Varia Us Properties Ag · SIX:VARN
Varia Us Properties — FY2021 Earnings Presentation
29 slides from Varia Us Properties's earnings presentation, Mar 30, 2022
Slide 1: Presentation Full-Year 2021 Results
PRESENTATION FULL-YEAR 2021 RESULTS 1
Slide 2: Important Notice
IMPORTANT NOTICE This presentation includes forward-looking information and Although we believe that its expectations reflected in any statements, including statements concerning the outlook for such forward-looking statement are based upon reasonable our business. These statements are based on curr
Slide 3: Agenda
AGENDA MARCH 30, 2022 Key achievements FY financials Portfolio development ESG Outlook Q&A 3
Slide 4: Today's Speakers
TODAY’S SPEAKERS MANUEL LEUTHOLD PATRICK RICHARD ■ Chairman, ■ Executive Member of Varia US Properties AG the Board of Directors, Varia US Properties AG ■ Head of US Investments of Stoneweg SA, the Asset Manager of Varia US Properties AG 4
Slide 5: Key Achievements
KEY ACHIEVEMENTS 5
Slide 6: 2021 Key Achievements (1/2)
2021 KEY ACHIEVEMENTS (1/2) ■ CORPORATE ACTIVITIES AND OPERATIONS ■ Successful reporting year with excellent results ■ Significant increase of total income and EBITDA ■ Appraised portfolio value above USD 1.4 billion ■ Portfolio further strengthened with nine acquisitions and ten disposals ■ Board o
Slide 7: 2021 Key Achievements (2/2)
2021 KEY ACHIEVEMENTS (2/2) ■ KEY FIGURES ■ Total income of USD 320.0 million (2020: USD 152.4 million) ■ Rental income of USD 107.9 million (2020: 98.4 million) ■ Effective gross income of USD 138.0 million (2020: USD 106.7 million) ■ EBITDA of USD 80.7 million (2020: 60.3 million) ■ EBITDA margin
Slide 8: FY 2021 Financials
FY 2021 FINANCIALS 8
Slide 9: 2021 Key Figures (1/2)
2021 KEY FIGURES (1/2) EFFECTIVE FAIR VALUE TOTAL GROSS PORTFOLIO INCOME INCOME* ADJUSTMENT 2020: USD 152.4 million 2020: USD 106.7 million 2020: USD 42.5 million USD million 138.0 USD million 197.4 USD million 320.0 TOTAL REPAIR, YEAR I MAINTENANCE AND OPERATING MINOR REPLACMENTS CAPEX EXPENSES 202
Slide 10: 2021 Key Figures (2/2)
2021 KEY FIGURES (2/2) OPERATING PROFIT EBITDA PROFIT FOR THE (OPERATING PROFIT LESS UNREALIZED 2020: USD 83.0 million PERIOD REVALUATION) 2020: USD 35.5 million 2020: USD 60.3 million USD million 237.1 USD million 156.0 USD million 80.7 EARNINGS NAV FUNDS FROM PER SHARE PER SHARE OPERATIONS (FFO) 2
Slide 11: Profit and Loss (Consolidated)
PROFIT AND LOSS (CONSOLIDATED) In USD million As of December 31, 2021 As of December 31, 2020 Rental income 107.9 98.4 Other income including insurance proceeds 14.7 11.5 Net gain from fair value adjustment (realized) 41.0 19.9 Net gain from fair value adjustment on invest. property 156.4 22.7 Total
Slide 12: Financial Position (Consolidated)
FINANCIAL POSITION (CONSOLIDATED) Assets in USD million As of December 31, 2021 As of December 31, 2020 Total current assets 86.3 116.8 Total non-current assets 1,418.9 940.5 Total assets 1,505.9 1,057.3 Liabilities and equity in USD million As of December 31, 2021 As of December 31, 2020 Total curr
Slide 13: Key Figures – Financial (1/2)
Key Figures – Financial (1/2) Rental income in Mio Total Income in Mio Rental income Like for Like Rental income in Mio Total Income 120 107.9 100 98.4 350 88.9 320.0 76.3 300 80 250 59.9 60 200 139.5 152.4 40 150 100 88.2 100.8 20 50 - - 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 EBITDA (Mio
Slide 14: Key Figures – Financial (2/2)
