Ascencio Sa · EURONEXT:ASCE
Ascencio Sa — Conference Presentation (October 2023)
34 slides from Ascencio Sa's conference presentation, October 2023
Slide 1: Ascencio 2023
2 0 a s c e n c I o 2 3 ASCENCIO
Slide 2: Ascencio in a nutshell
as cenc i o i n a nu t she l l 2 ASCENCIO
Slide 3: Ascencio in a nutshell
4% Spain Created in 2006 42 % Listed on Euronext Brussels since 2007 France GEOGRAPHICAL SPREAD (BASED ON Active in : FAIR VALUE) Belgium (SIR) 54 % France (SIIC) Belgium Spain (SOCIMI) Food-anchored & out-of-town retail portfolio Others 17,10% Shoes 3,10% Food Sport & 40,50% Leisure COMPLEMEN
Slide 4: Context
con t ex t 4 ASCENCIO
Slide 5: Inflationary environment, rising interest rates, ESG
INFLATORY ENVIRONMENT Short term: Positive impact on rental revenues Medium term: Affordability of rental levels Competitiveness in supermarkets subsector (low margin activity) Importance of tenant / client relationship RISING INTEREST RATES Market impacts • Financing cost & availabl
Slide 6: Activity summary
a c t i v i t y s u mm a r y 6 ASCENCIO
Slide 7: Real estate activity
r e a l e s t a t e a c t i v i t y a t 30 / 06 / 23 6 EPRA occupancy rate (%) 30-06-2023 31-03-2023 30-09-2022 NEW LEASES SIGNED Rental levels on average above ERV and in line Belgium 97.0% 96.8% 96.1% with passing rents 28 France 98.9% 98.9% 98.3% Spain 100,0% 84.0% 83.5% LEASES RENEWED TOTAL 97,9
Slide 8: Portfolio: resilient valuations
Resilient valuations of the portfolio : Portfolio Geographical Fair value Gross yield Fair value Gross yield Fair value Gross yield spread (€000) (%) (€000) (%) (€000) (%) (30-06-2023) (30-06-2023) (30-06-2023) (31-03-2023) (31-03-2023) (30-09-2022) (30-09-2022) BELGIUM 54% 405,158 7.17% 403,261 7.1
Slide 9: Financial activity
f i n a n c i a l a c t i v i t y a t 3 0 / 0 6 / 2 3 Refinancing ― 5 new bank credit lines for a total of €55 million ― Extension of hedge structure ongoing 25.000 M€ 2.274 M€ 30.500 M€ Bonds Investment Financial debt structure Hedge ratio Medium loans 4.382 M€ 92.5% Term Notes IFRS 16 30-06-23 31-
Slide 10: Financials
f i n a n c i a l s 10 ASCENCIO
Slide 11: EPRA earnings
E P R A E a r n i n g s a t 3 0 / 0 6 / 2 3 EPRA earnings : MAIN IMPACTS increase of 5.3 % (at 30/06/23) → Increase of rental revenues of 7.2% (Like-for-Like : +7.2%) → Slight increase of real estate charges & overheads → Financial charges significantly increasing but compensated by hedging income →
Slide 12: Net results
n e t r e s u l t S a t 3 0 / 0 6 / 2 3 Net results : MAIN IMPACTS decrease of 54% → Revaluation of real estate porfolio (+€8,6 million vs +€21,0 million) → Revaluation of hedging instruments (-€1,9 million vs +€26,4 million) CONCLUSION Net results of €33,2 million (5,04€ per share) at 30/06/2023 co
Slide 13: Profit & loss account
p r o f i t & l o s s a c c o u n t CONSOLIDATED RESULTS (€000S) 30/06/2023 30/06/2022 CONSOLIDATED RESULTS (€000S) 30/06/2023 30/06/2022 RENTAL INCOME 38.348 35.770 Rental related charges -201 515 EPRA EARNINGS 26.765 25.416 Recovery of property charges 818 451 Result on sales of investment propert
Slide 14: Consolidated balance sheet
c o n s o l i d a t e d b a l a n c e s h e e t CONSOLIDATED BALANCE SHEET (€000s) 30/06/2023 30/09/2022 ASSETS 794.058 783.312 Intangible assets 52 24 Investment properties 749.780 738.933 Other tangible assets 43 35 Other non-current assets 28.963 31.514 Actifs détenus en vue de la vente 0 0 Curre
Slide 15: Share price & dividend policy
s h a r e p r i c e & d i v i d e n d p o l i c y 30-06-2023 31-03-23 30-09-22 Closing Price 44.00€ 48.70€ €50.70 Premium/discount (EPRA NTA) -31.0% -21.7% -18.7% Market cap (millions EUR) 290.2 321.2 334.4 15 ASCENCIO
Slide 16: Share price & dividend policy
s h a r e p r i c e & d i v i d e n d p o l i c y Continuous growth of dividend per share % 4,1 3,95 3,9 3,70 3,7 3,65 3,5 Dividend Yield 3,5 3,3 3,4 2021/2022 3,3 3,2 7,8% 3,05 Pay-out ratio 3,1 3,0 3,0 2021/2022 2,9 76,8% 2,72 2,7 2,5 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 16
Slide 17: Outlook: confirmation of Ascencio's strategy
