FULL-YEAR RESULTS 2011 Presentation of 23 February 2012
KEY FIGURES Affine EPRA earnings per share ( ) EPRA Net Asset Value ( m) 1.33 1.45 1.60 284.4 281.9 287.6 2009 2010 2011 2009 2010 2011 Dividend per share ( ) Capital recycling ( m) 2.4 Investment Disposal 1.8 1.2 72.3 10.6 36.2 2009 2010 2011 (44.6) (53.4) (80.7) 2009 2010 2011 2011 FULL-YEAR RESULTS 2
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
EQUITY METHODE BANIMMO AND JARDINS DES QUAIS Affine Impact on the Portfolio Impact on the P&L 1 010 71 285 725 21 50 2010 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
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
INVESTMENTS AND DISPOSALS 2011 FULL-YEAR RESULTS 6
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
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
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
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 128.36 m² Common areas Open plan office Private offices Conference bubble Conference room 2011 FULL-YEAR RESULTS 10
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 2010 2011 FULL-YEAR RESULTS 11
PERFORMANCE OF THE PORTFOLIO 2011 FULL-YEAR RESULTS 12
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
PARIS COMPARED TO REGIONS Performance of the portfolio Capital yield (%) Rental yield (%) Paris Régions Paris Régions 25 12 20 10 15 10 5 0-5 -10 2000 2001 2002 Source: IPD 2003 2004 2005 2006 2007 2008 2009 2010 8 6 4 2 0 2000 2001 Source: IPD 2002 2003 2004 2005 2006 2007 2008 2009 2010 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
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
STABILITY IN RENTAL INCOME LIKE-FOR-LIKE Performance of the portfolio Trend in headline rents annualized ( m) 50 48 46 46.2 (3.3) 3.0 46.1 44 0.2 42 40 31/12/2010 Disposal Like-for-like Acquisition 31/12/2011 2011 FULL-YEAR RESULTS 16
FAVOURABLE EFFECT OF CAP RATES Performance of the portfolio Change in fair value excluding TT ( m) 687 (53) +30 672 +2 +1 +6 +0 31/12/10 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
DECREASE OF THE VACANCY Performance of the portfolio Occupancy rates 95.4% 94.0% 94.5% 94.0% 92.2% 87.7% 89.0% 2005 2006 2007 2008 2009 2010 2011 2011 FULL-YEAR RESULTS 18
LEASE AVERAGE DURATION 5.5 YEARS Performance of the portfolio Schedule in rents according to lease duration 50 40 30 20 10 0 31/12/11 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
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
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 www.banimmo.be 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
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 2013. 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 2012. 2011 FULL-YEAR RESULTS 22
CONSOLIDATED ACCOUNTS 2011 FULL-YEAR RESULTS 23
CONSOLIDATED EARNINGS - PROFORMA Consolidated accounts ( m) 31/12/09 31/12/10 31/12/11 Gross rental income 54.4 50.0 48.3 Net rental income 44.9 42.6 43.1 Other income 3.8 5.1 3.6 Corporate expenses (14.3) (13.1) (12.0) Current EBITDA (1) 34.4 34.6 34.7 Current operating profit 34.2 34.4 34.6 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.) 35.2 29.7 34.9 Net balance of value adjustments (36.3) (3.8) 1.7 Net operating profit (2) (1.1) 25.9 36.6 Net financial cost (19.5) (19.6) (18.2) Fair value adjustments of hedging instr. (5.4) (0.1) (2.3) Taxes 4.1 0.3 (0.4) Miscellaneous 17.3 4.1 0.9 Net profit (4.6) 10.5 16.6 Net profit group share (2.9) 10.3 15.3 EPRA earnings Net recurring profit 15.6 16.0 18.5 (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. 2011 FULL-YEAR RESULTS 24
CONSOLIDATED CASH FLOW - PROFORMA Consolidated accounts ( m) 31/12/09 31/12/10 31/12/11 Funds from operation 33.3 27.7 19.7 Funds from operation (excluding cost of debt and tax) 51.1 45.9 38.8 Change in WCR 19.5 (3.1) 10.1 Taxes paid 2.1 (3.3) (0.6) Operating cash flow 73.0 39.6 48.3 Acquisitions & Investments (49.7) (24.4) (25.5) Disposals 69.5 88.4 47.2 Others 4.4 3.2 1.6 Investment cash flow 34.3 67.1 23.3 New loans 91.8 19.6 24.2 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
CONSOLIDATED BALANCE SHEET - PROFORMA Consolidated accounts ( m) 31/12/09 31/12/10 31/12/11 Properties 760.2 686.5 672.2 of which investment properties 672.8 611.1 520.8 of which property held for sale 87.4 75.4 151.4 Equity holdings 0.3 0.2 0.3 Equity affiliates 86.2 84.0 85.8 Cash 33.0 23.7 23.3 Other assets 143.8 126.5 99.4 Shareholders equity (before allocation) 364.0 362.5 362.2 of which convertibles 31.0 31.7 20.8 of which PSL 73.3 73.3 73.4 Bank debt 539.6 482.0 450.0 Other liabilities 119.9 76.4 68.8 Total balance sheet 1 023.5 920.9 881.0 2011 FULL-YEAR RESULTS 26
