Slide 1: Presentation HY 2023
THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES PRESENTATION HY 2023 Manager and general partner www.selectirente.com Listed property company for retail properties of SELECTIRENTE
Slide 2: Summary
SUMMARY SOMMAIRE 1. SELECTIRENTE IN A NUTSHELL 3 2. COMMERCIAL PROPERTY: A RESILIENT MARKET 8 3. SELECTIRENTE: RESILIENCE & VALUE CREATION 15 A. STRATEGY & FUNDAMENTALS 16 B. ESG COMMITMENTS 20 C. RIGOUROUS AND DYNAMIC PORTFOLIO MANAGEMENT 24 4. SELECTIRENTE: STRONG OPERATIONAL AND FINANCIAL PERFORM
Slide 3: Selectirente in a Nutshell
1 SELECTIRENTE IN A NUTSHELL 3 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 4: 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 ▪ SELECTIRENTE's operational and financial performance is constantly improving with the aim of becoming a major
Slide 5: Selectirente in a Nutshell (1/2)
SELECTIRENTE IN A NUTSHELL ( 1 / 2 ) ▪ Created in 1997 on the initiative of SOFIDY and property professionals, SELECTIRENTE is As at 30/06/2023 a listed property company specialising in the purchase of local retail premises in city centres €592m €90.59 per share EPRA NAV NDV Overall portfolio value
Slide 6: 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 7: 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 8: Commercial Property: A Resilient Market
2 COMMERCIAL PROPERTY: A RESILIENT MARKET 8 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 9: Resilient Economies and Rising Forecasts, Despite Deteriorating Economic Climate
RESILIENT ECONOMIES AND RISING FORECASTS, DESPITE A STILL DETERIORATING ECONOMIC CLIMATE The first half of 2023 was a time of optimism. Despite a macroeconomic environment that is still Retail investment by quarter uncertain, prompting caution and hesitant growth, a cycle of disinflation seems to be
Slide 10: Zoom on Paris
RESILIENT ECONOMIES AND RISING FORECASTS, DESPITE A STILL DETERIORATING ECONOMIC CLIMATE ZOOM ON PARIS – Paris, the driving force behind retail activity in the 1st half-year ▪ An increase in footfall and a revival of the main shopping streets, with a marked return of air Geographical breakdown of re
Slide 11: Dynamic Recovery in Investment Despite Uncertain Environment
DYNAMIC RECOVERY IN INVESTMENT DESPITE THE UNCERTAIN ENVIRONMENT Household consumption: -0.2% 75% ofstores French people try to shop in physical rather than on the internet ** estimated in 2023* of consumers believe that physical Retail investment: 64% shops are an important contact point, even if t
Slide 12: Trade as a French National Issue
TRADE AS A FRENCH NATIONAL ISSUE As the largest economic sector in France, accounting for more than 3.5 million jobs, including more than 2.1 million in the retail sector alone, trade has seen an accelerated changes since the beginning of the pandemic • New consumption patterns • Need for digital tr
Slide 13: Local Retailing, Still a Good Investment Opportunity in France
LOCAL RETAILING, STILL A GOOD INVESTMENT OPPORTUNITY IN FRANCE Against a still fragile and uncertain macroeconomic backdrop, town centre retail property continues to prove its resilience and remains promising. Footfall in town centres continues to rise, fuelled by the French's attachment to their lo
Slide 14: 2023 Outlook
2023 OUTLOOK Since the outbreak of the Covid-19 pandemic, investors who were cautious about retail have been convinced of its resilience With strong pricing power due to their rare locations and significant flows, city centre and high-demand real estate assets represent a prime diversification oppor
Slide 15: Selectirente: Resilience & Value Creation
3 SELECTIRENTE: RESILIENCE & VALUE CREATION 15 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 16: A. Strategy & Fundamentals
3 SELECTIRENTE: RESILIENCE & VALUE CREATION A. STRATEGY & FUNDAMENTALS 16 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 17: 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 €41.1bn as at 30/06/2023) ▪ One of the only pure player European listed property companies in c
Slide 18: 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 30/06/23 (Indicative data to the Company’s knowledge) 18% 1 14% 55% 1 4% 9% Misc. Institutional and
Slide 19: 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 20: B. ESG Commitments
3 SELECTIRENTE: RESILIENCE & VALUE CREATION B. ESG COMMITMENTS 20 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 21: 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 22: 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 23: 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 in 2022 for 100% of tenants durin
Slide 24: C. Rigorous and Dynamic Portfolio Management
3 SELECTIRENTE: RESILIENCE & VALUE CREATION C. RIGOUROUS AND DYNAMIC PORTFOLIO MANAGEMENT 24 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 25: Creation of Value for Shareholders
CREATION OF VALUE FOR SHAREHOLDERS LA CRÉATION DE VALEUR POUR LES ACTIONNAIRES CHANGE IN EPRA NRV Outperformance of the stock compared to its benchmark (IN € / SHARE) 98,4 101,5 95,7 94,2 96,7 97,6 94,4 92,1 (Basis 100 – IPO) 82,5 CHANGE IN DIVIDENDS (IN € / SHARE) 3.60 3,80 3.45 3.50 3.20 3.25 2,80
Slide 26: Diversification of the Portfolio at End of June 2023
DIVERSIFICATION OF THE PORTFOLIO AT THE END OF JUNE 2023 A diversified portfolio of high quality, directly owned properties, with 83% of the portfolio consisting of city-centre retail properties, 59% of which are located in Paris proper Sector distribution of direct real estate portfolio Distributio
