Beni Stabili: 9-month 2017 rents Full go towards year end Milan: October 24 th, 2017 Growth in operating metrics 1.5% L-f-L rental growth excl. TI assets 95.5% financial occupancy 93.1% excluding TI portfolio (+5.7 pts vs Dec 2015) Remarkable letting activity Overall, ~111,000 sqm of letting activity YTD for approx. 22 m annualized rents Strengthening of financial profile July: Investment grade rating by S&P ( BBB- long-term corporate credit rating with a stable outlook) October: 1 st rated unsecured bond, 300 million 1.625% 7 Years Upcoming 2018 maturities already secured and 2019 debt due reduced by half
OPERATING HIGHLIGHTS FOR 9-MONTH 2017 ACTIVITY Successful rental activity resulting in an increased occupancy rate 28 new contracts for 3.1 million annualized rents; 20 renewals for 15.0 million annualized rents; 6 prelettings for 4.2 million annualized rents; Occupancy rate is 95.5% group share on total portfolio and 93.1% excluding TI portfolio (+5.7 points vs. Dec. 2015); Weighted average maturity of lease agreements to first break-option of 7.4 years in group share; Committed development pipeline is 59% pre-let bringing around 11 million annualized rents. Investment and capex funded through targeted disposals of mature and non strategic assets Total disposals agreements of around 835 1 million with 5.8% gross exit yield: Disposal of a 40% stake in the SICAF (Central SICAF) completed in 2Q 2017, equivalent to approx. 618 million of assets sale; 217 2 million of additional disposals agreements, of which 192 million already cashed in; 194 million acquisitions mainly in Milan with 6% gross potential yield, including the announced 118 million acquisition of Credito Valtellinese Group s portfolio in the context of a sale and leaseback transaction 59 million of capex accrued in the 9 months group share. Active financing activity for a stronger debt profile Achievement of an investment grade rating with S&P in July 2017 (BBB- with stable outlook) Successful liability management: > February 2017: Buy-back of 270m 2.625% convertible bond due in 2019 > July-August 2017: 335m long-term secured financing with more than 8.5 years of maturity > October 2017: Issue of 300m first unsecured rated bond with 7-year maturity and 1.625% coupon (115bps margin above swap rate) * * * * * 9M2017 Rental Income: 141.7 million 3 The gross rental income amounts to 141.7 million in 3Q 2017 ( 149.0 million in 3Q 2016). This change is primarily due to the following main events: + 5.6 million increase due to acquisition of properties; - 13.8 million reduction due to disposals (of which 10.6 million related to the 40% stake in the SICAF disposal) + 3.1 million net impact from rental activities; - 2.0 million impact from releases of properties; - 0.2 million other non-recurring impacts. 1 Including a binding offer under condition precedent ( 9.5 million) 2 223 million consolidated 3 Group share: calculation includes rental income from Telecom Italia assets at 60% (BS ownership in Central Sicaf) from June 2017- (consolidated data: 152.4 million) 2
On the like-for-like basis, the gross accounting rents increase by +0.9% 4 (+1.5% excluding Telecom Italia portfolio). Group Share ( million) 9M2016 9M2017 Change (%) Occupancy Like-for-Like rate 5 Office TI 74.2 63.3 +0.2% 100.0% Office Non - TI 59.8 64.6 +1.8% 92.8% Total Office 134.0 127.9 +1.0% 95.6% Retail&others 15.0 13.7 +0.0% 94.8% Development 0.1 0.2 n.a n.a Total portfolio 149.0 141.7 +0.9% 95.5% Total portfolio (exc. TI) 74.8 78.5 +1.5% 93.1% RENTAL ACTIVITY Active rental activity and a stabilized occupancy rate The financial occupancy rate on group share portfolio (excluding Development) moved to 95.5% (stable from 95.5% at December 31, 2016). Total portfolio group share occupancy is impacted by the sale in June 2017 of 40% of TI portfolio, completely offset by the increase in occupancy on non-ti portfolio (96.3% total portfolio occupancy on consolidated basis as at 30/09/2017). The occupancy rate excluding Telecom Italia portfolio is 93.1% compared to 91.6% at the end of 2016 and to 87.4% at the end of 2015. This increase is strictly linked to an active rental activity. In particular, in 3Q 2017 Beni Stabili executed: 28 new contracts for 14,600 sqm and an annual rental value of 3.1 million; 20 renewals for 83,900 sqm and an annual rental value of 15.0 million. Beni Stabili has also signed 6 preletting agreements on development projects for a total of 