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Presentación de PowerPoint · Presentation IIIQ FY 2020. IRSA AT A GLANCE 80.7% 29.9% 49.0% HOTELS...
Transcript of Presentación de PowerPoint · Presentation IIIQ FY 2020. IRSA AT A GLANCE 80.7% 29.9% 49.0% HOTELS...
Institutional Presentation
IIIQ FY 2020
IRSA AT A GLANCE
29.9%80.7%
49.0%
HOTELS LANDBANK 100%Indirectly
83.7%Directly and Indirectly
ARGENTINABUSINESS CENTER
ISRAELBUSINESS CENTER
US INVESTMENTS
VP 18.9%
Under sale process
*CRESUD additionally owns 2.6% of IRCP shares
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UNIQUE PORTFOLIO AND STRONG MARKET POSITION
UNIQUE PORTFOLIO AND STRONG MARKET POSITION IN ARGENTINA
LEADING DIVERSIFIED REAL ESTATE COMPANY
INVESTMENTS IN THE US AND ISRAEL
Argentina Business Center
62.4%
3
6.7%
93.3%
17.3%
82.7%
High income AreaMid Income AreaLow Income Area
BA CITY
332,000 sqm GLA
15 MALLS
~70% MarketShare
SHOPPING MALLS’ UNIQUE PORTFOLIO
ATOMIZED AND DIVERSE TENANT MIX
TOP FIVE ON SALES
BY SQMBY BASE RENT
SALES BY TYPE
56,2%
8,1%
10,8%
5,4%
19,5%
ApparelElectro
Restaurants
Department Store
Others
With low incidence of department stores
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Expanding Corporate North AreaBusiness CenterAAA LocationBack Office Center
200 Della Paolera
(IVQ FY20)
Intercontinental
República
Zetta
Philips
Dot Building
Boston Tower
Bouchard 710
Suipacha
9 BUILDINGS145,000 sqm GLA
OFFICES BUILDINGS
87%
13%
A+ & A
B
Surface by class
PREMIUM PORTFOLIO
PREMIUM TENANTS
75%International
Tenants
31%
14%9%
46%
Others Technology
Oil & EnergyBanks & Insurance
3 PREMIUM HOTELS ACROSS THE COUNTRY
LibertadorBA city200 rooms
IntercontinentalBA city313 rooms
Llao Llao ResortBariloche city205 rooms
Intercontinental
Libertador
Llao Llao
YEAR 1 YEAR 2 YEAR 3In advance
AR
S
Variable
Key money
Brokerage fee
RENTAL PROPERTIES´ RESILIENT REVENUE MODELF O R B OT H S H O P P I N G M A L L S A N D O F F I C E A G R E E M E N T S
VARIABLE & FIXED RENT
The company collects the
highest between a % of tenant
monthly sales and a minimum
fixed rent (base rent)
OTHER REVENUES
26% of total revenues comes from
key money, brokerage fee, stands,
parking and non-traditional
advertising
74%of total
revenues
SHOPPING MALLS OFFICES
YEAR 1 YEAR 2 YEAR 3
USD
Per sqmPer sqmPer sqm
OFFICE AGREEMENTS
• 3-year average term
• US Dollar based
• Rental rates for renewed terms
are negotiated at market
conditions
Fixed
50% Fixed
24% Variable
Base Rent
Base Rent
Base Rent
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SHOPPING MALLS’ 20 YEARS OPERATIONAL PERFORMANCE
-5%
43%
20%
31%
15%
40%
21%
43% 46%
-18%
36%
31%
15%
11%
38%
7%
24%
36%
17%
34%38%
98%
92%
99%
97%
99%
97%
95% 95%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9M 2020
CRISIS CRISIS CRISIS…
Occupancy
Tenant sales ARS/sqm (annual ∆)
CPI + GDP(annual ∆)
8
CRISIS CRISIS CRISIS…
9
92%
78%
86%
93% 94%95%
94%
37.4
11.0
36.0
25.9
31.7
28.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9M 2020
OFFICE BUILDINGS’ 20 YEARS OPERATIONAL PERFORMANCEA+ & A Offices Occupancy in BA
A+ & A Offices rent in BA (USD/sqm)
Source: L.J. Ramos y Colliers
27.5
93.9%
March 20, 2020 April 2020 May 2020 June 2020From March 15th
to March 20th
Optional Quarantine
Malls partially closed
Operations with reduced
traffic and social distance
Mandatory Quarantine
Total closure of borders and activities (educational,
recreational and commercial) with the exception of essential
ones (health, food, among others)
Malls closed in the whole country, except Pharmacies and
