H1 2016 Results:
A rewarding strategy
21 July 2016
CONTENTS
>1. STRATEGIC POSITIONING
>2. REAL ESTATE ACTIVITY
>3. FINANCIAL RESULTS
>4. OUTLOOK
>APPENDIX
FONCIÈRE DES RÉGIONS
2
1
Strategic positioning
EDO, Greater Paris
3
STRATEGY
A UNIQUE EUROPEAN PLAYER
A unique business model
We are diversified
and
we are specialists
We offer
resilient cash-flows
and also
strong value creation
drivers
A €18.3 billion portfolio at end-June 2016 managed by 700
people in 3 countries (€11.7 billion Group Share)
France Offices1
(44%)
Berlin
German Residential1
(20%)
Paris
Hotel in Europe1
(14%)
Milan
Italy Offices1
(18%)
An integrated operator in the largest continental European markets
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
1 Group Share
4
STRATEGY
H1 2016 ACHIEVEMENTS: STRATEGIC MILESTONES
Letting successes in our pipeline
Value creation partnerships
Strengthening in our strategic cities
34,000 m² pre-let
in France and Italy
New agreements with Orange,
EDF, Cisco & Thales
€1.8 bn of investments secured;
€1.1 bn Group Share
80% in Paris, Berlin & Milan
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
5
STRATEGY
H1 2016 RESULTS: SUCCESS OF THE STRATEGY
Growth in financial results
Good operating performances
>
Rents
Environment
Operating
successes
Increased
occupancy rate
96.7%
+0.4 pt
•
No inflation
•
Offices: slowly improving markets
•
German Residential: strong growth
•
Hotels: impacts of the terrorist attacks
>
Values: yield compressions
>
Asset management driving the performance
>
Value creation developments
>
Increased exposure in growing markets
Record lease
maturity1
7.5
years
Recurring
Net Income
€2.64/share
+1.0%
€176.6 m
+4.2%
Stable rents
Growth in value
like-for-like
like-for-like
0.0%
+3.2%
EPRA NAV
€82.4/share
+8.7%2
€5,652 m
+11.4%2
+0.2 year
FONCIÈRE DES RÉGIONS
1
H1 2016 RESULTS
Firm lease expirations as % of annualised rental income; commercial portfolio (76% of total rents GS); 2 vs June-2015
6
2
Real Estate activity
> France Offices
> Italy Offices
> German Residential
> Hotel Real Estate
Campus Eiffage – Greater Paris
7
France Offices
Steel, Paris
8
FRANCE OFFICES
Portfolio
H1 2016 ACHIEVEMENTS: SOUND OPERATING INDICATORS
€6.0 billion (100%)
€5.2 billion (GS)
High occupancy rate
95.8%
(stable)
Resistance in rents
Long-term leases
5.9-year
Firm lease maturity
(+0.5 year)
Operating
performance
-0.3%
like-for-like
Strong growth in value
+4.4%
like-for-like
+20% like-for-like for the
committed pipeline
FONCIÈRE DES RÉGIONS
Thaïs, Levallois-Perret - Greater Paris
H1 2016 RESULTS
9
FRANCE OFFICES
Portfolio
H1 2016 ACHIEVEMENTS: ACTIVE LETTING ACTIVITY
€6.0 billion (100%)
€5.2 billion (GS)
Secure the rents
>
Lease renewals: €61 million (€54 million Group Share); 20% of France Offices rents
>
430,812 m²
>
+0.9% vs passing rents
Strengthen the occupancy
>
€3.6 million Group Share of new lettings vs €1.1 million of departures
>
8.1 years average firm lease maturity for the new lettings
Success of the development pipeline
>
15,000 m² pre-let; €6.0 million of rents (€5.9 million Group Share)
>
8.6 years average firm lease maturity
Atlantis - Greater Paris (11,300 m²)
Lease extension with Cisco
+5-year to 6-year firm
Optimize value creation through anticipation and monitoring
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
10
FRANCE OFFICES
Portfolio
H1 2016 ACHIEVEMENTS: 2 NEW AGREEMENTS WITH OUR PARTNERS
Lease renegotiations (72%)
+4.1 years in lease maturities;
Flat rents; €16 million of capex
14
17
assets
€17 million of rents
6% of France Offices
Turnkey projects (28%)
Avignon, Nancy, Reims
€46 million investment
7% yield on cost; 11-year leases
3
Lease extensions (76%)
+5 years to 9 years; Incentives:
0.5 month/year
55
€6.0 billion (100%)
€5.2 billion (GS)
Secure the rents
5.2-year maturity for EDF portfolio (+3.5 years)
Create value
Improve liquidity for non core assets
Secure the rents
5.9-year maturity for Orange portfolio (+0.8 year)
69
assets
22% of Orange rents
€20 million of rents
7% of France Offices
6
Flexibility (13%)
-1 year to 2.5 years
Create value
Reduce non core assets
8
Buybacks by Orange (11%)
+5.6% in like-for-like value in H1 2016 on average
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
