Slide 1: Annual Results 2014/2015
ANNUAL RESULTS 30 June 2015 2014/2015 Brussels, 3 September 2015 -1-
Slide 2: Table of contents
Table of contents > Highlights FY 2014/2015 > 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 YTD FY 2014/2015 (1)
Highlights YTD FY 2014/2015 (1) > Total fair value of investment properties: > €1 billion, given the addition of 17 senior housing > Senior housing : > 70 % of the portfolio > German portfolio: > €100 m (12 %) > Occupancy rate: 97.9 % for unfurnished portion and 78.3 % for the furnished portion (onl
Slide 5: Highlights YTD FY 2014/2015 (2)
Highlights YTD FY 2014/2015 (2) > Rental income: +23 % YoY > Profit excl. IAS 39 & IAS 40: +26 % YoY > Change in fair value of investment properties: €19 m (of which €15 m, i.e. +1.5 %, relates to marketable investment properties) > Debt-to-assets ratio: 37 %, a significant reduction following the s
Slide 6: Highlights YTD FY 2014/2015 (3)
Highlights YTD FY 2014/2015 (3) > Proposed gross dividend 2014/2015: €2.00/share, already detached, which represents a statutory pay-out ratio of 86 % > Identity: new logo and new corporate slogan -6-
Slide 7: Portfolio YTD FY 2014/2015
Portfolio YTD FY 2014/2015 > Total Portfolio outlook: €1,121 m − €1,003 m (including projects on balance sheet, excl. assets classified as held for sale) − + €118 m (committed investments in pipeline) > Average remaining lease maturity: 20 years -7-
Slide 8: Strategy
Strat egy sedifica
Slide 9: Aedifica
Aedifica > Belgian REIT (RREC/SIR/GVV) − market cap > €740 m − free float of 95 % − portfolio > €1 billion − approx. 479,000 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 10: Demographic evolution: Ageing in Belgium
Demographic evolution Ageing in Belgium Source: "Perspectives de population 2014-2060", Federal Planning Bureau, 2015. -10-
Slide 11: Demographic evolution: Ageing in Germany
Demographic evolution Ageing in Germany Source: "Bevölkerung Deutschlands bis 2060", Statistisches Bundesamt (Deutschland), 2009 -11-
Slide 12: Senior housing
Senior housing > Focus on senior housing − Retirement 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 -12-
Slide 13: Senior housing potential
Senior housing potential DTZ Insight, European Nursing Homes 2014 -13-
Slide 14: Segment information
Segment information (As of 30 June 2015) CORE NON-CORE Senior housing Apartment buildings in Hotels in Western Europe Belgium’s main cities in Belgium Weight: 71 % 22 % 7% Yield: 5.9 % 5.4 % 6.2 % EBIT margin: 99 % 58 % 99 % → Cash flow → Value play1 → Cash flow (long-term leases) (long-term leases)
Slide 15: Achievements
[] aedifica , PNM HH vert rs betiet a baad -15-
Slide 16: Milestones
Milestones 10 years evolution Investment properties at fair value €m CAGR: 28% -16-
Slide 17: 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) -17-
Slide 18: 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) -18-
Slide 19: Equity: Latest SPOs
Equity Latest SPOs (2010, 2012, 2015) > Reminder: Gross proceeds = €67 m (Oct. 2010) + €100 m (Dec. 2012) + €153 m (June 2015) > 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 + €
Slide 20: Equity: Optional dividend 2013/2014
Equity Optional dividend 2013/2014 > November 2014 > Successful 1st time optional dividend > 64% of shareholders opted for dividend in new shares > Approx. €11 m capital increase -20-
Slide 21: Equity: Latest contribution in kind
Equity Latest contribution in kind > 4 Dec. 2014: Partial demerger of La Réserve Invest SA, owner of 2 buildings (Olen and Wetteren) > Issuance of new Aedifica shares in the amount of approx. €23 m > Full dividend entitlement in exchange for the payment of a fee to Aedifica > Private placement at 3%
Slide 22: 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 23: 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 24: Portfolio analysis
. . Ae Portfolio analysis social housing with care -24-
Slide 25: Segments
Segments (As of 30 June 2015) Apartment buildings (865 apartments in 36 sites) 22 % Senior housing (6,492 units 71 % in 68 sites) 7% 6 hotels & other (521 rooms) Marketable property at fair value (€1,005 m, incl. assets classified as held for sale) -25-
Slide 26: Geographical breakdown
Geographical breakdown (As of 30 June 2015) Germany Wallonia 12 % 12 % Brussels 30 % 46 % Flanders Marketable property at fair value (€1,005 m, incl. assets classified as held for sale) -26-
Slide 27: 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 28: Investment activity YTD 2014/2015
Investment activity YTD 2014/2015 (As of 30 June 2015) > 8 additions in Belgium − Oase Aarschot Wissenstraat (Aarschot) − Oase Tienen (Tienen) − De Notelaar (Olen) − Overbeke (Wetteren) − Halmolen (Halle-Zoersel) − Villa Temporis (Hasselt) − La Ferme Blanche (Remicourt) − Residentie Sporenpark (Beri
Slide 29: Investment activity in Germany (1)
Investment activity in Germany (1) Rheinbach Wenden-Rothemühle Olpe-Rüblinghause Bad Harzburg Kalletal Kirchlengern Enger Kierspe -29-
Slide 30: Investment activity in Germany (2)
Investment activity in Germany (2) Service-Residenz Schloss Bensberg -30-
Slide 31: 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 32: Lease maturity
Lease maturity (As of 30 June 2015) Initial lease maturity < 15 years 21 % 79 % ≥ 15 years, irrevocable Average remaining lease maturity 20 years Marketable property at fair value (€1,005 m, incl. assets classified as held for sale) -32-
Slide 33: 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) -33-
Slide 34: Occupancy rate
Occupancy rate 98 % 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 35: Yields on fair value
Yields on fair value (As of 30 June 2015) Weighted average 5.8 % -35-
