Varia US Properties AG · SIX:VARN
Varia US Properties — H1 2020 Earnings Presentation
22 slides from Varia US Properties's earnings presentation, Aug 27, 2020
Slide 1: Presentation Half-Year 2020 Results
PRESENTATION HALF-YEAR 2020 RESULTS 1 04/2017 Strictly confidential
Slide 2: Important Notice
IMPORTANT NOTICE This presentation includes forward-looking information and Although we believe that its expectations reflected in any statements, including statements concerning the outlook for such forward-looking statement are based upon reasonable our business. These statements are based on curr
Slide 3: Agenda
AGENDA AUGUST 27, 2020 Key achievements Financials HY 2020 Portfolio and growth strategy Outlook 3 Strictly confidential
Slide 4: Key Achievements
KEY ACHIEVEMENTS 4 04/2017 Strictly confidential
Slide 5: Key Achievements Half-Year 2020
KEY ACHIEVEMENTS HALF-YEAR 2020 ■ Key figures ■ Effective gross income of USD 54.6 million (HY 2019: USD 47.1 million) ■ EBITDA* of USD 23.1 million (HY 2019: USD 19.4 million) ■ Total portfolio value of USD 919.0 million (end of 2019: USD 915.1 million) ■ Funds from operations (FFO) of USD 11.4 mil
Slide 6: Varia US Properties at a Glance
VARIA US PROPERTIES AT A GLANCE Geographic breakdown of Varia Properties as of June 30, 2020 ■ Portfolio value of USD 919.0 million (end of 2019: USD 915.1 million) Arizona 15% Others 15% ■ 53 assets ■ 10,896 units Kansas 4% ■ 19 different States in the US Florida 13% Kentucky ■ Geographical diversi
Slide 7: Financials HY 2020
FINANCIALS HY 2020 7 04/2017 Strictly confidential
Slide 8: HY 2020 Key Figures (1/4)
HY 2020 KEY FIGURES (1/4) EFFECTIVE FAIR VALUE TOTAL GROSS PORTFOLIO INCOME HY 2019: USD 66.1 million INCOME (EGI) 1 ADJUSTMENT HY 2019: USD 47.1 million HY 2019: USD 19.0 million USD million 54.6 USD million -2.2 USD million 52.4 PROFIT FOR THE EBITDA2 EBITDA PERIOD HY 2019: USD 19.4 million MARGIN
Slide 9: HY 2020 Key Figures (2/4)
HY 2020 KEY FIGURES (2/4) FFO 1 FFO HY 2019: USD 8.8 million PER SHARE HY 2019: USD 0.98 USD million 11.4 USD 1.26 NAV NAV NAV PER SHARE PER SHARE PER SHARE HY 2019: USD 35.08 (excluding deferred taxes) (excluding distribution payable) HY 2019: USD 37.61 HY 2019: USD 37.13 million USD 35.43 USD 38.6
Slide 10: HY 2020 Key Figures – Financial 2020 (3/4)
HY 2020 KEY FIGURES – FINANCIAL 2020 (3/4) Rental income in Mio Total Income in Mio Rental income like for like* Rental income 70.00 55.00 60.00 50.00 50.00 45.00 40.00 40.00 66.07 30.00 52.40 35.00 46.39 20.00 43.28 30.00 10.00 25.00 0.00 20.00 HY 2017 HY 2018 HY 2019 HY 2020 HY 2017 HY 2018 HY 201
Slide 11: HY 2020 Key Figures – Financial 2020 (4/4)
HY 2020 KEY FIGURES – FINANCIAL 2020 (4/4) Debt in Mio FFO in Mio (Funds from operations) Funds from Operations (FFO) (EBITDA less Interest Expense) USD mio 600.00 566.62 62.0% 61.2% 505.48 514.69 14.00 60.5% 11.5 500.00 60.0% 455.24 429.95 429.95 59.1% 12.00 58.0% 400.00 57.4% 57.4% 10.00 310.74 31
Slide 12: Consolidated Statement of Profit and Loss
CONSOLIDATED STATEMENT OF PROFIT AND LOSS In USD million (For the six months ended) June 30, 2020 June 30, 2019 Rental income 48.8 42.4 Other income and insurance proceeds 5.8 4.7 Total income (less revaluation) 54.6 47.1 Net gain from fair value adjustment on investment property (2.2) 19.0 Total in
Slide 13: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Assets in USD million As of June 30, 2020 As of December 31, 2019 Total current assets 30.2 35.3 Total non-current assets 928.8 926.8 Total assets 959.0 962.1 Liabilities and equity in USD million As of June 30, 2020 As of December 31, 2019 Total current
Slide 14: Portfolio and Growth Strategy
PORTFOLIO AND GROWTH STRATEGY 14 04/2017 Strictly confidential
Slide 15: Portfolio HY 2020 Key Figures (1/2)
PORTFOLIO HY 2020 KEY FIGURES (1/2) PORTFOLIO NUMBER OF NUMBER OF VALUE1 PROPERTIES UNITS 2019: USD 915.1 million 2019: 53 2019: 10,896 USD million 919.0 53 10,896 AVERAGE INTEREST- GROSS MONTHLY RENT BEARING POTENTIAL PER UNIT DEBT RATIO INCOME 1 2019: USD 810 2019: 58.9% 2019: USD 117.6 million US
Slide 16: Portfolio HY 2020 Key Figures (2/2)
PORTFOLIO HY 2020 KEY FIGURES (2/2) AVERAGE MARKET OCCUPANCY EFFECTIVE VALUE PER UNIT RATE GROSS 2019: USD 83,989 2019: 93.8% INCOME 1 2019: USD 109.2 million USD USD 84,339 95.0% million 110.7 1 Data appraised by Colliers 16 Strictly confidential
Slide 17: Corona Pandemic
CORONA PANDEMIC ■ From mid-March onwards, the months were characterized by the COVID-19 pandemic ■ Varia focused on best in class resident service, while maximizing rent collections, reducing controllable expenses and maintaining the properties ■ Overall, Varia recorded a continuous successful rent
Slide 18: Green Initiative and Other ESG Initiative
GREEN INITIATIVE AND OTHER ESG INITIATIVE ■ As part of the Company-wide green initiative, Varia continued to implement its water conservation and energy saving programs at the beginning of the year ■ The efforts regarding data collection and analysis have been put on hold by the pandemic, but were r
Slide 19: Outlook
OUTLOOK 19 04/2017 Strictly confidential
Slide 20: Outlook 2020
OUTLOOK 2020 INVESTMENT → Further expansion of the portfolio with targeted acquisitions → One additional deal in Indiana likely closed in October → Look out for new investment opportunities offering attractive risk adjusted returns → Divestment of non-strategic assets (small, remote and below distri
Slide 21: Information
INFORMATION INVESTOR INFORMATION CONTACT INFORMATION Listing: SIX Swiss Exchange Jürg Stähelin, IRF Currency: USD Investor Relations / Corporate Ticker symbol: VARN Communications ISIN: CH 030 528 529 5 Phone: +41 43 244 81 51 Listing date: December 8, 2016 E-mail: [email protected] FI
Slide 22: Strictly confidential
22 04/2017 Strictly confidential