2013 Results. 27 February 2014 Quatuor Lille-Roubaix. A sound basis for ongoing growth. Anatole France Levallois-Perret.

Transcription

1 2013 Results 27 February 2014 Quatuor Lille-Roubaix A sound basis for ongoing growth Anatole France Levallois-Perret Steel Paris 16

2 1 Strategic positioning 2 Real Estate activities in 2013: quality and visibility of rental income 3 Good results in 2013 produced an attractive dividend 4 Outlook: A sound basis for ongoing growth Eiffage Construction Vélizy

3 1 Strategic positioning 2 Real Estate activities in 2013: quality and visibility of rental income 3 Good results in 2013 produced an attractive dividend 4 Outlook: A sound basis for ongoing growth Le Patio Lyon-Villeurbanne

4 Strategic positioning 16bn in assets: 1 focus and 2 diversifications on solid and attractive markets Offices 62% A unique Partner and Key Accounts positioning Strong visibility of leasing revenue Development opportunities Other 15% 10bn* in assets Group share German Residential 15% Hotels and Service Sector 8% Positioning as market leader An impressive track record Supporting our partners' development An experienced German local platform (operating since 2005) Reversion potential to be harnessed Opportunities for growth in rental income and in value creation 4

5 An Offices-focused portfolio well suited to Key Accounts Group share data Active disposals policy Nearly 800m in sales in % of non-core assets Over 3% above appraised value 80% of Offices buildings are in strategic locations Paris Inner suburbs Milan Northern Italy Regional Cities Pipeline of secured projects Strong greening dynamic of assets A 1.5bn pipeline Focus primarily on Offices 631m already launched (19 projects) 0% 24% 40% 50% > 2/3 68% pre-let Percentage of green assets (Offices France) 2017 A quality portfolio 5

6 A positioning that generates solid real estate indicators Group share data 95% 95.4% 94.8% 95.% 95.5% 96.0% 5.8 years average maturities 16% 11% 9% 9% 10% 11% 8% 7% 3% 4% as % of annualized rental income 12% Au-delà Lease expirations by date of 1 st exit option High occupancy rate High firm residual term Excluding residential portfolio + 3.3% + 0.6% + 2.2% + 2.1% + 5.3% + 1.2% - 3.6% + 1.3% + 0.5% - 0.3% Sustainable rental income Change in LFL vs. N-1 Resilient values Change in LFL vs. N-1 6

7 1 Strategic positioning 2 Real Estate activities in 2013: quality and visibility of rental income 3 Good results in 2013 produced an attractive dividend 4 Outlook: A sound basis for ongoing growth Cisco Issy-les-Moulineaux

8 France Offices: partnerships and rental activities in 2013 Assets 4,7bn (100%) 4,1bn (Group share) Group share data Eiffage A 3 rd rental turn-key project: 23,000 sqm in Vélizy (HQ) Renewal of the lease for the Eiffage Construction headquarters up to 2027: 11,000 sqm in Vélizy Orange Renewal of 20% of Orange leases up to 2022 EDF Signature of a turnkey project of 4,100 sqm in Avignon VINCI A 3 rd turn-key project: Le Quatuor, 9,700 sqm in Lille-Roubaix (71% pre-leased) Dassault Systèmes Renewal of the DS Campus lease up to 2025 Launching of a 12,900 sqm extension of the site Tour CB 21 Suez Environnement: renewal of lease up to 2025 Signature of leases with Informatica and Nokia 3,600 sqm of new leases already signed in 2014 The CB 21 is 85% leased Nearly 30% of Offices France leases renewed in

9 France Offices: execution of projects in pipeline and disposal of non-core assets Group share data Deliveries of two projects (100% leased): Le Patio in Lyon Pégase in Clichy 4.1 million in rental income Launching of 8 new projects involving 102,800 sqm, including: Eiffage Campus, Cœur d Orly, Green Corner, Steel, Quatuor, Silex, and others Nearly 270m of disposals, 87% of Secondary office 13% of Core assets 270m in sales 87% of Secondary office Small assets essentially in the regions Over 3.5% above appraised value Continued quality improvement of the offices portfolio 9

10 France Offices: solid real estate indicators for 2013 Group share data 95.8% occupancy rate 5.7 years of firm lease terms 13% 9% 10% 12% 10% 6% 5% 7% 8% 5% Lease expiration by date of 1 st exit option as % of annualized rental income 15% Au-delà Beyond Growth in rental income of 2.2% Sustainable rental revenue Creation of value Like-for-like Growth in values of 1.0% Like-for-like 10

