Contract
Barcelona, 24 xx xxxx de 2019
En virtud de lo previsto en el artículo 17 del Reglamento (UE) nº 596/2014 sobre abuso xx xxxxxxx y en el artículo 228 del texto refundido de la Xxx xxx Xxxxxxx de Valores, aprobado por el Real Decreto Legislativo 4/2015, de 23 de octubre, y disposiciones concordantes, así como en la Circular 6/2018 xxx Xxxxxxx Alternativo Bursátil (MAB), Barcino Property SOCIMI, S.A. (en adelante, la “Sociedad” o “Barcino”) pone en conocimiento la siguiente información:
Con fecha 23 xx xxxxx de 2019, a las 11h00, se celebró en Barcelona, avenida Catedral, 6, la Junta General Ordinaria y Extraordinaria de Accionistas de la Sociedad, en primera convocatoria, con la concurrencia personal o por representación de accionistas titulares de 16.361.204 acciones, repre- sentativas del 77,51% del capital social (incluida la autocartera).
En dicha sesión, se sometieron a deliberación de los asistentes todos los puntos del orden del día de la convocatoria publicada, entre otros, mediante hecho relevante de fecha 18 xx xxxxx de 2019 y se adoptaron por unanimidad de los asistentes con derecho a voto (con exclusión de la autocartera), representativos del 77,27% del capital social presente con derecho a voto, los siguientes acuerdos:
✓ Examen y aprobación de las Cuentas Anuales (Balance de situación, Cuenta de Pérdidas y Ganancias y Memoria, Estado de Cambios en el Patrimonio Neto y Estado de Flujos de Efectivo) de la Sociedad y de la gestión social referida al ejercicio 2018.
✓ Examen y aprobación de la propuesta de aplicación del resultado negativo de -1.632.573 euros a resultados negativos de ejercicios anteriores.
✓ Retribución de los Administradores para el ejercicio 2019 por un importe total de 26.000 euros.
Adicionalmente, Xxxxxxx publica la Presentación de Resultados del ejercicio anual terminado el 31 de diciembre de 2018 utilizada en la Junta General Ordinaria y Extraordinaria de Accionistas cele- xxxxx xxxx, jueves 23 xx xxxx de 2019.
La documentación anterior también se encuentra disponible en la página web de la Sociedad (xxx.xxxxxxxxxxxxxxx.xxx)
Quedamos a su disposición para cuantas aclaraciones precisen.
BARCINO PROPERTY SOCIMI, S.A.
ANEXO I
Presentación
May 2019
Barcino Property SOCIMI, S.A. 2018 YEAR END RESULTS
Confidential
▪ This presentation has been prepared by Barcino Property SOCIMI, S.A. (“Barcino”). This presentation does not constitute and should not be construed as an offer, inducement, invitation to sell or issue, or the solicitation, inducement or invitation of an offer to buy, subscribe or acquire securities of Barcino. This Presentation is solely for informational purposes and should not be treated as investment advice or as any recommendation to take any decision. In addition, this Presentation does not take into account the specific investment objectives, financial situation or particular needs of any recipient in any jurisdiction nor does it contain all the information necessary to fully evaluate any investment or transaction.
▪ Accordingly, no part of this Presentation nor the fact of its distribution or communication should form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract, commitment or investment decision whatsoever in relation to any securities or otherwise. This presentation was not prepared for the purpose of being used in connection with any offering of securities. This Presentation has not been independently verified and Barcino does not make any representation, warranty or undertaking, express or implied, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information, opinions or projections contained in the Presentation. Barcino and its current shareholders, advisers, officers, employees or agents shall have no liability whatsoever for any direct or consequential loss, damages, costs or prejudices whatsoever arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation.
▪ Some of the information contained in the presentation including, among other things, forecasts, goals, strategies, assessments and estimates related to events factors, changing economic, business or other market conditions or prospect of growth anticipated by Xxxxxxx which are other than statements of historical facts and which realization is uncertain and is beyond the control of Barcino (the "Forward Looking Statements"). Forward Looking Statements can be identified from the context they are made. By their nature, Forward Looking Statements involve known and unknown risks, uncertainties, assumptions, estimates and other factors which do not constitute a proven fact, is based solely on Xxxxxxx’x subjective estimates and is not intended to give any assurances as to future results. There can be no assurance that Forward Looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward Looking Statements due to the inherent uncertainty therein. Whether or not the information will materialize and will be affected, amongst other things, by risk factors inherent in the Public Investment Vehicle’s operations, as well as developments in the general environs and external factors that affect the Public Investment Vehicle's operation, which cannot be estimated in advance and that are not within the control of Barcino.
