H1 2015 RESULTS ANALYSTS CALL Aspr pria Uh Uhlenh enhor orst st - - PowerPoint PPT Presentation

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H1 2015 RESULTS ANALYSTS CALL Aspr pria Uh Uhlenh enhor orst st Hambu burg (DE) TABLE OF CONTENTS - Company Strategy - Portfolio - Healthcare Segment - Office Segment - Financial Resources - H1 2015 Earnings - Outlook and Guidance -

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SLIDE 1

H1 2015 RESULTS ANALYSTS CALL

Aspr pria Uh Uhlenh enhor

  • rst

st– Hambu burg (DE)

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SLIDE 2

TABLE OF CONTENTS

  • Company Strategy
  • Portfolio
  • Healthcare Segment
  • Office Segment
  • Financial Resources
  • H1 2015 Earnings
  • Outlook and Guidance
  • Appendices

Q1 2015 RESULTS – ROADSHOW PRESENTATION 2

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SLIDE 3

H1 2015 HIGHLIGHTS

  • Pursuing growth in healthcare in line with strategy:
  • €82 million of new investments in Healthcare segment in H1 2015
  • Healthcare segment represents now 43.4% of the total portfolio vs. 39.5% for offices
  • Office segment is resilient :
  • Total lettings/renegotiations of 24,000m² of offices representing €16.3 million of

guaranteed revenues

  • Reconversions of offices in residential are completed and 100% of the units sold
  • Timely access to capital markets:
  • Private Placement of bonds for €190 million
  • Successful capital increase with preferential rights for €285.4 million
  • Optimizing financial structure:
  • Debt ratio down to 43%
  • Cost of debt reduced to 2.8% and average debt maturity increased to 4.5yr
  • S&P rating upgrade from BBB- to BBB (stable outlook)
  • Solid financial results:
  • Net current result (excl. IAS 39) of €3.35 (vs. €3.39 at 30.06.2014)
  • Current cash flow per share: €3.06 (+12% compared to 2014)

H1 2015 RESULTS – ANALYSTS CALL 3

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SLIDE 4

COMPANY STRATEGY

Nu Nursi sing ng Home e Orchi hidée ée – Ittre e (BE)

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SLIDE 5

STRATEGIC FOCUS

Healthcare real estate in Europe

  • Acquisitions in new

markets (namely the Netherlands & Germany)

  • Greenfield projects in

more mature markets (Belgium and France)

  • Further diversification

per country, per medical specialty and per operator Driven by demography Offices in Brussels

  • Comprehensive &

pro-active local

  • perating platform
  • Renovation

programs to upgrade the quality

  • Reconversion to

alternative usages

  • Arbitrage within a

portfolio kept above critical size Driven by economics

H1 2015 RESULTS – ANALYSTS CALL 5

Managed by a 115 people strong team with a deep knowledge of markets and a constant commitment to efficiency

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SLIDE 6

RISK PROFILE

11 YEARS

Average lease duration

43%

Healthcare real estate

43%

Debt ratio

95.5%

Occupancy rate

24%

Office space let to public sector H1 2015 RESULTS – ANALYSTS CALL 6

Moderate Risk Profile & Sustainability of earnings

Li Living ngst ston

  • ne

e I buildi ding ng - Brus usse sels (BE)

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SLIDE 7

PORTFOLIO

Nu Nursi sing ng home e Damiaa aan – Tremel elo

  • (BE)
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SLIDE 8

PORTFOLIO AT 30.06.2015

Fair value of total portfolio: €3,274 million

H1 2015 RESULTS – ANALYSTS CALL 8

Portfolio breakdown by segment: Portfolio breakdown by location:

Healthcare real estate 43% Offices 40% Property of distribution networks 16% Others 1% Belgium 76% France 15% Netherlands 7% Germany 2%

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SLIDE 9

AVERAGE RESIDUAL LEASE LENGTH

Average residual lease length of 11 years, well above European peers

H1 2015 RESULTS – ANALYSTS CALL 9

21 6 13 29 5 15 7 11 5 10 15 20 25 30 35 Healthcare BE Healthcare FR Healthcare NL Healthcare DE Offices Pubstone Cofinimur I Total

