Inovalis Reit · TSX:INO.UN
Inovalis Reit — Shareholder Meeting (May 2022)
18 slides from Inovalis Reit's shareholder meeting presentation, May 9, 2022
Slide 1: European commercial real estate managed by a local expert
European commercial real estate managed by a local expert 2021 Annual General Meeting May 9, 2022
Slide 2: Key features
2 Key features INOVALIS REIT Operates in attractive market for commercial real estate, with large spreads between asset yields and borrowing costs Maintains a high level of cash distribution through accretive acquisitions and active asset management Maximizes the long-term value of its properties an
Slide 3: A New Start: Core+ Strategy
3 Progress report for Growth A NEW START : CORE+ STRATEGY Capital earmarked during covid / strategic review period deployed as of end Q1 2022, in assets accretive to AFFO/unit on a normalized leverage neutral basis of 50% Investment focus continues to be Paris area and Germany; started expansion to
Slide 4: 2021 - Key Performance Indicators
4 2021 - Key Performance Indicators A STEADY AND CONTROLLED GROWTH 7 5 Wholly Owned Jointly Owned 82.0% $312M $573.2M 8.7% Occupancy Rate Market Cap2, 3 Distribution Yield2 Assets Assets Valuation 3.1 $31.9M ~1.4M years 36.1% 10.5% Gross Leasable Debt-to-book Trading discount to NOI 2021 Weighted Av
Slide 5: Asset recycling program
5 2021 Highlights Asset recycling program November 30, 2021 : sale of Jeuneurs property (Paris Central Business District (“CBD”)) Gross sale price of $103.2m representing a $68.1m increase over the 2013 acquisition price at the Initial Public Offering, and a $35.4m premium over the December 2020 fai
Slide 6: A Successful "Long Play"
6 Rue des Jeuneurs A SUCCESSFUL “LONG PLAY” A 50,400 sq. ft. property in central Paris, part heritage building on the façade street, part post 80's building in the back courtyard, acquired in 2013 for C$39.6m Single tenant maintained for 8 straight years in the building : successive lease extensions
Slide 7: Reletting and refinancing
7 2021 Highlights Reletting and refinancing Management signed a new 7-firm years lease with a blue-chip tenant on 18% vacant area in the Bad Homburg property, increasing occupancy to 71%. A one-year extension of the in-place financing has been finalized in March 2022 on similar terms. The key operat
Slide 8: A Value and Cash Driven Approach
8 A Value and Cash Driven Approach TOTAL EQUITY & DISTRIBUTION 500,000 Total Equity in C$ ‘000 Distribution per Unit 2.325 Distribution per unit in C$ 400,000 Total Equity - Diluted 1.825 300,000 1.325 200,000 100,000 0.825 0 0.325 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sale of Hannover Acquis
Slide 9: Paris Area
9 PARIS AREA Portfolio Northern Inner Rim La Défense Periphery • Baldi • Véronèse Northeastern periphery • Gaia (in 2022) • Delizy (JV) Central Business District • Metropolitain 7 Assets Paris Montparnasse Area • Sablière Assets owned entirely by the REIT except where joint venture (JV) is noted, an
Slide 10: Germany
10 GERMANY Portfolio Düsseldorf Periphery 6 Assets • Duisburg (JV) Assets owned entirely by the Frankfurt Area REIT except where joint venture • Bad Homburg • Trio (Neu-Isenburg) (JV) is noted • Neu-Isenburg (JV) Stuttgart Area • Stuttgart (JV) Munich Periphery • Kösching (JV)
Slide 11: Governance
11 GOVERNANCE A renewed and experienced Leadership Team Trustees Management Stéphane Amine Jean-Daniel Cohen Mike Bonneveld President Chairman of the Board David Giraud Khalil Hankach Chief Executive Officer CFO and CIO • A pared-back and renewed Board of Trustees brings institutional knowledge and
Slide 12: 2022 Outlook – Capital Deployment: Gaia
12 2022 Outlook – Capital Deployment GAIA – NEW ACQUISITION IN PARIS AREA On March 2022, Inovalis REIT acquired its seventh property in Paris area, with the Gaia building near La Defense. A high-quality and competitive office property, with 2 high environmental certifications (HQE and BBC Effinergie
Slide 13: 2022 Outlook – Capital Deployment: Delgado
13 2022 Outlook – Capital Deployment DELGADO - FIRST ACQUISITION IN MADRID On March 2022, Inovalis REIT enters the Spanish real estate market with its first acquisition in Alcobendas, in the North of Madrid. A high-quality and competitive office property, from MERLIN Properties, one of the leading S
Slide 14: Spain
14 2022 Outlook SPAIN Portfolio Madrid Barcelona • Delgado 1 Asset Sevilla Malaga Figures as at March 31, 2022. GROSS CONTRIBUTION FAIR REIT’s TOTAL % BANK LEASEABLE TO TOTAL # OF OCCUPANCY WEIGHTED ASSET MARKET PORTFOLIO OWNED DEBT AREA (GLA) PORTFOLIO TENANTS RATE OCCUPANCY RATE VALUE VALUE (sq. f
Slide 15: David Giraud, CEO
15 DAVID GIRAUD, CEO david.giraud@inovalis.com T +33 1 56 43 33 27 KHALIL HANKACH, CFO TORONTO OFFICE 151 Yonge Street, 11th floor Toronto, Ontario, M5C 2W7 khalil.hankach@inovalis.com T +1 647 775 8431 T +33 1 56 43 33 13 INOVALIS SA 52 rue de Bassano 75008 Paris, France T+33156433323 www.inovalisr
Slide 16: Appendices
Appendices
Slide 17: Investing in Spain
17 Investing in Spain A STRONG EUROPEAN OFFICE MARKETS Inovalis REIT’s decision to invest in Spain is driven by its confidence in the strengths of the market, with a balanced risk/reward ratio, a positive outlook and potential for growth. The country’s economy is based on solid fundamentals, being c
Slide 18: Investment diversification via exposure to selected European markets
18 Getaway to European markets INVESTMENT DIVERSIFICATION VIA EXPOSURE TO SELECTED EUROPEAN MARKETS, WITH A STRONG LOCAL ASSET MANAGER POP : 83,24 m Provides compelling risk/return ratio for commercial GDP : 3,570.62 bn€ real estate, given low rates on 10-year OAT government Office Investment : $42.