1H2018 RESULTS. Milan, July 18th 2018

Transcription

1 1H2018 RESULTS Milan, July 18th 2018

2 AGENDA 1. STRATEGIC POSITIONING PAG H2018 ACTIVITY PAG H2018 FINANCIAL HIGHLIGHTS PAG STRATEGY AND OUTLOOK PAG ANNEX PAG. 28 2

3 Strategic Positioning 3

4 A SUCCESSFUL BUSINESS MODEL, DELIVERING ON STRATEGY Keep moving towards the targets 49% 2015 FOCUS ON MILAN % of portfolio in Milan (1) 41% 68% 1H2018 Offices Non-TI 84% in Milan 2015 DIVERSIFIED TENANT BASE % of TI portfolio (1) 20% 1H % 2015 GREENER PORTFOLIO % of green assets (1) 67% 1H2018 PROPERTY PORTFOLIO 3.6Bn 4.4Bn total share OCCUPANCY (2) OFFICES NON-TI 95.5% 96.5% total portfolio MILAN PORTFOLIO 2.4Bn group share Quality portfolio and distinctive asset management skills driving performance (1) Including effect of TI buy back (2) The occupancy is calculated including the positive effect of the contract signed on vacant spaces with start date in the future 4

5 1H2018 : POSITIVE ACHIEVEMENTS ALONG STRATEGIC TARGETS Continue to upgrade business profile Successful letting activity ~46,000 sqm of letting activity m annual rents Major lease agreement on Milan - Excelsior (>35% rent) Milan, Galleria del Corso Focus in Milan Major acquisitions in Milan for 106m 78.6m asset acquisition in Bicocca, Plus 27m in City Center New agreement for 158m asset buy-back by Telecom located out of Milan, on top of the successful closing of disposal of 9% in Sicaf Milan, Bicocca Strong development pipeline 368m committed Development Pipeline (+16%) 57% pre-let Additional pre-let of two assets in Symbiosis (Ludum School) and The Sign (AON) Milan, Symbiosis School 5

6 1H2018 Activity 6

7 e CONFIRMED SUPPORTIVE ECONOMIC ENVIRONMENT Milan outperforming vs national figures GDP evolution Employment rate Milan 70% Milan % % 2018E Italy 60% Italy 85 55% Milan GDP was less impacted by the crises witnessed during the last decade and currently stands 11% the levels reached in 2007 Record-high levels of employment rate in Milan Italian Consumer Price Index change Business Confidence in the construction sector 2.00% +1.7% % % e 2019e /06/2018 Inflation increasing trend will continue driven mainly by commodity prices Fifth increase in a row Source: Istat, Banca d Italia, Assolombarda 7

8 Sqm '000 MILAN CONFIRMED AS A RESILIENT MARKET Milan office take-up is in line vs. last record year driven by demand for grade-a offices 570/sqm prime rent 12.3m sqm stock Milan office take-up evolution by building grade 2018E >350K +8% YoY Stable % vacancy rate Reduction of vacancy K sqm Grade A Grade B+C Record level of take-up focused on Grade A offices Increase of prime rent Stable stock of offices including developments Milan strongly outperform national investment figures 3.6bn 3.5% Investments in Italy Milan Office Prime Yield Stable Yield 0.8bn Office Invest. in Milan In line with 1H 2017 Source: C&W Q

9 1H2018 : SUCCESSFUL DELIVERY OF LETTING RESULTS Occupancy 1 and leasing activity New contracts and renewals 96% 95% 95% 95% 95% 95% 94% 94% Office Non-TI 95.5% 95.3% 14 NEW CONTRACTS FOR 7.5m ANNUALIZED RENTS ON 11,400 SQM 12 RENEWALS FOR 2.3m ANNUALIZED RENTS ON 12,200 SQM 5 PRELETTING 2 FOR 4.7m ANNUALIZED RENTS ON 22,200 SQM 94% YE % 97% 96% 95% 94% 93% 92% 91% 90% Total portfolio in group share 96.7% 96.5% YE 2017 WALB (group share) 6.6 years (1) The occupancy is calculated including the positive effect of the contract signed on vacant spaces with start date in the future (2) Included agreement with Ludum signed after 30 June 2018 ( 1.6m top up Rent ~ 9,400sqm on Symbiosis Area). 9

