Varia US Properties AG · SIX:VARN
Varia US Properties — H1 2018 Earnings Presentation
25 slides from Varia US Properties's earnings presentation, Aug 30, 2018
Slide 1: Presentation Half-Year 2018 Results
PRESENTATION HALF-YEAR 2018 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 30, 2018 Key achievements Financials HY 2018 Portfolio and pipeline Outlook 3 Strictly confidential
Slide 4: Key Achievements
KEY ACHIEVEMENTS 4 04/2017 Strictly confidential
Slide 5: Key Achievements Half-Year 2018
KEY ACHIEVEMENTS HALF-YEAR 2018 ■ Significant 37% rise in effective gross income to USD 38.9 million (HY 2017: USD 28.4 million) ■ Gain from portfolio value adjustment of USD 7.4 million (HY 2017: 14.9 million; - 50.3%) ■ Total income up 7.2% to USD 46.4 million (HY 2017: USD 43.3 million) ■ Improve
Slide 6: Varia US Properties at a Glance
VARIA US PROPERTIES AT A GLANCE Geographic breakdown of Varia Properties as of June 30, 2018 ■ Total value of property portfolio of USD 710.6 million compared to USD 618.0 million at the end of 2017 ■ 50 assets comprising 9,162 units spread in 20 different States in the US ■ 16% of the properties ar
Slide 7: Financials HY 2018
FINANCIALS HY 2018 7 04/2017 Strictly confidential
Slide 8: HY 2018 Key Figures (1/2)
HY 2018 KEY FIGURES (1/2) TOTAL EFFECTIVE FAIR VALUE INCOME GROSS PORTFOLIO HY 2017: USD 43.3 million INCOME (EGI) ADJUSTMENT HY 2017: USD 28.4 million HY 2017: USD 14.9 million USD million 46.4 USD million 38.9 USD million 7.4 OPERATING OPERATING OPERATING PROFIT PROFIT MARGIN (including revaluatio
Slide 9: HY 2018 Key Figures (2/2)
HY 2018 KEY FIGURES (2/2) NET EARNINGS NAV PROFIT PER SHARE PER SHARE HY 2017: USD 12.1 million 1 HY 2017: USD 1.83 HY 2017: USD 34.03 USD million 12.2 USD 1.38 USD 35.82 1 without Non Controlling interests CASH-ON-CASH PORTFOLIO REPAIR AND YIELD ANNUALIZED RENT GROWTH 3 CAPEX 4 HY 2017: 10.4% HY 20
Slide 10: Consolidated Statement of Profit and Loss
CONSOLIDATED STATEMENT OF PROFIT AND LOSS In USD million As of June 30, 2018 As of June 30, 2017 Rental income 35.3 26.2 Other income 3.6 2.1 Net gain from fair value adjustment on invest. property 7.4 14.9 Total income 46.4 43.3 Total operating expenses 22.6 18.2 Operating profit 23.8 25.1 Profit b
Slide 11: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Assets in USD million As of June 30, 2018 As of December 31, 2017 Total current assets 56.6 94.7 Total non-current assets 719.7 573.5 Total assets 776.3 668.2 Liabilities and equity in USD million As of June 30, 2018 As of December 31, 2017 Total current
Slide 12: Operating Results (not audited)
OPERATING RESULTS (not audited) In USD million As of June 30, 2018 As of June 30, 2017 Realized income 38.9 28.4 Total Operating expenses (21.4) (14.9) Net Operating Income 17.5 13.5 Finance cost (8.3) (4.7) Operating results before taxes and 9.2 8.7 exceptional Expensed capex (1.2) (1.6) Exceptiona
Slide 13: Portfolio and Pipeline
PORTFOLIO AND PIPELINE 13 04/2017 Strictly confidential
Slide 14: Portfolio HY 2018 Key Figures (1/2)
PORTFOLIO HY 2018 KEY FIGURES (1/2) PORTFOLIO NUMBER OF NUMBER OF VALUE PROPERTIES UNITS 2017: USD 618.0 million 2017: 50 2017: 8,245 USD million 710.6 50 9,162 AVERAGE LOAN-TO- POTENTIAL MONHTLY RENT VALUE GROSS PER UNIT 2017: 60.52% INCOME 1 2017: USD 716 2017: USD 83.9 million USD 753 60.51% USD
Slide 15: Portfolio HY 2018 Key Figures (2/2)
PORTFOLIO HY 2018 KEY FIGURES (2/2) AVERAGE MARKET OCCUPANCY EFFECTIVE VALUE PER UNIT RATE GROSS 2017: USD 74,950 2017: 94.3% INCOME 1 2017: USD 78.1 million USD USD 77,559 93.7% million 87.8 1 Data appraised by Colliers 15 Strictly confidential
Slide 16: Adding Value to the Portfolio
ADDING VALUE TO THE PORTFOLIO ▪ In the first half-year 2018, a total of 454 units have been rehabbed (compared to the plan of rehabbing 421 units) ▪ An average rent increase of USD 109 per month has been achieved ▪ The average rehab cost per unit is USD 4,437 ▪ Average annual ROCE of 29.6% 16 Strict
Slide 17: New Acquisitions Committed Over the Period
6 NEW ACQUISITIONS COMMITTED OVER THE PERIOD 17 Strictly confidential
Slide 18: Where the New Acquisitions Are Located
WHERE THE NEW ACQUISITIONS ARE LOCATED 18 Strictly confidential
Slide 19: 6 Acquisitions in HY 2018 (1/2)
6 ACQUISITIONS IN HY 2018 (1/2) RIVER OAKS TIERRA POINTE CITY STATE ACQUISITION DATE CITY STATE ACQUISITION DATE Tucson Arizona January 2018 Albuquerque New Mexico January 2018 NUMBER OF NET RENTABLE GROSS NUMBER OF NET RENTABLE GROSS UNITS AREA POTENTIAL INCOME UNITS AREA POTENTIAL INCOME 300 212,0
Slide 20: 6 Acquisitions in HY 2018 (2/2)
6 ACQUISITIONS IN HY 2018 (2/2) WOODRIDGE VILLAGE AT MAYFIELD CITY STATE ACQUISITION DATE CITY STATE ACQUISITION DATE Cincinnati Ohio May 2018 Cleveland Ohio June 2018 NUMBER OF NET RENTABLE GROSS NUMBER OF NET RENTABLE GROSS UNITS AREA POTENTIAL INCOME UNITS AREA POTENTIAL INCOME 336 254,600 m2 3,0
Slide 21: Investment Strategy
INVESTMENT STRATEGY THREE INDIVIDUAL INVESTMENT STRATEGIES ■ Investment in US multifamily real estate properties situated in strong urban locations in supply- constrained markets ■ Mid- to long-term investment perspective through three individual investment strategies: A: Value-adding → Acquisition,
Slide 22: Outlook
OUTLOOK 22 04/2017 Strictly confidential
Slide 23: Outlook 2018
OUTLOOK 2018 INVESTMENT → Two additional deals in Ohio and Tennessee will be completed and closed in the third quarter 2018 → Further expansion of the portfolio with targeted acquisitions STRATEGY → Focus on the existing portfolio, especially in terms of renovation → Implementation of planned works,
Slide 24: Information
INFORMATION INVESTOR INFORMATION CONTACT INFORMATION Listing: SIX Swiss Exchange Jürg Stähelin 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] FINANCI
Slide 25: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION 25 04/2017 Strictly confidential