Slide 1: '08 Annual Results Presentation
‘08 Annual Results Presentation Paris, 18 February 2009 0
Slide 2: Agenda: Real Estate, Financial, Corporate
REAL ESTATE FINANCIAL CORPORATE Portfolio review IFRS balance sheet Shareholders & Share price Large office market Income statement Commerz Real Europlaza French GAAP – IFRS Internal structure Arcs de Seine reconciliation Rives de Bercy Changes under SIIC 5 Bank financing Rental analysis Key points
Slide 3: Real Estate
REAL ESTATE Portfolio review Large office market Europlaza Arcs de Seine Rives de Bercy Rental analysis Trends in asset values 2
Slide 4: A high-quality portfolio
A high-quality portfolio Three recent HRO property complexes In excellent locations Financial occupancy rate of 100% at 31 December 2008 EUROPLAZA ARCS de SEINE RIVES de BERCY 1998 2000 2003 La Défense Boulogne - Point du Jour Charenton - Bercy 3
Slide 5: A strong market segment
A strong market segment Large office properties (>20,000m2) Take-up was up to double Supply in the past Areas > 5,000 m2 Areas > 20,000 m2 Under-supply Over-supply Under-supply Under-supply '000 m2 '000 m2 1 400 600 1 200 500 1 000 400 800 300 600 200 400 200 100 0 0 2000 2001 2002 2003 2004 2005 20
Slide 6: A high-quality portfolio: Europlaza
A high-quality portfolio EUROPLAZA 31-storey tower, 1300m2 per floor, restructured by HRO in 1998 52% of areas renegotiated * GE Capital 9-year firm * Cap Gemini 4-year firm on 58% of the initial floor space * Galderma 6-year firm * Credit Agricole 6-year firm €3.3m in improvement works * Refurbishm
Slide 7: A high-quality portfolio: Arcs de Seine
A high-quality portfolio ARCS de SEINE 3 independent buildings developed or fully refurbished by HRO in 1999-2000 Alignment of leases on 2011 Signature of an extension and alignment of two leases with Bouygues Telecom: • Building A 25,000m2 Jan 2010 -> March 2011 • Building C 10,000m2 May 2009 -> Ma
Slide 8: A high-quality portfolio: Rives de Bercy
A high-quality portfolio RIVES de BERCY Three buildings linked by a fourth forming a façade, completed by HRO in 2003 Credit Foncier Single tenant since the building’s completion Renewal of the existing lease: - 6 year firm - triple-net lease - from February 2009 7
Slide 9: Rental analysis
Rental analysis Changes in lease book: 72% renegotiated in 2008 Gain/(Loss) of Tenant Transaction Area (m2) Firm period rent in % Sales Cap Gemini Renewal 2 600 2 years 0% Cap Gemini Renewal 6 500 5 years 0% GE Capital Renewal 9 300 9 years 0% 43% 72% Galderma Renewal 4 000 6 years (1%) Credit Fonci
Slide 10: Rental analysis: Major tenancy terms
Rental analysis Major tenancy terms 100% 90% Next break option End of lease 80% 70% 60% Bouygues Telecom 50% 40% 30% Credit Foncier GE Capital 20% Cap Gemini 10% Telecom 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 9
Slide 11: Rental analysis: Sector exposure
Rental analysis Sector exposure Size of 42% largest 36% tenant 17% 5% Media & Banking & Insurance Services Health & Technology Communications Bouygues Telecom Crédit Foncier Cap gemini Telecom Galderma Intl TF 1 GE Capital Cap gemini France Boursorama SPSS France FM Insurance Gartner France SARL Cre
Slide 12: Blue-chip tenants with excellent guarantees
Rental analysis Blue-chip tenants with excellent guarantees Dun & Bradstreet ratings of tenants and guarantors (% of total rent) Poor tenant 100% Average tenant Good tenant 80% Very good tenant 60% Excellent tenant 40% 20% 0% Very low Low risk Standard risk Average risk High risk risk/cash deposit 1
Slide 13: Trends in Asset values
A high-quality portfolio Trends in Asset values (€m) +7% -9% +11% 1 100 €1,032m 1 000 €961m €938m 900 €868m 800 R ives de B ercy 700 600 500 Arcs de S eine 400 300 200 E uroplaz a 100 - 06 06 07 07 08 08 6 06 7 07 8 08 -0 -0 -0 p- n- p- n- p- n- c- c- c- ar ar ar De De De Ju Ju Ju Se Se Se M M M 12
Slide 14: Financial
FINANCIAL IFRS balance sheet Income statement French GAAP – IFRS reconciliation Bank financing Net Asset Value Dividend 13
Slide 15: Balance sheet
Balance sheet - as at 31 December 2008- IFRS - €m IPO 12/31/2008 12/31/2007 31/12/2006 31/03/2006 Assets Fixed assets 938 1,032 963 867 Current assets 26 36 34 33 Cash and equivalent 10 20 31 37 Total Assets 974 1,088 1,028 937 Liabilities Shareholders' equity 547 633 555 443 Bank debt 377 377 376 3
Slide 16: Income statement
Income statement - as at 31 December 2008 - (€m) % value 12/31/2008 12/31/2007 Rents 6.17% 57.9 56.7 Break option penalties 0.25% 2.3 0,0 Recoverable real estate expenses 1.13% 10.6 10.5 Real estate expenses (1.34%) (12.5) (10.6) Net revenue 6.21% 58.25 56.52 Asset management costs (0.35%) (3.3) -3.
