q1 2015: keep on delivering - amazon web services · fonciÈre des rÉgions strategic positioning a...

Q1 2015:

Keep on delivering

FONCIÈRE DES RÉGIONS

> KEY EVENTS OF THE PERIOD

> OPERATING PERFORMANCE

> KEY TAKEWAYS

Q1 2015 2

CONTENTS

Key events of the period

Q1 2015 3


STRATEGIC POSITIONING

A €10.7 billion1 GS portfolio (€17.3 billion at 100%) on buoyant markets

1 focus and 2 diversifications

4

62%

18%

13%

7%

€10.7 bn GS

Q1 2015

Offices (France 43%; Italy: 19%) > Sound fundamentals; market depth > Attractive yield; value-creating pipeline

Residential Germany > Sound economy; buoyant market

> Organic growth and development potential

Hotels/Service sector > Leadership position; impressive track record

> Attractive market; partnership logic

Non-strategic

Recognised, responsive local platforms

KEY EVENTS OF THE PERIOD

Vélizy-Meudon, Paris Region Residential, Hamburg

1 At end-march 2015 post signed operations


MAJOR AGREEMENT WITH TELECOM ITALIA

Q1 2015 5

An agreement leading to 3 main improvements on asset and cash-flow quality

€1.7 bn of assets

(€0.8 bn GS)

2nd largest tenant (10% of the GS rental income)

6.7-year average firm lease

maturity

Reap the benefits of the partnership strategy

Milan

8.4% of the

portfolio GS

€117 m of rental income

(€57 m GS)

1 Improved cash-flow visibility

2 Improved asset quality

3 Reduction of

Telecom Italia exposure

> +9 years of average firm lease maturity to 15 years

> 6.9% discount on the rents on average

> €38 million capex program on city center assets

(alongside with Telecom Italia)

> €126 million disposal of secondary assets

to Telecom Italia, at last appraisal values

Naples


Portfolio rented to Telecom Italia


FRANCE OFFICES: PURSUANCE OF THE PIPELINE

Q1 2015 6

Delivery of Astrolabe in Euromed center, Marseille

> 14,000m²; €38 million (€19 million GS); 35% let, at target rents (€250/m²)

Inauguration of Steel, Paris 16th district on May 6th

> Refurbishment of 3,700m²; €36 million of investments; €600/m² target rents

Foundation stone of Silex 1: construction of 10,600m²

> Key location: at the heart of La Part-Dieu

Largest business district in Lyon of 1 million of m² of offices; vacancy rate <4%

> Delivery in 2016: €47 million; €280/m² of target rents

Committed pipeline

€518 million

62% Pre-let

71% for 2015

deliveries

Yield on cost > 7%

Value creation > 10%

€309m delivered in

2015

Silex 1, Lyon

Silex 1, Lyon



Already €457 million of acquisitions signed (€266 million GS)

> High-quality portfolios; prime locations; 25-30% reversionary potential; privatization potential

> Pursuit of the strengthening in Berlin (€182 million) and in Dresden and Leipzig (€37 million)

1,486 units; €1,710/m² on average; 5.5% yield

> First investments in Hamburg: €239 million (€138 million GS)

High potential market driven by positive economic and demographic fundamentals

2,088 units; €1,860/m²; 5.5% average yield

DELIVERING IN GERMAN RESIDENTIAL

Q1 2015 7

€3.2 billion (€1.9 billion GS) of assets


Rating ImmoScout24

Investments in the best locations of high rental growth potential cities

Berlin Hamburg

> Localizations (blue spots) of the €182 million and €239 million investments in Berlin and Hamburg


HOTELS: STRENGTHENING THE LEADERSHIP POSITIONING

Q1 2015 8


Acceleration of acquisitions in Europe: €277 million including €210 million in Germany

> 22 B&B hotels in the largest cities in Germany: €128 million (€51 million GS), 18-year leases, 6.4% yield

> 2 Motel One hotels in Berlin-Mitte and Frankfurt-Airport: €34 million (€15 million GS), 20-year leases

> First investments in management contracts: €104 million (€18 million GS)

€48 million in Germany with Louvre Hotels Group

€56 million development with Accor at Paris-Charles-de-Gaulle Airport

Major reinforcement in Hotels

> Acquisition of 14.6% of Foncière des Murs (FDM): Foncière des Régions controls (as limited partner) and holds 43% of FDM

> This transaction represents an investment of €432 million of assets

> Positive impacts:

Hotels/Service Sector represents 13% of the portfolio vs 9% at end-2014

High and secure profitability (100% occupancy rate; 94% operating margin; firm lease maturity of 6.7 years)

