Frey Sa · EURONEXT:FREY
Frey Sa — FY2022 Earnings Presentation
43 slides from Frey Sa's earnings presentation, Feb 23, 2023
Slide 1: The Sustainable Retail REIT - 2022 Annual Results
THE SUSTAINABLE RETAIL REIT 2022 Annual Results Presentation of 23.02.23 | FREY 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for information, to accompany the information disclosed by FREY to the public elsewhere, to which readers should refer. It does not constitute and should not be construed as an invitation, a recommendation or an offer to buy, sell, exchange or At
Slide 3: Contents
Contents INTRODUCTION 01. FREY: an ESG pioneer in its industry 02. Operational highlights 03. Operational performances 04. Financial results 05. Ambition & outlook 3
Slide 4: FREY's medium-term ambition
FREY's medium-term ambition Becoming the leading sustainable retail platform in Europe
Slide 5: 3 features to define the sustainable retail
3 features to define the sustainable retail Sustainable place Friendly & experiential Economical & location omnichannel place Open-air with a limited Practical, ergonomic and Healthy OCR ratio and carbon footprint fun in line with the evolution As a service for the distribution channels common good
Slide 6: 2022: strong growth of KPIs
2022: strong growth of KPI’S Changes vs 31.12.2021 ECONOMIC PORTFOLIO OCCUPANCY RATE €1.7bn 98.0% +16.9% stable ANNUALISED RENTS TENANTS’ SALES €100.1m +10.4% +24.2% vs 2019 PROFIT FROM EPRA NAV NDV RECURRING OPERATIONS €35.0/share €65.0m +9.3% +22.5% Presentation of 23.02.23 | FREY 6
Slide 7: 2022: Execution of the strategic plan
2022: Execution of the strategic plan 1. Acquire retail assets in Europe Consolidate and • 2 acquisitions in Spain • Opening of a new country: Poland expand in Europe • Internationalisation of the portfolio: 35% 2. Use FREY’s urban planner expertise Delivery and renewal • Creation of a €200m land ba
Slide 8: FREY: An ESG pioneer in its industry
1. FREY: An ESG pioneer in its industry
Slide 9: First French real estate company to become an entreprise à mission
Discharge of the Mission Committee FREY: 1st French real estate company to become an "entreprise à mission" Publication of the 2nd mission report in 2023 Our raison d'être: "Restoring retail as a service for the common good" • Guarantee of the level of excellence of its ESG commitment for all its st
Slide 10: First French listed company with B Corp certification
FREY: The 1st French listed company to obtain B Corp™ certification In 2022 FREY was named B Corp Best for the World (2) in recognition of its significant positive impact for the "Environmental" impact category. Among the top 5% worldwide in B Score of 102.2 points (1) Corp's environment category
Slide 11: Climate Focus: ambitious strategy
Climate Focus: ambitious strategy in line with the most demanding international standards Targets 2030: 1 2 • Scopes 1&2: 42% reduction in GHG emissions compared to its 2021 base year (direct emissions) / 1.5°C Comprehensive alignment (2) calculation of the carbon • Scope 3 (3): halve its carbon foo
Slide 12: Focus on FoREY: timber at the heart of low-carbon strategy
Focus on FoREY: timber at the heart of FREY's low-carbon strategy Wood for low-carbon construction by FREY In 2020, FoREY was created, a forest group to acquire 3,500 ha of forests in France by 2030 By the end of 2022, 1,667 ha of sustainably managed forests acquired 48% of the 2030 target achieved
Slide 13: Renewable solar energy production: ambitious trajectory
Focus on renewable solar energy production: ambitious trajectory Installation of solar panels on: • 50% of the portfolio (1) by 2026 • 100% of the portfolio (1) by 2028 Production of 40,000 MWh by 2028 covering: • 100% of FREY's consumption (common areas) • 50% of tenants' consumption Shopping Prome
Slide 14: Operational highlights
2. Operational highlights
Slide 15: Execution and regeneration of the development pipeline
