Icade Sa · EURONEXT:ICAD
Icade Sa — Debt Investor Presentation (September 2016)
68 slides from Icade Sa's debt investor presentation, Sep 29, 2016
Slide 1: Black Swans (Strasbourg)
BLACK SWANS (STRASBOURG, 67)
Slide 2: Disclaimer
Credit Investor Presentation- September 29, 2016 2 This presentation is not an offer or an invitation to sell or exchange securities, or a recommendation to subscribe, buy or sell Icade securities. Distribution of this document may be restricted in certain countries by legislation or regulations. As
Slide 3: A French listed real estate company (SIIC)
Credit Investor Presentation- September 29, 2016 3 A french listed real estate company (SIIC, french reit status)* Market Capitalization : 4,718,659,212.62 € Free Float : 42% SHAREHOLDING STRUCTURE A strong shareholding structure First shareholder : the french public financial institution : Caisse d
Slide 4: Thémis - Clichy-Batignolles development zone
Thémis - Clichy-Batignolles development zone (Paris, 17th district)
Slide 5: Group business divisions overview
Credit Investor Presentation- September 29, 2016 5 PROPERTY INVESTMENT % OFFICES € bn PORTFOLIO(3) DEVELOPMENT Thanks to Icade Promotion, m sq.m the Commercial Property PROPERTY LAND BANK AND Investment Division’s land PROJECTS UNDER DEVELOPMENT bank can be optimised more quickly % OF GROUP EQUITY %
Slide 6: Development projects
Credit Investor Presentation- September 29, 2016 6 sq.m (Saint-Denis, Seine-St-Denis) Not committed sq.m Rent: € m Completion: (Nanterre, Hauts-de-Seine) sq.m Rent: € m sq.m Completion: from construction start sq.m sq.m (Paris, 19th district) sq.m Rent: € m Completion: (Issy-les-Moulineaux, Hauts-de
Slide 7: Healthcare property investment: solid credit features
Credit Investor Presentation- September 29, 2016 7 Solid credit features Strong anchor tenants (major players in France such as Ramsay Générale de Santé and Elsan) Long term leases : 12 years Occupancy rate: 100% A core asset for Icade’s strategy (31% of NCCF*) Key contributor to group cash-flow¹ (2
Slide 8: Property Development: 5th largest player in France
Credit Investor Presentation- September 29, 2016 8 (€M) Property Development: 5th largest player in France (1) 1,508 1,508 H1 2016 revenues: €402m (2) 179,4 Services & Project Owner % Commercial Property Development 249,7 228,6 Assistance order book % Residential Property Development 455,7 Publi
Slide 9: H1 2016 key figures
Credit Investor Presentation- September 29, 2016 9 % % % % € € € bn (1) € (€ in H1 2015) (€ in H1 2015) (€ bn in December 2015) (€ in December 2015) EPRA Earnings from Group NCCF Portfolio of the Property EPRA triple NAV per share Property Investment per share Investment Division (Group share fully
Slide 10: Market environment
Credit Investor Presentation- September 29, 2016 10 French Commercial Property Investment An active and attractive market Residential market: the rebound is confirmed market: growth is confirmed A mature market with large deals + 17.9% yoy change in units put up for sale In H1 2016, €8.2bn, i.e. + 1
Slide 11: PNE Cargo (Paris, 19th district)
PNE Cargo (Paris, 19th district)
Slide 12: Commercial Property Investment: robust leasing activity
Credit Investor Presentation- September 29, 2016 12 Robust leasing activity Renewal of leases for a total surface area of sq.m, rent reductions ( % -€ m) New leases: sq.m (like-for-like) (€ m additional rental income) Exits: sq.m (like-for-like), (- € m rental income) Average remaining lease term in
Slide 13: Commercial development projects
