Slide 1: Presentation HY 2024
THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES PRESENTATION HY 2024 Manager and general partner of SELECTIRENTE www.selectirente.com Listed property company for retail properties
Slide 2: Disclaimer
DISCLAIMER DISCLAIMER This document has been prepared by SELECTIRENTE (the "Company") for information purposes only, as a supplement to information published elsewhere by SELECTIRENTE. This document may not be reproduced or distributed, in whole or in part, by any person other than the Company. To t
Slide 3: Summary
SUMMARY SOMMAIRE 1. SELECTIRENTE IN A NUTSHELL 3 2. COMMERCIAL PROPERTY: A RESILIENT MARKET 9 3. SELECTIRENTE: RESILIENCE & VALUE CREATION 16 A. STRATEGY & FUNDAMENTALS 17 B. ESG COMMITMENTS 21 C. RIGOUROUS AND DYNAMIC PORTFOLIO MANAGEMENT 25 4. SELECTIRENTE: ROBUST OPERATIONAL AND FINANCIAL PERFORM
Slide 4: Selectirente in a nutshell
1 SELECTIRENTE IN A NUTSHELL 4 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 5: Evolution of the company
EVOLUTION OF THE COMPANY OBJECTIFS DE L’OPÉRATION STRONG GROWTH AND SIGNIFICANT DEVELOPMENT SINCE 2019 ▪ €217m capital increase in December 2019 ▪ Investment ~ €325m in 2020 / 2021 / 2022 / 2023 ▪ SELECTIRENTE's operational and financial performance is constantly improving with the aim of becoming a
Slide 6: Selectirente in a nutshell (1/2)
SELECTIRENTE IN A NUTSHELL ( 1 / 2 ) As at 30/06/2024 ▪ Created in 1997 on the initiative of SOFIDY and property professionals, SELECTIRENTE is €89.33 per share a listed property company specialised in the purchase of local retail premises in city centers €575m EPRA NAV NDV (vs €90.31 as at 31/12/20
Slide 7: Selectirente in a nutshell (2/2)
SELECTIRENTE IN A NUTSHELL ( 2 / 2 ) EXPERT IN PROPERTY MANAGEMENT AND INVESTMENT A PROPERTY COMPANY THAT CREATES VALUE FOR ITS SHAREHOLDERS Jérôme DESCAMPS has been Chairman of SELECTIRENTE Gestion since March Outperformance of the stock compared to its benchmark 2021. He has more than 20 years of
Slide 8: A unique and opportunistic investment in real estate
A UNIQUE AND OPPORTUNISTIC INVESTMENT IN REAL ESTATE A niche and resilient asset class with strong growth opportunities A high quality, well-diversified portfolio, mainly located in Paris and in the city centers of major French metropolises, generating stable and predictable cash flow over the long
Slide 9: Commercial property: a resilient market
2 COMMERCIAL PROPERTY: A RESILIENT MARKET 9 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 10: Resilient economies and rising forecasts, despite a deteriorating economic climate
RESILIENT ECONOMIES AND RISING FORECASTS, DESPITE A STILL DETERIORATING ECONOMIC CLIMATE Despite a still uncertain macroeconomic environment, with growth hesitating, a disinflation cycle is slowly Retail investment by quarter being confirmed and forecasts have been revised upwards for 2024. In Franc
Slide 11: Zoom on Paris, the driving force behind retail activity
RESILIENT ECONOMIES AND RISING FORECASTS, DESPITE A STILL DETERIORATING ECONOMIC CLIMATE ZOOM ON PARIS – Paris, the driving force behind retail activity ▪ Increased footfall and dynamic high street shopping, with a marked return of air traffic to the Île- Geographical breakdown of retail investment
Slide 12: Good momentum for retail stores and city centres
GOOD MOMENTUM FOR RETAIL STORES AND CITY CENTRES DESPITE THE UNCERTAIN ENVIRONMENT Household consumption: 75% of French people try to shop in physical stores rather than on +0.7% the internet ** estimated in 2024 of consumers believe that physical shops are an important Retail investment: 64% contac
Slide 13: Trade as a French national issue
TRADE AS A FRENCH NATIONAL ISSUE As the largest economic sector in France, accounting for more than 3 million jobs, trade has seen an accelerated changes since the beginning of the pandemic • New consumption patterns • Need for digital transformation Given their role as key factors in the dynamism o
Slide 14: Local retailing, still a good investment opportunity in France
