Slide 1: Investor Day – Journée Investisseurs
OPEN, ISSY-LES-MOULINEAUX (HAUTS-DE-SEINE) MONDAY, NOVEMBER 28, 2016 INVESTOR DAY JOURNÉE INVESTISSEURS
Slide 2: Disclaimer
Investor day – Monday, November 28, 2016 2 DISCLAIMER This presentation is not an offer or an invitation to sell or exchange securities, or a recommendation to subscribe, buy or sell Icade securities. Distribution of this document may be restricted in certain countries by legislation or regulations.
Slide 3: Introduction
OPEN, ISSY-LES-MOULINEAUX (HAUTS-DE-SEINE) INTRODUCTION André MARTINEZ Chairman of the Board of Directors
Slide 4: Icade well on track…
Introduction Investor day – Monday, November 28, 2016 4 ICADE WELL ON TRACK… One year after its strategic plan was announced, Icade has already made progress Icade is now a company: With a simplified shareholding structure, with two clearly-identifiable major shareholders: Caisse des Dépôts (39%) an
Slide 5: Icade well on track…
Introduction Investor day – Monday, November 28, 2016 5 ICADE WELL ON TRACK… A new, strengthened team supporting the CEO, Olivier Wigniolle A clear roadmap for 2019 backed by the entire Board of Directors An action plan for 2016 that has been fully implemented, much to the satisfaction of all direct
Slide 6: Agenda
1. Icade well on track to growth and performance 2. Commercial Property Investment: renewed growth dynamic AGENDA 3. Healthcare Property Investment: expansion and value creation 4. Property Development: return to performance in 2017 5. Outlook 2017/2018
Slide 7: Icade well on track to growth and performance
MILLÉNAIRE PARK VIEWED FROM VEOLIA’S NEW HEADQUARTERS BUILDING (19TH DISTRICT OF PARIS, AUBERVILLIERS) 1. ICADE WELL ON TRACK TO GROWTH AND PERFORMANCE Olivier WIGNIOLLE Chief Executive Officer
Slide 8: Our ambition
1. Icade well on track to growth and performance Investor day – Monday, November 28, 2016 8 OUR AMBITION 1. 2. TO FOCUS ON TO BE A OUR LEADERSHIP TOP-PERFORMING POSITIONS TO INTEGRATED FOSTER REAL ESTATE GROWTH AND COMPANY PERFORMANCE
Slide 9: Our business model: being an integrated real estate company
1. Icade well on track to growth and performance Investor day – Monday, November 28, 2016 9 OUR BUSINESS MODEL: BEING AN INTEGRATED REAL ESTATE COMPANY PROPERTY INVESTMENT 80% OFFICES €7.4bn DEVELOPMENT PORTFOLIO Thanks to Icade 1.2m sq.m Promotion, PROPERTY LAND BANK AND the Commercial Property PRO
Slide 10: Reminder of the strategic plan
1. Icade well on track to growth and performance Investor day – Monday, November 28, 2016 10 REMINDER OF THE STRATEGIC PLAN ANTICIPATED GROWTH IN THE PROPERTY PORTFOLIO (GROUP SHARE) FOR THE 2015-2019 PERIOD (€bn) PROPERTY DEVELOPMENT REVENUE 2.0 11.4 (€bn) 9.2 1.2 0.5 1,4 Project Owner (1.5) 1,3 As
Slide 11: Update on the implementation of the strategic plan
1. Icade well on track to growth and performance Investor day – Monday, November 28, 2016 11 UPDATE ON THE IMPLEMENTATION OF THE STRATEGIC PLAN Our 6 priorities for 2016 have all been successfully achieved Our action plan is on track, or even ahead of schedule Market conditions are favourable for ou
Slide 12: 2016 priorities: where do we stand?
