CORPORATE PRESENTATION - pei.com.co€¦ · CORPORATE PRESENTATION . Investment Highlights Colombian Real Estate Market Business Snapshot Table of contents. BUSINESS SNAPSHOT ONE

JUNE 2020

CORPORATE PRESENTATION

Investment Highlights

Colombian Real Estate Market

Business Snapshot

Table of contents

BUSINESS

SNAPSHOT

ONE PLAZA – MEDELLÍN

1

Pei at a glance

Diversification by asset type

Diversification by city

%lease income

1.81USD Bn

AUM1

1,043,196m2

GLA2

146Properties

30 92%Average occupancy

rate

6.3Years

Average lease

term

1,424Tenants

2,071Contracts under

lease

92%Tenants retention

rate

1.33USD Bn

Program´s

authorized amount

i-AAAApril-2020

BRC S&P

4,447Equity investors

0.76USD MM

ADTV3

IPC+0.9%Portfolio appraisal 6

IPC+8%Profitability 4

4.9%Average dividend

Yield 5

431,422

Securities

outstanding

1.24USD Bn

Equity value

1 Assets under management2 Gross Leasable Area3 ADTV= Average Daily Trading Volume4 Calculated for periods greater than 5 years5 Calculated as the average of the last 3 years of the paid dividend yield6 Calculated as the average of the last 5 years* Spot figures converted using a spot FX rate of 3,759

Cities in Colombia

REAL ESTATE PORTFOLIO SECURITY OUTSTANDING- TEIS

4

39%

30%

10%

18%

3%

%income

Essential

establishments

Others

Industrial

Retail

Office

56%

12%

8%

4%4%

17% Bogotá

Medellín

Cali

Barranquilla

Others

Sabana de Btá

268 323 534 590 817 947 1,280 1,598 1,998

3,597

4,585 5,435

6,277 6,809

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 jun-20

1. GAV: Gross Asset Value2. GLA: Gross Leasable Area3. Includes 2 education assets and 2 medical assets

4. Include cash, investments, accounts receivable, PP&E, and prepaid expenses

5 . Spot figures converted using a spot FX rate of 3,759

Portfolio

Portfolio GAV1 evolution (2007 – 2020 YTD)

Portfolio GLA2 evolution (2007 – 2020 YTD)

GAV (USD MM) USD 1.81 Bn (5)

GLA (ft2)

Office

Retail

Logistic and industrial

Others (3)

USD

1.81 Bn (5)

Thousands m2

Cash and Other Assets(4)Logistic and industrialOffice Retail Other Real Estate Assets(3)

COP thousands of millions

5

75 130 209 218 250 265 338

437 479

742 842

967 982 1,043

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 jun-20

Logistic and industrialOffice Retail Other Real Estate Assets(3)

(3)

(4)

314

600

712

53

131

jun-20

Cash and Other Assets

Others

Retail

Office


11,228,962 ft²

4,258,730

3,023,007

2,587,625

967,210

392,391

Essential establishments

11,228,962 ft²

Strong corporate governance

Robust operational and financial

performance, resulting in attractive

and stable returns

Experienced asset manager

with proven track record and

strong corporate governance

Pioneer and leader in

Colombian Real Estate

Market

Best-in-class and

diversified real estate

portfolio with high quality

tenants

Diversified pipeline of organic

and inorganic opportunities

Unparalleled track record

of delivering accretive

growth

6

7

ELEMENTO- BOGOTÁ

I N V E S T M E N T

H I G H L I G H T S

2

Best-in-class real estate assets

By economic sector(2)

By asset type(1) By city(2)

By tenant(2) (no tenant is > 15%)

Diversification is the core of the strategy

1. Weighted by monthly income2. Weighted by rental income

PORTFOLIO GUIDELINES INCLUDE

SPECIFIC LIMITS ON CONCENTRATION

WHERE DIVERSIFICATION IS A CORE

COMPONENT OF THE STRATEGY

• Revenue per tenant is limited at 20%

of total revenue

• Revenue by asset class maximum of

40%

• Exposure by asset class cannot be

exceed of 70% of revenues

• Concentration per city, on a revenue

basis, cannot exceed:

