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. Innovation to follow wishes 26 III. 201 8 RESULTS 30 III- A. Rental activity 32 III- B. Financial results 41 IV. OUTLOOK 47 V. APPENDIX 50 2 FY 2018 RESULTS
2018 / GROWTH ON ALL INDICATORS +3.4% LIKE- FOR- LIKEREVENUE +4.4% LIKE- FOR- LIKEVALUE +4.5% EPRA EARNINGS / SHARE +5.5% EPRA NAV / SHARE 3 FY 2018 RESULTS
I. STRATEGY
MAKING OUR BUSINESS MODEL MORE RELEVANT THAN EVER A unique business model based on 3 strategic pillars 1 2 3 Focus on Development Client European pipeline centric capital cities 96 % 23 bn 6 bn > 96 portfolio 1 pipeline 2 average occupancy rate for the past 10 years Offer core Our clients, locations best quality at the center in gateways assets of our strategy 1 € 15 bn Group Share 2 € 4.4 bn Group Share 5 FY 2018 RESULTS
A EUROPEAN INTEGRATED COMPANY Merger with Beni Stabili in December 201 8: a major step towards simplification 1 INCREASING MARKET CAP & FREE FLOAT 37 % German Residential +40 % 25 % increase in the free float in 2 years Ownership: 61 .7 % 3.7 bn bn 2 Offices free float Hotels % 21 Europe 7.3 bn bn 2 5 % 1 Market Ownership: 42.3 % <2 % Non Capitalization (General partner) strategic 1 Breakdown in Group Share, proforma of the disposal of the French residential portfolio signed early 2019 6 FY 2018 RESULTS 2 As of Feb. 19th 2019
AN ETHICAL AND EFFECTIVE GOVERNANCE 1 - in- class board composition Long- term supportive Renewal of the independent Experience, Independence shareholders for more & Diversity Chairman than 1 0 years Jean Laurent 51 % 26% Chairman of the Board since 201 1 Free float Delfin Separate (Since 2007) Chairman and CEO Two new independent members 1 5 members Christian Delaire Senior advisor of Foncière Atland 60 % Former CEO of Generali Real Estate & AEW Europe independent 40 % 8% 7% 8% Olivier Piani ACM Senior advisor & Chairman of Covéa Crédit women Investment Committee at Ardian (Since 2003) (Since 2003) Agricole Former CEO of Allianz Real Estate Assurances & GE Capital Real Estate Europe (Since 2005) 1 To be approved by the 2019 EGM 7 FY 2018 RESULTS
A PROACTIVE & VOLUNTARY ENVIRONMENTAL STRATEGY 72 % 72 EXPLOIT GREEN 64 % 64 ASSETS % Green Respecting the Ambitious carbon assets 2 2°C reduction target 0- 2030 1 between 201 201 7 201 8 scenario - 1 / 3 set forth in the international Paris Agreement FAVOUR of 201 5 of assets l located PUBLIC 92 % 92 <500 m of public average transport TRANSPORTS carbon weight (98% <1 km) per m ² (construction + refurbishment + operation) 1 Trajectory compatible with the 2 ° C scenario approved by the Science Based Target initiative 8 FY 2018 RESULTS 2 Weighted average of France and Italy Offices and Hotels see appendix p.53- 54 for more details
REWARDED BY THE BEST AGENCIES AN ESG STRATEGY REWARDED IN EACH CRITERIA Green Star (86/ 1 00) Climate A List Top 5% 201 8 Corporate Governance Grand Prix Score 78/ 1 00 COVIVIO, IN THE MAIN ESG INDEXES AA rating Euronext CDP Environment France 9 FY 2018 RESULTS
II. 2018 ACTIVITY: STRENGTHENING OUR STRATEGIC PILLARS A. Reinforcement in European capital cities B. Acceleration of the development pipeline C
Group share data 2018 / REINFORCEMENT IN EUROPEAN CAPITAL CITIES 1.2 Bn 194 M + acquisitions Capex 5.0 % yield % yield 6.1 OFFICES HOTELS RESIDENTIAL Invest in office Enter the UK market at Reinforcement developments attractive conditions in Berlin in Paris & Milan 339 million 339 404 million 404 428 million 428 6.2 % yield 1 % minimum yield 6.2 5.1 5.1 2,1 2,1 35/ m ² on acquisitions 35 4.6 % yield 2 6.0% target yield 4.6 And 263 million of equivalent assets from acquisition of Beni Stabili shares before the merger 1 1 FY 2018 RESULTS 1 Excluding Jean Goujon in Paris see appendix p.67- 71 for more details 2 Potential yield in 2 years letting of vacant spaces (3.9% immediate yield)
Group share data ACTIVE 2018 PORTFOLIO ROTATION TO FINANCE INVESTMENTS 960 M 274 M + disposals Additional realized disposals secured 4.3 % average margin 2.4 % average margin 4.9 % exit yield 3.2 % exit yield Acceleration of mature Pursue qualitative Exit from non- strategic asset disposals asset rotation selling activities non- core assets 206 206 million 526 526 million 502 million 502 3.7 % exit yield % exit yield 3.2 % exit yield 3.7 6.1 6.1 3.2 => Full exit from French Residential ( 283 m) 1 2 FY 2018 RESULTS see appendix p.73- 76 for more details
