Inmobiliaria Del Sur, S.a. · BME:ISUR
Inmobiliaria Del Sur — Investor Presentation (March 2018)
37 slides from Inmobiliaria Del Sur's investor presentation, March 2018
Slide 1: Corporate Presentation
CORPORATE PRESENTATION March 2018
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 publication
Slide 3: Content
Content 1. Who are we? • Rental • Property Development • Project Management and Construction 2. Sector Evolution 3. Financial Results 4. Strategy 5. Insur on the Stock Exchange 6. Annexes 3
Slide 4: 1. What is Insur?
1. What is Insur? Real Estate Group founded in 1945 Strongly committed to the highest standards of Corporate Management, Quality and First listed on the stock market in 1984. Environmental Protection On the continuous market of the Spanish Stock Exchange since 2015 Management team with Operating in
Slide 5: Rental business. Investment breakdown
Rental business. Investment breakdown Portfolio of 118,240 sqm of offices and commercial premises and more than 2,500 parking spaces Geographic distribution by sqm ground area Distribution according to typology 2% 4% 3% 10% 1% 32% 64% 84% Sevilla Málaga Córdoba Huelva Madrid Commercial Oficinas Offi
Slide 6: Rental business. Prime area locations
Rental business. Prime area locations Aldi Joaquín Turina (Madrid) CAPITAN HAYA 24-25 (Madrid) 2% Ed. García Lovera (Cordoba) 2% 87% 7% Ed. Insur (Seville) 2% Ed. Insur Cartuja (Seville) Ed. Insur Huelva Centro de Empresas República 21 (Seville) C.C. El Mirador (Seville) Ed. Capitolio (Seville) Ed.
Slide 7: Rental business. Sound and increasingly diversified customer base
Rental business. Sound and increasingly diversified customer base Edificio Gª Edificio Lovera Menara Edificio Insur Cartuja y Suecia Edificio Capitolio Edificio Buenos Aires 21-23-25 Edificio Insur & Edificio IDS C.C El Andalucía Mirador Centris II 7
Slide 8: Rental business
Rental business Leasing of tertiary assets that represent 70% GAV* of the Group (€297.2M*) with capital gains on book value of €161.3 M* Prime areas An activity that allows it to: Reduce the impact of cycles in the real estate sector Absorb financial costs and part of the structural costs
Slide 9: Rental activity. Occupancy rate recovery
Rental activity. Occupancy rate recovery M€ M€ Rental Revenues Evolution Sales acceleration -0.7% 14,100 13.5 11,763 11.92% 11.8 10,590 11.6 9,292 10.5 10.4 9.95% 6,815 7.86% 8.96% 5.76% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 sqm sold Sales over GLA GAV of the assets aimed both at rental
Slide 10: Real Estate Development. Ongoing developments and land portfolio
Real Estate Development. Ongoing developments and land portfolio A B Ongoing Developments Land Portfolio 1.963 ongoing units 2,652 units 132 housing units completed of which 101 are pending Lots acquired in the period 2014-2017: to be sold and 31 to be delivered. 95,000 sqm of buildable plots
Slide 11: Real Estate development business. Some developments in detail
Real Estate development business. Some developments in detail Moscatelares (San Sebastián de los Reyes - Madrid) Joaquín Turina (Madrid) Edificio Miraflores (Seville) Boadilla Garden (Boadilla del Monte - Madrid) Río 55 Business Park (Madrid) Residencial Conde de Zamora (Cordoba) Pineda Park (Sevill
Slide 12: Real Estate development business
Real Estate development business Higher margins than those on the rental activity Operating in areas in which 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 housin
Slide 13: Real Estate Development. Activity boost shown in presales figure
Real Estate Development. Activity boost shown in presales figure M€ Real Estate Development Revenues M€ Real Estate Development Pre-sales Evolution Evolution* +15.2% Nº houses 46.0 +77.6% 43.0 43.1 40.0 135.4 69.9 76.2 11.5 40.0 24.9 468 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 • Real Estat
Slide 14: Construction and Project Management
Construction and Project Management 25.6 M€ CONSTRUCTION REVENUES 2.5 M€ PROJECT MANAGEMENT REVENUES Increase of 371.8% Increase of 71.8% Main projects managed currently IDS MADRID MANZANARES S.A. Insur Madrid Río – Business Park (28,159 UNDER CONSTRUCTION Partners: Private investors (50%) sqm div
Slide 15: 2. Sector evolution
2. Sector evolution 15
Slide 16: Macro environment
Macro environment Last year statistics confirm that the recovery of the real estate cycle in Spain is a reality Housing prices keep increasing, BBVA Research estimates that 2017 will close with a 2.5% increase Mortgage volumes have increased by 14.7% in the ten first months of the year compared to t
Slide 17: 3. Financial results
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Slide 18: Executive Summary. 2017 Results
Executive Summary. 2017 Results M€ 2017 2016 Variation I. EXECUTIVE SUMMARY Revenues 84.6 57.3 +47.5% Real Estate Development 46.0 40.0 +15.2% 2017 RESULTS Rental 10.4 10.5 -0.7% Construction 25.6 5.4 +371.8% Project Management 2.5 1.4 +71.8% EBITDA 13.6 14.5 -5.9% ADJUSTED EBITDA 12.1 12.0 +0.1% OP
Slide 19: Net Financial Debt