1. Icade well on track to growth and performance Investor day – Monday, November 28, 2016 12 2016 PRIORITIES: WHERE DO WE STAND? 1 DISPOSAL OF THE PROPERTY SERVICES BUSINESS 4 START DEVELOPING SYNERGIES BETWEEN PROPERTY INVESTMENT AND DEVELOPMENT As of September 30, all of the Property Services Firs
Slide 13: Our action plan is on track (1/2)
1. Icade well on track to growth and performance Investor day – Monday, November 28, 2016 13 ... OUR ACTION PLAN IS ON TRACK (1/2) COMMERCIAL AND HEALTHCARE Accelerated acquisitions PROPERTY INVESTMENT 2016 to date: €400m for Commercial Property Investment and €107m for Healthcare Property Investmen
Slide 14: Our action plan is on track (2/2)
1. Icade well on track to growth and performance Investor day – Monday, November 28, 2016 14 ... OUR ACTION PLAN IS ON TRACK (2/2) The work already undertaken on liability optimisation has a positive impact on NCCF growth and contributes to step up the implementation of the plan: 50% of liabilities
Slide 15: Favourable market conditions for our 3 business areas
1. Icade well on track to growth and performance Investor day – Monday, November 28, 2016 15 FAVOURABLE MARKET CONDITIONS FOR OUR 3 BUSINESS AREAS OFFICES (1) HEALTHCARE French commercial property investment market: Active and attractive property investment market continued growth A mature market wi
Slide 16: Favourable market conditions for our 3 business areas
1. Icade well on track to growth and performance Investor day – Monday, November 28, 2016 16 FAVOURABLE MARKET CONDITIONS FOR OUR 3 BUSINESS AREAS PROPERTY DEVELOPMENT (1) Residential market: the rebound is confirmed Housing units put up for sale: + 17.3% in H1 2016 to 59,426 units Between June and
Slide 17: CSR / Innovation: strong commitments and widely acknowledged results
1. Icade well on track to growth and performance Investor day – Monday, November 28, 2016 17 CSR / INNOVATION: STRONG COMMITMENTS AND WIDELY ACKNOWLEDGED RESULTS CSR / Innovation commitments: Ongoing and completed projects to better serve - 40% reduction in CO2 intensity between 2011 and 2020 for Co
Slide 18: A relevant strategic plan and business model
1. Icade well on track to growth and performance Investor day – Monday, November 28, 2016 18 A RELEVANT STRATEGIC PLAN AND BUSINESS MODEL Three favourable markets Three positive years ahead of us Teams working in synergy to create more value First effects of Grand Paris Express, with a strong potent
Slide 19: Commercial Property Investment: renewed growth dynamic
ORIGINE (NANTERRE-PRÉFECTURE, HAUTS-DE-SEINE) 2. COMMERCIAL PROPERTY INVESTMENT: RENEWED GROWTH DYNAMIC Emmanuelle BABOULIN Member of the Executive Committee in charge of the Commercial Property Investment Division
Slide 20: Optimisation of the business park portfolio and rotation of assets
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 20 OPTIMISATION OF THE BUSINESS PARK PORTFOLIO AND ROTATION OF ASSETS IN THE OFFICE PORTFOLIO In line with announcements made in November 2015, Icade is refocusing on its business parks with a strong v
Slide 21: Value-creating investments
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 21 VALUE-CREATING INVESTMENTS Acquisition completed Acquisitions subject to preliminary agreements on November 28, 2016 on November 28, 2016 ORSUD BUILDING PARISSY BUILDING ARC OUEST BUILDING in Gentil
Slide 22: Value-creating investments
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 22 VALUE-CREATING INVESTMENTS Total amount of acquisitions of €400.5m that will generate an annual rental income of €22.2m "Core+ or Value-add" investments with a potential for redevelopment 2016 acqui
Slide 23: Spotlight on the Orsud building in Gentilly
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 23 SPOTLIGHT ON THE ORSUD BUILDING IN GENTILLY (94) KEY FACTS Acquisition date: July 20, 2016 Annual rental income: €3m Net initial yield: 6% Tenants: fully leased to Chronopost, La Poste, Locaposte, I