Supermarkets
Hotels closed
Mandatory quarantine remains in Buenos Aires City and Greater BA. Only working essential activities.Malls and Hotels remain closed
Relax and gradual opening of activities (recreational and commercial) in some regions less affected (eg: Salta)
Reopening of Alto NOA Shopping Mall on May 8th and Mendoza Plaza on June 9th
Next openings expected in the interior of the country
The Company has set a plan with several measures in order to preserve the health of its employees, help contain Covid-19’s spreading and mitigate its effects in our operations.
▪ Prevention and Crisis Committee;
▪ Home office for our employees
▪ Those classified as part of the risk group defined by the Ministry of Health;
▪ Alternate home office for our corporate office employees in Buenos Aires;
▪ Contingency plans to support Company’s operations
COVID-19 IN ARGENTINAM E A S U R E S TA K E N BY T H E G O V E R N M E N T A N D T H E C O M PA N Y
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Base rent; 33%
Variable rent; 21%
Key money ; 9%
Parking y Otros; 9%
Commercial fund; 8%
Common Expenses; 20%
SHOPPING MALLS
OFFICE BUILDINGS
EXPENSES
CAPEX
Operations closed since March 20. The company decided not to charge
base rent and commercial fund during April and May 2020 supporting
our tenants and prioritizing our long-term relationship. We charged just
common expenses.
Construction works in Catalinas and Alto Palermo expansion
suspended during quarantine. To date, construction activity is
operating with restrictions.
Cut off nonessential expenses and services
Cut off social security taxes and other taxes
Normal revenues collection during April
and May 2020
COVID-19 IN ARGENTINAI M PA C T I N O U R B U S I N E S S
Situation pre Covid-19(6M FY20)
GUARANTEED BY CONTRACT
Shutted down since March 20th. Intercontinental Hotel just
working under a contingency and emergency planHOTELS
Working together with our tenants
giving them all our support and help in this unprecedented
situation
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PROJECTS UNDER DEVELOPMENT
ALTO PALERMO EXPANSION
3,900 GLA sqm
51%Works Progress
FY21 Est. Opening date
USD 28.5mmEst. Investment
200 DELLA
PAOLERA
35,000 GLA sqm
87%IRCP stake
86%Works Progress
IVQ FY20 Est. Opening date
200 DELLA PAOLERA
38%Commercialization Progress
Units delivered to
January 2020
USD 90mmEst. Investment
USD 10-12mmEst. Estabilized EBITDA
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Former Philips Building
Giga Building
Exa BuildingExpansion
POLO DOT FUTURE STAGES
13
332 332
128 130 128
118 118
580
Current Brownfield Greenfield Current GLA & pipeline
115 115 115
30
106106
221
Current New developments Current GLA & pipeline
POTENTIAL DEVELOPMENT
SHOPPING MALLS( T h . S q m )
OFFICES( T h . S q m )
A L M O S T TO D O U B L E C U R R E N T C O M M E R C I A L P O R T F O L I O
1.7x
1.9x
currently under construction
currently under construction4
14
SANTA MARÍA DEL PLATA(BA City)
Approvals pending
~700,000 sqm
Premium mixed use Real Estate to be developed in
the best location of BA city
Israel Business Center
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C U R R E N T C O R P O R AT E S T R U C T U R E
100% 83.7%
Directly or indirectly*
68.8%100% 8.5%**20.2% 46.0% 68.8% 61.1% 26.0%40.6%
29.9%*
Energy Tourism Insurance Financial investments
Telecommunications Agriculture
Rental Properties
Real Estate Technology Supermarkets
100%**
Rental Properties
+ 7.1% through swap transactions.
