Slide 1: Presenting Banimmo
Presenting Banimmo June 2012
Slide 2: Agenda
AGENDA Business model Focus on sustainable developments Portfolio description and valuation Financial management Forecasts and goals for 2012 June, 2012 2
Slide 3: Banimmo is neither a REIT nor a pure developer
BANIMMO IN NEITHER A REIT NEITHER A PURE DEVELOPER Property company generating both capital gains and a diversified base of recurrent income Neither plain real estate investment company (REIT), neither pure developer Specialized in the repositioning of under-managed assets and the development
Slide 4: Diversified portfolio in different stages
DIVERSIFIED PORTFOLIO IN DIFFERENT STAGES Diversified real estate portfolio Geographically: 35% o Belgium Belgium o France France o Luxemburg 65% Type of segment: o Offices o Retail o Conference centers 14% Offices At different phases of the repositioning process : 5% Retail (incl. City Mall
Slide 5: Low holding duration generating high capital gains and IRRs
LOW HOLDING DURATION Like a developer, Banimmo has a low holding duration and succeeds in generating high capital gains and IRR’s on the assets it repositions Name building Type of Size Disposal date Number of IRR Capital gain Repositioned building years of (margin)/m²* detention Lozana Offices 7,
Slide 6: Financial targets
FINANCIAL TARGETS Finanical targets Target IRR (post tax-post leverage) on individual investments >15% Lozana Saran I Antwerp Expo Clamart Kruger Park Sirius Brouckère (Mobistar) Tower 16% 9% 13% 37% 34% 45% 29% Overall financial leverage <65% Key ratios 31/12/2007 31/12/2008 31/12/2009 31/12/
Slide 7: Business model: property repositioning – case study
BUSINESS MODEL: PROPERTY REPOSITIONNING – CASE STUDY Case : Property repositioning Electrolux Before renovation Location Brussels Decentralized Specifications Previous surface: 6,350 m² Current surface extended to 8,242 m² Tenant Electrolux (100%) Fixed 9 years leasing contract (possible e
Slide 8: Business model: built-to-suits – case study
BUSINESS MODEL: BUILT-TO-SUITS – CASE STUDY Case study: Built-to suit for Mobistar Before renovation Location Evere (next to NATO) Specifications Area of 43.600m² 3 buildings with a total surface of 24.200 m² Acquisition Date: 2000 Amount: €14.1 mio During first years, buildings were ren
Slide 9: Agenda
AGENDA Business model Focus on sustainable developments Portfolio description and valuation Financial management Forecasts and goals for 2012 June, 2012 9
Slide 10: Clear focus on sustainable development
CLEAR FOCUS ON SUSTAINABLE DEVELOPMENT The development of sustainable buildings is a long term strategy for Banimmo 2009 Delivery of the new headquarters of Mobistar (built-to-suit): This building meets the highest standards of energy efficiency, achieving an exceptional E-level of E79 2010 Complete
Slide 11: Why? Impact of new regulation on building efficiency
WHY? IMPACT OF NEW REGULATION ON BUILDING EFFICIENCY Current and future maximum E-levels for NEW office buildings in Belgium Future 2010 07/2011 09/2011 2012 2014 Brussels E90 E75 Flanders E80 E70 E60 Wallonia E100 E80 A.In the investment market Outdated buildings that are not compliant with new e
Slide 12: Why? Two tier investment market is emerging
WHY? TWO TIER INVESTMENT MARKET IS EMERGING Possible evolution of rental premium/discount (Source: Joël Gorselé, Petercam - Sven De Bondt, Bopro) Time Non-sustainable assets Sustainable assets June, 2012 12
Slide 13: Why? Growing concern of corporate image compatible with sustainable economy
WHY? GROWING CONCERN OF CORPORATE IMAGE COMPATIBLE WITH SUSTAINABLE ECONOMY B. In the tenant market Stricter regulations on the energy efficiency of buildings (introduction of performance certificates) drives up the demand for sustainable buildings for corporate and public sector occupiers Addit
Slide 14: Banimmo's office portfolio's obsolescence level
BANIMMO’S OFFICE PORTFOLIO’S OBSOLESCENCE LEVEL Name building * Age E-level (Jones Lang LaSalle classification) Athena Business Center Old E302*** Alma Court Modern (10 years) E135** Arts 27 New (refurbished in 2009) E79 Diamond Modern (10-15 years) From E139 to E195 ** Raket (Electrolux) New E60 Si
Slide 15: Agenda
AGENDA Business model Focus on sustainable developments Portfolio description and valuation Financial management Forecasts and goals for 2012 June, 2012 15
Slide 16: Composition of Banimmo's portfolio
COMPOSITION OF BANIMMO’S PORTFOLIO IAS 2- Stocks Assets/property acquired exclusively with a view to subsequent disposal in near future or for development and resale IAS 2 buildings Assets are not revalued by independent expert at market value but remain at historical acquisition cost. Impairmen
Slide 17: Composition of Banimmo's portfolio (continued)
COMPOSITION OF BANIMMO’S PORTFOLIO (CONTINUED) By investment type 5% 1% 7% 39% 40% 39% 14% 12% 21% 21% Equity Stakes Montea Jardin des Quais IAS 40 The Loop City Mall IAS 2 Dolce conference centers investments Stocks June, 2012 17
Slide 18: IAS 2 assets - stocks
