IRSA Inversiones y Representaciones SA · BCBA:IRSA.CI
IRSA Inversiones y Representaciones SA — Investor Presentation (September 2023)
28 slides from IRSA Inversiones y Representaciones SA's investor presentation, September 2023
Slide 1: Institutional Presentation FY 2023
INSTITUTIONAL PRESENTATION 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. 480,000 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 Llao Llao Hotel (Bariloche - Patagonia) 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 Events for FY2023 and Subsequent
MAIN EVENTS FOR FY2023 AND SUBSEQUENT 1 STRONG FINANCIAL & OPERATIONAL PERFORMANCE 2 MALLS’ TENANT SALES GROWTH AND HIGHER OCCUPANCY 3 PREMIUM OFFICES’ OCCUPANCY IMPROVEMENT 100% OCCUPANCY REACHED IN “200 DELLA PAOLERA” 4 HOTELS’ STRONG EBITDA & HIGHER OCCUPANCY 5 STRONG REAL ESTATE ACTIVITY DURING
Slide 8: Same Shopping Malls Sales in Real Terms
SAME SHOPPING MALLS SALES IN REAL TERMS +27.0% +16.0% 636,842 548,935 501,443 371,341 267,946 FY19 FY20 FY21 FY22 FY23 COVID IMPACT 8
Slide 9: Shopping Malls Occupancy Evolution
SHOPPING MALLS OCCUPANCY EVOLUTION Recovering pre-pandemic levels after the impact of the exit of Walmart & Falabella 99.1% 98.8% 98.6% 98.5% 98.7% 97.4% 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 Argentin
Slide 10: Office Operating Figures
OFFICE OPERATING FIGURES STOCK RENT USD/sqm & OCCUPANCY A+ & A PORTFOLIO* (GLA: sqm) -11.3% 83,892 1,184 74,392 -26.4% 86.9% 86.9% 85.5% 8,316 83.7% 61,743 82.0% 12,649 26.3 26.4 25.9 1 floor 25.5 25.5 “200 Della 7 floors Suipacha Paolera” “200 Della Paolera” IVQ 22 IQ 23 IIQ 23 IIIQ 23 IVQ 23 1 flo
Slide 11: Hotels Operating Figures
HOTELS OPERATING FIGURES HOTELS – Portfolio rate & occupancy BA HOTELS – Rate & occupancy (USD/room & %) (USD/room & %) 61.7% 62.4% 64.5% 58.3% 44.6% 52.0% 0.8% 9.1% 135 109 140 92 76 IVQ 19 IVQ 20 IVQ 21 IVQ 22 IVQ 23 COVID LOCKDOWN 12.1% 0.6% LLAO LLAO – Rate & occupancy (USD/room & %) 70.4% 69.7%
Slide 12: Investment in 200 Della Paolera
INVESTMENT IN “200 DELLA PAOLERA” USD MILLION TOTAL GLA 35,872 sqm FY 23: 8 floors 9,500 sqm Floors 28 to 33 revalued in USD 93.8 M Remaining100% occupied FY 23 at (USD/sqm 9,869) sqm in FY 23 at USD/sqm + sqm sold 7,332 USD/sqm 30 28,540 20.4% 11,900 IQ 24: 1 floor 79.6% 1,184 sqm USD 12.2 M (USD/s
Slide 13: Subsequent Event: Sale of Suipacha 652/64 Building
SUBSEQUENT EVENT: SALE OF SUIPACHA 652/64 BUILDING PAYMENT 7 11.465 62 floors GLA (sqm) parking lots USD 6.75 M USD 3.00 M Cash 3 units Sale price USD 0.75 M (Córdoba & Maipú building) 10 semi-annual installments USD 2.50 M (1º at 24 months) USD 0.50 M Services provided by the buyer USD 6.75 M Hard
Slide 14: Subsequent Event: Sale of Quality S.A. (San Martín Plot)
SUBSEQUENT EVENT: SALE OF QUALITY S.A. (SAN MARTÍN PLOT) 159,996 sqm 80,027sqm USD 21.5 M Total surface Covered surface Already collected USD 22.9 M Sale price USD 1.4 M To be collected in 3 years term with 7% interest rate 14
Slide 15: 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 15.8 Polo Dot (BA city) Costa Urbana (BA city) 15 Total surface (mm sqm) # Land Reserves 6.9 Buildable surface (mm sqm) Capacity to almost double current rental portfolio Malls expansions (BA City) Montevideo (Uruguay) La Plata (B
