selective buying at deep discount  Refurbishment realized at competitive cost  Creation of value of €18m (+ 55%) since inception Creation of value of + 55% since inception Vistalegre Buenos Aires Montjuïc Berga Sepúlveda Ramon Poeta Turró Cabanyes**

  33. Slide 33: Levels of vacancy provide further rental growth potential

    Levels of vacancy provide further rental growth potential  Potential rental growth rates post refurbishment  Additional yield through occupancy optimisation, tasteful furnishing of flats and active management of tenants Growth on signed 2018 Occupancy Rate (1) Sqm Renewed (1)(2) 2018 Gross Yields

  34. Slide 34: Attractive pipeline

    Attractive pipeline xxm of investment 9 buildings opportunities under advanced in advanced analysis, for a total analysis matching our investment strategy value of €20m  20-50 buildings in the market  Acquisition of Social Housing buildings a strategy to be developed 20 - 50 € 40m buildings in th

  35. Slide 35: Key financial figures (1/3)

    Key financial figures (1/3)  Shares trade at 15% discount to NAV (1.60 vs 1.33 at end 2017)  Conservative financial structure  Substantial capital gain on investment properties Balance Sheet – k€ 31/12/2018  Market capitalization: € 33.8m GAV (RICS + Cash ) 55,974  Price per share: €1.60 Gross

  36. Slide 36: Key financial figures (2/3)

    Key financial figures (2/3)  A high quality collateral underpinned with a solid financial structure  Conservative leverage Balance Sheet – Barcino Property Assets - € 2017 2018 Liabilities - € 2017 2018 Current assets 2,306,777 4,273,990 Equity 12,861,027 21,079,279 Accounts receivables 200,052 26

  37. Slide 37: Key financial figures (3/3)

    Key financial figures (3/3) Results analysis – €k 2017 2018 Var. Rental Income 895 1,261 + 40.86% Operating Expenses (524) (727) Including Property taxes (57) (59) Legal Costs (83) (172) Consultant Costs (115) (27) Personnel (60) (91) Letting Fees (API) (82) (112) Other Costs (insurance, utilities,

  38. Slide 38: Appendix

    4. Appendix is) S = a ne) e = fe) s)

  39. Slide 39: Advisors

    Advisors Registered Advisor Renta 4 Corporate, S.A. Legal & Tax Advisor Cuatrecasas, GonçalvesPereira S.L.P. Auditor Deloitte S.L. Liquidity Provider Renta 4 Corporate, S.A. And Bank Agent Valuation company (RICS) CBRE Valuation Advisory S.A. Financial Due Diligence Deloitte Financial Advisory, S.L.

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