22
9-month 2016 Revenues: Outlook revised upwards 3 November 2016
9-month 2016 Revenues:
Outlook revised upwards
3 November 2016
CONTENTS
FONCIÈRE DES RÉGIONS 2
> A SUCCESSFUL LETTING ACTIVITY
> STRONG INVESTMENT ACTIVITY
> KEY TAKEAWAYS
> APPENDIX
3
Office – Milan
1
A successful letting activity
FONCIÈRE DES RÉGIONS 4
LETTING ACTIVITY
NEW LETTING SUCCESSES DURING Q3
New leases during Q3
9M 2016 REVENUES
Silex1 (10,600 m²) – Lyon: +1,600 m² new pre-
lettings
Calypso (9,600 m²) – Marseille: +1,400 m² new
lettings
France Offices: success of the development pipeline
Italy Offices: success of the new letting strategies
Corso Ferrucci (45,600 m²) – Turin: +6,700 m²
new pre-lettings
Monte Titano (6,000 m²) – Milan: fully let to
Meininger for transformation into a hotel45,000 m² of new lettings YTD 57,000 m² of new lettings YTD
102,000 m² of new lettings+€25 million of new rents (€18 million Group Share)
France Offices: +16,000 m² including
Italy Offices: +22,000 m² including
FONCIÈRE DES RÉGIONS 5
LETTING ACTIVITY
RENTAL INCOME AT END-SEPTEMBER: +3.8%
9M 2016 REVENUES
German Residential
Hotels in Europe
France Offices
Italy Offices
1€10 million Group Share; 2North Rhine-Westphalia
Positive impacts of the deliveries
and acquisitions
Occupancy rate 95.2% vs 95.8%:
• Departure in Paris CBD (Paris-
Delcassé) with positive
reversionary potential
Increased occupancy in offices ex-TI:
• +2.1% like-for-like rents
1st results of the vacant asset capex
plan
• Already 44% of the +€19 million1 in
cash-flows secured
Pursuit of the increase in the like-
for-like trend in all regions
• Berlin: +5.0% vs +4.4% in 2015
• NRW2: +2.2% vs +1.6%
AccorHotels (40% of the rents):
-9.3% (variable rents)
• Paris: -18%
• Brussels: -20%
• French Regional cities: +1.7%
Others: +0.2% like-for-like
FONCIÈRE DES RÉGIONS 6
LETTING ACTIVITY
9-MONTH 2016 REVENUES: +3.8%
€millionRental income
100%
Rental income
Group ShareChange
Change on like-for-like basis
Occupancy rateResidual firm
terms of leases (in years)
Offices - France 206.9 188.0 + 4.4% - 0.5% 95.2% 5.7
Offices - Italy 149.0 75.8 - 4.3% - 0.2% 95.2% 9.2
Of which Telecom Italia offices 74.2 37.7 -7.2% -2.5% 100% 14.1
Of which portfolio ex Telecom Italia 74.8 38.1 +2.6% +2.1% 91.0% 4.9
Residential Germany 159.3 98.4 +15.0% + 3.1% 98.2% n.a.
Hotels/Service Sector 146.4 61.8 +2.9% - 3.7% 100% 10.4
Other (French Resi.) 11.9 7.3 n.a. n.a. n.a. n.a.
