Vitura SA · EURONEXT:VTR
Vitura SA — CeGeREAL — FY2009 Earnings Presentation
46 slides from Vitura SA's earnings presentation, Feb 23, 2010
Slide 1: 2009 Annual Results
2009 Annual Results 23rd February 2010
Slide 2: 2009 Main events
2009 Main events Compliance with the SIIC 4 regime Sale of a real estate right to Carpe Diem: €7m Lettings in Europlaza: 2,200 m² of net area Adjustment of the leasing strategy on Arcs de Seine Proposed dividend: €1.70 per share Net rents Net Net Income Portfolio Cash flow (French GAAP) va
Slide 3: Index
Index Look back on Real Estate analysis 2009 & Key financials Evolution since 2006 CGR stock performance Growth & Targeted assets / Positioning Corporate Growth objectives & extension of the Board of Directors Governance Acquisition process Appendices Shareholders’ agenda Stock ID &
Slide 4: Look back on 2009 – Real Estate & Evolution since 2006
Look back on 2009 – Real Estate & Evolution since 2006
Slide 5: Real Estate portfolio snapshot
Real Estate portfolio snapshot Real Estate properties > 20 000 m² EUROPLAZA - La Défense Paris 1st ring First-class tenants Under developer’s 10-year guarantee upon acquisition RIVES DE BERCY - Charenton ARCS DE SEINE - Boulogne Look back on 2009 Real Estate Finance Stock market Growth & Cor
Slide 6: Large office properties: a sluggish market
Large office properties: a sluggish market Letting market: Available supply = 2.0 x Take-up Available supply = 1.2 x Take-up thousands thousands m² Areas > 5,000 m² m² Areas > 20,000 m² 1 800 600 1 600 Take-up Available supply Take-up Available supply 500 1 400 1 200 400 1 000 300 800 600 200 400
Slide 7: 2009 Leasing activity
2009 Leasing activity Leases renegotiated in 08/09 : 81% (52% excl. Bouygues Telecom) Rental Area Firm Rent free Tenants Transaction Asset increase / (m²) period period decrease Cap Gemini Tel New lease 1 300 Europlaza 3,5 years 2 months 0% Software New lease 1 300 Europlaza 3 years 4,5 months (0%
Slide 8: Rental revenues close to 2008
Rental revenues close to 2008 Figures in €m -2% +3,2 -5,0 58,5 +1,3 +0,1 -0,6 57,5 Rent Departures Relettings Rent Other Index free adjustments 2008 2009 Rents Rents Look back on 2009 Real Estate Finance Stock market Growth & Corporate Governance 2009 Annual Results – 23rd February 2010 7
Slide 9: Tenancy analysis
Tenancy analysis Diversity of business sectors Highly solvent tenants Size of largest tenant Credit risk analysis (% of rent) 40% 36% 97% 100% 80% 20% 60% 40% 20% 4% 2% 0% 1% 0% 0% Excellent Very good Good tenant Average Poor tenant Communications Bank & Services Health & tenant tenant tenant & Medi
Slide 10: Rental schedule
Rental schedule 45% Bouygues Telecom Next break option 40% End of lease 35% 30% 25% Crédit Foncier 20% 15% GE Capital 10% Cap Gemini 5% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 Look back on 2009 Real Estate Finance Stock market Growth & Co
Slide 11: Lease negotiations: 1st satisfactory results
Lease negotiations: 1st satisfactory results Portfolio excl. Bouygues Portfolio Bouygues Telecom Telecom Average maturity 6,8 years 1,0 year 4,7 years Average firm period 4,3 years 1,0 year 3,1 years % of leases with a fixed 46% - 30% indexation GE Capital’s and Crédit Foncier de France’s rents ha
Slide 12: Letting the Bouygues Telecom areas
Letting the Bouygues Telecom areas 4 buildings representing a total area of 45,000 m² Quai Point du Jour à Boulogne (92) Delivered by HRO in 2000 & 2001 Buildings A & C 36,000 m² let to Bouygues Telecom To be vacated on 01/01/11 Building B 5,200 m² let to Boursorama Next break option: 12/31/15
Slide 13: Letting the Bouygues Telecom areas independent buildings
Letting the Bouygues Telecom areas 4 independent buildings 2009: Lack of demand on large areas A «Boulogne» A «Seine» Adapting the leasing strategy to the market 12,750m2 12,750m2 in 2009 => Splitting the lettable areas Available in 2011 Available in 2011 thanks to the asset’s divisibility. Th
Slide 14: Change in Portfolio value
Change in Portfolio value -5% since 2006 €1,032m 1 100 €961m +7% €938m 1 000 +11% -9% €868 €828m 900 -12% 800 Rives de Bercy 700 600 500 Arcs de Seine 400 300 200 Europlaza 100 - Look back on 2009 Real Estate Finance Stock market Growth & Corporate Governance 2009 Annual Results – 23rd February 2010
Slide 15: Look back on 2009 – Finance & Evolution since 2006
Look back on 2009 – Finance & Evolution since 2006
