Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — Unibail-Rodamco — FY2016 Earnings Presentation
115 slides from Unibail-Rodamco-Westfield's earnings presentation, Feb 1, 2017
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Slide 2: Unibail-Rodamco S.E., a Société Européenne à Directoire et Conseil de Surveillance incorporated under French
Unibail-Rodamco S.E., a Société Européenne à Directoire et Conseil de Surveillance incorporated under French law, is a listed closed end property investment company. Unibail-Rodamco is registered with the French Authority of Financial Markets (AMF). The value of your investment may fluctuate. Past p
Slide 3: Financial Results
FINANCIAL RESULTS
Slide 4: 2016 results highlights
Shopping Centres Offices Convention & Exhibition +2.4% +8.1% 11.24 +7.5% +10.4% Net Result (Group share) Going Concern NAV(4) 201.50 +7.9% EPRA NNNAV(5) 183.70 +8.1% EPRA NAV 195.60 +9.4% Unibail-Rodamco | 2016 Full-year results | 4
Slide 5: Going Concern NAV increase
The Going Concern NAV(4) (GMV based), measuring the fair value on a long term, ongoing basis, came to €201.50 per share as at December 31, 2016, up by +7.9%, or +€14.80, compared to €186.70 as at December 31, 2015. This increase is the sum of: The value creation of +€28.75 per share; The impact
Slide 6: Evolution of 2016 Recurring Earnings Per Share
Evolution of 2016 Recurring Earnings Per Share (REPS) +10.4% €11.24 €10.46 €10.18 -2.6% 2015 REPS 2015 Disposals (1) Rebased 2015 REPS Growth 2016 REPS Unibail-Rodamco | 2016 Full-year results | 3
Slide 7: Recurring EPS of €11.24 in 2016
Recurring Earnings per Share (recurring EPS) came to €11.24 in 2016, representing an increase of +10.4% from the recurring EPS for 2015, rebased for the disposals in 2015(1), of €10.18. This +10.4% growth is primarily due to: The robust rental growth of the shopping centres; The strong decrease
Slide 8: 2016 Achievements
2016 ACHIEVEMENTS
Slide 9: Shopping Centre net rental income by region
France Central Europe (2) Spain Nordics Austria Germany The Netherlands 1,273 1,177 +8.1% +3.4% Unibail-Rodamco | 2016 Full-year results | 5
Slide 10: Change in Shopping Centre NRI
The total net change in Shopping Centre NRI amounted to +€95.6 Mn compared to 2015 due to: +€58.9 Mn from delivery of shopping centres or new units, mainly in Sweden (Mall of Scandinavia and Täby), in France (Polygone Riviera and Forum des Halles) and in Germany (Minto); +€19.1 Mn from changes i
Slide 11: Like-for-like NRI growth of Shopping Centres
Like-for-like NRI(1) growth of Shopping Centres Average Lfl growth excl. indexation 2.7% 2.2% 2.1% 3.6% 3.6% 3.0% 3.1% 2.6% 1.0% 2.0% 0.8% 0.6% 0.8% 0.3% 0.3% 2010 2011 2012 2013 2014 2015 2016 Indexation Lfl growth excluding indexation Unibail-Rodamco | 2016 Full-year results | 6
Slide 12: Group like-for-like NRI growth
The +3.4% like-for-like NRI(1) growth for the Group in 2016 reflects low indexation (+0.3%, stable vs. 2015), the solid performance in renewals and relettings (+2.2% vs. +2.4% in 2015) and “Other” (+0.9% vs. +1.2 % in 2015). In Central Europe, “Other” increased mainly due to Sales Based Rent (SBR) a
Slide 13: Footfall and tenant sales at key centres
Euralille Polygone Riviera Aupark Footfall +7.6% Tenant sales +13.2% Footfall 6.8 Mn Footfall +5.1% Tenant sales +8.3% Ruhr Park Mall of Scandinavia Forum des Halles Tenant sales +17.9% Footfall 13.2 Mn Tenant sales +23.2% Unibail-Rodamco | 2016 Full-year results | 7
Slide 14: Delivered projects performance
All footfall and tenant sales data are through FY 2016, except for Forum des Halles (from delivery in April 2016 until December 2016 vs. same period last year). In 2016, the Group capitalized on projects delivered last year: Polygone Riviera, inaugurated on October 21, 2015, benefited from several
Slide 15: Office disposals
2-8 Ancelle So Ouest Office Nouvel Air 70-80 Wilson Total NDP(1) €901 Mn Premium(2) +24.8% Unibail-Rodamco | 2016 Full-year results | 8
