INVESTOR DAY. October 17 th 2018

Transcription

1 INVESTOR DAY October 17 th 2018

2 Introduction & Property SFL Portfolio 2018 INTERIM RESULTS 27 JULY

3 1 PARIS REGION MARKET 2018 (at September 30, 2018) UNPRECEDENTED PERFORMANCE SINCE THE BEGINING OF THE YEAR DESPITE A SLOW DOWN IN THE 3rd QUARTER INVESTMENT Source : JLL Examples of major transactions in 2018 Total investment volume : 12.8bn, (+33% vs N-1 / 2 x vs 10y average) 114 Champs-Elysées / Paris 8 KOSMO / Neuilly 35 transactions > 100m recorded, (63% of the total) Foreign investors accounted for 38% of transactions 5,500 sq.m. approx. 600m Buyer BVK 26,200 sq.m. 466m / 17,800 per sq.m. Altarea / Buyer SOGECAP Marché St Honoré / Paris 1 Métropolitain / Paris 17 Strong demand for Paris assets : 52% of the Paris region market ( 6.7bn of investment) Prime yields in the Paris CBD stable around a 3% floor LEASING v 16,800 sq.m. approx. 290m / 17,000 per sq.m. BNP / Buyer: CBRE GI 17,400 sq.m. approx. 287m/ 16,500 per sq.m JP Mor. / Buyer : DEKA 2018 take up at 1.9 million m² (best performance. since 2007) Focus on the Paris CBD, a market under pressure Vacancy rate at its lowest level:1.5% in the CBD (vs 2.2% for innercity Paris). Prime nominal rents rose to 810 /m² with slight decrease on rental incentives (16% on average) Office pipeline at 157,000 m² will be delivered in 2019, of which 35% have already been pre-let SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 3

4 2 OCCUPANCY RATE : 96,6%* (at September 30, 2018) Washington Plaza Paris 8 #Cloud.paris Paris 2 Cézanne Saint-Honoré Paris 8 Louvre Saint-Honoré Paris 1 100% occupied 100% occupied 92% occupied 100% occupied 98% occupied 100% occupied 100% occupied 100% occupied 100% occupied 99% occupied Edouard VII Paris Grenelle Paris Wagram Paris Champs-Elysées Paris 8 9 Percier Paris 8 90 Champs-Elysées Paris 8 *% Occupancy s/ surface in operation SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 4

5 3 MAIN LEASES SIGNED IN 2018 Washington Plaza / Paris 8 Cézanne Saint-Honoré / Paris 8 #Cloud.paris / Paris 2 Louvre Saint-Honoré / Paris 1 /sq.m % +4% vs ERV vs ERV 680 /sq.m % % +9% vs ERV +9% vs ERV vs ERV vs ERV 760+4% 678 vs ERV /sq.m /sq.m % +4% 770 vs vs ERV ERV % vs ERV Average Average Average 640 rent rent rent Rent Average Rent Rent Rent Rent Rent ERV Rent RentAverage Rent Rent tenant 1 tenant 2 tenant 3 Average enant tenant 1 2 tenant tenant 2 3 tenant 3ERV tenant 1 tenant ERV 2 n Jul. Jan Jul Jul Jul Jul Jul Jan sq.m sq.m sq.m Aug sq.m sq.m sq.m sq.m sq.m sq.m sq.m % Averagevs ERV 760 rent /sq.m % vs ERV /sq.m % vs ERV Average Average Rent Rent Rent Rent Rent Average ERV ERV tenant 1 tenant 1 tenant tenant 1 2 tenant ERV 2 Jan Jan Jan Aug Aug sq.m sq.m sq.m sq.m sq.m /sq.m /sq.m % +10% vs ERV vs ERV Average 740 Average Average rent rent rent +1% % vs ERV vs ERV Average rent Rent Rent tenant tenant 1 2 Aug Dec sq.m sq.m Average ERV 713 /sq.m % vs ERV % vs ERV Average rent Average Average Rent Rent ERV ERV tenant 1 tenant 1 Dec Dec sq.m sq.m Average650 rent 640 /sq.m % vs ERV 645 Average rent 620 Rent tenant Average 1 ERV Dec sq.m /sq.m /sq.m % +7% vs ERV +5% vs ERV vs ERV +4% vs ERV Rent tenant 1 Mar sq.m Average rent Rent Average RentAverage tenant 2 ERV tenant 3tenant ERV 1 Mar sq.m 640 May Mar sq.m1.000 sq.m SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 5

6 4 FULL VALUE CREATION : WASHINGTON PLAZA BUSINESS CASE Redesigning common areas Upgrading floorplates New services spaces dedicated to end-users New lobby (250 m²) and inner restaurant Green spaces, terraces and outside gardens Strong architectural identity Interior design Technical improvement Large, horizontal and divisible floorplates New design New pool of services : wellness, fitness, flexible business meeting rooms Community newspapermagazine Weekly Events USER S COMFORT AND EXPERIENCE / BEST WORKING ENVIRONMENT A strong rise in rental levels 100% occupied* Tenant 1 (6.700 sq.m) Tenant 2 (3.000 sq.m) Tenant 3 (2.000 sq.m) Tenant 4 (5.200 sq.m) Tenant 5 (2.000 sq.m) Tenant 6 (3.300 sq.m) 633 /sq.m 651 /sq.m 655 /sq.m 670 /sq.m 736 /sq.m 745 /sq.m 2018 *% Occupancy s/ surface in operation, at September 30, 2018 SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 6

