Slide 1: 3rd Quarter Results 2014/2015
3rd Quarter Results 2014/2015 31 March 2015 1 Brussels, 12 May 2015
Slide 2: Table of contents
Table of contents ▬ Highlights Q3 2014/2015 ▬ Strategy ▬ Achievements ▬ Portfolio analysis ▬ Financials ▬ Shares & shareholders ▬ Outlook ▬ Conclusion 2
Slide 3: Highlights Q3 2014/2015
Highlights Q3 2014/2015 ‘“Syae aedifica The urban way to live
Slide 4: Highlights Q3 2014/2015 (1)
Highlights Q3 2014/2015 (1) (As of 31 March 2015) ▬ 2 additions since 1 January 2015, 1 in Belgium and 1 in Germany ▬ Senior housing: 70 % of the portfolio ▬ German portfolio: > €100 m, 12 % of total portfolio ▬ Occupancy rate: 98.0 % for the unfurnished portfolio and 76.8 % for furnished apartments
Slide 5: Highlights Q3 2014/2015 (2)
Highlights Q3 2014/2015 (2) (As of 31 March 2015) ▬ Total fair value investment properties: €994 m, +€209 m or +27 %, compared to 30 June 2014 ▬ Positive change of investment properties: +€16 m (of which €11 m, i.e. +1.1 %, concerning marketable investment properties) compared to 30 June 2014 ▬ Debt
Slide 6: Portfolio YTD Q3 2014/2015
Portfolio YTD Q3 2014/2015 (As of 31 March 2015) ▬ Total portfolio outlook: €1,113 m — €990 m (incl. projects on balance sheet, excl. assets held for sale) — €123 m (committed investments in pipeline) ▬ Average remaining lease maturity: 19 years 6
Slide 7: Strategy
| 7 Tarr aedifica Strategy The urban way to live
Slide 8: Aedifica
Aedifica ▬ Belgian REIT (RREC/SIR/GVV) — market cap > €650 m — free float of 95 % — see appendix for characteristics of a Belgian REIT ▬ Investing in the residential market — approx. €990 m investment properties — approx. 469,000 m² ▬ Focusing on demographic evolutions — Belgium — Germany ▬ Year-end
Slide 9: Aedifica
Aedifica | 7 TaTTre aedifica The urban way to live AGEING IN WESTERN EUROPE PILLAR N°4 >70% Senior housing Hotels & other GROWING POPULATION IN MAIN Apartment BELGIAN buildings CITIES PILLAR N°2 <20%
Slide 10: Demographic evolution: Ageing in Belgium
Demographic evolution Ageing in Belgium Source: "Perspectives de population 2014-2060", Federal Planning Bureau, 2015. 10
Slide 11: Demographic evolution: Ageing in Germany
Demographic evolution Ageing in Germany Source: "Bevölkerung Deutschlands bis 2060", Statistisches Bundesamt (Deutschland), 2009 11
Slide 12: Demographic evolution: Growing population - Brussels
Demographic evolution Growing population - Brussels Source: Federal Planning Bureau, 2015. 12
Slide 13: Demographic evolution: Growing population - Antwerp
Demographic evolution Growing population - Antwerp Source: Bevolkingsprognoses Antwerpen 2009-2030 (Stad Antwerpen) Scenario 1: Positive migration + increasing fertility. Scenario 2: Positive migration + stable fertility. Scenario 3: stable migration + stable fertility. Scenario 4: stable migration
Slide 14: Segment information
Segment information (As of 31 March 2015) CORE NON-CORE Senior housing Apartment buildings in Hotels in Western Europe Belgium’s main cities in Belgium Weight*: 70 % 22 % 8% Yield*: 5.9 % 5.5 % 6.2 % EBIT margin**: 100 % 57 % 99 % Cash flow Value play1 Cash flow (long-term leases) (long-term l
Slide 15: Achievements
| 7 Pa ‘err aedifica The urban way to live Achievements
Slide 16: Milestones (1)
Milestones (1) ▬ Nov. 2005: Creation of Aedifica ▬ Dec. 2005: Filed as Vastgoedbevak/Sicafi + 1st acquisitions ▬ Oct. 2006: IPO €m ▬ Oct. 2010: 1st SPO CAGR: 22% ▬ Dec. 2012: 2nd SPO ▬ Oct. 2014: SIR/GVV 16
