FY 201 8 RESULTS TRANSFORMATION & & PERFORMANCE 21 - - PowerPoint PPT Presentation
FY 201 8 RESULTS TRANSFORMATION & & PERFORMANCE 21 FEBRUARY 201 9 CONTENTS I. 04 II. 201 8 ACTIVITY 1 0 II- A. Reinforcement on European capital cities 1 0 II- B. Acceleration of the development pipeline 1 4 II- C.
21 FEBRUARY 201 9
FY 2018 RESULTS
2
CONTENTS
I.
04
8 ACTIVITY
1 II- A. Reinforcement on European capital cities 1 II- B. Acceleration of the development pipeline 1 4 II- C. Innovation to follow wishes 26
8 RESULTS
30 III- A. Rental activity 32 III- B. Financial results 41
47
50
FY 2018 RESULTS
3
2018 / GROWTH ON ALL INDICATORS
+4.4% LIKE- FOR- LIKEVALUE +3.4% LIKE- FOR- LIKEREVENUE +4.5% EPRA EARNINGS / SHARE +5.5% EPRA NAV / SHARE
I. STRATEGY
5
MAKING OUR BUSINESS MODEL MORE RELEVANT THAN EVER
A unique business model based on 3 strategic pillars
2 €4.4 bn Group Share
FY 2018 RESULTS
Focus on European capital cities
Development pipeline
Offer core locations in gateways best quality assets
1 €15 bn Group Share
portfolio1
pipeline2 Our clients, at the center
strategy
Client centric
average
for the past 10 years
6
A EUROPEAN INTEGRATED COMPANY
1 Breakdown in Group Share, proforma of the disposal of the French residential portfolio signed early 2019 2 As of Feb. 19th 2019Merger with Beni Stabili in December 201 8: a major step towards simplification1
German Residential Offices
Ownership: 61 .7%
INCREASING MARKET CAP & FREE FLOAT
Market Capitalization
free float
increase in the free float in 2 years
FY 2018 RESULTS
strategic Hotels Europe
Ownership: 42.3% (General partner)
%
7
AN ETHICAL AND EFFECTIVE GOVERNANCE
26% 8% 8% 7% 51 %
Covéa
(Since 2003)
ACM
(Since 2003)
Crédit Agricole Assurances
(Since 2005)
Delfin
(Since 2007)
Free float
60%
independent
40%
women
Separate Chairman and CEO
1
1 To be approved by the 2019 EGMChristian Delaire
Senior advisor
Former CEO of Generali Real Estate & AEW Europe
FY 2018 RESULTS
Renewal of the independent Chairman
Jean Laurent
Chairman of the Board since 201 1
Long- term supportive shareholders for more than 1 0 years Experience, Independence & Diversity Two new independent members
Olivier Piani
Senior advisor & Chairman of Investment Committee at Ardian Former CEO of Allianz Real Estate & GE Capital Real Estate Europe
1 5
members
8
A PROACTIVE & VOLUNTARY ENVIRONMENTAL STRATEGY
1 Trajectory compatible with the 2°C scenario approved by the Science Based Target initiative 2 Weighted average of France and Italy Offices and HotelsRespecting the
scenario
set forth in the international Paris Agreement
5
FY 2018 RESULTS
average carbon weight per m² (construction + refurbishment + operation)
Ambitious carbon reduction target between 201 0- 2030 1
% Green assets 2
FAVOUR PUBLIC TRANSPORTS
located <500 m of public transport (98% <1 km)
64 64% 72 72%
201 7 201 8
EXPLOIT GREEN ASSETS
see appendix p.53- 54 for more details
9
REWARDED BY THE BEST AGENCIES
Green Star (86/ 1 00) Climate A List Top 5% Score 78/ 1 00 201 8 Corporate Governance Grand Prix
AN ESG STRATEGY REWARDED IN EACH CRITERIA COVIVIO, IN THE MAIN ESG INDEXES
FY 2018 RESULTS
Euronext CDP Environment France AA rating
cities
pipeline C
STRENGTHENING OUR STRATEGIC PILLARS
1 1
2018 / REINFORCEMENT IN EUROPEAN CAPITAL CITIES
FY 2018 RESULTS
Invest in office developments in Paris & Milan
339 339 million 6.2 6.2% yield1
Reinforcement in Berlin
428 428 million 2,1 35 2,1 35/ m² on acquisitions 4.6 4.6% yield2
Enter the UK market at attractive conditions
404 404 million 5.1 5.1
% minimum yield
6.0% target yield
acquisitions
Capex
5.0% yield
see appendix p.67- 71 for more details Group share data
OFFICES HOTELS RESIDENTIAL
6.1
%yield
And 263 million of equivalent assets from acquisition of Beni Stabili shares before the merger
1 Excluding Jean Goujon in Paris
2 Potential yield in 2 years letting of vacant spaces (3.9% immediate yield) 1 2
ACTIVE 2018 PORTFOLIO ROTATION TO FINANCE INVESTMENTS
FY 2018 RESULTS
Group share data
disposals realized
Additional disposals secured
4.3%average margin 4.9%exit yield
2.4%average margin 3.2%exit yield Exit from non- strategic activities
502 502 million 3.2 3.2% exit yield
Acceleration of mature asset disposals
206 206 million 3.7 3.7% exit yield
Pursue qualitative asset rotation selling non- core assets
526 526 million 6.1 6.1
% exit yield
=> Full exit from French Residential ( 283 m)
see appendix p.73- 76 for more details
1 3
DYNAMIC FOCUS ON HIGH QUALITY LOCATIONS
FY 2018 RESULTS
1 Cities with more than 2 million overnight stays per year 2 Including the disposal agreement of 59 B&B hotels in France signed early 2019FRANCE OFFICES
% GREATER PARIS
GROUP SHARE
83 83%
78%
201 5 201 8
ITALY OFFICES
% MILAN
73 73%
49%
GERMAN RESIDENTIAL
% BERLIN
59 59%
40%
HOTELS IN EUROPE
% MAJOR EUROPEAN CITIES1
85 85%
2
58%
see appendix p.85, 88, 90, 91 for more details
cities
