Slide 1: Investor Presentation January 2020
ORIGINE (Paris La Défense - Nanterre, Hauts-de-Seine) INVESTOR PRESENTATION January 2020
Slide 2: Icade at a glance: one of the leading French listed REITs
ICADE AT A GLANCE ICADE AT A GLANCE: ONE OF THE LEADING FRENCH LISTED REITS €11.7bn property portfolio OFFICE INVESTMENT: (as of 06/30/2019, excluding duties, group share) Icade, the leading real estate player in Greater Paris Portfolio as of 06/30/2019: 9.3bn (100%) Office €2.3 bn development p
Slide 3: Attractive fundamentals for the Icade share
ICADE AT A GLANCE ATTRACTIVE FUNDAMENTALS FOR THE ICADE SHARE Dividend history (in €) Market capitalisation: Average daily Dividend yield: 4,60 €6.0bn (1) trading volume (2): 4,30 C.6% (1) 4,00 Free float: 37% ~ €11m 3,73 3,73 2014 2015 2016 2017 2018 NAV TSR (in %) Strong financial structure: 12,7%
Slide 4: Shareholders, Board of Directors & management aligned
ICADE AT A GLANCE SHAREHOLDERS, BOARD OF DIRECTORS & MANAGEMENT ALIGNED Strategic Plan approved unanimously by the Board of Directors Strengthened governance since April 2019 Icade’s two leading shareholders are aligned A committed Board of Directors, geared toward growth, supporting management in i
Slide 5: 2019–2022 plan: a clear and ambitious plan
ICADE AT A GLANCE 2019–2022 PLAN: A CLEAR AND AMBITIOUS PLAN 1. 2. 3. Leader in the office 4. market in the Greater European leader Key player in Best-in-class CSR Paris area and major in healthcare property and innovation cities outside Paris real estate development Sales of mature assets Diver
Slide 6: 2019: implementation well underway
ICADE AT A GLANCE 2019: IMPLEMENTATION WELL UNDERWAY 2019 1st year of the plan 2020 2021 2022 Office Acceleration and Sales of investments diversification within Improved mature assets the healthcare segment ESG ratings €380m Icade Santé’s inaugural ~€1.1bn €735m Ranked as a bond issue 70% in the pi
Slide 7: Icade vs. peers share price evolution Jan. 2016 – Dec. 2019
ICADE AT A GLANCE ICADE VS. PEERS SHARE PRICE EVOLUTION JAN. 2016 DEC. 2019 200 Evolution ICADE-EPRA Europe et pairs en dividendes réinvestis du 31/12/2015 au 31/12/2019 190 (Base 100 cours d'Icade au 31/12/2015) 96,43% Icade +96.4% 180 170 71,51% EPRA 160 +26.7% 50,05% Europe 150 46,74% 140 130 2
Slide 8: Icade vs. peers share price evolution Jan. 2019 – Dec. 2019
ICADE AT A GLANCE ICADE VS. PEERS SHARE PRICE EVOLUTION JAN. 2019 DEC. 2019 Icade +54.8% EPRA +29.4% Europe Covivio +26.2% Gecina +47.3% (Basis 100 / share price of Icade as at Jan 12/31/18 – incl. reinvested dividend) I 8 Sources : Bloomberg, Rothschild
Slide 9: Solid financial results reflecting strong activity
ICADE AT A GLANCE SOLID FINANCIAL RESULTS REFLECTING STRONG ACTIVITY Positive H1 2019 results (EPRA NAV: +2.7%; NCCF: +4.5%) Good momentum confirmed in Q3 with notably a solid leasing activity: • Office Rental income up 1.7% on a like-for-like basis • Healthcare: Rental income soars by 10.5% on a re
Slide 10: Office property investment
PARK VIEW PROJECT – TÊTE D’OR AREA (Lyon, Rhône) OFFICE PROPERTY INVESTMENT
Slide 11: Offices: a resilient market
