2016 Annual ResultsTertiary in Paris 139,228 1,677 64 3.8 % o/w Paris CBD 113,002 1,496 55 3.7 % ......
Transcript of 2016 Annual ResultsTertiary in Paris 139,228 1,677 64 3.8 % o/w Paris CBD 113,002 1,496 55 3.7 % ......
la foncière parisienne
2016 Annual Results
March 8, 2017
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Content
I. Introduction
II. Portfolio
III. Rental business
IV. Financial results
V. Outlook
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2016: key figures
• EPRA liquidation NAV
• Rental income Parisian Tertiary
• Revalued portfolio
• % of assets within Paris
• LTV ratio
• 2016 Dividend*
* To be approved by the General Meeting of Shareholders
€45.08 € per share (+21.4 %)
€57.0m (+7.4 %)
€1,944m (+13.5 %)
95 % (+5 pts)
39 % (-5 pts)
€0.79 per share (+3.9 %)
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Content
I. Introduction
II. Portfolio
III. Rental business
IV. Financial results
V. Outlook
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2016 : a new year of strong growth of portfolio
End of2016
Acquisitions + Capex
RevaluationsDisposals (Value 2015)
End of2015
End of 2016 before
revaluations
Refocusing strategy on Prime Parisian
Tertiary
In € millionPortfolio: + 13.5 %
* Sales price: €89m
1,944
+109
+211
-88*
1,712 1,733
2,088
End of2016
Lfl: +12.2 %Replacement
value
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Sq.m.Value excl.
duties
Rentalincome
€m
Yield / Value
€/sq.m.
Tertiary in Paris 139,228 1,677 64 3.8 %
o/w Paris CBD 113,002 1,496 55 3.7 %
Residential 17,160 162 4 €9,457 €9,361
4.4 %
4.3 %
2015
2016
Renewed compression of yields in 2016
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Acquisition of three buildings to CNCin the middle of Paris CBD for €101m
• Office buildings at 11, 32/34 rue Galilée et 10/12 rue de Lübeck (Paris 16e)
• Rental area: 8,316 sq.m.
• CNC tenant > end of Q1 2018
• Annual yield of around 4.60 % after refurbishment and re-commercialisation
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2016 disposals: €89.4m*Net book gain: €31.8m
* Sales price. Appraisal value: €88m
Residential in Paris
• 2016 disposals: €34.8m • Average price of €10 642/sq.m.• Net book gain: €19.2m
Paris area and Regions
• 2016 disposals: €54.6m• Net book gain: €12.6m
Continuation of sales of non strategic assets for €89m
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Concentration on Prime parisian Tertiary
41 avenue de Friedland, 8e
Purchase incl. duties 2014: €75.1m
Appraisal value excl. duties at 31 Dec. 2016: €97.7m
11 bis rue Roquépine | 14 rue Cambacérès, 8e
Purchase incl. duties 2011: €34.8m
Appraisal value excl. duties at 31 Dec. 2016: €61.3m
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Concentration on Prime parisian Tertiary
31-39 boulevard Sébastopol, 1er
Purchase incl. duties 2011: €69.1m
Appraisal value excl. duties at 31 Dec. 2016: €110.7m
14-16 boulevard Poissonnière, 9e
Purchase incl. duties 2011: €119.5m
Appraisal value excl. duties at 31 Dec. 2016: €226.1m
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Concentration on Prime parisian Tertiary
50-52 boulevard Haussmann, Paris 9e
Purchase incl. duties 2013: €146.5m
Appraisal value excl. duties at 31 Dec. 2016: €223.7m
17 avenue George V, 8e
Purchase incl. duties 2010: €40.3m
Appraisal value excl. duties at 31 Dec. 2016: €67.3m
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0.2
1.2
0.7 1.95
0.15
End of 2008
End of 2016
(0.3)
Acquisitions
Merger A&I
Reval.Disposals
+€1.8Bn
40%
50%
10%
Revaluations
Acquisitions
less disposals
Merger A&I
Increase over 8 years
Billion of euros
Portfolio growth drivers 2009 - 2016
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92%
2011 2016
78% 95%
2011 2016
77% 88%
2011 2016
92%82 %
92 %
92%92%78 %
95 %
78% 95%92%92%77 %
88 %
Focusing on Tertiary assets within the Paris CBD
€1,1 billion €1.9 billion
…on the Tertiaryvs Residential
€1.1 billion €1.9 billion
…on Paris vs regions
€0.9 billion €1.7 billion
…on Paris CBD vs Paris out of CBD
A continuing strategy of focusing the assets portfolio…
Basis 100 % total assets
Basis 100 % total assets
Basis 100 % Tertiary parisian
assets
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Content
I. Introduction
II. Portfolio
III. Rental business
IV. Financial results
V. Outlook
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2.4
70.7
Acquisitions less
disposals
1.6 (2.9)
Residential (0.5)
Improvementof financialoccupancy
rate 66.7
(4.5)
Disposals
Leasemanagement
Parisian Tertiary rental income: +€3.9m (-€4.0m globally)
Parisian Tertiary: +€3.9m
Total rental income (€m)
Other Tertiary: - €7.4m
2015 2016
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Paris Paris
55.847.6
435461
2016 key indicators for Parisian Tertiary assets (excl. Retail)
Potential revenues (€m)
ParisCBD
Rental income (€/sq.m.)
