Investor Presentation First Half Results

Transcription

1 Investor Presentation 2010 First Half Results 1

2 Disclaimer This document has been prepared by ANF Immobilier SA ( ANF Immobilier ) solely for the use of presentations made to investors or analysts. ANF Immobilier makes no representations or warranties that the information contained herein is accurate, correct or complete. The information set out herein is provided as of the date of the presentation and ANF Immobilier is under no obligation to keep current the information contained in this presentation. However, this information is subject to completion and/or revision and ANF Immobilier has the right to change the content hereof, in its sole discretion, at any time without prior notice. This document may contain information regarding current or future transactions as well as pro forma information to show ANF Immobilier as it would be after said transactions have been completed. These forward-looking statements are provided for information purposes only and are not guarantees of future performance. No information provided on this document constitutes, or should be used or considered as, an offer to sell or a solicitation of any offer to buy the securities or services of ANF Immobilier or any other issuer in any jurisdiction whatsoever. 2

3 First Half 2010 Highlights Significant rental income growth +7.2% like-for-like rental income growth Continued margin improvement H EBITDA margin reaches 80.6% Improvement of 2.3 points vs. H Recurring cash-flow +7.5% Further progress on 55M disposal program (5% of city-center portfolio) FY 2010 guidance: +10% like-for-like rental growth for city-center properties January - June M H H % growth Rental income % Marseille % Lyon % B&B % EBITDA % Margin 80.6% 78.3% 2.3 Recurring cash-flow % Change in fair value 9.6 (92.6) NM Net income 27.6 (77.3) NM Per share data ( ) H H % growth Recurring cash-flow % Average number of shares 26,732,680 24,968, % Per share data ( ) 06/30/ /31/2009 % growth Net asset value * (1.0%) *Adjusted for the 1-for-20 bonus issue 3

4 Strong rental growth continued over H Prime retail rent increased in Lyon Lyon: latest retail leases in the République area at c. 2,600/sqm (+30% vs. last highest prime rent) Marseille: latest retail leases at base rents (excluding turnover rent) between 500 and 800/sqm Double-digit like-for-like rental growth for city-center portfolio +10.5% like-for-like rental growth for city-center portfolio Rental growth driven by retail in Marseille (+20.4%) and in Lyon (+16.4%) H like-for-like rental growth Lyon Marseille City-center portfolio Retail +20.4% +16.4% Office +6.6% +5.2% Residential +8.6% +3.5% Total +14.0% +7.6% +10.5% 4

5 Continued improvement in profitability M Gross rental income Half year Full year EBITDA margin 90% 80% 70% 60% 50% 40% 30% 75% 79.6% 80.6% 56% 44% 42% H

6 Market outlook A sluggish economic environment Rental indices slowing down Annual change for ILC likely to be negative as at Q Slight reduction in rent to expect for B&B portfolio from November ICC ILC IRL Q , Q , Q , Q , Q , Q , Q , Annual change +0.33% -1.33% +0.09% Decrease in household consumption (-1.4% year on year) Decrease in retail turnover, increase in the occupancy-cost ratio, vacancy risk Retailers more selective: concentration on city-center prime location Stabilization of shopping center footfall (CNCC) May 2010 footfall: -0.3% vs. April 2010, last twelve month -3.0% in continuous improvement Results of 2010 summer sales Good numbers for the first half of July Slower towards the end of the sales period Marseille in line with the national trend 6

7 View of Rue de la République - Marseille 7

8 Lyon: Increase in prime retail rent to 2,600/sqm near Place Bellecour Latest market rent evidence Retail : 2,200 2,600/sqm Offices : /sqm Residential : 11 13/sqm (month) Latest market rent evidence Retail : 600 1,000/sqm Offices : /sqm Residential : 11 13/sqm (month) ANF Immobilier Assets 8

9 Marseille Latest transactions show resilient rental levels ANF Immobilier Assets Latest market rent evidence Retail : /sqm Offices : /sqm Residential : 11 13/sqm (month) Mazenod Car Park 445 spaces Dames devmt Forbin project Ilot 25 devmt Fauchier project Public Car Park 800 spaces Malaval Car Park 312 spaces Trinquet devmt Segment 1 Segment 2 Segment 3 9

