Fideicomiso Irrevocable F/2061 · BIVA:FHIPO/14
Fideicomiso Irrevocable F/2061 — Fideicomiso Hipotecario (FHipo) — Q4 2014 Earnings Presentation
41 slides from Fideicomiso Irrevocable F/2061's earnings presentation, February 2015
Slide 1: Fourth Quarter 2014 Results
Investment that Transforms [THE FOLLOWING TRANSLATION IS FOR CONVENIENCE PURPOSES ONLY] Fourth Quarter 2014 Results INVESTOR RELATIONS Daniel Braatz / CFO db@fhipo.com Xavier Martínez / IRO xm@fhipo.com inverstorrelations@fhipo.com Ph: +52 (55) 4744-1100 www.fhipo.com
Slide 2: Index
Index 1 Executive Summary 2 About FHipo 3 Attractive Mexican mortgage market fundamentals 4 Portfolio composition as of 4Q14 5 Relevant events during 4Q14 6 Financial results & key metrics 7 Risk assessment 8 Our outlook 9 Financial statements as of 4Q14 2
Slide 3: 1. Executive Summary
IH | FIDEICOMISO | Hipotecario 1. Executive Summary
Slide 4: Successful IPO of FHipo, the first Mortgage REIT in Latin America
Successful IPO (Initial Public Offering) of FHipo, the first Mortgage REIT in Latin America… Market development First Mortgage REIT in Latin America Successful Initial Public Offering (“IPO”) … Mexican REIT market Securities Offered: CBFI (Certificado Bursátil is created Fiduciario Inmobiliario)
Slide 5: Focused on attractive market with favorable long term growth and demographics
…focused on attractive market with favorable long term growth and demographics… Constant growth in the mortgage market Favorable demographic situation (Ps$ in billions, in nominal values) (Age ranges on vertical axis and population in millions on horizontal axis) Young population, expected to impuls
Slide 6: Exclusivity in the program Infonavit Total for acquisition of loans
…with an exclusivity in the program “Infonavit Total” for the acquisition of loans within the Infonavit (The largest Mortgage Agency in Mexico) High Quality Loans with solid Eligibility Criteria Favorable History of Infonavit Total Loans (Non-performing Loans (NPL) as a % of total loans) Infonavit T
Slide 7: FHipo has acquired 9,680 mortgages with a 9.37% weighted average
(1) (2) FHipo has acquired 9,680 mortgages with a 9.37% weighted average in Times Minimum Wage (real interest rate)… (3) Distribution by Loan’s Origination Date Distribution by Borrower’s Salary in VSM Co-Participated by FHipo as of Dec. 31st, 2014. Total Accumulated Loans. (as % of total loans in t
Slide 8: With solid financial results in 4Q14
…with solid financial results in 4Q14 P&L Summary Two main drivers of income: - Interest from mortgage loans “Infonavit Total” - Interests from cash management P&L We achieved a Net Income of Ps. $55.52 million, implying a Net figures in thousands, except the Net Income per CBFI Income for distribut
Slide 9: 2. About FHipo
IH | FIDEICOMISO | Hipotecario 2. About FHipo
Slide 10: FHipo is the first Mortgage REIT in Latin America
FHipo is the first Mortgage REIT in Latin America… Market development Opportunity overview Mexican REIT market Commercial, office and Mexican REIT market is created in 2011. industrial REITs 2011 Lodging REITs In 2014, FHipo is created First lodging REIT in Mexico is − First mover advantage cr
Slide 11: Attractive vehicle for investors in a sub-penetrated mortgage market
…Attractive vehicle for investors in a sub-penetrated mortgage market with high growth potential … Diversified Credit Portfolio: Strategic Partnership: - Mitigating Risks - INFONAVIT: Mexico’s Housing - Mortgages all over Mexico Agency, which originates 100% of Strategic its mortgages under payroll
Slide 12: Concluding successfully its IPO in November 2014
...concluding successfully its IPO (Initial Public Offering) in November 2014… Global Offering | November 2014 Issuer Banco Invex, S.A. Instituto de Banca Múltiple Securities Offered CBFI (Certificado Bursátil Fiduciario Inmobiliario) Price per CBFI Ps. $25.00 per CBFI Offering Date November 5th 201
Slide 13: Robust corporate governance and an efficient structure
…with a robust corporate governance and an efficient structure… Public Float Sponsor Trust With independent CBFIs First mortgage REIT in Mexico Member’s Appointed by 92.5% 7.5% Issuer CBFIs’ holders Technical Committee Professionals with experience Manager & in the financial, real estate Audit,
Slide 14: With an experienced Management Team
…with an experienced Management Team Management Team Experienced management Alfredo Vara - CEO Served on the board of directors of Fincasa Hipotecaria In charge of mortgage securitizations issued by Deutsche Bank Mexico from 2006-2009 Founding Partner of Investment Banking Vace Partners More
Slide 15: 3. Attractive Mexican mortgage market fundamentals
3. Attractive Mexican mortgage market fundamentals
Slide 16: Stable Mexican macroeconomic environment with solid long-term growth
FHipo operates in a stable Mexican macroeconomic environment coupled with solid long-term growth… Strong economic growth rates Stable levels of inflation Solid financial position (Debt/GDP – 2013, %) GDP Inflation 4.40% 4.04% 3.98% 4.08% 72.3% 68.6% 3.70% 3.82% 3.57% 3.97% 3.40% 44.8% 2.20% 38.0% 1.
