Slide 1: 1st Quarter Results 2014/2015
1st Quarter Results 2014/2015 30 September 2014 1 Brussels, 13 November 2014
Slide 2: Table of contents
Table of contents ▬ Highlights Q1 2014/2015 ▬ Strategy ▬ Achievements ▬ Portfolio analysis ▬ Financials ▬ Shares & shareholders ▬ Outlook ▬ Conclusion 2
Slide 3: Highlights Q1 2014/2015
| 7 TH3TrYre aedifica The urban way to live Highlights Q1 2014/2015
Slide 4: Highlights YTD Q1 2014/2015 (1)
Highlights YTD Q1 2014/2015 (1) ▬ Rental income: +18 % YoY ▬ Total fair value investment properties: €838 m, + €53 m compared to 30 June 2014 ▬ Total fair value of marketable investment properties: +€6 m, +0.7 % recognised in the income statement since the beginning of the 2014/2015 FY ▬ Debt-to-ass
Slide 5: Highlights YTD Q1 2014/2015 (2)
Highlights YTD Q1 2014/2015 (2) ▬ 3 additions since 1 July 2014 ▬ 10 rest homes in the process of being acquired: — 8 in Germany — 2 in Belgium 5
Slide 6: Portfolio YTD Q1 2014/2015
Portfolio YTD Q1 2014/2015 (As of 30 September 2014) ▬ Total portfolio outlook: €994 m — €838 m (including projects on balance sheet) — €156 m (committed investments in pipeline) ▬ Average remaining lease maturity: 19 years 6
Slide 7: Strategy
Strategy 7
Slide 8: Aedifica
Aedifica (As of 30 September 2014) ▬ Belgian REIT (RREC/SIR/GVV) — market cap > €500 m — free float of 88 % — see appendix for characteristics of a Belgian REIT ▬ Investing in the residential market — approx. €838 m investment properties — approx. 404,000 m² ▬ Focusing on demographical evolutions —
Slide 9: Aedifica
_ | FA Aedifica aedifica The urban way to live Hotels & other GROWING POPULATION IN MAIN AGEING IN BELGIAN WESTERN Senior CITIES EUROPE housing Apartment buildings PILLAR N°2 PILLAR N°4 <30% >60%
Slide 10: Demographic evolution: Ageing in Belgium
Demographic evolution Ageing in Belgium Source: "Perspectives de population 2013-2060", Federal Planning Bureau, 2014. 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, 2014. 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 30 September 2014) CORE NON-CORE Senior housing Apartment buildings in Hotels in Western Europe Belgium’s main cities in Belgium Weight: 65 % 26 % 9% Yield: 5.9 % 5.4 % 6.2 % EBIT margin2: 100 % 59 % 99 % Cash flow Value play1 Cash flow (long term leases) (long term
Slide 15: Achievements
Achievements aedifica The urban way to live 15
Slide 16: Milestones
Milestones ▬ Nov. 2005: Creation of Aedifica ▬ Dec. 2005: Filed as Vastgoedbevak/Sicafi + 1st acquisitions ▬ Oct. 2006: IPO €m ▬ Oct. 2010: 1st SPO ▬ Dec. 2012: 2nd SPO ▬ Oct. 2014: New status SIR/GVV 16
Slide 17: Equity: Latest SPO (Dec. 2012)
Equity Latest SPO (Dec. 2012) ▬ Reminder: Gross proceeds = €100 m ▬ Since then, significant growth of investment properties: — 30 Sept 2012: €606 m + €232 m — 30 June 2014: €785 m — 30 Sept 2014: €838 m 17
Slide 18: Equity: Latest contributions in kind
Equity Latest contributions in kind ▬ 2 operations in June 2014: €16 m ▬ Relutive impact on NAV ▬ 345,427 shares with full dividend entitlement ▬ Non-recurring income of €0.6 m ▬ Market cap brought to approx. €520 m 18
Slide 19: Equity: Upcoming contributions in kind
Equity Upcoming contributions in kind ▬ 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 ▬ Acquisition date: on 4 Dec. 2014
Slide 20: Equity: Optional dividend 2013/2014
Equity Optional dividend 2013/2014 ▬ Subscription period: 31 Oct. 2014 19 Nov. 2014 (incl.) ▬ 1 new share per 30 contributed coupons No. 12 of €1.615 net ▬ Issue price: €48.45 ▬ Settlement: 24 Nov. 2014 ▬ Max. €17 m 20
Slide 21: Investments in Germany (1)
Investments in Germany (1) ▬ Germany: — 1st investments abroad since Aedifica’s creation in 2005 — 1st Belgian REIT to invest in Germany ▬ Portfolio of 5 German rest homes: — 493 residents — Total contractual value of €36 million — Initial gross rental yield of approx. 7.5 % — Double net long lease