OFFICE INVESTMENT OFFICES: A RESILIENT MARKET Paris region rental Stabilised Strong absorption market normalising vacancy rate in of new supply the Paris Region in the Paris region 1.1 million sq.m in H1 2019 (-19% vs. H1 2018 and +1% vs. 10-year average) 5.3% at the end only 15% of vacant space is
Slide 12: Icade's office portfolio at the heart of the Greater Paris area
OFFICE INVESTMENT ICADE’S OFFICE PORTFOLIO AT THE HEART OF THE GREATER PARIS AREA Paris region portfolio 1,568,207 Portfolio outside the Paris region 197,164 sq.m sq.m (2) (2) (1) €7,408m TGV 17 €754m (1) PORTES DE PARIS 334,240 sq.m SAINT-DENIS 62,330 sq.m BORDEAUX LYON Go Spring – Nanterre Origine
Slide 13: Office investment: key figures
OFFICE INVESTMENT OFFICE INVESTMENT: KEY FIGURES Like-for-like changes in rental income 12/31/2018 06/30/2019 (in %) PORTFOLIO VALUE (100% basis, excluding duties) €8.9bn €9.3bn 4.9% Offices PORTFOLIO VALUE (Group share, excluding duties) €8.7bn €9.1bn 3.9% WEIGHTED AVERAGE UNEXPIRED 3.1% 4.7 years
Slide 14: Dynamic asset rotation in the office investment portfolio since 2015
OFFICE INVESTMENT DYNAMIC ASSET ROTATION IN THE OFFICE INVESTMENT PORTFOLIO SINCE 2015 €2.9bn in cumulative disposals since 2015, Disposals completed on average 12.3% fully reinvested in the portfolio above appraised value 4,0 9,5 Net cumulative investments and portfolio valuation Difference between
Slide 15: Portfolio repositioned, value creation delivered
OFFICE INVESTMENT PORTFOLIO REPOSITIONED, VALUE CREATION DELIVERED December 2015 June 2019 (1) Other large Other large French cities French cities 1% 9% Paris region Paris 13% excl. Paris Paris region Paris 22% 20% excl. Paris Continuous improvement 12% in asset quality and portfolio positioning L
Slide 16: Development: a key contributor to value creation
OFFICE INVESTMENT DEVELOPMENT: A KEY CONTRIBUTOR TO VALUE CREATION (60 %) 16 projects completed (5) since 2015 (~260,000 sq.m) Investment amount on completion €1.2bn Value creation: €0.5bn (37% of the invested amount) Fair value on completion (1) (2) €1.7bn YoC (3) 6.5% Attractive YoC: 6.5% Yields (
Slide 17: 2019 completions: ~€180m in additional value creation
OFFICE INVESTMENT 2019 COMPLETIONS: ~€180M (1) IN ADDITIONAL VALUE CREATION Spring A Le Castel 3 completions expected in Q4 Completed Nanterre Completed Marseille Completed • Eko Active (Marseille) in Q1 2019 in Q1 2019 in Q4 2019 • Financial occupancy • Financial occupancy • Monaco rate: 100% rate:
Slide 18: A growing 2019-2024 development pipeline
OFFICE INVESTMENT A GROWING 2019-2024 DEVELOPMENT PIPELINE Projects started Projects not committed Total pipeline Number of projects 13 6 19 Investment amount (1) €1.4bn €0.9bn €2.3bn Floor area 244,000 sq.m 145,000 sq.m 389,000 sq.m Expected rental income €89m €56m €144m (annualised) Yield on Cost
Slide 19: Generating strong cash flows: €144m of future rental income
OFFICE INVESTMENT … GENERATING STRONG CASH FLOWS: €144M OF FUTURE RENTAL INCOME Expected additional rental income (headline, annualised, in €m) Pre-let space for 2019-2020: 70% €84m €37m €18m €25m €7m €7m €44m in additional rental income €5m expected in 2019–2020 2019 2020 2021 >2021 Total pre-let s
Slide 20: Recap: asset rotation and development pipeline
OFFICE INVESTMENT RECAP OUR STRATEGY: ASSET ROTATION AND DEVELOPMENT PIPELINE DELIVERING AN ATTRACTIVE TSR A €2.3bn development pipeline, €1.6bn including €1.4m for started projects Yield-on-Cost for started projects stands at 6.4% of disposals in 2018–2019 (+11.2% above appraised value) Pre-let spa
