Tempore Properties SOCIMI S A : Témpore Properties SOCIMI SA

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:

1. In addition, 2,884 associated parking and 2,041 associated storage units
2. Témpore is financed by BNP Paribas
3. Acquisition pipeline as of June 2020
4. 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

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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

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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

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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

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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

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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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