Investor Presentation • Mar 21, 2023
Investor Presentation
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ABITAREIN
STAR CONFERENCE 2023
To satisfy the HOUSING NEEDS of today's families With an INDUSTRIAL AND SCALABLE business model
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Ahead of the market and in absence of competitors, accelerated by distressed assets and NPLs, in just 7 years we have implemented the best and largest pipeline of projects in Milan, at a price way below the target for current values. Today, we are in the position to buy sites for development over a 5-year period, thus keeping the carrying amount of the sites low and being able to decide in an opportunistic way which and how many projects start
4) Of which 7,800 m2 of net saleable area of social housing.
5) Of which 96 social housing apartments.
6) Building works can be started in 12 months 7) Value update to the current average selling price
The development activities in our pipeline, the operations of which are at different stages, continue in an ongoing manner.
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CONTENT
Structural quality product shortages and high demand are leading to price increases (though remaining affordable to families), leaving ample space for improvement before reaching European benchmarks
The only driver of our sector is the demand – offer ratio, COVID emergency and ecologists have just accelerated and amplified the ongoing changes in people's housing needs, which will involve price increase considering the current situation. Ukrainian crisis and the uncertainty of the markets seem to have even more underlined the resilience of the residential development and the importance of the house as safe-heaven asset
During the year, the residential market continued to attract a lot of interest, finding in the potential inflationary trend a further driving factor
HOUSES: tangible asset whose value is destined to grow
17.5 % increase of volumes compared to H1 2021 1 28,600 transactions in 2022
8.3% prices increase on annual basis in Milan2 +16.9% for new houses
1- Engel & Volkers con Nomisma 2- ISTAT – dati preliminari terzo trimestre 2022 3- Osservatorio trimestrale Immobiliare Insights
The path initiated for energy upgrading of buildings will result in a major difference between new and used
REAL ESTATE SECTOR: 35% EMISSIONS 38% ENERGY CONSUMPTION ITALIAN BUILDINGS 34% class G 23.8% CLASS F 15.9% CLASS E
EUROPE GOALS: 2030: ALL BUILDINGS IN CLASS E * 2033: ALL BUILDINGS IN CLASS D 2050: ALL BUILDINGS ZEB (ZERO EMISSION BUILDING)
* 9 MN of buildings à investments for € 540 BN
AT RISK THE VALUE OF THE MOST ENERGY-INTENSIVE HOMES, REDUCING MORTGAGES AND FINANCING AVAILABLE TO OWNERS
INCREASE OF VALUE OF NEWLY BUILT HOUSES
Thanks to a growing demand, favorable taxation, affordable prices - even compared with salaries - and lack of "quality" product, Milano is one of the most interesting market worldwide with a long horizon of rising prices
Source: UBS Real Estate Bubble Index 2022
Milan economy trend still expanding, GDP also growing in 2023 with better performance than both Lombardy and Italy
| PROVINCE/ METROPOLITAN CITY |
SALARIES PER CAPITA (€) |
SELLING PRICES (€/SQM) |
PRICES/SALAR IES |
|---|---|---|---|
| MILANO | 30,464.86 | 4,964.60 | 16% |
| BOLZANO/BOZEN | 18,942.08 | 4,412.10 | 23% |
| BOLOGNA | 18,628.65 | 3,325.40 | 18% |
| ROMA | 17,774.30 | 3,011.30 | 17% |
| FIRENZE | 16,686.53 | 3,968.60 | 24% |
We have developed several tools to manage the increase in construction costs
In the contracts with customers, allowing the sale price of apartments that have already been the subject of a preliminary contract to be adjusted on the basis of the construction cost index issued by ISTAT.
Temporal variation in signing building contracts
With construction companies
Opportunities offered in support of renovation of the building stock
CHANGES AND OPTIMIZATION of the product
COSTRUIRE IN S.R.L. a group company designated as a general contractor to monitor and reduce construction cost
The customer deposits and the concentration of production in the final stages of the site mean that the incidence of financial charges does not exceed 1% of revenues, €0.8* million in 52 months for an operation with €76 million in revenues
Even assuming a growth of EURIBOR of 500 bp, the incidence of financial charges would rise to less than 2.2% of revenues
* spread 2.5%, customer deposits 27%, bank loan 60%, equity 2 million, guarantee withholding 10%, staged payments based on progress of works at 90 days - expansionary cycle, site purchase prior to marketing
Over the years we have grown at the pace typical of the technology sector we come from, while never losing sight of the fundamentals and keeping our risk profile to a minimum.
