Icade Sa · EURONEXT:ICAD
Icade Sa — Investor Day (November 2019)
89 slides from Icade Sa's investor day presentation, Nov 25, 2019
Slide 1: Investor Day
ORIGINE (Paris La Défense ‐ Nanterre, Hauts‐de‐Seine) INVESTOR DAY Monday, November 25, 2019
Slide 2: Contents
CONTENTS Introduction by Frédéric Thomas 4. CSR 1. Strategic Plan 5. Development 2. Office market (JLL) 6. Healthcare Investment 3. Office Investment 7. Conclusion Appendices INVESTOR DAY – MONDAY, NOVEMBER 25, 2019 I 2
Slide 3: Shareholders, Board of Directors & Management Aligned
INTRODUCTION BY FRÉDÉRIC THOMAS SHAREHOLDERS, BOARD OF DIRECTORS & MANAGEMENT ALIGNED Strategic Plan approved unanimously by the Board of Directors Strengthened governance since April 2019 Icade’s two leading shareholders are aligned A committed Board of Directors, geared toward growth, supporting m
Slide 4: 1. Strategic Plan
PAC FACILITY (Toulouse, Haute‐Garonne) 1. STRATEGIC PLAN Where do we stand? INVESTOR DAY – MONDAY, NOVEMBER 25, 2019 I 4
Slide 5: 2019-2022 Plan: A Clear and Ambitious Plan
1. STRATEGIC PLAN: WHERE DO WE STAND? 2019‐2022 PLAN: A CLEAR AND AMBITIOUS PLAN 1. 2. 3. Leader in the office 4. market in the Greater European leader Key player in Best‐in‐class CSR Paris area and major in healthcare property and innovation cities outside Paris real estate development Sales of m
Slide 6: Despite Volatility, the Market Still Offers Opportunities
1. STRATEGIC PLAN: WHERE DO WE STAND? DESPITE VOLATILITY, THE MARKET STILL OFFERS OPPORTUNITIES Negative sovereign bond yields: More attractive financing conditions vs. an increase predicted in 2018 Unstable geopolitical environment Investor risk aversion (Brexit, US/China, populism, etc.) & flight‐
Slide 7: 2019: Implementation Well Underway
1. STRATEGIC PLAN: WHERE DO WE STAND? 2019: IMPLEMENTATION WELL UNDERWAY 2019 1st year of the plan 2020 2021 2022 Office Acceleration and Sales of investments diversification within Improved mature assets the healthcare segment ESG ratings €380m Icade Santé’s inaugural ~€1.1bn €735m Ranked as a bond
Slide 8: 2. The French Office Markets
2. THE FRENCH OFFICE MARKETS Promising perspectives outside of Paris Sophie ROZEN Head of Research Services JLL France INVESTOR DAY – MONDAY, NOVEMBER 25, 2019 I 8
Slide 9: Promising dynamic outside Paris
Promising dynamic outside Paris What perspectives for the Grand Paris ? What trends outside the Paris Region ? 25th November 2019 Sophie ROZEN– Head of Research Services JLL France
Slide 10: What perspectives for the Grand Paris?
What perspectives for the Grand Paris ? 10
Slide 11: Leasing market stabilizing at 10-year average in 2019
The leasing market is stabilizing at 10-year average in 2019 after 2 years of record-high activity Source: JLL/ImmoStat 11
Slide 12: Low vacancy rate and limited supply in new
Both dynamic demand and limited construction result into a low vacancy rate and limited supply in new at the end of 2019 … 12 Source: JLL / Immostat / ORIE
Slide 13: Dynamic prime and average rental values
… and in dynamic prime and average rental values Prime rents New/Refurbished average rents Source: JLL/ImmoStat 13vacancy * Unfavorable market conditions for Péri-Défense at that time. Unbalanced market with a high level of rate (~15%).