pipeline
STRENGTHENING OUR STRATEGIC PILLARS
1 5
SUCCESSFUL DELIVERIES IN 2018 STRENGTHENING OUR TRACK RECORD
3 offices (35,000 m²) and 4 hotels (653 rooms) Strong track record:
since 201 0, 95%
Symbiosis A&B Milan 20,500 m² Riverside Toulouse 1 1 ,000 m² Motel One - Paris 255 rooms
FY 2018 RESULTS
Occupancy at end- 201 8 97% Value creation >25% Yield on cost 6.9%
see appendix p.60 for more details
1 6
DEVELOPMENT PIPELINE WELL ON TRACK TO FUEL OUR GROWTH
56%
pre re- let
FY 2018 RESULTS
see appendix p.56- 58 for more details
~30 % value creation 6.1 6.1
% yield on cost
62%
pre- let
0.5 bn
Group share
0.9 billion at 1 00 %
~+ 800 M
to come in 201 9
~+ ~+ 1 .1 billion at 1 00 %
1.3 bn
Group share
1 .6 billion at 1 00 %
total pipeline
4.4 bn Group share
End 201 7 End 201 8
COMMITTED PIPELINE
X2.5
1 7
COMMITTED PIPELINE AT END- 2018 / HIGH- QUALITY PROJECTS IN PARIS, BERLIN & MILAN
FY 2018 RESULTS
31 PROJECTS COMMITTED AT END- 2018
280,000 M² OF OFFICES => 1 52,000 M² ALREADY PRE- LET 790 ROOMS 454 RESIDENTIAL UNITS ALL IN MAJOR EUROPEAN CITIES WITH ~80% IN PARIS, BERLIN & MILAN ALL LOCATED WITHIN 1 0 MIN FROM PUBLIC TRANSPORT ALL GREEN PROJECTS WITH A HIGH- LEVEL CERTIFICATION/ LABEL1
HIGH- QUALITY PROJECTS IN STRATEGIC LOCATIONS
1 Levels targeted: HQE Excellent, BREEAM very good, LEED Gold
see appendix p.56- 58 for more details
FY 2018 RESULTS
1 8
FLOW / A SUCCESSFUL OPERATION ACROSS THE ENTIRE REAL ESTATE VALUE CHAIN
FLOW MONTROUGE
8,000 m² for a high- quality urban campus including a 30% extension of the surface area (+5,600 m²)
100%
Full pre- letting 1 8 months ahead of delivery to a large corporate
>40% value creation target 2015
ACQUISITION BUILDING PERMIT
2017 2018
CONSTRUCTION & PRE- LETTING
115 million total cost
Future line 15
Paris
1 9
IRO & FLOW / TWO SMART & ATTRACTIVE DEVELOPMENTS (1/ 2)
IRO
MALAKOFF- MONTROUGE- CHATILLON BUSINESS DISTRICT
FLOW
8 min 8 min Chatillon- Montrouge hub
New space available until 2020
Only 35,000 m²
Office Stock
~1 million m²
Take- up 2018
115,000 m²
Source: CBRE FY 2018 RESULTS
20
IRO & FLOW / TWO SMART & ATTRACTIVE DEVELOPMENTS (2/ 2)
Flow
23,600 m²
1 1 5 million total cost 6.6% yield
1 00% pre- let
IRO
25,600 m²
1 39 million total cost 6.3% yield
Facing limited competition
FY 2018 RESULTS
254 MILLION IN HIGH- QUALITY PROJECTS TO BE DELIVERED IN 2020
21
SILEX 2 / MAJOR PRE- LETTING 2 YEARS BEFORE DELIVERY (1/ 2)
FY 2018 RESULTS
Infrastructure under renovation or construction (train station, residential, shopping mall) Office deliveries 2022 & later
Tramway 30 min to airport
Office deliveries 2021 Silex 2
Metro & Tramway
Lyon Part- Dieu business district
New space available until 2021
Only 20,000 m²
Office Stock
>1 million m²
Source: JLL
Silex 2
1 66 MILLION TOTAL COST1 6.0% YIELD
>50% VALUE CREATION TARGET
22
SILEX 2 / MAJOR PRE- LETTING 2 YEARS BEFORE DELIVERY (2/ 2)
FY 2018 RESULTS
8,800 m² to
1 Shared at 50% with ACM5,000 m² dedicated to flex- offices with
30,900 M² 44% PRE- LET
23
BERLIN RESIDENTIAL / ACCELERATION OF THE DEVELOPMENT PIPELINE
1 €430 million Group share; 2 €72 million Group share111 MILLION COMMITTED2 AT END- 2018 GROWING PIPELINE OF 700 MILLION1
62 POTENTIAL PROJECTS IDENTIFIED ON 21 5,000 M² MOSTLY IN BERLIN
AND MORE THAN 100 MILLION TO BE COMMITTED IN 2019
454 units delivered by 2021
3,650 / m²
>40% margin
to be sold
4.8% yield on cost
FY 2018 RESULTS
24
DEVELOPMENTS / MORE TO BE COMMITTED IN 2019
Paris St- Ouen
31 ,000 m² of offices Redevelopment- extension (+70% in surface area)
4 scheduled for 2020
Alexanderplatz
60,000 m² mixed- use New construction Offices/ Residential/ Retail in the very center of Berlin
FY 2018 RESULTS
~ 1.1 BILLION IN PROJECTS TO BE LAUNCHED IN 2019 INCLUDING
see appendix p.87 for more details
+ 18 m + 42 m + 34 m + 15 m
2020 2021 2022 2023 25
DEVELOPMENT PIPELINE / A KEY DRIVER FOR EARNINGS GROWTH
Major impact in 2021
Additional rents in the year after delivery
2023 & & beyond
FY 2018 RESULTS
From committed pipeline at end- 201 8 From projects to be be committed in 201 9 Already secured through pre- lettings xx% xx% 66% 66% 60% 60%
= +1 5%
8
~ + 11 0 MILLION GROUP SHARE
additional rent vs end- 201 8
cities
pipeline C
STRENGTHENING OUR STRATEGIC PILLARS
FY 2018 RESULTS
27
HOTELS / BE THE BEST PARTNER FOR HOTEL OPERATORS
FOLLOW
their development across Europe DEVELOPING new hotels SUPPORTING implantation in new cities RENOVATING outdated assets
Rebranding in our UK portfolio One development in Malaga Three deliveries in 201 9 in Paris, Lyon & Munich
ACOMPANY
their innovations
FY 2018 RESULTS
28
GERMAN RESIDENTIAL / BE THE BEST LANDLORD TO OUR TENANTS
Tenant relation: very good Intermediation: very good Services: very good Fair rent: very good Quality: very good Environmental responsibility: good
1 Link to the surveyTARGETING
THE MOST DYNAMIC DISTRICTS
(KREUZBERG, MITTE, ETC.)
