YEAR RESULTS ANALYST CALL PRESENTATION 2016 HALF-YEAR HIGHLIGHTS - - - PowerPoint PPT Presentation

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YEAR RESULTS ANALYST CALL PRESENTATION 2016 HALF-YEAR HIGHLIGHTS - - - PowerPoint PPT Presentation

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2016 HALF- YEAR RESULTS ANALYST CALL PRESENTATION 2016 HALF-YEAR HIGHLIGHTS - Financial results confirming FY forecast: 1H 2016 1H 2015 FY 2016 FY 2015 FY 2014 Per share (EUR) Actual Actual Forecast Actual Actual Net current result

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SLIDE 1

2016 HALF- YEAR RESULTS ANALYST CALL PRESENTATION

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SLIDE 2

2016 HALF-YEAR HIGHLIGHTS

  • Financial results confirming FY forecast:
  • 2016 forecasted gross dividend: 5.50 EUR per ordinary share
  • Continued investment programme:
  • Acquisition of 2 healthcare assets in Germany: 39 million EUR
  • Agreements for the extension of 3 healthcare assets in Belgium & France: 16 million EUR
  • Acquisition of an of
  • ffi

fice build buildin ing in Brussels: 31 million EUR

  • Realised investments since the May 2015 capital increase: 171 million EUR

(healthcare: 120 million EUR; offices: 47 million EUR)

  • Pipeline of committed investments for the period 01.07.2016 – 31.12.2018 : 308 million EUR

(healthcare: 117 million EUR; offices: 179 million EUR)

  • Conditional sale of the Souverain/Vorst 25 office building (Brussels Decentralised):
  • Property transfer at the earliest at the departure of the current tenant AXA (August 2017)
  • Reconversion by Cofinimmo of the Souverain/Vorst 23 building into residential

Per share (EUR) 1H 2016 Actual 1H 2015 Actual FY 2016 Forecast FY 2015 Actual FY 2014 Actual Net current result (excl. IAS 39) - Group share (EPRA Earnings) 2.86 3.35 6.19 6.46 6.70 Result on the portfolio - Group share 0.58

  • 0.38

n/a 0.32

  • 2.06

Net result (incl. IAS 39) - Group share 1.65 3.04 n/a 5.23

  • 2.93

EPRA NNNAV 90.96

  • n/a

90.93 88.66 2

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SLIDE 3

COMPANY PROFILE

Wo Woluw uwe e 58 off ffice e building ng – Brus usse sels (BE): : Cofi

  • fini

nimmo

  • head

adqua uarters

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SLIDE 4

TWO COMPLEMENTARY CORE SEGMENTS

Long-term presence in both core segments & strong internal expertise HEALTHCARE REAL ESTATE - driven by demography

  • Acquisitions in new markets (Netherlands & Germany)
  • Greenfield projects in more mature markets (Belgium & France)
  • Further diversification per country, per medical specialty and per
  • perator

OFFICES - driven by economics

  • Comprehensive & pro-active local operating platform
  • Renovation program to upgrade quality
  • Reconversion to alternative uses (residential, healthcare)
  • Arbitrage within a portfolio kept above critical size

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SLIDE 5

PORTFOLIO AT 30.06.2016

Portfolio breakdown by segment (in fair value): Portfolio breakdown by country (in fair value):

Belgium 73% France 16% Netherlands 8% Germany 3% Healthcare real estate 44% Offices 38% Property of distribution networks 17% Others 1%

Portfolio fair value: 3,234 million EUR

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SLIDE 6

SHAREHOLDER STRUCTURE

Number of shares Percentage

  • f total

shares Crédit Agricole Group 1,058,265 5.0% Cofinimmo Group 46,499 0.2% Others 19,925,984 94.7% Total 21,030,748 100.0%

Declared shareholders: Shareholder structure (estimate at 30.06.2016):

Retail investors 11.0% Private banking 14.4% Insurance companies 11.6% Pension funds 1.7% Sovereign fund 1.1% Investment funds 18.7% Own shares 0.2% Unknown 41,3% 6

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SLIDE 7

STOCK PERFORMANCE

1H 2016 Total return of the Cofinimmo share: +11 %

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SLIDE 8

PROPERTY PORTFOLIO

Me Medi dical al off ffice buildi ding ng Stijp jp-Z Z – Eind ndhov

  • ven

en (NL NL)