Slide 16: Office disposal details
On March 24, 2016, further to the purchase and sale agreement (promesse de vente) entered into in December 2015, Unibail-Rodamco disposed of the office building located at 2-8 rue Ancelle in Neuilly-sur-Seine to a joint-venture between ACM Vie SA and funds managed by Amundi Immobilier. The Net Dispo
Slide 17: Office market in the Paris region
Office market in the Paris region (Mn m²)(1) 3.9 4.0 3.9 3.6 3.6 3.6 3.6 3.5 2.5 2.5 2.4 2.1 2.1 2.2 1.9 1.9 26.9% 24.7% 23.3% 19.3% 18.2% 17.5% 18.0% 12.5% 2009 2010 2011 2012 2013 2014 2015 2016 Total Immediate Supply of which New / Refurbished Total Take-up Unibail-Rodamco | 2016 Full-year result
Slide 18: Paris region office supply and take-up
Supply in the Paris region was around 3.5 million m² as at December 31, 2016, down by -10% compared to December 31, 2015. The level of new or refurbished as new supply in the Paris region reached only 444,700 m², representing 12.5% of the immediate supply compared to an average of approximately 21%
Slide 19: New office supply 2017-2019
New supply in 2017-2019(1) Paris region 1.0 Mn m² (2) +36% (3) LA DÉFENSE 2% (4) 108k m² -5% CBD PARIS EXCL. CBD 1ST RING 2ND RING 187k m² 295k m² 110k m² 81k m² +155% +58% +19% -4% WESTERN CRESCENT 251k m² +20% Unibail-Rodamco | 2016 Full-year results | 10
Slide 20: Office supply under construction in Paris region
1.0 million m² are currently under construction in the Paris region(2). This represents a +36% increase of new supply over the 2012-2015 period(3) or 2% of the existing office stock in the Paris region. The highest increase is expected in Paris CBD (+155%), whereas the supply of new offices in La Dé
Slide 21: Offices net rental income
France Nordics Other 153 170 -10.0% -2.0% Unibail-Rodamco | 2016 Full-year results | 11
Slide 22: Offices NRI breakdown
Unibail-Rodamco’s consolidated NRI from its offices portfolio amounted to €153.3 Mn in 2016, a -10.0% decrease compared to the same period last year due primarily to an acceleration of the disposals of office assets. The decrease of -€17.1 Mn breaks down as follows: +€6.5 Mn due to the delivery of
Slide 23: Convention & Exhibition results
Net Rental Income Property Services and Other Income(1) 165 157 +4.9% 150 +9.7% Depreciation Comexposium Contribution Unibail-Rodamco | 2016 Full-year results | 12
Slide 24: Convention & Exhibition shows in 2016
The Convention & Exhibition business has a seasonal results pattern, with annual, biennial and triennial shows, and an uneven distribution of shows during the year. Despite a challenging economic and political environment, shows remain one of the most effective media for exhibitors. Therefore, compa
Slide 25: Porte de Versailles renovation
New travelators New digital signage and advertising Unibail-Rodamco | 2016 Full-year results | 13
Slide 26: Porte de Versailles renovation works
The first phase of renovation works (2015-2017) on the Porte de Versailles site continued with the construction of the new Welcome Plaza, travelators in the Central Alley, the Meshing facade of Pavilion 1 by Dominique Perrault, and the renewal of the 72,000 m² Pavilion 7, to create a new Parisian Co
Slide 27: Better Places 2030
“Better Places 2030” -50% on carbon footprint (1) Unibail-Rodamco | 2016 Full-year results | 14
Slide 28: Better Places 2030 carbon target
On December 12, 2015, the signature by 195 countries of the Paris Agreement to fight climate change, in the framework of COP21, brought the world into a new era. On September 22, 2016, the Group presented its response to this generational challenge, with a set of objectives to be achieved by 2030: “
Slide 29: Four pillars of Better Places 2030
4 PILLARS LESS IS BETTER PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4 LESS LESS LESS LESS CARBON EMISSIONS POLLUTING TRANSPORT LOCAL UNEMPLOYMENT TOP-DOWN BETTER BETTER BETTER BETTER BUILDINGS CONNECTIVITY COMMUNITIES COLLECTIVE POWER Unibail-Rodamco | 2016 Full-year results | 15