Slide 14: Investment market achieves record-high activity
The investment market achieves record-high activity both in volume and number of transactions in 2018-2019 Source: JLL/ImmoStat
Slide 15: Paris ranks 2nd largest investment market in the world
Paris ranks 2nd largest investment market in the world and 1st for cross- border investment at the end of Q3 2019 World top 10 cities in transactional volumes Q3 2019 (US$ bn) New York Paris Seoul Tokyo Los Angeles Shanghai London Singapore Silicon Valley San Francisco 0,00 2,00 4,00 6,00 8,00 10,00
Slide 16: Pressure on yields in all Paris sub-markets
Dynamic demand and competition maintain pressure on yields in all sub-markets of the Paris region Source: JLL 16
Slide 17: Grand Paris developing markets: key attractiveness fields
Grand Paris developing markets cumulate deep changes in the key attractiveness fields Transports 3 levers of attractivity for corporate and individuals: Business environment with sufficient office density Market depth and visibility for both corporate and investors Size and density Market capacity t
Slide 18: North-West of Paris Region shows strongest construction dynamism
The North-West of Paris Region shows the strongest dynamism in construction Projects under construction available to date (completions within 3 years) In 000’s sqm 18 Source : JLL
Slide 19: Nanterre Les Terrasses is developing
Nanterre Les Terrasses is developing supported by large urban redevelopments and new transports Future office pipeline Density of rental transactions Rents level Nanterre Université Nanterre Université Nanterre La Folie Nanterre La Folie Nanterre Université Nanterre La Folie Nanterre - Les Terrasses
Slide 20: The North of Paris benefits from transformational projects
The North of Paris benefits from transformational projects, short-term improvement in public transports and the 2024 Olympics Future office pipeline Density of rental transactions Rents level Strengthening of a large office market in the North of 3 offices districts clearly identified: Saint-Ouen, S
Slide 21: What trends outside the Paris Region?
What trends outside the Paris Region ? Sources : JLL/ImmoStat 21
Slide 22: Office markets in main regional cities steadily growing
Office markets in the main cities in region are steadily growing Perimeter : Lyon, Lille, Aix-Marseille, Toulouse, Bordeaux, Nantes, Nice-Sophia Sources : JLL 22 Source: Clerville, DBX Conseil, JLL, Locopro, Tourny Meyer Sources observatoires : CECIM, OBM, OIEB, OTIE
Slide 23: Lyon: first office market outside Paris
Lyon has reached a new threshold in 2019 and firmly stands as the first office market outside Paris… Office take-up Vacancy rate ~370,000 sqm (end 2019) vs 331,700 sqm in 2018 4.1% (Q3 2019) Prime rents (€ /sqm/year) Prime yields 350 € €335 €300 300 € 250 € 3.70% (Q3 2019) 200 € €154 €159 150 € vs 3
Slide 24: Marseille: limited quality supply, focus on EuroMed
… whereas Marseille is struggling with limited quality supply and a strong focus of demand on the iconic EuroMed district Office take-up Vacancy rate ~125,000 sqm (end 2019) vs 111,700 sqm in 2018 4.4% (Q2 2019) Prime rents (€/sqm/year) Prime yields 4.50% (Q2 2019) vs 4.75% (end 2017) H1 2019 Source
Slide 25: JLL copyright notice
© 2019 Jones Lang LaSalle IP, Inc. Tous droits réservés.