10 NEW LEASE AGREEMENT ON MILAN, GALLERIA DEL CORSO Victoria s Secret largest flagship store in Italy Mutual termination of the lease with COIN Reletting to Gruppo Percassi in charge of Victoria s Secret franchise network development in Italy ~ 5,000 sqm Top-up rents: 5.9m (~ 1,200/sqm) Lease term: 14 years firm, starting in February 2019 >+35% Rental income Subject to certain conditions precedent expected to become effective in 3Q18 10

11 KEEP ACCELERATING ON DEVELOPMENT New commitments and important deliveries: ca. +26% growth expected in 2018/2019 Committed pipeline +26% ~ 400m +130% 325m 317m + 275m new committments 142m - 190m projects delivery End 2015 End 2016 End /2019 Total pipeline 602m 785m 777m ~ 760m Delivery 2018 Works in progress Committed 2018 Milan, Via Colonna Milan, Monte Titano Milan, Amedeo Milan, Symbiosis School Milan, The Sign B&C 11

12 IN MILAN: EXTRACT VALUE CREATION ~ 90% of total pipeline concentrated in Milan 1 Principe Amedeo 7,000 m² 58.5 m Mar % yield on cost 57% prelet 2 Via Dante (1) 4,800 m² 58 m to be committed on marketing M3 M5 Bicocca M1 Certosa Maciachini M1 M2 City Life M5 M1 Lorenteggio M4 Navigli Milanofiori M2 Semi-centre 3 CBD 2 1 Porta Nuova Centre 4 Ripamonti Periphery Business districts Lambrate / Forlanini 3 The Sign 4 26,500 m² 105 m 2020 >7% yield on cost 35% prelet M3 M4 Linate Airport Symbiosis (A+B & School) 29,900 m² m >7% yield on cost 89% prelet (1) Values refer to office portion only, which will be redeveloped 12

13 SYMBIOSIS: NEW PRE-LET TO A LEADING INTERNATIONAL SCHOOL Buildings A & B: 20,500 m²; delivery % prelet to Fastweb and Cirfood Premium international school with extensive sport facilities Project developped by NACE School that represents the sixth largest international schools group in the world through its 30 managed school ~125,000 sqm Total GLA ~ 29,900sqm Committed ~ 519m Total budget ~ 115m Committed ~7% Yield on cost August 2020 delivery & lease start 9,400 sqm GLA 20.6m total budget 1.6m top up rent (ca. 225 /sqm) 13.5 years maturity - firm 13

14 SELECTED ACQUISITIONS TO INCREASE EXPOSURE IN MILAN 106m acquisitions in 1H 18, focused in dynamic areas of Milan and with significant value creation potential Acquisition of a 78.6 million office in Bicocca business area Entry in a well established and dynamic business district of Milan, A growing business area acclaimed by companies and well connected to transportations sqm Grade A asset Multi let tenants 3.5 years WALB 6% yield 6.3% at full occupancy 240/m² average rent Relevant Tenants in the Bicocca BD Relevant Landlords 14

15 AND CONSISTENT DISPOSALS OF NON CORE ASSETS After the successful disposal of 9% of Sicaf, a new agreement to enhance liquidity Streamline Telecom Italia portfolio Major agreement with Telecom Italia Reduce exposure to non core assets: buy-back of 11 assets in secondary locations for 158 m 1-81 m group share Increase portfolio quality: reallocation of the 27 m capex program to in core assets in Milan, Rome and Naples Improve assets liquidity: early termination of 8 lease contracts to end in 2021 with a 1.5 years penalty Pisa,via Brennero Varese, viale Borri Como,via Dante snc (1) Price gross of rents due since 1 April 2018 until the closing date 15