Slide 24: Spotlight on the Orsud building in Gentilly
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 24 SPOTLIGHT ON THE ORSUD BUILDING IN GENTILLY (94) DESCRIPTION OF THE BUILDING Building with an excellent visibility, in South Paris next to the ring road Architectural design: Olivier-Clément Cacoub
Slide 25: Spotlight on the Orsud building in Gentilly
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 25 SPOTLIGHT ON THE ORSUD BUILDING IN GENTILLY (94) A BUILDING THAT SATISFIES ICADE'S INVESTMENT CRITERIA Net initial yield of 6% Enviable location Fully leased to first-class tenants VALUE CREATION PO
Slide 26: Developing synergies between investment and development
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 26 DEVELOPING SYNERGIES BETWEEN COMMERCIAL PROPERTY INVESTMENT AND PROPERTY DEVELOPMENT Stronger collaboration between the teams and centralisation of the procurement function The Property Development
Slide 27: A very significant development pipeline
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 27 A VERY SIGNIFICANT DEVELOPMENT PIPELINE 155,232 sq.m PORTES DE PARIS DEVELOPMENT PIPELINE BUSINESS PARK FOR 2020 180,900 sq.m 300,000 sq.m PDM1 (25,000 sq.m) Offices Îlot E (28,000 sq.m) Business pa
Slide 28: Development pipeline
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 28 DEVELOPMENT PIPELINE Floor area Investment Yield on cost Project Geographic area (sq.m) (€M) (3) Completion Pre-leasing PROJECTS STARTED 135.1 6.0% DÉFENSE 4-5-6 OFFICES NANTERRE PRÉFECTURE 15,850 1
Slide 29: Spotlight on Îlot E: Pulse Saint-Denis
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 29 SPOTLIGHT ON ÎLOT E ("BLOCK E"): PULSE SAINT-DENIS (SEINE-ST-DENIS) TRANSPORT ROAD ACCESS Ring road: "Porte de la Chapelle" and "Porte d’Aubervilliers" exits Motorway: A1, "Porte de la Chapelle" exi
Slide 30: Spotlight on Îlot E: Pulse Saint-Denis
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 30 SPOTLIGHT ON ÎLOT E ("BLOCK E"): PULSE SAINT-DENIS (SEINE-ST-DENIS) CHARACTERISTICS 8-storey, timber-framed office building Architect: Fassio-Viaud Architectes 28,000 sq.m 2 underground levels with
Slide 31: Future value creation within Icade's portfolio
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 31 FUTURE VALUE CREATION WITHIN ICADE'S PORTFOLIO ROISSY - PARIS NORD 2 30,000 - 50,000 sq.m ROISSY – PARIS NORD 2 30,000 - 50,000 sq.m PORTES DE PARIS Remaining buildable area to be defined BUSINESS P
Slide 32: "Coach your growth" marketing plan for business parks
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 32 "COACH YOUR GROWTH" MARKETING PLAN FOR BUSINESS PARKS: OUR BUSINESS PARKS ARE REGAINING THEIR LEADERSHIP! CLEAR OBJECTIVES Increase the attractiveness of our business parks in order to retain our te
Slide 33: Actions implemented based on 3 commitments
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 33 ACTIONS IMPLEMENTED BASED ON 3 COMMITMENTS TURN OUR BUSINESS PARKS INTO OFFER OUR TENANTS CREATE A SHARING HIGH-QUALITY, EXEMPLARY QUALITY OF LIFE AND LEARNING COMMUNITY BUSINESS PARKS IN TERMS OF C
Slide 34: Outlook 2017/2019
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 34 OUTLOOK 2017/2019 Strong efforts on rental issues and completion of the rollout of actions from the marketing plan for business parks: continued rise in financial occupancy rate Asset rotation: sale
Slide 35: Outlook 2017/2019
2. Commercial Property Investment: renewed growth dynamic Investor day – Monday, November 28, 2016 35 OUTLOOK 2017/2019 Stronger partnerships with local authorities in order to develop new projects within our land bank Rollout of CSR actions to improve the quality of the portfolio. Budget and action
Slide 36: Healthcare Property Investment: expansion and value creation
PONT DE GIEN PRIVATE HOSPITAL (LOIRET) RAMSAY GÉNÉRALE DE SANTÉ 3. HEALTHCARE PROPERTY INVESTMENT: EXPANSION AND VALUE CREATION Françoise DELETTRE CEO of Icade Santé Member of the Executive Committee in charge of the Healthcare Property Investment Division