Total 673.5 431.2 +3.8% 0.0% 96.4% 7.3
9M 2016 REVENUES
1
2
3
4
6 6
1 • Renewals: -0.1%; Indexation: +0.2%; Occupancy rate: -0.6%
2
3
5• Impact of 2015 lease renegotiation and disposals
• First positive effects of the plan on vacant assets
• Renewals: +0.1%; Indexation: -0.1%; Occupancy rate: 0%
5
6 • Secure long-term cash-flows
4 • Acquisitions in Berlin
7
2
Strong investment activity to
drive-up quality and growth
EDO, Greater Paris
FONCIÈRE DES RÉGIONS
Offices - Bordeaux
8
INVESTMENT ACTIVITY
INVESTMENTS: AN ACTIVE YEAR FOR THE DEVELOPMENT PIPELINE
9M 2016 REVENUES
More to come thanks to a €2.3 billion managed pipeline
Committed pipeline increased by 8% vs end-2015
> +12 new projects launched in 2016 for €276 million (€178 million Group Share)
215,000 m²offices
Meininger Hotel - Paris
Symbiosis - Offices - Milan
11 deliveries in 2016 for €244 million (€149 million Group Share)
> 36,500 m² offices and 800 hotel rooms
> 94% occupancy rate; 6.9% yield on cost
France offices69%
Italy offices21%
Hotels10%
+8% vs end-2015
Committed pipeline of €669 million(Group Share)
1,378 hotel rooms
FONCIÈRE DES RÉGIONS 9
INVESTMENT ACTIVITY
INVESTMENTS: NEW ACQUISITION IN GERMAN RESIDENTIAL IN Q3
9M 2016 REVENUES
Acquisition of 1,590 residential units
> €217 million (€140 million Group Share); €1,740/m² (€2,050/m² in Berlin)
> Small/mid-size assets; city-center locations in our historical cities
€476 million acquisition YTD (€321 million Group Share)Of which 72% in Berlin
Berlin 40%
Hamburg 18%
Düsseldorf23%
Cologne10%
Dresden & Leipzig 5%
Others 4%
Geographic breakdown of the
acquisitions(in value)
Reversionary potential+30%
GrossYield4.7%
Vacancy rate3.0%
FONCIÈRE DES RÉGIONS
INVESTMENTS: €1.4 BILLION SECURED YTD
10
INVESTMENT ACTIVITY
79% in Paris, Berlin & Milan
9M 2016 REVENUES
9-month 2016, €millionInvestments(Group Share)
1+2
Capex (Group Share)
1
Acquisitions(Group Share)
2
Gross yield on acquisitions
(Group Share)
Offices - France 286 128 159 7.7%
Offices - Italy 93 35 58 6.7%1
Increased stake in Beni Stabili 147 0 147 6,5%
German Residential 321 0 321 4.8%
Hotels in lease properties 102 32 70 6.1%
Hotels in operating properties 193 0 193 7.7%2
Increased stake in FDM 217 0 217 5.9%
Total 1,359 195 1,164 6.3%1
+€223 million Group Share vs end-June 2016
1Potential yield, 5.6% immediate yield for Italy and 6.2% for total; 2EBITDA Yield
Offices France: More development pipeline
Offices Italy: More Milan
German Residential: More Berlin
Hotels in Europe: More Germany
FONCIÈRE DES RÉGIONS
DISPOSAL PROGRAM: €454 MILLION OF NEW AGREEMENTS YTD
11
INVESTMENT ACTIVITY
Focus on strategic locations
Better quality and growth potential
9M 2016 REVENUES
9-month 2016, €mNew agreements
Group ShareMargin vs.Values 2015
Gross Yield
Effective disposals
Group Share
Gross Yield
France Offices 51 1.9% 7.9% 117 5.6%
Italy Offices 25 1.4% 4.0% 29 7.2%
German Residential 127 10.8% 7.1% 194 7.4%
Hotels 4 0.0% 6.4% 129 6.2%
Non-strategic1 247 17.8% 3.3% 316 5.1%
Total asset disposals 454 12.9% 4.9% 786 6.0%
1Including Healthcare; 2 North Rhine-Westphalia
Offices France: Less small regional offices
German Residential: Less NRW2
Hotels in Europe: Less AccorHotels in France
Non strategic: No more Healthcare
Less French Residential
12
Steel –Paris
3
Key takeaways
FONCIÈRE DES RÉGIONS 13
KEY TAKEAWAYS
INCREASED 2016 GUIDANCE
Strong operating results100,000 m² new lettings
