FY 2018 RESULTS TRANSFORMATION & PERFORMANCE 21 FEBRUARY 2019

Transcription

1 TRANSFORMATION & PERFORMANCE 21 FEBRUARY 2019

2 CONTENTS I. 04 II ACTIVITY 10 II-A. Reinforcement on European capital cities 10 II-B. Acceleration of the development pipeline 14 II-C. Innovation to follow wishes 26 III RESULTS 30 III-A. Rental activity 32 III-B. Financial results 41 IV. OUTLOOK 47 V. APPENDIX 50 2

3 2018 / GROWTH ON ALL INDICATORS +3.4% LIKE-FOR-LIKE REVENUE +4.4% LIKE-FOR-LIKE VALUE +4.5% EPRA EARNINGS / SHARE +5.5% EPRA NAV / SHARE 3

4 I. STRATEGY

5 MAKING OUR BUSINESS MODEL MORE RELEVANT THAN EVER A unique business model based on 3 strategic pillars 1 Focus on European capital cities 23 bn portfolio 1 2 Development pipeline 6 bn pipeline 2 3 Client > 96 % average occupancy rate for the past 10 years centric 1 15 bn Group Share Offer core locations in gateways bn Group Share best quality assets Our clients, at the center of our strategy 5

6 A EUROPEAN INTEGRATED COMPANY Merger with Beni Stabili in December 2018: a major step towards simplification 1 37 % German Residential 25 % Ownership: 61.7 % INCREASING MARKET CAP & FREE FLOAT +40 % increase in the free float in 2 years Offices 21 % <2 % Non strategic Hotels Europe 15 % Ownership: 42.3 % (General partner) 3.7 bn 2 free float 7.3 bn 2 Market Capitalization 1 Breakdown in Group Share, proforma of the disposal of the French residential portfolio signed early As of Feb. 19th

7 AN ETHICAL AND EFFECTIVE GOVERNANCE -in-class board composition 1 Long-term supportive shareholders for more than 10 years Experience, Independence & Diversity Renewal of the independent Chairman 51% Free float 7% Covéa (Since 2003) 8% ACM (Since 2003) 26% Delfin (Since 2007) 8% Crédit Agricole Assurances (Since 2005) 15 members 40 % women Separate Chairman and CEO 60 % independent Jean Laurent Chairman of the Board since 2011 Two new independent members Christian Delaire Senior advisor of Foncière Atland Former CEO of Generali Real Estate & AEW Europe Olivier Piani Senior advisor & Chairman of Investment Committee at Ardian Former CEO of Allianz Real Estate & GE Capital Real Estate Europe 1 To be approved by the 2019 EGM 7

8 A PROACTIVE & VOLUNTARY ENVIRONMENTAL STRATEGY EXPLOIT GREEN ASSETS 64 % 72 % Respecting the 2 C scenario set forth in the international Paris Agreement of 2015 Ambitious carbon reduction target between /3 average carbon weight per m² (construction + refurbishment + operation) % Green assets 2 FAVOUR PUBLIC TRANSPORTS % of assets located <500 m of public transport (98% <1 km) see appendix p for more details 1 Trajectory compatible with the 2 C scenario approved by the Science Based Target initiative 2 Weighted average of France and Italy Offices and Hotels 8

9 REWARDED BY THE BEST AGENCIES AN ESG STRATEGY REWARDED IN EACH CRITERIA Green Star (86/100) Climate A List Top 5% Score 78/ Corporate Governance Grand Prix COVIVIO, IN THE MAIN ESG INDEXES AA rating Euronext CDP Environment France 9

10 II ACTIVITY: STRENGTHENING OUR STRATEGIC PILLARS A. Reinforcement in European capital cities B. Acceleration of the development pipeline C

11 2018 / REINFORCEMENT IN EUROPEAN CAPITAL CITIES Group share data 1.2 Bn acquisitions 5.0 % yield M Capex 6.1 % yield OFFICES HOTELS RESIDENTIAL Invest in office developments in Paris & Milan 339 million 6.2 % yield 1 Enter the UK market at attractive conditions 404 million 5.1 % minimum yield 6.0% target yield Reinforcement in Berlin 428 million 2,135/m² on acquisitions 4.6 % yield 2 And 263 million of equivalent assets from acquisition of Beni Stabili shares before the merger see appendix p for more details 1 Excluding Jean Goujon in Paris 2 Potential yield in 2 years letting of vacant spaces (3.9% immediate yield) 11

12 ACTIVE 2018 PORTFOLIO ROTATION TO FINANCE INVESTMENTS Group share data 960 M disposals realized 4.3 % average margin 4.9 % exit yield M Additional disposals secured 2.4 % average margin 3.2 % exit yield Acceleration of mature asset disposals Pursue qualitative asset rotation selling non-core assets Exit from non-strategic activities 206 million 3.7 % exit yield 526 million 6.1 % exit yield 502 million 3.2 % exit yield see appendix p for more details => Full exit from French Residential ( 283 m) 12

13 DYNAMIC FOCUS ON HIGH QUALITY LOCATIONS FRANCE OFFICES 5.6 bn GROUP SHARE % GREATER PARIS % 83 % ITALY OFFICES 3.2 bn % MILAN 49 % 73 % GERMAN RESIDENTIAL 3.7 bn % BERLIN 40 % 59 % HOTELS IN EUROPE 2.3 bn % MAJOR EUROPEAN CITIES 1 85 % 2 58 % see appendix p.85, 88, 90, 91 for more details 1 Cities with more than 2 million overnight stays per year 2 Including the disposal agreement of 59 B&B hotels in France signed early

14 II ACTIVITY: STRENGTHENING OUR STRATEGIC PILLARS 1. Reinforcement in European capital cities 2. Acceleration of the development pipeline

15 SUCCESSFUL DELIVERIES IN 2018 STRENGTHENING OUR TRACK RECORD 3 offices (35,000 m²) and 4 hotels (653 rooms) Symbiosis A&B 20,500 m² Milan Riverside Toulouse 11,000 m² Motel One - Paris 255 rooms Strong track record: since 2010, 95% occupancy on all projects in the year following their delivery Occupancy at end % Value creation >25% see appendix p.60 for more details Yield on cost 6.9% 15