16 MERGER WITH COVIVIO TO BE FINALISED BY END-DECEMBER Simplification and increased ties within the Group activities Covivio proposed exchange ratio: 8.5 COV shares for 1,000 Beni Stabili shares Since April 19th, Covivio has bought 7.5% of Beni Stabili share capital and now owns 59.9% Today the BoD of Beni Stabili has approved the merger plan September 5th: Beni Stabili EGM September 6th: Covivio EGM End December: closing of the merger Early January: dual listing in Milan Shareholding structure 59.9% Covivio 5.7% CAA 3.4% Delfin 8.3% ACM 7.4% CAA 7.8% Covéa 28.3% Delfin 31% Free Float 48.2% Free Float 16

17 CONTEMPLATED MERGER WITH COVIVIO: A KEY STEP Higher flexibility, client centric approach, best practices among countries/products and more profitability Gaining a unique exposure to Europe and to its most growing markets (~ 23 bn GAV of portfolio) Office, hotel and residential markets Paris, Berlin, Milan Sizeable development pipeline valued in excess of 5Bn Access to #4 European REIT 1 Improved credit rating combined with a lower cost of debt Stronger Credit Profile Strengthened Capital Market Profile Increased and enhanced stock market profile / size (market cap > 7 bn) Increased free float and liquidity for shareholders (~x6 2 ) Enhanced Return Profile +16% dividend per share increase for Beni Stabili shareholders 3 (1) On a 100% basis (2) Based on 19 April 2018 share prices (Covivio: 88.30, BS: 0.730) and 100% straight merger (3) Based on an exchange parity of 8.5x Covivio shares for 1,000 BS shares. Based on a 2017 dividend of 4.50 for Covivio shareholders and for Beni Stabili shareholders 17

18 1H2018 Financial Highlights 18

19 1H2018 : RENTAL INCOME Consistent growth, outperformance of Milan m 6M M M 2018 Change (%) Likefor-Like Occupancy rate 1 00% Group Share Group Share Office TI % 100.0% Office Non - TI % 95.5% Total Office % 97.0% Retail & Others (7.8%) 92.0% Development % n.a Total portfolio % 96.5% Milan Office NO TI % 96.7% Milan +2.2% L-f-L L-f-L growth in GROWTH Milan offices +2.0% 2 Minority related to sale of TI Sicaf stake: m (1) Development Assets:+ 2.0m (1) Acquisitions:+ 4.1m (1) Indexation: +0.8% Occupancy rate: +0.5% Renewals: -0.9%, mainly related to a renegotiation on a shopping center (1) Not included in L-f-L calculation (2) Offices Non-TI 19

20 1H2018: EPRA EARNINGS Solid income despite disposal of TI portfolio minority 100% Group Share m 30/06/ /06/2018 Change 30/06/2018 Rental income Not recovered rental expenses (16.3) (16.1) 0.2 (14.1) Net rental income Margin % 84.0% 84.6% 0.6% 82.9% Net service revenues (0.1) 2.9 Personnel & G&A costs (15.7) (13.0) 2.7 (12.7) Net financing costs (20.9) (16.4) 4.4 (12.5) Income/(cost) from associates (0.2) Income tax (0.3) (0.1) 0.2 (0.1) Minority (0.7) (15.0) (14.2) EPRA Earnings (3.9) 46.1 Epra Earnings / share Change in fair value of assets (28.1) Change in fair value of ORNANE convertion Option gross tax effect Change in fair value of financial instruments and effective interest rate impact (23.4) (2.8) (1.7) 1.1 Deferred tax and other taxes 0.3 (0.1) (0.3) Early repayments of loans and derivates (17.1) (11.7) 5.4 Depreciation, provisions and other (7.2) (2.2) 5.0 Minority (1.8) (0.1) 1.7 Net income Net income/ share Rental L-f-L growth +0.4% Improved net financial costs 35bps cost of debt Strong deleveraging from 51.6% (31/12/2016) to 46.4% following disposal of 49% of Sicaf 15m minority interests Real estate portfolio L-f-L growth +0.7% (group share) 20