LOCAL RETAILING, STILL A GOOD INVESTMENT OPPORTUNITY IN FRANCE Against a relatively turbulent macroeconomic backdrop, city-centre retail property continues to prove its resilience and remains promising. Footfall in city-centres continues to rise, fuelled by the French people's attachment to their lo
Slide 15: Outlook for the second half of 2024
OUTLOOK FOR THE SECOND HALF OF 2024 Despite the increasing number of geopolitical, economic and sectoral crises, the retail store sector continues to demonstrate its resilience. Even though the property risk premium has rebounded this half-year, to +99 bp, notably in anticipation of the easing of ke
Slide 16: Selectirente: resilience & value creation
3 SELECTIRENTE: RESILIENCE & VALUE CREATION 16 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 17: Strategy & fundamentals
3 SELECTIRENTE: RESILIENCE & VALUE CREATION A. STRATEGY & FUNDAMENTALS 17 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 18: DNA of the SIIC
DNA OF THE SIIC L’ADN DE LA SIIC ▪ Managed by SELECTIRENTE GESTION: a subsidiary wholly owned by SOFIDY, one of the main players in real estate fund management, belonging to the TIKEHAU CAPITAL Group (AUM €45.6bn as at 30/06/2024) ▪ One of the only pure player European listed property companies in c
Slide 19: High profile shareholders
HIGH PROFILE SHAREHOLDERS UN ACTIONNARIAT DE PREMIER PLAN A specialist property company, supported by financial industry experts and committed shareholders Breakdown of SELECTIRENTE’s share capital at 30/06/2024 (Indicative data to the Company’s knowledge) 18% 1 14% 55% 1 4% 9% Misc. Institutional a
Slide 20: A dual growth strategy
A DUAL GROWTH STRATEGY ABILITY TO IDENTIFY PROJECTS THAT WILL CREATE VALUE 1. The local retail trade mainly… Retailers and brands in city centers, mainly in Paris and the Île-de-France region, with particular attention paid to the reputation of tenants and sectoral diversification 2. …and an opportu
Slide 21: ESG commitments
3 SELECTIRENTE: RESILIENCE & VALUE CREATION B. ESG COMMITMENTS 21 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 22: ESG commitments (1/3) Social
ESG COMMITMENTS ( 1/3 ) SELECTIRENTE is the only listed French real estate company to own a large majority of ground floor retail properties. At the end of January 2023, SELECTIRENTE published its Sustainable Development Commitments. SOCIAL In order to promote the economic development of city center
Slide 23: ESG commitments (2/3) Environment
ESG COMMITMENTS ( 2/3 ) SELECTIRENTE is aware of the ecological issues at stake and has taken numerous measures to ENVIRONMENT ensure that its activities are environmentally friendly. The Company is therefore committed to : Monitoring and reducing the GHG emissions and energy consumption of its asse
Slide 24: ESG commitments (3/3) Governance
ESG COMMITMENTS ( 3/3 ) SELECTIRENTE aims to make ESG issues an intrinsic feature of its governance policy. To achieve this GOVERNANCE objective, the Company is committed to : Integrating ESG issues into investment and tenant selection → Exclusion policy implemented since 2022 for 100% of tenants du
Slide 25: Rigorous and dynamic portfolio management
3 SELECTIRENTE: RESILIENCE & VALUE CREATION C. RIGOUROUS AND DYNAMIC PORTFOLIO MANAGEMENT 25 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 26: Creation of value for shareholders
CREATION OF VALUE FOR SHAREHOLDERS Outperformance of the stock compared to its benchmark CHANGE IN DIVIDENDS (IN € / SHARE) OUTPERFORMANCE OF THE STOCK COMPARED TO ITS BENCHMARK 3,80 4.0 3.45 3.50 3.60 3.20 3.25 2,80 2.90 (Basis 100 – IPO) 2015 2016 2017 2018 2019 2020 2021 2022 2023 CHANGE IN EPRA
Slide 27: Diversification of the portfolio at the end of June 2024
DIVERSIFICATION OF THE PORTFOLIO AT THE END OF JUNE 2024 A diversified portfolio of high quality, directly owned properties, with 85% of the portfolio consisting of city-centre retail properties, more than 60% of which are located in Paris proper Distribution of the direct real estate portfolio by G
Slide 28: Dynamic rental management – evolution & resilience