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SLIDE 10

PORTFOLIO YIELDS AT 30.06.2015

H1 2015 RESULTS – ANALYSTS CALL 10

Stable yields across segments in H1 2015 Gross yield: 6.9%/Net yield: 6.4%

6.3% 7.7% 6.6% 6.9% 6.3% 6.4% 6.3% 6.4% 0% 1% 2% 3% 4% 5% 6% 7% 8% Healthcare Offices Distribution networks Total Gross yield Net yield

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SLIDE 11

PORTFOLIO GROWTH & VALUATION

H1 2015 RESULTS – ANALYSTS CALL 11

Portfolio investment value:+2.3% Portfolio valuation on a LFL basis:-0.3%

0.7%

  • 1.4%
  • 0.1%
  • 0.3%
  • 2,0%
  • 1,5%
  • 1,0%
  • 0,5%

0,0% 0,5% 1,0% Healthcare Offices Distribution networks Total

Unrealized gain/loss on a LFL basis

3.329 98 20 5 6 3.406 3.000 3.200 3.400 3.600 Portfolio investment value at 31.12.2014 Investments Divestments Writeback

  • f lease

payments sold Change in investment value Portfolio investment value at 30.06.2015

Evolution of portfolio investment value (in M€):

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SLIDE 12

OCCUPANCY RATE

H1 2015 RESULTS – ANALYSTS CALL 12

Stable occupancy rate: 95.5% (vs. 95.2% at 31.12.2014) Occupancy rate for Brussels office market at 30.06.2015*: 89.9%

99.2% 90.8% 98.5% 95.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Healthcare real estate Offices Property of distribution networks Total

* Source: DTZ

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SLIDE 13

MAIN TENANTS

H1 2015 RESULTS – ANALYSTS CALL 13

Top 10 tenants: 69% of rental income 1st tenant: KORIAN-MEDICA Group Public sector > 10% of rental income

15.5% 13.8% 9.7% 5.8% 5.4% 4.7% 4.2% 3.7% 3.6% 2.9% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

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SLIDE 14

HEALTHCARE SEGMENT

CONTINUOUS GROWTH IN LINE WITH STRATEGY

Reval alidat ation

  • n clini

nic – Baden den Baden den (DE)

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SLIDE 15

THE NETHERLANDS

  • Acquisition of two medical office centers
  • Assets located in Almere (2,380m²) and

Voorschoten (1,320m²)

  • Investment: €5.7 million
  • Operator: DC Groep
  • 15 year “triple net” lease
  • Initial yield: 7.45%
  • Acquisition of a facility for disabled

people(Lopik)

  • New construction (2,883m²)
  • Investment: €3.3 million
  • Operator: Philadelphia Zorg
  • 15 year “double net” lease
  • Initial yield: 6.85%

H1 2015 RESULTS – ANALYSTS CALL 15

Me Medi dical al offi fice center er - Almer ere (NL NL)

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SLIDE 16

GERMANY

  • Acquisition of two high-end sport and

wellness centres

  • Assets located in Hamburg (7,800m²) and

Hanover (10,000m²)

  • Investment: €53.6 million
  • Operator: Aspria Group
  • 30 year “double net” lease
  • Initial yield: 7.6%
  • Sport and wellness facilities located in

prestigious locations

  • Extension of healthcare operations in

Germany with high quality partner

H1 2015 RESULTS – ANALYSTS CALL 16

Aspr pria Uh Uhlenh enhor

  • rst

st- Hambu burg (DE) Aspr pria Ma Masc schs hsee- Hanov

  • ver

er (DE)

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SLIDE 17

PROJECTS DELIVERIES IN BELGIUM

  • Den Brem:
  • Nursing home located in Rijkevoorsel
  • Extension: +36 beds
  • Operator: Armonea
  • 27year “triple net” lease
  • Delivered in Q1 2015
  • Investment: €3 million
  • Initial yield: 6.30%
  • Maison Saint Ignace:
  • Nursing home located in Brussels
  • Renovation
  • Operator: Senior Assist
  • 27year “triple net” lease
  • Delivered in Q2 2015
  • Investment: €0.8 million
  • Initial yield: 6.28%