Net Financial Debt Financial Debt Evolution M€ Net Financial Debt Evolution 2017 2016 Var % 189.6 -6.3% Long term 185.6 167.0 M€ 183.5 M€ -9.0% 184.1 Financial Debt 177.6 Short term 33.8 M€ 20.9 M€ +61.7% Financial Debt 171.6 Total Financial 200.7 M€ 204.4 M€ -1.8% Debt 2013* 2014 2015 2016 2017 Fin
Slide 20: GAV, NAV & LTV
GAV, NAV & LTV * At December 2017 CBRE GAV Insur* M€ NAV valuation according to 306.0 RICS standard 246.5 30% 424 M€ 2017 2017* 70% * Adding 77.1 M€ to the GAV from subsidiaries which consolidate by equity method Real Estate Development Rental and 17.6 M of their associated net financial debt GAV In
Slide 21: 4. Insur on the stock exchange
4. Insur on the stock exchange 21
Slide 22: Share Price evolution
Share Price evolution Share Price evolution 01/01/17 to 31/12/17 In 2017 the share Price grew by 29%, closing at 10.19 €/share which implies a market cap of 172,943,121€ at 31st December 2017 Discount vs adjusted Dec 17 Market Cap NAV Discount vs NAV Adjusted NAV * NAV 172.9 M€ 246.5 M€ 29.8% 306.0
Slide 23: 5. Strategy
5. Strategy 23
Slide 24: 5. Strategy
5. Strategy Property Development 1. Investment primarily in finalist land 2. Development of projects in markets with Rental extensive knowledge 1. Development of assets from the activity 3. Development of projects in areas with of promotion proven demand (first residence in provincial 2. New investm
Slide 25: Annexes
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Slide 26: History
History Sept. 1945 • Foundation. • Acquisition of plots of land in Avda. República Argentina, Seville. 1946 • Start of Rental activities. 1960-1980 • Starts listing on the Madrid Stock Exchange. March. 1984 • Geographic expansion. • JV with Local Savings Banks. 1997-2000 • Expansion in the Costa del
Slide 27: Organisational structure and human team
ORGANISATIONAL STRUCTURE AND HUMAN TEAM • Matrix structure organised along business lines and units and auxiliary and support areas. • Well-sized staff, with more than 150 employees at present and a significant increase since 2014 due to the relaunching of the promotion activity. • Low staff turnove
Slide 28: Management team
MANAGEMENT TEAM Board member since 2001 and Chairman of the Management Board since 2005. Ricardo Pumar López Graduated in Law and Business Administration (ICADE) and Senior Management Programme (Instituto San Chairman Telmo). He has 20 years experience in Business Administration and Civil Law. He jo
Slide 29: Management team
MANAGEMENT TEAM She joined Insur in 1994 Lola Cánovas García Diploma in Business Sciences (Escuela Universitaria de Estudios Empresariales de Murcia) and Diploma in Property Management Director Business Management (Instituto San Telmo). She has developed her entire professional career at Insur, init
Slide 30: Corporate structure
CORPORATE STRUCTURE Inmobiliaria del Sur, S.A. Sociedad Matriz 100% 100% 100% 100% 100% 100% 100% IDS Andalucía IDS Córdoba IDS Huelva Parking Insur, Insur Centros de Insur Promoción Coopinsur, S.A.U. Patrimonial, S.L.U. Patrimonial, S.L.U. Patrimonial, S.L.U. S.A.U. Negocios, S.A.U. Integral, S.L.U
Slide 31: Corporate governance
CORPORATE GOVERNANCE Board of Directors with a strong commitment to the highest standards of corporate governance • The Board of Directors represents a 37.41% 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 32: Board of Directors
BOARD OF DIRECTORS Proprietary Directors Prudencio Hoyos-Limón Pumar Augusto Sequeiros Pumar Gregorio Arranz Pumar Andrés Fernández Romero José Manuel Pumar López Salvador Granell Balén Inversiones Agrícolas, Industriales y Comerciales, S.L. (Fernando Pumar López) Increcisa, S.L. (Ignacio Ybarra Osb
Slide 33: Rental business. Investment breakdown
RENTAL BUSINESS INVESTMENT BREAKDOWN Building City Ma in use S Q M a bove ground EDIFICIO REPÚBLICA ARGENTINA, 25 Sevilla Offices and commercial premises 19.876 EDIFICIO INSUR Sevilla Offices and commercial premises 17.885 EDIFICIO REPÚBLICA ARGENTINA, 23 Sevilla Offices and commercial premises 7.96
Slide 34: Real Estate Development. Own projects
Real Estate Development Own projects Figures as of January 2018 PROJECTS UNDER CONSTRUCTION Volume of sales Planned Development Location Building potential No. of homes Units sold (M€) delivery Jardines de Arco Norte 3* Dos Hermanas (Sevilla) 3,140 27 5.1 2018 20 Edificio Galileo* Mairena del Aljara
Slide 35: Real Estate Development. Projects in JV
Real Estate Development Projects in JV * On marketing stage Figures as of January 2018 JVS PROJECTS UNDER CONSTRUCTION Development Location Building potential No. of homes Volume of sales (M€) Planned delivery Units sold Selecta Rodas * Dos Hermanas (Sevilla) 7,560 54 12.3 2018 51 Alminar II* Marbel
Slide 36: Development-Rental activity Río 55 Madrid Business Park
Development-Rental activity Río 55 Madrid Business Park RÍO 55 is a project developed by IDS Madrid Manzanares, S.A., a company founded in 2016 by Insur, which has a 50% stake, and two private investors. Beside the "Google Campus" and the Mahou Calderón urban project, with direct access to the M30 i
Slide 37: Ready to grow with profitability
READY TO GROW WITH PROFITABILITY
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