Vbare Iberian Properties Socimi S.a. · BME:SCVBA
Vbare Iberian Properties Socimi — Investor Presentation (March 2018)
30 slides from Vbare Iberian Properties Socimi's investor presentation, Mar 12, 2018
Slide 1: Investors Presentation
VBARE Iberian Properties SOCIMI, S.A. Investors Presentation March 2018 Strictly Confidential March 12th, 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by VBA RE Iberian Properties SOCIMI, S.A. (“VBARE”). This presentation does not constitute and should not be construed as an offer to sell or issue, or the solicitation of an offer to buy or acquire securities. This Presentation is solely for informatio
Slide 3: Who we are
Who we are - First, publicly traded Spanish REIT exclusively dedicated on the Residential Rental Market (traded on the Spanish Alternative Investment Market – MAB) - Focused on creating a portfolio of assets with a stable rental yield and high capital gain potential - Founded by VALUE BASE and AURA
Slide 4: Who we are – Sponsors
Who we are – Sponsors VALUE BASE AURA REE • Leading Investment Bank in Israel • Leading portfolio valuation advisor in Spain with more than 5 million • Established in 2013 by Victor transactions Shamrich and Ido Neuberger, previously co-CEOs of Meitav-Dash, • Specialized in advising Spanish and seco
Slide 5: Who we are – Team
Who we are – Team Results driven Management team and Board of Directors with strong track-record Fernando Acuña, MRICS Ido Nouberger Chairman of the board Director Founder & CEO of Aura REE CEO & Co-Founder, Value Base Ltd Over 10 years of experience in Real Estate More than 20 years of experience i
Slide 6: Our Strengths
Our Strengths Unique database Fully compliant vehicle Exclusive access to a unique proprietary data base A vehicle compliant with all requirements set out with more than 20 million comparables allowing by the Stock Exchange Regulator a very precise underwriting of each transaction Transparency Team
Slide 7: Main events
Main events March 2015 2015 2016 23 December 2016 2017 • € 13.9 mn fundraising • € 1.7 mn fund raising • Listing at the Spanish • € 7.2 mn fund raising • Incorporation of the Company Alternative Investment • Bank financing € 4.4 mn • Bank financing 2.2 M€ • Application to REIT Regime Market (MAB) (S
Slide 8: Why we invest in the Spanish Residential Rental Market (1/3)
Why we invest in the Spanish Residential Rental Market (1/3) Solid growth of the Spanish economy over performing Strong job creation and increasing private consumption other OECD countries in Spain 30% 4% 3,1% 3.2% 3% 25% 2,5% 2,5% 2% 2,2% 20% 2,2% 1% 2,0% 1,8% 15% 15% 0% 1,5% 1,5% 1,4% 1,3% -1% 10%
Slide 9: Why we invest in the Spanish Residential Rental Market (2/3)
Why we invest in the Spanish Residential Rental Market (2/3) Robust demographic growth Social trends making rental residential more attractive to young generation 140 +32% population growth 15,50% +40% Still lagging 21,80% 130 behind Europe 30,50% 120 +16% 110 vs 69,50% 100 84,50% 78,20% 90 80 Spain
Slide 10: Why we invest in the Spanish Residential Rental Market (3/3)
Why we invest in the Spanish Residential Rental Market (3/3) House prices steadily increasing since 2013 bottom values Increasing residential rental prices backed by high demand and product shortage, especially in Madrid 200 Rental evolution (€/sqm) Thousands Pre-crisis level 190 18 16 +11% 180 +31%
Slide 11: Creating long term value
Creating long term value Minimum target 4% stabilized net yield unlevered Acquiring Metropolitan with at least areas in top 10% discount cities of Spain on market prices Main investment criteria Value added strategy: No Refurbishing Development or renovation 11
Slide 12: Portfolio Overview
(1) Portfolio Overview Portfolio evolution (# assets) 220 210 (2) 197 • Number of assets 197 200 182 180 160 • GLA 8,616 sqm 140 120 100 • Occupancy rate 88.9% 80 60 52 40 • Total invested capital: €17.2 mn 20 0 Q4 2015 Q4 2016 Q4 2017 Q1 2018 • GAV € 28.5 mn Portfolio status • GAV €/sqm € 3,307 per
Slide 13: Portfolio location
Portfolio location 51.8% of GAV located in Madrid center (inside M-30) 42.5% of GAV in the rest of the city of Madrid 5.7% of GAV in the rest of Madrid metropolitan area 100% of the portfolio is currently located in Madrid metropolitan area - benefiting from fast-growing rents and asset values 13
Slide 14: Our assets – examples
Our assets – examples Juan Pascual Bariloche Santa Julia Vicente Carballal Carnicer Antonia Ruiz Soro 14
Slide 15: Strong operating results
Strong operating results Occupancy Rent growth 90% 1.600 € 9% 89% Thousands ERV yield 8% 1.400 € 8% 88% 7% 1.200 € 6% 86% 6% +8% 1.000 € 5% 84% 800 € 1.377 € 4% 82% 600 € 3% 81% 1.076 € 3% 400 € 80% 2% 483 € 200 € 1% 78% - € 0% Rent income 31/12/2016 Rent income 31/12/2017 ERV 76% Occupancy 31/12/20
