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

Degroof Petercam's Real Estate Seminar

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

• • •

Degroof Petercam's Real Estate Seminar

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

Degroof Petercam's Real Estate Seminar

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

Degroof Petercam's Real Estate Seminar

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