Patrimoine Et Commerce · EURONEXT:PAT
Patrimoine Et Commerce — Patrimoine & Commerce — FY2013 Earnings Presentation
34 slides from Patrimoine Et Commerce's earnings presentation, Mar 28, 2014
Slide 1: 2013 Annual Results
2013 ANNUAL RESULTS SFAF (French Financial Analysts’ Association) meeting of 28 March 2014 A leading property company in the retail park sector
Slide 2: Important notice
2 Important notice This document was prepared by Patrimoine & Commerce for the sole purpose of presenting its annual results on 28 march 2014. This document may not be copied or circulated, in whole or in part, without the Company’s prior approval. Patrimoine & Commerce cannot be held liable if this
Slide 3: Contents
3 CONTENTS Low-cost Retail parks model > 2013 Highlights > Portfolio 2013 consolidated results Strategy and outlook A leading property company in the retail park sector
Slide 4: Low-cost Retail Parks Model
4 LOW-COST RETAIL PARKS MODEL A leading property company in the retail park sector
Slide 5: Suburban retail parks: a well-organised offer
5 Suburban retail parks: a well-organised offer Retail park Beynost Visibility Accessibility Tenant Parking A leading property company in the retail park sector
Slide 6: Retail brands with business models built on tight cost control
6 Retail brands with business models built on the basis of tight cost control Personal goods Household goods DIY & electrical appliances Culture - entertainment Children Services Food and catering A leading property company in the retail park sector
Slide 7: Retail park, a business model which meets the various players' expectations
7 Retail park, a business model which meets the various players’ expectations An answer to consumers’ requirements > Diversity and complementarity of retail brands > Fair price offerings Service charges An attractive environment for retail brands > Low property costs and high marketability €15 /m² A
Slide 8: Retail park, a profitable business model for investors
8 Retail park, a profitable business model for investors Assets perfomances 7.5% > Higher return than shopping centers and high street retail Resilient revenues > High historical occupancy rate c. 98% > Low turnover of tenants c. 1% Low CAPEX levels > Reduced maintenance costs > Non-significant “gre
Slide 9: 2013 Highlights
9 2013 Highlights Successful Public Debt Renegotiation exchange offer on Foncière Sepric €30 M at 4.45% 99.2% of the capital + €4 M/year of cash flow €M €M 85 deliveries/acquisitions 35.5 of disposals m² 77 000 delivered in 2013 4.9 €M under agreement Adoption of SIIC status by 7 assets in 2013 : a
Slide 10: Successful public exchange offer on Foncière Sepric
10 Successful public exchange offer on Foncière Sepric Integration of staff and properties Structuration of the processes Harmonization of the information systems Rationalization of the legal structure A leading property company in the retail park sector
Slide 11: Renegotiation of Bond
11 Renegotiation of Bond Principal €30 M Interest rate 4.45% Repayment by 2 instalments of €15 M in 2020 and 2021 vs. annual linear repayment of €4 M/p.y. previously Improved cash-flow with the prospect of a better dividend yield of P&C A leading property company in the retail park sector
Slide 12: Principal deliveries in 2013
12 Retail park of Puymaret (19) Principal delivries in 2013 Shopping center of Cherbourg (50) Surface area 20 370 m² Delivery date December 2013 Occupancy rate 84% Rental income est. €1.2 M Mall of the Palais des Congrès d’Antibes (06) Surface area 30 000 m² Opening date May 2013 Occupancy rate 95%
Slide 13: 2013, a year of development
13 2013, a year of development Retail park of Pontarlier (25) Limoges le Vigen (87) Surface area 5 850 m² whom 3 180 m² purchased by the retail brands Surface area Tenants Pierrelaye (95) 1 145 m² Orchestra Tenants Intersport, Chaussea, Norauto Delivery date March 2014 Delivery date December 2013 Oc
Slide 14: Progress of disposals
14 Progress of disposals 5 assets sold during the financial year for €35.5 M > Public part of the Palais des Congrès d’Antibes (06) > Bordinvest (33), Saint-Avold (57), Poitiers Invest Bureaux (86) and Saint-Cyr-sur- Loire (37) 3 property assets under agreement as at 31 December 2013 for €4.9M Dispo
Slide 15: Portfolio as at 31 December 2013
15 Portfolio as at 31 December 2013 A leading property company in the retail park sector
Slide 16: Patrimoine & Commerce: 95% of retail assets
16 Patrimoine & Commerce : 95% of retail assets Total €501 M Shopping galeries and centers €128 M 26% Retail parks €347 M 5% Offices & businesses 69% €26 M Market value, excluding transfer taxes and assets held for sale A leading property company in the retail park sector
Slide 17: Natural sustainable development assets
17 Natural « sustainable development » assets Retail parks that are intrinsically focused on a “sustainable development” approach > No air-conditioned common parts > Neither escalators nor lifts > Significant green areas A strong commitment of Patrimoine & Commerce > Supported by a specialized firm
Slide 18: 2013 Consolidated Financial Statements
