Témpore Properties SOCIMI SA
Corporate Presentation
September 2020
Introduction to Témpore Properties
Background Information
Témpore Key Figures (June-20)
▪ | Témpore Properties SOCIMI S.A. ("Témpore") is a leading SOCIMI in Spain's |
residential market, focused on providing affordable private rental housing | |
across Spain's major metropolitan areas. | |
▪ Témpore is a Spanish Real Estate Investment Trust (SOCIMI) that was | |
established in November 2017 by SAREB and listed on Madrid's Alternative | |
Exchange (BME Growth) in March 2018. Témpore owns and manages a portfolio | |
of more than 2,500 residential rental units - across c.283,000 sqm - valued at | |
more than €384 million in June 2020. The company is headquartered in Madrid. | |
▪ | In August 2019, TPG Real Estate Partners ("TPG") acquired a 75% controlling |
stake in Témpore from SAREB, who continue to hold more than 21% of the | |
SOCIMI's shares. TPG and SAREB have a shared vision and objective to enhance | |
and grow Témpore into one of the largest residential SOCIMIs in Spain, with a | |
sizeable portfolio of quality assets and a national footprint. | |
▪ After achieving significant stabilization in 2019 - by increasing portfolio | |
occupancy from 63% to 79% (84% excluding 2020 acquisitions) - Témpore is | |
now generating strong cash flow. | |
▪ | 7 buildings acquired in Q1 2020 for c.€41 million, with a current acquisition |
pipeline of more than €100 million, including standing assets and BTR projects. |
2,564
Residential units (1)
c.283,000 sqm
of residential area
€604
Average monthly rent (4)
16
Regions across Spain
84%
Occupancy by
Area (4)
56%
Loan-to-Value
as of June-2020(2)
▪ Led by the experienced management team, Témpore's business plan includes |
substantial portfolio growth via further asset and portfolio acquisitions, and an |
on-going improvement in the stabilization of the rental income profile, resulting |
in higher cash flow margins and yield to the shareholders. |
€41 M | €100 M+ |
Acquisitions in Q1-2020 | Acquisition pipeline (3) |
Notes:
- In addition, 2,884 associated parking and 2,041 associated storage units
- Témpore is financed by BNP Paribas
- Acquisition pipeline as of June 2020
- Excluding acquisitions in Q1-2020
2
Introduction to Témpore Properties
Portfolio Overview | Rental Trends in the Portfolio | |||||
Unit Mix Type | Portfolio Occupancy1 | |||||
# of bedrooms | % of total area |
4+ Bed | +15.8% | 78,9% | +4.6% | 83,5% | ||
1 Bed | ||||||
7% | ||||||
19% | ||||||
63,1% | ||||||
3 Bed | ||||||
35% | ||||||
2 Bed | ||||||
39% | ||||||
Dec-2018 | Dec-2019 | Jun-2020 | ||||
Asset Characteristics1 | Average Rents1 | |||||
Descriptive statistics | ||||||
€ per month | ||||||
1 | Private Housing | No social housing / VPO units | +5.0% | |||
+10.2% | €575 | €604 | ||||
2 | Average Area per Unit | 97 sqm per unit | ||||
€522 | ||||||
3 | Bedrooms per Unit | 2.4 beds per unit | ||||
4 | Bathrooms per Unit | 2.0 baths per unit | ||||
5 | Average Rent | €6.2 psm | ||||
6 | Asset Quality | Newly developed (low capex) | ||||
Dec-2018 | Dec-2019 | Jun-2020 | ||||
Notes: | ||||||
Source: Company information as of June 2020 | 1) Data Excluding Acquisitions in Q1 2020 |
3
Key Investment Highlights
1 Favourable Rental Demand Fundamentals
2 | Depressed Residential Supply Driving Rental Growth |
Vallecas, Madrid
3 | High-Quality Portfolio and Strategic Footprint |
Arganda Del Rey, Madrid
4 Resilient Portfolio with Limited COVID Impact
