Barcino Property Socimi Sa · BME:YBAR
Barcino Property Socimi Sa — Investor Presentation (May 2018)
37 slides from Barcino Property Socimi Sa's investor presentation, May 18, 2018
Slide 1: Hecho Relevante – Barcino Property SOCIMI
En Barcelona, a 18 de mayo de 2018 BARCINO PROPERTY SOCIMI, S.A. De conformidad con lo dispuesto 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 de Mercado de Valores, aprobado por el Real Decreto Legislativo 4/2015, de 23 d
Slide 2: Anexo I Presentación
Barcino Property ANEXO I Presentacién
Slide 3: Barcino Property SOCIMI, S.A. Presentation
May 2018 Barcino Property SOCIMI, S.A. PRESENTATION Confidential
Slide 4: Disclaimer
Disclaimer This 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, subscribe or acquir
Slide 5: Summary
Summary 1. Executive Summary 4 2. Market Overview 9 3. Operational Performance 14 4. Financial Performance 24 5. Appendices 34 3 Confidential
Slide 6: 1. Executive Summary
1. Executive Summary Confidential
Slide 7: 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
Slide 8: Barcelona: a top #10 global hub city with solid fundamentals
Barcelona: a top #10 global hub city with solid fundamentals Top #10 global hub > #9 globally, #3 in Europe for foreign investments (2017, KPMG) > #4 European city with highest volume invested in start-ups: $722m for Barcelona vs $5bn for London, $2bn for Berlin and $1bn for Paris (2017, Dealroom.
Slide 9: Capital appreciation potential and attractive yields
Capital appreciation potential and attractive yields Capital appreciation potential > Purchase at an average market discount of 50% over the last 3 years; Value creation since inception €2,100/sqm across the portfolio vs market price of €4,334/sqm in Q1 2018 (1) €33.7m > Identified pipeline of opp
Slide 10: Key milestones achieved with a result-driven team
Barcino : key milestones achieved with a result-driven team > Publicly-traded Spanish REIT primarily dedicated to the Residential Rental Market > Focused on creating a portfolio of assets with stable rental yields and high capital gain potential > Efficient vehicle structured as a Spanish REIT (SOCI
Slide 11: 2. Market Overview
2. Market Overview Confidential
Slide 12: Catalonia is leading the Spanish economic recovery
Catalonia is leading the Spanish economic recovery > Spanish economy growing above EU average. Catalan GDP growth +3.3% in 2017 and +3.3% for Q1 2018 (vs Q1 2017) > Increase in job creation, private consumption and exports > Despite a possible slowdown, mid-term growth profile remains strong GDP Gro
Slide 13: 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 City Price/Rent (inh/km²) Price/m²
Slide 14: Barcelona's residential market is strong and offers potential
Barcelona’s residential market is strong and offers potential > Rents have been rising at an higher rate than acquisition prices driving yields up > After a slight decrease in Q4 2017, acquisition prices have resumed their upward trend (+1.2% in Q1 2018 q-o-q) > Structural shift in Barcelona, with a
Slide 15: Supply – demand imbalance driving prices up
Supply – demand imbalance driving prices up > Steep decline in housing supply since 2006 (598k in 2006 vs. 49k in 2017) 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
Slide 16: 3. Operational Performance
3. Operational Performance Confidential
Slide 17: Barcino value creation strategy
Barcino value creation strategy > Strong sourcing capabilities through experienced and well connected local team > Refurbishing buildings/apartments at competitive costs > Tax efficiency Focus on off-market deals to target low prices 30-50% average discount to market prices post- refurbishment
Slide 18: Location of Barcino's assets
Location of Barcino’s assets > All assets are located in or near Barcelona city center and close to public transportation Barcelona City Center Barcino’s assets 4 1 Vistalegre 24 2 Buenos Aires 35 2 3 Montjuïc 68 9 4 Berga 21 5 Sepúlveda 107 5 6 Ramon Turró 23 7 Poeta Cabanyes 40 8 Sant Bertran 8 10
Slide 19: Barcino's assets valuations
Barcino’s assets valuations > Prime locations in Barcelona ensures strong letting performance > Barcino asset values significantly below recent transactions > +68% capital appreciation since inception (6) Normalized Acquisition Purchase Latest Valuation Capital Asset Date Area (sqm) Price k€ (1) Pri