Slide 37: Sustained growth since 1945
3. Healthcare Property Investment: expansion and value creation Investor day – Monday, November 28, 2016 37 SUSTAINED GROWTH HOSPITAL EXPENDITURES IN FRANCE OVER 2004-2015 SINCE 1945 (€bn) 90,8 6,0% 100,0 5.2% 86,7 88,6 82,4 84,5 80,2 90,0 76,2 79,2 73,6 5,0% 71,1 80,0 65,9 68,5 3,9% 70,0 4,0% Agein
Slide 38: Segments of the healthcare market
3. Healthcare Property Investment: expansion and value creation Investor day – Monday, November 28, 2016 38 SEGMENTS OF THE HEALTHCARE MARKET HEALTH SECTOR (ICADE SANTÉ’S TARGET) MEDICAL-SOCIAL SECTOR Short-term care facilities: MSO (1) Medium-term care facilities: Long-term care facilities: EHPAD…
Slide 39: A sustainable mixed model where the private sector plays a key role
3. Healthcare Property Investment: expansion and value creation Investor day – Monday, November 28, 2016 39 BREAKDOWN OF STAYS IN MSO FACILITIES A SUSTAINABLE MIXED MODEL WHERE IN 2014 BY SECTOR AND TYPE THE PRIVATE SECTOR PLAYS A KEY ROLE Outpatient 3.4m 0.6m 3.0m In France, hospital care (short-te
Slide 40: A sustainable mixed model where the private sector plays a key role
3. Healthcare Property Investment: expansion and value creation Investor day – Monday, November 28, 2016 40 A SUSTAINABLE MIXED MODEL WHERE THE PRIVATE SECTOR PLAYS A KEY ROLE MARKET SHARE (HEALTH SECTOR) Market consolidation continues among the main private hospital operators 4 major national healt
Slide 41: A full-fledged asset class
3. Healthcare Property Investment: expansion and value creation Investor day – Monday, November 28, 2016 41 A FULL-FLEDGED ASSET CLASS Portfolio Investor 06/30/2016 Sector Players are increasingly active in a growing market €3.4bn Health Icade Santé, a French listed real estate investment company (S
Slide 42: A very attractive risk/return profile
3. Healthcare Property Investment: expansion and value creation Investor day – Monday, November 28, 2016 42 A VERY ATTRACTIVE Resilient yields compared to other asset classes RISK/RETURN PROFILE A historically high premium to the 10-year treasury bond With the development of a secondary market and t
Slide 43: Icade Santé's portfolio as of September 30, 2016
3. Healthcare Property Investment: expansion and value creation Investor day – Monday, November 28, 2016 43 ICADE SANTÉ’S PORTFOLIO BREAKDOWN BY OPERATOR AS OF JUNE 30, 2016 (as a % of portfolio value) AS OF SEPTEMBER 30, 2016 39.4% Elsan 95 facilities owned by Icade Santé - 11 partner operators €3.
Slide 44: An active and highly competitive market
3. Healthcare Property Investment: expansion and value creation Investor day – Monday, November 28, 2016 44 AN ACTIVE AND HIGHLY COMPETITIVE MARKET Healthcare has become a full-fledged asset class and is attracting many investors, both in the health and medical-social segments Investments are often
Slide 45: Changes in the healthcare property investment's portfolio
3. Healthcare Property Investment: expansion and value creation Investor day – Monday, November 28, 2016 45 CHANGES IN THE HEALTHCARE PROPERTY INVESTMENT’S PORTFOLIO 06/30/2015 72 facilities 06/30/2016 95 facilities Portfolio value: €2.5bn excl. duties Portfolio value: €3.4bn excl. duties
Slide 46: Synergies with Icade Promotion are getting stronger
3. Healthcare Property Investment: expansion and value creation Investor day – Monday, November 28, 2016 46 BEYOND PROFITABILITY, SYNERGIES WITH ICADE PROMOTION ARE GETTING STRONGER A synergy was initiated in 2008 through project owner assistance with the Property Development division The synergy wa
Slide 47: Growth outlook for 2019: investments and rental income
3. Healthcare Property Investment: expansion and value creation Investor day – Monday, November 28, 2016 47 GROWTH OUTLOOK FOR 2019: INVESTMENTS AND RENTAL INCOME A 3-year ambitious and proactive plan (2017-2019) Including €300m of acquisitions already identified Including €250m construction work an
Slide 48: Conclusion: strategy and outlook 2017/2019