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Slide 31: Pillar 1: Less carbon emissions, better buildings
PILLAR 1 LESS CARBON EMISSIONS BETTER BUILDINGS TARGET #1 CONSTRUCTION -35% carbon footprint Group guidelines SHORT-TERM PRIORITIES for eco-design New carbon related KPIs TARGET #2 OPERATIONS -70% carbon footprint 100% LED lighting LED lighting SHORT-TERM PRIORITIES Green electricity for all
Slide 32: Reducing the buildings' carbon footprint
The Group’s objective is to reduce by -50% the carbon footprint of all its buildings by: Reducing by -35% the carbon footprint from the construction of new development projects, through a sober building approach applied from conception and the use of low-carbon materials; Reducing by -70% the ca
Slide 33: Pillar 2: Less polluting transport, better connectivity
PILLAR 2 LESS POLLUTING TRANSPORT BETTER CONNECTIVITY -50% carbon footprint TARGET TRANSPORT 75% of visitors using sustainable transportation 224 4 20 electric car sites with Tesla sites targeted charging stations chargers in 2017 Electric car charging SHORT-TERM PRIORITIES stations Car sharing
Slide 34: Reducing transport carbon footprint
The Group’s strategy aims at reducing by -50% its carbon footprint due to visitors and employees transportation. Unibail-Rodamco sets itself a challenging target that, by 2030, at least 75% of all visitors come to its centres by a sustainable means of transport. The Group will also reduce the carbon
Slide 35: Pillar 3: Less local unemployment, better communities
PILLAR 3 LESS LOCAL UNEMPLOYMENT BETTER COMMUNITIES TARGET LOCAL 100% DEVELOPMENT shopping centres committed to employment and local development Roll-out of UR for Jobs 1,000 SHORT-TERM PRIORITIES Local offer Circular economy YOUNG PEOPLE hired per year through UR for Jobs by 2020 Unibail-Roda
Slide 36: UR for Jobs initiative
Unibail-Rodamco builds long-term partnerships with institutional bodies, economic players and nonprofit organizations involved in the regions where the Group operates. The UR for Jobs initiative aims at training and supporting the recruitment of low skilled youth by retailers and service providers i
Slide 37: Pillar 4: Less top-down, better collective power
PILLAR 4 LESS TOP-DOWN BETTER COLLECTIVE POWER TARGET INVOLVEMENT 100% employees committed to sustainable development Sustainability objectives for all employees SHORT-TERM PRIORITIES Stakeholders involvement Forum des Halles taskforce - April 2016 Unibail-Rodamco | 2016 Full-year results | 19
Slide 38: Employee and stakeholder involvement in CSR
A CSR strategy is fully effective only if supported by all employees and stakeholders. Thus, the members of the Management Board, the Group Management Team and Country Management Teams will have both individual and collective goals related to the “Better Places 2030” strategy as of 2017. These goals
Slide 39: Operating Management
OPERATING MANAGEMENT
Slide 40: Leases signed and MGR uplift
Leases signed(2): 1,479 Rotation rate(3): 13.3% 21.4% Average 19.4% 19.6% MGR uplift(1) 18.3% 18.2% 17.4% 18.5% 15.3% 2010 2011 2012 2013 2014 2015 2016 Unibail-Rodamco | 2016 Full-year results | 21
Slide 41: Strong leasing activity in 2016
Leasing activity was strong in 2016, with a total of 1,479 deals signed(2) on consolidated standing assets, a +7.4% increase compared to 2015(4). Unibail-Rodamco leasing teams generated a Minimum Guaranteed Rent uplift(1) of +17.4%, exceeding the Group’s objectives. The tenant rotation rate(3) reach
Slide 42: Tenants' sales growth
+28.0% +1.4% +1.6% Tenants’ sales growth National Sales in Unibail-Rodamco’s Indices(2) shopping centres(1) +2.7% +0.2% +4.4% +2.6% +2.4% +2.6% +1.4% +1.0% +0.3% +0.3% +3.2% +2.6% Unibail-Rodamco | 2016 Full-year results | 22
Slide 43: Tenant sales growth versus national indices