* There is a nonrecourse intercompany loan between Dolphin (borrower) and IDB (lender) due to the transference of DIC shares. This loan is guaranteed with DIC shares sold.** Direct stake.
ISRAEL BUSINESS CENTER
Aaron Kaufman new CEOMay-20
Doron Cohen new CEOMar-20
*PBC recently sold 5% of its stake in
GAV YAM
**PBC signed an agreement to sell ISPRO
for NIS 800MM
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54.8%
34.8%20.3% 15.3% 8.5% 8.5%
20.0%
24.0%20.0%
8.2% 7.1%
54.8% 54.8%
44.3%35.3%
16.7% 15.6%
Original Stake FY 18 FY 19 IQ 20 IIQ 20 Subsequent (jan-20)
Float
Through Swaps
Direct
ISRAEL BUSINESS CENTERC L A L S A L E P R O C E S S
Economic rights
IDB Debt exchange
(Series 9 & 14)
• IDB Debt exchange
• Investors’ options
exercise
• Capital increase &
IDB dilution
Private investors
(sales + options)
Swap transactions
100% 100% 100% 100% 100%100%
Mkt Value: USD 0.7 bn
Book Value: USD 1.5 bn
MV/BV: 45%
OWNERSHIP
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D I C M A I N S U B S I D I A R I ES
ISRAEL BUSINESS CENTER
COVID-19: SHORT TERM POSITIVE IMPACT
Record sales with strong online growth
Trend expected to remain in IIQ20 (april-june)
COVID-19: NEGATIVE PARTIAL IMPACT
Moderate decrease in revenues mainly due to
roaming and sale of devices.
Reduction of labor costs for suspensions and
marketing expenses.
COVID-19: NET POSITIVE IMPACT
Business operating almost normally
Increase of products’ prices due to lower supply
and sustainable demand. Direct sale to
supermarkets.
LEADING REAL ESTATE COMPANIES
• 1.2 million rental sqm across Israel
• 680,000 sqm in land reserves
• 142,000 sqm in USA
LEADER TELECOMMUNICATIONS GROUP
• ~3 million subscribers
• 26% market share
• ISP service for 685,000 houses
• More than 195,000 TV subscribers
LEADER SUPERMARKET COMPANY
• 338 stores in Israel
• Owner of a real estate portfolio of ~NIS 3 bn
• Own brand: 25% of total sales
• Online sale: 14% of total sales
MAIN PRODUCER AND EXPORTER OF
CITRICS AND AVOCADO
• Main avocado supplier in the northern
hemisphere to Europe
• 3.610 hectares under operation
LEADER IN INVESTMENT IN COMPANIES IN
EARLY STAGE
• Specialized in medical devices, cybersecurity
and information technology
COVID-19: NEUTRAL IMPACT
Normal operations in office and logistics segments
Recent reopening of malls
COVID-19: NO IMPACT IN THE SHORT TERM
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Matam Park (Office)Haifa
Gav-Yam Park (Office)North Herzliya
LEADING REAL ESTATE COMPANIES IN ISRAEL
Office & hi-tech parkCommercial & RetailIndustrial & LogisticsProperties under constructionResidentialLand reserves
Gav-Yam O2 (Office)Herzliya
Haifa Bay (Industrial)Haifa
Main office tenants:
Tivoli Village(Mall)Las Vegas
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GLA: ~1 MM sqm
Consolidated GLA: ~1.2 MM sqmLand reserves: ~640,000 sqm
