HALF-YEAR RESULTS. Presentationof 31 July 2014

Transcription

1 HALF-YEAR RESULTS 2014 Presentationof 31 July 2014

2 AFFINE H KEY TAKEAWAYS EPRA EARNINGS UP (+) Increase in gross rental income resulting from 100% integration of Bordeaux complex and logistics developments (-) Negative contribution from Banimmo LTV OF 48.3 % AND COST OF DEBT DOWN TO 3.1 % CHANGE IN PORTFOLIO Hike in occupancy rate (91.5 %) 10.9m in improvements and developments 12.2m disposals New investments currently in advanced negotiations EPRA NAV PER SHARE OF 23.7 (-) Net earnings of - 6.4m due to fair value adjustments (-) Dividend distribution ( 8.1m) 2014 Half-year Results 2

3 INVESTMENTS AND DISPOSALS 2014 Half-year Results 3

4 INVESTMENTS AND DISPOSALS 11M OF INVESTMENTS AND 12M OF DISPOSALS 11m: Development & Refurbishment Troyes (Concerto) St Cyr en Val Gennevilliers Bagnolet 12m: Disposals Evry: 10.4m Saint Quentin Fallavier: 1.4m Bron: 0.3m Montpellier: 0.2m 2014 Half-year Results 4

5 INVESTMENTS AND DISPOSALS LYON BD TCHÉCOSLOVAQUES Refurbishment of 4 900,sqm offices space 2 buildings and parking lot for 122 cars Located on the extension of the Boulevard VivierMerle, between the La Part-Dieu and Gerland districts Easy and improved service and enhanced attractiveness 2 métro stations, numerous bus routes Tram under progress Marketing under process TGV station La Part-Dieu Building 2014 Half-year Results 5

6 INVESTMENTS AND DISPOSALS RÉAUMUR, A PARTIAL RECONVERSION 1,656 sqm totally refurbished 741 sqmof offices 606 sqm turned into residential 309 sqmof retails Office Residential Nearby the Marais district Locatedat 100 m of the Arts et Métiers metro station Works budget estimated at 4m Completed by December 2014 Marketed or received offer: c. 70% 2014 Half-year Results 6

7 INVESTMENTS AND DISPOSALS SAINT CYR EN VAL 2 ND PHASE REFURBISHMENTBUILDING B A 9,600 sqm warehouse 4 cells and 45 doors Temperature-controlled building (Pharmaceutical products) Air conditioning système renovation 6 air con devices replaced on the roof Résultats Annuels

8 PERFORMANCE OF THE PORTFOLIO 2014 Half-year Results 8

9 PERFORMANCE OF THE PORTFOLIO HEADLINE RENTS: -1.3% LIKE-FOR-LIKE Change in headline rents annualized ( m) 46.2 (0.7) (1.1) (0.6) /12/2013 Refurbishment Disposal Like-for-like Acquisition 30/06/2014 Total headline rents change: -3.6% 2014 Half-year Results 9

10 PERFORMANCE OF THE PORTFOLIO 1.8% DECREASE OF THE PORTFOLIO VALUE Change in fair value excluding TT ( m) 594 (12) +0 (9) /12/13 Disposal Capital gain Like-for-like Capex Dev. Acq. 30/06/14 Breakdown of the 1.9% decrease in fair value on a like-for-like basis Market rent effect (ERV): -1.0% Cap rate effect: +0.0% Miscellaneous: -1.0% (works, reversion, transfer taxes change ) 2014 Half-year Results 10

11 PERFORMANCE OF THE PORTFOLIO RISE OF OCCUPANCY RATE Financial occupancy rates (EPRA) 94.0% 92.2% 87.7% 89.0% 87.8% 90.9% 91.5% H Impact Baudry -1.2 pt Impact JdQ +0.8 pt 2014 Half-year Results 11