Through November 30, 2016, the Unibail-Rodamco tenant sales growth in all regions resulted in an increase of +1.4% compared to the same period last year. The aggregate Group tenant sales’ weaker than usual performance (-20 bps) relative to the National Sales Indices(2) was due primarily to: The un
Slide 44: Monthly tenant sales growth
Monthly tenant sales(1) growth FY 2016 FY 2016 Tenant sales growth +1.4% Tenant sales growth w/o Fashion and Bags, Footwear & Accessories +2.1% 4.2% 1.8% -0.6% -4.4% January February March April May June July August September October November December Group Group without Fashion and Bags, Footwear &
Slide 45: Tenant sales footnotes
(1) Tenant sales performance in Unibail-Rodamco’s shopping centres (excluding the Netherlands, including Rosny 2, CentrO and Paunsdorf) in portfolio of shopping centres in operation, including extensions of existing assets, but excluding deliveries of new brownfield projects, newly acquired assets a
Slide 46: 2016 tenant sales growth by sector
2016 tenant sales(1) growth by sector +5.1% +5.3% +4.4% +0.6% +0.8% -1.0% Fashion Bags, Footwear Culture, Media Dining Health & Beauty Entertainment & Accessories & Technology % of GLA(2) 28.7% 5.1% 8.4% 9.2% 4.8% 10.7% Unibail-Rodamco | 2016 Full-year results | 24
Slide 47: Tenant sales footnotes
(1) Tenant sales performance in Unibail-Rodamco’s shopping centres (excluding the Netherlands, including Rosny 2, CentrO and Paunsdorf) in portfolio of shopping centres in operation, including extensions of existing assets, but excluding deliveries of new brownfield projects, newly acquired assets a
Slide 48: Footfall growth in French shopping centres
Footfall growth in Unibail-Rodamco’s French shopping centres(1) +3.5% +0.4% -0.7% -5.7% Inner Paris Broader Paris Rest of France France and La Défense(2) Region(3) CNCC panel: -0.1% CNCC panel: -1.6% CNCC panel: -1.2% Unibail-Rodamco | 2016 Full-year results | 25
Slide 49: French footfall performance
Footfall in the Group’s French shopping centres decreased by -0.7% through December 31, 2016, outperforming the -1.2% drop for the French national index(4). The most meaningful impact on footfall was observed in the Group’s Parisian(2) shopping centres (-5.7%). This impact was partly offset by the s
Slide 50: Priority: security of visitors and employees
Priority: security of visitors and employees FRANCE GROUP WIDE 1. Recruitment of security 1. Case-by-case specialists security step-up 2. More security guards 2. Reinforced CCTV 3. More police and military 3. Best practices sharing patrols 4. Better security infrastructure 5. Direct video monitoring
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Slide 52: IPRs in tenant rotation
Percentage of IPRs(1) in Unibail-Rodamco tenant rotation(2) 15.7% 13.8% 12.0% 10.1% 8.4% st 2012 2013 2014 2015 2016 Unibail-Rodamco | 2016 Full-year results | 27
Slide 53: Differentiation through International Premium Retailers
Differentiation through International Premium Retailers (IPR(1)) remains at the heart of the Group’s strategy. 196 deals were signed with IPRs, in line with 2015. The share of IPRs in the Group tenant rotation rate(2) increased from 13.8% in 2015 to 15.7% in 2016 (12.0% in 2014 and 10.1% in 2013) st
Slide 54: NYX Professional Makeup store openings
NYX Professional Makeup stores 1st store opened in 2015 (LA, US) 43% in Europe(1) located in a shopping centre +7 OPENINGS in Unibail-Rodamco 1ST portfolio in 2017 10 Mn Instagram in Paris region followers Strong customer 1ST Galeria Mokotow community in Austria Les 4 Temps Aupark Euralille 1ST Chod
Slide 55: NYX first stores with the Group
NYX (L’Oréal Group) opened with the Group its 1st store in the Paris region (Les Quatre Temps), in Austria (Donau Zentrum), in Poland (Galeria Mokotow) and in Slovakia (Aupark). NYX also opened with the Group its 1st store in a shopping centre in Spain (La Vaguada). (1) In countries where Unibail-Ro
