2015 Annual Results - Actusnews Wire · 31 December 2015 31 December 2014 Buildings 1,712 1,596 o/w...

la foncière parisienne

2015 Annual Results

March 9, 2016

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Content

I. Introduction

II. Portfolio

III. Rental business

IV. Financial results

V. Outlook


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2015: key figures

• EPRA liquidation NAV

• Rental income Parisian Tertiary

• Revalued portfolio

• % of assets within Paris

• LTV ratio

• 2015 Dividend*

€37.12 /share (+16.6 %)

€53.1 m (+3,2 %)

€1,712m (+7,3 %)

90 % (+3 pts)

44 % (-3 pts)

€0.76 /share (+8,6 %)

* To be approved by the General Meeting of Shareholders

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Content

I. Introduction

II. Portfolio



V. Outlook


5


2015 : a new year of strong growth of portfolio

End of2015

1,712

Acquisitions + Capex

Revaluations

+54+116

Disposals (Value 2014)

-54*

1,596

End of2014

1,596

End of 2015 before

revaluations

Refocusing strategy on Prime Parisian

Tertiary

In € millionPortfolio: + 7,3 %

Lfl: +7,3 %

* €61m sales price

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Sq.m.Value excl.

duties

Rental income

€m

Yield / Value

€/sq.m.

Tertiary 189,358 1,518 72 4,7 %

o/w Paris CBD 104,434 1,192 51 4,3 %

Residential 21,036 194 5 €9,219

Renewed compression of yields in 2015

€9,131

5,3 %

4,8 %

2014

2015

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2015 acquisitions: €37.5m for three parisian assets

1, Cité Paradis, Paris 10

10, rue Chaptal, Paris 9

44, rue Copernic, Paris 16

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1, Cité Paradis, Paris 10

• Offices building

• 2,008 sq.m. + 7 parkings

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10, rue Chaptal (Paris 9)


• 1,361 sq.m.

10


44, rue Copernic (Paris 16)


• 1,785 sq.m.

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Continuation of sales of non strategic assets

• Amount:• €60.8m (sales price)• €53.9m (appraisal value)

• Net book gain: €27.5m

• Residential in Paris: €43.7m of disposals at an average price of €11,324 /sq.m.

• Net book gain of €24.5m

• Ile-de-France and Regions: €17.1m of disposals

• Net book gain of €3.0m

2015 disposals

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Growth drivers 2009 - 2015

0.2

1.0

0.5 1.7

0.15

End of 2008 End of 2015

(0.2)Revaluations

Acquisitions

Disposals

Merger with Avenir & Investissement

In Billion euros

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Focusing on Tertiary assets within the Paris CBD

82% 89%

€1,1 billion €1.7 billion

2011 2015

…on the Tertiaryvs Residential

78% 90%

€1.1 billion €1.7 billion

2011 2015

…on Paris vs In-the-Country

77% 88%

€0.9 billion €1.4 billion

2011 2015

…on Paris CBD vs Paris out of CBD

A continuing strategy of focusing the assets portfolio…

Basis 100 % total assets

Basis 100 % total assets

Basis 100 % parisian assets

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Content

I. Introduction

II. Portfolio



V. Outlook


28


Parisian Tertiary rental income: +€1.6m (-€1.2m globally)

1.5

71.9

Net acquisitions

0.1 (0.2)

Parisian Tertiary: +€1.6m

Residential:-€1.1m

Leasemanagement/ Indexation

Total rental income (€m)

70.7

(1.5)

Disposals

Leasemanagement

Other Tertiary: - €1.7m

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2015 key indicators for Parisian Tertiary assets

Potential revenues (€m)

Paris ParisCBD

Rental income (€/sq.m.)

Paris Paris CBD

60.051.1 459

489

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Secured Parisian tertiary portfolio by a high number of leases

215 sq.m.

410 sq.m.Paris CBD

Paris excl. CBD

€45.5m

€7.6m

Number of leases

Average area / lease

Paris Tertiary rental income

106

224

106

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http://www.google.fr/imgres?imgurl=http://blog.lefigaro.fr/social/2008/11/07/logo_pole_emploi_469__1905b.jpg&imgrefurl=http://blog.lefigaro.fr/social/2008/11/logos-alternatifs-pour-pole-em.html&h=300&w=469&sz=15&tbnid=3ElOgctQvlnmwM:&tbnh=82&tbnw=128&prev=/images?q=logo+p%C3%B4le+emploi&zoom=1&q=logo+p%C3%B4le+emploi&hl=fr&usg=__Vnr9Q2_vsygiyC4mKAtPCuN_JZM=&sa=X&ei=_9b_TI7BGIKy8gOY58WNCw&ved=0CBwQ9QEwAA

