Patrimoine Et Commerce · EURONEXT:PAT
Patrimoine Et Commerce — Patrimoine & Commerce — H1 2016 Earnings Presentation
34 slides from Patrimoine Et Commerce's earnings presentation, Sep 28, 2016
Slide 1: 2016 1st Half Results
2016 1ST HALF RESULTS SFAF MEETING, 28TH SEPTEMBER 2016 The The low cost low retail cost park retail park specialist specialist
Slide 2: Disclaimer
Disclaimer This document was prepared by Patrimoine & Commerce for the sole purpose of presenting its first half results on 28 September 2016. This document may not be copied or circulated, in whole or in part, without the Company’s prior approval. Patrimoine & Commerce cannot be held liable if this
Slide 3: Contents
CONTENTS 1. Patrimoine & Commerce, A dynamic half year 2. Patrimoine & Commerce, The successful project of a value-oriented SIIC The low cost retail park specialist 3
Slide 4: Key figures as at June 2016
Key figures as at 30 June 2016 m² €m 383 000 surface area 20.5 rental income (1) 100% of assets +24% vs June 2015 €m 662 total asset value (2) 44.5% LTV (3) +30 M€ vs Dec. 2015 7.4% Capitalization rate(4) € 23.7 NAV (5) (1) Gross rental income (2) Excluding taxes (incl. group share of Cherbourg and
Slide 5: Highlights of the 1st half of 2016
Highlights of the 1st half of 2016 Acquisitions / projects totaling more than 26 000 m² > Provins (77) - retail park measuring 3 240 m² > Loches (37) - retail park measuring 6 228 m² > Lempdes - Clermont-Ferrand (63) - retail park measuring 6 800 m² > Champniers - Angoulême (16) - retail park measur
Slide 6: Champniers retail park - Angoulême (16)
Champniers retail park - Angoulême (16) Surface area: 10 100 m² The low cost retail park specialist 6
Slide 7: 1. 2016 1st Half Results
1. 2016 1ST HALF RESULTS A DYNAMIC HALF YEAR Thelow The lowcost costretail retailpark parkspecialist specialist 7
Slide 8: Funds From Operations growth of +25.7%
Funds From Operations growth of: +25.7% 6 months 6 months Variation Variation In €m 30/06/16 30/06/15 in M€ % Gross rental income 20.5 16.6 +3.9 +23.7% Net rental income 19.6 15.9 +3.7 +23.2% Operating expenses (2.1) (1.7) (0.4) +24.0% Normative EBITDA(1) 17.5 14.2 +3.3 +23.1% Non-SIIC assets curren
Slide 9: Income statement (cont'd)
Income statement (cont’d) 6 months 6 months Variation Variation In €m 30/06/16 30/06/15 in M€ % Funds From Operations (FFO) 12.6 10.0 +2.6 +25.7% Change in FV of properties 1.1 0.7 +0.4 n.a. Change in FV of financial instruments (2.7) 2.1 (4.8) n.a. Equity method investees (excluding 0.2 0.1 +0.1 n.
Slide 10: Strong growth in gross rental income
Strong growth in gross rental income +23.7% In €m 4.3 0.1 (0.4) 20.5 16.6 Gross rental Indexing, Turnover Acquisitions Gross rental income renegotiations, and deliveries income 30 June 2015 and other 30 June 2016 The low cost retail park specialist 10
Slide 11: Revenue resilience
Revenue resilience 96% 113 €/m² 2% Average rent, Occupancy Turnover rate retail parks 2% 262 €/m² Unpaid/late Average rent, 74% ILC payments Shopping malls 23% ICC and centers Lease expiration dates (end of lease) €6m €4m €2m Automatic 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 >2026 renewal
Slide 12: Very good performance indicators
Very good performance indicators 89% 95% Reinvoicing Net rental income rate(1) / Rental income 89% 64% 11% EBITDA / FFO / G&A Net rental Net rental income income (1) Restatement of Croix St Jacques/Ville du Bois The low cost retail park specialist 12
Slide 13: Solid financial structure
Solid financial structure In €m 718 718 Equity (group share) 292 Stable NAV €23.7 Portfolio’s appraisal value (interest only strip) 636 €662m 24 Minority interests incl. group share of ownership in assets owned by entities consolidated using the equity method 337 Financial debt Treasury 32 Other 65
Slide 14: Dynamic investment strategy
Dynamic investment strategy 29.5 1.4 In €m (0.7) 636.0 606.0 Portfolio’s Acquisitions Fair value Disposals Portfolio’s appraisal value and deliveries (result) appraisal value 1 January 2016 30 June 2016 The low cost retail park specialist 14
Slide 15: LTV in line with objectives
LTV in line with objectives Net debt in €m LTV in % 300 283 65% 262 250 214 222 55% 199 200 46.1% 46.4% 44.5% 150 43.2% 45% 39.0% 100 35% 50 0 25% Dec. Dec. Dec. Dec. June 2012 2013 2014 2015 2016 The low cost retail park specialist 15
Slide 16: Pro-active debt management
Pro-active debt management 3.53X 3.46X 93% 3.44X Hedged 3.32X 3.6% 3.6% 3.4% 3.2% 5.8 years Average maturity Dec. June Dec. June 2014 2015 2015 2016 ICR ratio Average interest rate The low cost retail park specialist 16