Slide 21: Healthcare investment
SANTÉ ATLANTIQUE (Saint-Herblain, Nantes) ELSAN HEALTHCARE INVESTMENT
Slide 22: Market conditions very favourable in France and abroad
HEALTHCARE INVESTMENT MARKET CONDITIONS CONTINUE TO BE VERY FAVOURABLE BOTH IN FRANCE AND ABROAD Fundamentals remain The healthcare real estate market attractive remains active in France 2019 expected investment volume: Sustained growth in healthcare expenditure €750m (€730m in 2018) driven by medic
Slide 23: An outstanding portfolio currently worth over €5bn
HEALTHCARE INVESTMENT AN OUTSTANDING PORTFOLIO CURRENTLY WORTH OVER €5bn The Healthcare Investment Division currently owns 128 healthcare facilities in France Rapid portfolio growth Well-respected, high-quality facilities 80 acute care facilities +13 facilities (+11% in 2019) Le Point’s ranking of t
Slide 24: Strategy implementation: ahead of schedule on our roadmap
HEALTHCARE INVESTMENT STRATEGY IMPLEMENTATION: AHEAD OF SCHEDULE ON OUR ROADMAP Consolidation of Icade Santé’s Very robust market-leading position in acute care leasing activity Acquisition of the Confluent private hospital for €194m Gross rental income: +10.5% in Q3 2019 Continued implementation In
Slide 25: Strengthening relationships with operators and ongoing diversification
HEALTHCARE INVESTMENT FURTHER STRENGTHENING OF RELATIONSHIPS WITH OPERATORS AND ONGOING DIVERSIFICATION Atlantique polyclinic, Saint Herblain - Elsan Reflet de Loire nursing home, Côte Normande PAC facility, Ifs (Caen) - Korian La Chapelle Saint-Mesmin (Orléans) - Korian Confluent private hospital,
Slide 26: Long-term partnerships create value
HEALTHCARE INVESTMENT LONG-TERM PARTNERSHIPS CREATE VALUE A development pipeline of nearly €270m, representing close to €15m in additional rental income until 2022 Start of construction on the Start of construction on the Completion of the Planned construction of a new Mornay post-acute care future
Slide 27: International expansion: well on the way to our 2022 target
HEALTHCARE INVESTMENT INTERNATIONAL EXPANSION: WELL ON THE WAY TO OUR 2022 TARGET Off-plan acquisition Acquisition of Acquisition of 5 nursing Acquisition of of 7 nursing homes 1 nursing home in Jesolo homes in October 2019 19 long-term care in October 2018 in February 2019 facilities in November 20
Slide 28: Very favourable financing conditions
HEALTHCARE INVESTMENT VERY FAVOURABLE FINANCING CONDITIONS Icade Santé issues its first bond “Investment Grade” rating Benchmark size Long-term Pricing Fixed rate: BBB+, 0.94% stable outlook €500m 10 years Annual coupon: Standard & Poor’s 0.875% Very well received by the market Attractiveness of Ica
Slide 29: Recap: a 2019-2022 strategic plan reaffirmed
HEALTHCARE INVESTMENT RECAP A 2019-2022 STRATEGIC PLAN REAFFIRMED The Healthcare Investment Division is on track to meet its goals Objective: to become the leading healthcare REIT in Europe Leadership position in France further strengthened: close to €430m invested in 2019, i.e. 40% of its 2022 inve
Slide 30: Development
QUAI 8.2, BUILDING E (Bordeaux, Gironde) DEVELOPMENT
Slide 31: Underlying megatrends...
