2014 Presentationof 5 March 2015 AFFINE 2014 KEY TAKEAWAYS . - - PowerPoint PPT Presentation

▶

Apr 25, 2023 225 likes •590 views

FULL-YEAR RESULTS 2014 Presentationof 5 March 2015 AFFINE 2014 KEY TAKEAWAYS . STABLE EPRA EARNINGS (+) 8.6% increase in gross rental income (+) Cost of debt down to 3.0% (-) Negative contribution from Banimmo . CHANGE IN PORTFOLIO Increase

SLIDE 1

2014

FULL-YEAR RESULTS

Presentationof 5 March 2015

SLIDE 2

2 2014 FULL-YEAR RESULTS

AFFINE

2014 KEY TAKEAWAYS

. STABLE EPRA EARNINGS

(+) 8.6% increase in gross rental income (+) Cost of debt down to 3.0% (-) Negative contribution from Banimmo

. CHANGE IN PORTFOLIO

Increase in average lease term to 5.1 years €31.0m in acquisitions, improvements and developments €27.9m from disposals Occupancy rate above 90%

. ENHANCED CLARITY

Disposal of Concerto European Developer Full consolidation of the Bordeaux shopping complex

. EPRA NAV PER SHARE OF €23.0

(-) Net earnings of -€11.0m due to fair value adjustments (€27.6m) (-) Distribution in 2014 (€8.1m)

. DIVIDEND OF €1.0 PER SHARE(*)

(*) Will be submitted to the vote of the General Meeting of 30 April 2015

SLIDE 3

2014 FULL-YEAR RESULTS 3

INVESTMENTS AND DISPOSALS

SLIDE 4

4 2014 FULL-YEAR RESULTS

Orléans: €1.4m Chevigny St Sauveur: €2.6m INVESTMENTS AND DISPOSALS

€31M OF INVESTMENTS AND €28M OF DISPOSALS

€23m: Development& Refurbishment €28m: Disposals

Evry: €10.4m Paris - Réaumur: €11.0m

€8m: Acquisition

Toulouse Paris - Réaumur Lyon - Tangram Sant Feliu ILS Troyes Devanlay

SLIDE 5

5 2014 FULL-YEAR RESULTS

INVESTMENTS AND DISPOSALS

TOULOUSE – LES AMARANTES 1

. 2,900 sqm of offices

4 floors (Ground -1 to G+2) 84 parking lots, 64 of which underground 80% let to 3 tenants :

. Located in the heart of the new Borderougedistrict

Major urban development area Closed to

The newly-built Les Maourines shopping centre (Carrefour + 60 stores) Toulouse Blagnac international airport (15 min)

Excellent public transportation links

Metro line B for quick access to the city centre 8 bus services covering a large part of the city 1 intermodal station 3 bicycle stands

. Contract signed in November 2014 for Les Amarantes 2 :

2,900 sqm of offices Let at 88% to Dalkia

Pôle Emploi La Mutuelle Générale GreenFlex

SLIDE 6

6 2014 FULL-YEAR RESULTS

INVESTMENTS AND DISPOSALS

LYON PART DIEU – TANGRAM

. Refurbishment of 5,700 sqm offices space

2 buildings and parking lot for 121 cars Located on Boulevard des Tchécoslovaques on the extension of the Boulevard Vivier Merle, between the La Part-Dieu and Gerland districts Easy and improved service and enhanced attractiveness

2 métro stations, numerous bus routes Tram under progress

Completion by Q3 2015 and a well advanced marketing

2,750 sqm let to ISCOM with a 9-year fixed term lease 2,950 sqm under marketing

Building Gare TGV La Part-Dieu

SLIDE 7

7 2014 FULL-YEAR RESULTS

INVESTMENTS AND DISPOSALS

RÉAUMUR, A PARTIAL RECONVERSION

. 1,656 sqm totally refurbished

741 sqm of offices 606 sqm turned into residential 309 sqm of retails

. Nearby the Marais district

Located at 100 m of the Arts et Métiers metro station

. Works €5m . Disposals achieved

606 sqm of resitendial 229 sqm of offices

SLIDE 8

8 2014 FULL-YEAR RESULTS

INVESTMENTS AND DISPOSALS

DEVELOPMENT

. Concerto EuropeanDeveloper

Delivery of a 19,000 sqm logistics platform in the Aube logistics park in Troyes for Devanlay Delivery of a 10,700 sqm logistics platform in Sant Feliu (Spain) Development of a 43,500 sqm logistics platform in the Aube logistics park in Troyes for the group of Petit Bateau Building permit for the areas of

