GREEN & SOCIAL BOND ROADSHOW PRESENTATION
Belliard 40 – Brussels CBD
GREEN & SOCIAL BOND ROADSHOW PRESENTATION Belliard 40 - - PowerPoint PPT Presentation
GREEN & SOCIAL BOND ROADSHOW PRESENTATION Belliard 40 Brussels CBD Table of contents General company presentation 3 Cofinimmos financing strategy 12 Cofinimmo & Corporate Social Responsibility 18 Sustainable development
Belliard 40 – Brussels CBD
Green & Social Bond – Roadshow presentation
General company presentation Cofinimmo’s financing strategy Cofinimmo & Corporate Social Responsibility Sustainable development strategy Cofinimmo’s Green & Social Bond offering Green & Social Bond offering Use of proceeds Transparent evaluation and selection process Eligible projects Examples of eligible green projects Examples of eligible healthcare projects Management of proceeds Reporting commitments and indicators External assurances Key investment highlights Terms & Conditions
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3 12 18 19 22 23 24 25 26 27 28 29 30 31 32 33
Résidence Tillens – Brussels (BE)
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1st listed healthcare property investor, with pan-European combined presence in Belgium, France, the Netherlands and Germany Leading Belgian listed REIT exposed to healthcare real estate (44 %) and offices (39 %) Total market capitalisation: 2.3 billion EUR Internal real estate management platform > 130 employees REIT status in Belgium (SIR/GVV), France (SIIC) and the Netherlands (FBI) Total portfolio fair value: 3.3 billion EUR Office property investor in Belgium only
Figures at 30.09.2016
Portfolio breakdown by segment
(30.09.2016 - in fair value)
Portfolio breakdown by country
(30.09.2016 - in fair value)
Average weighted residual lease term of the current leases: 10.2 years
72.6% 16.0% 8.4% 3.0% Belgium France Netherlands Germany 43.7% 39.1% 16.4% 0.8% Healthcare real estate Offices Property of distribution networks Others
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1983
Establishment of the company (6 MEUR capital)
1994
Listing on the Brussels Stock Exchange
2007
Sale and leaseback of 1,068 pubs with AB InBev
1999
Internalisation
management
1996
Adoption
status
2005
First acquisition
property in Belgium
2008
First acquisition
property in France
2011
Sale and leaseback
insurance agencies with MAAF
2012
First acquisition
property in the Netherlands
2013
Reconversion
buildings into apartments
2015
Capital increase
2014
First acquisition
property in Germany
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Long-term presence & strong internal expertise in both core segments
Healthcare real estate
driven by demography
Offices
driven by economics
Acquisitions in new markets (Germany & Netherlands) (Re)development projects in more mature markets (Belgium & France) Further diversification per country, per medical specialty and per
Comprehensive & pro-active local operating platform In central locations: renovations and reconstructions to upgrade quality In decentralised locations: reconversions to alternative uses Arbitrage within a portfolio kept above a critical size
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Portfolio breakdown at 30.06.2016 2016-2018 Committed pipeline (x 1,000,000 EUR) 2016-2018 potential scenario: Uncommitted acquisitions (x 1,000,000 EUR) 2016-2018 potential scenario: Uncommitted disposals (x 1,000,000 EUR) Portfolio breakdown at 31.12.2018 Healthcare real estate 44 % 117 400
50 % Offices 39 % 179
35 % Acquisitions 60 Refurbishment 76 Reconversion 43
Others 18 % 12 15 % Total 100 % 308 400
100 %
308 million EUR committed 250 million EUR uncommitted
investments (pipeline)
Target by end 2018
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FAIR VALUE
NUMBER OF SITES
SURFACE AREA
(5,400 m2 per site on average)
Portfolio breakdown by country
(30.09.2016 - in fair value)
Portfolio breakdown by care speciality
(30.09.2016 - in fair value)
55.7% 28.1% 6.9% 9.3% Belgium France Germany Netherlands 65.3% 13.4% 7.1% 3.9% 3.4% 2.7% 2.6% 0.8% 0.5% 0.3% Skilled nursing facilities Revalidation clinics Wellness Psychiatric clinics Elderly care clinics Assisted living Specialised clinics Parking facilities Disabled care facilities Medical office buildings
Green & Social Bond – Roadshow presentation
FRANCE
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Lease length Initial yields