- 85% for Bogotá,

- 50% for Medellín and Cali

- 30% for other cities

8

39%

30%

10%

18%

3%

Essential

establishments

Others

Industrial

Retail

Office

56%

12%

8%

4%4%

17% Bogotá

Medellín

Cali

Barranquilla

Others

Sabana de Btá

12%

5%

4%

3%3%

73%

Others

Grupo Bolivar

Almacenes Exito

Nutresa

Avianca

Famoc de Panel

17%

15%

8%

7%5%4%

4%

3%

3%

3%

31%

Banks

Retail (food)

Services (general)

Retail (non-food)

Logístic

Massive consumption

Oil and gas production

Airlines

Diversified Industry

Health services

Others

Best-in-class tenants

1. Investment grade either in local or global basis. Some tenants are not rated2. Historic retention rate is calculated by dividing total number of contracts renewed by total number of contracted to be renewed at any given date

High quality tenants…

Some of our premium – long term tenants(1)

Diversified Tenant profile

8.3%Average physical

vacancy 2020

Robust lease term profile (as of June 30, 2020)…

9.5%Average economic

vacancy 2020

9

6.7

0.73.3

3.2

3.0

2.8

28.4

Office

Otros

Otros

%Canon de

arredramiento mensual en el Pei

4.4

3.0

1.61.61.6

8.3


Otros1

%Canon de


0.9

0.9

0.1

0.5

Others

Otros

%Canon de


1. Includes 1.2% of Éxito stake and 0.1% of Davivienda stake in the logistic and industrial category.

4.2

3.6

0.60.5

0.419.6

Retail

Otros

%Canon de


110.74.84.43.33.2

72.6

2T 2020

6%

11%6%

12%

5%

59%

2020 2021 2022 2023 2024 2025-2068

Logistic and industrialOffice Retail Other Real Estate Assets(

23 3045 50 63 71

95 106138

226

248

312

148

0

60

120

180

240

300

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Jun 20YTD

27 3552 58 73 83

112 126165

273307

385

190

0

60

120

180

240

300

360

420

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Jun-20YTD

31 4263 69 86 100

133153

194

326364

466

225

0

60

120

180

240

300

360

420

480

540

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Jun-20YTD

Strong financial & operational performance

22 2440 45 50

65 7797 105

162 163

218

145

0

60

120

180

240

300

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020YTD

Net rev enues Net opera t ing income

Ebi tda Cash f low d is t r ibu ted to inv estors Jun -2020 (2 )

USD 60 MM(1) USD 51 MM(1)

USD 47 MM(1)

1. Spot figures converted using a spot FX rate of 3,7592. Doesn´t include refundable income3. Cash flow distributed to investors are obtained by subtracting from Operating FCF any gains / losses from the sale of properties, provisions for the reacquisition fund, amortization of financial debt, and the premium / discount from issuance of TEIS.

NOI

Margin

EBITDA

Margin

78.3% 81.2% 82.2% 82.7% 84.2% 84.0% 83.9% 83.5% 85% 83.7% 84.3% 82.6% 86.3%

76.4% 74.0% 71.3% 71.4% 72.2% 71.5% 71.5% 70.5% 71.1% 69.3% 68.1% 66.9% 68.2%

USD 38 MM(1)

(2)

Summary of key financial metrics

(2)

(2) (2)(2)

COP thousands of millions COP thousands of millions

COP thousands of millions COP thousands of millions

10

63.92%12.70%

11.61%

10.12%1.66%

Equity investors

262 285531

556569

763976

1,2151,547

2,151

3,504 3,646

4,630 4,656

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 jun-20

24 31297 416 386 537

763

1,179

1,6471,854

3,317

3,475

4,4534,447

0

700

1,400

2,100

2,800

3,500

4,200

4,900

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 jun-20

Investor composition (by total invested amount)

As of June 30, 2020

Investor base breakdown (by number of investors)

As of June 30, 2020

Number of investors

2007-2020 YTD

Equity

2007-2020 YTD

1. All figures converted using spot COP/USD FX rate of 4,065 as of March 31, 20202. Corresponds to following pension fund portfolios: Porvenir (5), Protección (6), Colfondos (5), Skandia (7) and voluntary pensiones of Alianza (1), Allianz(1) , Fidudavivienda (1) and BTG Pactual (1)3. Títulos Estrategias Inmobiliarias: Pei security listed in colombian stock exchange – BVC