Slide 56: Euralille restructuring
RE-DESIGNING RE-TENANTING RE-MARKETING Restructured a 7,000 m² vacant unit and acquired hypermarket top-floor New accesses Better vertical circulation New wooden floor 4-Star label Natural light 25 iconic shopfronts Unibail-Rodamco | 2016 Full-year results | 29
Slide 57: Euralille transformation phases
Following the restructuring project delivered in 2015, Euralille revealed the last two phases of its transformation. On May 12, 2016, “Les Tables d'Euralille”, the brand new Dining Plaza of the shopping centre with 1,200 seats was opened. On October 27, 2016, a new shopping square with four new stor
Slide 58: Euralille results since renovation
+39% +7.6% €462 Mn +13.2% Footfall(2) Tenant sales(1) €104 Mn 15 Mn €88 Mn €270 Mn +87% +54% Facebook Loyalty cards (3) fans(3) GMV(4) Acquisition Cost + Lfl revaluation GMV(4) as at Dec. 31, 2013 Capex as at Dec. 31, 2016 Unibail-Rodamco | 2016 Full-year results | 30
Slide 59: Euralille footnotes
(1) Tenant sales growth through 2016 (2) Footfall growth through 2016 (3) Compared to levels before renovation (4) Gross Market Value (GMV)
Slide 60: The Dining Experience
DINING SALES/M² (1) 19% HIGHER ROLL OUT 10 in 2016 +4 in 2017 +4 in 2018 Unibail-Rodamco | 2016 Full-year results | 31
Slide 61: Dining Experience rollout
The Dining ExperienceTM aims at offering customers a large range of dining offers in spectacular dining plazas. “Las Terrazas” officially opened in November 2016 in Bonaire with 20 restaurants including the second restaurant of the “Top Chef” winner, Begoña Rodrigo. 10 of the Group’s shopping centre
Slide 62: The Designer Gallery
1st 1 1st Concept store in Poland in Poland 1st in Poland 3 1st stores in Poland 4 Local designers Concept store Café NEXT OPENING Unibail-Rodamco | 2016 Full-year results | 32
Slide 63: Designer Gallery in Galeria Mokotow
The Designer GalleryTM places fashion and creativity at the heart of the shopping experience. Launched in 2015 in Polygone Riviera and in Mall of Scandinavia, a new Designer GalleryTM opened in December 2016, in Galeria Mokotow, with great brands including the 1st Uterqüe, & Other Stories and Dior P
Slide 64: Customer engagement and game features
Deploying game features and events in 58 shopping centres Exclusivity (1) in Continental Europe Footfall Customer engagement Enriching customer experience Unibail-Rodamco | 2016 Full-year results | 33
Slide 65: Pokémon GO partnership
In December 2016, the Group entered into an exclusive(1) partnership in Continental Europe (excluding Russia) with Niantic, Inc. and The Pokémon Company International. Up to 1,000 PokéStops and Gyms will be deployed into 58 shopping centres. It is the first time in EMEA(2) that shopping centres will
Slide 66: UR Link start-up accelerator and Connect
Start-up screening in partnership Concept Long-term partnership Co-development with Partech Ventures implementation if successful and Numa Dress in the City Connect Connected second-hand Digital Tenant - Shopping fashion store Centre Management interaction 2016 2016 Pop-up stores 2 pilot centres in
Slide 67: UR Link second season and Connect app
After a successful first season in H1-2016, six new start-ups entered UR Link, the Group’s accelerator, for its second season. This initiative, launched in partnership with NUMA (a leading Parisian start-up incubator), offers start-ups the opportunity to work in collaboration with Unibail-Rodamco ex
Slide 68: Growing advertising revenues
Growing advertising revenues 2017 ICONIC 2011 - 2016 DIGITAL SCREENS Advertising revenues 2016 +22% CAGR 2015 2014 2013 DIGITAL DREAM® 2012 2011 CentrO, Oberhausen Aéroville, Paris region Unibail-Rodamco | 2016 Full-year results | 35
Slide 69: Digital screens rollout
The Group continued to roll out spectacular digital screens within its portfolio: In CentrO, the Digital Dream®, composed of a customized 250 m² LED screen, was launched in September 2016; In Aéroville, a high definition rotating LED screen (34 m²) was installed at the end of 2016. Similar digit