12 PERFORMANCE OF THE PORTFOLIO LEASE AVERAGE DURATION 5.5 YEARS Schedule in rents ( m) according to lease duration 0 31/12/13 31/12/14 31/12/15 31/12/16 31/12/17 31/12/18 31/12/19 31/12/20 31/12/21 31/12/22 31/12/23 End of lease Fixed term Average time up to next break option: 3.2 years Average time up to lease expiry: 5.5 years 9 new leases(19,800 sqm; 0.9m) 19 renegociated leases(27,400 sqm; 2.1m) 7 terminated leases(4,800 sqm; 0.7m) 2014 Half-year Results 12

13 PERFORMANCE OF THE PORTFOLIO PORTFOLIO YIELD Return by asset type Portfolio Headline Potential Split in value yield yield Paris (Offices) 16.9% 5.6% 5.6% Offices (other regions) 35.4% 7.6% 8.5% Retail 22.1% 6.6% 7.9% Warehouses & Industrials 25.4% 9.0% 9.2% Total 100.0% 7.5% 8.1% 2014 Half-year Results 13

14 SUBSIDIARIES BANIMMO More details on Repositionning property company Portfolio: 19 buildings; Gross rental income: 4.9m; value: 355m. Key events Opening of Bagatelle 5,300 sqm shopping mall in Suresnes Acquisition of a plot of land allowing the development of 15,000 sqm offices in Namur (Belgium). Development by Banimmoof 8,000 sqmof offices for BNP Paribas Fortis in Charleroi (Belgium) Disposal by Banimmoof 6,500 sqmof offices ( 23.2m) under construction close to Brussels (Belgium) and which will be let to the Marsh & McLennan group H Results Rental income 4.9m vs 4.7m Operational result (excl. associates): 2.3m vs 3.1m Significant negative accounting adjustments on the City Mall participation (- 5.7m). Net current result (excl. FV & City Mall): - 0.7m (NR: - 7.5m) 2014 Half-year Results 14

15 SUBSIDIARIES DEVELOPMENT Concerto European Developer Delivery of a logistics platform in Aube for Devanlay(19,000 sqm) Signature with the Petit Bateau group for the development of a 43,500 sqmlogistics platform Filing of building permits for the areas of Cambrai(54,000 sqm) Honfleur ( ,sqm) Project under construction (10,700 sqm) for delivery in Sant Feliu(Spain) Promaffine Completion of 2 residential joint development in Nanterre and Marseilles 2014 Half-year Results 15

16 CONSOLIDATED ACCOUNTS 2014 Half-year Results 16

17 CONSOLIDATED ACCOUNTS CONSOLIDATED EARNINGS ( m) 30/06/13 31/12/13 30/06/14 Gross rental income Net rental income Other income Corporate expenses (5.2) (10.0) (5.1) Current EBITDA (1) Current operating profit Other income and expenses (0.4) Net financial cost (5.6) (11.5) (5.7) Taxes (0.3) (0.5) (0.2) Associates (0.2) 1.9 (2.2) Miscellaneous 0.1 (0.1) (0.1) Net current profit EPRA Earnings (Net current profit Gs) Value adjustments of properties & profit on disposals (10.5) (21.8) (9.6) Fair value adjustments of hedging instr (2.3) Adjustements for associates 0.2 (7.2) (1.9) Others (0.4) (0.9) (0.4) Net non-current profit Gs (7.0) (25.8) (14.3) Net profit group share (0.2) (8.8) (6.4) (1) Current EBITDA represents the current operating profit excluding current depreciation and amortisation costs. This amount excludes the depreciation on Sant Feliu and appears under the other incomes and expenses. (2) Operating profit after value adjustments Half-year Results 17

