Aedifica Sa · EURONEXT:AED
Aedifica Sa — Belgian Day, Degroof Petercam, Zürich (December 2015)
89 slides from Aedifica Sa's conference presentation, Dec 9, 2015
Slide 1: Belgian Day - 1st Quarter 2015/2016
BELGIAN DAY Degroof Petercam 1st QUARTER 2015/2016 30 September 2015 Zürich, 9 December 2015 -1-
Slide 2: Table of contents
Table of contents > Highlights Q1 2015/2016 > Strategy > Achievements > Portfolio analysis > Financials > Shares & shareholders > Outlook > Conclusion -2-
Slide 3: Highlights FY 2014/2015
Highlights FY 2014/2015 seditcal housing with care
Slide 4: Highlights Q1 2015/2016 (1)
Highlights Q1 2015/2016 (1) > Occupancy rate: 98.2 % for unfurnished portion and 81.4 % for the furnished portion (only 7 % of the fair value of marketable investment properties) > Rental income: +26 % YoY > Total fair value of investment properties: €1,036 m, +€31 m compared to 30 June 2015 > Chang
Slide 5: Highlights Q1 2015/2016 (2)
Highlights Q1 2015/2016 (2) > 2 additions in the senior housing segment in Belgium > 2 Awards: − “EPRA Gold Award” for 2013/2014 Annual Financial Report (Sept. 2015) − Best financial communication among “Mid & Small Cap” (Oct. 2015) by the Belgian Association of Financial Analysts -5-
Slide 6: Portfolio Q1 2015/2016 (3)
Portfolio Q1 2015/2016 (3) > Total Portfolio outlook: €1,168 m − €1,034 m (including projects on balance sheet, excl. assets classified as held for sale) − + €134 m (committed investments in pipeline) > Average remaining lease maturity: 20 years -6-
Slide 7: Strategy
Strat egy sedifica
Slide 8: Aedifica
Aedifica > Belgian REIT (RREC/SIR/GVV) − market cap > €850 m − free float of 95 % − portfolio > €1 billion − approx. 496,000 m² − see appendix for characteristics of a Belgian REIT > Focusing on “housing with care”: Senior housing − demographic evolution: ageing > Focusing on Western Europe − Belgiu
Slide 9: Demographic evolution: Ageing in Belgium
Demographic evolution Ageing in Belgium Source: "Perspectives de population 2014-2060", Federal Planning Bureau, 2015. -9-
Slide 10: Demographic evolution: Ageing in Germany
Demographic evolution Ageing in Germany Source: "Bevölkerung Deutschlands bis 2060", Statistisches Bundesamt (Deutschland), 2009 -10-
Slide 11: Senior housing
Senior housing > Focus on senior housing − Rest homes ̶ Belgium: Woonzorgcentrum / Maisons de repos ̶ Germany: Pflegeheim − Assisted living / Independent living ̶ Belgium: Assistentiewoning / Résidence-services ̶ Germany: Betreutes Wohnen > Focus on housing and care = Residential care -11-
Slide 12: Rest home potential
Rest home potential DTZ Insight, European Nursing Homes 2014 -12-
Slide 13: Segment information
Segment information (As of 30 September 2015) CORE NON-CORE Senior housing Apartment buildings in Hotels in Western Europe Belgium’s main cities in Belgium Weight*: 72 % 21 % 7% Yield*: 5.9 % 5.6 % 6.3 % EBIT margin**: 99 % 58 % 99 % Cash flow Value play1 Cash flow (long-term leases) (long-ter
Slide 14: Achievements
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Slide 15: Milestones: investment properties at fair value
Milestones 10 years evolution Investment properties at fair value €m CAGR: 28% -15-
Slide 16: Milestones: Focus on Senior Housing
Milestones Focus on Senior Housing Evolution by segment (fair value) Marketable property at fair value (€1,005 m, incl. assets held for sale) -16-
Slide 17: Milestones: Focus on Western Europe
Milestones Focus on Western Europe Geographical breakdown (fair value) Marketable property at fair value (€1,005 m, incl. assets held for sale) -17-
Slide 18: Equity: Latest SPOs (2010, 2012, 2015)
