Slide 1: Q3 2024 results
Q3 2024 results Brussels, 29 October 2024 -1-
Slide 2: Table of content
Table of content 3 Highlights Q3 2024 7 Strategy 15 Achievements 17 Portfolio analysis 28 Financials 42 Shares & shareholders 48 Outlook 51 Conclusion -2-
Slide 3: Highlights Q3 2024
Highlights Q3 2024 Seniorenhaus Lessingstrasse Wurzen – Germany -3-
Slide 4: Highlights Q3 2024
Highlights Q3 2024 €178.3 million 8 €236 million 41.5% +7% YoY countries (of which ~€93m to be debt-to-assets ratio EPRA earnings invested) committed investment programme €251.0 million 630 construction & renovation €634 million +7% YoY, 3.3% LfL healthcare sites Headroom on committed rental income
Slide 5: Investment activity
Investment activity New investments & pipeline completions1 €73 million €14 million €87 million in new investments announced in Q3 2024 (see map) 5 projects (~ €61.5 million) completed during Q3 2024 1 See Q3 2024 press release for more details. -5-
Slide 6: Portfolio outlook
Portfolio outlook Total portfolio outlook: over €6 billion €m 6,500 5,976 +236 6,164 -48 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - Marketable investment properties Assets classified Committed investment programme Portfolio outlook (30/09/2024) 1 as held for sale (30/09/
Slide 7: Strategy
Strategy Verpleegcentrum Scheemda Scheemda – Netherlands -7-
Slide 8: Aedifica at a glance
Aedifica at a glance Pure-play Market reference Belgian REIT Long-term stable healthcare in European listed (RREC/SIR/GVV) cash flows healthcare real estate >€6.1 billion Growth potential ~ €2.8 billion Inflation-linked real estate portfolio driven by demographic market cap contracts evolution €236
Slide 9: Exploring European markets
Exploring European markets Track record of entering new markets & creating a platform for future growth 2005 2013 2016 2019 2020 2021 # sites 78 100 70 117 213 28 22 2 Pipeline €11m €37m - €37m €84m - €43m €24m Portfolio €1,216m €1,181m €666m €1,238m €1,089m €95m €399m €2m Data as per 30 September 2
Slide 10: Demographic evolution
Demographic evolution Ageing in Belgium Ageing in Germany 25% 25% 20% 20% 15% 70 + 15% 70 + 75 + 75 + 10% 80 + 10% 80 + 85 + 85 + 5% 5% 0% 0% 2023 2030 2040 2050 2060 2023 2030 2040 2050 2060 Source: Eurostat, 2023 Source: Eurostat, 2023 Ageing in the Netherlands Ageing in the United Kingdom 25% 25%
Slide 11: Demographic evolution
Demographic evolution Ageing in Finland Ageing in Sweden 30% 30% 25% 25% 20% 20% 70 + 70 + 15% 75 + 15% 75 + 80 + 80 + 10% 10% 85 + 85 + 5% 5% 0% 0% 2023 2030 2040 2050 2060 2023 2030 2040 2050 2060 Source: Eurostat, 2023 Source: Eurostat, 2023 Ageing in Ireland Ageing in Spain 30% 30% 25% 25% 20% 2
Slide 12: Sustainability
Sustainability 2023 Environmental Data report highlights Great Place To Work • 5% nEUI reduction (167 kWh/m² in ‘22 & 158 kWh/m² Employee survey conducted in 2023 in ‘23) 89% of staff would recommend Aedifica • 86% data coverage of energy consumption (from 83% as a great place to work in ‘22) • 90%
Slide 13: Sustainability
Sustainability Strategy • Commitment to the Paris Agreement to achieve net zero GHG emissions for our entire portfolio by 2050: focus on lifecycle assessment of our properties • Green lease annex added to lease contracts to facilitate cooperation with operators in reducing the portfolio’s carbon foo
Slide 14: Sustainability
