Varia Us Properties Ag · SIX:VARN
Varia Us Properties — FY2020 Earnings Presentation
31 slides from Varia Us Properties's earnings presentation, Mar 30, 2021
Slide 1: Presentation Full-Year 2020 Results
PRESENTATION FULL-YEAR 2020 RESULTS 1 Strictly confidential
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, 2021 Key achievements Financials FY 2020 Portfolio and growth strategy Outlook Q&A 3 Strictly confidential
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 Strictly confidential
Slide 5: Key Achievements
KEY ACHIEVEMENTS 5 Strictly confidential
Slide 6: 2020 Key Achievements (1/3)
2020 KEY ACHIEVEMENTS (1/3) ■ CORPORATE ACTIVITIES AND OPERATIONS ■ Resilient business model and stable rental income ■ Portfolio diversification proved to be a key driver to success ■ Focus on adjusting operations including support to the residents, implementation of health protective and cost savi
Slide 7: 2020 Key Achievements (2/3)
2020 KEY ACHIEVEMENTS (2/3) ■ KEY FIGURES ■ Total income of USD 152.4 million (2019: USD 139.5 million) ■ Effective gross income of USD 109.8 million (2019: USD 99.4 million) ■ EBITDA of USD 60.3 million (2019: 40.9 million) ■ EBITDA margin of 46.5% (2019: 40.8%) ■ Funds from operations (FFO) of USD
Slide 8: 2020 Key Achievements (3/3)
2020 KEY ACHIEVEMENTS (3/3) ■ VALUE-ADD IMPLEMENTATION ■ All property improvements and renovation works have been suspended between mid-March and mid-June. Varia US restarted with limited value-add activities, mainly in line with maintenance works and specific projects to increase curb appeals of ne
Slide 9: Financials FY 2020
FINANCIALS FY 2020 9 Strictly confidential
Slide 10: 2020 Key Figures (1/2)
2020 KEY FIGURES (1/2) EFFECTIVE FAIR VALUE TOTAL GROSS PORTFOLIO INCOME 2019: USD 139.5 million INCOME ADJUSTMENT* 2019: USD 99.5 million 2019: USD 40.0 million USD million 109.8 USD million 42.5 USD million 152.4 TOTAL REPAIR, YEAR I OPERATING MAINTENANCE AND CAPEX EXPENSES MINOR REPLACMENTS 2019:
Slide 11: 2020 Key Figures (2/2)
2020 KEY FIGURES (2/2) OPERATING PROFIT EBITDA 2019: USD 40.9 million PROFIT FOR THE 2019: USD 80.1 million PERIOD 2019: USD 42.8 million USD million 83.0 USD million 35.5 USD million 60.3 EARNINGS NAV FUNDS FROM PER SHARE PER SHARE OPERATIONS (FFO) 2019: USD 4.75 2019: USD 37.36 (EBITDA LESS INTERE
Slide 12: Profit and Loss (Consolidated)
PROFIT AND LOSS (CONSOLIDATED) In USD million As of December 31, 2020 As of December 31, 2019 Rental income 98.4 88.9 Other income including insurance proceeds 11.5 10.5 Net gain from fair value adjustment (realized) 19.9 0.9 Net gain from fair value adjustment on invest. property 22.7 39.1 Total in
Slide 13: Financial Position (Consolidated)
FINANCIAL POSITION (CONSOLIDATED) Assets in USD million As of December 31, 2020 As of December 31, 2019 Total current assets 116.8 35.3 Total non-current assets 941.2 926.8 Total assets 1,058.0 962.1 Liabilities and equity in USD million As of December 31, 2020 As of December 31, 2019 Total current
Slide 14: Key Figures – Financial (1/2)
Key Figures – Financial (1/2) Rental income in Mio* Total Income in Mio Total Income Rental income Like for Like Rental income in Mio 160 152,38 120 139,50 140 98.36 100 88.90 W 120 76,30 100,79 80 100 88,20 60 59,90 80 60 40 40 20 20 - - 2017 2018 2019 2020 2017 2018 2019 2020 EBITDA (Mio) & EBITDA
Slide 15: 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) 2016,5 2017 2017,5 2018 2018,5 2019 2019,5 2020 2020,5 Normalized FFO (FFO less debt cost am
