2016 Annual Results. March 8, la foncière parisienne

Transcription

1 2016 Annual Results March 8, 2017

2 Content I. Introduction II. Portfolio III. Rental business IV. Financial results V. Outlook 2

3 2016: key figures EPRA liquidation NAV Rental income Parisian Tertiary Revalued portfolio % of assets within Paris LTV ratio 2016 Dividend* per share (+21.4 %) 57.0m (+7.4 %) 1,944m (+13.5 %) 95 % (+5 pts) 39 % (-5 pts) 0.79 per share (+3.9 %) * To be approved by the General Meeting of Shareholders 3

4 Content I. Introduction II. Portfolio III. Rental business IV. Financial results V. Outlook 4

5 2016 : a new year of strong growth of portfolio Portfolio: % In million Lfl: % Replacement value * ,944 2,088 1,712 1,733 Refocusing strategy on Prime Parisian Tertiary End of 2015 * Sales price: 89m Acquisitions + Capex Disposals (Value 2015) End of 2016 before revaluations Revaluations End of 2016 End of

6 Renewed compression of yields in Sq.m. Value excl. duties Rental income m Yield / Value /sq.m Tertiary in Paris 139,228 1, % o/w Paris CBD 113,002 1, % 4.4 % 4.3 % Residential 17, ,457 9,361 6

7 Acquisition of three buildings to CNC in the middle of Paris CBD for 101m Office buildings at 11, 32/34 rue Galilée et 10/12 rue de Lübeck (Paris 16 e ) Rental area: 8,316 sq.m. CNC tenant > end of Q Annual yield of around 4.60 % after refurbishment and re-commercialisation 7

8 Continuation of sales of non strategic assets for 89m 2016 disposals: 89.4m* Net book gain: 31.8m Residential in Paris 2016 disposals: 34.8m Average price of /sq.m. Net book gain: 19.2m Paris area and Regions 2016 disposals: 54.6m Net book gain: 12.6m * Sales price. Appraisal value: 88m 8

9 Concentration on Prime parisian Tertiary 41 avenue de Friedland, 8 e Purchase incl. duties 2014: 75.1m Appraisal value excl. duties at 31 Dec. 2016: 97.7m 11 bis rue Roquépine 14 rue Cambacérès, 8 e Purchase incl. duties 2011: 34.8m Appraisal value excl. duties at 31 Dec. 2016: 61.3m 9

10 Concentration on Prime parisian Tertiary boulevard Sébastopol, 1 er Purchase incl. duties 2011: 69.1m Appraisal value excl. duties at 31 Dec. 2016: 110.7m boulevard Poissonnière, 9 e Purchase incl. duties 2011: 119.5m Appraisal value excl. duties at 31 Dec. 2016: 226.1m 10

11 Concentration on Prime parisian Tertiary boulevard Haussmann, Paris 9 e Purchase incl. duties 2013: 146.5m Appraisal value excl. duties at 31 Dec. 2016: 223.7m 17 avenue George V, 8 e Purchase incl. duties 2010: 40.3m Appraisal value excl. duties at 31 Dec. 2016: 67.3m 11

12 Portfolio growth drivers Billion of euros 1.2 (0.3) Bn Increase over 8 years 40% Revaluations Disposals Reval % Acquisitions less disposals 0.15 Merger A&I Acquisitions 10% Merger A&I End of 2008 End of

13 Focusing on Tertiary assets within the Paris CBD A continuing strategy of focusing the assets portfolio on the Tertiary vs Residential on Paris vs regions on Paris CBD vs Paris out of CBD % 95 % 88 % 82 % 92% 78% 95% 92% 78 % 78% 77% 88% 95% 92% 77 % 1,1 billion 1.9 billion 1.1 billion 1.9 billion 0.9 billion 1.7 billion Basis 100 % total assets Basis 100 % total assets Basis 100 % Tertiary parisian assets 13