Sustainability CRREM Research project 158 kWh/m² 130 kWh/m² Aedifica actual 20232 nEUI target for 2030 1 ‘Carbon Risk Real Estate Monitor’ framework yoy Translates long-term policies (COP21 Paris Agreement) into science-based targets that are global warming scenarios, country and building type speci
Slide 15: Achievements
Achievements Loughshinny Nursing Home -15- Dublin – Ireland
Slide 16: Investment properties evolution & focus on Europe
Achievements Investment properties1 evolution & focus on Europe EVOLUTION SINCE 2006 GEOGRAPHICAL BREAKDOWN (FAIR VALUE)2 €m CAGR: 21% 6,500 6,164 (as of 30 September 2024) 5,849 6,121 100% 1 2 0 0 0 6,000 5 2 2 1 1 1 2 2 5,704 12 9 13 5 7 7 7 7 5,500 12 15 14 12 4,896 12 12 12 11 11 5,000 14 80% 17
Slide 17: Portfolio analysis
Portfolio analysis Pflegecampus Plauen (Plauen - Germany -17-
Slide 18: Healthcare real estate portfolio: segment breakdown
Healthcare real estate portfolio Healthcare segment breakdown FOCUS ON CARE FACILITIES FOR ELDERLY PEOPLE 8% 6% Elderly care homes 15% Senior housing Mixed-use elderly care buildings Childcare centres 3% 68% Other care segments Marketable investment properties incl. assets classified as held for sal
Slide 19: Healthcare real estate portfolio: geographical breakdown
Healthcare real estate portfolio Geographical breakdown DIVERSIFICATION ACROSS EUROPEAN COUNTRIES >0% 2% 7% 21% Belgium 18% Germany Netherlands United Kingdom Finland 20% Sweden Ireland 21% Spain 11% Marketable investment properties incl. assets classified as held for sale (€5,886 m), excl. rights o
Slide 20: Healthcare real estate tenants
Healthcare real estate tenants Tenant diversification1 10% 6% 630 sites with approx. 5% 300 tenants (or >150 ‘groups’) representing 4% European, national and 54% 4% local profit and not-for- 4% profit operators 4% No ‘operator group’ 3% Municipalities / wellbeing counties (FI) leases more than 10% o
Slide 21: Healthcare real estate tenants
Healthcare real estate tenants Tenant diversification1 4% 6% Profit Predominantly private Non-profit operators Growing public and Public non-profit segments among tenants 90% 1 Based on the contractual rents. -21-
Slide 22: Lease maturity & occupancy rate
Lease maturity & occupancy rate UNEXPIRED LEASE TERM WAULT BY COUNTRY 1% (Years) 11% 25 < 5 years Avg 23 19 years 20 21 22 15% 5 to 10 years 20 15 10 to 15 years 16 73% ≥ 15 years 10 12 12 5 19 years Weighted average unexpired 100 % 0 Occupancy rate Belgium Germany Netherlands United Kingdom Finland
Slide 23: Age of buildings
Age of buildings >60% OF THE PORTFOLIO IS LESS THAN 15 YEARS OLD 3% 25% 0-5 years 6-10 years 37% 11-15 years >15 years Project 21% Age profile based on a weighted average of the gross square footage of our properties using completion date of a construction or renovation phase done 14% on site. -23-
Slide 24: Resilience in portfolio valuation
Resilience in portfolio valuation GROSS YIELDS ON FAIR VALUE LIKE-FOR-LIKE PORTFOLIO VALUATION Conservative valuation yields Resilient portfolio valuation despite changed (%) market conditions 7 Change Change Avg 5.9 in FV in FV Country 6 6.2 6.4 6.4 (%) LFL - LFL - Q3 6.0 0.5 9 months 5.7 5.6 +0.12
Slide 25: Portfolio growth: development projects
Portfolio growth Development projects Jyväskylä Lahjaharjuntie – Jyväskylä (FI) Expected completion: Q3 2025 Nynäshamn Källberga – Nynäshamn (SE) Completed: Q3 2024 Spaldrick House – Port Erin (Isle of Man) York Bluebeck Drive – York (UK) Completed: Q3 2024 Completed: Q3 2024 -25-
Slide 26: Committed development projects
