Institutional Presentation 3Q FY2017

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Transcription:

Institutional Presentation 3Q FY2017 1

IRSA Commercial Properties + Other diversified assets 94.61% 29.91% HOTELS LANDBANK INTERNATIONAL SHOPPING Malls OFFICE Buildings VP 28.7% 68.3% 49% ~417,000 sqm of rental GLA + Commercial Landbank 2

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

Shopping Malls: Operating Figures Shopping Malls Tenants Sales (Quarterly Growth Rate - %) 44,5% 28,5% 28,6% 29,9% 30,0% 27,1% 35,6% 35,5% 31,3% 34,3% 30,1% 36,3% 35,7% 32,5% 29,0% 29,7% 25,4% 29,6% 21,0% 18,6% 19,9% 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 IIIQ17 Shopping Malls Stock & Occupancy % Summary Main Figures (IIIQ 2017) 98,6% 98,4% 98,4% 98,4% 98,0% 334.079 333.155 335.032 337.396 340.391 Stock (sqm) 2,364 sqm Expansion 2,995 sqm Expansion Mainly Occupancy Sales (ARS) IIIQ16 IVQ16 IQ17 IIQ17 IIIQ17 Visitors 4

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

Office Buildings: Main figures Offices Leases USD/sqm/mth & Occupancy 98,6% 100,0% 100,0% 100,0% 93,1% 26,6 25,9 25 25,6 25,9 IIIQ16 IVQ16 IQ17 IIQ17 IIIQ17 Offices Stock (sqm) 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) IIIQ17 Projected FY20 80% potential increase in EBITDA (From USD 19.5 million to ~ USD 34 million) * Source: LJ Ramos Estimated Market Share*: 12% 6

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 7

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 118 58 5 108 48 337 337 342 77 77 125 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

Capex: Alto Palermo Expansion Alto Palermo Expansion Project (Palermo BA City) Food Court Moving to 3rd level & restyling ~ 4,000 sqm new GLA ~ USD 28.5 million investment Construction Works (Current Picture) Fully developed (future picture) Est. Opening FY2019 Alto Palermo Tenant Sales USD/sqm/mth 1,360 607 Alto Palermo Avge IRCP Portfolio Stabilized EBITDA ~ USD 4 to 6 million 9

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 10

Capex: 1 st Stage POLO DOT project Polo Dot Office Building (North Area BA City) The first Office Park in Buenos Aires ~ 32,000 sqm GLA ~ ARS 1,000 million Construction Works (Current Picture) Fully developed (future picture) Est. Opening FY2019 75% of the building already leased Stabilized EBITDA: ~ USD 8 10 million 11

Capex: Catalinas Office Project Catalinas Office Building (BA City) ~ 35,000 sqm GLA (16,012 sqm owned by IRSA CP) ~ USD 101 million total investment (45% made by IRSA CP) Construction Works (Current Picture) Fully developed (future picture) Leases USD/sqm/mth (Source: L.J Ramos) 34 30 Catalinas Avge A+ BA Market Stabilized EBITDA ~ USD 5 to 7 million 12

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 13

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) 14

FY14 FY15 FY16 IIIQ17 Argentina Business Center International Lisptick Building (49% stake) Condor Hospitality Trust (Nasdaq: CDOR) 28.7% Voting Power Strategy: Fly to quality - Selective hotel sales to achieve better margin & scale hotels Relevant Events for 9M 17 o On March 2017, Condor issued 4.7 million new shares at a price of USD/share 10.5. Lipstick Operating Figures Leases USD/sqm & Occupancy o On May 2017, Condor extended a revolving credit line from USD 90 million to USD 150 million. 89% 64 92% 65 97% 67 95% 68,7 o Proceeds from those transactions will be used to refinance short term debt and keep acquiring hotels in the US following its fly to quality strategy.

Urban Real Estate 15 years Appreciation Israel Business Center: Investment in IDBD As of today: o IRSA controls, through Dolphin, 68.3% of IDBD o IRSA owns 6.0% of DIC (dilution from 8.8% stake as of March 31, 2017 due to exercise of warrants) Dolphin 68.3% IFISA 31.7% 6.0% 70.9% 100% 54.9% Consolidated Under sale negotiation Market Value 42.3% 64.4% 50.3% 60.7% 16

Israel Urban Business Real Estate Center: 15 years Sale Appreciation of Agrochemical ADAMA Transaction Ownership Structure DIC sold it s 40% stake in Adama to ChemChina Price: USD 230 million in excess of the total loan cancelation for USD 1.17 billion Transaction completed on November 2016 DIC ChemChina 40% 60% DIC s net cash flow ~ NIS 800 millions Gain recognized: ARS 4,2 billion at IRSA level 17

IDBD net IDBD debt & development DIC Net debt (mil ) decrease (NIS million) IDBD DIC 4.814 4.554 9.511 7.516 8.019 8.292 3.588 3.051 2.878 2.845 31.12.2012 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.12.2012 31.12.2013 31.12.2014 31.12.2015 31.12.2016 Removal of Going concern clause Removal of Banks financial covenants Companies last issuances: PBC (Apr-17): NIS 446 million at 3.68% fixed rate due 2029 Gav -Yam (Mar-17): NIS 430 million at 1.69% fixed rate due 2026 DIC (Mar-17): NIS 555 million at 4.06% + CPI due 2025 IDBD (Feb-17): NIS 1,060 million at 5.40% fixed rate due 2019 Credit Rating Upgrade: DIC from BBB- to BBB ; IDBD from CCC to BB outlook development 18

IRSA stand alone Debt as of March 31, 2017 Gross Debt: USD 346.4 MM Net Debt: USD 337,1MM Debt Amortization schedule (USD million) 221,3 83,2 15,4 5,9 11,8 8,8 2017 2018 2019 2020 2021 2022 19

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