Autumn Presentation. la foncière parisienne

Transcription

1 Autumn 2017 Presentation

2 I. Background II. Portfolio centered on Paris Central Business District III. Key aspects of TERREÏS Model IV. H Results 2

3 TERREÏS at a glance Property investment company (SIIC) listed on the Euronext Paris Market since December 2006, founded, controled and chaired by Jacky Lorenzetti Revalued portfolio 2,013m ( 2,163m incl. duties), +3.5% vs end of 2016, x 4.5 vs end of 2010) 98% assets in Paris vs 95% end of % office assets o/w 97% in Paris Rental income FY 2016: 66.7m / Strategic assets: 57m (+7.4%) 9m 2017: 48.2m / Strategic assets: 44.9m (+6.6%), 93% of total assets EPRA Liquidation NAV at 30 June 2017: 49.70/share (+10% vs end of 2016) EPRA Replacement NAV: 55.54/share Value creation at end of June 2017 since 2009 through assets revaluation: 851m Market Cap: 1,082m (x12 since 2006), Float: 46% 3

4 Stable shareholding basis with strong implication of the reference sharehoder January 2007 December 31, % 42% ( 40m 8% Ovalto 54 % Float 46 % ( 500m) Individual shareholders, o/w employees 44 % 56 % Institutional shareholders (60 % France, 40 % International) Ovalto (controled by Jacky Lorenzetti) Jacky Lorenzetti Float (Market Cap) 4

5 I. Background II. Portfolio centered on Paris Central Business District III. Key aspects of TERREÏS Model IV. H Results 5

6 Strategy of focusing on office assets within the Paris CBD A continuing strategy of focusing the assets portfolio on the Office vs Residential June on Paris vs In-the-Country June on Paris CBD vs Paris out of CBD June % 92% 78% 94% 98% 77% 87% 1.1bn 2.0bn 1.1bn 2.0bn 0.9bn 2.0bn Basis 100 % total assets Basis 100 % total assets Basis 100 % Assets in Paris 6

7 Careful ratio used for portfolio appraisal Yields H FY 2016 Nbr. sq.m Value excl. duties m Rental income m Yield Value /sq.m Offices in Paris 140,241 1, % o/w Paris CBD 114,063 1, % 3.8 % 3.7 % Residential 16, ,548 9,457 7

8 Portfolio growth drivers (0.4) Disposals Reval Merger A&I Acquisitions End of 2008 End of June

9 H1: acquisition of a building at 73 rue Ste Anne (Paris 2) Offices building at 73 rue Ste Anne (Paris 2) Rental surface: 1,593 sq.m. 9

10 Q3 2017: acquisition of hotel premises in Paris 9 Hotel premises at 15 rue Montyon (Paris 9) Rental surface: 800 sq.m. Entirely rented 10

11 Q3 2017: acquisition of an Haussmannian lot (Paris 9) (under promise) Haussmannian lot at 11 rue de Milan (Paris 9) Rental surface: 2,500 sq.m. of which 1,300 sq.m. of offices 1,000 sq.m. «Second Empire» style mansion house to renovate 300 sq.m.of offices entirely rented 11

12 Q3 2017: acquisition of an offices lot on the Champs-Elysées (under promise) Offices lot at avenue des Champs-Elysées (Paris 8) Rental surface: 200 sq.m. Fully rented 12

13 Q : acquisition of an haussmannian building (Paris 8) (under promise) An Haussmannian building at 5 avenue de Messine (Paris 8) Rental surface of 2,308 sq.m o/w 1,786 sq.m of offices 13

14 2016: acquisition of three buildings to CNC in the middle of Paris CBD and CAPEX for 105m Office buildings at 11, 32/34 rue Galilée and 10/12 rue de Lübeck (Paris 16) Rental surface: 8,316 sq.m. CNC tenant > end of Q Annual yield of around 4.60 % after refurbishment and re-commercialisation 14

15 2017: continuation of sales of non strategic assets In million 89* Disposals under promises 81** Registered disposals 56m Offices out of Paris 25m Residential (average price: 10.5K / sq.m.) FY months 2017 *Sales price Appraisal value: 88m **Sales price 15

16 Concentration on Prime Parisian assets 16

17 Concentration on Prime Parisian assets 50-52, Boulevard Haussmann, Paris 9 14,900 sq.m. (offices + 82 parkings) Investment of 138m 17

18 Concentration on Prime Parisian assets 18

19 Concentration on Prime Parisian assets 19

20 Concentration on Prime Parisian assets 20

21 Concentration on Prime Parisian assets 21

22 Concentration on Prime Parisian assets 41, avenue de Friedland, Paris 8 Offices building (6,157 sq.m parkings) 22

23 I. Background II. Portfolio centered on Paris Central Business District III. Key aspects of TERREÏS Model IV. H Results 23

24 TERREÏS strategy and key model aspects Since 2012, TERREÏS deliberatly concentrates its asset portfolio on Prime Parisian Office assets. This strategy, focusing on assets valuation, eases rental and leads to a higher occupancy rate. 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 mortgaged-redeemable and/or bullet loans swapped at fixed rate Dividend partly provided by highly valued non-strategic assets disposals programme Mechanical improvement of NAV through annual reimbursement of debt 24