Slide 20: Barcino's assets yields (over 2017)
Barcino’s assets yields (over 2017) > Operational levers (occupancy of currently empty units under refurbishment and rents increase at renewals ) driving yields > Higher yields drive valuations higher > Low Loan-To-Value (LTV) offers potential for refinancing 2017 Rent growth after Asset Date Valuat
Slide 21: Portfolio overview
Portfolio overview > 9 buildings in prime locations in Barcelona + 1 recently acquired in Barcelona > Of which 3 are under refurbishment > Strong majority of vacant units are under refurbishment Key facts – excluding Olivera since recently acquired (May 18) Portfolio evolution (# assets) Number of
Slide 22: Barcino's assets - examples
Barcino’s assets - examples Berga Sepúlveda Buenos Aires Montjuïc 20 Confidential
Slide 23: 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* Mònica Sagredo | Property Management @ Barcino
Slide 24: 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
Slide 25: 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
Slide 26: 4. Financial Performance
4. Financial Performance Confidential
Slide 27: Strong underlying growth in asset values
Strong underlying growth in asset values > Very selective buying at deep discount > Refurbishment realized at competitive cost > Capital appreciation of €13m (+ 68%) since inception (1) Creation of value of + 68% since inception (1) Vistalegre Buenos Aires Montjuïc Berga Sepúlveda (L’H) + 63% + 94%
Slide 28: Levels of vacancy provide additional rental growth potential
Levels of vacancy provide additional rental growth potential > Potential rental growth rates post refurbishment > Potential to increase yield through occupancy optimization and arbitrage between short/mid-term rental Growth on signed 2017 Occupancy Rate (1) Sqm Renewed (1)(2) 2017 Gross Yields (1) r
Slide 29: Case Study Montjuïc 68 – Barcelona (2016)
Case Study Montjuïc 68 – Barcelona (2016) > 94% 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% Purchase Summary (2017A)
Slide 30: 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 > 94% capital appreciation since 2015 Our Tenants Remote professionals Mid-term stays Occupancy rate (2017) of 94% Purchase Summ
Slide 31: Attractive pipeline
Attractive pipeline > xxm of investment 5 buildings opportunities under advanced analysis, for ain advanced total analysis matching our investment strategy value of €40m > 20-50 buildings in the market > Acquisition of social housing buildings a strategy to be developed 20 - 50 € 40m buildings in th
Slide 32: Key financial figures (1/3)
Key financial figures (1/3) > Shares trade at 32% discount to NAV > A financial structure with solid LTV levels > Strong credit profile with competitive costs NAV Bridge Market capitalization: € 20.3m (30/4/18) € 2.7m Performance fee Price per share: €1.41 € 13.3m NAV pre performance fee: € 29
Slide 33: 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 - € 2016 2017 Liabilities - € 2016 2017 Current assets 1,472,723 2,306,777 Equity 13,019,914 12,861,027 Accounts receivables 55,852 200
Slide 34: Key financial figures (3/3)
Key financial figures (3/3) Results analysis – €k 2016 2017 Var. Rental Income 216 895 + 314% Operating Expenses (147) (524) Including Property taxes (10) (57) Legal Costs (19) (83) Consultant Costs (30) (115) Personnel (28) (60) Letting Fees (API) -- (82) Other Costs (insurance,utilities,maintenanc
Slide 35: Capital increase
Capital increase Price per share: €1.45 Amount raised: > Barcino Property SOCIMI SA will raise up to €15m to be able to buy new buildings in Barcelona Tentative time table: > This tentative time table is subject to the determination by the board of directors of the terms and conditions of the
Slide 36: 5. Appendices
5. Appendices Confidential
Slide 37: Terms & conditions
Terms & conditions Registered Advisor Renta 4 Corporate, S.A. Legal & Tax Advisor Cuatrecasas, GonçalvesPereira S.L.P. Auditor Deloitte S.L. Liquidity Provider Renta 4 Banco, S.A. And Bank Agent Valuation company (RICS) CBRE Valuation Advisory S.A. Financial Due Diligence Deloitte Financial Advisory
Barcino Property SOCIMI — Investor Presentation (May 2018) on 6ix