16 DEVELOPMENT PIPELINE WELL ON TRACK TO FUEL OUR GROWTH 6 bn total pipeline 4.4 bn Group share COMMITTED PIPELINE 0.5 bn Group share 0.9 billion at 100 % 1.3 bn Group share 1.6 billion at 100 % ~+ 800 M to come in 2019 ~+ 1.1 billion at 100 % 6.1 % yield on cost X2.5 ~30 % value creation End % pre-let End % pre-let see appendix p for more details 16

17 COMMITTED PIPELINE AT END-2018 / HIGH-QUALITY PROJECTS IN PARIS, BERLIN & MILAN 31 PROJECTS COMMITTED AT END ,000 M² OF OFFICES => 152,000 M² ALREADY PRE-LET 790 ROOMS 454 RESIDENTIAL UNITS HIGH-QUALITY PROJECTS IN STRATEGIC LOCATIONS ALL IN MAJOR EUROPEAN CITIES WITH ~80% IN PARIS, BERLIN & MILAN ALL LOCATED WITHIN 10 MIN FROM PUBLIC TRANSPORT ALL GREEN PROJECTS WITH A HIGH-LEVEL CERTIFICATION/LABEL 1 see appendix p for more details 1 Levels targeted: HQE Excellent, BREEAM very good, LEED Gold 17

18 FLOW / A SUCCESSFUL OPERATION ACROSS THE ENTIRE REAL ESTATE VALUE CHAIN FLOW MONTROUGE 2015 ACQUISITION of an existing vacant building of 18,000 m² 2017 BUILDING PERMIT for a high-quality urban campus including a 30% extension of the surface area (+5,600 m²) % CONSTRUCTION & PRE-LETTING Full pre-letting 18 months ahead of delivery to a large corporate 115 million total cost >40% value creation target 18

19 IRO & FLOW / TWO SMART & ATTRACTIVE DEVELOPMENTS (1/2) MALAKOFF-MONTROUGE-CHATILLON BUSINESS DISTRICT Paris Office Stock ~1 million m² Future line 15 of the Grand Paris metro Chatillon-Montrouge hub 8 min FLOW Take-up ,000 m² 8 min New space available until 2020 Only 35,000 m² IRO Source: CBRE 19

20 IRO & FLOW / TWO SMART & ATTRACTIVE DEVELOPMENTS (2/2) 254 MILLION IN HIGH-QUALITY PROJECTS TO BE DELIVERED IN 2020 Flow IRO 23,600 m² 115 million total cost 6.6% yield 100% pre-let 25,600 m² 139 million total cost 6.3% yield Facing limited competition 20

21 SILEX 2 / MAJOR PRE-LETTING 2 YEARS BEFORE DELIVERY (1/2) Lyon Part-Dieu business district Tramway 30 min to airport Office Stock >1 million m² New space available until 2021 Only 20,000 m² Metro & Tramway Infrastructure under renovation or construction (train station, residential, shopping mall) Office deliveries 2021 Silex 2 Office deliveries 2022 & later Source: JLL 21

22 SILEX 2 / MAJOR PRE-LETTING 2 YEARS BEFORE DELIVERY (2/2) Silex 2 30,900 M² 166 MILLION TOTAL COST 1 6.0% YIELD >50% VALUE CREATION TARGET 44% PRE-LET 8,800 m² to 5,000 m² dedicated to flex-offices with 1 Shared at 50% with ACM 22

23 BERLIN RESIDENTIAL / ACCELERATION OF THE DEVELOPMENT PIPELINE GROWING PIPELINE OF 700 MILLION 1 62 POTENTIAL PROJECTS IDENTIFIED ON 215,000 M² MOSTLY IN BERLIN 111 MILLION COMMITTED 2 AT END-2018 >40% margin on the units to be sold 454 units delivered by ,650 /m² 4.8% yield on cost AND MORE THAN 100 MILLION TO BE COMMITTED IN million Group share; 2 72 million Group share 23

24 DEVELOPMENTS / MORE TO BE COMMITTED IN 2019 ~ 1.1 BILLION IN PROJECTS TO BE LAUNCHED IN 2019 INCLUDING Paris St-Ouen Alexanderplatz 31,000 m² of offices Redevelopment-extension (+70% in surface area) on the new metro line 14 scheduled for 2020 see appendix p.87 for more details 60,000 m² mixed-use New construction Offices/Residential/Retail in the very center of Berlin 24

25 DEVELOPMENT PIPELINE / A KEY DRIVER FOR EARNINGS GROWTH Major impact in 2021 Additional rents in the year after delivery + 42 m + 34 m 66% + 18 m 60% + 15 m ~ MILLION GROUP SHARE additional rent vs end-2018 = +15% of annualized revenue at end & beyond From committed pipeline at end-2018 From projects to be committed in 2019 xx% Already secured through pre-lettings 25

26 II ACTIVITY: STRENGTHENING OUR STRATEGIC PILLARS A. Reinforcement in European capital cities B. Acceleration of the development pipeline C

27 HOTELS / BE THE BEST PARTNER FOR HOTEL OPERATORS FOLLOW their development across Europe ACOMPANY their innovations DEVELOPING new hotels SUPPORTING implantation in new cities RENOVATING outdated assets Rebranding in our UK portfolio One development in Malaga Three deliveries in 2019 in Paris, Lyon & Munich 27

28 GERMAN RESIDENTIAL / BE THE BEST LANDLORD TO OUR TENANTS ACCOMPANY tenants with the best service quality INNOVATE WITH THEM through a new COLIVING solution #2 out of 21 major German residential companies in the Focus Money survey Tenant relation: very good Intermediation: very good Services: very good Fair rent: very good Quality: very good Environmental responsibility: good 100 ROOMS IN BERLIN TARGETING THE MOST DYNAMIC DISTRICTS (KREUZBERG, MITTE, ETC.) 1 Link to the survey 28