25 Parisian office assets portfolio KPI Focusing on commercial property in the Paris CBD (% at 30 June 2017) Parisian iffice assets: EPRA vacancy rate (Assets under exploitation) Parisian CBD: 97% Rest of Paris: 2% 6.0 % 5.8 % 4.4 % 2.1 % Q Parisian Tertiary Portfolio securised by a high number of leases (FY 2016) Rental income Parisian offices Number of leases Average surface by lease Revenues & Rent (FY 2016) Paris out of CBD 7,7 M sq.m. Paris CBD 41.5m sq.m. Paris Paris CBD Potential revenues ( m) Paris Paris CBD Rent ( /sq.m.) 25

26 Strong capacity to create value From the moment of acquisition: around 850m of value created over the period 2009 June 2017 Continuous search for quality assets in Paris on strict criteria (multitenancy, occupancy rates, etc) Acquisitions on favourable terms Value created as measured by experts revaluations ( m) H Optimal and inexpensive management conditions: EBITDA 90% of rental income Administrative tasks managed by Ovalto Rental and technical management by Imodam 26

27 Secured financing over the long term 12% Breakdown of net financial debt as of June 30, 2017 (% based on gross financial debt) 3% 3 % 20% 19 % 712m 3 % 65% 56 % Weighted average cost of debt: 3.54 % (vs. 3.65% end of 2016) 100% redeemable debt Bullet Credit line* Corporate Financing** * Renewed for 3 years on July 31, 2017 ** Under restructuring 27

28 Secured financing over the long term Before restructuring of Corporate Financing and Credit line extension Total of reimbursements by year (Situation at June 30, 2017) 19 % 100m 3 % 50m 100% redeemable debt Bullet After Restructuring of Corporate Financing and Credit line extension Credit line 100m Corporate Financing 50m

29 NAV and net debt long term trends Liquidation NAV Net debt All things being equal, the regular reimbursement of a 100% mortgagedredeemable debt mechanically improves NAV and mechanically reduces LTV ratio 29

30 Dividend breakdown trends* Revenues from rental activities Proceeds from disposals Up until 2020, dividend is partly financed by the proceeds of Paris residential and Provincial assets * Based on a unchanged dividend policy 30

31 I. Background II. Portfolio centered on Paris Central Business District III. Key aspects of TERREÏS Model IV. H Results 31

32 H : Key figures EPRA NAV Revalued Portfolio Paris CBD investments + Capex Rental income o/w strategic assets (Parisian Tertiary) Parisian Teertiary EPRA vacancy rate Non strategic assats disposals (Tertiary out of Paris and Residential) EPRA earnings LTV Ratio 2017 interim dividend /share (+10 %) 2,013m (+3,5 %) 23m 31.9m (-3 %) 29.6m (+8,8 %) 2.8% (vs 4.4 % end of 2016) 69m 14.0m (-7 %) 35 % (-4 points vs end of 2016) 0.40 / share (+2,6 %) 32

33 H total rental income In million Total rental income: - 0.9m (rounded figures) Acquisitions (2.7) Disposals Change in perimeter: - 1.2m Indexation Lease management Like-for-like basis: + 0.2m 31.9 H H

34 H strategic and non strategic rental income In million (rounded figures) +2.4 (3.2) 32.8 Parisian Offices Offices out of Paris o/w Lebrun (1.3) Issy (0.7) Ivry (0.5) (0.2) Residential 31.9 H H

35 In million Ongoing increase in the weighting of strategic assets rental income on H Total rental income % % + 2.4m +10 pts % Rental income from strategic assets (Parisian offices) H H H

36 EPRA vacancy rate in Parisian Tertiary assets 4.4 % 3.3 % 3.7 % 2.8 % 2.1 % FY 2016 H Q Q Q

37 Consolidated P&L (1/2) (In million) H As a % of rental income H As a % of rental income Change % Rental income % % -3.0 % Other revenues Reinvoiced charges Management and rental fees 1.4 (1.5) (0.5) 1.1 (1.5) (0.4) Net revenue income % % -2.3 % Operating charges (3.2) (2.5) - EBITDA % % -5.0 % Depreciation (14.5) (14.8) Current operating income % % -7.9 % 37

38 Consolidated P&L (2/2) (In million) H H Current operating income Margin on assets disposals Others Operating income Financial income Taxes Net income Group share Minority interests Net income per share (diluted) (13.3) (0.5) (0.5) 32.3 (18.3) (0.5)

39 EPRA Earnings (In million) H H Change % Rental income % Rental expenses incurred and others SG&A Other operating revenues and charges Financial result Taxes (0.6) (3.1) (0.2) (13.6) (0.5) (0.8) (2.9) 0.2 (13.8) (0.5) EPRA Earnings % 39

40 Renewed growth of EPRA liquidation NAV per share % End of 2014 End of 2015 End of 2016 End of June

41 Dividend trend En /action Complement to total dividend to be voted at the General Meeting of Sharehoders Interim dividend * On the basis of * Interim dividend paid on November 16,

42 BREEAM Certification process of parisian offcies Certifications at the end of Oct. 2017: 68% Very Good or Good Additional certifications planned in 2017: 9% on process Target: 77 % of office assets in Paris being certified at the end of

43 2017 Outlook: keep focusing on Paris CBD TERREÏS' goal is to increase its Paris commercial property portfolio and to focus on Paris CBD. Over the 4th quarter of 2017, TERREÏS will keep concentrating on the disposal of its non strategic assets (Residential and offices out of Paris) 43

44 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. 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. 44