A unique Way to invest in Apartments

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Griffin Doyle
6 years ago
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1 A unique Way to invest in Apartments

2 Topics 1. Company profile & strategy 2. Belgian residential market 3. Key achievements in Stock & Conclusion 2

3 Topics 1.Company profile & strategy 2. Belgian residential market 3. Key achievements in Stock & conclusion 3

4 Company profile RREC (SIR/GVV) listed on Euronext since 1999 Offering yearly increasing dividend The specialist in residential real estate Focus on Belgium 40 professionals managing the full cycle of property Portfolio of over 450 mio 4

A strategy based on four pillars - Managing the full cycle of real estate Maximisation of capital gains Continuous rejuvenation Regular «cleaning up» Acquisitions

5 A strategy based on four pillars - Managing the full cycle of real estate Maximisation of capital gains Continuous rejuvenation Regular «cleaning up» Acquisitions of big sites Advantage of exit tax Acquisitions in shares Service to tenants Continuous refurbishment Acquisitions at cost Life Cycle Cost Efficiency of buildings 5

6 A strategy based on four pillars - Managing the full cycle of real estate Investor Unique positioning on the market Active disposal process Developer 6

7 A strategy in line with a world full of changes Cities Sustainability Housing Connectivity Mobility 7

8 Topics 1. Company profile & strategy 2. Belgian residential market 3. Key achievements in Stock & conclusion 8

9 Context of dynamic demographic growth Bron: FOD Economie 9

10 Context of dynamic demographic growth Growth of population period (11,9 mio): Brussels: +10 % Flanders: + 5% Wallonia: + 7% Number of households period (5,3 mio): Brussels: +9 % Flanders: + 10% Wallonia: + 13% 10

11 Belgian residential market 2016 Investment Market Still cheaper credits (- 15 à -50 bp) Less return on alternative investments Growth of population Strong activity : record year with +8,2 % (2015) 115,000 transactions Prices rising (especially for new apartments) 11

12 Belgian residential market in 2016 Evolution of the average price per house per region, in EUR Source: Statbel Evolution of the average price per apartment per region, in EUR Source: Statbel 2016 Evolution Evolution Evolution Evolution Flanders 226,850 2,6% 9,1% Wallonia 156,300 1,2% 6,7% Brussels 404,400 0,4% 13,9% Belgium 210,800 3,6% 8,9% Flanders 227,200-1,5% 10,0% Wallonia 173,600 1,9% 7,6% Brussels 233,100 1,7% 7,0% Belgium 220,500 0,0% 9,1% Only for transactions submitted to registration fees. Regarding houses: mansions, villas and rooming houses not included 12

13 Brussels Letting Market Cf. Observatiecentrum van huurprijzen 2016 (Brussels) Sample of 5,000 units out of 300,000 Average rent : 710 EUR/month (709 in 2015) Median rent: 660 EUR/month (650 in 2015) 13

14 Topics 1. Company profile & strategy 2. Belgian residential market 3. Key achievements in 2017 Portfolio Acquisitions (Re)Development Property Management Sales Key Figures & Financial Results 4. Stock & conclusion 14

15 Portfolio 15

16 Portfolio properties in operation 16

17 Portfolio spread over Belgium & The Netherlands 17

18 Acquisitions 18

19 Acquisitions 2017 Development Projects Jourdan (Saint-Gilles) 5,800 m² 69 parking spaces Office building to be converted into a residential building 55 units Provisional acceptance of works mid-2020 Immediate expected yield of +/- 5.25% 19

20 Acquisitions 2017 Existing buildings Port Zélande Strenghtening the position in the Center Parcs Port Zélande Acquisition of 7 additional cottages & 40 apartments Leased for a period of 15 years Initial rent of 43,000 indexed annually 20

Acquisitions 2017 Existing buildings Investers SA

August 31 st 27 apartments, 4 stores and 2 offices spread

shops), Schaerbeek (10 apartments) and Saint-Gilles (9

21 Acquisitions 2017 Existing buildings Investers SA Acquisition of all the shares of company Investers SA on August 31 st 27 apartments, 4 stores and 2 offices spread over 3 different buildings in Uccle (8 apartments, 3 shops), Schaerbeek (10 apartments) and Saint-Gilles (9 apartments, 2 offices, 1 retail space) Uccle Saint-Gilles Schaerbeek 21