11
FRANCE OFFICES
Portfolio
H1 2016: INVESTMENT IN STRATEGIC LOCATIONS AND VALUE CREATION
€6.0 billion (100%)
€5.2 billion (GS)
A €129 million acquisition in Rueil-Malmaison, a dynamic office districts of Greater Paris
3 buildings
38,000 m²
>
Nearby public
transports
100% let
to Vinci
>
€10 million rents
>
(7.8% yield)
Value
creation
>
Will reload the development
pipeline in 4 years
Development pipeline: major milestones
>
13 deliveries in 2016 and 2017 for 116,860 m² and €583 million (€474 million Group Share); 50% prelet (92% for 2016)
Deliveries
Euromed - Marseille
Letting success
EDO - Greater Paris
Letting success
Silex1 - Lyon
Calypso & Hotel Golden Tulip
9,600 m² of offices; 30% let
4* hotel of 210 rooms let to Louvre Hotel Group
100% prelet to a large corporate
Issy-les-Moulineaux; 10,760 m²
Delivery in Q2 2017
26% prelet to BNP Paribas
Lyon-CBD; 10,600 m²
Delivery in Q1 2017
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
12
Italy Offices
Office – Milan
13
ITALY OFFICES
Portfolio
A LEADING PROPERTY PLAYER IN ITALY
€4.0 billion (100%)
€2.1 billion (GS)
A €4.0 billion portfolio (€2.1 billion Group Share)
Strategic
guidelines
>
Through Beni Stabili, subsidiary at 52.2% of Foncière des Régions vs 48.5% at end-2015
>
Acquisition of 85.2 million shares > €52 million investment, 27% discount on 2015 EPRA NAV
New General Manager: Alexei Dal Pastro
Accelerate Real Estate
>
Ex-Head of Fund & Asset Management and member of the management committee of Prelios SGR (c. €4 bn asset
strategy
under management)
Increase profitability
Operating performance: first results of the new strategy
Strengthen the team
Occupancy
rate
95.1%
vs.
92.8%
2015
FONCIÈRE DES RÉGIONS
Firm lease
maturity
9.5-year
vs.
9.7-year
2015
Rents
Offices ex-TI
+2.6%
Like-for-like
Total
portfolio:
-0.8%
Value
Offices ex-TI
+3.1%
Like-for-like
Total
portfolio
+1.5%
H1 2016 RESULTS
14
ITALY OFFICES
Portfolio
H1 2016 RENTAL ACTIVITY: A SITUATION TURNAROUND
€4.0 billion (100%)
€2.1 billion (GS)
23 new contracts signed for 19,348 m²
>
€5.1 million of new rents (€2.7 million Group Share)
14 re-lettings for 17,196 m²
>
€5.9 million of rents (€3.1 million Group Share)
Improved occupancy rate
93.5%
87.4%
0.7pt1
+1.6pt
1.3pt1
+3.2pts
95.1%
92.8%
90.6%
86.1%
Total portfolio
End-2015
June-2016
Via Messina, Milan
6,530 m² let to Widiba
Portfolio ex-TI
End-2015
June-2016
FONCIÈRE DES RÉGIONS
1 Via
H1 2016 RESULTS
Colonna & Monte Titano are as of June 2016 in development
15
ITALY OFFICES
Portfolio
H1 2016 ACHIEVEMENTS: MEANINGFUL PROGRESSES
2-year vacant asset plan: strong successes
€4.0 billion (100%)
€2.1 billion (GS)
€4.6 million
>
€72 million1 (€37 million Group Share) capex
>
€19 million expected extra cash-flows (€10 million Group Share)
of rents
already secured
Development pipeline: first pre-letting in Symbiosis
>
A Milestone for a new innovative office district in Milan
€86 m
Investment
>
6.8% yield on cost
New
Fastweb
headquarter
16,000 m²
Pre-let
10.5-year
firm
>
+ option for the remaining 3,000 m²
Symbiosis, Milan
19,000 m² of offices to be delivered in October 2018
FONCIÈRE DES RÉGIONS
1 €60
H1 2016 RESULTS
million initial capex plan announced in 2015 with, in addition, Cernaia project, in Milan
16
ITALY OFFICES
Portfolio
H2 2016: €85 MILLION OF ACQUISITIONS SECURED IN MILAN
€4.0 billion (100%)
€2.1 billion (GS)
> Acquisition of 2 towers for 11,800 m²
TOWER A
NEW ACQUISITION
> FdR now owns the whole 25,000 m² complex
Via Messina
towers A & C
> Good location in front of subway station Cernisio
> 1 B&B hotel (19-year lease); 6,539 m² of offices (61% let)
TOWER B
> €26.8 million investment (€14 million Group Share)
> 6.8% potential yield
TOWER C
NEW ACQUISITION
TOWER D
Via Messina
Via
Scarsellini
>
Good office location, 4’ walk to the subway station Affori Centro
>
21,637 m² of offices built in 2010
>
82% let for 6.5 years, mainly to Aviva + 2-year guarantee on vacant space
>
€58 million investment (€29 million Group Share)
>
6.4% yield
Via Scarsellini
Via Messina
Porta
Nuova
Target 80% of portfolio in Milan in 2020
vs 51% in June-2016
CBD
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
17
German
Residential
