Contemplated merger with Beni Stabili: A major step forward in European strategy & Group simplification - April 20 th , 2018
CONTENTS > Beni Stabili: the leading Office player in Milan > Strategic merger supported by strong Milan office market dynamic > Simplification as a growth driver > Contemplated transaction & estimated impacts > An attractive value proposition for Beni Stabili shareholders > Key takeaways FONCIÈRE DES RÉGIONS 2
Beni Stabili: the leading Office player in Milan 3
BENI STABILI: THE LEADING ITALIAN OFFICE PLAYER € 3.5 bn portfolio 1 Group Share Fuelled by a c. € 800 M pipeline With an unparalleled portfolio in Milan ( € 4.2 bn on a 100% basis) mostly in Milan (89%) 253 assets 51 assets 8 projects (1,903,000 m²) 2 (620,000 m²) 2 (198,100 m²) 64% of total GAV in Milan Committed projects Managed projects > Strategic focus on offices € 2.2 bn (Group Share) - - € 317 M c. € 460 M 61% 22% 17% CBD & Center & Periphery Non strategic Porta Nuova Semi-Center 8% Offices - Sesto San excl. Giovanni M3 Cernusco / M5 Telecom Bicocca Vimodrone Italia Offices - M1 M2 69% Telecom Italia Certosa Maciachini M1 23% Semi-centre Porta City Life Lambrate Segrate Nuova M5 / CBD Forlanini M4 M1 Linate Lorenteggio Centre Airport M4 Navigli Ripamonti Periphery M3 San Donato M2 Milanese Milanofiori Offices: 92% Existing Portfolio Development Pipeline Business Districts 1 As of year end 2017, pro-forma the 9% disposal in SICAF Telecom Italia 2 100% basis FONCIÈRE DES RÉGIONS 4
DELIVERING ON TARGETS ANNOUNCED IN 2015 MAJOR STRATEGIC SUCCESSES SINCE 2015, BRINGING TO THE MERGER PAVING THE WAY TO A STRATEGIC GROUP INTEGRATION Diversified Tenant Base & Improved Occupancy Healthier credit profile Focus on Milan Occupancy rate Loan-to-Value (Offices, excl. TI) 64 2 % +15pp 95.1% +760 Investment Milan Office bps Grade Rating (excl. TI) 49% Focus on 2017 83% 50.9% Milan 1 87.5% % Telecom 41% 44.1% Italia 1 (18pp) 23 2 % 2015 2017 2015 2017 2015 2017 Increased Reduced Debt Maturity Cost of Debt ~6 yrs 2.15% (vs. 4.3 yrs in 2015) (-76 bps vs. 2015) 1 Based on Gross Asset Value FONCIÈRE DES RÉGIONS 5 2 Proforma of the additional disposal of 9% of SICAF Telecom Italia
Strategic merger supported by strong Milan office market dynamic 6
MILAN OFFICE MARKET DYNAMIC SUPPORTING THE PROPOSED TRANSACTION REGAINED MOMENTUM OF MILAN OFFICE MARKET, FAVOURING GRADE A ASSETS ~+20% 70% Increased Take-up: - - Preference for Grade A as % of 2017 take-up Grade A total take-up vs. 2015 2017 15.4% 13.5% Limited Vacancy Milan: 10.3% Vacancy for 6.8% 11.0% 12.5% Grade A 6.0% 4.2% Properties: 4.5% 4.3% 2.4% Beni Stabili Milan vacancy: 2.4% 2.9% 2.4% 2.3% Milan Of which Grade A 1.7% 2.% 1.8% Vacancy Rate (Q1 2018) CBD / Porta Nuova Centre Semi Centre Periphery Hinterland € 480 Increasing € 460 Rents for Quality Assets: € 440 +10% € 420 Average Economic Rent for Prime Offices € 400 2013 2014 2015 2016 2017-2018 Source: Cushman & Wakefield FONCIÈRE DES RÉGIONS 7
Simplification as a growth driver
SIMPLIFICATION AS A GROWTH DRIVER A key milestone towards the ongoing objective of simplification Improve flexibility and reactivity Intensify client centric approach Capitalize on a € 21 bn Group: financing sources / cost, synergies and sharing of best practices between products & countries Group structure - 2017 Group structure - Post contemplated merger Offices Foncière des Régions € 8.6 bn Group Share 61.3% 50.0% 52.4% 61.0% Hotels German Beni Europe Residential FDL FDM Immeo Stabili FDM Immeo Residential Residential 40.7% 51% GAV France Germany SICAF FDM ~ € 15 bn 1 Telecom Management Italia Group Share Hotels Offices Italy € 2.0 bn € 3.1 bn Group Share Group Share Delisting Merger Merger: Completed Completed Proposed Ownership: 42.0% Ownership: 61.7% in 2017 Early 2018 (limited partner) Transaction FONCIÈRE DES RÉGIONS 1 As of mid-2018, including secured transactions in H1 2018 9