1 00
ROOMS IN BERLIN
major German residential companies in the Focus Money survey 201 91
ACCOMPANY
tenants with the best service quality
INNOVATE WITH THEM
through a new COLIVING solution
FY 2018 RESULTS
29
OFFICES / BE THE BEST OPERATOR FOR OUR END- USERS
AND 4
4 PROJECTS ONGOING
IN PARIS, LYON, MILAN, BORDEAUX FOR 1 6,500 M²
70 % large corporates >12 month average
contract length PARIS CBD
March 201 8 / 3,300 m² 90%
PARIS GARE DE LYON
8 / 5,1 00 m² 60%
PARIS MONTMARTRE
8 / 1 ,400 m² 40%
revenue secured by Orange
FOLLOW THEIR WHISHES
through a new FLEX- OFFICES solution
3 3 OPENINGS IN 201
8 IN PARIS
31
2018 RESULTS REWARDING THE STRATEGY
FY 2018 RESULTS
GROWING OPERATING PERFORMANCES
LIKE- FOR- LIKE RENTAL GROWTH
+3.4%
LIKE- FOR- LIKEVALUE GROWTH
+4.4%
OCCUPANCY RATE
98.1%
LTV
42.0%
COST
1.5%
MATURITY
6.0 YEARS
HEALTHY DEBT PROFILE
EPRA EARNINGS PER SHARE
+4.5%
EPRA NAV PER SHARE
+5.5%
RESULTS ABOVE GUIDANCE
FY 2018 RESULTS
33
PARIS OFFICE MARKET / QUALITY OFFICES ON DEMAND
Greater Paris
Rents on quality space keep on increasing
Sources: CBRE, C&W
€270 /m² €280 /m² €290 /m² €300 /m² 200,000 m² 400,000 m² 600,000 m² 800,000 m² 1,000,000 m²
Average economic rent
+7% in 2018 Take- up on new/ refurbished space Immediate offer on new/ refurbished space +8% per year
per year
Demand exceeds the offer
2014 2015 2016 2017 2018 see appendix p.86 for more details
34
MILAN OFFICE MARKET / NEW SPACE DRIVING THE MARKET
Milan
Prime rents keep on increasing
Sources: CBRE, C&W
100,000 m² 200,000 m² 300,000 m² 400,000 m² €480 /m² €500 /m² €520 /m² €540 /m² €560 /m² €580 /m²
Prime rents
Demand exceeds the offer
Take- up on new/ refurbished space Immediate offer on new/ refurbished space +16% per year
per year +7% in 2018
2014 2015 2016 2017 2018
FY 2018 RESULTS
see appendix p.89 for more details
35
OFFICES PORTFOLIO ACTIVITY/ BENEFIT FROM THE MARKET DYNAMIC
FY 2018 RESULTS
91,000 m²
let or pre- let on the development pipeline
23.8 million rents 9 years firm maturity
Through our development pipeline
120,000 m²
renegotiations
33 million rents
+5.6% increase Through our letting activity
Riverside Toulouse: 1 0,300 m² let Milan Piazza S. Fedele: 3,400 m² renewed Orange: 42,000 m² renewed The Sign Milan: 9,500 m² pre- let
FY 2018 RESULTS
36
GERMAN RESIDENTIAL MARKET / FUNDAMENTALS ARE INTACT
Increasing asking rents1
+5% in 201 8 to 1 1 .7/ m²
Increasing asking price for flats1
+1 4% in 201 8 to 4,400/ m²
Insufficient supply
1 1 ,1 00 units per year delivered on average over 5 years
1 Latest available data at end-June 2018 for asking rents and end-September 2018 for asking pricesSources: Senatsverwaltung für Stadtentwicklung; IVD Berlin-Brandeburg
vs demand forecast for 20,000 units per year until 2030
37
GERMAN RESIDENTIAL PORTFOLIO ACTIVITY
FY 2018 RESULTS
HIGHLY PROFITABLE PROFILE
44 % Indexation 28 % Reletting 6 % Modernization 22 % Reletting with modernization
+35% +20% Reversionary potential end- 201 8 +1 5- 20%
Berlin Dresden, Leipzig & Hamburg NRW
+4.9% +3.2% Like- for- like rental growth 201 8 +4.6%
Total +4.4%
+25%
1 2% return on investment
Capex & & Opex 201 7 Like- for- like 201 8 +3.5 / m² 30/ m²
see appendix p.83 for more details
2000 201 2020 2030
FY 2018 RESULTS
38
HOTEL MARKET / SUPPORTIVE LONG- TERM TREND
INCREASED REVENUE IN EUROPE: +4.6% REVPAR GROWTH IN 2018
Sources: MKG, STR, PwC, UNWTO, Paris Region
UNWTO forecast (201 0)
THE TRAVEL & TOURISM INDUSTRY IS EXPERIENCING
Actual arrivals
2018: 71 3 m (+6%) International tourists arrivals in Europe well ahead of expectations
385 m 475 m see appendix p.92 for more details
Forecast 201 9: +3- 4%
New record in Greater Paris: 35 M hotels arrivals in 2018
Balanced revenue profile
STRONG RENTAL GROWTH
FY 2018 RESULTS
39
HOTEL PORTFOLIO ACTIVITY
Renovation program in the Canary islands
SUCCESSFUL ASSET MANAGEMENT
like- for- like revenue growth +6.5%
in France & Belgium +5.6%
from management contracts
+30% increase on fixed rent over two years Rebranding in Madrid +53% increase on fixed rent
Hotel Corralejo Bay Madrid Paseo Del Arte
46% variable revenue 54% fixed rent
+0.2% +2.0% +3.4%
FY 2018 RESULTS
40
PURSUIT OF THE ACCELERATION OF RENTAL GROWTH
201 7 201 6 Offices German Residential Offices France Occupancy:
1 4% 1 4%
Renewals:
33% 33%
Indexation & variable revenue:
53%
German Residential Hotels 201 8
2018 million Revenue 100% Revenue Group Share Change like- for- like Change Occupancy rate (%) Firm lease maturity (in years) Offices - France 271 242
.8% +2.8% 97.1 % 4.6 years Offices - Italy 1 90 85
% +1 .3% 97.9% 7.7 years Residential Germany 241 1 54 +6.7% +4.4% 98.7% n.a. Hotels Lease properties 208 77 +0.8% +4.2% 1 00% 1 3.8 years Hotels Operating properties (EBITDA) 75 31 +1 35.5% +5.6% n.a. n.a. Total strategic activities 985 590 +3.7% +3.4% 98.1% 7.1years Non- strategic (Residential France, Retail France & Italy) 45 26
.9%
93.5% n.a. Total 1,030 616
Like- for- like change in revenues see appendix p.63 for more details
PORTFOLIO / STRATEGIC CHOICES LEAD TO STRONG VALUE GROWTH
FY 2018 RESULTS
+2.2%
PARIS +2.8%
42
FRANCE OFFICES
RENTAL YIELD
2018 LIKE- FOR- LIKE VALUE
PORTFOLIO 100%
PORTFOLIO GROUP SHARE
Like- for- like value growth
+0.2%
ITALY OFFICES
