Aedifica Sa · EURONEXT:AED
Aedifica Sa — Aedifica Sicafi Bruxelle — H1 2023 Earnings Presentation
37 slides from Aedifica Sa's earnings presentation, Aug 2, 2023
Slide 1: Half year results 2023
Half year results 2023 Brussels, 2 August 2023 -1-
Slide 2: Capital Markets Day Finland
Capital Markets Day Finland 3-4 October Matinkartanontie Espoo – Finland -2- Event reserved for institutional investors and by invitation only
Slide 3: Table of content
Table of content 4 Highlights H1 2023 8 Financials 18 Portfolio analysis 28 Outlook 31 Conclusion -3-
Slide 4: Highlights H1 2023
Highlights H1 2023 Residentie ‘t Spelthof Lubbeek – Belgium -4-
Slide 5: Highlights H1 2023
Highlights H1 2023 €110.4 million 8 €596 million 45.6% +28% YoY countries (of which €400m to be debt-to-assets ratio, down to EPRA earnings invested) committed approx. 39.3% post capital investment programme increase July 2023) construction & renovation €154.7 million 609 19 €406 million +18% YoY, 5
Slide 6: Investment activity
Investment activity New investments & pipeline completions1 €77 million 14 new development projects (~ €90 million) announced in H1 2023 19 projects (~ €121 million) completed in H1 2023 1 See H1 2023 press release for more details. -6- €12 million
Slide 7: Portfolio outlook
Portfolio outlook Total portfolio outlook: €6.1 billion €m 6.500 +596 6,054 6.000 5,572 -115 5.500 5.000 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 0 1 Marketable investment properties Assets classified Committed investment programme Portfolio outlook (30/06/2023) as held for sale (30/06/20
Slide 8: Financials
Financials Clondalkin Nursing Home Dublin - Ireland -8-
Slide 9: Income Statement - EPRA Earnings
Income Statement EPRA Earnings EPRA EARNINGS YOY INCREASE OF 28% Consolidated income statement - analytical format 30/06/2023 30/06/2022 (x €1,000) Rental income Rental-related charges 154,715 -611 131,034 -476 +20% Net rental income 154,104 130,558 Operational result before result Operating charges
Slide 10: Income Statement - Net result
Income Statement Net result EARNINGS PER SHARE Consolidated income statement - analytical format 30/06/2023 30/06/2022 (x €1,000) EPRA Earnings* 110,361 85,885 Changes in fair value of financial assets and liabilities Changes in fair value of investment properties 2,522 -82,352 65,180 116,351 -1.20%
Slide 11: Rental income
Rental income (€ m) 160 +12.4 -1.5 154.7 +4.2 +8.0 +1.1 140 131.0 -0.5 120 100 80 18% 60 increase YoY 40 20 Rental Indexation Rent Disposals Deliveries Acquisitions FX impact Rental income renegotiation income Q2 2022 Q2 2023 -11-
Slide 12: Rental income
Rental income (€ m) 160 +5.3 +0.2 154.7 +4.9 +0.2 +4.4 +2.4 +2.6 140 +3.7 131.0 120 100 80 60 18% increase YoY 40 20 Rental Belgium Germany Netherlands United Finland Sweden Ireland Spain Rental income Kingdom income Q2 Q2 2022 2023 +5.4% rent indexation Change: +11.3% +8.6% +16.3% +15.8% +22.0% +8.