Slide 17: Milestones (2)
Milestones (2) Marketable property at fair value (€956 m, incl. assets held for sale) 17
Slide 18: Milestones (3)
Milestones (3) Marketable property at fair value (€956 m, incl. assets held for sale) 18
Slide 19: Equity: Latest SPO
Equity Latest SPO (Dec. 2012) ▬ Reminder: Gross proceeds = €100 m ▬ Since then, significant growth of investment properties: — 30 Sept. 2012: €606 m — 30 June 2014: €785 m + €388 m — 31 March 2015: €994 m 19
Slide 20: Equity: Optional dividend 2013/2014
Equity Optional dividend 2013/2014 ▬ November 2014 ▬ Successful 1st time optional dividend ▬ 64% of shareholders opted for dividend in new shares ▬ Approx. €11 m capital increase 20
Slide 21: Equity: Latest contribution in kind
Equity Latest contribution in kind ▬ 4 Dec. 2014: Partial demerger of La Réserve Invest SA, owner of 2 buildings (Olen and Wetteren) ▬ Issuance of new Aedifica shares in the amount of approx. €23 m ▬ Full dividend entitlement in exchange for the payment of a fee to Aedifica ▬ Private placement at 3%
Slide 22: Team Q3 2014/2015
Team Q3 2014/2015 ▬ Aedifica strenghtens its team — New subsidiary in Germany: Aedifica Asset Management GmbH, led by Mr Martin Engel — New COO function: Ms Laurence Gacoin — New CLO function: Ms Sarah Everaert — Management Committee established as of 12 May 2015 Name Function Stefaan Gielens Chief
Slide 23: Investments in Germany (1)
Investments in Germany (1) ▬ Germany: — 2013: 1st investments abroad since Aedifica’s creation in 2005 — Aedifica = 1st Belgian REIT to invest in Germany ▬ Portfolio of 14 assets (13 Pflegeheime + 1 Betreutes Wohnen): — Capacity > 1,100 residents — Total fair value > €100 million — Initial gross ren
Slide 24: Investments in Germany (2)
Investments in Germany (2) ▬ Actual German portfolio: Herkenrath Dresden Kreischa Sonneberg Bonn 24
Slide 25: Investments in Germany (3)
Investments in Germany (3) Rheinbach Wenden-Rothemühle Olpe-Rüblinghause Bad Harzburg Kalletal Kirchlengern Enger Kierspe 25
Slide 26: Investments in Germany (4)
Investments in Germany (4) Service-Residenz Schloss Bensberg* *Copyright: © C. Arlinghaus. 26
Slide 27: Investments & completions (1)
Investments & completions (1) YTD 2014/2015 (As of 31 March 2015) — 7 acquisitions in Belgium1 ̶ Oase Aarschot Wissenstraat (Aarschot) ̶ Oase Tienen (Tienen) ̶ De Notelaar (Olen) ̶ Overbeke (Wetteren) ̶ Halmolen (Halle-Zoersel) ̶ Villa Temporis (Hasselt) ̶ La Ferme Blanche (Remicourt) — 2 completion
Slide 28: Investments & completions (2)
Investments & completions (2) YTD 2014/2015 (As of 31 March 2015) — 9 acquisitions in Germany ̶ Seniorenresidenz Am Stübchenbach (Bad Harzburg) ̶ Seniorenresidenz Mathilde (Enger) ̶ Die Rose im Kalletal (Kalletal) ̶ Seniorenresidenz Kierspe (Kierspe) ̶ Seniorenresidenz Klosterbauerschaft (Kirchlenge
Slide 29: Disposal
Disposal YTD 2014/2015 — Semi-industrial building Bara sold on 12 Feb. 2015 ̶ Price: €0.6 million ̶ Net gain on disposal: > 50% 29
Slide 30: Investments 2014/2015 (1)
Investments 2014/2015 (1) Oase Aarschot Wissenstraat Eyckenborch September 2014 10 July 2014 Completion of extension Acquisition of 1 rest home in Aarschot and renovation works of (Province of Flemish Brabant) 1 rest home in Gooik • €24 m invested amount (Province of Flemish Brabant) • 164 units (of
Slide 31: Investments 2014/2015 (2)