Committed development projects Pipeline €236 million of which €93 million to be invested GEOGRAPHICAL SPLIT EXPECTED DELIVERY DATE €11m €24m 5% €36m 10% 15% 100% pre-let 2024 €84m €37m 15% 36% €112m €13 million 48% 2025 expected rental income €88m €37m 37% >2026 16% €43m 5.7% 18% initial yield on co
Slide 27: Committed development projects
Committed development projects ROLL-FORWARD PHASE OUT WITH COMPLETIONS (€ million) (€ million) 450 413 400 300 350 236 300 236 200 250 35 7 -50 200 -197 ~124 -22 150 100 -62 100 50 0 0 Pipeline Deliveries Withdrawals New Others Pipeline Pipeline Q4: OCT Q4: NOV-DEC Pipeline 1 31/12/2023 projects 30
Slide 28: Financials
Financials Clondalkin Nursing Home Dublin - Ireland -28-
Slide 29: Income Statement: EPRA Earnings
Income Statement EPRA Earnings EPRA EARNINGS YOY INCREASE OF 7% Consolidated incom e statem ent - analytical form at 30/09/2024 30/09/2023 (x €1,000) +8% Rental income 251,045 233,537 Operating result before result on Rental-related charges 7 -993 portfolio mainly following Net rental income 251,052
Slide 30: Income Statement: Net result
Income Statement Net result EARNINGS PER SHARE Consolidated incom e statem ent - analytical form at 30/09/2024 30/09/2023 (x €1,000) EPRA Earnings* 178,326 167,338 Changes in fair value of financial assets and liabilities -17,494 -303 Changes in fair value of investment properties -179 -101,879 Posi
Slide 31: Rental income
Rental income (€ m) 270 251.0 +3.6 +0.4 +1.2 250 +10.9 +8.4 233.5 -1.2 230 -5.8 210 7% 190 increase YoY 170 150 Rental Indexation Rent Disposals Deliveries Acquisitions Profit rent FX impact Rental income renegotiation income Q3 2023 Q3 2024 -31-
Slide 32: Rental income
Rental income (€ m) 270 +4.2 251.0 250 +5.0 +0.7 +6.5 -0.1 233.5 +2.5 +1.3 230 -2.5 210 190 7% 170 increase YoY 150 Rental Belgium Germany Netherlands United Finland Sweden Ireland Spain Rental income Kingdom income Q3 2023 Q3 2024 +3.0% rent indexation Change: -4.6% +2.8% +8.9% +10.9% +12.3% +23.1%
Slide 33: EPRA Earnings
EPRA Earnings (€ m) 190 +17.5 180 -0.6 -0.6 +0.0 178.3 -5.0 -0.3 170 167.3 160 150 140 8% 130 increase YoY 120 1 Non-recurring FBI tax 110 refund YTD of €4.2 million vs. one-off tax refund of 100 €9.0 million during the EPRA Rental Operating Financial Tax 1 EPRA Non- EPRA first 9 months of 2023). Ea
Slide 34: Debt-to-assets ratio
Debt-to-assets ratio 56% 56% 50% 50% 43% 45% 42% 43% 44% 46% Financial policy: 41% 40% 40% 41% 37% debt-to-assets ratio ~40% with a maximum of 45% Bank covenants stand at a maximum of 60%. March June March June Oct Dec March June Mar June Dec June Sept Dec Sept 2019 2019 2020 2020 2020 2020 2021 202
Slide 35: Debt-to-assets ratio
Debt-to-assets ratio €67m €100m €153m €219m €418m €207m €459m €286m €254m €380m rights issue rights issue rights issue rights issue rights issue ABB rights issue ABB ABB rights issue Oct 2010 Dec 2012 June 2015 Mar 2017 May 2019 Apr 2020 Oct 2020 Jun 2021 Jun 2022 July 2023 60% 7,000 50% 6,000 5,000
Slide 36: Strong track record in accessing equity capital markets
Strong track record in accessing equity capital markets 800 700 207 600 500 47 1 400 26 300 418 459 286 255 380 200 7 219 3 100 100 11 153 8 17 16 5 16 47 55 - Rights issue Contribution in kind Optional dividend Accelerated bookbuilding -36-
Slide 37: Credit facilities
Credit facilities Diversified sources of funding Investment credits €2,506 million 13% 3% Investment credits total financial debt Term loans Term loans 55% 3% Revolving loans bank facilities Debt financing YTD: Revolving loans • €110 million early refinancing of 37% USPP GBP which €85 million Sustai