Slide 22: Investments in Germany (2)
Investments in Germany (2) ▬ Actual German portfolio: SZ AGO Herkenrath SZ AGO Dresden SZ AGO Kreischa Goldene Au Haus Dottendorf 22
Slide 23: Investments in Germany (3)
Investments in Germany (3) ▬ Acquisition of 8 rest homes subject to outstanding conditions — 462 residents — Total contractual value of more than €60 million — Initial gross rental yield of approx. 7 % — Double net long lease (average remaining lease maturity: approx. 25 years) — Tenant: Residenz-Gr
Slide 24: Investments in Germany (4)
Investments in Germany (4) Rheinbach Wenden-Rothemühle Olpe Bad Harzburg Kalletal Kirchlengern Enger Kierspe 24
Slide 25: Investments & completions (1)
Investments & completions (1) YTD 2014/2015 (As of 30 September 2014) — 2 acquisitions: ̶ Oase Aarschot (Wissenstraat) in Aarschot ̶ Oase Tienen in Tienen — 1 completion: ̶ Eyckenborch in Gooik 25
Slide 26: Investments & completions (2)
Investments & completions (2) YTD 2014/2015 — 10 future acquisitions: ̶ Bad Harzburg (Lower Saxony, Germany) ̶ Enger (North Rhine-Westphalia, Germany) ̶ Kalletal (North Rhine-Westphalia, Germany) ̶ Kierspe (North Rhine-Westphalia, Germany) ̶ Kirchlengern (North Rhine-Westphalia, Germany) ̶ Olpe-Rübl
Slide 27: 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 28: Portfolio analysis
| 7 TH3TrYre aedifica The urban way to live Portfolio analysis 28
Slide 29: Segments
Segments (As of 30 September 2014) Senior housing Apartment buildings (5,116 units (864 apartments in 53 sites) 26 % in 36 sites) 65 % 9% 6 hotels & other (521 rooms) Marketable property at fair value (€814 m) 29
Slide 30: Geographical breakdown
Geographical breakdown (As of 30 September 2014) Germany Wallonia 5% 13 % Brussels 36 % 46 % Flanders Marketable property at fair value (€814 m) 30
Slide 31: Main tenants
Main tenants Breakdow n of senior housing 30 June 2014 30 June 2013 contractual rents by group controlling legal entities in contractual relation w ith Aedifica Senior housing 63% 55% Senior Living Group* (Belgium) 16% 19% Orpea (Belgium) 14% 17% Armonea (Belgium) 13% 11% Soprim@ (Belgium) 10% 5% AG
Slide 32: Lease maturity
Lease maturity (As of 30 September 2014) Initial lease maturity < 15 years 25 % 75 % ≥ 15 years, irrevocable Average remaining lease maturity 19 years Marketable property at fair value (€814 m) 32
Slide 33: Age of buildings
Age of buildings (As of 30 June 2014) Other contracts Buildings > 10 years 19 % Other contracts Buildings between 14 % 67 % Long term 0-10 years triple net contracts Marketable property at fair value (€766 m) 33
Slide 34: Occupancy rate
Occupancy rate Portfolio excl. furnished apartments* (92 % 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) 34
Slide 35: Occupancy rate: Furnished apartments
Occupancy rate Furnished apartments* (8 % of portfolio) 93 % 71 % Volatility due to short-term contracts * Definition Furnished : rented days QTD / total number of days QTD. YTD Sept. 2014: 71.3 %; YTD June 2014: 78.0 %; YTD Sept. 2013: 79.4 %; YTD June 2013: 82.6 %. 35
Slide 36: Yields on fair value
Yields on fair value (As of 30 September 2014) Weighted average 5.8 % 36
Slide 37: Segment EBIT margins
Segment EBIT margins* (As of 30 June 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 % 99 %
Slide 38: Valuation of property
Valuation of property*: 2008 2014 FY 2008/2009 FY 2009/2010 FY 2010/2011 FY 2011/2012 FY 2012/2013 FY 2013/2014 Q1 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% 5,424 1% Apartment buildings -7,851 -4% -1,904 -1% 1,552 1% 3,032 2% -82
Slide 39: Development projects
Development projects (As of 30 September 2014) Projects and renovations Address Estim ated Inv. as of Future Date of Com m ents inv. 30 Sept. 2014 inv. com pletion (in € m illion) I. In progress Residentie Sporenpark Beringen 17.4 9.3 8.1 2014/2015 Construction of a new rest home Rue Haute Brussels
