2005 year-end results presentation March 2006

Transcription

1 2005 year-end results presentation March 2006

2 2005 Key Points Twofold increase in portfolio and share capital Execution of business plan Commitments in first half 2005 : 105 M Acquisition of Locafimo in second half 2005 : 285 M A balanced and complimentary portfolio with STE A Nationwide presence 157 M capital increase in November 2005 Subscription price 62 per share Discounted subscription price 98.9% of shareholders took up issue Portfolio valuation : 703 M of commitments as at 12/31/

3 2005 Key figures Var Rents 14,7 M 27,2 M 85% Net Corporate Profit 4,2 M 9,7 M 131% Net profit 10,7 M 15,8 M 48% Net profit per share ** 4,2 3,1-26% Cash Flow 0,0 M 24,0 M N.S. Cash Flow per share ** 0,0 4,7 N.S. Triple Net Asset Value excluding Rights 159,1 M 324,1 M 104% NAV per share ** 62,7 63,8 2% Dividend per share ** 1,57 4,00 * 155% * 2005 distribution 2 per share paid in September (2005 interim dividend) 2 per share proposed at the AGM on May 17 : 0,85 (2005 additional dividend) 1,15 (2006 interim dividend through Locafimo reserves) ** Number of shares as at 31/12/2005 :

4 2006 projections Since 01/01/2006 : Acquisition pipeline under contract of 120 M exclusively new office developments Residual investment capacity of 230 M Disposals in hand of 45 M The portfolio as at 31/12/2005 will generate the following rentals : 52 M in M in 2007 The first quarter commitments will generate 9 M of additional rents in M in

5 Sommaire I. French market overview II. The portfolio III. IV projections V. Appendices

6 French property market The office market continues its gradual recovery especially for new or modern space due to modest employment improvement and a limited development pipeline Demand remains however motivated by corporate restructuring and the search for economies The stock of obsolete space is increasing to the point of numerous properties being unmarketable The CBD has performed relatively well through rental adjustment and the new peripheral emerging locations continue to perform The mismatch between the investment and occupational markets remains The French market is the most stable in Euro zone attracting intense investment activity Evolution of rents and yields Yield 7.75% Capital Value +30% 6%? Rent 300/m² Rental Value -33% 200/m²? -6-

7 Adapting conditions strategy to evolving market In this context STE has adapted and modelled its investment criteria to preserve its profitability while doubling in size Future purchases to upgrade the portfolio Future Purchases : Value added Locafimo offers a secured mixed portfolio with value added potential Locafimo : Multilet / Upside Initial portfolio of stable and secured leases Initial Portfolio : Secured long leases -7-

8 Sommaire I. French market overview II. The portfolio III. IV projections V. Appendices

9 Portfolio breakdown and value Commitments estimated at 703 M as at 31/12/2005 Breakdown of assets (including developments) By Value By Rent By Floor Area Warehouses 14% Warehouses 17% Warehouses 29% Offices 29% Parc Clubs 18% Offices 56% Parc Clubs 20% Offices 51% Business Space 12% Business Space 12% 703 M 58,7 M Parc Clubs 27% sqm Business Space 15% -9-

10 Competitive rents Rental breakdown by asset class Yield breakdown by asset class /m² 74 /m² 67 /m² 53 /m² 91 /m² 11% 10% 9% 8% 7% 6% 7,81% 8,31% 8,92% 9,69% 8,34% 30 5% 0 Offices Business Space Parc Clubs Warehouses Average rent 4% Offices Business Space Parc Clubs Warehouses Average yield Considerable uplift potential for : The value of the assets Portfolio is externally valued at 1096 /sqm The gross portfolio yield is 8,34% : Current disposals are at 12% above the 31/12/2005 valuation -10-

11 A nationwide presence Floor area : 641,346 sqm (developments 32,500 sqm) Lille Île de France Caen Paris Metz Strasbourg Vannes Nantes La Roche sur Yon Orléans Dijon Nancy Sochaux Lyon 91 Saint Etienne Grenoble Montpellier Aix /Vitrolles STE Assets <5 M 5M <Assets <10 M Locafimo Toulouse Marseille Assets > 10 M -11-