Slide 17: Demand driven by an underpenetrated mortgage sector
…where demand is mainly driven by an underpenetrated mortgage sector… Modest increase in NPL’s following the Mexican 2008-2009 financial crisis Mortgage market has exhibited constant growth… …while maintaining consistent levels of asset quality… (Ps$ in billions, in nominal values) (Non-performing L
Slide 18: Natural outlet in the debt market through securitizations (CDVITOTs)
…with a natural outlet in the debt market through the issuance of securitizations (CDVITOTs)… RMBS (CEDEVIs and CDVITOTs) are debt obligations that obtain their cash flows from residential debt such as Mortgages. When purchasing an RMBS the purchaser will access interest risk, while investing in FHi
Slide 19: Strategic alliance with Infonavit through the Infonavit Total Program
…and with a strategic alliance with Infonavit through the participation in the Infonavit Total Program Infonavit Total – Loan Program Characteristics Description - Infonavit Total Program Infonavit Total is a mortgage program focused on borrowers Characteristics with income levels greater than 4.5 V
Slide 20: The Infonavit Total origination program
…and the Infonavit Total origination program FHipo’s participation in the Infonavit Total Program FHipo works as an ally in mortgage origination with the Infonavit… Collection of interest and amortization (100%) Interest and Amortizations are paid to Mortgage House FHipo (55%) Origination acquisitio
Slide 21: How FHipo works
How FHipo works… FHipo Investment in FHipo is achieved through the Mexican Stock Exchange (BMV) and operates as follows... Public Investors Investment in FHipo through the Solid and stable cash flows with a stock market low risk profile FHipo originates Interest and mortgage securities with amortiza
Slide 22: 4. Portfolio composition 4Q14
4. Portfolio composition 4Q14 As of December 31st, 2014
Slide 23: Portfolio Composition as of 4Q14 – Key Data
Portfolio Composition as of 4Q14 – Key Data Summary of FHipo’s Portfolio Characteristics (Loan balance as of December 31st 2014) Total Value ~Ps. $3,598 million FHipo's Participation ~Ps. $1,979 million (Equivalent to 55% of Total Value)(1) Total Number of Loans (VSM and Pesos-denominated) ~9,680 VS
Slide 24: FHipo has acquired 9,680 mortgages with a 9.37% weighted average
(1) (2) FHipo has acquired 9,680 mortgages with a 9.37% weighted average in Times Minimum Wage (real interest rate) Distribution by Loan’s Origination Date (number of loans and year in which the mortgage was originated) 9,680 $1,979 3,673 4,036 Co-Participated by FHipo as of Dec. 31st, 2014. Total A
Slide 25: Geographically diversified portfolio of high credit quality borrowers
Geographically diversified Portfolio, focused on high credit (1) quality borrowers Geographic Distribution of Portfolio (as % of total loans in the portfolio) 21.6% 15.2% 11.0% 6.2% 4.7% 3.8% 3.7% 3.6% 3.5% 3.0% 5.4% 4.3% 3.7% 3.7% 3.5% 3.1% OTHERS COAHUILA QUINTANA ROO YUCATAN JALISCO PUEBLA NUEVO
Slide 26: 5. Relevant events during the 4Q14
5. Relevant events during the 4Q14 26
Slide 27: Summary of Relevant Events - Press Releases
Summary of Relevant Events - Press Releases published through the Mexican Stock Exchange Relevant Events FHIPO SUCCESFULLY CONCLUDES ITS INITIAL PUBLIC OFFERING ON THE MEXICAN STOCK EXCHANGE (November 5th, 2014) - The global offering consisted of 300,000,000 CBFIs, 38.55% of which were placed among
Slide 28: Performance of FHipo's CBFIs – Ticker FHIPO
