Madrid, 8 de agosto de 2019
En virtud de lo previsto en el artículo 17 del Reglamento (UE) nº 596/2014, sobre abuso de mercados y en el artículo 228, del texto refundido de la Ley del Mercado de Valores, aprobado por el Real Decreto Legislativo 4/2015 de 23 de octubre y disposiciones concordantes, así como, en la Circular 6/2018 del Mercado Alternativo Bursátil (MAB), VBARE Iberian Properties SOCIMI, S.A. (la "Sociedad" o "VBARE"), pone en conocimiento el siguiente:
HECHO RELEVANTE
Por medio del presente hecho relevante, se adjunta la presentación de resultados del período de 6 meses finalizado el 30 de junio de 2019.
La documentación anterior también se encuentra a disposición del mercado en la página web de la Sociedad (www.vbarealestate.com).
Quedamos a su disposición para cualquier aclaración que pueda ser necesaria.
D. Íñigo Sánchez del Campo Basagoiti
Secretario No Consejero del Consejo de Administración
VBARE Iberian Properties SOCIMI, S.A.
1
RESULTS PRESENTATION FOR THE 6 MONTHS
PERIOD ENDED ON JUNE 30, 2019
August 8, 2019
DISCLAIMER
This document has been prepared by VBARE Iberian Properties SOCIMI, S.A. (the "Company") and its subsidiaries (the "Group").
This Presentation does not constitute or form part of, and should not be construed as, any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any purchase of or subscription for securities of the Company should be based solely on each investor's own analysis of all public information, the assessment of risk involved and its own determination of the suitability of any such investment. No reliance should be placed and no decision should be based on this Presentation.
This Presentation may not be copied, distributed, reproduced or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient to any other person, for any purpose other than the above. In addition, this Presentation may not be distributed, disseminated, published, or in any other way taken or transferred to any jurisdiction where it would be contrary to applicable law. Distributing this Presentation in other jurisdictions may be subject to restrictions according to applicable law and the recipients of this Presentation must find out for themselves the restrictions and their fulfilment. Not complying with the restrictions may be a breach of applicable law.
The information contained in this Presentation does not purport to be comprehensive or to include all information that may be required to fully analyze the issues referred to therein. Accordingly, no representation or warranty, express or implied, is made as to the truth, accuracy or completeness of the information in this Presentation. None of the Company, any of its subsidiaries, or any of their respective directors, officers or employees accepts any responsibility or liability whatsoever for any loss howsoever arising from any use of this Presentation or otherwise arising in connection therewith.
The information and opinions contained in this Presentation are provided as at the date of the Presentation and are subject to verification, correction, completion and change without notice. In giving this Presentation, no obligation to amend, correct or update this Presentation or to provide the recipient with access to any additional information that may arise in connection with it is undertaken.
This Presentation may include forward-looking statements relating to, among others, the Company's financial position, operating results, strategy, plans, targets or goals. Forward-looking statements are subject to risks, uncertainties and factors beyond the Company's control that may result in actual results materially differing from prospective results or the results implied in the forward-looking statements. Therefore, the results and actual performance may materially differ from those expressed or implied in the forward-looking statements. In the same way, the forward- looking statements must not be deemed to entail any statement, promise or warranty of the accuracy or completeness of the assumptions or hypotheses on which the forward-looking statements, expectations, estimations or provisions are based or, in the case of assumptions, of their full inclusion in the Presentation. No undue reliance should be placed on the forward-looking statements.
The Company and its employees, managers, directors, advisors, representatives, agents or affiliates accept no liability (for fault or negligence, whether direct or indirect, contractual or non- contractual) for damages caused by using this Presentation or its content or that, in any manner, relate to this Presentation.
When receiving or attending the Presentation, the recipient declares that he or she agrees with and thus is subject to the above restrictions.
