Slide 1: 2013 Annual Results
2013 Annual Results February 14th, 2014 Rives de Bercy – Charenton-le-Pont
Slide 2: Overview
Overview Real Estate Market: Page 2 Our Portfolio: Page 8 Finance: Page 21 Appendices: Page 31
Slide 3: 2013, A Strong Year of Value Creation
2013, A Strong Year of Value Creation 48,500 sq.m. of leases extended for six to nine years with large corporates: Crédit Foncier, Hewlett Packard, Cap Gemini and Galderma 7,800 sq.m. of new leases signed in Arcs de Seine with Sagem, Sonepar and Hewlett Packard Dual “green” certification for 7
Slide 4: Market Review
2013 Market Review La Défense (au centre la Tour Europlaza)
Slide 5: Paris – Ile-de-France Market: Resilient in Crisis-Hit European Market
Paris – Ile-de-France Market: Resilient in Crisis-Hit European Market Vacancy rates in the main European cities (end-2013) 20% 15,3% 15% 12,7% 12,0% 10,5% 10% 7,5% 5,4% 6,2% 6,4% 6,5% 5% 0% Berlin Hamburg Madrid Milan Frankfurt Munich Brussels Greater Greater Paris London Take-up in the main Europea
Slide 6: Take-up in the Paris – Ile-de-France Region Broadly Stable in 2013
Take-up in the Paris – Ile-de-France Region Broadly Stable in 2013 Paris – IDF office take-up rate (million sq.m. by segment) 0,6 0,6 0,5 0,5 0,5 0,5 0,4 0,4 0,4 0,4 0,3 0,3 0,3 0,3 2012 2013 0,2 0,1 0,0 < 500 m² 500 ‐ 2000 m² 2000 ‐ 5000 m² 5000 ‐20000 m² > 20000 m² Source: IPD Immostat, BNP Pariba
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 1 000 800 650 495 515 535 600 410 430 400 285 240 200 10 0 -200 -400 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Paris – IDF average office rents (€/year) 600 500 400 300 20
Slide 8: Paris – Ile-de-France Office Investment Market
Paris – Ile-de-France Office Investment Market Commercial real estate investment flows in France 35 30 25 20 15 10 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 année At €18 billion, the commercial property investment market was in line with 2011 and 2012 Offic
Slide 9: Our portfolio
Our portfolio Arcs de Seine - Boulogne
Slide 10: Cegereal: Uniquely Positioned in the Paris Region Market
Cegereal: Uniquely Positioned in the Paris Region Market A portfolio focused exclusively on the Paris inner suburbs Large, modern buildings (valued at over €50 million) offering many high value- added amenities First-class tenants generating secure revenue streams ARCS DE SEINE EUROPLAZA RIVES
Slide 11: Putting Properties and Tenants First
Putting Properties and Tenants First Modern, efficient and environmentally-friendly buildings that are used by 6,000 people every day. 75% of the portfolio is certified compliant with HQE Exploitation and BREEAM In-Use International environmental standards. Bright, flexible floors that can be
Slide 12: The Go Green Program: 100% of the portfolio certified to the best standards in 2014
The Go Green Program: 100% of the portfolio certified to the best standards in 2014 Main events: 2012: Go Green program launched Arcs de Seine earns HQE Exploitation certification Promising preliminary technical audits at Europlaza and Rives de Bercy 2013: Europlaza earns HQE Exploitation certificat
Slide 13: 2013 Rental Income up 12%, Underpinned by the First Positive Effects of the Lettings
2013 Rental Income up 12%, Underpinned by the First Positive Effects of the Lettings in Arcs de Seine Cegereal – Growth in rental income, 2012-2013 (0,6) 46 (2,6) 0,1 42 7,4 0,4 38 43,3 34 38,6 30 2012 Rental Indexation Arrivals Departures Renegociation Other 2013 Rental income income Cegereal – 201
Slide 14: Arcs de Seine: An HQE-Certified Business Campus on the Outskirts of Paris
