Acceleration of Development Pipeline 3-months 2018 Rents. Milan, 12 April 2018

Transcription

1 Acceleration of Development Pipeline 3-months 2018 Rents Milan, 12 April 2018

2 3M 2018 CONFERENCE CALL SPEAKERS Alexei Dal Pastro General Manager Barbara Pivetta CFO 2

3 AGENDA > MARKET UPDATE PAGE 4 >3M 2018 ACTIVITY PAGE 6 > STRATEGY AND OUTLOOK PAGE 14 >ANNEX PAGE 18 3

4 Market update 4

5 CONFIRMED SUPPORTIVE ENVIRONMENT Milan office market: improving positive trend 570/sqm prime rent Milan office take-up evolution by building grade % vacancy rate >75% non Grade-A +10% YoY 3.5% office prime yield Stable Yield Sqm ' ,000 sqm 1Q % Grade A Grade B+C Prime Office Rent( /sqm/yr) Significant increase of prime rent Good level of take-up focused on Grade A offices Stable stock of offices including developments Robust investment volume trend continues SUBMARKET /sqm/yr Q/Q Y/Y CBD 570 Centre 420 Semi Centre 320 Periphery 240 Hinterland 220 Source: C&W Q

6 3M 2018 Activity 6

7 3M2018: POSITIVE ACHIEVEMENTS ALONG STRATEGIC TARGETS Continuous upgrade both in business and financial profile Successful letting activity Overall, ~18,000 sqm of letting activity for 4.5m annualized rents YTD Major pre-let in Milan, Via Schievano The Sign, to AON (~ 9,500 sqm) Increase of committed Development Pipeline to 384m (vs 317m as at 31/12/2017) Commitment of Building B and C of The Sign project for further ~ 16,800 sqm GLA Capital rotation increasing focus on Milan offices Closing of 9% stake disposal of Central SICAF in February 2018, equivalent to ~ 140m asset disposal at appraisal value Reinforcement of debt profile Dynamic financial activity for the extension of debt maturity and the reduction of cost of debt New 300m 10-yrs rated bond placed in mid-february at 2.375% coupon 7

8 3M2018: SUCCESSFUL DELIVERY OF LETTING RESULTS Occupancy and leasing activity 96% 95% 94% 93% 92% 91% 90% 89% 91.5% Office Non-TI 95.1% 1Q 2017 YE Q % 1 2 PRELETTING 2 FOR 2.8m ANNUALIZED RENTS ON 11,085 SQM New contracts and renewals 5 NEW CONTRACTS FOR 0.5m ANNUALIZED RENTS ON1,700 SQM 6 RENEWALS FOR 1.2m ANNUALIZED RENTS ON5,200 SQM 97% 96% 95% 94% 93% 92% 91% 90% 95.6% Total portfolio in group share 96.6% 96.3% 1 1Q 2017 YE Q Q 2018 WALB(group share) 6.8 years (1) Including the effect of preliminary agreements (2) Included Head of Terms with AON ( 2.6m top up Rent ~ 9,500sqm on Schievano,The Sign Building A). 8

9 3M2018: RENTAL INCOME +2.2% L-f-L growth in Milan offices Non-TI m 3M M M % Group Share Change (%) Like-for-Like Group Share Occupancy rate Office TI % 100.0% Office Non - TI % 95.3% Total Office % 96.9% +2.2% L-f-L growth in Milan offices +2.2% L-f-L growth in Milan offices Non-TI Retail & Others (7.0%) 91.7% Development % n.a Total portfolio % 96.3% Minorityrelatedto sale of TI Sicaf stake: - 9.9m Development Assets:+ 0.8m(1) Acquisitions:+ 2.1m(1) Indexation: +0.8% Occupancy rate: +0.6% Renewals: -0.8%, mainly related to a renegotiation on a shopping center (1) Not included in L-f-L calculation 9

10 THE SIGN: PRE-LET OF THE FIRST BUILDING Pre-letting of ~ 9,500sqmGLA -Building A leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services ~ 9,500 sqm, 98%pre-let Top-up rents: 2.6m Lease term: 12+6 years Option to pre-let additional 1,500 sqm in The Sign Building A: 9,700 sqm GLA 9 floors for offices use Retail and car parking Green roof withlarge green areas and use of reflecting materials LEED Platinum, A Energy Class 10

11 THE SIGN: COMMITMENT OF THE WHOLE PROJECT Committed additional two buildings (B C) for 16,800 sqm 26,500sqm Total GLA ~ 16,800sqm Building B-C Committed Semicentre Porta Nuova CBD ~ 105m Total budget ~ 67m Building B-C Committed Centre M2 Romolo Periphery Excellent Connection > 7% Total Yield on cost 3 minute walk to Metro Romolo& FS 15 minute subway to Duomo 20 minute car to Linate Airport Business district development in the south-west area of Milan Three building complex Highest grade of energy efficiency and green certifications LEED Platinum, A Energy Class Works expected to start 2Q 2018 supported by significant pre-let already on building A 11

