BriQ Properties REIC · 3/30/2020 · Company registered in General Commercial Registry Oct €...
Transcript of BriQ Properties REIC · 3/30/2020 · Company registered in General Commercial Registry Oct €...
BriQ Properties REIC
General Assembly MeetingMarch 30, 2020
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01Introduction toBriQ
02CompanyHighlights
03Corporate Governance
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01 Introduction to BriQ
€ 2,9 mRevenues 2019
€ 1,8 mAdj. EBITDA 2019 (1)
€ 1,6 mAdj. EBT 2019 (1)
€ 5,4 mNet Profit 2019
€ 37,6 mCash 31.12.2019
€ 84 m NAV 31.12.2019
38%
17%
28%18%
Free float 45,6%
Theodore Fessas (direct and indirect)Eftychia KoutsoureliInstitutional InvestorsΟther Investors
Shareholders’ structure
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BriQ Key Facts
Capital Structure Financials - snapshot
€ 60,1 m Market Cap (30.03.2020)
28,4%Discount to NAV (27.03.2020)
45,6%Free Float
25Properties
€ 60 mGAV (31.12.2019)
52.024 m2
GLA (31.12.2019)
98%Occupancy Rate (31.12.2019)
€ 4,2 mAnnualized Revenue (30.03.2020)
6,5%Gross Annualized Yield (2)
(31.12.2019)
Portfolio
Notes: (1) Adjusted EBITDA and EBT excludes profit from revaluation of assets and non-recurring expenses(2) Gross Annualized Yield is calculated as the result of Annualized Revenue at 31.12.2019 divided by GAV at 31.12.2019
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BriQ’s Story…
REIC operating license received
A recently established REIC, listed on Athens Stock Exchange (“ATHEX”) since 31 July 2017…
2016 2017 2018
May
€ 24,8 mInitial portfolio of 7 assets
ATHEX Listing
Jul
Company registeredin General Commercial Registry
Oct
€ 0,8 mAcquisition of Retail store on Kifisias Av.
€ 1,2 mAcquisition of Mixed Use building on Posidonos Av.
Nov
Dec
EGM approved the issuance of bond loan up to € 10 m
Jul
Oct€ 2,5 m (2 assets)Acquisition of Special Use building on FillelinonStr. and Office Space on AlamanasStr.
Jul
€ 3,6 mAcquisition of 4* Mr. & Mrs. White Hotel in Paros
€ 5,4 m (2 assets)Acquisition ofOffice building on I. GennadiouStr. and warehouse on Kifissou Av.
Dec
Oct
Dividend distribution(€ 0,035 / share)
Apr
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…until today
…continuously growing and improving its performance
2019
€ 3,3 m (2 assets)Acquisition of 4* Mr. & Mrs. White Hotel in Tinos and land property on Kifissou Av.
Aug
Apr
Apr
Dividend distribution€ 0,055 / share)
ΒοD approval of bond loan up to € 20 m
Jun
Aug
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€ 1,5 mAcquisition of office space (4th
floor) on Syntagma square (3, Mitropoleosstr.)