Slide 26: 3. Office Investment: Recycling Capital
PARK VIEW PROJECT – TÊTE D’OR AREA (Lyon, Rhône) 3. OFFICE INVESTMENT Recycling capital! INVESTOR DAY – MONDAY, NOVEMBER 25, 2019 I 26
Slide 27: Dynamic Asset Rotation in Office Portfolio Since 2015
3. OFFICE INVESTMENT: RECYCLING CAPITAL! DYNAMIC ASSET ROTATION IN THE OFFICE INVESTMENT PORTFOLIO SINCE 2015 €2.9bn in cumulative disposals since 2015, Disposals completed on average 12.3% fully reinvested in the portfolio above appraised value 4,0 9,5 Net cumulative investments and portfolio valua
Slide 28: Portfolio Repositioned, Value Creation Delivered
3. OFFICE INVESTMENT: RECYCLING CAPITAL! PORTFOLIO REPOSITIONED, VALUE CREATION DELIVERED December 2015 June 2019 (1) Other large Other large French cities French cities 1% 9% Paris region Paris 13% excl. Paris Paris region Paris 22% 20% excl. Paris Continuous improvement 12% in asset quality and
Slide 29: Development: A Key Contributor to Value Creation
3. OFFICE INVESTMENT: RECYCLING CAPITAL! DEVELOPMENT: A KEY CONTRIBUTOR TO VALUE CREATION (60%) 16 projects completed (5) since 2015 (~260,000 sq.m) Investment amount on completion €1.2bn Value creation: €0.5bn (37% of the invested amount) Fair value on completion (1) (2) €1.7bn YoC (3) 6.5% Attract
Slide 30: 2019 Completions: ~€180M in Additional Value Creation
3. OFFICE INVESTMENT: RECYCLING CAPITAL! 2019 COMPLETIONS: ~€180M (1) IN ADDITIONAL VALUE CREATION Spring A Le Castel 3 completions in Q4 (5) Completed Nanterre Completed Marseille Completed • Eko Active (Marseille) in Q1 2019 in Q1 2019 in Q4 2019 • Financial occupancy • Financial occupancy • Monac
Slide 31: A Growing 2019-2024 Development Pipeline
3. OFFICE INVESTMENT: RECYCLING CAPITAL! A GROWING 2019‐2024 DEVELOPMENT PIPELINE Projects started Projects not committed Total pipeline Number of projects 13 6 19 Investment amount (1) €1.4bn €0.9bn €2.3bn Floor area 244,000 sq.m 145,000 sq.m 389,000 sq.m Expected rental income €89m €56m €144m (ann
Slide 32: Generating Strong Cash Flows: €144M of Future Rental Income
3. OFFICE INVESTMENT: RECYCLING CAPITAL! … GENERATING STRONG CASH FLOWS: €144M OF FUTURE RENTAL INCOME Expected additional rental income (headline, annualised, in €m) Pre‐let space for 2019‐2020: 70% €84m €37m €18m €25m €7m €7m €44m in additional rental income €5m expected in 2019–2020 2019 2020 202
Slide 33: Value Creation: Unlocking Value from a Car Park
3. OFFICE INVESTMENT: RECYCLING CAPITAL! VALUE CREATION: UNLOCKING VALUE FROM A CAR PARK (1/4) Pont de Flandre project (B007) Cost: €39m Construction work Q1 2017 Q3 2017 Q1 2018 Q4 2019 Off‐plan lease Building Construction start Completion signed with URSSAF permit URSSAF moves in and building perm
Slide 34: Value Creation: A Speculative Off-Plan Development
3. OFFICE INVESTMENT: RECYCLING CAPITAL! VALUE CREATION: A SPECULATIVE OFF‐PLAN DEVELOPMENT (2/4) Marseille Euromed project (Eko Active) Cost: €30m Construction work Q1 2018 Q4 2019 Construction start Completion Arrival of the first tenants 8,300 sq.m of office space in Marseille, Euromed Public
Slide 35: Value Creation: A Refurbishment Project
3. OFFICE INVESTMENT: RECYCLING CAPITAL! VALUE CREATION: A REFURBISHMENT PROJECT (3/4) Nanterre‐Préfecture project (Fontanot) Cost: €108m Construction work Q3 2017 Q3 2017 Q1 2019 Q4 2020 Building Off‐plan lease Departure of Completion permit signed the last tenants Groupama applied for with Groupam
Slide 36: Value Creation: Demolition & Reconstruction