11 France Offices: 400,000 sqm of projects launched and leased since 2008 DS Campus - Velizy 1,8 bn of assets sold o/w over 200 were valued at less than 5m 25 projects launched over the period, more than 400,000 sqm Siège Eiffage Construction - Vélizy 12 projects delivered 220,000 sqm in 6 years 13 projects underway 190,000 sqm scheduled for delivery over the next 3 years Pégase - Clichy 12 potential new projects for 230,000 sqm currently in marketing Carré Suffren, - Paris Paris èm ème e Le Patio - Lyon-Villeurbanne 32 Grenier - Boulogne 11

12 France Offices: a transformed portfolio 1.4 bn in assets 4.1 bn in assets Group share data Paris 32 % + 9% 35 % Inner suburbs 26 % 37% + 42% % of assets are in dynamic markets Regional Cities 11% 13% + 18% Outer suburbs and other French regions 30% - 50% 15%

13 France Offices: a development pipeline tailored to demand Group share data Pipeline committed 13 projects targeted for 2/3 pre-leased Primarily in Paris' inner suburbs, Lyon and Marseille Budget: 522m - Nearly 200,000 sqm c. 36m in additional rental income Targeted yield over 7% Continuous value creation at c. 10% Pipeline managed 12 projects in the marketing phase Budget: 600m - Nearly 230,000 sqm Launched depending on marketing results c. 40m in potential additional rental income Targeted yield over 7% Continuous value creation at c. 10% Anatole France - Levallois Coeur d Orly Euromed Center - Marseille Silex 2 - Lyon Grenier - Boulogne 13

14 The New Vélizy Campus A leasing partnership with Thalès An investment partnership with CAA (QP FdR : 50%) 45,600 sqm Delivery Q Labeling / Certification HQE, BREEAM Very Good Architects: Di Fiore & Associés 14

15 Steel - Paris 16 ème 3,700 sqm Delivery 2014 Labeling / Certification HQE renovation, BBC renovation Architects: Palissad 15

16 Green Corner - Saint Denis 20,500 sqm Delivery: 2015 Labeling / Certification BBC Effinergie, HQE, BREEAM Architects: Di Fiore & Associés 16

17 Green Corner - Saint Denis 17

18 Euromed Center - Marseille Investment partnership with CAA (QP FdR: 50%) 24,000 sqm Delivery: 2015 Labeling / Certification BBC Effinergie, HQE Architects: Massimiliano Fuksas 18

19 Euromed Center - Marseille 19

20 Euromed Center - Marseille 20

21 Euromed Center - Marseille 21

22 Respiro - Nanterre Partnership with Vinci 11,150 sqm Delivery: Q Labeling / Certification HQE, BREEAM Architects: Di Fiore & Associés 22

23 Askia - Cœur d Orly Investment partnership with Altarea Cogedim and ADP (QP FdR: 25%) Askia 18,500 sqm Delivery: 2015 Labeling / Certification BBC Effinergie, HQE Architects: Wilmotte & Associés 23

24 Cœur d Orly 24

25 Quatuor - Lille-Roubaix Leasing partnership with Vinci 9,700 sqm Delivery 2015 Labeling / Certification Oxygène label Architects: Barré Lambot 25

26 Eiffage Campus - Vélizy A leasing partnership with Eiffage An investment partnership with CAA (QP FdR : 50%) A 23,000 sqm building connected to the Eiffage Construction HQ Delivery: 2015 Labeling / Certification NF Commercial Buildings, HQE Exceptional rating, Effinergie+ label and BREEAM Architects: Wilmotte & Associés 26

27 Eiffage Campus - Vélizy 27

28 Silex - Lyon Part-Dieu 10,600 sqm Delivery: 2016 Labeling / Certification HQE BBC BREEAM Architects: Architectes, Ingénieurs et Associés 28

29 Italy Offices: a solid market and a unique platorm Beni Stabili Assets 4.2bn (100%) 2.1bn (Group share) Group share data A transformation of the portfolio from 5 years ago Garibaldi Towers - Milan Over 300m in disposals (average yield of 4.7%) Acquisitions and development / re-development projects of 320m Deliveries/launches of 7 projects, including: Milan Garibaldi Tower, Excelsior, San Nicolao, Prada Head Office, etc. Turin: Via Lugaro, Corso Marconi 65% 76% 33% 46% X% X% Maintaining a firm Strengthening presence in Northern Italy (Portfolio value) Strengthening presence in Milan (Portfolio value) residual lease term of c. 7 years Garibaldi Towers - Milan 29

