Slide 1: Half year results 2015/2016
Half year results 2015/2016 31 December 2015 Brussels, 23 February 2016 -1-
Slide 2: Table of contents
Table of contents > Highlights H1 2015/2016 > Strategy > Achievements > Portfolio analysis > Financials > Shares & shareholders > Outlook > Conclusion -2-
Slide 3: Highlights H1 2015/2016
Highlights H1 2015/2016 seditcal housing with care
Slide 4: Highlights H1 2015/2016 (1)
Highlights H1 2015/2016 (1) > Occupancy rate: 98.3 % for unfurnished portion and 81.0 % for the furnished portion (only 7 % of the fair value of marketable investment properties) > Rental income: +25 % YoY > Profit excl. IAS 39 and IAS 40: +43 % (ahead of budget) > Total fair value of investment pro
Slide 5: Highlights H1 2015/2016 (2)
Highlights H1 2015/2016 (2) > 5 additions in the senior housing segment in Belgium > Senior housing constitutes 72 % of the portfolio > Dividend forecast: unchanged at €2.05 gross per share > 2 Awards: − “EPRA Gold Award” for 2013/2014 Annual Financial Report (Sept. 2015) − Best financial communicat
Slide 6: Portfolio H1 2015/2016 (3)
Portfolio H1 2015/2016 (3) > Total Portfolio outlook: €1,213 m − €1,063 m (including projects on balance sheet, excl. assets classified as held for sale) − + €150 m (committed investments in pipeline) > Average remaining lease maturity: 20 years -6-
Slide 7: Strategy
Strat egy sedifica
Slide 8: Aedifica
Aedifica > Belgian REIT (RREC/SIR/GVV) − market cap ~ €850 m − free float of 100 % − portfolio > €1 billion − approx. 515,000 m² − see appendix for characteristics of a Belgian REIT > Focusing on healthcare real estate: “housing with care” − demographic evolution: ageing > European focus − Belgium −
Slide 9: Demographic evolution: Ageing in Belgium
Demographic evolution Ageing in Belgium Source: "Perspectives de population 2014-2060", Federal Planning Bureau, 2015. -9-
Slide 10: Demographic evolution: Ageing in Germany
Demographic evolution Ageing in Germany Source: "Bevölkerung Deutschlands bis 2060", Statistisches Bundesamt (Deutschland), 2009. -10-
Slide 11: Healthcare real estate
Healthcare real estate > Focus on senior housing − Rest 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 -11-
Slide 12: Rest home potential in Europe
Rest home potential in Europe Source: DTZ Insight, European Nursing Homes 2014. -12-
Slide 13: Rest home potential in Belgium
Rest home potential in Belgium Scenarios of the number of elderly in residential care, 2000-2025 (thousands beds) Source: CW Insight, Belgium Nursing Homes 2016. -13-
Slide 14: Segment information
Segment information (As of 31 December 2015) Senior housing Apartment buildings in Hotels in Europe Belgium’s main cities in Belgium Weight: 72 % 21 % 7% Yield: 5.9 % 5.5 % 6.2 % EBIT margin: 99 % 59 % 98 % Cash flow Value play1 Cash flow (long-term leases) (long-term leases) + growth potentia
Slide 15: Achievements
[] aedifica , PNM HH vert rs betiet a baad -15-
Slide 16: Milestones: investment properties at fair value
Milestones 10 years evolution Investment properties at fair value €m CAGR: 27% -16-
Slide 17: Milestones: focus on senior housing
Milestones Focus on Senior Housing Evolution by segment (fair value) Marketable property at fair value (€1,065 m, incl. assets held for sale) -17-
Slide 18: Milestones: focus on Europe
Milestones Focus on Europe Geographical breakdown (fair value) Marketable property at fair value (€1,065 m, incl. assets held for sale) -18-
Slide 19: Equity: latest SPOs
Equity Latest SPOs (2010, 2012, 2015) > Reminder: Gross proceeds in 2010 and 2012 = €67 m (Oct. 2010) + €100 m (Dec. 2012) > 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 + €399
Slide 20: Equity: latest contributions in kind (1)
Equity Latest contributions in kind (1) > 2 Oct. 2015: Contribution in kind of plot of land on which Heydeveld rest home in situated and bare ownership of the building > Issuance of 19,856 new Aedifica shares in the amount of €1 m for €50.36 per share > Prorata dividend entitlement -20-
Slide 21: Equity: latest contributions in kind (2)
