Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — Unibail-Rodamco — FY2015 Earnings Presentation
112 slides from Unibail-Rodamco-Westfield's earnings presentation, Feb 2, 2016
Slide 1: 2015 Full-Year Results
2015 FULL-YEAR RESULTS unibail-rodamco
Slide 2: Disclaimer
DISCLAIMER 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 fluctu
Slide 3: Financial Results and Valuation
FINANCIAL RESULTS AND VALUATION La Maquinista, Barcelona
Slide 4: 2015 Full-Year Results and Valuation
2015 FULL-YEAR RESULTS AND VALUATION in € Mn FY-2015 FY-2014 Growth Like-for-like Growth(1) Shopping Centres 1,177 1,192 -1.3% +3.9% Offices 170 172 -1.2% -2.9% Convention & Exhibition 105 100 +5.1% +5.3% Net Rental Income 1,453 1,465 -0.8% +3.2% Recurring Net Result (Group share) 1,030 1,068 -3.5%
Slide 5: Recurring EPS of €10.46 exceeds guidance
Recurring Earnings Per Share (Recurring EPS) came to €10.46 in 2015, comfortably exceeding the range of €10.15-10.35 per share guidance for 2015 provided in January 2015, and representing an underlying growth of +8.3% from the recurring EPS for 2014 adjusted for the impact of (i) the disposals in 20
Slide 6: Recurring EPS Exceeds Guidance
RECURRING EPS EXCEEDS GUIDANCE Evolution of 2015 Recurring Earnings Per Share (REPS) €10.92 +8.3% €10.46 €9.77 -10.5% -1.2% FY-2014 2014 Rebased 2015 Underlying FY-2015 REPS Disposals(1) FY-2014 REPS Disposals(2) Growth REPS 3
Slide 7: Recurring EPS decreased by only 4.2%
Recurring EPS decreased by only -4.2% in 2015 compared to 2014, representing an underlying growth of +8.3% from the 2014 Recurring EPS adjusted for the impact of (i) the disposals in 2014(1) and (ii) the further disposals effected in 2015(2). This 8.3% underlying growth reflects: • Robust like-for-l
Slide 8: Consistent Execution Yields Strong Results
CONSISTENT EXECUTION YIELDS STRONG RESULTS Mall of Scandinavia, Stockholm
Slide 9: Shopping Centres: Solid Like-for-Like NRI Growth
SHOPPING CENTRES: SOLID LIKE-FOR-LIKE NRI GROWTH… (1) Net Rental Income (in € Mn) FY-2015 FY-2014 Growth Like-for-like Growth France 549 629 -12.7% +2.6% Central Europe 148 141 +5.1% +5.4% Spain 147 146 +1.2% +7.6% Nordics 106 97 +9.2% +8.7% Austria 92 88 +4.4% +4.4% The Netherlands 67 72 -7.1% -1.7
Slide 10: Total net change in NRI
The total net change in NRI amounted to -€15.4 Mn compared to 2014 due to: • +€48.8 Mn from acquisitions and changes in consolidation methods: • +€15.6 Mn from delivery of shopping centres or new units, mainly in Sweden (Täby Centrum and Mall of Scandinavia in Stockholm), in Spain (mainly Garbera) a
Slide 11: Despite Ever Lower Indexation
…DESPITE EVER LOWER INDEXATION Lfl NRI growth of Shopping Centres (1) +4.6% +4.7% +4.2% +3.9% +3.8% +3.9% 1.1% 2.6% 2.0% 3.6% 3.0% 3.6% +1.4% 2.8% 0.8% 2.2% 2.1% 1.0% 0.8% 0.6% 0.3% 2009 2010 2011 2012 2013 2014 2015 Indexation Lfl growth above indexation 6
Slide 12: Like-for-like NRI growth of 3.9%
The like-for-like NRI(1) growth amounted to +€36.6 Mn (+3.9%), 360 bps above indexation. The +3.9% like-for-like NRI(1) growth for the Group(2) in 2015 reflects the good performance in renewals and relettings (+2.4% vs +1.8% in 2014), the positive impact of “Other income” (+1.2% vs +1.1% in 2014) an
Slide 13: Raising the Bar with New Iconic Shopping Centres
RAISING THE BAR WITH NEW ICONIC SHOPPING CENTRES New GLA: +210,000 m² MINTO - March POLYGONE RIVIERA - October MALL OF SCANDINAVIA - November 1st million visits in 29 days 30 days 17 days 7
Slide 14: Minto and Polygone Riviera openings
On March 25, 2015, Unibail-Rodamco opened Minto (Mönchengladbach), a 41,867 m² regional shopping destination with more than 100 shops (TIC(1) of €213 Mn). The shopping centre includes the Group’s latest innovations such as Iconic Shop fronts and 4 Star services. The retail offer includes internation