Investments 2014/2015 (2) Seniorenresidentz Klosterbauerschaft 3 November 2014 Acquisition* of a portfolio of 8 rest homes in Germany • More than €60 m invested amount • 642 units * the usual outstanding conditions in Germany (mainly of administrative nature) were lifted on 16 December 2014. Klein V
Slide 32: Investments 2014/2015 (3)
Investments 2014/2015 (3) Halmolen 11 December 2014 Acquisition of a rest home in Belgium (Province of Antwerp) • €18 m invested amount • 140 units Villa Temporis 18 December 2014 Acquisition of 2 rest homes in Belgium (Provinces of Limburg and Liège) • €9 m invested amount La Ferme Blanche • 101 un
Slide 33: Investments 2014/2015 (3)
Investments 2014/2015 (3) Service-Residenz Schloss Bensberg 1 March 2015 Acquisition of an assisted-living complex in Germany • €14 m invested amount • 87 apartments 33
Slide 34: Portfolio analysis
Portfolio analysis | 7 Pa as ee aedifica The urban way to live 34
Slide 35: Segments
Segments (As of 31 March 2015) Apartment buildings (865 apartments in 36 sites) 22 % Senior housing (6,365 units 70 % 8% 6 hotels & other in 67 sites) (521 rooms) Marketable property at fair value (€956 m, incl. assets held for sale) 35
Slide 36: Geographical breakdown
Geographical breakdown (As of 31 March 2015) Germany Wallonia 12 % 12 % Brussels 31 % 45 % Flanders Marketable property at fair value (€956 m, incl. assets held for sale) 36
Slide 37: Main tenants
Main tenants Breakdow n of senior housing 31 Decem ber 2014 30 June 2014 contractual rents by group controlling legal entities in contractual relation w ith Aedifica Senior housing 70% 63% Belgium 57% 57% Armonea 13% 13% Senior Living Group* 13% 16% Orpea 12% 14% Soprim@ 8% 10% Oase 5% 2% Vulpia 3%
Slide 38: Lease maturity
Lease maturity (As of 31 March 2015) Initial lease maturity < 15 years 21 % 79 % ≥ 15 years, irrevocable Average remaining lease maturity 19 years Marketable property at fair value (€956 m, incl. assets held for sale) 38
Slide 39: Age of buildings
Age of buildings (As of 31 December 2014) Other contracts Buildings > 10 years 15 % Other contracts Buildings between 19 % 66 % Long-term 0-10 years triple net contracts Marketable property at fair value (€941 m, incl. assets held for sale) 39
Slide 40: Occupancy rate
Occupancy rate Portfolio excl. furnished apartments* (93 % of portfolio) 98 % 95 % Very high and stable occupancy rates *Definition Total portfolio (excl. furnished apartments) : (contractual + guaranteed rents) / (contractual rents + ERV for unlet spaces) 40
Slide 41: Occupancy rate
Occupancy rate Furnished apartments* (7 % of portfolio) 93 % 71 % Volatility due to short-term contracts * Definition Furnished : rented days QTD / total number of days QTD. YTD March 2015: 76.8 %; YTD June 2014: 78.0 %; YTD March 2014: 76.8 %. 41
Slide 42: Yields on fair value
Yields on fair value (As of 31 March 2015) Weighted average 5.9 % 42
Slide 43: Segment EBIT margins
Segment EBIT margins* (As of 31 December 2014) Senior Apartment Hotels buildings Unallocated & housing & TOTAL inter-segment other FY 2007/2008 100 % 64 % 98 % - 68 % FY 2008/2009 100 % 64 % 96 % - 71 % FY 2009/2010 100 % 64 % 99 % - 73 % FY 2010/2011 100 % 64 % 98 % - 75 % FY 2011/2012 100 % 63 % 9
Slide 44: Valuation of property
Valuation of property*: 2008 2015 FY 2008/2009 FY 2009/2010 FY 2010/2011 FY 2011/2012 FY 2012/2013 FY 2013/2014 Q3 2014/2015 €k % €k % €k % €k % €k % €k % €k % Senior housing 13 0% 1,684 1% 6,072 2% 5,991 2% 7,347 2% 5,896 1% 10,177 2% Apartment buildings -7,851 -4% -1,904 -1% 1,552 1% 3,032 2% -8