Credit Investor Presentation- September 29, 2016 13 Floor area: sq.m – Rental income: € m Floor area: sq.m – Rental income: M€ Investment incl. land acquisition: € m – YoC: % Investment incl. land acquisition: € m – YoC: %
Slide 14: Healthcare Property Investment: portfolio still growing
Credit Investor Presentation- September 29, 2016 14 Portfolio still growing Acquisition of a portfolio operated by Ramsay Générale de Santé comprising healthcare facilities (FRC / MHE) for € m in June 2016 Net rental income up % compared to June 30, 2015 ( % like-for-like change) projects under deve
Slide 15: Property Development: backlog is growing
Credit Investor Presentation- September 29, 2016 15 Backlog is growing: € m( % since 12/31/2015) Increase in backlog for Residential Property Development to € m( %) (higher number of reservations and sales) Stable backlog for Commercial Property/Public and Healthcare Amenities Development and Servic
Slide 16: Occupancy rate and lease term
Credit Investor Presentation- September 29, 2016 16 12/31/2014 12/31/2015 06/30/2016 12/31/2014 12/31/2015 06/30/2016 OFFICES 80.3% 90.2% 93.4% OFFICES 4.3y 5.7y 6.2y BUSINESS PARKS 83.1% 84.1% 83.2% BUSINESS PARKS 3.1y 2.9y 2.9y COMMERCIAL PROPERTY COMMERCIAL PROPERTY % % % INVESTMENT INVESTMENT HE
Slide 17: Portfolio value and NAV increase
Credit Investor Presentation- September 29, 2016 17 Portfolio value: increase across all asset classes ( %) NAV growing by % as early as in H1 (after dividend payment) EPRA Earnings from Property Investment has risen appreciably ( %) Property Development: H1 2016 profitability impacted by revenue se
Slide 18: Property Investment results
Credit Investor Presentation- September 29, 2016 18 06/30/2016 06/30/2015(1) EPRA EARNINGS EPRA EARNINGS FROM NON- FROM NON- Results for Commercial PROPERTY RECURRING TOTAL PROPERTY RECURRING TOTAL and Healthcare Property Investment (€m) INVESTMENT CHG VS. H1 2015 ITEMS IFRS INVESTMENT ITEMS IFRS GR
Slide 19: Rental income
Credit Investor Presentation- September 29, 2016 19 € M % Net rental income up % to € m – Gross rental income up % to € m Commercial Property Investment: Gross rental income down % to € m Impact of disposals made in 2014-2015 or redevelopments (not offset by acquisitions): € m Like-for-like stab
Slide 20: Property Development results
Credit Investor Presentation- September 29, 2016 20 06/30/2016 06/30/2015 CHANGE VS. H1 2015 NON- NON- (in €m) CURRENT CURRENT CURRENT TOTAL CURRENT CURRENT TOTAL ECONOMIC REVENUE (1) (9.3%) 442.6 - 442.6 ECONOMIC EBITDA (1) (50.1%) 16.5 - 16.5 ECONOMIC OPERATING PROFIT/(LOSS) (1) (52.0%) 17.5 (3.5)
Slide 21: Group net current cash flow
Credit Investor Presentation- September 29, 2016 21 % (a) (€ per share) % + 0.13 0.21 (0.08) 0.13 (0.02) 0.61 0.48 Property Development and Services Healthcare Property Investment Commercial Property Investment 1.26 1.24 06/30/2015 COMMERCIAL HEALTHCARE PROPERTY 06/30/2016 PROPERTY PROPERTY DEVELOPM
Slide 22: EPRA Triple NAV
Credit Investor Presentation- September 29, 2016 22 (€ per share) EPRA TRIPLE NAV % (2) + 5.3 (0.1) (1) (0.6) + 0.2 (3.7) 12/31/2015 ANR EPRA 2015 Dividende CONSOLIDATED Résultat CHANGE IN Variation CHANGE VariationIN CHANGE IN Variation 06/30/2016 ANR EPRA DIVIDEND NET PROFIT CAPITAL GAINS CAPITAL
Slide 23: Carré de Soie (Villeurbanne)
Carré de Soie (Villeurbanne, Rhône) Carré de Soie (Villeurbanne, Rhône)
Slide 24: Financing: increasing average maturity
