Vbare Iberian Properties Socimi S.a. · BME:SCVBA
Vbare Iberian Properties Socimi — FY2019 Earnings Presentation
36 slides from Vbare Iberian Properties Socimi's earnings presentation, Feb 18, 2020
Slide 1: Relevant fact: results presentation filing
THIS RELEVANT FACT IS A TRANSLATION OF THE SPANISH VERSION. IN CASE OF ANY DISCREPANCIES, THE SPANISH VERSION SHALL PREVAIL. Madrid, 18 February 2020 Pursuant to the terms set forth in Article 17 of EU Regulation No. 596/2014 with regard to abuse of markets and Article 228 of the Consolidated Text o
Slide 2: 2019 Results Presentation and Activity Update
2019 RESULTS PRESENTATION AND ACTIVITY UPDATE February 18, 1 2020
Slide 3: 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 4: Index
INDEX 1. 2019 PERFORMANCE 2. PORTFOLIO OVERVIEW 3. PIPELINE OVERVIEW 4. MARKET OVERVIEW 5. STRATEGY UPDATE 3
Slide 5: 2019 Highlights
2019 HIGHLIGHTS € 3.4 M NET CONSOLIDATED PROFIT (€ 1.19 PER SHARE) 30% GROSS RENTAL INCOME INCREASE YoY 46% GAV INCREASE YoY € 17.2 M INVESTED IN NEW ACQUISITIONS (76 UNITS ACQUIRED) € 1.5 M INVESTED IN CAPEX € 16.3 M RAISED 3 SCATTERED UNITS SOLD WITH PROFIT ABOVE GAV OF 13% 4 - GAV 2019 based on S
Slide 6: 1. 2019 Performance
1. has 2019 PERFORMANCE
Slide 7: Main KPIs Performance
MAIN KPIs PERFORMANCE 345 22,427 18,871 91.59% 1.66 TOTAL NUMBER TOTAL GLA TOTAL RESIDENTIAL 2019 AVERAGE TENANTS OF UNITS (SQM) GLA (SQM) GROSS PER UNIT ² OCCUPANCY ¹ OPERATIONAL & COMMERCIAL 134 29.62% 12.10% 35.8 30.77% TOTAL LEASES 2019 2019 EPRA AVERAGE LEASE AVERAGE VBARE SIGNED IN 2019 RELETT
Slide 8: Main KPIs Performance
MAIN KPIs PERFORMANCE € 2.2 M € 12.29 € 641 € 3.7 M CURRENT ANNUAL MONTHLY PASSING MONTHLY PASSING ANNUAL PASSING RENT RENT PER RENT PER REVERSIONARY RENT RESIDENTIAL SQM ¹ RESIDENTIAL UNIT ¹ € 51.3 M € 2,285 € 73 M € 3,253 FINANCIAL TOTAL INVESTED CAPITAL ² TOTAL INVESTED CAPITAL 2019 GAV 2019 GAV
Slide 9: Operational Performance
2019 OPERATIONAL PERFORMANCE 3 UNITS SOLD UNITS ¹ 76 UNITS ACQUIRED 2019 345 +27% 72 4 2018 272 RESIDENTIAL UNITS RETAIL UNITS ACQUIRED ACQUIRED BUILDING OWNERSHIP > 50% ² € 18.7 M 2019 2019 TOTAL INVESTED CAPITAL ³ 82.21% +13% € 1.5 M € 17.2 M 2018 72.98% CAPEX TOTAL ACQUISITION PRICE ⁴ ¹ Only Resi
Slide 10: Operational Performance: Acquisitions
2019 OPERATIONAL PERFORMANCE: ACQUISITIONS 1 2 3 Calle Vallehermoso - Madrid Calle San Andrés - Madrid Av. Monte Igueldo - Madrid ACQUISITION DATE 08/01/2019 ACQUISITION DATE 30/09/2019 ACQUISITION DATE 28/10/2019 NUMBER OF UNITS ¹ 29 NUMBER OF UNITS ¹ 12 NUMBER OF UNITS ¹ 35 CONTINUOUS GROWTH OF PO
Slide 11: Operational Performance: Divestments
2019 OPERATIONAL PERFORMANCE: DIVESTMENTS INITIATED SELECTIVE DISPOSAL IN Q4 2019 3 SCATTERED UNITS SOLD WITH THE FOLLOWING EXCELLENT RESULTS: €322K 13% TOTAL SELLING PRICE TOTAL PROFIT ABOVE GAV ¹ 15.74% 1.66x UNLEVERED IRR UNLEVERED MM ¹ GAV Q3 2019 based on Savills Aguirre Newman Valoraciones y T
Slide 12: Commercial Performance
2019 COMMERCIAL PERFORMANCE AVERAGE GROSS OCCUPANCY INCREASED ¹ 134 LEASES SIGNED IN 2019 2019 91.59% 47 87 2018 90.01% RENEWALS NEW CONTRACTS 2019 EPRA LIKE FOR LIKE RENTAL GROWTH 29.62% 2019 RELETTING SPREAD 2019 12.10% 15.37% 38.24% 2018 9.39% RENEWALS NEW CONTRACTS 11 ¹ Average Gross Occupancy c