DYNAMIC FOCUS ON HIGH QUALITY LOCATIONS 201 5 201 8 5.6 bn FRANCE 78 % 83 % 83 % GREATER PARIS OFFICES GROUP SHARE ITALY 49 % 3.2 bn 73 % 73 % MILAN OFFICES GERMAN 40 % 59 % 3.7 bn 59 % BERLIN RESIDENTIAL HOTELS 58 % 85 % 2.3 bn 85 2 MAJOR EUROPEAN CITIES 1 % IN EUROPE 1 Cities with more than 2 million overnight stays per year 1 3 2 Including the disposal agreement of 59 B&B hotels in France signed early 2019 FY 2018 RESULTS see appendix p.85, 88, 90, 91 for more details
II. 2018 ACTIVITY: STRENGTHENING OUR STRATEGIC PILLARS 1. Reinforcement in European capital cities 2. Acceleration of the development pipeline
SUCCESSFUL DELIVERIES IN 2018 STRENGTHENING OUR TRACK RECORD 3 offices (35,000 m ² ) and 4 hotels (653 rooms) Riverside Toulouse Symbiosis A&B Milan Motel One - Paris ,000 m ² 1 1 20,500 m ² 255 rooms Strong track record: since 201 0, 95% occupancy on all projects in the year following their delivery Occupancy at end- 201 8 Value creation Yield on cost 97% >25% 6.9% 1 5 FY 2018 RESULTS see appendix p.60 for more details
DEVELOPMENT PIPELINE WELL ON TRACK TO FUEL OUR GROWTH COMMITTED PIPELINE ~+ 800 M to come 1.3 bn in 201 9 6 bn ~+ ~+ 1 .1 billion Group share 0.5 bn at 1 00 % 1 .6 billion total pipeline Group share at 1 00 % 0.9 billion 4.4 bn at 1 00 % % yield on cost 6.1 6.1 Group share ~30 % value creation X2.5 End End 201 7 201 8 62 % 56 % pre re- let pre- let 1 6 FY 2018 RESULTS see appendix p.56- 58 for more details
COMMITTED PIPELINE AT END- 2018 / HIGH- QUALITY PROJECTS IN PARIS, BERLIN & MILAN 31 PROJECTS COMMITTED AT END- 2018 280,000 M ² OF OFFICES => 1 52,000 M ² ALREADY PRE- LET 790 ROOMS 454 RESIDENTIAL UNITS HIGH- QUALITY PROJECTS IN STRATEGIC LOCATIONS 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/ LABEL 1 1 Levels targeted: HQE Excellent, BREEAM very good, LEED Gold 1 7 FY 2018 RESULTS see appendix p.56- 58 for more details
FLOW / A SUCCESSFUL OPERATION ACROSS THE ENTIRE REAL ESTATE VALUE CHAIN FLOW MONTROUGE ACQUISITION 2015 of an existing vacant building of 1 8,000 m ² BUILDING PERMIT 2017 for a high- quality urban campus including a 30% extension of the surface area (+5,600 m ² ) 100% CONSTRUCTION & PRE- LETTING 2018 Full pre- letting 1 8 months ahead of delivery to a large corporate 115 million total cost >40% value creation target 1 8 FY 2018 RESULTS
IRO & FLOW / TWO SMART & ATTRACTIVE DEVELOPMENTS (1/ 2) MALAKOFF- MONTROUGE- CHATILLON BUSINESS DISTRICT Office Stock Paris ~1 million m ² Take- up 2018 FLOW 115,000 m ² Future line 15 8 min of the Grand Paris metro Chatillon- Montrouge hub New space available 8 min until 2020 Only 35,000 m ² IRO 1 9 Source: CBRE FY 2018 RESULTS
IRO & FLOW / TWO SMART & ATTRACTIVE DEVELOPMENTS (2/ 2) 254 MILLION IN HIGH- QUALITY PROJECTS TO BE DELIVERED IN 2020 Flow IRO 23,600 m ² 25,600 m ² 1 1 5 million total cost 1 39 million total cost 6.6% yield 6.3% yield 1 00% pre- let Facing limited competition 20 FY 2018 RESULTS
SILEX 2 / MAJOR PRE- LETTING 2 YEARS BEFORE DELIVERY (1/ 2) Lyon Part- Dieu business district Tramway 30 min to airport Office Stock >1 million m ² New space available until 2021 Only 20,000 m ² Metro & Tramway Infrastructure under renovation or construction Office deliveries 2022 & later Office deliveries 2021 Silex 2 (train station, residential, shopping mall) 21 Source: JLL FY 2018 RESULTS
SILEX 2 / MAJOR PRE- LETTING 2 YEARS BEFORE DELIVERY (2/ 2) Silex 2 30,900 M ² 66 MILLION TOTAL COST 1 1 6.0% YIELD >50% VALUE CREATION TARGET 44% PRE- LET 8,800 m ² to 5,000 m ² dedicated to flex- offices with 1 Shared at 50% with ACM 22 FY 2018 RESULTS
BERLIN RESIDENTIAL / ACCELERATION OF THE DEVELOPMENT PIPELINE GROWING PIPELINE OF 700 MILLION 1 5,000 M ² 62 POTENTIAL PROJECTS IDENTIFIED ON 21 MOSTLY IN BERLIN 111 MILLION COMMITTED 2 AT END- 2018 454 units delivered by 2021 >40% margin 4.8% 3,650 / m ² on the units yield on cost to be sold AND MORE THAN 100 MILLION TO BE COMMITTED IN 2019 1 € 430 million Group share; 2 € 72 million Group share 23 FY 2018 RESULTS
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