3. Healthcare Property Investment: expansion and value creation Investor day – Monday, November 28, 2016 48 CONCLUSION: STRATEGY AND OUTLOOK 2017/2019 Continue acquisitions and developments while supporting our partner healthcare operators Focus on facilities operated by large operators and/or major
Slide 49: Property Development: return to performance in 2017
CARRÉ DE SOIE, (VILLEURBANNE, 69) 4. PROPERTY DEVELOPMENT: RETURN TO PERFORMANCE IN 2017 Maurice SISSOKO Member of the Executive Committee in charge of the Property Development Division
Slide 50: A favourable market
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 50 A FAVOURABLE MARKET RESIDENTIAL: STRONG GROWTH IN THE NEW BUILD MARKET Historically low interest rates Attractive borrowing costs for home buyers Low interest rates paid for personal savings Favour
Slide 51: Icade in the French property development market
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 51 ICADE IN THE FRENCH PROPERTY DEVELOPMENT MARKET: LEADER IN THE COMMERCIAL SEGMENT, 6TH LARGEST PLAYER IN THE RESIDENTIAL SEGMENT MARKET SHARES OF THE MAIN PROPERTY DEVELOPERS, RANKING OF OFFICE DEVELOP
Slide 52: Commercial, healthcare and public facilities: distinctive positioning
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 52 COMMERCIAL, HEALTHCARE AND PUBLIC FACILITIES: HIGH FINANCIAL STAKES, A DISTINCTIVE POSITIONING COMMERCIAL REAL ESTATE Icade Promotion is a major player in the office market and, as part of an opportuni
Slide 53: A leading position in commercial real estate
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 53 A LEADING POSITION IN COMMERCIAL REAL ESTATE SKY 56, A landmark project PANORAMA T6, the first bridge-shaped in the revitalisation of the Part-Dieu building in Paris district in Lyon 30,700 sq.m total
Slide 54: Commercial, healthcare and public facilities: distinctive positioning
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 54 COMMERCIAL, HEALTHCARE AND PUBLIC FACILITIES: HIGH FINANCIAL STAKES, A DISTINCTIVE POSITIONING HEALTHCARE AND PUBLIC AMENITIES Icade operates on this market by building on its historical synergies with
Slide 55: Completed projects that reflect our distinctive identity (1/2)
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 55 COMPLETED PROJECTS THAT REFLECT OUR DISTINCTIVE IDENTITY (1/2) MONTPELLIER HIGH-SPEED GREAT STADIUM OF THE TRAIN STATION FRENCH RUGBY FEDERATION New multimodal transport hub of the 82,000-seat multi-pu
Slide 56: Completed projects that reflect our distinctive identity (2/2)
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 56 COMPLETED PROJECTS THAT REFLECT OUR DISTINCTIVE IDENTITY (2/2) SOUTH NICE TRAIN STATION, IN AN URBAN AREA ON THE SITE ON THE FORMER PROVENCE TRAIN STATION The project includes the completion of the fol
Slide 57: Strong recovery in business indicators
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 57 STRONG RECOVERY IN BUSINESS INDICATORS IN A DYNAMIC MARKET ENVIRONMENT Total backlog of over €1.6bn: including a commercial backlog of €637m and a residential backlog of €984m, equivalent to 19 months
Slide 58: Land portfolio, properties put on the market and reservations
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 58 LAND PORTFOLIO, PROPERTIES PUT ON THE MARKET AND RESERVATIONS: INDICATORS ON THE RISE LAND PORTFOLIO RESERVATIONS AND PROPERTIES PUT ON THE MARKET (in €m including taxes) (units) 2,063 5,032 1,733 1,77
Slide 59: Actions already undertaken to improve performance
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 59 ACTIONS ALREADY UNDERTAKEN TO IMPROVE PERFORMANCE REMINDER OF 2015 FIGURES Return On Equity: 4.3% (1) Operating margin: 5.3% (2) Significant potential for improvement compared to peers ICADE PROMOTION
Slide 60: 4 ways to develop the business
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 60 4 WAYS TO DEVELOP THE BUSINESS 1. Implement a more ambitious land acquisition policy to build a portfolio with different maturities 2. Broaden the range of new build properties (currently narrower than