Stable like-for-like
€1.4 billion investments focus on Paris, Berlin, MilanLetting successes
Rents: +3.8% increase at end-September
€140 million new acquisitions in German Residential in Q3
9M 2016 REVENUES
Increased 2016 guidance:
Around +2% growth in Recurring Net Income per share
€3.0 billion development pipeline
€669 million committed
Silex 1 & 2, Lyon
FONCIÈRE DES RÉGIONS 14
FINANCIAL AGENDA
AGENDA
Full-year 2016 results: 16 February 2017
9M 2016 REVENUES
15
Appendix
Golden Tulip Hotel – Marseille
FONCIÈRE DES RÉGIONS
(€million)
100% Group Share
Q3 2015 Q3 2016Change
(%)Q3 2015 Q3 2016
Change(%)
Change (%) LfL
% of total rent
Offices - France 194.7 206.9 +6.2% 180.1 188.0 +4.4% -0.5% 44%
Offices - Italy 163.3 149.0 -8.7% 79.2 75.8 -4.3% -0.2% 18%
German Residential 140.8 159.3 +13.2% 85.5 98.4 +15.0% +3.1% 23%
Hotels & Service 152.7 146.4 -4.1% 60.1 61.8 +2.9% -3.7% 14%
Other (French Residential) 17.0 11.9 n.a. 10.4 7.3 n.a. n.a. 2%
Total 668.5 673.5 +0.8% 415.2 431.2 +3.8% +0.0% 100%
9M 2016 REVENUES
16
APPENDIX
9M 2016 REVENUES
FONCIÈRE DES RÉGIONS
A €19.0 billion portfolio at end-September 2016 (€11.8 billion Group Share)1
A UNIQUE EUROPEAN PLAYER
17
APPENDIX
An integrated operator in the largest continental European markets
Italy Offices1
(18%)
German Residential1
(20%)
Hotels in Europe1
(14%)
France Offices1
(44%)
Paris
Berlin
Milan
1 Group Share post investments and disposals secured
9M 2016 REVENUES
FONCIÈRE DES RÉGIONS 18
COMMITTED PIPELINE: 24 PROJECTS FOR €669 MILLION GROUP SHAREAPPENDICES
* 100% usable area excl. car park; ** Group share incl. land and financial cost 9M 2016 REVENUES
Projects Location ProjectSurface*
(m²)Target rent
(€/m²/year)Pre-leased
(%)
Total Budget**
(M€)Target Yield Progress
Capex to be invested(Group Share)
Fra
nc
e O
ffic
es
Euromed Center – Offices Hermione (FdR share: 50%) Marseille Construction 10 400 m² 265 0% 14 > 7% 70% 4
Silex I Lyon Construction 10 600 m² 280 37% 47 >7% 60% 16
Euromed Center - Offices Floreal (FdR share: 50%) Marseille Construction 13 400 m² 265 0% 18 6.5% 55% 9
Thaïs Levallois - Greater Paris Construction 5 500 m² 480 0% 40 6.2% 50% 14
O'rigin Nancy Construction 6 300 m² 195 77% 20 6.2% 40% 11
EdoIssy Les Moulineaux -
Greater ParisRegeneration-
Extension10 800 m² 450 100% 83 6.0% 30% 33
Art&Co Paris Regeneration 13 500 m² 520 5% 131 5.0% 5% 34
Reims New Saint Charles Reims Construction 10 380 m² na 100% 17 >7% 16% 14
Total 2017 80 880 m² 425 38% 370 6.0% 30% 136
Riverside Toulouse Construction 11 000 m² 195 0% 32 7.0% 5% 26
Hélios Lille - Villeneuve d'Asq Construction 8 700 m² 160 0% 21 >7% 5% 20
Bordeaux Ilot Armagnac Bordeaux Construction 31 600 m² na 29% 36 6.3% 18% 30
Total 2018 51 300 m² 181 12% 89 6.7% 10% 76
Total - Offices France 132 180 m² 378 33% 459 6.1% 26% 212
Milan, via Colonna Milan Restructuration 3 464 m² 260 0% 8 5,1% 1% 2
Ita
ly O
ffic
es
Milan, via Cernaia Milan Restructuration 8 316 m² 420 0% 30 5,2% 4% 7
Turin, corso Ferrucci 112 Turin Restructuration 45 600 m² 130 15% 45 5,7% 10% 15
Total 2017 57 380 m² 248 8% 83 5,4% 7% 25
Milan, P.zza Monte Titano Milan Restructuration 6 000 m² 190 100% 11 5,0% 1% 4
Symbiosis A+B Milan Construction 19 000 m² 300 80% 45 6,8% 8% 26
Total 2018 25 000 m² 278 84% 56 6,4% 7% 30
Total Bureaux Italie 82 380 m² 260 39% 139 5,8% 7% 55
FONCIÈRE DES RÉGIONS 19
