2017 Annual Results. 12 March la foncière parisienne

Transcription

1 2017 Annual Results 12 March 2018

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

3 2017 key figures EPRA liquidation NAV Rental income strategic assets (Offices in Paris CBD) Revalued Portfolio % of assets within Paris LTV Ratio 2017 Dividend * /share ( %) 60.5 m (+6.2 %) 2,090 m (+7.5 %) 98 % (+3 pts) 36 % (-3 pts) 0.81 /share (+2.5 %) * To be approved by the General Meeting of Shareholders on 4 May

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

5 2017: a new year of strong growth of portfolio Portfolio: % In million l.f.l basis: +7.8 % ,090 1,944 1,939 Refocusing strategy on Prime Parisian Offices End of 2016 Acquisitions + Capex Disposals (value 2016) End of 2017 before revaluations Revaluations End of

6 Renewed compression of yields in 2017 Sq.m. Value excl. duties m 2017 Rental income m Yield / Value /sq.m Offices in Paris 143,600 1, % o/w Paris CBD 117,536 1, % 3.8 % 3.7 % Residential 16, ,447 9,457 6

7 Acquisition in June 2017: building at 73 rue Ste Anne (Paris 2 e ) Offices building at 73 rue Ste Anne (Paris 2 e ) Rental area: 1,527 sq.m. Fully rented, multi-tenants 7

8 Acquisition in November 2017: 11 rue de Milan (Paris 9 e ) Mansion and offices at 11 rue de Milan (Paris 9 e ) Rental area: 2,431 sq.m. o/w 1,278 sq.m. of offices Haussmann-style complex of 990 sq.m. to be renovated, fully rented 288 sq.m. of offices, fully rented 8

9 Acquisition in November 2017: Offices on the Champs-Elysées Offices at avenue des Champs-Elysées (Paris 8 e ) Rental area: 200 sq.m. Fully rented 9

10 Acquisition in October 2017: Hotel walls at 15 rue de Montyon (Paris 9 e ) Hotel walls at 15 rue Montyon (Paris 9 e ) Rental area: 921 sq.m. Fully rented 10

11 Acquisition in December 2017: 5 avenue de Messine (Paris 8 e ) Offices building at 5 avenue de Messine (Paris 8 e ) Rental area: 2,277 sq.m. Fully rented 11

12 Continuation of sales of non strategic assets for an amount of 88 million 2017 disposals: 88.1 m Net book gain: 34 m Residential in Paris 2017 disposals: 31,2 m Average price: /sq.m. Net book gain: 18,6 m Offices in Ile-de-France and Regions 2017 disposals: 57,0 m Net book gain: 15,4 m 12

13 Concentration on Offices in Paris CBD 41 avenue de Friedland, 8 e Acquisition (incl. duties) in 2014: 75.1m Appraisal (excl. duties) at 31 Dec. 2017: 98.4m 11 bis rue Roquépine, 14 rue Cambacérès, 8 e Acquisition (incl. duties) in 2011: 34.8m Appraisal (excl. duties) at 31 Dec. 2017: 67.3 m 13

14 Concentration on Offices in Paris CBD boulevard Haussmann, Paris 9 e Acquisition (incl. duties) in 2013: 146.5m Appraisal (excl. duties) at 31 Dec. 2017: 250.1m 17 avenue George V, Paris 8 e Acquisition (incl. duties) in 2010: 40.3m Appraisal (excl. duties) at 31 Dec. 2017: 70.7m 14

15 Growth drivers In billion Increase over 7 years Bn 0.95 (0.37) 59% Revaluations 0.67 Disposals Reval. 41% Acquisitions less disposals Acquisitions End of 2010 End of

16 Focusing on Offices within Paris CBD on Offices vs Residential A continuing strategy of focusing the assets portfolio on Paris vs In-the-Country on Paris CBD vs Paris out of CBD % 98% 90% 82% 92% 78% 95% 92% 78% 78% 77% 88% 95% 92% 77% 1.1 Billion 2.1 Billion 1.1 Billion 2.1 Billion 0.9 Billion 1.7 Billion Basis 100 % total assets Basis 100 % total assets Basis 100 % Parisian Offices 16

