Icade Sa · EURONEXT:ICAD
Icade Sa — Investor Presentation (October 2020)
40 slides from Icade Sa's investor presentation, October 2020
Slide 1: Investor Presentation October 2020
007 BUILDING – Pont de Flandre business park (Paris, 19th district) October 2020 INVESTOR PRESENTATION DESIGNING, BUILDING, MANAGING AND INVESTING in cities, neighbourhoods and buildings that are innovative, diverse, inclusive and connected with a reduced carbon footprint. Desirable places to live a
Slide 2: Disclaimer
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. As a result, any person who comes into pos
Slide 3: Table of Contents
TABLE OF CONTENTS 1. ICADE AT A GLANCE 2. Q3 - HIGHLIGHTS 3. OUTLOOK 4. CONCLUSION APPENDICES INVESTOR PRESENTATION - OCTOBER 2020 I 3
Slide 4: Icade at a Glance
1. ATHLETES VILLAGE Saint-Ouen, Seine-Saint-Denis ICADE AT A GLANCE INVESTOR PRESENTATION - OCTOBER 2020 I 4
Slide 5: One of the Leading French Listed REITs
ICADE AT A GLANCE ONE OF THE LEADING FRENCH LISTED REITS Property portfolio as of 06/30/2020 OFFICE INVESTMENT: Icade, the leading real estate player €14.4bn (100%, excl. duties) in Greater Paris €11.6bn (Group share, excl. duties) Portfolio as of 06/30/2020: €9.1bn (100% basis) Healthcare Avera
Slide 6: Icade's Strengths to Cope with Covid Crisis
ICADE AT A GLANCE ICADE’S STRENGTHS TO COPE WITH COVID CRISIS OFFICE INVESTMENT HEALTHCARE INVESTMENT PROPERTY DEVELOPMENT A dynamic and accretive growth A solid tenant base and an Residential fundamentals remain attractive rents offer • 41% of the NCCF as at June 2020 sound • 88% of GRI coming from
Slide 7: Robust Liability Indicators and Improved Liquidity Position
1 ICADE AT A GLANCE ROBUST LIABILITY INDICATORS AND IMPROVED LIQUIDITY POSITION • LTV incl. duties at 39.3% Increased liquidity with RCF up to • Well above the lowest covenant set at 52% (20% of the Gross Debt) €2.1bn • +€750m (net change +€370m), for an average term • Solid ICR and Net Debt/EBITDA
Slide 8: Q3 Highlights
ORIGINE Nanterre, Hauts-de-Seine 2. Q3 Highlights INVESTOR PRESENTATION - OCTOBER 2020 I 8
Slide 9: Key Takeaways
2 Q3 HIGHLIGHTS KEY TAKEAWAYS RESILIENT BUSINESS INDICATORS as of end of September • Continued growth in GRI from Property Investment in Q3, up +6.9% • High rent collection rates, in line with the pre-Covid situation (over 97% for Q2; already over 92% for offices and 96% for healthcare for Q3 rents)
Slide 10: Office Property Investment - Q3 2020 Highlights
2 OFFICE PROPERTY INVESTMENT OFFICE PROPERTY INVESTMENT - Q3 2020 HIGHLIGHTS A SOLID PORTFOLIO AND ACTIVE CRISIS MANAGEMENT KPI OUTLOOK A resilient and diversified tenant portfolio GRI • 88% of GRI coming from large companies and listed companies, public sector companies or government agencies, midd
Slide 11: Healthcare Property Investment - Q3 2020 Highlights
2 HEALTHCARE PROPERTY INVESTMENT HEALTHCARE PROPERTY INVESTMENT - Q3 2020 HIGHLIGHTS IN LINE WITH THE PRE-CRISIS TREND KPI OUTLOOK GRI A limited financial impact on healthcare providers • 90% of rental income generated by leading healthcare operators €224.5m Impact of the crisis on 2020: • Exception
Slide 12: Property Development - Q3 2020 Highlights