Cambrai (54,000 sqm) Mer (72,000 sqm) Honfleur (117,000 sqm)

. Disposal of Concerto EuropeanDeveloper, end of December,

to Kaufman & Broad through a partnership2014-18

SLIDE 9

2014 FULL-YEAR RESULTS 9

PERFORMANCE OF THE PORTFOLIO

SLIDE 10

10 2014 FULL-YEAR RESULTS

594 (28) +3 (25) +8 +15 +8 575 31/12/13 Disposal Capital gain Like-for-like Capex Dev. Acq. 31/12/14

PERFORMANCE OF THE PORTFOLIO

4.5% DECREASE OF THE PORTFOLIO VALUE

. Change in fair value excluding TT (€m) . Breakdown of the 4.5% decrease in fair value on a like-for-like basis

Market rent effect (ERV): -2.3% Cap rate effect: +0.4% Miscellaneous: -2.6% (works, reversion, transfer taxes change …)

SLIDE 11

11 2014 FULL-YEAR RESULTS

46.2 (0.7) (2.1) (1.6) 1.6 43.4 31/12/2013 Refurbishment Disposal Like-for-like Acquisition 31/12/2014

PERFORMANCE OF THE PORTFOLIO

HEADLINE RENTS: -3.7% LIKE-FOR-LIKE

. Change in headline rents annualized (€m)

Total headline rents change: -6.1%

SLIDE 12

12 2014 FULL-YEAR RESULTS

88.2% 87.6% 96.5% 94.3% 83.9% 90.5% 90.2% French Regions Other Ile-de-France Métropole du Grand Paris Warehouses and industrials Retail Offices Total 94.0% 92.2% 87.7% 89.0% 87.8% 90.9% 90.2% 2008 2009 2010 2011 2012 2013 2014 PERFORMANCE OF THE PORTFOLIO

OCCUPANCY RATE ABOVE 90%

. Financial occupancy rates (EPRA)

Impact Baudry

1.2 pt

Impact JdQ +0.8 pt

SLIDE 13

13 2014 FULL-YEAR RESULTS

10 20 30 40 50 31/12/14 31/12/15 31/12/16 31/12/17 31/12/18 31/12/19 31/12/20 31/12/21 31/12/22 31/12/23 31/12/24 End of lease Fixed term

PERFORMANCE OF THE PORTFOLIO

LEASE AVERAGE DURATION 5.1 YEARS (VS 4.8)

. Schedule in rents (€m) according to lease duration

Average time up to next break option: 2.8 years Average time up to lease expiry: 5.1 years 20 new leases (36,300 sqm ; €1.7m) 35 renegociated leases (41,400 sqm ; €4.9m) 13 terminated leases (8,800 sqm ; €1.4m)

SLIDE 14

14 2014 FULL-YEAR RESULTS

PERFORMANCE OF THE PORTFOLIO

PORTFOLIO YIELD

. Return by asset type . Return by location

Portfolio Headline Potential Split in value yield yield Offices 52.6% 6.9% 7.6% Retail 21.7% 6.7% 8.0% Warehouses & Industrials 25.6% 8.7% 9.2% Total 100.0% 7.3% 8.1% Portfolio Headline Potential Split in value yield yield Métropole du Grand Paris 26.9% 6.6% 6.8% Other Ile-de-France 14.0% 8.3% 9.3% French Regions 57.8% 7.4% 8.4% Total 100.0% 7.3% 8.1%

SLIDE 15

15 2014 FULL-YEAR RESULTS

SUBSIDIARIES

BANIMMO

. Repositionning property company

Portfolio: 20 buildings; Gross rental income: €9.0m; value: €335m.

. Key events

Acquisition of a plot of land allowing the development of 15,000 sqm

ffices in Namur (Belgium).