IAS 2 ASSETS - STOCKS List of buildings Occupancy Prins B. 5 6,492 m² Belgium Antwerp Offices North Plaza 13,630 m² Belgium Brussels Offices 100% 95% 98% 90% Da Vinci H3 12,449 m² Belgium Brussels Offices/whs 80% 78% 70% Da Vinci H5 3,785 m² Belgium Brussels Offices 57% 60% Electrolux 8,242 m² Belgi
Slide 19: IAS 40 assets
IAS 40 ASSETS List of buildings Occupancy Diamond 12,771 m² Belgium Brussels Offices ABC 18,180 m² Belgium Brussels Offices/whs 100% 100% 100% 90% Alma Court 16,042 m² Belgium Brussels Offices 80% 79% (1) Colombes 14,215 m² France Corvettes (Paris) Offices 70% 73% 60% Saran II 600 m² France Orléans
Slide 20: Equity stake investments: Montea and Jardins des Quais
EQUITY STAKE INVESTMENTS: MONTEA AND JARDINS DES QUAIS This category includes as of today 6 investments 1. Equity participation in Belgian logistic oriented REIT Montea Equity value : €20.8 Mio Dividend: € 1.53 Mio No shareholder’s agreement quasi cash 2. Jardins des Quais (Bordeaux – France
Slide 21: Equity stake investments: Conference centers
EQUITY STAKE INVESTMENTS: CONFERENCE CENTERS 3. Conference Centers (Dolce Hotels) Equity stake: 49% with 2 family offices Two assets: Dolce La Hulpe (Brussels) : 35,977 sqm ; reconstruction 2007; green label Dolce Chantilly (Paris): 17,000 sqm; renovation 2008 - 15 years Management contract with
Slide 22: Equity stake investments: City Mall
EQUITY STAKE INVESTMENTS: CITY MALL 4. Three large retail projects in City Mall Verviers Covered shopping mall of 29,700 m² GLA with 1,150 parking spaces Catchment area: 350,000 consumers & 53,000 habitants Building permit suspended by Council of State Withdrawn by Minister of Territory .T
Slide 23: Equity stake investments: City Mall (continued)
EQUITY STAKE INVESTMENTS: CITY MALL (CONTINUED) Financial Framework Equity stake: 42.5% Economical stake: 38.25% Co-control with Huon partner. Previously Foruminvest Belgium managing director. Team dedicated thru specific entity CMM (City Mall Management). Entity aside. Total investment of €
Slide 24: Equity stake investments: The Loop
EQUITY STAKE INVESTMENTS: THE LOOP 5. The Loop Banimmo has a participation of 25% in Grondbank The Loop, owner of the land Veld 12 : Mixed project Flanders Development of a mixed project on Veld 12 Expo anchored by a retail complex (Design Outlet Factory) Constructible area of +/- 100,000 m² m
Slide 25: Equity stake investments: Built-to-suit Charleroi
EQUITY STAKE INVESTMENTS: BUILT-TO-SUIT CHARLEROI 6. Built to suit in Charleroi Built to suit in Charleroi for +/- 8,000 sqm – 75 parkings Railway and Land belonged to a third party who teamed up with Banimmo bus station Leased 15 years firm with financial institution ERV: 156€/sqm Sustain
Slide 26: Sum of the parts
SUM OF THE PARTS Value Book-value (historical acquisition IAS 2 buildings €151.5 mio cost (not revalued at Fair market value by independent expert) IAS 40 buildings Book-value (Fair market value by €84.2 mio independent expert) 14.8% Equity Stakes Montea €20.8 mio Stock Market value 50% 50% of Fair
Slide 27: Sum of the parts (continued)
SUM OF THE PARTS (CONTINUED) Value €371.4 - 381.2 Total Value mio Net financial debt €211.0 mio Banimmo’s equity €160.4-170.2 mio value Total number of 11.356.544 shares Low : €14.1 Equity value High: €14.9 per share Average: €14.5 This computed Net Intrinsic Value is only a partial Intrinsic Value
Slide 28: Banimmo's stock price stands well below NIV
BANIMMO’S STOCK PRICE STANDS WELL BELOW NIV Stock price evolution Banimmo vs Bel 20 (rebased) and EPRA EURO (rebased) (€) 18 17 14.5€: Average Partial Intrinsic 16 Net Value 15 14 11.74 €: shareholders funds 13 dd. 31/12/2011 12 10 €: Stock price dd 31/12/2011 8€: Stock price dd 07/06/2012 11 10 9 8
Slide 29: Agenda
AGENDA Business model Focus on sustainable developments Portfolio description and valuation Financial management Forecasts and goals for 2012 June, 2012 29
Slide 30: Financial management
FINANCIAL MANAGEMENT Key ratios 31/12/2010 30/06/2011 31/12/2011 Net debt (€ mio) 242.5 216.0 211.0 Net debt/shareholders equity 1.77 1.56 1.58 Fin debt/Total assets 60.0% 56.7% 57.5% We wanted and obtained a well diversified and hedged funding structure Financing base before hedging Financing base
Slide 31: New club deal avoids refinancing risk before 2015
NEW CLUB DEAL AVOIDS REFINANCING RISK BEFORE 2015 Maturity profile of financial debt before Maturity profile of financial debt after refinancing syndicated loan refinancing syndicated loan 140 180 160 120 140 117,5 100 14 120 153 80 100 2 14 60 80 2 60 40 33 75 40 75 20 20 1 1 1 2 2 2 2 1 2 2 2 2 0
Slide 32: Agenda
AGENDA Business model Focus on sustainable developments Portfolio description and valuation Financial management Forecasts and goals for 2012 June, 2012 32
Slide 33: Forecasts and goals for 2012
FORECASTS AND GOALS FOR 2012 Accelerate disposals of assets acquired before 2007 (before asset value deflation) to position Banimmo on new acquisition opportunities at present (lower) market prices Total sale objective of up to €80 mio Montea Sale of shares realized in H1 2011 has allowed Ba
Slide 34: Turning obsolescence into sustainable excellence
Turning obsolescence into sustainable excellence www.banimmo.be