PROPERTY DEVELOPMENT UNDERLYING MEGATRENDS... Increasing importance of metropolitan Demographic growth, areas Climate migration flows and change ageing population Digitalisation Growing circular economy ... impacting our property development business I 31
Slide 32: Market insight: strong demand, increasing constraints
PROPERTY DEVELOPMENT MARKET INSIGHT: STRONG DEMAND, INCREASING CONSTRAINTS A more challenging environment Intensified competition for land Sharp rise in construction costs Decrease in the number of building permits issued and still significant third-party objections relating to permits Uncer
Slide 33: Icade Promotion's market positioning
PROPERTY DEVELOPMENT ICADE PROMOTION’S MARKET POSITIONING Decline in revenue in 2019-2020, 1 Our strategic positioning 3 expected to rise again by 2021 A nationwide player across all 3 segments–Residential, Icade’s Property Development revenue Office and Medical-Social–with proven expertise in Hea
Slide 34: Outlook for 2024 economic goals
PROPERTY DEVELOPMENT OUTLOOK FOR 2024 2 economic goals 4 business performance indicators 1 Growth in the residential development business 1 Economic revenue: €1.4bn in 2024, Target sales of c. 6,000 homes including €1,000m for Residential, €350m for Office and €50m for Public Amenities and Healthcar
Slide 35: CSR
LA CARTOUCHERIE (Toulouse, Haute-Garonne) CSR
Slide 36: 5 high-priority issues to address environmental and social challenges
CSR 5 HIGH-PRIORITY ISSUES TO ADDRESS THE PLANET’S ENVIRONMENTAL AND SOCIAL CHALLENGES 2019 priority: low carbon Impact on climate change Scarcity of Preserving resources and biodiversity Icade’s circular economy 5 CSR priority issues Territorial Employee cohesion and engagement, inclusion agility a
Slide 37: Strengthened low-carbon commitments
CSR STRENGTHENED LOW-CARBON COMMITMENTS 2025 OBJECTIVES Office Investment -45% in CO2 intensity between 2015 and 2025 Reviewing the calculation method meeting the highest standards Development Defining new targets consistent with 100% of new offices > 5,000 sq.m and an ambitious pathway of “nearly 1
Slide 38: Concrete achievements in 2019 across our three business lines
CSR CONCRETE ACHIEVEMENTS IN 2019 ACROSS OUR THREE BUSINESS LINES HQE certification BREEAM certification Labels Office Investment Factor E – Bordeaux Excellent Very good Floor area: 10,922 sq.m - Gambetta – Paris, 20th district Excellent Very good Floor area: 20,033 sq.m Healthcare Invest. Greater N
Slide 39: Icade: involved in regulatory discussions
CSR ICADE: INVOLVED IN REGULATORY DISCUSSIONS Icade’s involvement in the discussions Icade’s position Buildings’ energy and carbon performance Property Investment Divisions: Decree relating to Icade involved in testing the E+C- label with the energy renovation of office buildings by 2030, Thémis
Slide 40: Recap
CSR RECAP Achievements Low carbon: that make us confident at the core of our CSR strategy in our ability to fulfil our commitments Strong practical involvement in Commitments and initiatives discussions on new standards on all of our CSR issues: in order to promote biodiversity, circular economy, be
Slide 41: Conclusion
PORTES DE PARIS BUSINESS PARK (Saint-Denis, Aubervilliers, Seine-Saint-Denis) 7. CONCLUSION
Slide 42: 2019 priorities are being met
CONCLUSION 2019 PRIORITIES ARE BEING MET Achieved as of 11/25/19 Office development pipeline €1.1bn in disposals 1 70% of the investments made dedicated and “opportunistic” disposals of core offices to the pipeline International expansion of the Healthcare Further investments in Italy and 2 Inve