MAJOR REGIONAL CITIES +3.5% MILAN +1 .8%
+11 .6%
GERMAN RESIDENTIAL
HAMBURG +1 3.1 %
+3.0%
HOTELS IN EUROPE
PARIS +2.9% BERLIN +1 2.4% DRESDEN & LEIPZIG +1 3.2% NRW +9.2% BERLIN +3.4% MADRID +9.4% WESTERN CRESCENT & LA DEFENSE +1 .8% REST OF ITALY - 3.7%
FY 2018 RESULTS
43
DISCIPLINED FINANCING POLICY SUITED TO DIVERSIFIED & HIGH- QUALITY PORTFOLIO
42% LTV
+1 .6 pt due to merger with Beni Stabili
1.53% cost
5.1x ICR
Within 40%
LTV policy 85% hedge over 5 years
295 371 699 699 474 755 1 ,230 1 ,449 1 ,326 1 ,625
201 9 2020 2021 2022 2023 2024 2025 2026 >2026
Debt maturities (in million, Group share)
6- YEAR DEBT MATURITY
35% 1 7% 44% 4% Investor mortgages Bonds Corporate credits Bank mortgages
52% unsecured
WELL DIVERSIFIED DEBT
S&P rating: BBB, positive outlook 12.2x AVERAGE NET DEBT/ EBITDA
FY 2018 RESULTS
44
+ 1.2 BILLION GROWTH IN EPRA NAV IN 2018
8,293 million 99.7/ share
+16.6%
EPRA NAV 2018 EPRA NNNAV 2018
+5.5% +6.2%
7,624 million 91.7/ share
+1 7.4%
DIVIDEND EPRA EARNINGS INCREASE IN PROPERTY VALUE MERGER WITH BENI STABILI 403 M 726 M 381 M 337 M
see appendix p.65 for more details
FY 2018 RESULTS
45
EPRA EARNINGS 2018 / +6.4% IN MILLION AND +4.5% IN / SHARE
358.2 m 4.86/ share
Acquisitions + 1 4.2 m Disposals 2017
5.5 m Like- for- like rents + 20.2 m Development fees
Decrease in cost of debt + 21 .0 m Other + 0.9 m
EPRA EARNINGS 2017 EPRA EARNINGS 201 8 381 .3 m | +6.4% 5.08/ share | +4.5%
Disposals 2018
2.6 m Wellio ramp- up phase
m ( - 1m consolidated P&L impact) Deliveries + 4.7 m
see appendix p.64 for more details
FY 2018 RESULTS
46
A LONG- STANDING AND GROWING DIVIDEND POLICY
1 To be approved by the 17 April 2019 EGM; Price = 90%x(average share price of the 20 days before EGM – dividend) 2 Based on a stock market price of €88.85 as of 19 February4.4
Dividend 2018: 4.60 per share1 +2.2% vs 201 7 Dividend yield: 5.2%2
4.5 4.3
201 5 201 6 201 7
4.6
201 8
Payment option in shares1
49%
Delfin, Predica, Covea, ACM
1 90- 380 million capital increase
to keep investing in the development pipeline while maintaining a disciplined financial policy
Dividend Pay- out ratio 93.7% 90.5% 92.6% 90.6%
New LTV guidance: <40%
vs 40%
FY 2018 RESULTS
48
GUIDANCE 2019 / CONTINUED GROWTH MOMENTUM
2019 EPRA EARNINGS PER SHARE > +3%
(including scrip dividend)
Investments: priority on development pipeline Disposals: more mature assets LTV: new guidance
~2.5% 0.8 - 1.0 Bn 1.0 - 1.3 Bn <40%
vs 40-45%
Like- for- like rental growth: continued dynamic
KEY UPCOMING EVENTS
17 April 201 9 Q1 ACTIVITY: 24 April 201 9 H1 RESULTS: 23 July 201 9
49
FY 2018 RESULTS
APPENDIX CONTENTS
FY 2018 RESULTS
51
1 .
8 KEY PERFORMANCE INDICATORS
8 ACQUISITIONS
8 DISPOSALS
APPENDIX
52
FY 2018 RESULTS
A PROACTIVE & VOLUNTARY ESG STRATEGY
53
Sustainable buildings Human capital Stakeholders Governance
4 pillars
► Greening of assets ► Improve energy performance in all our activities ► Better offices accessibility ► European human capital ► A strong societal commitment ► Career management focused on talent promotion and internal mobility ► Engaged teams ► Promotion of gender equality ► Work with our stakeholders on our ESG strategy ► Identify their need and expectations ► Take into account socio- economic impacts ► Ethical and effective governance
FY 2018 RESULTS
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54
A PROACTIVE & VOLUNTARY ENVIRONMENTAL STRATEGY
1 Trajectory compatible with the 2°C scenario approved by the SBT initiative 2 As of end-2017. Updates for 2018 will be provided in the Reference Document 2018Respecting the 2°C scenario
set forth in the international Paris Agreement of 201 5
FY 2018 RESULTS
EXPLOITING GREEN ASSETS
FRANCE OFFICES 84% 2020 100% ITALY OFFICES 67% 2022 80% HOTELS 2020 66% 52%
REDUCING ENERGY CONSUMPTION
FRANCE OFFICES ITALY OFFICES HOTELS
average carbon w weight per m² (Construction + + refurbishment + operation) Ambitious carbon reduction target between 201 0- 20301
GERMAN RESIDENTIAL
New target
ALREADY REALIZED
5% between 201 5/ 2020
ALREADY REALIZED2
5% between 201 7/ 2025 TARGET
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APPENDIX
55
FY 2018 RESULTS
56
COMMITTED PIPELINE AT END- 2018 / 1.6 BILLION AT 100% (1/ 3)
1 Surface at 100% 2 Including land and financial costs 3 Yield on total rents including car parks, restaurants, etc.FY 2018 RESULTS
Committed projects Surface 1 (m²) Pre- leased (% ) Total budget 2 ( M, 1 00% ) Total budget 2 ( M, Group share) Target yield 3 Progress Capex to be invested ( M, Group share) Total France Offices 21 2,928 m² 63% 1 ,099 847 6.2% 24% 486 Total Italy Offices 68,900 m² 54% 289 289 6.1 % 34% 93 Total German Residential 30,299 m² 0% 1 1 1 72 4.8% 9% 48 Total Hotels in Europe 790 rooms 1 00% 1 08 44 6.4% 87% 6 Total 62% 1,606 1,252 6.1% 25% 633
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57
COMMITTED PIPELINE AT END- 2018 / 1.6 BILLION AT 100% (2/ 3)
FY 2018 RESULTS
Committed projects Location Project Surface 1 (m (m²) Target rent ( / m²/ year) Pre- leased (%) Total budget 2 ( M, 1 00% ) Total budget 2 ( M, Group share) Target yield 3 Progress Capex to be invested ( M, Group share)
France Offices
