Slide 1: Annual General Meeting – Annual Results 2014/2015
Annual General Meeting ANNUAL RESULTS 30 June 2015 2014/2015 Brussels, 23 October 2015 -1-
Slide 2: Table of contents
Table of contents > Strategy and achievements > Portfolio analysis > Financials > Shares & shareholders > Outlook > Conclusion -2-
Slide 3: Strategy and achievements
Strategy and achievements -3-
Slide 4: Aedifica
Aedifica > Belgian REIT (RREC/SIR/GVV) − market cap > €820 m > Focusing on “housing with care”: Senior housing − demographic evolution: ageing > Focusing on Western Europe − Belgium − Germany -4-
Slide 5: 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 6: Milestones
Milestones 10 years evolution Investment properties at fair value €m CAGR: 28% -6-
Slide 7: 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) -7-
Slide 8: 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) -8-
Slide 9: Corporate identity
Corporate identity > New logo and new corporate slogan -9-
Slide 10: 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 11: Investment activity QTD 2015/2016
Investment activity QTD 2015/2016 Since capital increase of June 2015 (As of 5 October 2015) > 4 additions in Belgium − Résidence de La Houssière (Braine-le-Compte) − Senior Flandria (Bruges) − Vinkenbosch (Hasselt) (+ project) − Heydeveld (Opwijk) (+ project) > 1 project subject to outstanding cond
Slide 12: Investment activity QTD 2015/2016
Investment activity QTD 2015/2016 Since capital increase of June 2015 (in € m illion) Marketable Developm ent Total investm ent projects properties Résidence de la Houssière Belgium 10 - 10 Senior Flandria Belgium 10 - 10 Mechelen Belgium - 17 17 Vinkenbosch Belgium 4 12 16 Kalletal (extension) Germ
Slide 13: Portfolio analysis
. . Ae Portfolio analysis social housing with care -13-
Slide 14: 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 15: Investment activity in Germany (1)
Investment activity in Germany (1) Rheinbach Wenden-Rothemühle Olpe-Rüblinghause Bad Harzburg Kalletal Kirchlengern Enger Kierspe -15-
Slide 16: Investment activity in Germany (2)
Investment activity in Germany (2) Service-Residenz Schloss Bensberg -16-
Slide 17: 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 18: 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) -18-
Slide 19: 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 20: Yields on fair value
Yields on fair value (As of 30 June 2015) Weighted average 5.8 % -20-
Slide 21: 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 22: 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 23: 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 24: Financials
Ae Financials sede housing with care -24-
Slide 25: Highlights YTD FY 2014/2015 (1)
Highlights YTD FY 2014/2015 (1) > 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) > Total fair value of investment properties: > €1 billion > Debt-to-a
Slide 26: Highlights YTD FY 2014/2015 (2)
Highlights YTD FY 2014/2015 (2) > Proposed gross dividend 2014/2015: €2.00/share, already detached, which represents a statutory pay-out ratio of 86 % -26-
Slide 27: Portfolio
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) -27-
Slide 28: 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 29: 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 30: 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 -30-
Slide 31: 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 -31-
Slide 32: 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. -32-
Slide 33: 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. -33-
Slide 34: Income Statement – Market driven
Income Statement Market driven Income Statement - analytical scheme 30 June 2015 30 June 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 35: 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 36: Consolidated balance sheet
Consolidated balance sheet (€ m) (As of 30 June 2015) Assets Equity & Liabilities 1 -36-
Slide 37: 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 38: 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 8 Oct. 2015: 3
Slide 39: Shares & shareholders
Shares & shareholders ie aedifica | housing with care -39-
Slide 40: 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) -40-
Slide 41: Share price since IPO
Share price since IPO (As of 8 October 2015) Spot Var. (%) Aedifica 57.59 59 BEL MID 4,283.68 16 EPRA Belgium 1,156.59 -18 EPRA Europe 2,198.47 -18 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 42: Total return since IPO
Total return since IPO (As of 8 October 2015) Var. (% ) Aedifica total return 82 125 Bel Re Inv Trusts 1,805 -7 EPRA B. total return 3,198 48 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 43: 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. -43-
Slide 44: 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: €820k at the end of Sept. 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 45: 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 -45-
Slide 46: Awards
Awards EPRA “EPRA Reporting: Best Practices Recommendations” (BPR) > Annual Report 2012/2013 (1st implementation of BPR) > Annual Report 2013/2014 -46-
Slide 47: Awards
Awards ABAF/BVFA > Belgian Association of Financial Analysts > 55st Award for Financial Communication > Small & Mid Cap ranking − 1st place for Best Financial Communication − 1st place in the Non-Financial Information category − 3rd place in the Investor Relations category L’Echo, 13 October 2015, p
Slide 48: Outlook
fre Outlook aecifica | housing with care -48-
Slide 49: 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 Poortvelden − New investments in senior housing: ̶ Germany: targets being studied ̶ Belgium: targets being studied − Objective for future
Slide 50: 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 Poortvelden − New investments in senior housing: ̶ Germany: targets being studied done ̶ Belgium: targets being studied − Objective for fu
Slide 51: 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 -51-
Slide 52: Outlook FY 2015/2016 – Tax shift
Outlook FY 2015/2016 > “Tax shift”: − Risk : ̶ Withholding tax raised to 27 % (2016) 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 ratio at a low 86
Slide 53: Conclusion
. Oe Conclusion aedifica | -53-
Slide 54: 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 -54-
Slide 55: sedifica |
sedifica | housing with care
Slide 56: Stefaan Gielens - CEO, Jean Kotarakos - CFO
Stefaan Gielens - Chief Executive Officer Jean Kotarakos - Chief Financial Officer -56-
Slide 57: 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 -57-
Slide 58: 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