Slide 15: Extensions and Renovations Drive Footfall and Sales
EXTENSIONS AND RENOVATIONS DRIVE FOOTFALL AND SALES TÄBY CENTRUM - March EURALILLE - May RUHR PARK - November Footfall(1) n.m. +13% +40% Sales(1) +34% +9% +33% 8
Slide 16: Täby Centrum, Euralille and Ruhr Park
The last phase of the Täby Centrum (Stockholm) extension has been delivered in March 2015. This five year project represents a TIC(2) of €320 Mn. On May 20, 2015, Euralille (Lille) revealed its first refurbishment since its construction in 1994. The TIC(2) of this project was €70 Mn. More than 50,00
Slide 17: Further Improving the Shopping Centre Portfolio
FURTHER IMPROVING THE SHOPPING CENTRE PORTFOLIO Average profile of a Unibail-Rodamco shopping centre 2014 2015 €1.3 Bn Deliveries GMV(1) €395 Mn €450 Mn GLA(1) 66,000 m² 69,200 m² €0.6 Bn Extensions/Renovations NIY(2) 4.8% 4.6% Footfall(1) 10.8 Mn 11.6 Mn €0.7 Bn Asset disposals OCR(3) 14.2% 14.1% 9
Slide 18: Definitions and footnotes
(1) Gross Market Value (GMV), Gross Lettable Area (GLA), Footfall as at December 31, 2014 and 2015, respectively, and including assets consolidated under equity method at 100% share (2) Net Initial Yield (NIY): annualized contracted rent (including indexation) and other incomes for the next 12 month
Slide 19: Offices: Recovering Market with Scarcity of New Buildings
OFFICES: RECOVERING MARKET WITH SCARCITY OF NEW OR REFURBISHED-AS-NEW BUILDINGS Office market in the Paris Region (in Mn m²)(1) 3.9 4.0 3.9 3.6 3.6 3.6 3.6 2.5 2.5 2.1 2.1 2.2 1.9 1.9 26.9% 24.7% 23.3% 19.3% 18.2% 17.5% 18.0% 2009 2010 2011 2012 2013 2014 2015 Total Immediate Supply New / Refurbishe
Slide 20: Paris Region take-up and supply
Despite a mixed first half of 2015, take-up in the Paris Region in 2015 increased by more than +4% compared to 2014, for a total of 2.2 million m².(1) This take-up, close to the 10-year average (2.3 million m²) is primarily due to the high level of transactions below 5,000 m². This segment saw an in
Slide 21: Majunga Now Fully Let
LEASING STRATEGY PAYS-OFF: MAJUNGA NOW FULLY LET! Majunga, La Défense GLA 65,491 m² 100% let HQE BBC BREEAM December 2014 January 2016 New Art 12-year firm leases of Working 11
Slide 22: Deloitte lease in Majunga
In December 2015, the Group signed a binding term sheet for a lease agreement with Deloitte for a lease of the remaining 31,164 m² of GLA in Majunga (La Défense) which was ratified and signed on January 18, 2016. Majunga is now fully let. 22
Slide 23: High Quality Office Developments: Leasing Successes
HIGH QUALITY OFFICE DEVELOPMENTS: LEASING SUCCESSES! 2-8 Ancelle Jan. 2013 Sept. 2014 100% pre-let Delivery So Ouest Office Jan. 2013 May 2014 Delivery 100% let So Ouest Plaza Dec. 2014 May 2015 Jun. 2015 80% pre-let Delivery 100% let Majunga Jul. 2014 Dec. 2014 Jan. 2016 Delivery 49% let 100% let 1
Slide 24: Office leasing and disposal approach
Unibail-Rodamco aims to let its high quality office buildings to tenants with a very good credit rating at the mandated reference rent. The Group will tolerate vacancy in order to achieve its leasing objective. Full leasing of its buildings usually happens in less than 18 months. The Group expects t
Slide 25: Convention & Exhibition: Favorable Calendar
CONVENTION & EXHIBITION: FAVORABLE CALENDAR 2012 2013 2014 2015 INTERNATIONAL AIR SHOW, Paris le Bourget International Air Show Motor Show SIAL Batimat Intermat SIMA COP 21 9 million visitors(1) 73.6 million m² rented 266 shows 118 congresses 13
Slide 26: 2015 shows