NETHERLANDS
Care & cure market (care of elderly or disabled people, acute care, medical office buildings)
Lease length Initial yields
BELGIUM
Care market (skilled nursing homes)
Lease length Initial yields
GERMANY
Care & cure market (skilled nursing homes, revalidation clinics)
Lease length Initial yields Care market (skilled nursing homes, revalidation & psychiatric clinics)
All leases provide for fixed rent + indexation to inflation
BELGIUM 812 MEUR FRANCE 409 MEUR NETHERLANDS 135 MEUR GERMANY 101 MEUR Amounts invested at 30.09.2016:
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FAIR VALUE
NUMBER OF SITES
SURFACE AREA
Portfolio breakdown by country
(30.09.2016 - in fair value)
Portfolio breakdown by tenant type
(30.09.2016 - in fair value)
36.4% 39.1% 10.5% 5.1% 8.9% Brussels CBD Brussels Decentralised Brussels Periphery/Satellites Antwerp Other regions 13.3% 9.2% 77.5% Belgian public sector International public sector Others
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SOLID FINANCIAL RESULTS RESILIENT OPERATIONAL KPI’S EPRA financial KPI’s
Per share (EUR) FY 2014 FY 2015 FY 2016 Actual Actual Forecast Net current result (excl. IAS 39 impact) - Group share (EPRA Earnings) 6.7 6.46 6.19 Result on the portfolio - Group share
0.32 n/a Net result - Group share
5.23 n/a EPRA NNNAV 88.66 90.93 n/a Number of shares entitled to the result of the year 17,971,494 19,888,379 20,980,112 31.12.2004 31.12.2015 30.09.2016 Actual Actual Actual Like-for-like gross rental revenues growth 1.00%
0.80% Occupancy rate 95.20% 94.90% 95.00% Average lease maturity 11.0 years 10.5 years 10.2 years Per share (EUR) 31.12.2014 31.12.2015 30.09.2016 EPRA Earnings 6.70 6.40 4.69* EPRA Net Asset Value (NAV) 93.59 93.34 94.20 EPRA Adjusted Net Asset Value (NNNAV) 88.66 90.93 90.01 EPRA Net Initial Yield (NIY) 6.10% 6.00% 6.10% EPRA Vacancy Rate 4.90% 5.20% 5.10% EPRA Cost ratio (cost of vacancy excluded) 15.90% 17.70% 20.10%
* 9 months
Guimard 10-12 – Brussels CBD
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Bonds (x 1,000,000 EUR) Equity (x 1,000 000 EUR)
S&P credit rating Long term: BBB / Short term: A-2 Strong liquidity 284.5 million EUR capital increase in 2015 > significant investment capacity to deploy over 2015-2018 252 million EUR invested since
19 5 63 22 11 75 72 98 69 38 92 31 32 44 33 285
50 100 150 200 250 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Contribution in kind of assets Sale of treasury shares Stock dividend Rights issue
140 50 190 70 173 191 219
50 100 150 200 250 300 350 2011 2012 2013 2014 2015 2016 Non convertible Convertible
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Debt breakdown (x 1,000,000 EUR) Average cost of debt and debt maturity
4.2% 4.1% 3.9% 3.4% 2.9% 2.5% 3.3 3.8 3.8 3.4 5.3 4.7 3 3.5 4 4.5 5 5.5 6 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 2011 2012 2013 2014 2015 30.09.2016 Average cost of debt Average debt maturity (in years) 33.6% 29.1% 14.8% 22.5% Bank facilities Non-convertible bonds & long-term commercial paper Convertible bonds Short-term commercial paper & others
30.09.2016 31.12.2015 Debt ratio 42.8 % 38.6 % Average debt (x 1,000,000 EUR) 1,315.8 1,459.0 Average cost of debt 2.5 % 2.9 % Average debt maturity (in years) 4.7 5.3 ICR (excl. hedging restructuring) 4.9 4.1
Key figures
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Debt maturities & refinancing (x 1,000,000 EUR)
171 101 347 3 445 100 204 100 146 229 200 90 100 200 300 400 500 600 700 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Refinanced Bank facilities Capital markets
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LHS: Notional amount of hedged debt (x 1,000,000 EUR) & RHS: Weighted average strike rate
2.4% 2.3% 2.0% 2.3% 2.4% 1.4% 1.4% 1.4% 1.5% 1.7% 1.7% 1.7% 0.7% 1.0% 1.2%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 200 400 600 800 1,000 1,200 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Before restructuring After restructuring Before restructuring After restructuring
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Assumption: total financial debt needs based on the committed pipeline on 30.06.2016 Situation after hedge restructuring Q4 2016
45% 41% 42% 42% 35% 20% 35% 35% 43% 43% 45% 47% 20% 23% 14% 15% 20% 33% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 2017 2018 2019 2020 2021 Fixed rate debt Hedged debt Floating rate debt
