2013 ANNUAL RESULTS SFAF (French Financial Analysts Association) meeting of 28 March A leading property company in the retail park sector

Transcription

1 2013 ANNUAL RESULTS SFAF (French Financial Analysts Association) meeting of 28 March 2014

2 2 Important notice This document was prepared by Patrimoine & Commerce for the sole purpose of presenting its annual results on28march2014. This document may not be copied or circulated, in whole or in part, without the Company s prior approval. Patrimoine & Commerce cannot be held liable if this document is used by any person whodoesnotbelongtothecompany. This document contains no quantified results forecasts. The Company makes no undertaking or provides no guarantee that its goals will be achieved, or regarding the aimsthatitmayannounceaspartofitsbusinessplans. Although the Company believes that its targets are reasonable, it reminds you that their achievement is subject to risks and uncertainties, including those described under the Risk factors heading in the annual Registration Document.

3 3 CONTENTS Low-costRetailparksmodel > 2013 Highlights > Portfolio 2013 consolidatedresults Strategyand outlook

4 4 LOW-COST RETAIL PARKS MODEL

5 5 Suburban retail parks: a well-organised offer Retail park Beynost Visibility Accessibility Tenant Parking

6 Retailbrands withbusiness modelsbuilt on the basis of tightcostcontrol 6 Personal goods Household goods DIY & electrical appliances Culture - entertainment Children Services Food and catering

7 Retail park, a business model which meets the various players expectations 7 An answerto consumers requirements > Diversity and complementarity of retail brands > Fair price offerings An attractive environment for retailbrands > Low property costs and high marketability Service charges 15 /m² A preferred solution for local authorities > Better control of commercial town planning and development > Complementarity with city-centre retail outlets

8 8 Retail park, a profitable business model for investors Assetsperfomances > Higher return than shopping centers and high street retail Resilientrevenues > High historical occupancy rate c. 98% > Lowturnover of tenants c. 1% 7.5% LowCAPEX levels > Reduced maintenance costs > Non-significant greening investments A model with a strong potentialof development

9 Highlights SuccessfulPublic exchange offer on Foncière Sepric 99.2% of the capital Debt Renegotiation 30 M at4.45% + 4 M/yearof cash flow 85 M deliveries/acquisitions 35.5 M of disposals m² delivered in M under agreement Adoption of SIIC statusby 7 assetsin 2013 : a resultof 2 M

10 10 Successful public exchange offer on Foncière Sepric Integrationof staff and properties Structuration of the processes Harmonizationof the information systems Rationalizationof the legalstructure

11 11 Renegotiation of Bond Principal 30 M Interestrate4.45% Repaymentby 2 instalmentsof 15 M in 2020 and 2021 vs. annual linear repayment of 4 M/p.y. previously Improvedcash-flow withthe prospect of a betterdividendyieldof P&C

12 Principal delivries in 2013 Retail park of Puymaret(19) 12 Shopping center of Cherbourg (50) Surface area m² Delivery date December 2013 Occupancy rate 84% Rental income est. 1.2 M Mall of the Palais des Congrès d Antibes (06) Surface area m² Opening date May 2013 Occupancy rate 95% Rentalincomeest. 5.4M ( 1.4 M at26%) Surface area 7000 m² Opening date July 2013 Occupancy rate 90% Rental income est. 1.3 M

13 , a year of development Retail park of Pontarlier (25) Limoges le Vigen(87) Surface area 5850 m² whom3 180 m² purchased by the retail brands Tenants Intersport, Chaussea, Norauto Delivery date December 2013 Occupancy rate 100% Yield rate 7.5% Pierrelaye (95) Surface area 1145 m² Tenants Orchestra Delivery date March 2014 Occupancy rate 100% Yield rate 7.25%

14 14 Progress of disposals 5assetssoldduringthefinancialyearfor 35.5M > PublicpartofthePalaisdesCongrèsd Antibes(06) > Bordinvest (33), Saint-Avold (57), Poitiers Invest Bureaux (86) and Saint-Cyr-sur- Loire(37) 3 property assets under agreement as at 31 December 2013 for 4.9M Disposalinlinewiththeappraisedvalue: +1% vs. previous appraisal value Bordeaux Clermont-Ferrand

15 15 Portfolio as at 31 December 2013

16 16 Patrimoine & Commerce : 95% of retail assets Total 501 M Shopping galeries and centers 128 M 26% Retail parks 347 M 69% 5% Offices & businesses 26 M Market value, excluding transfer taxes and assets held for sale

17 17 Natural «sustainable development» assets Retail parks that are intrinsically focused on a sustainable development approach > No air-conditioned common parts > Neither escalators nor lifts > Significant green areas A strongcommitmentof Patrimoine & Commerce > Supported by a specialized firm : BHC Énergie > Externalaudit by the Green team of Grant Thornthon > Average energy consumption of rented property c. twice lower thanthe averageof the retailsector(study«ademe» 2011) > Energy performance of buildings delivered minimum > 10% than regulation > BREEAM Certification «Level Good» targeted for an ongoing project