▪ Market and competitive position data in the Presentation has generally been obtained from industry publications and studies conducted by third parties. Certain statements in the presentation regarding the market and competitive position data are based on the internal analyses of Barcino, which involve certain assumptions and estimates. These internal analyses have not been verified by any independent sources and there can be no assurance that the assumptions or estimates are accurate. Accordingly undue reliance should not be placed on any of the industry, market or competitive position data contained in the Presentation.
▪ This Presentation and the information contained in the Presentation are provided as of the date of this Presentation and are subject to change, and Barcino is not under any obligation to update, complete, revise, verify, amend or keep current the information contained herein, whether as a result of new information, future events or results or otherwise. The information contained in the Presentation must not be relied upon for any purpose. Furthermore, anyone who is interested in making an investment, should inform itself independently and conduct its own investigation and analysis of the information contained in this Presentation, consult with legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that he deems necessary, and should make his own investment decisions based upon his own judgment and advice from such advisers as he deems necessary and not upon any view expressed by Barcino or expressed in this Presentation.
▪ This Presentation shall be governed and construed in accordance with the laws of Spain without regard to its conflict of law provisions and the receiver of this Presentation hereby irrevocably consents to the exclusive jurisdiction of, and venue in, the competent jurisdiction located in Barcelona, Spain.
2 Confidential
Disclaimer
1. Market developments 4
2. Portfolio review 7
3. Financial performance 13
4. Appendices 17
3 Confidential
Summary
1. Market Developments
Confidential
GDP Growth Unemployment rate
2,6%
2,4%
2,0%
2,1%
2,0%
1,4%
1,6%
1,3%
1,4%
0,9%
0,5%
0,1%
15,3%
13,4%
13,9%
11,3%
10,2%
17,2%
Catalonia Spain European
Union
France Germany Italy
2017 2018 2019 Expected
2018 2019 Expected Catalonia Spain
Source: European Commission (DG ECFIN) Source: Funcas
5 Confidential
⮚ Spanish economy growing above EU average
⮚ Catalan 2018 GDP growth +2.4% vs +1.7% expected (Funcas)
⮚ Catalan GDP grows +2.3% yoy in Q1 2019 (Airef)
Macroeconomic strength supporting prices
Property prices (€/sqm) Monthly rental prices (€/sqm)
4500 18
4000 16
3500 14
3000 12
2500 10
2000 8
1500 6
1000 4
500 2
0 0
Barcelona Madrid Barcelona Madrid
Source: Idealista Source: Idealista
6 Confidential
⮚ Having led the recovery, rents in Barcelona have stabilised as affordability has become an increasingly important factor
⮚ Despite the impact of recent events the city is showing its resilience and faces structural positive trends
Barcelona’s residential market has stabilised
2. Portfolio Review
Confidential
Key facts
▪ Number of buildings: 14
▪ Gross Floor Area: 16,154sqm
▪ Average area/building: 1,154sqm
▪ Total acquisition price (1): €33.6m
▪ GAV (Dec 2018) (2): €55.9m
Portfolio evolution (# buildings)
5
2
9 14
0000 0000 0000 0000
Rental status
29%
54%
15%
Refurbishment and mortgage status
▪ 7 buildings with refurbishment works pending
▪ 5 buildings remortgaged post-refurbishment
2%
▪ 1 unmortgaged building
Rented Life Lease Available
To be refurb.