2015 was characterized by the following shows: • Annual shows: • The “International Agriculture Show” (SIA) attracted 691,000 visitors, one of the best attendances in the past ten years (on a comparable number of days); • The 2015 edition of the “Foire de Paris” attracted 563,500 visitors and 3,500
Slide 27: COP 21 in Viparis' Premises
CONVENTION & EXHIBITION: COP 21 IN VIPARIS’ PREMISES 180,000 m² rented 117,000 attendees > 190 Nations 3,000 meetings 14
Slide 28: COP 21 at Paris Le Bourget
COP 21, the UN’s Global Climate Change Conference, held in December at Paris Le Bourget, hosted 19,385 delegates from more than 190 countries and 150 world leaders. 28
Slide 29: Convention & Exhibition: Strong Performance
CONVENTION & EXHIBITION: STRONG PERFORMANCE Growth Growth in € Mn FY-2015 FY-2014 2015/2014 FY-2013 2015/2013 Net Rental Income 105 100 +5.1% 96 +10.3% On site property services 52 50 +3.5% 40 +30.4% + share of the profit of associates Recurring Net Operating Income 157 150 +4.6% 135 +16.2% Deprecia
Slide 30: Comexposium stake sale to Charterhouse
In order to accelerate Comexposium’s international development and reinforce CCIR’s partnership with Comexposium, Unibail-Rodamco and the CCIR entered into an agreement with Charterhouse, pursuant to which Charterhouse acquired Unibail-Rodamco’s 50% stake in Comexposium on July 31, 2015. This transa
Slide 31: Operating Management at the Forefront of Market Evolution
OPERATING MANAGEMENT AT THE FOREFRONT OF MARKET EVOLUTION Aéroville, Paris Region
Slide 32: Active Leasing Continues to Drive MGR Uplift
ACTIVE LEASING CONTINUES TO DRIVE MGR UPLIFT MGR uplift(1) Leases signed(2) 1,367 24.7% 23.7% 21.5% 19.9% 19.8% 20.2% Rotation rate(3) 13.2% 21.4% 18.3% 19.4% 19.6% 18.2% 15.3% MGR uplift(4) large malls 2010 2011 2012 2013 2014 2015 +20.2% MGR uplift total portfolio MGR uplift large malls 17
Slide 33: 1,367 deals signed in 2015
As at December 31, 2015, a total of 1,367 deals had been signed for the Group’s portfolio of standing assets surpassing the 1,315(5) deals signed in 2014. The Group’s leasing teams generated a Minimum Guaranteed Rent uplift(1) of +18.2% and a rotation rate(3) of 13.2% in 2015, exceeding the Group’s
Slide 34: Signing the Most Promising Retailers
SIGNING THE MOST PROMISING RETAILERS… Percentage of IPRs(1) in Unibail-Rodamco tenant rotation(2) 1st full-concept 1st in a shopping 1st in a shopping centre in Continental Europe centre in France in Continental Europe 13.8% 12.0% 10.1% 8.4% 1st in a shopping 1st in France 1st in Central Europe cent
Slide 35: Leases signed with IPRs
In 2015, the Group signed 196 leases with IPRs(1), a +15.3% increase compared to the 170(3) deals signed last year, representing 13.8% of the tenant rotation(4) in 2015. More exciting retailers have chosen Unibail-Rodamco’s shopping centres to open their first mono-brand stores in Continental Europe
Slide 36: Offering Exclusive Brands and Designers
OFFERING EXCLUSIVE BRANDS AND DESIGNERS > 3,000 m² 19
Slide 37: The Designer Gallery
The Designer Gallery™: the Group continues to emphasize its differentiation strategy and places creativity at the heart of its shopping experience with The Designer Gallery™, recently unveiled at Polygone Riviera (Cagnes-sur-Mer) and Mall of Scandinavia (Stockholm). The Designer Gallery™ is an exclu
Slide 38: Impact of Online Retail: Growing Need for Space
THE IMPACT OF ONLINE RETAIL: GROWING NEED FOR SPACE Average size of flagship stores in Unibail-Rodamco’s shopping centres 2010 2015 +55% 2,400 m² 1,500 m² 2,300 m² +43% 3,200 m² 20
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Slide 40: Online Retail: Barriers Between Online and Offline Falling
