COMPANY PRESENTATION WWW.CAREPROPERTYINVEST.BE www.carepropertyinvest.be www.carepropertyinvest.be
TRACK RECORD CEO Care Property Invest CEO of Care Property Invest since September 2009 Director of Serviceflats Invest since June 2003 General Manager Public Finance at KBC Bank from 1996 to 2009 I strongly believe in a thriving future for this Company, as we go beyond investing, by trying to assume the role of innovator in the field of health care real estate. Peter Van Heukelom CEO Manager Marketing and Sales at Dexia from 1988 to 1996 Sales Manager at Mercator Verzekeringen from 1977 to 1988 Contact /PeterVanHeukelom peter.vanheukelom@carepropertyinvest.be 00 32 (0) 3 222 94 94
TRACK RECORD CFO Care Property Invest CFO of Care Property Invest since July 2016 until July 2016 -Company lawyer of Care Property Invest I strongly believe in a thriving future for this Company, as we go beyond investing, by trying to assume the role of innovator in the field of health care real estate. Filip Van Zeebroeck CFO Contact /FilipVanZeebroeck filip.vanzeebroeck@carepropertyinvest.be 00 32 (0) 3 222 94 94
AGENDA Agenda 1. Serviceflats Invest A solid foundation 2. Care Property Invest The new business model 3. Care Property Invest Investments and pipeline 4. Care Property Invest Financial information 5. Care Property Invest The share 5
1. Serviceflats Invest A solid foundation www.carepropertyinvest.be 6
Serviceflats Invest 20 YEARS OF EXPERIENCE Serviceflats Invest: BEVAK (now: REIT) founded in October 1995 Initiative of the Flemish government NV OPENBARE BE VA K NAAR BELGISCH RECH T Building and financing of 2,000 qualitative and affordable service flats targeted at 75+ year-olds (assisted living units) in Flanders and Brussels Cooperation with: Public Centres for Social Welfare ( OCMWs /CPAS or PCSWs ) i.e. municipalities Non Profit Organisations ( Caritatieve VZWs /ASBL caritative or NPOs )(1) Subsidised structure by the Flemish government Realised (2): 1,988 assisted living units built on 76 sites in Flanders Investments of 169.2m(3) generating a rental income of 13.1m (1) Part of Zorgnet Vlaanderen, structure with a Catholic background (2) As of 31 December 2016 (3) Sum of receivables financial lease ( 157m) and trade payables related to fixed assets (real estate a.o.) ( 11.8m) (31 December 2016) 7
NV OPENBARE BE VA K NAAR BELGISCH RECH T Serviceflats Invest INVESTMENT STRUCTURE PROJECTS Structure: general contractor/ Architect development Financing Local PCSW receives a yearly subsidy from the Flemish government per service flat Upon termination of the building right period, ownership right of the building automatically gets transferred back to the local PCSW SFI is not responsible for maintenance or renting: economical occupancy rate of 100% Right of superficie min. 32 years(1) Leasehold building(2) min. 27 years Canon min. 27 years Structuur subsidised by the Flemish Government (1) Recht van opstal/droit de superficie; (2) Erfpacht/droit d emphythéose (3) Same structure applies for NPOs PCSW (3) (Client) Triple net leasehold contracts with 100% investment repayment at end of leasehold. Unique earnings visibility with 17.28 years remaining on the building right on average as of 30 June 2017. 8
Serviceflats Invest LOW-RISK HIGH VISIBILITY A) Due to solvency profile of tenants (1) NPO (5%) PCSW (95%) Contracts backed by a mortgage mandate on the properties. Guaranteed by the municipalities. In case of default by the local government, Serviceflats Invest is entitled to a claim on the government fund (dotation from the Flemish government rated AA2/AA). Subsidy stream on blocked account used to partially reimburse Serviceflats Invest at end of building right(2) (1) Verdeling gebaseerd op de huurinkomsten 30 juni 2017 voor het Serviceflats Invest portfolio; Split based on rental income per 30 June 2017 for Serviceflats Invest portfolio (2) 1.140,43 sinds 2008 per flat per jaar van de Vlaamse regering 9
Serviceflats Invest LOW-RISK HIGH VISIBILITY B) By fully matching the duration of the leasehold contracts with the debt maturities 10
2. Care Property Invest The new business model www.carepropertyinvest.be 11