Slide 27: 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 28: Long-Term Cash Flow Visibility and Recurring Value Creation
LONG-TERM CASH FLOW VISIBILITY AND RECURRING VALUE CREATION Lease schedule at 31/12/2022 Dynamic historic rental management Number of Previous Annual annual Annual rents Allowances for expiring leases Area rents rental Number obtained Variation despecialisation or management* entry fees (m2) (€k) (€
Slide 29: 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 30: Examples of Successful Asset Management
Format en tête à modifier EXAMPLES OF SUCCESSFUL ASSET MANAGEMENT Value accretion Value accretion Value accretion through Leasing by Transferring the leasehold rights through Renewal 2023 2022 2023 COMMERCIAL PREMISES COMMERCIAL PREMISES COMMERCIAL PREMISES Rue Rambuteau - Paris 3ème Rue Lecourbe, r
Slide 31: Assets – Diversification and Value Creation
ASSETS – DIVERSIFICATION AND VALUE CREATION Neuilly-sur-Seine (92) – rue Achille Peretti Paris 1st – rue Coquillière Lyon (69) – rue Sainte-Catherine Paris 2nd – boulevard de Bonne Nouvelle Toulouse (31) – rue de Metz Paris 7th – place du Palais Bourbon Bordeaux (33) – Place des Grands Hommes Paris
Slide 32: Portfolio - Diversification & Value Creation
PORTFOLIO - DIVERSIFICATION & VALUE CREATION Some examples of our flagship assets... Avenue Achille Peretti Avenue des Ternes Rue d’Algérie Neuilly sur Seine (92) Paris (17th) Lyon (69) • Acquired in 2011 • Acquired in 2021 • Acquired in 2020 • Purchase price ex. taxes: €9m • Purchase price ex. taxe
Slide 33: 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 Rue du Faubourg du Temple Rouen (76) Paris (1st) Paris (10th) • Acquired in 2014 • Acquired in 2020 • Acquired in 2020 • Purchase price ex. tax
Slide 34: 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 35: 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 36: Portfolio - Latest Acquisitions - 2022
PORTFOLIO - LATEST ACQUISITIONS - 2022 LES DERNIÈRES ACQUISITIONS UNITY portfolio (Rue Rambuteau) signed at the end of June 2022 (Acquisition price = €71.8m All-in Cost) Acquisition enabling SELECTIRENTE to open up its investment spectrum from local shops to more institutional real estate assets, an
Slide 37: Strong Operational and Financial Performance
4 STRONG OPERATIONAL AND FINANCIAL PERFORMANCE 37 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 38: A. Evolution Since 2019
4 STRONG OPERATIONAL AND FINANCIAL PERFORMANCE A. EVOLUTION SINCE 2019 38 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 39: 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) €604m €592m €31m 577 570 2019 capital increase - €592m* 470 €217m €16m 366 €315m 370 270 170 Portfolio value Rent Number of leases (annual basis) * €7m of arbitrage in the first h
Slide 40: Key Figures Since December 2019
KEY FIGURES SINCE DECEMBER 2019 31/12/2019 30/06/2023 Value of the overall portfolio €315m €592m Number of assets 291 High financial 442 occupancy rate: Number of leases 366 577 ~96 % Rents of the leased portfolio €31m (on an annual basis) €16m Leased area 81,525 sqm 110,000 sqm EPRA LTV 0% 39.8 % (
Slide 41: 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 42: 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 43: Evolution of the Financing Structure - Feb 2022
EVOLUTION OF THE FINANCING STRUCTURE - FEB 2022 ÉVOLUTION DE LA STRUCTURE DE FINANCEMENT STRUCTURING OPERATION TO ACCELERATE THE COMPANY'S GROWTH concluded on 04/02/2022 with BECM, HSBC, Crédit du Nord and Société Générale ▪ Corporate loan of €100m - mainly to repay portions of the pre-existing mort
Slide 44: Overall Debt: Outstanding Capital per Year
OVERALL DEBT: OUTSTANDING CAPITAL PER YEAR NO SIGNIFICANT REPAYMENT BEFORE 2025 ÉVOLUTION DE LA STRUCTURE DE FINANCEMENT Evolution of the outstanding capital by year and by type of debt As at 30/06/2023: Corporate debt • Outstanding bank debt: €240m • Cash and cash equivalents: €9.9m Outstanding Cap
Slide 45: B. Performance as at 30/06/2023
4 STRONG OPERATIONAL AND FINANCIAL PERFORMANCE B. PERFORMANCE AS AT 30/06/2023 45 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 46: EPRA KPI
EPRA KPI (European Public Real Estate Association) Selectirente has been a member of EPRA since the beginning of 2021. During their ReThink Conference 2022 and 2023, EPRA awarded SELECTIRENTE a Gold Award, among other leading European listed companies. SELECTIRENTE, member of the EPRA since 2021, wa
Slide 47: Performance Praised by Media
PERFORMANCE PRAISED BY MEDIA "The local retail sector continues to show good resilience... and SELECTIRENTE is succeeding in holding its own in this complex environment". 47 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 48: C. Outlook
4 STRONG OPERATIONAL AND FINANCIAL PERFORMANCE C. OUTLOOK 48 THE LISTED PROPERTY COMPANY SPECIALISED IN CITY-CENTER RETAIL STORES
Slide 49: 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 50: 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 51: Disclaimer
DISCLAIMER DISCLAIMER This document has been produced by SELECTIRENTE (the "Company") for corporate presentation purposes only. This document may not be reproduced or distributed, in whole or in part, by any person other than the Company. The Company disclaims any liability for the use of this docum