(1) Purchase price & cost + refurbishment costs (2) GAV = RICS valuation + Cash, 31/12/2018
8 Confidential
⮚ 14 buildings in prime locations
⮚ Piecemeal approach to refurbishment focusing on vacant or vacated units
⮚ Working on further financings
Portfolio overview
BARCELONA CITY CENTRE
4
458
2
9
5
13
11
10
12
1 14
7
3
8
6
Assets |
1 Xxxxxxxxxx 00 |
0 Xxxxxx Xxxxx 35 |
3 Montjuïc 68 |
4 Xxxxx 00 |
0 Xxxxxxxxx 107 |
6 Xxxxx Xxxxx 00 |
0 Xxxxx Xxxxxxxx 40 |
8 Xxxx Xxxxxxx 0 |
0 Xxxxxx 92 |
10 Xxxxxxx 18 |
11 Pedreres 11 |
12 Lluna 3 |
13 Xxxxxxx Xxxxx 57 |
14 Hospital 105 14 |
9
⮚ Focus on residential buildings with a surface between 700 and 1,500sqm
Portfolio location
Asset
Date
Area (sqm)
Acquisition
Price k€ (1)
Acq. Price Latest Value yoy growth Capital
€/sqm RICS k€ (2) RICS value Appreciation (5)
LTV (2)
(%)
Gross ‘18
Yield (%) (6)
Gross ‘17
Yield (%) (6)
1
76%
111%
19.82% | 18.56% |
7.79% | 3.73% |
5.13% | 4.47% |
8.45% | 4.11% |
4.91% | 4.71% |
N/A | N/A |
N/A | N/A |
N/A | N/A |
Vistalegre
Feb 15
494
k€ 643
€ 1,301
k€ 1,130
9.7%
24%
8.62%
6.87%
2
Buenos Aires May 15
913
k€ 1,597
€ 1,749
k€ 3,370
8.7%
33%
3 | Montjuïc | Mar 16 | 1,091 | k€ 2,227 | €2,041 | k€ 4,200 | 0.5% | 89% | 40% |
4 | Berga | Mar 16 | 1,220 | k€ 2,604 | € 2,135 | k€ 4,500 | 3.4% | 73% | 36% |
5 | Xxxxxxxxx | Jun 16 | 901 | k€ 2,436 | € 2,703 | k€ 4,530 | 3.0% | 86% | 40% |
6 | Xxxxx Xxxxx (3) | Dec 16 | 3,364 | k€ 4,815 | € 1,432 | k€ 6,210 | 13.2% | 29% | 34% |
7 | Poeta Cabanyes (7D) ec 16 | 1,348 | k€ 3,115 | € 2,311 | k€ 4,290 | 60.1% | 38% | 27% |
8 | Sant Xxxxxxx (4) (7) Sep 17 | 958 | k€ 2,402 | € 2,507 | k€ 4,600 | - | 92% | 24% |
9 | Girona (7) | Dec 17 | 720 | k€ 1,798 | € 2,497 | k€ 3,870 | - | 115% | 21% |
(1) Acquisition costs + refurbishment costs, 31/12/18 (2) Valuation RICS: 31/12/18 (3) Currently office asset w/potential for conversion to residential use
(4) Undergoing deep and integral refurb. to increase capital appreciation (5) Based on last RICS valuation vs [Purchase price and costs + refurb.]
(6) Yields = rent collected / [Purchase price and costs + refurb. costs] (7) Under deep refurbishment to increase yields when re-rented
10 Confidential
⮚ Prime locations in Barcelona ensures strong letting performance
⮚ Barcino asset values significantly below recent transactions
⮚ +55% capital appreciation since inception
Asset valuation (1/2)
Asset
Date
Area (sqm)
Acquisition Purchase Latest Valuation
Price k€ (1) Price €/sqm RICS k€ (2)
Capital
Appreciation (5)
LTV (2) (%)
Gross Yield
(%)
45%
12%
10
Xxxxxxx (7)
May 18
1,195
k€ 2,315
€ 1,937
k€ 3,350
32%
N/A
11
Pedreres (7) Sep 18
790
k€ 2,015
€ 2,551
k€ 2,250
-- N/A
12 | Lluna (7) | Sep 18 | 895 | k€ 2,154 | € 2,407 | k€ 3,200 | 49% | 31% | N/A |
13 | Xxxxxxx Xxxxx (7) | Oct 18 | 1,270 | k€ 2,976 | € 2,343 | k€ 3,720 | 25% | 38% | N/A |
14 | Hospital (7) | Dec 18 | 995 | k€ 2,496 | € 2,509 | k€ 2,780 | 11% | 41% | N/A |
€ 2,080
k€ 52,000
Total Barcino
16,154
k€ 33,593
+ 55%
11 Confidential
Asset valuation (2/2)
Operational achievements Financial achievements
▪ 5 buildings acquired
▪ 1 building fully refurbished
▪ 8 individual units refurbished
▪ 2 new employees (Works supervision & maintenance)
▪ € 9.8m Capital increase
▪ 5 new mortgages
▪ 4 buildings remortgaged
12
⮚ 2018 has been a transformative year from both an operational and a financial perspective
Achievements during 2018
3. Financial Performance
Confidential
Balance Sheet – k€ | 31/12/2018 |
GAV (RICS + Cash ) | 55,974 |
Gross Financial Debt | 14,065 |
Gross LTV | 25% |
Weighted average cost of debt | 1.83% |
Average debt maturity (years) | 12.9 |
Cash and short term financial investments | 3,974 |
Results analysis – k€ | 31/12/2018 |
Gross Rental Income | 1,261 |