29 OFFICES / BE THE BEST OPERATOR FOR OUR END-USERS FOLLOW THEIR WHISHES through a new FLEX-OFFICES solution 3 OPENINGS IN 2018 IN PARIS PARIS CBD March 2018 / 3,300 m² 90% occupancy PARIS GARE DE LYON Sept / 5,100 m² 60% occupancy 70 % large corporates >12 month average contract length PARIS MONTMARTRE Dec / 1,400 m² 40% revenue secured by Orange AND 4 PROJECTS ONGOING IN PARIS, LYON, MILAN, BORDEAUX FOR 16,500 M² 29

30 III RESULTS A. Rental activity B. Financial results

31 2018 RESULTS REWARDING THE STRATEGY GROWING OPERATING PERFORMANCES HEALTHY DEBT PROFILE RESULTS ABOVE GUIDANCE LIKE-FOR-LIKE RENTAL GROWTH +3.4% OCCUPANCY RATE 98.1% LIKE-FOR-LIKE VALUE GROWTH +4.4% LTV 42.0% MATURITY 6.0 YEARS COST 1.5% EPRA EARNINGS PER SHARE +4.5% EPRA NAV PER SHARE +5.5% 31

32 III RESULTS A. Rental activity B. Financial results

33 PARIS OFFICE MARKET / QUALITY OFFICES ON DEMAND Greater Paris 1,000,000 m² Take-up on new/refurbished space +8% per year 800,000 m² Demand exceeds the offer 600,000 m² 400,000 m² Immediate offer on new/refurbished space -8% per year 200,000 m² 300 /m² Average economic rent on new/refurbished space +7% in 2018 Rents on quality space keep on increasing 290 /m² 280 /m² 270 /m² Sources: CBRE, C&W 33 see appendix p.86 for more details

34 MILAN OFFICE MARKET / NEW SPACE DRIVING THE MARKET Milan 400,000 m² 300,000 m² Immediate offer on new/refurbished space +16% per year Demand exceeds the offer 200,000 m² Take-up on new/refurbished space -15% per year 100,000 m² 580 /m² Prime rents 560 /m² +7% in /m² Prime rents keep on increasing 520 /m² 500 /m² 480 /m² see appendix p.89 for more details Sources: CBRE, C&W 34

35 OFFICES PORTFOLIO ACTIVITY/ BENEFIT FROM THE MARKET DYNAMIC Through our development pipeline 91,000 m² let or pre-let on the development pipeline 23.8 million rents 9 years firm maturity Riverside Toulouse: 10,300 m² let The Sign Milan: 9,500 m² pre-let Through our letting activity 120,000 m² of renewals & renegotiations 33 million rents +5.6% increase Orange: 42,000 m² renewed Milan Piazza S. Fedele: 3,400 m² renewed 35

36 GERMAN RESIDENTIAL MARKET / FUNDAMENTALS ARE INTACT Insufficient supply 11,100 units per year delivered on average over 5 years vs demand forecast for 20,000 units per year until 2030 Increasing asking rents 1 +5% in 2018 to 11.7/m² Increasing asking price for flats 1 +14% in 2018 to 4,400/m² 1 Latest available data at end-june 2018 for asking rents and end-september 2018 for asking prices 36 Sources: Senatsverwaltung für Stadtentwicklung; IVD Berlin-Brandeburg

37 GERMAN RESIDENTIAL PORTFOLIO ACTIVITY HIGHLY PROFITABLE PROFILE Berlin Dresden, Leipzig & Hamburg NRW Total 44 % Indexation 6 % Modernization 22 % Reletting with modernization Like-for-like rental growth % +3.2% +4.6% +4.4% 28 % Reletting Like-for-like /m² Reversionary potential end % +20% % +25% Capex & Opex /m² 12% return on investment see appendix p.83 for more details 37

38 HOTEL MARKET / SUPPORTIVE LONG-TERM TREND THE TRAVEL & TOURISM INDUSTRY IS EXPERIENCING International tourists arrivals in Europe well ahead of expectations 2018: 713 m (+6%) Forecast 2019: +3-4% New record in Greater Paris: 385 m Actual arrivals 475 m UNWTO forecast (2010) 35 M hotels arrivals in INCREASED REVENUE IN EUROPE: +4.6% REVPAR GROWTH IN 2018 see appendix p.92 for more details Sources: MKG, STR, PwC, UNWTO, Paris Region 38

39 HOTEL PORTFOLIO ACTIVITY STRONG RENTAL GROWTH SUCCESSFUL ASSET MANAGEMENT +4.7% like-for-like revenue growth +6.5% on variable rents in France & Belgium +5.6% on EBITDA from management contracts Hotel Corralejo Bay Renovation program in the Canary islands +30% increase on fixed rent over two years Balanced revenue profile 54% fixed rent 46% variable revenue Rebranding in Madrid +53% increase on fixed rent Madrid Paseo Del Arte 39

40 PURSUIT OF THE ACCELERATION OF RENTAL GROWTH Like-for-like change in revenues +3.4% 2018 million Revenue 100% Revenue Group Share Change like-forlike Change Occupancy rate (%) Firm lease maturity (in years) +0.2% % Offices - France % +2.8% 97.1% 4.6 years Offices - Italy % +1.3% 97.9% 7.7 years Residential Germany % +4.4% 98.7% n.a. Hotels Lease properties % +4.2% 100% 13.8 years Occupancy: 14% Offices Renewals: 33% German Residential Offices France Indexation & variable revenue: 53% Hotels German Residential Hotels Operating properties (EBITDA) % +5.6% n.a. n.a. Total strategic activities % +3.4% 98.1% 7.1 years Non-strategic (Residential France, Retail France & Italy) Total 1, % -2.8% 93.5% n.a. see appendix p.63 for more details 40

