Q1 2015:
Keep on delivering
FONCIÈRE DES RÉGIONS
> KEY EVENTS OF THE PERIOD
> OPERATING PERFORMANCE
> KEY TAKEWAYS
Q1 2015 2
CONTENTS
Key events of the period
Q1 2015 3
FONCIÈRE DES RÉGIONS
STRATEGIC POSITIONING
A €10.7 billion1 GS portfolio (€17.3 billion at 100%) on buoyant markets
1 focus and 2 diversifications
4
62%
18%
13%
7%
€10.7 bn GS
Q1 2015
Offices (France 43%; Italy: 19%) > Sound fundamentals; market depth > Attractive yield; value-creating pipeline
Residential Germany > Sound economy; buoyant market
> Organic growth and development potential
Hotels/Service sector > Leadership position; impressive track record
> Attractive market; partnership logic
Non-strategic
Recognised, responsive local platforms
KEY EVENTS OF THE PERIOD
Vélizy-Meudon, Paris Region Residential, Hamburg
1 At end-march 2015 post signed operations
FONCIÈRE DES RÉGIONS
MAJOR AGREEMENT WITH TELECOM ITALIA
Q1 2015 5
An agreement leading to 3 main improvements on asset and cash-flow quality
€1.7 bn of assets
(€0.8 bn GS)
2nd largest tenant (10% of the GS rental income)
6.7-year average firm lease
maturity
Reap the benefits of the partnership strategy
Milan
8.4% of the
portfolio GS
€117 m of rental income
(€57 m GS)
1 Improved cash-flow visibility
2 Improved asset quality
3 Reduction of
Telecom Italia exposure
> +9 years of average firm lease maturity to 15 years
> 6.9% discount on the rents on average
> €38 million capex program on city center assets
(alongside with Telecom Italia)
> €126 million disposal of secondary assets
to Telecom Italia, at last appraisal values
Naples
KEY EVENTS OF THE PERIOD
Portfolio rented to Telecom Italia
FONCIÈRE DES RÉGIONS
FRANCE OFFICES: PURSUANCE OF THE PIPELINE
Q1 2015 6
Delivery of Astrolabe in Euromed center, Marseille
> 14,000m²; €38 million (€19 million GS); 35% let, at target rents (€250/m²)
Inauguration of Steel, Paris 16th district on May 6th
> Refurbishment of 3,700m²; €36 million of investments; €600/m² target rents
Foundation stone of Silex 1: construction of 10,600m²
> Key location: at the heart of La Part-Dieu
Largest business district in Lyon of 1 million of m² of offices; vacancy rate <4%
> Delivery in 2016: €47 million; €280/m² of target rents
Committed pipeline
€518 million
62% Pre-let
71% for 2015
deliveries
Yield on cost > 7%
Value creation > 10%
€309m delivered in
2015
Silex 1, Lyon
Silex 1, Lyon
KEY EVENTS OF THE PERIOD
FONCIÈRE DES RÉGIONS
Already €457 million of acquisitions signed (€266 million GS)
> High-quality portfolios; prime locations; 25-30% reversionary potential; privatization potential
> Pursuit of the strengthening in Berlin (€182 million) and in Dresden and Leipzig (€37 million)
1,486 units; €1,710/m² on average; 5.5% yield
> First investments in Hamburg: €239 million (€138 million GS)
High potential market driven by positive economic and demographic fundamentals
2,088 units; €1,860/m²; 5.5% average yield
DELIVERING IN GERMAN RESIDENTIAL
Q1 2015 7
€3.2 billion (€1.9 billion GS) of assets
KEY EVENTS OF THE PERIOD
Rating ImmoScout24
Investments in the best locations of high rental growth potential cities
Berlin Hamburg
> Localizations (blue spots) of the €182 million and €239 million investments in Berlin and Hamburg
FONCIÈRE DES RÉGIONS
HOTELS: STRENGTHENING THE LEADERSHIP POSITIONING
Q1 2015 8
KEY EVENTS OF THE PERIOD
Acceleration of acquisitions in Europe: €277 million including €210 million in Germany
> 22 B&B hotels in the largest cities in Germany: €128 million (€51 million GS), 18-year leases, 6.4% yield
> 2 Motel One hotels in Berlin-Mitte and Frankfurt-Airport: €34 million (€15 million GS), 20-year leases
> First investments in management contracts: €104 million (€18 million GS)
€48 million in Germany with Louvre Hotels Group
€56 million development with Accor at Paris-Charles-de-Gaulle Airport
Major reinforcement in Hotels
> Acquisition of 14.6% of Foncière des Murs (FDM): Foncière des Régions controls (as limited partner) and holds 43% of FDM