H1 2015 RESULTS – ANALYSTS CALL 17

Den Brem- Rijkev evoorsel el (BE)

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SLIDE 18

OFFICE SEGMENT

RESILIENT OFFICE ACTIVITY IN H1 2015

Off ffice e buildi ding Garden den Square– Anver ers (BE)

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SLIDE 19

OFFICE PORTFOLIO ACTIVITY

  • Letting activity
  • During the first 6 months of 2015, Cofinimmo signed leases for 24,000m² of office

space, i.e. €16.4 million of guaranteed revenues, net of rent-free periods.

  • Occupancy rate at 90.8% (above Brussels office market)
  • Divestment
  • Sale of the Parabole building– Brussels CBD
  • Price agreed of €5.5 million, above investment value

H1 2015 RESULTS – ANALYSTS CALL 19

Good resilience of the office portfolio 90.8% occupancy rate (vs. 90.4% at 31.12.2014) Arbitrage opportunities

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SLIDE 20

OFFICE RECONVERSIONS PROJECTS

  • Reconversion of obsolescent offices into other

uses, offering better capital recovery than renovations as offices

  • Reconversion in residential (24,000 sqm)
  • Reconversion works for Woluwe 34 and

Livingstone I buildings have been delivered in H1 2015

  • 100% of the residential units sold
  • Proceeds received in H1 2015: €14 million
  • Reconversion in healthcare property (7,000 sqm)
  • Reconversion of Woluwe 106-108 office building

into a nursing home

  • Investment: €13 million
  • Signature of a 27 years long lease with the

healthcare operator Vivalto

  • Planning permission under progress
  • Yield on cost (book value + works): 5.88%
  • Expected delivery date: Q3 2017

H1 2015 RESULTS – ANALYSTS CALL 20

Woluwe 34 – Brussels (BE)

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SLIDE 21

FINANCIAL RESOURCES

CONTINUOUS BALANCE SHEET OPTIMISATION

Woluwe 34 – Brussels (BE)

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SLIDE 22

TIMELY ACCESS TO CAPITAL MARKETS (1)

H1 2015 RESULTS – ANALYSTS CALL 22

  • Private Placement for €190 million:
  • 7yr bond
  • Fixed coupon of 1.93%

In M€:

Bonds

100 50 140 50 190 173 191 50 100 150 200 250 300 2009 2010 2011 2012 2013 2014 2015 Non convertible Convertible

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SLIDE 23

TIMELY ACCESS TO CAPITAL MARKETS (2)

H1 2015 RESULTS – ANALYSTS CALL 23

  • Successful capital increase with preferential rights for €285.4 million:
  • Issue price : €95 per share
  • Dividend entitlement from 13.05.2015
  • 1 new share for 6 existing shares
  • 84.3% taken by existing shareholders
  • Market capitalisation after the rights issue: > €2 billion

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

Equity

In M€:

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SLIDE 24

FINANCIAL DEBT

Q1 2015 RESULTS – ROADSHOW PRESENTATION 24

Debt breakdown (€1,464 million):

  • Diversified sources of funding with debt

capital market (69%) and credit facilities (31%)

  • Proactive management of credit lines:
  • Extension of several credit lines for a total

amount of €297 million

  • €959.9 million available under committed

credit lines

  • Rating upgrade by S&P from BBB- to BBB

for the long term and from A3 to A2 for the short term (stable outlook)

457 31% 410 28% 390 27% 207 14% Bank facilities Non convertible bonds & LT commercial paper Convertible bonds Short-term commercial paper &

  • thers
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SLIDE 25

SOLID FINANCIAL RATIOS

H1 2015 RESULTS – ANALYSTS CALL 25

Decreasing average cost of debt & increased average debt maturity Debt ratio < 50%

30.06.2015 31.12.2014 Debt ratio 43% 48% Average debt (in MEUR) 1,463.8 1,593.4 Average cost of debt 2.8% 3.4% Average debt maturity (in years) 4.5 3.4 ICR (excl. hedging restructuration) 3.81 3.26