Slide 16: Operating profit in line with 2008
Operating profit in line with 2008 In €k 31/12/2009 31/12/2008 Rents remained stable: -2% IFRS Rents 57,518 58,460 Recovered RE expenses and indemnities Real Estate expenses 9,656 (13,531) 12,158 (15,824) Management costs: -11% Net rents 53,643 54,794 Net Cash Flow: +12% Asset Management fees (2,896
Slide 17: 12% increase in Net Cash Flow
12% increase in Net Cash Flow 31/12/2009 31/12/2008 D% Net Cash Flow (€k) 41,548 37,085 12,0% Total number of shares 13,372,500 13,372,500 Net Cash Flow per share 3.1 2.8 12,0% Change in Net Cash Flow per share (€ per share) 3.1 2.7 2.8 Stabilised CF: 1.8 €2.5 per share 2006 2007 2008 2009 (9 months
Slide 18: Financing the last Exit tax instalment
Financing the last Exit tax instalment Total amount of debt : €402.4m Tranches A & B Tranch C Main terms & conditions Amount €379,900,000 €22,500,000 Interest rate 4.15% E3M + 60bps Maturity March 2013 March 2013 Ranking pari passu Current LTV 49% Current ICR 333% Financial Covenants LTV thresholds
Slide 19: 2009 NAV close to the IPO's
2009 NAV close to the IPO’s Decrease in NAV mainly recorded in S1 2009 Impact of the change in the real estate fair market value: €8.3 per share -17% 40.0 +1.3 -6.8 -5% Recurring income -1.2 33.3 -1.95 +1.2 +0.5 -1.5 31.6 31.8 Change Other (6 m) Dividend Recurring Carpe Change in RE FMV income D
Slide 20: Distribution policy
Distribution policy Faced with The uncertainty around the rent index and A slackening rental market, CeGeREAL will propose to the General Meeting of shareholders on 19th May 2010 a dividend of €1.70 per share (vs. €1.95 per share in 2008) Dividends (€ per share) €1.84 €1.95 €1.95 €1.70 2006
Slide 21: Maintaining the value through the cycle
Maintaining the value through the cycle IPO 4 years later Beg. 2006 End 2009 Occupancy rate 100% 95% 81% of leases Rents €56.6m renegotiated €57.5m Residual lease maturity 4.4 years 4.7 years Capitalisation rate 5.9% 4y later and… 6.5% RE value (excl. duties) the crisis €855m €828m Bank Debt €380m 2
Slide 22: Value creation for shareholders
Value creation for shareholders IPO Figures as at 31/12/2009 2006 2007 2008 2009 (March 2006) No taxation: (NOPAT =EBITDA) NNNAV per share 31.8 40.9 47.5 40.0 31.6 Market price 31.8 33.8 33.7 19.6 25.5 No dilution issue Discount to NNNAV 0% 17% 29% 51% 19% Cost on Equity: 7.50% FFO per share
Slide 23: Look back on 2009 – Stock market
Look back on 2009 – Stock market & Evolution since 2006
Slide 24: CeGeREAL vs. indices
CeGeREAL vs. indices Changes in CGR stock price compared to the EPRA and the SBF 250 indices since January 2008 CGR stock performance vs. SBF 250 and EPRA since January 08 120% 100% 80% 60% 40% 20% 0% 31/12/07 31/03/08 30/06/08 30/09/08 31/12/08 31/03/09 30/06/09 30/09/09 31/12/09 SBF 250 EPRA Eur
Slide 25: CGR stock performance
CGR stock performance Dividend yield 9.9% 6.7% 5.4% 5.8% 7.0% average yield on stock 4.5% 4.1% 4.9% 5.4% price since the IPO CeGeREAL has outperformed the 2006 2007 2008 2009 SBF 250 and the EPRA Yield on stock price Yield on NAV (European Public Real Estate Association) indices whatever the Com
Slide 26: CGR stock price vs. NAV
CGR stock price vs. NAV Changes in CGR stock price vs. NAV Liquidity doubled in 2009 excl. transactions of exceptional size 2006 2007 2008 2009 (10 trading days per year on average) 50 45 2 000 8,556 40 7,488 35 1 500 30 5,810 25 1 000 20 3,504 15 500 10 5 0 0 2006 2007 2008 2009 Average daily v
Slide 27: Increase in the number of shareholders
Increase in the number of shareholders Commerz Real sold in December ‘09 a block representing 7% of CeGeREAL’s share capital to a foreign private investor to comply with the SIIC 4 regime. In 2009, the number of shareholders CeGeREAL shareholding structure as at almost doubled and the portion of
Slide 28: Growth & Corporate Governance
Growth & Corporate Governance
Slide 29: Growth & Corporate Governance: targeted assets
Growth & Corporate Governance Growth in accordance with CeGeREAL’s original positioning: Yield play company Recent large-scale office buildings Rental income secured by first-class tenants A sound financial position (LTV limited to 50% upon acquisition) Targeted assets RECENT Under LARGE
Slide 30: Growth & Corporate Governance: objectives
