FULL-YEAR RESULTS. Presentation of 23 February 2012

Transcription

1 FULL-YEAR RESULTS 2011 Presentation of 23 February 2012

2 KEY FIGURES Affine EPRA earnings per share ( ) EPRA Net Asset Value ( m) Dividend per share ( ) Capital recycling ( m) 2.4 Investment Disposal (44.6) (53.4) (80.7) FULL-YEAR RESULTS 2

3 KEY TAKEAWAYS Affine Portfolio enhancement 30m of acquisition: Gennevilliers and Lyon 53m of disposals: Berlin, and small size assets Sustainable development: Eco-renovation of the tower Traversière in Paris 12 e Tighten control on service charges Better readability Direct readability of the Affine/AffiParis operating performance by consolidating Banimmo through the equity method Acknowledgement of the publication standards in the sector EPRA Bronze medal Withdrawal of its license as a credit institution 2011 FULL-YEAR RESULTS 3

4 EQUITY METHODE BANIMMO AND JARDINS DES QUAIS Affine Impact on the Portfolio Impact on the P&L GI Impact 2010 EM 2010 GI Impact 2010 EM Gross rental income Current operating profit Net profit Impact of the modification from the Global Integration (GI) to the Equity method (EM) Higher transparency of Affine/AffiParis A reduced balance sheet but an identical net profit All datas are proforma with equity method in full-year 2011 FULL-YEAR RESULTS 4

5 GROUP STRUCTURE Affine Affine France Affine group 3 listed property companies 86.9 % 49.5 % AffiParis Paris Banimmo * Belux and France Refurbishment Multi-specialized property companies In commercial real estate SIIC status (French REIT) Portfolio: 709m Concerto European Developer Subsidiary focusing on property development projects for distribution and production logistics Repositioning and redevelopment of real estate in Belgium, France and Luxembourg Portfolio: 392m * Equity method 2011 FULL-YEAR RESULTS 5

6 INVESTMENTS AND DISPOSALS 2011 FULL-YEAR RESULTS 6

7 36M OF INVESTMENTS Investments and disposals Acquisitions 30m Lyons: 10.5m Gennevilliers: 18.8m Arcachon: 0.8m Development & Refurbishment 6m Paris 12e (SNCF) Nevers Paris - Auber Lille 2011 FULL-YEAR RESULTS 7

8 GENNEVILLIERS Investments and disposals 22,200 sqm industrial and office building complex 191 external parking lots and a land reserve Located on the Grand Paris development area near the highway A15 and A86 and served by the RER C (Grésillions Station) Attractive profitability: Current 9,3 % (OR: 75%) Potential 13 % Redeveloppement perspective: Business development of the area Grand Paris project Gennevilliers La Défense Saint-Denis Pleyel Potential value creation in short and medium term Existing line Line planned 2011 FULL-YEAR RESULTS 8

9 TOUR TRAVERSIÈRE, AN ECO-RENOVATION Investments and disposals Refurbishment (May 2010 to June 2011) of 7,783 sqm located in the heart of Paris (Gare de Lyon) rented to the SNCF Eco-renovation (green lease, BREEAM certification), net improvement of working conditions Refurbishment made during the lease (no lost of rental income) and signature of a new long term lease de longue durée with the SNCF 6.7m of refurbishment shared with the tenant Value creation: +9% Tour Traversière 2011 FULL-YEAR RESULTS 9

10 OPTIMIZING THE SPACE Investments and disposals Initial state: centralised, individualistic and vertical spatial organisation 27 pers. /floor Current state: Open plan, shared office, tailored to project mode 40 pers. /floor bureau paysager m² Common areas Open plan office Private offices Conference bubble Conference room 2011 FULL-YEAR RESULTS 10

