First half results presentation. October 2006

Transcription

1 First half results presentation October 2006

2 CONTENTS - Mines de la Lucette Group - First step of the strategy - Assets at 30 June Consolidated financial statements at 30 June Second step of the strategy - Stakeholder outlook

3 - Mines de la Lucette Group - First step of the strategy - Assets at 30 June Consolidated financial statements at 30 June Second step of the strategy - Stakeholder outlook

4 Mines de la Lucette Group Mines de la Lucette is a dynamic property company focusing on offices and warehousing 8 offices and 18 warehouses The portfolio value is worth more than 1.6bn and has a total surface area of 666,000 sqm Include top-quality tenants : PWC, Casino, L Oréal, Bloomberg... Two-step growth strategy: Acquire high quality assets with secure long-term cash flow Speed up growth through transactions taking full advantage of the office rental market cycle and outsourcing of industrial assets 4

5 - Mines de la Lucette Group - First step of the strategy - Assets at 30 June Consolidated financial statements at 30 June Second step of the strategy - Stakeholder outlook

6 First step of the strategy Building the foundations March 2006: acquisition of a portfolio of five prime office buildings from the KanAm investment fund April 2006: acquisition of thirteen logistics platforms from Casino May 2006: acquisition of a warehouse as part of an asset outsourcing transaction 6

7 - Mines de la Lucette Group - First step of the strategy - Assets at 30 June Consolidated financial statements at 30 June Second step of the strategy - Stakeholder outlook

8 Assets at 30 June 2006 Breakdown of assets value 256m 16% 98m 6% 295m 18% Portfolio valuation by CBRE and Catella 1,279m 78% 1,338m 82% Offices Warehouses Hotels & other Paris IDF Province The total portfolio is valued at 1,633m (including Transfer Taxes (TT)) and the target mix has already been achieved: 70 / 80% prime offices 20 / 30% industrial assets 8

9 Assets at 30 June 2006 Portfolio breakdown by annualised rental income at 30 June m 23% 5.7m 7% Portfolio breakdown by total surface area sqm 5% sqm 18% 60.5m 70% sqm 77% Offices Warehouses Hotels & other Offices Warehouses Hotels & other Total annualised rental income at 30 June 2006: 85.5m Total surface area at 30 June 2006: 666,000 sqm 9

10 Value-creating acquisitions 1,513m 1,538m 1,633m 1 600m 1 200m 76m 92m 244m 241m 98m 256m 800m 1 193m 1 205m 1 279m 400m 0m Consolidated purchase price Assessed value ex TT Assessed value inc TT Offices Warehouses Hotels & other * For consistency, transfer taxes of 6.2% have been deducted from values including TT 10

11 Prime offices rented to international tenants River Plaza 26,700sqm L Oréal Asnières Tour Scor 30,200sqm Scor La Défense Rating: BBB+ 7/9 Messine 8,500sqm AXA Paris 8 th Rating: AA- Crystal Park 39,900sqm PWC Neuilly 5/7 Scribe 7,600sqm Bloomberg Paris 8 th Rating: A+ 11

12 Secure office rental income Office rental income maturity schedule by year at 30 June m 60m 50m 40m 30m 20m 10m 0m 60.5m By lease termination date By next break option date Office rental income is secured until

13 Rents are at market levels Financial occupancy rate The average rent is currently 525 per sqm, in line with market rents % 80.00% 60.00% 40.00% 20.00% 0.00% 99.80% 30/06/2006 Paris office rents are in a recovery phase thanks to increasing demand and a moderate vacancy rate Moscow Rental growth slowing Rental growth London West End accelerating Oslo, Madrid Dublin, Paris London City Hamburg, Budapest Stockholm, Copenhagen, Helsinki, Barcelona, Lyon Munich Vienna,Geneva,Luxembourg, Athens, Brussels, Warsaw,Edinburgh Source Jones Lang LaSalle Q Rents falling Rents bottoming out Berlin Zurich Prague, Amsterdam, Lisbon, Frankfurt Düsseldorf, Milan, Rome 13

14 A geographically diversified warehouse portfolio Moreuil (53,000sqm) Paris Limoges 46,200sqm Chilly-Mazarin (18,800sqm) Cholet (6,900sqm) Montmorillon (35,200sqm) Auxerre (30,600sqm) Besançon (73,700sqm) Dijon 24,000sqm Lyon Chambéry (18,900sqm) Bordeaux Grigny (30,900sqm) Béziers (5,600sqm) Andrézieux 70,200sqm Marseille Toulon (21,000sqm) Aix (I,II et III) 77,300sqm Cold Dry Cold / dry A total of 512,000m² in 18 warehouses rented to Casino, Transalliance and La Poste 14

15 Recurring revenue and top quality tenants 20m Warehouse rental income maturities by year at 30 June m Warehouse leases are secured until m 12m 8m The current average rent suggests about 5% revaluation potential. 4m 0m By lease termination date By next break option date Current rents and assessed rents ( /m²) Financial occupancy rate /m² 40 /m² 100,00% ,00% 60,00% 40,00% 20,00% 98,30% 0 Average current rent Average assessed rent 0,00% 30/06/

16 - Mines de la Lucette Group - First step of the strategy - Assets at 30 June Consolidated financial statements at 30 June Second step of the strategy - Stakeholder outlook