Equity Latest SPOs (2010, 2012, 2015) > Reminder: Gross proceeds in 2010 and 2012 = €67 m (Oct. 2010) + €100 m (Dec. 2012) > Since then, significant growth of investment properties: − 30 June 2010: €435 m − 30 June 2011: €518 m + €171 m − 30 Sept. 2012: €606 m + €570 m − 30 June 2014: €785 m + €399
Slide 19: Equity: Capital increase June 2015
Equity Capital increase June 2015 > Public capital increase in cash: €153 m, successfully ended on 29 June 2015 despite turbulent financial markets > Issue price: €49.00 > Coupon No. 14: Right to the full dividend entitlement for the 2014/2015 financial year, already detached, to be paid on 30 Octob
Slide 20: Equity: Latest contribution in kind
Equity Latest contribution in kind > 2 Oct. 2015: Contribution in kind of plot of land on which Heydeveld rest home in situated and bare ownership of the building > Issuance of 19,856 new Aedifica shares in the amount of €1 m for €50.36 per share > Prorata dividend entitlement -20-
Slide 21: Investments since capital increase of June 2015
Equity Investments since capital increase of June 2015 (in € m illion) Marketable Developm ent Total investm ent projects properties Résidence de la Houssière Belgium 10 - 10 Senior Flandria Belgium 10 - 10 Mechelen Belgium - 17 17 Vinkenbosch Belgium 4 12 16 Kalletal (extension) Germany - 3 3 Heyde
Slide 22: Team
Team > Aedifica strenghtened its team − New subsidiary in Germany: Aedifica Asset Management GmbH, led by Mr Martin Engel − New COO function: Ms Laurence Gacoin − New CLO function: Ms Sarah Everaert − Management Committee established as of 12 May 2015 Name Function Stefaan Gielens Chief Executive Of
Slide 23: Portfolio analysis
. . Ae Portfolio analysis social housing with care -23-
Slide 24: Segments
Segments (As of 30 September 2015) Apartment buildings (865 apartments in 36 sites) 21 % Senior housing (6,769 units 72 % in 70 sites) 7% 6 hotels & other (521 rooms) Marketable property at fair value (€1,036 m, incl. assets classified as held for sale) -24-
Slide 25: Geographical breakdown
Geographical breakdown (As of 30 September 2015) Germany Wallonia 12 % 13 % Brussels 29 % 46 % Flanders Marketable property at fair value (€1,036 m, incl. assets classified as held for sale) -25-
Slide 26: German portfolio
German portfolio > Germany: − 2013: 1st investments abroad since Aedifica’s creation in 2005 − Aedifica = 1st Belgian REIT to invest in Germany > Portfolio of 14 assets (13 Pflegeheime + 1 Betreutes Wohnen): − Capacity > 1,200 residents − Total fair value > €100 million − Initial gross rental yield
Slide 27: Investment activity in Germany (1)
Investment activity in Germany (1) Rheinbach Wenden-Rothemühle Olpe-Rüblinghause Bad Harzburg Kalletal Kirchlengern Enger Kierspe -27-
Slide 28: Investment activity in Germany (2)
Investment activity in Germany (2) Service-Residenz Schloss Bensberg -28-
Slide 29: Investment activity Q1 2015/2016
Investment activity Q1 2015/2016 (As of 5 October 2015) > 4 additions in Belgium − Résidence de La Houssière (Braine-le-Compte) − Senior Flandria (Bruges) − Vinkenbosch (Hasselt) (+ project) − Heydeveld (Opwijk) (+ project) > 1 project subject to outstanding conditions in Germany − Extension of Die
Slide 30: Main tenants
Main tenants Breakdown of senior housing contractual 30 June 2015 30 June 2014 rents by group controlling legal entities in contractual relation with Aedifica Senior housing 73% 63% Belgium 58% 57% Armonea 13% 13% Senior Living Group* 15% 16% Orpea 11% 14% Soprim@ 8% 10% Oase 5% 2% Vulpia 3% 0% Time
Slide 31: Lease maturity
Lease maturity (As of 30 September 2015) Initial lease maturity < 15 years 21 % 79 % ≥ 15 years, irrevocable Average remaining lease maturity 20 years Marketable property at fair value (€1,036 m, incl. assets classified as held for sale) -31-
