Vitura SA · EURONEXT:VTR
Vitura SA — Cegereal — FY2018 Earnings Presentation
28 slides from Vitura SA's earnings presentation, Feb 22, 2019
Slide 1: 2018 Full-Year Results
PLACES FOR SMART BUSINESS 2018 2018 FULL-YEAR RESULTS February 22, 2019
Slide 2: Contents
CONTENTS 01 - HIGHLIGHTS Page 3 02 - MARKET REVIEW Page 9 03 - PORTFOLIO Page 12 04 - FINANCE Page 18 05 - APPENDICES Page 23
Slide 3: Highlights
01 HIGHLIGHTS
Slide 4: 2018 Key Events and Figures
2018 KEY EVENTS AND FIGURES Acquisition of the Passy Kennedy office building Leases signed on 16,000 sq.m of space in 2018 Leases renewed for almost 40% of portfolio in 2 years(1) 96.1% 5.3 years €1,409m occupancy rate(2) weighted average portfolio value residual lease term 5.3% +3.3% €2.3 stabilize
Slide 5: Solid Share Performance in 2018
SOLID SHARE PERFORMANCE IN 2018 35.6 32.0 CEGEREAL’S SHARE PRICE HAS OUTPERFORMED THE EPRA EUROPE INDEX FOR THE LAST THREE YEARS Annual results – February 22, 2019 5
Slide 6: Stable Ownership Structure
STABLE OWNERSHIP STRUCTURE Nortwood GIC Investors AXA Free float Cegereal is owned by leading international investors, who ensure the Company’s financial robustness, and a panel of private and institutional shareholders. Annual results – February 22, 2019 6
Slide 7: Strong Command of Debt
STRONG COMMAND OF DEBT COST OF DEBT MATURITY OF DEBT 4 10 3 2.4% 6.4 years 8 5.4 years 1.4% 4.5 years 2 1.3% 5 1 3 0 0 2016 2017 2018 2016 2017 2018 LOAN TO VALUE INTEREST COVERAGE RATIO 100 10 75 53.4% 54.7% 8 52.1% 5.1x 4.7x 4.8x 50 5 25 3 0 0 2016 2017 2018 2016 2017 2018 Annual results – Februar
Slide 8: Recognized Social and Environmental Commitment
RECOGNIZED SOCIAL AND ENVIRONMENTAL COMMITMENT Cegereal won two Gold Awards at the annual EPRA conference for the quality of the financial and environmental information in its 2017 Annual Report. Gold Awards The EPRA (European Public Real Estate Association) aims to promote, develop and represent li
Slide 9: Market Review
02 MARKET REVIEW
Slide 10: Real Estate Investment Market in France
REAL ESTATE INVESTMENT MARKET IN FRANCE 2018, another record year for investment volumes €32.8bn 40% 70% 85% €4.8bn invested in France foreign investors of investments in office of investments invested in Paris (5th consecutive (vs. 26% in 2017) buildings in France in office buildings CBD (€2bn in 2
Slide 11: Rental Market for Office Buildings in Greater Paris
RENTAL MARKET FOR OFFICE BUILDINGS IN GREATER PARIS A VERY DYNAMIC RENTAL MARKET TAKE-UP BY SURFACE AREA IN GREATER PARIS AREA (IN SQ.M) ▪ Take-up of 2.5 million sq.m ▪ Transactions for surface areas of between 1,000 sq.m and 5,000 sq.m up by 16% ▪ Eight transactions >5,000 sq.m in La Défense includ
Slide 12: Portfolio
PORTFOLIO DT TY
Slide 13: First Acquisition in Central Paris: Passy Kennedy
FIRST ACQUISITION IN CENTRAL PARIS: PASSY KENNEDY Acquisition in December 2018 ▪ Iconic 1980s building Space: 23,800 sq.m ▪ Ideally located on the banks of the Seine, in Paris’ wider CBD Current rents: €430/sq.m. ▪ Next to the RER C rail station and close to metro and bus lines Annual rental income:
Slide 14: Brisk Rental Activity
BRISK RENTAL ACTIVITY The European Banking Authority is moving its KPMG, a leading audit and advisory firm, extended its headquarters to the Europlaza tower in April 2019 existing lease in the Europlaza tower and will occupy and will occupy 5,300 sq.m almost 7,400 sq.m for a period of 9 years. for a
Slide 15: Cegereal's Real Estate Portfolio
CEGEREAL’S REAL ESTATE PORTFOLIO Total surface area: 189,400 sq.m Occupancy rate: 96.1%(1) Market value: €1,409m Number of tenants: 37 Tenants with a D&B rating of 1 and 2: 90% WALT(2): 5.3 years Asset Hanami Arcs de Seine Europlaza Passy Kennedy Rives de Bercy Surface area 34,400 sq.m 47,200 sq.m 5