41 III RESULTS A. Rental activity B. Financial results

42 PORTFOLIO / STRATEGIC CHOICES LEAD TO STRONG VALUE GROWTH Like-for-like value growth PORTFOLIO 100% 22.8 BN FRANCE OFFICES +2.2% PARIS +2.8% WESTERN CRESCENT & LA DEFENSE +1.8% MAJOR REGIONAL CITIES +3.5% PORTFOLIO GROUP SHARE 15.3 BN 2018 LIKE-FOR-LIKE VALUE +4.4% ITALY OFFICES GERMAN RESIDENTIAL +0.2% +11.6% MILAN +1.8% REST OF ITALY -3.7% BERLIN +12.4% HAMBURG +13.1% DRESDEN & LEIPZIG +13.2% RENTAL YIELD NRW +9.2% 5.0% PARIS +2.9% HOTELS IN EUROPE +3.0% BERLIN +3.4% MADRID +9.4% 42

43 DISCIPLINED FINANCING POLICY SUITED TO DIVERSIFIED & HIGH-QUALITY PORTFOLIO 42% LTV +1.6 pt due to merger with Beni Stabili Within 40%-45% LTV policy WELL DIVERSIFIED DEBT 4% Investor mortgages 12.2x AVERAGE NET DEBT/EBITDA 44% Bank mortgages 52% unsecured 35% Bonds 1.53% cost -34 bps 85% hedge over 5 years 17% Corporate credits 6-YEAR DEBT MATURITY Debt maturities (in million, Group share) 5.1x ICR 1,230 1,449 1,326 1, S&P rating: BBB, positive outlook >

44 + 1.2 BILLION GROWTH IN EPRA NAV IN M 726 M INCREASE IN PROPERTY VALUE MERGER WITH BENI STABILI EPRA NAV ,293 million 99.7/share +16.6% +5.5% 381 M 337 M EPRA EARNINGS DIVIDEND EPRA NNNAV ,624 million 91.7/share +17.4% +6.2% 44 see appendix p.65 for more details

45 EPRA EARNINGS 2018 / +6.4% IN MILLION AND +4.5% IN /SHARE m 4.86/share Acquisitions m Disposals m Disposals m Deliveries m Like-for-like rents m Wellio ramp-up phase m ( -1 m consolidated P&L impact) Development fees on JVs m Decrease in cost of debt m Other m m +6.4% 5.08/share +4.5% EPRA EARNINGS 2017 EPRA EARNINGS see appendix p.64 for more details

46 A LONG-STANDING AND GROWING DIVIDEND POLICY Dividend 2018: 4.60 per share % vs 2017 Dividend yield: 5.2% 2 Payment option in shares % 92.6% 90.5% % % of the share capital already committed Delfin, Predica, Covea, ACM million capital increase to keep investing in the development pipeline while maintaining a disciplined financial policy New LTV guidance: <40% vs 40%-45% Pay-out ratio Dividend 1 To be approved by the 17 April 2019 EGM; Price = 90%x(average share price of the 20 days before EGM dividend) 2 Based on a stock market price of as of 19 February 46

47 IV. OUTLOOK

48 GUIDANCE 2019 / CONTINUED GROWTH MOMENTUM Like-for-like rental growth: continued dynamic ~2.5% Investments: priority on development pipeline Bn 2019 EPRA EARNINGS PER SHARE Disposals: more mature assets LTV: new guidance Bn <40% vs 40-45% > +3% (including scrip dividend) 48

49 KEY UPCOMING EVENTS 17 April 2019 Q1 ACTIVITY: 24 April 2019 H1 RESULTS: 23 July

50 V. APPENDIX

51 APPENDIX CONTENTS DEVELOPMENT PIPELINE KEY PERFORMANCE INDICATORS ACQUISITIONS DISPOSALS 6. MEDIUM TERMS PERSPECTIVE 7. MARKETS & PORTFOLIO BREAKDOWN 51

52 APPENDIX 52

53 A PROACTIVE & VOLUNTARY ESG STRATEGY Greening of assets Improve energy performance in all our activities Better offices accessibility Sustainable buildings European human capital Work with our stakeholders on our ESG strategy Identify their need and expectations Take into account socio-economic impacts Stakeholders 4 pillars Human capital A strong societal commitment Career management focused on talent promotion and internal mobility Engaged teams Promotion of gender equality Governance Ethical and effective governance back to page 8 53

54 A PROACTIVE & VOLUNTARY ENVIRONMENTAL STRATEGY FRANCE OFFICES ALREADY REALIZED 84% TARGET % Respecting the 2 C scenario set forth in the international Paris Agreement of 2015 EXPLOITING GREEN ASSETS ITALY OFFICES 67% % 52% % Ambitious carbon reduction target between /3 HOTELS FRANCE OFFICES -40% between 2008/2020 ALREADY REALIZED 2-31% average carbon weight per m² (Construction + refurbishment + operation) REDUCING ENERGY CONSUMPTION ITALY OFFICES HOTELS -15% between 2015/ % between 2008/2020-5% -46% GERMAN RESIDENTIAL -15% between 2017/2025 New target back to page 8 1 Trajectory compatible with the 2 C scenario approved by the SBT initiative 2 As of end Updates for 2018 will be provided in the Reference Document

55 APPENDIX DEVELOPMENT PIPELINE AT END

56 COMMITTED PIPELINE AT END-2018 / 1.6 BILLION AT 100% (1/3) Committed projects Surface 1 (m²) Pre-leased (%) Total budget 2 ( M, 100%) Total budget 2 ( M, Group share) Target yield 3 Progress Capex to be invested ( M, Group share) Total France Offices 212,928 m² 63% 1, % 24% 486 Total Italy Offices 68,900 m² 54% % 34% 93 Total German Residential 30,299 m² 0% % 9% 48 Total Hotels in Europe 790 rooms 100% % 87% 6 Total 62% 1,606 1, % 25% Surface at 100% 2 Including land and financial costs back to page 16 3 Yield on total rents including car parks, restaurants, etc. 56

