Gecina Sa · EURONEXT:GFC
Gecina Sa — Shareholder Meeting (May 2006)
57 slides from Gecina Sa's shareholder meeting presentation, May 23, 2006
Slide 1: Combined General Meeting
Combined General Meeting May 23, 2006
Slide 2: Your Company's business in 2005
Your Company's business in 2005 Joaquin Rivero 1
Slide 3: Committed Board of Directors
Committed Board of Directors 12 meetings in 2005 93% attendance rate 18 Board members, over half of whom are independent Directors 2
Slide 4: Specialized Board committees meeting on a regular basis
Specialized Board committees meeting on a regular basis 3 committees made up primarily of independent Directors Appointment and Compensation Committee ` 3 meetings – attendance rate: 92% Account and Audit Committee ` 5 meetings – attendance rate: 87% Quality and Sustainable Development Committee ` 3
Slide 5: Strategy drivers
Strategy drivers KEY FACTORS DRIVING THE STRATEGY Increase in Portfolio Ramping up Diversification asset turnover growth current Branching out into Investing in new Net investor on projects new market assets and selling the French For more segments off mature assets market profitable growth Strength
Slide 6: Gecina in a few figures
Gecina in a few figures Net income Current EBITDA NAV (before change in fair (block value) cash flow value) (before change in fair value) €649.9 Mn €290.3 Mn €412.4 Mn €5,124.6 Mn 5
Slide 7: Strong performance by GECINA's share
Strong performance by GECINA’s share Annual performance of GECINA’s share Attractive yield 33.1% 25.6% 3.2% 23.4% 2005 3.7% 4.0% Gecina IEIF SIIC France CAC 40 Gecina IEIF Foncières CAC 40 28.6% 25.0% 2.8% 2004 4.0% 7.4% 5.0% Gecina IEIF SIIC France CAC 40 Gecina IEIF Foncières CAC 40 Gross yields c
Slide 8: Dividend per share: +5.4% in relation to 2004
Dividend per share: +5.4% in relation to 2004 Steady growth in dividend per share €3.90 +16.4% between 87% of current cash flow after tax paid out in 2005 2004 and 2006 €3.70 4% return on the share price (closing price for 2005: €3.35 €97.0) 2004 2005 2006(1) Sustained distribution effort facilitate
Slide 9: Gecina in 2005
Gecina in 2005 Antonio Truan 8
Slide 10: GECINA's diversified property holding
GECINA’s diversified property holding KEY FIGURES Total surface area 2.58 Mn sq.m Number of properties 436 2005 annual rent €515 Mn Holding block value (Dec-05) €8,793 Mn Occupancy rate (physical) 96.7% Breakdown by asset type Breakdown by asset type (% of value of property holding) (% surface area
Slide 11: Breakdown of GECINA's portfolio
Breakdown of GECINA’s portfolio KEY FIGURES - RESIDENTIAL KEY FIGURES - OFFICES Total surface area 1.24 Mn sq.m Total surface area 1.13 Mn sq.m Number of properties 239 (17,991 apart.) Number of properties 171 (1) 2005 annual rent €204 Mn 2005 annual rent €308 Mn Occupancy rate (financial) 98.5% Occ
Slide 12: Key figures for 2005
Key figures for 2005 € '000,000 Dec-2004 Dec-2005 Change (%) Rental income 493.7 515.0 4.3% EBITDA (before change in fair value) 396.1 412.4 4.1% Current cash flow (before change in fair value) 277.9 290.3 4.4% Change in fair value of investment properties 424.4 393.1 7.4% Consolidated net income (G
Slide 13: Arbitrage focusing on more profitable assets
Arbitrage focusing on more profitable assets Property turnover in favor of commercial real estate Result of efforts to rebalance the and new activities property holding Rental income Net rental margin €'000,000 (net rent/gross rent) 87.3% 87.2% 515.0 493.7 59.8% 59.1% 0.5% 40.9% 39.7% 2004 2005 2004
Slide 14: Strong growth in NAV per share
Strong growth in NAV per share Change Asset valuation and NAV Dec 2004 Dec 2005 Total change like-for-like € Mn € Mn % % Property holding (GAV): Block value(1) (€ Mn) 8,068.0 8,792.7 9.0% 7.2% Unit value(2) (€ Mn) 8,810.5 9,515.0 8.0% 6.2% NAV - diluted: NAV - block(1) (€ Mn) 4,589.4 5,124.6 11.7% N
