FULL-YEAR RESULTS PRESENTATION 26 FEBRUARY 2016

Size: px

Start display at page:

Download "FULL-YEAR RESULTS PRESENTATION 26 FEBRUARY 2016"

Lenard Lynch
5 years ago
Views:

1 FULL-YEAR RESULTS 2015 PRESENTATION 26 FEBRUARY 2016

2 AFFINE 2015 Key takeaways.net OPERATING PROFIT RISES SHARPLY TO 23.2M.NET PROFIT AT BREAK-EVEN (+) Significant increase in fair value, up 3.8m (+) Cost of debt down to 2.5% (+) 2.2m drop in corporate expenses (-) 10.7% drop in gross rental income (-) Highly negative contribution from Banimmo (- 16.5m).EPRA EARNINGS DOWN TO 13.3M.CLEAR IMPROVEMENT IN LTV RATIO AT 46.6% (-2.7 POINTS).CHANGE IN PORTFOLIO 39.0m acquisitions and works 94.7m disposals.epra NAV PER SHARE: 21.6.DIVIDEND OF 1.0 PER SHARE(*) (*) Will be submitted to the vote at the General Shareholders' Meeting of 28 April

3 INVESTMENTS AND DISPOSALS 2

4 INVESTMENTS AND DISPOSALS 42m of investments and 95m of disposals 30m: Acquisitions 12m: Development & Refurbishment Toulouse Amarantes 2: 7.7m Lyon - Tangram Lille Paris - Réaumur Nevers 95m: Disposals Clichy: 7.9m Chaville: 14,7m Lyon - Rhodanien: 9.9m Paris Réaumur: 5.5m Portefeuille logistique: 67.3m 3

5 INVESTMENTS AND DISPOSALS Lyon Part-Dieu Tangram.Major refurbishment of 5,915 sqm offices space: 7.7m BBC-effinergie rénovation to be obtained (Green label for commercial real estate refurbished) 2 buildings and parking lot for 121 cars Completion by T ,750 sqm let to ISCOM with a 9-year fixed term lease 3,165 sqm under marketing.located in Part-Dieu district Central Business District Closed to the La Part-Dieu TGV station Excellent public transportation links 2 métro stations, several bus lines Tram TGV La Part-Dieu Tangram Building before refurbishment 4

6 INVESTMENTS AND DISPOSALS Toulouse Les Amarantes 2.Acquisition of a 2,900 sqm of offices: 7.7m Certified NF HQE Bâtiments Tertiaires (Green label for commercial real estate) 4 floors (Ground -1 to G+2) 92 parking lots 87% let to Dalkia (6.5-year fixed lease) 100% let from 01/04/2016.Located in the heart of the new Borderouge district Major urban development area Closed to The newly-built Les Maourines shopping centre (Carrefour) Toulouse Blagnac international airport (15 min) Excellent public transportation links Metro line B for quick access to the city centre 8 bus services covering a large part of the city 1 intermodal station 3 bicycle stands 5

7 INVESTMENTS AND DISPOSALS Porte de Clichy Les Horizons.1,535 sqm of offices: 7.9m BREEAM 7 floors (Ground -1 to G+5) Green Façade Completion expected on Q OR: 100% - Signature in December of a 6-year fixed lease.locatedat Porte de Clichy in the «Entrée de ville» ZAC (Integrated development zone) Major urban development area to the north west of Paris Closed to The new Parisian courthouse The regional headquarters of the police judiciaire (criminal investigation department) Excellent public transportation links Porte de Clichy station: RER C, metro lines 13 et 14 (under progress) Train station Clichy-Levallois Immediat access to the ring road and and to A1, A13 and A14 motorways 6

INVESTMENTS AND DISPOSALS Euronantes.Contract signed for 3,844 sqm of offices: 9.