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An essential component of the Group’s global strategy
ENVIRONMENTAL FOCUS ECONOMIC FOCUS SOCIAL FOCUS
emission
data (TARGET: 100 % offices, 75 % healthcare real estate)
(TARGET: in all multi-tenant office buildings in 2018)
property management of offices and project management for all segments (TARGET: new ISO 14001: 2005 by 2017)
(TARGET: 30 % of office space areas by 2017)
vehicles in office buildings (TARGET: 12 new charging points by 2018)
spaces in office portfolio
buildings
(TARGET: 2 new lounges by 2017)
access to capital
2018
2015)
credit lines
(Code of conduct)
coordination on construction site
buildings, discussion forums
control
public spaces and the diversity of districts
residential & healthcare real estate
payroll in employee training
cultural diversity
(TARGET: Gold certification by 2018)
management level)
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An annual reviewed materiality matrix according the GRI G4 guidelines* and reflecting the company’s dialogue with its stakeholders
SOCIAL RESPONSIBILITY ACCORDING TO MAJOR TRENDS IN
HEALTHCARE REAL ESTATE
With an ageing population and evolving lifestyles, new needs arise in terms of housing for elderly and ill people and in terms
healthcare. The rapidly growing healthcare real estate sector needs to respond to the specific needs of this ever-larger proportion of the
according to the individual’s level of autonomy combined with tailored apartments. Cofinimmo assists operators of medical institutions in their expansion plans. It helps them to renovate and extend their property portfolio in order to meet the current and future demand for housing and care.
OFFICES
The utilisation of office space is changing worldwide with less square meters per person. The way forward is to build new high quality facilities, with flexible interiors for tenants and excellent energy performance. When a building no longer meets the current standards of modern an sustainable offices, Cofinimmo redevelops it entirely thanks to specialized internal teams.
* GRI G4 guidelines are Sustainability Reporting Guidelines set out by the Global Reporting Initiative (GRI), an international independent standards organization
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GOVERNANCE STRUCTURE
BOARD OF DIRECTORS EXECUTIVE COMMITTEE HEAD OF PROPERTY SERVICES & CSR ENVIRONMENTAL SUSTAINABILITY MANAGER COMMITTEE
TRANSPARENCY IN COMMUNICATION
(ISAE 3000)
(ISAE 3000) on corporate website
SURVEY PARTICIPATION AND SCORES
2013 2014 2015 2016
EPRA
Silver Gold Gold Gold
GRESB
38 45 57 51
CDP
81C 89C 96C B
STANDARD
EE+ EE+
ETHICS
SUSTAINABILITY COMMITTEE
the company’s environmental performance, its portfolio and, by extension, the spaces occupied by its tenants
Responsibility into the Group’s strategy
international environmental requirements
Nursing home Zonnewende – Aartselaar (BE)
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[50 - 100] million EUR issue in line with the 4 components of the ICMA Green Bond Principles*
Use of proceeds
certifications (BREEAM or BREEAM In-Use with at least a ‘Very Good’ rating)
healthcare services for vulnerable groups of people (within psychiatrics, geriatrics and care of disabled people)
Project selection process
supported by internal and external expertise
category, and additional Environmental, Social and Governance (ESG) selection criteria evaluated by Vigeo Eiris
Management
Reporting
EXTERNAL REVIEW
ICMA Green Bond Principles
* ICMA Green bond Principles and ICMA guidance for issuers of social bonds available on http://www.icmagroup.org/Regulatory-Policy-and-Market-Practice/green-bonds/
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A [50 - 100] million EUR bond offering ensuring the financing of 2 eligible project categories:
50 % allocation to GREEN OFFICES
Investments in existing/future green offices in Cofinimmo’s portfolio with specified sustainability certifications (BREEAM
OBJECTIVES
and greenhouse gases (GHG) emissions reduction or avoidance
through
50 % allocation to HEALTHCARE REAL ESTATE
Investments in existing/future assets which will provide and/or promote access to essential healthcare services for vulnerable groups of people and within certain medical specializations, psychiatrics, geriatrics or care of disabled people.
