Slide 1: Aedifica Investor Day 2022
Aedifica Investor Day 2022 5 May 2022 -1-
Slide 2: Table of content
Table of content 3 Strategy 7 Portfolio analysis 21 Financials 31 Outlook 34 Conclusion -2-
Slide 3: Strategy
Strategy Koy Oulun Valjastie (Hintta) -3- Oulu – Finland
Slide 4: Aedifica at a glance
Aedifica at a glance Pure-play Growth potential Market reference LT cash flows at healthcare Driven by demographic in European listed interesting yields evolution healthcare real estate €4.9 billion Diversification Belgian REIT Inflation-linked Marketable investment 8 European countries (RREC/SIR/GV
Slide 5: Exploring European markets
Exploring European markets Track record of entering new markets & rapidly creating a platform for future growth 2013 – 2016 – 2019 – 2020 – 2021 – Ireland Germany Netherlands United Finland & 1st investment in Feb 2020: €25m Current portfolio: €92m (9 assets) 1st investment in 1st investment in King
Slide 6: Achievements
Achievements Investment properties1 Evolution and Focus on Europe EVOLUTION SINCE 2006 GEOGRAPHICAL BREAKDOWN (FAIR VALUE)2 €m 6.000 5.500 CAGR: 24 % 5.476 5.000 (as of 31 December 2021) 4.896 4.500 4.000 3.815 3.500 3.000 2.636 2.500 1.964 2.000 1.661 1.456 1.500 971 1.065 1.000 728 566 619 356 360
Slide 7: Portfolio analysis
Portfolio analysis Villa Nuova -7- Vorden - Netherlands
Slide 8: Healthcare real estate portfolio
Healthcare real estate portfolio Healthcare segment breakdown FOCUS ON CARE FACILITIES FOR ELDERLY PEOPLE Elderly care homes 7% 7% Senior housing Mixed-use elderly care 17% Elderly care homes buildings Senior housing 65% Child day-careelderly Mixed-use centres 4% care buildings Child day-care centre
Slide 9: Healthcare real estate tenants
Healthcare real estate tenants Tenant diversification1 11% 587 sites with approx. 7% 250 tenants (or >140 ‘groups’) representing 6% European, national and 48% local profit and not-for- 5% profit operators 4% No ‘operator group’ 4% leases more than 11% of 4% Aedifica’s consolidated 4% assets 3% 4% 1
Slide 10: Healthcare real estate tenants
Healthcare real estate tenants Tenant diversification1 3% 7% Private - Profit Private - Non-profit Predominantly private operators Public 90% Growing public and non- profit segments among tenants 1 Based on the contractual rents. -10-
Slide 11: Elderly care sector regulations
Elderly care sector regulations BELGIUM GERMANY NETHERLANDS UK Regional Local municipality National National (Heimaufsicht) & Medical service of New home Risk- & event based Opening of a new statutory care insurers supervision/ event inspections home, then frequency (MDK) based / periodic of follow
Slide 12: Elderly care sector regulations
Elderly care sector regulations FINLAND SWEDEN IRELAND SPAIN National & National National Regional Regional (for early childhood education & care) Opening of new home Opening of a new Opening of new home Opening of new home / / periodic / event home / annual / event based / periodic / event based ba
Slide 13: Quality of care & Orpea France
Quality of care & Orpea France • Elderly care: highly regulated & controlled • Orpea represents 5% of Aedifica’s environment in Europe. contractual rent in Belgium (3%), Germany (1%) and The Netherlands • Quality of care: competence & responsibility (1%). of Health care authorities & operators: regu
Slide 14: Lease maturity & occupancy rate
Lease maturity & occupancy rate UNEXPIRED LEASE TERM WAULT BY COUNTRY (Years) 30 26% 25 24 Avg 20 years 20 23 22 22 74% 15 18 10 12 13 <15 years ≥15 years 5 0 20 years Belgium Germany Netherlands United Kingdom Finland Sweden Ireland Weighted average unexpired 100 % Occupancy rate lease term Marketa