Partnered with the Consortium Sogeprom-ADI April 2014: Launching of the call for

located in the Euronantes Railway station district New major business district 2020:

8 INVESTMENTS AND DISPOSALS Euronantes.Contract signed for 3,844 sqm of offices: 9.8m BREEAM 8 floors (Ground -1 to G+6) Completion expected on H Partnered with the Consortium Sogeprom-ADI April 2014: Launching of the call for tenders January 2015: Awarded the project.located in the Euronantes Railway station district New major business district 2020: 130,000 sqm of offices Very close to the TGV station Excellent public transportation links TGV station Tramway and Bus lines TGV Euronantes Station Building 7

9 INVESTMENTS AND DISPOSALS Chaville.Yield of the investment: 7.8%.10,850 sqm of offices: 14.7m 5 buildings on 7 or 8 levels 185 parking units in the basement Let at 90% mainly to: Poste Telecom Mizuno Motors TV Alten Franprix.Located in the avenue Roger Salengro District under renovation Excellent public transportation links RER C SNCF train line L Paris Saint-Lazare SNCF train line N Paris Montparnasse 171 bus line 8

INVESTMENTS AND DISPOSALS Nevers Carré Colbert.

10 INVESTMENTS AND DISPOSALS Nevers Carré Colbert.New reset for the commercial centre New name, redesigned signage and layout OR: 87% (in surface area).mall of 10,400 sqm Carrefour Market of 5,500 sqm H&M of 1,300 sqm 15 stores over 2,200 sqm.3 new major brands on 1,300 sqm Fnac with 850 sqm: new concept of proximity DDP with 212 sqm: womenswear French ADN with 229 sqm: multi-brand concept for women apparels 9

INVESTMENTS AND DISPOSALS Disposal of a warehouses portfolio [1/2].

6m / year OR: 100% as at 30/06/2015 Surface area: 160,000 sqm 2 logistics platforms

assets Vatry Bussy-Lettrée (51): 19,212 sqm Maurepas (78): 8,370 sqm Saint-Etienne

11 INVESTMENTS AND DISPOSALS Disposal of a warehouses portfolio [1/2].7 logistics platforms: 67.2m Rent: 6.6m / year OR: 100% as at 30/06/2015 Surface area: 160,000 sqm 2 logistics platforms from Concerto in Troyes (10) Eurodif: 24,700 sqm Devanlay: 18,770 sqm 5 logistics assets Vatry Bussy-Lettrée (51): 19,212 sqm Maurepas (78): 8,370 sqm Saint-Etienne (42): 33,359 sqm Saint-Cyr-en-Val (45): 38,756 sqm Saint-Germain-lès-Arpajon (91): 16,289 sqm.contract signed for the sale of Miramas (12,500 sqm) 10

INVESTMENTS AND DISPOSALS Disposal a warehouses portfolio

operational Gross rental income decrease: - 6.

12 INVESTMENTS AND DISPOSALS Disposal a warehouses portfolio Impact* [2/2].Financial structure Debt: - 43m Cash: + 25m Drop in LTV (-5 points) Reallocation to new investments.operational Gross rental income decrease: - 6.6m EPRA earnings: - 2.3m Improving the quality of cash-flow (Vacancy and capex risks) Occupancy rate: -2.1 point Yield: - 30 bps * On a full year basis 11

13 PERFORMANCE OF THE PORTFOLIO 12

14 PERFORMANCE OF THE PORTFOLIO Slight increase of the fair value (lfl).change in fair value excluding TT ( m) 575 (95) (8) /12/14 Disposal Capital gain Like-for-like Capex Acq. 31/12/15.Breakdown of the 0.7% decrease in fair value on a like-for-like basis: Market rent effect (ERV): -2.0% Cap rate effect: +6.7% Miscellaneous: -3.9% (works, reversion, transfer taxes change ) 13

15 PERFORMANCE OF THE PORTFOLIO Decrease of the headline rents.change in headline rents annualized ( m) 43.3 (7.9) (1.9) /12/2014 Disposal Like-for-like Investment 31/12/2015 Total headline rents change: - 7.9m (-18.3%) due to the disposals On like-for-like, a 1.9m (-5.4%) decrease of the headline rent 14

16 PERFORMANCE OF THE PORTFOLIO Decrease of the occupancy rate.financial occupancy rates (EPRA) 87.7% 89.0% 87.8% 90.9% 90.2% 85.8% Total 85.8% Offices Retail Warehouses and industrials 87.0% 84.3% 83.6% Paris Métropole Other Ile-de-France French Regions 86.4% 82.6% 85.8% Impact Baudry -1.2 pt Impact JdQ +0.8 pt Impact Log -2.1 pt Paris Métropole: Paris + Hauts-de-Seine + Val d Oise + Val-de- Marne Impact of the departure of the tenant on the Tremblay-en-France site: -2.0 pt Impact of the disposal of the logistics: -2.1 pt 15