OBJECTIVES
meet current and future demands in terms of accommodation and care for elderly and ill people (nursing and care homes, rehabilitation, psychiatric and acute care clinics)
carbon footprint by integrating sustainable architecture, materials and facilities with low energy consumptions (construction or renovation of the properties) CLIMATE CHANGE MITIGATION : reduction of CO2 emissions PROTECTION OF NATURAL RESOURCES : water and energy savings, use of sustainable materials, … HEALTHCARE SERVICES IMPROVEMENTS : increased offer of healthcare beds and services
SUSTAINABILITY BENEFITS
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Ensuring the sustainable management of all financed projects A clearly defined evaluation and selection process, in line with corporate strategy
An evaluation and selection framework based on internal and external expertise
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Status Year of construction / renovation / Date of delivery Eligibility criteria GREEN OFFICES Name City Guimard 10-12 Brussels CBD (BE) In operation 2015 BREEAM Very Good Belliard 40 Brussels CBD (BE) Under construction Q4 2017 BREEAM Excellent Arts 19H Brussels CBD (BE) Future construction Q3 2018 BREEAM Excellent HEALTHCARE REAL ESTATE Name City Tillens Brussels (BE) In operation 2015 Psycho-geriatrics Churchillaan Lopik (NL) In operation 2015 Care of disabled people Tweesprong Oosterhout (NL) In operation 2014 Geriatrics Domaine de Vontes Evres sur Indre (FR) Future renovation Q3 2018 Psychiatric clinic Ronsseweg Gouda (NL) In operation 2014 Psychiatric clinic Arcade Ermelo (NL) In operation 2014 Geriatrics Orchidee Ittre (BE) In operation 2013 Geriatrics Zonnewende Aartselaar (BE) In operation 2013 Geriatrics
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GUIMARD 12
BREEAM Very Good (aimed)
(previously 180)
130)
double glazing
auto shut-off
gas condensing boilers
presence detection and solenoid valve
BELLIARD 40 ARTS 19H
BREEAM Excellent (aimed)
protection
with very high degree of efficiency and high ventilation units with speed regulators
BREEAM Excellent (aimed)
energy building
protection
luminous flux depending on daylight
with very high degree of efficiency and high ventilation units with speed regulators
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RESIDENCE TILLENS
Psycho-geriatrics
promoting the life course of people suffering from dementia
adapted vegetation
CHURCHILLAAN
Care of disabled people
promoting the autonomy of people suffering from autism or other mental disabilities
DOMAINE DE VONTES
Psychiatric clinic
façades
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INTERNAL TRACKING SYSTEM
instruments that do not include GHG intensive activities, nor any disputable activity
50 % of social projects (refinancing of assets delivered or renovated since 2013)
issuance of the Bonds
REVIEW OF TRACKING METHOD
* The projects that will be selected will comply with the criteria of the eligible projects
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Reporting commitments compliant with ICMA Green Bond Principles
level) + methodology
Reporting indicators for both eligible categories
allocated amount vs. total amount of proceeds (in %)
and water savings (in MWh), # new beds, type and # of new beneficiaries at each facility
renewed, energy consumption and CO2 emissions produced, etc.
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SECOND PARTY OPINION
ON SUSTAINABILITY CREDENTIALS OF THE BOND Every 3 years, the second party opinion on the sustainability credentials of the bond and on the compliance with Cofinimmo’s pre-issuance commitments and with the Green Bond Principles will be reviewed.
EXTERNAL VERIFICATION
OF TRACKING BOND PROCEEDS, COMPLIANCE OF SELECTED PROJECTS AND REPORTING METRICS Deloitte, Cofinimmo’s current Auditor, will verify the reported use of proceeds on an annual basis.