7 Pipeline o o o 96 IENA 112 ZOLA LOUVRE SAINT HONORE 2018 INTERIM RESULTS 27 JULY

8 96 Iéna A VERY PREMIUM OFFICE REFERENCE IN PARIS INVESTOR DAY 8

9 1 VERY PREMIUM LOCATION IN THE HEART OF PARIS CBD A PRESTIGIOUS ADRESS : 83 Avenue Marceau AN IDEAL ACCESSIBILITY A GREAT EXPOSURE FROM THE ARC DE TRIOMPHE AND THE CHAMPS ELYSEES AVENUE SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 9

10 2 BRAND NEW ATTRACTIVE CONCEPT WITH CONTEMPORARY DESIGN THE FRENCH D. PERAULT SELECTED TO IMPLEMENT THE REDESIGN SFL PROJECT BEFORE AFTER SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 10

11 3 AN INDEPENDANT BUILDING WITH HIGH-END FULL OF SERVICES BEFORE AFTER sq.m* sq.m* sq.m* New spaces dedicated to services (cafeteria, business center ) Creation of an internal atrium to bring daylight until level -2 Fully Accessible to public Creation of a garden in the patio Best environmental performance *Office and services area SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 11

12 4 ENHANCE USER COMFORT IN HIGH PERFORMANCE WORKING SPACE Floor plate Optimization of floor plates to enhance communication and team project organisation 5th floor 6th floor Creation of large balconies on the 5th floor and a terrace on the 6th floor with a view on the «Arc de Triomphe» SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 12

13 5 ESTIMATED CALENDAR AND KEY INDICATORS Studies Works New tenant Aug 2017 Dec 2017 Dec 2018 Q Q Delivery of building permit Start of refurbishment works Submission of building permit Last tenants leaving the building Delivery Targeted pretax free CF IRR > 8% ROI 5% SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 13

14 112 Zola A NEW GENERATION CAMPUS IN THE PARIS «left» River side INVESTOR DAY 14

15 1 THE NEW ICONIC BUILDING IN THE WEST OF PARIS A LARGE SCALE REDEVELOPMENT PROJECT DESIGNED BY YMA AND JOUIN-MANKU BEFORE AFTER An obsolete building but : Ideally located in Paris 15 (5 min from Beaugrenelle shopping) Site big scale : major land plot (6.300 sq.m) Refurbishment of the existing building Connection with the building Convenient oudoor spaces Creation of a new iconic building a recognized contemporary architectural identity best standards for sustainability issues and certifications Today sq.m* sq.m* Future sq.m* * Including infrastructure and excluding car parks SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 17

16 BEFORE AFTER SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 17

17 2 VERY EFFICIENT OFFICE ASSET WITH A HIGH LEVEL OF SERVICES FLOORPLATE BASEMENT Large, horizontal and flexible floor plates with no structural constraints from m² up to m² Creation of many terraces Creation of an internal atrium to enhance natural light and comfort A building hosting full services : Business centre with auditorium Modular rooms Cafeteria and corporate restaurant SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 17

18 3 ESTIMATED CALENDAR AND KEY INDICATORS Studies Works New tenant Jan 2017 Aug 2017 Nov 2017 May 2018 Q Q Submission of building permit Delivery of building permit SFL acquisition SMA departure Start of refurbishment works Delivery Targeted IRR 8% ROI > 5% SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 18

19 SFL Document sans portée contractuelle ni valeur juridique 19

20 SFL Document sans portée contractuelle ni valeur juridique 20

21 Louvre Saint Honoré INVESTOR DAY 21

22 1 EXCEPTIONAL LOCATION IN THE HEART OF THE HISTORICAL PARIS SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 22

23 2 A MAJOR PARIS PROJECT TO CREATE A NEW DESTINATION Redevelopment of 16,000 sq.m. of retail space Prime contractor: B-Architecture Redevelopment of retail space: Lower ground/ground/upper ground floors CDAC retail redevelopment permit obtained: 15,000 sq.m. Building permit/modified building permit obtained Relocation of staff restaurant Studies Works New tenants Feasibility study/units vacated Preparatory/administrative/ marketing phases completed Redevelopment work SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 23

24 SFL PIPELINE OVERVIEW Asset 96 IENA 112 ZOLA LOUVRE St HONORE Permit Obtained Obtained Obtained Studies / Works /85m 105/115m 14-16m 40/45m CAPEX 13-15m 7-8m ERV Louvre Saint Honoré 112 Zola 96 Iéna SFL Document sans portée contractuelle ni valeur juridique INVESTOR DAY 24