w w w . q s h f . b e 28 November 2017 Antwerp AGENDA - - PDF document

Antwerp 28 November 2017 w w w . q s h f . b e

AGENDA 01

Who we are? Market of student housing Portfolio Financial Future

02 03 04 05

Proposal

06

01

Who we are?

Who we are?

AGENCY (BE) INVESTMENT (BENELUX) MANAGEMENT (BENELUX) CONSULTING (BENELUX)

Who we are?

AGENCY (BE) INVESTMENT (BENELUX) MANAGEMENT (BENELUX) CONSULTING (BENELUX)

Offices

• Antwerp
• Mechelen
• St-Niklaas

Who we are?

AGENCY (BE) INVESTMENT (BENELUX) MANAGEMENT (BENELUX) CONSULTING (BENELUX)

Offices

• Antwerp
• Mechelen
• St-Niklaas
• 2nd largest

independant Real Estate Manager

• 2.000.000 m² under

management

Who we are?

AGENCY (BE) INVESTMENT (BENELUX) MANAGEMENT (BENELUX) CONSULTING (BENELUX)

Offices

• Antwerp
• Mechelen
• St-Niklaas
• 2nd largest

independant Real Estate Manager

• 2.000.000 m² under

management

Quares Student Housing

Who we are?

• Non-listed investment vehicle – latest exit horizon 2026
• Return on Equity based upon capitalisation (no dividends)
• Student housing
• Geographical area: Belgium with 5 largest student cities
• Portfolio of € 56,3 mio
• Shareholders structure:
• www.qshf.be

1

15.0% 13.9% 70.8% Fam. Costermans KBC

+/- 180 shareholders

02

Market of student housing

International context

Bologna Process

Creation of 1 European higher education framework

• Mutual recognition of study periods
• Similar qualifications
• Uniform quality standards

“Higher education is becoming an worldwide business”

Number of international students

2014 4.1 m 2020 7.0 m

Globalisation of higher education

2

Belgium

Impact on globalisation for Belgium

2

Higher instream of international and European Students through:

• Higher transparency of Belgian study possibilities
• Higher mobility of European & international students;

+9,36% +40,83%

Source: In-house research Quares; Engelstalig

• nderwijs bezig aan forse
• pmars, De Tijd, 8 mei

2015, Bedrijven snakken naar internationaal

• nderwijs,

De Tijd, 8 mei 2015.

Belgium

Impact op globalisation for Belgium

2

… enabled by:

• Erasmus programs

Source: In-house research Quares; Focus on: What future for student mobility, Ross McQueen and David Crosier, Eurydice, 14/02/2017; Recordaantal Vlaamse studenten op Erasmus, Persbericht kabinet Vlaamse minister van Onderwijs Crevits, 12/08/2016; Onderwijs Vlaanderen. Dit is een grafiek op basis van de inkomende studenten die Erasmus volgen. Dit is geen netto-grafiek die rekening houdt met de studenten die buiten België gaan studeren via Erasmus. Noteer dat de contracten aangaande studentenhuisvesting mbt Erasmus studenten veelal een kortere termijn hebben dan 1 jaar (wat gebruikelijk is).

• Geographical situation
• Low life, housing and study

costs compared to other countries

• Agenda of Lisbon agreement

2020

• Tendancy to prolongation of

study period

Belgium

Increasing number of students

2

Belgium – evolution number of students

Source: In-house research Quares

Flanders – scattered landscape

Source: In-house research Quares; Centrumsteden in evolutie, editie 2016, Mercedes Van Volcem. Source: In-house research Quares.

Wallonia – scattered landscape

Source: In-house research Quares. Source: In-house research Quares; Centrumsteden in evolutie, editie 2016, Mercedes Van Volcem.

Brussels – scattered landscape

Source: In-house research Quares. Source: In-house research Quares; Centrumsteden in evolutie, editie 2016, Mercedes Van Volcem.

Student Housing in the press - Belgium

Source: VRT, 29 augustus 2017; De Tijd, 2 september 2017; De Tijd, 13 september 2017

Student Housing in the press - Antwerp

Source: De Standaard, 26 augustus 2017; De Tijd, 2 september 2017; De Standaard, 6 september 2017.