| 30/09/2017 | 30/09/2018 | 30/09/2019 | 30/09/2020 | 30/09/2021 | 30/09/2022 | |
|---|---|---|---|---|---|---|
| TOTAL REVENUES (MN €) | 9 | 49** | 44.6 | 73.1 | 124.81 | 122,2 |
| EBT (MN €) | 2 | 4 | 9,4 | 12.4 | 19.6 | 24.4 ADJ |
| ORDER BOOK*** (MN €) | 54 | 146 | 190 | 225.8 | 265 | 320 |
| ORDER BOOK*** (UNITS) | 114 | 248 | 485 | 586 | 634 | 730 |
| CONTRACTUALIZED DOWN PAYMENT (MN €)*** |
14 | 39 | 56 | 69 | 82 | 98 |
| PIPELINE (UNITS) | 690 | 1,180 | 2,050 | 2,530 | 3,318 | 3,0741 |
| PIPELINE REVENUES (MN €)**** | 293 | 501.2 | 870.8 | 1,074 | 1,300 | 1,1601 |
| LOANS/FINANCING APPROVED | 9 | 94.7 | 119.2 | 193.8 | 217 | 274 |
| OF WHICH USED | 0.2 | 27.3 | 53.9 | 72.2 | 88 | 149 |
IFRS financial statement– 2017 proforma
* Net of new areas purchase
** Revenue is influenced (increased) by the final conveyance agreements associated with new sites
*** Cumulative data as at 30 September of each year
**** Value updated to the current average selling price
| 2022 A | 2023 E | 2024 E | |
|---|---|---|---|
| MN € | |||
| OPERATING FCF | - 50 |
122 | -7 |
| FCFF | -54 | 116 | -12 |
| CHANGE OF NET FINANCIAL DEBT |
-41 | 121 | -22 |
| NET FINANCIAL DEBT | 116 | 2 | 24 |
Among the 100 Italian excellences in sustainability
The impact of our urban regeneration on the environment
CLASS A1 OR SUPERIOR BUILDINGS
136 tonnes
26
CO2 EMISSIONS OFFSET WITH THE PLANTING OF NEW TREES
25,452 MWh/year
8,566 tonnes
REDUCTION IN CO2 EMISSIONS WHILE USING THE PROPERTIES
ENERGY PRODUCED FROM RENEWABLE SOURCES
LAND AREA RECLAIMED
2,070 sqm
ASBESTOS REMOVED
2,033
TREES PROVIDED FOR PLANTING
WE REALLY CARE ABOUT OUR CITY WE REALLY DO GOOD TO OUR PLANET
OUR BUSINESS IS INTRINSECALLY LINKED TO SUSTAINABILITY
19 ESG report 2021 19
HOMIZY is the RESIDENTIAL VERSION of the SHARING ECONOMY.
bringing people together to make those who choose Milan to enhance their personal and professional growth "FEEL AT HOME"
Thanks to a unique know-how, technology and its critical mass, AbitareIn announced in 2019 a new project: HOMIZY.
An SPV (SIIQ), 70% owned by AbitareIn, that raised in 2020 a first tranche of equity at a pre-money value of € 34.4 Mln and in 2021 went public on Euronext Growth with a post-money value of € 55 mln.
PROPERTY, SPACE AND SERVICES ARE SHARED to create new socializing opportunities EXTENSIVE USE OF TECHNOLOGY
GREATER MANAGEMENT EFFICIENCY and optimization of resources
MAKING THE MOST OF ABITAREIN'S ECONOMIES OF SCALE AND KNOW-HOW we present a new-build product in Milan, quality and design with a price range of Euro 550-900 per room, all inclusive
Our typical co-resident is a YOUNG PROFESSIONAL:
AGED BETWEEN 20 TO 35
who relocate from their hometowns FOR WORK
or who want to fly the nest to BECOME MORE INDEPENDENT
| Land research | Authorisation process and Building project |
Rent | |||
|---|---|---|---|---|---|
| S O U T T T A A T F S |
STARTING YEAR 2020 |
PROJECT STATUS |
END OF WORKS 1Q 2024 |
||
| DI T |
EXTERNAL LAYOUT | ||||
| C O E T OJ A T R S P |
6 FLOORS | 2 BASEMENT FLOOR | PRIVATE GARDEN | ||
| INTERNAL LAYOUT | |||||
| GROSS FLOOR 4.734 sqm |
14 STUDIOS |
38MULTI ROOM APARTMENTS |
|||
| L R A E U D T N R E VI R |
SOURCES OF REVENUES | ||||
| 198 ROOMS 52 APARTMENTS |
|||||
| MAIN COSTS | |||||
| BUILDING: € 9.900.000 ca. |
AREA PURCHASE: € 2.300.000 ca. |
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