Residential – Berlin
18
GERMAN RESIDENTIAL
Portfolio
H1 2016 ACHIEVEMENTS: QUALITATIVE ASSET ROTATION
€3.8 billion (100%)
€2.3 billion (GS)
A key property player in its market with a niche investment strategy
>
€3.8 billion portfolio (€2.3 billion Group Share)
>
Through Immeo, private subsidiary at 61.0% of Foncière des Régions
>
Focus investments in prime and city-center properties, mainly in Berlin
Continuing to strengthen the positioning in Berlin
Hamburg
€260 million in acquisitions
7%1
Berlin
>
€182 million Group Share
47%1 vs 40% at end-2015
North Rhine-Westphalia (NRW)
vs 46% at end-2015
39%1
8%1
Dresden & Leipzig
€190 million in disposals
>
€116 million Group Share
FONCIÈRE DES RÉGIONS
1 Geographic
H1 2016 RESULTS
breakdown at end-June 2016
19
GERMAN RESIDENTIAL
Portfolio
SUCCESSFUL INVESTMENT ACTIVITY
€2.3 billion (GS)
Focus on the best districts
2 portfolios mainly in Berlin city center
>
€3.8 billion (100%)
€165 million and 945 fully renovated housing units (86% of the
Geographic breakdown by district of H1 2016 investments in Berlin
(source: Engel & Völkers Residential)
portfolio) in Mitte, Friedrichshain, Prenzlauerberg and Postdam
>
€18 million and 71 housing units (73% of the portfolio) mainly in
Mitte and Steglitz-Zehlendorf
29%
A real estate complex in Mitte district (Fischerinsel 12)
>
€76.4 million
>
117 housing units
>
10,700 m² of offices and retail
>
238-room 4-star Novotel hotel
41%
Investment
Yield
Rent
Reversionary potential
€260
m1
4.9%
+40%
FONCIÈRE DES RÉGIONS
10%
2%
15%
2%
Prime location
Average location
Good location
Basic location
Green area
H1 2016 RESULTS
million Group Share
1 €182
20
GERMAN RESIDENTIAL
Portfolio
H1 2016 ACHIEVEMENTS: STRONG OPERATING PERFORMANCES
Rents
like-for-like
+2.9%
+5.3%
FONCIÈRE DES RÉGIONS
€2.3 billion (GS)
Values
like-for-like
+3.1%
Superior growth in strategic locations
Mainly driven by re-lettings
Berlin
€3.8 billion (100%)
Dresden
& Leipzig
Hamburg
NRW
Berlin
+3.1%
+2.0%
+2.0%
+4.0%
Dresden
& Leipzig
Hamburg
NRW
+4.0%
+3.6%
+2.1%
H1 2016 RESULTS
21
GERMAN RESIDENTIAL
Portfolio
SIGNIFICANT GROWTH POTENTIAL REMAINING
€3.8 billion (100%)
€2.3 billion (GS)
Sound economic and demographic fundamentals
>
Support for further market rental growth
Large rental growth potential in our portfolio
Berlin
+30-35%
FONCIÈRE DES RÉGIONS
Dresden &
Leipzig
+20-25%
Hamburg
+25-30%
NRW
+10%
H1 2016 RESULTS
22
Hotel Real
Estate in Europe
AccorHotels – Greater Paris
23
HOTEL REAL ESTATE
Portfolio
LEADER IN EUROPEAN HOTEL REAL ESTATE
€3.7 billion (100%)
€1.6 billion (GS)
A €3.7 billion portfolio (€1.6 billion Group Share)
>
Through FDM, subsidiary at 49.6% of Foncière des Régions vs 43.1% at end-2015
>
Acquisition of 6.5% of FDM shares in exchange for FdR new shares (at 2015 EPRA NAV parity)
Operating performances
Rents
like-for-like
-2.1%
>
Effects of the terrorist attacks in Paris and Brussels
>
Variable rents (AccorHotels): -4.8%
>
•
Paris: -14%
•
Regions:+4%
Values
like-for-like
+2.8%
Hotel investment
properties
+1.0%
Hotel operating
properties
Healthcare
Margin on selling price
+7.0%
+25%
Other rents (indexed): +0.2%
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
24
HOTEL REAL ESTATE
Portfolio
TWO INVESTMENT MODES = TWO VEHICLES
Investment
modes
>
Investment properties
€3.7 billion (100%)
€1.6 billion (GS)
Revenue
>
Rents
1st
shareholder
Portfolio
Foncière des Murs
>
€3.4 billion at mid-2016
>
(€1.5 billion Group Share FdR)
Foncière des Régions
(49.6%, limited partner)
(Real Estate only)
>
>
Operating properties
(Real Estate & Business)
>
EBITDA
FDM Management
€285 million at mid-2016
(€58 million Group Share FdR)
>
€1.1 billion post acquisitions
>
Foncière des Murs
(40.8%)
(€210 million Group Share FdR)
Natural ally of operators
25 brands; 6 European countries
Park inn, Berlin
FONCIÈRE DES RÉGIONS
Couvent des Minimes, Lille
H1 2016 RESULTS
25
HOTEL REAL ESTATE
Portfolio
H1 2016 ACHIEVEMENTS: €1.1 BILLION1 ACQUISITIONS SECURED
€3.7 billion (100%)
€1.6 billion (GS)
Hotel investment properties: €144 million (€69 million Group Share) acquisitions in Spain and Germany
Hotel operating properties: growth of business with 2 portfolio acquisitions for €936 million (€190 million Group Share)