Student Housing in the press - Brussels

Source: De Standaard, 18 juli 2017; BRUZZ, 25 augustus 2017; VRT, 29 augustus 2017; De Tijd, 2 september 2017.

Student Housing in the press - Leuven

Source: De Standaard, 21 februari 2017; VETO, 27 februari 2017; De Standaard, 14 juli 2017; De Standaard, 26 augustus 2017; De Tijd, 17 augustus 2017; De Tijd, 2 september 2017.

Student Housing in the press – Ghent

Source: De Standaard, 19 april 2016; De Standaard, 23 september 2016; De Tijd, 2 september 2017; De Morgen, 20 september 2017.

Student Housing in the press – Liège

Source: La Meuse, 19 juli 2017; RTL, 21 augustus 2017; Le Soir, 29 augustus 2017

Student Housing in the press

Source: BRUZZ, 1 februari 2016; De Tijd, 9 juni 2016; De Standaard, 9 augustus 2016; Vlaams minister van Onderwijs Crevits, 12 augustus 2016; Catella, 9 maart 2017; JLL, 2017.

Belgium

Increasing number of students

2

75% enrollment rate

Source: Gross enrolment ratio by level of education, Unesco Institute for statistics, 2000-2015.

Belgium

Number of students in K

2

165 institutions of higher education – 610 locations

Source: In-house research Quares; Centrumsteden in evolutie, editie 2016, Mercedes Van Volcem.

5 universities , 13 high schools, 12 other institutions

• f higher education

4 universities, 39 high schools, 9 other institutions

• f high education

4 universities, 78 high schools, 1 other institution of higher education

Nr of Students in ‘000

Belgium

2

Focus on 5 cities

Source: In-house research Quares; Centrumsteden in evolutie, editie 2016, Mercedes Van Volcem.

Number of students in K

92 63

55 49 55

5 universities , 13 high schools, 12 other institutions

• f higher education

4 universities, 39 high schools, 9 other institutions

• f high education

4 universities, 78 high schools, 1 other institution of higher education

Nr of Students in ‘000

Focus on 5 cities

2

30% of locations covers 72% of students

Nr. % Possible Locations % Total nr. of students 437.000 100% 610 100% Total nr. of students in 5 cities 315.000 72% 180 30% Total nr. of students in 5 cities residing in rooms 150.000 48% Total nr. of rooms in 5 cities 104.000 69% Shortage 46.000 31%

Source: In-house research Quares; Centrumsteden in evolutie, editie 2016, Mercedes Van Volcem.

Belgium – Key Figures

2

Key Figures of 5 largest cities

KEY NUMBERS ACADEMIC YEAR ‘16-17

Antwerp Leuven Ghent Brussels Liège Number of students 55.086 55.206 62.772 91.940 48.855 Share foreign students 9,74% 9,73% 12,83% 26,57% 13,00% Number of students living at student rooms 7.500 40.000 37.500 55.164 9.354 Share students living at student rooms 13,62% 72,46% 56,74% 60% 17,54% Number of rooms 9.500 41.237 31.000 10.500 12.000 Tendency rooms Oversupply 2.000 Oversupply 1.237 Undersupply (6.500) Undersupply (44.664) Oversupply 2.646 Average price/month room € 335 € 355 € 326 € 446 € 320 studio € 410 € 460 € 427 € 520 € 359 appartement € 525 / € 495 € 600 € 544 Occupancy rate rooms 80% 97% 95% 99% 90% Quality label Antwerps kwaliteitslabel Kotlabel to be developed Br(ik-OK-label Verhuur licentie (Le Permis de location)

03

Portfolio

Portfolio

Portfolio today

3

Brussels

Buildings: 5 Rooms: 267 Value: € 29,6m

Antwerp

Buildings: 15 Rooms: 202 Value: € 19,1m

Liege

Buildings: 1 Rooms: 146 Value: € 7,6m

Evolution of the portfolio

3

Portfolio per 30/09/2017

14 280 16 243 24 541 29 630 7 430 7 590 7 590 19 100

10 000 20 000 30 000 40 000 50 000 60 000 31/12/2014 31/12/2015 31/12/2016 30/09/2017