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EPRA vacancy rate

2014 2015 2014 2015

8.0 %

Based on leasable portfolio

9.0 %

Relocations: 70 rue St Lazare (Paris 9) and 198bis rue Lafayette (Paris 10) during Q3 2015 9 rue Galilée (Paris 8) on December 1st, 2015 50-52 Bd Haussmann : 2,050 sq.m. plateau relocated during Q4 2015

6.0 % 5.8 %

Total portfolio

Paris Tertiary

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2015 investments on portfolio

Maintenance and repair (reinvoiced to tenants)

57 %

37 %

3 % Works related to acquisitions

Works related to disposals

Refurbishing and valuation works

€17.6m

3 %

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Content

I. Introduction

II. Portfolio



V. Outlook


34


EPRA Earnings

Rental income

Rental expenses incurred and others

SG&A

Other operating revenues and charges

Financial result

Taxes

EPRA Earnings

70.7

(1.1)

(5.7)

(0.8)

(28.8)

(0.8)

33.5

2015(In € million) 2014

-1.7 %

-7.6 %

Change %

71.9

(0.3)

(5.5)

(1.3)

(27.9)

(0.7)

36.3

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Net result

EPRA Earnings

Amortisation on investment properties

Depreciation on investment properties

Profit on disposals

Fair value of financial instruments

Net result

33.5

(32.0)

(11.9)

27.2

-

16.7

2015(In € million) 2014

-7.6 %

Change %

36.3

(28.1)

(0.1)

26.5

(0.2)

34.3

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Renewed growth of EPRA liquidation NAV: +16.6 %

27.26

End of

2013

31.83

End of

2014

+16.6 %

37.12

End of

2015

Two leverages for growth:

Strategy of focusing of assetson Paris CBD

Mechanical effect of the reimbursement of annuallyredeemable loans

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(€m)31 December

201531 December

2014

Buildings 1,712 1,596

o/w Tertiary Paris 1,353 1,156

o/w Tertiary Ile-de-France and regions 165 211

o/w Residential 194 229

Net debt -746 -772

Others -13 -7

EPRA Liquidation NAV 953 817

Acquisition costs 106 102

Replacement NAV 1,059 919

Number of shares (diluted, net of own control) 25,663,444 25,671,095

EPRA Liquidation NAV per share €37.12 €31.83

Replacement NAV per share €41.26 €35.78

Breakdown of NAV

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Still decreasing LTV ratio

Revalued portfolio Net debt LTV ratio

€1,712m

€746m

44 %

End of 2015

€1,596m

€772m

48 %

End of 2014

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Secured long term financing

72 %

20 %

8 % €746m

• 100% redeemable loans

• In fine

2016 2018 2020 2022 2024 2026 2028 2030

€120m

€40m• Credit lines

• Corporate financing

Net debt breakdown

as of 31 December 2015

Maturities per year (In €m)Situation as of 31 December 2015

• Weighted average cost of gross debt: 3.69% in 2015

Redeemable loans

Credit lines and others

Corporate financing

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A sustained growth policy for the dividend

0.21

0.43

0.23

0.460.26

0.30

0.220.27

0.61

0.220.24

2008 2009 2010 2011 2012 2013 2014 2015

0,30

0.310.49

0.57

0.32

0.32

0.64

0.34

0.36

0.70

Complement to total dividend

Interim dividend

€ per share + 8.5% on a yearly average

* To be approved by General Meeting of Shareholders on May 11, 2016

+8.6 %

0.38

0.38

0.76*

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Content

I. Introduction

II. Portfolio



V. Outlook


42


Continuous search for quality assets in Paris on strict criteria (multi-tenancy, occupancy rates, etc)

Acquisitions on optimal conditions

Valuation gain realized at the acquisition

€526m of value created over 2009-2015 (o/w €116 m in 2015)

Clear positioning of long-term and proactive investor

In €m

2009 2010 2011 2012 2013 2014 2015

25.1 26.0

85.6

65.0

91.0

Value created as measured by experts

revaluations

118.0 115.8

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2016 outlook

• Goal: keep focusing on Paris CBD

• TERREÏS will continue to seek investment opportunities which come available in the prime Paris Tertiary sector

• Will pursue to optimize the resale of its residential, and tertiary assets regional and Paris area in optimal conditions

• Net proceeds from disposals will be reinvested in tertiary assets within Paris CBD

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Residential €194m

Regions €29m

Ile-de-France €136m

€359m of assets on sale

Tertiary within Paris

€359m of assets to be sold, or 21% of total portfolio

Net proceeds from disposals to be reinvested in tertiary assets within Paris CBD

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Tertiary assets in Ile-de-France: Antony

11 to 15 avenue Lebrun

9-year fixed lease

Term in 2024

Rented to FONCIA

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Tertiary assets in Ile-de-France: Issy les Moulineaux

Portes Sainte Lucie

Under promise

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Tertiary assets in Ile-de-France: Ivry sur Seine

60-61 Quai Auguste Deshaies

13,000 sq.m., vacant since mid-February 2016

Relocation over the next few months, or conversion into hotel residence

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Residential assets

25-27 rue MarbeufParis 8

43 rue de LilleParis 7

10-12 avenue de Messine Paris 8

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Regional assets

Shopping arcade,

downtownChartres

Tours (4,500 sq.m.)