Slide 17: Successful stock dividend payment
Successful stock dividend payment +59% Dividend in 4 years Yield € / share € 1.00 % of FFO 1.00 0.90 € 0.85 60% € 0.80 60% 0.80 50% 0.70 € 0.63 53% 0.60 Stock dividend 40% 0.50 subscribed 40% +70% 0.40 30% 0.30 28% 0.20 20% 0.10 10% 2012 2013 2014 2015 The low cost retail park specialist 17
Slide 18: 2. Patrimoine & Commerce: The successful project of a value SIIC
2. PATRIMOINE & COMMERCE THE SUCCESSFUL PROJECT OF A VALUE SIIC The low cost retail park specialist 18
Slide 19: Market profile of an institutional SIIC
Market profile of an institutional SIIC Stock price Shareholders Base 100 since 31 Dec. 2012 as of 13 July 2016 €300m market cap. 180 Float Duval Family Patrimoine & Commerce 23.2% 160 +62% 24.4% 140 +41% Robbe Family 6.3% IEIF SIIC France Predica 120 19,8% Vergely Family 100 12.9% Suravenir BPVF 80
Slide 20: Governance compliant with MiddleNext Code
Governance compliant with MiddleNext Code Supervisory Board 15 members, including 11 independent Chairman: M. Louis-Victor Investment Committee Audit Committee Compensation Committee 4 independent members / 5 1 independent member / 3 3 independent members / 4 Chairman: M. Ranjard Chairman: M. Louis-
Slide 21: A player with critical mass
A player with critical mass > 77 assets 96% SIIC assets > 383 000 m² > €662m assets value (group share) > 4 regional offices Assets in m€ CAGR 24% 662 632 489 164 2009 2012 2015 S1 2016 The low cost retail park specialist 21
Slide 22: Strengthening territorial coverage
Strengthening territorial coverage Lexy (54) Mulhouse (68) Cergy (95) Champagne-au-Mont-d’Or (69) Buchelay (78) Saint Priest (69) Plérin (22) Salon-de-Provence (13) Poitiers (86) Rivesaltes (66) Cognac (16) Soyaux (16) Limoges (87) A pipeline worth €214m In M€ 80 Committed pipeline Identified pipeli
Slide 23: Attractive nationwide retailers
Attractive nationwide retailers 90% TOP 15 retailers Nationwide Breakdown in rents 38% of total rents brands by type of retailer Services Food 6% 8% Leisure & Beauty & Culture Health 17% 9% Household Personal goods products 28% 33% The low cost retail park specialist 23
Slide 24: Institutionalization of financing
Institutionalization of financing 6 to 79% €350m €300m 18% 19% €250m 21% 12% €200m 61% €150m 57% 50% 44% €100m 6% 19% €50m 94% 81% 44% 29% 23% 21% 0 Dec. June Dec. Dec. Dec. June 2009 2011 2012 2014 2015 2016 Financial lease Mortgage loans Bonds The low cost retail park specialist 24
Slide 25: P&C's shift to a value SIIC
P&C’s shift to a value SIIC Assets X4 NAV X5 Dividend 60% of FFO Successful stock Foncière dividend Sepric +70% merges with P&C Trimax EuroPP deal issue Predica invests Integration of Sépric Suravenir Suravenir bond BPVF invests Creation invests P&C End Dec. June Sept. Dec. Aug. Dec. Q1 H2 July 2009
Slide 26: Winning strategy of a value SIIC
Winning strategy of a value SIIC Leader in French low cost retail parks Target asset valuation of €1bn Yield above 7.0% Loan To Value ratio below 50% Dividend payout around 60% of FFO Cergy retail park The low cost retail park specialist 26
Slide 27: Appendix
APPENDIX The low cost retail park specialist 27
Slide 28: Cognac retail park (16)
Cognac retail park (16) Surface area: 4 500 m² The low cost retail park specialist 28
Slide 29: Poitiers retail park (86)
Poitiers retail park (86) Poitiers Tranche 1 & 2 Surface : 5 500 m² Signature prévue ASIA Restaur le 30/09/16 ant The low cost retail park specialist 29
Slide 30: Champagne au Mont d'Or retail park (69)
Champagne au Mont d’Or retail park (69) Lyon - West Surface area: 4 500 m² The low cost retail park specialist 30
Slide 31: Wittenheim retail park (68)
Wittenheim retail park (68) D429 Surface area: 23 000 m² The low cost retail park specialist 31
Slide 32: Cergy retail park (95)
Cergy retail park (95) Surface area: 21 100 m² The low cost retail park specialist 32
Slide 33: Lexy retail park (54)
Lexy retail park (54) Longwy Surface area: 16 900 m² The low cost retail park specialist 33
Slide 34: Acquisitions completed in 1st half of 2016
Acquisitions completed in 1st half of 2016 Provins (77) 3 240 m² Cap. rate: 7.5% Tenants: Décathlon, Orchestra Loches (37) 6 228 m² Cap. rate: 7.7% Tenants: Intersport, Gémo, ChaussExpo Lempdes (63) 6 800 m² Cap. rate: 8.4% Tenants: Fly The low cost retail park specialist 34
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