DYNAMIC RENTAL MANAGEMENT – EVOLUTION & RESILIENCE ▪ SELECTIRENTE: excellent track record in the retail sector, recognized in the property industry ▪ Manager SELECTIRENTE Gestion : in-depth knowledge of the rental market based on unique and proven expertise ▪ Property management entrusted to SOFIDY,
Slide 29: Long-term cash flow visibility and recurring value creation
LONG-TERM CASH FLOW VISIBILITY AND RECURRING VALUE CREATION Lease schedule at 31/12/2023 Dynamic historic rental management Number of Loyers Previous Loyers Annual Indemnités de expiring leases Gestion Annual annual Allowances for rental Number Surface Area annuels annuels rents Variation déspéciali
Slide 30: A strategy of recurrent arbitrage
Format en tête à modifier A STRATEGY OF RECURRENT ARBITRAGE BY SELECTIRENTE Since its creation, SELECTIRENTE has demonstrated its great resilience and ability to create value by selling non-strategic or mature assets at attractive prices to optimise its portfolio CREATING VALUE REFOCUSING THE ASSETS
Slide 31: Examples of successful asset management
Format en tête à modifier EXAMPLES OF SUCCESSFUL ASSET MANAGEMENT Value accretion Value accretion Value accretion through Leasing Through Leasing through Renewal 2023 2024 2023 COMMERCIAL PREMISES COMMERCIAL PREMISES COMMERCIAL PREMISES Rue Rambuteau - Paris 3ème Rue de la Verrerie - Avenue Victor H
Slide 32: Some examples of assets
SOME EXAMPLES OF ASSETS Lyon (69) – rue Sainte-Catherine Neuilly-sur-Seine (92) – rue Achille Peretti Paris 1er – rue Coquillière Toulouse (31) – rue de Metz Paris 7e – place du Palais Bourbon Bordeaux (33) – place des Grands Hommes Paris 3e – rue Rambuteau Paris 7e – place Joffre Rouen (76) – rue d
Slide 33: Portfolio - diversification & value creation
PORTFOLIO - DIVERSIFICATION & VALUE CREATION Some examples of our flagship assets... Avenue Achille Peretti Avenue des Ternes Rue de Rivoli Neuilly sur Seine (92) Paris (17th) Paris (1st) • Acquired in 2011 • Acquired in 2021 • Acquired in 2024 • Purchase price ex. taxes: €9m • Purchase price ex. ta
Slide 34: Portfolio - diversification & value creation
PORTFOLIO - DIVERSIFICATION & VALUE CREATION Diversification et création de valeur Some examples of our flagship assets... Rue du Gros Horloge Rue de Rivoli Place Wilson Rouen (76) Paris (1st) Toulouse (31) • Acquired in 2014 • Acquired in 2020 • Acquired in 2014 • Purchase price ex. taxes: €1.6m •
Slide 35: Portfolio - diversification & value creation
PORTFOLIO - DIVERSIFICATION & VALUE CREATION Diversification et création de valeur Some examples of our flagship assets... Cours de l’Intendance Avenue de Suffren Rue de Metz Bordeaux (33) Paris (15th) Toulouse (31) • Acquired in 2019 • Acquired in 2020 • Acquired in 2021 • Purchase price ex. taxes:
Slide 36: Portfolio - latest acquisitions 2022
PORTFOLIO - LATEST ACQUISITIONS - 2022 LES DERNIÈRES ACQUISITIONS The Grands Hommes shopping mall Bordeaux (33) • Acquired in 2022 • Purchase price ex. taxes: €22.5m • Shopping mall consisting of 12 shops and a coworking space, for a total surface area of 3,000 m2 • Golden Triangle of Bordeaux An em
Slide 37: Portfolio – among the most emblematic assets
PORTFOLIO – AMONG THE MOST EMBLEMATIC ASSETS LES DERNIÈRES ACQUISITIONS FOCUS Acquisition in June 2022 of 22 retail units and one office: ➢ Total purchase price (AEM): €72m, the highest investment in the Company's history Portfolio ➢ Ongoing value creation - appraisal value rising: +3.5% in 2023 UNI
Slide 38: Strong operational and financial performance
4 STRONG OPERATIONAL AND FINANCIAL PERFORMANCE 38 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 39: Evolution since 2019
4 STRONG OPERATIONAL AND FINANCIAL PERFORMANCE A. EVOLUTION SINCE 2019 39 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 40: Sustained growth since the last capital increase (Dec 2019)
SUSTAINED GROWTH SINCE THE LAST CAPITAL INCREASE (DEC 2019) PORTFOLIO (appraisal value excluding tranfer duties) (In €m) 570 €30.3m 2019 capital €577m 532 increase - €575m* 470 €217m €16m 366 €315m 370 270 170 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 S1 2024 Portfolio value Rent Number