3. OFFICE INVESTMENT: RECYCLING CAPITAL! VALUE CREATION: DEMOLITION & RECONSTRUCTION (4/4) Lyon project (Park View) Cost: €81m Demolition Construction 9,000 sq.m 22,980 sq.m Q3 2016 Q1 2018 Q3 2020 Departure of Construction start Completion the last tenant 22,980 sq.m of office space on the doorst
Slide 37: Recap: Asset Rotation and Development Pipeline
3. OFFICE INVESTMENT: RECYCLING CAPITAL! RECAP OUR STRATEGY: ASSET ROTATION AND DEVELOPMENT PIPELINE DELIVERING AN ATTRACTIVE TSR A €2.3bn development pipeline, €1.6bn including €1.4m for started projects Yield on Cost for started projects stands at 6.4% of disposals in 2018–2019 (+11.2% above appra
Slide 38: 4. CSR: Focus on Low Carbon
LA CARTOUCHERIE (Toulouse, Haute‐Garonne) 4. CSR Focus on low carbon INVESTOR DAY – MONDAY, NOVEMBER 25, 2019 I 38
Slide 39: 5 High-Priority CSR Issues
4. CSR – FOCUS ON LOW CARBON 5 HIGH‐PRIORITY ISSUES TO ADDRESS THE PLANET’S ENVIRONMENTAL AND SOCIAL CHALLENGES 2019 priority: low carbon Impact on climate change Scarcity of Preserving resources and biodiversity Icade’s circular economy 5 CSR priority issues Territorial Employee cohesion and engage
Slide 40: Strengthened Low-Carbon Commitments
4. CSR – FOCUS ON LOW CARBON STRENGTHENED LOW‐CARBON COMMITMENTS OBJECTIVES Office Investment -45% in CO2 intensity between 2015 and 2025 Reviewing the calculation method meeting the highest standards Development Defining new targets consistent with 100% of new offices > 5,000 sq.m and an ambitious
Slide 41: Office Investment Aligned with a Nearly 1.5°C Pathway
4. CSR – FOCUS ON LOW CARBON OFFICE INVESTMENT DIVISION ALIGNED WITH A “NEARLY 1.5°C” PATHWAY Target: -45% in CO2 intensity between 2015 and 2025 2016 Carbon neutrality target set in 2019 (in kg CO2/sq.m/year) 25 An attainable pathway 20 by means of a robust organisation, 15 modelling tools and Icad
Slide 42: Main Carbon Reduction Methods Identified
4. CSR – FOCUS ON LOW CARBON MAIN CARBON REDUCTION METHODS IDENTIFIED Office Investment Development Disposals and Low‐carbon Reuse Parking Major Renovation acquisitions Development materials optimisation renovation pipeline Methods Energy Changes in national Improved Improved Energy switch emission
Slide 43: Concrete Achievements in 2019 Across Three Business Lines
4. CSR – FOCUS ON LOW CARBON CONCRETE ACHIEVEMENTS IN 2019 ACROSS OUR THREE BUSINESS LINES HQE certification BREEAM certification Labels Office Investment Factor E – Bordeaux Excellent Very good Floor area: 10,922 sq.m ‐ Gambetta – Paris, 20th district Excellent Very good Floor area: 20,033 sq.m Hea
Slide 44: Icade Involved in Regulatory Discussions
4. CSR – FOCUS ON LOW CARBON ICADE INVOLVED IN REGULATORY DISCUSSIONS Icade’s involvement in the discussions Icade’s position Buildings’ energy and carbon performance Property Investment Divisions: Decree relating to Icade involved in testing the E+C‐ label with the energy renovation of commerci
Slide 45: Policy Recognised by Non-Financial Rating Agencies
4. CSR – FOCUS ON LOW CARBON A POLICY RECOGNISED BY NON‐FINANCIAL RATING AGENCIES Sector leader of listed diversified companies in Western Europe 2 Gold Awards for the quality Score of 84/100 of financial and non‐financial reporting A- rating In the top 18% of leading companies worldwide In the top
Slide 46: Recap
4. CSR – FOCUS ON LOW CARBON RECAP Achievements Low carbon: that make us confident at the core of our CSR strategy in our ability to fulfil our commitments Strong practical involvement in Commitments and initiatives discussions on new standards on all of our CSR issues: in order to promote biodivers