Development by Banimmo of 8,000 sqm of offices for BNP Paribas Fortis in Charleroi (Belgium) Disposal by Banimmo of 6,500 sqm of offices (€23.2m) under construction close to Brussels (Belgium) and which will be let to the Marsh & McLennan group Disposal of Bagatelle 5,300 sqm shopping mall in Suresnes (€27m) Acquisition of 4,710 sqm shopping mall in Pantin

. 2014 Results

Operating result: €10.5m vs €7.2m Net current result: €3.2m vs -€4.2m Significant negative accounting adjustments on the City Mall participation (-€8.4m) Net current result: -€9.3m vs -€13.8m

More details on

www.banimmo.be

SLIDE 16

2014 FULL-YEAR RESULTS 16

CONSOLIDATED ACCOUNTS

SLIDE 17

17 2014 FULL-YEAR RESULTS

CONSOLIDATED ACCOUNTS

CONSOLIDATED EARNINGS

(€m) 31/12/12 31/12/13 31/12/14

Gross rental income 46.4 40.2 43.7 Net rental income 41.3 34.8 39.2 Other income 4.3 1.9 1.3 Corporate expenses (10.9) (10.0) (10.1) Current EBITDA 34.6 26.7 30.3 Current operating profit 34.5 26.5 30.2 Other income and expenses (0.1) 0.7 (0.5) Net financial cost (16.9) (11.5) (10.9) Taxes (0.1) (0.5) (0.5) Associates 2.5 1.9 (1.9) Miscellaneous 0.3 (0.1) 0.1 Net current profit 20.2 17.0 16.5 Value adjustments of properties & profit on disposals (15.1) (21.8) (21.1) Fair value adjustments of hedging instr. (1.5) 4.0 (2.3) Adjustements for associates 0.9 (7.2) (3.4) Others 0.4 (0.9) (0.6) Net non-current profit – group share (15.4) (25.8) (27.4) Net profit – group share 4.7 (8.8) (11.0) EPRA Earnings (Net current profit – group share) 20.1 17.0 16.5

SLIDE 18

18 2014 FULL-YEAR RESULTS

256.0 (8.1) (25.3) (2.3) +16.6 (0.9) 236.0 31/12/2013 Dividends paid FV properties FV FI EPRA earnings Others 31/12/2014 €25.0 per share €23.0 per share

CONSOLIDATED ACCOUNTS

NET ASSET VALUE CHANGE

(€m) 31/12/12 31/12/13 31/12/14

Shareholders’ equity (before allocation) 351.4 326.2 303.5 PSL adjustment (73.2) (73.2) (73.2) Fair value adjustments to hedging instr. 12.6 7.2 9.9 Net deferred tax (2.1) (4.1) (4.3) EPRA NAV (excluding transfer tax) 288.8 256.0 236.0 EPRA NAV (including transfer tax) 324.0 290.5 272.5 EPRA NAV (excluding transfer tax) per share (€) 28.2 25.0 23.0 (M€)

Excluding PSL (TSDI) Based on the Net Asset Value

f Banimmo (€5.33 per

share) Others: interest on convertibles and PSL Convertibles, etc NAV per share after dilution fromconvertibles

SLIDE 19

2014 FULL-YEAR RESULTS 19

FINANCING

SLIDE 20

20 2014 FULL-YEAR RESULTS

881 821 803 682 699 668 484 423 407 310 327 330 55.0% 51.5% 50.8% 45.5% 46.8% 49.3% 0% 20% 40% 60% 80% 100% 120% 100 200 300 400 500 600 700 800 900 2009 2010 2011 2012 2013 2014 Value Loan LTV

. LTV of 49.3% (€m)

Stability of the net debt Interest rate risk hedged Implementation of €15m of new swaps and €60m of new caps in June

FINANCING

A CONTROLLED LTV FOR A RESUMPTION OF INVESTMENTS

SLIDE 21

21 2014 FULL-YEAR RESULTS

FINANCING

FINANCING AT FAVOURABLE CONDITIONS

. Average financing cost of 1.9%, or 3.0% hedging included

(vs 1.9% & 3.4%)