Slide 43: Rigorous financial management of our strategic plan
CONCLUSION RIGOROUS FINANCIAL MANAGEMENT OF OUR STRATEGIC PLAN On the asset Attractive disposals (~4.3% on average) side + Capital reallocated Proceeds reinvested in offices (>6%)… and healthcare assets (>5%) to higher-yielding = assets Disciplined use of our capital On the liability Optimised tim
Slide 44: Well positioned to achieve 2022 objectives
CONCLUSION AFTER THE PLAN’S SUCCESSFUL FIRST YEAR, ICADE IS WELL POSITIONED TO ACHIEVE ITS 2022 OBJECTIVES Around €5bn of investments over 4 years Active asset rotation: €1.2 bn volume of disposals doubled with c. 25% invested to date €1.1bn i.e. c. 40% of the targets Healthcare Investment €2.5bn in
Slide 45: 2019 guidance raised
CONCLUSION 2019 GUIDANCE RAISED Initial guidance New guidance NCCF (in € per share) As a reminder, impact of 2019 disposals: c. -4% Stable NCCF (in € per share) excluding the impact of 2019 disposals Stable including the impact of 2019 disposals 2019 dividend: c. +4.5% (payout ratio of 90% and distr
Slide 46: Appendices
APPENDICES
Slide 47: Attractiveness of the property investment market
APPENDICES – THE FRENCH OFFICE MARKET ATTRACTIVENESS OF THE PROPERTY INVESTMENT MARKET A dynamic property investment market (excluding residential) Converging yields 40 8% 35 34 expected 7% 35 31 32 30 28 27 6% 26 Avg. outside 14,3 5% Paris region 4.6% 25 Logistics 4.2% 19 4% Inner Ring 3.8% 20 9,6
Slide 48: Growing metropolitan areas outside the Paris region
APPENDICES – THE OFFICE MARKET – MARKET UPDATE GROWING METROPOLITAN AREAS OUTSIDE THE PARIS REGION Leasing activity outside the Paris region Dynamic Deeper markets resilient to the slowdown prime rents thanks to high-quality supply 3,0 Prime rent Change from Leasing activity vs. 5-year % of vacant T
Slide 49: Market opportunities outside Paris CBD
APPENDICES – OFFICE INVESTMENT MARKET OPPORTUNITIES OUTSIDE PARIS CBD Western Paris CBD La Défense Crescent Inner Ring Outer Ring Icade’s Office Investment portfolio Physical vacancy rate 1.3% ▼ 4.9% ≈ 10.0% ▼ 6.3% ▼ 5.4% ≈ in the Paris region as of September 30, 2019 (end of Sept. 2019 and YoY chan
Slide 50: Nanterre and La Défense: major transport infrastructure
APPENDICES – THE OFFICE MARKET – MARKET UPDATE NANTERRE AND LA DÉFENSE, THE FIRST AREAS TO BENEFIT FROM MAJOR TRANSPORT INFRASTRUCTURE Nanterre—a deep, highly Already the best option Eole, the 1st large-scale public transport project segmented office market in terms of accessibility soon to be compl
Slide 51: Les Terrasses de Nanterre: an increasingly attractive area
APPENDICES – THE OFFICE MARKET – MARKET UPDATE LES TERRASSES DE NANTERRE: AN INCREASINGLY ATTRACTIVE AREA RIGHT NEXT TO LA DÉFENSE A key market in the Peri-Défense area Attractive rents compared to Paris and La Défense Take-up in Nanterre since 2001 Average headline rent for transactions for new or
Slide 52: Icade's portfolio in La Défense
APPENDICES – THE OFFICE MARKET – MARKET UPDATE ICADE’S PORTFOLIO IN LA DÉFENSE Q3 2019 NANTERRE data* LA DÉFENSE PRÉFECTURE TOTAL Number of assets Leasable floor area (sq.m) PB5 TOWER INITIALE TOWER IN PUTEAUX (1)(2) Headline Architect: Balladur Architects: Mailly –Depussé –Prouvé rental Leasable flo
Slide 53: Lyon: a record-breaking, fluid market