ASSETS IN THE US: 142,000 sqm
HSBC Building (Office)Manhattan – New York
ISRAEL BUSINESS CENTER – FINANCIAL SITUATION
81
175 175 175 175 175
95
dec-20 dec-21 dec-22 dec-23 dec-24 dec-25 dec-26
M A R C H 3 1 , 2 0 2 0 – U S D M I L L I O N
527.7 IDBNet financial debt
857.7 DICNet financial debt
78
44
332
44 44 44
dec-20 dec-21 dec-22 dec-23 dec-24 dec-25
• In negotiation with bondholders
• IRSA has a commitment for capital injections of USD 20mm each (sep-20 y sep-21)
57Cash & Equivalents
193Cash & Equivalents
21
Financial Performance
648
1.410
1.056
1.368
519
128 36
79
354
Shopping Malls Offices Land reserves& Prop. Underdevelopment
Others JV & Investees Gross AssetValue
Net Debt Net AssetValue
Net AssetValue IIIQ FY
2019
110.2 127.7Adjusted EBITDALTM4
IRCP - FINANCIAL METRICS
2 3
1- Assets and liabilities adjusted by IRCP ownership
2- Includes trading properties and barters registered under intangible assets. These two items are recorded at historical cost in the financial statements
3- Includes Quality and Nuevo Puerto Santa Fe as JV and La Rural, Convention Center & TGLT as Investees.
4- LTM March 31, 2020 Adjusted Avg. FX: $63.23
5- Includes 200 Della Paolera
VALUATION RATIOS LTM
CAP RATE (NOI/EV) 20%
EV/EBITDA 5.7x
P/FFO 2.8x
P/NAV 0.2x
Net Operating IncomeLTM4
82.5 Adjusted FFOLTM4
NAV1 -23%
23
M A R C H 3 1 , 2 0 2 0 - U S D M I L L I O N
5
359.6 21%3.3Consolidated Net
Debt2Loan to Value4Net Debt/EBITDA
AMORTIZATION SCHEDULEDescription Amount Maturity
Short-term debt 16.4 <360 days
2020 Series IV (local)1 129.8 Sep 2020
PAMSA loan 32.4 Feb 2023
2023 Series II (international)
360.0 Mar 2023
GROSS DEBT 538.6
Cash & Equivalents2 124.3
Intercompany Credit 54.7
NET DEBT3 359.6
14.4
145.3
10.8
368.1
FY 2020 FY 2021 FY 2022 FY 2023
IRCP - DEBT PROFILE
Notes
1. Net of repurchases
2. Cash & Cash Equivalents + Investments in Financial Currents Assets + Intercompany Notes Holdings
3. Gross Financial Debt less cash & equivalents, short-term financial current investments & Intercompany Credit with parent IRSA
4. Net Financial Debt over Gross Assets Value24
M A R C H 3 1 , 2 0 2 0 - U S D M I L L I O N
34.6
301.9
63.5
FY 2020 FY 2021 FY 2022
AMORTIZATION SCHEDULE
Description Amount Maturity
Short-term debt 31.7 <360 days
2020 Series II (USD) 71.4 Jul 2020
2020 Series II (CLP) 37.2 Aug 2020
2020 Series I 181.5 Nov 2020
Intercompany Debt 54.7
Other Debt 23.5
GROSS DEBT 400.0
IRSA - DEBT PROFILEM A R C H 3 1 , 2 0 2 0 - U S D M I L L I O N
After the end of the period, on May 21, 2020, we issued USD 65.8 MM in the local capital markets
• Series III (ARS): ARS 354 million at BADLAR + 6.0% due February 21, 2021• Series IV (USD linked): USD 51.4 million at 7.0% fixed due May 21, 2021• Series V (USD linked): USD 9.2 million at 9.0% fixed due May 21, 2022
Proceeds will be used to refinance short term debt
25
Thanks