Slide 70: Valuation
VALUATION
Slide 71: Going Concern Net Asset Value per share
Non Lfl revaluation & intangible assets(2) Going Concern Net Asset Value(1) (in € per share) Recurring +€3.67 EPS +€11.24 Rent effect(3) €201.50 +€4.40 Asset €186.70 -€4.85 revaluation +€28.75 -€5.92 -€9.70 +€17.78 -€4.25 €172.75 Yield effect(3) +€9.71 Other(4) -€0.27 €40.5 Bn(5) December 2015 Divid
Slide 72: EPRA NNNAV and Going Concern NAV
Unibail-Rodamco’s EPRA triple Net Asset Value (NNNAV)(6) amounted to €183.70 per share as at December 31, 2016, an increase of +8.1%, or +€13.80, from €169.90 as at December 31, 2015. The going concern NAV(1) (GMV based), measuring the fair value on a long term, ongoing basis, came to €201.50 per sh
Slide 73: Development value creation
2012 TIC(1) €2.7 Bn 2013 2014 GMV Today(2) €3.5 Bn 2015 +26%
Slide 74: TIC and GMV footnotes
(1) TIC: Total Investment Cost equals the sum of: (i) all capital expenditures from the start of the project to the completion date and includes: land costs, construction costs, study costs, technical fees, tenant fit-out costs paid for by the Group, letting fees and related costs, eviction costs an
Slide 75: Retail Portfolio like-for-like revaluation
Retail Portfolio – LfL revaluation (%) Lfl revaluation +6.0% +2.4% +5.2% +5.9% +6.3% +34.7% (1) Rent effect +19.1% +2.5% +2.6% +1.7% +4.9% Yield effect +3.5% +3.3% +3.8% +15.6% +2.2% +1.2% +0.2% 2012 2013 2014 2015 2016 Unibail-Rodamco | 2016 Full-year results | 39
Slide 76: Shopping centre portfolio value increase
On a like-for-like basis, the value of the shopping centre portfolio, including transfer taxes and transaction costs and after accounting for works, capitalized financial and leasing expenses and eviction costs, increased by +€1,625 Mn (or +6.3%) in 2016. This +6.3% increase was the result of a rent
Slide 77: Yields and risk premium
FRANCE SPAIN 8.1% 7.8% 6.8% 5.8% 5.1% 4.8% 4.3% 4.1% 4.3% 4.3% 340 bps 360 bps Risk premium Risk premium 0.5% 1.4% 2007 08 09 10 11 12 13 14 15 2016 2007 08 09 10 11 12 13 14 15 2016 Appraisers’ Discount Rate (weighted avg.) Unibail-Rodamco Shopping Centre NIY(1) (weighted avg.) 10-yr gov. bond yiel
Slide 78: Net initial yield of shopping centre portfolio
The French shopping centre portfolio’s net initial yield(1) as at December 31, 2016 decreased to 4.1% from 4.3% as at December 31, 2015, while the Group’s shopping centre portfolio’s net initial yield(1) as at December 31, 2016 decreased to 4.4% from 4.6% as at December 31, 2015. Risk premium vs. Fr
Slide 79: NIY sensitivity of portfolio value
NIY(1) change -25 bps -50 bps -100 bps -150 bps +15,710 Mn +52% +8,920 Mn +30% +3,890 Mn +1,830 Mn +13% +6% GMV change(2) -1,630 Mn -5% -3,090 Mn -10% -5,600 Mn -19% -7,690 Mn -26% 25 50 100 150 NIY(1) change 2007-2009 +25 bps +50 bps +100 bps +150 bps +130 bps Unibail-Rodamco | 2016 Full-year resul
Slide 80: Impact of net initial yield change
A change of +25 basis points in net initial yield would result in a downward adjustment of -€1,630 Mn (or -5.4%) of the shopping centre portfolio value (excluding assets under development or accounted for using the equity method), including transfer taxes and transaction costs. A change of +130 basi
Slide 81: Nouvel Air
2011 2016 2017 Double entrance lobby Connecting central staircase 30,000 m² Vacancy for works + 2 floor plates SOLD Capex : €150 Mn +~15,000 m² 100% let 3 tenants 15,000 m² NOUVEL AIR 30 18 130 81 Issy Guynemer refurbishment GMV(1) Capex(2) Value creation TAC(3) Delivery H1-2018 31/12/2010 Unibail-R
Slide 82: Nouvel Air disposal
On October 19, 2016, the Group disposed of the Nouvel Air office building located in Issy-les-Moulineaux. The NDP was €127.5 Mn, reflecting a TAC of €7,716/m². (1) Gross Market Value (GMV) (2) TIC and capex post-delivery (3) Total Acquisition Cost (TAC): the total amount a buyer shall pay to acquire