57 Italy Offices France Offices COMMITTED PIPELINE AT END-2018 / 1.6 BILLION AT 100% (2/3) Committed projects Location Project Surface 1 (m²) Target rent ( /m²/year) Pre-leased (%) Total budget 2 ( M, 100%) Total budget 2 ( M, Group share) Ilot Armagnac (35% share) Bordeaux Construction 31,700 m² % % 97% 1 Cité du numérique Bordeaux Construction 19,223 m² % >7% 70% 35 Hélios Lille Construction 9,000 m² % >7% 87% 3 Total deliveries ,923 m² 61% % 84% 39 Belaïa (50% share) Orly Greater Paris Construction 22,600 m² % >7% 14% 27 Meudon Ducasse Meudon - Greater Paris Construction 5,100 m² % % 9% 18 Silex II (50% share) Lyon Regeneration-extension 30,900 m² % % 47% 50 Flow Montrouge - Greater Paris Construction 23,581 m² % % 25% 79 Gobelins Paris Restructuration 4,360 m² % % 4% 20 IRO Chatillon Greater Paris Construction 25,600 m² 325 0% % 25% 104 Total deliveries ,141 m² 54% % 25% 297 N2 (50% share) Paris Construction 15,909 m² 575 0% % 2% 69 Montpellier Orange Montpellier Construction 16,500 m² % % 7% 44 Jean Goujon Paris Regeneration 8,455 m² % n.a 1% 38 Total deliveries ,864 m² 75% % 2% 151 Total France Offices 212,928 m² 63% 1, % 21% 486 Principe Amedeo Milan Regeneration 7,100 m² % % 85% 2 Ferrucci Turin Regeneration 21,000 m² 130 0% % 55% 8 Dante Milan Regeneration 5,100 m² % % 6% 8 Total deliveries ,200 m² 60% % 50% 19 The Sign Milan Construction 26,500 m² % >7% 15% 56 Symbiosis School Milan Construction 9,200 m² % >7% 10% 18 Total deliveries ,700 m² 46% >7% 14% 74 Total Italy Offices 68,900 m² 54% % 34% 93 Target yield 3 Progress Capex to be invested ( M, Group share) 1 Surface at 100% 2 Including land and financial costs back to page 16 3 Yield on total rents including car parks, restaurants, etc. 57

58 Hotels in Europe German Residential COMMITTED PIPELINE AT END-2018 / 1.6 BILLION AT 100% (3/3) Committed projects Location Project Surface 1 (m²) Target rent ( /m²/year) Pre-leased (%) Total budget 2 ( M, 100%) Total budget 2 ( M, Group share) Target yield 3 Progress Capex to be invested ( M, Group share) Deliveries in 2019 Berlin Construction 5,145 m² n.a n.a % 38% 6 Deliveries in 2020 and beyond Berlin Construction 25,154 m² n.a n.a % 4% 43 Total German Residential 30,299 m² n.a % 9% 48 B&B Bagnolet (50% share) Paris Construction 108 rooms n.a 100% % 56% 1 B&B Cergy (50% share) Greater Paris Construction 84 rooms n.a 100% % 85% 0 Meininger Munich Munich - Germany Construction 173 rooms n.a 100% % 98% 0 Meininger Porte de Vincennes Paris Construction 249 rooms n.a 100% % 88% 2 Meininger Lyon Zimmermann Lyon - France Construction 176 rooms n.a 100% % 75% 2 Total deliveries rooms 100% % 87% 6 Total Hotels in Europe 790 rooms 100% % 87% 6 1 Surface at 100% 2 Including land and financial costs Back to page 16 3 Yield on total rents including car parks, restaurants, etc. 58

59 Mixed-use Italy Offices France Offices MANAGED PIPELINE AT END-2018 / 4.4 BILLION AT 100% Projects by estimated total cost at 100% Location Project Surface area 1 (m²) Delivery timeframe Cap 18 Paris Construction 50,000 m² >2022 Rueil Lesseps Rueil-Malmaison - Greater Paris Regeneration - Extension 43,000 m² >2022 Paris St- Ouen Paris Regeneration 31,000 m² 2021 Omega Levallois - Greater Paris Regeneration - Extension 20,500 m² 2021 Canopée Meudon - Greater Paris Construction 50,000 m² >2022 Anjou Paris Regeneration 11,000 m² >2022 Opale Meudon - Greater Paris Construction 37,000 m² >2022 Montpellier Pompignane Montpellier Regeneration-Extension 6,000 m² >2022 Philippe Auguste Paris Regeneration 13,200 m² >2022 Campus New Vélizy Extension (50% share) Vélizy - Greater Paris Construction 14,000 m² >2022 DS Campus Extension 2 (50% share) Vélizy - Greater Paris Construction 11,000 m² 2022 Total France Offices 286,700 m² Symbiosis building D Milan Construction 20,500 m² 2021 Symbiosis - other buildings Milan Construction 74,500 m² Duca d'aosta Milan Regeneration 2,100 m² 2019 Total Italy Offices 97,100 m² Alexanderplatz - 1st tower Berlin Construction 60,000 m² 2024 Alexanderplatz - 2nd tower Berlin Construction 70,000 m² >2024 Additonal constructibilty (Hotels portfolio) France, UK, Germany Construction 100,000 m² >2022 Mixed-Use 230,000 m² German Residential Berlin Extensions & Constructions 183,000 m² >2022 Total 796,800 m² back to page 16 1 Surfaces at 100% 59

60 2018 DELIVERIES Toulouse, Riverside 28 m / TO : 83% / Yield: 7.8% Milan, Symbiosis A&B 93 m / TO : 100% / Yield: 7.6% 7 deliveries 35,000 m² of offices and 653 hotel rooms Milan, Via Colonna 17 m / TO : 100% / Yield: 5.2% Milan, Titano 23 m / TO : 100% / Yield: 4.8% Total cost of 218 million ( 183 million Group Share) 6.9% gross yield Occupancy rate of 97% >25% value creation Motel One Porte Dorée 37 m ( 16 m Group Share) TO : 100% / Yield: 5.8% 2 B&B hotels: Berlin and Chatenay-Malabry 19.6m / TO : 100% / Yield: 6.4% back to page 15 60