Slide 32: Age of buildings
Age of buildings (As of 30 June 2015) Other contracts Buildings > 10 years 17 % Other contracts Buildings between 17 % 66 % Long-term 0-10 years triple net contracts Marketable property at fair value (€1,005 m, incl. assets classified as held for sale) -32-
Slide 33: Occupancy rate
Occupancy rate 99 % 95 % Very high and stable occupancy rates Red line: Total portfolio (excl. furnished apartments) (93% of portfolio) : (contractual + guaranteed rents) / (contractual rents + ERV for unlet spaces). Green dots: Furnished apartments (7% of portfolio) : Rented days QTD / total numb
Slide 34: Yields on fair value
Yields on fair value (As of 30 September 2015) Weighted average 5.8 % -34-
Slide 35: Segment EBIT margins
Segment EBIT margins* (As of 30 June 2015) Senior Apartment Hotels buildings Unallocated & housing & TOTAL inter-segment other FY 2007/2008 100 % 64 % 98 % - 68 % FY 2008/2009 100 % 64 % 96 % - 71 % FY 2009/2010 100 % 64 % 99 % - 73 % FY 2010/2011 100 % 64 % 98 % - 75 % FY 2011/2012 100 % 63 % 99 %
Slide 36: Valuation of property
Valuation of property* 2008 → 2015 FY 2008/2009 FY 2009/2010 FY 2010/2011 FY 2011/2012 FY 2012/2013 FY 2013/2014 FY 2014/2015 Q1 2015/2016 €k % €k % €k % €k % €k % €k % €k % €k % Senior housing 13 0% 1,684 1% 6,072 2% 5,991 2% 7,347 2% 5,896 1% 13,343 2% 5,795 1% Apartment buildings -7,851 -4% -1,90
Slide 37: Development projects
Development projects (As of 30 September 2015) Projects and renovations Estimated Inv. as of Future inv. Date of Comments inv. 30 September completion (in € million) 2015 I. In progress Sundry Sundry 2 2 0 2015/2016 Renovation of 2 residential buildings 't Hoge Kortrijk 2 0 2 2015/2016 Extension and
Slide 38: Development projects
Development projects +17 +1 150 138 -2 -8 +3 +2 -38-
Slide 39: Financials
Ae Financials sede] housing with care -39-
Slide 40: Income Statement: Business driven
Income Statement Business driven Income Statement - analytical scheme * 30 June 2015 30 June 2014 Var. (x €1,000) Rental income 49,903 40,675 +23% Rental-related charges -50 -62 Net rental income 49,853 40,613 +23% Operating charges -10,831 -9,192 Operating result before result on portfolio 39,022 3
Slide 41: Income Statement: Business driven
Income Statement Business driven Income Statement - analytical scheme * 30 June 2015 30 June 2014 Var. (x €1,000) Rental income 49,903 40,675 +23% Rental-related charges -50 -62 Net rental income 49,853 40,613 +23% Operating charges -10,831 -9,192 Operating result before result on portfolio 39,022 3
Slide 42: Rental income (June 2015)
Rental income (As of 30 June 2015) + 9,516 - 135 - 154 49,903 40,676 Change: +38.7 % -1.1 % -3.5 % +22.7 % Like-for-like change: +0.5 % -2.0 % -3.5 % -0.8 % 23 % increase YoY -42-
Slide 43: Rental income (September 2015)
Rental income (As of 30 September 2015) + 2,886 +83 -8 14,172 11,211 Change: +39.4 % +2.9 % -0.3 % +26.4 % Like-for-like change: +0.6 % +2.9 % -0.3 % +1.1 % 26 % increase YoY -43-
Slide 44: Result excl. IAS 39 & IAS 40
Result excl. IAS 39 & IAS 40 (As of 30 June 2015) * +9,516 -192 -135 -60 -142 -1,014 -372 -6,327 +4,729 -107 -240 -238 -235 25,498 20,315 -44-
Slide 45: Result excl. IAS 39 & 40 vs Budget
Result excl. IAS 39 & 40 vs Budget* (As of 30 June 2015) * 25,498 22,086 * Initial budget 2014/2015 as published in the 2013/2014 Annual Financial Report. -45-
Slide 46: Result excl. IAS 39 & 40 vs Forecast
Result excl. IAS 39 & 40 vs Forecast* (As of 30 June 2015) * 25,284 25,498 * Forecast 2014/2015 as published in the Securities Note regarding the capital increase of 29 June 2015. -46-