Slide 16: Proven Asset Management Capabilities
Proven Asset Management Capabilities 222 new leases signed + 11,8 % rent uplift € 7,4K Avg. CapEx invested per unit +200% occupancy growth > 26K Avg. views per month on online +61% GAV increase leasing platforms Outstanding performance through active Value Add asset management 16
Slide 17: Extraordinary performance
Extraordinary performance GAV Evolution GAV as of 31/12/2017 35 Million € 30 25 + 61% 35% Revaluation 20 € 28,5 mn 52% 15 10 5 13% 0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Whole building Assets in the same building Scattered units 61% increase
Slide 18: Case Study – Brihuega
Case Study – Brihuega • Asset located in the south-west area of Madrid with good transportation options and nearby services • Avg. purchase price per unit € 69.6K • Additional CapEx invested per unit of € 3,200 • Rents increase +12,8% • 8,85% stabilized yield on total invested capital • +92% GAV rev
Slide 19: Case Study - Tetuán
Case Study - Tetuán • Tetuan is one of the most attractive and fast- growing neighborhood in Madrid • 40% of portfolio units are located in this area • € 7,2 mn total invested capital • Additional CapEx invested of € 565K • Rents increase +13,4% • +36% GAV portfolio revaluation 19
Slide 20: Case study – Vicente Carballal
Case study – Vicente Carballal • 31 residential units located in the south east of Madrid • Acquisition price € 2.1 mn • Additional CapEx invested of € 100K • Rents increase over initial underwriting +9,7% • 9,1% stabilized yield on total invested capital • +106% GAV revaluation 20
Slide 21: Market opportunities
Market opportunities Pipeline status Pipeline by Location 53% 157€ M 182€ M 25€ M 47% Initial analysis Advanced analysis Madrid Other • € 25 mn of investment opportunities in advanced analysis matching our investment strategy • Increasing volume of investment opportunities outside of Madrid 21
Slide 22: Key financial figures
Key financial figures Main balance sheet figures Consolidat ed Income St at ement Dec. 2017 Dec. 2016 Dec. 2017 Dec. 2016 GAV 2 8,54 2 K 2 3 ,3 9 0 K Gross Rental Incom e 1 .07 6 4 83 Gross financial debt 6 ,3 2 3 K 4 ,2 59 K Property operating expenses (53 3 ) (3 4 0) Gross LTV 2 2 .5% 1 8.2 % Gros
Slide 23: Capital structure
Capital structure (1) Share Value evolution (€) 13,48 12,96 12,90 13 13 • Market capitalization € 28.9 mn 12,28 12,00 11,57 • Share value € 13.98 10,00 10,43 10,74 10,00 • EPRA NAV € 29.9 mn • EPRA NAV per share € 14.08 Q1 2015 Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016 Q1 2017 Q2 2017Q3 2017
Slide 24: Closing Remarks
Closing Remarks • Excellent operating results driven by active asset management • Outstanding portfolio revaluation of 61% over invested capital • Solid financial position to fund future investments • Strong investment momentum with € 25 mn of identified opportunities in advanced analysis 24
Slide 25: Annex
Annex 25,
Slide 26: Annex 1 – CVs of Board and Management team (1/2)
Annex 1 – CVs of Board and Management team (1/2) Fernando Acuña – Board of Directors and Management team Juan Manuel Soldado – Board of Directors and Management team Founder & CEO of Aura Ree & Taurus (a Spanish real estate broker company) CEO at Aura Asset Management CEO of Mortgage & Consumer F
Slide 27: Annex 1 – CVs of Board and Management team (2/2)
Annex 1 – CVs of Board and Management team (2/2) Yair Ephrati – Board of Directors and Management team CEO of Value Base M&A and director in various private and public companies, with over 20 years of investment banking and corporate finance experience CEO of Meitav-DS Mergers & Acquisitions, a le
Slide 28: Annex 2 – SOCIMI Requirements
Annex 2 – SOCIMI Requirements Requirement Legal form The SOCIMI must be a Spanish stock corporation (SA – Sociedad Anónima). Capital requirements Nominal capital of a SOCIMI must be at least €5m. There is no maximum threshold for external debt. Listing requirements SOCIMIs must be listed on an organ
Slide 29: Annex 3 – Financial Statements
Annex 3 – Financial Statements Consolidat ed St at ement of Financial Posit ion Consolidat ed Income St at ement € Thousand Dec. 2016 Dec. 2017 Dec. 2016 Dec. 2017 Property plant and equipm ent 1 4 Gross Rental Incom e 4 83 1 .07 6 Inv estm ent properties 2 3 .3 9 0 2 8.54 2 Property operating expen
Slide 30: Annex 4 – Terms & Conditions
Annex 4– Terms & Conditions Registered Advisor Renta 4 Corporate, S.A. Legal & Tax Advisor Thomas de Carranza Abogados, S.L.; Uría Menéndez Abogados, S.L.P. Auditor PricewaterhouseCoopers Auditores, S.L. Liquidity provider and Renta 4 Sociedad de Valores, S.A. Bank Agent Valuation company (RICS) Agu
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