APPENDICES – THE OFFICE MARKET – MARKET UPDATE LYON—A RECORD-BREAKING, FLUID MARKET 414k sq.m Leasing activity in Lyon taken up in the rolling 12 months to the end of Q3 2019 after a record 2018 with 310k sq.m and 280k sq.m on average over 5 years A fluid market % of 1-year supply that is new 49% €1
Slide 54: Euroméditerranée, in the heart of the Marseille office market
APPENDICES – THE OFFICE MARKET – MARKET UPDATE EUROMÉDITERRANÉE, IN THE HEART OF THE MARSEILLE OFFICE MARKET Leasing activity in Marseille 700,000 sq.m of offices in Euroméditerranée, which is recent compared to Marseille’s overall ageing property stock of 2.4 million sq.m ≈126k sq.m taken up/year o
Slide 55: Projects in the pipeline as of 09/30/2019
APPENDICES – DEVELOPMENT PIPELINE FOR THE OFFICE INVESTMENT DIVI SION PROJECTS IN THE PIPELINE AS OF 09/30/2019 Remaining Estimated Rental to be invested Type Property date of Floor area income Cost (2) > Q3 2019 (1) Project name Location of works type completion (sq.m) (€m) YoC (€m) (€m) Pre-let B0
Slide 56: Solid fundamentals for healthcare real estate
APPENDICES – HEALTHCARE INVESTMENT SOLID FUNDAMENTALS FOR HEALTHCARE REAL ESTATE Current health expenditure growing steadily in France (consumption of care and medical goods (CSBM) + other costs) 7% 6% Health expenditure rising constantly 5% 4% Explanatory factors 4% 4% 4% Ageing population 3% 3% 2%
Slide 57: Conditions favourable to halt the decline of medical fees
APPENDICES – HEALTHCARE INVESTMENT CONDITIONS ARE FAVOURABLE TO HALT THE DECLINE OF MEDICAL FEES Average private medical fees since 2008 (private acute care) Social security in surplus for the 1st time since 2001 (€0.5bn) Strong recovery of the “sickness” division (deficit of €0.8bn vs. €4.9bn in 20
Slide 58: Attractive yields
APPENDICES – HEALTHCARE INVESTMENT ATTRACTIVE YIELDS An attractive risk premium in France Prime yield compression stronger in Germany Stable prime yields in H1 2019 in healthcare Compression of about 250 bps in 6 years Attractive yield with a risk premium of over 125 bps with the German 10-yea
Slide 59: A steadily growing development pipeline
APPENDICES – HEALTHCARE INVESTMENT A STEADILY GROWING DEVELOPMENT PIPELINE Number of Total Remaining to beds and investment (1) be invested Yield on Type of works Operator City places (€m) (€m) cost (2) Completion Pre-let PROJECTS STARTED 2,288 254.8 205.5 5.7% 100% Italy (Piedmont, 7 nursing homes
Slide 60: Portfolio mix
APPENDICES – OFFICE INVESTMENT PORTFOLIO MIX Office Investment Offices Healthcare Investment France Business parks Europe Office and Healthcare Investment Other (on a Group share basis) (in €m) Product mix as of Product mix as of Product mix as of 12/31/2018 12/31/2019 12/31/2022 Healthcare Healthca
Slide 61: Further downturn in new housing supply
PROPERTY DEVELOPMENT FURTHER DOWNTURN IN NEW HOUSING SUPPLY New housing supply and new housing orders in the rolling 12 months to the end of Q3 2019 -0.3% Stock of homes 140 000 130,283 129,330 6 available for sale at quarter end 129,713 120 000 107,739 5 100 000 4.1 -17.3% New housing supply (rolli
Slide 62: Sale prices and construction costs: strong correlation
PROPERTY DEVELOPMENT SALE PRICES AND CONSTRUCTION COSTS: STRONG CORRELATION Indices of construction costs and prices Apartment sale price (1) in Q1 2019 In €/sq.m Index rebased to 100 in 2015 110,0 4 300 4,259 105,0 4 200 100,0 4 100 4,056 95,0 4 000 90,0 3 900 85,0 3 800 80,0 3 700 75,0 3 600 70,0
Slide 63: Measures implemented as part of the roadmap