2 PROPERTY DEVELOPMENT PROPERTY DEVELOPMENT - Q3 2020 HIGHLIGHTS STRONG FUNDAMENTALS KPI OUTLOOK A back-to-normal situation and a sustained demand for residential • 100% of construction projects have fully resumed and the pace of housing starts has returned to pre-crisis levels ECONOMIC REVENUE The
Slide 13: Outlook
CONEX – Lille, Nord 3. Outlook INVESTOR PRESENTATION - OCTOBER 2020 I 13
Slide 14: Covid-19 Impact on 2020 NCCF: Lower Than Expected
3 IMPACT OF THE COVID -19 CRISIS COVID-19 IMPACT ON 2020 NCCF: LOWER THAN EXPECTED Estimated at Estimated at July 21, 2020 September 30, 2020 Leasing activity (1) [-€6m; -€4m] Office -€6m NET CURRENT CASH FLOW Investment Impact of postponed [-€9m; -€7m] completions/acquisitions (2) Healthcare Invest
Slide 15: FY 2020 Guidance
3 GUIDANCE FY 2020 GUIDANCE Guidance announced on February 17, 2020 Updated FY 2020 guidance (suspended on March 23, 2020) 2020 NCCF (in € per share): 2020 NCCF: c. €4.80 per share slightly lower than 2019, Limited shortfall in a context of crisis (c. -8.8% vs. 2019) +5% excluding impact of 2019 dis
Slide 16: Conclusion
OSMOSE Archipel Wacken international business district Strasbourg, Bas-Rhin 4. Conclusion INVESTOR PRESENTATION - OCTOBER 2020 I 16
Slide 17: Icade - Share Price Evolution
4 SHARE PRICE EVOLUTION ICADE - SHARE PRICE EVOLUTION Icade : Share price evolution – from 01/01/2019 to 22/10/2020 • Share price 01/01/2019 = 66.50 € Change YTD • Share price 21/10/2020 = 51.18 € -50.29% Discount EPRA NDV (1) -45% Implicit discount on the actIvities excl. Healthcare (1) (2) -70% Di
Slide 18: Icade Well Positioned to Get Through the Crisis
4 CONCLUSION ICADE WELL POSITIONED TO GET THROUGH THE CRISIS A Solid 9M: • Resilient Investment Divisions • Development Division ready to bounce back A strong balance sheet and improved liquidity position Caution exercised in the development pipeline for office assets in a more uncertain environment
Slide 19: Appendices
VILLA ST-DO Bois-Guillaume-Bihorel, Seine-Maritime Appendices INVESTOR PRESENTATION - OCTOBER 2020 I 19
Slide 20: 2019-2022 Plan: A Clear and Ambitious Plan
2019–2022 PLAN: A CLEAR AND AMBITIOUS PLAN 1. Leader in the office 2. 3. 4. market in the Greater European leader Key player Best-in-class CSR Paris area and major in healthcare in property and innovation French cities real estate development outside Paris Sales of mature assets Diversification
Slide 21: Icade's Purpose
APPENDICES ICADE’S PURPOSE The inclusion of the Purpose in the preamble of Icade’s Articles of Association was approved by 99.99% of votes at the General Meeting held on April 24, 2020 Our Purpose is being implemented across all our business lines INVESTOR PRESENTATION - OCTOBER 2020 I 21
Slide 22: H1 2020 Key Indicators
APPENDICES H1 2020 KEY INDICATORS +4.7% -22.7% -5 bps PROPERTY INVESTMENT PROPERTY DEVELOPMENT LIABILITIES GROUP INDICATORS €320.9m €300.4m 1.49% +1.2% €92.2 per share vs. €306.4m as of 06/30/2019 vs. €388.5m as of 06/30/2019 vs. 1.54% as of 12/31/2019 NET RENTAL INCOME PROPERTY DEVELOPMENT REVENUE
Slide 23: Liability Indicators Remain Healthy
