IRSA Inversiones y Representaciones SA · BCBA:IRSA.CI
IRSA Inversiones y Representaciones SA — Investor Presentation (May 2023)
26 slides from IRSA Inversiones y Representaciones SA's investor presentation, May 2023
Slide 1: Institutional Presentation IIIQ FY 2023
INSTITUTIONAL PRESENTATION IIIQ FY 2023
Slide 2: Leading Real Estate Company in Argentina
LEADING REAL ESTATE COMPANY IN ARGENTINA Shopping malls 15 335,893 sqm ✓ 30 years acquiring, RENTAL developing and operating real SEGMENT 6 Office buildings 74,392 sqm estate Hotels ✓ Rental portfolio of approx. 500,000 sqm of GLA 3 79,000 sqm across Argentina ✓ 25 years listed on the A simplified v
Slide 3: Our Strategy
OUR STRATEGY OPERATING PROFITABILITY INNOVATION AND GROWTH SUSTAINABILITY Our premium locations and our Pioneers in innovative real estate We are part of the communities where leadership position in Argentina, developments in Argentina due to their our business units operate. We plan for together wi
Slide 4: Premium Portfolio
PREMIUM PORTFOLIO BEST LOCATIONS BA City SHOPPING OFFICE Dot Building MALLS BUILDINGS Philips Argentina Zetta BA City 200 Della Paolera Suipacha Intercontinental High income Area Mid Income Area Low Income Area 67% Expanding Corporate North Area Business Center BA Malls AAA Location market share HOT
Slide 5: Best Quality Assets
BEST QUALITY ASSETS 2022 Llao Llao Hotel (Bariloche - Patagonia) 2022 (under process) 200 Della Paolera (BA City) Zetta Building (BA City) 200 Della Paolera (BA City) 5
Slide 6: Resilient Rental Revenue Model
RESILIENT RENTAL REVENUE MODEL ARS Variable SHOPPING MALLS Rental revenues 3-year ARS LINKED 74% average term 50% Fixed TO The company collects the highest between a % of tenant monthly sales and a minimum rent (base ARS based (inflation linked) rent) Fixed I N F L AT I O N Other revenues 74%Of tota
Slide 7: Main Recent Events
MAIN RECENT EVENTS 1 IRSA MERGED WITH IRSA COMMERCIAL PROPERTIES 2 POST PANDEMIC RENTAL SEGMENT RECOVERY 3 STRONG RECOVERY OF CONSUMPTION IN SHOPPINGS 4 HOTELS’ RECORD OCCUPANCY & EBITDA 5 OFFICE SALES AT ATTRACTIVE PRICES SINCE 2020 6 COSTA URBANA PROJECT APPROVAL 7 DELEVERAGE PROCESS SINCE 2020 7
Slide 8: Same Shopping Malls Sales in Real Terms
SAME SHOPPING MALLS SALES IN REAL TERMS +33.0% +9.8% 110,616 100,759 83,150 73,240 73,490 IIIQ19 IIIQ20 IIIQ21 IIIQ22 IIIQ23 COVID IMPACT 8 8
Slide 9: Shopping Malls Occupancy Evolution
SHOPPING MALLS OCCUPANCY EVOLUTION Recovering pre-pandemic levels after the impact of the 99,1% exit of Walmart & Falabella 98,8% 98,6% 98,7% 98,5% 96.8% 94,9% 95,0% 94,8% 94,5% 94,7% 94,3% 93,7% 93,9% 93,2% 93,1% exit from Argentina 92,8% 91,5% 89,9% 89,5% 89,6% 89,1% 88,3% exit from Argentina IQ 1
Slide 10: Office Operating Figures
OFFICE OPERATING FIGURES STOCK OCCUPANCY BY CLASS (GLA: sqm) A+ & A 85.5% 82.0% 83.7% 86.9% 74.6% 115,640 114,475 Suipacha building 103,777 impact (empty) & 60% B 33.5% vacancy in Philips 30.9% 200 Della 24.9% 19.6% 200 Della 16.1% Paolera República Paolera 74,392 IIIQ 22 IVQ 22 IQ 23 IIQ 23 IIIQ 23
Slide 11: Hotels Operating Figures
HOTELS OPERATING FIGURES HOTELS – Portfolio rate & occupancy BA HOTELS – Rate & occupancy (USD/room & %) (USD/room & %) 68,6% 62,7% 51,7% 52,8% 35,1% 16,5% 45,2% 125 98 135 75 28,2% IIIQ 20 IIIQ 21 IIIQ 22 IIIQ 23 PANDEMIC LOCKDOWN LLAO LLAO – Rate & occupancy (USD/room & %) 83,2% 70,5% 230 234 231
Slide 12: Strong Office Buildings Sales Since 2020
STRONG OFFICE BUILDINGS SALES SINCE 2020 Bouchard 710 12 Floors 19 Floors* 200 Della Paolera July 2020 June 2020, June & Oct. 2021, 15,014 GLA sqm 22,647 GLA sqm March & Aug. 2022 March 2023 87.2 USD MM 203.9 USD MM 5,800 USD/sqm 9,000 USD/sqm ~8,516 remaining GLA *Does not include 4 floors sold to
Slide 13: Investment in 200 Della Paolera