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SLIDE 9

LONG AVERAGE LEASE MATURITY

Long residual lease length -> high visibility of income

Average lease maturity (in years):

19.6 4.7 13.4 26.6 4.0 14.3 5.8 10.2 5 10 15 20 25 30 Healthcare BE Healthcare FR Healthcare NL Healthcare DE Offices Pubstone (AB Inbev) Cofinimur I (MAAF) Total 9

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SLIDE 10

RESILIENT OCCUPANCY, QUALITY TENANTS

Occupancy rate: Top 10 tenants (as % of rental income - LHS) and lease maturity (in years - RHS):

99.2% 89.6% 98.6% 94.9% 0% 20% 40% 60% 80% 100% Healthcare real estate Offices Property of distribution networks Total 15.5% 13.7% 10.9% 6.1% 5.4% 4.2% 3.7% 3.6% 3.1% 2.0% 5 10 15 20 25 0% 5% 10% 15% 20% 25% 10

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SLIDE 11

STABLE PORTFOLIO VALUATION

Gross/net yields: Like-for-like portfolio growth vs. 31.12.2015 (in fair value):

6.2% 8.1% 6.5% 7.0% 6.1% 6.6% 6.2% 6.3% 0% 2% 4% 6% 8% Healthcare Offices Distribution networks Total Gross yield Net yield 2.7%

  • 2.4%

1.1% 0.4%

  • 3,0%
  • 2,0%
  • 1,0%

0,0% 1,0% 2,0% 3,0% Healthcare Offices Distribution networks Total

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SLIDE 12

HEALTHCARE SEGMENT

Arcus us nursi sing g home – Brus ussel els (BE)

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SLIDE 13

STRONG GROWTH AMBITIONS

GERMANY Care & cure market (skilled nursing homes, rehabilitation clinics) NETHERLANDS Care & cure market (care of elderly or disabled, acute care clinics, medical

  • ffice buildings)

BELGIUM Care market (skilled nursing homes: greenfield projects) FRANCE Care market (skilled nursing homes, revalidation & psychiatric clinics)

Targeted initial rental yields > 5.5 %

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SLIDE 14

HEALTHCARE PORTFOLIO AT 30.06.2016

Fair value of healthcare portfolio: 1,419 million EUR Strategic diversification by country and care specialty

  • > no dependency on one single social security system

Portfolio breakdown by country (in fair value): Portfolio breakdown by care specialty (in fair value):

Belgium 56% France 28% Germany 7% Netherlands 9% 66.8% 12.9% 6.9% 4.0% 3.5% 2.8%2.6%0.5% Skilled nursing facilities Revalidation clinics Wellness Psychiatric clinics Elderly care clinics Assisted living Specialised clinics Disabled care facilities 14

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SLIDE 15

ACQUISITIONS IN GERMANY & THE NETHERLANDS

Residence Calau Brandenburg (Germany) Clinic Kaiser Karl Bonn (Germany)

Acquisition of an operational revalidation clinic Surface area: 15,500 m² Investment: 30.0 million EUR Operator: Eifelhöhen-Klinik AG Lease: 25 years – “double net” Acquisition* of an newly built skilled nursing facility Surface area: 4,600 m² Investment: 9.1 million EUR Operator: M.E.D. Gesellschaft für Altenpflege mbH Lease: 25 years – “double net”

Initial rental yields: between 6.0 % and 8.0 %

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Acquisition of a care centre for elderly people, under construction Surface area: 2,140 m² Investment: 3.4 million EUR Operator: Martha Flora Lease: 20 years - “double net”

Bavel Centre Bavel (Netherlands)

* Event after 30.06.2016.