Slide 83: Disposal premium over unaffected appraisal
Premium over last unaffected appraisal(3) Retail 90 2016 NIY(2) 2016 2015 2014 Offices 901 4.6% +27% +14% +6% 990 Unibail-Rodamco | 2016 Full-year results | 43
Slide 84: Retail and office disposals
The Group disposed of a number of small retail assets, including: In April 2016, Europark, a 26,159 m² shopping centre in Budapest, for a TAC(4) of €32 Mn, reflecting a price of €1,223/m²; In December 2016, the hypermarket of Sant Cugat in Barcelona for a TAC of €53 Mn, reflecting a price of €2,
Slide 85: Dividend, maintenance capex and recurring net result
Group share, € Mn 1,114 1,068 1,030 104 986 74 60 109 1,014(1) 941 957 866 2013 2014 2015 2016 Dividend Maintenance Capex(2) Recurring Net Result (Group share) Unibail-Rodamco | 2016 Full-year results | 44
Slide 86: Maintenance capex footnotes
(1) Subject to AGM approval on April 25, 2017 (2) Shopping centres and Offices perimeter - Maintenance Capex relates to works either on equipment or the structure of a standing asset. The primary purpose of Maintenance Capex is to ensure that the asset is in good working order and / or to make minor
Slide 87: Financing
FINANCING
Slide 88: 2016 bond issuances
March April April November €500 Mn €500 Mn €500 Mn €500 Mn 10-year 11-year 20-year 8-year 3-month 1.375% 1.125% 2.0% 0.875% Longest maturity Lowest coupon for a real estate ever achieved company by Unibail-Rodamco in the Euro market on the public debt market Unibail-Rodamco | 2016 Full-year results
Slide 89: Financing transactions in 2016
In 2016, the Group took advantage of favourable market windows on the back of the ECB supportive policy, to extend its maturity profile, secure attractive funding conditions while managing its balance sheet through the following transactions: The 1st public bond with a 20-year maturity issued by a
Slide 90: Average cost of debt and maturity
ALL-TIME LOW AVERAGE COST OF DEBT (%) RECORD AVERAGE MATURITY (years) 3.9% 7.0 3.6% 3.4% 6.5 5.9 2.9% 2.6% 5.4 2.2% 4.9 4.5 1.6% 4.3 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 Unibail-Rodamco | 2016 Full-year results | 47
Slide 91: Record low cost of debt
Unibail-Rodamco’s average cost of debt decreased to 1.6% for 2016 compared to 2.2% for 2015. This record low average cost of debt results from: Low coupon levels the Group achieved during the last years on its fixed rate debt; The tender offer transactions realised in April 2015, April 2016 and
Slide 92: Low LTV and strong ICR
LOW LTV(1) STRONGEST ICR(2) 60%(3) 5.9 4.6 41% 41% 4.0 37% 3.8 35% 3.5 30% 33% 2.5 2.0(3) 2000 2002 2004 2006 2008 2010 2012 2014 2016 2000 2002 2004 2006 2008 2010 2012 2014 2016 Unibail-Rodamco | 2016 Full-year results | 48
Slide 93: Financial ratios and credit ratings
The financial ratios stand at healthy levels: The Interest Coverage Ratio (ICR) was 5.9x (versus 4.6x in 2015); The Loan to Value (LTV) ratio had decreased to 33% (versus 35% as at December 31, 2015). Unibail-Rodamco is rated by the rating agencies Standard & Poor’s and Fitch Ratings: Standard
Slide 94: Development
DEVELOPMENT
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Slide 96: Development project pipeline
+€0.9 Bn €8.0 Bn €0.4 Bn €7.4 Bn Secured 1.2 Secured exclusivity(1) 0.8 €1.5 Bn 4% exclusivity (1) -€0.2 Bn New projects Delivered and others(4) projects 19% 44% €3.5 Bn Controlled(2) 5.2 5.0 Controlled(2) €8.0 Bn 33% €2.6 Bn 1.9 Commited(3) Commited(3) 1.4 OFFICES & OTHERS RETAIL Dec. 2015 Dec. 201
Slide 97: €8.0 Bn consolidated development pipeline
As at December 31, 2016, Unibail-Rodamco’s consolidated development project pipeline amounted to €8.0 Bn (€7.3 Bn in Group share), corresponding to a total of 1.6 Mn m² Gross Lettable Area (GLA), to be redeveloped or added to the Group’s standing assets. The Group retains significant flexibility on
Slide 98: Glòries extension