Performance of FHipo’s CBFIs – Ticker “FHIPO” FHipo´s Certificados Bursátiles Fiduciarios Inmobiliarios (CBFIs) performance as of December 31st, 2014 Average Price $ 24.63 FHipo's IPO Average Volume 1,191,914 Nov – 5 – 2014 24.6 mm FHipo exercised successfully Initial Public Offering and in its
Slide 29: 6. Financial results & key metrics
6. Financial results & key metrics 29
Slide 30: Solid financial results in 4Q14
Solid financial results in 4Q14 P&L Summary Two main drivers of income: - Interest from mortgage loans “Infonavit Total” - Interests from cash management P&L We achieved a Net Income of Ps. $55.52 million, implying a Net figures in thousands, except the Net Income per CBFI Income for distribution, a
Slide 31: Distribution and Yield of our CBFIs
Distribution and Yield of our CBFIs In the following charts we illustrate the Earnings per CBFI for the period derived from our Initial Public Offering settlement dated November 10th 2014 to December 31st 2014. FHipo’s Distribution and Yield EPS @ 95% Estimated Distribution Distribution and Yield An
Slide 32: Our Key Metrics and Relevant Financial Information in 4Q14
Our Key Metrics and Relevant Financial Information in 4Q14 Our main Financial Metrics as of 4Q14 are displayed in the following table. Principal Financial Metrics We closed the 4Q14 with a Figures are presented according to each metric (%, $) 4Q14 Financial Margin of Ps. $65.34 millions (representin
Slide 33: 7. Risk assessment
IH | FIDEICOMISO | Hipotecario 7. Risk assessment
Slide 34: Risk Assessment
Risk Assessment 1. Market Risk 2. Credit Risk 1.For VaR calculations, we used the historical method since FHipo’s According to our analysis and FHipo’s mortgage portfolio composition, investment regime is considered low risk as all the investments are which was selected under our eligibility crite
Slide 35: 8. Our outlook
IH | FIDEICOMISO | Hipotecario 8. Our outlook
Slide 36: Guidance - Outlook
Guidance - Outlook 1 We expect that the Net 3 Start with the development and implementation Interest Margin will of FHipo’s leverage continue to increase Strategy. Leverage Net Interest as we deploy more Strategy Margin equity in new Mortgages. FHipo will be consolidated in 2015 as the first mortgag
Slide 37: 9. Financial statements 4Q14
9. Financial statements 4Q14 37
Slide 38: Financial Statements – Balance Sheet
Financial Statements – Balance Sheet Balance Sheet as of December 31st, 2014 (figures in thousands of Mexican pesos) 4Q14 ASSETS: Cash and cash equivalents $918,948 Debt securities 5,365,411 Current mortgage loans 1,979,441 Accrued interest 25,409 Indexation on mortgage loans 12,567 Allowance for lo
Slide 39: Financial Statements – P&L
Financial Statements – P&L Income Statement as of December 31st, 2014 (figures in thousands of Mexican pesos) 4Q14 REVENUES: Interests on mortgage loans $40,813 Investment income 24,527 Total net interest income 65,340 Financing interest expenses 0 Financial margin 65,340 (-) Allowance for loan loss
Slide 40: Financial Metrics
Financial Metrics Financial Metrics as of December 31st, 2014 Figures are presented according to each metric (%,$) 4Q14 Financial Margin and Interest Revenue Financial Margin - "interest revenue - interest expense / total interest revenue" 100.0% Adjusted Financial Margin - "adjusted by allowance fo
Slide 41: Disclaimer
Disclaimer This document was produced for information purposes only, for the exclusive use of the recipient. It should be understand as informative and should not be considered as a basis for any investment or financial transaction, therefore FIDEICOMISO HIPOTECARIO F/2061 (“FHipo”, the “Company” or
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