THE REAL ASSET PLAY IQ15 RESULTS CONFERENCE CALL · RESULTS CONFERENCE CALL Hosted by: Alejandro...
Transcript of THE REAL ASSET PLAY IQ15 RESULTS CONFERENCE CALL · RESULTS CONFERENCE CALL Hosted by: Alejandro...
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THE REAL ASSET PLAY
IQ15 RESULTS CONFERENCE CALL
Hosted by:
Alejandro Elsztain, II VP
Daniel Elsztain, COO
Matías Gaivironsky, CFO
November 12, 2014
Main Highlights for the IQ 2015
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Financial Results
o Revenues: ARS 790.0 M (+27.1% vs. IQ14)
o Op. Income: ARS 640.1 M (+179.4% vs. IQ14)*
o Net Income: ARS 135.8 M (vs. ARS 2.9 M during IQ14)
o To IRSA’ Shareholders: Gain of ARS 3.3 M
Operating Results
o Malls’ Tenant Sales: + 27.1% (vs. IQ14)
o Office Rent: USD/sqm 26
o Vacancy: 1.5% in Malls & 2.1% in Offices
Beginning of FY 2015
o Better results in Offices & Hotels o High returns on Madison & other assets sales
o Slight slowdown in Tenant Sales
o Works in Progress in Neuquén Project
o Waiting for the final resolution to open Arcos
* Excluding Madison Sale, Ebitda grew by 36%
Rental Segment: Strong Operating Figures
+29.2% FY 14 vs FY 13
98,5%
Stock (sqm)
Occupancy
Sales (ARS)
Visitors
Summary Main Figures (IQ 15)
Stable for the last 3 yrs
Shopping Centers – Tenant Sales (Growth Rate % )
3
Shopping Malls
31,8% 30,5%
24,9% 26,0%
22,1%
24,1%
28,9%
26,3%
28,5% 28,6%
29,9% 29,9%
27,1%
sep-1
1
oct-
11
nov-1
1
dic
-11
ene-1
2
feb-1
2
mar-
12
abr-
12
may-
12
jun-1
2
jul-12
ago-1
2
sep-1
2
oct-
12
nov-1
2
dic
-12
ene-1
3
feb-1
3
mar-
13
abr-
13
may-
13
jun-1
3
jul-13
ago-1
3
sep-1
3
oct-
13
nov-1
3
dic
-13
ene-1
4
feb-1
4
mar-
14
abr-
14
may-
14
jun-1
4
jul-14
ago-1
4
sep-1
4
Portfolio Occupancy (IQ 15)
Rental Segment: Strong Operating Figures
Offices
Stock (sqm)
Occupancy
Leases in ARS
Leases in USD
4
Avge Lease Price (ARS & USD/sqm – IQ15)
142.423
141.287 141.287
131.085 131.115
127.342
122.470
121.380
se
p-1
2
no
v-1
2
en
e-1
3
ma
r-1
3
ma
y-1
3
jul-
13
se
p-1
3
no
v-1
3
en
e-1
4
ma
r-1
4
ma
y-1
4
jul-
14
se
p-1
4
Portfolio Stock (GLA sqm)
Summary Main Figures (IQ15)
118,3
146,0
214,3
25,3 26,6
26,0
IQ13 IQ14 IQ15
+47%
Occupancy (ARS & USD/sqm – IQ15)
96,8% 96,7%
97,9%
IQ13 IQ14 IQ15
113.905 Current Stock:
Upcoming Project: DISTRITO ARCOS
Shopping Mall Project (BA City)
ARS 240 million investment
~ 14.000 sqm GLA
65 Stores
100% built & fully occupied
Status We are waiting for the final resolution to open our 14th Mall.