o u t l o o k c o n f i r m a t i o n o f a s c e n c i o ’ s s t r a t e g y 17 ASCENCIO
Slide 18: Outlook
o u t l o o k ― Proactive management of portfolio and clients ― Maintaining a strong balance sheet structure & liquidity ― Deployment of ESG strategy & implementation of digitalization project 18 ASCENCIO
Slide 19: Q&A
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Slide 20: Appendix
a p p e n d i x 20 ASCENCIO
Slide 21: Who we are
w h o w e a r e 21 ASCENCIO
Slide 22: An investor in food-anchored & out-of-town retail
a n i n v e s t o r i n f o o d a n c h o r e d & o u t - o f - t o w n r e t a i l A hybrid portfolio ― Supermarkets (40% of total rental income) ― Retail parks At 31/03/2023 104 €50 million BUILDINGS ANNUAL RENTAL INCOME €750 million 448,300 m2 TOTAL PORTFOLIO VVALUE TOTAL AREA 22 ASCENCIO
Slide 23: Supermarkets and retail parks
Supermarkets STRATEGIC Retail parks LOCATIONS OPEN AIR RETAIL MIX GOOD RENTAL TO MEETING CONSUMERS’ SHOPPING REVENUE RATIO FOR PRIMARY NEEDS RETAILERS GOOD CONVERSION ACCESSIBILITY AND SIZE AND FLEXIBILITY LIMITED IMPACT RATE AMPLE FREE PARKING OF RETAIL SPACES OF E-COMMERCE (OMNICANALITY) 23 ASCENC
Slide 24: Growth of the portfolio
Growth of the porfolio €750 million Fair value at 800 31 March 2023 700 600 500 400 300 200 100 0 09/07 09/08 09/09 09/10 09/11 09/12 09/13 09/14 09/15 09/16 09/17 09/18 09/19 09/20 09/21 09/22 03/23 IPO 02/07 Belgium France Spain 24 ASCENCIO
Slide 25: Active in Belgium, France & Spain
a c t i v e i n B e l g i u m , F r a n c e & S p a i n * 4% Spain 42 % France GEOGRAPHICAL SPREAD (BASED ON FAIR VALUE) 54 % Belgium 25 ASCENCIO *As of 31/03/2023
Slide 26: Status SIR (Belgium)
s t a t u s SIR (Belgium) ― Risk diversification (20%) ― Limitation of debt (65%) ― Obligation of distribution (80%) ― Tax transparency ― Control by the FSMA ― Free float (min 30%) 26 ASCENCIO
Slide 27: Status SIIC (France)
s t a t u s SIIC (France) ― No limitation of debt ― Tax transparency ― Obligation of distribution: • 95% of net rental income • 70% of capital gains • 100% dividend from subsidiaries ― 5% withholding tax on profits according to BE-FR directive 27 ASCENCIO
Slide 28: Status SOCIMI (Spain)
s t a t u s SOCIMI (Spain) ― Identification of shareholder’s structure (>95%) ― At least 80% of eligible assets ― At least 80% of rental income ― No diversification limitation ― Holding period of at least 3 years ― No minimum obligation of distribution but special tax on undistributed profits ― No w
Slide 29: Diversification of tenants & retail sectors
d i v e r s i f i c a t i on o f t enan t s & r e t a i l s e c t o r s * Others Casino 17,10% 9,9% Mestdagh (Intermarché Shoes from 2023) 3,10% 9,7% Food Sport & 40,50% Others Leasure 49,3% Grand frais 5,70% COMPLEMENTARY SECTORS TENANTS 8,7% (IN TERMS OF RENTS) (IN TERMS OF RENTS) Household Brico
Slide 30: Evolution of occupancy rate
Evolution of occupancy rate 100% 99% 98% 97.2% 97% at 31.03.2023 96% 95% 94% 93% 92% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 30 ASCENCIO
Slide 31: Shareholding structure
s h a r e h o l d i n g s t r u c t u r e Listed on Euronext Brussels since AG Insurance SA 5,22% Carl, Eric and 2007 John Mestdagh and Fidagh SA 10,38% Free float 84,40% 31 ASCENCIO
Slide 32: Ascencio's ESG strategy
Social ― Training E SG ― Internal satisfaction survey ― Positive office ― Telework policy ― Mobility ― Social & philanthropic policy ASCENCIO’S Environment ― Labelling ESG STRATEGY ― Decision-making criteria ― Database & management platform ― Optimising energy performance Governance ― Governance str
Slide 33: Contacts
c o n t a c t s Vincent H. Querton Cédric Biquet Aurore Anbergen Chief Executive Officer Chief Financial Officer Head of IR, Marketing & Communication : +32 71 91 95 00 : cedric.biquet@ascencio.be : aurore.anbergen@ascencio.be : +32 71 91 95 00 : +32 71 91 95 23 : +32 486 80 69 09 33 ASCENCIO
Slide 34: Ascencio SCA
Ascencio SCA Av e n u e J e a n M e r m o z , 1 / 4 6041 Gosselies - info@ascencio.be +32 (0) 71 91 95 00 www.ascencio.be ASCENCIO