18 CONSOLIDATED ACCOUNTS NET ASSET VALUE CHANGE ( m) 30/06/13 31/12/13 30/06/14 Shareholders equity (before allocation) PSL adjustment (73.2) (73.2) (73.2) Fair value adjustments to hedging instr Net deferred tax (1.7) (4.1) (4.3) EPRA NAV (excluding transfer tax) EPRA NAV (including transfer tax) EPRA NAV (excluding transfer tax) per share ( ) ( m) (8.1) (9.4) (2.3) +7.9 (1.3) /12/2013 Dividends paid FV properties FV FI EPRA earnings Others 30/06/ per share 23.7 per share Basedon the Net Asset Value of Banimmo Excluding PSL (TSDI) Others: intereston convertibles and PSLConvertibles,etc NAV per share after dilution fromconvertibles 2014 Half-year Results 18

19 FINANCING 2014 Half-year Results 19

20 FINANCING A CONTROLLED LTV FOR A RESUMPTION OF INVESTMENTS LTV of 48.3% ( m) % 100% 80% % 55.0% 51.5% % 48.3% 50.8% 45.5% 45.7% 40% 20% H H % Value Loan LTV Average financing cost of 2.0%, or 3.1% hedging included(vs 1.9% & 3.4%) Floating interest rate risk hedged Implementationof 15m of new swaps and 60m of new caps in June 2014 Half-year Results 20

21 FINANCING FAVOURABLE CREDIT ACCESS Banks relationship diversified 6 main banks Average duration of 5.5 years Financing asset by asset with mortgages Amortizable over middle term Financing in H Mortgage loan: Refinancing Lyon Dauphiné ( 6m) Development credit: Concerto financing( 4m drawn) Refinancing of the 2015 debt service underway 2014 Half-year Results 21

22 FINANCING A SMOOTHED DEBT PROFILE Amortisation of debt( m) Contractual amortisation Repayment at maturity Early repayment A financing policy aiming at smoothing the amortisation Repayment: around 30m p.a. on average Short term available credit lines of 19m 2014 Half-year Results 22

23 STRATEGY& OUTLOOKS 2014 Half-year Results 23

24 STRATEGY& OUTLOOKS OUR STRATEGY [1/2] Geographic concentration of investments Grand Paris and regional cities (Bordeaux, Lille, Lyon, Marseille, Nantes, Toulouse) A coordinated approach with local communities Achieve economies of scale Investing primarily in buildings Providing relatively high yield of an average size of 10m to 30m (offices, retails, logistic platforms) Containing a potential for value creation by their location, rental situation or restructuring A sustained effort to improvement of assets Higher standards in a "sustainable development" approach Management optimization by enhanced cost control Disposal of buildings that no longer meet the investment criterias Becoming customer-oriented Supplement the providing of premises with rental services Secure the loyalty of tenants to improve the profitability of properties 2014 Half-year Results 24

25 STRATEGY& OUTLOOKS OUR STRATEGY[2/2] Breakdown of the portfolio in value terms 25.4% 0.2% 16.9% 22.1% 35.4% Offices (Paris) Offices (Régions) Retail Warehouses and industrial Others 2014 Half-year Results 25

26 STRATEGY& OUTLOOKS PRIORITIES FOR 2014 Active investment research In line with our strategy By leveraging our access to credit And with a comfortable cash position Improve rental performance Lower rental expenses and administrative costs Reduce the vacancy rate Seek partnerships To broaden the range of investment from our experience of the real estate business Enhance the quality of the portfolio Disposal of buildings that no longer meet the investment criterias 2014 Half-year Results 26

27 CONTACTS Affine Maryse Aulagnon Chairpersonand CEO Alain Chaussard Vice-Chairman and Co-CEO + 33 (0) info@affine.fr Frank Lutz Investor Relations + 33 (0) frank.lutz@affine.fr Liquidity contract: Invest Securities Website: Half-year Results 27