APSA Stake: 90.0%
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Development: Upcoming Project Neuquén Shopping
How it will look…next DECEMBER
Alto Comahue Shopping Mall Project (Neuquén Province)
~ ARS 250 million investment
~ 10.000 sqm GLA
Estimated opening: FY 15
101 Stores
56% signed contracts 89% negociated contracts
Full Project Mall + Supermarket + Hotel +Residential (18.000 sqm)
APSA Stake: 99.1%
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Expansion Project: La Ribera Shopping (Santa Fe)
Expansion & Food Court Moving
16 new stores
Development Status ~70% developed Start: June 2014 End of Construction : November 2014
APSA Stake: 50.0%
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From 51 to 67 stores
~ ARS 16 million investment
Moving 26 stores (new positions & tenants)
Investment in Avenida Inc.
Investment in Avenida Inc. (e-commerce)
Company created in 2013 that recently
obtained funds for ~ USD 16.0 million (including investments from Tiger Global Mgt & Naspers)
APSA
Stake
Aug-13 Jul-14 Aug-14
APSA Investment:
Call exercized for ARS 10 MM
New investor acquired 32,94%
injecting USD 15 MM
Sold 5% at USD 2,2 MM
Acquired 23,08% at
ARS 13 MM
23.08% 33.33% 21.58% 16.58%
Jul-14
8 Recognized Gain: ARS 8.6 Million
Sale of Investment Properties during and after IQ15
Sales of Investment Properties
Maipú 1300 “Pirelli”
897 sqm
USD 3.0 million
USD/sqm 3.378
Cap Rate: 5.82%
Subsequent Sales
“Bouchard Plaza”
7.475 sqm
USD 61.7 million
USD/sqm 8.250
Cap Rates: 3,5%-4,5%
No longer leasable area in the building
Remaining parking lots: 116 9
Subsequent Sale: 432 sqm
USD 1.4 million
USD/sqm 3.289
Cap Rate: 5,86%
La Nación Building Investment Case
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pendiente
Subsequent Event: Acquisition of “La Adela” Reserve
Amount paid: ARS 210 million (~ USD/sqm 2.4)
High urbanistic potential for future real estate development
Closed communities Avge Price Plot of Land: USD/sqm 25
BA City 50km
60km BA
Located 60km from BA City in a closed community Area
Urban cities
La Adela
Lujan (BA)
Acquired from our controller CRESUD July 14
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Landbank
Huge Landbank for future commercial developments
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5,2
2,0 1,0 2,0
49,7 14,0 7,7 14,0
10,0
125,0*
115,0
232,7 287,5 299,3 309,0 310,0 311,0
335,0
575,0
FY 08 FY 09 FY 11 FY 12 FY 13 FY 14 FY 15e Potential
Growth
GLA (sqm K) Expansions DOT
Soleil La Ribera Arcos Gourmet
New Developments Current Malls' Expansions
122,1 93,4* 163,7 156,0 140,2 150,9 145,4
131,8
215,5
2008 2009 2010 2011 2012 2013 2014 Potential
Growth
Leased Area Future Developments
*Does not consider Santa Maria, Puerto Retiro & Caballito (approvals pending)
Evolution of Offices’ GLA & Potential
(Th. sqm)
Evolution of Malls’ GLA & Potential (Th. sqm)
International: Sale of Madison 183 Building
Madison Sale for USD 185 MM
85.1
147.5
185.0
Valuation of the Building (USD million)
Dic-10 Nov-12 Sep-14
49.0%
.74,5% 74.5%
USD 50 MM Increased to USD75 MM
USD 75 MM to be
cancelled
Building Debt (Mortgage non recourse to IRSA)
Cap Rate
~ 3.8%
12 Recognized Gain: ARS 296.5 Million
International: Investment in IDB Development Corp.