EVOLUTION OF THE TOTAL PORTFOLIO (€ ‘000)

Brussels Liege Antwerp Leuven Gent

Portfolio Today

3

Actual portfolio in 3 cities

OR: Occupancy Rate Contract: Contract duration until 1st break ERV: Estimated Rental Value Rent: Actual Rent IV: Investment Value

53% 13% 34% Portfolio (based upon IV) Brussel Liege Antwerp

Rooms OR Contract Yearly Rent ERV Var. IV Market Yield Actual Yield

Nr. % Y € '000 € '000 €m € '000 % %

Brussels 267 99,3% 7,6 1 757 1 720 2,1% 29 630 5,81% 5,93% Liege 146 100,0% 0,6 544 570

• 4,6%

7 590 7,52% 7,17% Antwerp 202 100,0% 1,0 1 042 1 057

• 1,4%

19 100 5,53% 5,45% Total 615 99,7% 4,2 3 343 3 347

• 0,1%

56 320 5,94% 5,94%

Portfolio Today- Brussels

Brussels

267 99,3% 29,6 Mio 5,93%

Rooms Occupancy

• Inv. Value

Yield

3

> 94% of the passing rent for > 3 years / > 43% of passing rent for > 14 years

Rooms Yearly rent ('

000)

Rental Risk Break Date Client Operate d by Costs

Kothouse 21 103 QSH yearly Students Br(ik Yes Van Orley & Zavelput 86 765 Br(ik 2031 Br(ik Br(ik No Méridien 18 89 Usl-B 2020 Usl-B Usl-B Yes Ommegang 142 800 Usl-B 2020 Usl-B Usl-B Yes

267 1 757

w w w . q s h f . b e

Brussels, Ommegang

Finance Avenue 18 November 2017 w w w . q s h f . b e

Brussels, Ommegang

Portfolio Today - Liège

Liege

146 100% 7,6 Mio 7,17%

Rooms Occupancy

• Inv. Value

Yield

3

• One of the largest student

residences in Liège;

• Mainly for long and short

stays for Erasmus students;

• Originally a gift by the Ruhl

Family to the Belgian State – later on, acquired by private investor who completely renovated the building and rooms;

Portfolio Today - Antwerp

Antwerp

202 100% 19,1 Mio 5,45%

Rooms Occupancy

• Inv. Value

Yield

3

• Per 29/06/2017 – Deal with
• Fam. Costermans to acquire

total portfolio of € 35 mio in Antwerp

• Top locations nearby Antwerp

campus

Pipeline – doubling portfolio with …

Further acquisition of Room To Bloom Portfolio

• Inaugurated in 1976 as “First Immo”
• In 2002: split of “First Student

Housing”

• Change of name in 2010

“Room to Bloom”

• >20 years experience
• Family owned : managed by father and

daughter Costermans

• Confident and strong structure with lots
• f experience of Antwerp Student

housing market.

• 21 houses in Antwerpen centre, 282

student kots & 54 startersflats (of which 31 kamers in construction)

• Toplocations: Around Paardenmarkt and

Ossenmarkt, THE studentenlocation in Antwerp

• Declared Building permit stop for

studenthousing at this location

• 100 % Occupancy
• Real estate in very good condition

’green label’

• Experienced en competent team of 5

FTE’s (incl. handy man & cleaning)

Room to Bloom

Top Location in Antwerp

University of Antwerp AP High School

Room to Bloom

Portfolio

• Nr. of students residing in rooms (‘ 000)

55 49 92 55 63

Pipeline – and…

Development of further pipeline in existing and additional cities

04

Financial

Profit & Loss (‘000) - 30/06/2017

4

Consolidation per 30/06/2017 does not include figures for the Room To Bloom Transaction as Transaction did occur on 29/06/2017. 30/06/2017 30/06/2016 Variance 31/12/2016 1 2 1-2 3 Rental income & provisions (A)