21 1H2018: DEBT PROFILE Group share Debt metrics 31/12/ /12/ /06/2018 Group share Group share 20% 11% Group share gross ML debt (5) 30/06/2018 Convertible bonds 11% SICAF Secured bank debt 22% Net accounting debt ( m) 2,230 1,731 1,788 LTV (1) 51.6% 46.1% 46.4% Cost of debt 2.44% 2.15% 1.79% Straight bonds 41% Unsecured debt 57% Average maturity (2) 4.96 yrs 5.71 yrs (3) 6.64 yrs (4) ICR 3.2x 4.0x 5.4x Committed lines 4% Secured bank debt 22% (1) Accounting Net Debt/Portfolio IAS Value including transfer taxes and disposals preliminary agreements and receivables/ (payables) for sales (2) Based on long-term debt (3) Assuming repayment of Pillar Bond (January 2018). Consolidated 4.90yrs/ Group share 4.62yrs as at 31/12/2017 (4) Including long-term RCF (5) Based on nominal value of outstanding debt 21

22 1H2018: EVOLUTION OF THE PORTFOLIO Strong and resilient investment allocation Market value -group share 31/12/ /06/2018 Change Change % ( m) ( m) ( m) % Office TI % Office No TI 1,952 2, % Retail & Others % Development % 3,611 3, % Non TI Offices Milan L-f-L GROWTH +1.4% Market value evolution ( m) 3,611m 106m 36m 8m 24m ( 154m) 3,631m Market value as of Dec-17 + Acquisitions - Disposals + Capex DEV + Capex NO DEV (1) +/- LfL Market value as of Jun-18 (1) Including 2.0M of Capex < 200 and 6.3M of capitalised intermetiation fees and rent linearization pre-2018 engagement 22

23 1H2018: EPRA NAV AND TRIPLE NET NAV Group Share Group Share Group Share 30/06/ /12/ /06/2018 Change 6M Change % 6M Gross NAV 1, , , (1.8%) per share (1.8%) NNNAV 1, , , (1.9%) per share (1.9%) Main changes due to: Dividend Payment Early repayment of bond due 2019 Write up of the RE portfolio EPRA NNNAV 23

24 Strategy and Outlook 24

25 A PROVEN SUCCESSFUL STRATEGY Targets Focus on MILAN DIVERSIFY tenant base Increase GREEN LTV 40-45% WEIGHT OF MILAN 90% WEIGHT OF TELECOM ITALIA 20% WEIGHT OF GREEN PROPERTIES 80% 2018 EPRA Earnings target confirmed: ~ 0.04 / share 25

26 CALENDAR Extraordinary General Meeting 5 th SEPTEMBER Q 2018 revenues 24 th OCTOBER

27 Q&A 27

28 Annex 28

29 H2018: AVERAGE LEASE MATURITY Weighted average lease maturity 6.6 years (group share) m M 70M 60M 50M 40M 30M 20M 10M 0M >

30 1H2018: REAL ESTATE PORTFOLIO DETAILS N of GLA Market Gross Topped-up Financial properties ( 000 sqm) value ( m) yield (%) yield (%) occupancy (%) WALB Office Telecom Italia % 6.4% 100.0% 12.4 Office, Excl. Telecom Italia , % 5.0% 95.5% 4.2 Retail & Others % 5.9% 92.0% 4.3 Total portfolio excl. Development Group Share 248 1,193 3, % 5.4% 96.5% 6.6 Development portfolio Total portfolio Group Share Total portfolio excl. Development Consolidated Total portfolio Consolidated 252 1,410 3, , , ,927 4,390 30

31 1H2018: DEVELOPMENT PIPELINE Committed projects Location Project type Area Expected delivery % pre-let Capex to be spent 1 % completion Target yield Total budget 2 (sqm) (%) ( m) ( m) (%) ( m) Ferrucci Turin Refurbishment 45,600 '17-'19 44% % 5.6% 89.5 Symbiosis A+B Milan Construction 20,500 Oct-18 86% % 7.2% 93.9 The Sign A Milan Construction 9,700 Mar-20 96% % 7.0% 38.3 The Sign B & C Milan Construction 16,800 Dec % 7.2% 67.1 Principe Amedeo Milan Refurbishment 7,000 Mar-19 57% % 5.3% 58.5 Symbiosis School Milan Construction 9,400 Aug-20 97% % 20.6 TOTAL 109,000 57% % 6.5% Managed projects 3 Location Project type Area (sqm) Expected delivery Total budget 2 ( m) Symbiosis (other blocks) Milan Construction 95, ca. 400 TOTAL 95,000 ca. 400 The table does not include Milan Dante 7 project that will be committed for the office portion, for a total cost of ca. 58m, after tenant s release in 3Q18 (1) Includes construction costs, technical costs, urbanization fees, financial costs, home technical costs and various fees (2) Including land cost and financial costs (3) Figures subject to changes as project analysis progresses 31