Slide 45: Development projects
Development projects (As of 31 March 2015) Projects and renovations Estim ated Inv. as of Future Date of Com m ents inv. 31 March 2015 inv. com pletion (in € m illion) I. In progress Residentie Sporenpark Beringen 17 15 3 2014/2015 Construction of a new rest home Rue Haute Brussels 2 2 0 2014/2015 R
Slide 46: Development projects
Development projects 228 -24 -24 -20 -18 +4 -1 159 +20 -13 +10 -5 -4 +6 0 0 46
Slide 47: Financials
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Slide 48: Income Statement: Business driven
Income Statement Business driven Income Statement - analytical scheme * 31 December 2014 31 December 2013 Var. (x €1,000) Rental income 22,914 19,453 +18% Rental-related charges -5 -45 Net rental income 22,909 19,408 +18% Operating charges -4,910 -4,520 Operating result before result on portfolio 17
Slide 49: Income Statement: Business driven
Income Statement Business driven Income Statement - analytical scheme * 31 December 2014 31 December 2013 Var. (x €1,000) Rental income 22,914 19,453 +18% Rental-related charges -5 -45 Net rental income 22,909 19,408 +18% Operating charges -4,910 -4,520 Operating result before result on portfolio 17
Slide 50: Rental income
Rental income (As of 31 March 2015) + 6,617 - 60 - 103 36,286 29,832 Change: +37 % -1 % -3 % +22 % Like-for-like change: +1 % -2 % -3 % -1 % 22 % increase YoY 50
Slide 51: Result excl. IAS 39 & IAS 40
Result excl. IAS 39 & IAS 40 (As of 31 December 2014) +3,705 -191 -11 -64 -328 -2,679 * +2,089 +379 -89 11,793 -121 -145 9,247 51
Slide 52: Result excl. IAS 39 & IAS 40 vs budget
Result excl. IAS 39 & IAS 40 vs budget (As of 31 December 2014) * 11,793 52
Slide 53: Income Statement: Market driven
Income Statement Market driven Income Statement - analytical scheme 31 December 2014 31 December 2013 (x €1,000) Profit excl. IAS 39 & IAS 40 11,793 9,247 IAS 39 impact: changes in fair value of financial instruments -3,294 926 IAS 40 impact: changes in fair value of investment properties 12,722 990
Slide 54: Hedging policy
Hedging policy (As of 31 December 2014) ▬ Economic stability and foreseeability of Business driven: interest cash Avg effective interest rate of 3.2 %, lower than H1 PY (4.3 %) outflows... ▬ ... even in spite Market driven: of accounting Change in FV of derivatives (non cash items) under IAS 39 in 2
Slide 55: Consolidated balance sheet
Consolidated balance sheet (€ m) (As of 31 December 2014) Assets Equity & Liabilities 55
Slide 56: Debt-to-assets ratio
Debt-to-assets ratio (As of 31 March 2015) Headroom* : - Debt increase of €79 m without investments or €199 m with investments - Drop of MTM of buildings of 13 % * Based on bank covenant of max. 60 %. Based on legal max. of 65 %, headroom is respectively €129 m, €371 m and 20 %. 56
Slide 57: Credit facilities
Credit facilities (As of 31 March 2015) Credit facilities Maturity Amount (€m) 2014/2015 0 2015/2016 85 2016/2017 150 2017/2018 92 2018/2019 102 2019/2020 80 2020/2021 2 2021/2022 25 > 2022/2023 15 Total credit facilities 551 No credit facility maturing before 30 June 2015 57
Slide 58: Net asset value
Net asset value Net asset value per share (in €) 31 March 2015 30 June 2014 Var. Based on fair value of investment properties Net asset value based on fair value 39.22 36.84 6% IAS 39 impact 4.36 3.73 Net asset value after deduction of dividend, excl. IAS 39 43.58 40.57 7% Premium on 4 May 2015: 60