INVESTMENT IN “200 DELLA PAOLERA” USD MILLION TOTAL GLA SURFACE 35,872 sqm 7 floors Floors 9 & 28 to 33 (8,316 sqm) sold 100% occupied revalued during in IIIQ 23 at Remaining sqm during IIIQ 23 IIIQ 23 Sold sqm 8,516 at USD/sqm USD/sqm 27,352 For 76.3% 23.7% 30 10,000 USD 81.2 MM (USD/sqm 9,700) 86
Slide 14: Costa Urbana Project Approval
COSTA URBANA PROJECT APPROVAL December 2021 70 ~900,000 Total Hectares Buildable sqm 70% Mixed-uses OBELISC For public uses Potential 30% 15 – 20 years NATIONAL PUERTO To develop Project GOVERNMENT MADERO CONTRIBUTIONS TO THE CITY: ▪ 50.8 hectares for public use (71% of the total area of the propert
Slide 15: Preliminary render for illustrative purposes
15 Preliminary render for illustrative purposes 15
Slide 16: Properties for Mixed Use Developments
Caballito (BA city) PROPERTIES FOR MIXED U S E D E V E LO P M E N T S San Martin (BA province) 16.0 Polo Dot (BA city) 18 Total surface (mm sqm) # Land Reserves 6.7 Buildable surface (mm sqm) Capacity to almost double current rental portfolio Malls expansions (BA City) Montevideo (Uruguay) La Plata
Slide 17: ESG Progress – FY 2022
ESG PROGRESS – FY 2022 200 Della Paolera E S Focus on education, health & G Merger between IRSA and IRCP Under LEED certification process gender diversity • Simplifies corporate structure +60% LEED Office portfolio 40 Group Social Actions • Increases Company’s float • Brings synergies and cost effic
Slide 18: Financials
FINANCIALS alplals| Tito
Slide 19: Financial and Operational Management Since 2020
FINANCIAL AND OPERATIONAL MANAGEMENT SINCE 2020 IRSA & IRCP MERGER Synergies and operational efficiency OFFICE ASSETS SALES 3 A+ buildings “200 DELLA PAOLERA” OPENING Lease and sale of 12 floors SG&A REDUCTION SHARES & WARRANTS ISSUANCE 80 MM shares and 80 MM warrants DEBT EXCHANGE & DEBT ISSUANCE L
Slide 20: Rental EBITDA Evolution by Segment
RENTAL EBITDA EVOLUTION BY SEGMENT USD MILLION Shopping Malls Surpassing pre-pandemic levels Office buildings 162 18 Hotels 131 17,9 12 115 8 26 95 18 9 28 126,3 93 44 0 89 58 25 19 FY19 FY20 FY21 FY22 LTM IIIQ23 COV I D - 1 9 20
Slide 21: Net Asset Value
NET ASSET VALUE 1 USD MILLION (AT OFFICIAL FX) LTV 10.9% 115 301 88 COSTA URBANA 680 1.001 33 2.344 2.043 414 Market Cap 440 694 P/NAV 0,2x Shopping Offices Hotels Land reserves Banco JV, Investees 2 Gross Asset Net Debt Net Asset Malls & Prop. Under Hipotecario & Others Value Proforma Value dividen
Slide 22: March 2023 Maturities: End of Refinancing Process
MARCH 2023 MATURITIES: END OF REFINANCING PROCESS USD MILLION PRE-IRCP23 EXCHANGE OFFER END OF THE PROCESS FINAL SITUATION (JUNE 2022) (FEBRUARY 2023) (MARCH 2023) 443.8 Series XV & XVI issuance Credit rating upgrade (April 2023) JULY 2022 • Amount: USD 90.0 mm EXCHANGE OFFER • Rate: 8.00 & 7.00% •
Slide 23: Deleverage Process Since 2020
DELEVERAGE PROCESS SINCE 2020 NET DEBT EVOLUTION – USD MILLION -60.2% 755 640 566 574 345 306 231 273 323 301 410 335 334 301 FY18 FY19 FY20 FY21 FY22 IIIQ23 Proforma dividends COVID-19 distribution (May-23) NET DEBT / RENTAL EBITDA 13.0x 2.8x 1.9x LTV 28.0% 13.0% 12.8% COVERAGE RATIO 2.0x 5.3x 8.2x
Slide 24: Debt Profile as of March 31, 2023
DEBT PROFILE AS OF MARCH 31, 2023 USD MILLION DEBT AMORTIZATION SCHEDULE Gross Debt 381.3 Cash & Eq. 185.3 Net Debt 196.0 300.8* proforma dividends distribution (may-23) 112.8 *FX as of March 31, 2023 103.9 Series XV 61,7 Notes 55.6 46.8 35.0 Series XVI 28,25 Notes 27.3 100% Banking Debt 42,2 27,3 F
Slide 25: Group Capital Markets Track Record
GROUP CAPITAL MARKETS TRACK RECORD NUMBER OF CAPITAL AMOUNT ISSUED GROUP LISTED VEHICLES NON-DEFAULT HISTORY MARKETS TRANSACTIONS +200 +USD 18bn 4 New York, Buenos Aires, & Sao Paulo Even in the worst Argentinean crisis (2001) & COVID-19 IRSA IPO APSA IPO (now IRCP) CRESUD FOLLOW LIABILITY LOCAL MAR
Slide 26: Contact Us
CONTACT US OUR ADRESS OUR EMAIL OUR PHONE OUR WEBSITE TWITTER Della Paolera 261 9th floor [email protected] (+54) 911 4323-7449 www.irsa.com.ar @IRSAIR 26
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