17 PERFORMANCE OF THE PORTFOLIO Lenghtening of the lease average duration.schedule in rents ( m) according to lease duration Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 End of lease Fixed term Average time up to next break option: 3.1 years (vs 2.8 as at 31/12/2014) Average time up to lease expiry: 5.5 years (vs 5.1) 48 new leases (21,400 sqm ; 2.1m) + 1.6m in terminated leases and departures (24,200 sqm ; 3.1m) - 1.1m in renegociated leases (51,200 sqm vs 50,800 sqm ; 3.2m vs 2.8m) - 0.1m in m in

SUBSIDIARY Banimmo in 2015 More details on www.banimmo.be.

Key events Opening of the Halle Secrétan (Paris) with an OR of 100% Preletting of 100% and start of the renovation works of the

«built-to-suit» for Deloitte (Gent), Marsh & Mc Lennan (Brussels) and BNPP (Charleroi), all sold Sale of 2 buildings of the

18 SUBSIDIARY Banimmo in 2015 More details on property company Portfolio: 18 buildings; Gross rental income: 8.1m; value: 350m.Key events Opening of the Halle Secrétan (Paris) with an OR of 100% Preletting of 100% and start of the renovation works of the Marché Saint-Germain (Paris) Contract signed for the acquisition of a shopping centre in Anglet Developement of three «built-to-suit» for Deloitte (Gent), Marsh & Mc Lennan (Brussels) and BNPP (Charleroi), all sold Sale of 2 buildings of the portfolio 3,700 sqm in Brussels 14,250 sqm in Colombes Bond issuance for a total amount of 44m, with a term of 5 years, and an annual gross return of 4.25%.2015 Results Operating result: 4.5m vs 10.5m Net current result: - 3.9m vs 3.2m Net result: m vs - 9.3m 17

19 SUBSIDIARY Banimmo Urbanove issue August 2010 Banimmo took a 42.5% stake in Citymall (former Foruminvest in Belgium) for an amount of 54m (equity: 20m and mezzanine loan: 34m) for 3 commercial centre projectsin Namur, Charleroi and Verviers Growing divergence of view with the partner December2013 Partial depreciation of the stake for 15m May 2014 Banimmo purchased the company holding the ground lease in Charleroi for 5m November 2014 Takeover of the Namur and Verviers projects by Urbanove (44% Banimmo; 56% Walloon region + Besix + Degroof) ; new mezzanine loan of 12m (of which Banimmo: 9.9m) December 2014 Depreciation of the remaining stake ( 4m) Autumn 2015 thorough review of the projects : Validation of the Namur project Downsizing of the Verviers project December 2015 Depreciation of 21m of the mezzanine loan (out of a total of 45m) 18

20 SUBSIDIARY Banimmo 2 successful developments.marché Saint Germain (Paris 6 ème ) Acquisition in 2009: 30m Eviction, work and financing costs: 35m Commercial centre increased from 3,200 sqm to 4,400 sqm Doubling rents to 4.1m Completion by Q Opening early 2017 OR: 100 %.Marché de la Halle Secrétan (Paris 19 ème ) SIIC Trophy Request for proposal won in April 2011 Ground lease for 70 years Project cost: c. 15m Increase threefold the surface area to 3,800 sqm Rent: 1.25m Opening in October 2015 OR: 100% - Les 5 fermes, Camaïeu, Neoness, Desnoyers, etc 19

21 CONSOLIDATED ACCOUNTS 20

22 CONSOLIDATED ACCOUNTS Consolidated earnings(epra direct method) ( m) 31/12/13 31/12/14 31/12/15 Gross rental income Net rental income Other income Corporate expenses (10.0) (10.1) (7.9) Current EBITDA Current operating profit Other income and expenses 0.7 (0.5) (0.4) Net financial cost (11.5) (10.9) (9.1) Taxes (0.5) (0.5) 0.5 Miscellaneous (0.1) 0.1 (0.5) Associates 1.9 (1.9) (4.3) Net current profit Value adjustments of properties & profit on disposals (21.8) (21.1) (3.4) Fair value adjustments of hedging instr. 4.0 (2.3) 2.1 Adjustements for associates (7.2) (3.4) (11.4) Others (0.9) (0.6) (0.1) Net non-current profit group share (25.8) (27.4) (12.8) Net profit group share (8.8) (11.0) 0.4 EPRA Earnings(Net current profit group share) EPRA Earnings(excl. Banimmo)