Credit Investor Presentation- September 29, 2016 24 New bond issue on May 31, 2016: Extended average INCREASING AVERAGE € m with a -year maturity and a coupon of % debt maturity: year MATURITY Refinancing of a mortgage loan on June 22, 2016: € m for a term of 20 years, at a fixed rate of % Reduced L
Slide 25: Total debt as of 06/30/2016
Credit Investor Presentation- September 29, 2016 25 TOTAL DEBT TOTAL UNDRAWN DEBT CASH AS OF 30/06/2016 AS OF 30/06/2016 AS OF 30/06/2016 € m € m(1) € m % % % % % % % Bank debt ( %) Disintermediated debt ( %) Bank loans NEU CP Mortgages and real estate finance leases Private placements Other Bonds l
Slide 26: Hedging profile
Credit Investor Presentation- September 29, 2016 26 After allocation of intra-group financing, almost 100% of the Group’s debt is used by the Property Investment Division Hedging ratio : 97% (as of 06/30/2016) 2000 15% 1800 Swaps – fixed-rate payer 1600 24% 62% Interest rate options Cap 1400 Interes
Slide 27: LTV and interest coverage ratios
Credit Investor Presentation- September 29, 2016 27 EBITDA ICR “Bank” ICR % (1) 4.7 x 4.0 x 4.0 x 38.0% 3.4 x 4.0 x 37.5% % 36.9% 2.5 x (1) 12/31/2013 12/31/2014 12/31/2015 06/30/2016 2013 2014 2015 H1 2016 3.83% 4.7 3.07% 2.71% 4.6 4.5 % 31/12/2013 12/31/2013 31/12/2014 12/31/2014 31/12/2015 12/31/
Slide 28: Oxaya - Gerland (Lyon)
Oxaya - Gerland (Lyon, Rhône)
Slide 29: CSR objectives and recognition
Credit Investor Presentation- September 29, 2016 29 % % of properties Pilot project for the BBCA label (low-carbon building) in CO2 intensity and new construction between 2011 projects in positive Pilot project for the and 2020 biodiversity by 2020 Biodivercity certification 5th place in the GRESB r
Slide 30: Business parks disposal and action plan
Credit Investor Presentation- September 29, 2016 30 The disposal of all companies in the portfolio has been decided (sales at the latest in Q3 2016) Several projects are currently under development. Collaboration between the Project Owner Assistance and the Commercial Property Development teams in t
Slide 31: Strong momentum and outlook
Credit Investor Presentation- September 29, 2016 31 Strong momentum for Offices assets (completions, acquisitions) First effects from the action plan on Business Parks Further expansion of the Healthcare Property Investment Division Broadly stable results for the Property Development Division in 201
Slide 32: Return to a favourable cycle within 3 years
Credit Investor Presentation- September 29, 2016 32 (€BN) 2,0 1,4 (IN €BN) 1,3 1,2 0,5 Executive direction 1,2 assistance 1,1 % (1,5) 1,0 Commercial 0,9 0,8 Public and healthcare 0,7 amenities 0,6 Residential Portfolio Asset Asset Developement Development Portfolio 0,5 pipeline, value disposals acqu
Slide 33: Carré de Soie (Villeurbanne)
Carré de Soie (Villeurbanne, Rhône) Carré de Soie (Villeurbanne, Rhône)
Slide 34: Property Development projects
Credit Investor Presentation- September 29, 2016 34 (Paris, 17th district, Clichy - Batignolles) Construction start (Quint-Fonsegrives, Haute-Garonne) Completion (Aubervilliers, Seine-Saint-Denis) Construction start sq.m of offices Completed on Completion sq.m sq.m Rent: € m (Lyon – Gerland, Rhône)
Slide 35: Doramar (Montpellier)
Doramar (Montpellier, Hérault)
Slide 36: Innovation Hub
Credit Investor Presentation- September 29, 2016 36 pillars: the Hub, the start-ups, Hub projects community the industrial partnerships projects at the incubation stage industrial partnerships employees involved innovation library: CSR / innovation projects at the acceleration stage common database