52% 50% 49% 48% 43% 38% 40% 42% 44% 46% 48% 50% 52% 54% 2011 2012 2013 2014 H1 2015 In yr In % 4,2% 4,1% 3,9% 3,4% 2,8% 3,3 3,8 3,8 3,4 4,5 2 2,5 3 3,5 4 4,5 5 2,0% 2,5% 3,0% 3,5% 4,0% 4,5% 2011 2012 2013 2014 H1 2015 Average cost of debt Average debt maturity

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SLIDE 26

DEBT MATURITY & HEDGING STRUCTURE

H1 2015 RESULTS – ANALYSTS CALL 26

  • Active management of debt

maturities:

  • 2015 and 2016 debt maturities

are 100% refinanced and 68% of 2017 have already been refinanced

  • Average debt maturity increased

to 4.5yr (vs. 3.4yr at 31.12.2014)

  • Optimization of hedging

structure:

  • Cancellation of floors options for

€200 million (strike: 3%)

  • Over 70% of debt is hedged or

fixed until 2019

Debt Maturities Hedging structure

137 353 267 74 100 350 105 100 92 50 191 146 10 200 50 100 150 200 250 300 350 400 450 2015 2016 2017 2018 2019 2020 2021 2022 Refinanced Bank facilities Capital markets

0% 20% 40% 60% 80% 100% 2015 2016 2017 2018 2019 2020 2021 2022 Average fixed debt Average hedged debt Average floating debt

In MEUR

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SLIDE 27

H1 2015 EARNINGS

Livingstone I – Brussels (BE)

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SLIDE 28

RENTAL GROWTH

Gross Rental Revenues growth: +3% Like-for-like Rental growth*: -0.4%

H1 2015 RESULTS – ANALYSTS CALL 28

Like-for-like rental growth breakdown:

GRR= Gross Rental Revenues

*The negative like-for-like rental growth for Pubstone (pubs/restaurants) and Cofinimur I (insurance branches) is mainly due to the fact that some assets have been vacated and are currently in the process of being sold.

GRR in MEUR GRR in MEUR Growth LFL Growth H1 2014 H1 2015 Offices 38.7 38.7 0.0%

  • 0.8%

Healthcare 39.7 42.9 8.1% 0.3% Pubstone 15.1 15.0

  • 0.9%
  • 0.5%

Cofinimur I 4.0 3.9

  • 3.2%
  • 3.6%

Others 1.0 1.0 0.8% 0.8% TOTAL 98.6 101.5 3.0%

  • 0.4%

0.5% 1.2%

  • 1.7%
  • 0.4%
  • 2,0%
  • 1,0%

0,0% 1,0% 2,0% Indexation new lettings departures renegociations

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SLIDE 29

RESULTS ON 30.06.2015¹

H1 2015 RESULTS – ANALYSTS CALL 29

Net current result (excl. IAS 39 impact) – Group share: €3.35 per share Net current cash flow: €3.06 per share: +11.7% compared to 2014 NAV in fair value: €85.39 per share (vs. €80.24 on 31.12.2014)²

¹ Average number of shares as of 30.06.2015: 18,783,949 (vs. 17,978,603 at 30.06.2014) ² after distribution of the dividend for the year 2014

* The IAS 39 impact includes the costs related to the restructuration of the hedging instruments and the revaluation of the financial instruments.

(in MEUR) Per share (in EUR) 30.06.2015 30.06.2014 30.06.2015 30.06.2014 Operating result 86.3 90.3 4.59 5.02 Net current result (excl. IAS 39) - Group share 63.0 61.0 3.35 3.39 IAS 39 impact* 1.2