Key Figures – Financial (2/2) Debt in Mio FFO in Mio (Funds from operations) Mortages Balance of interest bearing loans and borrowings LTV Debt Ratio Funds from Operatios (FFO) (EBITDA less Interest Expense) 1000 70% Normalized FFO (FFO less debt cost amortization, insurance proceeds and other non-c
Slide 15: Key Figures – Portfolio
Key Figures – Portfolio Units Assets 14’000 60 11’887 52 53 12’000 10’896 50 1.9% 10’269 50 9’737 44 43 10’000 8’245 40 8’000 30 6’000 4’000 20 2’000 10 - 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Occupancy Portfolio Value occupancy Like for Like Portfolio Value Like for Like* Portfolio Va
Slide 16: Portfolio Development
PORTFOLIO DEVELOPMENT 16
Slide 17: 2021 Portfolio Development
2021 PORTFOLIO DEVELOPMENT ■ Portfolio value of USD 1.4 billion ■ 43 assets with a total of 11,887 units ■ Present in 15 States; largest focus on Arizona and Indiana (14% each) and Kentucky and Missouri (13% each) ■ Ten assets sold and nine properties acquired (see slides 19 and 20) 17
Slide 18: 2021 Portfolio Key Figures
2021 PORTFOLIO KEY FIGURES AVERAGE GROSS EFFECTIVE GROSS MONTHLY POTENTIAL INCOME* 2020: USD 106.7 million RENT PER UNIT INCOME* 2020: USD 824.0 2020: USD 114.4 million USD 932.0 USD million 147.4 USD million 138.0 AVERAGE MARKET OCCUPANCY LOAN-TO- VALUE PER UNIT RATE VALUE 2020: USD 90,390 2020: 95
Slide 19: 2021 with Nine Acquisitions and…
2021 WITH NINE ACQUISITIONS AND… 19
Slide 20: … Ten Disposals of Properties
… TEN DISPOSALS OF PROPERTIES Gross IRR and Gross Multiple at property level each. *All deals were recapitalized in January 2018, when the Company bought out previous Non-Interest Equity holder. All numbers above are based on the performance of the assets after January 2018. 20
Slide 21: ESG Achievements
ESG ACHIEVEMENTS 21
Slide 22: 2021 ESG Achievements (1/2)
2021 ESG ACHIEVEMENTS (1/2) ■ First company ESG report published today, GRESB submission to be completed in 2022 based on 2021 data ■ New partnership with ESUSU to offer a direct reporting of on-time payment of rents and utility bills to credit agencies for the residents of Varia’s properties ■ Ongo
Slide 23: 2021 ESG Achievements (2/2)
2021 ESG ACHIEVEMENTS (2/2) 23
Slide 24: Outlook 2022
OUTLOOK 2022 24
Slide 25: 2022 Outlook (1/2)
2022 OUTLOOK (1/2) ■ Positive market outlook for multifamily investments according to CBRE: “The multifamily sector is set for a record-braking 2022 amid solid fundamentals and heightened investor interest. With tremendous liquidity and a growing range of debt options available, multifamily pricing
Slide 26: 2022 Outlook (2/2)
2022 OUTLOOK (2/2) MANAGEMENT → Ongoing optimization of portfolio management and operations → Strive to maintain incomes and to improve operations wherever possible Focus on maintaining occupancy, increase rent where and when possible and on limiting controllable expenses → Continue to implement the
Slide 27: Summary
SUMMARY Well-performing multifamily property portfolio in the U.S. COMPANY Promising acquisition pipeline in growing urban submarkets Cash flow optimization through attractive financing and rehabilitation as well as solid cash flow generation allowing for high distribution to shareholders Bo
Slide 28: Financial Calendar 2022
FINANCIAL CALENDAR 2022 ■ Annual General Meeting 2022 29 April ■ Q1 2022 Update 19 May ■ Half-Year Results 2022 29 August 28
Slide 29: Q&A
Q&A MANAGED BY STONEWEG @w)