Slide 47: 5. Development: New Growth Ambitions
QUAI 8.2, BUILDING E (Bordeaux, Gironde) 5. DEVELOPMENT New growth ambitions INVESTOR DAY – MONDAY, NOVEMBER 25, 2019 I 47
Slide 48: Underlying Megatrends
5. PROPERTY DEVELOPMENT: NEW GROWTH AMBITIONS UNDERLYING MEGATRENDS... Increasing importance of metropolitan Demographic growth, areas Climate migration flows and change ageing population Digitalisation Growing circular economy ... impacting our property development business INVESTOR DAY – MONDAY, N
Slide 49: Market Insight: Strong Demand, Increasing Constraints
5. PROPERTY DEVELOPMENT: NEW GROWTH AMBITIONS MARKET INSIGHT: STRONG DEMAND, INCREASING CONSTRAINTS A more challenging environment Intensified competition for land Sharp rise in construction costs Decrease in the number of building permits issued and still significant third‐party objections re
Slide 50: Further Downturn in New Housing Supply
5. PROPERTY DEVELOPMENT: NEW GROWTH AMBITIONS FURTHER DOWNTURN IN NEW HOUSING SUPPLY New housing supply and new housing orders in the rolling 12 months to the end of Q3 2019 -0.3% Stock of homes 140 000 130,283 129,330 6 available for sale at quarter end 129,713 120 000 107,739 5 100 000 4.1 -17.3%
Slide 51: Sale Prices and Construction Costs: Strong Correlation
5. PROPERTY DEVELOPMENT: NEW GROWTH AMBITIONS SALE PRICES AND CONSTRUCTION COSTS: STRONG CORRELATION Indices of construction costs and prices Apartment sale price (1) in Q1 2019 In €/sq.m Index rebased to 100 in 2015 110,0 4 300 4,259 105,0 4 200 100,0 4 100 4,056 95,0 4 000 90,0 3 900 85,0 3 800 80
Slide 52: Icade Promotion's Market Positioning
5. PROPERTY DEVELOPMENT: NEW GROWTH AMBITIONS ICADE PROMOTION’S MARKET POSITIONING Decline in revenue in 2019‐2020, 1 Our strategic positioning 3 expected to rise again by 2021 A nationwide player across all 3 segments–Residential, Icade’s Property Development revenue Office and Medical‐Social–wit
Slide 53: Measures Implemented as Part of the Roadmap
5. PROPERTY DEVELOPMENT: NEW GROWTH AMBITIONS MEASURES IMPLEMENTED AS PART OF THE ROADMAP Operational Evolving products Marketing Brand policy, organisation and services strategy Innovation and CSR An evolving organisational Residential: Increasingly digital and BtoB & BtoC: increase in structure
Slide 54: Office Development: Backlog
5. PROPERTY DEVELOPMENT: NEW GROWTH AMBITIONS OFFICE DEVELOPMENT: BACKLOG (1) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q1 2021 Q2 2021 Toulouse Villejuif Toulouse Miramont de Guyenne Toulouse Saintes Livry‐Gargan PAC FACILITY LEBON LAMARTINE DAURAT NURSING HOME LATECOERE PAC FACILITY PAC FACILITY 5,6
Slide 55: Potential Revenue of €7.4bn in the Medium Term
5. PROPERTY DEVELOPMENT: NEW GROWTH AMBITIONS POTENTIAL REVENUE OF €7.4BN IN THE MEDIUM TERM €5.4bn for the residential segment: €2.0bn for the office segment 20,000 homes (1) and 450,000 sq.m (1) Backlog Projects won Backlog €0.2bn or other options €1.1bn €1.6bn > 6,500 units Land portfolio Public,
Slide 56: Recap: Outlook for 2024
5. PROPERTY DEVELOPMENT: NEW GROWTH AMBITIONS RECAP: OUTLOOK FOR 2024 2 economic goals 4 business performance indicators 1 Growth in the residential development business 1 Economic revenue: €1.4bn in 2024, Target sales of c. 6,000 homes including €1,000m for Residential, €350m for Office and €50m fo
Slide 57: 6. Healthcare Investment