61 APPENDIX 2018 KEY PERFORMANCE INDICATORS 61

62 A STRATEGY SUPPORTED BY SOUND INDICATORS Historically high occupancy rates 97.1% 95.4% 94.8% 95.8% 95.5% 96.0% 96.3% 96.7% 98.0% 98.1% Long average lease term * 2018* > Ability to retain the tenant > Occupancy rate track record in the development pipeline > Anticipate disposals Firm lease expiries as % of annualised rental income Commercial portfolio (75% of total rents Group Share) > Partnership strategy > Lease maturity in Hotels: 13.8 years * 2018* +3.3% +0.6% Rents: at like-for-like scope Change in like-for-like vs N % +2.1% +1.2% +0.2% -0.1% +0.2% +2.1% +3.4% -3.6% +5.3% Growth in value Change in like-for-like vs N % -0.3% +0.5% +2.1% +4.4% +6.8% +4.8% +4.4% * 2018* * 2018* > Stable occupancy rate > Positive outlook for rental markets 2009 > Dynamic investment market > Asset management and development pipeline value creation Group share data *Strategic portfolio only 62

63 RENTAL INCOME 2018 ( million) % Group share Change (%) France Offices % % +2.8% 39% Paris % % +2.4% 14% Greater Paris (excl. Paris) % % +3.0% 18% Major regional cities % % +4.6% 5% Other French Regions % % -0.7% 3% Italy Offices % % +1.3% 14% Offices - excl. Telecom Italia % % +1.5% 9% Offices - Telecom Italia % % +1.0% 5% German Residential % % +4.4% 25% Berlin % % +4.9% 12% Dresden & Leipzig % % +3.4% 2% Hamburg % % +3.1% 2% North Rhine-Westphalia % % +4.6% 9% Hotels in Europe % % +4.7% 18% Hotels - Lease Properties % % +4.2% 13% France % % +4.8% 5% Germany % % +1.7% 2% Belgium % % +5.4% 1% Spain % % +4.8% 2% Others % % +2.4% 2% Hotels - Operating Properties (EBITDA) % % +5.6% 5% Total strategic activities % % +3.4% 96% Non-strategic % % -2.8% 4% Retail Italy % % -5.2% 2% Retail France % % +1.6% 1% Other (France Residential) % % n.a. 1% Total , % % +3.2% 100% 1 LfL : Like-for-Like Change (%) Change (%) LfL 1 % of revenue back to page 40 63

64 EPRA EARNINGS / +6.4% IN MILLION AND +4.5% PER SHARE Net rental income % EBITDA from hotel operating activities and coworking n.a Income from other activities % Net revenue % Net operating costs % Depreciation if operating assets % Net change in provisions & amortization n.a Operating result % Cost of net financial debt % Discounting of liabilities and receivables % Net change in financial provisions % EPRA Earnings from equity affiliates % Recurring tax n.a Δ EPRA Earnings % EPRA Earnings per share % back to page 45 64

65 EPRA NAV % IN MILLION AND +5.5% PER SHARE m m Property values increase + 72 m Others 8,293 m +16.6% 99.7/share +5.5% m EPRA Earnings Merger with Beni Stabili & increase in capital - 64 m Hedge restructuring and bond buy-back 7,112 m 94.5/share m Dividend EPRA NAV End-2017 EPRA NAV End back to page 44

66 APPENDIX 2018 ACQUISITIONS 66

67 2018 INVESTMENTS / 1.2 BILLION GROUP SHARE Acquisitions 2018 realised Development capex 2018 ( million Including Duties) Acquisitions 100% Acquisitions Group share Yield Group share Capex 100% Capex Group share France Offices n.a Italy Offices %¹ Acquisition of Beni Stabili shares n.a % - - German Residential %² Reinforcement Germany n.a % - - Hotels in Europe % Total 1,626 1, % In addition, 225 million ( 140 million Group share) of capex on the operating portfolio were realised, including 95 million of capex in German Residential. back to page 11 1 Potential yield on acquisitions. 2 Yield in 2 years after reletting of vacant spaces. Immediate yield is 3.9% on acquisitions realized 67

68 FRANCE OFFICES / ASSET SWAP IN PARIS CBD Avenue Kléber Sell Asset swap with an institutional investor buy Rue Jean Goujon 4,800 m² of renovated offices in Paris 16 th Paris CBD Palais de Madeleine 8,500 m² to redevelop in Paris 8 th 104 m 3.3% 21,600/m² disposal price disposal yield Grand Palais Concorde 134 m 15,800/m² acquisition price 1 rue Jean Goujon offices in Paris acquired in 2005 and 2007 Full redevelopment launched end /6/9-year lease signed >20% target value creation Realizing the value creation through the development pipeline of our assets Project to regroup our Paris teams back to page 11 rue Jean Goujon 1 Including duties 68

69 ITALY OFFICES / 106 MILLION OF ACQUISITIONS IN MILAN..including a 78.6 million office in Bicocca business area M1 Certosa M3 M5 Bicocca M1 Maciachini M2 Entry into a new dynamic business district of Milan City Life M5 M1 Lorenteggio M4 Navigli M2 Milanofiori Porta Nuova Semi-centre CBD Centre Ripamonti Periphery Lambrate / Forlanini M3 M4 Linate Airport 19,784 m² Grade A asset Multi-let tenants 3.5 years WALT 6.0% yield 6.3% at full occupancy 240/m² average rent in the low range of the market Acquisitions 2018 back to page 11 69

70 2018 ACQUISITION IN THE UK: START OF A LONG-TERM PARTNERSHIP WITH IHG (1/2) 12 hotels in lease in the major UK cities 895 million 1 4* and 5* hotels Prime locations in city centers 2,638 rooms Hotels locations by city Blythswood Square - Glasgow George Street - Edinburgh Principal hotel - Manchester Russell Square - London back to page 11 1 M 777 with a conversion rate of 1.15 at 19/02/

71 2018 ACQUISITION IN THE UK: START OF A LONG-TERM PARTNERSHIP WITH IHG (2/2) RevPar % in 2018 despite Brexit uncertainty Secured operations New partnership with a major hotel operator 25-year triple net lease Dynamic market The 4 th most popular destination in Europe The 1 st investment market for hotels in Europe 5.1% yield on minimum guarantee fully indexed 6% target yield on a run rate basis >30% EBITDAR margin Upside through variable rent component Asset management potential through capex & rebranding Oxford street - Manchester back to page 11 1 Revenue Per Available Room 71