Slide 47: Income Statement: Market driven
Income Statement Market driven Income Statement - analytical scheme 30 June 2015 30 June 2014 (x €1,000) Profit excl. IAS 39 & IAS 40 25,498 20,315 IAS 39 impact: changes in fair value of financial assets and liabilities 374 -2,990 IAS 40 impact: changes in fair value of investment properties 19,259
Slide 48: Hedging policy
Hedging policy (As of 30 June 2015) > Economic stability and Business driven: foreseeability of Avg effective interest rate of 3.0 %, interest cash well below PY (4.0 %), outflows... and lower than initial budget (3.4 %) > ... even in spite Market driven: of accounting Change in FV of derivatives (n
Slide 49: Consolidated balance sheet (€ m)
Consolidated balance sheet (€ m) (As of 30 June 2015) Assets Equity & Liabilities 1 -49-
Slide 50: Debt-to-assets ratio
Debt-to-assets ratio (As of 30 September 2015) Headroom* : - Debt increase of €235 m without investments or €588 m with investments - Drop of MTM of buildings of 37 % Before After SPO 2015 SPO 2015 * Based on bank covenant of max. 60 %. Based on legal max. of 65 %, headroom is respectively €288 m, €
Slide 51: Credit facilities
Credit facilities (As of 30 September 2015) Credit facilities Maturity Amount (€m) 2015/2016 30 2016/2017 150 2017/2018 92 2018/2019 127 2019/2020 80 2020/2021 2 2021/2022 25 > 2022/2023 14 Total credit facilities 520 €30 m credit facility maturing before 30 June 2016 -51-
Slide 52: Net asset value
Net asset value Net asset value per share (in €) 30 Sept. 2015 30 June 2015 Var. Based on fair value of investment properties Net asset value based on fair value 43.48 42.59 2% IAS 39 impact 2.86 2.70 Net asset value after deduction of dividend, excl. IAS 39 46.34 45.29 2% Premium on 4 Dec 2015: 38
Slide 53: Number of shares
Number of shares > 30 September 2015 Number of shares 30 September 2015 30 June 2015 Number of shares outstanding* 14,045,931 14,045,931 Total number of shares 14,045,931 14,045,931 Total number of shares on the stock market 14,045,931 14,045,931 Weighted average number of shares outstanding (IAS 33
Slide 54: Value potentially not reflected in the NAV
Value potentially not reflected in the NAV > Belgian REIT → highly regulated framework > Assessment: − Apartment buildings: valued as a whole vs individual units − Senior housing: yield compression − Inflation-linked contracts > Pipeline: − Committed − Pre-let > Track record of successful investment
Slide 55: EPRA
EPRA > Aedifica included in the EPRA indices Key performance indicators according to the EPRA 30 June 2015 30 June 2014 principles EPRA Earnings (in €/share) 2.39 2.05 EPRA NAV (in €/share) 45.46 40.55 EPRA NNNAV (in €/share) 42.44 36.61 EPRA Net Initial Yield (NIY) (in %) 5.1% 5.2% EPRA Topped-up N
Slide 56: Shares & shareholders
Shares & shareholders ie aedifica | housing with care -56-
Slide 57: Dividend track record
Dividend track record * 2015/2016 Budgeted dividend (see section 7 of the Board of Directors’ Report included in the 2014/2015 Annual Financial Report) -57-
Slide 58: Share price since IPO
Share price since IPO (As of 4 December 2015) Spot Var. (%) Aedifica 59.94 65 BEL MID 4,501.23 22 EPRA Belgium 1,181.35 -17 EPRA Europe 2,229.30 -17 Aedifica: based on the IPO price (€41), adjusted to take into account the rights issues of 2010 (- €1.89), 2012 (- €1.93) and 2015 (- €0.89), i.e. an a
Slide 59: Total return since IPO
Total return since IPO (As of 4 December 2015) Var. (%) Aedifica total return 88 143 Bel Re Inv Trusts 1,854 -6 EPRA B. total return 3,292 52 Aedifica: based on the IPO price (€41), adjusted to take into account the rights issues of 2010 (- €1.89), 2012 (- €1.93) and 2015 (- €0.89), i.e. an adjusted
