Contract
Madrid, 14 xx xxxx 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 período de 3 meses finalizado el 31 xx xxxxx de 2019.
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.
D. 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, 14 May 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 3 months period ended on March 31, 2019.
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 3 MONTHS PERIOD ENDED ON MARCH 31, 2019
May 14th, 2019
INDEX
1. KEY FIGURES
2. VBARE AT A GLANCE
3. Q1 2019 PERFORMANCE
4. FINANCIAL INFORMATION
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1. KEY FIGURES
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KEY FIGURES
KEY RESULTS FIGURES | March, 31 2019 | March, 31 2018 | Var % | |
Gross Rental income (GRI) | k € | 461 | 307 | 50% |
Net Rental income | k € | 323 | 189 | 71% |
Net Rental Income Margin % | 70.1% | 61.6% | 14% | |
Profit for the period | k € | 1,128 | 742 | 52% |
Basic and diluted earnings per share | € | 0.48 | 0.35 | 37% |
• €1.1M PROFIT IN Q1 2019 (+52%)
• +50% GROSS RENTAL INCOME INCREASE
KEY FINANCIAL HIGHLIGHTS | March, 31 2019 | December, 31 2018 | Var % | |
Portfolio Gross Value (GAV) | k € | 57,384 | 50,095 | 15% |
EPRA NAV | k € | 37,832 | 37,145 | 2% |
EPRA NAV per Share | € | 16.0 | 15.7 | 2% |
Net Financial Debt | k € | 17,794 | 11,514 | |
LTV Ratio % | 35.10% | 33.50% | ||
Financial cost % | 1.75% | 1.75% | ||
Cash at Xxxxx | k € | 2,077 | 5,059 | |
• +15% GAV INCREASE vs DECEMBER 2018
• +50% ACCUMULATED GAV PORTFOLIO REVALUATION OVER TOTAL INVESTED CAPITAL
• +37% EARNINGS PER SHARE VS. MARCH 2018
KEY OPERATIONAL HIGHLIGHTS | March, 31 2019 | December, 31 2018 | Var % | |
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 € | 1,765 | 1,646 | 7% |
Current Residential Passing Rent | €/sqm/Month | 10.6 | 10.86 | -3% |
Portfolio Annual Reversionary Rent | k € | 2,947 | 2,600 | |
Average Occupancy Rate stabilized assets % | 91.56% | 91.52% | ||
• EPRA NAV PER SHARE 19.1% DISCOUNT VS. SHARE PRICE
Key Financial Figures according to International Financial Reporting Standards as adopted by the European Union (IFRS –EU) 4
GAV is based on Xxxxxxx Xxxxxxx Xxxxxx Valoraciones y Tasaciones S.A.U. external independent appraisal as of March 31st, 2019 and 2018
2. VBARE AT A GLANCE
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PORTFOLIO OVERVIEW
NUMBER OF UNITS: | 301 |
GLA: | 17,717 SQM |
AVERAGE OCCUPANCY RATE IN 2019: | 91.56% |
TOTAL INVESTED CAPITAL: | €38.4M |
INVESTED CAPITAL € PER SQM: | €2,166 |
GAV: | €57.4M |
GAV € PER SQM: | €3,239 |
CURRENT PASSING RENT: | €1,735M |
ANNUAL REVERSIONARY RENT | €2,947X |
XXXXX YIELD ON INVESTED CAPITAL OVER STABILIZED ASSETS : | 7.49% |
Information as of March 31st, 2019.
Gross Yield on invested capital has been calculated over stabilized assets. Average occupancy calculated over stabilized assets.
