Contract
Madrid, 5 xx xxxxx 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 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), 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 ejercicio finalizado el 31 de diciembre de 2018.
La documentación anterior también se encuentra a disposición xxx xxxxxxx en la página web de la Sociedad (xxx.xxxxxxxxxxxxx.xxx).
Quedamos a su disposición para cualquier aclaración que pueda ser necesaria.
X. Xxxxx Xxxxxxx del Campo Xxxxxxxxx
Secretario No Consejero del Consejo de Administración VBARE Iberian Properties SOCIMI, S.A.
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THIS RELEVANT FACT IS A TRANSLATION OF THE SPANISH VERSION. IN CASE OF ANY DISCREPANCIES, THE SPANISH VERSION SHALL PREVAIL.
Madrid, 5 February 2019
Pursuant to the terms set forth in Article 17 of EU Regulation No. 596/2014 with regard to abuse of markets and Article 228 of the Consolidated Text of the Stock Exchange Law, approved by Royal Legislative Decree 4/2015 dated October 23 and other related provisions, as well as Notice 6/2018 of the Mercado Alternativo Bursátil ("MAB"), VBARE Iberian Properties SOCIMI, S.A. (the "Company" or “VBARE”) hereby publishes the following:
RELEVANT FACT
By means of the present relevant fact, it is attached the Results Presentation for the year ended on December 31, 2018.
The documentation is also available to the market on the Company´s website (xxx.xxxxxxxxxxxxx.xxx).
We remain at your disposal for any clarification that may be necessary.
Mr. Xxxxx Xxxxxxx del Campo Xxxxxxxxx
Non-Board Secretary of the Board of Directors VBARE Iberian Properties SOCIMI, S.A.
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RESULTS PRESENTATION FOR THE YEAR ENDED ON DECEMBER 31, 2018
March 5th, 2019
INDEX
1. KEY FIGURES
2. VBARE AT A GLANCE
3. 2018 PERFORMANCE
4. FINANCIAL INFORMATION
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1. KEY FIGURES
3
KEY FIGURES
• €4.8M PROFIT IN 2018
• +33% GROSS RENTAL INCOME INCREASE
• +76% GAV INCREASE YOY
• +53% ACCUMULATED GAV PROTFOLIO REVALUATION OVER TOTAL INVESTED CAPITAL
• +68% EARNINGS PER SHARE VS. 2017
• EPRA NAV PER SHARE 17% DISCOUNT VS. SHARE PRICE
KEY RESULTS FIGURES | December, 31st 2018 | December, 31st 2017 | Var. % | |
Gross Rental Income (GRI) | k € | 1,427 | 1,076 | 33% |
Net Rental Income | k € | 923 | 568 | 63% |
Net Rental Income Margin % | 65% | 53% | 23% | |
Gross Profit | k € | 870 | 543 | 60% |
Gross Profit Margin % | 61% | 50% | 21% | |
Profit for the Period | k € | 4,801 | 2,251 | 113% |
Basic and diluted Earnings per Share | € | 2.10 | 1.25 | 68% |
KEY FINANCIAL HIGHLIGHTS
Portfolio Gross Value (GAV) k € | 50,098 | 28,542 | 76% |
EPRA NAV k € | 37,144 | 29,973 | 24% |
EPRA NAV per Share € | 15.7 | 14.1 | 11% |
Net Financial Debt k € | 11,514 | (2,051) | - |
LTV Ratio % | 33.5% | 22.5% | - |
Financial Cost % | 1.75% | 1.63% | - |
Cash at Xxxxx k € | 5,059 | 8,374 | - |
Number Units units | 272 | 197 | 38% |
Total GLA sqm | 16,200 | 10,795 | 50% |
Residencial GLA sqm | 15,139 | 10,471 | 45% |
Annualized Portfolio Current Passing Rent k € | 1,646 | 1,219 | 35% |
Current Residential Passing Rent €/sqm/Mon | 10.86 | 10.81 | 0.5% |
Portfolio Annual Reversionary Rent k € | 2,600 | 1,552 | 67.5% |
Average Occupancy Rate % | 90% | 83% | 8.4% |
KEY OPERATIONAL HIGHLIGHTS
Key Financial Figures according to International Financial Reporting Standards as adopted by the European Union (IFRS –EU) 4
2. VBARE AT A GLANCE
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PORTFOLIO OVERVIEW
NUMBER OF UNITS: | 272 |
GLA: | 16,200 SQM |
AVARAGE OCCUPANCY RATE IN 2018: | 90% |
TOTAL INVESTED CAPITAL: | €32.7M |
INVESTED CAPITAL € PER SQM: | €2,019 |
GAV: | €50.1M |