SANTÉ ATLANTIQUE (Saint‐Herblain, Nantes) ELSAN 6. HEALTHCARE INVESTMENT Ahead of schedule on our plan INVESTOR DAY – MONDAY, NOVEMBER 25, 2019 I 57
Slide 58: Strategy Implementation: Ahead of Schedule
6. HEALTHCARE INVESTMENT: AHEAD OF SCHEDULE ON OUR PLAN STRATEGY IMPLEMENTATION: AHEAD OF SCHEDULE ON OUR ROADMAP Consolidation of Icade Santé’s Very robust market‐leading position in acute care leasing activity Acquisition of the Confluent private hospital for €194m Gross rental income: +10.5% in Q
Slide 59: Market Conditions Very Favourable in France and Abroad
6. HEALTHCARE INVESTMENT: AHEAD OF SCHEDULE ON OUR PLAN IN MARKET CONDITIONS WHICH CONTINUE TO BE VERY FAVOURABLE BOTH IN FRANCE AND ABROAD Fundamentals remain The healthcare real estate market attractive remains active in France 2019 expected investment volume: Sustained growth in healthcare expend
Slide 60: An Outstanding Portfolio Worth Over €5bn
6. HEALTHCARE INVESTMENT: AHEAD OF SCHEDULE ON OUR PLAN AN OUTSTANDING PORTFOLIO CURRENTLY WORTH OVER €5bn The Healthcare Investment Division currently owns 128 healthcare facilities in France Rapid portfolio growth Well‐respected, high‐quality facilities Le Point’s ranking of the best 80 acute care
Slide 61: Strengthening Relationships with Operators and Diversification
6. HEALTHCARE INVESTMENT: AHEAD OF SCHEDULE ON OUR PLAN FURTHER STRENGTHENING OF RELATIONSHIPS WITH OPERATORS AND ONGOING DIVERSIFICATION Atlantique polyclinic, Saint Herblain ‐ Elsan Reflet de Loire nursing home, Côte Normande PAC facility, Ifs (Caen) ‐ Korian La Chapelle Saint‐Mesmin (Orléans) ‐ K
Slide 62: Long-Term Partnerships Create Value
6. HEALTHCARE INVESTMENT: AHEAD OF SCHEDULE ON OUR PLAN LONG‐TERM PARTNERSHIPS CREATE VALUE A development pipeline of nearly €270m, representing close to €15m in additional rental income by 2022 Construction of the new Greater Start of construction on the Completion of the refurbishment Start of two
Slide 63: International Expansion: On the Way to 2022 Target
6. HEALTHCARE INVESTMENT: AHEAD OF SCHEDULE ON OUR PLAN INTERNATIONAL EXPANSION: WELL ON THE WAY TO OUR 2022 TARGET Off‐plan acquisition Acquisition of Acquisition of 5 nursing Acquisition of of 7 nursing homes 1 nursing home in Jesolo homes in October 2019 19 long‐term care in October 2018 in Febru
Slide 64: First Acquisition in Germany with a Valued Partner
6. HEALTHCARE INVESTMENT: AHEAD OF SCHEDULE ON OUR PLAN FIRST ACQUISITION IN GERMANY WITH A VALUED PARTNER Acquisition of 19 facilities for €266m Germany, the biggest healthcare EMVIA Living, a major real estate market in Europe player in the sector Location of the 19 facilities acquired by the Heal
Slide 65: Very Favourable Financing Conditions
6. HEALTHCARE INVESTMENT: AHEAD OF SCHEDULE ON OUR PLAN VERY FAVOURABLE FINANCING CONDITIONS… Icade Santé issues its first bond Investment grade rating Benchmark size Long‐term Pricing Fixed rate: BBB+, 0.94% stable outlook €500m 10 years Annual coupon: Standard & Poor’s 0.875% Very well received by
Slide 66: Recap: 2019-2022 Strategic Plan Reaffirmed
6. HEALTHCARE INVESTMENT: AHEAD OF SCHEDULE ON OUR PLAN RECAP 2019‐2022 STRATEGIC PLAN REAFFIRMED The Healthcare Investment Division is on track to meet its goals Objective: to become the leading healthcare REIT in Europe Leadership position in France further strengthened: close to €430m invested in
Slide 67: 7. Conclusion
PORTES DE PARIS BUSINESS PARK (Saint‐Denis, Aubervilliers, Seine‐Saint‐Denis) 7. CONCLUSION INVESTOR DAY – MONDAY, NOVEMBER 25, 2019 I 67