12,800 sqm and 4.2 million annualized rent. Main lease transactions can be summarized as follows: Via Cernaia, Milan: pre-let contract for the whole building with Amundi for 3.1 million and a ~9 years firm maturity (+6 yrs); 8,300 sqm Via Montebello, Milan: renewal of the lease contract at passing rent with Intesa for 7.6 million and a 9 year firm maturity (+6 yrs); 18,426 sqm Symbiosis, Milan: new contract for 0.55 million and a 12.5 years firm maturity (+6 yrs); Via Colonna, Milan: new contracts for 0.6 million and a 7 years firm maturity (+6 yrs); Via Scarsellini, Milan: new contract for 0.7 million and a 7 years firm maturity (+6 yrs). Via Lugaro, Turin: renewal of a lease contract for 1.3 million and a 7 years firm maturity (+6 yrs). 4 The like-for-like rental growth is calculated on the stabilized portfolio as the growth rate coming from i) the effect of indexation to inflation; ii) the effect of an increase or reduction in the vacancy rate of the stabilized portfolio and iii) the effect of renegotiating expiring rents or of new rents. The stabilized portfolio is the portfolio adjusted by sales, acquisitions and development. 5 Occupancy as at 30/09/2017 includes already the effect of sale of assets under preliminary agreements (+0.4% effect on portfolio excluding TI assets already included, +0.3% effect on total portfolio). 3
The average maturity of lease agreements considering break options moved to 7.4 years group share 6. REAL ESTATE PORTFOLIO Value creation and improvement of portfolio quality through asset rotation Following the communicated strategic targets to improve operating performance and portfolio quality, Beni Stabili has launched a specific asset management plan which is rapidly progressing to re-position its portfolio on Milan green offices. Disposal agreements: 835 million of properties at a 5.8% gross exit yield During the period Beni Stabili sold 40% stake in Central SICAF, equivalent to approx. 618 million of assets (6.3% exit yield). In addition, Beni Stabili completed the sale of 7 assets for a value of 191.5 million, in line with book value. As of September 30 th 2017 the company has disposal preliminary agreements in place for approx. 25.7 7 million, at a price in line with book value. Acquisitions: 194 million at 6% potential gross yield During the period Beni Stabili purchased: Credito Valtellinese Group Portfolio: 17 assets for a total amount of 117.8 million and 6% gross yield; the two properties ( 19.2 million) subject to a pre-emption right in favor of the Italian Cultural Heritage authorities have been fully purchased by Beni Stabili on September 2017 following the decision of the authorities not to exercise the option; Milan, via Principe Amedeo for a price of 41.9 million and a potential yield of 5.2%; the asset will be completely refurbished; Milan, via Marostica for a price of 24.7 million and a 6.9% yield. Focus on development pipeline Beni Stabili has significantly grown its development pipeline since end-2015 and can today leverage on a 792 million pipeline encompassing 68.8 million capex 8 to be spent on committed projects (approx. 75% related to Milan properties) as well as circa 460 million managed projects in Milan. The main committed project in the pipeline is Symbiosis (building A+B). In July 2016, Beni Stabili signed a preletting agreement with Fastweb, the largest alternative fixed-line TLC provider in Italy part of the Swisscom Group, covering 16,000 sqm of office areas (and 266 covered parkings). Furthermore, during 1H 2017, Beni Stabili signed an additional pre-let contract with CIR Food, an Italian leading food service company, for the lease of 1,015 sqm of restaurant area on the ground floor. With this signing, Beni Stabili took the asset occupancy to 85%. Works on the pre-let building started in summer 2016 and are well-advanced for a planned completion in 4Q 2018. This 92 million project is expected to deliver a 7.1% yield on cost. Alongside the Symbiosis project in Milan, the complete refurbishment/repositioning projects in Beni Stabili s development pipeline as at September 2017 are: 6 7.2 years as at 30/06/2017, including leases renewed on July 2017. WALB as at 30 June 2017 was 6.9 yrs. 7 Including a binding offer under condition precedent 8 Includes construction costs, technical costs, urbanization fees, capitalised financial costs, home technical costs and various fees. 4