Equity Latest contributions in kind (2) > 17 Dec. 2015: Contribution in kind of the site on which Prinsenhof rest home is situated > Issuance of 104,152 new Aedifica shares in the amount of €6 m for €54.98 per share > Full dividend entitlement -21-
Slide 22: Investments since capital increase of June 2015
Investments Since capital increase of June 2015 (in € million) Marketable investment Development Total properties projects carried out subject to outstanding conditions Résidence de la Houssière Belgium 10 - - 10 Senior Flandria Belgium 10 - - 10 Mechelen Belgium - - 17 17 Vinkenbosch Belgium 4 - 12
Slide 23: Portfolio analysis
. . Ae Portfolio analysis social housing with care -23-
Slide 24: Segments
Segments (As of 31 December 2015) Apartment buildings (865 apartments in 36 sites) 21 % Senior housing (6,942 units 72 % in 73 sites) 7% 6 hotels & other (521 rooms) Marketable property at fair value (€1,065 m, incl. assets classified as held for sale) -24-
Slide 25: Geographical breakdown
Geographical breakdown (As of 31 December 2015) Germany Wallonia 12 % 12 % Brussels 29 % 47 % Flanders Marketable property at fair value (€1,065 m, incl. assets classified as held for sale) -25-
Slide 26: 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 > €120 million − Initial gross rental yield
Slide 27: Investment activity H1 2015/2016
Investment activity H1 2015/2016 (As of 31 December 2015) > 5 additions in Belgium − Résidence de La Houssière (Braine-le-Compte) − Senior Flandria (Bruges) − Vinkenbosch (Hasselt) (+ project) − Heydeveld (Opwijk) − Prinsenhof (Koersel) (+ project) > 2 framework agreements in Belgium − Mechelen (Mec
Slide 28: Main tenants (1)
Main tenants (1) Segment Country Group controlling Tenants Number of 31 December 2015 30 June 2015 the legal entities in sites contractual relation with Aedifica SENIOR HOUSING 73 73% 73% Belgium 59 59% 58% Armonea * 19 22% 21% Armonea SA 8 10% 11% Restel Flats SPRL 1 1% 1% LDC De Wimilingen ASBL 1
Slide 29: Main tenants (2)
Main tenants (2) Segment Country Group controlling Tenants Number of 31 December 2015 30 June 2015 the legal entities in sites contractual relation with Aedifica SENIOR HOUSING Belgium 59 59% 58% Orpea 9 11% 11% Château Chenois Gestion SPRL 3 3% 3% New Philip SA 3 2% 2% Parc Palace SA 1 2% 2% Proges
Slide 30: Main tenants (3)
Main tenants (3) Segment Country Group controlling Tenants Number of 31 December 2015 30 June 2015 the legal entities in sites contractual relation with Aedifica SENIOR HOUSING Germany 14 13% 15% Orpea 5 5% 5% Senioren Wohnpark Weser GmbH 3 3% 3% Bonifatius Seniorendienstr GmbH *** 1 1% 1% Seniorenr
Slide 31: Main tenants (4)
Main tenants (4) Segment Country Group controlling Tenants Number of 31 December 2015 30 June 2015 the legal entities in sites contractual relation with Aedifica HOTELS AND OTHER 10 7% 8% Belgium 10 7% 8% Martin's Hotels 2 5% 5% Martin's Brugge SA 1 3% 3% Martin's Hotel SA 1 2% 2% Different Hotel Gr
Slide 32: Lease maturity
Lease maturity (As of 31 December 2015) Initial lease maturity < 15 years 19 % 81 % ≥ 15 years, irrevocable Average remaining lease maturity 20 years Marketable property at fair value (€1,065 m, incl. assets classified as held for sale) -32-
Slide 33: Age of buildings
Age of buildings (As of 31 December 2015) Other contracts Buildings > 10 years 17 % Other contracts Buildings between 16 % 67 % Long-term 0-10 years triple net contracts Marketable property at fair value (€1,065 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 31 December 2015) Weighted average 5.8 % -35-
Slide 36: Segment EBIT margins
Segment EBIT margins* (As of 31 December 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 % 9
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 YTD H1 2015/2016 €k % €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% 8,209 1% Apartment buildings -7,851 -4% -
Slide 38: Development projects
Development projects (As of 31 December 2015) Projects and renovations Estimate Inv. as of 31 Future Date of Comments d inv. December inv. completion (in € million) 2015 I. In progress Sundry Sundry 2 1 1 2015/2016 Renovation of 2 buildings 't Hoge Kortrijk 2 0 1 2015/2016 Extension and renovation o