Slide 15: Age of buildings
Age of buildings >60% OF THE PORTFOLIO IS LESS THAN 15 YEARS OLD 10% 27% 0-5 years 6-10 years 11-15 years 36% > 15 years Project 18% Marketable investment properties incl. assets classified as held for sale (€4,686 m), excl. rights of use of plots of land. 9% Age profile based on a weighted average
Slide 16: Sustainability
Sustainability Strategy • Commitment to the Paris Agreement to achieve net zero GHG emissions for our entire portfolio by 2050: focus on lifecycle assessment of our properties • Focus on stakeholders engagement, creating a platform to share knowledge, promoting green awareness & foster quality of ca
Slide 17: Sustainability
Sustainability CRREM Research project “Carbon Risk Real Estate Monitor” framework Translates long-term policies (COP21 Paris Agreement) into science-based targets that are global warming scenarios, country and building type specific Proposes a framework for assessing building specific carbon risks -
Slide 18: Gross yields on fair value and prime yields
Gross yields on fair value and prime yields GROSS YIELDS ON FAIR VALUE PRIME YIELDS Conservative valuation yields Belgium 7 Germany 6 6.4 Avg 5.5 Netherlands 5 5.5 5.4 5.3 5.2 5.3 5.0 United Kingdom 4 Finland 3 Sweden 2 Ireland 1 0 Spain % Belgium Germany Netherlands United Kingdom Finland Sweden Ir
Slide 19: Committed development projects Pipeline: €767 million
Committed development projects Pipeline: €767 million GEOGRAPHICAL SPLIT EXPECTED DELIVERY DATE €3m 0% €34m €8m €89m 4% €74m 1% 12% €187m 9% Belgium €187m 2022 Germany 24% €335m €100m Netherlands €335m 2023 13% United Kingdom 44% €66m €352m €211m Finland 2024 9% 46% Sweden €211m €75m Ireland 28% >20
Slide 20: Portfolio growth
Portfolio growth Development projects MT Espoo Kurttilantie (FI) Construction start: 2021 Seniorenquartier Langwedel – Expected completion: 2022 Langwedel (DE) Construction start: Q4 2021 Expected completion: Q4 2022 Waterford Carrigea Crescent – Waterford (IE) Construction start: Q4 2021 Expected c
Slide 21: Financials
Financials Seniorenzentrum Alte Zwirnerei -21- Gersdorf - Germany
Slide 22: Rental income
Rental income Historical evolution of rental income1 FY 2021A rental income bridge (€ m) (€ m) (0.2%) +2.4% +1.4% +1.3% +1.9% LfL change +1.0% +0.8% +1.2% +1.6% +0.8% +0.8% +0.0% +1.9% 99% 99% 100% 100% 100% 2.5 232.1 12.8 1.7 2017-21 CAGR: 27.1% 232 8.2 188 5.8 9.3 4.3 118 187.6 92 79 2017A 2018A 2
Slide 23: EPRA earnings
EPRA earnings Historical evolution of EPRA earnings1 FY 2021 EPRA earnings bridge (€ m) (€ m) 2017-21 CAGR: 29.1% 151 44.6 (2.8) 151.5 (3.9) (2.0) 116 (0.4) (0.2) 72 116.2 58 48 2017A 2018A 2019A 2020A 2021A EPRA Rental Operating Financial Tax EPRA Non- EPRA Earnings income costs result Earnings con
Slide 24: EPRA EPS & NTA
EPRA EPS & NTA EPRA earnings per share1 EPRA NTA2 € per share – Before deduction of dividend distribution in NAV 929 1,002 1,527 2,131 2,761 2017-21 CAGR: 7.4% €4.35 €4.23 €3.74 2017-21 CAGR: 10.1% €76,0 €3.15 €3.25 €64,3 €62,1 €54,3 €51,7 2017 2018 2019 2020 2021 Dec-2017 Dec-2018 Dec-2019 Dec-2020
Slide 25: Debt-to-assets ratio
Debt-to-assets ratio Financial policy: debt-to-assets ratio 56% 56% <50% 50% 50% €187m 44% 43% 42% 43% 41% 37% €335m Investment capacity: approx. €760 million before reaching 50% debt-to-assets ratio June June March June March June Oct Dec. June Dec 2017 2018 2019 2019 2020 2020 2020 2020 2021 2021