18 CONSOLIDATED FINANCIAL STATEMENTS

19 19 Key figures as at 31 december assets m² 501 M (1) 31.7 M of rental income (2) 49.3% LTV (3) 7.5% Capitalisation rate (4) (1) Excluding transfer taxes and assets held for sale (2) 2013 gross rental income (3) Restated for the net cash-in on the sale of assets held for sale, guarantee deposits and hedging instruments (4) Annualised rental income + ERV of the vacant areas/value of the assets, excluding transfer taxes

20 20 Profit and loss acount In M 31/12/13 Pro forma 31/12/12 Variation in M Variation in % Net rental income % Normative EBITDA % EBITDA / Net rental income 88% 88% Current tax on non-siic assets (0.5) (0.4) (0.1) +30.4% Cost of net financial debt (7.7) (5.9) (1.8) +29.8% Net recurring income % Other operating income and expenses (5.9) 0.2 (6.1) NA Change in the FV of the propertiesand FV of the financial instruments 3.9 (3.2) 7.1 NA Deferred and exceptional tax 3.2 (1.1) 4.3 NA Net income % Minority interest (1.2) (0.7) (0.5) +71.1% Net income group share % The EPS* risesfrom 1.49 on 31/12/12 to 2.01 on 31/12/13, an increaseof c.+35% * EPS calculated on the total number of shares( shares before dilution and treasury shares excluded)

21 21 Sound financial structure In M Equity, Group share Investment properties Minority interests 278 Debt Assets held for sale Cash and equiv Other Other Assets December 2013 Liabilities December 2013

22 22 Gross rental income In M (0.1) 15, Gross rental income2012 pro forma Disposals Deliveries Acquisitions Indexations Renegotiations Gross rental income 2013

23 23 Breakdown of retail rental income Type of Retail outlet Top 15 retail brands (45% of rental income) 7% 1% Personal goods 13% 31% 48% Household goods Culture & entertainment Food Other The largestretailbrand accountsfor 8%of retail rental income

24 24 Stable income > Occupancy rate 97%* > Rate of arrears < 1% > Lease indexation ICC 35% ILC 63% ILAT (office) 2% > Average rent Retail parks 121 /m² Shopping galleries and centres 325 /m² > Tenant turnover rate 1% 5 M * Restated for projects delivered in 2013 Lease expiry schedule (end of lease) 4 M 3 M 2 M 1 M 0 Renewed tacitly >2026

25 25 Solid financial ratios In M 31/12/13 31/12/12 Net debt Average debt maturity Fixed& hedged floating-rate debt 81% 67% Average interest rate on the debt 3.9% 4.0% Financial leases M Gross debt Bonds 30.0 M Borrowings M LTV % 45.3% 1 Restatedfor the net cash fromassetdisposalsof assetsheldfor sale, guaranteedepositsand hedging instruments

26 26 Linear debt repayment In M Bonds Borrowings 30.0 Financial leases , , year 2 years 3 years 4 years 5 years Beyond5 years * Excluding VAT bridge loans, real estate development bridge loans, accrued interest, etc.

27 27 23%increasein NAV due to the PEO closing > Progressionnearby 5.7% of NAV per share, changingfrom as at 31/12/12 to as at 31/12/13 In M (6.2) NAV excluding transfer taxes January 2013 PEO Dividends FV Variation Result, Group share NAV excluding transfer taxes December 2013

28 28 Structured and independent corporate governance Management providedby EricDuval Supervisory Boardchairedby Dominique Jouaillec > 13 membersof whom8 are independentand 3 former (non independent) Sepric members Investment Committee chaired byjean-hubert Moitry > 6 membersof whom5 are independent Audit Committeechairedby Thierry de Haynin > 3 membersof whom1 isindependent Compensation Committeechairedby Humbert de Fresnoy (ArkéaGroup) > 4 membersof whom3 are independent

29 Outperformance of Patrimoine & Commerce stock price % > Shareholders as of 31 décembre 2013 Free float 28% E. Duval Group 30% Suravenir 5% BPVF 11% Robbe Family 10% Vergely Family 16% Marketcapitalisation of 183 Mas at26 march2014 > Increasing daily traded volume (+95%)* * Tradedvolume fromapril 2013 to March 2014 vs. previous12 months

30 30 STRATEGY AND OUTLOOK

31 Leading property company specialized in low cost retail parks 31 Building a pure player retail REIT in mid-sized towns > Transactions in town centers or close to mid-sized towns Expanding while controlling our financial equilibrium > Maintaining a Loan-to-Value ratio of around 50% > Debt institutionalisation Continue the asset disposal program opportunistically > Disposal of office assets > Disposal of retail assets that have reached maturity

32 Optimizationof information systems(premiance) Developmentof the committedpipeline Opportunisticacquisitions Disposalof non strategicor mature assets

33 33 The Patrimoine & Commerce pipeline Focus on Epagny and La Rochelle projects Annecy Épagny (74) Surface area Tenants Opening Occupancy rate Estimated rental income m² Groupe Beaumanoir, Cultura, Chaussea, Générale d optique End of % 1.2 M La Rochelle (17) Surface area Tenants Opening Occupancy rate Estimated rental income m² Darty and Cultura May % 0.9 M

34 34 Confirmed long-term goals Propertyassetsof 1 billion by the end of 2016 Yield of over 7.0% Loan-to-Value ratio of around 50% Retail park in Bourg-en-Bresse