Turin, Corso Ferrucci: this 45,600 sqm office building is under complete refurbishment. Works are ongoing and in a well advanced stage, (67.5% of completion). As of September 2017, Beni Stabili signed pre-let contracts for approximately 10,700 sqm. The delivery of the first block of refurbished areas (100% pre-let) has been made during 3Q17. The remaining portions of the building are expected to be delivered in the future according to commercialization. Milan, Via Monte Titano: this 6,000 sqm building, which will be fully renewed and converted into a 130- room hotel, has been entirely pre-let to Meininger Hotels, with a 20+5 year lease agreement. Works are currently in progress and assumed to be completed by early 2018. Milan, Via Cernaia: this 8,300 sqm office building located in a strategic position in Milan set between CBD and the new Porta Nuova business district is under complete refurbishment targeting a Leed Platinum certification. The project also includes the construction of an additional attic floor. The building is 100% prelet to Amundi, which signed with Beni Stabili a ~9+6 years lease contract. The delivery of the refurbished building is expected by end 2017. Milan, Via Colonna: this 3,500 sqm office building is being entirely refurbished. The project concerns the complete remake of the asset facade of the internal and external spaces and the construction of an additional attic floor. Completion is expected to be achieved by beginning 2018. During the first nine months of 2017, Beni Stabili signed pre-let contracts on approximately 70% of the areas. Milan, Via Principe Amedeo: this 7,000 sqm historical building, whose acquisition has been finalized during 1Q 2017, is currently under refurbishment. The project, which is at 18% completion, includes the complete renovation of the internal and external spaces, together with the construction of an additional attic floor. Marketing activities are as well ongoing, delivery of the asset is expected by 2Q 2018. * * * * * As previously announced, Beni Stabili, in light of recent legislative changes in Italy, will no longer publish its third quarter interim management report. The Company will publish rental revenues for the three-month periods ended March 31, along with the continued publication of full year results for the twelve-month periods ended December 31 and half year results for the six-month periods ended June 30. "The director responsible for preparing corporate accounting documents, Barbara Pivetta declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance that the accounting information contained in this statement corresponds to the documented results, books and accounting records." PRESENTATION OF RESULTS Q3 2017 Alexei Dal Pastro (General Manager) and Barbara Pivetta (CFO) will hold a conference call for investors and analysts Tuesday 24 th October 2017 at 6.00 pm (CET) Slide presentation will be available in advance on Beni Stabili website. To participate please dial in the following numbers: Italia: +39 02 8020911; UK: +44 121 2818004; USA: +1 718 7058796 5
* * * * * For more information: Beni Stabili Siiq Investor Relations Barbara Pivetta - +39.02.3666.4630 barbara.pivetta@benistabili.it Media Contact - Barbara Ciocca - + 39.02.3666.4695 - barbara.ciocca@benistabili.it SEC and partners Srl Matteo Steinbach - +39.346.1063989 steinbach@secrp.com Michele Calcaterra - + 39. 335.461985 calcaterra@secrp.com Beni Stabili Siiq, a leading property company in the Italian real estate sector Beni Stabili is the leading property player in the Italian real estate market with total assets of over 4bn euro. Our assets portfolio is sited in key locations of North and Central Italy s major cities and consist mainly of offices. We pursue the appreciation of our assets to increase profitability and create value for our clients, partners and shareholders. As a major player in office investment and development, we foster pioneering solutions to improve the environmental performance of our buildings for the well-being of our clients employees. With this is mind we are developing in Milan a new business area dedicated to smart working: Symbiosis. Beni Stabili is listed on the Milan and Paris Stock Exchanges and operates through its main offices of Milan and Rome. Beni Stabili belongs to the Foncière des Régions group, a leading real estate player in Europe who owns and manage an 18bn euro portfolio located in the most attractive metropolitan cities of France, Germany and Italy. 6