DOLPHIN + EXTRA HOLDING
(50%/50%)
58.0%
FORMER IDBH
BONDHOLDERS
42.0%
Adama
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Investment in IDBD One of Israel’s largest and world-class asset collection
Pending Commitments (Dolphin 50%):
2015: Up to NIS 392.9 million
Tender Offer Commitments
2015: NIS 249.8 million (Price 8,344)
2016: NIS 262.3 million (Price 8,761) 69,31% 80.63%
Position Fully Diluted
Financial operations: Investment in Banco Hipotecario
Results to IRSA: ARS 43.3 million (vs. ARS 53.4 million in IQ14 mainly due to lower financial spread)
29.77%
14
109
143
225
sep-12 sep-13 sep-14
Market Value to IRSA
USD million
+58%
Financial IQ15 Results by Segment
456
75 16
73 19
569
101
5
97 28
Shoppings Offices S&D Hotels International
IQ 14 IQ 15
243
39
-7
4 10
302
63
10 4
299
Shoppings Offices S&D Hotels International
IQ14 IQ15
Revenues by Segment ARS million
EBITDA by Segment ARS million
+23% +35% -70% +33% +45% +24% +61% -244% -13% +2837%
Shoppings* Offices* Hotels S&D
IQ 15 78.5% 73,4% 3.6% 32.9%**
IQ 14 78.3% 61,6% 5.6% -
var YoY +0.2 pp +11,8pp -2,0pp -
•Excluding common maintenance common expenses and promotional funds ** Considering Revenues of Investment Properties,
EBITDA margin by Segment EBITDA Breakdown
LTM
57%
12%
14%
1% 16% Shoppings
Offices
S&D
Hotels
International
IRSA Income Statement IQ 2015
2.570
1.600
2.060
3.500
6.153 5.630
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
Real Estate Prices Evolution (A+ Offices BA – USD/sqm)
Exchange Rate Evolution (ARS/USD)
+ 3.6%
5,388 5,793
8,133 8,430
+ 7.5%
IRSA Income Statement IQ 2015
32.4
35.7
135.8
3.3
2.9
64.4
27.1 17.1
-0.5
135.9 14.4
3.5 -163.4
132.5
Att
rib
uta
ble
to
:
Pro
fit
for
the
1Q
14
Segm
ent
Pro
fit
- Sh
op
pin
g C
ente
rs
Segm
ent
Pro
fit
- O
ffic
e
Segm
ent
Pro
fit
- S&
D
Segm
ent
Pro
fit
- H
ote
ls
Segm
ent
Pro
fit
- In
tern
atio
nal
Segm
ent
Pro
fit
- O
ther
s
Ad
j. to
th
e re
sult
s fo
r th
e p
arti
cip
atio
n in
JV
Net
Fin
anci
al R
esu
lts
Taxe
s
Pro
fit
for
the
1Q
15
Att
rib
uta
ble
to
:
Non controlling interest
IRSA Equity holders
IRSA Equity holders
Non controlling interest
IRSA’s consolidated debt as of September 30, 2014
18
44,9 25,4
151,3 150,0 40,7
14,5
120,0
85,6
39,9
4,4
271,3
150,0
2014 2015 2016 2017 2018 2019 2020
IRSA APSA
Debt amortization schedule (IRSA consolidated - USD million)
Total debt (USD million)
Net debt / Assets (BV)
33.4%
Net debt / EBITDA (LTM)
1.7x
Net Debt
380,2
Cash 147,7
Gross Debt
551,1
Debt Ratios
Debt Repurchase 23,2
Cautionary Statement
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.
ALEJANDRO ELSZTAIN – II VP
MATÍAS GAIVIRONSKY– CFO
Tel +(54 11) 4323 7449
Corporate Offices
Intercontinental Plaza Moreno 877 24° Floor
Tel +(54 11) 4323 7400
Fax +(54 11) 4323 7480
C1091AAQ – City of Buenos Aires – Argentina
Independent Auditors PricewaterhouseCoopers Argentina
Tel +(54 11) 4850 0000
Bouchard 557 7º
C1106ABG – City of Buenos Aires
Argentina
NYSE Symbol: IRS
BASE Symbol: IRSA
www.irsa.com.ar
Contact Information