32 1H2018: DISPOSALS AS AT 30/06/2018 m Sales at June 2018 Consolidated Sales at June 2018 Group Share Cash Sales (2017 production) Gross selling price Y ield on sale (%) 3.8% 3.5% Preliminary agreements (1) Gross selling price Y ield on sale (%) 3.1% 2.3% TI Buy-back Gross selling price (2) Y ield on sale (%) 6.8% 6.8% In addition, 9% of Central Sicaf has been sold in February 2018 (equal to ca 140 of asset value) (1) Including one asset with preliminary signed in 2017 but not sold yet and one asset signed after 30/06/18 32

33 1H2018 RENTAL REVENUES 100% Group Share m 6M M 2018 Δ (%) 6M M 2018 Δ (%) Δ (%) Like-for- Like % of Rent Office TI % (44.4%) +1.1% 33.1% Office Non - TI % % +1.7% +56.8% Total Office % (19.5%) +1.5% 89.9% Retail & Others (16.0%) (16.0%) (7.8%) +9.7% Development % % 0.0% +0.4% Total portfolio % (18.9%) +0.4% % RENTAL INCOME EVOLUTION ( M) (3.6) (21.7) +2.9 (0.7) Rents 30/06/ Acquisitions - Sales -'Disposal effect 40% - added 9% Central Sicaf +Preliminaries + Relettings & New contracts - Rental releases +/- CPI & Other Rents 30/06/

34 1H2018: IAS PROFIT & LOSS m 30/06/ /06/2018 Net rental revenues % change Disposals (0.2) (0.6) Net service revenues Gross operating margin % Staff Costs (5.9) (5.9) Overheads (13.3) (7.0) Other revenues and income/(other costs and charges) (3.3) (1.3) Operating profit before property write-ups/(write-downs) % Property write-ups/(write-downs) EBIT % Net financial income/(charges) (64.2) (25.7) Income/(charges) from associates and other entities (0.4) (0.3) EBT % Current tax (0.3) (0.1) Deferred tax 0.3 (0.1) Minority profit/(loss) (2.6) (15.1) NET GROUP RESULT % Per share data Net group income / share Net group income / share, diluted

35 1H2018: BALANCE SHEET ASSETS ( m) 31/12/ /06/2018 Change EQUITY & LIABILITIES ( m) 31/12/ /06/2018 Change Investment properties 3, , Total group equity 1, ,848.5 (28.3) Properties under development (1.9) Minority interest Operating properties and other assets Derivatives (2.0) (0.4) Total consolidated equity 2, , Other non-current assets (4.1) LIABILITIES Total non-current assets 4, , Borrowings 1, , Derivatives (8.3) Trading properties (4.5) Other non-current liabilities Other current assets (4.9) Total non-current liabilities 1, , Cash and cash equivalents (282.1) Total current assets (291.5) Borrowings (305.1) Other current liabilities (10.4) Assets held for sale Total current liabilities (315.6) Liabilities relating to assets held for sale Total liabilities 2, ,268.7 (180.2) Total assets 4, ,508.3 (137.6) Total consolidated equity and liabilities 4, ,508.3 (137.6) m Total consolidated Equity Balance at 31/12/2017 2,197.0 Distribution of dividends and capital reserves Result of the period (excl. minorities) Net fair value gain/(loss) on hedging derivatives, after tax effect Sale of 9% Central SICAF Other (91.0) 49.1 (1.9) Balance at 30/06/2018 2,