Slide 38: Credit rating & KPI's
Credit rating & KPI’s Solid investment grade rating BBB with 6.4x 8.7x stable outlook ICR2 Net debt/EBITDA3 Credit rating S&P Global1 Unsecured 1.9% 42% Average cost of debt sustainable financing out of financing except drawn credit lines − Hoivatilat: certain incl. commitment fees particularities a
Slide 39: Credit facilities
Credit facilities Well spread debt maturity profile (in € million) 900 800 240 700 55 600 127 €634 million1 500 131 headroom on committed credit 400 lines on September 30 to finance 359 130 596 199 capex & liquidity needs 300 524 200 260 3.8 years 100 171 229 40 28 weighted average debt maturity - -
Slide 40: Credit facilities
Credit facilities Interest rate hedging1 100% 11% 11% 12% 13% 90% 4% 4% 24% 80% 70% 53% 52% 89% 60% 52% 49% 44% of debt hedged by derivatives 50% or fixed rate debt 40% as of 30 September 2024 30% 20% 4.4 years 34% 35% 35% 35% 32% Weighted average hedge 10% maturity 0% 1 Projected debt. 30/09/2024 3
Slide 41: Net asset value
Net asset value Discount on 29 October 2024 20% vs NAV at FV excl. IAS 39 21% vs NAV at FV incl. IAS 39 19% vs EPRA NTA Net asset value per share (in €) 30/09/2024 31/12/2023 Net asset value, excl. changes in fair value of hedging 74.90 70.35 instruments* Effect of the changes in fair value of hedgi
Slide 42: Shares & shareholders
Shares & shareholders De Volder Staete Almere - Netherlands -42-
Slide 43: Shareholding
Shareholding1 INTERNATIONAL & DIVERSIFIED SHAREHOLDERS BASE1 3% Belgium 11% US 2% Netherlands 3% Luxembourg 36% 3% UK One shareholder 3% France holding more than 5% of 5% Ireland the company’s capital 2 Germany 6% Norway ~1/4 retail shareholders Sweden ~3/4 institutional 6% Other shareholders 15% 9%
Slide 44: Withholding tax legislation
Withholding tax legislation Withholding tax: What’s included? 1 − General rule: 30% - Elderly care homes, senior − Reduced to 15% for healthcare REITs investing more than housing, mixed-use elderly 80% of its portfolio in residential healthcare real estate care buildings, disabled care in the Europe
Slide 45: Withholding tax
Withholding tax Continuously changing legal framework The withholding tax rate for Belgian listed companies has changed several times since Aedifica was established. 2006 2013 2016 2017 2022 standard rate 25% 25% 27% 30% 30% exception for REITs 15% - - - - exception for REITs 0% 15% - 15% 15% invest
Slide 46: Aedifica's Executive Committee
Aedifica’s Executive Committee Sven Bogaerts Chief Mergers & Charles-Antoine van Aelst Acquisitions Officer Chief Investment Officer Raoul Thomassen Stefaan Gielens Ingrid Daerden Chief Operating Officer Chief Executive Officer Chief Financial Officer -46-
Slide 47: Organisation & team
Organisation & team 1 6 3 INTERNATIONAL TEAM 10 HQ (Belgium) Local teams in 7 countries Belgium managing the portfolio 11 Finland 58 and the group’s growth UK Germany Netherlands International staff of Sweden 127 people of which 32 Ireland 43 women and 84 men 6 Number of employees per country Exclud
Slide 48: Outlook
Outlook Oulu Vaarapiha Oulu - Finland -48-
Slide 49: Outlook 2024
Outlook 2024 €337 million rental income €300 million Assuming FBI-tax regime (+ 7.3% vs. 2023) pipeline deliveries in 2024 in the Dutch subsidiaries in 2024 and refund of approx. €4.2 million for 2022 >€233 million ~ €100 million EPRA Earnings asset rotation (+ 6.1% vs. 2023) UK REIT regime effectiv
Slide 50: Outlook medium-term