12 ACCELERATION OF DEVELOPMENT PIPELINE Premium projects with significant pre-letting achieved MILAN, Symbiosis AB GLA: 20,500 sqm Delivery: 4Q 2018 Tenant: Fastweb, CIR Food Certification: LEED Platinum, A class 88% pre-let TURIN, Corso Ferrucci GLA: 45,600 sqm First delivery: 3Q 2017 (further deliveries to follow pre-letting status) 40% pre-let +4% (1) MILAN, Principe Amedeo GLA: 7,000 sqm 57% pre-let MILAN, Via Colonna GLA: 3,500 sqm fully pre-let Status: work in progress Delivery: 2Q 2018 Certification: LEED Gold, A class Certification: LEED Gold, A class Delivery: End 2018 MILAN, The Sign A GLA: 9,700 sqm Delivery: End 2019 Certification: LEED Platinum, A class 98% (2) pre-let +98% (1) MILAN, Monte Titano GLA: 6,000 sqm Delivery: 1H 2018 Tenant: Meininger Hotel fully pre-let Certification: LEED Gold, B class MILAN, The Sign B,C GLA: 16,800 sqm Delivery: End 2020 Certification: LEED Platinum, A class TOTAL GLA THE SIGN : 26,500 sqm Building B,C committed (1) vs. December 2017 (2) Pre-let refers to Building A 384m committed projects (+67m vs Dec 17 ) 59% pre-let 6.4% target yield 317M 779m development END 2017 pipeline -~200,000 sqm-ca. 90% in Milan 12

13 DYNAMIC FINANCIAL ACTIVITY FOR A STRONGER DEBT PROFILE Increased debt maturity and reduction of cost of debt 300m BBB- Stable outlook Successful issue of 300m 2.375% 10-yrs senior unsecured rated bond - February 2018 Exercise of early redemption option make whole of 250m 3.50% bond due duly repaid in March 2018 volume 2.375% coupon high quality demand 133bps spread 10 yrs maturity 13

14 Strategy and Outlook 14

15 A PROVEN SUCCESSFUL STRATEGY Targets Focus on MILAN WEIGHT OF MILAN 90% DIVERSIFY tenant base WEIGHT OF TELECOM ITALIA 20% Increase GREEN WEIGHT OF GREEN PROPERTIES 80% LTV 40-45% 2018 EPRA Earnings target: ~ 0.04 / share 15

16 CALENDAR 1H 2018 results July

17 Q&A 17

18 Annex 18

19 3M2018 RENTAL REVENUES 100% Group Share m 3M M 2018 Δ (%) 3M M 2018 Δ (%) Δ (%) Like-for- Like % of Rent Office TI % (39.9%) +1.1% 35.1% Office Non - TI % % +1.8% +55.0% Total Office % (17.6%) +1.5% 90.0% Retail & Others (16.5%) (16.5%) (7.0%) +9.6% Development % % 0.0% +0.4% Total portfolio % (17.2%) +0.6% %

20 3M2018: REAL ESTATE PORTFOLIO DETAILS N of GLA Gross Topped-up Financial properties ( 000 sqm) yield (%) yield (%) occupancy (%) WALB Office Telecom Italia % 6.4% 100.0% 12.7 Office, Excl. Telecom Italia % 5.0% 95.3% 4.2 Retail & Others % 5.9% 91.7% 4.3 Total portfolio excl. Development Group Share 246 1, % 5.5% 96.3% 6.8 Development portfolio Total portfolio Group Share 252 1,379 Total portfolio excl. Development Consolidated 246 1, Total portfolio Consolidated 252 1,897 20

21 3M2018: AVERAGE LEASE MATURITY Weighted average lease maturity 6.8 years (group share) m Italian government >

22 3M2018: DEVELOPMENT PIPELINE Committed projects Location Project type Area Expected delivery % pre-let Capex to be spent 1 % completion Target yield Total budget2 (sqm) (%) ( m) (%) (%) ( m) Ferrucci Turin Refurbishment 45, % % 5.7% 87 Colonna Milan Refurbishment 3, % % 5.1% 18 Monte Titano Milan Refurbishment 6, % % 5.0% 22 Symbiosis A+B Milan Construction 20, % % 7.2% 94 The Sign A Milan Construction 9, % % 7.0% 38 The Sign B & C Milan Construction 16, % 7.2% 67 Principe Amedeo Milan Refurbishment 7, % % 5.2% 57 TOTAL 109,100 59% % 6.4% 384 Managed projects 3 Location Project type Area Expected delivery Total budget 2 (sqm) ( m) Symbiosis (other blocks) Milan Construction 90, c. 395 TOTAL 90,000 c.395 (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 22

23 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 notconstitutean offer to sell or an invitation or solicitation of an offer to subscribe for or purchase anysecurities, and this shall notformthebasisforor beusedforanysuchofferor invitationor othercontractor engagementinanyjurisdiction. Under all circumstances the user of this document shall solely remain responsible for his/her own assumptions, analyses and conclusions. 23

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