Slide 16: Major Asset Management Work
MAJOR ASSET MANAGEMENT WORK CHANGE IN PORTFOLIO OCCUPANCY RATE 3.9% portfolio vacancy rate 2018 2017 (1) 96.1% Anticipation of tenants’ expectations 2016 91.4% 87% 2015 Significant investments 82% (1) Including leases signed in 2018 and taking effect in 2019 (European Banking Authority and KPMG) Ann
Slide 17: Rental Income Up 3.3%
RENTAL INCOME UP 3.3% 65 New leases and renegotiations +5.2 Departures 60 (4.6) Passy Kennedy acquisition €m +0.7 Other 55 Indexation (0.1) +0.5 50 53,0 51,3 45 2017 rental income 2018 rental income The Passy Kennedy acquisition and the leases signed in 2018 will have a significant impact on 2019 re
Slide 18: Finance
04 FINANCE
Slide 19: Key Figures
KEY FIGURES in millions of euros 2018 2017 Δ 18/17 Portfolio value 1,409 1,169 +20.5%(1) Occupancy rate 96.1%(2) 91.4% +4.7 pts LTV 54.7% 53.4% +1.4 pts Rental income 53.0 51.3 +3.3% Recurring income(3) 30.7 30.6 +0.3% EPRA earnings 30.7 32.7 (6.3%) Recurring cash flow(4) 35.2 35.8 (2.0%) EPRA NNNAV
Slide 20: Changes in EPRA NNNAV
CHANGES IN EPRA NNNAV (€M) +€54.3m NNNAV at 2018 recurring Change Change Change in 2018 Capital NNNAV at Dec. 31, 2017 income (IFRS) in fair value of in fair value of lease distribution increase Dec. 31, 2018 real estate bank debt incentives assets EPRA NNNAV: €41.0 per share Value creation: +9% in
Slide 21: Continued Rise in Distribution
CONTINUED RISE IN DISTRIBUTION €1,9 €2,0 €2,1 €2,2 €2,3 2015 2016 2017 2018 Recurring distribution Special distribution 2018 distribution: €2.3 per share(1) Up 4.5% compared with 2017 Total shareholder return of 6.5%(2) (1) Approved by the Board of Directors and submitted for approval at the Annual
Slide 22: Outlook
OUTLOOK Portfolio expansion Investments in real estate assets Active asset management Increasingly pro-active and marketing of vacant social and environmental space approach Annual results – February 22, 2019 22
Slide 23: Appendices
05 APPENDICES
Slide 24: EPRA Earnings
EPRA EARNINGS 2018 2018 2017 Δ 18/17 Δ 18/17 LFL (2) LFL (2) In thousands of euros Rental income 53,026 52,310 51,259 Rebilled expenses and indemnities 14,619 14,448 14,640 Termination indemnities received 391 391 1,526 Building-related costs (17,853) (17,683) (17,818) Net rental income 50,183 49,46
Slide 25: Recurring Cash Flow
RECURRING CASH FLOW 2018 Δ 18/17 2018 2017 Δ 18/17 LFL(1) LFL(1) In thousands of euros EPRA earnings 30,674 30,193 32,689 -6.2% -7.6% Restatement of 3% corporate income tax - - (1,752) contribution on dividends IFRS adjustments (rent-free periods, etc.) 2,256 2,294 2,946 Restatement of deferred fina
Slide 26: Investor Calendar
INVESTOR CALENDAR Annual Shareholders’ Meeting April 30, 2019 First-quarter 2019 revenue April 30, 2019 Payment of the 2018 dividend May 7, 2019 First-half 2019 results July 25, 2019 Third-quarter 2019 revenue November 15, 2019 Annual results – February 22, 2019 26
Slide 27: Share Details
SHARE DETAILS Name Cegereal SA Listing market Euronext Paris Investor Relations 42, rue de Bassano ISIN FR0010309096 75008 Paris Symbol CGR Tel.: +33 (0)1 42 25 76 36 CFI ESVUFB Email: info@cegereal.com Type REIT Section Eurolist compartment B Registrar BNPP Securities Services CAC All Shares Grands
Slide 28: Disclaimer
DISCLAIMER This document was prepared by Cegereal solely for use for the presentation of February 22, 2019. This document is not to be reproduced nor distributed, in whole or in part, by any person other than the Company. The Company takes no responsibility for the use of these materials by any pers