Outlook medium-term Drivers for future growth while maintaining a solid debt-to-asset ratio • Strong fundamental tailwinds € / share remain intact 7.0 6.5 • Demography 6.0 5.5 • Market consolidation 2 3 • 5.02 >4.90 5.0 4.35 4.76 Public financing 4.5 4.23 3 4.0 3.74 3.70 3.80 3.90 • Enhancing long-t
Slide 51: Conclusion
Conclusion Priesty Fields Care Home Congleton – United Kingdom -51-
Slide 52: Investment highlights
Investment highlights Attractiveness for shareholders PURE-PLAY FAIR VALUE HISTORY HEALTHCARE REIT IN EUROPE OF PORTFOLIO SHOWING RESILIENCE 19 YEARS WEIGHTED AVERAGE LEASE STRONG UNDERLYING TERM DEMOGRAPHIC TRENDS SOLID TRACK RECORD IN INVESTMENT, EQUITY AND DEBT-FINANCING LONG-TERM GROWTH STRONG D
Slide 53: Thank you
Thank you INVESTOR RELATIONS ir@aedifica.eu Rue Belliard/Belliardstraat 40 bte 11 1040 Brussels, Belgium -53-
Slide 54: Stefaan Gielens - CEO, Ingrid Daerden - CFO
Stefaan Gielens - Chief Executive Officer Ingrid Daerden - Chief Financial Officer -54-
Slide 55: Aedifica SA/NV
Aedifica SA/NV Public REIT under Belgian Law Regulated Real Estate Company (RREC) Société immobilière réglementée (SIR) Gereglementeerde vastgoedvennootschap (GVV) Rue Belliard 40 / Belliardstraat 40 (box 11) 1040 Brussels Tel: +32 (0)2 626 07 70 - Fax: +32 (0)2 626 07 71 info@aedifica.eu - www.aedi
Slide 56: Forward-looking statement
Forward-looking statement This Presentation includes forward-looking statements that reflect the Company's intentions, beliefs or current expectations concerning, among other things, the Company’s results, condition, performance, prospects, growth, strategies and the industry in which the Company op
Slide 57: Appendix
Appendix LTS Winschoten Winschoten - Netherlands -57-
Slide 58: Belgian healthcare portfolio
Belgian healthcare portfolio PORTFOLIO OF 78 ASSETS €1,216 m ~8,000 5.7% 20 years portfolio residents yield on WAULT fair value fair value 2 16 ~€1,227 m Inflation- projects tenant portfolio outlook linked to be groups as of triple net long completed 29 October 2024 leases <1% exposure to the Brusse
Slide 59: Belgian healthcare portfolio
Belgian healthcare portfolio Marketable investment properties Projects in the investment programme -59-
Slide 60: Belgian healthcare portfolio
Belgian healthcare portfolio Klein Veldekens, Le Jardin Intérieur, Geel – 132 units Frasnes-lez-Anvaing – 101 units Hof Van Schoten, Schoten – 101 units Sorgvliet, Linter – 110 units -60-
Slide 61: German healthcare portfolio
German healthcare portfolio PORTFOLIO OF 100 ASSETS €1,181 m ~10,200 5.5% 21 years portfolio residents yield on WAULT fair value fair value 3 26 ~€1,199 m Inflation- projects tenant portfolio outlook linked to be groups as of double net long completed 29 October 2024 leases with various indexation l
Slide 62: German healthcare portfolio
German healthcare portfolio Marketable investment properties Projects in the investment programme -62-
Slide 63: German healthcare portfolio
German healthcare portfolio Seniorenquartier Weyhe, Seniorenquartier Gera, Gera - Weyhe - 109 units 123 units Fredenbeck, Fredenbeck – Seniorenhaus Lessingstrasse, 94 units Wurzen - 73 units -63-
Slide 64: Dutch healthcare portfolio
Dutch healthcare portfolio PORTFOLIO OF 70 ASSETS €666 m ~3,200 6.2% 16 years portfolio residents yield on WAULT fair value fair value 22 ~€666 m Inflation- tenant portfolio outlook linked groups as of mostly triple net 29 October 2024 long leases -64-
Slide 65: Dutch healthcare portfolio
Dutch healthcare portfolio Marketable investment properties Projects in the investment programme -65-