GAV € PER SQM: | €3,092 |
PASSING RENT: | €1.65X |
XXXXX YIELD ON INVESTED CAPITAL: | 7.54% |
EPRA NIY: | 3.76% |
EPRA LIKE FOR LIKE RENTAL GROWTH: | 9.39% |
Information as of December 31st, 2018. It does not included assets acquired in 2019 6
PORTFOLIO OVERVIEW
MAJORITY OF THE PORTFOLIO LOCATED IN ASSETS WITH >50% OWNERSHIP, IN MADRID CITY CENTER AND WITH THE APPROPRIATE SIZE
Information as of December 31st, 2018. It does not included assets acquired in 2019 7
KEY METRICS
€113,407
AVERAGE ACQUISITION COST PER XXXX
00 XXX XXXXXXX XXX XXX XXXX
€610
AVERAGE LEASE RENT
PER UNIT
€10.9
AVERAGE RENT PER SQM
26.6 MONTHS AVERAGE
LEASE TERM
29%
VBA TENANTS EFFORT RATE
1.6
TENANTS PER UNIT
Information as of December 31st, 2018. It does not included assets acquired in 2019 8
3. 2018 PERFORMANCE
9
(2018)
(2018)
PORTFOLIO EVOLUTION (I)
+50%
+38%
+35%
+24%
SIGNIFICANT PORTFOLIO GROWTH WITH IMPROVED ASSET QUALITY
10
(2018)
PORTFOLIO EVOLUTION (II)
+8,6%
-43%
EXCELLENT PERFORMANCE DUE TO ACTIVE MANAGEMENT
Lease Payment Default ratio calculated over Stabilized Assets 11
PORTFOLIO RENTAL GROWTH
+35%
BELOW MARKET DECEMBER 2018 RENTED UNITS
VACANT UNITS REFURBISHMENT REVERSIONARY GRI
UNITS UNDER
STRONG RENTAL GROWTH WITH SIGNIFICANT UPSIDE POTENTIAL
Annualized GRI is calculated on December 2017 and 2018 annualized invoiced lease rents 12
Potential annualized rent is based on estimated ERV as of December 31st, 2018
PORTFOLIO YIELD GROWTH
SOLID YIELD GENERATED BY STABILIZED ASSETS WITH EXCELLENT GROWTH PERSPECTIVES
Information as of December 31, 2018. It does not included assets acquired in 2019. Yield calculation based on annualized rents at year-end
Reversionary Yield is based on estimated ERV as of December 31st, 2018 13
Stabilized Assets are those assets that do not require significant capex investments and are mostly leased at market rents
4. FINANCIAL INFORMATION
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GAV DECEMBER
2017
ASSETS
ACQUIRED IN 2018
REVALUATION OF REVALUATION OF
CAPEX 2018
2017 ASSETS
ASSETS ACQUIRED
IN 2018
GAV
DECEMBER 2018
2018 PERFORMANCE
• +76% GAV INCREASE VS. 2017
• +5.8% REVALUATION OF 2017 PORTFOLIO
• €14M INVESTED IN 2018 ACQUISITION
• +33% REVALUATION OF ASSETS ACQUIRED IN 2018
• 24% NAV INCREASE VS. 2017
NAV 2017
CAPITAL
INCREASE
SHARE PREMIUM
PAID
2018 PROFIT
NAV 2018
• 17% SHARE PRICE DISCOUNT vs NAV per Share
• €3.2M SHARE CAPITAL INCREASE
+24%
• €0.8M SHARE PREMIUM DISTRIBUTION
• €4.8M NET PROFIT IN 2018
• 33% GRI INCREASE VS. 2017
• INCREASE NET RENTAL INCOME MARGIN FROM 53% UP TO 65%
OUTSTANDING GAV AND NAV EVOLUTION
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FINANCIAL POSITION
• €3.2M LOANS OVER 2017 EXISTING PORTFOLIO
• €7.4M LOANS OVER 2018 NEW INVESTMENTS
• AVERAGE INTEREST RATE 1.75%
• AVERAGE MATURITY 16.8 YEARS
MODERATE FINANCIAL LEVERAGE WITH LOW RISK INTEREST RATE FLUCTUATIONS
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CONSOLIDATED BALANCE SHEET
December, 31st 2018 | December, 31st 2017 | December, 31st 2018 | December, 31st 2017 | |||
ASSETS | EQUITY AND LIABILITIES | |||||
Non-Current Assets | 50,205 | 28,620 | Net Equity | 37,145 | 29,973 | |
Property, Plant and Equipment | 3 | 4 | Share Capital | 11,949 | 10,746 | |
Investment Properties | 50,098 | 28,542 | Share Premium | 12,887 | 11,720 | |
Non-Current Financial Assets | 104 | 74 | Treasury Shares | (247) | (248) | |
Current Assets | 5,216 | 8,494 | Retained Earnings | 12,556 | 7,755 | |
Advance to Suppliers | 33 | - | Non-current Liabilities | 16,470 | 6,227 | |
Trade and other Receivables | 69 | 53 | Non-current Financial Liabilities | 16,470 | 6,227 | |
Trade Debtors | 38 | 21 | Bank Borrowings | 16,226 | 6,100 | |
Other Receivables from Public Administrations | 31 | 32 | Other Financial Liabilities | 244 | 127 | |