Slide 40: Development projects
Development projects 228.0 -24.0 -20.0 -4.9 -0.5 178.6 40
Slide 41: Financials
| 7 we aedifica Financials The urban way to live i=! “= \\\ a \melll ‘en =e
Slide 42: Income Statement: Business driven
Income Statement Business driven Income Statement - analytical scheme * 30 June 2014 30 June 2013 Var. (x €1,000) Rental income 40,675 36,230 +12% Rental-related charges -62 -147 Net rental income 40,613 36,083 +13% Operating charges -9,192 -8,549 Operating result before result on portfolio 31,421 2
Slide 43: Income Statement: Business driven
Income Statement Business driven Income Statement - analytical scheme * 30 June 2014 30 June 2013 Var. (x €1,000) Rental income 40,675 36,230 +12% Rental-related charges -62 -147 Net rental income 40,613 36,083 +13% Operating charges -9,192 -8,549 Operating result before result on portfolio 31,421 2
Slide 44: Rental income
Rental income - 453 40,675 + 5,049 - 151 36,230 Change: +26% -1% -10% +12% Like-for-like change: +2% -4% -10% -2% 12% increase YoY 44
Slide 45: Result excl. IAS 39 & IAS 40
Result excl. IAS 39 & IAS 40 * +5,029 -151 -129 -419 -443 20,315 -1,715 +617 -71 +337 +206 +50 17,004 45
Slide 46: Result excl. IAS 39 & IAS 40 vs budget
Result excl. IAS 39 & IAS 40 vs budget * 20,315 18,668 46
Slide 47: Income Statement: Market driven
Income Statement Market driven Income Statement - analytical scheme 30 June 2014 30 June 2013 (x €1,000) Profit excl. IAS 39 & IAS 40 20,315 17,004 IAS 39 impact: changes in fair value of hedging instruments -2,990 1,600 IAS 40 impact: changes in fair value of investment properties 3,816 9,013 Non c
Slide 48: Rental income
Rental income + 1,889 - 117 - 30 11,211 9,469 Change: +35 % -4 % -3 % +18 % Like-for-like change: +1 % -8 % -3 % -3 % 18 % increase YoY 48
Slide 49: Hedging policy
Hedging policy (As of 30 June 2014) ▬ Economic stability and foreseeability of Business driven: interest cash Avg effective interest rate of 4.0 %, lower than expectations and PY (4.2 %) outflows... ▬ ... even in spite Market driven: of accounting Change in FV of derivatives (non cash items) under I
Slide 50: Consolidated balance sheet
Consolidated balance sheet (As of 30 June 2014) Assets Equity & Liabilities 50
Slide 51: Debt-to-assets ratio
Debt-to-assets ratio (As of 30 September 2014) Headroom * : - Debt increase of €107 m without investments or €267 m with investments - Drop of MTM of buildings of 21 % * Based on bank covenant of max. 60 %. Based on legal max. of 65 %, headroom is respectively €149 m, €427 m and 27 %. 51
Slide 52: Credit facilities
Credit facilities (As of 30 September 2014) Credit facilities Maturity Amount (€m) 2014/2015 0 2015/2016 85 2016/2017 150 2017/2018 92 2018/2019 102 2019/2020 55 2020/2021 2 > 2022/2023 15 Total credit facilities 501 No credit facility maturing before 30 June 2015 52
Slide 53: Net asset value
Net asset value Net asset value per share (in €) 30 Sept. 2014 30 June 2014 Var. Based on fair value of investment properties Net asset value based on fair value 39.35 38.74 2% IAS 39 impact 4.04 3.73 Net asset value after deduction of dividend, excl. IAS 39 43.39 42.47 2% Premium on 10 Nov. 2014: 3
Slide 54: Number of shares
Number of shares Num ber of shares 30 Septem ber 2014 30 June 2014 Number of shares outstanding* 10.249.083 10.249.083 Total number of shares 10.249.117 10.249.117 Total number of shares on the stock market 10.249.117 10.162.165 Weighted average number of shares outstanding (IAS 33) 10.249.083 9.917
Slide 55: 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 56: EPRA
EPRA ▬ Aedifica included in the EPRA indices Key performance indicators according to the EPRA principles 30 June 2014 30 June 2013 EPRA Earnings (in €/share) 2.05 1.95 EPRA NAV (in €/share) 42.45 40.24 EPRA NNNAV (in €/share) 38.51 36.95 EPRA Net Initial Yield (NIY) (in %) 5.2% 5.2% EPRA Topped-up N