THE IMPACT OF ONLINE RETAIL: BARRIERS BETWEEN ONLINE AND OFFLINE FALLING Amazon pop-up stores Les 4 Temps and Parly 2, Paris Region 100% market share in French retail 9 Unibail-Rodamco’s shopping centres equipped 21
Slide 41: Amazon pop-up stores and lockers
Amazon launched its first pop-up stores in France in Les Quatre Temps and Parly 2 (both in the Paris Region) selling Kindle e-books and Fire tablets. Amazon launched its Amazon Locker program in France in the Group’s shopping centres. Nine of Unibail-Rodamco’s shopping centres currently offer the Am
Slide 42: Disruptive Brands Drive Footfall and Sales
DISRUPTIVE BRANDS DRIVE FOOTFALL AND SALES Devialet pop-up store Parly 2, Paris Region 22
Slide 43: Devialet pop-up store
Devialet, with its high-quality Phantom speakers, chose Parly 2 (Paris Region) for its first pop-up store in a shopping centre in France. 43
Slide 44: Disruptive Brands Drive Footfall and Sales
DISRUPTIVE BRANDS DRIVE FOOTFALL AND SALES From pop-up stores… … to permanent stores 23
Slide 45: Brand Events team and cross-border deals
The Group’s Brand Events team seeks to sign leases with exclusive and pioneering retailers in cross-border deals offering such retailers the Group’s pan-European platform with innovative formats such as digital screens and pop up stores designed specifically for such retailers. In 2015, Unibail-Roda
Slide 46: The Platform for Unexpected Events
THE PLATFORM FOR UNEXPECTED EVENTS The Force Awakens in 24
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Slide 48: Enriching Customer Experience Through Digital Services
ENRICHING CUSTOMER EXPERIENCE THROUGH DIGITAL SERVICES Smart Map Meet My Friends Escape game Les 4 Temps, Paris Region Smart Park 25
Slide 49: Smart Park, Smart Map, Meet My Friends
Having identified the main pain points for visitors, Unibail-Rodamco developed three features: • Smart Park: easy entrance and exit from the parking for loyalty card holders by automatic recognition of their number plate and automatic memorization of the parking slot; • Smart Map: enabling visitors
Slide 50: Market Share Gains in Every Region
MARKET SHARE GAINS IN EVERY REGION… +12.7% +3.6% Group +4.6% +2.2% Nordics(3) Germany +5.0% +3.2% 240 bps Central Europe Above France National Sales +4.5% +2.3% Indices(1)(2) +4.1% +1.4% +3.2% +1.1% Spain Austria +8.3% +3.5% Tenants’ sales growth in Unibail-Rodamco’s shopping centres(1) National Sal
Slide 51: Tenant sales growth of 4.1%
Tenant sales(1) in the Group’s shopping centres grew by +4.1% through December 31, 2015 compared to 2014. Through November 30, 2015, Group’s tenant sales(1) outperformed the relevant national sales indices(2) by +240 bps, with growth of +4.6% compared to the same period last year. Spain, Germany and
Slide 52: Despite Unprecedented Events
… DESPITE UNPRECEDENTED EVENTS Monthly tenant sales growth in Unibail-Rodamco’s shopping centres (%) (1) French portfolio Total portfolio 11.3% 9.2% 6.4% FY 2015 FY 2015 6.0% 5.6% 4.9% +3.5% 3.8% +4.1% 2.9% 1.1% 0.9% -0.7% 1.5% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Slide 53: Business model strength and Paris attacks impact
The strength of the Group’s business model was further illustrated by the fact that the +4.1% sales growth by French retailers in the Group’s portfolio through November 2015 outperformed the national sales index by +270 bps. French tenant sales benefited also from strong growth in newer or refurbish
Slide 54: Strong Sustainability Achievements
STRONG SUSTAINABILITY ACHIEVEMENTS… CO2 Energy (1) (2) Achievements 2006-2012 -58% -23% New targets 2012-2020 -30% -25% Achievements 2012-2015(3) -18% -13% > 0.7 million m3 water 49.7 GWh Saved since 2012 Annual consumption Annual consumption of 4,780 households(4) of 10,635 households(4) 28
