Q1 2015: Keep on delivering
CONTENTS
> KEY EVENTS OF THE PERIOD > OPERATING PERFORMANCE > KEY TAKEWAYS
FONCIÈRE DES RÉGIONS
Q1 2015
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Key events of the period
Q1 2015
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KEY EVENTS OF THE PERIOD
STRATEGIC POSITIONING A €10.7 billion1 GS portfolio (€17.3 billion at 100%) on buoyant markets
1 focus and 2 diversifications 62%
Offices (France 43%; Italy: 19%) > Sound fundamentals; market depth > Attractive yield; value-creating pipeline
€10.7 bn GS 18% Residential Germany
Non-strategic 7%
13%
> Sound economy; buoyant market > Organic growth and development potential
Hotels/Service sector > Leadership position; impressive track record > Attractive market; partnership logic
Recognised, responsive local platforms Residential, Hamburg
Vélizy-Meudon, Paris Region FONCIÈRE DES RÉGIONS
1 At
end-march 2015 post signed operations
Q1 2015
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KEY EVENTS OF THE PERIOD
MAJOR AGREEMENT WITH TELECOM ITALIA Portfolio rented to Telecom Italia
2nd largest tenant
€1.7 bn of assets (€0.8 bn GS) 8.4% of the portfolio GS
(10% of the GS rental income) €117 m
6.7-year average firm lease maturity
of rental income (€57 m GS)
An agreement leading to 3 main improvements on asset and cash-flow quality
1
Milan
> +9 years of average firm lease maturity to 15 years Improved cash-flow visibility > 6.9% discount on the rents on average
2
Improved asset quality
3
Reduction of Telecom Italia exposure
> €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
Reap the benefits of the partnership strategy FONCIÈRE DES RÉGIONS
Q1 2015
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KEY EVENTS OF THE PERIOD
FRANCE OFFICES: PURSUANCE OF THE PIPELINE Committed pipeline €518 million €309m delivered in 2015
62% Pre-let 71% for 2015 deliveries
Yield on cost > 7% Value creation > 10%
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
Silex 1, Lyon
Largest business district in Lyon of 1 million of m² of offices; vacancy rate Delivery in 2016: €47 million; €280/m² of target rents
FONCIÈRE DES RÉGIONS
Silex 1, Lyon
Q1 2015
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KEY EVENTS OF THE PERIOD
DELIVERING IN GERMAN RESIDENTIAL 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
Investments in the best locations of high rental growth potential cities > Localizations (blue spots) of the €182 million and €239 million investments in Berlin and Hamburg
Berlin
Rating ImmoScout24
Hamburg
€3.2 billion (€1.9 billion GS) of assets FONCIÈRE DES RÉGIONS
Q1 2015
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KEY EVENTS OF THE PERIOD
HOTELS: STRENGTHENING THE LEADERSHIP POSITIONING 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)
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
Motel One, One, Berlin Motel Berlin FONCIÈRE DES RÉGIONS
B&B Hotel, Paris
Accor, Paris Region Q1 2015
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KEY EVENTS OF THE PERIOD
STABLE AND STRONG SHAREHOLDER STRUCTURE 13% Covea 8%
Success of the capital increase
Delfin 28%
> €255 million to finance ongoing investments > Participated in by all the large shareholders of Foncière des Régions
ACM Shareholder structure post capital increase
7%
Groupe Crédit Agricole
> 3,917,722 new shares (i.e. 6.2% of the share capital) 44% Public
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 Delphine Benchetrit
Supporting the Group’s development and strategy FONCIÈRE DES RÉGIONS
Q1 2015
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Operating performance
Q1 2015
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OPERATING PERFORMANCE
Q1 2015 REVENUES: +1.1% AT €132.9 MILLION > 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)
Residual firm terms of leases post Telecom Italia agreement
Rental income (€m)
Change
Change on like-for-like basis
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
132.9
+1.1%
-0.1%
96.9%
6.6 years
Total
Occupancy rate
Positive indexation
+4.1 years of maturity -0.4% excl. Turin 2014 vacancy +2.9% in Berlin, Dresden and Leipzig +1.5% in Hotels including +2.2% for Accor portfolio
+1 year with Telecom Italia
Indexation: +0.7% Occupancy rate: -0.7% Renewals: -0.1%
Our diversifications outperform on rental growth FONCIÈRE DES RÉGIONS 1 Core
Q1 2015 portfolio
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Key takeaways
Q1 2015
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KEY TAKEAWAYS
KEY TAKEAWAYS FROM Q1 2015 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
Silex 1, Lyon
Residential, Hamburg Motel One, Berlin
Via deOne, Pretis, Naples Motel Berlin
A good start to the year FONCIÈRE DES RÉGIONS
Q1 2015
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AGENDA
H1 2015 results: 23 July 2015
FONCIÈRE DES RÉGIONS
Q1 2015
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Q1 2015 TURNOVER
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%
208.8
207.6
-0.6%
127.0
129.2
1.8%
-0.1%
97%
7.7
6.1
-21.0%
4.6
3.7
-19.0%
na
3%
216.5
213.7
-1.3%
131.6
132.9
1.1%
-0.1%
100%
(€ million)
Total Strategic activities Other Total rents
Total rent does not take into account rental income from Logistics (€4.9 million), reclassified in 2014 as Discontinued Operations
FONCIÈRE DES RÉGIONS
Q1 2015
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Contact Paul Arkwright Tel.: +33 1 58 97 51 85 Mobile: +33 6 77 33 93 58
[email protected] FONCIÈRE DES RÉGIONS
Paris 30, avenue Kléber 75116 Paris Tel.: +33 1 58 97 50 00
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