Slide 37: Innovation and digital services
Credit Investor Presentation- September 29, 2016 37 Digital L’immobilier 3.0 Coach your Growth acculturation by Icade with Icade programme The Wind Tree Telemedicine Digital concierge in the Portes de booth at Icade’s services Paris Park head office Modular housing Telework solutions Smart waste pil
Slide 38: Work'up flexible office solutions
Credit Investor Presentation- September 29, 2016 38 Smart desk, an office space solution for mobile workers available to tenants in all our business parks Work’up, a flexible office space solution Designed to host large for very small businesses meetings and events, and A business incubator or SMEs
Slide 39: CSR roadmap
Credit Investor Presentation- September 29, 2016 39 % % of properties Long-term Strengthen our initiatives to promote Inclusion of CSR objectives in CO2 intensity and new construction customer for executives and managers local employment between 2011 projects in positive satisfaction starting in 201
Slide 40: CSR achievements
Credit Investor Presentation- September 29, 2016 40 Certified assets in the Offices portfolio: Biodiversity diagnoses performed systematically for projects in the development phase % Use of 3D digital modelling (BIM) in % (thousands of sq.m) of commercial projects in the Paris region 464 Start of th
Slide 41: IFRS results by segment
Credit Investor Presentation- September 29, 2016 41 COMMERCIAL PROPERTY HEALTHCARE PROPERTY PROPERTY INTERSEGMENT INVESTMENT INVESTMENT DEVELOPMENT TRANSACTIONS TOTAL (in €m) 06/30/2016 06/30/2015 06/30/2016 06/30/2015 06/30/2016 06/30/2015 06/30/2016 06/30/2015 06/30/2016 06/30/2015(1) REVENUE 203.
Slide 42: Consolidated income statement
Credit Investor Presentation- September 29, 2016 42 (in €m) 06/30/2016 06/30/2015(1) REVENUE 695.7 EBITDA 241.9 DEPRECIATION AND IMPAIRMENT NET OF INVESTMENT SUBSIDIES (135.5) CHARGES AND REVERSALS RELATED TO IMPAIRMENT OF TANGIBLE, FINANCIAL AND (91.7) OTHER CURRENT ASSETS PROFIT/(LOSS) FROM ASSET
Slide 43: Property Development H1 2016 results
Credit Investor Presentation- September 29, 2016 43 Economic revenues down % to € m A limited development pipeline in 2013/2014 Residential revenues down % (€ m), unfavourable base effect due to the Paris Nord Est project ( housing units, revenue of € m in 2015) Commercial revenues increased sharply
Slide 44: Rents, yields and financing costs
Credit Investor Presentation- September 29, 2016 44 (1) (1) (€bn) (in current € / sq.m / year, excluding tax and charges) 25 €750 € 20 Q4 15 Q3 € €550 10 € Q2 5 Q1 €350 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2010 2011 2012 2013 2014 2015 2016 2016 Prime West Central Pa
Slide 45: French commercial property investment market
Credit Investor Presentation- September 29, 2016 45 25 (€bn) H1 had positive results in terms of investment 20 in the French commercial property market Q4 In H1 2016, investments (€ bn) increased by % 15 Q3 compared to H1 2015 (Q2 2016 was very active with € bn) 10 Q2 A record number of transactions
Slide 46: Leasing: entries and exits
Credit Investor Presentation- September 29, 2016 46 Leases effective from 2016 signed with renowned companies (Paris, 19th district) sq.m leased to a leading company sq.m sq.m and sq.m and sq.m (La Défense, Hauts-de-Seine) of completed properties of disposals / redevelopments sq.m leased to PwC (Sai
Slide 47: Acquisitions and completions
