Slide 1: 2012 Results
2012 Results February 15, 2013 Rives de Bercy – Charenton-le-Pont
Slide 2: Overview
Overview Real Estate Market: Page 3 Our Portfolio: Page 8 Financials: Page 21 Appendices: Page 31
Slide 3: 2012, New Momentum
2012, New Momentum Highlights Key figures • Occupancy rate • Arcs de Seine advanced marketing Leases signed on 22,200 sq.m. with prestigious +18% 65% 83% tenants : Canal+, Huawei Technologies and Hewlett Packard. Déc-11 Déc-12 • EPRA NNNAV (€ per share) 34,2 +4% 35,7 Déc-11 Déc-12 • Rental income (I
Slide 4: Market Review
2012 Market Review La Défense (with Europlaza tower in the center)
Slide 5: Paris – Ile-de-France Market: Resilient Performance in Crisis-Hit European Market
Paris – Ile-de-France Market: Resilient Performance in Crisis-Hit European Market Vacancy rates in the main European cities (end-2012) 20% 1.6% 15% 1.3% 1.3% 10% 0.7% 0.7% 0.7% 5% 0% Madrid Milan Frankfurt Munich Paris - IDF Greater London Take-up rates in the main European cities (2012, million sq.
Slide 6: Broadly Stable Take-up Rate in 2012
Broadly Stable Take-up Rate in 2012 Paris – IDF office take-up rate (million sq.m. by segment) 2.5 2.4 0.6 0.5 0.5 0.6 0.5 0.5 0.4 0.4 0.4 0.3 < 500 m² 500 - 2000 m² 2000 - 5000 m² 5000 -20000 m² > 20000 m² Total Source: IPD Immostat, BNP Paribas Real Estate 2011 2012 In 2012, the take-up rate dip
Slide 7: Paris – Ile-de-France Office Market – Absorption and Market Rents
Paris – Ile-de-France Office Market – Absorption and Market Rents Paris – IDF absorption (thousand sq.m.) 1 000 985 1 000 800 650 600 495 515 535 410 400 285 240 200 10 The limited number of new 0 -200 office buildings coming onto -400 the market should ensure 2003 2004 2005 2006 2007 2008 2009 20
Slide 8: Paris – Ile-de-France Office Market – Investment Market
Paris – Ile-de-France Office Market – Investment Market Commercial real estate investment flows in France 35 3.1 30 2.6 25 €bn 20 18.1 1.7 16.6 1.5 15 13.6 0.8 1.3 0.7 1.0 1.1 10 8.5 0.6 0.5 0.3 0.4 5 0.4 0.2 0.3 0.4 0.2 0.2 0.2 0.2 0.2 0 0.1 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1
Slide 9: Our Portfolio
Our Portfolio Arcs de Seine - Boulogne
Slide 10: Cegereal: Well Positioned in the Paris – Ile-de-France Market
Cegereal: Well Positioned in the Paris – Ile-de-France Market A portfolio focused exclusively on the inner Paris suburbs EUROPLAZA Recent buildings (still covered at purchase by the developer’s 10- 50,000 sq.m. in La Défense year warranty) that are large (valued at over €50 million) and offer ma
Slide 11: Our Customers' priorities
Our Customers’ priorities … quality of life for employees The three Cegereal properties offer a unique package of key amenities that large tenants look for: Which amenities do you consider to be essential or less important? Parking 94% 6% Air-conditioning 92% 8% Security 90% 10%
Slide 12: 2012 Rental Income up 12%, Underpinned by the First Positive Effects of the Lettings
2012 Rental Income up 12%, Underpinned by the First Positive Effects of the Lettings in Arcs de Seine Cegereal – Growth in rental income, 2011-2012 40 38 (1.0) 0.3 3.4 36 1.3 €M 34 38.6 32 34.6 30 2011 Rental Indexation Arrivals Departures Other 2012 Rental income adjustment income 2012 Results – Fe
Slide 13: Arcs de Seine: A New HQE-Certified Business Campus on the Outskirts of Paris
Arcs de Seine: A New HQE-Certified Business Campus on the Outskirts of Paris Entirely renovated in 2011, Arcs de Seine offers an environment that combines comfortable working conditions with high environmental performance. Several first-class companies have already chosen to lease space in the com
Slide 14: Arcs de Seine: Remarkable Rental Activity in 2012
Arcs de Seine: Remarkable Rental Activity in 2012 Arcs de Seine – Occupancy rate Successful marketing of Arcs de Seine 70% 7% 22,200 sq.m. let in 2012 to 60% 50% 12% first-class tenants (Canal+, HP 40% 9% & Huawei) 30% 24% 63% Lease signing process 20% underway on over 5,000 sq.m. 10% 0% 12% tha
Slide 15: Europlaza: a Well-Established Tower in the Center of Europe's Leading Business District
