Institutional Presentation 1Q FY 2017

Transcription

1 Institutional Presentation 1Q FY 2017

2 IRSA Commercial Properties (IRCP) at a Glance The leading commercial real estate player in Argentina Largest owner and operator of premium malls and office buildings in Argentina Business Description ~414,000 rental sqm in prime locations Land bank to develop ~327,000 sqm of commercial properties ~ 19-year listing track record on MERVAL and ~ 15-year on NASDAQ GLA Breakdown 1 Ownership Structure As of September By sqm As of September 2016 Office Buildings 11% 6 office buildings ~80,000 sqm Land bank 45% Shopping Malls 44% 16 shopping malls ~335,000 sqm Other 94.61% 5.39% Source: Company Information Note: 1. Mercado de Valores de Buenos Aires 2. GLA: Gross Leaseable Area Total: 741,000 sqm IRSA is a leading, diversified, publicly listed company with presence in real estate and other sectors 2

3 Dominant Position in the Local Shopping Malls Sector Strategic locations of assets has delivered leading market share in Argentina s most important markets Positioned in the Most Attractive Segments of the Population with Leading Positions in Each Market Buenos Aires Area Market Share (as % of 2014 GLA) 1 % Argentina GDP 4 GDP per Capita (US$) 4 67% Market Share Buenos Aires City Neuquen 46% , % ,407 Santa Fe 33% ,170 Cordoba 2 18% ,876 Greater Buenos Aires 10% ,781 Mendoza 56% ,173 Mid Income Area High Income Area Salta 66% 1.0 4,604 Lower Income Area Land reserves Total 18% ,455 Source: Company information, INDEC, Argentine Chamber of Shopping Centers, Government of the City of Buenos Aires Note: 1. Considers commercial, cinema, recreation/entertainment and anchor stores GLA. Excludes supermarket and home centers 2. Excludes Patio Olmos shopping mall which IRCP additionally owns in the province of Cordoba under concession 3. As of September GDP Disclosure by province was discontinued by the Argentine Ministry of Economics in Presented figures are estimated based on latest available information as of

4 Shopping Malls: Strong Operating Figures Shopping Malls Annual Tenants Sales (ARS Million) % (+29.6% SSS) 21% FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1Q FY2017 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1Q FY2017 Shopping Malls Occupancy Rate (% ) Shopping Malls Annual Visitors (MM) 99,3% 98,6% 97,5% 97,6% 98,4% 99,1% 98,4% 98,7% 98,4%

5 Unique and Iconic Office Buildings Footprint IRCP owns and operates a unique portfolio of office buildings and presents a strong market position Fragmented market Low tenant concentration Strategic locations in financial district and high-income areas Expanding Corporate North Area AAA Location City of Buenos Aires Back Office Center Business Center Land reserves Source: Company Information, CBRE, LJ Ramos and public filings 5

6 , , A+ Office Market Outlook Buenos Aires City A+ Offices BA City Occupancy (%) 91% 91% 92% 92% 90% 90% 93% 82% A+ Offices BA City Sale Price, Leases & Cap Rates 13,1 10,5 6,3 6,5 6,8 10,2 11,6 12,4 12,7 9,7 9,8 8,3 8,0 4,6 5,3 5, Jul ,2 * Source: LJ Ramos & Colliers Argentina Sale Price (USD/sqm) Rent(USD/sqm) Cap Rate 6

7 Office Buildings: Main figures Offices Leases USD/sqm/mth & Occupancy 96,4% 94,0% 93,1% 98,6% 100,0% 26,0 26,3 26,6 25,9 25,0 3M 16 6M 16 9M16 FY 16 3M17 Offices Stock (sqm) & Market Share* (A+ BA City) 12% 10% 8% 8% 95,002 79,048 77,346 Polo Dot Catalinas 123,345 Sale of 1,702 sqm USD 6.3 MM -14 (Office Portfolio acquisition) IQ17 (USD/sqm 3,700) IIQ17 e Projected FY19 * Source: LJ Ramos 80% potential increase in EBITDA (From USD 19.5 million to ~ USD 34 million) 7

8 Best in class management team with a clear business strategy translates to a unique brand 1 - Differentiated Business Model Acquire Develop Operate Administrate Commercialize 2 Experienced Management Team More than 25 top managers accumulating 340 years of experience in the real estate industry 3 - Strong Relationship with Tenants Long standing relationship with local and international tenants Top of mind shopping mall brand (86% awareness) mm visitors (2.6x Argentine population) 2 Last 3 shopping malls opened with more than 98% occupancy 3 Different awards received for real estate operation and development and architecture design Source: Company Information Note: 1. Corresponds to Top of Mind in CABA trade area accounting for Alto Palermo (36%), Abasto (36%) and DOT (14%) 2. As of FY2016,. Considers every time someone access each of the shopping malls. Counted based on camera system 3. Considers opening of Alto Comahue, Distrito Arcos and Dot initial occupancy weighted by sqm 8

9 Organic Growth Initiatives could significant increase IRCP s Commercial Real Estate Portfolio Attractive Shopping Mall Pipeline as Well as Office Buildings Shopping Malls GLA ( 000 sqm) Office Buildings GLA ( 000 sqm) 2.0x 1.7x Current GLA Under execution & starting in 2017 Potential Growth Current GLA Projects to start in 2017 Potential Growth Existing Shopping Malls New Development Current Malls expansion New developments Current GLA Source: Company Information 9

10 Attractive Development Pipeline Shopping San Martín ~ 35,000 sqm Polo Dot: U Building + Mall Expansion Shopping Tucumán Shopping Tucumán ~ 10,000 sqm Shopping Paraná ~ 5,000 sqm Polo Dot: Two Office Towers Shopping Caballito ~ 68,000 sqm Intercontinental Plaza II ~ 20,000 sqm Office Intercontinental II ~ 22,000 sqm Current malls Expansions 115,000 sqm GLA Source: Company Information 10

