Aedifica Sa · EURONEXT:AED
Aedifica Sa — Investor Day (October 2023)
25 slides from Aedifica Sa's investor day presentation, Oct 4, 2023
Slide 1: Company strategy update
Company strategy update Helsinki, 4 October 2023 -2-
Slide 2: Table of content
Table of content 3 Strategy 4 Demography 8 Consolidation 9 Public financing 12 Sector prospects 13 What about growth? 14 Financials 22 Conclusion -3-
Slide 3: Strategy
Strategy Koy Lohjan Sahapiha Lohja – Finland -4-
Slide 4: Equity story backed by long-term tailwinds
Strategy Equity story backed by long-term tailwinds Market Demography Public financing consolidation • Baby boom generation: impact as of ‘2025’ • Demographic pressure already starting to show • Waiting lists • Capacity needs -5-
Slide 5: Demography (NL)
Demography (NL) setifis | Hoe staat het met de wachtlijsten voor verpleeghuizen? Jjanl2a2s » 11.409° —>: mensen wachten uit voorzorg soe 21.209° —» 191.303' mensen hebben een Wiz-indicatie voor verpleeghuiszorg, oftewel: 2ij hebben blijvend intensieve zorg mensen op de wachtlijst. nodig. Dat is 1% v
Slide 6: Demography (UK)
Demography (UK) ~440K ADDITIONAL BEDS NEEDED BY 2032 TO REDUCE 1.1 MILLION ADDITIONAL PEOPLE AGED 80+ BY 2032 CARE HOME BED RATIO TO 5.1 -7-
Slide 7: Demography (BE)
Demography (BE) Source: https://www.vrt.be/vrtnws/nl/2023/08/19/bezettingsgraad- woonzorgcentra-stijgen-wachtlijsten/ -8-
Slide 8: Equity story backed by long-term tailwinds
Strategy Equity story backed by long-term tailwinds Market Demography Public financing consolidation • Baby boom generation: • No longer major French impact as of ‘2025’ operator groups? • Demographic pressure • But mid-sized already starting to show operators stepping in • Waiting lists • UK • Capa
Slide 9: Equity story backed by long-term tailwinds
Strategy Equity story backed by long-term tailwinds Market Demography Public financing consolidation • Baby boom generation: • No longer major French • Still strong commitment impact as of ‘2025’ operator groups? from Governments • Demographic pressure • But mid-sized • But focus on future already s
Slide 10: Public financing (NL)
Public financing (NL) Intramural Extramural Care State funded State funded + personal contribution up to + personal contribution up to €2,650/month €967/month Housing State funded Personal costs, (approx. €1,050/month) Range € 1,000 - € 2,000/month Services State funded Personal costs Range € 1,000
Slide 11: Public financing (NL)
Public financing (NL) Projected P&L - standard NL profit (mid segment market) and not-for-profit Private % per person Not-for-profit % per person operators Number of units 52 1 150 1 Average Housing Price /u/year 24.600 24.600 Average care income (ZZP 5+) /u/year 74.832 74.832 115.064 115.064 Occ. R
Slide 12: Sector prospects (short-term)
Sector prospects (short-term) MAIN INDICATORS HEADWINDS FOR IMPROVEMENT POSITIVE SIGNS • UK + IE: strong operator • Pressure on operator • Resident occupancy performance margins • BE: positive trend • Revenue/resident • Time gap between cost increases • FI: positive trend (Attendo) increases and rev
Slide 13: What about growth?
What about growth? • Cost of capital to stabilise • Valuation of real estate to stabilise • Nevertheless opportunities growing • Development (Finland) • Asset deal • M&A /structured deals ➔ Timing -14-
Slide 14: Financials
Financials Koy Oulun Siilotie Oulu - Finland -15-
Slide 15: Strong balance sheet
Strong balance sheet 39.3% DEBT-TO-ASSETS RATIO DEVELOPMENT PIPELINE POST CAPITAL INCREASE JULY FINANCING WITH RETAINED 2023 EARNINGS & ASSETS DISPOSALS CONTRIBUTION FINANCIAL POLICY: DEBT-TO-ASSETS RATIO ~40% WITH A MAXIMUM OF 45% DEBT-TO-ASSETS RATIO 5.8% GROSS YIELD PORTFOLIO EXPECTED TO REMAIN I
Slide 16: 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 17: DTA expected to remain below 45%
DTA expected to remain below 45% Portfolio valuation sensitivity 46% 45% 44% 44% 44% 44% 43% 43% 42% 42% 41% 41% 41% 42% 40% 41% 41% 40% 39% 40% 39% 39% 38% Estimate no portfolio devaluation Scenario 1 - 0.5% FV/Q Scenario 2 - 1% FV/Q Scenario 3 - 1.5% FV/Q (~€180m) (~€350m) (~€520m) -18-
Slide 18: Credit rating & KPI's
Credit rating & KPI’s1 Solid investment grade rating BBB with ~5.8x ~8.7x stable outlook (>5x by year-end) (<9x by year-end) Credit rating S&P Global ICR2 Net debt/EBITDA3 Unsecured ~2.1% 42% financing except by year-end sustainable financing − Hoivatilat: certain Average cost of debt share of drawn
Slide 19: Credit facilities
Credit facilities1 Diversified sources of funding Investment credits Total financial debt: 8% 4% Investment credits €2,284 million 4% 13% 5% Term loans Term loans 57% bank Debt financing YTD: 4% facilities Revolving loans €445 million 33% Revolving loans • €340 million early 22% 38% USPP USPP GBP GB
Slide 20: Credit facilities €929 million
Credit facilities Well spread debt maturity profile (in € million) 700 600 40 €929 million1 87 headroom on committed 500 365 163 69 credit lines on September 30 400 to finance capex & liquidity 105 365 300 181 needs 524 200 332 15 265 265 100 162 166 221 Financing needs are covered 16 50 till summer
Slide 21: Credit facilities: Interest rate hedging
Credit facilities Interest rate hedging1 3% 4% 5% 4% 12% 13% 13% 48% 46% 54% 51% 97% of debt hedged by derivatives or fixed rate debt as of 30 September 2023 37% 37% 37% 36% 5.1 years Weighted average hedge 30/09/2023 31/12/2023 31/12/2024 31/12/2025 maturity Fixed rate debt Swaps Caps Unhedged Floa
Slide 22: Conclusion
Conclusion Matinkartanontie Lubbeek – Finland -23-
Slide 23: Conclusion
Conclusion Focus on Balance sheet Investment Asset management management opportunities Long-term cash flows Committed pipeline slowing down Pressure in the investment (growing with indexation) market is building Further asset rotation Timing: stabilisation of Quality of rent coverage Retained earnin
Slide 24: Stefaan Gielens - Chief Executive Officer; Ingrid Daerden - Chief Financial Officer
Stefaan Gielens - Chief Executive Officer Ingrid Daerden - Chief Financial Officer -25-
Slide 25: 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