Aedifica Sa · EURONEXT:AED
Aedifica Sa — Merger or Acquisition (February 2019)
23 slides from Aedifica Sa's merger presentation, Feb 1, 2019
Slide 1: Aedifica in the UK
Aedifica in the UK Acquisition of a portfolio of 92 healthcare properties 1 February 2019 (update) -1-
Slide 2: Table of contents
Table of contents > Portfolio > Key performance indicators > Asset features > Tenants > Portfolio management > UK healthcare real estate market > UK elderly care market > Going forward > Key investment highlights -2-
Slide 3: Portfolio
Portfolio United Kingdom 92 Healthcare properties 14 tenants Top tier national and local operators >22 years WAULT ±£32 million ±5,700 Contractual rent (triple net) Beds across UK ±£450 million Acquisition value -3-
Slide 4: Portfolio
Portfolio > 921 largely purpose built healthcare properties at 90 locations > Acquisition value: approx. £450 million > Contractual rent: approx. £32 million2 > Attractive initial gross yield: approx. 7% > Good geographical diversification − 26% of rent income in London and South East > Good tenant
Slide 5: Key performance indicators
Key performance indicators > Good geographical > Good tenant diversification diversification1 Diversified tenant base with 5 largest tenants only accounting for approx. 66% South and of contractual rent North West, East of 2% 2% 4% 2% England, London & 5% South East, Scotland, 26% 3% 9% 4% 22% 5% 5%
Slide 6: Key performance indicators
Key performance indicators > Long lease duration > Inflation-linked income stream WAULT of 22 years, with 75% of rent More than 50% of the contractual rent is from leases with >20 years remaining subject to minimum annual increases of to expiration 3% 55% 59% 27% 23% 14% 13% 2% 3% 3% 10 - 15 15 - 20
Slide 7: Asset features
Asset features > Purpose built healthcare sites > En-suite bathrooms Percentage of purpose built healthcare 100% single bedroom ratio with a higher sites in the Aedifica UK portfolio is higher percentage of en-suite bathrooms than the UK market’s average compared to the market average 8% 18% 53% 30%
Slide 8: Asset features
Asset features > Distribution of sites by # of > Focus on general care needs beds 88 sites provide general elderly care, 2 The portfolio averages 63 beds per site sites provide specialist care 41 2 27 17 4 88 1 0 - 34 beds 35 - 54 55 - 74 75 - 94 > 95 beds beds beds beds Elderly care Specialist care
Slide 9: Tenants
Tenants Diversified tenant base > Number of beds by tenant 1.158 908 831 740 Top 30 elderly care provider Other Top 3 specialist care provider 452 387 293 221 195 156 126 102 77 67 > 78% of beds operated by UK top 30 largest care operators > 7 operators1 are considered “strategically important” to t
Slide 10: Portfolio management
Portfolio management > Experienced portfolio management team: Layland Walker − Team of 7 experienced professionals dedicated to this portfolio − 5 years of experience managing this portfolio − Strong track record of hands on portfolio management, operator engagement and value enhancement − Exclusive
Slide 11: UK healthcare real estate market
UK healthcare real estate market 10% 8% Residential RE Healthcare RE Total return p.a. Industrial RE 6% Bonds Office RE Equities All property 4% Retail RE 2% 0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Risk (standard deviation) > Healthcare real estate has offered investors strong risk-adjusted return
Slide 12: UK elderly care market
UK elderly care market > Expected evolution of elderly population growth in the UK No. Over 80 (x 1.000) No. Over 85 (x 1.000) Over 80 - % of tot. pop. Over 85 - % of tot. pop. 9.000 12% 10,4% 8.000 7.952 10% 7.000 8,1% 6.000 8% 5.904 6,5% 5.000 5,1% 4.935 6% 4.000 5,0% 4,4% 3.000 3.293 3.424 4% 3.1
Slide 13: UK elderly care market
UK elderly care market > Ageing UK population − Demographic change is one of the key drivers of increasing demand for care assets − Population of +85 years expected to double over the next 25 years − Segment of +85 years shows the highest care needs > Fragmented UK care home market − Top 4 largest o
Slide 14: UK elderly care market: Equipment rate
UK elderly care market > Equipment rate Equipment rate = number of beds / population aged 80y and above Source: Eurostat, Cushman & Wakefield: European Retirement Homes Study -14-
Slide 15: UK elderly care market: Income by source of funds
UK elderly care market Diversified funding streams > Income by source of funds 9% 14% 26% 45% 5% - specialist 55% - elderly 46% 1 > Funding spread in line with market’s average1 > Strengthening diversification of funding sources: expected growth of private funding sources 1 LaingBuisson -15-
Slide 16: UK elderly care market: Care home segments
UK elderly care market Care home segments 11,300 elderly 466,000 care beds - > 90% of beds provided care homes elderly and specialist by private sector Super Prime Prime Tier 1 Tier 2 ◼ High value, ◼ Modern purpose ◼ Older purpose ◼ Old conversion, premium location, built, mostly private built, mix
Slide 17: Aedifica going forward: Est. portfolio evolution
Aedifica going forward Est. portfolio evolution1 € million 1 Based on Aedifica’s fair value as of 30 September 2018 and the contractual value of the UK portfolio. -17-
Slide 18: Aedifica going forward: Est. geographic diversification
Aedifica going forward Est. geographic diversification1 14% 1 Based on Aedifica’s fair value as of 30 September 2018 and the contractual value of the UK portfolio. -18-
Slide 19: Aedifica going forward: Est. tenant diversification
Aedifica going forward Est. tenant diversification1 9% 14% 1 Based on contractual rents -19-
Slide 20: Key investment highlights
Key investment highlights > Confirmation of Aedifica’s strategy as European pure play healthcare REIT > Geographical & tenant diversification > Attractive initial gross yield > Acquisition of a portfolio of 92 properties at a ±5% discount to fair value > Inflation-linked triple net leases > Further
Slide 21: Stefaan Gielens – CEO; Ingrid Daerden – CFO
Stefaan Gielens – Chief Executive Officer Ingrid Daerden – Chief Financial Officer -21-
Slide 22: 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.aedifi
Slide 23: 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