Inmobiliaria del Sur, S.A. · BME:ISUR
Inmobiliaria del Sur — Grupo Insur — Investor Presentation (November 2019)
36 slides from Inmobiliaria del Sur's investor presentation, November 2019
Slide 1: Grupo Insur Company overview
Grupo Insur Company overview November 2019
Slide 2: Legal disclaimer
“ Legal disclaimer This presentation is the exclusive property of INMOBILIARIA DEL SUR (INSUR). Its total or partial reproduction is strictly prohibited and it is covered by current law. Offenders will legally prosecuted both in Spain and abroad. The use, copy, reproduction or sale of this publicati
Slide 3: Rationale behind the use of the proportionate method
“ Rationale behind the use of the proportionate method Grupo INSUR (Insur) , whose parent company is Inmobiliaria del Sur, S.A., develops two main activities, housing development and rental. The rental activity is carried out by Insur Patrimonial, S.L.U. (IPA), fully owned by Insur, as well as by ot
Slide 4: Content
Content Aviso legal 1. Who are we? • Rental • Homebuilding • Construction and Project Management 2. Real Estate sector evolution 3. Financial Results 4. Strategy 5. Share evolution 6. Annex 4
Slide 5: 1. Who are we?
1. Who are we?
Slide 6: Who are we?
Aviso legal Who are we? Real Estate Group founded in 1945 Strongly committed to the highest standards of Corporate Management, Quality and Environmental Protection First listed on the stock market in 1984. On the continuous market of the Spanish Stock Exchange since 2015 Experienced management team
Slide 7: Rental
Rental Geographic distribution by sqm ground area Distribution according to typology 2% 2% 3% 10% 1% 29% 69% 84% Sevilla Málaga Córdoba Huelva Madrid Offices Commercial Premises Other Portfolio of 122,781 sqm of offices and commercial premises and more than 2,600 parking spaces Significant buildings
Slide 8: Rental: prime area locations
Rental: prime area locations Ed. García Lovera (Córdoba) Aldi Joaquín Turina (Madrid) Capitán Haya 24-25 (Madrid) Madrid 2% Córdoba 3% Ed. Insur Huelva Sevilla 87% Ed. Insur (Sevilla) Ed. Insur Cartuja (Sevilla) Huelva 7% Málaga 1% Ed. IDS Huelva (Huelva) C.C. El Mirador (Sevilla) Ed. Capitolio (Sev
Slide 9: Rental
Rental • As of the 9M of the year the surface sold amounts to 8,204 Proportionate method sqm. There have been terminations totaling 4,980 sqm. Revenues Additionally, 7,600 sqm of offices have been acquired, of M€ which 5,373 have already been rented +8.6% • Occupancy rate rises to 84.5% in line with
Slide 10: Homebuilding
Homebuilding Higher margins than those on the rental activity Operating in areas where we have extensive knowledge and expertise as it is a sector with local characteristics. Western Andalusia (mainly Seville), Malaga, Costa del Sol and Madrid Mid-high end segment housing mainly in areas with
Slide 11: Real Estate Development
Real Estate Development Revenues Proportionate method • The Group currently has 2,014 houses under development of which 731 are under M€ construction, 632 are already sold and 397 completed • 121 houses have been delivered in the 9M 19 vs 223 of the 9M 18 • From the 244.4 M€ total presales figure, 9
Slide 12: Ongoing developments and land portfolio
Ongoing developments and land portfolio Ongoing Developments Land Portfolio 2,014 ongoing units 2,590 units 397 housing units completed of which 295 are pending to be 100,000 sqm of buildable plots for residential delivered and 102 pending to be sold. use, 920 units 27 ongoing developments (13
Slide 13: 100% owned developments
100% owned developments PROJECTS UNDER CONSTRUCTION Figures as of September 2019 * On marketing stage Building Sales volumen Development Location Nº of units Planned delivery Units sold potential (M€) Plaza del Teatro Block I* Málaga 4,441 36 22.6 2020 29 Residencial 75 Aniversario* Sevilla 7,352 48
Slide 14: JV Developments
JV Developments Figures as of September 2019 * On marketing stage PROJECTS UNDER CONSTRUCTION Development Location Building Potential Nº of units Sales volume (M€) Planned delivery Units sold Pineda Parque I Block 3* Sevilla 5,219 36 13.1 2020 24 Boadilla Essences I* Boadilla del Monte (Madrid) 6,48
Slide 15: Construction and Project Management
Construction and Project Management 29.2 M€ CONSTRUCTION REVENUES 3.4 M€ MANAGEMENT REVENUES 90.0% INCREASE 37.1% INCREASE Main projects currently managed: Río 55 Madrid Business Park 28,000 sqm divided UNDER CONSTRUCTION. SOUTH BUILDING SOLD. IDS MADRID MANZANARES, S.A. between 2 buildings) NORTH
Slide 16: 2. Real Estate sector evolution
2. Real Estate sector evolution
Slide 17: Real Estate macro environment
Real Estate macro environment Shortage of new developments Sustainable growth, but with new challenges at short term New property sales still well below second hand homes sales Banks grant mortgages rigorously Land inflation Construction costs inflation Mortgage loan level decreasing New competitors