Slide 60: Shareholding
Shareholding* (Update as of 17 March 2015) Free float 94.54 % 5.46 % Wulfsdonck Investment via Finasucre * A total of 14,045,931 shares are listed on Euronext Brussels. -60-
Slide 61: Rankings (1/2)
Rankings (1/2) > One of the highest free floats of all Belgian REITs > 4th largest liquidity amongst all Belgian REITs1 (Daily average: €820k at the end of Sept. 2015; €230k at the end of June 2012 before capital increase of Dec. 2012) > 4th largest Belgian REIT in terms of fair value1 > 4th largest
Slide 62: Rankings (2/2)
Rankings (2/2) > Biggest increase in portfolio value among Belgian REITs in 20141 1 “Dossier B-REITs & Values 2015”, Expertise News, 22 May 2015 -62-
Slide 63: Awards (1)
Awards (1) EPRA “EPRA Reporting: Best Practices Recommendations” (BPR) > Annual Report 2012/2013 (1st implementation of BPR) > Annual Report 2013/2014 > Annual Report 2014/2015: not yet assessed -63-
Slide 64: Awards (2)
Awards (2) ABAF/BVFA 2015 > 55th Award for Financial Communication > Small & Mid Cap ranking − 1st place for Best Financial Communication − 1st place in the Non-Financial Information category − 3rd place in the Investor Relations category L’Echo, 13 October 2015, p. 32 -64-
Slide 65: Corporate governance
Corporate governance > Transparency > Board of Directors − NV/SA − 10 Directors − Management in the box ̶ 8 non-executive Directors of which 5 independent ones − Belgian Code 2009 on ̶ 2 executive Directors Corporate Governance − Audit Committee − Nomination & Remuneration Committee − Investment Com
Slide 66: Outlook
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Slide 67: Outlook FY 2015/2016: Portfolio
Outlook FY 2015/2016 Portfolio > Focus on investments − Development pipeline: Salve, ‘t Hoge, Helianthus, Pont d’Amour, Marie-Louise, Leopoldspark, Oase Aarschot Poortvelde − New investments in senior housing: ̶ Germany: targets being studied ̶ Belgium: targets being studied − Objective for future i
Slide 68: Outlook FY 2015/2016: Portfolio
Outlook FY 2015/2016 Portfolio > Focus on investments − Development pipeline: Salve, ‘t Hoge, Helianthus, Pont d’Amour, Marie-Louise, Leopoldspark, Oase Aarschot Poortvelde − New investments in senior housing: ̶ Germany: targets being studied done ̶ Belgium: targets being studied − Objective for fut
Slide 69: Outlook FY 2015/2016
Outlook FY 2015/2016 > Budgeted rental income: €59 m > Budgeted EBIT margin: 79 % > Budgeted result excl. IAS 39 & 40: €32 m > Budgeted dividend: €29 m > Budgeted DPS: €2.05/share (gross), higher than FY 2014/2015 -69-
Slide 70: Outlook FY 2015/2016: Tax shift
Outlook FY 2015/2016 > “Tax shift”: − Risk : ̶ Withholding tax raised to 27 % (2016) instead of 15 % (2015) ? − Opportunity: end of “80 % residential threshold” implying: ̶ End of tax-driven limitation of investment scope ̶ Favourable impact on arbitration policy − Current pay-out ratio at a low 86
Slide 71: Conclusion
Ae Conclusion social housing with care -71-
Slide 72: Conclusion: Attractiveness for shareholders
Conclusion Attractiveness for shareholders: > Strong underlying demographic trends > Long-term growth potential > Fair value history of portfolio showing resilience > Average remaining lease duration: 20 years > Investment, equity and debt-financing track record > Dividend track record -72-
Slide 73: sedifica |
sedifica | housing with care
Slide 74: Stefaan Gielens and Jean Kotarakos
Stefaan Gielens - Chief Executive Officer Jean Kotarakos - Chief Financial Officer -74-
Slide 75: Aedifica SA/NV
