10 May Morgan Stanley European Conference

Transcription

1 10 May 2010 Morgan Stanley European Conference June 10th,2010 1

2 1 2 3 Operating achievements Key financial figures Outlook and perspectives 4 Appendices 2

3 1 2 3 Operating achievements Key financial figures Outlook and perspectives 4 Appendices 3

4 2009 key achievements Under challenging economic conditions: Disposal of residential portfolio ( 2bn): 4% yield Disposal of offices buildings 114 avenue des Champs-Elysées and 3-5 avenue de Friedland, Paris ( 170m) Acquisition of Compagnie la Lucette (CLL) at the bottom of the commercial property cycle ( 1.5bn of assets, mainly offices in the Paris region's fastest-growing districts): implied yield of 8% (discount of 5% on liquidation NAV at ) Restructuring: disposal of property management and facility management activities (combined revenue of 100m, around 1,000 employees) and merger with SIICInvest Cautious approach to residential development The asset portfolio now consists mainly of offices and business parks (after the sale of residential properties), giving good visibility on cash flow and an improved risk/return profile 4

5 Commercial property Breakdown of commercial property portfolio by asset classes* Icade CLL Combined entity Offices and business parks: 2,628m 69% Offices: 1,236m 84% Offices and business parks: 3,864m 73% 22% 2% 7% Warehouses: 61m 2% + = 14% 17% 5% 5% Warehouses: 272m Public and healthcare: 842m Shopping centres: 281m Public and healthcare: 26m Warehouses: 211m Public and healthcare: 868m Shopping centres: 281m 3,812m 1,473m 5,285m The property portfolio now consists mainly of offices and business parks * Value of portfolio excluding transfer duties - Data at 31 December

6 Commercial property Breakdown of property portfolio by geographical area* Icade CLL Combined entity 16% 10% 4% 9% 10% 4% 16% 19% 28% 10% 11% 9% 4% 19% 28% 4% 14% 7% 21% + = 16% 3% 39% 13% 16% 5% 7% 18% 20% 3% 18% 3,812m Total Ile-de-France: 2,737m 1,473m Total Ile-de-France: 1,242m 5,285m Total Ile-de-France: 3,979m Paris CBD Paris (excluding CBD) La Défense Western Crescent Inner suburbs Outer suburbs French Provinces International Most of the properties are located in Ile-de-France * Value of portfolio excluding transfer duties - Data at 31 December

7 % secure rent Commercial property Rental management - Lease expiry schedule (all property portfolios) Icade + CLL All properties 100% 90% 80% Lease Série1 expiry Certain Série2 rent 70% 60% 50% 40% 30% 20% 10% 0% An exceptional average firm lease duration of 6.4 years on Q providing Icade with secured cash flows 7

8 Asset management achievements Figures at Rentable space Rented space Financial occupancy rate Current rent Icade + CLL 2,005,240 m 2 1,876,834 m %* 314m Offices: H 2 O building: negotiations at a very advanced stage with a tenant for 7,300 m², taking the occupancy rate to 33% Crystal Park : renegociations of 39,911 m 2 with PwC Business parks: Millénaire 2: fully rented - 2,600 m² let in February 2010 to IFOP and m² rented to ARS in May 2010 Pont de Flandres: 6,600 m² - Pierre & Vacances (new lease) Building 521: 3,150 m² - Rexel (new lease) H 2 O building, Rueil-Malmaison Parc du Millénaire 2, Paris 19 e Shopping centers: Odyseum: 25,000 m² - fully rented Millénaire: 59,000 m² of retail property - 66% of leases reserved in June 2010 Odysseum,Montpellier An active asset management in 2009 and 2010 With Millénaire 2 100% let and H 2 O 33% let 8

9 Promotion Firm grip on exposure to market risks Residential development Q1 2010* Commercial development Q Number of reservations: 1,248 units and lots totalling 226m (+9%) Number of notarised sales: 803 units and lots totalling 149 (+44%) Unsold properties: 283 lots ( 49m vs. 40m at end-2009) Backlog: 727m (+29%) Property portfolio: 1,606 m (-22%) Months of inventory: 9,5 months in Q versus 18 months in 2008 Cancellation rate: 16% versus 22% in 2009 (after 7 days) Commercial development: a low exposure Under development: 66,216 m² Preparation in progress: 504,256 m² Public sector development: no rental risk Under development: 248,900 m² Preparation in progress: 14,800 m² Pantin (93), 241 units Saint Nazaire (44), second PPP hospital in France 794 beds With a total turnover of 1,092 m end of 2009 business was resilient due to the upturn in the residential property development market * Variation compared to Q