Investments and pipeline OUR MODEL Based on : NV OPENBARE BE VA K NAAR BELGISCH RECH T Retaining and monetising know-how (also on the private market) Increasing demand from the care industry BE-REIT status and corporate purpose offer interesting platform to meet social needs Service flats only («closed investment program») Also development and acquisition of healthcare properties (residential care decree of Flanders) and residential solutions for people with disabilities Nursing homes, short-stay centers,... Service flats (groups of assisted living residences) Local service centres Protected or assisted living facilities Flanders and Brussels Outside Flanders (EEA) same scope in accordance with local regulations Fixed subsidised structure New assets are not subsidised anymore PCSWs and NPOs PCSWs and NPOs + private market 12
Investments and pipeline GROWTH VISION FOR THE FUTURE -REAL ESTATE Residential care tailored to the target market Selection criteria real estate Recognised healthcare property Correct price / quality Affordable for the middle class Location Safety Accessibility and quality of care and services 13
Investments and pipeline GROWTH VISION FOR THE FUTURE -OPERATORS 0perator base with proven track record 6% 4% 2% 1% 1% Anima Care (1) 8% 5% 3% Armonea Non-profit organisations (NPOs) PCSWs 13% 86% Senior Living Group (2) Vulpia care Group 71% Figures as at 30 June 2017 based upon number of projects Figures as at 30 June 2017 based upon rental income (1) Subsidiary of Ackermans & Van Haaren (2) Subsidiary of Korian 14
Investments and pipeline AGEING POPULATION, RISING DEMAND Evolution age Belgian population 17,79% 22,37% 25,78% 65,23% 60,37% 57,86% 16,98% 16,88% 16,36% 15
Investments and pipeline AGEING POPULATION, RISING DEMAND Evolution population over 65 years old 29,80% 28,78% 40,25% 70,20% 71,22% 59,75% 16
Investments and pipeline BUSINESS MODEL PUBLIC MARKET public -private Own developments Design-Build-Finance (Maintain) Land with building right of 30y Leasehold of 27 years to the operator Investment repayment to CPInvest through increased monthly canon(2) Adding maintenance, frees PCSW from including the debt of the project on balance sheet (3) No DFBMO Joint DBFMO efforts Joint DBFMO efforts for assisted living units Architect, general contractor, CPInvest, care partner and operations partner Occupancy risk remains with CPInvest Acquisition of land or building(s) Development of a care property in close collaboration with the future operators Building remains the property of CPInvest Building right structure as local governments prefer to retain ownership of their land banks (1) Without subsidies; (2) instead of at end of building right period; (3) Following 2010 ESA rule 17
Investments and pipeline BUSINESS MODEL PRIVATE MARKET Own developments Purchase existing sites Acquisition of land or care facilities Development of a care facility in close collaboration with the future operators Building remains the property of CPInvest Care real estate in line with the vision of CPInvest Leases or building rights of at least 27 years Care real estate with renovation potential 18
3. Care Property Invest Investments and pipeline www.carepropertyinvest.be 19
apitaalverhoging in natura met creatie van 1.844.160 nieuwe aandelen are Property Invest haalt ruim 33,5 miljoen op. 2013 Amendments to the Articles of Association to expand the objective. 2014 Serviceflats Invest becomes Care Property Invest. Share split 1: 1000 Capital increase within the framework of an interim dividend. Recognition as a Regulated Real Estate Company (RREC). 2012 Investment program 2,000 service flats nearly completed. Decision to amend the Articles of Association for the re-start of Serviceflats Invest. History 2015 22 June 2015: Capital increase in cash Through a decision by the Board of Directors Total amount of capital increase: approx. 38m 2,825,295 new ordinary shares were issued Issue price per share on 22/6/2015: 13,45 (share price on 31/12/2016: 20,45) Distribution 16.8m capital and 21.1m share premium 32% of offered shares subscribed by existing shareholders; offer fully subscribed 7 new investments for a total conventional value of approximately 74m. 2017 Investments and pipeline Capital increase in kind 15 March 2017 Total amount of capital increase: 33,563,407 1,844,160 new ordinary shares were issued(*) Issue price per share on 15/3/2017: 18,20 (share price on 31/12/2016: 20,45) More than double subscriptions for the offer at the subsequent placement by the project s vendor As from 15 March 2017 15,028,880 fully paid-up shares 2016 Establishment Management Board Inclusion in the BEL MID index / EPRA 2 new investments for a total conventional value of approx. 32.4 million. Capital increase enabled Care Property Invest to: Grow & invest Enhance the liquidity of its shares Welcome new institutional and retail investors 20