Ilot Armagnac (35% share) Bordeaux Construction 31 ,700 m² 1 90 61 % 1 02 35 6.5% 97% 1 Cité du numérique Bordeaux Construction 1 9,223 m² 1 36 38% 39 39 >7% 70% 35 Hélios Lille Construction 9,000 m² 1 60 1 00% 22 22 >7% 87% 3 Total deliveries 2019 59,923 m² 61% 163 96 6.9% 84% 39 Belaïa (50% share) Orly Greater Paris Construction 22,600 m² 1 98 50% 65 32 >7% 1 4% 27 Meudon Ducasse Meudon - Greater Paris Construction 5,1 00 m² 260 1 00% 22 22 6.4% 9% 1 8 Silex II (50% share) Lyon Regeneration- extension 30,900 m² 31 2 44% 1 66 83 6.0% 47% 50 Flow Montrouge - Greater Paris Construction 23,581 m² 327 1 00% 1 1 5 1 1 5 6.6% 25% 79 Gobelins Paris Restructuration 4,360 m² 51 1 00% 50 50 4.3% 4% 20 IRO Chatillon Greater Paris Construction 25,600 m² 325 0% 1 39 1 39 6.3% 25% 1 04 Total deliveries 2020 1 1 2,1 41 m² 54% 557 442 6.2% 25% 297 N2 (50% share) Paris Construction 1 5,909 m² 575 0% 1 48 78 4.6% 2% 69 Montpellier Orange Montpellier Construction 1 6,500 m² 1 65 1 00% 49 49 6.7% 7% 44 Jean Goujon Paris Regeneration 8,455 m² 820 1 00% 1 82 1 82 n.a 1 % 38 Total deliveries 2021 40,864 m² 75% 379 309 5.4% 2% 151 Total France Offices 212,928 m² 63% 1,099 847 6.2% 21% 486
Italy Offices
Principe Amedeo Milan Regeneration 7,1 00 m² 490 74% 59 59 5.3% 85% 2 Ferrucci Turin Regeneration 21 ,000 m² 1 30 0% 50 50 5.5% 55% 8 Dante Milan Regeneration 5,1 00 m² 560 1 00% 54 54 4.8% 6% 8 Total deliveries 2019 33,200 m² 60% 163 163 5.2% 50% 1 9 The Sign Milan Construction 26,500 m² 285 35% 1 05 1 05 >7% 1 5% 56 Symbiosis School Milan Construction 9,200 m² 225 99% 21 21 >7% 1 0% 1 8 Total deliveries 2020 35,700 m² 46% 1 26 1 26 >7% 1 4% 74 Total Italy Offices 68,900 m² 54% 289 289 6.1 % 34% 93
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1 Surface at 100% 2 Including land and financial costs 3 Yield on total rents including car parks, restaurants, etc. 58
COMMITTED PIPELINE AT END- 2018 / 1.6 BILLION AT 100% (3/ 3)
FY 2018 RESULTS
Committed projects Location Project Surface 1 (m (m²) Target rent ( / m²/ year) Pre- leased (%) Total budget 2 ( M, 1 00% ) Total budget 2 ( M, Group share) Target yield 3 Progress Capex to be invested ( M, Group share) German Residential Deliveries in 2019 Berlin Construction 5,145 m² n.a n.a 1 6 1 5.0% 38% 6 Deliveries in 2020 and beyond Berlin Construction 25,154 m² n.a n.a 95 62 4.7% 4% 43 Total German Residential 30,299 m² n.a 1 1 1 72 4.8% 9% 48 Hotels in Europe B&B Bagnolet (50% share) Paris Construction 1 08 rooms n.a 1 00% 8 2 6.2% 56% 1 B&B Cergy (50% share) Greater Paris Construction 84 rooms n.a 1 00% 5 1 6.6% 85% Meininger Munich Munich - Germany Construction 1 73 rooms n.a 1 00% 32 1 4 6.4% 98% Meininger Porte de Vincennes Paris Construction 249 rooms n.a 1 00% 45 20 6.2% 88% 2 Meininger Lyon Zimmermann Lyon - France Construction 1 76 rooms n.a 1 00% 1 8 8 6.1 % 75% 2 Total deliveries 2019 790 rooms 100% 108 44 6.4% 87% 6 Total Hotels in Europe 790 rooms 100% 108 44 6.4% 87% 6
Back to page 1 6
1 Surface at 100% 2 Including land and financial costs 3 Yield on total rents including car parks, restaurants, etc. 59
MANAGED PIPELINE AT END- 2018 / 4.4 BILLION AT 100%
1 Surfaces at 100%FY 2018 RESULTS
Projects by estimated total cost at 1 00% Location Project Surface area 1 (m²) Delivery timeframe France Offices Cap 1 8 Paris Construction 50,000 m² >2022 Rueil Lesseps Rueil- Malmaison - Greater Paris Regeneration - Extension 43,000 m² >2022 Paris St- Ouen Paris Regeneration 31 ,000 m² 2021 Omega Levallois - Greater Paris Regeneration - Extension 20,500 m² 2021 Canopée Meudon - Greater Paris Construction 50,000 m² >2022 Anjou Paris Regeneration 1 1 ,000 m² >2022 Opale Meudon - Greater Paris Construction 37,000 m² >2022 Montpellier Pompignane Montpellier Regeneration- Extension 6,000 m² >2022 Philippe Auguste Paris Regeneration 1 3,200 m² >2022 Campus New Vélizy Extension (50% share) Vélizy - Greater Paris Construction 1 4,000 m² >2022 DS Campus Extension 2 (50% share) Vélizy - Greater Paris Construction 1 1 ,000 m² 2022 Total France Offices 286,700 m² Italy Offices Symbiosis building D Milan Construction 20,500 m² 2021 Symbiosis - other buildings Milan Construction 74,500 m² 2020- 2022 Duca d'Aosta Milan Regeneration 2,1 00 m² 201 9 Total Italy Offices 97,100 m² Mixed- use Alexanderplatz - 1st tower Berlin Construction 60,000 m² 2024 Alexanderplatz - 2nd tower Berlin Construction 70,000 m² >2024 Additonal constructibilty (Hotels portfolio) France, UK, Germany Construction 1 00,000 m² >2022 Mixed- Use 230,000 m² German Residential Berlin Extensions & Constructions 183,000 m² >2022 Total 796,800 m² back to page 1 6
60
2018 DELIVERIES
7 deliveries
35,000 m² of offices and 653 hotel rooms Total cost of 21 8 million ( 1 83 million Group Share) 6.9% gross yield Occupancy rate of 97% >25% value creation
2 B&B hotels: Berlin and Chatenay- Malabry 19.6m / TO : 100% / Yield: 6.4% Toulouse, Riverside 28 m / TO : 83% / Yield: 7.8% Milan, Titano 23 m / TO : 100% / Yield: 4.8% Milan, Via Colonna 17 m / TO : 100% / Yield: 5.2% Motel One Porte Dorée 37 m ( 16 m Group Share) TO : 100% / Yield: 5.8%
FY 2018 RESULTS
Milan, Symbiosis A&B 93 m / TO : 100% / Yield: 7.6% back to page 1 5
APPENDIX
61
FY 2018 RESULTS
Group share data