10 Services Refocusing on three business areas Property management Revenues: 36m* Tour Olivier de Serres development, Paris 900 buildings / sites managed 4,500,000 m 2 Main customers: CNP, CDC, Tour Montparnasse, SG, Post Immo, Allianz, Médéric etc. Operation of serviced residences Revenues: 46m* 56 residences in France: 7,400 beds 6,000 beds in Spain Les Lauréades student residence, Lille Lambret Advice and appraisals Revenues: 30m* Appraisal work for listed property companies Valuation of OPCI funds Advice for the sale of Icade's residential properties Assistance with calculating and monitoring Icade's carbon footprint * end of

11 1 2 3 Operating achievements Key financial figures Outlook and perspectives 4 Appendices 11

12 Reported key figures - Icade and CLL Balance sheet Icade stand alone CLL* m m Net debt 2,459 2,718 2,075 Net debt 1,050 1,052 1,154 Appraised value (excluding transfer duties) 6,952 6,424 5,804 Appraised value (excluding transfer duties) 1,790 1,535 1,473 Loan to Value (LTV) 35.4% 42.3% 35.8% Loan to Value (LTV) 63.1% 69.3% 78.3% Liquidation NAV 4,954 4,237 4,130 Liquidation NAV Liquidation NAV per share Liquidation NAV per share * Key figures reported on 5 march 2010, data for information only before harmonisation of accounting methods 12

13 Reported key figures - Icade and CLL Income statement Icade stand alone Historical cost method CLL* Fair value method m % m % Revenues (of which: rental income) 1, , % +2.9% Rental income % Gross operating profit % Profit on disposals % Operating profit % Profit on disposals Operating profit Net financial income % Net financial income % Net income after minority interests % Net income after minority interests Recurring net income % Recurring net cash flow % Recurring net income per share % Recurring net cash flow per share % * Key figures reported on 5 march 2010, data for information only before harmonisation of accounting methods 13

14 m Debt structure: a defensive financial position Maturity schedule Icade + CLL Debt split by type Icade + CLL en M % CLL Icade CLL Icade 3% 6% 71% Corporate borrowings Securitarization Lease debt Mortgage debt Optimisation of the CLL financing thanks to the residential proceeds Debt by activities Icade + CLL 10% 0% Limited redemption due before 2014 on Icade financing Combined LTV of c.40% 90% Property Developement Services As of May

15 Dividends Required payout with respect to 2009: 102m Dividend of 3.25 per share ( 167.8m) payed in April 2010, representing 87% of net cash flow (77% in 2008) Dividend maintained despite fall in net cash flow, passing on disposal proceeds to shareholders Special dividend of at least 4 proposed to the Board Board in H On completing disposals of residential property under the memorandum of understanding with social housing organisations on 13 November 2009 To be paid in Q

16 1 2 3 Operating achievements Key financial achievements Outlook and perspectives 4 Appendices 16

17 Three-phase value creation strategy Short term (2010) Maintain the strategy in place for the last two years Intention to increase immediate, secure cash flow from commercial property and create value by investing at the bottom of the cycle Continue to focus on commercial property and integrate CLL Disposal of residential property in progress, allowing pro-active dividend distribution Sale of mature and/or non-core assets, particularly in Germany Keep the LTV ratio under control (no debt issues), and maintain room for manoeuvre to carry out transactions that enhance cash flow Medium term ( ) Pipeline Intention to increase future cash flow and create medium-term value by using in-house commercial property development expertise Pipeline of almost 1bn of identified and committed investments mainly prelet Upturn in the development market Focus on core assets Long term ( ) Business parks Long-term value creation through an exceptional landbank located to the North of Paris (80 ha) Development can be phased over time to fit with investors/tenants demand Exceptional location close to 3 of the 7 Grand Paris clusters : Pleyel (audiovisual and digital production cluster), La Défense (financial cluster), Villejuif- Evry (biotechnologies cluster) 17

18 Pipeline Total commercial property investment (identified and committed) = 1.0bn 450 m Main investments Space Completion Total investments Investments to be completed Yield Tower Descartes 79,000 m m 260m 6.5% Factory 14,000 m m 58m 6.4% Metropolitan Villejuif 58,200 m m 140m 7.0% Millénaire shopping centre + offices (50% with Klepierre) 58,000 m 2 17,000 m m 40m 100m 25m 7.0% 7.0% Clinics / extensions 170m 7.0% Investment with limited marketing risk 18

19 Potential Future Rental Upsides Assets Location Area sqm Rent psm Annual Rent m H2O Rueil-Malmaison Link Paris Messine Paris CBD Factory Boulogne Tolbiac Villejuif Total Offices Bâtiment 521 Aubervilliers Pont de Flandre (028) Paris Millénaire 5&6 Aubervilliers Total Business Park TOTAL m lease-up potential from new or renovated building 19