Slide 13: Debt-to-assets ratio
Debt-to-assets ratio Financial policy: 56% 56% debt-to-assets ratio ~40% 50% 50% 43% 45% 42% 43% 43% 41% 44% 46% with a maximum of 45% 37% DTA post capital increase July 2023 is approx. 39.3% Bank covenants stand at a maximum of 60%. March June March June Oct Dec March June Dec March June Dec June 2
Slide 14: Credit facilities
Credit facilities Total financial debt: €2,602 m H1: €300 million 4% Investment credits 9% 5% Investment credits - €230 million early 13% 3% Term loans 60% bank refinancing of existing credit Term loans 4% facilities Revolving loans facilities - €70 million new credit 33% 36% Revolving loans 19% fac
Slide 15: Credit facilities - Strong KPIs
Credit facilities Strong KPIs BBB with 6.2x 10.5x stable outlook (>5x by year-end) (<9x by year-end) Credit rating S&P Global ICR1 Net debt/EBITDA2 Unsecured 1.9% 35% financing except (2.1% by year-end) sustainable financing − Hoivatilat: certain Average cost of debt share of drawn debt particularit
Slide 16: Credit facilities - debt maturity profile
Credit facilities Well spread debt maturity profile (in € million) 700 40 600 88 500 95 118 €926 million 400 54 130 334 headroom on committed 300 25 156 15 369 524 credit lines to finance capex 200 443 295 & liquidity needs on July 31 100 230 197 223 12 50 - - - Full back up for the short-term treas
Slide 17: Credit facilities - Interest rate hedging
Credit facilities Interest rate hedging1 100% 2% 4% 2% 86% 14% 13% 10% 90% 13% of debt hedged by derivatives 80% 12% or fixed rate debt as of 30 70% June 2023. 56% 53% 60% 49% 47% After the capital increase 42% (04/07/23), close to 100% of 50% 40% debt is hedged. 30% 20% 5.3 years 38% 38% 38% 37% 32
Slide 18: Portfolio analysis
Portfolio analysis Seniorenhaus Lessingstrasse Würzen - Germany -18-
Slide 19: Healthcare real estate portfolio - segment breakdown
Healthcare real estate portfolio Healthcare segment breakdown FOCUS ON CARE FACILITIES FOR ELDERLY PEOPLE 7% 5% Elderly care homes 16% Senior housing Mixed-use elderly care buildings Child day-care centres 4% 68% Other care segments Marketable investment properties incl. assets classified as held fo
Slide 20: Healthcare real estate portfolio - geographical breakdown
Healthcare real estate portfolio Geographical breakdown DIVERSIFICATION ACROSS EUROPEAN COUNTRIES >0% 1% 6% 23% Belgium 17% Germany Netherlands United Kingdom Finland Sweden 22% 19% Ireland Spain 12% Marketable investment properties incl. assets classified as held for sale (€5,482 m), excl. rights o
Slide 21: Healthcare real estate tenants
Healthcare real estate tenants Tenant diversification1 10% 609 sites with approx. 6% 290 tenants (or >140 5% ‘groups’) representing European, national and 5% local profit and not-for- 53% 4% profit operators 4% No ‘operator group’ 3% leases more than 10% of 3% Aedifica’s consolidated 3% 3% assets Mu
Slide 22: Healthcare real estate tenants
Healthcare real estate tenants Tenant diversification1 3% 7% Profit Predominantly private Non-profit operators Growing public and Public non-profit segments among tenants 90% 1 Based on the contractual rents. -22-
Slide 23: Lease maturity & occupancy rate
Lease maturity & occupancy rate UNEXPIRED LEASE TERM WAULT BY COUNTRY 1% (Years) 8% 25 Avg < 5 years 24 19 years 17% 20 22 22 5 to 10 years 20 15 16 10 to 15 years 74% ≥ 15 years 12 12 10 5 19 years Weighted average unexpired 100 % 0 Occupancy rate Belgium Germany Netherlands United Kingdom Finland
Slide 24: Resilience in portfolio valuation