Slide 68: 2019 Priorities Are Being Met
7. CONCLUSION 2019 PRIORITIES ARE BEING MET Achieved as of 11/25/19 Office development pipeline €1.1bn in disposals 1 70% of the investments made dedicated and “opportunistic” disposals of core offices to the pipeline International expansion of the Healthcare Further investments in Italy and 2 I
Slide 69: Rigorous Financial Management of Our Strategic Plan
7. CONCLUSION RIGOROUS FINANCIAL MANAGEMENT OF OUR STRATEGIC PLAN On the asset Attractive disposals (~4.3% on average) side + Capital reallocated Proceeds reinvested in offices (>6%)… and healthcare assets (>5%) to higher‐yielding = assets Disciplined use of our capital On the liability Optimised
Slide 70: Well Positioned to Achieve 2022 Objectives
7. CONCLUSION AFTER THE PLAN’S SUCCESSFUL FIRST YEAR, ICADE IS WELL POSITIONED TO ACHIEVE ITS 2022 OBJECTIVES Around €5bn in investments over 4 years Active asset rotation: €1.2 bn i.e. c. 25% invested to date volume of disposals doubled €1.1bn i.e. c. 40% of the targets Healthcare Investment €2.5bn
Slide 71: 2019 Guidance Raised
7. CONCLUSION 2019 GUIDANCE RAISED Initial guidance New guidance NCCF (in € per share) As a reminder, impact of 2019 disposals: c. ‐4% Stable NCCF (in € per share) excluding the impact of 2019 disposals Stable including the impact of 2019 disposals 2019 dividend: c. +4.5% (payout ratio of 90% and di
Slide 72: Discipline and Focus on Implementing the Plan
ORIGINE (Nanterre, Hauts‐de‐Seine) Discipline and focus on implementing the plan INVESTOR DAY – MONDAY, NOVEMBER 25, 2019 I 72
Slide 73: Q&A
Q&A INVESTOR DAY – MONDAY, NOVEMBER 25, 2019 I 73
Slide 74: Investor Day Agenda
INVESTOR DAY AGENDA 10:00 a.m. ‐ 12:30 p.m. Plenary session: Investor Presentation 12:30 p.m. Buffet lunch with Executive Committee members present 1:30 p.m. Departure for Nanterre: Marketing Suite on the Origine construction site 2:15 p.m. Presence and growth of the Office Property Investment and P
Slide 75: Appendices
APPENDICES INVESTOR DAY – MONDAY, NOVEMBER 25, 2019 I 75
Slide 76: Attractiveness of the Property Investment Market
APPENDICES – THE FRENCH OFFICE MARKET ATTRACTIVENESS OF THE PROPERTY INVESTMENT MARKET A dynamic property investment market (excluding residential) Converging yields 40 8% 35 34 expected 7% 35 31 32 30 28 27 6% 26 Avg. outside 14,3 5% Paris region 4.6% 25 Logistics 4.2% 19 4% Inner Ring 3.8% 20 9,6
Slide 77: Growing Metropolitan Areas Outside the Paris Region
APPENDICES – THE OFFICE MARKET – MARKET UPDATE GROWING METROPOLITAN AREAS OUTSIDE THE PARIS REGION Leasing activity outside the Paris region Dynamic Deeper markets resilient to the slowdown prime rents thanks to high‐quality supply 3,0 Prime rent Change from Leasing activity vs. 5‐year % of vacant T
Slide 78: Market Opportunities Outside Paris CBD
APPENDICES – OFFICE INVESTMENT MARKET OPPORTUNITIES OUTSIDE PARIS CBD Western Paris CBD La Défense Crescent Inner Ring Outer Ring Icade’s Office Investment portfolio Physical vacancy rate 1.3% ▼ 4.9% ≈ 10.0% ▼ 6.3% ▼ 5.4% ≈ in the Paris region as of September 30, 2019 (end of Sept. 2019 and YoY chan
Slide 79: Nanterre and La Défense: Major Transport Infrastructure
APPENDICES – THE OFFICE MARKET – MARKET UPDATE NANTERRE AND LA DÉFENSE, THE FIRST AREAS TO BENEFIT FROM MAJOR TRANSPORT INFRASTRUCTURE Nanterre—a deep, highly Already the best option Eole, the 1st large‐scale public transport project segmented office market in terms of accessibility soon to be compl