23 CONSOLIDATED ACCOUNTS Decrease of the net asset value ( m) 31/12/13 31/12/14 31/12/15 Shareholders equity(before allocation) PSL adjustment (73.2) (73.2) (73.2) Fair value adjustments to hedging instr Net deferred tax (4.1) (4.3) (4.1) EPRA NAV(excluding transfer tax) EPRA NAV(including transfer tax) EPRA NAV(excluding transfer tax) per share( ) ( m) (9.0) (24.3) /12/2014 Dividends paid FV properties FV FI EPRA earnings Others 31/12/ per share 21.6 per share Excluding PSL (TSDI) Based on the Net Book Value of Banimmo ( 3.51 per share) Others: interest on convertibles and PSL Convertibles, etc NAV per share after dilution fromconvertibles With the Banimmo NAV, Affine EPRA NAV :

24 FINANCING 23

25 FINANCING A sharpdrop of LTV LTV change % % % % 55.0% 51.5% % 45.5% 46.8% 49.3% 46.6% 40% 20% 0% Value Loan LTV Marked drop of the net debt: 274m (excl. lease financing) Sharp decrease of the LTV: 46.6%

FINANCING Decrease of the financing costs.

26 FINANCING Decrease of the financing costs.average financing cost of 1.6%, or 2.5% hedging included (vs 1.9% & 3.0% as at 31/12/2014).Banks relationship diversified 6 main banks Average duration of the debt: 5.3 years Financing asset by asset with mortgages Amortizable over middle term.financing in 2015 Financing: 21m Refinancing: 45m Amortisation: 97m 25

27 FINANCING A balanced debt profile.amortisation of debt( m) Contractual amortisation Repayment at maturity Early repayment A financing policy aiming at smoothing the amortisation Repayment: around 14m p.a. on average Short term available credit lines of 15m as at 31/12/

28 STRATEGY & OUTLOOKS 27

29 STRATEGY & OUTLOOKS Our strategy[1/3] Paris Métropole Concentration of investments on 2 axis: Geographic On Paris Métropole and Regional cities (Bordeaux, Lille, Lyon, Marseille, Nantes, Toulouse) benefitting from good national and international transport network and a strong demographic and economic momentum Type Focus on offices And retail premises in city center more opportunistically.breakdown of the portfolio in value term 13,8% 13.8% Offices 23,8% 23.8% 62,4% 62.4% Retail Warehouses and industrial 28

for value creation by their location or rental situation. and to streamline it By selling mature, small or isolated assets And logistics assets.

30 STRATEGY & OUTLOOKS Our strategy [2/3].Four priorities.1) Continue to rejuvenate the portfolio by looking for buildings New or recent, preferably with green certification Of an average size of 10m to 30m Ensuring high rental yield Containing a potential for value creation by their location or rental situation. and to streamline it By selling mature, small or isolated assets And logistics assets.2) Restore the volume of rents of previous years By investing in buildings with a good yield and good location By making the improvement of the OR a strong goal: by a specific treatment of vacant assets for more than one year, by paying attention to the comfort of the tenants to stabilize them, focusing on built-to-suit By optimizing daily management through an efficient information system 29

Diamond and Raket (mature buildings) Marché Saint-Germain in Paris By finding new partners To exploit the potential of land Banimmo holds in Belgium To organise a

31 STRATEGY & OUTLOOKS Our strategy [3/3].3) Bring back Banimmo to profitability By completing successfully the planned sales Completion of the Cauchy C building (3,000 sqm) in Namur Alma Court, H5, Diamond and Raket (mature buildings) Marché Saint-Germain in Paris By finding new partners To exploit the potential of land Banimmo holds in Belgium To organise a partnership structure to strenghten Banimmo intervention capacities in the retail sector in France.4) Integratenew technologicaldevelopmentsof the property sector Tenant services (virtual concierge services, pickup station ) Electronique document signing (lease, mandate ) New uses of workplace 30

fr Frank Lutz Investor Relations + 33 (0)1 44

32 CONTACTS Contacts.Affine Maryse Aulagnon Chairperson and CEO Alain Chaussard Vice-Chairman and Co-CEO + 33 (0) info@affine.fr Frank Lutz Investor Relations + 33 (0) frank.lutz@affine.fr.liquidity contract: Invest Securities.Website: 31