. Banks relationshipdiversified

6 main banks Average duration of the debt: 5.2 years Financing asset by asset with mortgages Amortizable over middle term

. Financing in 2014

Mortgage loan:

Arcachon (€11m) Bagnolet (€5m) Lyon Dauphiné (€6m) Réaumur (€5m) Toulouse (€6m)

Development credit:

Concerto financing (€4m drawn)

. Refinancing of the 2015 debt service underway

SLIDE 22

22 2014 FULL-YEAR RESULTS

20 40 60 80 100 120 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Contractual amortisation Repayment at maturity Early repayment

FINANCING

A SMOOTHED DEBT PROFILE

. Amortisationof debt (€m)

A financing policy aiming at smoothing the amortisation Repayment: around €30m p.a. on average Short term available credit lines of €15m

SLIDE 23

2014 FULL-YEAR RESULTS 23

STRATEGY & OUTLOOKS

SLIDE 24

24 2014 FULL-YEAR RESULTS

STRATEGY & OUTLOOKS

OUR STRATEGY [1/2]

. Geographic concentration of investments

On Métropole du Grand Paris and Regional Cities (Bordeaux, Lille, Lyon, Marseille, Nantes, Toulouse) With a coordinated approach with local communities To achieve economies of scale

. Investing primarily in buildings

Providing relatively high yield Of an average size of €10m to €30m (offices, retails, logistic platforms) Containing a potential for value creation by their location, rental situation or restructuring

. A sustained effort to improvement of assets

With a higher standards in a "sustainable development" approach By management optimization through enhanced cost control Disposal of buildings that no longer meet the investment criterias

. Becoming customer-oriented

By supplementing the providing of premises with rental services To secure the loyalty of tenants in order to improve the profitability of properties

SLIDE 25

25 2014 FULL-YEAR RESULTS

STRATEGY & OUTLOOKS

OUR STRATEGY [2/2]

. Breakdown of the portfolio in value term

52.6% 21.7% 25.6% 0.1% Offices Retail Warehouses and industrial Others

La Métropole du Grand Paris

SLIDE 26

26 2014 FULL-YEAR RESULTS

STRATEGY & OUTLOOKS

PRIORITIES FOR 2015

. Active investment research

In line with our strategy By leveraging our access to credit In coordination with disposals

. Improve rental performance

Lower rental expenses and administrative costs Reduce the vacancy rate

. Seek partnerships

To broaden the range of investment from

ur experience of the real estate business

. Enhance the quality of the portfolio

Disposal of buildings that no longer meet the investment criterias

SLIDE 27

27 2014 FULL-YEAR RESULTS

CONTACTS

. Affine . Liquidity contract:

Invest Securities

. Website :

www.affine.fr

Maryse Aulagnon Alain Chaussard Chairperson and CEO Vice-Chairman and Co-CEO + 33 (0)1 44 90 43 10 – info@affine.fr Frank Lutz Investor Relations + 33 (0)1 44 90 43 53 – frank.lutz@affine.fr

SLIDE 28

2014 FULL-YEAR RESULTS 28

APPENDIX

SLIDE 29

29 2014 FULL-YEAR RESULTS

APPENDIX

CONSOLIDATED CASH FLOW

(€m) 31/12/12 31/12/13 31/12/14

Funds from operation 17.9 17.9 22.8 Funds from operation (excluding cost of debt and tax) 33.3 30.1 34.3 Change in WCR (16.4) 1.3 (13.2) Taxes paid (0.0) (0.3) (1.2) Operating cash flow 16.8 31.1 19.9 Acquisitions & Investments (20.5) (27.1) (22.1) Disposals 131.2 8.3 25.2 Others 0.8 (1.2) 0.1 Investment cash flow 111.5 (20.1) 3.2 New loans 35.9 47.6 44.7 Loan repayments (123.8) (41.9) (60.4) Interest (16.5) (11.5) (11.2) Others (of which dividends) (15.7) (12.8) (13.9) Financing cash flow (120.2) (18.6) (40.8) Change in cash position 8.2 (7.6) (17.7)

