EDMOND DE ROTHSCHILD REAL ESTATE SICAV CAPITAL INCREASE 20 - - PowerPoint PPT Presentation
EDMOND DE ROTHSCHILD REAL ESTATE SICAV CAPITAL INCREASE 20 SEPTEMBER 2019 www.edr-realestatesicav.ch EDMOND DE ROTHSCHILD, LAUDACE DE BTIR LAVENIR. REMINDER ON 2018/2019 RESULTS STRATEGIC FOCUS 2019/2023 CAPITAL
EDMOND DE ROTHSCHILD, L’AUDACE DE BÂTIR L’AVENIR.
www.edr-realestatesicav.ch
EDMOND DE ROTHSCHILD, L’AUDACE DE BÂTIR L’AVENIR. 2
REMINDER ON 2018/2019 RESULTS
STRATEGIC FOCUS 2019/2023
CAPITAL INCREASE
March 2018 March 2019
NAV : 878 Mio CHF 894 Mio CHF Real Estate GAV : 1’243 Mio CHF 1’211 Mio CHF NAV / share: 114.97 117.08 Share Premium : 18.99% 18.64% LTV Ratio : 28.47% 29.18% EBIT margin: 73.44% 71.74% Rental loss rate: 3.03% 3.14% TER(GAV): 0.70% 0.70% Investment yield (TR) 4.96% 4.94%
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CHF 58 mio rental income 2’085 apartments
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INITIAL CONSIDERATIONS
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MAINTAIN DIVIDEND DISTRIBUTION GROWTH
HIGH DEBT RATIO OF 31% RISK / RETURN PROFILE OF BUILDINGS
REDUCTION OF FUND COSTS (TER & TAXES)
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Type 1 : Quality assets in urban areas at market price (residential or mixed)
Type 2 : Assets to be redeveloped or repositioned with a minimum risk premium of 20 bps
Type 3 : Commercial assets with net yields higher than the average of the portfolio
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Only located in agglomerations as descibed by « Bundesamt für Statistik »
Reasonable and sustainable rent levels
ESG Criteria : (1) Energy label or (2) identified program of improvements
Target size : 5 to 100 MCHF in order to ensure future liquidity
Residential + Mixed > 66%
Focus Romandie > 75%
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Planned and selective divestment program in order to cristallise value and provide an additional stream of revenue.
Criteria :
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Reduction of the debt ratio between 25% et 28% in order to have a margin of safety against regulatory constraints. Potential variations of +/- 2% depending construction projects or capital increases.
Take advantage of the improved tax treatment in several cantons
Pursue TER reduction
Real estate portfolio of 2’000 MCHF within 5 years.
Capital increases subject to market conditions and secured deal flow based on acquisition criteria
Rental income distribution : Target at 3,4 CHF/share as per March 2019.
Potential fluctuation : +/- 0,05 CHF related to actual LTV and buildings under construction
Capital gain distribution : Target of 0,2 CHF/share in relation to sales realized in the previous year
Total annual distribution over the period 2019-2023 : 3,5 to 3,6 CHF/share
EDMOND DE ROTHSCHILD
BUILDINGS UNDER CONSTRUCTION AND RENOVATION
SIGNED ACQUISITIONS
DEBT REDUCTION
DIVIDEND PERSPECTIVES
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LES VERGERS – MEYRIN – GE
Ongoing construction of 4 buildings with rental apartments under state controlled regime (ZD-loc), storage and indoor parking spaces.
Start of work in June 2018 Delivery Q3 2020 Minergie building Total cost after completion 63.8 MCHF Tenancy schedule 2.9 MCHF Gross yield 4.54% Net yield : 3,7%
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SOMMERHALDSTRASSE – BRUGG (AG) Renovation
2 residential buildings with 102 apartements
Initial building cost: 30.3 MCHF Renovation cost: 12.8 MCHF Complete renovation
the building and 102 apartments on the occupied site Works already completed on the 1st building Rent increases in the process of being implemented Net yield targeted above 4 %
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BLAUACKER – KONIZ (BE) Construction of a residential building with retail ground floor
29 apartments and 1’693 m2 of commercial area Delivery Q1 2021 Minergie building Acquisition price 18.6 MCHF Tenancy schedule 1.1 MCHF Net yield 3.89%
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VERNIER (GE)
Acquisition of a building with 104 apartments under construction in a new area of Geneva Well located and close to public transport Minergie building Delivery Q4 2021 Acquisition price 58 MCHF Rental income 2.2 MCHF Rents controlled by Canton Geneva Net yield 3.20 %
Additional tranche for 113 apartments under exclusivity.