Resilience in portfolio valuation GROSS YIELDS ON FAIR VALUE Like-for-like portfolio valuation Conservative valuation yields Resilient portfolio valuation despite (%) 7 changed market conditions Change in FV 6 6.3 Avg 5.8 (%) LFL - Q2 6.1 6.0 Belgium -0.9% 5.7 5.8 0 5.5 Germany -0.8% 5 5.3 Netherlan
Slide 25: Portfolio growth - Development projects
Portfolio growth Development projects Tiel Bladergroenstraat – Tiel (NL) Espoo Kuurinkallio – Espoo (FI) Q2 2022 – Q2 2023 (est.) Q1 2023 – Q2 2024 (est.) Zamora Av. de Valladolid – Zamora (ES) Sligo Finisklin Road – Sligo (IE) Expected completion: Q4 2024 Q4 2022 - Q2 2024 (est.) -25-
Slide 26: Committed development projects
Committed development projects Pipeline €596 million of which €407 million to be invested on 30/06 GEOGRAPHICAL SPLIT EXPECTED DELIVERY DATE €25m 4% 8% €87m €47m Belgium 12% Germany 15% €183m 100% pre-let 22% 2023 €73m 31% €132m 2% 5% Netherlands €27m €32 million United Kingdom 2024 expected rental
Slide 27: Committed development projects
Committed development projects Pipeline phasing out with projects completion (€ million) 596 600 -65 ~450 1 -80 400 €65 million projects delivered in July 2023 200 1 Estimate of the net amount between deliveries & acquisitions 0 Pipeline 01/08/2023 H2 2023 Pipeline 30/06/2023 31/12/2023 -27-
Slide 28: Outlook
Outlook Priesty Fields Care Home Congleton – United Kingdom -28-
Slide 29: Outlook FY 2023
Outlook FY 2023 €310 million €300 million Assuming FBI-tax regime in the Dutch subsidiaries in 2023 and refund of rental income pipeline deliveries in 2023 approx. €9 million for previous years (2016- (+ 14% vs. 2022) 2021) €212 million ~ €150 million EPRA Earnings ~ €320 million asset rotation cash
Slide 30: Outlook - objective for future growth: EPS growth
Outlook OBJECTIVE FOR FUTURE GROWTH : EPS GROWTH while maintaining a solid debt-to-asset ratio € / share 7,0 6,5 6,0 • Strong fundamental tailwinds 5,5 5,0 4,76 4,85 ** remain intact 4,35 4,5 • Enhancing long-term cash flows 4,23 4,0 3,74 3,70 3,80 3,25 3,40 3,5 3,0 3,15 2,80 3,07 in healthcare real
Slide 31: Conclusion
Conclusion Koy Oulun Siilotie Oulu - Finland -31-
Slide 32: Investment highlights
Investment highlights Attractiveness for shareholders PURE-PLAY FAIR VALUE HISTORY HEALTHCARE REIT IN EUROPE OF PORTFOLIO SHOWING RESILIENCE 19 YEARS WEIGHTED AVERAGE LEASE STRONG UNDERLYING TERM DEMOGRAPHIC TRENDS SOLID TRACK RECORD IN INVESTMENT, EQUITY AND DEBT-FINANCING LONG-TERM GROWTH STRONG D
Slide 33: Thank you
Thank you INVESTOR RELATIONS ir@aedifica.eu Rue Belliard/Belliardstraat 40 bte 11 1040 Brussels, Belgium -33-
Slide 34: Stefaan Gielens - CEO, Ingrid Daerden - CFO
Stefaan Gielens - Chief Executive Officer Ingrid Daerden - Chief Financial Officer -34-
Slide 35: Aedifica SA/NV
Aedifica SA/NV Public REIT under Belgian Law Regulated Real Estate Company (RREC) Société immobilière réglementée (SIR) Gereglementeerde vastgoedvennootschap (GVV) Rue Belliard 40 / Belliardstraat 40 (box 11) 1040 Brussels Tel: +32 (0)2 626 07 70 - Fax: +32 (0)2 626 07 71 info@aedifica.eu - www.aedi
Slide 36: Forward-looking statement
Forward-looking statement This Presentation includes forward-looking statements that reflect the Company's intentions, beliefs or current expectations concerning, among other things, the Company’s results, condition, performance, prospects, growth, strategies and the industry in which the Company op
Slide 37: Notes
fl Notes aedifica | housing with care -37-
Aedifica Sicafi Bruxelle — H1 2023 Earnings Presentation on 6ix