Arcs de Seine: An 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 These qualities have already convinced several blue chip companies to lease spa
Slide 15: Arcs de Seine: A Remarkable Rental Performance in 2013
Arcs de Seine: A Remarkable Rental Performance in 2013 Arcs de Seine – Occupancy rate 3% 3% 80% 11% 60% 40% 81% Successful marketing of Arcs 63% de Seine 20% 0% 7,800 sq.m. let to Sagem, 31 decembre 0 0 Arrivals 0 31 decembre Sonepar and Hewlett Packard 2012 2013 8,400 sq.m. still available Arcs
Slide 16: 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, 2012-2013 25 0,4 0,1 (0,6) (1,1) 0,2 20 15 22,7 21,8 10 2012 Rental Indexation Arrivals Departures Renegociation Other 2013 Rental income income A multi-tenant building, with
Slide 17: Europlaza: Plans for La Défense’s First “garden tower”
Europlaza: Plans for La Défense’s First “garden tower” Capture all the value of a unique location in La Défense. Creation of a new identity: “Europlaza, the garden tower.” Lobby and outside spaces to be remodeled between Q2 2014 and Q1 2015. 1- Transformative redesign of the esplanade and all
Slide 18: 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, 2012-2013 12 11 (1,5) 10 11,2 9 9,7 8 2012 Rental income Renegociation 2013 Rental income Lease on the whole building extended in January 2013 Renegotiation of a new nine-yea
Slide 19: Nearly 89% Occupancy Rate
Nearly 89% Occupancy Rate As a % of total area 1 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 févr.-14 févr.-15 févr.-16 févr.-17 févr.-18 févr.-19 févr.-20 févr.-21 févr.-22 août-14 août-15 août-16 août-17 août-18 août-19 août-20 août-21 août-22 Maturité Next break Cegereal – Occupancy rates since the Com
Slide 20: First-class Tenants
First-class Tenants 100% 1% 1% 1% 2% 6% 4% 4% 80% 60% Ratings 4 & 5 100% 100% 99% 96% 94% 95% 96% Rating 3 40% Ratings 1 & 2 20% 0% 2007 2008 2009 2010 2011 2012 2013 Source: Dun & Bradstreet ratings Cegereal – 2013 Results – February 14, 2014 19
Slide 21: Appraisal Values and Unrealized Capital Gains
Appraisal Values and Unrealized Capital Gains Unrealized capital +177m€ gains Lower appraisal € millions values -1,9% 1 100 1032 961 938 1 000 854 188 861 854 865 849 900 828 187 163 800 168 168 168 156 169 172 700 385 600 363 350 340 311 309 300 310 322 500 400 300 200 412 459 425 346 361 384 386 3
Slide 22: Finance
Finance Arcs de Seine – Boulogne-Billancourt
Slide 23: Financial Highlights
Financial Highlights 31 déc. 2011 31 déc. 2012 31 déc. 2013 Portfolio value € 854 M € 865 M € 849 M Loan to value ratio 46.7% 46.2% 47.1% EPRA NNNAV per share 34.2 35.7 34.1 IFRS Rental income € 34.6 € € 38.6 M € 43.3 M Cash flows from operations € 8.4 M € 4.0 M € 19.4 M IFRS net result
Slide 24: Cash Flow From Operations
Cash Flow From Operations In thousands euros 2011 2012 2013 Variance IFRS rents 34 555 38 633 43 303 Recovered real estate expenses 7 315 8 773 10 462 Real estate expenses -10 428 -12 312 -14 700 Net rents 31 442 35 094 39 065 11% Asset management fees -2 990 -3 029 -2 972 Other management fees -1
Slide 25: Non recoverable Operating Expenses
Non recoverable Operating Expenses In thousands euros 2011 2012 2013 Building maintenance 326 431 735 Expenses on vacant premises 3 065 2 187 1 874 Asset management fees 2 990 3 029 2 972 Other building-related costs – lessor 193 2 064 923 Wages and salaries 541 512 576 Other overhead costs 1 502 2
Slide 26: Cash Flow From Operations
Cash Flow From Operations Dividend history (in €/share) 3,1 2,7 2,8 2,6 2,4 1,8 2,0 2,0 1,7 1,5 1,51,5 1,1 0,6 0,7 0,3 - 2006 2007 2008 2009 2010 2011 2012 2013 Cash flow from operations (€) Dividend (€) 2013 Cash flow from operations (€k) 19 448 Total number of shares 13 372 500 Cash flow from op
