VBARE Iberian Properties SOCIMI : Results presentation for the 6 months interim period ended on June 30, 2019

THIS RELEVANT FACT IS A TRANSLATION OF THE SPANISH VERSION. IN CASE OF ANY

DISCREPANCIES, THE SPANISH VERSION SHALL PREVAIL.

Madrid, 8 August 2019

Pursuant to the terms set forth in Article 17 of EU Regulation No. 596/2014 with regard to abuse of markets and Article 228 of the Consolidated Text of the Stock Exchange Law, approved by Royal Legislative Decree 4/2015 dated October 23 and other related provisions, as well as Notice 6/2018 of the Mercado Alternativo Bursátil ("MAB"), VBARE Iberian Properties SOCIMI, S.A. (the "Company" or "VBARE") hereby publishes the following:

RELEVANT FACT

By means of the present relevant fact, it is attached the Results Presentation for the 6 months period ended on June 30, 2019.

The documentation is also available to the market on the Company´s website (www.vbarealestate.com).

We remain at your disposal for any clarification that may be necessary.

Mr. Íñigo Sánchez del Campo Basagoiti

Non-Board Secretary of the Board of Directors

VBARE Iberian Properties SOCIMI, S.A.

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RESULTS PRESENTATION FOR THE 6 MONTHS

PERIOD ENDED ON JUNE 30, 2019

August 8, 2019

DISCLAIMER

This document has been prepared by VBARE Iberian Properties SOCIMI, S.A. (the "Company") and its subsidiaries (the "Group").

This Presentation does not constitute or form part of, and should not be construed as, any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any purchase of or subscription for securities of the Company should be based solely on each investor's own analysis of all public information, the assessment of risk involved and its own determination of the suitability of any such investment. No reliance should be placed and no decision should be based on this Presentation.

This Presentation may not be copied, distributed, reproduced or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient to any other person, for any purpose other than the above. In addition, this Presentation may not be distributed, disseminated, published, or in any other way taken or transferred to any jurisdiction where it would be contrary to applicable law. Distributing this Presentation in other jurisdictions may be subject to restrictions according to applicable law and the recipients of this Presentation must find out for themselves the restrictions and their fulfilment. Not complying with the restrictions may be a breach of applicable law.

The information contained in this Presentation does not purport to be comprehensive or to include all information that may be required to fully analyze the issues referred to therein. Accordingly, no representation or warranty, express or implied, is made as to the truth, accuracy or completeness of the information in this Presentation. None of the Company, any of its subsidiaries, or any of their respective directors, officers or employees accepts any responsibility or liability whatsoever for any loss howsoever arising from any use of this Presentation or otherwise arising in connection therewith.

The information and opinions contained in this Presentation are provided as at the date of the Presentation and are subject to verification, correction, completion and change without notice. In giving this Presentation, no obligation to amend, correct or update this Presentation or to provide the recipient with access to any additional information that may arise in connection with it is undertaken.

This Presentation may include forward-looking statements relating to, among others, the Company's financial position, operating results, strategy, plans, targets or goals. Forward-looking statements are subject to risks, uncertainties and factors beyond the Company's control that may result in actual results materially differing from prospective results or the results implied in the forward-looking statements. Therefore, the results and actual performance may materially differ from those expressed or implied in the forward-looking statements. In the same way, the forward- looking statements must not be deemed to entail any statement, promise or warranty of the accuracy or completeness of the assumptions or hypotheses on which the forward-looking statements, expectations, estimations or provisions are based or, in the case of assumptions, of their full inclusion in the Presentation. No undue reliance should be placed on the forward-looking statements.

The Company and its employees, managers, directors, advisors, representatives, agents or affiliates accept no liability (for fault or negligence, whether direct or indirect, contractual or non- contractual) for damages caused by using this Presentation or its content or that, in any manner, relate to this Presentation.

When receiving or attending the Presentation, the recipient declares that he or she agrees with and thus is subject to the above restrictions.