11 54M OF DISPOSALS Investments and disposals Affine ( 44.5m) AffiParis ( 8.9m) Berlin : 18.9m Saint Cloud : 11.1m Rueil-Malmaison : 3.9m Paris Chapon : 7.7m Gennevilliers : 2.3m Marseille : 2.1m Nantes : 2.0m Lezennes : 0.9m Arcachon : 1.6m Orléans : 1.5m Bron : 1.1m Montpellier : 0.3m 2.2m of capital gain compared to appraisal year-end FULL-YEAR RESULTS 11

12 PERFORMANCE OF THE PORTFOLIO 2011 FULL-YEAR RESULTS 12

13 MULTI-SPECIALIZED PROPERTY COMPANY Performance of the portfolio Paris Breakdown of the portfolio in value terms By area of expertise Lille 27.3% 1.3% 28.8% Paris 11.4% 31.2% Lyon Bordeaux Paris (Offices) Offices Retail Warehouses and industrial Others Marseille Villes principales / Main cities 2011 FULL-YEAR RESULTS 13

14 PARIS COMPARED TO REGIONS Performance of the portfolio Capital yield (%) Rental yield (%) Paris Régions Paris Régions Source: IPD Source: IPD Regions present a total return more stable A variability of 35 % less than the Paris one An average yield of 200 bps above Paris one 2011 FULL-YEAR RESULTS 14

15 A DIVERSIFIED RISK ON TENANTS Performance of the portfolio A diversified portfolio of customer Breakdown of rents 11% Baker & Mc Kenzie 335 Leases 7% 3% 3% 3% TO OP 5 Sncf Tdf Mairie Corbeil-Essonne 73% Distrib - Pharma Others < 3% The risk is deemed to be very low on the five first signatures (D&B) Overall, the group has 335 leases corresponding to an average rental income of 136,000 by tenant 2011 FULL-YEAR RESULTS 15

16 STABILITY IN RENTAL INCOME LIKE-FOR-LIKE Performance of the portfolio Trend in headline rents annualized ( m) (3.3) /12/2010 Disposal Like-for-like Acquisition 31/12/ FULL-YEAR RESULTS 16

17 FAVOURABLE EFFECT OF CAP RATES Performance of the portfolio Change in fair value excluding TT ( m) 687 (53) /12/10 Disposal Capital gain Like-for-like Capex Dev. Acq. 31/12/2011 Breakdown of the 0.1% increase in fair value on a like-for-like basis Market rent effect (ERV): (2.9%) Cap rate effect: 2.0% Miscellaneous: 1.0% (works, reversion, ) 2011 FULL-YEAR RESULTS 17

18 DECREASE OF THE VACANCY Performance of the portfolio Occupancy rates 95.4% 94.0% 94.5% 94.0% 92.2% 87.7% 89.0% FULL-YEAR RESULTS 18

19 LEASE AVERAGE DURATION 5.5 YEARS Performance of the portfolio Schedule in rents according to lease duration /12/11 31/12/12 31/12/13 31/12/14 31/12/15 31/12/16 31/12/17 31/12/18 31/12/19 31/12/20 31/12/21 End of lease Fixed term Average time up to next break option: 3.1 years Average time up to lease expiry: 5.5 years 26 new leases (41,000 sqm ; 1.4m): Distrib Pharma in St Cyr en Val 18 renegociated leases (61,900 sqm ; 8.8m): Baker & McKenzie in Paris, Distrib Pharma 18 terminated leases (13,100 sqm ; 2.0m): Kiabi in Troyes, Critéo in Paris (building sold in 2011) 2011 FULL-YEAR RESULTS 19

20 HIGH YIELD PORTFOLIO Performance of the portfolio Return by asset type Portfolio Headline Potential Split in value yield yield Paris (Offices) 28.8% 4.9% 5.1% Offices (other regions) 31.2% 7.3% 8.1% Retail 11.4% 4.8% 7.6% Warehouses & Industrials 27.3% 7.9% 8.8% Others 1.3% 9.7% 9.7% Total 100% 6.5% 7.4% Rental income in ligne with the estimated rental value (ERV) 2011 FULL-YEAR RESULTS 20