14 Content I. Introduction II. Portfolio III. Rental business IV. Financial results V. Outlook 14

15 Parisian Tertiary rental income: + 3.9m (- 4.0m globally) Total rental income ( m) Parisian Tertiary: + 3.9m Other Tertiary: - 7.4m Acquisitions less disposals 1.6 (2.9) Improvement of financial occupancy Disposals (4.5) Residential (0.5) rate 66.7 Lease management

16 2016 key indicators for Parisian Tertiary assets (excl. Retail) Paris Paris CBD Potential revenues ( m) Paris Paris CBD Rental income ( /sq.m.) 16

17 Secured Parisian Tertiary portfolio by a high number of leases Paris Tertiary rental income Number of leases Average area / lease Paris excl. CBD Paris CBD 49,2 M m m sq.m. 583 sq.m. 17

18 Decrease in EPRA vacancy rate Based on leasable portfolio 8.0 % 9.2 % 6.8 % 6.0 % 5.8 % 4.4 % Total portfolio Paris Tertiary Relocations: Rues Galilée, St Lazare et Lafayette (under restructuration in 2015) Rue Chaptal and avenue de Friedland 18

19 2016 investments on portfolio Refurbishing and valuation works 29 % 8.0m 41 % Works related to disposals 25 % 5 % Works related to acquisitions Maintenance and repair (reinvoiced to tenants) 19

20 BREEAM Certification process of parisian Tertiary Certifications at the end of 2016: 40% Very Good ou Good Certifications planned in 2017: 37%, o/w 29% on process Target: 77 % of parisian Tertiary assets being certified at the end of

21 Content I. Introduction II. Portfolio III. Rental business IV. Financial results V. Outlook 21

22 EPRA Earnings (In million) Change % Rental income % Rental expenses incurred and others SG&A Other operating revenues and charges Financial result Taxes (1.1) (5.3) (0.8) (28.8) (0.8) (1.1) (5.7) (0.8) (28.8) (0.8) EPRA Earnings % 22

23 Net result (In million) Change % EPRA Earnings % Amortisation on investment properties Depreciation on investment properties Profit on disposals Fair value of financial instruments Termination cost of Issy swap (29.7) (3.2) 31.8 (1.2) (4.4) (32.0) (11.9) Net result % 23

24 Renewed growth of EPRA liquidation NAV: % per share % Two leverages for growth: Strategy of focusing of assets on Paris CBD Mechanical effect of the reimbursement of annually redeemable loans End of 2014 End of 2015 End of

25 Breakdown of NAV ( m) 31 December December 2015 Buildings 1,944 1,712 o/w Tertiary Paris 1,677 1,353 o/w Tertiary Ile-de-France and regions o/w Residential Net debt Others EPRA Liquidation NAV 1, Acquisition costs Replacement NAV 1,301 1,059 Number of shares (diluted, net of own control) 25,660,210 25,663,444 EPRA Liquidation NAV per share Replacement NAV per share

26 Comfortable level for LTV ratio 1,712m 1,944m 746m 44 % 761m 39 % End of 2015 End of 2016 Revalued portfolio Net debt LTV ratio 26

27 Secured long term financing Net debt breakdown as of 31 December weighted average cost of debt: 3.65 % 1 % 20 % 11 % 761m 68 % 100 % redeemable loans In fine 120m Credit lines Corporate financing 40m Maturities per year (In m) Situation as of 31 December

28 A sustained growth policy for the dividend En /action % on a yearly average , % * Complement to total dividend Interim dividend * To be approved by General Meeting of Shareholders on May 10,

29 Content I. Introduction II. Portfolio III. Rental business IV. Financial results V. Outlook 29

30 Clear positioning of long-term and proactive investor 737m of value created over (o/w 211m in 2016) Continuous search for quality assets in Paris on strict criteria (multitenancy, occupancy rates, etc) Acquisitions on optimal conditions In m 25,1 26,0 85,6 65,0 91,0 118,0 115,8 211,0 Valuation gain realized at the acquisition Value created as measured by experts revaluations 30