2.a Execution and regeneration of the development pipeline 2022 Annual Results | FREY 15
Slide 16: Delivery of Cours and Halle des Docks
Delivery of phase 1 of the Cours (1) Delivery of the Halle des Docks Autumn 2022 October 2023 24,000 m² GLA €86m • Large fresh produce market investments Intermarché Biocoop • Restaurants CMSI Medical centre for immediate care • Iconic bar Barber Worth • Co-working/Offices Opticien Concept €6m Analy
Slide 17: Securing the VITAM transformation project
Regeneration of the pipeline: securing the VITAM transformation project A new mixed-use destination Major project for the Geneva region 23,000 m2 Additional sales area i.e. approximately 39,000 m² of floor area Project in partnership with • 1 Migros supermarket MIGROS France (FREY • 1 health centre
Slide 18: Innovative partnership serving the Territories
Signing of an innovative partnership serving the Territories The leading French operator specialised in urban renewal of commercial zones at city entrances Public housing Major partner of local operator authorities and long- Turning a constraint into a great term investor in the opportunity to build
Slide 19: Active expansion strategy in Europe
2.b Active expansion strategy in Europe 2022 Annual Results | FREY 19
Slide 20: Internationalisation of 35% of the portfolio
Internationalisation of 35% of the portfolio (1) (+15pts vs 2021) Targets achieved: • Consolidating its presence in the Iberian Peninsula • Expansion in Europe like Poland Acquisition of leading first- generation assets to transform them and bring them up to the standards of FREY's portfolio, in ter
Slide 21: Acquisition of two open-air centres in Spain
Acquisition of two open-air centres in Spain with strong fundamentals: June 2022 July 2022 €210.5m €14.1m 6.7% Investments Annual rental income Cap rate Presentation of 23.02.23 | FREY 21
Slide 22: Opening of a new country: Poland
Opening of a new country: Poland Securing of a 1st asset in Poland: Matarnia Park Handlowy in Gdańsk Closing summer 2023 €105m €8m 7.6% Investments Annual rental income Cap rate Presentation of 23.02.23 | FREY 22
Slide 23: Value creation example: AlgarveShopping
Example of value creation by FREY on a first-generation asset: AlgarveShopping BREEAM In Use On acquisition (July 2019) Today certified "Very Good" Implemented Strategy: Achievements: Revive of an ageing asset with a strong local reputation but handicapped by Carrying out a major renovation prog
Slide 24: Operational performances
3. Operational performances
Slide 25: Strength of the business model
Strength of the business model 8.4% +10.4% Contained OCR Tenants’ sales ratio (1) vs 2019 (3) 98.1% 98.0% Collection rate (2) Optimal occupancy rate (4) (1) Rolling 12 months/FREY Group scope (France, Spain and Portugal). France scope: 8.4%. (2) Charged rents collected relative to charged rents invo
Slide 26: Dynamic rental activity
Dynamic rental activity 135 €13.2m leases signed in 2022 in rental income (1) under Assets & Development €10.8m Group share +3.2% average uplift(2) Calculated on economic rents net of lessor contributions (1) New leases, remarketings and renewals. (2) Remarketing renewal. Presentation of 23.02.23 |
Slide 27: A business model recognised by retailers
A business model recognised by retailers and perfectly adapted to new aspirations For consumers: an experiential A comprehensive offering shopping destination combined Local retailers Retail Park retailers with a comprehensive merchandising mix that is competitive in terms of price For retailers
Slide 28: The first multi-country open-air retail platform
FREY: the 1st multi-country open-air retail platform with a particularly successful portfolio €1.7bn €100.1m 35% Net value of economic portfolio Gross annualised rent abroad (1) 19% 98.0% Share of TOP 10 retailers Occupancy rate (2) While offering a cap rate (3) of 6.0% (1) Calculated on the basis o
Slide 29: Financial results