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INDEX

1. KEY FIGURES
2. VBARE AT A GLANCE
3. H1 2019 PERFORMANCE
4. FINANCIAL INFORMATION
5. H1 2019 SUBSEQUENT EVENTS

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1. KEY FIGURES

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KEY FIGURES

• €1.7M PROFIT IN H1 2019 (+40%)
• +39% GROSS RENTAL INCOME INCREASE
• +17% GAV INCREASE vs DECEMBER 2018
• +51.6% ACCUMULATED GAV PORTFOLIO REVALUATION OVER TOTAL INVESTED CAPITAL
• +29% EARNINGS PER SHARE VS. JUNE 2018
• EPRA NAV PER SHARE 20% DISCOUNT VS. SHARE PRICE

		June 30, 2019	June 30, 2018	Var %
KEY RESULTS FIGURES
Gross Rental income (GRI)	€ k	902	648	39%
Net Rental income	€ k	618	410	51%
Net Rental Income Margin	%	68.5%	63.3%	8%
Profit for the period	€ k	1,676	1,195	40%
Basic and diluted earnings per share	€	0.71	0.55	29%
		June 30, 2019	December, 31 2018 Var %
KEY FINANCIAL HIGHLIGHTS
Portfolio Gross Value (GAV)	€ k	58,665	50,095	17%
EPRA NAV	€ k	38,399	37,145	3%
EPRA NAV per Share	€	16.2	15.7	3%
Net Financial Debt	€ k	19,226	11,514
LTV Ratio	%	34.20%	33.50%
Financial cost	%	1.75%	1.75%
Cash at Banks	€ k	783	5,059
		June 30, 2019	December, 31 2018 Var %
KEY OPERATIONAL HIGHLIGHTS
Number units	Units	301	272	11%
Total GLA	sqm	17,717	16,200	9%
Residencial GLA	sqm	16,448	15,139	9%
Annualized Portfolio Current Passing Rent	€ k	1,746	1,646	6%
Current Residential Passing Rent	€/sqm/Month	11.0	10.86	1%
Portfolio Annual Reversionary Rent	€ k	2,958	2,600
Average Occupancy Rate stabilized assets	%	91.87%	90,11%

Key Financial Figures according to International Financial Reporting Standards as adopted by the European Union (IFRS -EU)	5
GAV is based on Savills Aguirre Newman Valoraciones y Tasaciones S.A.U. external independent appraisal as of June 30, 2019 and December 31, 2018

2. VBARE AT GLANCE

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PORTFOLIO OVERVIEW

NUMBER OF UNITS:	301
GLA:	17,717 SQM
AVERAGE OCCUPANCY RATE IN 2019:	91.87%
TOTAL INVESTED CAPITAL:	€38.7M
INVESTED CAPITAL € PER SQM:	€2,183
GAV:	€58.7M
GAV € PER SQM:	€3,311
CURRENT PASSING RENT:	€1,746M
ANNUAL REVERSIONARY RENT:	€2,958M
GROSS YIELD ON INVESTED CAPITAL OVER STABILIZED ASSETS:	7.56%

Information as of June 30, 2019
Gross yield on invested capital calculated over stabilized assets
Average occupancy calculated over stabilized assets	7
Stabilized assets are those assets that do not require significant capex investments and are mostly leased at market rents

PORTFOLIO OVERVIEW

TYPE OF OWNERSHIP

17%

		Entire Building
8%		Scattered asset
6%		Units in the same building
(>50%)
		Units in the same building
69%	(<50%)

PORTFOLIO LOCATION

69%
22%
6%	3%

Inside M30	Outside M30	Metropolitan Area of	Other Cities
		Madrid

UNITS BY SURFACE

10%

19%

0-35 sqm

35-50 sqm

29%	50-75 sqm

>75 sqm

42%

NUMBER OF BEDROOMS

13%	1%	12%
			Studio
			1 Bedroom
			2 Bedrooms
29%			3 Bedrooms
		45%	4 Bedrooms

MAJORITY OF THE PORTFOLIO LOCATED IN ASSETS WITH >50% OWNERSHIP, IN MADRID

CITY CENTER AND WITH THE APPROPRIATE SIZE

Information as of June 30, 2019

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KEY METRICS

€120,774		56 SQM
AVERAGE ACQUISITION		AVERAGE SQM
COST PER UNIT		PER UNIT

28.5 26%

MONTHS	VBARE TENANTS'
AVERAGE
EFFORT RATE
LEASE TERM

€609

AVERAGE LEASE RENT

PER UNIT

€11.0

AVERAGE LEASE RENT

PER SQM

1.58

TENANTS

PER UNIT

Information as of June 30, 2019

Average lease rents without parkings, storage untis nor Old Leases9Average lease term without Old Leases

