Colonial Sfl Socimi Sa · BME:COL

Colonial Sfl Socimi Sa — Inmobiliaria Colonial SOCIMI — Investor Day (July 2022)

30 slides from Colonial Sfl Socimi Sa's investor day presentation, Jul 11, 2022

  1. Slide 1: Colonial Investment Thesis

    Colonial Investment Thesis Carmina Ganyet Corporate Managing Director Capital Markets Day 2022

  2. Slide 2: Disclaimer

    Disclaimer By attending this presentation and receiving this document (the “Presentation”), you are agreeing to be bound by the following limitations. Any failure to comply with these restrictions may constitute a violation of applicable securities laws and/or may result in civil, administrative or

  3. Slide 3: Investment Thesis

    INVESTMENT THESIS I Key Investment Highlights II Capturing the Benefit of Polarization III Active Management for additional Alpha IV Active Balance Sheet Management V Conclusions 3

  4. Slide 4: The Best Office Product

    I Key Investment Highlights The Best Office Product COLONIAL – THE FULL BENEFIT OF POLARIZATION > Superior Grade A with unparalleled City Center/ CBD exposure 98%1 City Center More than > Most sustainable product with leadership in decarbonization €12bn GAV 80%2 CBD > Best locations with best servic

  5. Slide 5: The Best Office Product

    I Key Investment Highlights The Best Office Product COLONIAL – THE FULL BENEFIT OF POLARIZATION PARIS MADRID BARCELONA Place de l’Étoile Place de la Concorde Tour Musée du Eiffel Louvre Plaza de Colón 5

  6. Slide 6: Outstanding Track Record In Earnings & NTA Growth

    I Key Investment Highlights Outstanding Track Record In Earnings & NTA Growth NTA - €bn Recurring Earnings- €m 128 6,5 +4.3x +7.5x 1,5 17 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021 NTA per share - €/sh Recurring EPS - €cts/sh 12,04 28-29 25 +150% +107% 4,80 14 20

  7. Slide 7: Superior Portfolio returns on the back of Polarization

    I Key Investment Highlights Superior Portfolio returns on the back of Polarization Gross Asset Value - €bn Gross Rental Income - €m 12,4 314 +114% +48% 211 5,8 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021 CBD Exposure - €bn Net Rental Income - €m 293 10,3 +53% +139

  8. Slide 8: Investment Thesis

    INVESTMENT THESIS I Key Investment Highlights II Capturing the Benefit of Polarization III Active Management for additional Alpha IV Active Balance Sheet Management V Conclusions 8

  9. Slide 9: Colonial Portfolio Outperforming its Peers in every market

    II Capturing the Benefit of Polarization Colonial Portfolio Outperforming its Peers in every market CBD EXPOSURE1 OCCUPANCY LAST REPORTED1 GAV LFL1 2019 2020 2021 80% 96% 9,0% 1,2% 6,0% Peer 1 78% 94% 6,6% (0,8%) 3,9% Peer 2 55% 93% 2,4% (1,8%) 2,1% Peer 3 54% 90% 4,8% 1,0% 0,5% Peer 4 29% 88% 2,9%

  10. Slide 10: Setting the benchmark in Prime

    II Capturing the Benefit of Polarization Setting the benchmark in Prime PARIS MADRID BARCELONA €/sqm/year €/sqm/month €/sqm/month 940 930 940 907 29 >37 28 28 28 Market 850 36 35 35 25 Market Prime 34 Market 32 24 Prime 787 ERV 30 Prime 780 765 27 ERV 762 26 ERV 20 19 19 Colonial1 Colonial1 Colonial

  11. Slide 11: Superior Pricing Power – Beating the market

    II Capturing the Benefit of Polarization Superior Pricing Power – Beating the market Prime ERV Growth - Colonial vs Market average ERV Growth 2019 2020 2021 22YTD2 +9% GROUP +6% +6% +5% +5% +8% 7% +6% +6% 5% +5% PARIS +7% +9% +8% +5% +4% 3% Colonial ERV 3% Growth 2% Market Prime MADRID +4% +2% +1% +

  12. Slide 12: Superior Pricing Power – Beating the market

    II Capturing the Benefit of Polarization Superior Pricing Power – Beating the market Release Spread – Colonial vs. Peers Average3 Release Spread 2019 2020 2021 22YTD2 +26% GROUP +14% +17% +7% +8% +17% PARIS +7% +6% +2% +6% +14% +13% +8% +7% Colonial MADRID +9% +15% +4% +8% 6% 5% 6% 5% Release Spread

  13. Slide 13: Maximum occupancy levels through flight to quality

    II Capturing the Benefit of Polarization Maximum occupancy levels through flight to quality FLIGHT TO QUALITY TRANSLATED INTO SOLID OCCUPANCY QUALITY AS GUARANTEE FOR MAXIMIXING OCCUPANCY2 Colonial 96% 97% Pier 1 95% 98% 96% 97% Pier 2 95% 96% Today´s portfolio1 96% 95% 94% Pier 3 95% 94% Pier 4 94%

  14. Slide 14: Strong Topline On The Back Of Solid Operations

    II Capturing the Benefit of Polarization Strong Topline On The Back Of Solid Operations SOLID OPERATIONAL PERFORMANCE LEADING TO STRONG INCREASE IN GRI LFL ERV & Release Spread GRI LFL growth +26% +7% +17% +6% +14% +5% +13% +4% +4% +9% +9% +8% Release +3% +3% +7% +6% +6% Spread +5% +2% +4% ERV +1% G

  15. Slide 15: Attracting the best clients with high loyalty

    II Capturing the Benefit of Polarization Attracting the best clients with high loyalty HEALTHY SECTOR MIX INTERNATIONALLY DIVERSIFIED HIGH TENANT LOYALTY Avg. Loyalty 14 years Government Other Professional Japan Other 6% Services Sweden 3% 6% France Bodies <5 years 26% 3% 30% >5 years 5% 18% Germany