31 2017 outlook Goal: keep focusing on Paris CBD TERREÏS will continue to seek investment opportunities which come available in the prime Paris Tertiary sector Will pursue to optimize the resale of its residential, and tertiary assets regional and Paris area in optimal conditions Net proceeds from disposals will be reinvested in tertiary assets within Paris CBD 31

32 267m of assets on sale 267m of assets on sale, or 14 % of total portfolio Paris area 83m Residential 162m Regions 22m Tertiary within Paris Net proceeds from disposals to be reinvested in tertiary assets within Paris CBD 32

33 Tertiary assets in the Paris area: Antony, sold in January 2017 Sale price: 44m Net book gain: 23m 33

34 Tertiary assets in the Paris area: Ivry sur Seine Quai Auguste Deshaies 13,000 sq.m., vacant since mid-february 2016 Relocation or conversion into hotel residence 34

35 Residential assets in Paris rue Marbeuf Paris 8 e avenue de Messine Paris 8 e 43 rue de Lille Paris 7 e 35

36 Assets in the regions Shopping arcade, downtown Chartres Tours (4,500 sq.m.) Thiers Tower Nancy (4,300 sq.m., 20%) 36

37 TERREÏS Model key aspects Property investment company focused on tertiary assets in Paris CBD with diluted tenant risk and high occupancy rates Strong capacity to create value from the moment of acquisition and through optimal and inexpensive management conditions Financing through fixed rates mortgaged-redeemable loans Dividend partly provided by non-strategic assets disposals programme Mechanical improvement of NAV through annual reimbursement of debt 37

38 NAV and net debt long term trends Liquidation NAV Net debt Time Everything being equal, the regular reimbursement of a 100% mortgagedredeemable debt mechanically improves NAV and mechanically reduces LTV ratio 38

39 Global value creation Gain on NAV/share (Year N NAV Year N-1 NAV) /share 25,6 % 24,2 % Dividend ( /share) Gain on NAV + dividend / NAV at the begining of period 23,6 % 16,9 % 19,3 % 19,0 % 8,75 /share 4.77 /share 4.13 /share /share /share ,05 /share * * To be approved by the General Meeting of Shareholders 39

40 APPENDIX

41 Profit and loss account (1/2) (In million) In % In % of rental of rental 2016 income 2015 Change % income Rental income % % -5.7 % Other revenues Reinvoiced charges Management and rental fees 2.1 (2.5) (0.7) 2.0 (2,5) (0.7) Net revenue income % % -5.6 % Operating charges (5.4) (6.4) - EBITDA % % -4.6 % Depreciation (30.5) (32.0) Current operating income % % 41

42 Profit and loss account (2/2) (In million) Change % Current operating income % Margin on assets disposals Others 31.6 (2.7) 27.1 (11.9) Operating income % Financial income Taxes (34.5) (0.8) (28.8) (0.8) Net income % Group share Minority interests Net income per share % 42

43 Consolidated balance sheet (In million) ASSETS Buidings Other non current assets Current assets Cash Total 1, ,100 1, ,073 Shareholders equity Non current liabilities o/w financial debt Current liabilities o/w financial liabilities Total , ,073 43

44 TERREÏS shareholding basis as of 31 December 2016 Individual shareholders Ovalto Investissement Float 44 % 56 % 54 % 46 % ( 410m)* Institutional shareholders (60 % France, 40 % International) * Size of Float at March 1,

45 Disclaimer The present document contains projections and descriptions of TERREÏS future strategy, objectives and prospects. These projections and descriptions may be affected by known or unknown risks, uncertainty and other random factors that could ensure that TERREÏS future results, performance and achievements are significantly different from what is envisaged or suggested in the present document. These risks are described in the «Risks Factors» part of the Document de Référence registered with AMF on April 6, 2016 with the number D TERREÏS makes no commitment and extends no guarantee that it will fulfil or meet its future strategy, objectives and prospects. Unless the law states otherwise, TERREÏS makes no commitment to update or revise the projections and descriptions contained in the present document. The present document does not constitute in any way a solicitation to sell, buy or subscribe to TERREÏS shares. 45