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SLIDE 16

GREENFIELD PROJECTS IN BELGIUM & FRANCE

Residence Zonnewende Aartselaar (Belgium) Residence Millegem Ranst (Belgium)

Delivery of the extension works of a skilled nursing facility Extra surface area: 1,440 m² Extra beds: 29 Investment: 2.7 million EUR Operator: Armonea Lease: 27 years – NNN Agreement for the renovation and extension of a rehabilitation clinic Extra surface area: +2,214 m² Extra beds: +60 Investment: 6.8 million EUR Operator: Inicea Lease: 12 years – NN

Domaine de Vontes Esvres-sur-Indre (France)

Agreement for the renovation and extension of a skilled nursing facility Extra surface area: +3,500 m² Extra beds: +13 service flats Investment: 6.6 million EUR Operator: Senior Living Group Lease: 20 years – NNN

Residence De Nootelaer Keerbergen (Belgium)

Agreement for the renovation and extension of a skilled nursing facility Extra surface area: +500 m² Extra beds: +2 Investment: 2.7 million EUR Operator: Senior Living Group Lease: 27 years – NNN

Initial rental yields: between 6.0 % and 6.5 %

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SLIDE 17

OFFICE SEGMENT

Off ffice e buildi ding g Gu Guimard d 10-12 12 - Brus ussel els (BE) E)

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SLIDE 18

OFFICE PORTFOLIO AT 30.06.2016

Fair value of office portfolio: 1,246 million EUR Mainly Brussels CBD and decentralised areas 23 % let to public tenants

Portfolio breakdown by district (in fair value): Portfolio breakdown by tenant type (in fair value):

Brussels CBD 34% Brussels Decentra- lised 40% Brussels Periphery/ Satellites 11% Antwerp 6% Other regions 9% BE public sector 13%

  • Intl. public

sector 10% Others 77% 18

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SLIDE 19

ACQUISITION IN STRATEGIC LOCATION

Arts/Kunst 46 Brussels CBD

Surface area: 11,516 m² Investment: 31 million EUR Average occupancy: 83 % Average residual lease term: 5.5 yrs Rental yield: 6.2 % Rental yield at 100 % occupancy: 7.5 %

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SLIDE 20

RENOVATIONS IN STRATEGIC LOCATIONS

  • Guimard 10-12 (10,800m²)
  • Brussels CBD
  • Renovation of offices
  • End of works: 3Q2015
  • Budget of works: 14.8 million EUR
  • 100 % let, mainly to Bank Degroof Petercam
  • Belliard 40 (20,000m²)
  • Brussels CBD
  • Demolition of current property and

construction of new building

  • BREEAM certificate ‘Excellent’ aimed
  • Expected end of works: 3Q2017
  • Budget of works: 44 million EUR
  • Marketing underway

Office building Belliard 40 – Brussels (BE) Projected situation after works Off ffice e buildi ding g Gu Guimard 10 10-12 12 – Brus ussels (BE)

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SLIDE 21

RECONVERSIONS TO MAXIMIZE CAPITAL RECOVERY

  • Woluwe 106-108 (7,000m²)
  • Brussels Decentralized
  • Reconversion into nursing home
  • Signature of 27-year lease with

healthcare operator Vivalto

  • Planning permission under progress
  • Expected end of works: 3Q2017
  • Budget of works: 13 million EUR
  • Yield on cost: 5.88 %

Nursing home Woluwe 106-108 – Brussels (BE) Projected situation after works

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SLIDE 22

REDEVELOPMENT OF AXA SITE

  • Brussels Decentralized
  • AXA to vacate site in August 2017
  • Tenreuken (9,000 m²)
  • Residential development
  • Apartments will be put up for sale
  • Planning permission under progress
  • Souverain/Vorst 25 (38,500 m²)
  • Sales agreement signed with foreign

government, subject to prior administrative approvals

  • Souverain/Vorst 23 (+/- 20,000 m²)
  • Reconversion into residential
  • Apartments will be put up for sale

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SLIDE 23

Nu Nursi sing ng home De Ni Nieuw euwe Seigne gneur urie – Rumbek beke (Bel elgium um)

FINANCIAL RESULTS

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SLIDE 24

POSITIVE LIKE-FOR-LIKE RENTAL GROWTH

Like-for-like rental growth breakdown by segment: Like-for-like rental growth breakdown by transaction type:

* Gross Rental Revenues

GRR* in MEURGRR* in MEUR Growth LFL Growth 30.06.2016 30.06.2015 Healthcare 43.5 42.9 1.4% 0.9% Offices 38.3 38.7