33 APPENDIX 32

34 APPENDIX Consolidated cash flow ( m) 31/12/13 31/12/14 31/12/15 Funds from operation Funds from operation (excluding cost of debt and tax) Change in WCR 1.3 (13.2) (3.2) Taxes paid (0.3) (1.2) (0.6) Operating cash flow Acquisitions & Investments (27.1) (22.1) (43.2) Disposals Others (1.2) Investment cash flow (20.1) New loans Loan repayments (41.9) (60.4) (101.8) Interest (11.5) (11.2) (9.3) Others (of which dividends) (12.8) (13.9) (9.1) Financing cash flow (18.6) (40.8) (76.8) Change in cash position (7.6) (17.7)

35 APPENDIX Consolidated balance sheet ( m) 31/12/13 31/12/14 31/12/15 Properties of which investment properties of which property held for sale Equity holdings Equity affiliates Cash Other assets Shareholders equity (before allocation) of which convertibles of which PSL Bank debt Other liabilities Total Bilan

36 APPENDIX Portfolio yield.return by asset type Portfolio Headline Potential Split in value Yield yield Offices 62.2% 6.2% 7.2% Retail 23.9% 6.4% 7.5% Warehouses & Industrials 13.8% 7.9% 9.3% Total 100.0% 6.5% 7.6%.Return by location Portfolio Headline Potential Split in value yield yield Métropole du Grand Paris 35.1% 5.0% 6.1% Other Ile-de-France 9.6% 9.0% 10.5% French Regions 53.8% 6.9% 8.0% Total 100.0% 6.5% 7.6% 35

37 APPENDIX Share price ( ) and avg transaction vol. (000) Affine Euronext IEIF SIIC France EPRA Europe janv.-15 mars-15 mai-15 juil.-15 sept.-15 nov.-15 janv janv.-15 mars-15 mai-15 juil.-15 sept.-15 nov.-15 janv

38 APPENDIX LTV (net debt/ portfolio value) LOAN ( m) 31/12/13 31/12/14 31/12/15 Net financial debt Debt allocated to lease financing (20) (15) (10) Debt for investment properties VALUE Value of properties (incl. TT) Property companies on equity basis VEFA & Fixed assets adjustments Adjusted portfolio value incl. taxes LTV(net debt on portfolio value) 46.8% 49.3% 46.6% 37

3% Overall, the group has 337 leases corresponding to

39 APPENDIX A diversified risk on tenants.a diversified portfolio of customer Breakdown of rents 11% 337 Leases 4% 4% 3% 3% TOP 5 SNCF TDF Mairie Corbeil-Essonne Distrib - Pharma 74% INSEEC Others < 3% Overall, the group has 337 leases corresponding to an average rental income of 106,000 by tenant or 80,000 excluding the TOP 5 38

20.6 Share 15 10 12.2 13.4 8.1 14.4 9.8 10.8 10.8 8.1 9.

7 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 A

40 APPENDIX Dividend.Affine, high yield property company ( m) Cash 20.6 Share * A 6.1% yield based on the share price of 31/12/2015 ( 16.35) *Subject to approval by the General Meeting of shareholders on 28 April

41 APPENDIX Shareholding.Shareholding Annualised capital turnover rate of 38% based on the float Annualised capital turnover rate of 25% Free float* 68.3% (voting rights 52.6%) Holdaffine 31.7% (voting rights 47.4%) * Of which Forum Partners, Orexim and La Tricogne : respectively 9,99%, 7.74% and 5.97% of capital and 7.46%, 5.78% and 4.45% of voting rights.affine is listed on NYSE Euronext Paris 31 Dec15 Number of shares 10,056,071 Share price Market capitalisation 164.4m Change in % EPRA earnings per share 1.15 Ticker (Bloomberg / Reuters) IML FP / BTPP.PA 40

HALF-YEAR RESULTS. Presentation of 31 July 2013

HALF-YEAR RESULTS. Presentation of 31 July 2013 HALF-YEAR RESULTS 2013 Presentation of 31 July 2013 AFFINE KEY TAKEAWAYS EPRA Earnings down due to disposals (-) Rental income down as a consequence of 2012 disposals (-) Negative global result from associates