Growth & Corporate Governance Main objective: Reaching a market capitalisation of 1 billion euros by acquiring assets matching CeGeREAL’s criteria. This will improve the granularity of the real estate risks and reduce the discount to NAV due to the limited liquidity of the share Human resources
Slide 31: Main steps of the acquisition process
Growth & Corporate Governance Main steps of the acquisition process Commerz Real CeGeREAL Commerz Real CeGeREAL CeGeREAL Pre-analysis Pre-Committee Due diligence Committee Board Preliminary analyses of the Review of the project by the Technical, Investment Committee that Confirmation by the acquisit
Slide 32: Financing: Modus operandi
Growth & Corporate Governance Financing: Modus operandi Step #1 Step #2 Step #3 Securing the Equity External acquisition refinancing financing Shareholder Bank 50-100% Loan Debt Shareholder 0-50% 0-50% Loan 100% Capital Capital -Commerz Real- increase increase 50-100% 50-100% Look back on 2009 Real
Slide 33: Conclusion
Conclusion 2009 12% increase in Net Cash flow achievements Stock price rose by 30% and liquidity improved SIIC status maintained Main strengths 81% of leases renegotiated in 2008 / 2009 to face the crisis 30% (46% excl. Bouygues Telecom) of leases benefiting from a fixed indexation Bank
Slide 34: Appendices
Appendices
Slide 35: Shareholders' agenda
Shareholders’ agenda General Half-year Q1 2010 Results 09 Dividend Meeting results 7th May 2010 payment 19th May 2010 30th July 2010 Coupon strip: 16th July 2010 09 Dividend payment: 21st July 2010 2009 Annual Results – 23rd February 2010 34
Slide 36: Stock ID
Stock ID Name CeGeREAL SA Shareholders – Investor Relations NYSE Euronext Paris 21-25, rue de Balzac ISIN FR0010309096 75008 Paris Tel. : +33 (0)1 42 25 76 36 Mnemo CGR Email : [email protected] CFI ESVUFB Type REIT Securities Services Size Eurolist compartment B BNPP Securities Services 25 quai Pan
Slide 37: Europlaza
Europlaza 2009 Annual Results – 23rd February 2010 36
Slide 38: Arcs de Seine
Arcs de Seine 2009 Annual Results – 23rd February 2010 37
Slide 39: Rives de Bercy
Rives de Bercy 2009 Annual Results – 23rd February 2010 38
Slide 40: Income Statement – French GAAP
Income Statement – French GAAP (in euros) Dec. 31, 2009 Dec. 31, 2009 Dec. 31, 2009 Dec. 31, 2009 Notes Notes 12 months 12 months 12 months 12 months France Exports Total Total Non-recurring income on management transactions 157,610 Sales of goods for resale Non-recurring income on capital transacti
Slide 41: Turnover and real estate-related costs (French GAAP)
Turnover and real estate-related costs (French GAAP) 2009 2008 Rental income 57,518,102 58,460,264 Rental expenses rebilled to lessees 5,800,685 6,243,395 Real estate taxes rebilled to lessees 3,346,635 3,444,950 Termination indemnities 121,864 2,334,243 Insurance costs rebilled to lessees 45,327 Ot
Slide 42: IFRS Income Statement
IFRS Income Statement (in thousands of euros) Notes Dec. 31, 2009 2008 Rental income 5.19 57,039 57,933 Income from other services 5.20 10,135 12,889 Building-related costs 5.14 (13,533) (15,827) Income from sale of building 6,850 Net rental income 60,490 54,994 Administrative costs 5.22 (2,760) (3,
Slide 43: IFRS Balance Sheet
Total non-current assets 839,627 945,085 Current assets IFRS Balance Sheet Accounts receivable Other operating receivables 5.3 5.4 14,483 3,882 13,348 3,104 Prepaid expenses 5.18 2,204 2,230 Total receivables 20,569 18,682 Cash and cash equivalents 5.5 16,200 9,787 Total cash and cash equivalents 16
Slide 44: Balance Sheet – French GAAP
Balance Sheet – French GAAP (in euros) EQUITY AND LIABILITIES Notes Dec. 31, 2009 Dec. 31, 2009 Capital Share capital (including paid-up capital: 160,470,000 ) 5.9 160,470,000 160,470,000 Additional paid-in capital 35,291,776 39,745,105 Revaluation reserve 5.11 164,937,725 171,113,225 (in euros) Dep
Slide 45: Cash Flow - IFRS
Fair value adjustments to investment property 111,090 93,747 Change in provision for deferred taxation (164) (165) Discounting of exit tax liability 835 1,902 Cash Flow - IFRS Cash flows from operations before tax and changes in 57,215 52,294 working capital requirements* Change in exit tax liabilit
Slide 46: Cash Flow – French GAAP
Cash Flow – French GAAP 2009 2008 2009 2009 2008 Uses Sources SOURCES CHANGE IN OPERATING WORKING CAPITAL Funds from operations 41,548,807 37,084,547 Change in operating assets Available cash flow 41,548,807 37,084,547 Trade accounts receivable 1,339,603 (1,339,603) 10,875,415 Other receivables 5,93