20 Icade, player of the Grand Paris plan A B C Business parks : excellent location close to the Pleyel international audiovisual and digital production cluster Tour Descartes : major 260m renovation to be completed in late Tour Scor CLL From Villejuif to Ivry, a development portfolio with net usable floor area of around 300,000 m² for completion between 2011 and 2020, supported by the automatic metro project The 7 development areas of the Grand Paris plan LA DÉFENSE PLEYEL LE BOURGET DESCARTES ROISSY-CDG VILLEJUIF-ÉVRY PLATEAU DE SACLAY 130km of automatic metro lines (latest route plan dated September 2009) Other possible route for the automatic metro line Planned TGV route to connect existing highspeed lines Icade, the first property investment company to have appointed an Executive Director for the Greater Paris region 20

21 1 2 3 Operating achievements Key financial figures Outlook and perspectives 4 Appendices 21

22 Q 2010 Q1 03 2Q 3Q 4Q 1Q 04 2T 3T 4T 1Q 05 2T 3T 4T 1Q 06 2T 3T 4T 1Q 07 2T 3T 4T 1Q 08 2T 3T 4T 1Q 09 2T 3T 4T 1Q 10 (Current /m²/year ex-vat, excharges) French commercial property market bn Quarterly trends in investment in standard commercial real estate in France since Source : CB Richard Ellis 1.4 Paris region rental values, 1990 Q Q "Prime" Paris Centre West Average prime Ile-de-France "Prime" La Défense Source : CB Richard Ellis Take-up and immediate supply in the Paris region / GDP growth Thousands of m Immediately available supply (LHS) Take-up (LHS) French GDP growth (RHS) 5% 4% 3% 2% 1% 0% -1% -2% -3% Source : CB Richard Ellis Yields Prime yields (%) 31/12/08 31/12/09 at 1 ST Apr10 Offices, Paris CBD Offices, La Défense Offices, Western Crescent Offices, Inner Rim Offices, Outer Rim Offices, French provinces Class A large warehouses, France Light industrial areas, France Business parks, France Retail property, France Shopping centres, France Retail parks, France Source : CB Richard Ellis 22

23 Residential property development French residential property development market 106,300 residential units sold in 2009, up 34% relative to 2008 Impact of the Scellier act Doubling in 0%-interest loans Favourable financing terms 1st Q th Q th Q nd Q st Q th Q th Q nd Q st Q ,700 residential units put up for sale by developers in 2009, down almost 18% relative to 2008 Reduced inventories of residential property: 8 months in Q4 2009, 17 months in Q Upturn in activity starting in March 2009, combined with a sharp fall in cancellations, leading to a sharp increase in the number of sales. This improvement, combined with a cautious approach by developers in launching new programmes from 2008 onwards, has led to a sharp reduction in residential property inventories. During the 1 st Q 2010, 26,100 residential units put up for sale, or 67.5% over the 1st Q 2009 when the level of housing sales had been one of the lowest since * Source: FPC 23

24 Executive committee Serge Grzybowski Chairman and Chief Executive Officer of Icade Marianne de Battisti Antoine Fayet Thomas Guyot Hervé Manet Nathalie Palladitcheff Guy Parisot Maurice Sissoko Head of communications, marketing and international Head of residential property division, Senior advisor on the Grand Paris project Head of commercial property division CEO of CLL Head of property development division Head of finance, legal and IT Head of human resources Head of services 24

25 CLL: an 100% Icade subsidiary 24 December and 17 February March to 19 April May May May July 2010 Completion of Icade's purchase of a 35% stake in CLL Icade AGM: transfer of a further 60% stake and MSREF's subscription of Icade's reserved capital increase Alternative simplified public offer for the remaining shares involving a cash/shares option and a cash option Settlement of the public offer: Icade owns 99.23% of CLL Release of consolidated turnover as of 31 March 2010 Implementation of CLL squeeze-out Publication of the first set of Icade + CLL consolidated accounts 25

26 1 1 4 Asset management achievements Proven Asset Management Achievements Selected Examples New Leases signed over the last 18 months All asset classes Key Asset Management Plays Before 1 After Δ Area sqm Firm Period yr NRI m Secured NRI m Icade Crystal Park NRI m Firm Period yr Secured NRI m CLL Total m of new secured NRI have been signed by Icade & CLL asset management teams representing: c sqm in area 34 m per annum over 7.0 years Renegotiations of existing leases (L18M) All asset classes NRI m Casino Firm Period yr Secured NRI m NRI m 1 8 Millénaire 2 2 Firm Period Yr Secured NRI m Area sqm Additional Firm Period yr NRI m Secured NRI m Icade CLL Total Parc Pont de Flandre NRI m Firm Period Yr Secured NRI m (1) Before major renegotiations (2) Millénaire 2 Occupancy Rate from 9% to 100% An additional 373 m of existing leases have been re-secured representing: c sqm in area 90 m per annum over an additional 4.1 years * Secured NRI = NRI * Firm Period 26