GLA(1) +10,690 m² Phase 1 Delivered in Dec. 2016 TIC(2) €123 Mn Preletting(3) 96% Phase 2
Slide 99: Glòries phase 1 delivered
The first phase of Glòries extension project was delivered in December 2016 with 60 new shops on level -1. The entire new Glòries will open end-2017 offering 70,000 m² and 130 stores. (1) GLA: Gross Lettable Area (2) TIC: Total Investment Cost equals the sum of: (i) all capital expenditures from the
Slide 100: Centrum Chodov extension
GLA(1) +41,817 m² TIC(2) €168 Mn Preletting(3) 82%
Slide 101: Centrum Chodov pre-letting
Centrum Chodov’s 41,817 m² extension project in Prague was 82% pre-let as at December 31, 2016, with delivery expected in H2-2017. Sephora signed for a larger store in the extension (a 54% increase in GLA). The Group also signed with Peek&Cloppenburg, Nespresso, NYX and Starbucks. (1) GLA: Gross Let
Slide 102: Wroclavia
GLA(1) 79,466 m² TIC(2) €239 Mn Preletting(3) 79%
Slide 103: Wroclavia pre-letting
The Wroclavia project, a development of 79,466 m² in Wroclaw, was 79% pre-let as at December 31, 2016, prior to the scheduled opening in H2-2017. Media Markt, Steve Madden, Estée Lauder, L’Occitane and Lacoste were among the major differentiating tenants signed by the Group in 2016. (1) GLA: Gross L
Slide 104: Carré Sénart extension
GLA(1) +31,448 m² TIC(2) €238 Mn Preletting(3) 65%
Slide 105: Carré Sénart extension pre-letting
For Carré Sénart’s 31,448 m² extension project anchored by a 9,000 m² Galeries Lafayette store, the Group secured the commitment for a medium-size unit for each of Superdry and AS Adventure. NYX, Rituals and New Balance were signed also. As at December 31, 2016, the extension project was 65% pre-let
Slide 106: Project with construction works launched
GLA(1) 48,929 m² TIC(2) €317 Mn Construction works launched
Slide 107: GLA and TIC footnotes
(1) GLA: Gross Lettable Area (2) TIC: Total Investment Cost equals the sum of: (i) all capital expenditures from the start of the project to the completion date and includes: land costs, construction costs, study costs, technical fees, tenant fit-out costs paid for by the Group, letting fees and rel
Slide 108: Project with road works launched
Road works launched GLA(1) TIC(2) Key anchors signed 65,308 m² €281 Mn Unibail-Rodamco | 2016 Full-year results | 56
Slide 109: GLA and TIC footnotes
(1) GLA: Gross Lettable Area (2) TIC: Total Investment Cost equals the sum of: (i) all capital expenditures from the start of the project to the completion date and includes: land costs, construction costs, study costs, technical fees, tenant fit-out costs paid for by the Group, letting fees and rel
Slide 110: Distribution and Outlook
DISTRIBUTION OUTLOOK
Slide 111: Dividend for fiscal year 2016
Dividend for fiscal year 2016 (1) Cash dividend: €10.20 91% pay-out ratio INTERIM €5.10 - March 29, 2017 FINAL €5.10 - July 6, 2017 (1) Unibail-Rodamco | 2016 Full-year results | 58
Slide 112: Dividend payment schedule
In 2017, Unibail-Rodamco will again pay its dividend in two installments. Unibail-Rodamco believes that this policy offers shareholders a regular flow of dividends which more closely matches the Group's cash flows. For the 2016 fiscal year, the Group will propose a cash dividend of €10.20 per share(
Slide 113: Medium term outlook
MEDIUM TERM 2017 CAGR KEY INPUTS Indexation Rental uplifts Timely delivery of projects €11.80 - €12.00 +6% to +8% Timing of disposals Taxation Cost of debt No acquisitions assumed Unibail-Rodamco | 2016 Full-year results | 59
Slide 114: 2017 guidance and medium-term outlook
The macroeconomic environment in 2016 benefitted from improving consumer confidence in a number of countries, lower cost of debt, commodity prices and euro exchange rates. Looking ahead, the outcome of elections in a number of European countries, the Brexit process, trade policies enacted by the new
Slide 115: www.unibail-rodamco.com
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