> This transaction represents an investment of €432 million of assets
> Positive impacts:
Hotels/Service Sector represents 13% of the portfolio vs 9% at end-2014
High and secure profitability (100% occupancy rate; 94% operating margin; firm lease maturity of 6.7 years)
B&B Hotel, Paris Motel One, Berlin Accor, Paris Region Motel One, Berlin
FONCIÈRE DES RÉGIONS
STABLE AND STRONG SHAREHOLDER STRUCTURE
Q1 2015 9
Success of the capital increase
> €255 million to finance ongoing investments
> Participated in by all the large shareholders of Foncière des Régions
> 3,917,722 new shares (i.e. 6.2% of the share capital)
Best-in-class governance, strengthened by the General Meeting
> Nomination of Delphine Benchetrit as new independent Board Member
> Upholding the rule 1 share = 1 vote
> Adoption of all the resolutions with an average approval rate of 97%
> 57% of independent members vs 50% in 2014; 36% of women members vs 29%;
29% of international members
7% 28%
8%
13%
44%
ACM
Groupe Crédit Agricole
Public
Covea
Delfin
Shareholder structure post capital
increase
Supporting the Group’s development and strategy
KEY EVENTS OF THE PERIOD
Delphine Benchetrit
Operating performance
Q1 2015 10
FONCIÈRE DES RÉGIONS
Q1 2015 REVENUES: +1.1% AT €132.9 MILLION
Q1 2015 11
Rental income
(€m) Change
Change on like-for-like
basis
Occupancy rate
Residual firm terms
of leases post Telecom Italia
agreement
Offices - France 57.0 -7.4% +0.3% 96.3% 5.1 years
Offices - Italy 27.2 -7.2% -2.9% 95.4 %1 10.2 years
Offices 84.2 -7.3% -0.8% 96.0% 6.6 years
Residential Germany 26.8 +10.1% +1.3% 97.7% N/A
Hotels/Service Sector 18.1 +55.5% +1.1% 100 % 6.7 years
Other (French Resi.) 3.7 N/A N/A N/A N/A
Total 132.9 +1.1% -0.1% 96.9% 6.6 years
Positive indexation
+4.1 years of maturity
-0.4% excl. Turin 2014 vacancy
+2.9% in Berlin, Dresden and Leipzig
+1 year with Telecom Italia
Indexation: +0.7%
Occupancy rate: -0.7%
Renewals: -0.1%
1 Core portfolio
+1.5% in Hotels including +2.2% for Accor portfolio
Our diversifications outperform on rental growth
OPERATING PERFORMANCE
> Increase in the firm lease maturity: +1 year to 6.6 years with Telecom Italia agreement
> Italy: negative impacts of Turin 2014 vacancy (disposal to the municipality under discussions)
Key takeaways
Q1 2015 12
FONCIÈRE DES RÉGIONS
KEY TAKEAWAYS FROM Q1 2015
Q1 2015 13
Strengthening of our cash-flow visibility
Telecom Italia agreement: +1 year at 6.6 years firm lease maturity for Foncière des Régions
Strengthening of our strategic positioning
€1.5 billion (€1.0 billion GS) of investments already signed including €1.2 billion of acquisitions
Dynamic investment activity in Hotels and German Residential
Resistance in our operating indicators
Stable like-for-like rents; high occupancy rate
A good start to the year
Motel One, Berlin Motel One, Berlin Via de Pretis, Naples Residential, Hamburg Silex 1, Lyon
KEY TAKEAWAYS
FONCIÈRE DES RÉGIONS
AGENDA
Q1 2015 14
H1 2015 results: 23 July 2015
FONCIÈRE DES RÉGIONS 15
(€ million)
100% Group Share
Q1 2014 Q1 2015 Change
(%) Q1 2014 Q1 2015
Change (%)
Change (%) LFL
% of rent
Offices France 64.7 60.3 -6.9% 61.6 57.0 -7.4% 0.3% 43%
Offices Italy 57.6 56.3 -2.2% 29.3 27.2 -7.2% -2.9% 20%
Total Offices 122.3 116.6 -4.7% 90.9 84.3 -7.3% -0.8% 63%
Hotels and Service sector 45.4 46.5 2.3% 11.7 18.1 55.5% 1.1% 14%
Residential Germany 41.1 44.5 8.3% 24.4 26.8 10.1% 1.3% 20%
Total Strategic activities 208.8 207.6 -0.6% 127.0 129.2 1.8% -0.1% 97%
Other 7.7 6.1 -21.0% 4.6 3.7 -19.0% na 3%
Total rents 216.5 213.7 -1.3% 131.6 132.9 1.1% -0.1% 100%
Total rent does not take into account rental income from Logistics (€4.9 million), reclassified in 2014 as Discontinued Operations
Q1 2015 TURNOVER
Q1 2015
FONCIÈRE DES RÉGIONS
Paris 30, avenue Kléber 75116 Paris Tel.: +33 1 58 97 50 00
Contact Paul Arkwright Tel.: +33 1 58 97 51 85 Mobile: +33 6 77 33 93 58 [email protected]
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