36 1H2018: IAS CASH FLOW STATEMENT m 30/06/ /06/2018 EPRA Earnings 50,0 46,1 Cash items excluded in Epra Earnings (including minorities) (6,8) 5,7 Cash flow from operating activities after taxes 43,2 51,8 Other assets/other liabilities (0,9) (3,8) Investments (including capex) (203,4) (161,7) Disposals 39,2 20,6 Dividend from investments 0,6 1,2 Distributed dividend (74,9) (74,9) Capital increase 0,0 0,0 Increase/(decrease) in borrowings, including early unwinding of derivatives (49,1) (170,5) Other 272,9 55,2 Net increase/(decrease) in cash and equivalents 27,8 (282,1) Cash and equivalents at the beginning of period 28,8 310,4 Cash and equivalents at the end of period 56,5 28,3 36

37 1H2018: DETAILED EPRA NET ASSET VALUE CALCULATION GROUP SHARE m 31/12/2017 per share 30/06/2018 per share Market value investment properties and operating properties 3, ,098.3 Market value properties under development Market value trading properties Market value held for sale assets Other assets (excluding deferred taxes on real estate assets) Net financial position (1,730.9) (1,787.9) Gross NAV 1, , Deferred taxes on real estate assets (3.4) (3.8) NNAV 1, , MtM derivatives MtM CB 2021 Convertion Option (17.7) (11.7) MtM borrowings (5.2) (13.0) MtM convertible bond (2.7) (2.9) Taxes NNNAV 1, , Number of shares 2,268,631,803 2,268,631,803 37

38 1H2018: DEBT PROFILE Consolidated Debt metrics Debt Maturity (6) consolidated ( /m) -30/06/ /06/2018 Consolidated Net accounting debt ( m) 2,154 LTV (1) 45.6% Cost of debt 1.79% Average maturity (2) 6.57 yrs (4) ICR 5.4x % 33% loan reimbursement maturities convertible bond maturities straight bond maturities ordinary amortization plan SICAF RCF Sicaf RCF Tower Consolidated gross ML debt (5) 30/06/2018 Straight bonds 34% Convertible bonds 9% Unsecured debt SICAF Secured bank debt 35% 47% Debt Maturity (6) group share ( /m) -30/06/ loan reimbursement maturities convertible bond maturities straight bond maturities ordinary amortization plan SICAF RCF Sicaf RCF Tower Committed lines 4% Secured bank debt 18% (1) Accounting Net Debt/Portfolio IAS Value including transfer taxes (4% - 2% for Sicaf) and disposals preliminary agreements and receivables/ (payables) for sales (2) Based on long-term debt (3) Assuming repayment of Pillar Bond (January 2018). Consolidated 4.90yrs/ Group share 4.62yrs as at 31/12/2017 (4) Including long-term RCF (5) Based on nominal value of outstanding debt (6) Based on nominal value of outstanding debt M/L, including long-term RCF 38

39 PROPERTY PORTFOLIO IN MILAN A prime portfolio including several trophy assets in central Milan 2.4bn property portfolio in Milan 59% CBD & Porta Nuova M bn market value M1 M5 M % Periphery 22% Central & Semi-Central Porta 27 2 Nuova Semi-centre CBD M M3 Centre 26 Periphery Break down by area excludes properties currently under preliminary disposal agreement for 152m. Group share 7 28 M5 9 M1 41 M3 M M4 Milan assets 1 Via Marco Aurelio Via Dante 7 2 Piazza Sigmund Freud 26 Via Cesare Balbo 8 3 Via Lorenteggio Via Mantegna 11 4 Via Schievano E Viale dell'innovazione 3 5 Milanofiori - Strada 8 29 Piazza San Fedele 2 6 Via Messina Galleria del Corso 4 7 Via Scarsellini Via Folli 17 8 Via Tonale Viale Jenner 73 9 Via Adamello (Symbiosis) 33 Via Cascina Bellaria 4 10 Via Montebello Corso Sempione Via Boscovich Via V. Colonna 4 12 Via Bernina 7 36 Corso Monforte Piazza Monte Titano Via Eritrea 48/8 14 Via Strada 7 38 Via Marcora Corso Italia Corso Magenta Via Cornaggia 6 40 Corso Magenta Via Marostica 1 41 Via Brenta 3 18 Via Cernaia 8 42 Via Plinio Via Dell'Unione 1 43 Via Arese 5/7 20 Via Parini 6 44 Via Mercato 3 21 Via Principe Amedeo 5 45 Largo P. Grassi 1 22 Via Rombon Piazza San Fedele 4 23 Via Amedei 8 47 Piazza Duca D'Aosta 8 24 Viale Certosa Piazza San Pietro in Gessate 2 Rented portfolio Developments Acquisition signed in