Slide 26: Debt-to-assets ratio
Debt-to-assets ratio €67m €100m €153m €219m €418m €207m €459m rights issue rights issue rights issue rights issue rights issue ABB rights issue Oct 2010 Dec 2012 June 2015 Mar 2017 May 2019 Apr 2020 Oct 2020 70% 6.000 60% 5.000 50% 4.000 40% €286m 3.000 30% ABB Over the past 12 years, Jun 2021 2.000
Slide 27: Credit facilities Total financial debt: €2,087 m
Credit facilities Total financial debt: €2,087 m Investmentcredits Investment credits 5% 5% 13% 13% 49% bank Credit rating BBB with 4% Term Termloans loans stable outlook from S&P 4% facilities Revolving Revolvingloans loans 33% Global 33% USPP GBP Inaugural €500 million 24% USPP GBP 24% Sustainable
Slide 28: Credit facilities
Credit facilities LIQUIDITY DEBT MATURITY PROFILE Financial debt Lines Utilisation of which 900 Weighted average (in € million)1 treasury 800 notes 700 debt maturity 600 31/12/2022 31/12/2023 389 371 319 166 276 - 500 (excl. CP): 5.7 31/12/2024 432 256 - 400 300 years 31/12/2025 540 175 - 200 31/12/
Slide 29: Credit facilities
Credit facilities Interest rate hedging1 100% 10% 90% 17% 23% 24% 27% 80% 24% 14% 5% 70% 14% 60% 29% 31% 33% 25% 22% 50% 40% 30% 90% of debt hedged 20% 41% 40% 40% 40% 40% by derivatives or fixed 10% rate debt as of 31 December 2021 0% 31-12-2021 31-12-2022 31-12-2023 31-12-2024 31-12-2025 1 Assumin
Slide 30: Dividend policy
Dividend policy €3.40 / share (gross) €3.70 / share (gross) DPS 2021 1 DPS guidance for 2022 (01/01/2021 – 31/12/2021) + 9% compared to end 2021 Withholding tax: − General rule: 30 % − Reduced to 15 % as healthcare REITs investing more than 80% of its portfolio in residential European healthcare rea
Slide 31: Outlook
Outlook Källberga -31- Nynashamn - Sweden
Slide 32: Outlook FY 2022
Outlook FY 2022 €269 million €335 million ~ €800 million Rental income Pipeline deliveries in 2022 Hypothetical new investments of which €450 m cash flow generating <50% £1 = € 1.15 Debt-to-assets ratio Foreign exchange ~ €900 million (end 2022) assumption Cash out during 2022 related to the investm
Slide 33: Outlook
Outlook OBJECTIVE FOR FUTURE GROWTH : EPS GROWTH € / share CAGR EPS: 11% 7,0 (Outlook) 6,5 6,0 5,5 5,0 4,23 4,35 4,77 • Enhancing long-term cash flows 4,5 4,0 3,74 in healthcare real estate 3,40 3,70 3,5 3,0 3,15 3,25 * • Exploring new healthcare real 2,43 3,07 2,5 2,09 1,99 1,87 2,14 1,95 2,05 2,39
Slide 34: Conclusion
Conclusion Bridhaven -34- Mallow - Ireland
Slide 35: Investment highlights
Investment highlights Attractiveness for shareholders PURE-PLAY FAIR VALUE HISTORY HEALTHCARE REIT IN EUROPE OF PORTFOLIO SHOWING RESILIENCE 20 YEARS WEIGHTED AVERAGE LEASE STRONG UNDERLYING TERM DEMOGRAPHIC TRENDS SOLID TRACK RECORD IN INVESTMENT, EQUITY AND DEBT-FINANCING LONG-TERM GROWTH STRONG D
Slide 36: Thank you
Thank you QUESTION? INVESTOR RELATIONS ir@aedifica.eu Rue Belliard/Belliardstraat 40 bte 11 1040 Brussels, Belgium -36-
Slide 37: Stefaan Gielens - CEO; Ingrid Daerden - CFO
Stefaan Gielens - Chief Executive Officer Ingrid Daerden - Chief Financial Officer -37-
Slide 38: 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
Slide 39: Forward-looking statement
Forward-looking statement This Presentation includes forward-looking statements that reflect the Company's intentions, beliefs or current expectations concerning, among other things, the Company’s results, condition, performance, prospects, growth, strategies and the industry in which the Company op
Slide 40: Appendix
Appendix Villa Casimir -40- Roermond - Netherlands