Paris CBD
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€41.5m
€7.7m
145
70
49,2 M€ 215
Secured Parisian Tertiary portfolio by a high number of leases
296 sq.m.
583 sq.m.
Paris CBD
Paris excl. CBD
Number of leases
Average area / lease
Paris Tertiary rental income
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2014 2015 2016 2014 2015 2016
8.0 % 9.2 %
Relocations: Rues Galilée, St Lazare et Lafayette (under restructuration in 2015) Rue Chaptal and avenue de Friedland
6.0 % 5.8 %6.8 %
4.4 %
Decrease in EPRA vacancy rate
Based on leasable portfolio
Total portfolio Paris Tertiary
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29 %41 %
5 %
€8.0m
25 %
2016 investments on portfolio
Maintenance and repair (reinvoiced to tenants)
Refurbishing and valuation works
Works related to acquisitions
Works related to disposals
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BREEAM Certification process of parisian Tertiary
Target: 77 % of
parisian Tertiary
assets being
certified at the end
of 2017
Certifications
at the end of 2016:
40% Very Good
ou GoodCertifications
planned in 2017:
37%, o/w 29%
on process
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Content
I. Introduction
II. Portfolio
III. Rental business
IV. Financial results
V. Outlook
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66.7
(1.1)(5.3)(0.8)
(28.8)(0.8)
29.9
2016 2015
-5.6 %
-10.6 %
Change %
70.7
(1.1)(5.7)(0.8)
(28.8)(0.8)
33.5
EPRA Earnings
Rental income
Rental expenses incurred and othersSG&AOther operating revenues and chargesFinancial resultTaxes
EPRA Earnings
(In € million)
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29.9
(29.7)(3.2)31.8(1.2)(4.4)
23.2
2016 2015
-10.6 %
+39.0 %
Change %
33.5
(32.0)(11.9)
27.1--
16.7
Net result
EPRA Earnings
Amortisation on investment propertiesDepreciation on investment propertiesProfit on disposalsFair value of financial instrumentsTermination cost of Issy swap
Net result
(In € million)
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31.83
End of
2014
37.12
End of
2015
+21.4 %
45.08
End of
2016
Renewed growth of EPRA liquidation NAV: +21.4 %
Two leverages for growth:
Strategy of focusing of assetson Paris CBD
Mechanical effect of the reimbursement of annuallyredeemable loans
€ per share
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Breakdown of NAV
(€m)31 December
201631 December
2015
Buildings 1,944 1,712
o/w Tertiary Paris 1,677 1,353
o/w Tertiary Ile-de-France and regions 105 165
o/w Residential 162 194
Net debt -761 -746
Others -26 -13
EPRA Liquidation NAV 1,157 953
Acquisition costs 145 106
Replacement NAV 1,301 1,059
Number of shares (diluted, net of own control) 25,660,210 25,663,444
EPRA Liquidation NAV per share €45.08 €37.12
Replacement NAV per share €50.71 €41.26
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€1,712m
€746m
44 %
€1,944m
€761m
39 %
Comfortable level for LTV ratio
Revalued portfolio Net debt LTV ratio
End of 2016End of 2015
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2017 2019 2021 2023 2025 2027 2029 2031
€120m
€40m
68 %
20 %
11 % €761m
1 %
Secured long term financing
Net debt breakdown as of 31 December 2016
• 2016 weighted average cost of debt: 3.65 %
• 100 % redeemable loans
• In fine
• Credit lines
• Corporate financing
Maturities per year (In €m)Situation as of 31 December 2016
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En €/action
2008 2009 2010 2011 2012 2013 2014 2015 2016
+3.9 %
0.39
0.40
0.79*
A sustained growth policy for the dividend
Complement to total dividend
Interim dividend
+ 8.0% on a yearly average
* To be approved by General Meeting of Shareholders on May 10, 2017
0.21
0.43
0.23
0.460.26
0.30
0.220.27
0.61
0.220.24
0,30
0.310.49
0.57
0.32
0.32
0.64
0.34
0.36
0.70
0.38
0.38
0.76
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Content
I. Introduction
II. Portfolio
III. Rental business
IV. Financial results
V. Outlook
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2009 2010 2011 2012 2013 2014 2015 2016
25,1 26,0
85,665,0
91,0
118,0 115,8
211,0 Continuous search for quality assets in Paris on strict criteria (multi-tenancy, occupancy rates, etc)
Acquisitions on optimal conditions
Valuation gain realized at the acquisition
€737m of value created over 2009-2016 (o/w €211m in 2016)
Clear positioning of long-term and proactive investor
In €m
Value created as measured by experts
revaluations
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2017 outlook
• Goal: keep focusing on Paris CBD
• TERREÏS will continue to seek investment opportunities which come available in the prime Paris Tertiary sector
• Will pursue to optimize the resale of its residential, and tertiary assets regional and Paris area in optimal conditions
• Net proceeds from disposals will be reinvested in tertiary assets within Paris CBD
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Residential €162m
Regions€22m
Paris area€83m€267m
of assets on sale, or
14 % of total portfolio
€267m of assets on sale
Net proceeds from disposals to be reinvested in tertiary assets within Paris CBD
Tertiary within Paris
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• Sale price: €44m
• Net book gain: €23m
Tertiary assets in the Paris area: Antony, sold in January 2017
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Tertiary assets in the Paris area: Ivry sur Seine
60-61 Quai Auguste Deshaies
13,000 sq.m., vacant since mid-February 2016
Relocation or conversion into hotel residence
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Residential assets in Paris
25-27 rue MarbeufParis 8e
43 rue de LilleParis 7e
10-12 avenue de Messine Paris 8e
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Assets in the regions
Shopping arcade,
downtownChartres
Tours (4,500 sq.m.)