Other Current Financial Assets | 3 | 18 | Current Liabilities | 1,806 | 914 | |
Other Receivables group companies and associates | 9 | 9 | Current Financial Liabilities | 347 | 238 | |
Short term Accruals | 43 | 40 | Bank Borrowings | 347 | 223 | |
Cash and Cash Equivalents | 5,059 | 8,374 | Other financial liabilities | - | 15 | |
Total Assets | 55,421 | 37,114 | Current financial liabilities group companies | - | 3 | |
Trading creditors and other accounts payable | 1,459 | 673 | ||||
Trade Payables | 165 | 65 | ||||
Trade payables, group companies and associates | 1,204 | 577 | ||||
Accruals, wages and salaries | 15 | 1 | ||||
Other payables with Tax Administration | 59 | 18 | ||||
Equity and Liabilities | 55,421 | 37,114 |
Consolidated Balance Sheet according to International Financial Reporting Standards as adopted by the European Union (IFRS –EU) 17
CONSOLIDATED PROFIT AND LOSS ACCOUNT
December, P&L | 31st 2018 | December, 31st 2017 |
Gross Rental Income | 1,427 | 1,076 |
Property operating expenses | (557) | (533) |
Gross profit | 870 | 543 |
Gain from fair value on investment properties | 6,563 | 3,266 |
Net result from real estate operations | 7,433 | 3,809 |
General and Administrative Expenses | (2,439) | (1,447) |
Operating Result | 4,994 | 2,362 |
Finance Result | (193) | (111) |
Profit for the Period | 4,801 | 2,251 |
Corporate Income Tax | - | - |
Profit for the Period attributable to the Shareholders | 4,801 | 2,251 |
Basic and diluted Earnings per Share (Euro) | 2.10 | 1.25 |
Consolidated Profit and Loss Account according to International Financial Reporting Standards as adopted by the European Union (IFRS –EU) 18
EVENTS OCCURRED IN 2019
XXXXXXXXXXXX 00 XXXXXX
• ACQUISITION OF 100% OF A WELL-LOCATED ASSET IN CHAMBERÍ, A NEIGHBORHOOD IN THE CITY CENTER OF MADRID
• 27 RESIDENTIAL UNITS AND 2 RETAIL PREMISES (1,516 SQM TOTAL AREA)
• €5.3M PURCHASE PRICE PLUS TRANSACTION COSTS
• €3.43M MORTGAGE AT FIX INTEREST RATE OF 1.8% DURING 12 YEARS AND A VARIABLE EURIBOR 12 MONTHS
+ 1.8% DURING THE FOLLOWING 8 YEARS
• MONTHLY LOAN AMORTIZATION WITH A PROGRESSIVE BIANNUAL INCREASE AND PARTIAL AMORTIZATION OF 23.3% OF THE PRINCIPAL IN YEAR 15
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DISCLAIMER
This presentation has been prepared by VBARE 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 informational purposes and should not be treated as investment advice. 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 should form the basis of, or be relied upon in connection with, any contract, commitment or investment decision 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. VBARE 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. VBARE shall have no liability whatsoever for any loss 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, assessments and estimates related to events and or future matters, realization is uncertain and is beyond the control of VBARE (the "Forward Looking Information"). Forward Looking Information as stated above does not constitute a proven fact and is based solely on VBARE’s subjective estimates. 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 VBARE. This Presentation and the information contained in the Presentation are provided as of the date of this Presentation and are subject to change, and VBARE is not under any obligation to update, complete, revise, verify, amend or keep current the information contained herein. Furthermore, anyone who is interested in making an investment, should 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 VBARE 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 Madrid, Spain.
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