30 Italy Offices: a solid market and a unique platorm Beni Stabili Group share data 2013 Solid real estate indicators: strong visibility of rental income High occupancy rate of 97.7% Firm residual lease term in excess of 6.9 years LFL change Rental income: + 0.4% (+ 0.9% on the Core portfolio) Assets: - 1.5% (+ 1.1% on the Core portfolio) Continued deleveraging 44m of disposals in 2013 Via San Fedele - Milan Over 3.5% above appraised value Capitalize on our positioning as leader in Italy Continue to dispose non Core and mature assets until the LTV objective of 45% is achieved Via Cornaggia - Milan 30

31 Hotels and Service Sector: attractive markets, leader in Europe Assets 3.2bn (100%) 0.8bn (Group share) Group share data Leader in Europe Partnerships with three major players in the hotel industry, Accor, Louvre Hôtels and B&B. A significant track record in supporting and adapting to our partners' strategies Solid real estate indicators for 2013 Occupancy rate at 100% Residual lease term in excess of 7.1 years LFL change Rental income: + 1.7% Assets: + 1.5% Disposals of 45m, over 4.5% above appraised value B&B A partnership agreement was signed in January 2014 with B&B to develop 9 hotels in Germany Continued support of our partners in Europe Sofitel - Marseille 31

32 Hotels and Service Sector: attractive markets, leader in Europe B&B Hotel 4,000 sqm Porte de Choisy Delivery: Rooms Labeling / Certification HQE Architects: Dominique Perrault 32

33 German Residential : quality properties managed by experienced local team Assets 2.5bn (100%) 1.4bn (Group share) 2013 real estate indicators Occupancy rate: 98.7% LFL change Rental income: + 1.8% Value: + 1.8% A portfolio rotation dynamic Public Exchange Offer on FDL (FdR ownership in FDL: 60%) Acquisition of four German Residential portfolios via FDL for 351m Over 4,000 units 79% in Berlin and 21% in Dresden (in value) Average yield of 6.5% Average reversion of more than 20% Disposals of 216m in 2013, over 2.9% above appraised value A new step in the company's diversification strategy 33

34 German Residential : quality properties managed by an experienced local team Group share data Oberhausen 7% Müllheim 8% Other 14% Berlin 14% Datteln 5% Dresden 2% Essen 19% Dusseldorf 1% Duisburg 30% Diversified portfolio Investment in cities with economic and demographic potential Targeted sales of mature assets (block or unit by unit) 34

35 1 Strategic positioning 2 Real Estate activities in 2013: quality and visibility of rental income 3 Good results in 2013 produced an attractive dividend 4 Outlook: A sound basis for ongoing growth Carré Suffren - Paris

36 Solid portfolio values m Value Total share for 2013 Value 2013 GS LFL change in 12 months Yield ED 2013 GS Offices France 4,664 4, % 6.8% Offices Italy 4,157 2, % 6.1%* Offices 8,821 6, % 6.6% Hotels/Service Sector 3, % 6.2% Residential 3,317 1, % 5.9% Logistics % 7.4% Other na na Total 16,425 10, % 6,5% + 0.5% on a like-for-like basis 36 * Core portfolio only

37 EPRA NAV 2013: 77.7/share 4,342m + 13% vs ,871m + 8% vs ,518m 78.8 /share 3,833m 66.9/share + 0.6/share Value creation* - 1.6/share Other 69.2 /share + 3.5% vs /share - 1.4% vs /share EPRA RNI + 2.5/share Financial instruments - 4.2/share Distribution /share Deferred tax + 6.3/share Financial instruments EPRA NAV 2012 EPRA Triple Net NAV 2012 EPRA Triple Net NAV 2013 EPRA NAV 2013 *of which 0.3 / share as part of the Public Exchange Offer for FDL Number of shares used in calculating NAV/share: 62,708,431 shares for end 2013 vs. 57,315,048 in

38 2bn in refinancing - Lower cost of debt Group share data Lower cost of debt Continued diversification A smoothed maturities situation 2013 Net debt 5.1bn LTV 46.5% ICR x 2.5 Debt rate 3.9% Average maturity 4.5 years Bank mortgages 41% Investor mortgages 11% Bonds 30% Corporate loans 18% bn % > 2021 Continued improvement of market conditions 38