Slide 15: Portfolio value by asset type
Portfolio value by asset type Change Portfolio value (block) Dec-2004 Dec-2005 Total change like-for-like € Mn € Mn % % Offices 4,550 4,882 7.3% 5.9% Residential 3,518 3,630 3.2% 8.6% Other segments 0 281 Total value of property holding 8,068 8,793 9.0% 7.2% Logistics / hotels 3% Residential 41% Off
Slide 16: Transactions carried out in 2005
Transactions carried out in 2005 Disposals Sale Capital Number price gains of properties Number of Surface area € Mn € Mn (block) apartments sq.m Offices 337.1 17.1 16 - 63,150 Residential 163.2 6.3 3 690 61,953 Total 500.3 23.4 19 690 125,103 €500.3 Mn in disposals in 2005 €23.4 Mn in capital gains
Slide 17: Investments announced in Q4 2005
Investments announced in Q4 2005 NEARLY €900 MILLION INVESTED Surface Investment Investments Sector sq.m Yield BY SEGMENT: (€ Mn) 64% offices 4 Club Med villages Hotels 88,000 194 7.0% 26% hotels Levallois-Perret Offices 27,000 196 6.1% 10% logistics Neuilly Offices 13,000 74 6.7% Orion portfo
Slide 18: Growing number of projects
Growing number of projects PROJECTS Surface Investment Completion Estimated City (sq.m) € Mn date yield % 122 av du Général Leclerc Boulogne 11,411 37.4 June 2006 159 av Charles de Gaulle Neuilly 3,826 28.1 January 2006 Le Figaro, 37 rue du Louvre Paris 8,196 62.8(1) June 2008 Centre commercial Beau
Slide 19: A policy of information and dialog
A policy of information and dialog Institutional investor relations in 2005 ` Numerous meetings with investors and financial analysts, visits of properties ` 1 SFAF meeting (annual results) ` 1 conference call (half-year results) ` January 2006: 1st Investor Days over 2 days in Paris (presentation o
Slide 20: Share price and shareholding structure
Share price and shareholding structure Change in share price (€) 2005 2006 to date 125 Gecina +33% Gecina +0.26% EPRA +22% EPRA +8.46% Gecina €97.25 (May 18, 06) 100 75 Shareholding structure at Dec 31, 05 16,447 shareholders / 62,210,448 shares 50 Jan-05 Feb-05 Mar-05 May-05 Jun-05 Aug-05 Sep-05 Oc
Slide 21: 2005 financial data
2005 financial data Michel Gay 20
Slide 22: Balance sheet
Balance sheet Assets Dec-2004 Dec-2005 Liabilities Dec-2004 Dec-2005 Non-curret assets 7,540.4 8,476.0 Capital and reserves 4,601.9 5,082.3 Investment properties 7,319.4 8,233.8 Share capital 465.8 466.6 (fair value) Issue premiums 1,876.0 1,854.0 Buildings under construction 124.7 144.7 Consolidate
Slide 23: Healthy financial structure
Healthy financial structure Balance sheet at Dec 31, 05 Effectively managed level of debt (€ billion) Loan to value ratio 36.4% 36.7% 33.4% 33.9% block unit Shareholders’ equity 5.1 Dec 31, 04 Dec 31, 05 Fixed assets 8.7 Interest expense stabilized in 2005 Gross EBITDA / net financial expenses finan
Slide 24: Debt structure
Debt structure Cost of debt Balanced sourcing of debt 4.72% 4.63% Financial leases 5% 4.37% 13% Bonds 4% 42% 3% Bank loans 33% 2% Commercial paper 2004 H1 05 2005 12% Average maturity of debt: 4.6 years Low variable rate exposure: 15% 1000 Variable-rate 800 15% Fixed-rate / hedged 600 85% 400 200 0
Slide 25: Pre-tax diluted cash flow per share: +5.8%
Pre-tax diluted cash flow per share: +5.8% €'000,000 2005 2004 2005/2004 Pre-tax current cash flow(1) 290.3 277.9 +4.4% Current cash flow(1) after tax 266.3 265.3 +0.4% Pre-tax profit(1) 287.8 273.5 +5.3% (1) Including income from asset disposals and before change in fair value € 2005 2004 2005/2004
Slide 26: Office property holding
Office property holding André Lajou 25
Slide 27: Active commercial markets trending up over 2005