  • 1.0%

0.2% Distribution networks 18.8 18.9

  • 0.2%

0.1% Others 1.0 1.0 1.2% 1.2% TOTAL 101.7 101.5 0.2% 0.5% 1.1% 1.5%

  • 1.8%
  • 0.3%

0.5%

  • 3%
  • 2%
  • 1%

0% 1% 2% 3% Indexation New lettings Departures Renegociations Total

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SLIDE 25

RESULTS ON 30.06.2016

Net current result (excl. IAS 39 impact*) – Group share: 2.86 EUR/share Result on portfolio – Group share: 0.58 EUR/share Net result (incl. IAS 39 impact*) – Group share: 1.65 EUR/share

* The IAS 39 impact includes the costs related to the restructuration of hedging instruments and the revaluation of financial instruments. ** Number of shares: 20,984,249 as at 30.06.2016 versus 18,783,949 as at 30.06.2015 (+11,7 %)

(in MEUR) Per share (in EUR)** 30.06.2016 30.06.2015 30.06.2016 30.06.2015 Operating result 79.8 86.3 3.80 4.59 Net current result (excl. IAS 39) - Group share 60.0 63.0 2.86 3.35 IAS 39 impact

  • 37.5

1.2

  • 1.79

0.07 Net current result - Group share 22.5 64.1 1.07 3.42 Result on portfolio - Group share 12.1

  • 7.1

0.58

  • 0.38

Net result - Group share 34.6 57.1 1.65 3.04 25

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SLIDE 26

EPRA FINANCIAL KPI’S ON 30.06.2016

Conversion of IFRS NAV to EPRA (NN)NAV: 26

30.06.2016 30.06.2015 EPRA Earnings 2.86 3.35 EPRA Diluted Earnings 2.84 3.35 30.06.2016 31.12.2015 EPRA Net Asset Value (NAV) 94.61 93.34 EPRA Adjusted Net Asset Value (NNNAV) 90.96 90.93 EPRA Net Initial Yield (NIY) 6.0% 6.0% EPRA Vacancy Rate 4.9% 5.2% EPRA Cost ratio (cost of vacancy excluded) 21.9% 17.7% (in MEUR) Per share NAV per the financial statements 1,787.5 85.18 Effect of exercise of options, convertibles and other equity interests 229.6 Fair value of financial leases 65.9 EPRA NNNAV 2,083.0 90.96 Fair value of financial instruments 117.7 5.14 Deferred tax in goodwill

  • 34.1
  • 1.49

EPRA NAV 2,166.5 94.61

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SLIDE 27

Souver erai ain/Vor Vorst 24 off ffice buildi ding ng - Brus ussel els (BE)

FINANCIAL RESOURCES

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SLIDE 28

SOLID DEBT METRICS

Average cost of debt and debt maturity: Breakdown of debt (in MEUR):

30.06.2016 31.12.2015 Debt ratio 42.1% 38.6% Average debt (in MEUR) 1,272.2 1,459.0 Average cost of debt 2.7% 2.9% Average debt maturity (in years) 4.6 5.3 ICR (excl. hedging restructuration) 4.50 4.14

4.2% 4.1% 3.9% 3.4% 2.9% 2.7% 3.3 3.8 3.8 3.4 5.3 4.6 3 3,5 4 4,5 5 5,5 6 2% 3% 3% 4% 4% 5% 5% 2011 2012 2013 2014 2015 1H2016 Average cost of debt Average debt maturity (in years) 483 35% 426 30% 197 14% 300 21% Bank facilities Non convertible bonds & long-term commercial paper Convertible bonds Short-term commercial paper & others

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SLIDE 29

WELL-SPREAD DEBT MATURITIES

Debts maturing in 2016 -> 2018 + 60 % of debts maturing in 2019 already refinanced

Debt maturities & refinancing at 30.06.2016: 29

173 171 274 211 139 445 100 204 100 146 10 200 20

100 200 300 400 500 600 700 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Refinanced Bank facilities Capital markets

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SLIDE 30

INTEREST RATE HEDGING

Over 70 % of debt is fixed or hedged until 2020

Notional amount of hedged debt (in MEUR) and weighed average strike rate: 30 1.44% 1.44% 2.35% 2.33% 1.96% 2.33% 2.40% 0% 1% 2% 3% 200 400 600 800 1.000 1.200 2016 2017 2018 2019 2020 2021 2022 Notional amount (in MEUR) Weighted average rate