5 | Ability to Execute Turnaround Strategies |
Alboraya, Valencia
6 | Compelling Growth Story and Clear Business Plan |
7 Experienced Management Team and Leading Shareholder Group
Marques Larios, Logrono
4
1 | Increase in Demand for Rental Housing | |||||||||||||||||||||||
2019 Home Rental Housing Rate (% of Total) | Spanish Tenant Households (millions) | |||||||||||||||||||||||
4 | 2019 - 2022: | |||||||||||||||||||||||
+250k New | ||||||||||||||||||||||||
Tenant | ||||||||||||||||||||||||
Households | ||||||||||||||||||||||||
~800k new | 3 | |||||||||||||||||||||||
rental houses | ||||||||||||||||||||||||
in last 10 years | ||||||||||||||||||||||||
49% | ||||||||||||||||||||||||
37% | 38% | 39% | ||||||||||||||||||||||
34% | 2 | |||||||||||||||||||||||
29% | ||||||||||||||||||||||||
25% | ||||||||||||||||||||||||
20% | ||||||||||||||||||||||||
1 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019E | 2020E | 2021E | 2022E | |||||
2008 | 2019 | |||||||||||||||||||||||
Source: Oxford Economics, Eurostat, Idealista, Green Street Advisors as of Q1-2020 | ||||||||||||||||||||||||
Note: Estimates are inherently uncertain and subject to change. Actual results may vary |
Demand for rental housing is increasing strongly as part of a long-term secular trend
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2 Residential Rental Growth
Residential Rental Rates (€ psm per month)
20 | Madrid | Barcelona | Malaga | Sevilla | Valencia | |||||||
18 | ||||||||||||
16 | ||||||||||||
Madrid / Barcelona | ||||||||||||
2015 - 2019: | ||||||||||||
14 | ~6.5% CAGR | |||||||||||
12 | Secondary Cities | |||||||||||
2015 - 2019: | ||||||||||||
~8.0% CAGR | ||||||||||||
10 | ||||||||||||
8 | ||||||||||||
6 | ||||||||||||
Tempore 2020 GRI: | ||||||||||||
€6.2 psm / month | ||||||||||||
4 | ||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Source: Idealista as of Q1-2020
Spain's residential rents are in their sixth year of recovery following an extended recession
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3 High-Quality Portfolio Across Spain
Portfolio Overview
Oviedo |
Valladolid |
Logroño |
Zaragoza
2,564 residential units, 2,884 parking
spaces and 2,041 storage units
National footprint with presence in
Guadalajara | Barcelona | 16 regions |
Madrid |
Toledo |
Tarragona
Castellón | c.75% two- and three-bed apartments | |
Valencia
Sevilla |
Alicante
Murcia |
Most buildings built between
2008 and 2013
Málaga | Almería | ~70% GAV in |
Madrid, Barcelona, and Valencia |
Source: Company information as of June 2020
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3 High-Quality Portfolio Across Spain
Illustrative Asset Photos
Madrid | Valencia | Logroño | Madrid |
587 units | 170 units | 245 units | 79 units |
Alicante | Guadalajara | Tarragona | Madrid |
37 units | 88 units | 46 units | 17 units |
Source: Company information as of June 2020
Témpore's portfolio comprises newly built assets in Spain's major metropolitan areas
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41 Resilient Portfolio with Limited COVID Impact
Distribution of Tenant by | Evolution of Portfolio | |
COVID Aid Requests | Occupancy in 20201 |
+4.6% | 83,5% | |||
6% | 78,9% | |||
94% | ||||
No request | COVID aid request | |||
Dec-2019 | Jun-2020 | |||
Notes: | ||||
1) | Company information as June 2020; excluding Q1-2020 acquisitions |
Average Rents Across
the Portfolio1
€604 | |
+5.0 % | |
€575 | |
Dec-2019 | Jun-2020 |
Témpore's portfolio has seen a limited impact due to the COVID pandemic,