17 Earnings are growing strongly CONSOLIDATED FIRST HALF INCOME STATEMENT '000 1st half 2006 reported Impact of capital increase 1st half 2006 pro forma 1st half 2005 restated Rental income Charges (283) - (283) (133) Net rental income Asset management expense (499) - (499) (57) Overhead expense (1 585) - (1 585) (631) Development expense (516) - (516) (57) Other income and expense (13) Income from other activities and asset disposals Net value adjustments Net profit from operations Finance income (expense) (18 588) * (14 976) (735) Profit before tax Income tax (21) - (21) Total net consolidated profit Minority interest Net profit Average number of shares Earnings per share (euros) 5,98-2,40 1,60 * Saving on finance expense on conversion of shareholder loan into equity 17

18 Earnings are growing strongly (cont) RECURRING CASH FLOW H H '000 '000 Per share ( ) '000 Per share ( ) GROUP NET PROFIT , ,60 Depreciation charges Provisions (309) (3) Development costs on projects not completed Other income (loss) (248) - Income (loss) on disposal of investment properties (7) (161) Net property value adjustments (17 461) (312) Deferred and current income tax 21 (2 017) Average number of shares Recurring cash flow , ,01 Interest on shareholder loan* Recurring cash flow adjusted for capital increase , * Shareholder loan incorporated in share capital in July 2006 Recurring cash flow has a 3% sensitivity to a 1% change in rental income 18

19 The balance sheet has been rebalanced FIRST HALF CONSOLIDATED BALANCE SHEET m 30/06/2006 reported Impact of capital increase 30/06/2006 pro forma 31/12/2005 restated ASSETS Investment properties Other non-current assets 3 3 Current assets Cash and restricted cash Total assets LIABILITIES Share capital Issue premium Net profit and reserves Total equity Shareholder loan 303 (303) - 9 Medium and long-term debt Deposits and guarantees received Other financial liabilities Deferred tax liabilities 1 1 Total non-current liabilities (303) Total current liabilities 59 (4) Total liabilities

20 Debt is not exposed to interest rate risk Debt maturity schedule at 30 June 2006 Debt structure ,33% 0,31% 0,31% 0,32% 83,41% 0,32% 16,67% 0-1 year 1-2 years 2-3 y ears 3-4 years 4-5 years 5-6 years 6 years & + Variable rate debt 25m 2% Fixed rate debt 1,052m 98% The ratio of net debt to asset value ex TT* is 69.1% The average debt maturity is 5.4 years The average cost of debt is 4.4% * Transfer Taxes estimated based on the most probable way of sale 20

21 Restated replacement NAV at 30/6/06 Transfer Taxes Net asset value is rising NAV per share 21.3 Restated liquidation NAV at 30/6/06 Casino capital increase Cash Flow H1 06 Debt at market value Asset revaluation 328m capital increase at Liquidation NAV at 31/12/05 Liquidation NAV at 30/6/06

22 - Mines de la Lucette Group - First step of the strategy - Assets at 30 June Consolidated financial statements at 30 June Second step of the strategy - Stakeholder outlook

23 Second step of the strategy Our three value creation levers are based on: Increase of prime office rents level Mines de la Lucette s ability to manage/restructure office assets and portfolios with high revaluation potential Make use of SIIC 3 tax status to acquire assets offering attractive yield This strategy is now possible thanks to acquisitions in the first half generating secure cash flow The main aspect is a search for: Office buildings to restructure and property development operations in the Paris region, Lyon and Marseille Outsourcing of portfolios belonging to industrial users 23

24 Anticipating an increase of rents level The Colisée building was acquired on 21 July The Colisée is a recent well-situated office building at La Défense, with a total surface area of 25,000m² Acquisition of the Colisée building The building s strengths: A multi-tenant building well located for the growing need for space in the area; the building has had no vacancies since it was delivered in 1998 Economic advantage of attractive charges ( 42 per m²) since it is not a high-rise building Acquired at an attractive yield: Thanks to control of rental risk (part of the leases come to term in 2007); the current average rent is 430 per m² With excellent timing for re-letting given expectations of a recovery in market rents Annual rent: 12.1m Acquisition price: 195m incl TT 24

25 Redevelopment potential in a prime environment These two office buildings offer about 4,000 m² in total surface area A purchase commitment was signed on 27 September for the acquisition of two buildings in Neuilly-sur-Seine An office portfolio which will be rented to its current owner until October 2007 Exposure to rental market recovery over the next 12 to 18 months An office portfolio in an excellent location on Avenue Charles de Gaulle in Neuilly Annual rental income: 1.8m Acquisition price: 27m inc TT 25

26 Strong revenue growth potential Acquisition of an office portfolio on 29 September The portfolio consists of 8 assets in the Paris Region with a total surface area of 73,000m² Annual rental income on acquisition: 9.2m Acquisition of a non-stabilised portfolio: 31% financial vacancy rate on acquisition, mainly in two buildings Reduction of financial vacancy rate to 3% over 18 months, which should take net rental income to 14.3m (+55%) Capex budgeted at 5m over the next 24 months Potential annual rental income in 2008: 14.3m Nanterre 5,634m² Charenton 10,743m² Evry 26,726m² Acquisition price : 173m inc TT 26 Antony 11,096m²

27 - Mines de la Lucette Group - First step of the strategy - Assets at 30 June Consolidated financial statements at 30 June Second step of the strategy - Stakeholder outlook

28 Stakeholder outlook Writing of a liquidity contract making the stocks continuously listed since September 14th Payment of dividends from 2007 (yield of about 4%) Expansion of free float in the short to medium term 28