Slide 18: 3. Financial Results
3. Financial Results
Slide 19: Executive Summary. 9M 2019 Highlights
Executive Summary. 9M 2019 Highlights Results by proportionate method REVENUES OPERATING PROFIT 62.6 M€ -11.6% 8.4 M€ -23.8% ADJUSTED EBITDA NET PROFIT without the effect of IFRS9 • In July 2019, a syndicated loan was signed, amounting 110 M€ and with 8.3 M€ -25.4% 3.2 M€ -38.4% maturity of 10 years
Slide 20: Executive Summary. 9M 2019 Results
Executive Summary. 9M 2019 Results M€ Results by proportionate method -11.6% REVENUE BREAKDOWN Development Rental 70.8 -53.9% Construction Project Management 62.6 +90.0% 5% 44.0 +8.6% +37.1% 9M 18 32% 29.2 20.3 9M 19 15.3 8.9 9.7 47% 2.5 3.4 15% Revenues Real Estate Rental Construction Project Devel
Slide 21: NAV, GAV, LTV & debt
NAV, GAV, LTV & debt * valuation at 30/09/19 estimated from CBRE valuation at LTV evolution % 31/12/18 and INSUR GAV * INSUR NAV** revised with additions at 42.1 41.9 cost value and disposals due 29% 40.7 to deliveries 40.5 327.5*M€ 407.1 M€ 39.0 325.7 37.4 323.4 71% 1Q 2019 Real Estate development
Slide 22: 4. Share Price evolution
4. Share Price evolution
Slide 23: Share evolution
Share evolution Share Price 9M 2019 In the first 9M 2019 the share Price (ISUR) dropped by 6%, behaving worse than the Ibex Small Cap, which grew by 5.1%. The share closed at 9.68€ which implies a market cap of 164.3M€ at the 30Th September 2019 Market Cap September 19 NAV September 19 Discount vs N
Slide 24: 5. Strategy
5. Strategy
Slide 25: Strategy
Strategy Homebuilding Rental 1. Investment primarily in fully-permitted Land 1. Development of our assets from the ground 2. Operating in markets where we have extensive knowledge up 3. Project development in areas with proven demand (first residence 2. New investments located in Madrid in provincia
Slide 26: 6. Annex
6. Annex
Slide 27: History
History 1945 Foundation 1946 Acquisition of a land bank in Avda. República Argentina, Seville 60´-80´ Beginning of Rental activity 1984 Listing on the Madrid Stock Exchange 97/00 Geographic expansion. JV with Local Savings Banks 2004 Expansion in the Costa del Sol. Accelerated development in the ren
Slide 28: Corporate structure
Corporate structure Rental Housebuilding Construction JV 28
Slide 29: Corporate Governance
Corporate Governance Board of Directors with a strong commitment to the highest standards of corporate governance 1. The Board of Directors represents a 36.3% stake in the capital of Insur. Much of this participation is in the hands of the Pumar Family, which pledges a significant part of its herita
Slide 30: Board of Directors
Board of Directors Proprietary Directors Independent Directors Prudencio Hoyos-Limón Pumar Brita Hektoen Wergeland Augusto Sequeiros Pumar Jorge Segura Rodríguez Candelas Arranz Pumar José Luis Galán González Andrés Fernández Romero José Manuel Pumar López Salvador Granell Balén Inversiones Agrícola
Slide 31: Río 55 Madrid Business Park
Río 55 Madrid Business Park 2 buildings. 28,000 sqm offices 400 parking spaces, of which 40 have recharge points installed and 80, preinstalled 1,900 sqm floors which allow great versatility Excellent location, within M 30, and surrounded by services and good connections More tan 8,600 sqm of Green
Slide 32: Management Team
Management Team Ricardo Pumar Board member since 2001 and Chairman of the Management Board since 2005. Chairman Graduated in Law and Business Administration (ICADE) and Senior Management Programme (Instituto San Telmo). He has 20 years experience in Business Administration and Civil Law. He joined I
Slide 33: Management Team
Management Team He joined Insur in 1997 Pedro Candáu Technical Architect (Universidad de Sevilla), Real Estate Management Programme (CEU) and Business Administration Programme (Instituto San Telmo). Construction Director Since he joined the company, he has held various positions - director of projec
Slide 34: Conciliation between equity method and proportionate method
Conciliation between equity method and proportionate method Consolidated P&L M€ 9M 2019 9M 2018 Equity method Adjustments Proportionate Equity method Adjustments Proportionate Revenues 80.6 (18.0) 62.6 85.0 (14.2) 70.8 a Real Estate development 10.5 9.8 20.3 44.0 - 44.0 Rental 9.6 0.1 9.7 8.9 0.1 8.
Slide 35: Conciliation between equity method and proportionate method
Conciliation between equity method and proportionate method 9M 2019 Dec 18 Consolidated balance sheet M€ Equity method Adjustments Proportionate Equity method Adjustments Proportionate Property, Plant and Equipment 148.0 0.3 148.2 141.3 (2.2) 139.1 a Financial investments in JVs 44.4 (42.9) 1.4 33.6
Slide 36: María Pérez-Mosso, Head of IR
María Pérez-Mosso Head of IR Tel: +34 671 497 670 mperezm@grupoinsur.com