Slide 39: Development projects
Development projects +17 -4 169 +12 +11 138 -8 +4 -2 -2 +3 -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 31 December 2015 31 December 2014 Var. (x €1,000) Rental income 28,654 22,914 +25% Rental-related charges -19 -5 Net rental income 28,635 22,909 +25% Operating charges -5,281 -4,910 Operating result before result on portfolio 23,3
Slide 42: Income Statement: business driven
Income Statement Business driven Income Statement - analytical scheme 31 December 2015 31 December 2014 Var. (x €1,000) Rental income 28,654 22,914 +25% Rental-related charges -19 -5 Net rental income 28,635 22,909 +25% Operating charges -5,281 -4,910 Operating result before result on portfolio 23,3
Slide 43: Rental income
Rental income (As of 31 December 2015) + 5,600 +151 - 11 28,654 22,914 Change: +37.0 % +2.6 % -0.2 % +25.1 % Like-for-like change: +0.6 % +2.6 % -0.2 % +1.0 % 25 % increase YoY -43-
Slide 44: Result excl. IAS 39 & IAS 40
Result excl. IAS 39 & IAS 40 (As of 31 December 2015) +5,600 -265 +151 +41 -17 -698 +544 +3 +296 -162 -95 -281 -90 16,820 11,793 -44-
Slide 45: Result excl. IAS 39 & 40 vs Budget
Result excl. IAS 39 & 40 vs Budget (As of 31 December 2015) 16,820 -45-
Slide 46: Income Statement: market driven
Income Statement Market driven Income Statement - analytical scheme 31 December 2015 31 December 2014 (x €1,000) Profit excl. IAS 39 & IAS 40 16,820 11,793 IAS 39 impact: changes in fair value of financial assets and liabilities -951 -3,294 IAS 40 impact: changes in fair value of investment properti
Slide 47: Hedging policy
Hedging policy (As of 31 December 2015) > Economic stability and Business driven: foreseeability of Avg effective interest rate of 3.0 %, interest cash well below H1 PY (3.2 %), outflows... and lower than budget (3.2 %) > ... even in spite Market driven: of accounting Change in FV of derivatives (no
Slide 48: Consolidated balance sheet
Consolidated balance sheet (€ m) (As of 31 December 2015) Assets Equity & Liabilities 1 -48-
Slide 49: Debt-to-assets ratio
Debt-to-assets ratio (As of 31 December 2015) Headroom* : - Debt increase of €217 m without investments or €543 m with investments - Drop of MTM of buildings of 34 % Before After SPO 2015 SPO 2015 * Based on bank covenant of max. 60 %. Based on legal max. of 65 %, headroom is respectively €271 m, €7
Slide 50: Credit facilities
Credit facilities (€ m) (As of 22 February 2016) Lines Utilisation - 2015/2016 : - - - 2016/2017 : 150 106 - 2017/2018 : 92 60 - 2018/2019 : 127 127 - 2019/2020 : 80 80 - 2020/2021 : 32 2 - 2021/2022 : 55 25 - > 2022/2023 : 44 14 Total as of 22 February 2016 580 414 Weighted Average Maturity (years)
Slide 51: Net asset value
Net asset value Net asset value per share (in €) 31 Dec. 2015 30 June 2015 Var. Based on fair value of investment properties Net asset value based on fair value 42.75 41.04 4% IAS 39 impact 2.79 2.70 Net asset value after deduction of dividend, excl. IAS 39 45.54 43.74 4% Premium on 19 Feb. 2016: 36
Slide 52: Number of shares
Number of shares > 31 December 2015 Number of shares 31 December 2015 30 June 2015 Number of shares outstanding* 14,169,939 14,045,931 Total number of shares 14,169,939 14,045,931 Total number of shares on the stock market 14,150,083 14,045,931 Weighted average number of shares outstanding (IAS 33)
Slide 53: 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 54: EPRA
EPRA > Aedifica included in the EPRA indices Key performance indicators according to the EPRA principles 31 December 2015 31 December 2014 EPRA Earnings (in €/share) 1.20 1.14 EPRA Cost Ratio (including direct vacancy costs) (in %) 18% 21% EPRA Cost Ratio (excluding direct vacancy costs) (in %) 18%
Slide 55: Shares & shareholders
Shares & shareholders ie aedifica | housing with care -55-
Slide 56: 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), updated in the interim Board of Director’s report. -56-
Slide 57: Share price since IPO