Slide 17: French GAAP / IFRS reconciliation
French GAAP / IFRS reconciliation 12/31/2008 12/31/2007 Change (€ '000s) Net profit under French GAAP 10.88 10.08 0.80 Reversal of depreciation, FMV in accordance with IAS 40 26.03 26.02 0.02 Mark-to-market of property assets in accordance with IAS 40 (93.75) 68.44 (162.18) Mark-to-market of exit ta
Slide 18: Bank financing and Covenants
Bank financing and Covenants Bank debt €379.9m drawn down €22.5m available for Dec.2009 exit tax installment Current LTV 40% Term March 2013 Interest rate 4.15% fixed, 4.25% if LTV > 60% No hedging instruments Main covenants Contract Current position LTV 70% 40% ICR 1.5 3.0 17
Slide 19: Solid and transparent yield: Net Asset Value
Solid and transparent yield Net Asset Value as at 31 December 2008 IPO 12/31/2008 12/31/2007 12/31/2006 3/31/2006 Net Asset Value (€m) 535 635 546 443 NAV per share (€) 40.0 47.5 40.9 33.1 Decrease in NAV since 2007 -16% Increase in NAV since IPO 21% 18
Slide 20: Solid and transparent yield: Dividend for 2008
Solid and transparent yield Dividend for the year 2008 12/31/2008 12/31/2007 12/31/2006 (€m) Dividend per share 1.95 1.95 1.84 Yield - On share price 2 day's prior to earnings release 9.70% 6.12% 5.10% - On IPO share price (March 2006) 6.13% 6.13% 5.79% Pay-out ratio on Recurring Cash Flow 70% 72% 1
Slide 21: Corporate
CORPORATE Shareholders & Share price Commerz Real Internal structure Changes under SIIC 5 Key points for 2008 Appendices 20
Slide 22: Stable shareholding
Stable shareholding Leading institutions Increasing granularity of the free float 19% Free float 67% 833 investors (+195 in 2008) Commerz Real for the fund hausInvest europa (Largest German open 14% ended fund) Covéa Group GMF-MMA-MAAF (+7% since March 2006) 21
Slide 23: German open funds
0 1 2 3 4 5 6 7 8 9 haus Inve Deka st eu -Imm ropa 8,5 obil ie nEur opa SEB 7,3 Imm oInv CS E est Source: BVI uror eal A UniI m E UR 6,3 6,3 mo: UniI m Euro mo: pa 5,7 KanA Deut schla m gr undi n d 5,2 nves t Fon AXA d s 4,7 Imm Wes osele tInve ct st In 3,7 terS el ect DEG 3,0 I Inte Deka rnatio -Im
Slide 24: Share price performance
Share price performance In line with its market Outperformed SIIC average since end-November 2008 1,40 Cegereal IEIF_SIIC_FR 1,20 CAC40 EPRA EUR 1,00 0,80 0,60 0,40 0,20 - nov.-08 juin-08 janv.-08 janv.-09 févr.-08 mars-08 avr.-08 mai-08 juil.-08 févr.-09 sept.-08 oct.-08 déc.-08 août-08 23
Slide 25: CeGeREAL Structure
CeGeREAL Structure CRI Covéa Free float Commerz Real Board of Directors AG Management team Framework agreement Transactions & Finance Asset Management Support functions Commerz Real External providers External providers Acquisitions Accounting/Reporting Asset Management Property Management Tax Finan
Slide 26: Changes under SIIC 5: Regulatory framework
Changes under SIIC 5 Regulatory framework Reminder of SIIC4 Main shareholder or those acting in concert allowed to exceed 60% ownership threshold if this is temporary and regularised during the current year SIIC 5 3-year prolongation (article 210E of the General Tax Code) Conformity with 60% t
Slide 27: Changes under SIIC 5: Benefits for Cegereal
Changes under SIIC 5 Benefits for Cegereal These changes in the SIIC rules are very beneficial as they will allow: An extra one year to bring Commerz Real’s stake to below 60%; The maintenance for three years of vendor advantages from selling assets to SIIC companies (tax rate reduced to 19%);
Slide 28: Key points for 2008
Key points for 2008 Real estate Financial 3 recent property complexes, which can Distributable earnings up 7.6% be easily sub-divided LTV of 40% at a fixed 4.15% to 2013 72% of leases renegotiated Net asset value down by 16% 93% of leases at very low risk of non- Dividend maintained at
Slide 29: Appendices
Appendices 28
Slide 30: Commerz Real
Commerz Real Commerzbank’s real estate division Commerzbank AG Commercial Real Estate EUROHYPO 29
Slide 31: Commerz Real: Organisation
Commerz Real Commerzbank Organisation Commerz Real Real estate assets Non real estate assets €32bn €11bn CRS Club deals CRI Tax mitigation products Public investments sold through the Non‐SIIC (supervised by BaFin) Commerzbank network Size < €50m €11bn hausInvest europa hausInvest global €9bn €2bn E