APPENDICES LIABILITY INDICATORS REMAIN HEALTHY Average debt maturity at 6 years Average cost of debt down 5 bps 7 3,00% 6 6.6 6.5 6.4 6.4 2,50% 2.71% 5 6.0 2,00% 4 2.18% 4.5 1,50% 3 1.59% 1,00% 1.55% 1.54% 1.49% 2 1 0,50% 0 0,00% 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 06/30/2020 2015
Slide 24: Icade Acts Responsibly in This Time of Crisis
APPENDICES ICADE ACTS RESPONSIBLY IN THIS TIME OF CRISIS INVOLVEMENT AND COMMUNITY ACTION SUPPORTING OUR STAKEHOLDERS • Individualised support for tenants and operators (waiving 140,000 masks donated Creation of a Q2 2020 rents for businesses with less than 10 employees, (firefighters, healthcare fa
Slide 25: Office Space Outside Paris CBD Needed Now More Than Ever
APPENDICES – OFFICE INVESTMENT OFFICE SPACE OUTSIDE PARIS CBD NEEDED NOW MORE THAN EVER Western Icade’s Office Investment portfolio Paris CBD La Défense Crescent Inner Ring Outer Ring in the Paris region mid-2020 Physical vacancy rate 2.1% ▲ 5.6% ▲ 10.5% ▲ 6.4% ▼ 5.3% ≈ (end of June 2020 vs. end of
Slide 26: Icade's Office Portfolio in the Heart of the Greater Paris Area
APPENDICES – OFFICE INVESTMENT Land bank 877,000 sq.m (2) ICADE’S OFFICE PORTFOLIO IN THE HEART OF THE GREATER PARIS AREA ASSETS CENTRAL BUSINESS DISTRICT PORTES DE PARIS BUSINESS PARK 261,000 sq.m GRAND PARIS EXPRESS LINES Paris region portfolio 14 1,576,151 sq.m – €7,647m (1) 15 PORTE 17 16,17 DE
Slide 27: Development Pipeline as of 06/30/2020
APPENDICES – OFFICE INVESTMENT DEVELOPMENT PIPELINE AS OF 06/30/2020 Estimated Rental Remaining to be Type Property date of Floor area income Cost (2) invested > Q2 2020 Project name Location of works In progress type completion (sq.m) (€m) YoC (1) (€m) (€m) Pre-let PARK VIEW Lyon Redevelopment ✓ Of
Slide 28: Office Investment: Slight Like-for-Like Decrease
APPENDICES – OFFICE INVESTMENT OFFICE INVESTMENT: SLIGHT LIKE-FOR-LIKE DECREASE Offices (value excl. duties, Group share) Business parks (value excl. duties, Group share) (in €m) (in €m) +0.5% +0.3% on a reported basis 6,408 on a reported basis 1,799 1,793 18 6,376 61 - (30) (12) - 12/31/2019 DISPOS
Slide 29: A Solid and Diversified Tenant Portfolio
APPENDICES – OFFICE INVESTMENT A SOLID AND DIVERSIFIED TENANT PORTFOLIO % of annualised IFRS rental income as of 06/30/2020, 100% basis, excl. equity-accounted companies Sport and entertainment 2% Other 1% Other 2% Transport and warehousing 3% Small businesses/SMEs 9% Health, education and welfare 5
Slide 30: Office Investment Key Figures
APPENDICES – OFFICE INVESTMENT KEY FIGURES 12/31/2019 06/30/2020 Portfolio value €9.1bn €9.1bn 1 Value slightly up (100%, excl. duties) (+0.3% on a reported basis, Group share) Portfolio value €8.5bn €8.5bn (Group share, excl. duties) WAULT 4.5 years 4.4 years 2 Stable WAULT thanks to H1 completions
Slide 31: Icade Santé, the Leader in Healthcare Property in France
APPENDICES – HEALTHCARE INVESTMENT ICADE SANTÉ, THE LEADER IN HEALTHCARE PROPERTY IN FRANCE Properties Share of nursing Properties in France Property type homes in France in Europe (excl. France) (1) Acute care €5.0bn PAC/mental health 6% €0.3bn Germany, Italy Nursing homes (2) Acute care ≈ €2.4bn P
Slide 32: Healthcare Development Pipeline