Slide 55: Energy intensity decrease
In 2015, the Group’s energy intensity decreased a further -1.5% compared to 2014 (in kWh/visit for the managed shopping centre portfolio on a like-for-like basis). This performance led to a cumulative -13% decrease of energy intensity since 2012, in line with the objective of a -25% decrease by 2020
Slide 56: Unrivalled BREEAM Ratings
… AND UNRIVALLED BREEAM RATINGS Breakdown of “BREEAM In-Use” by rating(1)(2) Very Good 4% 1st Outstanding 1st Outstanding 1st Outstanding Germany The Netherlands Poland Outstanding 59% 46 Excellent 37% retail assets(2) 1st Outstanding Best score Austria in Europe(3) 21 certifications in 2015 96% rat
Slide 57: Environmental certifications progress
In 2015, the Group accelerated the progress towards environmental certifications for its entire portfolio and development projects. For its development projects, the Group obtained one additional environmental certification under the BREEAM scheme for Polygone Riviera (Cagnes-sur-Mer) and confirmed
Slide 58: Strong Operating Results Creating Value
STRONG OPERATING RESULTS CREATING VALUE Mall of Scandinavia, Stockholm
Slide 59: Value Creation: €29.24 per Share
VALUE CREATION: €29.24 PER SHARE Going concern Net Asset Value(1) (in € per share) Non Lfl revaluation €186.70 Recurring +€10.46 EPS +€4.62 and intangible assets(2) €166.30 +€3.66 Rent effect(3) +€29.24 -€9.60 Asset +€0.76 €157.46 +€19.05 revaluation +€10.77 Yield effect(3) -€0.27 Other(4) GMV €37.8
Slide 60: EPRA NNNAV and going concern NAV
Unibail-Rodamco’s EPRA triple Net Asset Value (NNNAV) amounted to €169.90 per share as of December 31, 2015, an increase of +12.4%, or +€18.70, from €151.20 at December 31, 2014. The going concern NAV (GMV based), measuring the fair value on a long-term, ongoing basis, came to €186.70 per share as a
Slide 61: Active Portfolio Management Generates Results
ACTIVE PORTFOLIO MANAGEMENT GENERATES RESULTS Shopping centre portfolio (Lfl) Yield Rent Total +6.2% +3.4% ≥6Mn +2.8% Total +3.3% +2.6% +5.9% +€1.3 Bn Lfl revaluation <6Mn -1.2% -1.1% -2.3% Shopping centres with more than 6 Mn visits > 97% GMV(1) Average GMV of top 20 retail assets: > €1.0 Bn(2) 32
Slide 62: Mall portfolio GMV growth
Unibail-Rodamco’s mall portfolio saw its gross market value (GMV) increase by +5.9% on a like-for-like basis, of which +6.2% for malls with more than 6 Mn visits per annum, representing 97% of the GMV(1). For malls with more than 10 Mn visits per annum, this was +7.4%. With footfall and tenant sales
Slide 63: Record Risk Premium
RECORD RISK PREMIUM Unibail-Rodamco’s French shopping centre portfolio net initial yield spread (1) (2) 5.8% 4.3% 4.3% 3.6% 340 bps risk premium 0.9% 2007 2008 2009 2010 2011 2012 2013 2014 2015 French Unibail-Rodamco shopping centre net initial yield 10-year French OAT rate (1-year average) 33
Slide 64: French net initial yield and risk premium
The French shopping centre portfolio’s net initial yield(1) as at December 31, 2015 decreased to 4.3% from 4.4% as at December 31, 2014, while the Group’s shopping centre portfolio’s net initial yield(1) as at December 31, 2015 decreased to 4.6% from 4.8% at year-end 2014. A change of +25 basis poin
Slide 65: Investor Demand Drives Yield Compression
INVESTOR DEMAND DRIVES YIELD COMPRESSION Office portfolio (Lfl) Yield Rent Total +8.6% +6.1% +€0.2 Bn Lfl revaluation -2.5% 34
Slide 66: Office portfolio GMV growth