17 Content I. Introduction II. Portfolio III. Rental business IV. Financial results V. Outlook 17

18 Rental revenues: million from strategic assets In million Strategic assets (Offices in Paris CBD) Non-strategic assets Acquisitions less disposals + 3.5m 1.6 Improvement of financial occupancy rate and others Total rental revenues - 1,9 M 3.5 Strategic assets (5.4) Non-strategic assets Offices and commercial - 4.9m (4.3) Residential Disposals (0.6) Lease Management (0.5)

19 2017 key indicators for strategic assets (excl. Commercial) % 560 Paris Paris CBD Paris Paris CBD Potential Paris CBD Source: Cushman Potential revenues ( m) Rental income ( /sq.m.) Source: BNP Real Estate at 31 December

20 Rental values on the rise 11 rue de Milan, 9 e Mansion: 1,200 sq.m. Signed lease 630/sq.m. BP lease 470/sq.m. vs + 34 % CNC Portfolio, 16 e 3 adresses: 7,700 sq.m. Expected lease 750/sq.m. BP lease 650 sq.m. vs + 15 % 20

21 Rental values on the rise 117/119, quai de Valmy, 10 e Plateau 1,000 sq.m. / Total area: 7,800 sq.m. Re-rental lease: 520/sq.m. Current lease: 337/sq.m % Recent locations 19 rue du Quatre Septembre, 2 e : + 16 % at 540/sq.m. 1 bis Cité Paradis : + 40 % at 520/sq.m. 1 Cité Paradis : + 55 % at 570/sq.m. 21

22 Secured strategic assets portfolio by a high number of leases Rental income from Offices in Paris Number of leases Average area / lease Paris excl. CBD Paris CBD 55.7m sq.m. 7.7m sq.m. 48.0m sq.m. Source: Offices leases in Paris 22

23 Significant improvement in EPRA vacancy rate Based on leasable portfolio 9.2 % 6.8 % 2.7 % 5.8 % 4.4 % 0.7 % Total portfolio Strategic assets Relocations: Rue Copernic Avenue de Friedland Boulevard Haussmann 23

24 2017 investments on portfolio Refurbishing and valuation works 21 % 7.6m 49 % Works related to disposals 15 % 15 % Works related to acquisitions Maintenance and repair (reinvoiced to tenants) 24

25 BREEAM certification policy of strategic assets Certifications at the end of 2017: Very Good ou Good 67% Certifications planned in % Target: 82 % of strategic assets being certified at the end of % 25

26 Content I. Introduction II. Portfolio III. Rental business IV. Financial results V. Outlook 26

27 EPRA Earnings (In million) Change % Rental income % Rental expenses incurred and others SG&A Other operating revenues and charges Financial result Taxes (0.8) (5.8) (0.9) (28.0) (0.8) (1.1) (5.3) (0.8) (28.8) (0.8) EPRA Earnings % 27

28 Net result (In million) Change % EPRA Earnings % Amortisation on investment properties Depreciation on investment properties Profit on disposals Fair value of financial instruments Termination costs of swaps (29.4) (0.6) (2.3) (29.7) (3.2) 31.8 (1.2) (4.4) Net result % 28

29 Renewed growth of EPRA liquidation NAV: % EPRA liquidation NAV /share % Two leverages for growth: Strategy of focusing on assets in Paris CBD Mechanical effect of the reimbursement of annually redeemable loans End of 2015 End of 2016 End of

30 Breakdown of NAV ( m) 31 December December 2016 Buildings 2,090 1,944 o/w Offices in Paris 1,890 1,677 o/w Offices in Ile-de-France and in the regions o/w Residential Net debt Others EPRA Liquidation NAV 1,312 1,157 Acquisition costs Replacement NAV 1,469 1,301 Number of shares (diluted, net of own control) 25,671,555 25,660,210 EPRA Liquidation NAV per share Replacement NAV per share

31 Solid LTV Ratio 1,944 million 2,090 million 761 million 39 % 749 million 36 % End of 2016 End of 2017 Revalued portfolio Net debt LTV ratio 31

32 Secured long term financing Breakdown of net financial debt at 31 December % 47 % 3 % 6 % 749 m 66 % (% based on gross financial debt) Corporate financing Credit line In fine Redeemable loans Optimisation of financing structure in m refinancing over 15 years (replacing an average maturity of 6 years) Credit line renewed for 3 years Average weighted cost of debt: 3.38 % Remaining life of 11 years Gross financial debt at 31 December 2017: maturities per year 100 m 50 m