2
INDEX
- KEY FIGURES
- VBARE AT A GLANCE
- H1 2019 PERFORMANCE
- FINANCIAL INFORMATION
- H1 2019 SUBSEQUENT EVENTS
3
1. KEY FIGURES
4
KEY FIGURES
- €1.7M PROFIT IN H1 2019 (+40%)
- +39% GROSS RENTAL INCOME INCREASE
- +17% GAV INCREASE vs DECEMBER 2018
- +51.6% ACCUMULATED GAV PORTFOLIO REVALUATION OVER TOTAL INVESTED CAPITAL
- +29% EARNINGS PER SHARE VS. JUNE 2018
- EPRA NAV PER SHARE 20% DISCOUNT VS. SHARE PRICE
June 30, 2019 | June 30, 2018 | Var % | ||
KEY RESULTS FIGURES | ||||
Gross Rental income (GRI) | € k | 902 | 648 | 39% |
Net Rental income | € k | 618 | 410 | 51% |
Net Rental Income Margin | % | 68.5% | 63.3% | 8% |
Profit for the period | € k | 1,676 | 1,195 | 40% |
Basic and diluted earnings per share | € | 0.71 | 0.55 | 29% |
June 30, 2019 | December, 31 2018 Var % | |||
KEY FINANCIAL HIGHLIGHTS | ||||
Portfolio Gross Value (GAV) | € k | 58,665 | 50,095 | 17% |
EPRA NAV | € k | 38,399 | 37,145 | 3% |
EPRA NAV per Share | € | 16.2 | 15.7 | 3% |
Net Financial Debt | € k | 19,226 | 11,514 | |
LTV Ratio | % | 34.20% | 33.50% | |
Financial cost | % | 1.75% | 1.75% | |
Cash at Banks | € k | 783 | 5,059 | |
June 30, 2019 | December, 31 2018 Var % | |||
KEY OPERATIONAL HIGHLIGHTS | ||||
Number units | Units | 301 | 272 | 11% |
Total GLA | sqm | 17,717 | 16,200 | 9% |
Residencial GLA | sqm | 16,448 | 15,139 | 9% |
Annualized Portfolio Current Passing Rent | € k | 1,746 | 1,646 | 6% |
Current Residential Passing Rent | €/sqm/Month | 11.0 | 10.86 | 1% |
Portfolio Annual Reversionary Rent | € k | 2,958 | 2,600 | |
Average Occupancy Rate stabilized assets | % | 91.87% | 90,11% |
Key Financial Figures according to International Financial Reporting Standards as adopted by the European Union (IFRS -EU) | 5 |
GAV is based on Savills Aguirre Newman Valoraciones y Tasaciones S.A.U. external independent appraisal as of June 30, 2019 and December 31, 2018 |
2. VBARE AT GLANCE
6
PORTFOLIO OVERVIEW
NUMBER OF UNITS: | 301 |
GLA: | 17,717 SQM |
AVERAGE OCCUPANCY RATE IN 2019: | 91.87% |
TOTAL INVESTED CAPITAL: | €38.7M |
INVESTED CAPITAL € PER SQM: | €2,183 |
GAV: | €58.7M |
GAV € PER SQM: | €3,311 |
CURRENT PASSING RENT: | €1,746M |
ANNUAL REVERSIONARY RENT: | €2,958M |
GROSS YIELD ON INVESTED CAPITAL OVER STABILIZED ASSETS: | 7.56% |
Information as of June 30, 2019 | |
Gross yield on invested capital calculated over stabilized assets | |
Average occupancy calculated over stabilized assets | 7 |
Stabilized assets are those assets that do not require significant capex investments and are mostly leased at market rents |
PORTFOLIO OVERVIEW
TYPE OF OWNERSHIP
17%
Entire Building | ||
8% | Scattered asset | |
6% | Units in the same building | |
(>50%) | ||
Units in the same building | ||
69% | (<50%) |
PORTFOLIO LOCATION
69% | |
22% | |
6% | 3% |
Inside M30 | Outside M30 | Metropolitan Area of | Other Cities |
Madrid |
UNITS BY SURFACE
10%
19%
0-35 sqm
35-50 sqm
29% | 50-75 sqm |
>75 sqm
42%
NUMBER OF BEDROOMS
13% | 1% | 12% | |
Studio | |||
1 Bedroom | |||
2 Bedrooms | |||
29% | 3 Bedrooms | ||
45% | 4 Bedrooms | ||
MAJORITY OF THE PORTFOLIO LOCATED IN ASSETS WITH >50% OWNERSHIP, IN MADRID
CITY CENTER AND WITH THE APPROPRIATE SIZE
Information as of June 30, 2019
8
KEY METRICS
€120,774 | 56 SQM | |
AVERAGE ACQUISITION | AVERAGE SQM | |
COST PER UNIT | PER UNIT | |
28.5 26%
MONTHS | VBARE TENANTS' |
AVERAGE | |
EFFORT RATE | |
LEASE TERM | |
€609
AVERAGE LEASE RENT
PER UNIT
€11.0
AVERAGE LEASE RENT
PER SQM
1.58
TENANTS
PER UNIT