Europlaza: a Well-Established Tower in the Center of Europe’s Leading Business District Europlaza – Growth in rental income, 2011-2012 25 1.3 (1.0) 0.3 0.8 20 €M 21.4 22.7 15 10 2011 Rental Indexation Arrivals Departures Other 2012 Rental income adjustment income Europlaza’s strong image underpins a
Slide 16: Rives de Bercy: a Majestic Campus in the Center of an Expanding Business District
Rives de Bercy: a Majestic Campus in the Center of an Expanding Business District Rives de Bercy – growth in rental income, 2011-2012 12 €M 11 0.4 11.2 10.8 10 2011 Rental income Indexation adjustment 2012 Rental income A satisfied tenant, lease extended in January 2013 7-year extension, taking th
Slide 17: Active Rental Strategy Deployed in 2012, Leading to Longer Remaining Lease Terms
Active Rental Strategy Deployed in 2012, Leading to Longer Remaining Lease Terms December 2011 December 2012 CeGeREAL 5.8 years CeGeREAL 7,8 years Rives de Bercy Rives de Bercy 6.1 years (new lease Jan- 9,0 years 13) Arcs de Seine 7.0 years Arcs de Seine 7,9 years Europlaza 5.4 years Europlaza 5,4 y
Slide 18: Occupancy Rates Set to Continue Rising in 2013, Returning to Historical Levels
Occupancy Rates Set to Continue Rising in 2013, Returning to Historical Levels As a % of total area 100% 83% Occupancy rate at dec-12 80% 60% 40% 20% 0% Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Lease expiry date Earliest break option Cegereal – Occupancy rates since the
Slide 19: First-class Tenants
First-class Tenants Source: Dun & Bradstreet ratings 2012 Results – February 15, 2013 18
Slide 20: Appraisal Values and Unrealized Capital Gains
Appraisal Values and Unrealized Capital Gains Unrealized capital +€167m gains Higher appraisal values +1.3% € millions Net book value 1 100 1,032 1 000 961 938 900 854 188 828 861 854 865 187 163 800 168 168 168 169 156 700 385 600 363 350 340 309 300 310 500 311 400 300 412 459 425 200 361 384 386
Slide 21: Go Green Project to Obtain HQE Environmental Certification of the Entire Portfolio by 2014
Go Green Project to Obtain HQE Environmental Certification of the Entire Portfolio by 2014 Timeline: 2012: HQE Exploitation certification obtained for Arcs de Seine Preliminary audits of Europlaza and Rives de Bercy, with promising results 2013: Detailed audits Execution of upgrade work 2014: Assess
Slide 22: 2012 Financials
2012 Financials Arcs de Seine – Boulogne-Billancourt
Slide 23: Financial Highlights – IFRS
Financial Highlights – IFRS 2009 2010 2011 2012 Portfolio value €828m €861m €854m €865m Loan-to-Value ratio 48.6% 46.4% 46.7% 46.2% EPRA NNNAV per share €31.6 €34.7 €34.2 €35.7 Rental income €57.0m €54.7m €34.6m €38.6m Cash flows from operations €41.5m €34.8m €8.4m €4.0m Net profit/(loss
Slide 24: Cash Flow From Operations
Cash Flow From Operations In thousands euros 2009 2010 2011 2012 IFRS rents 57 039 54 687 34 555 38 633 Recovered real estate expenses 10 135 10 236 7 315 8 773 Real estate expenses -10 638 -12 110 -10 428 -12 312 Net rents 56 536 52 813 31 442 35 094 Asset management fees -2 896 -3 014 -2 990 -3
Slide 25: Property Operating Expenses
Property Operating Expenses In thousands euros 2009 2010 2011 2012 Maintenance of buildings 158 1 587 326 431 Vacancy costs 833 973 3 065 2 187 Asset management fees 2 896 3 014 2 990 3 029 Letting fees 498 281 185 2 064 Personnel expenses 314 477 541 512 Other overhead expenses 2 446 2 042 1 442 2
Slide 26: Cash Flow From Operations
Cash Flow From Operations 2011 2012 Total Cash Flow from operations (€k) 8 378 4 017 12 395 Total number of shares 13 372 500 13 372 500 13 372 500 Cash Flow from operations per share (€) 0.6 0.3 0.9 Dividend history (in €/share) 3,1 2,7 2,8 2,6 2,4 1,8 2,0 2,0 1,7 1,1 0,65 0,6 0,65 0,3 - 2 006 2
Slide 27: 2012 Dividend
2012 Dividend In light of: The successful marketing of Arcs de Seine, which is now 2/3rds let The renewal of CFF’s lease on Rives de Bercy for 9 years The financing secured for the period to 2017 on very good terms CeGeREAL plans to gradually restore the dividend to a normal level by 2014
