Degroof Petercam Real Estate Seminar. Degroof Petercam's Real Estate Seminar

Degroof Petercam Real Estate Seminar Degroof Petercam's Real Estate Seminar 27/09/2016 Topics 1. Company profile & key figures 2. Key achievements...
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Degroof Petercam Real Estate Seminar

Degroof Petercam's Real Estate Seminar

27/09/2016

Topics 1. Company profile & key figures 2. Key achievements in H1 2016 – perspectives H2 3. Stock performance 4. Belgian residential market

Degroof Petercam's Real Estate Seminar

27/09/2016

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Topics 1. Company profile & key figures 2. Key achievements in H1 2016 – perspectives H2 3. Stock performance 4. Belgian residential market

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Company profile

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RREC (SIR/GVV) launched in 1999

years

Pure player in residential real estate

Portfolio

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Fair value of over € 365 millions 1750 units in use + 250 under construction or study Located in Belgium (65% in Brussels Capital Region) High and stable occupancy rate: around 93%

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Company profile

Team of over 30 people Managing the full cycle of property

Debt ratio: ± 40% Pay-out ratio: ± 90%

Listed on Euronext Brussels Market capitalization ± € 310 millions

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Strategy based on 4 pillars Managing the full cycle of real estate

Investor

Unique positioning on the market

Active disposal process

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Developer

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Strategy based on 4 pillars Success keys to insure the return

• • •

Acquisitions at cost Life Cycle Cost Efficiency of buildings

• • •

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Acquisitions of big sites Advantage of exit tax Acquisitions in shares

• •

• • •

Service to tenants Continuous refurbishment

Maximisation of capital gains Continuous rejuvenation Regular « cleaning up »

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Key figures

Property portfolio

30/06/2016

2015

2014

Total fair value

€ 368,1 mio

€ 348,6 mio

€ 322,3 mio

Investment properties in operation

€ 344,1 mio

€ 313,6 mio

€ 282,6 mio

€ 22,5 mio

€ 32,5 mio

€ 33,9 mio

€ 1,6 mio

€ 2,5 mio

€ 5,8 mio

160 263 m2 44

146 841 m2 43

142 200 m2 42

1.754

1.503

1.311

93,15%

93,89%

94,01%

5,79%

5,79%

6,15%

Development projects Buildings to be sold

Detailed overview of investment properties in operation Total surface Number of sites Number of leases Occupancy rate Gross yield on rents received or guaranteed

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Key figures

Consolidated results

30/06/2016 30/06/2015

In € million

Net rental result

€ 9,14 mio

€ 8,58 mio

Property result

€ 7,41 mio

€ 7,41 mio

Operating result before portfolio result

€ 4,71 mio

€ 4,45 mio

Result on sales (vs last fair value)

€ 0,18 mio

€ 0,37 mio

Distributable result on sales

€ 2,35 mio

€ 2,64 mio

Changes in fair value of investment properties

€ 4,18 mio

€ 2,65 mio

Operating result

€ 9,07 mio

€ 7,47 mio

Net result

€ 4,24 mio

€ 7,37 mio

Net current result excluding IAS 39

€ 3,19 mio

€ 2,59 mio

Distributable result

€ 5,56 mio

€ 5,29 mio

€ 1,76

€ 1,68

43,21%

42,52%

Distributable result per share Debt ratio

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Portfolio

Portfolio evolution

400 Mio 350 Mio 300 Mio 250 Mio 200 Mio 150 Mio 100 Mio 50 Mio 0 Mio

2001

2003

2005

2007

2009

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2011

2013

2015

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Portfolio

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Portfolio

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Topics 1. Company profile & key figures 2. Key achievements in H1 2016 – perspectives H2 3. Stock performance 4. Belgian residential market

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Financing - Hedging •

Restructuration of 2015 continued in 2016 • Benefits: • Better average cost of funding (2,63% vs 3,40% in 2015 and 3,63% in 2014) • Better hedge maturity – less exposure to increase

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Acquisitions – Existing buildings Oudenaarde • Building to be renovated • 80 studios • 15 apartments (1 & 2 bedrooms) • Value add strategy

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Acquisitions – Development projects •

Célidée Molenbeek • 96 units • Works started

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Development •

10% of the portfolio in development (limit of 25% fixed by the BoD) • Projects under progress Name

# units

Delivery

Investment 12/2015

Investment Total

MTC1

95

Q1 2017

11,1

19,5

Célidée

95

Q3 2018

-

17,0

Reine Astrid

40

2018 (?)

3,7

3,7 (till permit)

Brunfaut

96

2019 (?)

0,1

0,1 (till permit)

 Important growth potential

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Development – Marcel Thiry • Woluwe Saint-Lambert • 9.500 sqm • 95 apartments • Delivery : Q1 2017

• Allotment permit introduced for adjacent plot of land

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Development – Reine Astrid • Kraainem • 4,800 sqm • 40 apartments + retail / offices

• Permit : 09/2016 (recourse period)

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Property management •

The Horizon • Delievery in June 2016 • Brand new concept • New generation building • www.thehorizon.be

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Property Management

1.Occupancy rate

• 2016: Q1: 92,91%

Q2: 93,39%

S1: 93,15 %

• 2015 : 93,9% Degroof Petercam's Real Estate Seminar

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Property Management

2.Letting activity

116 (existing)

13 (new buildings)

129 leases concluded in S1

• Rotation S1 : 116 / 1.754 = 6,61% • Rent evolution : +0,98% globally Degroof Petercam's Real Estate Seminar

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Disposal process •

Why ? • Maximisation of capital gains • Regular « cleaning up » of less performing assets in our portfolio • Continuous rejuvenation of our portfolio



Achievements H1 2016 • 14 apartments • 4 houses

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Topics 1. Company profile & key figures 2. Key achievements in H1 2016 – perspectives H2 3. Stock performance 4. Belgian residential market

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Stock - Key figures • • • • • •

+8 % in H1 2016 (€92,59 - €100,00) Premium of 47 % Gross dividend of € 4,00 for 2015 27% withholding tax as from 1/1/2016 Low volumes on the stock Interim dividend to be announced on 27/10/2016 (results Q3)

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Evolution of the stock price & dividend

105,00

4,5

90,00

4

75,00

3,5

60,00

3

45,00

2,5

30,00

2

15,00

1,5

HOME INVEST B ELGIUM - Share price

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Gross dividend

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Comparison return Comparison Stock price evolution: Home Invest Belgium BEL 20 - EPRA Belgium Index 280 260 240

Basis 100 on June 18,1999

220 200 180 160

140 120 100 80 60

40

Home Invest Belgium

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BEL 20

EPRA Belgium

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Topics 1. Company profile & key figures 2. Key achievements in H1 2016 – perspectives H2 3. Stock performance 4. Belgian residential market

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Belgian residential market H1 2016 Investment Market

• Still cheaper credits (- 15 à -50 bp) • Less return on alternative investments • Growth of population  Strong activity and prices rising (especially for new apartments)

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Belgium residential market H1 2016 Letting Market • Cf. Observatoire Loyers 2015 (Brussels) • Average rent : 709 EUR/month • Median rent: 650 EUR/month • Evolution in line with inflation • Decreasing rotation

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Your questions are welcome ! Thank you for your attention !

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SIR publique de droit belge Boulevard de la Woluwe 60, boîte 4 B – 1200 Bruxelles T +32 2 740 14 50 [email protected] www.homeinvestbelgium.be