Acquisition of exceptional hotels in France
Acquisition of an iconic portfolio in Germany
€125 million (€25 Group Share); April 2016
9 hotels (3 to 5-star)
Lille (63%), Rouen (18%), Le Touquet and Bruges
€811 million (€164 Group Share); August 2016
9 hotels (4 to 5-star) in Berlin (60%), Dresden & Leipzig
18,000 m² of retail
70,000 m² land bank in Alexanderplatz in Berlin
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
million Group Share
1 €259
26
HOTEL REAL ESTATE
Portfolio
PORTFOLIO: BETTER QUALITY & HIGHER GROWTH PROSPECT
€3.7 billion (100%)
€1.6 billion (GS)
2016
2014
post acquisitions &
disposals signed
48%
39%
17%
38%
3%
23%
More hotel operators
% of AccorHotels
More European cities
% in Europe ex-France
More Germany
% in Germany
Rely on dynamic asset rotation
to comfort our European leadership
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
27
3
Financial results
Euromed Center, Marseille
28
FINANCIAL RESULTS
INCREASE IN THE COMMITTED PIPELINE
Committed
pipeline
+10%
Hotel: €67 million
3 deliveries (€8 million)
4 new projects (€30 million)
Italy Offices: €139 million
3 new projects (€50 million)
in Milan
France Offices: €470 million
4 deliveries (€66 million)
1 new project (€21 million)
€676 million
Group Share
Helios, Lille-Villeneuve d’Ascq
8,700 m²; Delivery in 2018
€455 million Group Share deliveries in 2017
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
29
FINANCIAL RESULTS
A €2.3 BILLION MANAGED PIPELINE FOR FUTURE VALUE CREATION
23 projects for €2.3 billion Group Share vs 11 projects and €900 million at end-2015
Managed
pipeline
+€1.4 billion
> Italy Offices: +€50 million in Milan
> France Offices: +€1.3 billion
In depth analysis of the portfolio (46% of construction; 24% of regeneration)
Last 12 months acquisitions (30%)
Assets in portfolio
Project sourcing
Create supply
Letting strategies
Asset
regeneration
Anjou, Paris
Vers Métro
Porte de la
Chapelle
Acquisitions for development
Land bank
Value-added
acquisition
Cap 18, Paris
PSA, Paris
Speculative
Land acquisition
Vers Gare Rosa
Parks
Mur végétal
Linéaires commerciaux
Parc des rails – Agriculture
urbaine à grande échelle
Parvis des restaurants
Parvis des artisanats
innovants
Pôle économique
Silex2, Lyon
Vers Métro
Marx Dormoy
Majoria, Montpellier
Rueil, Greater Paris
Montrouge, Greater Paris
Multi-tenant /
Subject to partial
pre-let
Opale, Greater Paris
New Velizy extension,
Greater Paris
Turnkey projects
Respond to a demand
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
30
FINANCIAL RESULTS
H1 2016 INVESTMENTS: €1.8 BILLION SECURED
H1 2016, €m
Investments
including duties
Investments
Capex
Acquisitions
(Group Share)
Gross yield on
acquisitions
(100%)
1+2
(Group Share)
1
(Group Share)
2
Offices - France
264
247
107
140
7.8%
Offices - Italy
149
77
33
44
6.5%
0
147
0
147
5.7%
German Residential
260
182
0
182
4.9%
Hotels/Service Sector
1,113
275
16
259
6.1%
0
208
0
208
5.9%
1,786
1,136
157
980
6.0%
Increase stake in Beni Stabili
Increase stake in FDM
Total
(Group Share)
Strengthening positioning in Paris, Berlin and Milan
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
31
FINANCIAL RESULTS
H1 2016 DISPOSALS: QUALITY IMPROVEMENT
H1 2016, €m
New
New
Margin vs.
Effective
Gross
agreements agreements
Values
disposals
Yield
100%
Group Share
2015
Group Share
Gross
Yield
France Offices
45
45
1.5%
8.0%
82
7.9%
Italy Offices
48
25
1.4%
4.0%
29
7.2%
German Residential
190
116
9.1%
7.2%
118
7.2%
Hotels/Service Sector
306
152
24%
5.0%
127
6.2%
Non-strategic
99
61
6%
1.2%
146
6.1%
689
399
13%
5.3%
502
6.7%
Total asset disposals
Value creation asset rotation
FONCIÈRE DES RÉGIONS
Exit from healthcare
€301 million; 25% margin; 4.6% yield
H1 2016 RESULTS
32
FINANCIAL RESULTS
INCREASE IN VALUE AT LIKE-FOR-LIKE SCOPE: +3.2%
Values
Total share
Values
Group share
Change (%)
LFL
6 months
Yield
2015
Group share
Yield
H1 2016
Group share
France Offices
Italy Offices
France Offices
6,047
5,175
+4.4%
6.0%
5.8%
Italy Offices
3,963
2,070
+1.5%
5.7%
5.6%
Committed pipeline:
+20%
like-for-like
Milan:
+3%
German Residential
3,776
2,334
+3.1%
6.0%
5.7%
Hotels/Service Sector
3,686
1,591
+2.8%
5.9%
5.7%
788
504
n.a.
n.a.
n.a.