SLIDE 30

30 2014 FULL-YEAR RESULTS

APPENDIX

CONSOLIDATED BALANCE SHEET

(€m) 31/12/12 31/12/13 31/12/14

Properties 549.3 593.8 575.1

f which investment properties

522.0 550.4 426.9

f which property held for sale

27.3 43.4 148.2 Equity holdings 0.1 0.3 0.3 Equity affiliates 89.6 60.4 54.7 Cash 32.6 39.4 4.3 Other assets 90.7 85.5 72.0 Shareholders equity (before allocation) 351.4 326.2 303.5

f which convertibles

20.8 20.6 20.4

f which PSL

73.2 73.2 73.2 Bank debt 360.9 366.5 346.7 Other liabilities 49.8 86.7 56.0 Total balance sheet 762.2 779.4 706.3

SLIDE 31

31 2014 FULL-YEAR RESULTS

12 13 14 15 16 17 18 19 20 21 janv.-14 mars-14 mai-14 juil.-14 sept.-14 nov.-14 janv.-15 Affine Euronext IEIF SIIC France EPRA Europe 10 20 30 40 50 janv.-14 mars-14 mai-14 juil.-14 sept.-14 nov.-14 janv.-15

APPENDIX

SHARE PRICE (€) AND AVG TRANSACTION VOL. (000)

SLIDE 32

32 2014 FULL-YEAR RESULTS

APPENDIX

LTV (NET DEBT / PORTFOLIO VALUE)

LOAN VALUE

(€m) 31/12/12 31/12/13 31/12/14

Net financial debt 334 347 345 Debt allocated to lease financing (23) (20) (15) Debt for investment properties 310 327 330 Value of properties (incl. TT) 580 627 610 Property companies on equity basis 88 58 52 VEFA & Fixed assets adjustments 14 14 6 Adjusted portfolio value incl. taxes 682 699 668 LTV (net debt on portfolio value) 45.5% 46.8% 49.3%

SLIDE 33

33 2014 FULL-YEAR RESULTS

9% 4% 3% 3% 3% 78% SNCF TDF Mairie Corbeil-Essonne Distrib - Pharma Heidelberg France Others < 3%

333 Leases TOP 5

. A diversified portfolio of customer – Breakdown of rents

Overall, the group has 333 leases corresponding to an average rental income of €130,000 by tenant or €103,000 excluding the TOP 5

APPENDIX

A DIVERSIFIED RISK ON TENANTS

SLIDE 34

34 2014 FULL-YEAR RESULTS

APPENDIX

DIVIDEND

. Affine, high yield property company (€m)

A 6.6% yield based on the share price of 31/12/2013 (€15.17)

10.7 9.8 12.2 13.4 8.1 14.4 20.6 10.8 10.8 8.1 9.0 5 10 15 20 25 30 2006 2007 2008 2009 2010 2011 2012 2013 2014 Cash Share

SLIDE 35

35 2014 FULL-YEAR RESULTS

Holdaffine 35.2% Free float* 64.8%

(voting rights 51.2%) (voting rights 48.8%)

APPENDIX

SHAREHOLDING

. Shareholding

Annualised capital turnover rate of 47% based on the float Annualised capital turnover rate of 31%

. Affine is listed on NYSE Euronext Paris

31 Dec 14

Number of shares 9,051,431 Share price €15.17 Market capitalisation €137.3m Change in 2014 8.8% EPRA earnings per share €1.38 Ticker (Bloomberg / Reuters) IML FP / BTPP.PA

* Of whichLa Tricogne and Orexim: repectively6.6% and 5.0% of capital and 4.8% and 3.6% of votingrights

SLIDE 36

36 2014 FULL-YEAR RESULTS

ANNEXE

POPULATION & TGV LINE

. 2016 : LGV Est Europe

106 km of new TGV line Paris-Strasbourg: 1h50 vs 2h20

. 2017 : LGV Bretagne

Pays de la Loire

182 km of new TGV line Paris-Rennes: 1h30 vs 2h10

. 2017 : LGV Sud Europe Atlantique

302 km of new TGV line Paris-Bordeaux: 2h10 vs 3h00

. Grand projets ferroviaires

du Sud Ouest

Current TGV Line TGV line under construction TGV line under study