Active commercial markets trending up over 2005 Record year for the investment market Encouraging signs for the rental market Commitments: €15.7 billion Greater Paris Region: (€12.1 billion in 2004, +30%) Fulfilled demand: 2,165,300 sq.m (1,930,600 sq.m in 2004) “Premium” office rate: Immediate supp
Slide 28: Growing contribution to GECINA's business
Growing contribution to GECINA’s business Close to 60% of the Group’s rental High margin continuing to rise income in 2005 Rental income Net rental margin €'000,000 (net rent/gross rent) 93.0% 308.2 +5.7% 92.6% 291.6 59.8% 59.1% 2004 2005 2004 2005 27
Slide 29: High-quality commercial portfolio
High-quality commercial portfolio 9 Low rental risk profile 9 Average lease: 5.8 years 9 Satisfactory financial occupancy rate: 94.0% 9 Average rent on tenants in place: 9 20 biggest clients accounting for 43% of the Group’s €339/sq.m/year commercial rental income and 26% of the Group’s total 9 67,2
Slide 30: Provisional key figures for 2006 Commercial Real Estate Division
Provisional key figures for 2006 Commercial Real Estate Division Provisional Provisional 2006 budget investments disposals 9Gross rent: €305 Mn 9€375 Mn (buildings 9€256 Mn in operation) 9EBITDA: €280 Mn 9Yield 3-7% 9Yield 5.5% 9Net income: €304 Mn (before fair value adjustment) 9Average sales price
Slide 31: Residential property holding
Residential property holding Yves Dieulesaint 30
Slide 32: Contrasting residential markets
Contrasting residential markets Vitality of the market confirmed for acquisitions Private rental sector leveling off: less pressure from demand Still sustained growth, at an annual rate of 3.1% in In Paris, rents rose 4.4% in 2005, after 3.4% and 2005, with 650,000 transactions, compared with 4.8% t
Slide 33: Stable and secure activity
Stable and secure activity Nearly 40% of the Group’s rental income in 2005 Stable margin Rental income Net rental margin €'000,000 (net rent/gross rent) 80.2% 79.2% 204.5 +1.2% 202.1 39.7% 40.9% 2004 2005 2004 2005 32
Slide 34: Residential business in line with forecasts
Residential business in line with forecasts Group’s average monthly rent (€/sq.m (living 9 Financial occupancy rate in December 2005: 98.5% space)) 9 168,855 sq.m (2,653 apartments) re-let All GECINA properties Average Re-let in over 2005 (15.5% of the property holding) in operation monthly rent 200
Slide 35: Provisional key figures for 2006 Residential Real Estate Division
Provisional key figures for 2006 Residential Real Estate Division Provisional Provisional 2006 budget investments disposals 9 Gross rent: €203 Mn 9 €50 Mn 9 €250 Mn / €275 Mn 9 EBITDA: €156 Mn 9Initial yield: 9 €30 Mn / €35 Mn 4.0%-4.5% income on disposals 9 Net income: €191 Mn (before fair value ad
Slide 36: Property holding - other segments
Property holding - other segments Méka Brunel 35
Slide 37: Hotels: acquisition of the Club Méditerranée portfolio
Hotels: acquisition of the Club Méditerranée portfolio An investment enabling GECINA to gain a foothold on the hotel- leisure market with a leading international tenant in first-rate tourist destinations 4 Club Med holiday 1 569 rooms villages €227 Mn Investment (including work) Val d´Isère (Savoie)
Slide 38: Logistics: Greater Paris Region
Logistics: Greater Paris Region Orion portfolio 3 category A 122,867 sq.m warehouses in Greater Paris Region Investment (gross of all costs) €89 Mn Occupancy rate as on the acquisition date 63% (Nov-05) Occupancy rate based on latest leases 90% signed (Jan-06) 37
Slide 39: Healthcare: Hestia - Générale de Santé (Q1 2006)
Healthcare: Hestia - Générale de Santé (Q1 2006) Générale de Santé portfolio Number of assets 28 Investment €536 Mn Further improvement work €30 Mn Annualized triple net rent €32.4 Mn (as of September 2006) Secure rental flows Through to 2018 Expected yield 6.04% 38