Slide 80: Les Terrasses de Nanterre: An Increasingly Attractive Area
APPENDICES – THE OFFICE MARKET – MARKET UPDATE LES TERRASSES DE NANTERRE: AN INCREASINGLY ATTRACTIVE AREA RIGHT NEXT TO LA DÉFENSE A key market in the Peri‐Défense area Attractive rents compared to Paris and La Défense Take‐up in Nanterre since 2001 Average headline rent for transactions for new or
Slide 81: Lyon: A Record-Breaking, Fluid Market
APPENDICES – THE OFFICE MARKET – MARKET UPDATE LYON—A RECORD‐BREAKING, FLUID MARKET 414k sq.m Leasing activity in Lyon taken up in the rolling 12 months to the end of Q3 2019 after a record 2018 with 310k sq.m and 280k sq.m on average over 5 years A fluid market % of 1‐year supply that is new 49% €1
Slide 82: Euroméditerranée, Heart of Marseille Office Market
APPENDICES – THE OFFICE MARKET – MARKET UPDATE EUROMÉDITERRANÉE, IN THE HEART OF THE MARSEILLE OFFICE MARKET Leasing activity in Marseille 700,000 sq.m of offices in Euroméditerranée, which is recent compared to Marseille’s overall ageing property stock of 2.4 million sq.m ≈126k sq.m taken up/year o
Slide 83: Icade's Office Portfolio at the Heart of Greater Paris
APPENDICES – OFFICE INVESTMENT ICADE’S OFFICE PORTFOLIO AT THE HEART OF THE GREATER PARIS AREA Paris region portfolio 1,568,207 sq.m (2) Portfolio outside the Paris region 17 €7,408m (1) TGV 197,164 sq.m (2) PORTES DE PARIS 334,240 sq.m €754m (1) SAINT‐DENIS 62,330 sq.m GENEVILLIERS Go Spring – Nant
Slide 84: Projects in the Pipeline as of 09/30/2019
APPENDICES – DEVELOPMENT PIPELINE FOR THE OFFICE INVESTMENT DIVISION PROJECTS IN THE PIPELINE AS OF 09/30/2019 Remaining Estimated Rental to be invested Type Property date of Floor area income Cost (2) > Q3 2019 (1) Project name Location of works type completion (sq.m) (€m) YoC (€m) (€m) Pre‐let B00
Slide 85: Solid Fundamentals for Healthcare Real Estate
APPENDICES – HEALTHCARE INVESTMENT SOLID FUNDAMENTALS FOR HEALTHCARE REAL ESTATE Current health expenditure growing steadily in France (consumption of care and medical goods (CSBM) + other costs) 7% 6% Health expenditure rising constantly 5% 4% Explanatory factors 4% 4% 4% Ageing population 3% 3% 2%
Slide 86: Conditions Favourable to Halt Decline of Medical Fees
APPENDICES – HEALTHCARE INVESTMENT CONDITIONS ARE FAVOURABLE TO HALT THE DECLINE OF MEDICAL FEES Average private medical fees since 2008 (private acute care) Social security in surplus for the 1st time since 2001 (€0.5bn) Strong recovery of the “sickness” division (deficit of €0.8bn vs. €4.9bn in 20
Slide 87: Attractive Yields
APPENDICES – HEALTHCARE INVESTMENT ATTRACTIVE YIELDS An attractive risk premium in France Prime yield compression stronger in Germany Stable prime yields in H1 2019 in healthcare Compression of about 250 bps in 6 years Attractive yield with a risk premium of over 125 bps with the German 10‐yea
Slide 88: A Steadily Growing Development Pipeline
APPENDICES – HEALTHCARE INVESTMENT A STEADILY GROWING DEVELOPMENT PIPELINE Number of Total Remaining to beds and investment (1) be invested Yield on Type of works Operator City places (€m) (€m) cost (2) Completion Pre‐let PROJECTS STARTED 2,288 254.8 205.5 5.7% 100% Italy (Piedmont, 7 nursing homes
Slide 89: Portfolio Mix
APPENDICES – OFFICE INVESTMENT PORTFOLIO MIX Office Investment Offices Healthcare Investment France Business parks Europe Office and Healthcare Investment Other (on a Group share basis) (in €m) Product mix as of Product mix as of Product mix as of 12/31/2018 12/31/2019 12/31/2022 Healthcare Healthca