Stabilized Assets are those assets that do not require significant capex investments and are mostly leased at market rents
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PORTFOLIO OVERVIEW
MAJORITY OF THE PORTFOLIO LOCATED IN ASSETS WITH >50% OWNERSHIP, IN MADRID CITY CENTER AND WITH THE APPROPRIATE SIZE
Information as of March 31st, 2019. 7
KEY METRICS
€120,769
AVERAGE ACQUISITION COST PER XXXX
00 XXX
XXXXXXX XXX XXX XXXX
€595
AVERAGE LEASE RENT
PER UNIT
€10.6
AVERAGE RENT PER SQM
30.1
MONTHS AVERAGE LEASE TERM
27%
VBA TENANTS EFFORT RATE
1.6
TENANTS PER UNIT
Information as of March 31st, 2019. 8
3. Q1 2019 PERFORMANCE
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PORTFOLIO EVOLUTION (I)
+9%
+50%
+11%
+38%
+5%
+35%
+24%
+8%
SIGNIFICANT PORTFOLIO GROWTH WITH IMPROVED ASSET QUALITY
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PORTFOLIO EVOLUTION (II)
0,1%
+10,4%
-43%
-19%
+23,6%
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 rents 11
Leases covered by default insurance is calculated over rented units
PORTFOLIO RENTAL GROWTH
DECEMBER 2018 RENTS INCREASE
ACQUISITIONS
2019
MARCH 2019
+7%
MARCH 2019 BELOW MARKET
RENTED UNITS
VACANT
UNITS
UNITS UNDER
REFURBISHMENT
REVERSIONARY
GRI
STRONG RENTAL GROWTH WITH SIGNIFICANT UPSIDE POTENTIAL
Annualized GRI is calculated on December 2018 and March 2019 annualized invoiced lease rents
Potential annualized rent is based on the Company´s estimated ERV as of March 31st, 2019 12
GAV is based on Xxxxxxx Xxxxxxx Xxxxxx Valoraciones y Tasaciones S.A.U. external independent appraisal
PORTFOLIO YIELD GROWTH
SOLID YIELD GENERATED BY STABILIZED ASSETS WITH EXCELLENT GROWTH PERSPECTIVES
Information as of March 31, 2019. Yield calculation based on annualized rents at the end of each period
Reversionary Yield is based on estimated ERV as of March 31st, 2019 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 ASSETS
DECEMBER ACQUIRED IN 2018 2019
CAPEX REVALUATION REVALUATION 2019 OF 2018 ASSETS ASSETS ACQUIRED
IN 2019
GAV
MARCH 2019
Q1 2019 PERFORMANCE
• +15% GAV INCREASE VS. DECEMBER 2018
• +1% REVALUATION OF 2018 PORTFOLIO
• €5.5M INVESTED IN Q1 2019 ACQUISITIONS
• +24% REVALUATION OF ASSETS ACQUIRED IN Q1 2019
• 2% NAV INCREASE VS. DECEMBER 2018
NAV SHARE PREMIUM DECEMBER PAID
2018
OWN
SHARES TRADING
Q1 2019 PROFIT
NAV MARCH 2019
• 19% SHARE PRICE DISCOUNT vs EPRA NAV per Share
• €0.45M SHARE PREMIUM DISTRIBUTION IN Q1 2019
• €1.1M NET PROFIT IN Q1 2019
• 7% GRI INCREASE VS. DECEMBER 2018
• INCREASE NET RENTAL INCOME MARGIN FROM 61.6% UP TO 70.1%
OUTSTANDING GAV AND NAV EVOLUTION
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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
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CONSOLIDATED BALANCE SHEET
March, 31 2019 | December, 31 2018 | |
ASSETS | ||
Non- Current Assets | 57,514 | 50,205 |
Property, plant and equipment | 3 | 3 |
Investment properties | 57,384 | 50,098 |
Non - Current financial assets | 127 | 104 |
Current Assets | 2,211 | 5,216 |
Advance to suppliers | 11 | 33 |
March, 31 2019 | December, 31 2018 | |
EQUITY AND LIABILITIES | ||
Net Equity | 37,832 | 37,145 |
Share capital | 11,949 | 11,949 |
Share Premium | 12,442 | 12,887 |
Treasury shares | -243 | -247 |
Retained earnings | 13,684 | 12,556 |
Non-current Liabilities | 19,735 | 16,470 |
Non-current financial liabilities | 19,735 | 16,470 |
Trade and other receivables | 75 | 69 | Bank Borrowings | 19,481 | 16,226 |
Trade debtors | 43 | 38 | Other financial liabilities | 254 | 244 |
Other receivables from Public Administrations 32 31
Other current financial assets | 2 | 3 |
Other receivables group companies and associates | 9 | 9 |
Short term accruals | 37 | 43 |
Cash and cash equivalents | 2,077 | 5,059 |
Total Assets | 59,725 | 55,421 |
Consolidated Balance Sheet according to International Financial Reporting Standards as adopted by the European Union (IFRS –EU)
Current Liabilities | 2,158 | 1,806 |
Current financial liabilities | 390 | 347 |
Bank Borrowings | 390 | 347 |
Other financial liabilities | - | - |
Trading creditors and other accounts payable 1,768 1,459
Trade Payables | 224 | 165 |
Trade payables, group companies and associates | 1,453 | 1,204 |
Accruals, wages and salaries | 26 | 15 |
Other payables with Tax Administration | 55 | 59 |
Advance to suppliers | 10 | 16 |
Equity and Liabilities | 59,725 | 55,421 |
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CONSOLIDATED PROFIT AND LOSS ACCOUNT
March, 31 2019 March, 31 2018
P&L
Gross Rental income | 461 | 307 |
Property operating expenses | -138 | -118 |
Gross profit | 323 | 189 |
Gain from fair value on investment properties | 1,615 | 1,071 |
Net result from real estate operations | 1,938 | 1,260 |
General and administrative expenses | -723 | -484 |
Operating result | 1,215 | 776 |
Finance result | -87 | -34 |
Profit for the period | 1,128 | 742 |
Corporate income tax | - | - |
Profit for the period attributable to the shareholders | 1,128 | 742 |
Basic and diluted earnings per share (Euro) | 0.48 | 0.35 |
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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