The Group’s office portfolio saw its GMV grow by +6.1% on a like-for-like basis as a result of a yield compression effect of +8.6%, evidenced by several benchmark prime transactions in Paris, which was partially offset by a -2.5% rental effect. 66
Slide 67: So Ouest Urban Redevelopment: A Case Study
SO OUEST URBAN REDEVELOPMENT: A CASE STUDY 54,300 m² Shopping centre GLA 70,000 m² Total Office GLA 8.0 Mn Shopping centre footfall Value increase(1) Delivery of €1.1 Bn October 2012 Shopping Centre +39% So Ouest Plaza €0.8 Bn €0.2 Bn January 2013 So Ouest Office So Ouest Office €0.2 Bn May 2015 So
Slide 68: Footnotes
(1) As at December 31, 2015 (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 rela
Slide 69: Cerny Most: Case Study of an Ongoing Story
CERNY MOST: CASE STUDY OF AN ONGOING STORY 55 399 3 Rent Tenant sales(3) Revaluation(4) 86 341 Yield +108% +55% 153 Re-marketing 102 Re-tenanting 2010 2013 2015 Construction works Active operating management Delivery GMV(1) TIC/CAPEX (€Mn)(2) Revaluation (€Mn) Tenant Sales (€ Mn) 36
Slide 70: Footnotes
(1) Gross Market Value (GMV) (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 71: 2015: Record Number of Retail Deliveries
2015: RECORD NUMBER OF RETAIL DELIVERIES MINTO TÄBY CENTRUM EURALILLE POLYGONE RIVIERA RUHR PARK MALL OF SCANDINAVIA Yield on cost(3) 6.8% (4) Additional Cumulative GLA(1) 244,000 m² TIC(2) €1.9 Bn Yield on cost (without 7.4% (4) Polygone Riviera)(3) 37
Slide 72: Projects delivered in 2015
A significant number of projects were delivered in 2015, in both retail and offices sector, of which the most important retail projects are: • Mall of Scandinavia, a 101,048 m² shopping centre in Stockholm, for a TIC(2) of €657 Mn; • Polygone Riviera, a 67,367 m² shopping centre in Cagnes-sur-Mer, f
Slide 73: Disciplined Asset Rotation Impacts Short-Term Earnings
DISCIPLINED ASSET ROTATION IMPACTS SHORT-TERM EARNINGS… BUT DRIVES RETURNS €1.6 Bn cash proceeds (1) Retail Net proceeds(2) (€ Mn) Total assets disposed 363 46.1% stake in mfi 751 NIY(3) Premium over last Total 1,114 unaffected appraisal(4) 4.9% 14.0% Offices Net proceeds(2) (€ Mn) Total assets disp
Slide 74: Retail assets disposed
Retail assets disposed include: • The sale on June 30, 2015, of the Group’s 75% stake in Arkady Pankrac (Prague) to Atrium European Real Estate Limited; • The sale on October 1, 2015, of the Nova Lund (Lund) shopping centre to TH Real Estate; • The sale of several minor non-core assets, located in F
Slide 75: Active Balance Sheet Management Contributes to Strong Financial Performance
ACTIVE BALANCE SHEET MANAGEMENT CONTRIBUTES TO STRONG FINANCIAL PERFORMANCE Polygone Riviera, Cagnes-sur-Mer
Slide 76: Managing and Extending Debt Maturity Profile
MANAGING AND EXTENDING DEBT MATURITY PROFILE End 2014 End 2015 1st ORNANE 500 Mn negative yield 1.375% 15-Y longest maturity 500 Mn 10-Y 1% lowest coupon 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 >2025 €1.9 Bn Liability Management in April 2015 40
Slide 77: Debt issuance and tender offers in 2015
In 2015, the Group took advantage of positive market windows and of limited financing needs to manage its balance sheet by buying-back existing public and convertible bonds in H1 and by issuing new diversified debt at attractive conditions and for longer maturities, completing the following number o
Slide 78: Disciplined and Opportunistic Approach
DISCIPLINED AND OPPORTUNISTIC APPROACH… 10-year Euro swap rate Euro swap curve Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 December 2014 April 2015 December 2015 (Years) 0 5 10 15 1st 15-Y 1st negative 10-Y for a real estate yield ORNANE Green Bond in Euro for a real estate 1.00% • Long-term swaps cancelled
Slide 79: Low long-term rates and hedging restructuring