Share price since IPO (As of 19 February 2016) Spot Var. (%) Aedifica 58,10 60 BEL MID 4.192,48 14 EPRA Belgium 1.179,98 -17 EPRA Europe 2.047,71 -23 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
Slide 58: Total return since IPO
Total return since IPO (As of 19 February 2016) Var. (%) Aedifica total return** 86 136 Bel Re Inv Trusts* 1.786 58 EPRA B. total return 3.288 52 * As of 12 February 2016 (discontinued). ** Aedifica: based on the IPO price (€41), adjusted to take into account the rights issues of 2010 (- €1.89), 201
Slide 59: Shareholding
Shareholding* (As of 18 December 2015) Free float 100 % * A total of 14,150,083 shares are listed on Euronext Brussels. -59-
Slide 60: Rankings
Rankings > The highest free float of all Belgian REITs > 4th largest market cap amongst all Belgian REITs1 > 8th largest real estate portfolio in Belgium2 (36th in 2006) 1 Based on the 12 Feb. 2016 “Weekly Table Value” by Bank Degroof Petercam 2 Investors Directory 2016, Expertise BVBA, published in
Slide 61: Awards (1)
Awards (1) EPRA “EPRA Reporting: Best Practices Recommendations” (BPR) > Annual Report 2012/2013 (1st implementation of BPR) > Annual Report 2013/2014 > Annual Report 2014/2015: not yet assessed -61-
Slide 62: Awards (2)
Awards (2) ABAF/BVFA 2015 > 55th 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. 32 -62-
Slide 63: 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 64: Outlook
fre Outlook aecifica | housing with care -64-
Slide 65: 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 66: 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 done ̶ Belgium: targets being studied − Objective for fut
Slide 67: 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 -67-
Slide 68: Outlook FY 2015/2016: Tax shift
Outlook FY 2015/2016 > “Tax shift”: − 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 − PY pay-out ratio at a low 86 % -68-
Slide 69: Conclusion
Ae Conclusion social housing with care -69-
Slide 70: 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 -70-
Slide 71: sedifica |
sedifica | housing with care
Slide 72: Stefaan Gielens, Jean Kotarakos, Martina Carlsson
Stefaan Gielens - Chief Executive Officer Jean Kotarakos - Chief Financial Officer Martina Carlsson – Control & Communication manager -72-
Slide 73: 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 bte 8 1050 Brussels Tel: +32 (0)2 626 07 70 - Fax: +32 (0)2 626 07 71 info@aedifica.be www.aedifica.be -73-
Slide 74: 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 75: Appendix
. fre Appendix aedifica |’
Slide 76: 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 77: Long leases
Long 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 vacan
Slide 78: 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 -78-
Slide 79: Investment activity in Germany (1)
Investment activity in Germany (1) Rheinbach Wenden-Rothemühle Olpe-Rüblinghause Bad Harzburg Kalletal Kirchlengern Enger Kierspe -79-
Slide 80: Investment activity in Germany (2)
Investment activity in Germany (2) Service-Residenz Schloss Bensberg -80-
Slide 81: Investments H1 2015/2016 (1)
Investments H1 2015/2016 (1) Flandria 9 July 2015 Acquisition of an assisted-living building in Bruges (Province of West-Flanders) • €10m invested amount • 108 units Résidence La Houssière 1 October 2015 Acquisition of a rest home in Hasselt 2 July 2015 (Province of Limburg) Acquisition of a rest ho
Slide 82: Investments H1 2015/2016 (2)
Investments H1 2015/2016 (2) Heydeveld 2 October 2015 Acquisition of a rest home in Opwijk (Province of Flemish Brabant) • €9m invested amount • 75 units 18 January 2016 Prinsenhof Announcement of acquisition under outstanding conditions of a rest home and an assisted-living 17 December 2015 buildin
Slide 83: Geographical breakdown: Belgium
Geographical breakdown (As of 30 June 2015) Belgium Senior housing Apartment buildings Hotels & other -83-
Slide 84: Geographical breakdown: Germany
Geographical breakdown (As of 30 June 2015) Germany Senior housing Apartment buildings Hotels & other -84-
Slide 85: Notes
fre ; Notes aecifica |' housing with care -85-
Slide 86: Notes
fre ; Notes aecifica |' housing with care -86-