Sound rental growth. 1Q2017 Revenues. Milan, 3 rd May 2017

Transcription

1 Sound rental growth 1Q2017 Revenues Milan, 3 rd May 2017

2 AGENDA > 3M 2017 ACTIVITY PAGE 3 > STRATEGY AND OUTLOOK PAGE 12 2

3 3M 2017 Activity 3

4 3M 2017 ACTIVITY STILL SUPPORTIVE MARKET ENVIRONMENT Milan office market: pursuit of the positive trend Milan office take-up evolution by building grade Record level of take-up 67% +99% year on year 67% of grade A buildings Investment volumes and net yields in Milan Growth in rents 0.6bn Source: CBRE research, Cushman & Wakefield & JLL research (1) Including outer-milan and hinterland 520/sqm prime rent +10% year on year Limited to grade A buildings in the most dynamic areas 4

5 3M 2017 ACTIVITY THE REFERENCE PLAYER FOR THE MILAN OFFICE MARKET Strong focus on the most dynamic areas of CBD and central Milan 2.2bn property portfolio in Milan Milan office market Centre CBD Porta Nuova CBD 5 Stock 830k sqm Take-up 17k sqm Vacancy rate 11.7% Prime rent 420 sqm Stock 1,510k sqm Take-up 30k sqm Vacancy rate 7.0% Prime rent 520 sqm Stock 1,225k sqm Take-up 53k sqm Vacancy rate 5.8% Prime rent 500 sqm 5 Semi-centre CBD Porta Nuova Centre 28% Periphery Periphery Semi-centre Periphery 17% Centre & Semi-centre 2.2bn MV 55% CBD & Porta Nuova Rented portfolio Developments Stock 2,315k sqm Take-up 73k sqm Vacancy rate 7.0% Prime rent 330 sqm Stock 2,905k sqm Take-up 109k sqm Vacancy rate 19.5% Prime rent 220 sqm Excludes properties currently under preliminary disposal agreement Source: JLL and CBRE research (2016 data) 5

6 3M 2017 ACTIVITY RENTAL INCOME +3.7% L-f-L growth in non TI rents 31/03/ /03/2017 Δ Δ L-f-L ( m) ( m) ( m) (%) Office TI (0.4) 0.0% Office Non - TI % Total Office % Retail (0.1) +1.8% Total portfolio % * Plus 1.4m of total rent (+1.8% L-f-L) New Contract/Reletting/Rental release:+ 0.9m Rental increase from acquisitions: + 1.3m Rental loss from disposals: - 0.7m Total portfolio (excluding TI) % Recovery in like-for-like rent -1.5% % % % Q Excluding TI: +3.7% RESIDUAL AVERAGE FIRM TERMS OF LEASES 8.8 years 6

7 3M 2017 ACTIVITY LETTING ACTIVITY Consistent occupancy rate at 95.6% Total portfolio Non TI portfolio 95.5% 95.6% 91.6% 91.9% 94.3% 89.0% 3/31/ /31/2016 3/31/2017 3/31/ /31/2016 3/31/ NEW CONTRACTS FOR 1.1m ANNUALIZED RENTS ON 3,600 SQM 1 9 RENEWALS FOR 1.5m ANNUALIZED RENTS ON 10,100 SQM 1 Figures as of March 31 st, 2016 consider the assets of Milan, via Colonna and Milan, Via Monte Titano in the core portfolio 1 Please note that figures include contracts signed after 31/03/2017 7

8 3M 2017 ACTIVITY DEVELOPMENT PIPELINE ON TRACK Capex ongoing in all major vacant assets MILAN Via Cernaia GLA: 8,300 sqm Delivery: 3Q 2017 Capex plan of 72m MILAN Via Colonna GLA: 3,500 sqm Delivery: End 2017 MILAN - Monte Titano GLA: 6,000 sqm Delivery: 1Q 2018 TURIN Corso Ferrucci GLA: 45,600 sqm First delivery: 3Q 2017 MILAN - Principe Amedeo Acquisition executed in March 2017 and works started GLA: 7,000 sqm Delivery: 1Q m rents and 19m net recurring income 50% of RNI already secured 9m secured Around 2,170 sqm of pre-let agreements in 1Q 2017 Totals include other assets on which minor capex are being / have been implemented 8

9 3M 2017 ACTIVITY SYMBIOSIS: WORKS WELL ON TRACK Development of a new business district in Milan for a total surface of over 120,000 sqm, inspired by smart-working, sustainability and wellbeing 16,000 sqm prelet to Fastweb Additional 1,000 of prelet on retail spaces ready to be signed Construction works well advanced on Fastweb HQ Conclusion of structural works by 2Q 2017 Completed structural works of the Community Plaza Works completion in line with timetable by 2Q 2018 HQ Total cost of 86m 1 Yield on cost 6.8% Advanced negotiations on further prelettings Ongoing marketing activities with good feedbacks (1) Cost of ongoing portion of the development project linked to Fastweb HQ 9

10 3M 2017 ACTIVITY ASSET ROTATION: REFOCUSING ON CORE OFFICES IN MILAN Activity since the beginning of 2017 MILAN Via Principe Amedeo 5 Acquisition completed in March m MILAN Via Marostica 1 Acquisition completed in May m Trophy asset in Milan Core asset in Milan Very good location between CBD and Porta Nuova District Full refurbishment planned (around 12m) to deliver first class office additional roof top floor Good location in the western part of the city Nine floors office building Fully let to prime tenants Works already started and delivery planned in 1Q 2018 Growth potential 5.2% potential yield Recurring cashflow 6.9% yield DISPOSAL 37.6M PRELIMINARIES M 10

11 3M 2017 ACTIVITY GAME-CHANGING PARTNERSHIP ON TELECOM ITALIA SICAF Ever-renewed value creation story stemming from Telecom Italia property portfolio Simplified transaction structure Invest 60% 20% 20% Update on calendar Bank of Italy approval to set-up the SICAF obtained on 25 Jan 2017 SICAF 810m bank debt Incorporation of the SICAF on 30 Jan 2017 Execution of the contribution of the portfolio on 24 February 2017 Transaction closing expected in 2Q 2017 Real estate service contract TI OFFICE PORTFOLIO 145 ASSETS 1.55BN VALUE 98m GROSS RENTS 6.4% YIELD 13.9 YEARS WALB REDUCE NUMBER OF ASSETS ACTIVE ASSET MANAGEMENT MAINTAIN LEASE MATURITY FOCUS ON TOP 4 CITIES & NORTHERN ITALY 11

12 Strategy and outlook 12

13 STRATEGY AND OUTLOOK THE UNDISPUTED LEADER IN THE ITALIAN PROPERTY MARKET targets are confirmed More Milan, more quality, more integration for a new chapter of growth and value creation 2020 TARGETS DIVERSIFY tenant base WEIGHT OF TELECOM ITALIA 20% Focus on MILAN WEIGHT OF MILAN 80% Increase GREEN WEIGHT OF GREEN PROPERTIES 50% LTV < 45% 13

14 CALENDAR 1H 2017 results July 18 th

15 Q&A 15

16 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 not constitute an offer to sell or an invitation or solicitation of an offer to subscribe for or purchase any securities, and this shall not form the basis for or be used for any such offer or invitation or other contract or engagement in any jurisdiction. Under all circumstances the user of this document shall solely remain responsible for his/her own assumptions, analyses and conclusions. 16

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