28 APPENDIX 2014 Half-year Results 28

29 APPENDIX CONSOLIDATED CASH FLOW ( m) 30/06/13 31/12/13 30/06/14 Funds from operation Funds from operation (excluding cost of debt and tax) Change in WCR (11.2) Taxes paid 0.0 (0.3) (1.0) Operating cash flow Acquisitions & Investments (3.5) (27.1) (4.7) Disposals Others 1.3 (1.2) 0.1 Investment cash flow 1.7 (20.1) 7.6 New loans Loan repayments (25.7) (41.9) (18.0) Interest (5.6) (11.5) (5.8) Others (of which dividends) (8.4) (12.8) (8.2) Financing cash flow (24.6) (18.6) (22.0) Change in cash position (6.8) (7.6) (8.8) 2014 Half-year Results 29

30 APPENDIX CONSOLIDATED BALANCE SHEET ( m) 30/06/13 31/12/13 30/06/14 Properties of which investment properties of which property held for sale Equity holdings Equity affiliates Cash Other assets Shareholders equity (before allocation) of which convertibles of which PSL Bank debt Other liabilities Total balance sheet Half-year Results 30

31 APPENDIX SHARE PRICE ( ) AND AVG TRANSACTION VOL. (000) 17 Affine Euronext IEIF SIIC France EPRA Europe janv.-14 mars-14 mai-14 juil janv.-14 mars-14 mai-14 juil Half-year Results 31

32 APPENDIX A DIVERSIFIED RISK ON TENANTS A diversified portfolio of customer Breakdown of rents 344 Leases 9% 3%3% 3% 3% TOP 5 SNCF Mairie Corbeil-Essonne TDF Distrib - Pharma 79% Heidelberg France Others < 3% Overall, the group has 344 leases corresponding to an average rental incomeof 129,000 by tenant or 103,000 excludingthe TOP Half-year Results 32

33 APPENDIX LTV (NET DEBT/ PORTFOLIO VALUE) ( m) 30/06/13 31/12/13 30/06/14 LOAN Net financial debt Debt allocated to lease financing (22) (20) (18) Debt allocated to investment securities Debt allocated to development business Debt for investment properties VALUE Value of properties (incl. TT) Property companies on equity basis VEFA & Fixed assets adjustments Adjusted portfolio value incl. taxes LTV (net debt on portfolio value) 45.7% 46.8% 48.3% 2014 Half-year Results 33

34 APPENDIX DIVIDEND Affine, high yield property company Cash Share * A 6.5% yieldbasedon the sharepriceof 31/12/2013 ( 13.94) *In the assumption of the BRS conversion Half-year Results 34

35 APPENDIX VACANCY BY AREA Financial occupancy rates (EPRA) Total 91.5% Offices (Paris) Offices (Regions) Retail Warehouses and industrials 100.0% 88.4% 83.6% 97.8% 2014 Half-year Results 35

36 APPENDIX SHAREHOLDING Shareholding Annualised capital turnover rate of 47% based on the float Annualised capital turnover rate of 31% Free float* 64.8% (voting rights 48.7%) Holdaffine 35.2% (voting rights 51.3%) * Of which La Tricogne: 6.6% of capital and 4.8% of voting rights Affine is listed on NYSE Euronext Paris 30 Jun 14 Number of shares 9,051,431 Share price Market capitalisation 132.2m Change in % EPRA earnings per share 0.66 Ticker (Bloomberg / Reuters) IML FP / BTPP.PA 2014 Half-year Results 36

37 APPENDIX PARIS COMPARED TO REGIONS Capital yield(%) Rentalyield(%) Paris Régions Paris Régions Source: IPD Source: IPD Regions present a total return more stable A variabilityof 35 % less thanthe Paris one An average yield of 200 bps above Paris one 2014 Half-year Results 37

38 APPENDIX POPULATION & TGV LINE 2016 : LGV Est Europe 106 km of new TGV line Paris-Strasbourg: 1h50 vs 2h : LGV Bretagne Pays de la Loire 182 km of new TGV line Paris-Rennes: 1h30 vs 2h : LGV Sud Europe Atlantique 302 km of new TGV line Paris-Bordeaux: 2h10 vs 3h00 Grand projets ferroviaires du Sud Ouest Current TGV Line TGV line under construction TGV line under study 2014 Half-year Results 38