Investments and pipeline INVESTMENTS 2015 Turnhout Aan de Kaai Turnhout De Nieuwe Kaai Herenthout Boeyendaalhof Gullegem Tilia Capacity: Contr. value/ Expected investment: Information transaction: Operator: Agreement type: RCC with 82 residential places and possibility for 10 additional rooms Approx. 16.50m Deal closed on 18/09/2015 Vulpia Vlaanderen Leasehold agreement triple net with indexed canon Capacity: Contr. value/ Expected investment: Information transaction: Operator: Agreement type: RCC with 94 residential places and 13 assisted living units Approx. 17.26 m Deal closed on 18/09/2015 Vulpia Vlaanderen Leasehold agreement triple net with indexed canon Capacity: Contr. value/ Expected investment: Information transaction: Operator: Agreement type: RCC with 105 residential places and 17 assisted living units Approx. 14.7m Rental income as from 1/01/2016. Deal closed on 23/12/2015. Vulpia Vlaanderen Leasehold agreement triple net with indexed canon Capacity: Contr. value/ Expected investment: Information transaction Operator: Agreement type: Extra information: 15 assisted living units Approx. 2.25m Purchase on 12/05/2015 Rental income as from 1/06/2015 PCSW Wevelgem LT agreement with indexed rent Occupancy risk and maintenance of property with Care Property Invest (only 1 investment in portfolio) General remark: RCC is the abbreviation for Residential Care Care Centre Investments resulting from the capital increase of june 2015: Total amount spent 21
Investments and pipeline INVESTMENTS 2016 Lanaken 3 Eiken Bonheiden- Rijmenam Ter Bleuk Capacity RCC with 122 residential places Capacity 52 assisted living units Contr. value/ Expected investment: Information transaction Approx. 19 m Deal closed on 30/12/2016 Contr. value/ Expected investment: Information transaction Approx. 13,4 m Deal closed on 22/12/2016 Operator: Agreement type Subsidiary of the Senior Living Group Leasehold agreement triple net with indexed canon Operator: Agreement type Subsidiary of the Senior Living Group LT lease agreement triple net with indexed rent 22
Investments and pipeline INVESTMENTS H1 2017 Watermaal-Bosvoorde Les Terrasses du Bois Vorst RCC to be developed Capacity RCC with 143 residential places and 34 assisted living units Capacity RCC with 118 licensed residential places Contr. value/ Expected investment: Information transaction Operator: Approx. 34 m Contribution in kind Subsidiary of Armonea Contr. value/ Expected investment: Information transaction Operator: Expected investment of approx. 15.2 m upon provisional delivery (expected H1 2019) Building ground + development approx. 4.3 m Subsidiary of the Anima Care Group Agreement type Leasehold agreement double net with indexed canon Agreement type LT lease agreement triple net with indexed rent 23
Investments and pipeline DELIVERED PROJECTS H1 2017 Moerbeke Herfstvrede Capacity Investment value 22 assisted living units Approx. 3,6m Information transaction Operator: Agreement type Provisonal delivery: 23/2/2017. Rental income as from 1/4/2017. DBF-structure. PCSW Moerbeke Leasehold agreement triple net with indexed canon 24
Investments and pipeline PROJECTS UNDER DEVELOPMENT H1 2017 Herenthout Huis Driane Vorst RCC to be developed Capacity 22 assisted living units Capacity RCC with 118 licensed residential places Expected investment Information transaction Operator: Agreement type Approx. 3.4m upon provisional delivery (expected Q1 2018) DBF-structure PCSW Herenthout Leasehold agreement triple net with indexed canon Contr. value/ Expected investment: Information transaction Operator: Expected investment of approx. 15.2m upon provisional delivery (expected H1 2019) Building ground + development approx. 4.3 m Subsidiary of the Anima Care Group Agreement type LT lease agreement triple net with indexed rent 25
Investments and pipeline PROJECTS Q3 2017 Libramont Bois de Bernihè Capacity: Contractual value: Info transaction: RCC with 108 residential places and 18 assisted living units Approx. 11.9 m Rental income as from 01/08/2017 Operator: Agreement type: Vulpia Wallonië Leasehold agreement triple net with indexed canon 26