72 APPENDIX 2018 DISPOSALS 72

73 2018 DISPOSALS / 1.2 BILLION GROUP SHARE REALIZED & SECURED ( million) Disposals (agreements as of end of 2017 closed) Agreements as of end of 2017 to close New disposals 2018 New agreements 2018 Total 2018 Margin vs 2017 value Yield Total disposals realized = 2+3 = France Offices 100 % % 4.6% 242 Group share % 4.6% 242 Italy Offices 100 % % 6.8% 271 Group share % 6.6% 185 German Residential 100% % 4.2% 270 Group share % 4.2% 174 Hotels in Europe % % 5.8% 135 Non-strategic (France Resi., Logistics, Retail in France) Group share % 6.1% % % 3.1% 515 Group share % 2.6% 302 Total 100 % , % 4.7% 1,433 Group share % 4.3% bn 100% 1.2 bn Group Share back to page 12 73

74 DISPOSALS / 508 MILLION OF NON-STRATEGIC ASSETS REALIZED & SECURED 502 M GROUP SHARE 715 M AT 100% 5.2% MARGIN VS END-2017 APPRAISAL VALUE France Residential Exit from remaining French residential assets 283 million 1 2.1% yield Retail in France Remaining Quick portfolio and Jardiland assets Retail in Italy High-street retail in Milan 85 million 3.2% yield Other The last Logistics asset 3.2% EXIT YIELD 115 million 6.4% yield 25 million n.a back to page 12 1 Including 6 million of agreement signed in 2017 to be realised 74

75 DISPOSALS / 526 MILLION OF NON-CORE ASSETS REALIZED & SECURED 526 M GROUP SHARE 973 M AT 100% 1.3% MARGIN VS END-2017 APPRAISAL VALUE 6.1% EXIT YIELD France Offices in the outer suburbs and the regions 100 million 7.3% yield Hotels Non-core assets in secondary locations 115 million 5.8% yield Italy Offices outside Milan 185 million 6.3% yield Germany Non-core residential in NRW 125 million 5.2% yield back to page 12 75

76 DISPOSALS / 206 MILLION OF MATURE ASSETS REALIZED & SECURED 206 M GROUP SHARE 237 M AT 100% 7.6% MARGIN VS END-2017 APPRAISAL VALUE France offices Covivio Head office in Paris CBD and one asset in Clichy 149 million 4.1% yield German Residential Privatizations in Berlin 57 million 2.8% yield 3.7% EXIT YIELD back to page 12 76

77 APPENDIX MEDIUM TERMS PERSPECTIVE 77

78 ORANGE PORTFOLIO IN PARIS / UNIQUE POTENTIAL FOR GROWTH & VALUE CREATION Orange portfolio: 16 buildings in Paris and Levallois 1.0 billion Portfolio Pereire Levallois Maillot Neuilly Carnot Laborde Montmartre Jemmapes Montmartre Renovation & Flex-office 100% Occupancy Anjou Provence Gutenberg Voltaire Ménilmontant 8,500 Value/m² Keller Philippe Auguste Ménilmontant Renovation 390/m² Rent Raspail Gobelins Bobillot Projects 2019 Managed pipeline Gobelins- Full regeneration 78

79 ITALY OFFICES / REVERSIONARY POTENTIAL IN MILAN 19 assets in Milan with reversionary potential CBD and growing sub-markets in Milan Rental growth potential Significant value upside through asset management actions Corso Italia 19 Via Messina 38 Asset # 19 GLA 149,000 m² Market Value 790 m WALB 5.8 Y Gross Yield 4.4% Rent 34.6 m Potential Rent 45.4 m Piazza S. Freud 1 Via Bernina 7 Total Capex forecasted ~ 75 m 79

80 ITALY OFFICES / DEVELOPMENT POTENTIAL IN MILAN Symbiosis is a landmark office development for the construction of a new business district of ~125,000 m². Target completion date in Currently working on masterplan update to move building capacity to North lot. Total Project ~ 520 m Total budget Already Secured 36.4 m Rent 7.0% Yield on cost >20% Value creation Already Delivered Buildings A&B (Fastweb and Cirfood) 20,500 m² Delivered in % let 10.5-year 7.6% yield on cost Value creation 27% Ongoing negotiations for approx. 50,000 m² Development of a school part of NACE Group 9,400 m² Delivery % prelet 13.5-year 8.1% yield on cost ~ 21 m total cost 80 Value creation >30%

81 HOTELS PORTFOLIO / REVERSION POTENTIAL IN EUROPE Current Rent to EBITDAR ratio of our French, German, Belgian and Dutch portfolio (66% of the lease portfolio) 52% Market level 70% Rent reversion potential +34% +78% +52% +51% +39% +44% +16% +14% Amsterdam Berlin Bordeaux Paris Frankfurt Brussels Marseille Catalysts to catch the reversionary potential: Capex program alongside the operator New lease agreement Move into management contract 81

82 HOTEL PORTFOLIO / ADDITIONAL CONSTRUCTABILITY IN LAND BANKS Potential constructability in the Hotels to be valued More than 230,000 m² additional surfaces to be developed into offices, hotels and residential 15 projects in Europe 100,000 m² additional constructability 130,000 m² land bank in Berlin Paris Lyon Dresden of which 60,000 m² to be committed in 2019 Oxford Leipzig Park Inn Alexanderplatz - Berlin 82

83 GERMAN RESIDENTIAL PORTFOLIO / REVERSION POTENTIAL Reversionary potential End % % % +20% Average market rent for our units Current in place rent /m²/month % of the portfolio Berlin Dresden & Leipzig Hamburg NRW 59% 9% 7% 25% 83 back to page 37

