Institutional Presentation 3Q FY2016. Lisptick Building

Transcription

1 Institutional Presentation 3Q FY2016 Lisptick Building 1

2 IRSA Commercial Properties + Other diversified assets 94.74% 29.91% HOTELS LANDBANK INTERNATIONAL SHOPPING Malls OFFICE Buildings VP 49% 68.3% 49% 414,000 sqm of rental GLA + Commercial Landbank Potential to develop: 240,000 sqm of shopping malls 89,000 sqm of offices 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 Multi-format and targeting different consumer profiles Buenos Aires 67% Market Share High (7%) Mid-High (17%) Mid (30%) Mid-Low (32%) Low (15%) Mid Income Area Lower Income Area High Income Area Land reserves Source: Company information 3

4 mar-12 abr-12 may-12 jun-12 jul-12 ago-12 sep-12 oct-12 nov-12 dic-12 ene-13 feb-13 mar-13 abr-13 may-13 jun-13 jul-13 ago-13 sep-13 oct-13 nov-13 dic-13 ene-14 feb-14 mar-14 abr-14 may-14 jun-14 jul-14 ago-14 sep-14 oct-14 nov-14 dic-14 ene-15 feb-15 mar-15 abr-15 may-15 jun-15 jul-15 ago-15 sep-15 oct-15 nov-15 dic-15 ene-16 feb-16 mar-16 Shopping Centers: Strong Operating Figures Shopping Centers Tenants Sales (Quarterly Growth Rate - %) 44,5% 24,9% 26,0% 22,1% 24,1% 28,9% 26,3% 28,5% 28,6% 29,9% 30,0% 27,1% 35,6% 35,5% 34,3% 31,3% 30,1% 36,3% 35,7% 32,5% 29,0% 25,4% Tenant Sales Same Store Sales Shopping Centers Occupancy % 98.6% 99.0% 98.9% 98.7% 98.6% Summary Main Figures (9M 2016) Stock (sqm) Occupancy Sales (ARS) Visitors IIIQ 16 IIQ 16 IQ 16 IVQ 15 IIIQ 15 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 Revenue Model: A Natural hedge against Devaluation Office Leases (USD/sqm) & Occupancy % % % 99% 98% % 23.5 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Parcial Sale of Intercontinental Plaza A+ Office Real Estate Appreciation 2280 Operating Figures IIIQ16 Monthly Lease (USD/sqm) Occupancy % % Mar Source: L.J. Ramos September 2015 Partial Sale for ARS 324,0 mm 5,963 sqm sold USD/sqm 5, % Cap Rate Gain recognition: ARS million Feb 2016 Partial Sale for ARS 41.5 mm 851 sqm sold Gain recognition; ARS 19.8 million (next quarter) Remaining sqm: 6,308 6

7 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 ~6,370 Parking Lots charged ~650 Kiosks Non Traditional Advertising Source: Company Information 7

8 Current Mall Expansions OPENING 100% developed Tenants are refurbishing their stores oexpansion of 650 sqm of GLA ocapex: ~ ARS 15 million odevelopment Progress: 100% (opened in March) oagreements signed: 100% oexpansion of 3,564 sqm of GLA ocapex: ~ ARS 74 million oagreements signed: 100% onew Tenants: Farmacity, Akiabara, Wendy s & Megatlon TO START CONSTRUCTION WORKS FUTURE DEVELOPMENT o Expansion of 920 sqm of GLA o Capex: ~ ARS 22 million o Start of construction: June 2016 (1 year development) o New Tenant: Nike o Acquisition of adjoining plot of land o Sqm: 3,822 o Price paid: ~ USD 2 million o Use: Future expansion of Alto Avellaneda Shopping Mall 8

9 Capex 2017/2018: Expansion of Alto Palermo Shopping Alto Palermo Lindero Project 3rd level ~ 4,000 sqm new GLA Investment: ~ USD 21 million (includes food court moving and restyling) 9