Sep
€ 2,5 m(2 assets)Acquisition of office spaces (2nd, 3rd and 4th floor) on 280, El. Venizelou Av. and retail on Rhodes island
Oct
€ 6,8 m(2 assets)Acquisition of mixed-use building (office + ground floor retail) in Athens CBD and land property on Paros island
Nov
€ 1,8 m(1 asset)Acquisition of a ground floor retail with mezzanine and basement in Vas. Sofias Ave, Athens
Dec
Successful completion of €50 m SCI
Dec
Financed from € 50 m Share Capital Increase
2020
General Assembly approval of €50 m Share Capital Increase (SCI)
Dividend distribution€ 0,039 / share)
Apr
€ 3,1 m (2 assets)Acquisition of a ground floor retail with mezzanine and basement in Creteand Mr. & Mrs. White Hotel in Corfu
Feb
€ 3,5 m (1 asset)Acquisition of 100% of the shares of thecompany that owns Plaza Hotel in Skiathos
Mar
Sep
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02 Company Highlights
22%
1%
17%52%
6% 2%
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Portfolio overview
GAV breakdown by asset type (as of 31.12.2019)
BriQ’s portfolio primarily comprises of office, logistics and medium size hotels
Main Tenants
Retail Stores3 assets
Special Use (Elderly Hosting Center)1 asset
Land2 assets
Hotels3 assets
Logistics Facilities4 assets
Office Spaces & Mixed Use9 assets
Source: Corporate Information
GAV€ 60 m
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2019 acquisitions
2. Office spaces 1.620m2,Kallithea (280, El. VenizelouAvenue) in Oct. 20193 office floors acquired in publicauction 100% leased at € 1,755 mi.e. 1.080 €/m2
1. Office space 419m2, Athens (3,Mitropoleos Street) in Sept. 20194th floor office space on Syntagmasquare acquired in public auction at€ 1,466 m i.e. 3.500 €/m2
4. Retail space 281m2, Rhodes (1,25th Martiou Str. & Ethel.Dodekanision Str.) in Oct. 2019Acquired in auction at € 0,765 m asvacant at 4.000 €/m2, leasedimmediately after purchase
3. Land 518m2, Naoussa, Paros(adjacent to MMW hotel) in Nov.2019Acquired at € 0,26 m and leasedimmediately to MMW’s hoteloperator as parking at high yield
Notes: (1) Prices per m2 are calculated on adjusted areas by applying a 0,3 coefficient on underground areas and 1,0 on above ground areas(2) Registration of deed with relevant authorities still pending for Property 4
5. Office & retail space 3.022m2,Athens (67, Aiolou Street) in Nov.20199-floor building in Athens CBDacquired at € 6,5 m i.e. 2.384 €/m2
6. Retail space 474m2, Athens(64, Vas. Sofias Avenue) in Dec.2019Ground floor retail with mezzanineand basement in Athens acquired at€ 1,75 m i.e. 5.566 €/m2
BriQ invested a total of € 18,7 m in the acquisition of six (6) properties in 2019
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2020 YTD acquisitions
3. Hotel Plaza 3.888m2, Skiathosisland in Mar. 202079 rooms bought at € 44k per roomLeased to reputable hotel operator(Hotel Brain)
1. Retail space 781m2, RethymnoCrete (8, Giampoudaki Street) inFeb. 2020Ground floor retail with mezzanineand basement in Rethymnoacquired at € 1,13 m i.e. 1.919 €/m2
2. Hotel Mr&Mrs White Corfu1.394m2 in Feb. 202038 rooms bought at € 79k per roomLeased to reputable hotel operator(Hotel Brain)
Notes: (1) Prices per m2 are calculated on adjusted areas by applying a 0,3 coefficient on underground areas and 1,0 on above ground areas(2) Registration of deed with relevant authorities still pending for Property 2
BriQ invested a total of € 7,6 m in the acquisition of three (3) properties in Q1 2020
31.12.2016 31.12.2017 31.12.2018 31.12.2019
GAV Revaluations/Other movements Acquisitions
97% 97%
69%
49%
31.12.16 31.12.17 31.12.18 31.12.19
31.12.2016 31.12.2017 31.12.2018 31.12.2019
Hotels Logistics Mixed Use Offices Retail Special Use Land
Asset uses expanded to hotels, elderly hosting center (special use) and retail
Portfolio growthPortfolio tripled in 3 years and at the same time diversified in new asset types and
in a wider universe of creditworthy tenants
...i
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(# of assets)
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97
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(Quest Group annualized rental income / Total annualized rental income)
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Source: Published Financial Statements, Corporate Information
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BriQ is committed – in line with its investment strategy – to reduce the % of rental income generated by Quest Group (1)
GAV tripled in 3 years
24,326,3
+ 2,0
+ 20,2
(in € m) 60,0
39,8
+ 13,5
1.039
1.387
1.617
2017 2018 2019
28.268 30.730
83.944
31.12.2017 31.12.2018 31.12.2019
1.2501.436
1.852
2017 2018 2019
1.8852.175
2.928
2017 2018 2019
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Financial Performance
Rental Income Adjusted EBITDA*
Adjusted EBT* NAV
(amounts in €000’s)
