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
Degroof Petercam's Real Estate Seminar
27/09/2016
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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
Degroof Petercam's Real Estate Seminar
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