Property Operating Expenses | (475) |
Gross Profit | 786 |
Latent capital gain on investment properties | 6,349 |
Net Result from Real Estate Operations | 7,135 |
G&A Expenses | (1,726) |
Financial charges and depreciation | (692) |
EBT | 4,717 |
Basic Earning per Share (€) | 0.22 |
▪ Market capitalisation: € 33.8m
▪ Price per share: €1.60
▪ NAV pre performance fee: € 41.91m
▪ NAV post performance fee: € 39.64m
▪ NAV per share post performance fee: € 1.88
14 Confidential
⮚ Shares trade at 15% discount to NAV (1.60 vs 1.33 at end 2017)
⮚ Conservative financial structure
⮚ Substantial capital gain on investment properties
Key financial figures (1/3)
Balance Sheet – Barcino Property
Assets - € | 2017 | 2018 | Liabilities - € | 2017 | 2018 | |
Current assets | 2,306,777 | 4,273,990 | Equity | 12,861,027 | 21,079,279 | |
Accounts receivables | 200,052 | 261,159 | Capital | 14,377,358 | 21,109,105 | |
Short-term financial investments | 553,100 | 303,117 | Share premium | 1,587,637 | 4,616,923 | |
Reserves | 6,453 | |||||
Prepayment for current assets | 5,687 | 21,045 | Own Shares and Equity Instruments | (150,001) | (66,662) | |
Cash on-hand | 1,547,938 | 3,688,669 | Retained losses | (100,081) | (2,953,967) | |
Non-current assets / Buildings | 19,861,958 | 33,037,396 | Loss for the year | (2,853,887) | (1,632,573) | |
Current liabilities | 2,827,246 | 2,551,747 | ||||
Long-term Financial Debt | 6,480,462 | 13,680,360 | ||||
Total Assets | 22,168,735 | 37,311,386 | Total liabilities | 22,168,735 | 37,311,386 |
2017 and 2018 audited figures
15 Confidential
⮚ A high quality collateral underpinned with a solid financial structure
⮚ Conservative leverage
Key financial figures (2/3)
Results analysis – €k | 2017 | 2018 | Var. |
Rental Income | 895 | 1,261 | + 40.86% |
Operating Expenses | (524) | (727) | |
Including Property taxes | (57) | (59) | |
Legal Costs | (83) | (172) | |
Consultant Costs | (115) | (27) | |
Personnel | (60) | (91) | |
Letting Fees (API) | (82) | (112) | |
Other Costs (insurance, utilities, maintenance, etc.) | (127) | (266) | |
Adjusted NOI | 372 | 534 | + 43.77% |
Total exceptional expenses | (2,891) | (1,474) | |
Including Property Management | (2,966) | (1,301) | |
Settlements and pay-offs | 477 | (94) | |
Set up costs | (402) | (79) | |
Net operating Income | (2,519) | (940) | - 62.68% |
Total interest and depreciation | (335) | (692) | |
Including Interest Loan | (103) | (209) | |
Bank charges | (9) | (98) | |
Depreciation | (223) | (385) | |
Profit before taxes | (2,854) | (1,632) | - 42.79% |
Operating Expenses / Rental Income (%) | 59% | 58% | |
Adjusted NOI / Rental Income (%) | 42% | 42% | 2017 and 2018 audited figures |
16 Confidential
Key financial figures (3/3)
4. Appendices
Confidential
NUMBER OF BUILDINGS
14
WHO ARE WE?
▪ Founded Xxx 2015
171
NUMBER OF UNITS
▪ Specialised in residential property:
▪ For rent
▪ Whole buildings to be refurbished
16,154
SURFACE (m2)
▪ Within the Área Metropolitana de Barcelona
▪ Buy and hold
€55.9m
▪ Maximum leverage (60% LTV)
GAV
▪ Financed by over 30 investors
▪ Managed by Vistalegre Property Management
€33.8m
MARKET CAP
▪ Listed on MAB since Decembre 2017
18
⮚ Acquisition and refurbishing of residential property to rent
Barcino overview
▪ Refinance post-refurb
▪ Recycle equity for new acquisitions
Sourcing
▪ Invest in ‘off-market’ opportunities below post-refurb market price
Refinance
Refurbs
▪ Diversified rental portfolio
▪ Active tenant management
▪ Quality professional service
Rental management
▪ Refurbished cost effectively by trusted contruction partners
▪ Active management by internal team
19
⮚ Value created via 4 main levers
⮚ Targeting gross yield in the mid to high single digits
Business model