21 BANIMMO Performance of the portfolio Repositionning property company Banimmo holds 24 buildings worth 236m including transfer tax, generating an annual rental income of 15.9m with a total surface area of 135,000 sqm. Taking into account its associates, the value of the group assets reached 392m. Key events 4 disposals: retails in Clamart ( 19.6m), Antwerp Expo in Anvers ( 17.1m), the Lozana building ( 15.5m), and a retail near Orléans ( 2.6m) Completion of the new Electrolux headquarter Refinancing of a 120m credit line More details on Results Net rental income: stable at 14.3m Recurrent operational result: +10.8% resulting mainly from the good performance of its managements fees and commissions and of its associates Net current result: 7.0m vs 2.6m, fed essentially by capital gain ( 4.2m vs 0.3m) Net Asset 11.7 / share and NAV 14.5 / share NAV calculation based on appraisal of buildings accounted at historical cost 2011 FULL-YEAR RESULTS 21

22 CONCERTO Logistics development Focusing on property development projects for distribution and production logistics Projects in France Agreement with Sunclear, French leader in the distribution of semi-finished plastic products, to develop, in the Paris region, a logistics platform with a surface area of 21,700 sqm, let through a 9-year fixed lease, to be completed by the end of 2012; Finalization of an agreement with a leading retail group for the development and construction of a 25,000 sqm logistics building in the Champagne Ardenne regions, to be delivered in the first quarter of Development of an agreement with Shema for the promotion/construction of a multi-mode logistics platform at the port of Honfleur (Calvados Logistics Park), geared towards the standardization and pooling of logistics flows. Project abroad Sant Feliu de Buixalleu (Spain): marketing of the warehouses to be built in progress. The project of 38,700 sqm. The first signed transaction (3,700 sqm), with planning permission for delivery at the end of FULL-YEAR RESULTS 22

23 CONSOLIDATED ACCOUNTS 2011 FULL-YEAR RESULTS 23

24 CONSOLIDATED EARNINGS - PROFORMA Consolidated accounts ( m) 31/12/09 31/12/10 31/12/11 Gross rental income Net rental income Other income Corporate expenses (14.3) (13.1) (12.0) Current EBITDA (1) Current operating profit Other incomes and expenses (0.6) (4.2) (2.6) Net profit or loss on disposal 1.5 (0.5) 2.9 Operating profit (before value adj.) Net balance of value adjustments (36.3) (3.8) 1.7 Net operating profit (2) (1.1) Net financial cost (19.5) (19.6) (18.2) Fair value adjustments of hedging instr. (5.4) (0.1) (2.3) Taxes (0.4) Miscellaneous Net profit (4.6) Net profit group share (2.9) EPRA earnings Net recurring profit (1) Current EBITDA represents the current operating profit excluding current depreciation and amortisation costs. This amount excludes the depreciation on Sant Feliu and appears under the other incomes and expenses. (2) Operating profit after value adjustments FULL-YEAR RESULTS 24

25 CONSOLIDATED CASH FLOW - PROFORMA Consolidated accounts ( m) 31/12/09 31/12/10 31/12/11 Funds from operation Funds from operation (excluding cost of debt and tax) Change in WCR 19.5 (3.1) 10.1 Taxes paid 2.1 (3.3) (0.6) Operating cash flow Acquisitions & Investments (49.7) (24.4) (25.5) Disposals Others Investment cash flow New loans Loan repayments (131.4) (94.8) (59.6) Interest (22.3) (20.1) (19.4) Others (25.8) (16.7) (18.4) Financing cash flow (87.7) (112.0) (73.0) Change in cash position 19.6 (5.2) (1.4) 2011 FULL-YEAR RESULTS 25

26 CONSOLIDATED BALANCE SHEET - PROFORMA Consolidated accounts ( m) 31/12/09 31/12/10 31/12/11 Properties of which investment properties of which property held for sale Equity holdings Equity affiliates Cash Other assets Shareholders equity (before allocation) of which convertibles of which PSL Bank debt Other liabilities Total balance sheet FULL-YEAR RESULTS 26