18,260
11,673
+3.2%
5.8%
5.6%
H1 2016, €m
Others
Total
FONCIÈRE DES RÉGIONS
German
Residential
Berlin: +4.0%
Dresden & Leipzig:
+4.0%
Hamburg: +3.6%
Hotels/
Service Sector
Operating
properties:
+7%
H1 2016 RESULTS
33
FINANCIAL RESULTS
A BETTER DEBT STRUCTURE, ILLUSTRATION OF THE PORTFOLIO IMPROVEMENT
Debt maturities under control
Average maturity 5.3 years
(in €billion)
A dynamic financing activity
> €1.7 billion of new financings (1.4 billion Group Share)
1.8
1.4
> 9-year average maturity
0.7
1st Green Bond issue: reward of an ambitious ISR strategy
0.7
0.6
0.4
0.4
2022
2023
0.1
2016
> €500 million Green Bond; 10-year
0.8
2017
2018
2019
2020
2021
> 1.875% coupon (margin of 137 bps above the swap rate)
2024
and
beyond
> More than 5 times oversubscribed
Strong diversification in financing
Better
cost of debt
2.39%
Vs 2.8% end-2015
Higher ICR
Longer
maturity
LTV
3.4
5.3
years
46.4%
Vs 3.0 end-2015
+0.3 year
Target < 45%
6% Investor mortgages
38%
57%
unsecured
debt
42%
Bonds
Bank mortgage loans
15%
Corporate credits
Group share data
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
34
FINANCIAL RESULTS
EPRA NAV PER SHARE INCREASED BY 8.7% IN ONE YEAR
EPRA NAV supported by recurring net income and increase in values
> EPRA NAV: €5,652 million (+11.4% vs June 2015) and €82.4 per share (+8.7%)
> EPRA NNNAV: €4,849 million (+9.3%) and €70.7 per share (+6.6%)
€5,652 m
€82.4/share
€5,076 m
€75.8/share
€5,318 m
-€35 million
+€25 million
Hedge
Profit on
restructuring
acquisition of
and
Beni Stabili
Bond repurchase
€79.4/share
+€177 million
RNI
-€287 million
Dividend
EPRA NAV
June 2015
FONCIÈRE DES RÉGIONS
EPRA NAV
End 2015
+€113 million
Public
Exchange
Offer on FDM
+€2 million
Other
+€339 million
Property
values increase
Number of shares used to calculate NAV/share:
68,612,791 for June 2016 vs. 66,947,020 for end 2015
EPRA NAV
June 2016
H1 2016 RESULTS
35
FINANCIAL RESULTS
RENTAL INCOME: +5.9% INCREASE
Occupancy
rate
Residual
firm lease
terms
Rental
income 1
(€m)
Change
12 months
Change at likefor-like scope
Change at like-for-like scope
France Offices
95.8%
5.9-year
125.7
+8.0%
-0.3%
No indexation environment
Italy Offices
95.1%
9.5-year
49.6
-7.2%
-0.8%
Offices ex-TI: +2.6%
German Residential
98.1%
n.a.
65.3
+18.0%
+2.9%
+5.3% in Berlin; +3.1% in
Dresden & Leipzig
Hotels/ Service Sector
100%
10.6-year
41.5
+6.8%
-2.1%
Terrorist attack impacts
Other
n.a.
n.a.
5.0
-30.1%
n.a.
Total
96.7%
7.5-year
287.1
+5.9%
0.0%
1 Excluding
Logistics (€2.8 million), classified as discontinued operations
Indexation: 0%
Occupancy rate: 0.2%
Renewals: -0.3%
Group share data
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
36
FINANCIAL RESULTS
INCREASE IN RECURRING NET INCOME: +4.2%
€m, Group Share
H1 2015
H1 2016
%
Rental income
271.2
287.1
+5.9%
o/w net rental income
249.8
264.5
+5.9%
Net operating costs
-28.9
-32.3
+11.8%
13.1
7.0
-46.6%
234.0
239.3
+2.2%
-78.2
-66.0
+15.6%
Lower cost of debt
Recurring net income of MEE companies
6.4
5.0
-21.9%
Income from non consolidated affiliates
0.2
0.0
n.a.
Change of scope in Dassault Systèmes
Campus
162.3
178.4
+9.9%
-0.4
-1.6
n.a.
7.7
-0.1
n.a.