10 Attractive Development Pipeline Shopping San Martín ~ 35,000 sqm Polo Dot: U Building 30,000 sqm Shopping Tucumán Shopping Tucumán ~ 10,000 sqm Shopping Paraná ~ 5,000 sqm Polo Dot: Two Office Towers 38,400 sqm Shopping Caballito ~ 68,000 sqm Intercontinental Plaza II ~ 20,000 sqm Office Intercontinental II ~ 22,000 sqm urrent malls xpansions 15,000 sqm GLA Source: Company Information 10

11 Capex 2017/2018: 1 st Stage MIXED USE POLO DOT PROJECT Adjoining DOT Plot of Land 1 (1st stage) ~ 30,000 sqm GLA Capex: ~ USD 55 million Adjoining DOT Plot of Land 2 Two Office Towers / hotels 2nd Stage ~ 38,400 sqm 2nd Stage Dot Building Dot Baires Mall 1st Stage 2017/2018 ~ USD 55 MM 2nd Stage POLO DOT FULL 5 YRS PROJECT ~ 68,400 leasable sqm 11

12 IRSA Main Landbank across Argentina IRSA Main Landbank across Argentina Santa María del Plata ~ 700,000 sqm to be developed Premium Location in BA City Mixed Use Project Approvals pending Montevideo Project (Uruguay) Puerto Retiro (BA) La Adela (Lujan - BA) 12

13 Catalinas Office Building (to be built) Catalinas Office Building Total sqm of GLA: 35,468 (30 floors) Total parking units: 316 Delivery of units: Dec-19 Sign of Deed: Dec-20 Partial Sale of Catalinas Office Building (to be built) o Dec 15 - Sale to a non related party of 4 floors at ARS 180 MM + USD 12 MM o April 2016: Sale to IRSA CP of 16,012 sqm of GLA + its parking units o 14 floors (from 13th to 16th and from 21th to 30th) o Purpose: Long-term Lease Price paid: Catalinas Office Building Total sqm of GLA: 35,468 (30 floors) Total parking units: 316 Delivery of Units: December 2019 Sign of deed: December 2020 o Land acquisition: ARS million (~ USD/sqm 1,600) o Real Development cost / sqm to be determined (~USD 40 MM) o 14,820 sqm remained under IRSA (from 1st to 12th floor) Purpose: (not defined yet between long-term lease or sale) 13

14 Sales of Investment Properties 9M 2016 Dique IV Office (Puerto Madero - BA) Maipú 1300 Office (Retiro BA) Isla Sirgadero Plot (Santa Fe Province) Total Partial Total 11,242 sqm 3,451 sqm 826 ha ARS million x BV x BV 7.7x BV 13 4 Profit BV 14

15 Investment in Lipstick Building Lipstick Operating Figures Leases USD/sqm & Occupancy 88,9% 91,9% 95,1% 63,7 64,7 67,2 FY2014 FY2015 9M16 Rent (USD / sqm) Occupancy New agreements signed on March 2016 at USD/sqm 85. Occupancy will exceed 97% next quarter IIIQ16: The building got the LEED EB: O&M Gold Certification (best environmental practices) 15

16 Investment in Condor Hospitality Trust New Preferred Shares Serie D issued on Mar-16 New partner inject USD 30 MM Change its preferred C (USD 30 MM) for D + accumulated dividend unpaid VP: From 34% to 49% Redemption of Preferred A & B on April 2016 Company Strategy: Selective hotel sales and replace with better margin & scale hotels 16

17 Urban Real Estate 15 years Appreciation Investment in IDBD Investment Highlights 9M 2016 We have appointed an acting CEO and CFO for IDBD and DIC. Ownership Structure Dolphin IFISA 68.30% 31.70% During December 2015, the sale process of Clal was cancelled In January 2016, Dolphin signed with IFISA an option to acquire 92.6 million shares of IDBD at NIS 1.64 per share in a 2 year period + 8,5% annual interest rate Mar-16: Tender Offers obligation - Approval of new proposal Investment made & Future Commitments Float acquisition + Deslisting (last price NIS/share 2.14) -NIS/share 1.25 cash -NIS/share 1.20 bond (Series 9) Amount invested by IRSA in Dolphin Amount ~ USD 515 million - Additional NIS/share 1.05 contingent to Clal Sale (75% above BV) or premission control - Additional cash injection for NIS million No further commitments. Just the contingent payment of NIS/share 1.05 in case of sale or permission of CLAL 17 17