10 Marseille retail: A high quality environment Breakdown of retail tenants in Segment 1 Services 20% Food 12% Restaurant 10% Health & cosmetics 8% Clothes & fashion 50% 4 advertising campaigns each year Spring, Summer sales, Fall, December Billboards (street, subway), newspaper advertising, street marketing 10

11 Marseille & Lyon offices: resilient portfolio Stable market rents Lyon: 250/sqm Marseille: 180/sqm Vacancy rate remains at 2% both in Lyon and in Marseille Marseille: in talks to lease over 50% of the space under refurbishment Lyon: space under refurbishment already under offer due to limited supply and strong demand ANF Immobilier s offices portfolio (breakdown by area) Marseille Lyon Under refurbishment 13% 2% Vacant Under refurbishment 5% 2% Vacant 85% Occupied 93% Occupied 11

12 Marseille residential: significant rental upside potential on vacancy Potential of 3M new rents (assuming rental value of 11.00/sqm per month) Marseille segment 1 and Lyon residential portfolios largely mature Vacancy rate: 6% for Marseille segment 1 and 3% for Lyon Under refurbishment: 14% of portfolio for Marseille segment 1 and 8% for Lyon Most rental upside in remaining segments of Marseille ANF Immobilier s residential portfolio in Marseille (breakdown by area) Segment 2 Segment 3 0% Vacant 2% Vacant Segment 5 1% Vacant 61% Under refurbishment 39% Occupied 33% Under refurbishment 66% Occupied 37% Under refurbishment 63% Occupied 12

13 Significant potential for reversion = + 9.3M annual rental income +80% rental upside on standard leases maturing before 2013 = + 8.2M Marseille Lyon Area (sqm) Current ( /sqm) Target ( /sqm) Potential ( M) Area (sqm) Current ( /sqm) Target ( /sqm) Potential ( M) Retail 10, , Offices 7, , Residential 35, * 11.00* 1.6 8, * 11.00* 0.1 * Rentsper month Total 53,907 Marseille ,456 Lyon 4.1 Potential rental upside on Loi 1948 regulated leases = + 1.1M Flat-rent lease regime subject to old regulation protective for the tenant in place 67 leases 15,234 sqm average passing rent 4.10/sqm per month 13

14 Restructuring projects (renovations) Marseille, Plot 20 (Dames) 6,500 sqm mixed-use building (retail & residential) 24 months works Estimated rental income: 1.30M p.a. Marseille, Plot 25 7,000 sqm prime building (retail, residential & offices) 18 months works Estimated rental income: 2.82M p.a. Marseille, Rive Neuve 3,200 sqm mixed-use building 18 months works Estimated rental income: 0.75M p.a. Green building Marseille, Pavillon Vacon 5,500 sqm mixed-use building (retail & residential) 12 months works Estimated rental income: 2.20M p.a. Lyon, Mansardes Attics refurbishment with 5,100 sqm of new residential space created Works started on site, 1,636 sqm already completed, delivery due for completion in 2011 (4,900 sqm) Estimated rental income: 1.1M p.a. Rive-Neuve Plot 25 Dames 14

15 Development projects (on-going) Marseille, Trinquet Serviced apartments complex (142 units) Delivered on schedule in October 2009 Leased to Adagio (JV between Accor and Pierre & Vacances) Financing secured with Calyon debt facility at Euribor + 50bps Rental income: 1.1M p.a. Marseille, Fauchier Office (13,000 sqm) and residential (4,000 sqm) building Works started on site, expected completion on schedule during H Financing secured with Calyon debt facility at Euribor + 50bps Residential component already pre-sold Rental income (offices only): 2.1M p.a. pre-leased to the City of Marseilles Marseille, Forbin B&B hotel (125 rooms) Financing secured with Banque Martin Maurel at Euribor + 120bps Expected completion during H Rental income: 0.6M p.a. From 1,637 sqm to 7,100 sqm Trinquet From 4,336 sqm to 17,200 sqm Fauchier From 870 sqm to 2,975 sqm Forbin 15

16 Development projects (near term) Marseille, Rabateau 3,900 sqm office development 12 months works Estimated rental income: 0.60M p.a. Green building Marseille, Euromed Plot 34 26,000 sqm mixed-use project (offices, hotel, residential & retail) 30 months works Estimated rental income: 4.00M p.a. Green building Rabateau Plot 34 16