33 A sustained growth policy for the dividend per share ,3 % (yearly average) % * Interim dividend Complement to total dividend * To be approved by General Meeting of Shareholders on 4 May

34 Content I. Introduction II. Portfolio III. Rental business IV. Financial results V. Outlook 34

35 Clear positioning of long-term and proactive investor 837 m of value created over (o/w 151 m in 2017) In million Continuous search for quality assets in Paris on strict criteria (multi-tenancy, occupancy rates, etc) Acquisitions on optimal conditions Valuation gain realized at the acquisition Value created as measured by experts revaluations 35

36 Secured Tertiary Portfolio 30% of Offices rental revenues made by Weight in % of the first tenant in Offices rental revenues Low and diluted tenant risk 5 tenants 10 tenants 9% 6.5% High number of leases Paris CBD Paris excl. CBD 186 leases av. 530 sq.m./lease 82 leases av. 298 sq.m./lease 268 leases Offices and Commercial: term of leases at 31 December 2017 Long term leases splitted over the time 20% 10%

37 Defensive and manoeuvrable postionning High capacity to resist to the compression of capitalisation rates OAT 10 years Market trends Prime rate, Paris CBD Optimal conditions of acquisitions over the years positionning TERREÏS above Market yields Source: BNP Paris Real Estate High potential of increase in rents Market average at relocation TERREÏS Paris CBD Average sq.m. rents in 2017 TERREÏS rents below Market average Good protection from an increase in interest rates Remaining life of debt: 11 years Fixed rate debt Remaining life above Market average 37

38 2018 Outlook Goal: keep focusing on Paris CBD TERREÏS will continue to seek investment opportunities which come available in the Parisian Offices prime sector Will pursue to optimize the resale of its Residential in Paris and Offices assets in Ile-de-Gfrance and in the regions in optimal conditions Net proceeds from disposals will be reinvested in Offices within Paris CBD 38

39 Still 200 million of assets to sell 200 million of assets to sell, or 10% of total portfolio Ile-de-France 32 million Residential 155 million or 198 apartments Regions 13 million Inner-Paris Tertiary Net proceeds from disposals to be reinvested in Offices within Paris CBD 39

40 TERREÏS Model key aspects Property investment company focused on Offices in Paris CBD with diluted tenant risk and high occupancy rates Strong capacity to create value from the moment of acquisition Optimal and inexpensive management conditions Good protection from a potential increase in interest rates Financing mainly through fixed rates mortgaged-redeemable loans Mechanical improvement of NAV through annual reimbursement of debt 40

41 NAV and net debt long term trends Liquidation NAV Net debt Time Everything being equal, the regular reimbursement of a mainly mortgagedredeemable debt mechanically improves NAV and mechanically reduces LTV ratio 41

42 Global value creation Gain on NAV / share (NAV N NAV N-1) in /share Dividend in /share Gain on NAV + dividend / NAV beginning of period 25.6 % 24.2 % 16.9 % 19.3 % 19.0 % 23.6 % 14.7 % 8.75 /sh 6.64 /sh 4.77 / sh 4.13 /sh 4, /sh 3,56 3, /sh 4, /sh 7,96 5,29 5, * * To be approved by General Meeting of Shareholders on 4 May

43 APPENDIX

44 Profit and loss account (1/2) In % In % of rental of rental (In million) 2017 income 2016 income Change % Rental income % % % Other revenues Reinvoiced charges Management and rental fees 2.5 (2.5) (0.8) 2.1 (2.5) (0.7) Net revenue income % % % Operating charges (6.2) (5.4) - EBITDA (57.8) 89.2 % % % Depreciation (30.0) (30.5) Current operating income % % % 44

45 Profit and loss account (2/2) (in million) Change % Current operating income % Margin on assets disposals Others (2.7) Operating income % Financial income Taxes (30.8) (0.8) (34.5) (0.8) Net income % Group share Minority interests Net income per share % 45

46 Consolidated balance sheet (In million) ASSETS Buidings Other non current assets Current assets Cash* Total Shareholders equity Non current liabilities o/w financial debt Current liabilities o/w financial liabilities Total

47 TERREÏS shareholding basis as of 31 December 2017 Individual shareholders o/w employees 56 % Ovalto 54 % Float 46 % 44 % Institutional shareholders (58 % France, 42 % International) Market Capitalisation at 2 March 2018: 1,02 Billion Float: 469 million 47

48 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 11 April 2017 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. 48