22 Acquisitions 2017 Existing buildings Libertys, Auderghem VOP transferred the ownership of a building located Place de l Amitié in Auderghem Acquisition on September 13 th 40 apartments, 41 basements and 40 parking spaces 22

23 Development projects Brunfaut- Molenbeek 93 apartments Demolition works starting in the coming weeks Delivery expected Q

24 (Re)Developments 24

25 Development projects The Inside 95 units Building accepted on June 1 st 2017 First tenants since July 1 st 2017 So far, more than 60% of the apartments have been rented 25

26 Development projects The Pulse - Molenbeek 96 units (93 apartments & 3 houses) Delivery in 3 phases: Building C : November 2017 Buildings A&B : January 2018 Own development Urban renewal 26

27 Development projects Reine Astrid, Kraainem 40 residential units Retail/offices units on ground floor Delivery expected H

28 Development projects MTC2, Woluwe-Saint-Lambert Building permit introduced expected Q apartments 28

29 Refurbishment projects Scheldevleugel,Oudenaarde 95 units 80 studios, 15 apartments 75 garage boxes Renovation of the first faze (empty apartments) finished 29

30 Refurbishment projects Léopold & Saint-Hubert, Liège Works started in both buildings Léopold Saint-Hubert 30

31 (Re)Development Already a solid track record : 400 new units & 36 renovated Name # units Delivery Description Galerie de l Ange New apartments in existing building of portfolio Trône New Building - Iconic location Fully let The Link Office reconversion- Student House Fully let Ghlin Refurbishment of existing houses Fully let Arch View Refurbishment of existing building Fully let The Horizon Office reconversion New way of living Fully let The Inside 95 Q Office reconversion 50% let 31

32 (Re)Development Coming soon 330 new units & 135 renovated Name # units Delivery Description Célidée 96 Q Q Urban renewal Scheldevleugel Oudenaarde Saint-Hubert 51 - Liège Reine Astrid - Kraainem 40 / 95 Q / Asset Management - Value add strategy Asset Management urban renewal New building Leopold - Liège Asset Management urban renewal Brunfaut New building - Urban Renewal MTC New building Jourdan New building 32

33 Property Management 33

34 Property Management A unique expertise on the market 34

35 Sales 35

sales of the buildings Mélèzes (Woluwe-Saint- Lambert) Birch house (Etterbeek)

36 Disposal process Maximization of capital gains Regular «cleaning up» of less performing assets in the portfolio Continuous rejuvenation of the portfolio Ongoing sales of the buildings Mélèzes (Woluwe-Saint- Lambert) Birch house (Etterbeek) Bosquet-Jourdan (Saint-Gilles) Jardins de la Cambre (Ixelles). Jardin de la Cambre Bosquet Jourdan 36

37 Financial Results CONSOLIDATED KEY RESULTS (IN ) 1 2 From 1/1/2017 to From 1/1/2016 to 30/09/ /09/2016 Net rental result Property result Operating result before the portfolio result Portfolio result - Result on sales (distributable capital gain) Changes in fair value Financial result - Financial result excluding changes in fair value of financial assets and liabilities Changes in fair value of financial assets and liabilities 3 Net result Average number of shares Net result of core activities Net result of core activities per share (4) Distributable result Distributable result per share (4) On 30/09/2017 On 30/12/2016 Net value per share

38 Topics 1. Company profile & strategy 2. Key achievements in Belgian residential market 4. Stock & conclusion 38

39 Evolution of the stock price & dividend 39

40 Comparison return 40

41 The HIB team without whom all of this wouldn t be possible 41

42 Thank you for your attention! Visit our stand n 106! 42

retail estates - analyst meeting 22 may 2018 Analyst meeting 22 May 2018

retail estates - analyst meeting 22 may 2018 Analyst meeting 22 May 2018 1 retail estates - analyst meeting 22 may 2018 2 retail estates - analyst meeting 22 may 2018 retail estates 1 a 20 year overview