Slide 40: Provisional key figures for 2006 Strategic Development Division
Provisional key figures for 2006 Strategic Development Division Provisional Provisional 2006 budget investments disposals 9 Gross rent: €34 Mn 9 €500 Mn 9 €31.2 Mn 9 EBITDA: €30 Mn 9 Net yield of 9€18.9 Mn in income 6.75% from disposals 9 Net income: €49 Mn (before fair value adjustment) 39
Slide 41: Statutory Auditors' reports
Statutory Auditors’ reports 40
Slide 42: Questions and answers
Questions and answers @ cecina 41
Slide 43: Draft resolutions
Draft resolutions @ cecina 42
Slide 44: 1st resolution: Approval of annual financial statements
1st resolution (ordinary) Approval of the annual financial statements for 2005: Net profit of 159,688,661.03 euros 43
Slide 45: 2nd resolution: Approval of consolidated financial statements
2nd resolution (ordinary) Approval of the consolidated financial statements for 2005: Net profit (Group share): 649,900 thousand euros 44
Slide 46: 3rd resolution: Transfer to a specific reserve
3rd resolution (ordinary) Transfer of 48,620,790 euros over to a specific reserve account, booked against revaluation gains 45
Slide 47: 4th resolution: Appropriation of income
4th resolution (ordinary) Appropriation of income: Earnings for the year 159,688,661.03 euros Less retained earnings -30,882,789.88 euros Plus withdrawal against reserves eligible for distribution 113,814,876.05 euros = distribution of up to 242,620,747.20 euros Dividend per share 3.90 euros To be p
Slide 48: 5th resolution: Regulated agreements
5th resolution (ordinary) Regulated agreements Approval of the agreements mentioned in the special statutory Auditors’ report ( Articles L.225-38 et seq of the French commercial code) 47
Slide 49: Antoine Jeancourt-Galignani
6th resolution (ordinary) Reappointment of Antoine Jeancourt-Galignani as a Director for a three-year term-of-office 48
Slide 50: Victoria Soler Lujan
7th resolution (ordinary) Appointment of Victoria Soler Lujan as a Director for a three-year term-of-office 49
Slide 51: Santiago de Ybarra y Churruca
8th resolution (ordinary) Appointment of Santiago de Ybarra y Churruca as a Director for a three-year term-of-office 50
Slide 52: METROVACESA – Antonio Truan
9th resolution (ordinary) Appointment of METROVACESA – Antonio Truan as a Director for a three-year term-of-office 51
Slide 53: Attendance allowances
10th resolution (ordinary) Attendance allowances Annual total: 1,100,000 euros 52
Slide 54: 11th resolution: Authorization to buy and sell Company shares
11th resolution (ordinary) Authorization to buy and sell Company shares on the stock market (Article L.225-209 et seq of the French commercial code) • Maximum price: 160 euros • Maximum percentage: 10% of the share capital • Authorization period: 18 months as of this date 53
Slide 55: 12th resolution: Amendment to bylaws
12th resolution (extraordinary) Amendment to Clause 14 of the bylaws relative to the deliberations of the Board of Directors Amendment to Clause 18 of the bylaws relative to the Auditors Amendment to Clause 19 of the bylaws relative to Director or Auditor compensation for missions or offices 54
Slide 56: 13th resolution: Authorization to reduce share capital
13th resolution (extraordinary) Authorization to reduce the share capital by canceling treasury stock (Articles L.225-209 et seq of the French commercial code) • Maximum number of shares that may be cancelled: 10% of the number of shares outstanding per 24-month period • Validity: 26 months 55
Slide 57: 14th resolution: Powers for all formalities
14th resolution (extraordinary) Powers for all formalities 56