The Group took advantage of historically low long term interest rates in H1-2015 to issue longer maturities and lock-in attractive coupons kept at fixed rate: • €500 Mn 7-year ORNANE with a 0% coupon; • €500 Mn 10-year bond with a 1.0% coupon; • €500 Mn 15-year bond with a 1.375% coupon. The market
Slide 80: Strengthens Earnings Growth and Mitigates Risk
… STRENGTHENS EARNINGS GROWTH AND MITIGATES RISK Average cost of debt (in %) Average debt maturity (in years) 3.9% 6.5 3.6% 3.4% 5.9 2.9% 5.4 2.6% 4.9 2.2% 4.5 4.3 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 €5,450 Mn undrawn credit lines Fully hedged over next 3 years 42
Slide 81: Average cost of debt decreased to 2.2%
Unibail-Rodamco’s average cost of debt decreased to 2.2% for 2015 compared to 2.6% for 2014. This record low average cost of debt results from low coupon levels the Group achieved during the last 3 years on its fixed rate debt, the tender offer transactions realised in October 2014 and April 2015, t
Slide 82: Solid Financial Ratios
SOLID FINANCIAL RATIOS Contained LTV(1) Strongest ICR(2) (in x) 4.6 60%(3) 4.0 3.8 3.5 41% 41% 37% 35% 2.5 30% 2.0(3) 2000 2002 2004 2006 2008 2010 2012 2014 2015 2000 2002 2004 2006 2008 2010 2012 2014 2015 Stable A rating by S&P and Fitch Upgrade in liquidity rating by S&P from Adequate to Strong
Slide 83: Financial ratios and credit ratings
The financial ratios stand at healthy levels: • The Interest Coverage Ratio (ICR) improved and stands at 4.6x (vs 4.2x in 2014); • The Loan to Value (LTV) ratio decreased to 35% (vs 37% as at December 31, 2014). This evolution is mainly due to disposals completed in 2015 and valuation increases part
Slide 84: Ambitious Development Pipeline Supports Growth
AMBITIOUS DEVELOPMENT PIPELINE SUPPORTS GROWTH Neo project, Brussels
Slide 85: Development Pipeline: A Unique Opportunity to Create Value
DEVELOPMENT PIPELINE: A UNIQUE OPPORTUNITY TO CREATE VALUE €1.5 Bn €8.0 Bn -€2.2 Bn +€1.6 Bn €7.4 Bn €2.2 Bn Secured Offices 21% exclusivity(1) Deliveries Secured 1.5 -2.0 New Projects exclusivity(1) 0.8 30% and others(4) €0.4 Bn 5% Projects Excluded €7.4 Bn -0.1 Controlled(2) 4.3 Controlled(2) 5.2
Slide 86: Consolidated development pipeline of €7.4 Bn
Unibail-Rodamco’s consolidated development project pipeline amounted to €7.4 Bn (€6.7 Bn in group share) as at December 31, 2015, corresponding to a total of 1.5 Mn m² Gross Lettable Area (GLA), to be re-developed or added to the standing assets portfolio. The Group retains significant flexibility o
Slide 87: Visibility on Deliveries
VISIBILITY ON DELIVERIES (in € Mn) 944,000 1,400 1,200 627,300 Post 2020 1,000 531,500 800 GLA +580,700 m² 600 400 205,100 TIC(5) €3,051 Mn 200 36,100 0 2016 2017 2018 2019 2020 Committed(1) Controlled(2) Secured exclusivity(3) Cumulative GLA (m²)(4) 46
Slide 88: Project category definitions
(1) “Committed” projects: projects currently under construction, for which Unibail-Rodamco owns the land or building rights and has obtained all necessary administrative authorizations and permits (2) “Controlled” projects: projects in an advanced stage of studies, for which Unibail-Rodamco controls
Slide 89: Next: Forum des Halles
NEXT: FORUM DES HALLES Additional GLA(1) +14,989 m² TIC(2) €164 Mn Forum des Halles – Paris / Extension and Renovation / Delivery: April 2016 / 93% let 47
Slide 90: Footnotes
(1) Gross Lettable Area (GLA) (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 re
Slide 91: Next: Forum des Halles
NEXT: FORUM DES HALLES New retailers Forum des Halles – Paris / Extension and Renovation / Delivery: April 2016 / 93% let 48
Slide 92: Footnotes
(1) Gross Lettable Area (GLA) (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 re