Historically high occupancy rates
2009 95.4% 94.8% 95.8% 201 201 1 201 2 95.5% 201 3 96.0% 201 4
98.1 %
201 5 97.1 % 201 6 96.3% 96.7% 201 7* 98.0% 201 8* 201 8*
Rents: at like- for- like scope Change in like- for- like vs N- 1
+3.3% 201 +0.6% 201 1 201 2 +2.1 % +1 .2% 201 3 2009 +2.2%
+3.4% +3.4%
201 4 201 5 +0.2%
% +0.2% +2.1 % 201 6 201 7*
> Ability to retain the tenant > Occupancy rate track record in the development pipeline > Anticipate disposals > Stable occupancy rate > Positive outlook for rental markets > Dynamic investment market > Asset management and development pipeline value creation
Firm lease expiries as %
Commercial portfolio (75%
Long average lease term
2009 5.8 6.1 6.0 201 201 1 201 2 5.5 201 3 5.8 201 4
7.1 7.1
201 5 5.8 7.3 7.2 6.6 201 6 201 7* 201 8*
62
A STRATEGY SUPPORTED BY SOUND INDICATORS
2017*
Growth in value Change in like- for- like vs N- 1
2009 +5.3% +1 .3% 201 201 1 201 2
201 3
201 4
+4.8%
201 5 +2.1 % +4.4% 201 6
+6.8% +4.4% +4.4%
201 8*
FY 2018 RESULTS *Strategic portfolio only
> Partnership strategy > Lease maturity in Hotels: 1 3.8 years
63
RENTAL INCOME 2018
FY 2018 RESULTS
back to page 40
100% Group share ( million) 2017 2018 Change (%) 2017 2018 Change (%) Change (%) LfL 1 % of revenue France Offices 272.1 271.1
246.9 242.4
+2.8% 39% Paris 81 .9 90.3 +1 0.3% 77.3 85.3 +1 0.3% +2.4% 1 4% Greater Paris (excl. Paris) 1 36.1 1 33.0
1 1 5.3 1 09.6
+3.0% 1 8% Major regional cities 30.9 29.9
30.9 29.7
+4.6% 5% Other French Regions 23.3 1 7.9
23.3 1 7.9
3% Italy Offices 187.0 190.0 +1.6% 87.3 84.6
+1.3% 1 4% Offices - excl. Telecom Italia 88.4 95.7 +8.2% 46.3 55.6 +1 9.9% +1 .5% 9% Offices - Telecom Italia 98.6 94.3
40.9 29.0
% +1 .0% 5% German Residential 230.1 241 .2 +4.8% 144.2 153.9 +6.7% +4.4% 25% Berlin 1 03.4 1 1 6.6 +1 2.8% 70.6 74.8 +5.9% +4.9% 1 2% Dresden & Leipzig 21 .3 23.3 +9.4% 1 4.0 1 4.8 +6.2% +3.4% 2% Hamburg 1 4.2 1 5.9 +1 2.0% 9.2 1 0.6 +1 5.6% +3.1 % 2% North Rhine- Westphalia 91 .3 85.3
50.5 53.6 +6.3% +4.6% 9% Hotels in Europe 241 .8 282.9 +17.0% 90.1 108.8 +20.7% +4.7% 1 8% Hotels - Lease Properties 174.1 208.4 +19.7% 76.8 77.4 +0.8% +4.2% 13% France 89.7 1 00.9 +1 2.5% 34.9 32.2
+4.8% 5% Germany 22.3 27.9 +25.0% 1 0.8 1 1 .5 +6.4% +1 .7% 2% Belgium 21 .4 20.9
1 0.7 8.8
7.6% +5.4% 1 % Spain 33.3 34.3 +3.0% 1 6.6 1 4.5
2.9% +4.8% 2% Others 7.4 24.5 +230.7% 3.7 1 0.4 +1 79.7% +2.4% 2% Hotels - Operating Properties (EBITDA) 67.7 74.5 +10.0% 13.3 31 .4 +135.5% +5.6% 5% Total strategic activities 931 .1 985.1 +5.8% 568.5 589.7 +3.7% +3.4% 96% Non- strategic 64.1 45.2
33.8 26.4
4% Retail Italy 1 7.8 1 5.8
1 .5% 9.3 9.4 +0.4%
2% Retail France 34.8 21 .4
1 7.4 9.1
+1 .6% 1 % Other (France Residential) 1 1 .4 7.9
7.0 7.9 +1 3.1 % n.a. 1 % Total 995.1 1,030.3 +3.5% 602.2 616.0 +2.3% +3.2% 100%
1LfL : Like- for- Like
64
EPRA EARNINGS / +6.4% IN MILLION AND +4.5% PER SHARE
FY 2018 RESULTS
201 7 201 8
Net rental income 539.4 539.0
%
EBITDA from hotel operating activities and coworking
n.a
Income from other activities 7.3 5.1
Net revenue 546.7 574.6
+5.1%
Net operating costs
+6.9%
Depreciation if operating assets
0.2
+41 .7%
Net change in provisions & amortization
2.3
n.a
Operating result 472.9 498.6
+5.4%
Cost of net financial debt
1 1 .0
00.1
Discounting of liabilities and receivables
+35.3%
Net change in financial provisions
1 .2
EPRA Earnings from equity affiliates 1 8.1 1 0.7
Recurring tax
0.6
n.a
EPRA Earnings 358.2 381 .3
+6.4%
EPRA Earnings per share 4.86 5.08
+4.5%
Δ
back to page 45
EPRA NAV End- 2017 EPRA NAV End- 2018
+ 381 m
EPRA Earnings
Dividend + 403 m Property values increase
Hedge restructuring and bond buy- back + 72 m Others
+ 726 m
Merger with Beni Stabili & increase in capital
FY 2018 RESULTS
65
EPRA NAV 2018 | +17% IN MILLION AND +5.5% PER SHARE
8,293 m | +16.6% 99.7/ share | +5.5%
7,1 1 2 m 94.5/ share
back to page 44
APPENDIX
66
FY 2018 RESULTS
67
2018 INVESTMENTS / 1.2 BILLION GROUP SHARE
FY 2018 RESULTS
1 Potential yield on acquisitions. 2 Yield in 2 years after reletting of vacant spaces. Immediate yield is 3.9% on acquisitions realizedIn addition, 225 million ( 140 million Group share) of capex on the operating portfolio were realised, including 95 million of capex in German Residential.
back to page 1 1
Acquisitions 2018 realised Development capex 2018 ( million Including Duties) Acquisitions 100% Acquisitions Group share Yield Group share Capex 100% Capex Group share France Offices 1 37 1 51 n.a. 1 20 96 Italy Offices 1 06 63 6.2%
¹ 48 28 Acquisition of Beni Stabili shares n.a. 263 5.4%
468 324 4.5% ² 81 53 Reinforcement Germany n.a 51 4.9%
91 6 387 5.1 % 41 1 6 Total 1,626 1,239 5.0% 290 194
rue Jean Goujon
Concorde Madeleine
Paris CBD
Grand Palais Palais de
68
FRANCE OFFICES / ASSET SWAP IN PARIS CBD
Rue Jean Goujon Avenue Kléber
through the development pipeline Project to regroup our Paris teams
1 Including dutiesAsset swap with an institutional investor
4,800 m² of renovated offices in Paris 1 6th 8,500 m² to redevelop in Paris 8th
1 04 m 3.3%
disposal yield
21 ,600/ m²
disposal price
acquired in 2005 and 2007
3/ 6/ 9- year lease signed
>20%
target value creation Full redevelopment launched end- 2018
1 5,800/ m²
acquisition price1