  • 100.8

0.07

  • 5.60

Net current result - Group share 64.1

  • 39.7

3.42

  • 2.21

Result on portfolio

  • 7.1
  • 21.7
  • 0.38
  • 1.21

Net result - Group share 57.1

  • 61.5

3.04

  • 3.42
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SLIDE 30

EPRA FINANCIAL KPI’S ON 30.06.2015¹

H1 2015 RESULTS – ANALYSTS CALL 30 30.06.2015 31.12.2014 EPRA Earnings 3.35 6.70 EPRA Net Asset Value (NAV) 93.08 96.08 EPRA Adjusted Net Asset Value (NNNAV) 91.06 92.01 EPRA Net Initial Yield (NIY) 5.99% 6.06% EPRA Vacancy Rate 4.59% 4.93% EPRA Cost ratio (cost of vacancy excluded) 15.57% 15.93% (in MEUR) Per share NAV per the financial statements 1,791.3 85.4 Effect of exercise of options, convertibles and other equity interests 467.7 5.7 EPRA NNNAV 2,259.1 91.1 Fair value of financial instruments 86.6 3.5 Deferred tax

  • 36.5
  • 1.5

EPRA NAV 2,309.2 93.1 ¹ Average number of shares as of 30.06.2015: 18,783,949 (vs. 17,978,603 at 30.06.2014)

EPRA NAV: €93.1 (vs. €96.1 at 31.12.2014)

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SLIDE 31

OUTLOOK & GUIDANCE

INVESTMENT PIPELINE IN LINE WITH STRATEGY

Belliard 40 – Brussels (BE)

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SLIDE 32
  • € 118 million office refurbishments for

2H2015 – 2017, mainly:

  • Guimard 10-12: €4 million
  • Belliard 40: €44 million
  • Arts 19H: €21 million
  • Sovereign 23-25: €11 million
  • Ten Reuken: €24 million (for sale)
  • €104 million new construction, extensions &

renovations of healthcare properties, mainly:

  • Belgium: €47 million (including reconversion of

Woluwe 106-108)

  • France: €6 million
  • Netherlands: €42 million
  • > 50% of pipeline prelet

H1 2015 RESULTS – ANALYSTS CALL 32

UPDATE ON INVESTMENT PIPELINE

104 118 9 20 40 60 80 100 120 140 Healthcare real estate Offices Property of distribution networks 25 16 43 19 6 5 41 67 1 2 4 3 20 40 60 80 100 Q3 2015 Q4 2015 2016 2017 Healthcare real estate Offices Property of distribution networks

€231 million Investment Pipeline for 2H2015-2017 In CBD

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SLIDE 33

OUTLOOK

H1 2015 RESULTS – ANALYSTS CALL 33

  • Forecast:
  • 2015 EPS forecast (excluding IAS39): €6.26
  • 2015 Dividend forecast: €5.5 (gross)
  • Guidance:
  • Pursuing growth in Healthcare real estate

with combined presence in Belgium, France, the Netherlands and Germany

  • 65% of 2015 operating result from

alternative assets, 35% from offices

  • 2015 cost of debt < 3%
  • Target debt ratio < 50%

Actual 2014 2015 Forecast published in February 2015 2015 Forecast after rights issue¹ EPS €6.70 €6.85 €6.26 DPS €5.50 €5.50 €5.50 Pay-out ratio 82.1% 80.3% 87.9% Debt ratio 48.1% 48.6% 41.7% ¹ Forecast after rights issue calculated on the basis of 3,004,318 new shares entitled to share in the result

  • f the period as from 12.05.2015 (vs.€5.93 as from 01.01.2015).

Solid financial & operational results Balance sheet strengthened Investment capacity : > €500 million over 2015-2017

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SLIDE 34

APPENDIX: INCOME STATEMENT

H1 2015 RESULTS – ANALYSTS CALL 34

  • A. NET CURRENT RESULT (in KEUR)

30.06.2015 30.06.2014 Rental income, net of rental-related expenses 99,592 97,355 Writeback of lease payments sold and discounted (non-cash) 5,107 11,333 Taxes and charges on rented properties not recovered

  • 3,071
  • 1,839

Redecoration costs, net of tenant compensation for damages

  • 430
  • 482

Property result 101,198 106,367 Technical costs

  • 1,518
  • 2,644

Commercial costs

  • 399
  • 462

Taxes and charges on unlet properties

  • 2,300
  • 2,126

Property result after direct property costs 96,981 101,135 Property management costs