#

Pension

Funds2

Other

Institutional EntitiesRetail

Investors

Other Legal

Entities

Insurance

Companies

431,422

TEIS (3)

4,447Investors

8 9 31 794 3,605

COP thousands of millions

USD 1.13 Bn

Pension Funds

Insurance Companies

Other Legal Entities

Other Institutional Entities

Retail Investors

11

Among the most traded securities in the colombian stock exchange

3

6

9

12

NAV (COP)

Increasing returns across time(1)

Offerings (2007 – 2020)

COP MM

5.00 5.45

6.15

7.16 7.84 7.97

8.66 8.96 9.40

9.97 10.50

13.4% 12.6% 12.2% 11.7% 11.5% 11.7% 11.2% 9.9% 9.0% 9.4%10.8%

0%

10%

20%

30%

40%

0

3

6

9

12

I(Feb-07)

II(Nov-07)

III(Oct-09)

IV(Mar-12)

V(Jul-13)

VI(Sep-14)

VII(Dec-15)

VIII(Sep-16)

IX(Jun-17)

X(Dec-17)

XI(Jun-19)

Subscription Price Returns

%

Growing liquidity

ADTV and number of trades

0.1 0.20.4 0.4 0.3 0.5

0.7 1.11.5

2.3

4.9

3.23.4 2.8

20 50 317545 537

764

1,221

1,832

2,5622,165

3,834

3,226 3,291 3,254

-

700

1,400

2,100

2,800

3,500

4,200

0.0

1.5

3.0

4.5

6.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Jun-20LTM

# Transactions ADTV in COP MM

Pei available to

retail investor

TEIS price in secondary market vs. Nav(3)

%

83.0%

87.3%

92.0%

80%

90%

100%

110%

120%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 jun-20

Minimum Average Maximum NAV

TEIS reference price performance(3)

COP MM

COP 10.8 MM

1. Returns calculated estimating IRR for each offering since inception and using TEI’s reference price as of March 31,20202. All figures converted using a COP/USD rate of 4,0653. Reference price reflects NAV adjusted for property revaluation and accumulated performance* NAV= Net Asset Value

TEIS have typically

traded at a premium

to reference NAV

USD 2,871(2)

USD 0.76 MM(2)

5%

% of Traded Days

Pei available to

retail investors

Pei available to

retail investor

9% 20% 47% 51% 63% 74% 78% 92% 93% 96% 97% 97%USD 2,793(2)

COP thousands

of millions COP MM

90%

12

Market Price has dropped since mar-2020 as a covid effect for PEI and other real estate comparable securities.

Profitability

58% 65%

42% 35%

5 years LTM

Cash Flow Valorization

Profitability

1 Values refers to the year end

*LTM = Last Twelve Months

13

Pei is a long-term income vehicle, permanently incorporating new assets; therefore, it is important to analyze its profitability for stabilized periods (5 years

onwards), as such periods reap the stabilization benefits of the properties’ operation.

2014 2015 2016 2017 2018 ene-19 feb-19 mar-19 abr-19 may-19 jun-19 jul-19 ago-19 sep-19 oct-19 nov-19 dic-19 ene-20 feb-20 mar-20 abr-20 may-20 jun-20

Desde el inicio 5 años LTM YTD

1 1 1 1

17%

12%

11%

10%

9%

8%

7%

16%

15%

13%

14%

1

Strong financial & operational performance

11%

0%

5%

27%

19%21% 21%

19%23%

21%

31%

24%28%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 jun-20

Debt / equity (%)

(2008 – 2020)

Loan to value (%)

(2008-2020)

Interest coverage ratio (%)

(2008-2020)

65x

12x6x

32x

16x

7x11x

6x 3x 2x 4x 3x 3x

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Jun-20LTM

40% Limit

13%

0%

6%

39%

23%27% 27%

25%

39%

28%

46%

33%

44%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 jun-20

1.6x

0.0x0.7x

4.4x

2.9x

3.8x 3.5x 3.6x

6.1x

4.4x

6.8x

4.9x

6.4x

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Jun-20LTM

Debt / EBITDA (Times)

(2008-2020)