Slide 41: Portfolio growth
Portfolio growth Investment programme as of 31 December 2021 INVESTMENT PROGRAMME: €767 MILLION Country Developm ent Rent Rent Developm ent Rent Yield2 projects (in € m illion) projects 1 (in € m illion) (in € m illion) (in € m illion) BE 74 2 Triple net 303 15 5.1% DE 352 17 Double net 460 23 5.1%
Slide 42: Belgian REIT
Belgian REIT ‘sicafi / vastgoedbevak’ Appraisal: Tax status: until 17 October 2014 At fair value on a quarterly basis by Exit tax a valuation expert Limited corporate tax in No depreciation of properties Belgium for parent company RREC (SIR / GVV) since 17 Dividend: at least 80 % of Withholding tax
Slide 43: Innovative healthcare real estate
Innovative healthcare real estate Villa Casimir: an A-rated redevelopment Roermond (NL) Completed in October 2020 Former villa and ‘Rijksmonument’ (national heritage site) Redeveloped into a care residence for 18 elderly residents requiring continuous care EPC G → A -43-
Slide 44: Innovative healthcare real estate
Innovative healthcare real estate Villa Casimir: an A-rated redevelopment Restoration of the villa’s unique characteristic elements : high windows wooden beams French doors stained-glass windows Improved insulation of the roof, walls & basement floor Barrier-free environment High-performance cooling
Slide 45: Innovative healthcare real estate
Innovative healthcare real estate Villa Casimir: an A-rated redevelopment FUTUREPROOF BUILDING, FIT FOR THE CURRENT GENERATION AND THE NEXT Low-temperature heating Individual ventilation type C+ All-electric approach: opportunity to use green energy & accommodate new technological developments Futur
Slide 46: Belgian healthcare portfolio
Belgian healthcare portfolio PORTFOLIO OF 83 ASSETS BELGIUM Very mature healthcare real €1,213 m ~8,600 5.3% 22 years estate market Portfolio Residents Yield on WAULT Fair Value Fair Value Elderly care: highly consolidated profit segment 11 19 ~€1,287 m Inflation- projects Tenant Portfolio outlook l
Slide 47: Belgian healthcare portfolio
Belgian healthcare portfolio Marketable investment properties Projects in the investment program -47-
Slide 48: Belgian healthcare portfolio
Belgian healthcare portfolio Klein Veldekens, Geel - 132 units Le Douaire, Anderlues - 129 units Jardin Intérieur, Frasnes-lez-Anvaing - 101 units Sorgvliet, Linter - 83 units -48-
Slide 49: German healthcare portfolio
German healthcare portfolio PORTFOLIO OF 101 ASSETS Germany €1,058 m ~10,300 5.2% 23 years Growth potential Portfolio Residents Yield on WAULT due to ageing of Fair Value Fair Value German population 29 21 ~€1,409 m Inflation- projects Tenant Portfolio outlook Elderly care: market linked consolidati
Slide 50: German healthcare portfolio
German healthcare portfolio Marketable investment properties Projects or acquisitions subject to outstanding conditions in the -50- investment program
Slide 51: German healthcare portfolio
German healthcare portfolio Seniorenquartier Weyhe, Weyhe - 109 units Seniorenzentrum Alte Zwirnerei, Gersdorf - 104 units Seniorenzentrum Hildegardis, Langenbach - 196 units Seniorenquartier Bremen, Bremen - 109 units -51-
Slide 52: Dutch healthcare portfolio
Dutch healthcare portfolio PORTFOLIO OF 72 ASSETS Netherlands €564 m ~3,300 5.5% 18 years Healthcare real Portfolio Residents Yield on WAULT estate market Fair Value Fair Value becoming more competitive and liquid 16 23 ~€639 m Inflation- Operators: projects Tenant Portfolio outlook linked predomina
Slide 53: Dutch healthcare portfolio