169.6
176.6
+4.2%
Fair value adjustment on real estate assets
158.1
307.7
Changes in the fair value of financial instruments
-35.4
-18.5
0.0
0.8
-13.7
-52.8
Non-recurrent tax
-1.1
-1.5
Profit/loss on discontinued operations
-2.7
-1.3
274.8
411.0
Income from other activities
Current operating income
Net cost of financial debt
Pre-tax net income
Recurrent tax
Recurring net income of discontinued operations
Recurring Net Income
Margin on disposals
Other
Net income
FONCIÈRE DES RÉGIONS
Growth in the portfolio
Less property development fees
Exit from Logistics
H1 2016 RESULTS
37
FINANCIAL RESULTS
RECURRING NET INCOME PER SHARE:+1.0%
Group Share
H1 2015
H1 2016
Change vs.
H1 2015
RNI (in €m)
169.6
176.6
+4.2%
RNI/share (€)
2.62
2.64
1.0%
64,771,181
66,793,295
Average number of fully diluted shares
Positive impact of the deliveries in Offices
Impact of quality improvement
Strengthening in German Residential & Hotels
Lower property development fees
Lower average cost of debt
Group share data
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
38
4
Outlook
Riverside – Toulouse
39
OUTLOOK
CONTINUE TO IMPROVE QUALITY AND GROWTH PROSPECTS
H2 2016
perspectives
H1 2016 key
takeaways
€1.8 billion investments secured
Dynamic asset rotation to pursue portfolio quality upgrade
Letting successes
New lettings in the pipeline
Stable like-for-like rents
Better like-for-like trend in rents
> Improving structural like-for-like trends
> Some temporary negative impacts
Confirmed guidance: stable 2016 Recurring Net Income
Boost value creation through
active asset management
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
40
AGENDA
FINANCIAL AGENDA
Q3 2016: 3 November 2016
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
41
APPENDICES
Steel –Paris
42
APPENDICES
A STRATEGY STRENGTHENED BY THE SOUNDNESS OF INDICATORS
Record firm term of leases
Historically high occupancy rates
95.4% 94.8% 95.8% 95.5% 96.0% 97.1% 96.3%
2009
2010 2011
2012 2013
96.7%
5.8
2014 2015 H1 2016
2009
6.1
6.0
2010 2011
5.5
5.8
2012 2013
7.5
7.3
5.8
2014
2015 H1 2016
Firm lease expirations as % of annualised rental income
Commercial portfolio (76% of total rents GS)
>
Ability to keep the tenant in place
>
Occupancy rate track record in the development pipeline
>
Anticipate disposals
+3.3%
>
Lease maturity in Hotels: 10.6-year
Growth in value
Change in LFL vs. N-1
Change in LFL vs. N-1
+2.2% +2.1%
2010
Partnership strategy
Rent: at like-for-like scope
+0.6%
2009
>
2011
2012
+1.2%
2013
+0.2%
2014
+5.3%
0.0%
-3.6%
-0.1%
FONCIÈRE DES RÉGIONS
+1.3%
-0.3%
+0.5%
+3.2%
+2.1%
2015 H1 2016
2009
Group share data
+4.4%
>
Stable occupancy rate
>
Low inflation environment
>
Lease renegotiations close to passing rents
2010 2011 2012 2013
2014
2015 H1 2016
>
Dynamic investment market
>
Asset management and development pipeline value creation
H1 2016 RESULTS
43
APPENDICES
COMMITTED PIPELINE: 25 PROJECTS FOR €676 MILLION GROUP SHARE
Ty p e
Lo c a tio n
P ro je c t
S u rfa c e *
(m² )
De liv e ry
Ta rg e t re n t
(€/ m² / y e a r)
P re - le a s e d
(%)
To ta l
B u d g e t**
(M€)
Ta rg e t Yie ld
P ro g re s s
C a pe x to be
in v e s t e d
( G ro u p S h a re )
Clin iq u e INICEA
Offic e s - Fra n c e
S a in t- Ma n d é Gre a te r P a ris
Co n s tru c tio n
5 7 0 0 m²
2 0 16
na
10 0 %
25
6%
95%
1
DS Ca mp u s Exte n s io n 1 (Fd R s h a re : 5 0 %)