Slide 13: Commercial Performance: Payment Default
2019 COMMERCIAL PERFORMANCE LEASE PAYMENT DEFAULT ¹ % LEASES COVERED BY DEFAULT INSURANCE 41.11% 3.50% -22% +120% 2.73% 18.67% 2018 2019 2018 2019 LIMITED PAYMENT DEFAULT & REDUCED RISK GIVEN SIGNIFICANT PORTION OF UNITS WITH DEFAULT PAYMENT INSURANCE 12 ¹ Calculated over Stabilized Assets (Stabiliz
Slide 14: Financial Performance: Rental Analysis
2019 FINANCIAL PERFORMANCE: RENTAL ANALYSIS ANNUALIZED GRI EVOLUTION (€ k) ¹ ANNUALIZED RENTS POTENTIAL GROWTH (€ k) ² +69% +33% Rents Dec. New Leases of New Vacancy of Divestments Increase Acquisitions Rents Dec. Units Rented Vacant Units Under Reversionary 2018 Vacant Dec. 2018 Leases Dec. 2018 20
Slide 15: Financial Performance: Yield Analysis
2019 FINANCIAL PERFORMANCE: 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 8.7% 7.5% 7.5% 7.0% 7.7% 5.3% 4.5% 4.6% 6.6% 4.3% 6.4% 4.7% 5.8% 4.0% 3.8% 3.6% 2017 2018 2019 REVERSION
Slide 16: Financial Performance: Financing
2019 FINANCIAL PERFORMANCE: FINANCING LOAN TO VALUE ¹ € 7.4 M 2019 32.50% LOANS SIGNED IN 2019 2018 33.50% 1.75% 16 YEARS PORTFOLIO AVERAGE PORTFOLIO AVERAGE INTEREST RATE LOANS MATURITY LOAN TO COST ¹ 2019 OUTSTANDING DEBT MORTGAGE LOANS 46.30% BY INSTITUTION INTEREST RATE 3% 8% 2018 51.40% 14% 44%
Slide 17: Financial Performance: Consolidated Balance Sheet
2019 FINANCIAL PERFORMANCE: CONSOLIDATED BALANCE SHEET ASSETS (€ k) EQUITIY AND LIABILITIES (€ k) December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Non- Current Assets 73,113 50,205 Net Equity 55,626 37,145 Property, plant and equipment 4 3 Share capital 18,049 11,949 Investmen
Slide 18: Financial Performance: P&L Account
2019 FINANCIAL PERFORMANCE: P&L ACCOUNT P&L (€ k) December 31, 2019 December 31, 2018 Gross Rental income 1,833 1,414 Other operating income 26 13 Personal expenses (509) (359) General and administrative expenses (1,911) (2,637) Gain from fair value on investment properties 4,384 6,563 Operating res
Slide 19: Corporate Performance
2019 CORPORATE PERFORMANCE GAV EVOLUTION (€ M) 46% GAV INCREASE SINCE 2018 +4.4% REVALUATION OF 2018 PORTFOLIO ¹ +20.4% REVALUATION OF ASSETS ACQUIRED IN 2019 ² € 17.2 M INVESTED IN 2019 ACQUISITIONS 42% TOTAL PORTFOLIO REVALUATION SINCE INCEPTION GAV Acquisitions CAPEX Revaluation Revaluation Dives
Slide 20: Case Study
CASE STUDY ASSET ACQUIRED IN JULY, 2018, FULLY LEASED NET YIELD OVER TOTAL INVESTMENT ¹ BUILDING REPOSITIONING THROUGH ACTIVE Q4 2019 6.9% MANAGEMENT IN LESS THAN 12 MONTHS +88% At Acquisition 3.7% IMPRESSIVE YIELD INCREASE AT ACQUISITION POST REFURBISHMENT 19 ¹ Total Invested Capital includes Total
Slide 21: 2. Portfolio Overview
2. PORTFOLIO OVERVIEW 20
Slide 22: Portfolio Description and Location
PORTFOLIO DESCRIPTION AND LOCATION TYPE OF OWNERSHIP ¹ PORTFOLIO LOCATION ¹ INSIDE M30 LOCATION ¹ 3%3% 3% 4% 16% 14% Inside M30 Chamberí Entire Building Tetuán 30% Units in the same building Outside M30 (>50%) 51% Malasaña 14% Units in the same building Metropolitan Guindalera (<50%) 64% Area of Mad
Slide 23: Portfolio Gallery
PORTFOLIO GALLERY 22
Slide 24: 3. Pipeline Overview
3. PIPELINE OVERVIEW 23