PROPERTY DEVELOPMENT MEASURES IMPLEMENTED AS PART OF THE ROADMAP Operational Evolving products Marketing Brand policy, organisation and services strategy Innovation and CSR An evolving organisational Residential: Increasingly digital and BtoB & BtoC: increase in structure to be closer to local mul
Slide 64: Office development: backlog
PROPERTY DEVELOPMENT OFFICE DEVELOPMENT: BACKLOG (1) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q1 2021 Q2 2021 Toulouse Villejuif Toulouse Miramont de Guyenne Toulouse Saintes Livry-Gargan PAC FACILITY LEBON LAMARTINE DAURAT NURSING HOME LATECOERE PAC FACILITY PAC FACILITY 5,600 sq.m 18,000 sq.m 7,034
Slide 65: Potential revenue of €7.4bn in the medium term
PROPERTY DEVELOPMENT POTENTIAL REVENUE OF €7.4BN IN THE MEDIUM TERM €5.4bn for the residential segment: €2.0bn for the office segment 20,000 homes (1) and 450,000 sq.m (1) Backlog Projects won Backlog €0.2bn or other options €1.1bn €1.6bn > 6,500 units Land portfolio Public, Office €0.5bn Residentia
Slide 66: Office investment division aligned with a nearly 1.5°C pathway
CSR OFFICE INVESTMENT DIVISION ALIGNED WITH A “NEARLY 1.5°C” PATHWAY Target: -45% in CO2 intensity between 2015 and 2025 2016 Carbon neutrality target set in 2019 (in kg CO2/sq.m/year) 25 An attainable pathway 20 by means of a robust organisation, 15 modelling tools and Icade 2°C pathway, worldwide
Slide 67: Main carbon reduction methods identified
CSR MAIN CARBON REDUCTION METHODS IDENTIFIED Office Investment Development Disposals and Low-carbon Reuse Parking Major Renovation acquisitions Development materials optimisation renovation pipeline Methods Energy Changes in national Improved Improved Energy switch emission emission Architecture by
Slide 68: A policy recognised by non-financial rating agencies
CSR A POLICY RECOGNISED BY NON-FINANCIAL RATING AGENCIES Sector leader of listed diversified companies in Western Europe 2 Gold Awards for the quality Score of 84/100 of financial and non-financial reporting A- rating In the top 18% of leading companies worldwide In the top 6% of the highest scoring
Slide 69: Office and healthcare portfolio: growth and value creation
APPENDICES – INVESTMENT OFFICE AND HEALTHCARE PORTFOLIO: GROWTH AND VALUE CREATION (GROUP SHARE) (in €m) +3.7% on a reported basis 11,712 220 162 11,291 61 (22) 12/31/2018 Disposals (1) Acquisitions (2) Construction work (3) Like-for-like change 06/30/2019 and other (4) LIKE-FOR-LIKE INCREASE IN P
Slide 70: Implied yields of operating assets
APPENDICES – INVESTMENT IMPLIED YIELDS (1) OF OPERATING ASSETS 8.9% 8.6% 8,1% 7,8% 6.4% 6.1% 6.1% 5,9% 6.0% 5,8% 5,8% 5,7% 5.5% 5,3% 5.3% 5,0% Offices Business parks Healthcare TOTAL PROPERTY INVESTMENT 12/31/2016 12/31/2017 12/31/2018 06/30/2019 Note: (1) Annualised net rental income from leased sp
Slide 71: Lease expiry schedule for the property investment divisions
APPENDICES – INVESTMENT LEASE EXPIRY SCHEDULE (1) FOR THE PROPERTY INVESTMENT DIVISIONS (IFRS RENTAL INCOME) (OFFICE AND HEALTHCARE) 80% of lease expiries are after 12/31/2021 €101m €80m €70m €71m €61m €63m €53m €52m €42m €37m €4m T4 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 et+ + Offic
Slide 72: FY 2018 key indicators
APPENDICES – KEY INDICATORS FY 2018 KEY INDICATORS +5.5% PROPERTY INVESTMENT GROUP INDICATORS PROPERTY DEVELOPMENT LIABILITIES +7.8% +5.9% € 4.57 per share € 1.3bn -4bps 89.8 per share 1.55% vs. €4.34 per share in 2017 € vs. €1.2bn in 2017 vs. €84.8 per share as of 12/31/2017 €338.9m €6.7bn PROPERTY