Offic e s - Fra n c e
Vé lizy - Gre a te r P a ris
Co n s tru c tio n
13 10 0 m²
2 0 16
305
10 0 %
39
6%
65%
6
305
10 0 %
64
6%
77%
6
Eu ro me d Ce n te r - Bu re a u x He rmio n e (Fd R s h a re : 5 0 %)
Offic e s - Fra n c e
Ma rs e ille
Co n s tru c tio n
10 4 0 0 m²
2 0 17
265
0%
14
> 7%
70%
4
S ile x I
Offic e s - Fra n c e
Lyo n
Co n s tru c tio n
10 6 0 0 m²
2 0 17
280
26%
47
6%
60%
16
Eu ro me d Ce n te r - Bu re a u x Flo re a l (Fd R s h a re : 5 0 %)
Offic e s - Fra n c e
13 4 0 0 m²
2 0 17
265
0%
18
>7 %
55%
9
Offic e s - Fra n c e
Ma rs e ille
Le va llo is - Gre a te r
P a ris
Co n s tru c tio n
Th a ïs
Co n s tru c tio n
5 5 0 0 m²
2 0 17
480
0%
40
6%
50%
14
O'rig in
Offic e s - Fra n c e
Na n c y
Co n s tru c tio n
6 3 0 0 m²
2 0 17
19 5
77%
20
6%
40%
11
Ed o
Offic e s - Fra n c e
Is s y Le s Mo u lin e a u x Gre a te r P a ris
Re g e n e ra tio n Exte n s io n
10 8 0 0 m²
2 0 17
450
10 0 %
83
6%
30%
33
Art&Co
Offic e s - Fra n c e
P a ris
Re g e n e ra tio n
13 5 0 0 m²
2 0 17
P ro je c ts
To ta l 2 0 16
18 8 0 0 m²
To ta l 2 0 17
7 0 5 0 0 m²
520
5%
13 1
5%
5%
34
425
33%
353
6%
3 1%
12 2
Rive rs id e
Offic e s - Fra n c e
To u lo u s e
Co n s tru c tio n
11 0 0 0 m²
2 0 18
19 5
0%
32
7%
5%
26
Hé lio s
Offic e s - Fra n c e
Lille - Ville n e u ve
d 'As q
Co n s tru c tio n
8 7 0 0 m²
2 0 18
16 0
0%
21
>7 %
5%
20
To ta l 2 0 18
To ta l - O ffic e s F ra n c e
19 7 0 0 m²
18 1
0%
53
7%
5%
46
10 9 0 0 0 m²
381
39%
470
6%
34%
17 5
Mila n , via Co lo n n a
Offic e s - Ita ly
Mila n
Re g e n e ra tio n
3 4 6 4 m²
2 0 17
260
0%
8
5%
1%
2
Mila n , via Ce rn a ia
Offic e s - Ita ly
Mila n
Re g e n e ra tio n
8 3 16 m²
2 0 17
420
0%
30
5%
4%
7
Mila n , P .zza Mo n te Tita n o
Offic e s - Ita ly
Mila n
Re g e n e ra tio n
4 8 16 m²
2 0 17
19 0
0%
11
5%
1%
4
Tu rin , c o rs o Fe rru c c i 112
Offic e s - Ita ly
Tu rin
Re g e n e ra tio n
4 5 6 0 0 m²
2 0 17
13 0
0%
45
6%
10 %
15
241
0%
94
5%
6%
29
Offic e s - Ita ly
Mila n
Co n s tru c tio n
300
80%
45
7%
8%
26
To ta l 2 0 17
6 2 19 6 m²
S ymb io s is A+B
19 0 0 0 m²
2 0 18
To ta l 2 0 18
19 0 0 0 m²
300
80%
45
7%
8%
26
To ta l - O ffic e s Ita ly
8 1 19 6 m²
260
26%
13 9
6%
7%
55
1
B&B P o ts d a m
Ho te ls
P o ts d a m - Ge rma n y
Co n s tru c tio n
10 1 ro o ms
2 0 16
na
10 0 %
3
>7 %
58%
B&B Ha mb u rg
Ho te ls
Ha mb u rg - Ge rma n y
Co n s tru c tio n
15 5 ro o ms
2 0 16
na
10 0 %
6
>7 %
85%
1
10 0 %
8
>7 %
76%
3
To ta l 2 0 16
2 5 6 ro o ms
B&B Be rlin
Ho te ls
Be rlin - Ge rma n y
Co n s tru c tio n
14 0 ro o ms
2 0 17
na
10 0 %
5
>7 %
32%
1
B&B Na n te rre
Ho te ls
Na n te rre - Gre a te r
P a ris
Co n s tru c tio n
15 0 ro o ms
2 0 17
na
10 0 %
3
6%
10 %
2
10 0 %
8
>7 %
32%
1
Ho te ls
Lyo n
Co n s tru c tio n
113 ro o ms
2 0 18
na
10 0 %
2
6%
27%
1
B&B Ch a te n a y Ma la b ry
Ho te ls
Ch a te n a y Ma la b ry Gre a te r P a ris
Co n s tru c tio n
2 5 5 ro o ms
2 0 18
na
10 0 %
2
6%
0%
2
Mo te l On e P o rte Do ré e
Ho te ls
P a ris
Co n s tru c tio n
17 3 ro o ms
2 0 18
na
10 0 %
9
6%
42%
6
Me in in g e r Mu n ic h
Ho te ls
Mu n ic h - Ge rma n y
Co n ve rs io n
4 2 0 ro o ms
2 0 18
na
10 0 %
15
6%
50%
7
Me in in g e r P o rte d e Vin c e n n e s
Ho te ls
P a ris
Co n s tru c tio n
2 4 9 ro o ms
2 0 18
na
10 0 %
24
6%
0%
16
32
To ta l 2 0 17
15 0 ro o ms
B&B Lyo n
To ta l 2 0 18