Slide 61: 3 ways to optimise the design-build-sell process
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 61 3 WAYS TO OPTIMISE THE DESIGN-BUILD-SELL PROCESS 1. Offer a consistent product range across all our locations 2. Create a strong technical department for the whole country THEME 2 3. Optimise distribut
Slide 62: How to develop today's and tomorrow's synergies
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 62 HOW TO DEVELOP TODAY'S AND TOMORROW'S SYNERGIES 1. Own-account Delegated Project Management revenues (projects secured for the Icade Group's own account and to be carried by 2020) for the Commercial an
Slide 63: How to improve business management and the organisational structure
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 63 HOW TO IMPROVE BUSINESS MANAGEMENT AND THE ORGANISATIONAL STRUCTURE 1. Optimisation of support functions together with the other entities: implementation scheduled for H2 2017 THEME 4 2. A centralised
Slide 64: How to step up digital transformation
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 64 HOW TO STEP UP DIGITAL TRANSFORMATION 1. Digital transformation: Implementation of a digital strategy specific to the property development activity, based on the innovation strategy (Launch of an audit
Slide 65: 2018 performance objectives
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 65 2018 PERFORMANCE OBJECTIVES Optimised capital allocation since 2015 Allocated capital went down from €445m as of June 30, 2015 to €342m as of June 30, 2016 Further reduction in the capital allocate
Slide 66: 2017 priorities
4. Property Development: return to performance in 2017 Investor day – Monday, November 28, 2016 66 2017 PRIORITIES Develop our land portfolio in all our business areas Consolidate our leading position in the commercial segment, especially by relying on the Property Investment Division Set up partner
Slide 67: Outlook 2017/2018
GRAND PHARE (ISSY-LES-MOULINEAUX, HAUTS-DE-SEINE) 5. OUTLOOK 2017/2018 Olivier WIGNIOLLE Chief Executive Officer Victoire AUBRY Member of the Executive Committee in charge of Finance, IT and Legal
Slide 68: Cash flow growth to be exacerbated by debt restructuring
5. Outlook 2017/2018 Investor day – Monday, November 28, 2016 68 CASH FLOW GROWTH TO BE EXACERBATED BY DEBT RESTRUCTURING The average cost of debt has benefited from market conditions in 2016 Two bond issues on attractive terms: At the end of May, €750m with a 10-year maturity and a coupon of 1.75
Slide 69: Property development: volume and profitability objectives confirmed
5. Outlook 2017/2018 Investor day – Monday, November 28, 2016 69 PROPERTY DEVELOPMENT: VOLUME AND PROFITABILITY OBJECTIVES CONFIRMED 2018 REVENUE FORECAST (€bn) Revenues of €1.3bn in 2018 1,4 €1.3bn Backlog growing sharply, especially in the residential segment Very buoyant pipeline 1,3 Project Owne
Slide 70: Ambition confirmed regarding the portfolio
5. Outlook 2017/2018 Investor day – Monday, November 28, 2016 70 AMBITION CONFIRMED REGARDING THE PORTFOLIO 2.0 €11.4bn Objective: portfolio growth of + 24% to €11.4bn in 4 years €9.2bn 1.2 0.5 In 2016, we are ahead of schedule regarding the initial trend (1.5) Acquisitions (close to 40% (1) compl
Slide 71: Conclusion
5. Outlook 2017/2018 Investor day – Monday, November 28, 2016 71 CONCLUSION Strong momentum for office assets: developments and acquisitions Effects of the action plan on business parks: increased occupancy rates Further expansion of the Healthcare Property Investment Division and increased property
Slide 72: Outlook for 2016 and 2017/2018 NCCF; dividend policy
5. Outlook 2017/2018 Investor day – Monday, November 28, 2016 72 OUTLOOK FOR 2016 AND 2017/2018 2016: growth forecast of 7% to 8% NCCF (vs. growth of > 3%, announced in July 2016) DIVIDEND Based on the change in NCCF PER SHARE POLICY CONTINUED POSITIVE IMPACTS OF ACTIONS IMPLEMENTED AND EFFORTS ON N