COMMITTED PIPELINE: 24 PROJECTS FOR €669 MILLION GROUP SHAREAPPENDICES
* 100% usable area excl. car park; ** Group share incl. land and financial cost
Total - Offices France 132 180 m² 378 33% 459 6,1% 26% 212
Total - Offices Italy 82 380 m² 260 39% 139 5,8% 7% 55
Total - Hotels & Service 1 378 rooms na 100% 70 6,2% 20% 44
Total 214 560 m² na 41% 669 6,1% 21% 311
9M 2016 REVENUES
Projects Location ProjectRooms*
(m²)Target rent
(€/m²/year)Pre-leased
(%)
Total Budget**
(M€)Target Yield Progress
Capex to be invested(Group Share)
Ho
tels
& S
erv
ice
B&B Lyon Lyon Construction 113 rooms na 100% 2 5.5% 27% 1
B&B Berlin Berlin Construction 135 rooms na 100% 6 7.0% 32% 1
Motel One Porte Dorée Paris Construction 255 rooms na 100% 9 6.2% 42% 6
Total 2017 503 rooms 100% 17 6.4% 37% 8
B&B Nanterre Greater Paris Construction 150 rooms na 100% 3 6.3% 10% 2
B&B Chatenay Malabry Greater Paris Construction 127 rooms na 100% 3 6.2% 10% 2
Meininger Munich Germany Conversion 173 rooms na 100% 15 6.0% 50% 7
Meininger Porte de Vincennes Paris Construction 249 rooms na 100% 24 6.2% 0% 16
Meininger Lyon Zimmermann Lyon Construction 176 rooms na 100% 9 6.3% 0% 9
Total 2018 875 rooms na 100% 53 6.1% 15% 36
Total - Hotels & Service 1 378 rooms na 100% 70 6.2% 20% 44
FONCIÈRE DES RÉGIONS 20
MANAGED PIPELINE: 20 PROJECTS FOR €2.3 BILLION GROUP SHAREAPPENDICES
* 100% usable area excl. car park9M 2016 REVENUES
Projects Location ProjectSurface*
(m²)Delivery
timeframe
Fra
nce O
ffic
es
Cap 18 Paris Construction 50 000 m² >2020
Rueil Vinci Rueil-Malmaison - Greater Paris Regeneration-Extension 43 000 m² >2020
Canopée Meudon - Greater Paris Construction 46 900 m² >2019
Omega Levallois-Perret - Greater Paris Regeneration-Extension 21 500 m² >2020
Citroen PSA - Arago Paris Restructuration 19 500 m² >2020
Anjou Paris Restructuration 11 000 m² >2020
Silex II Lyon Regeneration-Extension 30 700 m² 2019
Opale Meudon - Greater Paris Construction 30 000 m² >2018
Montpellier Majoria Montpellier Construction 58 200 m² 2018-2020
Avenue de la Marne Montrouge - Greater Paris Construction 18 000 m² 2020
Cœur d'Orly Bureaux (FdR share 25%) Orly - Greater Paris Construction 50 000 m² >2019
Orange Gobelins Paris Regeneration 4 100 m² >2020
Bordeaux Cité du Numérique Bordeaux Construction 18 600 m² 2018
Campus New Vélizy Extension (FdR share 50%) Vélizy - Greater Paris Construction 14 000 m² 2019
Cœur d'Orly Commerces (FdR share 25%) Orly - Greater Paris Construction 31 000 m² >2018
DS Campus Extension 2 (FdR share 50%) Vélizy - Greater Paris Construction 11 000 m² >2020
ERDF Angers Angers Construction 4 700 m² 2019
Total Offices – France 454 700 m²
Italy
Off
ices
Symbiosis (other blocks) Milan Regeneration 101 500 m² 2022
Via Schievano Milan Regeneration 27 200 m² 2019
Principe Amedeo Milan Construction 6 400 m² 2017
Total Offices - Italy 135 100 m²
Total 589 800 m²
FONCIÈRE DES RÉGIONS
ORGANISATION CHART AT END-SEPTEMBER 2016
21
APPENDIX
Foncière des Régions
France Offices Italy Offices(Beni Stabili)
German Residential
(Immeo)
Management contracts
(FDM Management)
Hotels & Service Sector
(Foncière des Murs)
52.2% 61.0% 49.9%
40.8%
Consolidated subsidiaries
Equity affiliates
French Residential
(FDL)
61.3%
9M 2016 REVENUES
FONCIÈRE DES RÉGIONS
Paris30, avenue Kléber75116 ParisTel.: +33 1 58 97 50 00
ContactPaul ArkwrightTel.: +33 1 58 97 51 85Mobile: +33 6 77 33 93 [email protected]