Slide 16: Costa Urbana Project Work Progress
COSTA URBANA PROJECT WORK PROGRESS OBELISC NATIONAL PUERTO GOVERNMENT MADERO =1/3 PUERTO MADERO 866,806 Mixed-uses 15 – 20 years Buildable sqm Potential Project Premium ▪ IRSA has complied with the financial commitments with the City location Government and is in the process of transferring the publ
Slide 17: Preliminary render for illustrative purposes
17 Preliminary render for illustrative purposes 17
Slide 18: ESG Progress During FY 2023
ESG PROGRESS DURING FY 2023 “200 DELLA PAOLERA” BUILDING LEED CERTIFICATION WE INCREASED OUR SOCIAL INVESTMENT ( D I R EC T LY & T H RO U G H F U N DAC I Ó N I RSA ) +200 + 100.000 ARS 270 MM Social actions Beneficiaries Social investment +21% vs PF22 Relationship with +200 NGO WE CELEBRATED THE 75t
Slide 19: Digitalization Progress
DIGITALIZATION PROGRESS Registered users (million) 39% growth YoY 1.79 1.61 1.52 1.39 1.29 1.12 1.16 1.00 1.06 0.96 apr-21 jul-21 oct-21 jan-22 apr-22 jul-22 oct-22 jan-23 apr-23 jul-23 Accumulated Approved Transactions Monthly Active Users (in million) (thousands) 30% growth YoY 224 3.68 3.37 183 3
Slide 20: Financials
FINANCIALS alplals| Tito
Slide 21: Rental EBITDA Evolution by Segment
RENTAL EBITDA EVOLUTION BY SEGMENT USD MILLION Shopping Malls Surpassing pre-pandemic levels Office buildings 167 15 Hotels 14 131 12 115 8 26 95 18 9 28 139 93 44 0 89 58 25 19 FY19 FY20 FY21 FY22 FY23 COV I D - 1 9 21
Slide 22: Net Asset Value
NET ASSET VALUE 1 USD MILLION (AT OFFICIAL FX) LTV 10.5% 113 248 93 COSTA URBANA 672 1,011 33 2,364 2,116 405 Market Cap 573 P/NAV 708 0.3x Shopping Malls Offices Hotels Land reserves & Banco JV, Investees 2 & Gross Asset Net Debt Net Asset Value Prop. Under Hipotecario Others Value development 1- A
Slide 23: Deleverage Process Since 2020
DELEVERAGE PROCESS SINCE 2020 NET DEBT EVOLUTION – USD MILLION -67.2% 755 640 566 574 345 306 231 273 323 248 410 335 334 301 FY18 FY19 FY20 COVID-19 FY21 FY22 FY23 NET DEBT / RENTAL EBITDA 13.0x 2.8x 1.5x LTV 28.0% 13.0% 10.5% COVERAGE RATIO 2.0x 5.3x 31.6x 23
Slide 24: Debt Profile as of June 30, 2023
DEBT PROFILE AS OF JUNE 30, 2023 USD MILLION DEBT AMORTIZATION SCHEDULE Gross Debt 406.9 Cash & Eq. 159.3 Net Debt 247.6 147.3 104.1 80.8 Series XV 61.75 Notes Series XVI 28.25 Notes 47.2 Series XVII 25.0 Notes 27.5 Banking Debt 33.0 FY 24 FY 25 FY 26 FY 27 FY 28 24 2424
Slide 25: Dividends Distribution
DIVIDENDS DISTRIBUTION Next Shareholders’ Meeting proposal (to be held on Oct 5th, 2023) Cash dividend distributed To distribute a cash dividend for up to during FY 2023 ARS 64,000 MM (~USD 175 MM ~15% yield) 124.1 Amount ARS 4,340 MM ARS 21,900 MM Per ordinary DIVIDENDS EVOLUTION ARS 5.4144 ARS 27.
Slide 26: Shares Repurchase Programs
SHARES REPURCHASE PROGRAMS FY 2022 – FY 2023 Program FY 2023 Program (current) Period From March to September 2022 From June to December 2023 Next Shareholders’ Meeting Maximum proposal Up to ARS 1,000 million Up to ARS 5,000 million (to be held on Oct 5th, 2023) amount to invest Up to ARS 140 per s
Slide 27: 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 28: 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 28
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