Source: Published Financial Statements*Excluding profit from revaluations and non recurring expenses
BriQ Proposition
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Dividend play
Targeting high dividend yield (net) in a low-yield environment
Focused strategy to further improve revenue and profitability growth, yielding growing returns to shareholders (cash dividends)
Proven acquisition
track record
Successful track record in value-added acquisitions (portfolio tripled in 3 years)
Clear investment focus on opportunities in specific categories of the Greek real estate market: (1) office space, (2) logistics and (3) hotels
Solid underlying assets
Solid hard asset base acquired at appealing valuations offering downside risk
Diversified portfolio, creditworthy tenants, long-term leases
Experienced
management
Competent management with proven track record
Reputable executive governance and ownership
Committed to best corporate governance practices
Healthy Balance Sheet
Lean and efficient company structure
Conservative capital structure with moderate leverage
Solid financials with headroom to fund new acquisitions and exploit operating leverage
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03 Corporate Governance
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BoD Executive competence
Theodore FessasPresident – Non Exec. Member
Founder and major shareholder of Quest Holdings
President of SEV - Hellenic Federation of Enterprises
Phaedon TamvakakisVice President -
Independent Non-Exec. Member
Founder and Vice Chairman of Alpha Trust Mutual Fund
Anna Apostolidou CEO – Exec. Member
17 years of RE experienceEx-Lamda Development executive (2003-2015)
Ex-Prodea BoD Member
Apostolos GeorgantzisExec. Member
CEO of Quest HoldingsPresident and
Managing Director of ACS
Markos BitsakosNon-Exec. Member
Deputy CEO of Quest Holdings
Eftichia KoutsoureliNon-Exec. Member
Major shareholder andVice Chairwoman of Quest
Holdings
Efstratios PapaefstratiouIndependent Non-Exec.
MemberEx- Finance Director of S&B Industrial Minerals Group
(1989 – 2011) Orymil S.A. BoD member
Eleni LinardouIndependent Non-Exec.
MemberChief Investment Officer
of Ethniki Asfalistiki
Corporate Governance Code Internal Regulation Code Internal Processes
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Committed to best corp. governance practices
Audit Committee Investment Committee
Nomination & Remuneration Committee
Six (6) BoD members Responsible for carrying out
Company’s investment strategy
Recommends new investments to the BoD
Main decision making body for investments
Three (3) BoD members, two (2) of which are independent Examines interim and financial
results Ensure compliance to the legal
framework and internal regulation code
Monitors and evaluates internal control system and framework
Oversees internal & external audit operations
Three (3) BoD members, two (2) of which are independent Develops Company’s
remuneration policy and monitors its application
Responsible for attracting and developing qualified management executives
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* http://www.briqproperties.gr/el/corporate-governance
New BoD, elected by General Assembly of 30.03.2020, comprises of eight (8) members It includes six (6) non-executive members, three (3) of which are independent Highly reputable professionals with proven investment and finance experience
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04 Appendices
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Profit & Loss Statement
Source: Published, Audited Financial Statements
(Αmounts in thousand €)From 01.01.2019
to 31.12.2019From 01.01.2018
to 31.12.2018
Rental Income 2.928 2.175
Net gain/(loss) from fair value adjustments on investment property
4.032 1.734
Direct property relating expenses (415) (291)
Employee benefit expenses (328) (243)
Other operating income / (expenses) net (325) (202)
Depreciation of assets (7) (7)
Depreciation of non-tangible assets (2) (1)
Amortization of Right of Use assets (4) -
Other profit / (loss) net (77) (3)
Operating profit 5.802 3.162
Finance income 235 3
Finance expenses (456) (44)
Finance costs - net (221) (41)
Profit/ (Loss) before tax 5.581 3.121
Corporate tax expense (198) (242)
Profit/ (Loss) for the year 5.383 2.879
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Statement of Financial Position(Αmounts in thousand €) 31.12.2019 31.12.2018
ASSETSNon-current assetsInvestment Property 59.793 39.623Property and equipment 165 169Right of Use Assets 5 -Intangible assets 3 5Trade and other receivables 122 34Current assetsTrade and other receivables 224 94Cash and cash equivalents 37.568 1,303Total assets 97.880 41.228