17 Future development pipeline (long term) Marseille, Desbief 20,000 sqm office development 30 months works Starting Q Estimated rental income: 5.30M p.a. Lyon, TAT Whole block restructuring 31,000 sqm 30 months works Starting after legal issue is resolved Estimated rental income: 7.00M p.a. Desbief TAT 17

18 Development pipeline M Total cost Completion Yield on cost Delivery Delivered Joliette 6 100% 11.8% Delivered Trinquet % 6.2% Delivered Total delivered % 7.7% Restructuring Built % Rive Neuve 9 8% Pavillon Vacon 17 59% 2010 Plot % Plot % Mansardes 15 49% Total restructuring % 6.5% Breakdown of developments by delivery date (% of total cost) Long term 33% Delivered 5% % Development Fauchier 23 84% 9.1% 2010 Forbin 6 69% 9.4% 2010 Rabateau 7 6% 7.9% Plot % 7.0% Total development 93 31% 7.8% Long term development TAT 78 33% 9.0% Long term Desbief 60 11% 8.8% Long term Total long-term development % 8.9% % Total % 18

19 Restructuring & developments lead to a secured rent forecast Increase of +64% in like-for-like rental income + 41M additional rents to be negotiated within 4 to 5 years 110 Developments + 21M 100 Restructuring + 20M M Rents Vacancy Lyon Reversion Marseille Reversion Loi 1948 Renovation On-going Near term Long Term Target 19

20 A 55M disposal plan: 5% of city-center portfolio Disposal program of 55M of properties with expected long-term returns below ANF Immobilier s requirements Lyon: disposal of low-yielding properties Marseille: disposal of assets located in non-core areas 15,814 sqm already signed or secured for 38.4M Area (sqm) Disposal price ( M) Lyon 5, Marseille 2, Total signed 8, Marseille 7, Lyon - - Total secured 7, Total 15, A further 9,379 sqm in Marseille earmarked for disposal 20

21 Capitalization rate compression Portfolio valuation as at June 30, 2010 City-center portfolio Cap rate compression during H for: Properties located in Marseille segment 1 Prime retail, residential and offices in Lyon Average cap rate on portfolio Marseille Lyon Retail 5.80% 5.70% Offices 6.60% 6.40% Residential 4.60% 4.60% Transactions benchmark Lyon: Le Progrès (Retail + Office) sold at 5.5% cap rate Lyon: Axa (office) sold at 6.0% cap rate B&B hotels portfolio Cap rate compression for properties located in city centers (-20 to -30 bps) Average cap rate = 6.70% (vs. 6.80% as at December 31, 2009) Cap rates used band between 6.10% % ; depending on city profile, location and new concept transition 21

22 Value increase over 6 months Portfolio valuation as at June 30, 2010 ( M) 06/30/ /31/2009 % growth Marseille completed properties % Lyon completed properties % Completed properties % Development projects % City-center 1,054 1,030 2% B&B hotels % Total real estate portfolio 1,542 1,504 3% Average capital values (retail, offices, residential, excluding developments) Lyon= 4,621/sqm Marseille= 2,606/sqm 22

23 NAV = per share (excluding fair value of hedging instruments) Increase of 0.97 per share before dividend distribution Note: restated for the 1-for-20 bonus issue Before the 2010 distribution, NAV increase of per share or +2.5% over 6 months ( per share or +5.1% over 1 year) Liquidation triple net asset value (NNNAV) = per share ( per share as of 12/31/2009) 23

24 Attractive cost of financing & significant covenants headroom Lyon & Marseille development = 250M facility Corporate credit Margin = Euribor + 50bps hedged at 4.36% Unused portion of credit facility = 50M Covenants 30 Jun Dec Jun Dec 08 Loan-to-value ratio (LTV) 30.6% 28% 28% 24% < Covenant 50% 50% 50% 50% Asset value Headroom 38% B&B developments = 257M facility Mortgage Margin = Euribor + 55bps hedged at 4.75% Unused portion of credit facility = 11M Interest cover ratio (ICR) 3.16 x 3.36 x 3.36 x 3.33 x > Covenant 2.00 x 2.00 x 2.00 x 2.00 x EBITDA Headroom 37% 95% of credit lines fully swapped Pre-hedging of unused credit facility Other financial debts = 30M Unused portion of credit facility = 10M No refinancing until 2014 Net financial debt = 472M as of June 30,