Slide 57: Shares & shareholders
Shares & shareholders = as
Slide 58: 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* Gross dividend 2013/2014 : €1.90 / share Statutory pay-out ratio : 95 % * 2014/2015 forecast divid
Slide 59: Share price since IPO
Share price since IPO (As of 10 November 2014) 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 €37.18. 59
Slide 60: Total return since IPO
Total return since IPO (As of 10 November 2014) Var. (% ) Aedifica total return 74.43 100 Bel Re Inv Trusts 1,641.49 45 EPRA B. total return 2,867.34 33 EPRA E. total return 1,959.11 -9 Aedifica: based on the IPO price (€41), adjusted to take into account the rights issues of 2010 (- €1.89) and 2012
Slide 61: Shareholding
Shareholding* (Since 15 October 2010) Free float 88.17 % 6.37 % 5.46 % Jubeal Fondation Wulfsdonck Investment via Finasucre * A total of 10,249,117 shares are listed on NYSE Euronext Brussels as of 30 September 2014. 61
Slide 62: Rankings
Rankings (As of 30 June 2014) ▬ 2nd highest free float of all Belgian REITs1 ▬ 4th largest liquidity amongst all Belgian REITs1 (Daily average: €410k at the end of October 2014; €230k at the end of June 2012 before capital increase of Dec. 2012) ▬ 4th largest Belgian REIT in terms of fair value1 ▬ 5
Slide 63: 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 64: 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 65: Corporate governance
Corporate governance ▬ Transparency ▬ Board of Directors NV/SA 10 Directors • 8 non-executive Directors of Management in the box which 5 independent ones • 2 executive Directors Belgian Code 2009 on Audit Committee Corporate Governance Nomination & Remuneration Committee Investment Com
Slide 66: Outlook
Outlook | A TaTTT The urban way to live 66
Slide 67: Outlook FY 2014/2015
Outlook FY 2014/2015 Portfolio ▬ Focus on investments — Development pipeline: deliveries (Aarschot Wissenstraat, Eyckenborch, Tienen, Klein Veldeken, Sporenpark) — New investments in senior housing: ̶ Germany: targets under due diligence ̶ Belgium: targets being studied ▬ Divestments: — Apartments:
Slide 68: Outlook FY 2014/2015
Outlook FY 2014/2015 Portfolio ▬ Focus on investments — Development pipeline: deliveries (Aarschot Wissenstraat, Eyckenborch, Tienen, Klein Veldeken, Sporenpark) Done — New investments in senior housing: ̶ Germany: targets under due diligence ̶ Belgium: targets being studied ▬ Divestments: — Apartme
Slide 69: Outlook FY 2014/2015
Outlook FY 2014/2015 ▬ DPS budgeted at: €1.93/share, higher than PY ▬ EPS budgeted at: €2.15/share, higher than PY 69
Slide 70: Outlook for medium term
Outlook for medium term ▬ Objective for future investments: — Enhancing long-term cash flows (continued focus on senior housing) — Opportunistic value-driven investments (focus on apartments in major Belgian cities) — Growing in German market — Exploring new segments ▬ Heading towards a €1 billion p
Slide 71: Conclusion
Conclusion 71
Slide 72: Attractiveness for shareholders
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 73: 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 73
Slide 74: 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 74
Slide 75: 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 76: Appendix
| A Pe i as ee aedifica The urban way to live Appendix 76
Slide 77: 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 78: 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 79: Geographical breakdown: Belgium
Geographical breakdown Belgium (As of 30 June 2014) Senior housing Apartment buildings Hotels & other 79
Slide 80: Geographical breakdown: Germany
Geographical breakdown Germany (As of 30 June 2014) Senior housing Apartment buildings Hotels & other 80