A

857 820 36 1 684

• A. Turnover

847 817 29 1 648

• D. Other Income

10 3 7 36 Operational expenses (B)

B

• 1 092
• 1 083
• 9
• 2 262

Direct Costs General Services

• 200
• 311

111

• 738

Personnel Costs

• 50
• 52

2

• 116

Depreciations

• 673
• 656
• 17
• 1 294

Other Costs

• 169
• 64
• 105
• 115

Operational Result (A)+(B)

A+B

• 236
• 263

27

• 578

Depreciations

C

673 656 17 1 294 EBITDA

A+B+C

438 393 44 716 EBITDA % 51,08% 47,93% 42,50% Financial income

D

1 4

• 3

10 Financial charges

E

• 131
• 146

15

• 335

Result before taxes (EBT)

A+B+C+D+E

307 251 55 391 Income Taxes

F

Result

A+B+C+D+E+F

307 251 55 391 Financial charge 1,79% 2,33% 2,53%

Consolidated Statutory BS (not IFRS) meaning no restatement to investment value, expertised by CBRE

Balance sheet (‘000) - 30/06/2017

4

Consolidated Statutory BS (not IFRS) meaning no restatement to investment value, expertised by CBRE

30/06/2017 30/06/2016 31/12/2016 31/12/2015 ASSETS 1 2 3 4 Fixed assets 38 961 28 704 29 628 22 686

• I. Formation expenses

1 146 1 585 1 193 1 459

• II. Intangible fixed assets

34 7 12 8

• III. Tangible fixed assets

37 781 27 112 28 423 21 219 Current assets 2 326 5 315 5 507 4 091

• VII. Amounts receivable within 1 year

39 109 32 9

• IX. Cash at bank and in hand

2 244 5 174 5 441 4 059

• X. Deferred charges and accrued income

43 31 34 23 Total assets 41 288 34 018 35 135 26 776 LIABILITIES Equity 24 076 20 937 20 439 14 021 Minority Interests 1 Provisions and deferred taxes 495 Amounts payable 16 717 13 082 14 696 12 755

• VII. Amounts payable after more than 1 year

15 260 12 042 13 359 11 756

• VIII. Amounts payable within 1 year

1 347 907 1 254 854

• IX. Accrued charges and deferred income

110 133 83 145 Total liabilities 41 288 34 018 35 135 26 776 Consolidation per 30/06/2017 does include figures for the Room To Bloom Transaction as Transaction did occur on 29/06/2017.

Debt analysis - 30/06/2017

4

30/06/2017 30/06/2016 31/12/2016 31/12/2015 Amounts payable 16 717 13 082 14 696 12 755

• VII. Amounts payable after more than 1 year

15 260 12 042 13 359 11 756

• A. Financial debts

15 260 12 042 13 359 11 756 (i) Bond loans 11 382 10 266 (ii) Credit institutions 15 260 660 13 359 1 490

• VIII. Amounts payable within 1 year

1 347 907 1 254 854

Debt analysis - 30/06/2017

4

30/06/2017 30/06/2016 31/12/2016 31/12/2015 Amounts payable 16 717 13 082 14 696 12 755

• VII. Amounts payable after more than 1 year

15 260 12 042 13 359 11 756

• A. Financial debts

15 260 12 042 13 359 11 756 (i) Bond loans 11 382 10 266 (ii) Credit institutions 15 260 660 13 359 1 490

• VIII. Amounts payable within 1 year

1 347 907 1 254 854 30/09/2017 30/06/2017 30/06/2016 31/12/2016 31/12/2015 Calculation of Debt Ratio

• 1. Upgrade to Investment Value

Investment Value CBRE 56 320 42 433 30 167 32 131 23 673 Book Value 37 781 27 112 28 423 21 219 Variance 4 652 3 055 3 708 2 454

• Portfolio is valued 2 times a year by Real Estate Expert CBRE
• Valorisation @ Investment Value