Credit Investor Presentation- September 29, 2016 47 4 healthcare establishments leased to Ramsay Générale de Santé were acquired for € m (Aubervilliers) sq.m building completed on July 18, 2016 and fully leased to Veolia (Domont) € m investment in H1 2016 € m investment in H1 2016 Completion schedul
Slide 48: Lease expiry schedule
Credit Investor Presentation- September 29, 2016 48 € m € m Renewed leases represented sq.m in H1 2016, i.e. € m of rents extended for € m an additional years ( % discount) € m € m % of tenants who had a break option in 2016 actually exercised it (based on € m € m a volume of leases expiring in 2016
Slide 49: Optimisation potential
Credit Investor Presentation- September 29, 2016 49 Offices Business Parks Healthcare € m % % 12/31/2015 € m € m optimisation Offices 90.2% 93.4% potential € m Business Parks 84.1% 83.2% € m € m COMMERCIAL PROPERTY INVESTMENT % % HEALTHCARE % % PROPERTY INVESTMENT TOTAL PROPERTY % € m € m INVESTMENT
Slide 50: Key vacancy reduction assets
Credit Investor Presentation- September 29, 2016 50 FINANCIAL IMPROVEMENT IN TOTAL OCCUPANCY RATE OCCUPANCY RATE FROM POTENTIAL ASSETS LOCATION AREA AS OF JUNE 30, 2016 PROPERTY INVESTMENT RENTAL INCOME (1) EQHO TOWER La Défense Offices % pp € m PB5 TOWER La Défense Offices % pp € m AXE SEINE Nanter
Slide 51: Commercial portfolio value change
Credit Investor Presentation- September 29, 2016 51 (in €m) (in €m) + 104.4 + 71.4 + 13.8 + 24.8 (25) 12/31/2015 ASSET CONSTRUCTION LIKE-FOR-LIKE 06/30/2016 12/31/2015 CONSTRUCTION LIKE-FOR-LIKE 06/30/2016 DISPOSALS (2) WORK CHANGE WORK CHANGE AND OTHER (1) % % Notes: (1) After restatement o
Slide 52: Healthcare portfolio value change
Credit Investor Presentation- September 29, 2016 52 (in €m) % + 131.2 + 7.6% + 27 + 33.5 12/31/2015 ACQUISITIONS (1) CONSTRUCTION LIKE-FOR-LIKE 06/30/2016 WORK CHANGE . % Note: (1) Includes transfer duties and fees
Slide 53: Total portfolio value change
Credit Investor Presentation- September 29, 2016 53 % (in €m) + 242.1 + 124.2 + 33.5 (28.1) 12/31/2015 ASSET DISPOSALS (3) ACQUISITIONS (1) CONSTRUCTION WORK LIKE-FOR-LIKE 06/30/2016 AND OTHER (2) CHANGE . Notes: (1) Includes transfer duties and fees (2) After restatement of transfer duties and fees
Slide 54: Yield by asset class
Credit Investor Presentation- September 29, 2016 54 (1) 5.8% Offices + 2.9% 6.1% 8.4% Business Parks + 0.4% 8.6% 6.3% Healthcare + 7.6% 6.7% % TOTAL (2) % % Like-for-like change 06/30/2016 12/31/2015 Notes: (1) Annualised net rental income from leased space plus potential rental income from vacant s
Slide 55: Yield history
Credit Investor Presentation- September 29, 2016 55 8.6% 8.4% 7.9% 7.9% 7.6% 7.4% 7.4% 7.3% 7.2% 7.1% 6.9% 6.9% 6.9% 6.9% 6.8% 6.7% 6.7% 6.3% 6.1% 5.8% Offices Business Parks Healthcare TOTAL PROPERTY INVESTMENT 12/31/2012 12/31/2013 12/31/2014 12/31/2015 06/30/2016 Note: (1) Annualised net rental i
Slide 56: Commercial development projects
Credit Investor Presentation- September 29, 2016 56 REMAINING TOTAL GEOGRAPHIC FLOOR AREA INVESTMENT INVESTMENTS (1) YIELD ON PRE- PROJECT AREA (sq.m) (€m) (€m) COST COMPLETION LEASING Incl. TOTAL H2 2016 PROJECTS % % STARTED MILLÉNAIRE 4 BUSINESS PARK PARIS, 19th DISTRICT 24,500 24.6 24.6 H2 2016 1
Slide 57: Healthcare clinic market
Credit Investor Presentation- September 29, 2016 57 Increased concentration among private healthcare operators Groups such as Elsan, Ramsay Générale de Santé and Médipôle Partenaires have largely contributed to the ongoing reconfiguration (revenues in €m) of the clinic sector These national groups a
Slide 58: Icade Santé shareholders