25 Stock price evolution per share Volumes ANF EPRA SBF 250 CAC , , , , , January-10 February-10 March-10 April-10 May-10 June-10 July-10 August-10 - Volume Number of shares Source : Bloomberg Data at June

26 Conclusion Resilient real estate markets in Marseille and Lyon despite challenging economic climate ANF Immobilier remains well placed to deliver superior growth: Capture reversionary potential on existing leases Lower the vacancy rate Implement active leasing strategy Complete development and refurbishment projects Sell mature properties FY 2010 guidance: +10% like-for-like rental growth for city-center properties Medium-term guidance reiterated: 106M annual rental income within 4 to 5 years (vs. 65M in 2009) 26

27 Appendices 27

28 Summarized financial statements January - June M H H % growth Rental income % Net operating expenses (2.1) (2.6) (19.2%) Administrative expenses (4.5) (4.4) 2.3% EBITDA % Financial expenses (8.5) (7.7) 10.6% Taxes Recurring cash-flow % Change in fair value 9.6 (92.6) NM Other items (0.8) (2.3) NM Net income 27.6 (77.3) NM Interest cover ratio 3.16x 3.36x Recurring cash-flow per share ( ) % Average number of shares (M) January - June M 06/30/ /31/2009 % growth Real estate portfolio 1, , % Net financial debt (471.6) (422) 11.7% Other debts (18.3) (21.5) (14.7%) NAV 1, ,061.0 (0.7%) Fair value adjustment of swaps (44.3) (29.6) 49.4% Deferred taxes NNNAV 1, ,031.4 (2.2%) Loan to value ratio 30.6% 28.1% Net asset value per share ( ) * (1.0%) Triple net asset value per share ( ) * (2.4%) Period-end number of shares (M) * *Adjusted for the 1-for-20 bonus issue 28

29 Restructuring: Marseille segment 1 Marketability of the Rue de la République: a reality H&M Sept 07 Starbucks May 10 Mango Aug 08 Sinéquanone Nov 07 Vert Baudet Sept 07 Planet Jog Jul 2008 Tally Wejll Jul 08 France Arno Mar 10 Tps d Cerises Jul 08 Banette Jun 09 Maison Glace Jun 09 DPAM Mar 08 Hylton Oct 07 Arena May 10 Optic 2000 Dec 08 Bouygues Tel Septembre 08 Le Moment Sept 08 Connexion Dec 08 Dubble Mar 2009 Célio Public car park Mar spaces C Agricole Sept 06 Jules Jun 08 Triumph Dec 08 H&M Enfants Apr 09 Olivers&Co 2010 Crocs Jun 09 Frutti Bar Mar 2010 Eté en vacances May 10 LaPoste Q3 10 Orange Apr 09 Occto Jun 09 Desigual Nov 08 Puma May 08 Esprit Aug 08 Sephora Nov 07 Promod Q310 C Epargne Sept 07 Opened Signed Prospect Opening completed 29

30 Marseille - European capital of culture 2013 A major advantage for ANF Immobilier E C I G B F A H ANF Immobilier developments A. Trinquet F. Dames B. Fauchier G. Plot 25 C. Forbin H. Pavillon Vacon D. Rive Neuve I. Desbief E. Plot 35 D 1 million of tourists expected in

31 Portofolio valuation as at 30 June 2010 Improvement in capital values * Like-for-like basis 31

32 Capitalization rate compression Portfolio valuation as at June 30, 2010 Capitalization rates (excl rights) Lyon Retail Offices Residential Loi 48 Jun % 6.37% 6.74% 7.27% 4.78% 5.04% 2.39% 4.78% Dec % 6.40% 6.90% 7.70% 4.80% 5.20% 2.40% 4.95% Jun % 7.45% 6.90% 7.70% 4.50% 5.20% 2.15% 4.95% Marseille Dec % 6.90% 6.25% 7.20% 4.00% 4.65% 2.15% 4.40% Retail Offices Residential Loi 48 Jun % 7.81% 6.90% 7.81% 4.78% 5.47% 2.39% 4.94% Dec % 8.00% 7.20% 8.00% 4.80% 5.60% 2.40% 5.30% Jun % 8.00% 7.20% 8.00% 4.50% 5.60% 2.15% 5.30% Dec % 7.70% 6.65% 7.45% 4.00% 5.05% 2.15% 4.80% 32