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SLIDE 31

Off ffice e buildi ding g Souver erain/Vor Vorst 25 – Brus ussel els (BE)

INVESTMENT PIPELINE & FORECAST

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SLIDE 32

2016-2018 INVESTMENT TARGET

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Target by end 2018:

+308 million EUR of committed investments (pipeline) +400 million EUR of acquisitions

  • 150 million EUR of divestments

308 MEUR Committed 250 MEUR Uncommitted

Breakdown of portfolio at 30.06.2016 2016-2018 Committed pipeline (in MEUR) 2016-2018 potential scenario: Uncommitted acquisitions (in MEUR) 2016-2018 potential scenario: Uncommitted disposals (in MEUR) Breakdown of portfolio at 31.12.2018 Healthcare real estate 44% 117 400

  • 50

50% Offices 39% 179

  • 100

35% Acquisitions 60 Refurbishment 76 Reconversion 43

  • 100

Others 18% 12 15% Total 100% 308 400

  • 150

100%

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SLIDE 33

2016-2018 INVESTMENT PIPELINE

Healthcare real estate: 116.7 million EUR, of which:

  • Belgium: 29.9 million EUR (incl. reconversion of Woluwe 106-108)
  • France: 10.3 million EUR
  • Netherlands: 31.0 million EUR
  • Germany: 45.5 million EUR (incl. acquisition of Calau nursing home)

307.7 million EUR of committed investments for the period 01.07.2016 – 31.12.2018

Offices: 179.1 million EUR, of which:

⁻

Arts/Kunst 19H: 21.3 million EUR

⁻

Belliard 40: 44.0 million EUR

⁻

Tenreuken: 17.8 million EUR 50 6 23 38 67 8 44 60 1 3 5 3 20 40 60 80 100 120 140 Q3 2016 Q4 2016 2017 2018 Healthcare real estate Offices Property of distribution networks 33

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SLIDE 34

2016 FORECAST

Actual 2014 Actual 2015 Forecast 2016 EPS 6.70 EUR 6.46 EUR 6.19 EUR DPS 5.50 EUR 5.50 EUR 5.50 EUR Number of shares 17,971,494 19,888,379 20,980,112 Pay-out ratio 82.1 % 85.1 % 88.9 % Debt ratio 48.1 % 38.6 % < 50 %

Net current result (excl. IAS 39 impact): 6.19 EUR/share Gross dividend: 5.50 EUR/ordinary share Target debt ratio < 50 % Cost of debt < 3 %

2016 Forecast based on committed pipeline 2016-2018, excluding new acquisitions

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Souver erai ain/Vor Vorst 24 off ffice buildi ding ng – Brus ussel els (BE)

APPENDICES

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SLIDE 36

APPENDIX 1: PROPERTY OF DISTRIBUTION NETWORKS

  • Pubstone (2007): Sale & leaseback of pubs/restaurants portfolio with AB InBev
  • 779 pubs in BE and 243 pubs in NL
  • 1 tenant : AB InBev – no direct relationship with pub operators
  • Fixed rents, indexed to CPI
  • Initial net yield: 6.15% - Initial lease length: 23 years
  • At 30.06.2016:

⁻ Fair value: 422.3 million EUR ⁻

Gross yield: 6.5 %

⁻

Occupancy rate: 98.9 %

⁻

56 pubs sold since acquisition, with average realized gain of 29 %

  • Cofinimur I (2011): Sale & leaseback of insurance branches portfolio with MAAF
  • 280 insurance branches in FR
  • 1 tenant : MAAF – no direct relationship with agency operators
  • Fixed rents, indexed to index of commercial leases (ILC)
  • Initial net yield: 6.18% - Initial lease length: 9.7 years
  • At 30.06.2016:

⁻ Fair value: 119.9 million EUR ⁻

Gross yield: 6.3 %

⁻

Occupancy rate: 97.3 %

⁻

9 agencies sold since acquisition, with average realized gain of 2.7%

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SLIDE 37

APPENDIX 2: BALANCE SHEET

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SLIDE 38

APPENDIX 3: INCOME STATEMENT

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SLIDE 39

APPENDIX 4: SHAREHOLDER CALENDAR

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SLIDE 40

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

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