Slide 59: Number of shares
Number of shares Num ber of shares 31 March 2015 30 June 2014 Number of shares outstanding* 10,924,613 10,249,083 Total number of shares 10,924,613 10,249,117 Total number of shares on the stock market 10,924,613 10,162,165 Weighted average number of shares outstanding (IAS 33) 10,547,977 9,917,093
Slide 60: Value potentially not reflected in the NAV
Value potentially not reflected in the NAV ▬ Belgian REIT → highly regulated framework ▬ Assessment: — Apartment buildings: valued as a whole vs individual units — Senior housing: yield compression — Inflation-linked contracts ▬ Capital gains potential ▬ Pipeline: — Committed — Pre-let ▬ Track recor
Slide 61: EPRA
EPRA ▬ Aedifica included in the EPRA indices Key perform ance indicators according to the EPRA principles 31 Decem ber 2014 31 Decem ber 2013 EPRA Earnings (in € /share) 1.14 0.93 EPRA Cost Ratio (including direct vacancy costs) (in %) 21 23 EPRA Cost Ratio (excluding direct vacancy costs) (in %) 21
Slide 62: Shares & shareholders
| 7 Pa ‘err aedifica The urban way to live Shares & shareholders gi wir 62
Slide 63: Dividend track record
Dividend track record Capital increase of Capital increase of € / share 15 October 2010 7 December 2012 Theoretical dilution of DPS after rights issues 2007 2008 2009 2010 2011 2012 2013 2014 f 2015* * 2014/2015 forecast dividend (see section 7 of the Interim Board of Directors’ Report included in t
Slide 64: Share price since IPO
Share price since IPO (As of 4 May 2015) Spot Var. (%) Aedifica 62.91 69 BEL MID 4,466.08 21 EPRA Belgium 1,206.36 -15 EPRA Europe 2,229.44 -16 Aedifica: based on the IPO price (€41), adjusted to take into account the rights issues of 2010 (- €1.89) and 2012 (- €1.93), i.e. an adjusted IPO price of
Slide 65: Total return since IPO
Total return since IPO (As of 4 May 2015) Var. (% ) Aedifica total return 88.70 138.58 Bel Re Inv Trusts 1,851.52 63.76 EPRA B. total return 3,277.41 51.76 EPRA E. total return 2,420.60 12.66 Aedifica: based on the IPO price (€41), adjusted to take into account the rights issues of 2010 (- €1.89) an
Slide 66: Shareholding
Shareholding* (Update as of 17 March 2015) Free float 94.54 % 5.46 % Wulfsdonck Investment via Finasucre * A total of 10,924,613 shares are listed on Euronext Brussels. 66
Slide 67: Rankings
Rankings ▬ One of the highest free floats of all Belgian REITs ▬ 4th largest liquidity amongst all Belgian REITs1 (Daily average: €550k at the end of April 2015; €230k at the end of June 2012 before capital increase of Dec. 2012) ▬ 4th largest Belgian REIT in terms of fair value1 ▬ 5th largest marke
Slide 68: Awards: EPRA
Awards: EPRA ▬ “EPRA Reporting: Best Practices Recommendations” (BPR) ▬ Annual Report 2012/2013 — 1st implementation of BPR — Silver Award ̶ For annual reports scoring highly based on compliance with the BPR — Most Improved Award ̶ For companies that have outstandingly improved the compliance of the
Slide 69: Awards: ABAF/BVFA
Awards: ABAF/BVFA ▬ Belgian Association of Financial Analysts ▬ 54st Award for Financial Communication ▬ Small & Mid Cap ranking — 1st place in the Investor Relations category — 2nd place overall — 5th in the Non Financial Information ▬ Bel 20 and Small & Mid Cap ranking L’Echo, 17 October 2014, p.