Thiers TowerNancy

(4,300 sq.m., 20%)

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TERREÏS’ Model key aspects

• Property investment company focused on tertiary assets in Paris CBD with diluted tenant risk and high occupancy rates

• Strong capacity to create value from the moment of acquisition and through optimal and inexpensive management conditions

• Financing through fixed rates mortgaged-redeemable loans

• Dividend partly provided by non-strategic assets disposals programme

• Mechanical improvement of NAV through annual reimbursement of debt

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NAV and net debt long term trends

Net debt

Liquidation NAV

• Everything being equal, the regular reimbursement of a 100% mortgaged-redeemable debt mechanically improves NAV and mechanically reduces LTV ratio

Time

52


Global value creation 2011 - 2015

Gain on NAV/share (Year N NAV – Year N-1 NAV) €/share

Dividend (€/share)

Gain on NAV + dividend / NAV at the begining of period

2011 2012 2013 2014 2015

4.574.16

3.56

5.27 €/share4.77 €/share

4.13 €/share 4.04 €/share

0.700.640.610.57

3.40

25.6 %24.2 %

16.9 %

19.3 %

* To be approved by the General Meeting of Shareholders

5,29

0,76*

19,0 %

6,05 €/share

APPENDIX


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Profit and loss account (1/2)

70.7

2.0(2.5)(0.7)

69.5

(6.4)

63.1

(32.0)

31.1

-1.7 %

-2.9 %

-

-4.5 %

+10.7 %

-16.2 %

2015 Change %(In € million) 2014

100.0 %

98.4 %

89.3 %

44.0 %

In % of rental income

In %of rental income

71.9

1.8(1.5)(0.6)

71.6

(5.6)

66.1

(28.9)

37.2

100.0 %

99.6 %

91.9 %

51.7 %

Rental income

Other revenuesReinvoiced chargesManagement and rental fees

Net revenue income

Operating charges

EBITDA

Depreciation

Current operating income

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31.1

27.1(11.9)

46.3

(28.8)(0.8)

16.7

16.10.6

€0.63

2015(In € million) 2014

-16.2 %

Change %

37.2

26.5(0.4)

63.1

(28.1)(0.7)

34.3

33.80.5

€1.33

Current operating income

Margin on assets disposalsOthers

Operating income

Financial incomeTaxes

Net income

Group shareMinority interests

Net income per share

Profit and loss account (2/2)

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Consolidated balance sheet

1,03213

1810

1,073

216

722674

13589

1,073

2015(In € million)

ASSETS

BuidingsOther non current assets

Current assetsCash*

Total

Shareholders equity

Non current liabilitieso/w financial debt

Current liabilitieso/w financial liabilities

Total

1,05424

166

1,100

207

764702

12984

1,100

2014

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TERREÏS shareholding basis as of 31 December 2015

54 %

Float

46 %

Ovalto

Investissement46 % 54 %

Institutional

shareholders

(48 % France,

52 % International)

Individual

shareholders

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Jan. 2009 Jan. 2010 Jan. 2011 Jan. 2012 Jan. 2013 Jan. 2014 Jul. 2014 Jan. 2015 Jul. 2015 Jan. 2016

40

35

30

25

20

15

10

€/share

NAV per share

TERREÏS stock price

Index IEIF Europe

Index CAC Mid et Small

TERREÏS Stock price and liquidation NAV

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Disclaimer

The present document contains projections and descriptions of TERREÏS’ future strategy, objectives and prospects.

These projections and descriptions may be affected by known or unknown risks, uncertainty and other random factors that could ensure that TERREÏS’ future results, performance and achievements are significantly different from what is envisaged or suggested in the present document. These risks are described in the « Risks Factors » part of the Document de Référence registered with AMF on April 10, 2015 with the number D.15-0321.

TERREÏS makes no commitment and extends no guarantee that it will fulfil or meet its future strategy, objectives and prospects.

Unless the law states otherwise, TERREÏS makes no commitment to update or revise the projections and descriptions contained in the present document.

The present document does not constitute in any way a solicitation to sell, buy or subscribe to TERREÏS shares.

2015 Annual Results - Actusnews Wire · 31 December 2015 31 December 2014 Buildings 1,712 1,596 o/w...

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Transcript of 2015 Annual Results - Actusnews Wire · 31 December 2015 31 December 2014 Buildings 1,712 1,596 o/w...