1 34 m
rue Jean Goujon
Realizing the value creation
Sell buy
FY 2018 RESULTS
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69
ITALY OFFICES / 106 MILLION OF ACQUISITIONS IN MILAN
Entry into a new dynamic business district of Milan 1 9,784 m² Grade A asset Multi- let tenants│3.5 years WALT 6.0% yield│6.3% at full occupancy 240/ m² average rent in the low range of the market
..including a 78.6 million office in Bicocca business area
FY 2018 RESULTS
Centre Semi- centre Porta Nuova Periphery CBD
M4 M4 M2 M2 M1 M1 M1
M5 M3 M3 Linate Airport M5 Milanofiori Navigli Lorenteggio City Life Certosa Maciachini Bicocca Lambrate / Forlanini Ripamonti
Acquisitions 201 8 back to page 1 1
70
2018 ACQUISITION IN THE UK: START OF A LONG- TERM PARTNERSHIP WITH IHG (1/ 2)
1 £M 777 with a conversion rate of 1.15 at 19/02/2019Hotels locations by city
895 million1
4* and 5* hotels Prime locations in city centers 2,638 rooms
Russell Square - London George Street - Edinburgh Blythswood Square - Glasgow Principal hotel - Manchester
1 2 hotels in lease in the major UK cities
FY 2018 RESULTS
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71
2018 ACQUISITION IN THE UK: START OF A LONG- TERM PARTNERSHIP WITH IHG (2/ 2)
New partnership with a major hotel operator 25- year triple net lease 5.1% yield on minimum guarantee fully indexed >30% EBITDAR margin
Secured
Dynamic market
RevPar1 +2.1% in 2018 despite Brexit uncertainty The 4th most popular destination in Europe The 1
st investment market
for hotels in Europe
Oxford street - Manchester
1 Revenue Per Available RoomUpside potential
Asset management through capex & rebranding 6% target yield on a run rate basis through variable rent component
FY 2018 RESULTS
back to page 1 1
APPENDIX
72
FY 2018 RESULTS
73
2018 DISPOSALS / 1.2 BILLION GROUP SHARE REALIZED & SECURED
FY 2018 RESULTS
( million) Disposals (agreements as
closed) Agreements as of end
close New disposals 2018 New agreements 2018 Total 2018 Margin vs 2017 value Yield Total disposals realized 1 2 3 = 2+3 = 1 + 2 France Offices 1 00 % 82 28 1 60 7 1 67 3.1 % 4.6% 242 Group share 82 28 1 60 7 1 67 3.1 % 4.6% 242 Italy Offices 1 00 % 27
244
6.8% 271 Group share 1 3
72 1 72
6.6% 185 German Residential 1 00% 1 22 1 6 1 48 1 3 1 62 1 8.7% 4.2% 270 Group share 78 1 97 8 1 05 1 8.5% 4.2% 174 Hotels in Europe 1 1 00 % 3 1 8 1 32 272 404 1 .5% 5.8% 135 Group share 1 8 56 58 1 1 4
6.1 % 57 Non- strategic (France Resi., Logistics, Retail in France) 1 00 % 220 6 296 200 496 8.2% 3.1 % 515 Group share 1 1 2 6 1 90 200 390 7.1 % 2.6% 302 Total 100 % 453 69 980 493 1,472 4.6% 4.7% 1,433 Group share 286 52 674 274 948 4.7% 4.3% 960 1.2 bn Group Share 1.9 bn 100%
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74
DISPOSALS / 508 MILLION OF NON- STRATEGIC ASSETS REALIZED & SECURED
FY 2018 RESULTS
Exit from remaining French residential assets 283 million1 2.1 % yield Remaining Quick portfolio and Jardiland assets 1 1 5 million 6.4% yield High- street retail in Milan 85 million 3.2% yield The last Logistics asset 25 million n.a
France Residential Retail in Italy Retail in France Other
GROUP SHARE
715 M
AT 100%
MARGIN VS END- 2017 APPRAISAL VALUE
EXIT YIELD back to page 1 2
1 Including €6 million of agreement signed in 2017 to be realised 75
DISPOSALS / 526 MILLION OF NON- CORE ASSETS REALIZED & SECURED
FY 2018 RESULTS
Offices in the outer suburbs and the regions 1 00 million 7.3% yield Non- core assets in secondary locations 1 1 5 million 5.8% yield Offices outside Milan 1 85 million 6.3% % yield Non- core residential in NRW 1 25 million 5.2% yield
France Italy Hotels Germany
GROUP SHARE
973 M
AT 100%
MARGIN VS END- 2017 APPRAISAL VALUE
EXIT YIELD back to page 1 2
76
DISPOSALS / 206 MILLION OF MATURE ASSETS REALIZED & SECURED
FY 2018 RESULTS
Covivio Head office in Paris CBD and one asset in Clichy 1 49 million 4.1 % yield Privatizations in Berlin 57 million 2.8% yield
France offices German Residential
GROUP SHARE
237 M
AT 100%
MARGIN VS END- 2017 APPRAISAL VALUE
EXIT YIELD back to page 1 2
APPENDIX
77
FY 2018 RESULTS
78
ORANGE PORTFOLIO IN PARIS / UNIQUE POTENTIAL FOR GROWTH & VALUE CREATION
Pereire Maillot Carnot Laborde Anjou Montmartre Provence Jemmapes Ménilmontant Voltaire Philippe Auguste Gobelins Bobillot Keller Raspail Gutenberg
Levallois Neuilly
Projects 201 9
1 00% Occupancy 8,500 Value/ m² 390/ m² Rent
Montmartre – Renovation & Flex-office Ménilmontant – Renovation Gobelins- Full regeneration
Orange portfolio: 1 6 buildings in Paris and Levallois
1.0 billion Portfolio Managed pipeline
FY 2018 RESULTS
ITALY OFFICES / REVERSIONARY POTENTIAL IN MILAN
79
Corso Italia 1 9 Via Messina 38 Piazza S. Freud 1 Via Bernina 7
Asset #
1 9 1 9
GLA
1 49,000 m²
Market Value
790 m
Gross Yield
4.4%
WALB
5.8 Y
Rent
34.6 m
Potential Rent
45.4 m
Total Capex forecasted ~ 75 m
FY 2018 RESULTS
19 assets in Milan with reversionary potential
FY 2018 RESULTS
80
ITALY OFFICES / DEVELOPMENT POTENTIAL IN MILAN
Symbiosis is a landmark office development for the construction of a new business district of ~1 25,000 000 m². Target completion date in 2022. Currently working on masterplan update to move building capacity to North lot.