B&B Hotel, Paris Motel One, Berlin Accor, Paris Region Motel One, Berlin


STABLE AND STRONG SHAREHOLDER STRUCTURE

Q1 2015 9

Success of the capital increase

> €255 million to finance ongoing investments

> Participated in by all the large shareholders of Foncière des Régions

> 3,917,722 new shares (i.e. 6.2% of the share capital)

Best-in-class governance, strengthened by the General Meeting

> Nomination of Delphine Benchetrit as new independent Board Member

> Upholding the rule 1 share = 1 vote

> Adoption of all the resolutions with an average approval rate of 97%

> 57% of independent members vs 50% in 2014; 36% of women members vs 29%;

29% of international members

7% 28%

8%

13%

44%

ACM

Groupe Crédit Agricole

Public

Covea

Delfin

Shareholder structure post capital

increase

Supporting the Group’s development and strategy


Delphine Benchetrit

Operating performance

Q1 2015 10


Q1 2015 REVENUES: +1.1% AT €132.9 MILLION

Q1 2015 11

Rental income

(€m) Change

Change on like-for-like

basis

Occupancy rate

Residual firm terms

of leases post Telecom Italia

agreement

Offices - France 57.0 -7.4% +0.3% 96.3% 5.1 years

Offices - Italy 27.2 -7.2% -2.9% 95.4 %1 10.2 years

Offices 84.2 -7.3% -0.8% 96.0% 6.6 years

Residential Germany 26.8 +10.1% +1.3% 97.7% N/A

Hotels/Service Sector 18.1 +55.5% +1.1% 100 % 6.7 years

Other (French Resi.) 3.7 N/A N/A N/A N/A

Total 132.9 +1.1% -0.1% 96.9% 6.6 years

Positive indexation

+4.1 years of maturity

-0.4% excl. Turin 2014 vacancy

+2.9% in Berlin, Dresden and Leipzig

+1 year with Telecom Italia

Indexation: +0.7%

Occupancy rate: -0.7%

Renewals: -0.1%

1 Core portfolio

+1.5% in Hotels including +2.2% for Accor portfolio

Our diversifications outperform on rental growth

OPERATING PERFORMANCE

> Increase in the firm lease maturity: +1 year to 6.6 years with Telecom Italia agreement

> Italy: negative impacts of Turin 2014 vacancy (disposal to the municipality under discussions)

Key takeaways

Q1 2015 12


KEY TAKEAWAYS FROM Q1 2015

Q1 2015 13

Strengthening of our cash-flow visibility

Telecom Italia agreement: +1 year at 6.6 years firm lease maturity for Foncière des Régions

Strengthening of our strategic positioning

€1.5 billion (€1.0 billion GS) of investments already signed including €1.2 billion of acquisitions

Dynamic investment activity in Hotels and German Residential

Resistance in our operating indicators

Stable like-for-like rents; high occupancy rate

A good start to the year

Motel One, Berlin Motel One, Berlin Via de Pretis, Naples Residential, Hamburg Silex 1, Lyon

KEY TAKEAWAYS


AGENDA

Q1 2015 14

H1 2015 results: 23 July 2015

FONCIÈRE DES RÉGIONS 15

(€ million)

100% Group Share

Q1 2014 Q1 2015 Change

(%) Q1 2014 Q1 2015

Change (%)

Change (%) LFL

% of rent

Offices France 64.7 60.3 -6.9% 61.6 57.0 -7.4% 0.3% 43%

Offices Italy 57.6 56.3 -2.2% 29.3 27.2 -7.2% -2.9% 20%

Total Offices 122.3 116.6 -4.7% 90.9 84.3 -7.3% -0.8% 63%

Hotels and Service sector 45.4 46.5 2.3% 11.7 18.1 55.5% 1.1% 14%

Residential Germany 41.1 44.5 8.3% 24.4 26.8 10.1% 1.3% 20%

Total Strategic activities 208.8 207.6 -0.6% 127.0 129.2 1.8% -0.1% 97%

Other 7.7 6.1 -21.0% 4.6 3.7 -19.0% na 3%

Total rents 216.5 213.7 -1.3% 131.6 132.9 1.1% -0.1% 100%

Total rent does not take into account rental income from Logistics (€4.9 million), reclassified in 2014 as Discontinued Operations

Q1 2015 TURNOVER

Q1 2015


Paris 30, avenue Kléber 75116 Paris Tel.: +33 1 58 97 50 00

Contact Paul Arkwright Tel.: +33 1 58 97 51 85 Mobile: +33 6 77 33 93 58 [email protected]

16

q1 2015: keep on delivering - amazon web services · fonciÈre des rÉgions strategic positioning a...

Documents