Slide 41: Key figures since December 2019
KEY FIGURES SINCE DECEMBER 2019 31/12/2019 30/06/2024 Value of the overall portfolio €315m €575m Number of assets 291 High financial 406 occupancy rate: Number of leases 366 ~95 % 532 Rents of the leased portfolio €31m (on an annual basis) €16m Leased area 81,525 sqm 100,000 sqm EPRA LTV 0% 37.5 % (
Slide 42: Investments since December 2019
INVESTMENTS SINCE DECEMBER 2019 In December 2019, SELECTIRENTE completed a €217m capital increase, welcoming new shareholders (Sogecap, Capimmo, Amundi, Ceptentrion, Clay AM...), and reimbursed a €25m corporate loan for the acquisition of the Lutèce 2 portfolio (33 shops in Paris) as well as the reg
Slide 43: Recent highlights
RECENT HIGHLIGHTS 2021 ▪ Transformation into a joint stock company ▪ Creation of a dedicated and experienced management team, SELECTIRENTE Gestion, chaired by Jérôme DESCAMPS ▪ Strong growth in operational and financial performance ▪ Assets under management exceeded €500m, sustained growth by taking
Slide 44: Overall debt: outstanding capital by year
OVERALL DEBT: OUTSTANDING CAPITAL BY YEAR - AT 30/06/2024 Evolution of the outstanding capital by year and by type of debt As at 30/06/2024: Amortizable mortgage debt • Outstanding bank debt: €217m Outstanding Capital (M€) Corporavte debt • Cash and cash equivalents: €2.7m • Undrawn bank financing:
Slide 45: Evolution of the financing structure
EVOLUTION OF THE FINANCING STRUCTURE ÉVOLUTION DE LA STRUCTURE DE FINANCEMENT STRUCTURING OPERATION TO ACCELERATE THE COMPANY'S GROWTH In February 2022 with BECM, HSBC, Crédit du Nord and Société Générale ▪ Corporate loan of €100m - mainly to repay portions of the pre-existing mortgage debt (€84m) ▪
Slide 46: Highlights & performance at 30/06/2024
4 STRONG OPERATIONAL AND FINANCIAL PERFORMANCE B. HIGHLIGHTS & PERFORMANCE AT 30/06/2024 46 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 47: Highlights
HIGHLIGHTS Robust operating and financial performance Very dynamic rental activity Continued optimisation of assets through a particularly successful programme of strategic arbitrages Resilience of asset valuations Consolidation of the financial structure Affirmation of the Company's sustainable and
Slide 48: Key figures of the 1st semester 2024
KEY FIGURES OF THE 1ST SEMESTER 2024 €575m 94.6% 406 Assets Value of assets Average annual financial excluding transfer duties occupancy rate and 532 tenants €15.0m €2.56/share €3.17/share Gross rental income EPRA Earnings IFRS net income (Stable vs H1 2023) (vs €2.61 /share in H1 2023) (vs. €1.2 /s
Slide 49: EPRA KPI
EPRA KPI (European Public Real Estate Association) European Association of Listed Real Estate Companies Selectirente has been a member of EPRA since the beginning of 2021. In September 2024, for the third year KPI EPRA 30/06/2024 31/12/2023 running, the EPRA granted SELECTIRENTE en M€ €/action en M€
Slide 50: Performance praised by media
PERFORMANCE PRAISED BY MEDIA LA FONCIÈRE COTÉE SPÉCIALISÉE EN COMMERCES DE PROXIMITÉ EN CENTRE VILLE 50
Slide 51: Outlook
4 STRONG OPERATIONAL AND FINANCIAL PERFORMANCE C. OUTLOOK 51 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 52: Outlook (1/2)
OUTLOOK ( 1 / 2 ) PERSPECTIVES Pursuing the wise and selective growth dynamic… ▪ By capitalising on: - its resilient asset base, with strong cash flow generation and positive valuation trends - its solid investment fundamentals - its strengthened financial structure - its goal to reach critical size
Slide 53: Outlook (2/2)
OUTLOOK ( 2 / 2 ) ….and keeping the value creation strategy ▪ through disciplined and rigorous property management based on the expertise and track record of the operational teams (property and asset management) ▪ by using the dynamics of increasing densification of large metropolises and the attrac
Slide 54: Follow us on LinkedIn
Suivez-nous sur LinkedIn https://www.linkedin.com/company/selectirente/ www.selectirente.com