39 Solid and sustainable rental income: + 1.2% like-for-like Group share data Rental income ( m) Change % LFL Occupancy rate Firm residual lease term Offices - France % 95.8% 5.7 years Relevance of the partnership strategy Solid growth in the German Residential sector Offices - Italy % 97.7%* 6.9 years Offices % 96.4% 6.1 years Hotels/Service Sector % 100% 7.1 years Residential % 98.7% n/a Logistics % 85.5% 3.1 years Total % 96.0% 5,8 years m Invest Disposals Indexation: + 1.7% Letting Renewals: - 0.2% Occupancy rate: - 0.3% Indexation Asset Mgt + 44 Scope effect 526m *Only core portfolio

40 Growth in recurring net income Group share data m % Rental income o/w net rental income % Net operating costs Result from other activities Net change in provisions and other Net cost of financial debt Recurring net income of MEE companies Income from non-consolidated companies Recurring tax EPRA Recurring Net Income % EPRA Recurring Net Income / share % Change in the fair value of real estate assets Other changes in asset values Changes in the fair value of financial instruments Other Non-recurring taxes Net Income Average number of fully diluted shares 56,182,919 59,632,122 40

41 Recurring Net Income in line with our objectives Change vs Change vs EPRA RNI (in m) % EPRA RNI / share ( ) % Reinforcement in Germany Controlled operating costs (- 2% on a like-for-like basis) Property expenses on the rise due to the IMU tax and to Logistics Average increase in number of shares of 6.1% 41

42 Solid financial performance supports an attractive dividend Dividend per share in * Payout: 84% Paid in cash Dividend yield: 6.3% ** 42 * Proposed by the 28 April 2014 Shareholders' Meeting **Price of 67,2 per share on 25 February 2014

43 1 Strategic positioning 2 Real Estate activities in 2013: quality and visibility of rental income 3 Good results in 2013 produced an attractive dividend 4 Outlook: A sound basis for ongoing growth Silex 2 Lyon-Part-Dieu

44 A sound basis for ongoing growth Group share data 1 Investments in 2 Intensification of disposals core assets of non-core assets Offices Secured pipeline Targeted acquisitions Two areas of diversification Hotels/Service Sector German Residential properties Logistics portfolio secondary office properties, etc. 100% 85% % of the core portfolio 3 A strong financial structure (LTV policy of 45% - Debt diversification) EPRA RNI Objective for 2014 stable 44

45 Agenda Q1 2013: 6 th May

46 Disclaimer This document contains forward-looking reflections and information. By their nature, these reflections and information include financial forecasts and estimates as well as the assumptions on which they are based, statements related to projects, objectives and expectations concerning future operations, products and services or future performance. Although Foncière des Régions s management believes that these forward-looking reflections and information are reasonable, Foncière des Régions cannot guarantee their accuracy or completeness and investors in Foncière des Régions are hereby advised that these forward-looking reflections and information are subject to numerous risks and uncertainties that are difficult to foresee and generally beyond Foncière des Régions s control, which may mean that the actual results and developments differ significantly from those expressed, induced or forecasted in the forward-looking reflections and information. These risks include those developed or identified in the public documents filed by Foncière des Régions with the AMF, including those listed in the Risk Factors section of the Reference Document registered with the AMF on September

47 Delivery of 13 projects totaling nearly 190,000 sqm between , o/w 2014 New Vélizy 45,600 sqm in Vélizy Egis 6,100 sqm in Montpellier Steel 3,700 sqm in Paris (16 th ) 100% pre-leased 100% pre-leased In marketing phase Green Corner 20,500 sqm in St Denis 70% pre-leased EDF 4,100 sqm in Avignon 100% pre-leased 2015 Euromed Center Respiro Coeur d Orly Quatuor Eiffage Campus 24,000 sqm in Marseille 11,150 sqm in Nanterre 18,500 sqm in Orly 9,700 sqm in Lille-Roubaix 23,000 sqm in Vélizy 66% pre-leased 100% pre-leased 50% pre-leased 71% pre-leased 100% pre-leased 71% pre-leased 2016 Silex DS Campus ext. 10,600 sqm in Lyon 12,800 sqm in Vélizy 100% In marketing pre-leased phase 100% pre-leased c. 36 in rental income 2/3 pre-leased Targeted yield > 7% 47

48 Contact : Sébastien Bonneton Tel: + (33) Cell: + (33) sebastien.bonneton@fdr.fr Quatuor - Roubaix 30, Avenue Kléber Paris France