Dutch healthcare portfolio Marketable investment properties Projects in the investment program -53-
Slide 54: Dutch healthcare portfolio
Dutch healthcare portfolio Zorgresidentie Tiel, Tiel - 38 units Martha Flora Rotterdam, Rotterdam - 29 units Pachterserf, Apeldoorn - 48 units Verpleegcentrum Scheemda, Scheemda - 36 units -54-
Slide 55: UK healthcare portfolio
UK healthcare portfolio PORTFOLIO OF 102 ASSETS United Kingdom Fragmented care home €822 m ~6,700 6.4% 22 years market Portfolio Residents Yield on WAULT Fair Value Fair Value Huge development and growth potential due to outdated social 9 15 ~€881 m Inflation- infrastructure projects Tenant Portfoli
Slide 56: UK healthcare portfolio
UK healthcare portfolio Marketable investment properties Projects in the investment program -56-
Slide 57: UK healthcare portfolio
UK healthcare portfolio Aylesbury Martin Dalby, Aylesbury - 61 units Abbot Care Home, Harlow - 117 units St Fillans, Colchester - 71 units Priesty Fields, Congleton - 78 units -57-
Slide 58: Finnish healthcare portfolio
Finnish healthcare portfolio PORTFOLIO OF 198 ASSETS Finland €860 m ~13,600 5.4% 12 years Strong long-term Portfolio Users Yield on WAULT growth potential: one of Fair Value Fair Value the fastest ageing populations in Europe 16 45 ~€932 m Inflation- ‘Nordic welfare state’ projects Tenant Portfolio
Slide 59: Finnish healthcare portfolio
Finnish healthcare portfolio Marketable investment properties Projects in the investment program -59-
Slide 60: Finnish healthcare portfolio
Finnish healthcare portfolio Jyväskylä Sulkulantie, Jyväskylä - 18 units Tampere Sisunaukio, Helsinki - 130 units Koy Espoon Matinkartanontie, Espoo - 537 units Koy Lohjan Sahapiha, Lohja - 110 units -60-
Slide 61: Swedish healthcare portfolio
Swedish healthcare portfolio PORTFOLIO OF 22 ASSETS Sweden €78 m ~700 5.0% 13 years Long-term growth Portfolio users Yield on WAULT potential, but very Fair Value Fair Value mature (domestic) market 3 12 ~€86 m Inflation- ‘Nordic welfare state’ projects Tenant Portfolio outlook linked to be groups a
Slide 62: Swedish healthcare portfolio
Swedish healthcare portfolio Marketable investment properties Projects in the investment program -62-
Slide 63: Swedish healthcare portfolio
Swedish healthcare portfolio Bälinge Lövsta 9:19, Uppsala - 12 units Upplands Väsby Havregatan AB (UNÄ), Upplands Väsby - 100 units LSS-boende Nyby, Laholm - 6 units Sunnersta 120:2 & 120:4 , Uppsala - 6 units -63-
Slide 64: Irish healthcare portfolio
Irish healthcare portfolio PORTFOLIO OF 9 ASSETS Ireland Strong market fundamentals supporting €92 m ~800 5.3% 24 years long-term investment Portfolio Users Yield on WAULT potential Fair Value Fair Value Highly fragmented care home market 6 3 ~€181m Inflation- Private operators take an projects Tena
Slide 65: Irish healthcare portfolio
Irish healthcare portfolio Marketable investment properties Projects in the investment program -65-
Slide 66: Irish healthcare portfolio
Irish healthcare portfolio Dublin Stepaside, Stepaside - 119 units Bunclody care home, Bunclody - 62 units Brídhaven, Mallow - 184 units Waterford care home, Waterford - 64 units -66-
Slide 67: Spanish healthcare portfolio
Spanish healthcare portfolio PARTNERSHIP WITH SPANISH OPERATOR Spain Strong market fundamentals supporting €75 m ~1,000 Approx. Inflation- long-term investment initial portfolio Users 5.5% linked potential ambition Initial Rental triple net long yield leases Fragmented care home market Up to 5 1 1 p
Slide 68: Notes
fl Notes aedifica | housing with care -68-