Investments and pipeline PROJECTS Q4 2017 Seniorencampus Qaly@Beersel Beersel (Alsemberg) Capacity: Contractual value: Info transaction: RCC with 78 residential places and a short stay centre with 9 residential places Approx. 16.7 m Rental income as from 03/10/2017 Operator: Qaly@Beersel BVBA Agreement type: LT lease agreement triple net with indexed rent 27
Investments and pipeline OUTLOOK INVESTMENTS outlook financial year 2017: Care Property Invest is currently investigating a number of investment opportunities in order to invest at least 60m in the remaining part of 2017. In addition, Care Property Invest has a less specific pipeline for an amount of 50 million. Investment opportunities exist in the private and public markets Contributions in kind are also being considered. France Belgium Netherlands Germany Care Property Invest is also investigating possible markets outside of Belgium (primarily the Netherlands) Luxemburg 28
4. Care Property Invest Financial information www.carepropertyinvest.be 29
Financial information EPRA KEY PERFORMANCE INDICATORS H1 2017 Inclusion ratios after becoming member of EPRA in 2016- Winner of EPRA BPR Gold Award Improved KPIs compared to 2016 EPRA result Full-Year (consolidated) H1 2017 H1 2016 x 1,000 7,366 4,243 In / share 0.49 0.32 EPRA cost ratio % 4.23 14.89 H1 (consolidated) H1 2017 H1 2016 EPRA NAV x 1,000 222,654 207,761 In / share 14.82 15.76 EPRA NNNAV x 1,000 192,497 173,168 In / share 12.81 13.13 EPRA Vacancy rate % 0.00 0.00 EPRA adjusted NIY (net initial yield) % 5.41 4.54 30
Financial information KEY FIGURES P&L STATEMENT (*) Increased operational result (47.39%) compared to H1, net rental income increasedthrough acquisitions Increased financial result due to inclusion of the fair value of closed financial instruments CPI paid out a gross dividend of EUR 0.63 per share for 2016 and has set the goal of creating an increase of the gross dividend to EUR 0.68 per share for 2017 Consolidated H1 2017 FY 2016 FY Net rental income 9,461,552 15,629,497 13,731,517 general expenses of the Company -1,520,626-2,375,963-2,403,405 other operating income and expenses 1,120,102 61,781 80,937 Operating result before result on portfolio 9,061,027 13,315,315 11,409,049 changes in fair value of real estate investments -169,822 1,925,213 1,690,057 Other results on portfolio 824,137 0 0 Operating result 9,715,342 15,240,528 13,099,105 financial income 8,505 12,432 59,438 financial costs -2,199,146-4,877,885-3,810,759 changes in fair value of financial instruments 2,694,559-2,153,469 2,847,153 Financial result 503,918-7,018,922-904,169 Financial result before taxes 10,219,261 8,221,606 12,194,935 corporation tax -328,715-326,322-181,105 Net result 9,890,546 7,895,283 12,013,830 net cash result / EPRA result 5,551,757 8,410,271 7,841,408 net cash result / EPRA result per share 0.3694 0.6379 0.6615 (Gross) dividend per share 0.63 0.63 Pay-out ratio (as % of the net cash result) 99% 95% (*)Current expression: Global result statement 31
Financial information RENTAL INCOME VS GENERAL EXPENSES EVOLUTION OF CONSOLIDATED RENTAL INCOME VERSUS GENERAL EXPENSES (IN MILLION ) Million 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 >5% 2011 2012 2013 2014 2015 2016 percentage increase: >5% Income General expenses 32
Financial information KEY FIGURES BALANCE SHEET Increase in investment properties thanks to inclusion of projects Watermaal-Bosvoorde and Vorst in H1 2017 Increased financial leases thanks to inclusion project Moerbeke Increase in equity because of capital increase (contribution in kind) Consolidated H1 2017 FY 2016 FY 2015 Receivables financial lease 160,602,775 156,938,253 157,005,329 Trade payables related to fixed assets 11,088,831 11,845,645 12,254,002 Investment properties 124,108,486 85,040,501 49,960,748 Other assets included in debt ratio 3,862,693 5,533,552 2,510,302 Cash & cash equivalents 1,728,975 3,657,309 8,547,846 Total assets 301,391,759 263,015,260 230,278,228 Equity 143,846,388 108,698,809 100,299,745 financial debt & liabilities included in debt ratio 136,871,472 131,301,154 105,466,068 other liabilities not included in debt ratio 20,673,899 23,015,297 24,512,415 total equity and liabilities 301,391,759 263,015,260 230,278,228 Debt ratio 45.41% 49.92% 45.80% Weighted average interest rate 3.23% 4.01% 4.17% 33
