A unique Way to invest in Apartments Finance Avenue 18/11/2017 - PowerPoint PPT Presentation

A unique Way to invest in Apartments Finance Avenue 18/11/2017

Topics 1. Company profile & strategy 2. Belgian residential market 3. Key achievements in 2017 4. Stock & Conclusion Finance Avenue 18/11/2017 2

Topics 1.Company profile & strategy 2. Belgian residential market 3. Key achievements in 2017 4. Stock & conclusion Finance Avenue 18/11/2017 3

Company profile RREC (SIR/GVV) listed on Euronext since 1999 Offering yearly The specialist increasing in residential dividend real estate 40 professionals Focus on managing the Belgium full cycle of property Portfolio of over € 450 mio Finance Avenue 18/11/2017 4

A strategy based on four pillars - Managing the full cycle of real estate  Maximisation of capital  Acquisitions of big sites gains  Advantage of exit tax  Continuous rejuvenation  Acquisitions in shares  Regular « cleaning up »  Acquisitions at cost  Service to tenants  Life Cycle Cost  Continuous  Efficiency of buildings refurbishment Finance Avenue 18/11/2017 5

A strategy based on four pillars - Managing the full cycle of real estate Investor Unique positioning on the market Active Developer disposal process Finance Avenue 18/11/2017 6

A strategy in line with a world full of changes Cities Sustainability Housing Connectivity Mobility Finance Avenue 18/11/2017 7

Topics 1. Company profile & strategy 2. Belgian residential market 3. Key achievements in 2017 4. Stock & conclusion Finance Avenue 18/11/2017 8

Context of dynamic demographic growth Bron: FOD Economie Finance Avenue 18/11/2017 9

Context of dynamic demographic growth Growth of population Number of households period 2015-2030 (11,9 mio): period 2015-2030 (5,3 • Brussels: +10 % mio): • Flanders: + 5% • Brussels: +9 % • Wallonia: + 7% • Flanders: + 10% • Wallonia: + 13% Finance Avenue 18/11/2017 10

Belgian residential market 2016 Investment Market • Still cheaper credits (- 15 à -50 bp) • Less return on alternative investments • Growth of population  Strong activity : record year with +8,2 % (2015) – 115,000 transactions  Prices rising (especially for new apartments) Finance Avenue 18/11/2017 11

Belgian residential market in 2016 Evolution of the average price per house per region, in EUR Evolution of the average price per apartment per region, in EUR Source: Statbel Source: Statbel Evolut lution ion Evolut lution ion Evolut lution ion Evolut lution ion 2016 2016 2016 2016 2016 16-2015 2015 2016-2012 2016 2012 2016 2016-2015 2015 2016-2012 2016 2012 Fland nder ers 226,850 2,6% 9,1% Fland nder ers 227,200 -1,5% 10,0% Walloni lonia 156,300 1,2% 6,7% Walloni lonia 173,600 1,9% 7,6% Brus ussels els 404,400 0,4% 13,9% Brus ussels els 233,100 1,7% 7,0% Belg lgium ium 210,800 3,6% 8,9% Belg lgium ium 220,500 0,0% 9,1% Only for transactions submitted to registration fees. Regarding houses: mansions, villas and rooming houses not included Finance Avenue 18/11/2017 12

Brussels Letting Market • Cf. “Observatiecentrum van huurprijzen 2016” (Brussels) • Sample of 5,000 units out of 300,000 • Average rent : 710 EUR/month (709 in 2015) • Median rent: 660 EUR/month (650 in 2015) Finance Avenue 18/11/2017 13

Topics 1. Company profile & strategy 2. Belgian residential market 3. Key achievements in 2017 • Portfolio • Acquisitions • (Re)Development • Property Management • Sales • Key Figures & Financial Results 4. Stock & conclusion Finance Avenue 18/11/2017 14

Portfolio Finance Avenue 18/11/2017 15

Portfolio – properties in operation Finance Avenue 18/11/2017 16

Portfolio spread over Belgium & The Netherlands Finance Avenue 18/11/2017 17

Acquisitions Finance Avenue 18/11/2017 18

Acquisitions 2017 – Development Projects Jourdan (Saint-Gilles) • 5,800 m² • 69 parking spaces • Office building to be converted into a residential building • 55 units • Provisional acceptance of works mid-2020 • Immediate expected yield of +/- 5.25% Finance Avenue 18/11/2017 19