NET ASSET VALUE - PROFORMA Consolidated accounts (M ) 31/12/09 31/12/10 31/12/11 Shareholders equity(beforeallocation) 349.3 347.5 348.4 PSLadjustment (73.3) (73.3) (73.4) Fairvalueadjustmentstohedginginstr. 9.1 9.5 14.3 Netdeferredtax (0.6) (1.8) (1.7) EPRANAV(excludingtransfertax) 284.4 281.9 287.6 EPRANAV(includingtransfertax) 326.5 322.4 326.5 EPRANAV(excludingtransfertax)pershare( ) 31.4 30.3 29.0 m 500 400 300 348.4 (73.4) 287.6 +14.3 (1.7) +38.9 326.5 200 100 0 IFRS NAV PSL FV hedging instr. Excluding Fair Value Deferred tax EPRA NAV Transfert taxes EPRA NAV ITT 2011 FULL-YEAR RESULTS 27
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 31/12/2011 30.3 per share 29.0 per share 2011 FULL-YEAR RESULTS 28
FINANCING 2011 FULL-YEAR RESULTS 29
A DECREASING LTV Financing LTV of 50.8 % 900 800 700 600 500 400 300 200 100 0 881 821 803 120% 100% 80% 484 423 407 60% 55.0% 51.5% 50.8% 40% 20% 0% 2009 2010 2011 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
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 2011 6 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
A SMOOTHED DEBT PROFILE Financing Baudry Amortisation of debt ( m) 140 120 100 80 60 40 20 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 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
AFFINE ON THE STOCK MARKET 2011 FULL-YEAR RESULTS 33
SHARE PRICE ( ) AND AVG TRANSACTION VOLUMES (000) Affine on the stock market 26 Affine Euronext IEIF SIIC France EPRA Europe 24 22 20 18 16 14 12 10 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.-12 50 40 30 20 10 0 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 2011 FULL-YEAR RESULTS 34
HIGH POTENTIAL OF THE SHARE PRICE Affine on the stock market EPRA NAV per share and share price ( ) 50 40 Price NAV 30 20 10 0 31/12/2007 31/12/2008 31/12/2009 31/12/2010 31/12/2011 2011 FULL-YEAR RESULTS 35
DIVIDEND Affine on the stock market Affine, high yield property company 30 25 20 Cash Share 20.6 15 10 12.2 13.4 8.1 14.4 9.8 10.8 * 5 10.7 0 2006 2007 2008 2009 2010 2011 a 9.6% yield based on the share price of 31/12/2011 ( 12.5) * Pending shareholder approval on April 27, 2012. 2011 FULL-YEAR RESULTS 36
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 12.50 Market capitalisation 112.5m Change in FY 2011-26.9% 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
STRATEGY & OUTLOOKS 2011 FULL-YEAR RESULTS 38
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
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
CONTACT AffineA Maryse Aulagnon Chairperson and CEO Alain Chaussard Vice-Chairman and Co-CEO + 33 (0)1 44 90 43 10 info@affine.fr Frank Lutz Financial Communication & Investor Relations + 33 (0)1 44 90 43 53 frank.lutz@affine.fr Liquidity contract: Website: Société Générale www.affine.fr 2011 FULL-YEAR RESULTS 41
PORTFOLIO CHANGE Appendix ( m) 31/12/09 31/12/10 31/12/11 Value (incl. TT) 801 725 709 Gross rental income 54.4 50.0 48.3 Number of assets (1) 92 78 70 Total surface area (sqm) 667,000 554,000 556,000 Investments (2) 72 11 36 Disposals 45 81 54 Occupancy rate (%) (3) 92.2 87.7 89.0 (1) Including pre-sale contracts in progress (VEFAs) (2) Including external growth (3) Excluding buildings being restructured 2011 FULL-YEAR RESULTS 42
STABILITY OF THE FAIR VALUE, LIKE-FOR-LIKE Appendix Value including transfer taxes ( m) France (outside Paris) Paris Outside France 807.3 801.5 28.9 26.6 216.6 199.0 725.0 709.0 20.1 202.3 205.0 561.8 575.9 502.6 504.0 31/12/2008 31/12/2009 31/12/2010 31/12/2011 A fair value stable (+0.1%) on a like-for-like basis between 2010 and 2011 2011 FULL-YEAR RESULTS 43
BALANCE DES INVESTISSEMENTS ET CESSIONS Appendix Balance between total investments and disposals ( m) Affine AffiParis Total Cession Acquisition Developpement Restructuration -60-50 -40-30 -20-10 0 10 20 30 40 50 60 Disposal: 54m Investments: 36m 2011 FULL-YEAR RESULTS 44
CALCUL OF LTV (NET DEBT / PORTFOLIO VALUE) Appendix ( m) 31/12/09 31/12/10 31/12/11 LOAN Net financial debt 535 465 435 Debt allocated to lease financing (51) (42) (27) Debt allocated to investment securities Debt allocated to development business Debt for investment properties 484 423 407 VALUE Value of properties (incl. TT) 801 725 709 Property companies on equity basis 86 84 84 VEFA & Fixed assets adjustments (7) 12 10 Adjusted portfolio value incl. taxes 881 821 803 LTV (net debt on portfolio value) 55.0% 51.5% 50.8% 2011 FULL-YEAR RESULTS 45
COVENANTS Appendix Breakdown of covenants M 81,3 12,9 31,3 71,2 14,4 17,6 23,5 LTV DSCR ICR 0 50 100 150 200 250 300 Actif Corporate Banimmo For syndicated loan: LTV ratio on asset and corporate, 1 DSCR ratio 2011 FULL-YEAR RESULTS 46