Slide 93: Ongoing Projects
ONGOING PROJECTS CARRÉ SÉNART, Paris Region CHODOV, Prague H2-2017 H2-2017 GLA(1): +29,055 m2 TIC(2): €233 Mn 39% pre-let(3) GLA(1): +41,411 m2 TIC(2): €166 Mn 44% pre-let(3) 49
Slide 94: Footnotes
(1) Gross Lettable Area (GLA) (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 re
Slide 95: Ongoing Projects
ONGOING PROJECTS WROCLAVIA, Wroclaw TRINITY, La Défense H2-2017 H2-2018 GLA(1): 79,634 m2 TIC(2): €235 Mn 49% pre-let(3) GLA(1): 48,693 m2 TIC(2): €310 Mn 50
Slide 96: Footnotes
(1) Gross Lettable Area (GLA) (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 re
Slide 97: Delays for Certain Projects
DELAYS FOR CERTAIN PROJECTS MAQUINEXT, Barcelona THE SPRING, The Hague Region H2-2020 H1-2019 GLA(1): +38,363 m2 TIC(2): €179 Mn GLA(1): +77,392 m2 TIC(2): €467 Mn 51
Slide 98: Footnotes
(1) Gross Lettable Area (GLA) (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 re
Slide 99: New Project: Vélizy 2
NEW PROJECT: VÉLIZY 2 GLA(1) +35,792 m² TIC(2) €268 Mn Vélizy 2 Extension / 1st phase: H1-2019 52
Slide 100: Footnotes
(1) Gross Lettable Area (GLA) (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 re
Slide 101: Offices: Landmark Projects
OFFICES: LANDMARK PROJECTS SISTERS, La Défense TRIANGLE, Paris Post 2020 Post 2020 GLA(1): 95,000 m² TIC(2): €629 Mn GLA(1): 85,140 m2 TIC(2): €521 Mn 53
Slide 102: Footnotes
(1) Gross Lettable Area (GLA) (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 re
Slide 103: Offices: Standing Assets in Motion
OFFICES: STANDING ASSETS IN MOTION VILLAGES 3 & 4, La Défense ISSY-GUYNEMER, Paris Region H1-2016 H2-2018 GLA(1): 13,772 m2 TIC(2): €29 Mn GLA(1): 43,869 m2 TIC(2): €140 Mn 54
Slide 104: Footnotes
(1) Gross Lettable Area (GLA) (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 re
Slide 105: Dividend and Outlook
DIVIDEND AND OUTLOOK Wroclavia, Wroclaw
Slide 106: Dividend
DIVIDEND For 2015 fiscal year Dividend at €9.70(1) “At least €9.60 per share” 93% pay-out ratio To be paid in cash • Interim: €4.85 - March 29, 2016 • Final: €4.85 - July 6, 2016(1) 56
Slide 107: Dividend paid in two instalments
In 2016, Unibail-Rodamco will again pay its dividend in two instalments. Unibail-Rodamco believes that this policy offers shareholders a regular flow of dividends which more closely matches the Group's cash flows. For the 2015 fiscal year, the Group will propose a cash dividend of €9.70 per share, s
Slide 108: Outlook – 2016
OUTLOOK – 2016 Expected 2016 Recurring EPS (€ per share) €11.20 - +8 to +10% €11.00 €10.46 €10.18 -2.6% -10.5% 2015 REPS 2015 Disposals Rebased Growth Expected 2015 REPS 2016 REPS 57
Slide 109: 2016 outlook and macroeconomic environment
The macroeconomic environment in 2015 benefited from tailwinds such as improved consumer confidence in a number of countries, lower consumer debt, cost of debt and commodity prices. Looking ahead, political unrest in the European Union, continued negative adjustments of the Chinese economy and emerg
Slide 110: Outlook – Medium Term +6% to +8%
OUTLOOK - MEDIUM TERM Key inputs CAGR • Indexation • Timing of disposals • Timely delivery of projects • Rental uplifts +6% to +8% • Taxation • Cost of debt • No acquisitions assumed 58
Slide 111: Medium-term recurring EPS growth
For the medium term, the Group reiterates it expects to grow its recurring earnings per share at a compound annual growth rate of between +6% and +8%. This medium-term outlook is derived from the Group’s annual 5-year business plan exercise and results in annual growth rates which are different from
Slide 112: www.unibail-rodamco.com
unibail-rodamco www.unibail-rodamco.com