14

COLOMBIAN

REAL ESTATE

MARKET

TORRE SURA & TORRE BOLIVAR - BOGOTÁ

15

3

Real estate market evolution in Colombia

Bogotá Medellin

Source: Colliers- Values in thousands of m2

Market InventoryPei Inventory Pei Vacancy Market Vacancy

O f f i c e

R e t a i l

L o g i s t i c a n d

I n d u s t r i a l

188 207 207 207 207 207 228 228

2,521 2,726 2,772 2,773 2,797 2,826 2,880 2,880

3.5% 3.7%1.7%

4.7% 5.2%3.1%

11.5%14.4%

12.1% 11.1% 9.6% 9.1% 8.3% 8.7%

7.4% 7.5%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

2017 2018 2019-IQ 2019-IIQ 2019-III Q 2019-IVQ 2020-QI 2020-QII

35 35 35 35 36 36 36 36

657 703 703 712 712 730 742 742

23.0%

0.5% 0.5%0.5% 0.5% 0.5% 0.0% 0.0%

11.0%9.1%

7.1% 8.3% 9.2% 9.5%7.0% 6.6%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%


90 90 90 90 90 90 107 107

1,531 1,632 1,632 1,743 1,743 1,810 1,810 1,810

14.0% 17.2% 17.2% 17.2% 13.4% 10.0% 8.2% 8.7%

12.4%7.3% 7.3%

7.3%5.9%

7.1% 5.8% 6.5%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%


56 62 62 62 62 62 62 62

706880 892 892 892 942 942 942

0.7% 0.6% 0.9% 0.7% 1.0% 0.9% 1.0%

6.20%3.3% 4.5% 4.4% 4.1% 4.0% 3.6% 3.0%

3.0%

-40.0%

-35.0%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%


33 33 33 33 33 33 33 33

697 705 709 709 757 813 813 813


175 175 175 175 175 176 176 176

3,743 3,828 3,842 3,842 3,861 3,943 3,948 3,969

2.8% 3.8% 3.8% 2.6%

10.2% 9.9% 10.0% 10.0%

17.9% 17.7% 17.4% 17.6% 16.5% 15.4% 14.8% 16.6%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%


0%

16% 16% 16%

49%

0% 0% 0%20%

8.5% 7.0% 7.0% 11.1%

10.1%13.5% 13.3%

16

Market Inventory

31 62 62 62 68 68 68 68

362362 362 362 362 362 362 362

4.3% 4.5% 5.6% 5.6% 5.6% 5.6% 4.9%8.0%

10.1% 11.2% 11.3% 11.7% 11.8% 12.6% 12.3% 12.3%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%


Real estate market evolution in Colombia

Barranquilla Cali

Source: Colliers- Values in thousands of m2

O f f i c e s

R e t a i l

Pei Inventory Pei Vacancy Market Vacancy

225 225 233 233 236 236 236 236

17.1%

29.2% 29.1%25.1% 24.0% 25.7% 25.0% 23.9%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%


4… 53 53 53 53 53 53 57

1,156 1,184 1,190 1,190 1,201 1,227 1,235 1,235


76 96 96 96 96 96 96 96

507 511 511 511 511 511 511 511

0.0% 0.0% 0.0% 0.0%

9.7% 10.0% 9.7% 9.7%11.0%

5.0% 5.8% 5.2%

4.7% 4.8% 5.3% 6.7%

-80%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%


1 120 20 20 20 20 19

315 339339 339 339

393 393 393


6 6 6 6 6 6 6 6

150 156 156 157 157 156 164 164

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

6.5%11.0% 9.3% 9.9% 9.9% 11.2% 9.1% 8.8%

-80%

-20%


L o g i s t i c a n d

I n d u s t r i a l 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

7.0% 10.0% 9.9% 8.3% 12.0% 10.5% 11.7% 11.7%

0.0% 0.3% 0.3% 0.1% 0.4% 0.0% 0.9% 3.6%

5.5% 5.8% 5.7% 5.7% 5.4% 5.2% 5.0% 5.2%

17

JIMENA MAYA

Investor Relations Office

Tel. (+ 571) 744 8999 Ext. 4202- 4270

[email protected]

[email protected]

www.pei.com.co

mailto:[email protected]

mailto:[email protected]

Documents

CORPORATE PRESENTATION - pei.com.co€¦ · CORPORATE PRESENTATION . Investment Highlights Colombian Real Estate Market Business Snapshot Table of contents. BUSINESS SNAPSHOT ONE