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

18/11/2017

A unique Way to invest in Apartments

Finance Avenue

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Topics

• 1. Company profile & strategy
• 2. Belgian residential market
• 3. Key achievements in 2017
• 4. Stock & Conclusion

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Topics

1.Company profile & strategy

• 2. Belgian residential market
• 3. Key achievements in 2017
• 4. Stock & conclusion

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Company profile

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RREC (SIR/GVV) listed on Euronext since 1999 The specialist in residential real estate 40 professionals managing the full cycle of property Portfolio of

• ver € 450

mio Focus on Belgium Offering yearly increasing dividend

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A strategy based on four pillars - Managing the full cycle of real estate

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Acquisitions of big sites Advantage of exit tax Acquisitions in shares Acquisitions at cost Life Cycle Cost Efficiency of buildings Service to tenants Continuous refurbishment Maximisation of capital gains Continuous rejuvenation Regular « cleaning up » Finance Avenue

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A strategy based on four pillars - Managing the full cycle of real estate

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Finance Avenue Unique positioning

• n the

market

Investor

Developer

Active disposal process

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A strategy in line with a world full of changes

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Cities Sustainability Connectivity Mobility Housing

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Topics

• 1. Company profile & strategy
• 2. Belgian residential market
• 3. Key achievements in 2017
• 4. Stock & conclusion

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Context of dynamic demographic growth

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Bron: FOD Economie

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Context of dynamic demographic growth

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Growth of population period 2015-2030 (11,9 mio):

• Brussels: +10 %
• Flanders: + 5%
• Wallonia: + 7%

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Number of households period 2015-2030 (5,3 mio):

• Brussels: +9 %
• Flanders: + 10%
• Wallonia: + 13%

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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)

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Belgian residential market in 2016

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Finance Avenue 2016 2016 Evolut lution ion 2016 16-2015 2015 Evolut lution ion 2016 2016-2012 2012 Fland nder ers 226,850 2,6% 9,1% Walloni lonia 156,300 1,2% 6,7% Brus ussels els 404,400 0,4% 13,9% Belg lgium ium 210,800 3,6% 8,9%

Evolution of the average price per house per region, in EUR

Source: Statbel

2016 2016 Evolut lution ion 2016 2016-2015 2015 Evolut lution ion 2016 2016-2012 2012 Fland nder ers 227,200

• 1,5%

10,0% Walloni lonia 173,600 1,9% 7,6% Brus ussels els 233,100 1,7% 7,0% Belg lgium ium 220,500 0,0% 9,1%

Evolution of the average price per apartment per region, in EUR

Source: Statbel

Only for transactions submitted to registration fees. Regarding houses: mansions, villas and rooming houses not included

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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)

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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

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Portfolio

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Portfolio – properties in operation

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Portfolio spread over Belgium & The Netherlands

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Acquisitions

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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%

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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

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Acquisitions 2017 – Existing buildings Investers SA

• Acquisition of all the shares of company Investers SA on August 31st
• 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)

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Saint-Gilles Uccle Schaerbeek

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Acquisitions 2017 – Existing buildings Libertys, Auderghem

• VOP transferred the ownership of a building

located Place de l’Amitié in Auderghem

• Acquisition on September 13th
• 40 apartments, 41 basements and 40 parking

spaces

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Development projects Brunfaut- Molenbeek

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• 93 apartments
• Demolition works starting in the

coming weeks

• Delivery expected Q42019

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(Re)Developments

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Development projects The Inside

• 95 units
• Building accepted on June 1st 2017
• First tenants since July 1st 2017
• So far, more than 60% of the

apartments have been rented

• www.theinside.be

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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

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Development projects Reine Astrid, Kraainem

• 40 residential units
• Retail/offices units on ground floor
• Delivery expected H2 2018

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Development projects MTC2, Woluwe-Saint-Lambert

• Building permit introduced –

expected Q2 2018

• 47 apartments

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Refurbishment projects Scheldevleugel,Oudenaarde

• 95 units

80 studios, 15 apartments

• 75 garage boxes
• Renovation of the first faze

(empty apartments) finished

• www.scheldevleugel.be

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Refurbishment projects Léopold & Saint-Hubert, Liège

• Works started in both buildings

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Léopold Saint-Hubert

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(Re)Development Already a solid track record : 400 new units & 36 renovated

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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

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(Re)Development Coming soon… 330 new units & 135 renovated

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Name # units Delivery Description Célidée 96 Q4 2017 - Q1 2018 Urban renewal Scheldevleugel Oudenaarde 40 / 95 Q3 2017 / 2018-2019 Asset Management - Value add strategy Saint-Hubert 51 - Liège 6 2018 Asset Management – urban renewal Reine Astrid - Kraainem 40 2018 New building 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

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Property Management

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Property Management A unique expertise on the market

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Sales

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• Maximization of capital gains
• Regular « cleaning up » of less

performing assets in the portfolio

• Continuous rejuvenation of the

portfolio

Disposal process

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• 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

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Financial Results

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CONSOLIDATED KEY RESULTS (IN €) 1 2 From 1/1/2017 to 30/09/2017 From 1/1/2016 to 30/09/2016 Net rental result 16 517 317 13 840 918 Property result 14 639 284 12 032 680 Operating result before the portfolio result 10 002 326 8 093 891 Portfolio result

• Result on sales (distributable capital gain)

2 788 244 3 207 085

• Changes in fair value

3 089 266 10 949 491 Financial result

• Financial result excluding changes in fair value of

financial assets and liabilities

• 2 679 977
• 2 244 117
• Changes in fair value of financial assets and

liabilities 3 1 152 877

• 3 690 854

Net result 11 494 006 13 259 816 Average number of shares 4 3 157 351 3 147 897 Net result of core activities 7 107 528 5 801 646 Net result of core activities per share (4) 2.25 1.84 Distributable result 9 950 390 9 010 253 Distributable result per share (4) 3.15 2.86 On 30/09/2017 On 30/12/2016 Net value per share 69.20 65.19

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Topics

• 1. Company profile & strategy
• 2. Key achievements in 2017
• 3. Belgian residential market
• 4. Stock & conclusion

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Evolution of the stock price & dividend

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Comparison return

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The HIB team

…without whom all of this wouldn’t be possible…

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Thank you for your attention! Visit our stand n° 106!

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