1 2 10 ro o ms
na
10 0 %
51
6%
23%
To ta l - Ho te ls & S e rv ic e s e c to r
1 6 16 ro o ms
na
10 0 %
67
6%
30%
36
19 0 19 6 m²
na
42%
676
6%
28%
266
T ot a l
FONCIÈRE DES RÉGIONS
* 100% usable area excl. car park; ** Group share incl. land and financial cost
H1 2016 RESULTS
44
APPENDICES
MANAGED PIPELINE: 23 PROJECTS FOR €2.3 BILLION GROUP SHARE
P ro je c ts
Typ e
Lo c a tio n
Are a
P ro je c t
S u rfa c e *
(m²)
De live ry
time fra me
S ile x II
Offic e s - Fra nc e
Lyon
MRC
Re ge ne ra tion - Exte ns ion
30 700
2020
Opa le
Offic e s - Fra nc e
Me udon
Gre a te r P a ris
Cons truc tion
30 000
2019
Borde a ux Ilot Arma gna c (QP FDR 34%)
Offic e s - Fra nc e
Borde a ux
MRC
Cons truc tion
31 600
2018
Borde a ux Cité du Numé rique
Offic e s - Fra nc e
Borde a ux
MRC
Cons truc tion
18 600
2018
Cœ ur d'Orly Comme rc e s (QP FdR 25%)
Offic e s - Fra nc e
Orly
Gre a te r P a ris
Cons truc tion
31 000
>2019
ERDF Re ims
Offic e s - Fra nc e
Re ims
MRC
Cons truc tion
10 400
2017
Multiple x Europa c orp
Offic e s - Fra nc e
Ma rs e ille
MRC
Cons truc tion
2800 s e a ts
2018
Ca p 18
Offic e s - Fra nc e
P a ris
P a ris
Cons truc tion
50 000
>2020
Rue il Vinc i
Offic e s - Fra nc e
Rue il- Ma lma is on
Gre a te r P a ris
Re ge ne ra tion - Exte ns ion
43 000
>2020
Ca nopé e
Offic e s - Fra nc e
Me udon
Gre a te r P a ris
Cons truc tion
46 900
2020
Ome ga
Offic e s - Fra nc e
Le va llois - P e rre t
Gre a te r P a ris
Re ge ne ra tion - Exte ns ion
21 500
>2020
Citroe n P S A - Ara go
Anjou
Montpe llie r Ma joria
Offic e s - Fra nc e
Offic e s - Fra nc e
Offic e s - Fra nc e
P a ris
P a ris
Montpe llie r
P a ris
P a ris
MRC
Re ge ne ra tion
Re ge ne ra tion
Cons truc tion
19 500
11 000
58 200
>2020
>2020
2018- 2020
Ave nue de la Ma rne
Offic e s - Fra nc e
Montrouge
Gre a te r P a ris
Cons truc tion
18 000
2020
Cœ ur d'Orly Bure a ux (QP FdR 25%)
Offic e s - Fra nc e
Orly
Gre a te r P a ris
Cons truc tion
50 000
>2019
Ora nge Gobe lins
Offic e s - Fra nc e
P a ris
P a ris
Re ge ne ra tion
4 100
>2020
Ca mpus Ne w Vé lizy Exte ns ion (QP FdR 50%)
Offic e s - Fra nc e
Vé lizy
Gre a te r P a ris
Cons truc tion
14 000
2019
DS Ca mpus Exte ns ion 2 (QP FdR 50%)
Offic e s - Fra nc e
Vé lizy
Gre a te r P a ris
Cons truc tion
11 000
>2020
ERDF Ange rs
Offic e s - Fra nc e
Ange rs
MRC
Cons truc tion
4 700
2019
To ta l O ffic e s - Fra n c e
504 200
P rinc ipe Ame de o
Offic e s - Ita ly
Mila n
Ita ly
Re ge ne ra tion
6 400
Via S c hie va no
Offic e s - Ita ly
Mila n
Ita ly
Re ge ne ra tion
27 153
2019
S ymbios is (othe r bloc ks )
Offic e s - Ita ly
Mila n
Ita ly
Cons truc tion
101 500
2022
To ta l O ffic e s - Ita ly
13 5 0 5 3
To ta l
639 253
2017
*S*urface
10 0 % area excl. car park
100%atusable
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
45
APPENDICES
ORGANISATION CHART AT END-JUNE 2016
Foncière des
Régions
France Offices
52.2%
61.0%
Italy Offices
German
Residential
Hotels & Service
Sector
French
Residential
(Immeo)
(Foncière des Murs)
(FDL)
(Beni Stabili)
49.6%
61.3%
40.8%
Operating hotel
properties
Consolidated
subsidiaries
(FDM Management)
Equity
affiliates
FONCIÈRE DES RÉGIONS
H1 2016 RESULTS
46
Contact
Paul Arkwright
Tel.: +33 1 58 97 51 85
Mobile: +33 6 77 33 93 58
[email protected]
FONCIÈRE DES RÉGIONS
Paris
30, avenue Kléber
75116 Paris
Tel.: +33 1 58 97 50 00