18 2013 CONSOLIDATED FINANCIAL STATEMENTS A leading property company in the retail park sector
Slide 19: Key figures as at December 2013
19 Key figures as at 31 december 2013 62 assets 305 000 m² €M (1) €M 501 31.7 of rental income (2) 49.3% LTV (3) 7.5% Capitalisation rate (4) (1) Excluding transfer taxes and assets held for sale (2) 2013 gross rental income (3) Restated for the net cash-in on the sale of assets held for sale, guara
Slide 20: Profit and loss account
20 Profit and loss acount Pro forma Variation Variation In €M 31/12/13 31/12/12 in €M in % Net rental income 31.1 28.8 2.3 +7.8% Normative EBITDA 27.4 25.4 2.0 +8.1% EBITDA / Net rental income 88% 88% Current tax on non-SIIC assets (0.5) (0.4) (0.1) +30.4% Cost of net financial debt (7.7) (5.9) (1.8
Slide 21: Sound financial structure
21 Sound financial structure In €M 572 572 226 Equity, Group share Investment 501 properties 12 Minority interests 278 Debt Assets held for sale 5 Cash and equiv 19 Other 47 56 Other Assets Liabilities December 2013 December 2013 A leading property company in the retail park sector
Slide 22: Gross rental income
22 Gross rental income In €M 3.0 0.1 (0.1) 15,5 31.7 4 011 29.2 Gross rental Disposals Deliveries Indexations Gross rental income 2012 Acquisitions Renegotiations income 2013 pro forma A leading property company in the retail park sector
Slide 23: Breakdown of retail rental income
23 Breakdown of retail rental income Top 15 retail brands (45% of rental income) Type of Retail outlet Personal goods 7% 1% Household goods 13% Culture & 48% entertainment 31% Food Other The largest retail brand accounts for 8% of retail rental income A leading property company in the retail park se
Slide 24: Stable income
24 Stable income > Occupancy rate 97%* > Rate of arrears < 1% > Lease indexation • ICC 35% • ILC 63% • ILAT (office) 2% > Average rent • Retail parks 121 €/m² • Shopping galleries and centres 325 €/m² > Tenant turnover rate 1% * Restated for projects delivered in 2013 Lease expiry schedule (end of l
Slide 25: Solid financial ratios
25 Solid financial ratios In €M 31/12/13 31/12/12 Gross debt Net debt 1 247.0 209.9 Bonds €30.0 M Average debt maturity 7.0 7.1 Financial leases Fixed & hedged floating-rate debt 81% 67% €110.5 M Borrowings Average interest rate on the debt 3.9% 4.0% €133.5 M LTV 1 49.3% 45.3% 1 Restated for the net
Slide 26: Linear debt repayment
26 Linear debt repayment In €M Bonds 30.0 Borrowings Financial leases 81.4 9.8 7,1 10.7 55.9 8.3 8.8 9.9 10,3 10.8 10.9 11.8 10.8 11.0 1 year 2 years 3 years 4 years 5 years Beyond 5 years * Excluding VAT bridge loans, real estate development bridge loans, accrued interest, etc. A leading property c
Slide 27: 23% increase in NAV due to the PEO closing
27 23% increase in NAV due to the PEO closing > Progression near by 5.7% of NAV per share, changing from €22.20 as at 31/12/12 to €23.50 as at 31/12/13 15.4 In €M 29.2 3.9 (6.2) 30 691 3 802 225.7 183.5 NAV PEO Dividends FV Variation Result, NAV excluding Group share excluding transfer taxes transfe
Slide 28: Structured and independent corporate governance
28 Structured and independent corporate governance Management provided by Eric Duval Supervisory Board chaired by Dominique Jouaillec > 13 members of whom 8 are independent and 3 former (non independent) Sepric members Investment Committee chaired by Jean-Hubert Moitry > 6 members of whom 5 are inde
Slide 29: Outperformance of Patrimoine & Commerce stock price
29 Outperformance of Patrimoine & Commerce stock price +31% > Shareholders as of 31 décembre 2013 Free float E. Duval 28% Group 30% Suravenir Vergely 5% BPVF Family Robbe 16% 11% Family 10% Market capitalisation of €183 M as at 26 march 2014 > Increasing daily traded volume (+95%)* * Traded volume f
Slide 30: Strategy and Outlook
30 STRATEGY AND OUTLOOK A leading property company in the retail park sector
Slide 31: Leading property company specialized in low cost retail parks
31 Leading property company specialized in low cost retail parks Building a “pure player” retail REIT in mid-sized towns > Transactions in town centers or close to mid-sized towns Expanding while controlling our financial equilibrium > Maintaining a Loan-to-Value ratio of around 50% > Debt instituti
Slide 32: 2014 priorities
32 2014 Optimization of information systems (Premiance) Development of the committed pipeline Opportunistic acquisitions Disposal of non strategic or mature assets A leading property company in the retail park sector
Slide 33: The Patrimoine & Commerce pipeline
33 The Patrimoine & Commerce pipeline Focus on Epagny and La Rochelle projects Annecy Épagny (74) La Rochelle (17) Surface area 7 698 m² Surface area 5 784 m² Tenants Groupe Beaumanoir, Cultura, Tenants Darty and Cultura Chaussea, Générale d’optique… Opening May 2015 Opening End of 2014 Occupancy ra
Slide 34: Confirmed long-term goals
34 Confirmed long-term goals Property assets of €1 billion by the end of 2016 Yield of over 7.0% Loan-to-Value ratio of around 50% Retail park in Bourg-en-Bresse A leading property company in the retail park sector