Slide 27: 2013 Dividend
2013 Dividend In light of: The successful marketing of Arcs de Seine, which is now 81% let. The renewal of CFF’s lease on Rives de Bercy for nine years. The financing secured for the period to 2017 on very good terms. The Board of Cegereal will recommend distributing a total of €1.50 per s
Slide 28: EPRA NNNAV
EPRA NNNAV 35.7€ +1.4 -1.2 - 1.1 34.1€ -0.7 Change in Recurring the fair Rent-free Dividends income value of period real estate assets NNNAV NNNAV Dec 31, 2012 Dec 31, 2013 (€/share) (€/share) Cegereal – 2013 Results – February 14, 2014 27
Slide 29: Unique Bank Loan
Unique Bank Loan €400m in financing obtained from a pool of four banks, maturing in August 2017 Competitive interest rate of 3.15% (3.40% while occupancy rate is below 90%) Hard covenants: LTV at 70% and interest cover at 1.50x New financing (Nov 15 2012) Total amount €400M LTV 47,10% at Dec‐1
Slide 30: Share Performance in 2013
Share Performance in 2013 CGR share performance vs. EPRA and IEIF indices 30,0 28,0 26,0 24,0 CGR EPRA Europe Index 22,0 IEIF French SIIC Index 20,0 18,0 16,0 déc.‐12 mars‐13 juin‐13 sept.‐13 déc.‐13 Cegereal – 2013 Results – February 14, 2014 29
Slide 31: Outlook 2014
Outlook 2014 15% growth in recurring earnings per share Launch of the Europlaza garden tower project Completion of the Go Green program Cegereal – 2013 Results – February 14, 2014 30
Slide 32: Appendices
Appendices Arcs de Seine – Boulogne-Billancourt
Slide 33: Investor Calendar
Investor Calendar Annual Q1 2014 H1 2014 Q3 2014 Shareholders’ revenue results revenue Meeting May 15, 2014 July 24, 2014 Nov. 13, 2014 June 25, 2014 Cegereal – 2013 Results – February 14, 2014 32
Slide 34: Share details / Investor Relations
Share details Name Cegereal SA Investor Relations 21-25, rue de Balzac Listing market Euronext Paris 75008 Paris ISIN FR0010309096 Tel: +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 compartme
Slide 35: IFRS Income Statement (consolidated)
IFRS Income Statement (consolidated) in thousands of euros, except per share data 2013 2012 Rental income 43 303 38 633 Income from other services 10 462 8 773 Building‐related costs (16 927) (16 382) Net rental income 36 838 31 024 Sale of building Administrative costs (2 754) (2 845) Other operati
Slide 36: IFRS Balance Sheet (consolidated)
IFRS Balance Sheet (consolidated) in thousands of euros Dec. 31, 2013 Dec. 13, 2012 Dec. 31, 2013 Dec. 13, 2012 Shareholders' equity Non‐current assets Share capital 160 470 160 470 Investment property 849 000 865 400 Legal reserve and additional paid‐in capital 31 465 40 157 Non‐current loans and r
Slide 37: IFRS Statement of Cash Flows (consolidated)
in thousands of euros 2013 2012 IFRS Statement of OPERATING ACTIVITIES Cash Flows Consolidated net income 1 940 16 860 Elimination of items related to the valuation of buildings: (consolidated) Fair value adjustments to investment property 17 145 (9 385) of components f impact: Adjustments for loans
Slide 38: French GAAP Income Statement
French GAAP Income Statement in euros in euros 2013 2012 2013 2012 France Exports Total Total Non‐recurring income on management transactions Sales of goods for resale Non‐recurring income on capital transactions 153 570 Sales of manufactured products Reversal of provisions for impairment, other pro
Slide 39: French GAAP Balance Sheet
French GAAP Balance Sheet in euros in euros Depr., amort. Dec. 31, 2013 Dec. 31, 2012 ASSETS Gross amount Dec. 31, 2013 Dec. 31, 2012 EQUITY AND LIABILITIES & prov. Uncalled subscribed capital Capital Intangible fixed assets Share capital (including 160 470 000 160 470 000 Start‐up costs paid‐up cap