Total Project
~ 520 m
Total budget
36.4 m
Rent
7.0%
Yield on cost
>20%
Value creation
Development of a school
part of NACE Group
Delivery 2020 97% prelet 1 3.5- year 8.1 % yield on cost ~ 21 m total cost 9,400 m² Buildings A&B
(Fastweb and Cirfood)
Delivered in 201 8 1 00% let 1 0.5- year 7.6% yield on cost 20,500 m²
Ongoing negotiations for approx. 50,000 m²
Already Secured Already Delivered
Value creation
27%
Value creation
>30%
FY 2018 RESULTS
81
HOTELS PORTFOLIO / REVERSION POTENTIAL IN EUROPE
52% Current Rent to EBITDAR ratio of our French, German, Belgian and Dutch portfolio (66% of the lease portfolio) 70% Market level +39% Rent reversion potential
Paris
+16%
Brussels
+51
%
Bordeaux
+14%
Marseille
+34% +78%
Amsterdam
+52%
Berlin
+44%
Frankfurt
Catalysts to catch the reversionary potential:
► Capex program alongside the operator ► New lease agreement ► Move into management contract
► Potential constructability in the Hotels to be valued ► More than 230,000 m² additional surfaces to be
developed into offices, hotels and residential
15
projects in Europe
100,000 m²
additional constructability
Paris Lyon Oxford
FY 2018 RESULTS
82
HOTEL PORTFOLIO / ADDITIONAL CONSTRUCTABILITY IN LAND BANKS
130,000 m²
land bank in Berlin
Leipzig
be committed in 201 9
Park Inn Alexanderplatz - Berlin
Dresden
Berlin Dresden & Leipzig Hamburg NRW
FY 2018 RESULTS
83
GERMAN RESIDENTIAL PORTFOLIO / REVERSION POTENTIAL
% %
+35% +20 +20- 25% 25% +1 5- 20% 20%
Current in place rent / m / m²/ month Reversionary potential End- 201 8
6.1 6.1 8.0 9.4 9.4 6.2 6.2
9% 9% 7% 25% 59%
+20% +20%
Average market rent for our units back to page 37
APPENDIX
84
FY 2018 RESULTS
85
COVIVIO FRANCE OFFICES PORTFOLIO
A A 6.7 billion portfolio at 1 00% ( 5.6 billion in Group share) at end- 201 8 The strategic locations in Paris, the Inner Ring and the Major regional cities represent 95 95%of the portfolio 1 3% 1 3% Major Regional Cities 38% Paris 25% Western Crescent and La Défense 20% Inner Ring 1 % Outer Ring 3% Regions
FY 2018 RESULTS
PARIS CENTER OUEST LA DÉFENSE REST OF PARIS WESTERN CRESCENT VÉLIZY MEUDON FIRST RING COVIVIO ASSETS (% of the portfolio in Group share)
MAJOR BUSINESS DISTRICTS
1-3 % <1 % 3-6 % 6-9 % 9-12 % 20 %
Greater Paris Portfolio
back to page 1 3
PARIS & GREATER PARIS OFFICE MARKET
Key figures in 201 8
56 million m² of offices in the Greater Paris market 1 7.1 million m² in Paris 3.3 million m² in La Défense 8.0 million m² in the Western Crescent 8.0 million m² in the Inner ring 1 9.1 million m² in the Outer ring Vacancy rate 5.3% 2.3% in Paris 5.0% in la Défense 1 0.1 % in the Western Crescent 7.5% in the Inner ring 5.2% in the Outer ring
FY 2018 RESULTS
PARIS CENTER OUEST LA DÉFENSE REST OF PARIS WESTERN CRESCENT
VÉLIZY MEUDON
FIRST RING
86
Sources: C&W, Immostat
Paris CBD Paris West Paris South Paris North- East La Défense Péri- Défense Vélizy- Meudon Neuilly Levallois South bend North bend 1
st ring North1
st ring East1
st ring South2nd ring South RER B RER D T2 RER A RER C RER C M2 M6 M1 M14 Ligne 17 Ligne 16 Ligne 15 Ligne 18 Ligne 15
Paris CBD
La Défense Rueil- Malmaison Issy- les- Moulineaux Vélizy- Meudon Saint- Denis Gennevilliers Asnières Nanterre Neuilly Suresnes Saint- Cloud Boulogne- Billancourt Chatenay- Malabry Antony Rungis Orly Cachan Clamart Montrouge Arcueil Ivry- sur- Seine Charenton- Le- Pont Vincennes Bagnolet Aubervilliers Clichy
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87
OFFICE MARKET / GROWING BUSINESS DISTRICT IN THE NORTH OF PARIS
FY 2018 RESULTS
Immediate offer Prime rents Take- up
Project N2 Project Paris- St Ouen Paris 17/ 18th Clichy Saint- Ouen Urban regeneration area Future metro ligne 14 to CBD and Orly airport Covivio asset Saint- Denis Wellio Montmarte Metro line 13 Urban regeneration area Future Olympic village Covivio asset
Paris 1 7 north, Clichy, St- Ouen: an area undergoing urban regeneration
Paris 17 North, Clichy, St- Ouen
~1million m² 52,000 m² on new space Paris 1 7 North: 550 / m² St- Ouen: 400 / m²
Office stock
71 ,705 m² in 201 8 (43%
space)
back to page 24
Centre Semi- centre Porta Nuova Periphery CBD M4 M4 M2 M2 M1 M1 M1
M5 M3 M3
Linate Airport
M5
Milanofiori Navigli Lorenteggio City Life Certosa Maciachini Bicocca Lambrate / Forlanini Ripamonti
COVIVIO ITALY OFFICES PORTFOLIO
A A 3.9 billion portfolio at 1 00% at end- 201 8 ( 3.2 billion Group share) )
7% Other 73% 73% Milan 1 2% Northern Italy 4% Turin 4% Rome
1 Offfices only; excluding Retail (non strategic)Milan: a 2.5 billion portfolio 1 ( 2.3 billion Group share) focused on the best locations
20% Periphery 24% Center & Semi- Center 56% CBD & Porta Nuova
88
Rental portfolio Acquisition signed in 201 8
FY 2018 RESULTS
Developments
back to page 1 3
FY 2018 RESULTS
89
MILAN OFFICE MARKET
Linate Airport Milanofiori Navigli Lorenteggio City Life Certosa Maciachini Bicocca Lambrate / Forlanini Ripamonti
PORTA NUOVA CBD CENTER SEMI- CENTER PERIPHERY
(- 2 pts) (stable) (- 0.1 pt) (+7% ) (- 0.1 pt) (+1 0% ) (- 1 .2 pts) (+4% ) (- 0.9 pt) (+8% )
Source: CBRE
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90
COVIVIO GERMAN RESIDENTIAL PORTFOLIO
A A 5.8 billion portfolio at 1 00% at end - 201 8 ( 3.7 billion Group share)
59% 59% Berlin 7% Hamburg 9% Essen (NRW) 9% Dresden & Leipzig 4% Duisburg (NRW) 3% Mülheim (NRW) 3% 3% Oberhausen (NRW) 6% Others (NRW)
1€2.2 billion Group ShareFY 2018 RESULTS
Berlin: a 3.4 billion1 portfolio focused on the best locations
Source: Engel & Völkers Residential
Basic locations Average locations 5%
Good locations 22%
Prime locations
73%
Covivio Assets
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91
COVIVIO HOTEL PORTFOLIO
A A 5.8 billion hotel portfolio at 1 00% at end - 201 81 ( 2.3 billion Group share)
34% France 28% Germany 7% Belgium 1 2% Spain 2% Netherlands & Portugal 1 7% United Kingdom 38 % Midscale 26% Economic 36% 36% Upscale
1 Hotels onlyFY 2018 RESULTS
25% Accor 1 5% B&B 3% Barcelo 3% Hotusa 1 4% 1 4% Others 8% RHG 7% 7% NH 1 7% IHG 8% Marriott
% in revenue % in revenue % in value
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92
EUROPEAN HOTELS MARKET IN 2018
FY 2018 RESULTS
RevPar
ADR
Occupancy rate
Main cities RevPar var. 201 8 (%)
+7.3% +5.3% +1 .2 pts +2.7% +2.2% +0.4 pt +2.1 % +1 .2% +0.6 pt +1 .5% +0.7% +0.6 pt +6.5% +5.0% +1 .1 pt +8.5% +4.6% +2.7 pts Paris: +1 2.1 % Berlin: +7.1 % Dresden: +4.4% London: +2.6% Madrid: +4.7% Barcelona: - 3.4% (already recovering with ~+1 9% in Nov. and
8) Brussels: +1 1 .2% Amsterdam: +5.1 %
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Paris 30, avenue Kléber 751 1 6 Paris Tel.: +33 1 58 97 50 00
CONTACT
Paul Arkwright
Tel.: +33 1 58 97 51 85 Mobile: +33 6 77 33 93 58 paul.arkwright@ covivio.fr
www.covivio.eu
Hugo Soussan
Tel.: +33 1 58 97 51 54 Mobile: +33 6 84 44 95 40 hugo.soussan@ covivio.fr