27 Commercial property achievements Shopping centres Odysseum (Montpellier) 25,250 m 2 fully let Opened in September 2009 (full-year rent: 5.5m) Icade: developer, investor (50% Klépierre), marketer, manager Le Millénaire (Aubervilliers) 59,000 m 2 of retail property: 66% of leases reserved Scheduled opening: first half 2011 Icade: developer, investor (50% Klépierre), marketer Projects developed in-house, attracting leading brands as tenants 27

28 Composition of Icade s client portfolio Rank Occupants Current Rents at ( m) 1 PriceWaterhouseCoopers % 2 GENERALE DE SANTE % 3 EASYDIS CASINO % 4 VEDICI % 5 SCOR % 6 MINISTERE DE L'INTERIEUR % 7 CREDIT AGRICOLE SA 9.9 3% 8 GROUPE ICADE 8.7 3% 9 GROUPE MR BRICOLAGE 8.0 3% 10 MINEFI 6.7 2% 11 GROUPE RHODA 6.6 2% 12 GMG (T-Systems) 6.6 2% % Total Current Rents = m or 58% Total Current Rents= 162m or 51% Total Current Rents = 133m or 42% 13 HARPIN 5.4 2% 14 3H 5.2 2% 15 GROUPE PIERRE ET VACANCES 4.8 2% 16 ARS 4.8 2% 17 GROUPE AXA 4.7 1% 18 EURO MEDIA FRANCE 4.6 1% 19 TGI 4.1 1% 20 COCA COLA 3.6 1% Remainder % CLL tenants 315m A highly diverse set of leases and well-known tenants 28

29 CLL assets complement those of Icade Icade Offices / Business parks CLL Offices Rueil-Malmaison Development Nanterre La Défense Neuilly St Denis Epinay Aubervilliers Meaux Boulogne Issy Maison Alfort Villejuif Ris Orangis Evry The good fit between CLL's portfolio and Icade's makes the combined unit a leading player in commercial property in the Paris region 29

30 Grand Paris Business parks Construction of the metro line is progressing: completion in 2012 Condorcet university campus: 2011 Long-term development potential of around 500,000 m² as part of the Grand Paris plan Parc Pont de Flandre Tram Y Parc de Mauvin Parc des Portes de Paris Tram Y Millénaire shopping centre Parc du Millénaire (Icade head office) Condorcet university campus Stops on the 239 and 65 bus lines Q3 Extension of the 12 metro line in 2012 Q3 Tram routes T3 (2014) and Tram Y 30

31 Commercial property (Icade + CLL) Clinics: immediate and secure cash flow 18 MSO* units acquired 5 FRC** and MHE*** units acquired Drancy Nogent/Marne 2 healthcare facilities (CLL) 2 clinics currently being acquired (1 MSO, 1 FRC) Arras Soissons (MHE) Le Chesnay Trappes Brest Chartres (Mainvilliers) Laval Nantes Orléans (Olivet) La Roche sur Yon Poitiers Les Sables d Olonne Champigny/Marne Breakdown by type of operator % of portfolio value Roanne St Etienne Capbreton Agen Aire sur l Adour Pau Toulouse (Muret) * MSO: Medicine, surgery and obstetrics ** FRC: Follow-up and rehabilitation care *** MHE: Mental health establishment A portfolio worth 690m (excluding transfer duties) at end-2009, with a good balance in terms of geographical exposure and operators 31

32 Property development Income statement m Residential Commercial TOTAL* Change Revenues ,142 1, EBITDA EBITDA margin 4.5% 1.2% 11.0% 7.9% 7.7% 4.2% -3.5 pts Operating profit Business was resilient due to the upturn in the residential property development market. Margins narrowed due to block sales to social housing organisations and lower activity levels in commercial development * Including business-line intra-group items 32

33 Services Income statement m Core activities** (a) Divested activities (a) TOTAL (a) Change *** *** *** 2009 Revenues EBITDA EBITDA margin 11.5% 6.0% -0.8% -7.3% 5.8% 2.5% -3.3 pts Operating profit Decline in activity due to disposals in the second half of 2009 (a) Including business-line intra-group items ** Serviced residences Property Management - Advice / appraisal *** 2008 figures adjusted for internal transfers of goodwill 33