Debt analysis - 30/06/2017

4

30/06/2017 30/06/2016 31/12/2016 31/12/2015 Amounts payable 16 717 13 082 14 696 12 755

• VII. Amounts payable after more than 1 year

15 260 12 042 13 359 11 756

• A. Financial debts

15 260 12 042 13 359 11 756 (i) Bond loans 11 382 10 266 (ii) Credit institutions 15 260 660 13 359 1 490

• VIII. Amounts payable within 1 year

1 347 907 1 254 854 30/09/2017 30/06/2017 30/06/2016 31/12/2016 31/12/2015 Calculation of Debt Ratio

• 1. Upgrade to Investment Value

Investment Value CBRE 56 320 42 433 30 167 32 131 23 673 Book Value 37 781 27 112 28 423 21 219 Variance 4 652 3 055 3 708 2 454

• 2. Debt Ratio

Restated Assets 56 320 42 433 30 167 32 131 23 673 Net Financial Liabilities 23 659 13 285 7 138 8 197 7 950 Debt ratio 42,0% 31,3% 23,7% 25,5% 33,6%

• Max. Debt Ratio

60,0% 60,0% Headroom Additional Investment Value 25 333 30 438 Headroom Decrease in Investment Value 16 889 20 292

Debt analysis - 30/06/2017

4

30/06/2017 30/06/2016 31/12/2016 31/12/2015 Amounts payable 16 717 13 082 14 696 12 755

• VII. Amounts payable after more than 1 year

15 260 12 042 13 359 11 756

• A. Financial debts

15 260 12 042 13 359 11 756 (i) Bond loans 11 382 10 266 (ii) Credit institutions 15 260 660 13 359 1 490

• VIII. Amounts payable within 1 year

1 347 907 1 254 854 30/09/2017 30/06/2017 30/06/2016 31/12/2016 31/12/2015 Calculation of Debt Ratio

• 1. Upgrade to Investment Value

Investment Value CBRE 56 320 42 433 30 167 32 131 23 673 Book Value 37 781 27 112 28 423 21 219 Variance 4 652 3 055 3 708 2 454

• 2. Debt Ratio

Restated Assets 56 320 42 433 30 167 32 131 23 673 Net Financial Liabilities 23 659 13 285 7 138 8 197 7 950 Debt ratio 42,0% 31,3% 23,7% 25,5% 33,6%

• Max. Debt Ratio

60,0% 60,0% Headroom Additional Investment Value 25 333 30 438 Headroom Decrease in Investment Value 16 889 20 292

Debt analysis - 30/06/2017

4

30/06/2017 30/06/2016 31/12/2016 31/12/2015 Amounts payable 16 717 13 082 14 696 12 755

• VII. Amounts payable after more than 1 year

15 260 12 042 13 359 11 756

• A. Financial debts

15 260 12 042 13 359 11 756 (i) Bond loans 11 382 10 266 (ii) Credit institutions 15 260 660 13 359 1 490

• VIII. Amounts payable within 1 year

1 347 907 1 254 854 30/09/2017 30/06/2017 30/06/2016 31/12/2016 31/12/2015 Calculation of Debt Ratio

• 1. Upgrade to Investment Value

Investment Value CBRE 56 320 42 433 30 167 32 131 23 673 Book Value 37 781 27 112 28 423 21 219 Variance 4 652 3 055 3 708 2 454

• 2. Debt Ratio

Restated Assets 56 320 42 433 30 167 32 131 23 673 Net Financial Liabilities 23 659 13 285 7 138 8 197 7 950 Debt ratio 42,0% 31,3% 23,7% 25,5% 33,6%

• Max. Debt Ratio

60,0% 60,0% Headroom Additional Investment Value 25 333 30 438 Headroom Decrease in Investment Value 16 889 20 292

Debt ratio of 42% 

 headroom for 25 Mio additional investments with debt  limited risk of decrease of value

Consolidated figures per 30/06/2017

4

0,3% 17,4% 0,0% 82,3% Quares KBC AM

• Fam. Costermans

Other

Before Deal Room to Bloom

KBC 0,3% 15,0% 13,9% 70,8% Quares KBC AM

• Fam. Costermans

Other

After Deal Room to Bloom

Costermans KBC

Shareholders (number of shares)