40 DEFINITIONS: REAL ESTATE INDICATORS Recurring Net Income: calculated by adjusting the consolidated net result, with exclusion of the following items: i) the contribution margin sales (capital gains and related costs); ii) financial costs arising from the early repayment of loans and financial instruments; iii) items for valuation on real estate and financial instruments. iv) non-cash items (items of a valuation nature on properties and hedging instruments, amortisation and depreciations, etc.); v) most significant extraordinary and non-recurring items. Epra Earnings: Earnings from operational activities. It is a performance indicator calculated by adjusting the IAS/IFRS net income of some non-operational components. Typically: i) the contribution margin sales (capital gains and related costs); ii) financial costs arising from the early repayment of loans and financial instruments; iii) items for valuation on real estate and financial instruments and iv) costs linked to share deal and joint venture acquisition, including the effects related to deferred taxation. ICR: means the ratio, expressed in percentage, between (a) the EBITDA; and (b) the Net Financial Charges. Net financial charges means the aggregate amount of Financial Charges, net of Financial Income, as reported in the annual and interim financial reports of the Issuer adjusted: to exclude (a) any extraordinary financial charges deriving from early repayment of loans and derivatives, (b) any non cash financial charges under any derivative instruments and amortised cost, and (c) any non cash financial charges for discounting receivables and any other non cash financial charges. Loan To Value (LTV): means the ratio between the Net Accounting Debt and the value of the relevant portfolio including transfer taxes (currently 4% for SIIQ and 2% for SICAF), considering the effect of disposal preliminary agreements and receivables/ payables for sales. GROSS NAV EPRA: means the NAV for the financial statement, adjusted to include the fair value of certain assets accounted at cost (ex. trading properties and certain other non non-current investment) and to exclude fair value of financial instruments and deferred taxes on properties. EPRA NNNAV: means the triple net asset value, i.e., the net asset value adjusted to include: (a) fair value of financial instruments; (b) fair value of debt; and (c) deferred tax. 40

41 DISCLAIMER This document has been prepared by Beni Stabili SpA Siiq (the Company ) solely for the purposes of this presentation. This document may not be reproduced or distributed in whole or in part by any other person than the Company. The Company takes no responsibility for the use of this document by any person and for any purposes. The information contained in this document has not been subject to independent verification and no representation, warranty or undertaking, express or implied, is made as to the accuracy, completeness or correctness of the information or opinions contained herein. This presentation may contain forwards-looking information and statements about the Company. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding plans, performance. In any case, investors and holders of the Company are cautioned that forward-looking information and statements are subject to various risk and uncertainties many of which are difficult to predict and subject to an independent evaluation by the Company; that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking statements. No representation, warranty or undertaking is made by the Company in order to the implementation of these forward looking statements. These risks and uncertainties include, but are not limited to, those contained in this presentation. Except as required by applicable law, the Company does not undertake any obligation to update any forward-looking information or statements. Neither the Company, its shareholders, its advisors or representatives nor any other person shall have any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection with this document. This document does not constitute an offer to sell or an invitation or solicitation of an offer to subscribe for or purchase any securities, and this shall not form the basis for or be used for any such offer or invitation or other contract or engagement in any jurisdiction. Under all circumstances the user of this document shall solely remain responsible for his/her own assumptions, analyses and conclusions. 41

42 IR contacts Barbara Pivetta Tel.: Barbara Ciocca Tel.: Milan Via Carlo Ottavio Cornaggia Milano Tel.: +39 (0) Rome Via Piemonte Roma Tel.: +39 (0)