4. Financial results
Slide 30: Remarkable growth in portfolio
Remarkable growth in portfolio VALUE OF ECONOMIC PORTFOLIO (1) (€m) GROSS ANNUALISED RENTS (2) (€m) 1663 100,1 1423 1249 80,6 1128 +16.9% 870 59,1 54,2 +24.2% 42,6 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Doubling of its economic portfolio in 5 years Strengthening of FREY's recurring profit
Slide 31: A business model of a REIT with recurring revenues
A business model of a REIT with recurring revenues GROSS RENTAL INCOME (€m) PROFIT FROM RECURRING OPERATIONS (€m) 91,5 65,01 53,01 72,9 42,4 +22.5% 59,5 +25.6% 43,6 29 32,8 18,3 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Strong growth in rental income, driven by the growth in portfolio Increa
Slide 32: EPRA NAV NDV per share: +9.3%
EPRA NAV NDV (1) / share: +9.3% CHANGE IN NAV NDV (1) (€M) CHANGE IN NAV NDV / SHARE (€) 989,2 +€4.6 €35.0 906,3 €32.0 -€1.6 777,5 767,4 +9.1% dividend NIGS +9.3% 2019 2020 2021 2022 31.12.2021 31.12.2022 (1) EPRA Liquidation NAV (Net Disposal Value, NDV) as defined by the EPRA recommendations for f
Slide 33: A sound and responsible financial structure
A sound and responsible financial structure 92% Corporate Debt €806.3m GROSS BANK DEBT 1.82% Average cost (2)+44bps in 2021 3.7 years Duration €277m CASH (1) 97.9% hedging ratio 100% Corporate financing under ESG criteria €210m DEBTS RAISED 38.9% LTV including transfer tax (vs 32.2% at 31.12.2021) C
Slide 34: Recurring dividend growth
Recurring dividend growth CHANGE IN PROPOSED DIVIDEND (€/share) 1,7 (1) 1,6 1,5 1,5 1,2 +6.2% 100% in cash 2018 2019 2020 2021 2022 (1) As proposed to the General Meeting to be held on 9 May 2023. Presentation of 23.02.23 | FREY 34
Slide 35: Ambition & Outlook
5. Ambition & Outlook
Slide 36: A reaffirmed ambition
A reaffirmed ambition: FREY European leader in the "sustainable retail" asset class Presentation of 23.02.23 | FREY 36
Slide 37: Continue to be a pioneer in ESG
1 Continue to be a pioneer in ESG • Continuation and execution of the "mission" to achieve the 2025 targets • Validation of the carbon trajectory by the SBT • Work towards BCorp recertification in 2024 • Execution of the renewable solar energy production strategy 37
Slide 38: Deliver the secure pipeline
2 Deliver the secure pipeline Cap Koad Bain de Bretagne Promenade Lleida Spain Open Grand Genève Palais du Commerce Rennes 256,413 m2 GLA* €732m Investments* 13,000 m² 56,000 m² 49,000 m² 12,000 m² To be developed for the REIT Nouveau Vitam Phase 2 Docks Logistics platform O'Centre Neydens St Ouen M
Slide 39: Reload the pipeline
3 Reload the pipeline • By implementing the innovative partnership with Use its expertise as a urban Banque des Territoires and planner for territorial CDC Habitat development • Through urban renewal operations in commercial zones at city entrances • Generate development or co- development margins i
Slide 40: Develop its pan-European platform
4 Develop its pan-European platform Structuring the international platform: • Through acquisitions in new countries of Premium open-air retail assets • To transform them and bring them up to FREY’s standards Current presence Potential area of expansion Presentation of 23.02.23 | FREY 40
Slide 41: An attractive investment profile
An attractive investment profile ECONOMIC ASSETS Leading real estate company in the French and European open-air shopping centre €1.7bn Value of assets excl. duties market, with a portfolio concentrated on large, high-performance assets of high environmental quality €100.1m Pioneer in ESG, inven
Slide 42: Shareholder Structure and Governance
Shareholder Structure and Shareholding structure at 31/12/2022 Governance 26,5% Firmament Participations (Groupe Antoine Frey) Compliance with AFEP-MEDEF recommendations 8,4% SCI Primonial 19,7% Each institutional investor (>10%) Capimmo PREDICA has a director on the Board Two independent directors
Slide 43: Thank you
Entepnse Thank you.