Capital Increases since incorporation (21/02/2013) 4

8 capital increases for > € 25,2 Mio

1 137 1 110 3 623 4 817 2 059 1 165 2 880 4 441 4 005 7/mrt/13 12/apr/13 24/apr/14 28/nov/14 13/mrt/15 13/jul/15 8/feb/16 30/mrt/16 29/jun/17 Today

Capital Capital Increase Capital

25.296

(€ 000)

5

Evolution of Net Asset Value

The Net asset value is based upon the Gross Investment Value (VON) for the property, i.e. that the value does not take into account that a possible buyer needs to pay possible registration duties whereby a possible lower price will be paid to Quares. The Net asset Value is also based upon Equity before substraction of non-amortised formation expenses

5

Evolution of Net Asset Value

11 427 € 11 459 € 11 870 € 11 984 € 12 108 € 12 064 € 12 453 € 13 084 € 9 500 € 10 000 € 10 500 € 11 000 € 11 500 € 12 000 € 12 500 € 13 000 € 13 500 € 14 000 €

30/06/2014 31/12/2014 30/06/2015 31/12/2015 30/06/2016 31/12/2016 30/06/2017 31/12/2017 The Net asset value is based upon the Gross Investment Value (VON) for the property, i.e. that the value does not take into account that a possible buyer needs to pay possible registration duties whereby a possible lower price will be paid to Quares. The Net asset Value is also based upon Equity before substraction of non-amortised formation expenses

5

Gross / Net Yield (for “C” shares)

31/12/17

VON FV

NAV (€) 13.084 12.567

Calculation of yield for ‘C’ shares

Gross (%) 5,77 4,86 Net (%) 5,42 4,51

1. VON: The Net asset value is based upon the Gross Investment Value (VON) for the property, i.e. that the value does not take into account that a possible buyer needs to pay possible registration duties whereby a possible lower price will be paid to Quares. The Net asset Value is also based upon Equity before substraction of non-amortised formation expenses 2. FV: The Net asset value is based upon the Fair Value (FV) for the property, i.e. that the value does take into account investment value minus 2,5% of the investment value (this is based upon the fact that a sample is taken in the market where a large % of het real estate transactions is done with shares (without registration duties) and a small % is done with registration duties. Net asset Value is also based upon Equity before substraction of non-amortised formation expenses. 3. The Gross and net yields calculated are based the % for the shares of the C category (based upon start price of € 10,000 per share) 4. Yields are calculated based upon the preferential distibution for the intial ‘A’ and ‘B’ shares

05

Future

Room to Bloom transaction

Acquisition process of Room To Bloom Portfolio

• PART 1: 100% acquisition of shares of SAGI NV

– Change of name to Room To Bloom NV – Financed with cash and capital increase fam. Costermans EUR 7,5 Mio

• PART 2: Per 29/09: 9 properties with 132 units were acquired

– Financed with cash and capital increase fam. Costermans EUR 11,6 Mio

• PART 3 & 4: Further acquisition of Room to Bloom portfolio

16,2 Mio

• Blindestraat 4,6,8
• Gratiekapelstraat 2,4 and 6
• Paardenmarkt 67,70, 93 en

100

• Rijnpoortvest 19-21
• Rodestraat 2, 15, 17 en 31

DONE DONE TO GO

Further Room To Bloom …

5

2.000 rooms before 2026

• Further growth in Brussels, Liege and Antwerp
• Entry in new cities: Leuven and Ghent

483 615 759 2 000

30/06/2017 30/09/2017 After R2B 2026

06

Proposal

Proposal – Capital Increase

6

Main characteristics of capital increase

Description Capital Increase

• Max. 10 Mio €
• Max. nr. of shares

761 Inscription Period To be communicated shortly Emission price € 13.137,25

• Min. Number of shares

8 Distribution costs 2%

• Min. ticket

€ 105.100

Thank you