18 Urban Real Estate 15 years Appreciation IDBD Real Assets Residential - 1,000 units Offices & commercial 27k sqm 1,200 units are in various of construction 5,300 ha of cultivated land of which 1,400 ha are leasehold 18 18

19 Urban Real Estate 15 years Appreciation Other assets Company Overview Israel s leading mobile communications operator, with over 2.8 million subscribers An estimated market share of 27% October Combination with 013 Netvision has created a one stop shop offering in communication field including: cellular, ISP and domestic and international telephony services Company Overview World s leading manufacturer and distributor of generic agrochemicals Comprehensive product offerings sold in over 100 countries Implementing its strategy of growththrough-acquisition in LATAM, Europe and Asia Production and formulation facilities in Israel and Brazil Global marketing and a distribution network consisting of 40 centers worldwide Strong post merger integration capabilities Company Overview Israel s leading insurance, pension and finance group Provides comprehensive financial solutions including insurance, pension funds, provident funds, mutual funds, and investments Employs over 4,000 insurance agents Market share of 15-20% (life & non life & health) Gross premiums amounted to $2.5B Assets under management (AUM) over USD 43 billion Equity Value ~ USD 1.2 billion Consolidated Equity investee Market Value 19 19

20 Tender Offer + New Bond IRSA CP Tender Offer IRSA CP 2017, IRSA 2017 & IRSA 2020 Notes New Bond IRSA CP 2023 Notes IRCP17 IRSA17 IRSA20 Coupon 7.875% 8.500% % Aggregate principal amount (USD MM) Tender Offer total consideration Amount of tender offers receipt (USD MM) % over aggregate principal amount Aggregate principal amount Fixed Interest Rate USD 360 million 8,75% annual. Issue Price 98,722% (YTM 9,0%) Maturity 2023 (7yr NC4 2 ) Use of Proceeds Repurchase IRCP 17 Notes Cancel intercompany loan with IRSA for USD 240 million Main Achievements Term extension to 2023 of company s structural debt Replacememt of intercompany loan through the international capital markets Elimination of restrictive covenants at IRSA level 1 Approximate Percentage of Consents Received 57.98% 2 - Redemption-Call Option: March, at 104,375%; March, at 102,188%; 2022 and thereafter at 100,0%. 20

21 Argentina Business Center: Debt as of March 31, 2016 IRSA Inversiones y Representaciones Stand Alone Debt Amortization schedule (before Deal) (USD million) Debt Amortization schedule Proforma (USD million) IRSA Commercial Properties Stand Alone Debt Amortization schedule (before Deal) (USD million) Debt Amortization schedule Proforma (USD million) 150,0 360,0 151,2 90,0 15, ,3 31,

22 Israel Business Center: Debt as of December 31, 2015 Debt Amount USD MM IDBD 787 DIC Shufersal 779 Cellcom 974 PBC Others (1) 157 (1) Includes IDB Tourism, Bartan, y IDBG IDBD Debt Amortization schedule (USD million)

23 Contact Information Cautionary Statement ALEJANDRO ELSZTAIN II VP MATÍAS GAIVIRONSKY CFO Tel +(54 11) Corporate Offices Intercontinental Plaza Moreno Floor Tel +(54 11) Fax +(54 11) C1091AAQ City of Buenos Aires Argentina NYSE Symbol: IRS BASE Symbol: IRSA Follow us on Independent Auditors PricewaterhouseCoopers Argentina Tel +(54 11) Bouchard 557 7º C1106ABG City of Buenos Aires Argentina Investing in all equities, including natural resources and real estate-related equities, carries risks which should be taken into consideration when making an investment. This institutional presentation contains statements that constitute forward-looking statements, in that they include statements regarding the intent, belief or current expectations of our directors and officers with respect to our future operating performance. You should be aware that any such forward looking statements are no guarantees of future performance and may involve risks and uncertainties, and that actual results may differ materially and adversely from those set forth in this presentation. We undertake no obligation to release publicly any revisions to such forward-looking statements to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements can be found in the companies Forms 20-F for Fiscal Year 2014 ended June 30, 2014, which are available for you in our web sites.