Slide 25: Pipeline Overview
PIPELINE OVERVIEW CURRENT +€450 M CURRENT PIPELINE PIPELINE MAINLY LOCATED INSIDE MADRID M-30 FROM €2.1 Bn IDENTIFIED IN 2019 (€1.5Bn IN MADRID) Rented c.€310 AT AN Advanced Outside M-30 ADVANCED buildings analysis 20% ROBUST 72% ANALYSIS PHASE 68% PIPELINE TARGET ACQUISITION EXPECTED TO Madrid 100%
Slide 26: Strong Pipeline Under Advanced Analysis of c.€310M
STRONG PIPELINE UNDER ADVANCED ANALYSIS OF c.€310 M Asset City Location Asset Type Sqm Built Asking Price (€ M) €/sqm Lev. IRR ERV Yield 1 Madrid Inside M-30 Individual Asset 1,000 - 5,000 10 - 20 > 4,000 > 15% 4% - 5% 2 Madrid Inside M-30 Portfolio 1,000 - 5,000 10 - 20 > 4,000 10% - 15% 4% - 5% 3
Slide 27: 4. Market Overview
» UL 4. MARKET OVERVIEW
Slide 28: Economic Outlook
ECONOMIC OUTLOOK GDP GROWTH UNEMPLOYMENT RATE AND SALARY INCREASE 2019 2020 3.0% Unemployment Rate Spain Unemployment Rate Madrid Spain Salary Increase 20.0% 2.5% 2.5% 18.0% 16.0% 2.0% 2.0% Spain Salary Increase Unemployment Rate 14.0% 1.5% 12.0% 1.5% 10.0% 1.0% 8.0% 1.0% 6.0% 0.5% 4.0% 0.5% 2.0% 0.
Slide 29: Economic Outlook: Population Growth
ECONOMIC OUTLOOK POPULATION GROWTH Madrid (Left) Spain (Right) 7.5 49.5 7.3 49.0 7.1 48.5 6.9 +54K Million Habitants Million Habitants 48.0 6.7 +65K RESIDENTS AVG. YoY RESIDENTS 2014-2019 AVG. 47.5 6.5 2019-2033 47.0 6.3 46.5 6.1 5.9 +42K RESIDENTS AVG. YoY 46.0 2014-2019 5.7 45.5 5.5 45.0 2014 2015
Slide 30: Real Estate Market Outlook: Sale Market
REAL ESTATE MARKET OUTLOOK: SALE MARKET TRANSACTION PRICE EVOLUTION €/SQM SPAIN TRANSACTIONS EVOLUTION (€ k) Spain Madrid 1,000 4,000 26% 900 65% ROOM ROOM 74% RECOVERY FOR 800 FOR 35% RECOVERY 3,000 3,371 GROWTH 700 GROWTH 600 €/sqm 500 2,000 1,722 400 300 1,000 200 100 0 - Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2
Slide 31: Real Estate Market Outlook: Sale Market
REAL ESTATE MARKET OUTLOOK: SALE MARKET SPAIN BUILT STOCK BY YEAR SPAIN NEW RESIDENTIAL UNITS 2015-2019 700,000 25,000 600,000 500,000 20,000 400,000 15,000 300,000 7% STOCK BUILT IN 10,000 200,000 2018-2019 COMPARED TO PEAK LEVEL 5,000 100,000 0 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 32: Real Estate Market Outlook: Rental Market
REAL ESTATE MARKET OUTLOOK: RENTAL MARKET SPANISH TENANCY RATIO (% OWNERS VS RENTAL) % HOUSEHOLD DISTRIBUTION BY HOUSING REGIME Ownership Rental Ownership Rental 81 81 25 24 100 24 80 90 23 80 22 79 70 21 60 78 19 20 50 19 40 77 18 30 76 17 20 76 16 10 75 15 0 2007 2008 2009 2010 2011 2012 2013 2014
Slide 33: Real Estate Market Outlook: Rental Market
REAL ESTATE MARKET OUTLOOK: RENTAL MARKET RENT PRICE EVOLUTION €/SQM/MONTH AVG. TIME TO RENT (MONTHS) Spain Madrid Spain Madrid 20 3.5 € 15.7 +35% 3 15 2.5 2.1 € 10 2 10 1.5 1.9 5 1 0.5 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 34: 5. Strategy Update
5. STRATEGY UPDATE 33
Slide 35: Strategy Update
STRATEGY UPDATE AS A FOLLOW UP REGARDING THE BEST EFFORTS COMMITMENT TO BE LISTED IN THE MAIN MARKET THAT WAS ANNOUNCED LAST MAY, VBARE HAS HIRED MIRABAUD SECURITIES VBARE AND MIRABAUD ARE JOINTLY EXPLORING DIFFERENT ALTERNATIVES (AMONG OTHERS, A POTENTIAL SHARE CAPITAL INCREASE) TO REACH A NAV OF €
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