Information as of June 30, 2019
Average lease rents without parkings, storage untis nor Old Leases9Average lease term without Old Leases
3. H1 2019 PERFORMANCE
10
PORTFOLIO EVOLUTION (I)
GLA (SQM)
17,717 | ||
16,200 | ||
+50% | ||
10,795 | ||
2017 | 2018 | Q2 2019 |
BUILDING OWNERSHIP > 50% (% GAV)
73% | +5% | 77% | |
54% | |||
2017 | 2018 | Q2 2019 |
UNITS | ||
301 | ||
272 | +11% | |
+38% | ||
197 | ||
2017 | 2018 | Q2 2019 |
MADRID CITY CENTER INSIDE M30 (% GAV)
+8% | 69% | ||
64% | |||
52% | |||
2017 | 2018 | Q2 2019 |
SIGNIFICANT PORTFOLIO GROWTH WITH IMPROVED ASSET QUALITY
Information as of June 30, 2019
11
PORTFOLIO EVOLUTION (II)
AVERAGE GROSS OCCUPANCY (STABILIZED ASSETS)
+2%91.87%
90.11%
+9.4%
82.39%
2017 | 2018 | Q2 2019 |
QUARTERLY RELETTING SPREAD AND LEASES SIGNED | |||||
35% | (AVERAGE RELETTING SPREAD PER CONTRACT: 17.94%) | 35 | |||
31 | |||||
29 | |||||
30% | 30 | ||||
25% | 21.37% | 25 | |||
20 | |||||
20% | 16.73% | 16.10% | 22 | 17.83% | 20 |
15% | 15 | ||||
10% | 10 | ||||
5% | 5 | ||||
0% | 0 | ||||
Q3 18 | Q4 18 | Q1 19 | Q2 19 | ||
Reletting Spread | Leases Signed |
LEASE PAYMENT DEFAULT
6.10% | ||
-43% | ||
3.50% | ||
-29% | ||
2.47% | ||
2017 | 2018 | Q2 2019 |
% LEASES COVERED BY DEFAULT INSURANCE
28.57%
+53%
18.67%
0.00%
2017 | 2018 | Q2 2019 |
EXCELLENT PERFORMANCE DUE TO ACTIVE MANAGEMENT
Lease Payment Default ratio calculated over Stabilized Assets
Stabilized Assets are those assets that do not require significant Capex investments and are mostly leased at market rents12Leases covered by default insurance is calculated over rented units
PORTFOLIO RENTAL GROWTH
+69%
+6%
Dec. | Units Vacant Dec. | Units Rented Dec. | Rents' Increase | Acquisitions | Jun. |
2018 | 2018 & Rented | 2018 & Vacated Units Rented Dec. 2018 | 2019 | 2019 | |
Jun. | Units Rented | Vacant | Units Under | Reversionary |
2019 | Below ERV | Units | Refurbishment | GRI |
STRONG RENTAL GROWTH WITH SIGNIFICANT UPSIDE POTENTIAL
Annualized GRI is calculated on December 2018 and June 2019 annualized invoiced lease rents | |
Potential Annualized Rent is based on the Company´s estimated ERV (Estimated Rental Value) as of June 30, 2019 | 13 |
GAV is based on Savills Aguirre Newman Valoraciones y Tasaciones S.A.U. external independent appraisal | |
PORTFOLIO YIELD GROWTH
YIELD ON TOTAL INVESTED CAPITALOVER STABILIZED ASSETS
GROSS YIELD | NET YIELD | |||
8.77% | ||||
7.54% | 7.56% |
7.01% | 7.71% |
6.37%6.50%
5.82%
2017 | 2018 | Q2 2019 | Reversionary |
YIELD ON GROSS ASSET VALUEOVER STABILIZED ASSETS
GROSS YIELD | NET YIELD | |
5.14%
4.34% | 4.47% | 4.43% |
4.52%
3.61% | 3.78% | 3.81% |
2017 | 2018 | Q2 2019 | Reversionary |
SOLID YIELD GENERATED BY STABILIZED ASSETS WITH
EXCELLENT GROWTH PERSPECTIVES
Information as of June 30, 2019. Yield calculation based on annualized rents at the end of each period
Reversionary Yield is based on estimated ERV as of June 30, 201914Stabilized Assets are those assets that do not require significant Capex investments and are mostly leased at market rents
4. FINANCIAL INFORMATION
15
H1 2019 PERFORMANCE
- +17% GAV INCREASE VS. DECEMBER 2018
- +3% REVALUATION OF 2018 PORTFOLIO
- €5.5M INVESTED IN H1 2019 ACQUISITIONS
- +28.6% REVALUATION OF ASSETS ACQUIRED IN H1 2019
- 3% NAV INCREASE VS. DECEMBER 2018
- €0.45M SHARE PREMIUM DISTRIBUTION IN H1 2019
- €1.7M NET PROFIT IN H1 2019
GAV | Acquisitions | CAPEX | Revaluation | Revaluation | GAV |
2018 | 2019 | 2019 | 2018 Assets | Acquisitions | Q2 2019 |