SHAREHOLDERS’ EQUITY AND LIABILITIESShareholders’ equityShare capital 75.106 27.777Reserves 2.866 82Retained earnings 5.972 2.871Total equity 83.944 30.730LIABILITIESNon-current liabilitiesBorrowings 11.954 8.930Retirement benefit obligations 8 6Trade and other payables 318 347Current liabilitiesTrade and other payables 1.157 373Current tax liabilities 36 132Lease liabilities 5 -Borrowings 458 710Total liabilities 13.936 10.498
Total shareholders’ equity and liabilities 97.880 41.228
Source: Published, Audited Financial Statements
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Cash Flow Statement
Source: Published, Audited Financial Statements
(Αmounts in thousand €)From
01.01.2019 to 31.12.2019
From 01.01.2018
to 31.12.2018
Cash flows from operating activities
Profit / (loss) before tax 5.581 3.121
(Increase)/ Decrease of fair value of investment properties (4.032) (1.734)
Interest paid (393) 1
Tax paid (294) (216)
Other cash flows for operating activities 838 85
Net cash flows from operating activities 1.700 1.257
Cash flows from investing activities
Purchases of property and equipment (3) (2)
Purchases of investment property (16.138) (11.721)
Net cash used in investing activities (16.141) (11.723)
Cash flows from financing activities
Share Capital increase 50.071 -
Expenses of Share Capital increase (1.583) -
Loans repayments (16.201) -
Proceeds from credit account 11.454 -
Proceeds from bond loan 7.622 9.65
Repayment of lease liabilities (4) -
Dividends paid (653) (417)
Net cash from financing activities 50.706 9.233
Net increase / (decrease) in cash and cash equivalents 36.265 (1.233)
Cash and cash equivalents at the beginning of the year 1.303 2.536
Cash and cash equivalents at the end of the year 37.568 1.303
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DisclaimerImportant Notice of Confidentiality and Disclaimer of Liability
THIS DOCUMENT MAY ONLY BE USED IN CONJUNCTION WITH AND SUBJECT TO THE TERMS OF THIS NOTICE
By having access to these materials (the “Materials”) by any means, you agree to the following:
The Materials have been prepared by BRIQ Properties REIC (the “Company”) for informational purposes only.The Materials contain general background information about the Company and are provided solely for use in the context of the presentation.No representation or warranty, explicit or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness orcompleteness of the information contained in the Materials. The Materials are not intended to be relied upon as legal, accounting, regulatory,tax or other advice, do not take into consideration the goals, or the legal, accounting, regulatory, tax or financial situation or the needs of theintended recipients and do not form the basis for an informed investment decision.
The information presented or contained in the Materials may refer to past dates specified in the Materials, is valid as of the date of theMaterials, is subject to change without notice and its accuracy is not guaranteed.The Materials contain statements about future events and expectations that are forward-looking. Such estimates and forward-lookingstatements are based on current expectations and projections of future events and trends, which affect or may affect the Company. Theseforward-looking statements are subject, among other things, to business, economic and competitive uncertainties and contingencies, whichrelate to factors that are beyond the Company’s ability to control or estimate precisely and that could cause actual results to differ materiallyfrom those expressed therein. In view of the above, you are cautioned not to place undue reliance on these forward-looking statements, whichspeak only as of the date of this document. The Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Presentation.The Materials and the presentation do not constitute or form part of and should not be construed as, an offer, or invitation, or solicitation of anoffer, to subscribe for or purchase any securities in any jurisdiction or an inducement to enter into investment activity or any form ofcommitment or recommendation by the Company.Each person is strongly advised to seek its own independent advice in relation to any investment, financial, legal, tax, accounting or regulatoryissues. These Materials and this presentation should not be construed as legal, tax, investment or other advice. Analyses and opinionscontained herein may be based on assumptions that, if altered, can change the analyses or opinions expressed. Nothing contained herein shallconstitute any representation or warranty as to future performance of any security, credit, currency, rate or other market or economicmeasure. The past performance of the Company is not necessarily indicative of future results.
No reliance may be placed for any purpose whatsoever on the information contained in the Materials, the presentation or any other materialdiscussed verbally, or on its completeness, accuracy or fairness.
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Thank You