A TRANSACTION STRENGTHENING THE GROUP’S STRATEGIC PILLARS 1 2 3 Focus on Full integration Strengthened European capital cities to best serve our clients property developer Know-how sharing & Full integration of ~ € 800 M + € 1.7 bn of assets 1 mainly in Milan leveraging synergies between Beni Stabili’s pipeline in Milan markets and countries: Foncière des Régions portfolio to reach > Coworking: Milan #1 Wellio site by 2019 + € 275 M of new committed projects in Milan c. € 15 bn 2 Group Share ( € 21 bn at 100%) > Hotels: Italy as a targeted market 2018 and 2019 1 Group Share FONCIÈRE DES RÉGIONS 2 As of mid-2018, including secured transactions in H1 2018 10
FOCUS ON DEVELOPMENT PIPELINE IN MILAN COMMITTED PIPELINE EVOLUTION: +26% INCREASE BY 2018-2019 2018-2019: Selected future committed projects +26%, in value >5 projects Milan, The Sign B / C >110,300 m² New c.17,000 m², ~ € 70 M Commitments Launched in Q1 2018 #6 projects € 400 M #6 projects € 275 M 89,400 m² 92,100 m² Milan, Corso Italia € 325 M € 317 M c.11,000 m² 100% Milan #2 projects 61,294 m² Milan, Symbiosis c. 15,000 m² € 143 M Deliveries € 190 M Milan, Via Dante c. 4,700 m² - End- 2014 End-2015 End-2016 End-2017 2018-2019 Main lettings Headquarters 19,000 m², Headquarters 8,300 m², Headquarters 9,500 m² (Q1 2018), Symbiosis, Milan Via Cernaia, Milan The Sign, Milan A major partner of the development and regeneration of new tertiary areas in Milan FONCIÈRE DES RÉGIONS 11
Contemplated transaction & estimated impacts
CONTEMPLATED TRANSACTION & ESTIMATED IMPACTS Foncière des Régions proposed exchange ratio: 8.5 FDR shares for 1,000 Beni Stabili shares (post > Beni Stabili Merger 2017 dividend distribution) Shareholding Structure Terms FDR intends to acquire additional BS shares in the market, to reach up to 60% in Beni Stabili capital Free float FDR 38.5% 52.4% Dual Listing Foncière des Régions planning a dual listing in Paris and Milan Paris / Milan Delfin Unanimous support from Foncière des Régions Board of Directors 3.4% Shareholders Crédit Agricole Assurances Support Transaction conditional on Foncière des Régions and Beni Stabili 2/3 approval at respective 5.7% Extraordinary General Meeting 1 Accretive Financial Impacts and Further Enhanced Capital Markets Profile Slightly Accretive Strengthened Maintained > Preliminary identified synergies: ~ € 5 M Capital Markets Profile Healthy Financial Profile > EPRA Earnings per share: ~+1% + ~ € 700 M Market Cap 2 > NAV per share: ~+1% Note: Share prices as of 19 April 2018 (FDR: € 88.30, BS: € 0.730) 1 In case the Merger is accepted by the EGMs of both companies, Beni Stabili shareholders who did not contribute to the resolution are entitled to a cash withdrawal right in accordance with applicable law FONCIÈRE DES RÉGIONS 2 Assuming (i) the acquisition of additional Beni Stabili shares in the market by FDR, to reach 60% in Beni Stabili prior to completion of the merger and (ii) 100% straight merger 13
AN ENHANCED CAPITAL MARKET VISIBILITY: INCREASED SCALE AND ENLARGED FREE FLOAT An enlarged free float, Increased market capitalization Proforma shareholding structure 1 increasing liquidity € 3.7 bn € 7.3 bn Post merger 1 Post merger 1 (50.6%) Delfin 26.6% + € 0.5 bn + € 0.7 bn (+ ~17%) Free Float Covéa 7.1% 50.6% € 6.6 bn April 2018 € 3.2 bn April 2018 (47.8%) Crédit Agricole Assurances 8.1% ACM 7.6% € 5.7 bn € 2.5 bn End 2016 End 2016 (43.8%) Note: Share prices as of 19 April 2018 (FDR: € 88.30, BS: € 0.730) 1 Assuming (i) the acquisition of additional Beni Stabili shares in the market by FDR, to reach 60% in Beni Stabili prior FONCIÈRE DES RÉGIONS 14 to completion of the merger and (ii) 100% straight merger
AN ENHANCED EUROPEAN PORTFOLIO, FOCUSING ON CAPITAL CITIES Beni Stabili Foncière des Régions Foncière des Régions post-merger 2 Dec-2017 Dec-2017 GAV € 3.5 bn 1 € 12.8 bn ~ € 15 bn Group Share Rest of Europe Others Rest of Europe 5% 9% 7% Milan Northern Italy 64% 15% Germany France Germany 28% 53% 26% France 45% 100% Italy Rome 5% Turin 7% Italy Italy 14% 22% Direct impact of the contemplated Transaction - + € 1.7 bn, mainly in Milan (Group Share) 1 End 2017, pro-forma of 9% SICAF Telecom Italia disposal FONCIÈRE DES RÉGIONS 2 As of mid-2018, including secured transactions in H1 2018 15
An attractive value proposition for Beni Stabili shareholders
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