Thiers TowerNancy
(4,300 sq.m., 20%)
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TERREÏS’ Model key aspects
• Property investment company focused on tertiary assets in Paris CBD with diluted tenant risk and high occupancy rates
• Strong capacity to create value from the moment of acquisition and through optimal and inexpensive management conditions
• Financing through fixed rates mortgaged-redeemable loans
• Dividend partly provided by non-strategic assets disposals programme
• Mechanical improvement of NAV through annual reimbursement of debt
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NAV and net debt long term trends
Net debt
Liquidation NAV
• Everything being equal, the regular reimbursement of a 100% mortgaged-redeemable debt mechanically improves NAV and mechanically reduces LTV ratio
Time
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2011 2012 2013 2014 2015 2016
8,75 €/share
Global value creation 2011 - 2016
Gain on NAV/share (Year N NAV – Year N-1 NAV) €/share
Dividend (€/share)
Gain on NAV + dividend / NAV at the begining of period
* To be approved by the General Meeting of Shareholders
7.96
0.79*
4.574.16
3.56
5.27 €/share4.77 €/share
4.13 €/share 4.04 €/share
0.700.640.610.57
3.40
5.29
0.76
6,05 €/share
25,6 %24,2 %
16,9 %19,3 % 19,0 %
23,6 %
APPENDIX
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66.7
2.1(2.5)(0.7)
65.6
(5.4)
60.2
(30.5)
29.7
-5.7 %
-5.6 %
-
-4.6 %
-4.5 %
2016 Change %2015
100.0 %
98.4 %
90.3 %
44.5 %
70.7
2.0(2,5)(0.7)
69.5
(6.4)
63.1
(32.0)
31.1
100.0 %
98.4 %
89.3 %
44.0
Profit and loss account (1/2)
(In € million)
In % of rental income
In %of rental income
Rental income
Other revenuesReinvoiced chargesManagement and rental fees
Net revenue income
Operating charges
EBITDA
Depreciation
Current operating income
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29.7
31.6(2.7)
58.6
(34.5)(0.8)
23.2
22.60.6
€0.88
2016 2015
-4.5 %
+26.6 %
+38.9 %
+39.7 %
31.1
27.1(11.9)
46.3
(28.8)(0.8)
16.7
16.10.6
€0.63
(In € million) Change %
Current operating income
Margin on assets disposalsOthers
Operating income
Financial incomeTaxes
Net income
Group shareMinority interests
Net income per share
Profit and loss account (2/2)
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1,0167
698
1,100
223
745702
13268
1,100
2016 2015
1,03213
1810
1,073
216
722674
13589
1,073
Consolidated balance sheet
(In € million)
ASSETS
BuidingsOther non current assets
Current assetsCash
Total
Shareholders equity
Non current liabilitieso/w financial debt
Current liabilitieso/w financial liabilities
Total
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54 %
Float
46 %
(€410m)*
Ovalto
Investissement44 % 56 %
* Size of Float at March 1, 2017
TERREÏS shareholding basis as of 31 December 2016
Institutional
shareholders
(60 % France,
40 % International)
Individual
shareholders
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Disclaimer
The present document contains projections and descriptions of TERREÏS’ future strategy, objectives and prospects.
These projections and descriptions may be affected by known or unknown risks, uncertainty and other random factors that could ensure that TERREÏS’ future results, performance and achievements are significantly different from what is envisaged or suggested in the present document. These risks are described in the « Risks Factors » part of the Document de Référence registered with AMF on April 6, 2016 with the number D.16-0290.
TERREÏS makes no commitment and extends no guarantee that it will fulfil or meet its future strategy, objectives and prospects.
Unless the law states otherwise, TERREÏS makes no commitment to update or revise the projections and descriptions contained in the present document.
The present document does not constitute in any way a solicitation to sell, buy or subscribe to TERREÏS shares.