Slide 36: 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 37: 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 €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% Apartment buildings -7,851 -4% -1,904 -1% 1,552 1% 3,032 2% -82
Slide 38: Development projects
Development projects (As of 30 June 2015) Projects and renovations Estimated Inv. as of Future inv. Date of Comments inv. 30 June 2015 completion (in € million) I. In progress Sundry Sundry 2 2 0 2015/2016 Renovation of 2 residential buildings Salve Brasschaat 2 2 0 2015/2016 Renovation and redevelo
Slide 39: Development projects
Development projects 228 -24 -24 -20 -18 -17 +4 -3 138 +20 -13 -5 +10 -4 -3 +6 -2 0 -1 +4 -39-
Slide 40: Financials
Ae Financials sede] housing with care -40-
Slide 41: Income Statement: Business driven
Income Statement Business driven Income Statement - analytical scheme * 30 juin 2015 30 juin 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: Income Statement: Business driven
Income Statement Business driven Income Statement - analytical scheme * 30 juin 2015 30 juin 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 43: Rental income
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 -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 juin 2015 30 juin 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 June 2015) Headroom* : - Debt increase of €234 m without investments or €585 m with investments - Drop of MTM of buildings of 38 % Before SPO 2015 After SPO 2015 * Based on bank covenant of max. 60 %. Based on legal max. of 65 %, headroom is respectively €285 m, €815 m
Slide 51: Credit facilities
Credit facilities (As of 30 June 2015) Credit facilities Maturity Amount (€m) 2015/2016 85 2016/2017 150 2017/2018 92 2018/2019 102 2019/2020 80 2020/2021 2 2021/2022 25 > 2022/2023 14 Total credit facilities 550 → €85 m credit facility maturing before 30 June 2016, of which only €30 m are effective
Slide 52: Net asset value
Net asset value Net asset value per share (in €) 30 June 2015 30 June 2014 Var. Based on fair value of investment properties Net asset value based on fair value 42.59 36.84 16% IAS 39 impact 2.70 3.73 Net asset value after deduction of dividend, excl. IAS 39 45.29 40.57 12% Premium on 31 Aug. 2015:
Slide 53: Number of shares
Number of shares Number of shares 30 June 2015 30 June 2014 Number of shares outstanding* 14,045,931 10,249,083 Total number of shares 14,045,931 10,249,117 Total number of shares on the stock market 14,045,931 10,162,165 Weighted average number of shares outstanding (IAS 33) 10,658,981 9,917,093 Nu
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 31 August 2015) Spot Var. (%) Aedifica 52.90 46 BEL MID 4,394.87 19 EPRA Belgium 1,128.03 -20 EPRA Europe 2,169.74 -19 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 ad
Slide 59: Total return since IPO
Total return since IPO (As of 31 August 2015) Var. (%) Aedifica total return 75 107 Bel Re Inv Trusts 1,757 55 EPRA B. total return 3,119 44 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: €760k at the end of Aug. 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: EPRA
Awards EPRA > “EPRA Reporting: Best Practices Recommendations” (BPR) > Annual Report 2012/2013 − 1st implementation of BPR − Silver Award ̶ For annual reports scoring highly based on compliance with the BPR − Most Improved Award ̶ For companies that have outstandingly improved the compliance of thei
Slide 64: Awards: ABAF/BVFA
Awards ABAF/BVFA > Belgian Association of Financial Analysts > 54st Award for Financial Communication > Small & Mid Cap ranking − 1st place in the Investor Relations category − 2nd place overall − 5th in the Non Financial Information > Bel 20 and Small & Mid Cap ranking L’Echo, 17 October 2014, p. 3
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
fre Outlook aecifica | housing with care -66-
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
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 -68-
Slide 69: Outlook FY 2015/2016: Tax shift
Outlook FY 2015/2016 > “Tax shift”: − Risk : ̶ Whithholding tax raised to 25 % (2016) / 27 % (2017) 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 rat
Slide 70: Conclusion
Ae Conclusion social housing with care -70-
Slide 71: 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 -71-
Slide 72: sedifica |
sedifica | housing with care
Slide 73: Stefaan Gielens, Jean Kotarakos, Martina Carlsson
Stefaan Gielens - Chief Executive Officer Jean Kotarakos - Chief Financial Officer Martina Carlsson - Control & Communication Manager -73-
Slide 74: 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 -74-
Slide 75: 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 76: Appendix
. fre Appendix aedifica |’
Slide 77: 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 78: 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 79: 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 -79-
Slide 80: 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 81: 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 82: 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 83: 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 -83-
Slide 84: Investments 2015/2016
Investments 2015/2016 Flandria 9 July 2015 Acquisition of an assisted-living building in Bruges (Province of West-Flanders) • €10m invested amount • 108 units Résidence La Houssière 2 July 2015 Acquisition of a rest home in Braine-le-Comte (Province of Hainaut) • €10 m invested amount • 94 units -84
Slide 85: Geographical breakdown: Belgium
Geographical breakdown (As of 30 June 2015) Belgium Senior housing Apartment buildings Hotels & other -85-
Slide 86: Geographical breakdown: Germany
Geographical breakdown (As of 30 June 2015) Germany Senior housing Apartment buildings Hotels & other -86-
Slide 87: Notes
fre j Notes aecifica |' housing with care -87-
Slide 88: Notes
fre j Notes aecifica |' housing with care -88-