Aedifica SA/NV Public REIT under Belgian Law Regulated Real Estate Company (RREC) Société immobilière réglementée (SIR) Gereglementeerde vastgoedvennootschap (GVV) Avenue Louise 331 1050 Brussels Tel: +32 (0)2 626 07 70 - Fax: +32 (0)2 626 07 71 info@aedifica.be www.aedifica.be -75-
Slide 76: Forward looking statement
Forward looking statement To the extent that any statements made in this presentation contain information that is not historical, these statements are essentially forward-looking. The achievement of forward- looking statements contained in this presentation is subject to risks and uncertainties beca
Slide 77: Appendix
. fre Appendix aedifica |’
Slide 78: Belgian REIT
Belgian REIT > “sicafi / vastgoedbevak” until 17 October 2014 > RREC (SIR / GVV) since 17 October 2014 > Investment property: maximum 20 % in one (group of) asset(s) > Appraisal: − At fair value on a quarterly basis by an independant expert − No depreciation of properties > Dividend: at least 80 % o
Slide 79: Triple net leases
Triple net leases > Definition − Right known as “emphythéose/erfpacht” in Belgium: ̶ Real estate contract ̶ Temporary right for tenant to fully make use of the building ̶ Term between 27 and 99 years, irrevocable − Usual additional contractual provision ̶ The tenant incurs operating charges, R&M and
Slide 80: Milestones
Milestones > Nov. 2005: Creation of Aedifica > Dec. 2005: Filed as Vastgoedbevak/Sicafi + 1st acquisitions > Oct. 2006: IPO > Oct. 2010: 1st SPO > Dec. 2012: 2nd SPO > Oct. 2014: SIR/GVV > June 2015: 3rd SPO -80-
Slide 81: Investments 2014/2015 (1)
Investments 2014/2015 (1) Oase Aarschot Wissenstraat Eyckenborch September 2014 10 July 2014 Completion of extension Acquisition of 1 rest home in Aarschot and renovation works of (Province of Flemish Brabant) 1 rest home in Gooik • €24 m invested amount (Province of Flemish Brabant) • 120 units • 1
Slide 82: Investments 2014/2015 (2)
Investments 2014/2015 (2) Seniorenresidentz Klosterbauerschaft 3 November 2014 Acquisition* of a portfolio of 8 rest homes in Germany • More than €60 m invested amount • 642 units * the usual outstanding conditions in Germany (mainly of administrative nature) were lifted on 16 December 2014. Klein V
Slide 83: Investments 2014/2015 (3)
Investments 2014/2015 (3) Halmolen 11 December 2014 Acquisition of a rest home in Belgium (Province of Antwerp) • €18 m invested amount • 140 units Villa Temporis 18 December 2014 Acquisition of 2 rest homes in Belgium (Provinces of Limburg and Liège) • €9 m invested amount La Ferme Blanche • 101 un
Slide 84: Investments 2014/2015 (3)
Investments 2014/2015 (3) Service-Residenz Schloss Bensberg 1 March 2015 Acquisition of an assisted-living complex in Germany • €14 m invested amount • 87 apartments Residentie Sporenpark 28 April 2015 Completion of a new rest home in Beringen (Province of Limburg) • 127 units -84-
Slide 85: Investments 2015/2016
Investments 2015/2016 Vinkenbosch Flandria 9 July 2015 Acquisition of an assisted- living building in Bruges (Province of West-Flanders) • €10m invested amount • 108 units 1 October 2015 Acquisition of a rest home in Hasselt (Province of Limburg) • €4m invested amount • 59 units Résidence La Houssiè
Slide 86: Geographical breakdown: Belgium
Geographical breakdown (As of 30 June 2015) Belgium Senior housing Apartment buildings Hotels & other -86-
Slide 87: Geographical breakdown: Germany
Geographical breakdown (As of 30 June 2015) Germany Senior housing Apartment buildings Hotels & other -87-
Slide 88: Notes
fre ; Notes aecifica |' housing with care -88-
Slide 89: Notes
fre ; Notes aecifica |' housing with care -89-
Aedifica — Belgian Day, Degroof Petercam, Zürich (December 2015) on 6ix