3. H1 2019 PERFORMANCE

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PORTFOLIO EVOLUTION (I)

GLA (SQM)

		17,717
	16,200
	+50%
10,795
2017	2018	Q2 2019

BUILDING OWNERSHIP > 50% (% GAV)

	73%	+5%	77%
54%
2017	2018		Q2 2019

	UNITS
		301
	272	+11%
	+38%
197
2017	2018	Q2 2019

MADRID CITY CENTER INSIDE M30 (% GAV)

		+8%	69%
	64%
52%
2017	2018		Q2 2019

SIGNIFICANT PORTFOLIO GROWTH WITH IMPROVED ASSET QUALITY

Information as of June 30, 2019

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PORTFOLIO EVOLUTION (II)

AVERAGE GROSS OCCUPANCY (STABILIZED ASSETS)

+2%91.87%

90.11%

+9.4%

82.39%

2017

2018

Q2 2019

	QUARTERLY RELETTING SPREAD AND LEASES SIGNED
35%	(AVERAGE RELETTING SPREAD PER CONTRACT: 17.94%)		35
			31
	29
30%				30
25%			21.37%		25
		20
20%	16.73%	16.10%	22	17.83%	20
15%					15
10%					10
5%					5
0%					0
	Q3 18	Q4 18	Q1 19	Q2 19
		Reletting Spread	Leases Signed

LEASE PAYMENT DEFAULT

6.10%
	-43%
	3.50%
		-29%
		2.47%
2017	2018	Q2 2019

% LEASES COVERED BY DEFAULT INSURANCE

28.57%

+53%

18.67%

0.00%

2017

2018

Q2 2019

EXCELLENT PERFORMANCE DUE TO ACTIVE MANAGEMENT

Lease Payment Default ratio calculated over Stabilized Assets

Stabilized Assets are those assets that do not require significant Capex investments and are mostly leased at market rents12Leases covered by default insurance is calculated over rented units

PORTFOLIO RENTAL GROWTH

+69%

+6%

Dec.	Units Vacant Dec.	Units Rented Dec.	Rents' Increase	Acquisitions	Jun.
2018	2018 & Rented	2018 & Vacated Units Rented Dec. 2018	2019	2019

Jun.	Units Rented	Vacant	Units Under	Reversionary
2019	Below ERV	Units	Refurbishment	GRI

STRONG RENTAL GROWTH WITH SIGNIFICANT UPSIDE POTENTIAL

Annualized GRI is calculated on December 2018 and June 2019 annualized invoiced lease rents
Potential Annualized Rent is based on the Company´s estimated ERV (Estimated Rental Value) as of June 30, 2019	13
GAV is based on Savills Aguirre Newman Valoraciones y Tasaciones S.A.U. external independent appraisal

PORTFOLIO YIELD GROWTH

YIELD ON TOTAL INVESTED CAPITALOVER STABILIZED ASSETS

		GROSS YIELD		NET YIELD
			8.77%
7.54%	7.56%

7.01%	7.71%

6.37%6.50%

5.82%

2017

2018

Q2 2019

Reversionary

YIELD ON GROSS ASSET VALUEOVER STABILIZED ASSETS

GROSS YIELD		NET YIELD

5.14%

4.34%	4.47%	4.43%

4.52%

3.61%	3.78%	3.81%

2017

2018

Q2 2019

Reversionary

SOLID YIELD GENERATED BY STABILIZED ASSETS WITH

EXCELLENT GROWTH PERSPECTIVES

Information as of June 30, 2019. Yield calculation based on annualized rents at the end of each period

Reversionary Yield is based on estimated ERV as of June 30, 201914Stabilized Assets are those assets that do not require significant Capex investments and are mostly leased at market rents