Financial information KEY FIGURES NET ASSET VALUE IFRS NAVPS: NAVPS according to IFRS Excl. IAS 39: the variations of the hedging instruments are hypothetical and depend on the market interest rate: no realised losses/ gains IAS 17 obliges to book leasings at nominal value of initial investment (EUR 160m) which is lower than the fair value ( 245m at 31/12/2016; 230m at 30/06/2017) Consolidated H1 2017 FY 2016 FY 2015 Net assets of the Company 143,846,388 108,698,809 100,299,744 IFRS NAVPS 9.57 8.24 7.62 Net assets of the Company, excluding authorised hedging instruments IFRS NAVPS excl. IAS 39 : Net value per share excluding authorised hedging instruments Net assets of the Company, excluding authorised hedging instruments, including fair value of lease receivables ( EPRA NAV) IFRS NAVPS excl. IAS 39, IAS 17 fair value: Net value per share excluding authorised hedging instruments, including fair value of lease receivables 162,772,91 130,161,813 119,609,280 10.83 9.87 9.08 221,483,091 206,677,221 172,239,426 14.74 15.68 13.08 34
5. Care Property Invest The share www.carepropertyinvest.be 35
The share SOLID TRACK RECORD EVOLUTION OF THE SHARE PRICE AND VOLUME OF SHARES EVOLUTION LIQUIDITY OF THE SHARE Share price in Number of shares traded 22 20 18 16 14 12 10 8 6 4 2 11.52143 Volume of shares 8,000 7,000 6,000 5,000 4,000 11.68186 13.12471 1.5466 5,283.5,2 7,456 20.45 IPO on 7 February 1996 at EUR 5.95 (adjusted for stock split) Enhanced liquidity and increasing share price since capital increase As from 19 December 2016: Inclusion share in the Euronext Brussels BEL Mid Index As from December 2016: member of the EPRA organisation 8,000 7,000 6,000 5,000 4,000 3,000 2,000 2,970 2,848 2,924 3,526 5,283 7,456 3,000 2,000 2,970 2,848 2,924 3,526 1,000 1,000 2011 2012 2013 2014 2015 2016 0 2011 2012 2013 2014 2015 2016 Average percentage increase: >15% Share price (in ) Average annual percentage increase:: >30% Volume of shares 36
The share MARKET CAPITALISATION SHARE EVOLUTION MARKET CAPITALISATION Million 300 301,479,333 250 269,627,524 Market cap increased with 220% over the last 5 years and 34.5% last year 200 150 100 50 120,988,500 122,673,150 134,733,519 165,647,206 200,407,744 0 2011 2012 2013 2014 2015 2016 30 june 2017 37
The share DIVIDENDS SHARE EVOLUTION OF THE GROSS DIVIDEND (IN /SHARE) SINCE INITIAL PUBLIC OFFERING) A dividend of 0.63 per share was paid out for FY 2016, the gross dividend yield amounts to 3.08%. Dividend paid out in 2018 will be subject to 15% WHT /share 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.5 0.0 0.37 0.34 0.32 0.34 0.29 0.30 0.30 0.30 0.35 0.35 0.39 0.39 0.41 0.46 0.47 0.48 0.49 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Gross dividend (in / share) - 0.41 0.48 0.52 On 24 March 2014 share split took place (1/1000). 0.50 0.47 0.49 0.49 0.51 0.51 0.51 0.51 0.53 0.51 0.55 0.51 0.61 0.55 0.77 0.63 (1) 0.73 0.63 (2) 0.66 (1) Creation of additional shares through an optional dividend (2) Creation of additional shares through a capital increase in 2015 0.63 0.65 0.63 0.74 0.68 2017 Expected EPRA earnings ( /share) 38
The share SHAREHOLDING STRUCTURE Share division as of 30 June 2017 (*) 31 December 2016 % proportion vis-à-vis total capital Number of shares (expressed in nominal value) % proportion vis-à-vis total capital Number of shares (expressed in nominal value) ORDINARY SHARES 99.00% 14,878,880 98.86% 13,034,720 SPECIAL SHARES (1) 1.00% 150,000 1.14% 150,000 (1) The special shareholders all hold registered shares and are as follows: Bank Degroof Petercam nv 0.07% 10,000 0.07% 10,000 BNP Paribas Fortis Bank nv 0.20% 30,000 0.23% 30,000 KBC Bank nv 0.20% 30,000 0.23% 30,000 Belfius Bank nv 0.53% 80,000 0.61% 80,000 Registered ordinary shares 5.27% 792,242 0.66% 87,826 Dematerialised ordinary shares 93,73% 14,086,638 98.20% 12,946,894 The above table shows the identity of the four special shareholders and the high percentage of free float, representing the ordinary shares (98.86% on 31/12/2016 and 99.00% on 30/6/2017). The vast majority of these ordinary shares are dematerialised. The special shareholders all hold registered shares. (*) As a consequence of the capital increase and the issuance of new shares on 15 March 2017 related to the acquisition of the project in Watermaal-Bosvoorde by means of a capital increase in kind. 39
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