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PÂLA – BULLE (FR) Acquisition of a new residential building with 55 apartments
Delivery Q1 2020 High Energy efficiency (HPE) Acquisition price 20.5 MCHF Rental income 969 KCHF Rental guarantee for 2 years Net yield 4.03%
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LEON-GAUD 7 – GENEVE (GE)
Prime mixed building very well located in the center of Geneva 12 large apartments and 416 m2 of commercial area Share deal of 14.6 MCHF Transfer of ownership 1st October 2019 Rental income 568 KCHF Rental reserve to be deployed (38% according to WP) Current net yield 3.07%
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ARCANGIER 10/12 – LA TOUR-DE-PEILZ (VD)
Residential building with 26 apartments Transfer of ownership 1st october 2019 Acquisition price 10 MCHF Rental income 427 KCHF Rental reserve to be deployed (25% according to WP) Net yield 3.32%
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GIULIO VICARI 30 – LUGANO (TI)
Residential building with 19 apartments Transfer of ownership 1st october 2019 Acquisition price 5.8 MCHF Rental income 269 KCHF Net yield 3.78%
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Historical cost : 12.65 MCHF Valuation 31.03.19 : 12.1 MCHF Selling price: 13.25 MCHF Capital gain on current valuation: 0.835 MCHF Rental income SOLL: 675 KCHF Rental income IST: 600KCHF Vacancy rate : 11% (almost all-time-low since acquisition) Gross yield on IST : 4.5% Net yield on IST : 3.3%
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Buildings Canton Use Price (MCHF) Gross yield Net yield KONIZ BE MIXED 18.6 4.54% 3.89% VERNIER GE RESIDENTIAL 58 3.76% 3.20% PÂLA FR RESIDENTIAL 20.5 4.57% 4.03% LEON-GAUD GE MIXED 14.6 3.89% 3.07% ARCANGIER VD RESIDENTIAL 10 4.12% 3.32% GIULIO VICARO TI RESIDENTIAL 5.8 4.55% 3.78% UZNACH SG MIXED
TOTAL 114.2 4.05% 3.47% 89% 11%
Residential Commercial
51% 16% 8% 20% 5%
GE FR VD BE TI
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End February 2020
LTV impact 31.03.19 20.09.2019 31.03.2020 31.03.2021 31.03.2022 GAV 1’211 MCHF 1’305 MCHF 1’365 MCHF 1’386 MCHF 1’479 MCHF Debt 353 MCHF 391 MCHF 337 MCHF 366 MCHF 422 MCHF LTV 29 % 31 % 24,5 % 26,5 % 28,5 % EDMOND DE ROTHSCHILD
End September 2019
61'580'000 47'500'000 40'115'000 39'810'000 43'000'000 34'860'000 34'300'000 39'500'000 30'975'000 8'900'000
2020 2021 2022 2023 2024 2025 2026 2027 2028 > 2028
Debt distribution (Sept 2019) Short term repayment
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Amount CHF 179 millions Issue price 117.08 CHF/share Official confirmation of the issue 22 August 2019 Presentation of the capital increase to investors From 22 August to 30 August 2019 Subscription period 2 September – 13 September 2019 Subscription rights Listed on SIX Subscription rights listing period 2 September – 11 September 2019 Issue of new shares 20 September 2019
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Edmond de Rothschild Real Estate SICAV (the "SICAV"), Geneva is an externally managed société d’investissement à capital variable incorporated in Switzerland in the "real estate" category, as defined in the Swiss Collective Investment Schemes Act (CISA). The SICAV has delegated administration, management and distribution to its Fund Management Company, CACEIS (Switzerland) SA, Nyon, which has in turn delegated the SICAV's investment management and the exclusive distribution of its shares to OROX Asset Management, in Geneva, which also has sub-distribution
particular to Edmond de Rothschild Switzerland SA and Edmond de Rothschild Asset Management (Suisse) SA. Banque Cantonale Vaudoise, Lausanne is the SICAV's
including the investment regulations and articles of association, together with the simplified prospectus and the latest annual report (or semi-annual report if it is more recent). These documents may be obtained free of charge from the headquarters of the SICAV, Edmond de Rothschild (Suisse) SA, rue de Hesse 18, 1204 Geneva, from CACEIS (Switzerland) SA, Route de Signy 35, 1260 Nyon and from any sub- distributors. This document is provided for informational purposes only and does not constitute investment advice or a recommendation to make or liquidate an investment or to effect any other type of transaction in relation to the SICAV. Nor does it constitute a public tender or an offer or solicitation to subscribe shares in the SICAV. The SICAV, CACEIS (Switzerland) SA, OROX Asset Management SA, Edmond de Rothschild (Suisse) SA and Edmond de Rothschild Asset Management (Suisse) SA do not warrant the accuracy or exhaustiveness of this document, and disclaim all liability for losses that could arise from using the information herein. This document reflects the
financial adviser to ascertain whether an investment in the SICAV is appropriate in view of each investor's circumstances, taking account of his investment objectives, risk profile and personal, financial, regulatory and tax situation. All investments entail risks, particularly the risk of fluctuations in values and returns. Historical performances and financial market scenarios are no guarantee of present or future
charges levied upon the issue and redemption of the SICAV's shares. Any reproduction of this document, in whole or in part, is prohibited without the SICAV's prior consent in writing. The main investment objective of each subfund shall be to preserve the substance of capital invested long term and to distribute appropriate income. To the extent possible the SICAV's Board of Directors and Investment Manager shall strive to pursue the specific investment strategy drawn up for each subfund as set out in the SICAV's Term Sheets relating to the investment regulations. The implementation of said strategies may nevertheless be subject to constraints and to regulatory and legal procedures such as the Swiss rules on purchasing property for residential purposes. No assurance can be given by the SICAV, the Board of Directors, the Fund Management Company or the Investment Manager that residential property contemplated for purchase by the SICAV will be confirmed by the relevant federal and/or cantonal authorities as not being subject to said constraints and procedures. This document is not intended for persons subject to legislation prohibiting their access to such information by virtue of their nationality, status or domicile. In particular, the SICAV has not filed and will not file an application with the US Securities and Exchange Commission for authorisation to offer or sell its shares to the public under the Securities Act of 1933. The SICAV is not and will not be registered under the Investment Company Act of 1940 as amended. This document may not be distributed, and shares in the SICAV may not be offered, in the United States of America or in any territory, possession or region that is subject to its jurisdiction.
EDMOND DE ROTHSCHILD, BOLD BUILDERS OF THE FUTURE. www.edmond-de-rothschild.com