4. FINANCIAL INFORMATION

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H1 2019 PERFORMANCE

• +17% GAV INCREASE VS. DECEMBER 2018
• +3% REVALUATION OF 2018 PORTFOLIO
• €5.5M INVESTED IN H1 2019 ACQUISITIONS
• +28.6% REVALUATION OF ASSETS ACQUIRED IN H1 2019
• 3% NAV INCREASE VS. DECEMBER 2018
• €0.45M SHARE PREMIUM DISTRIBUTION IN H1 2019
• €1.7M NET PROFIT IN H1 2019

GAV	Acquisitions	CAPEX	Revaluation	Revaluation	GAV
2018	2019	2019	2018 Assets	Acquisitions	Q2 2019

NAV	Share Premium	Own Shares	H1	NAV
2018	Paid	Trading	2019 Profit	Q2 2019

OUTSTANDING GAV AND NAV EVOLUTION

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FINANCIAL POSITION

• €3.4M LOANS OVER 2019 NEW INVESTMENTS

• AVERAGE INTEREST RATE 1.75%

• AVERAGE MATURITY 16.8 YEARS

MODERATE FINANCIAL LEVERAGE WITH LOW RISK INTEREST RATE FLUCTUATIONS

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CONSOLIDATED BALANCE SHEET

	June 30, 2019 December 31, 2018
ASSETS
Non- Current Assets	58,795	50,205
Property, plant and equipment	3	3
Investment properties	58,665	50,098
Non - Current financial assets	127	104
Current Assets	913	5,216
Advance to suppliers	19	33
Trade and other receivables	71	69
Trade debtors	42	38
Other receivables from Public Administrations	29	31
Other current financial assets	2	3
Other receivables group companies and associates	9	9
Short term accruals	29	43
Cash and cash equivalents	783	5,059
Total Assets	59,708	55,421

	June 30, 2019 December 31, 2018
EQUITY AND LIABILITIES
Net Equity	38,399	37,145
Share capital	11,949	11,949
Share Premium	12,442	12,887
Treasury shares	-224	-247
Retained earnings	14,232	12,556
Non-current Liabilities	19,630	16,470
Non-current financial liabilities	19,630	16,470
Bank Borrowings	19,369	16,226
Other financial liabilities	261	244
Current Liabilities	1,679	1,806
Current financial liabilities	640	347
Bank Borrowings	640	347
Trading creditors and other accounts payable	1,039	1,459
Trade Payables	388	165
Trade payables, group companies and associates	583	1,204
Accruals, wages and salaries	21	15
Other payables with Tax Administration	38	59
Advance to suppliers	9	16
Equity and Liabilities	59,708	55,421

Consolidated Balance Sheet according to International Financial Reporting Standards as adopted by the European Union (IFRS -EU)

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CONSOLIDATED PROFIT AND LOSS ACOUNT

	June 30, 2019	June 30, 2018
P&L
Gross Rental income	902	648
Property operating expenses	-284	-238
Gross profit	618	410
Gain from fair value on investment properties	2,584	1,738
Net result from real estate operations	3,202	2,148
General and administrative expenses	-1,327	-879
Operating result	1,875	1,269
Finance result	-199	-74
Profit for the period	1,676	1,195
Corporate income tax	-	-
Profit for the period attributable to the shareholders	1,676	1,195

Basic and diluted earnings per share (Euro)

0.71

0.55

• 39% GRI INCREASE VS. JUNE 2018
• INCREASE NET RENTAL INCOME MARGIN FROM 63.3% UP TO 68.5%
• +29% EARNINGS PER SHARE VS. JUNE 2019

Consolidated Profit and Loss Account according to International Financial Reporting Standards as adopted by the European Union (IFRS -EU)

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5. H1 SUBSEQUENT EVENTS

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H1 SUBSEQUENT EVENTS

• THE COMPANY HAS SIGNED A DEPOSIT CONTRACT ON A BUILDING LOCATED IN THE CENTRE OF MADRID WITH AN APPROXIMATELY PURCHASE PRICE IN THE EVENT THE ACQUISITION FINALLY BE FORMALIZED OF BETWEEN 6 AND 7 MILLION EUROS
• THE PRESENT PURCHASE AND SALE DEAL IS SUBJECTED TO THE CONDITIONS AGREED IN THE DEPOSIT CONTRACT AND THE CIVIL CODE, IN ALL MATTERS RELATING TO THE RIGHTS OF ITS TENANTS

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