84 APPENDIX MARKETS & PORTFOLIO BREAKDOWN 84

85 COVIVIO FRANCE OFFICES PORTFOLIO Greater Paris Portfolio A 6.7 billion portfolio at 100% ( 5.6 billion in Group share) at end % Western Crescent and La Défense 20% Inner Ring 38% Paris 1% Outer Ring 13% Major Regional Cities 3% Regions PARIS CENTER OUEST The strategic locations in Paris, the Inner Ring and the Major regional cities represent 95% of the portfolio LA DÉFENSE REST OF PARIS COVIVIO ASSETS (% of the portfolio in Group share) WESTERN CRESCENT MAJOR BUSINESS DISTRICTS 20 % VÉLIZY MEUDON 9-12 % FIRST RING back to page % 3-6 % 1-3 % <1 % 85

86 PARIS & GREATER PARIS OFFICE MARKET Key figures in million m² of offices in the Greater Paris market 17.1 million m² in Paris Nanterre La Défense RER C Gennevilliers Asnières Clichy Saint-Denis Aubervilliers Ligne 17 RER B Ligne million m² in La Défense 8.0 million m² in the Western Crescent 8.0 million m² in the Inner ring 19.1 million m² in the Outer ring Vacancy rate 5.3% 2.3% in Paris 5.0% in la Défense 10.1% in the Western Crescent 7.5% in the Inner ring 5.2% in the Outer ring Rueil-Malmaison T2 Suresnes Saint-Cloud Vélizy-Meudon Boulogne- Billancourt Neuilly Paris CBD LA DÉFENSE WESTERN Issy-les-Moulineaux CRESCENT Montrouge Clamart M1 PARIS CENTER OUEST M6 VÉLIZY MEUDON Chatenay- Malabry Antony Arcueil M2 M14REST OF Charenton-Le-Pont PARIS RER C Cachan FIRST RING Rungis Ivry-sur-Seine Orly Bagnolet Vincennes RER D Ligne 15 RER A Ligne 15 Paris CBD Paris West Paris South Paris North-East La Défense Péri-Défense Vélizy-Meudon Neuilly Levallois South bend North bend 1 st ring North 1 st ring East 1 st ring South Ligne 18 2 nd ring South back to page 33 Sources: C&W, Immostat 86

87 OFFICE MARKET / GROWING BUSINESS DISTRICT IN THE NORTH OF PARIS Paris 17 north, Clichy, St-Ouen: an area undergoing urban regeneration Paris 17 North, Clichy, St-Ouen Urban regeneration area Future Olympic village Covivio asset Saint-Denis Clichy Covivio asset Future metro ligne 14 to CBD and Orly airport Saint-Ouen Project N2 Project Paris-St Ouen Paris 17/18th Urban regeneration area Metro line 13 Wellio Montmarte Office stock Take-up Immediate offer 71,705 m² in 2018 ~1 million m² (43% of new/restructured 52,000 m² on new space space) Prime rents Paris 17 North: 550 /m² St- Ouen: 400 /m² back to page 24 87

88 COVIVIO ITALY OFFICES PORTFOLIO Milan: a 2.5 billion portfolio 1 ( 2.3 billion Group share) focused on the best locations A 3.9 billion portfolio at 100% at end-2018 ( 3.2 billion Group share) M1 Certosa M3 Maciachini M5 Bicocca M1 M2 73% Milan 7% Other 4% Turin 12% Northern Italy 4% Rome 24% Center & Semi-Center City Life M5 M1 Lorenteggio 56% CBD & Porta Nuova M4 Milanofiori Navigli M2 Semi-centre CBD Porta Nuova Centre Ripamonti Periphery Lambrate / Forlanini M3 M4 Linate Airport 20% Periphery Rental portfolio Developments back to page 13 Acquisition signed in Offfices only; excluding Retail (non strategic) 88

89 MILAN OFFICE MARKET PORTA NUOVA (-0.1 pt) (+10%) PERIPHERY CBD Certosa Maciachini Bicocca (-2 pts) (stable) (-1.2 pts) (+4%) City Life Lambrate / Forlanini CENTER Lorenteggio Linate Airport SEMI-CENTER Navigli Ripamonti (-0.9 pt) (+8%) (-0.1 pt) (+7%) Milanofiori Source: CBRE 89 back to page 34

90 COVIVIO GERMAN RESIDENTIAL PORTFOLIO A 5.8 billion portfolio at 100% at end-2018 ( 3.7 billion Group share) 9% Dresden & Leipzig Berlin: a 3.4 billion 1 portfolio focused on the best locations Prime locations 73% of the portfolio Good locations 22% of the portfolio Average locations 5% of the portfolio Basic locations Covivio Assets 7% Hamburg 59% Berlin 9% Essen (NRW) 4% Duisburg (NRW) 6% Others (NRW) 3% Mülheim (NRW) 3% Oberhausen (NRW) back to page billion Group Share Source: Engel & Völkers Residential 90

91 COVIVIO HOTEL PORTFOLIO A 5.8 billion hotel portfolio at 100% at end ( 2.3 billion Group share) 28% Germany 17% United Kingdom 15% B&B 8% Marriott 8% RHG 26% Economic 17% IHG 34% France % in revenue 7% Belgium 12% Spain 2% Netherlands & Portugal 25% Accor % in revenue 14% Others 7% NH 3% Hotusa 3% Barcelo 38 % Midscale % in value 36% Upscale back to page 13 1 Hotels only 91

92 EUROPEAN HOTELS MARKET IN 2018 RevPar var (%) ADR var. (%) Occupancy rate var. (pts) Main cities RevPar var (%) +7.3% +5.3% +1.2 pts Paris: +12.1% +2.7% +2.2% +0.4 pt Berlin: +7.1% Dresden: +4.4% +2.1% +1.2% +0.6 pt London: +2.6% +1.5% +0.7% +0.6 pt Madrid: +4.7% Barcelona: -3.4% (already recovering with ~+19% in Nov. and Dec. 2018) +8.5% +4.6% +2.7 pts Brussels: +11.2% +6.5% +5.0% +1.1 pt Amsterdam: +5.1% back to page 38 92

93 CONTACT Paul Arkwright Tel.: Mobile: paul.arkwright@covivio.fr Paris 30, avenue Kléber Paris Tel.: Hugo Soussan Tel.: Mobile: hugo.soussan@covivio.fr