11 Capex 2017 (start of construction): Alto Palermo Expansion Alto Palermo Expansion Project Food Court Moving to 3rd level & restyling ~ 4,000 sqm new GLA ~ USD 25 million investment Tenant Sales FY16 USD/sqm/mth 1, Est. Opening Alto Palermo Avge IRCP Portfolio Stabilized EBITDA ~ USD 6 to 8 million FY

12 Capex 2017: Project POLO DOT (1º stage) Master Plan Polo Dot 2 stage Dot Building Dot Baires Mall 1 stage 2017/2018 ~ USD 55 MM 2 stage POLO DOT Full Project 5 years ~ 68,400 sqm of GLA 12

13 Capex 2017 (start of construction): 1 st Stage POLO DOT project Polo Dot Office Building ~ 30,000 sqm GLA ~ USD 55 million investment Est. Opening Stabilized EBITDA: ~ USD 8 10 million 75% of the building already leased FY

14 Capex 2017 (start of construction): Catalinas Office Project Catalinas Office Building ~ 35,000 sqm GLA (16,012 sqm owned by IRSA CP) ~ USD 100 million total investment (45% made by IRSA CP) Leases USD/sqm/mth (Source: L.J Ramos) Catalinas Avge A+ BA Market Est. Opening Stabilized EBITDA ~ USD 6 to 8 million FY

15 IRSA Commercial Properties Other Assets Overview Residential Projects Credit Card Services Tarjeta Shopping IRSA Commercial properties also owns a 20% equity stake in Tarshop S.A. It offers credit card services through Tarjeta Shopping and Tarjeta Shopping Metroshop E-commerce Avenida.com IRSA Commercial properties also owns a 11.4% equity stake in Avenida.com. E-commerce company created in 2013 Fair and Exhibitions Center La Rural IRSA Commercial Properties owns an indirect 35% equity stake in La Rural S.A., whose main asset consists on right of use on the Predio Ferial de Palermo, one of the main centers of fairs and exhibitions in Argentina Residential Real Estate Market Value from barter agreements US$ 30 million TGLT (9.5% equity stake) TGLT is a residential housing developer with operations in Argentina and Uruguay Source: Company Information 15

16 Financial Information

17 Resilient Revenue Model Proven to act as a hedge against inflation and devaluation Shopping Centers Office Buildings Revenue from Leases Revenues from Leases In Advance % Sales Brokerage Fee Avg. 3x monthly base rent % Sales % Sales US$ US$ US$ Admission Rights Avg. 6x monthly base rent Base Rent Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Other Revenues 3-Year average term US$ denominated tenant agreements Non Traditional Advertising Source: Company Information 17

18 Financial Overview Revenues by Segment (ARS million) +35.5% +77.5% EBITDA (*) by Segment ARS million +36.7% +58.4% 1.778, , , ,3 160,1 284,1 148,2 234,7 Shopping Centers Offices Shopping Centers Offices FY15 FY16 FY15 FY16 EBITDA Margin by Segment - % 6,8% EBITDA Breakdown (*) Shoppings* Offices* FY % 82.6% FY % 92.5% var YoY 0.7 pp -9.9pp 10,7% 82,5% Shopping Centers Offices S&D Financial&Others Consolidated EBITDA FY16: USD million EBITDA = Operating Income + D&A, excluding transference of assets taxes 18

19 Financial Overview IQ17 532,8 Revenues by Segment (ARS million) +28.3% +47.2% 683,4 EBITDA (*) by Segment ARS million +22.3% +48.5% 419,6 513,3 62,1 91,4 48,0 71,3 Shopping Centers Offices Shopping Centers Offices IQ16 IQ17 IQ16 IQ17 EBITDA Margin by Segment - % EBITDA Breakdown (*) Shoppings* Offices* 12,5% -2,3% IQ % 78.0% IQ % 77.3% var YoY -3.6 pp 0.7pp 89.8% Shopping Centers Offices S&D EBITDA = Operating Income + D&A, excluding transference of assets taxes 19

20 Consolidated Debt as of September 30, 2016 Description Debt Description (USD million) Issue Currency Outstanding Amount (US$ million) Rate Maturity Current Debt Amortization schedule (USD million) Series II Notes due 2023 (int.) US$ % mar-23 Short-term debt ARS 2.2 Variable < 365 days ON IRCP Class I ARS %/ Badlar+400bps may-17 Other Loans Total IRSA CP s Debt IRSA CP s Net Debt Net Debt/EBITDA LTM 1.3x 360,0 2,3 26,6 0, Dividend Evolution (USD million) New Dividend announced (Nov-16) ARS 460 million ARS/share 0,3650 ARS/ADR 14,60 FY 12 FY 13 FY 14 FY 15 FY 16 Record Date: Nov-16 Payment Date: Nov-17 Dividend Yield: 2.2% Notes 1. Net Debt less cash & equivalents, short-term financial current investments, a loan with a subsidiary of IRSA. 20

21 Strong Cash generation Free Cash Flow - USD Million EBITDA 1 CAPEX 2 Taxes FCF 3 FY12 FY13 FY14 FY15 FY16 Dividend Payment USD Million FY 12 FY 13 FY 14 FY 15 FY 16 (1) EBITDA: Operating Income plus Depreciation and Amortization excluding stamp expenses incurred in the transfer of assets. (2) Includes acquisition of Property, Plant & Equipment and Acquisition of investment properties (3) FCF (Free Cash Flow): EBITDA minus Capex, minus Taxes. 21

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