NAV | Share Premium | Own Shares | H1 | NAV |
2018 | Paid | Trading | 2019 Profit | Q2 2019 |
OUTSTANDING GAV AND NAV EVOLUTION
16
FINANCIAL POSITION
• €3.4M LOANS OVER 2019 NEW INVESTMENTS
• AVERAGE INTEREST RATE 1.75%
• AVERAGE MATURITY 16.8 YEARS
MODERATE FINANCIAL LEVERAGE WITH LOW RISK INTEREST RATE FLUCTUATIONS
17
CONSOLIDATED BALANCE SHEET
June 30, 2019 December 31, 2018 | ||
ASSETS | ||
Non- Current Assets | 58,795 | 50,205 |
Property, plant and equipment | 3 | 3 |
Investment properties | 58,665 | 50,098 |
Non - Current financial assets | 127 | 104 |
Current Assets | 913 | 5,216 |
Advance to suppliers | 19 | 33 |
Trade and other receivables | 71 | 69 |
Trade debtors | 42 | 38 |
Other receivables from Public Administrations | 29 | 31 |
Other current financial assets | 2 | 3 |
Other receivables group companies and associates | 9 | 9 |
Short term accruals | 29 | 43 |
Cash and cash equivalents | 783 | 5,059 |
Total Assets | 59,708 | 55,421 |
June 30, 2019 December 31, 2018 | ||
EQUITY AND LIABILITIES | ||
Net Equity | 38,399 | 37,145 |
Share capital | 11,949 | 11,949 |
Share Premium | 12,442 | 12,887 |
Treasury shares | -224 | -247 |
Retained earnings | 14,232 | 12,556 |
Non-current Liabilities | 19,630 | 16,470 |
Non-current financial liabilities | 19,630 | 16,470 |
Bank Borrowings | 19,369 | 16,226 |
Other financial liabilities | 261 | 244 |
Current Liabilities | 1,679 | 1,806 |
Current financial liabilities | 640 | 347 |
Bank Borrowings | 640 | 347 |
Trading creditors and other accounts payable | 1,039 | 1,459 |
Trade Payables | 388 | 165 |
Trade payables, group companies and associates | 583 | 1,204 |
Accruals, wages and salaries | 21 | 15 |
Other payables with Tax Administration | 38 | 59 |
Advance to suppliers | 9 | 16 |
Equity and Liabilities | 59,708 | 55,421 |
Consolidated Balance Sheet according to International Financial Reporting Standards as adopted by the European Union (IFRS -EU)
18
CONSOLIDATED PROFIT AND LOSS ACOUNT
June 30, 2019 | June 30, 2018 | |
P&L | ||
Gross Rental income | 902 | 648 |
Property operating expenses | -284 | -238 |
Gross profit | 618 | 410 |
Gain from fair value on investment properties | 2,584 | 1,738 |
Net result from real estate operations | 3,202 | 2,148 |
General and administrative expenses | -1,327 | -879 |
Operating result | 1,875 | 1,269 |
Finance result | -199 | -74 |
Profit for the period | 1,676 | 1,195 |
Corporate income tax | - | - |
Profit for the period attributable to the shareholders | 1,676 | 1,195 |
Basic and diluted earnings per share (Euro) | 0.71 | 0.55 |
- 39% GRI INCREASE VS. JUNE 2018
- INCREASE NET RENTAL INCOME MARGIN FROM 63.3% UP TO 68.5%
- +29% EARNINGS PER SHARE VS. JUNE 2019
Consolidated Profit and Loss Account according to International Financial Reporting Standards as adopted by the European Union (IFRS -EU)
19
5. H1 SUBSEQUENT EVENTS
20
H1 SUBSEQUENT EVENTS
- THE COMPANY HAS SIGNED A DEPOSIT CONTRACT ON A BUILDING LOCATED IN THE CENTRE OF MADRID WITH AN APPROXIMATELY PURCHASE PRICE IN THE EVENT THE ACQUISITION FINALLY BE FORMALIZED OF BETWEEN 6 AND 7 MILLION EUROS
- THE PRESENT PURCHASE AND SALE DEAL IS SUBJECTED TO THE CONDITIONS AGREED IN THE DEPOSIT CONTRACT AND THE CIVIL CODE, IN ALL MATTERS RELATING TO THE RIGHTS OF ITS TENANTS
21
22
Attachments
- Original document
- Permalink
Disclaimer
VBARE Iberian Properties SOCIMI SA published this content on 08 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2019 14:49:05 UTC