Institutional Presentation 2Q FY2017

Transcription

1 Institutional Presentation 2Q FY2017

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 December By sqm As of December 2016 Office Buildings 11% 6 office buildings ~78,000 sqm Land bank 45% Shopping Malls 44% 16 shopping malls ~337,000 sqm Other 94.61% 5.39% Source: Company Information Note: 1. Mercado de Valores de Buenos Aires 2. GLA: Gross Leaseable Area Total: 742,000 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 Centers: Operating Figures Shopping Centers Tenants Sales (Quarterly Growth Rate - %) 44,5% 35,6% 35,5% 34,3% 36,3% 35,7% 28,5% 28,6% 29,9% 30,0% 27,1% 31,3% 30,1% 32,5% 29,0% 34,3% 25,4% 29,6% 21,0% 18,6% Total Growth Same Shopping Sales IQ 14 IIQ 14 IIIQ 14 IVQ 14 IQ 15 IIQ 15 IIIQ 15 IVQ 15 IQ 16 IIQ 16 IIIQ 16 IVQ 16 IQ17 IIQ17 Shopping Centers Stock & Occupancy % 99,0% 98,6% 98,4% 98,4% 98,4% ,364 sqm Expansion Summary Main Figures (IIQ 2017) Stock (sqm) Occupancy Sales (ARS) IIQ16 IIIQ16 IVQ16 IQ17 IIQ17 Visitors 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 Office Buildings: Main figures Offices Leases USD/sqm/mth & Occupancy 98.6% 100.0% 100.0% 94.0% 93.1% IIQ16 IIIQ16 IVQ16 IQ17 IIQ17 Offices Stock (sqm) & Market Share* (A+ BA City) 62% 95,002 79,048 77,252 Polo Dot 32,000 sqm 125,264 Catalinas Sale of 1,796 sqm 16,012 USD 6.3 MM (Office Portfolio acquisition) IQ17 (USD/sqm 3,700) IIQ17 Projected FY19 80% potential increase in EBITDA (From USD 19.5 million to ~ USD 34 million) * Source: LJ Ramos Estimated Market Share: 12% 6

7 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 7

8 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 8

9 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 9

10 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 28.5 million investment Tenant Sales FY16 USD/sqm/mth 1, Est. Opening Alto Palermo Avge IRCP Portfolio Stabilized EBITDA ~ USD 4 to 6 million FY

11 Capex 2017: Project POLO DOT (1º stage) Master Plan Polo Dot 2 stage Dot Building Dot Baires Mall 1 stage 2017/2018 ~ USD 65 MM 2 stage POLO DOT Full Project 5 years ~ 68,400 sqm of GLA 11

12 Capex 2017 (start of construction): 1 st Stage POLO DOT project Polo Dot Office Building ~ 32,000 sqm GLA ~ USD 65 million investment Est. Opening Stabilized EBITDA: ~ USD 8 10 million 75% of the building already leased FY

13 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 5 to 7 million FY

14 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 17.3% 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 Astor Palermo: Units received from barter agreements US$ 17 million TGLT (9.5% equity stake) TGLT is a residential housing developer with operations in Argentina and Uruguay Source: Company Information 14

15 Financial Information

16 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 16

17 Financial Overview 6MFY17 Revenues by Segment (ARS million) +25.3% +75.9% EBITDA by Segment ARS million +19.4% % 1,194 1, , Shopping Centers Offices Shopping Centers Offices 6M FY16 6M FY17 6M FY16 6M FY17 EBITDA Margin by Segment - % EBITDA Breakdown (*) Shoppings Offices 14,9% 1,4% 6M % 78.3% (*) 6M % 77.6% var YoY -3.7 pp 0.7pp 83,9% Shopping Centers Offices S&D (*) Excludes the ARS 44 milion gain resulting from the business combination Entertainment Holding S.A, which is indirect holder of 35% of La Rural S.A. 17

18 Consolidated Debt as of December 31, 2016 Description Debt Description (USD million) Issue Currency Outstanding Amount (US$ million) Rate Maturity Current Debt Amortization schedule (USD million) 360 Series II Notes due 2023 (int.) US$ % mar-23 Short-term debt ARS 7.0 Variable < 365 days ON IRCP Class I ARS %/ Badlar+400bps may-17 Other Loans Total IRSA CP s Debt IRSA CP s Net Debt ,6 0,3 Net Debt/EBITDA LTM 1.3x Dividend Evolution (USD million) New Dividend paid (Nov-16) ARS 460 million ARS/share 0,3650 ARS/ADR 14,60 FY 12 FY 13 FY 14 FY 15 FY16 6M17 Record Date: Nov-16 Payment Date: Nov-16 Dividend Yield: 2.2% Notes 1. Net Debt less cash & equivalents, short-term financial current investments, a loan with a subsidiary of IRSA. 18

19 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. 19

20 Thanks