27 NET ASSET VALUE - PROFORMA Consolidated accounts (M ) 31/12/09 31/12/10 31/12/11 Shareholders equity(beforeallocation) PSLadjustment (73.3) (73.3) (73.4) Fairvalueadjustmentstohedginginstr Netdeferredtax (0.6) (1.8) (1.7) EPRANAV(excludingtransfertax) EPRANAV(includingtransfertax) EPRANAV(excludingtransfertax)pershare( ) m (73.4) (1.7) IFRS NAV PSL FV hedging instr. Excluding Fair Value Deferred tax EPRA NAV Transfert taxes EPRA NAV ITT 2011 FULL-YEAR RESULTS 27

28 EPRA NET ASSET VALUE - PROFORMA Consolidated accounts EPRA NAV change ( m) 281,9 (10,5) +1,7 (2,3) +19,8 (3,0) 287,6 31/12/2010 Dividends paid FV properties FV FI EPRA earnings Others 31/12/ per share 29.0 per share 2011 FULL-YEAR RESULTS 28

29 FINANCING 2011 FULL-YEAR RESULTS 29

30 A DECREASING LTV Financing LTV of 50.8 % % 100% 80% % 55.0% 51.5% 50.8% 40% 20% 0% Valeur Dette nette LTV Average financing cost of 2.9%, or 4.0% hedging included Hedged against interest rate risk above 90% Compliance with all covenants 2011 FULL-YEAR RESULTS 30

31 FAVOURABLE CREDIT ACCESS Financement Diversification of banks relationship 6 main banks and an average outstanding of 30m by bank An average loan of 7m Average duration of 5.7 years Financing in credits for an amount of 51m Acquisition of Gennevilliers (lease finance: 17m) Acquisition of Lyon Tchécoslovaques ( 7m) Financing renewal of stake in Banimmo ( 18m) Refinancing of existing assets ( 9m) Renegociation in progress for 2012 Credit signed and agreed: 23.0m Credit in negociation: 35.2m 2011 FULL-YEAR RESULTS 31

32 A SMOOTHED DEBT PROFILE Financing Baudry Amortisation of debt ( m) Contractual amortisation Repayment at maturity Early repayment No major repayment date before 2016 Amortisable: around 30m p.a. on average Short term available credit lines of 19m 2011 FULL-YEAR RESULTS 32

33 AFFINE ON THE STOCK MARKET 2011 FULL-YEAR RESULTS 33

34 SHARE PRICE ( ) AND AVG TRANSACTION VOLUMES (000) Affine on the stock market 26 Affine Euronext IEIF SIIC France EPRA Europe janv.-11 févr.-11 mars-11 avr.-11 mai-11 juin-11 juil.-11 août-11 sept.-11 oct.-11 nov.-11 déc.-11 janv.-12 févr janv.-11 févr.-11 mars-11 avr.-11 mai-11 juin-11 juil.-11 août-11 sept.-11 oct.-11 nov.-11 déc.-11 janv FULL-YEAR RESULTS 34

35 HIGH POTENTIAL OF THE SHARE PRICE Affine on the stock market EPRA NAV per share and share price ( ) Price NAV /12/ /12/ /12/ /12/ /12/ FULL-YEAR RESULTS 35

36 DIVIDEND Affine on the stock market Affine, high yield property company Cash Share * a 9.6% yield based on the share price of 31/12/2011 ( 12.5) * Pending shareholder approval on April 27, FULL-YEAR RESULTS 36