Slide 16: Key Figures – Portfolio
Key Figures – Portfolio Units Assets 12 000 60 10 896 10 269 52 1.92% 53 10 000 9 737 50 50 44 8 245 8 000 40 6 000 30 4 000 20 2 000 10 - - 2017 2018 2019 2020 2017 2018 2019 2020 Occupancy Portfolio Value* 96% 95,36% 95,27% Portfolio Value Like for Like* Portfolio Value 95% 1 000 915 928 900 95% 8
Slide 17: Portfolio and Growth Strategy
PORTFOLIO AND GROWTH STRATEGY 17 Strictly confidential
Slide 18: Portfolio Development in 2020
PORTFOLIO DEVELOPMENT IN 2020 ■ Portfolio value of USD 928.2 million ■ 44 assets ■ 10,269 units ■ 19 different States in the US ■ Largest focus on Arizona (16%), Missouri (11%) and Texas (10%) ■ Two acquisitions: ■ Entering a new market in Indiana offering a great opportunity for future growth ■ In
Slide 19: Portfolio 2020 Key Figures
PORTFOLIO 2020 KEY FIGURES AVERAGE GROSS EFFECTIVE GROSS MONTHLY POTENTIAL INCOME* RENT PER UNIT INCOME* 2019: USD 109.2 million 2019: USD 810 2019: USD 117.6 million USD 824 USD million 114.4 USD million 106.8 AVERAGE MARKET OCCUPANCY LOAN-TO- VALUE PER UNIT RATE VALUE 2019: USD 83,989 2019: 95.3%
Slide 20: New Acquisitions Executed Over the Period
2 NEW ACQUISITIONS EXECUTED OVER THE PERIOD HARRISON POINT BRECKINRIDGE SQUARE CITY STATE ACQUISITION DATE/PRICE CITY STATE ACQUISITION DATE/PRICE Indianapolis Indiana October 2020/USD 21.7 million Louisville Kentucky December 2020/USD 33.8 million NUMBER OF UNITS NET RENTABLE GROSS NUMBER OF UNITS
Slide 21: Properties Sold Over the Period
11 PROPERTIES SOLD OVER THE PERIOD 21 Strictly confidential
Slide 22: Green Initiative
GREEN INITIATIVE ■ Main purpose of this initiative established in 2018 is to reduce water and energy consumption and utilities costs in order to benefit the residents, the investors and the environment ■ 8 Green loans executed with Fannie Mae ■ In 2020, Varia US ■ uploaded all its water, energy and
Slide 23: Green Initiative
GREEN INITIATIVE ■ 2021 action plan ■ hired of Green Building Initiative to frame Varia US’ ESG strategy and to prepare reporting and GRESB base benchmarking (Global Real Estate Sustainability Benchmark) ■ partnered with Arbor Day Foundation in order to plant 150,000 trees in Florida and Texas in tw
Slide 24: Outlook
OUTLOOK 24 Strictly confidential
Slide 25: The Market in 2021
THE MARKET IN 2021 ■ Positive market outlook for multifamily investments according to CBRE: “The multifamily sector will have a steady recovery in market fundamentals and investment activity in 2021. Suburban submarkets and the Midwest and Southeast regions will continue to outperform and provide go
Slide 26: Outlook 2021
OUTLOOK 2021 MANAGEMENT → Optimization of portfolio management and operations → Strive to maintain incomes and to improve operations wherever possible during the second year of the pandemic → Focus on maintaining occupancy, increase rent where and when possible and on limiting controllable expenses
Slide 27: Financial Calendar
FINANCIAL CALENDAR ■ Annual General Meeting 2021 29 April 2021 ■ Q1 Quarterly Newsletter at portfolio level 12 May 2021 ■ Half-Year Results 2021 31 August 2021 27 Strictly confidential
Slide 28: Q&A
Q&A 28 Strictly confidential
Slide 29: Appendix
APPENDIX 29 Strictly confidential
Slide 30: 2020 Normalized Figures
2020 NORMALIZED FIGURES 30 Strictly confidential
Slide 31: 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