12 A blend of complementary income flows 100% Lease break profile 90% 80% 70% 60% 50% (1) 40% 30% 20% 10% (2) 0% (1) : Including in hand future purchases (2) : Locafimo (450 tenants) hypothesis 80% of existing 3/6/9 years-leases renewed on a roll over basis -12-

13 Year s activity

14 Etupes (Sochaux) Location : Etupes de l Allan (Sochaux) Tenant : GEFCO, filiale à 100% de Peugeot Area : sqm Use : Warehouses / parcels docks Delivered on November 2005 Global investment : Rent : Yield : 9 % Lease : 9 year fixed term lease -14-

15 Caen Location : Colombelles (Caen) Tenant : Philips France Area : sqm Use : Offices/Research & development centre Under development, delivery date : 1st quarter 2007 Global investment: Rent : Gross yield : 9 % Lease : 9 year fixed term lease (Q Q1 2016) Occupancy : 100 % -15-

16 Massy Areva Location : rue de Paris à MASSY (91) Tenant : Areva (63% of the total area), SFR (37%) and Carrefour (parkings) Area : sqm Use : Offices Delivery date : November 2006 Global investment : (charges and taxes excluded) Rent : (charges and taxes excluded) Yield : 8 % Lease : Areva 7.5 year fixed term lease and SFR 9 year fixed term -16-

17 Locafimo acquisition Île de France 53% Asset breakdown by valuation and situation Warehouses 9% Parc Clubs 7% Offices 37% Offices 9% Parc Clubs 38% Regions 47% Parc Clubs : The rump of the portfolio comprise 11 business parks of various sizes of which 8 are located in the regions Multiletting offers risk diversification These campus style business parks in landscaped environments offer competitive business space atuned to the growing service industry in the regions Number of assets Area (in sqm) Rent (in k ) Offices Paris Intra Muros Ile de france Régions PARC CLUBS Ile de France Régions Warehouses Ile de France & Régions TOTAL 35 assets Offices : Parisian offices are traditional buildings located in the central areas Suburban offices are located in newly established business districts Regional properties are located in major urban centres Warehouses : Multilet category B units, mostly in provincial locations -17-

18 Two complementary portfolios Locafimo offers a balanced portfolio Even spread between Paris end the regions Office and business properties Moderate rents complimentary to STE First central Paris properties acquired at reasonable prices The standard leases permits active asset management and value creation in the short term Large tenant (450) base limiting risk Increase STE presence in preferred locations (Lyon, Strasbourg, Nantes, Grenoble) Fully secured serviced land bank of sqm with development potential -18-

19 Asnieres & Paris-Dumont Durville Location : Asnieres (92) Single tenant : Ministère de l Intérieur Area : sqm Use : Offices, 291 underground parkings Valuation : M Rent as at 31/12/2005: M Location : Paris (16) Single tenant : Klépierre Area : 1500 sqm Use : Offices Valuation : M Rent as at 30/06/2005 :

20 Montparnasse & Lyon Tour Montparnasse Location : Paris 15ème Tenant : Ixis Asset Management Surface : sqm Use : Offices and 18 parkings Valuation : M Rent : 680 K Tour Crédit Lyonnais Location : Lyon La Part-Dieu Multi-tenant Area : sqm Use : Offices -20- Valuation : M Rent : 761 K

21 Creating value Locafimo portfolio : Disposal of small non-strategic lots : Generates substantial distributable income Elimination of negative outgoings on vacancies Crédit Lyonnais Tower in Lyon is well positioned to meet current Part-Dieu market demand Rationalisation of business park leasing and ownerships La Poste portfolio : financing a doubling of the Saint Gibrien sorting facility in the context of a new 9 year lease Acquisition of adjacent site to provide increased parking facilities for existing tenant Initial feasibility of Massy site -21-

22 Exemple of land bank development Parc des Prés - Lille Villeneuve d Ascq : Total lettable area : sqm Actual occupancy rate : 80 % sqm development potential Parc des Aygalades Marseille : Total lettable area : sqm Actual occupancy rate : 89 % sqm development potential -22-