  16. Slide 16: Attracting the best clients with high loyalty

    II Capturing the Benefit of Polarization Attracting the best clients with high loyalty IMPROVING THE TENANT MIX… ATTRACTING HIGH VALUE-ADDED CLIENTS Communication More tech +1.683bp 11% & IT Clients with Professional large demands 5% 24% 25% 26% 26% 28% services 10% Professional services +1.487bp 7%

  17. Slide 17: Investment Thesis

    INVESTMENT THESIS I Key Investment Highlights II Capturing the Benefit of Polarization III Active Management for additional Alpha IV Active Balance Sheet Management V Conclusions 17

  18. Slide 18: Flight to quality – Capital Recycling reloading Prime

    III Active management for Additional Alpha Flight to quality – Capital Recycling reloading Prime ONGOING FLIGHT TO QUALITY THROUGH ACTIVE CAPITAL ALLOCATION 2015 Alpha I Alpha II Alpha III Alpha IV 2019 2020 2021 2022 1. Prioritize opportunities in prime Alpha Alpha VII 2. Enhance exposure to high q

  19. Slide 19: Double Digit Premium on Disposals

    III Active management for Additional Alpha Double Digit Premium on Disposals Colonial Group Divestment Through Last Cycle Disposal with Double digit Premium On GAV Disposals premium on GAV (%) 27% +15% Avg. Premium on GAV 15% Avg. Premium +15% 12% 11% 11% 11% 7% +27% +7% Max Min Premium on Premium o

  20. Slide 20: Prime Factory with High Double Digit capital gains

    III Active Management for additional Alpha Prime Factory with High Double Digit capital gains SUCCESFUL INVESTMENT STRATEGY… …WITH A STRONGDELIVERY OF VALUE CREATION Capital Gain1 on 2021 Deliveries Diagonal 525 Marceau 1.000 +40% +108% 890 672 678 533 499 Capital Gain1 on selected assets 160 5 Disc

  21. Slide 21: Prime Factory with Solid GAV Growth

    III Active Management for additional Alpha Prime Factory with Solid GAV Growth GAV LFL growth Disposals Premium on GAV +27% +16% +12% +15% Avg. Premium +15% +10% +9% 12% +9% Avg. +9% +8% +11% 11% +11% +6% +7% +1% 2014 2015 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 2022 21

  22. Slide 22: Outstanding DPS Growth Profile on the back of superior earnings

    III Active Management for additional Alpha Outstanding DPS Growth Profile on the back of superior earnings DPS evolution (€/sh) DPS Yield on Cost 6/14 base DPS Growth +10% +9% +11% +0% +10% +10% YoY 0,24 5,4% 0,22 +60% 4,9% 0,20 0,20 4,4% 4,4% 0,18 4,0% 0,17 3,7% 0,15 3,3% 2016 2017 2018 2019 2020 2

  23. Slide 23: Unparallel NTA Based Total Return

    III Active Management for additional Alpha Unparallel NTA Based Total Return STRONG MOMENTUM IN NAV GROWTH TOTAL SHAREHOLDER RETURN €/share +7.6€ Capital Value Creation 1.1 13.5 6/14 – 12/21 CAGR 12.04 1.3 1.6 +193% NAV Growth +168% +13% 4.7 per share Cum. Dividend paid +25% +1% per share 4.49 Total

  24. Slide 24: Investment Thesis

    INVESTMENT THESIS I Key Investment Highlights II Capturing the Benefit of Polarization III Active Management for additional Alpha IV Active Balance Sheet Management V Conclusions 24

  25. Slide 25: Balance Sheet Management Fully Hedged

    IV Active Balance Sheet Management Balance Sheet Management Fully Hedged Assets Liabilities €12bn of Prime Assets €4.7bn of Net Debt > Portfolio with 80% CBD Exposure > BBB+ credit rating by S&P, highest in Spanish Real Estate > Green portfolio with 95%1 Leed / Breeam > 100% Green Bonds: 1st issuer

  26. Slide 26: Interest Rate Risk Under Control & No Refinancing Risk

    IV Active Balance Sheet Management Interest Rate Risk Under Control & No Refinancing Risk STRONG FINANCIAL POSITION CURRENT LIQUIDITY ENSURING FUTURE FINANCING 90% 5 years +100% 4 years 117 bp €2.5bn Fixed Avg. debt Green Average Average Liquidity Interest rate maturity Bonds Maturity RCF spread Col

  27. Slide 27: Interest Rate Risk Under Control & No Refinancing Risk

    IV Active Balance Sheet Management Interest Rate Risk Under Control & No Refinancing Risk PREHEDGING STRATEGY COVERING HIGH INTEREST RATES 7y FSS curve evolution % Interest rate pre-hedging covering €1.5bn of bonds 3,00 288 bps Hedges contracted in 11/21 pre interest rate increase 2,50 2,00 +214 bps

  28. Slide 28: Investment Thesis

    INVESTMENT THESIS I Key Investment Highlights II Capturing the Benefit of Polarization III Active Management for additional Alpha IV Active Balance Sheet Management V Conclusions 28

  29. Slide 29: Conclusions

    V Conclusions CAPTURING THE FULL BENEFIT OF POLARIZATION > Resilient occupancy through flight to quality strategy > Prime Portfolio with superior Pricing Power > Attracting the best clients with high loyalty ALPHA VALUE CREATION THROUGH ACTIVE MANAGEMENT > Continuous double-digit premium on disposal

  30. Slide 30: www.inmocolonial.com

    www.inmocolonial.com © Colonial

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