33 Value increase over 6 months Portfolio valuation as at June 30, 2010 Marseille: Capital values as at June 30, 2010 Segment 1 Other Retail 7,819 9,870/sqm 4,824 5,736/sqm Office 2,085 2,147/sqm 1,500 2,192/sqm Residential 2,548 2,648/sqm 1,800 2,206/sqm Marseille: Capital values as at December 31, 2009 Segment 1 Other Retail 7,574 9,683/sqm 4,146 5,421/sqm Office 2,033 2,104/sqm 1,135 2,015/sqm Residential 2,501 2,622/sqm 1,503 2,177/sqm Lyon: Capital values as at June 30, 2010 Lyon: Capital values as at December 31, 2009 Retail 12,772 14,808/sqm Retail 12,169 12,736/sqm Office 2,722 2,737/sqm Office 2,546 2,554/sqm Residential 2,580 2,702/sqm Residential 2,248 2,499/sqm 33

34 ANF Immobilier: Three assets Breakdown of 2009 rental income Hotels 48% Offices 7% Retail 12% Lyon 24% B&B Hotels 48% Residential 5% Offices 5% Others 2% Retail 10% Marseille 28% Residential 11% 34

35 B&B Hotels 167 quality locations in France 12,124 rooms 35

36 History Before 2002 In 2002 In 2004 In 2005 SCHP and partners SCHP & partners SCHP & partners SCHP & partners Rue Impériale de Lyon Sté Immobilière Marseillaise Rue Impériale Eurazeo Real estate Eurazeo Eurazeo Subsidiary Subsidiary Eurazeo Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary ANF Immobilier Subsidiary Subsidiary Subsidiary The companies Rue Impériale de Lyon and Société Immobilière Marseillaise were holding companies for the investment companies Eurafrance and Gaz&Eaux Income from investments was much greater than that from real estate which was then used as capital gains provision After restructuring its capital, Eurazeo inherited real estate assets from its parent companies and decided to manage them through a dedicated subsidiary, ANF Immobilier 36

37 Diversified risk mix City-center of Marseille (172,000 sqm) - Value = 621M (June 30, 2010) 179 buildings Office Retail Residential Total Devpmt Surface area 30,000 sqm 42,000 sqm 100,000 sqm 172,000 sqm 93,000 sqm Number of lots ,366 Occupancy rate* 77%*** 85% 80% FY 2009 rents ( M) Other leases = City-center of Lyon (88,000 sqm) Value = 433M (June 30, 2010) 56 buildings Hotel buildings 166 B&B hotels in France 12,124 rooms Office Retail Residential Total Devpmt Surface area 30,000 sqm 25,000 sqm 33,000 sqm 88,000 sqm 36,500 sqm Number of lots Occupancy rate* 99% 98% 78%** FY 2009 rents ( M) Other leases = FY 2009 rents: M Asset value 489M (June 30, 2010) * Including technical vacancy comprising available plots with work being carried out or work planned ** Areas voluntary kept vacant in connection with TAT and Mansardes developments *** Areas voluntary kept vacant for further development or residential compensation 37

38 Leases maturity Marseille Sqm 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 < < Offices Retail Residential 38

39 Leases maturity Lyon Sqm 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 < < Offices Retail Residential 39

40 Restructuring Lyon: TAT (31,000 sqm) Estimated lease income: 7M ANF Immobilier property 12,350 sqm Surface area created 3,300 sqm Surface area acquired 7,915 sqm ANF Immobilier 23,566 sqm Printemps 6,500 sqm Still to acquire 900 sqm i.e. 2.9% of the entire project Suggested project Printemps lease Today Tomorrow Bat A 5,500 sqm Bat B 4,500 sqm 10,000 sqm? Rents 450,000 2,800, /sqm Buildings occupied by Printemps Printemps lease expired on June 2006: Litigation to establish new rent Retroactive rents from June 06; One-off 7M at expert value on counting On May 29, 2009: report ordered by the Court on the rental value for renewal favorable to ANF Immobilier 40

41 Stockholding Number of shares 27,453,778 Free float 26% Tresuary share 0% THS 5% Generali 5% Caisses d'epargne 5% Eurazeo 59% In December 2009, Eurazeo sold c.1m of shares to comply with SIIC fiscal requirements 41