Bond issuance supported by external reviews
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Geographic: across 4 markets (Belgium, the Netherlands, France and Germany) Investment segments: healthcare properties (44 %), offices (39 %) and distribution networks (16 %)
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Issuer Cofinimmo SA Guarantor No Rating of Issuer BBB, S&P (outlook: stable) Currency EUR Issue amount EUR [50 – 100 M] Denomination EUR 100,000 (and integral multiples thereof) Tranches/Tenor [7 – 8] years Interest Fixed interest rate, payable [annually] on each interest payment date Status Senior, Unsecured Form Dematerialised form Use of Proceeds Social and green eligible projects
Covenants CoC, Negative Pledge with 70% of unencumbered assets, Cross Acceleration, Pari Passu Listing Alternext Paying Agent Belfius Bank Redemption Bullet, at par Tax redemption The Issuer may at any time redeem all the Bonds at par for taxation reasons. Law Belgian Global Coordinator BNP Paribas, London branch Bookrunners BNP Paribas, London branch, Belfius and DegroofPetercam
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IMPORTANT NOTICE The securities described in this document are intended for investors who have the necessary knowledge and experience to assess the benefits and risks of an investment in this type of product, based on their financial situation. This document has been prepared by Cofinimmo SA/NV, a public limited liability company with registered seat at Boulevard de la Woluwe, 58, 1200 Woluwe-Saint-Lambert (RLE (Brussels) 0426.184.049) (the "Issuer") in the context of a potential private placement of bonds. This document is being furnished to you solely for your information on a confidential basis and in the context of the potential private placement of bonds to be issued by Cofinimmo . It may not be reproduced, redistributed or passed on, in whole or in part, to any other person. In particular, neither this document nor any copy thereof may be taken or transmitted or distributed, directly or indirectly, into any country other than Member States of the EEA. Any failure to comply with these restrictions may constitute a violation of law. This document does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for or purchase any securities, and neither this document nor anything contained herein shall form the basis of or be relied on in connection with or act as any inducement to enter into any contract or commitment whatsoever. This document does not purport to be all-inclusive or to contain all the information that an investor may desire in deciding whether to buy or subscribe for the securities referred to in this document. The Issuer, BNP Paribas, London branch, Belfius Bank SA/NV and Bank Degroof Petercam SA/NV, their affiliates and their respective representatives expressly disclaim any and all liability which may be based on this document or such information, and any errors therein or omissions therefrom. Any decision to purchase or subscribe for securities in any offering must be made solely on the basis of the information contained in the
This document has been prepared on the basis that any offer of bonds in any Member State of the EEA which has implemented the Prospectus Directive (each, a “Relevant Member State”) will be made pursuant to an exemption under the Prospectus Directive from the requirement to publish a prospectus for offers of bonds. The expression “Prospectus Directive” means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the relevant Member State), and includes any relevant implementing measure in the relevant Member State and the expression “2010 PD Amending Directive” means Directive 2010/73/EU. This document is not for release, publication or distribution, directly or indirectly, in or into the United States (as defined in Regulation S under the US Securities Act of 1933, as amended (the "Securities Act"). This document is not an offer to sell securities or the solicitation of any offer to buy securities, nor shall there be any offer or sale of securities in any jurisdiction in which such offer or sale would be unlawful. The securities mentioned in this document have not been and will not be registered in the United States under the Securities Act, and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There will be no public offer of the securities in the United States. This document includes forward-looking statements. By their nature, forward-looking statements are subject to inherent risks and uncertainties, both general and specific, and the predictions, forecasts, projections and other forward-looking statements contained in this document could be materially different from what actually occurs in the future. Although the Issuer believes that its expectations with respect to forward- looking statements are based on reasonable assumptions within the bounds of its knowledge of its business and operations at the date of this document, prospective investors are cautioned that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. BNP Paribas, London branch, Belfius Bank SA/NV and Bank Degroof Petercam SA/NV (or its officers, directors or employees) may, to the extent permitted by law, have a position in the securities of (or options, warrants or rights with respect to, or interest in the shares or other securities of) the Issuer. BNP Paribas, London branch, Belfius Bank SA/NV and Bank Degroof Petercam SA/NV may make a market or act as a principal in any transaction in such securities.
FOR MORE INFORMATION CONTACT: Valérie Kibieta Ellen Grauls Head of External Communication & Investor Relations Investor Relations Manager T +32 (0)2 373 60 36 T +32 (0)2 373 94 21 vkibieta@cofinimmo.be egrauls@cofinimmo.be www.cofinimmo.com