23 Exemple of land bank development Parc des Tanneries Strasbourg: Total lettable area : sqm of which sqm currently exploitable Actual occupancy rate : 75% ( sqm) Potential for extension, redevelopment or refurbishment : up to sqm SHON -23-

24 Sommaire I. French market overview II. The portfolio III. IV projections V. Appendices

25 Consolidated results (in M ) Var % Rental Income 15 M 27 M 85% Service charges -2 M -3 M 41% Current operating income 13 M 24 M 93% Fair value adjustment 9 M 33 M 265% Depreciation and amortization -6 M -29 M 382% Non current operating income 3 M 4 M 27% Operating expenses -2 M -7 M 209% Operating income 13 M 21 M 59% Net interest cost -3 M -5 M 104% Profit before tax 11 M 16 M 48% Net Profit 11 M 16 M 48% Earnings per share (*) 6,03 7,64 27% (*) weighted average number of shares :

26 Balance sheet (in M ) Assets Investment properties 254,2 M 617,7 M Properties under development 0,0 M 36,3 M Debtors 12,9 M 28,3 M Cash and equivalent 28,9 M 77,1 M Total Assets 296,0 M 759,4 M Liabilities Share capital & reserves 135,3 M 289,5 M Net income 10,7 M 15,8 M Long Term debt 138,2 M 355,8 M Other debt & creditors 11,8 M 98,3 M Total Liabilities 296,0 M 759,4 M -26-

27 Financial structure Consolidated shareholders' equity 146,0 M 305,3 M Net Financial Debt 109,3 M 278,7 M LTV (*) 43,0% 42,5% Average cost of debt (year end) 3,5% 3,7% Hedged debt exposure 84% 83% Maturity 5,9 4,5 Interest Coverage Rate 3 3 (*) Valuation excluding stamp duties February 2006 : refinancing of La Poste portfolio Refinancing in progress : 200 M -27-

28 NAV : recent evolutions 1st half results Interim dividend distribution -2 Capital increase dilution 6,3-3,8 Acquisition costs and Exit tax -6,4 7 62,7 68, M NAV as at 31/12/2004 2nd half results 63,8 324 M NAV as at 31/12/ shares shares -28-

29 Sommaire I. French market overview II. The portfolio III. IV projections V. Appendices

30 Investment strategy Seek further acquisitions from opportunity funds, complex and innovative transactions Forward purchases / developments Upgrading the current portfolio Serviced land bank (Strasbourg, Lille, Marseille, Massy) Crédit Lyonnais Tower : market repositioning Maintain STE investment criteria Attractive yields Secure identifiable revenues Offices and business space Nationwide -30-

31 Towards team integration Mark Inch and Robert Waterland employed by STE Awon Asset Management becomes a subsidiary Price 4 MEUR Completion : april employes -31-

32 An attractive cash-flow model

33 An attractive cash-flow model 2005 distribution : 4 per share 2 per share paid in September (2005 interim dividend) 2 per share proposed at the AGM on May 17 : 0,85 (2005 additional dividend) 1,15 (2006 interim dividend through Locafimo reserves) An increase of 155% (Dividend 2004 : 1,57 per share) Future growth prospects -33-

34 2006 calendar AGM : 17 may dividend payment : 30 may 2006 First Half 2006 turnover : 11 august 2006 First Half 2006 results presentation : 15 September 2006 Interim dividend payment : 26 September

35 Sommaire I. French market overview II. The portfolio III. IV projections V. Appendices

36 Continuous trading since March 20, janv 04 mars 04 mai 04 juil 04 sept 04 nov 04 janv 05 mars 05 mai 05 juil 05 sept 05 nov 05 janv 06 mars 06 Performance since 1 January 2004 : +93.4% Performance since 1 January 2005 : +28.2% Price as at 21 march

37 Current cash-flow FFO 6,6 M 14,0 M Current Cash-Flow 0,0 M 24,0 M Per Share Data FFO 2,53 5,37 Current Cash-flow 0,00 9,19 (*) weighted average number of shares :

38 Fin