Acquisitions 2017 – Existing buildings Port Zélande • Strenghtening the position in the Center Parcs Port Zélande • Acquisition of 7 additional cottages & 40 apartments • Leased for a period of 15 years • Initial rent of 43,000 indexed annually Finance Avenue 18/11/2017 20

Acquisitions 2017 – Existing buildings Investers SA • Acquisition of all the shares of company Investers SA on August 31 st • 27 apartments, 4 stores and 2 offices spread over 3 different buildings in Uccle (8 apartments, 3 shops), Schaerbeek (10 apartments) and Saint-Gilles (9 apartments, 2 offices, 1 retail space) Uccle Saint-Gilles Schaerbeek Finance Avenue 18/11/2017 21

Acquisitions 2017 – Existing buildings Libertys, Auderghem • VOP transferred the ownership of a building located Place de l’Amitié in Auderghem • Acquisition on September 13 th • 40 apartments, 41 basements and 40 parking spaces Finance Avenue 18/11/2017 22

Development projects Brunfaut- Molenbeek • 93 apartments • Demolition works starting in the coming weeks • Delivery expected Q42019 Finance Avenue 18/11/2017 23

(Re)Developments Finance Avenue 18/11/2017 24

Development projects The Inside • 95 units Building accepted on June 1 st 2017 • First tenants since July 1 st 2017 • • So far, more than 60% of the apartments have been rented • www.theinside.be Finance Avenue 18/11/2017 25

Development projects The Pulse - Molenbeek • 96 units (93 apartments & 3 houses) • Delivery in 3 phases: • Building C : November 2017 • Buildings A&B : January 2018 • Own development • Urban renewal Finance Avenue 18/11/2017 26

Development projects Reine Astrid, Kraainem • 40 residential units • Retail/offices units on ground floor • Delivery expected H2 2018 Finance Avenue 18/11/2017 27

Development projects MTC2, Woluwe-Saint-Lambert • Building permit introduced – expected Q2 2018 • 47 apartments Finance Avenue 18/11/2017 28

Refurbishment projects Scheldevleugel,Oudenaarde • 95 units 80 studios, 15 apartments • 75 garage boxes • Renovation of the first faze (empty apartments) finished • www.scheldevleugel.be Finance Avenue 18/11/2017 29

Refurbishment projects Léopold & Saint-Hubert, Liège • Works started in both buildings Léopold Saint-Hubert Finance Avenue 18/11/2017 30

(Re)Development Already a solid track record : 400 new units & 36 renovated Name # units Delivery Description Galerie de l’Ange 6 2014 New apartments in existing building of portfolio Trône 16 2015 New Building - Iconic location – Fully let The Link 123 2015 Office reconversion- Student House – Fully let Ghlin 20 2016 Refurbishment of existing houses – Fully let Arch View 16 2016 Refurbishment of existing building – Fully let The Horizon 160 2016 Office reconversion – New way of living – Fully let The Inside 95 Q2 2017 Office reconversion – 50% let Finance Avenue 18/11/2017 31

(Re)Development Coming soon… 330 new units & 135 renovated Name # units Delivery Description Célidée 96 Q4 2017 - Q1 2018 Urban renewal Scheldevleugel 40 / 95 Q3 2017 / 2018-2019 Asset Management - Oudenaarde Value add strategy Saint-Hubert 51 - 6 2018 Asset Management – Liège urban renewal Reine Astrid - 40 2018 New building Kraainem Leopold - Liège 29 + 7 2019 Asset Management – urban renewal Brunfaut 96 2019 New building - Urban Renewal MTC2 47 2020 New building Jourdan 95 50 2020 New building Finance Avenue 18/11/2017 32

Property Management Finance Avenue 18/11/2017 33

Property Management A unique expertise on the market Finance Avenue 18/11/2017 34

Sales Finance Avenue 18/11/2017 35

Disposal process • Maximization of capital gains • Regular « cleaning up » of less performing assets in the portfolio • Continuous rejuvenation of the portfolio • Ongoing sales of the buildings • Mélèzes (Woluwe-Saint- Lambert) • Birch house (Etterbeek) • Bosquet-Jourdan (Saint-Gilles) • Jardins de la Cambre (Ixelles). Jardin de la Cambre Bosquet Jourdan Finance Avenue 18/11/2017 36