Slide 70: Corporate governance
Corporate governance ▬ Transparency ▬ Board of Directors NV/SA 10 Directors Management in the box • 8 non-executive Directors of which 5 independent ones Belgian Code 2009 on • 2 executive Directors Corporate Governance Audit Committee Nomination & Remuneration Committee Investment Com
Slide 71: Outlook
Outlook The urban way to live 71
Slide 72: Outlook FY 2014/2015
Outlook FY 2014/2015 ▬ Focus on investments — Development pipeline: all deliveries on track — New investments in senior housing: ̶ Germany: targets being studied ̶ Belgium: targets being studied ▬ Divestments: — Apartments: threshold of 80 % residential investments to be achieved in 2015 (current le
Slide 73: Outlook for medium term
Outlook for medium term ▬ Objective for future investments: — Enhancing long-term cash flows in senior housing — Growing in the German market — Exploring new segments ▬ Maintaining sound balance sheet ▬ > €1 billion portfolio 73
Slide 74: Conclusion
| 7 Tn aedifica Conclusion The urban way to live en Ts T Vecchia Wace: Vat
Slide 75: Conclusion
Conclusion Attractiveness for shareholders: ▬ Strong underlying demographic trends ▬ Diversification: fair value history of portfolio showing resilience and long-term growth potential ▬ Average remaining lease duration: 19 years ▬ Investment, equity and debt-financing track record ▬ Dividend track r
Slide 76: Stefaan Gielens - Chief Executive Officer Jean Kotarakos - Chief Financial Officer
Stefaan Gielens - Chief Executive Officer Jean Kotarakos - Chief Financial Officer Martina Carlsson - Control & Communication Manager 76
Slide 77: Aedifica SA/NV
Aedifica SA/NV Public REIT under Belgian Law Regulated Real Estate Company (RREC) Société immobilière réglementée (SIR) Gereglementeerde vastgoedvennootschap (GVV) Avenue Louise 331 1050 Brussels Tel: +32 (0)2 626 07 70 - Fax: +32 (0)2 626 07 71 info@aedifica.be www.aedifica.be 77
Slide 78: Forward looking statement
Forward looking statement To the extent that any statements made in this presentation contain information that is not historical, these statements are essentially forward-looking. The achievement of forward- looking statements contained in this presentation is subject to risks and uncertainties beca
Slide 79: Appendix
Mz Us \ar a co | 3: Oe _ E BE ey Appendix
Slide 80: Belgian REIT
Belgian REIT ▬ “sicafi / vastgoedbevak” until 17 October 2014 ▬ RREC (SIR / GVV) since 17 October 2014 ▬ Investment property: maximum 20 % in one (group of) asset(s) ▬ Appraisal: — At fair value on a quarterly basis by an independant expert — No depreciation of properties ▬ Dividend: at least 80 % o
Slide 81: Triple net leases
Triple net leases ▬ Definition — Right known as “emphythéose/erfpacht” in Belgium: ̶ Real estate contract ̶ Temporary right for tenant to fully make use of the building ̶ Term between 27 and 99 years, irrevocable — Usual additional contractual provision ̶ The tenant incurs operating charges, R&M and
Slide 82: Geographical breakdown: Belgium
Geographical breakdown Belgium (As of 31 March 2015) Senior housing Apartment buildings Hotels & other Excluding Residentie Sporenpark acquired on 28 April 2015. 82
Slide 83: Geographical breakdown: Germany
Geographical breakdown Germany (As of 31 March 2015) Senior housing Apartment buildings Hotels & other Excluding Service-Residenz Schloss Bensberg acquired on 1 March 2015. 83
Slide 84: Notes
Notes | 7 TaTTre aedifica The urban way to live 84
Slide 85: Notes
Notes | 7 TaTTre aedifica The urban way to live 85
Slide 86: Notes
Notes | 7 TaTTre aedifica The urban way to live 86