APPENDICES – HEALTHCARE INVESTMENT HEALTHCARE DEVELOPMENT PIPELINE Number of Total Remaining to Yield beds and investment (1) be invested on cost (2) Type Operator City/town places (€m) (€m) (YoC) Completion Pre-let PROJECTS STARTED 3,142 297.6 230.9 5.4% 100% Incl. France 2,036 186.5 127.4 100% Mon
Slide 33: Healthcare Investment Key Figures
APPENDICES – HEALTHCARE INVESTMENT KEY FIGURES 12/31/2019 06/30/2020 Portfolio value (100%, excl. duties) €5.3bn €5.3bn Portfolio value (Group share, excl. duties) €3.0bn €3.1bn ARRAS PRIVATE HOSPITAL Pas-de-Calais Net initial yield (excl. duties) (1) 5.7% 5.7% Financial occupancy rate 100% 100% WAU
Slide 34: Office and Healthcare Portfolio: Slight Like-for-Like Decrease
APPENDICES – PROPERTY INVESTMENT OFFICE AND HEALTHCARE PORTFOLIO: SLIGHT LIKE-FOR-LIKE DECREASE (GROUP SHARE) (in €m) +0.5% on a reported basis 11,600 11,538 22 86 (44) (2) 12/31/2019 Disposals (1) Acquisitions (2) Construction work Like-for-like change 06/30/2020 and other (3) • Slight like-for-lik
Slide 35: Implied Yields of Operating Assets
APPENDICES – PROPERTY INVESTMENT IMPLIED YIELDS (1) OF OPERATING ASSETS 8.1% 7.9% 7.8% 5.9% 5.8% 5.8% 5.8% 5.7% 5.7% 5.3% 5.1% 5.1% Offices Business parks Healthcare TOTAL PROPERTY INVESTMENT 12/31/2018 12/31/2019 06/30/2020 (1) Annualised net rental income from leased space plus potential net renta
Slide 36: Lease Expiry Schedule for the Property Investment Divisions
APPENDICES – PROPERTY INVESTMENT LEASE EXPIRY SCHEDULE (1) FOR THE PROPERTY INVESTMENT DIVISIONS (IFRS RENTAL INCOME) Office Investment Healthcare Investment Robust leasing activity in 2020 Leasing activity assured well into the future • Renewed leases: 14 leases renewed in 2020, i.e. 25,930 sq.m
Slide 37: Property Development: Residential Segment's Fundamentals Remain Sound
APPENDICES – PROPERTY DEVELOPMENT PROPERTY DEVELOPMENT: THE RESIDENTIAL SEGMENT’S FUNDAMENTALS REMAIN SOUND Icade Promotion’s strengths • Loan interest rates remain low Recognised, comprehensive and sustainable • Long-term structural needs solutions Demand • Retail space, mix of uses, appeal remains
Slide 38: Potential Revenue of €7.2bn in the Medium Term
APPENDICES – PROPERTY DEVELOPMENT POTENTIAL REVENUE OF €7.2bn IN THE MEDIUM TERM €5.4bn for the residential segment: €1.8bn for the office segment 20,900 homes (excl. backlog) and 389,700 sq.m (excl. backlog) Backlog Projects won Backlog €0.2bn or other options €1.1bn €1.3bn > 6,800 units Land portf
Slide 39: Positive H1 Indicators for CSR
APPENDICES – CSR POSITIVE H1 INDICATORS FOR CSR OFFICE INVESTMENT HEALTHCARE INVESTMENT Growth in certified office space HQE certification for 100% of significant projects under development (> 7,500 sq.m) HQE/BREEAM certified office space (in thousands of sq.m) +24% construction +6% in-use 568 PRO
Slide 40: Diversified Funding Structure
APPENDICES DIVERSIFIED FUNDING STRUCTURE Debt maturity schedule Diversified funding sources (in €m) (in €m) Other Mortgages and real 232 (3.2%) estate finance leases 1,022 (14.2%) 1,541 (1) Unsecured loans 61 1,026 (14.3%) Bonds 744 700 711 431 440 498 619 515 3,882 (53.9%) 374 323 Mortgages not 28