Slide 28: EPRA NNNAV up 4.4%
EPRA NNNAV up 4.4% +0.4 - 0.2 €35.7 +0.8 0 Other Dividend +0.4 Change in €34.2 fair value Change in of debt Recurring portfolio profit appraisal value NNNAV NNNAV Dec. 31, 2011 Dec. 31, 2012 (€/share) (€/share) 2012 Results – February 15, 2013 27
Slide 29: Full Refinancing of €400 Million Bank Debt Falling Due in March 2013
Full Refinancing of €400 Million Bank Debt Falling Due in March 2013 €400m in financing obtained from a pool of four banks Sharply lower interest rate of 3.15% (3.40% if occupancy rate below 90%) Hard covenants maintained: LTV at 70% and interest cover at 1.5x Previous financing New financing
Slide 30: Share Performance in 2012
Share Performance in 2012 CGR share performance vs. EPRA and IEIF indices 20 18 en € 16 14 12 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 CGR EPRA Europe Index IEIF French SIIC Index Source: Euronext 2012 Results – February 15, 2013 29
Slide 31: 2013 Guidance
2013 Guidance Around 30% growth in recurring earnings per share, led by: Ongoing marketing of Arcs de Seine, Leading to a reduction in borrowing costs from 3.4% to 3.15%, once the portfolio occupancy rate rises above 90% Gradual restoration of the dividend to a normal level by 2014. The Boar
Slide 32: Appendices
Appendices Arcs de Seine – Boulogne-Billancourt
Slide 33: Investor Calendar
Investor Calendar Annual Q1 2013 Dividend H1 2013 Q3 2013 Shareholders’ revenue payment date results revenue Meeting May 16, 2013 July 18, 2013 July 25, 2013 Nov. 14, 2013 June 26, 2013 2012 Results – February 15, 2013 32
Slide 34: Share details
Share details Name Cegereal SA Investor Relations 21-25, rue de Balzac NYSE Euronext Paris 75008 Paris ISIN FR0010309096 Tél. : +33 (0)1 42 25 76 36 Email : info@cegereal.com Symbol CGR CFI ESVUFB Registrar Type REIT BNPP Securities Services Grands Moulins de Pantin Section Eurolist compartment B 9
Slide 35: IFRS Income Statement (consolidated)
IFRS Income Statement (consolidated) in thousands of euros, except per share data 2012 2011 Rental income 38 633 34 555 Income from other services 8 773 7 315 Building‐related costs (16 382) (13 418) Net rental income 31 024 28 452 Sale of buildings Administrative costs (2 845) (3 993) Other operati
Slide 36: IFRS Balance Sheet (consolidated)
IFRS Balance Sheet (consolidated) in thousands of euros 31‐Dec‐12 31‐Dec‐11 31‐Dec‐12 31‐Dec‐11 Shareholders' equity Non‐current assets Share capital 160 470 160 470 Investment property 865 400 854 200 Legal reserve and additional paid‐in capital 40 157 49 333 Non‐current loans and receivables 14 40
Slide 37: IFRS Statement of Cash Flows (consolidated)
in thousands of euros IFRS Statement of 2012 2011 OPERATING ACTIVITIES Cash Flows Consolidated net income 16 860 238 f f (consolidated) buildings: j property (9 385) 7 548 replacement of components f cash impact: Adjustments for loans at amortized cost 823 592 Cash flows from operations before tax a
Slide 38: French GAAP Income Statement
French GAAP Income Statement in euros in euros 2012 2011 2012 2011 France Exports Total Total Non‐recurring income on management transactions Non‐recurring income on capital transactions 50 594 Sales of goods for resale Reversal of provisions for impairment, other provisions and expense transfers Sa
Slide 39: French GAAP Balance Sheet
French GAAP Balance Sheet in euros in euros Depr., amort. EQUITY AND LIABILITIES déc. 31, 2012 déc. 31, 2011 Gross amount 31‐Dec‐12 31‐Dec‐11 ASSETS & prov. Capital Uncalled subscribed capital Share capital (including paid‐up capital: 160,470,000) 160 470 000 160 470 000 Intangible fixed assets Addi
Slide 40: French GAAP Statement of Cash Flows
French GAAP Statement of Cash Flows in thousands of euros 2012 2012 2011 2012 2011 CHANGE IN OPERATING WORKING CAPITAL Uses Sources SOURCES Change in operating receivables Funds from/(used in) operations (1 619) 3 655 Trade accounts receivable 6 247 Available cash flow (1 619) 3 655 Other receivable