and has increased occupancy and rents by c.5% since Dec-2019
9
5 Ability to Execute Turnaround Strategies
Case Study 1: Arroyo de la Encomienda
- 42 undermanaged residential units largely vacant at acquisition
- 6 months post-acquisition, achieved structural occupancy and grew rental income more than 10x
Occupancy Evolution
93%
67%
12%
Dec-18 | Mar-19 | Jun-19 |
Annualized Gross Rental Income
€221
€152
€19
Dec-18 | Mar-19 | Jun-19 |
Case Study 2: Logroño
- 248 undermanaged residential units in 4 buildings with high vacancy at acquisition
- 1.5 years to achieve 90% occupancy, with a c.6x increase in rental income
Occupancy Evolution
90%
53%
18%
Dec-18 | Jun-19 | Jun-20 |
Annualized Gross Rental Income
€1.293
€442
€238
Dec-18 | Jun-19 | Jun-20 |
Témpore has a demonstrated ability to identify undermanaged assets in locations with high rental
demand and execute successful business plans to increase rental income and occupancy
10
6 Compelling Growth Story
Historical Gross Rental Income and NOI (€ millions)
1,383 | 2,216 | 2,564 | ||
residential units | residential units | residential units | ||
Original Asset Contribution | Second Asset Contribution | Recent Acquisitions |
(Nov-17) | (Dec-18) | (Q1-2020) |
€11,1 M
€7,3 M | €6,7 M | ||||||
€6,2 M | |||||||
€3,3 M | €4,1 M | ||||||
€1,4 M | €2,2 M | ||||||
€1,3 M | |||||||
FY 2018 | FY 2019 | H1 2020 | |||||
(Actual) | (Actual) | (Actual) | |||||
Gross Rental Income | NOI | EBITDA | |||||
Source: Company information as of June 2020
Témpore has a track record of meaningful growth in its historical financial metrics
11
7 Experienced Management Team
Strong Internal Management Team
Nicolás Díaz Saldaña
CEO
▪ Founding CEO of Témpore in 2017
▪ Previously Head of Rental Department at SAREB (2013 - 2017)
▪ 20 years of management experience with Metrovacesa and BBVA
▪ Degrees from Charles University (Prague)
and Universidad Autónoma of Madrid
Pelayo Barriga Bravo
CFO
- Joined Témpore as CFO in 2017
- Previously Finance Manager at SAREB (2013 - 2017)
- 15 years experience with Metrovacesa, Ahorro, and Arthur Andersen
- Degree from CUNEF
Víctor Vallejo Alonso
Asset Management Director
- Joined Témpore as Director, AM in 2019
- Previously Rental Department Manager at SAREB (2013 - 2019)
- 10 years experience with Grupo Myramar and Unicaja
- Degree from Universidad de Malaga
Rafael Paredes González del Amo
Corporate Development & Acquisitions Manager
- Joined Témpore in 2020
- Previously Corporate Finance Associate Director at CBRE (2015 - 2020)
- 10 years experience with CBRE, SAREB and Credit Agricole CIB
- Degree from Universidad Carlos III de Madrid
Source: Company data as of January 2020
Leading External Property Manager
Rafael Valerrábano
CEO & Managing Partner
- Founder of Básico (2008)
- Previously Head of Residential Development at Metrovacesa
- Previously CEO of Habitaria and Director of Ferrovial
- Degrees from E2-ICADE and IESE Business School
Básico
Overview
Residential
Management
Dedicated Básico team for Témpore
More than 60 professionals across:
Portfolio Management, Commercial, Technical, Finance &
Accounting, Compliance, Corporate Development, Call
Centre and Information Technology
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A Leading SOCIMI in the Residential Sector
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Disclaimer
Tempore Properties SOCIMI SA published this content on 15 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 September 2020 14:44:01 UTC