  • 6,921
  • 7,230

Property operating result 90,060 93,905 Corporate management costs

  • 3,787
  • 3,589

Operating result before result on the portfolio 86,273 90,316 Financial income (IAS 39 excluded) 2,909 2,844 Financial charges (IAS 39 excluded)

  • 21,431
  • 30,533

Revaluation of derivative financial instruments (IAS 39) 1,418

  • 100,892

Share in the result of associated companies and joint ventures 230 699 Taxes

  • 2,628
  • 162

Net current result 66,771

  • 37 728

Minority interests

  • 2,622
  • 2 012

Net current result – Group share 64,149

  • 39 740
  • B. RESULT ON THE PORTFOLIO (in KEUR)

30.06.2015 30.06.2014 Gains or losses on disposals of investment properties and other non-financial assets 1,956

  • 22,236

Changes in the fair value of investment properties

  • 8,740
  • 572

Share in the result of associated companies and joint ventures 128 Other result on the portfolio

  • 210

1,137 Result on the portfolio

  • 6,994
  • 21,543

Minority interests

  • 89
  • 192

Result on the portfolio – Group share

  • 7,083
  • 21,735
  • C. NET RESULT (in KEUR)

30.06.2015 30.06.2014 Net result 59,777

  • 59,271

Minority interests

  • 2,711
  • 2,204

Net result – Group share 57,066

  • 61,475
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SLIDE 35

APPENDIX: BALANCE SHEET

H1 2015 RESULTS – ANALYSTS CALL 35

ASSETS (in KEUR) 30.06.2015 31.12.2014 Non-current assets 3,476,610 3,410,050 Goodwill 118,356 118,356 Intangible assets 605 659 Investment properties 3,270,791 3,195,773 Other tangible assets 394 411 Non-current financial assets 2,785 10,933 Finance lease receivables 77,516 78,018 Trade receivables and other non-current assets 38 38 Participations in associated companies and joint ventures 6,125 5,862 Current assets 93,426 88,962 Assets held for sale 3,305 3,410 Current financial assets 284 498 Finance lease receivables 1,912 1,618 Trade receivables 23,271 24,781 Tax receivables and other current assets 14,697 17,505 Cash and cash equivalents 24,843 17,117 Accrued charges and deferred income 25,114 24,033 TOTAL ASSETS 3,570,036 3,499,012 SHAREHOLDERS’ EQUITY AND LIABILITIES (in KEUR) 30.06.2015 31.12.2014 Shareholders’ equity 1,858,598 1,608,965 Shareholders’ equity attributable to shareholders of the parent company 1,791,343 1,541,971 Capital 1,124,258 963,067 Share premium account 504,210 384,013 Reserves 105,809 247,562 Net result of the financial year 57,066

  • 52,671

Minority interests 67,225 66,994 Liabilities 1,711,438 1,890,047 Non-current liabilities 1,153,113 1,303,250 Provisions 17,162 17,658 Non-current financial debts 1,037,577 1,148,023 Other non-current financial liabilities 62,893 102,041 Deferred taxes 35,481 35,528 Current liabilities 558,325 586,797 Current financial debts 426,245 473,499 Other current financial liabilities 24,542 24,698 Trade debts and other current debts 88,092 59,850 Accrued charges and deferred income 19,446 28,750 TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 3,570,036 3,499,012

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SLIDE 36

DISCLAIMER

  • This presentation is directed to financial analysts and institutional investors and

is not to be considered as an incentive to invest or as an offer to acquire Cofinimmo shares. The information herein is extracted from Cofinimmo annual and half-yearly reports and press releases but does not reproduce the whole content of these documents. Only the French annual and half-yearly reports and press releases form legal evidence.

  • For more information contact:

Valérie Kibieta Ellen Grauls Head of External Communication Investor Relations Manager & Investor Relations T +32 (0)2 373 94 21

  • T +32 (0)2 373 60 36

egrauls@cofinimmo.be vkibieta@cofinimmo.be www.cofinimmo.com

H1 2015 RESULTS – ANALYSTS CALL 36