Credit Investor Presentation- September 29, 2016 58 (% as at June 30, 2016) % Icade % % CNP % Cardif % Sogecap Predica As of June 30, 2016 % clinics including: MSO facilities (1) (4 under construction) FRC facilities (2) MHE facilities (3) Notes: (1) MSO: Medicine, Surgery, Obstetrics € bn % (2)
Slide 59: Healthcare tenants breakdown
Credit Investor Presentation- September 29, 2016 59 (as a % of total portfolio value) Elsan % Elsan Ramsay % Ramsay Générale de Santé Générale de Santé Capio % Capio Regional groups Regional groups % Médipôle Partenaires Médipôle Partenaires %
Slide 60: Healthcare strategy and asset types
Credit Investor Presentation- September 29, 2016 60 (in €m) + 232.2 Type of assets Icade Santé's strategy is focused on clinics 3 types of assets: Medicine, Surgery, Obstetrics + 47.8 Follow-up and Rehabilitation Care + 59.3 Mental Health Establishments Development strategy Nationwide presence Foste
Slide 61: Healthcare projects started
Credit Investor Presentation- September 29, 2016 61 NUMBER OF BEDS TOTAL AND OUTPATIENT REMAINING INVESTMENT INVESTMENTS (1) YIELD ON PRE- OPERATOR MUNICIPALITY PLACES (€m) (€m) COST COMPLETION LEASING TOTAL Incl. H2 2016 PROJECTS STARTED % DOMONT CLINIC CAPIO DOMONT 26 3.8 3.8 H2 2016 100% REIMS-BE
Slide 62: Commercial transactions
Credit Investor Presentation- September 29, 2016 62 € m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m Note : (1) Transactions registered or currently under preliminary sales agreement. Amounts excl. Taxes, based on proportionate consolidation
Slide 63: Residential market recovery
Credit Investor Presentation- September 29, 2016 63 Recovery is getting stronger in 2016 Professionals estimate the new-build housing market for 2016 at between and residential units Individual investors are predominant (Pinel incentive scheme, low interest rates) LOOK & LIKE (HERBLAY, VAL D’OISE) C
Slide 64: Residential reservations
Credit Investor Presentation- September 29, 2016 64 Reservations ( units) up % in a market where recovery is in full swing ESPRIT NATURE (VIRY, HAUTE-SAVOIE) Home buyers: % Individual investors: % CONTRAST (PARIS, 20TH DISTRICT) Institutional investors: % BLACK SWANS (STRASBOURG, BAS-RHIN) Source: C
Slide 65: Development financial trends
Credit Investor Presentation- September 29, 2016 65 (in €m) (in €m) 463 458 433 436 1 082 405 1 012 359 355 826 834 326 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 12/31/2012 12/31/2013 12/31/2014 12/31/2015 06/30/2016 7.8% 7.7% % 6.6% 7.2% 12/31/2012 12/31/2013 12/31/201
Slide 66: Revenue recognition in property development
Credit Investor Presentation- September 29, 2016 66 Option to purchase The option Beginning of the land is exercised construction work Completion % % % % Revenue recognition based on the ratio: progress of construction progress of markeking % % % % % when the when the construction when the foundatio
Slide 67: Cash flow per share by segment
Credit Investor Presentation- September 29, 2016 67 (€ per share) % + 0.13 (0.02) 0.61 0.48 1.26 1.24 06/30/2015 COMMERCIAL HEALTHCARE 06/30/2016 PROPERTY PROPERTY INVESTMENT INVESTMENT Commercial Property Investment Healthcare Property Investment
Slide 68: Business parks label and approach
Credit Investor Presentation- September 29, 2016 68 Scope of application: Icade's 7 Business Parks Orly/Rungis, Portes de Paris, Millénaire, Pont de Flandre, Le Mauvin, Paris-Nord 2, Colombes – sq.m – value of € bn as at June 30, 2016 Client-centric approach A private label, created by an external c