37 SHAREHOLDING Affine on the stock market Shareholding Annualised capital turnover rate of 90% based on the float Holdaffine 35.4% (voting rights 50.3%) Shy 8.1% (voting rights 6.0%) Annualised capital turnover rate of 50% Free float 56.5% (voting rights 43.7%) Affine is listed on NYSE Euronext Paris 31 Dec 11 Number of shares 9,002,042 Share price Market capitalisation 112.5m Change in FY % EPRA earnings per share 1.60 Dividend per share (GM of 27 April) 1.20 Net return (2011 dividend + change in share / share price at 31 December 2011) -12.7% Ticker (Bloomberg / Reuters) IML FP / BTPP.PA 2011 FULL-YEAR RESULTS 37

38 STRATEGY & OUTLOOKS 2011 FULL-YEAR RESULTS 38

39 OUR PRIORITIES FOR 2012 Strategy & Outlook Continue the streamlining of our portfolio Sell the remaining properties which are either mature, small or outside our core regions Target investments with significant potential for value creation Improve our rental performance Lower our rental expenses and our administrative costs Reduce the vacancy rate Maintain a prudent financing strategy in an uncertain environment Keep a smoothed debt profile Maintain significant cash availability at all time Anticipate our financing needs 2011 FULL-YEAR RESULTS 39

40 OUR STRATEGY FOR LONGER TERM Strategy & Outlook Leverage our expertise Expertise in commercial real estate (offices, retail, warehouses), on the Parisian and regional markets Properties requiring refurbishment (Affine) or repostioning (Banimmo) Proven track-record of access to credit facilities, including in difficult market conditions Focus our investments on a few core regions Target areas with long-term growth potential (demographic, economic): Greater Paris region and major French cities Establish long-term partnerships with local authorities Achieve economies of scale Become a client-oriented organisation Supplement the providing of premises with rental services Secure the loyalty of our clients to improve the profitability of our properties 2011 FULL-YEAR RESULTS 40

41 CONTACT AffineA Maryse Aulagnon Chairperson and CEO Alain Chaussard Vice-Chairman and Co-CEO + 33 (0) info@affine.fr Frank Lutz Financial Communication & Investor Relations + 33 (0) frank.lutz@affine.fr Liquidity contract: Website: Société Générale FULL-YEAR RESULTS 41

42 PORTFOLIO CHANGE Appendix ( m) 31/12/09 31/12/10 31/12/11 Value (incl. TT) Gross rental income Number of assets (1) Total surface area (sqm) 667, , ,000 Investments (2) Disposals Occupancy rate (%) (3) (1) Including pre-sale contracts in progress (VEFAs) (2) Including external growth (3) Excluding buildings being restructured 2011 FULL-YEAR RESULTS 42

43 STABILITY OF THE FAIR VALUE, LIKE-FOR-LIKE Appendix Value including transfer taxes ( m) France (outside Paris) Paris Outside France /12/ /12/ /12/ /12/2011 A fair value stable (+0.1%) on a like-for-like basis between 2010 and FULL-YEAR RESULTS 43

44 BALANCE DES INVESTISSEMENTS ET CESSIONS Appendix Balance between total investments and disposals ( m) Affine AffiParis Total Cession Acquisition Developpement Restructuration Disposal: 54m Investments: 36m 2011 FULL-YEAR RESULTS 44

45 CALCUL OF LTV (NET DEBT / PORTFOLIO VALUE) Appendix ( m) 31/12/09 31/12/10 31/12/11 LOAN Net financial debt Debt allocated to lease financing (51) (42) (27) Debt allocated to investment securities Debt allocated to development business Debt for investment properties VALUE Value of properties (incl. TT) Property companies on equity basis VEFA & Fixed assets adjustments (7) Adjusted portfolio value incl. taxes LTV (net debt on portfolio value) 55.0% 51.5% 50.8% 2011 FULL-YEAR RESULTS 45

46 COVENANTS Appendix Breakdown of covenants M 81,3 12,9 31,3 71,2 14,4 17,6 23,5 LTV DSCR ICR Actif Corporate Banimmo For syndicated loan: LTV ratio on asset and corporate, 1 DSCR ratio 2011 FULL-YEAR RESULTS 46