Slide 66: Dutch healthcare portfolio
Dutch healthcare portfolio Villa Florian, Blaricum - 29 units Nieuw Heerenhage, Heerenveen - 126 units Martha Flora Hilversum, Hilversum – 31 units LLT Almere Buiten, Almere - 38 units -66-
Slide 67: UK & Channel Islands healthcare portfolio
UK & Channel Islands healthcare portfolio PORTFOLIO OF 117 ASSETS €1,238 m ~7,600 6.4% 22 years portfolio residents yield on WAULT fair value fair value 2 19 ~€1,250 m Inflation- projects tenant portfolio outlook linked to be groups as of triple net long completed 29 October 2024 leases with general
Slide 68: UK & Channel Islands healthcare portfolio
UK & Channel Islands healthcare portfolio Marketable investment properties Projects in the investment programme -68-
Slide 69: UK & Channel Islands healthcare portfolio
UK & Channel Islands healthcare portfolio York Bluebeck Drive, York St Mary’s Riverside, – 66 units Hessle - 67 units Copperfield Court, Broadstairs - 66 units Dawlish, Dawlish - 71 units -69-
Slide 70: Finnish healthcare portfolio
Finnish healthcare portfolio PORTFOLIO OF 213 ASSETS €1,089 m ~15,500 6.0% 12 years portfolio residents & yield on WAULT fair value children fair value 7 58 ~€1,244 m Inflation- projects tenant portfolio outlook linked to be groups as of double net long completed 29 October 2024 leases >6.5% 20% Exp
Slide 71: Finnish healthcare portfolio
Finnish healthcare portfolio Marketable investment properties Projects in the investment programme -71-
Slide 72: Finnish healthcare portfolio
Finnish healthcare portfolio Helsinki Ensikodintie, Tampere Teräskatu, Helsinki – 32 units Tampere - 240 units Espoo Kuurinkallio, Espoo – 75 children and 26 units Liminka Saunarannantie, Liminka - 99 units -72-
Slide 73: Swedish healthcare portfolio
Swedish healthcare portfolio PORTFOLIO OF 28 ASSETS €95 m ~1,300 6.4% 12 years portfolio residents & yield on WAULT fair value children fair value 15 ~€95 m Inflation- ‘Build & hold’ tenant portfolio outlook linked Model giving access groups as of double net long to development 29 October 2024 lease
Slide 74: Swedish healthcare portfolio
Swedish healthcare portfolio Marketable investment properties Projects in the investment programme -74-
Slide 75: Swedish healthcare portfolio
Swedish healthcare portfolio Bälinge Lövsta 9:19, Almungeberg 1:21, Uppsala - 12 units Uppsala - 6 units Förskola Kallinge, Ronneby - 120 units Östhamra 1 52, Norrtälje - 125 units -75-
Slide 76: Irish healthcare portfolio
Irish healthcare portfolio PORTFOLIO OF 22 ASSETS €399 m ~2,300 5.6% 23 years portfolio residents yield on WAULT fair value fair value 2 6 ~€441 m Inflation- projects tenant portfolio outlook linked to be groups as of triple net long completed 29 October 2024 leases -76-
Slide 77: Irish healthcare portfolio
Irish healthcare portfolio Marketable investment properties Projects in the investment programme -77-
Slide 78: Irish healthcare portfolio
Irish healthcare portfolio Dublin Stepaside, Beaumont Lodge, Stepaside - 119 units Dublin - 221 units Clondalkin Nursing Home, Dublin - 150 units Northwood Nursing Home, Dublin - 121 units -78-
Slide 79: Spanish healthcare portfolio
Spanish healthcare portfolio PIPELINE OF 2 PROJECTS & 1 PLOT OF LAND €2 m 2 1 portfolio projects plot of land fair value to be completed 1 ~€26 m Inflation- tenant portfolio outlook linked group as of triple net long 29 October 2024 leases -79-
Slide 80: Notes
fl Notes aedifica | housing with care -80-